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HomeMy WebLinkAbout2025-04-05Clarbgton General Government Committee Post-MeetingAgenda Date: May 5, 2025 Time: 9:30 a.m. Location: Council Chambers or Electronic Participation Municipal Administrative Centre 40 Temperance Street, 2nd Floor Bowmanville, Ontario Inquiries and Accommodations: For inquiries about this agenda, or to make arrangements for accessibility accommodations for persons attending, please contact: Lindsey Turcotte, Committee Coordinator, at 905-623-3379, ext. 2106 or by email at Iurcotte@clarington.net. Alternate Format: If this information is required in an alternate format, please contact the Accessibility Coordinator, at 905-623-3379 ext. 2131. Collection, Use & Disclosure of Personal Information: If you make a delegation, or presentation, at a Committee or Council meeting, the Municipality will be recording you and will make the recording public on the Municipality's website, www.clarington.net/calendar. Written and oral submissions which include home addresses, phone numbers, and email addresses become part of the public record. If you have any questions about the collection of information, please contact the Municipal Clerk. 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. General Government Committee Agenda May 5, 2025 Pages 1. Call to Order 2. Land Acknowledgement Statement 3. Declaration of Interest 4. Announcements 5. Presentations/Delegations 6. Consent Agenda 6.1 PUB-005-25 - Traffic and Parking By-law Delegation of Authority 4 6.2 PUB-006-25 - Commemoration of Marie Hubbard 13 6.3 LGS-016-25 - Administrative Penalty System — Municipal Law 17 Enforcement 6.4 LGS-017-25 - Administrative By-law Amendments — Site Alteration, 27 Property Standards, and Traffic By-laws 6.5 FSD-014-25 - Engineering Services for Albert Street and Durham Street 35 Reconstruction 6.6 FSD-015-25 - 2024 Annual Investment Report and Policy Review 40 6.7 FSD-016-25 - Engineering Services for Baseline Road Reconstruction 109 6.8 FSD-019-25 - 2025 User Fee By-law Update 114 7. Items for Separate Discussion 7.1 LGS-015-25 - Appointment to the Anti -Black Racism Advisory 172 Committee, Diversity Advisory Committee, Newcastle Arena Board, and Samuel Wilmot Nature Area Management Advisory Committee 8. New Business *8.1 Installation of CCTV in Downtown Bowmanville (Mayor Foster) 180 (Requires 2/3 Vote to be Discussed) Page 2 General Government Committee Agenda May 5, 2025 *8.2 Staff Accomplishments Annual Report (Mayor Foster) 181 (Requires 2/3 Vote to be Discussed) 9. Confidential Items 10. Adjournment Page 3 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: PUB-005-25 Authored By: Slav Potrykus, Traffic Engineering Supervisor Submitted By: Lee -Ann Reck, Deputy CAO, Public Services Reviewed By: Rob Maciver, Deputy CAO/Solicitor By-law Number: 2014-059 Resolution Number: File Number: Report Subject: Traffic and Parking By-law Delegation of Authority Recommendations: 1. That Report PUB-005-25, and any related delegations or communication items, be received; 2. That the By-law attached to Report PUB-005-25, as Attachment 1, to amend the Delegation of Authority By-law to authorize the Deputy CAO of Public Services to make minor changes to the Schedules of the Traffic and Parking By-law, be approved; and 3. That all interested parties listed in Report PUB-005-25, be advised of Council's decision. Page 4 Municipality of Clarington Page 2 Report PUB-005-25 Report Overview This report seeks Council's approval to provide the Deputy CAO of Public Services with the authority to implement changes to specific schedules of the Traffic and Parking By-law 2014- 059, for the purpose of increasing safety, efficiency, and effectiveness in the municipality's administration and traffic operations processes. 1. Background Current Process 1.1 Throughout the year, the Public Works Traffic Division continuously monitors the road network, documenting operational changes driven by evolving traffic patterns and behaviours, growth from new developments, or alterations to the roadside environment. Many of these changes are administrative, stemming directly from Council decisions made through other processes. With the introduction of the Traffic Calming Policy, staff anticipate a significant increase in administrative, operational, and adaptive changes to certain regulatory signage as part of the traffic calming implementation process. 1.2 Currently, if Staff want to make minor changes to the Traffic and Parking By-law 2014- 059, they are required to submit a Council report along with a corresponding amending by-law for Council approval. Once approved by Council, staff can initiate preparations for implementing the changes. This process demands considerable staff resources and Council approvals to make temporary changes or meet the evolving traffic operations efficiently. 1.3 The historical trend of Traffic and Parking By-law amendments, such as housekeeping items or recommendations for changes to traffic operations or traffic control, were approved by Council as presented. This demonstrates the correlation between staff's conclusions and recommendations and Council's understanding of the local road network needs. Page 5 Municipality of Clarington Page 3 Report PUB-005-25 2. Analysis Municipal Benchmarking 2.1 Staff have reviewed the processes of several other municipalities in Ontario and found many examples of delegated authority relating to traffic operations. Some examples include: • City of Oshawa • Region of Durham • City of Kingston • City of Ottawa 2.2 Staff have noted varying degrees of delegated authority and have selected the following schedules of the Traffic and Parking By-law for consideration: Schedule 1 — No Stopping Schedule 2 — No Parking Schedule 3 — Parking for Restricted Periods Schedule 7 — Loading Zones Schedule 8 — One Way Highways Schedule 9 — Through Highways Schedule 10 —Stop Signs Schedule 11 — Yield Right-of-way Signs Schedule 12 — Maximum Rate of Speed on Highway (specific conditions only) Schedule 13 — Maximum Rate of Speed Passing Over a Bridge Municipality of Clarington Page 4 Report PUB-005-25 Schedule 14 — Highways Exempt from Weight Restrictions Schedule 15 — School Bus Loading Zones Schedule 16 — Accessible On -street Parking Schedule 17 — Turning Movements Prohibited Schedule 19 — Designated Turn Lanes Schedule 22 — Maximum Gross Vehicle Weight Passing Over a Bridge Schedule 23 — No Heavy Trucks Justifications for Delegation of Authority 2.3 Sections 23 and 23.2 of the Municipal Act, 2001, provides that Council can delegate its legislative powers if, in Council's opinion, the power being delegated is minor in nature. 2.4 Staff submit that changes proposed to be made by Staff to the schedules listed in section 2.2 are of a minor nature and are in line with other municipalities with delegated authority to manage traffic operations. For further transparency, descriptions of these schedules and the changes that would be made by Staff, are described in the following paragraphs. 2.5 Schedules 1, 2, 3 — Amendments typically include changes to stopping and parking signage. These changes may be required along curves, at intersections, crosswalks, school crossings, fire hydrants, mailboxes, and other areas of concern identified by staff. These are often identified through traffic studies, observations and feedback from Municipal Law Enforcement Officers, changes in roadside environment such as new construction or change in type of establishments. This also includes new subdivisions, capital and infrastructure projects which were previously approved by Council. Another area involves modifications to signage required to accommodate changes to Public Transit operations and stop locations beyond our control. 2.6 Schedules 7, 15 — Amendments may include any signage modifications to loading zones and school bus loading zones, if found to require modifications due operational changes. 2.7 Schedule 8 — Amendments may include changes to the operation of the existing One Way streets. Examples may be due to construction, detours, special events. 2.8 Schedules 9, 10, 11 — Amendments often include updates to through highways, including intersections with stops and yield signs. These changes are identified when Page 7 Municipality of Clarington Page 5 Report PUB-005-25 new roads and intersections are being added to the Traffic and Parking By-law. Examples such as changes to intersections where an All -Way STOP is being introduced by staff, the construction of a new roundabout, and road extensions (for example Lake Road to Bennett Road, or the future Longworth Avenue extension). 2.9 Schedule 12 (conditional) —Although this schedule contains the official posted speed limits on Clarington roads, staff recommend that the delegation of authority applies to the following housekeeping cases in this schedule: Reduction of speed limit ONLY within any newly identified school zones, as previously approved by Council in 2023. Examples include one new school scheduled to open in September 2025, and any other future school zones. • Restoration of speed limits ONLY where the roadside environment initially requiring the speed limit reduction is no longer present. Example may include a school closure, and the 30km/h speed limit is no longer justified and appropriate. • Speed limit signage adjustments required for the future Automated Speed Enforcement (ASE) program to operate. 2.10 Schedules 13, 22 — Amendments include changes to posted speeds or vehicle weights when passing over a bridge. These changes are identified from bi-annual bridge inspections. 2.11 Schedules 14, 23 — Amendments include the temporary installation of No Heavy Trucks signage, as already delegated in the existing By-law 2024-042, Delegation of Authority. The related Highways Exempt from Weight Restrictions schedule may require updates to signage and locations in cases where new roads are constructed, or existing roads are reconstructed to suitable standards. 2.12 Schedule 16 — Amendments include housekeeping aspects such as new additions, or relocations of existing accessible on -street parking, as opportunities become available through staff studies or approved construction projects. It must be noted that any changes to accessible on -street parking must first be approved by the Accessibility Advisory Committee. 2.13 Schedules 17 and 19 — Amendments are housekeeping in nature, and include changes to turn lane designation signage. These changes may involve new intersections, intersection reconstruction projects, or signage prohibiting specific turning movements, such as No Left Turn, or No U-Turn. Municipality of Clarington Page 6 Report PUB-005-25 Communication 2.14 Staff will inform Council of amendments through Council Briefing Notes, including changes made to traffic operations such as new All Way Stops or restrictions on heavy truck movements. 2.15 By-law amendments will also be incorporated into the consolidated Traffic and parking By-law, which is linked on the municipal website and available to the public. 3. Financial Considerations Not applicable 4. Strategic Plan This recommendation for the delegation of authority aligns with the strategic plan components L.1.3: Empowering staff to identify opportunities for enhancing efficiency and effectiveness, L.2.2: Utilizing technology and process improvements to modernize and optimize services, and C.2.3: Developing a traffic calming plan to address neighborhood speeding and parking concerns. Implementing these recommendations will yield significant efficiencies in amending the Traffic and Parking By-law by: Minimizing liability through the expedited modification of signage and traffic operations as necessary, • Ensuring accountable leadership, • Enhancing administrative efficiency by reducing the number of staff and hours currently required for the drafting and processing of reports, which involves personnel from Public Works, Municipal Law Enforcement, Municipal Clerks, Planning and Infrastructure, and the Durham Regional Police Service. 5. Climate Change Not Applicable. 6. Concurrence This report has been reviewed by the Deputy CAO of Planning and Infrastructure and the Deputy CAO of Legislative Services who concur with the recommendations. Municipality of Clarington Page 7 Report PUB-005-25 7. Conclusion It is respectfully recommended that Council further amend By-law 2024-042, Delegation of Authority and authorize the Deputy CAO of Public Services, to amend the Schedules identified in section 2.2, of the Traffic and Parking By-law 2014-059. By doing so, Council will provide the Deputy CAO of Public Services with the ability to expedite the By-law amendment process required for safe and efficient movement of all types of road users. Staff Contact: Slav Potrykus, Traffic Engineering Supervisor, 905-623-3379 extension 2315 or spotrykus clarington.net. Attachments: Attachment 1 — By-law to amend the Delegation of Authority By-law 2024-042 Interested Parties: There are no interested parties to be notified of Council's decision. Page 10 Attachment 1 to Report PUB-005-25 By-law YYYY-N N N Amendment of the Delegation of Authority 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 YYYY-NN Being a By-law to amend the Delegation of Authority By-law 2024-042. 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 PUB-XXXX, the Council of the Municipality of Clarington has deemed it desirable and efficient to delegate certain powers to enhance the efficiency of its decision making and administrative processes; Page 1 of 2 Page 11 By-law YYYY-N N N Short Title Now, therefore, the Council of the Municipality of Clarington enacts as follows: 1. That a new row, with the following wording, be added to Schedule "C" of By-law 2024-042: Short Description of Matter Delegate Specific Delegation of Authority Council's Authority to Delegate Checks and Balances Traffic By-law Deputy CAO To pass a by-law to Municipal As soon as — Minor amend any of Act, ss. practical after Changes to Public Schedules 1, 2, 3, 7, 8, 23.1, 23.2 any exercise Schedules for Services 9, 10, 12, 13, 14, 15, of this traffic control 16, 17, 19, 22, or 23 of delegated measures the Clarington Traffic authority, a By-law 2014-059, or Briefing Note any successor by-law, will be in a form satisfactory to prepared and the Municipal Solicitor, distributed to and in exercising this advise authority the Deputy Council of CAO Public Services the by-law shall have regard to amendments. public safety and the efficient and effective movement of traffic. 2. That this by-law shall come into force and effect on the date of passing. Passed in Open Council this XX day of MMMM, YYYY. Name, Mayor Name, Municipal Clerk Written approval of this by-law was given by Mayoral Decision MDE-YYYY-XXX dated XXXX XX, YYYY. Page 1 of 2 Page 12 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: PUB-006-25 Authored By: Mariano Perini, Director, Public Works Submitted By: Lee -Ann Reck, Deputy CAO, Public Services Reviewed By: Mary -Anne Dempster, CAO By-law Number: Resolution Number: File Number: Report Subject: Commemoration of Marie Hubbard Recommendations: 1. That Report PUB-006-25, and any related delegations or communication items, be received; 2. That Staff continue to collaborate with the Visual Arts Centre to finalize the design that commemorates the commitment and dedication to public service of Marie Hubbard, former Chair of the Visual Arts Centre and Mayor of Newcastle; 3. That Council approve funding of $10,000 for design and construction for a commemorative green space on the grounds of the Visual Arts Centre; 4. That funding for the design and construction for the commemorative green space come from the Tax Rate Stabilization Reserve Fund; and 5. That all interested parties listed in Report PUB-006-25, and any delegations be advised of Council's decision. Page 13 Municipality of Clarington Page 2 Report PUB-006-25 Report Overview This report outlines the design and construction plans for a commemorative green space dedicated to Marie Hubbard, former Mayor of Newcastle and Chair of the Visual Art Centre. The commemorative garden will be located at the entrance of the Visual Art Centre, serving as a tribute to her contributions to the community and the arts. The project will be completed internally by public works staff. 1. Background 1.1 At the November 6, 2024, General Governance Committee meeting staff presented report PUB-016-24, Civic Recognition and Dedication Program. 1.2 In keeping with the guidelines of the report, staff were requested to find a means to commemorate Marie Hubbard's long-time dedication to public service. 1.3 Public Services staff have collaborated with the Visual Arts Centre to identify a suitable location that will be accessible to both the public and patrons of the centre, allowing them to access and enjoy the green space. Page 14 Municipality of Clarington Page 3 Report PUB-006-25 2. Discussion 2.1 Public Works staff in conjunction with Visual Arts Centre staff identified an area at the northwest corner of the buildina adiacent to the main entrance. 2.2 This location is visible to vehicle and foot traffic accessing Soper Creek Park and patrons of the Visual Arts Centre. 2.3 The substrate within this area is conducive for soft and hard landscaping and would require minimal excavation and no alterations to the existing amenities. 2.4 Public Works staff will landscape the area with mixture of materials such as mulch, planting of low maintenance shrubs and perennial flowers suitable for the location. 2.5 A park bench will be integrated into the landscaped design, and a commemorative plaque will be prominently displayed on a landscape stone. 2.6 The design and construction of the area will be performed by parks staff within Public Works. The design will commence over the summer and construction will be added to the workflow for the fall of 2025. Page 15 Municipality of Clarington Page 4 Report PUB-006-25 3. Financial Considerations 3.1 The Manager of Parks has estimated that the cost of materials required to construct the area is $10,000. The construction work will be carried out by staff from the Parks Department. 3.2 Funding for this project will be sought from the Tax Rate Stabilization Reserve Fund. 4. Strategic Plan 4.1 The recommendation within this report aligns with Council's objectives to recognize and celebrate our community and support for the local arts and heritage sectors. 5. Climate Change 5.1 Dedicating a green space within the grounds of the Visual Arts Centre supports our commitment to expanding our greenspaces, reducing our carbon footprint. Staff will select species of plants and materials that are tolerant to disease and drought. 6. Concurrence 6.1 This report has been reviewed by the Deputy CAO/Treasurer who concurs with the recommendations. 7. Conclusion It is respectfully recommended that Council consider and approve the recommendations within this report. Staff Contact: Mariano Perini, Director, Public Works, 905-623-3379 x2903 or mperini(d)-clarignton.net. Attachments: Not Applicable Interested Parties: The following interested parties will be notified of Council's decision: - Dionne Powlenzuk, Executive Director, Visual Arts Centre of Clarington Page 16 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: LGS-016-25 Authored By: Natalie King, Municipal Law Enforcement Supervisor Submitted By: Rob Maciver, Deputy CAO/Solicitor, Legislative Services Reviewed By: Mary -Anne Dempster, CAO By-law Number: Resolution Number: File Number: L1000-60-E Report Subject: Administrative Penalty System — Municipal Law Enforcement Recommendations: 1. That Report LGS-016-25, and any related delegations or communication items, be received; 2. That Staff investigate and report back to Council with the requirements to replace existing parking fines with a system of Administrative Penalties, including an estimate of overhead costs; and 3. That all interested parties listed in Report LGS-016-25, and any delegations be advised of Council's decision. Page 17 Municipality of Clarington Page 2 Report LGS-016-25 Report Overview The purpose of this report is to provide Council with information related to Administrative Penalty System ("APS" — also referred to as Administrative Monetary Penalty System or "AMPS") as an alternative to the imposition of fines under the Provincial Offences Act. Staff are seeking direction from Council to fully explore the requirements of transitioning to APS so that Council can determine whether using such a system would be in the best interests of the Municipality. 1. Background Introduction 1.1 The Municipality of Clarington has enacted many by-laws to regulate a wide variety of activities. 1.2 Familiar examples of municipal regulatory by-laws include the Traffic By-law, Property Standards By-law, Site Alteration By-law, and Responsible Pet Owners' By-law. 1.3 Two legislated options exist for Municipalities to enforce these regulatory By-laws; a fine based system established under the Provincial Offences Act, R.S.O. 1990, c. P.33 (POA), or an Administrative Penalty System (APS) as provided for in the Municipal Act, 2001. 1.4 The primary method of enforcement for by-law infractions is the imposition of a fine through the issuance of a ticket. 1.5 Fines are imposed under the authority of the Provincial Offences Act (the "PDX). Under this system, the administration of fines is heavily dependent on the Provincial Offences Court. 1.6 An alternative enforcement system established under an Administrative Penalty System provides for greater local control over process, timelines, fine recovery, and improved compliance when compared with the current provincial model. 2. Current Challenges with POA Overburdened Court System 2.1 The POA Court System processes charges arising from Provincial Statutes as well as Municipal By-laws. Page 18 Municipality of Clarington Page 3 Report LGS-016-25 2.2 This includes charges resulting from the Highway Traffic Act (i.e. speeding, careless driving), Environmental Protection Act, Occupational Health and Safety Act, Dog Owners' Liability Act, and Trespass to Property Act. 2.3 All regulatory By-law charges enacted by Municipalities are managed through the same court proceedings, including Municipal Parking Infraction Notices ("PINS"). 2.4 The broad spectrum and volume of matters being heard before POA Courts has created added pressure on the administration, with sustainable capacities far exceeded with the addition of Municipal PINS. Cost 2.5 There are significant costs associated with the administration of the provincial court system. Courtroom facilities, wages for Justices of the Peace, court staff administration, as well as the Prosecution team currently retained through the Region of Durham contractual agreements. 2.6 Additional fiscal consideration must be given to staff time required to prepare briefings and evidence packages for Prosecutors, serve summons where necessary, and attend court for matters to be heard before a Justice of the Peace. High Rate of Unpaid Fines and Non -Compliance 2.7 Finally, fines relating to matters resolved through the POA Courts are allocated to the Municipality only once court administration has collected the funds and deducted their costs from the total. Accused who fail to pay voluntarily or after being sent to MTO for plate denial, results in a substantial number of unpaid fines left owing to Municipalities. Threats to the Integrity of the Justice System 2.8 Often, a defendant will request a trial to dispute their PINS simply as a means to test limited court resources, believing their matter may be dismissed for delay or other administrative reasons. 2.9 Utilizing the court system as the dispute resolution system for a $30 parking ticket, requires a disproportionate use of judicial resources, and takes away from more serious matters being heard by the Court. Current Model for POA Fines 2.10 Enforcement and prosecution of Clarington regulatory by-laws is currently undertaken through the administration of the Provincial Offences Act (POA). This includes the Page 19 Municipality of Clarington Page 4 Report LGS-016-25 commencement of proceedings under various provisions of the POA. The collection of fines is also overseen by the provincial court system. Ticket Aging Process 2.11 Under this system, when a parking violation is observed, an Officer will issue a PIN (i.e. a ticket). A reduced fine option is available if payment is made within seven (7) days of issuance. On the eighth (8th) day, the fine increases to the set fine for the charge. On the sixteenth (16th) day, a Ministry of Transportation ("MTO") search is performed, and the registered owner of the offending vehicle is mailed a Notice of Impending Conviction ("NIC"). The fine remains at the set fine amount. 2.12 If the registered owner further ignores the NIC, and the fine remains unpaid, on the forty-sixth (46 day), the Municipality sends a Certificate Requesting Conviction ("CRC") to the POA courts, to move forward with and administrative conviction. From there, the courts will issue a final notice to the accused, with details of the charge including additional fees to be applied. 2.13 If non-compliance continues at this point, the POA courts register plate denial against the vehicle's licence plate through MTO, and additional fees are then applied. Payment Details 2.14 While the Municipality still has carriage of the PIN, payment can be received through online payment or in person at the Municipal Administrative Centre. Payments for PINS that have moved to the POA Courts are paid back to the Municipality monthly, in the amount of only the set fine for the charge. Additional fees added to the final amount of the ticket are retained by the POA Courts or MTO. Disputing a Parking Infraction Notice 2.15 During the time when PINS remain in the custody of the Municipality, an appointment with a Municipal Law Enforcement ("MLE") staff member can be made to informally review the circumstances of the ticket. During this review, MLE staff have the discretion to reduce, rescind, or uphold the charge(s) according to an objective and unbiased review of the facts. Anyone remaining dissatisfied with the outcome of this review, can further dispute the charge by requesting a trial, in a formal POA Court setting. The courts notify the Municipality of scheduled trials. Disputing a PIN when Carriage is held by POA Courts Administration 2.16 The Municipal Law Enforcement Officer ("MLEO") who issued the PIN is required to attend trial and provide evidence to support their charge, and the accused has an opportunity to testify. These matters are prosecuted through representation from the Page 20 Municipality of Clarington Page 5 Report LGS-016-25 Region of Durham prosecution team, and a Justice of the Peace rules on a verdict. Outstanding fine payments that result from the court outcome, are managed and collected by the POA Courts. Appeals and Conviction Re -openings 2.17 Currently, a statute of limitations does not exist for the re -opening of PINS, with the only requirement for accused being an appeal to a justice for a strike out of the conviction within 15 days of becoming aware of the conviction, so the matter(s) can be heard as an opportunity for an alternate outcome. 2.18 This gap in the legislative process often results in unpaid convictions made in years prior, being granted an opportunity to enter a plea or request a trial. This subsequently requires the issuing Officer to attend court and provide evidence, presenting administrative challenges for the Municipality. 3. Administrative Penalty Systems (APS) What are APS? 3.1 Administrative Penalty Systems ("APS"),) are a more streamlined process being increasingly employed by Municipalities as an alternative to the POA Court system, for handling minor by-law violations. 3.2 The system allows Municipalities to issue penalty notices similar to a ticket, and through their own dispute resolution process, handle appeals and receive payment for outstanding fines, in a timely manner, outside of the POA Court system. What is the Legal Authority for APS? 3.3 Since 2006, municipalities in Ontario have been authorized by the Municipal Act to implement APS for by-law infractions as an alternative to the traditional POA Court system of fines. 3.4 The dollar amount of an APS is at the discretion of the Municipality, provided that it does not exceed the amount reasonably required to promote compliance with the by- law under which the APS is imposed. 3.5 For APS that apply to the parking, standing or stopping of motor vehicles, specific requirements and parameters have been prescribed by regulation. This includes the requirement to develop certain policies and procedures, to comply with certain standards to ensure the fairness and integrity of the APS, and to appoint personnel to perform specific key roles. Page 21 Municipality of Clarington Page 6 Report LGS-016-25 What are the advantages of using APS? 3.6 As the population in Clarington continues to grow, so does the demand to increase communications to the public regarding parking regulations, and the need to increase efficiencies such as with the newly replaced downtown parking meter replacement and software upgrade. 3.7 Incorporating an Administrative Penalty System for parking infractions allows for a streamlined process from issuance through dispute resolution, all managed by the Municipality. 3.8 Pre -determined timeframes offer a faster resolution of violations, often within weeks instead of months or years as with the POA Courts. 3.9 The Administrative Penalty System is more accessible for the accused by removing the formal court processes and replacing it with an informal quasi-judicial screening and hearing process. 3.10 In 2024, over 1900 parking tickets were pushed from Clarington's administration to the POA court system in the form of trial requests or administrative convictions, making up 28.4% of the total Clarington PINS for the year. 3.11 By issuing APS instead of PINS, the Court system isn't burdened, and court time can effectively be reserved for more serious matters. 3.12 Administrative penalties are not intended to be punitive in nature, but the potential to establish a tiered penalty structure, provides consequences for noncompliance that is more likely to motivate a change in behaviour. Other Municipalities Using APS 3.13 Within Durham Region, Oshawa, Ajax, and Whitby have all implemented APS, with Oshawa leading the way through much of Ontario, having first implemented an APS system in 2008. The City of Peterborough and the Town of Cobourg also employ differing examples of an APS systems for by-law enforcement. 3.14 Larger municipalities to the west operating under APS further included the City of Markham, the City of Vaughan, the City of Richmond Hill, the Town of Oakville, the Township of King, the Town of Halton Hills, and the City of Toronto. 3.15 Based on the advantages outlined above, and the successful use of APS by other municipalities, Clarington should investigate whether the use of APS would be the right choice for us. Page 22 Municipality of Clarington Page 7 Report LGS-016-25 4. Recommended Actions Proposed Next Steps 4.1 The first step is to obtain Council approval to explore the full requirements of transitioning to an Administrative Penalty System. That is the purpose of the recommendations in this report. 4.2 Following acceptance in principle by Council, Staff would then work to establish practical timelines and financial costs associated with generating the necessary agreements with MTO under their Authorized Requester Program. 4.3 Staff would concurrently determine technology requirements including changes or transitional needs for enforcement software. 4.4 Findings would then be reported back to Council for further direction and approval. Transition Considerations 4.5 It is recommended that Clarington adopt the APS system and initially apply it to the Traffic By-law since parking violations represent a significant portion of bylaw infractions and are also relatively simple to resolve. 4.6 Through the streamlined process, APS can help to reduce the burden on the provincial court system, while providing a faster and more accessible, less formal, resolution process than what is currently employed under the traditional court system. 4.7 After implementation, throughout the ongoing review process of the APS system, further evaluation can be assessed to determine the potential for additional by-laws to transition to the APS system, either in part or in whole. Procedural Requirements for Implementation 4.8 When Administrative Penalty Systems are employed, the judicial system is removed and POA Courts are no longer involved in any aspects of the enforcement process. 4.9 To ensure fairness, the Province introduced Ontario Regulation 333/07, s.7, to require that specific standards be developed prior to implementation of an Administrative Penalty System to ensure consistency, equity, and transparency, within the administration of the system. 4.10 The following requirements are needed to move forward with the implementation of an Administrative Penalty System: Page 23 Municipality of Clarington Page 8 Report LGS-016-25 a) Policies and procedures to prevent political interference in the administration of the system; b) Guidelines to define what constitutes a conflict of interest in relation to the administration of the system, to prevent such conflicts of interest and to redress such conflicts should they occur; c) Policies and procedures regarding financial management and reporting; and d) Procedures for the filing and processing of complaints made by the public with respect to the administration of the system. 4.11 Furthermore, by restructuring enforcement regulations under a revised system which excludes POA Court processes, a by-law is required to identify jurisdiction for enforcement, as well as establish a revised offence and penalty system. 4.12 As recommendations have indicated, beginning with the Municipality's Traffic By-law is advised before moving on to other by-laws to enforce under an APS. Consequently, the Municipality's Traffic By-law would also require an amendment or complete replacement. Further Investigation 4.13 Although staff have a strong concept of what this project entails, time will be required to adequately research and determine the precise needs to transition and adopt this system. 4.14 Upon approval from Council, staff would begin communications with MTO to determine the requirements, timelines, and costs associated with implementation. This may involve both ongoing and transitional costs. 4.15 Research into the most appropriate choice for enforcement software would also need to be examined. Staff would need to determine if our current parking enforcement software provider, Gtechna, can adequately support the transition from POA tickets to an APS system, or if an alternate software company may be more favourable. 4.16 This would further require time to implement any software technologies, and include a testing period, before going live and full adoption of the APS system. 4.17 Staff would like the opportunity to explore costing and technological requirements and/or upgrades that may be required to implement an (LPR) to the APS system. 4.18 Forecast potential ticketing efficiency increases i.e. in school zones and generate estimates of possible changes to revenue. Page 24 Municipality of Clarington Page 9 Report LGS-016-25 4.19 The implementation of an administrative penalties system, specific to parking, requires the addition of two new positions. A Screening Officer, and a Hearing Officer. A closer examination is needed to determine if these positions are best managed internally, or if it is more practical to contract this service out. 4.20 A communications plan would be required to establish appropriate timelines and messaging to inform the public about the intention to transition to APS, as well as how this system will impact them. Public Consultation 4.21 Details of a plan for public consultation will be determined through the direct assistance of the Communications Team. 4.22 It will be imperative to work closely with the Communications Team, to ensure that adequate information is conveyed to the public in advance of implementation and provide ongoing updates that will illustrate the final outcome to residents. 5. Financial Considerations 5.1 Details of the costs and potential revenues associated with the transition to an Administrative Penalty System will be investigated and presented to Council as part of a future phase of this initiative. 6. Strategic Plan 6.1 The implementation of an Administrative Penalty System would allow Clarington to manage the issuance of penalty notices, the appeal process, and fine recovery process internally, which provides for direct control over municipal processes. 6.2 By transitioning to APS, Clarington can reduce costs associated with the current POA system, and improve fine recovery rates, contributing to financial sustainability and cost management. 6.3 APS offers a streamlined process for handling minor by-law violations, leading to faster resolution and improved compliance. This supports the strategic plan's objective of maintaining public order and safety through effective enforcement mechanisms. 6.4 Administrative Penalty Systems reduce the burden on the provincial court system, allowing judicial resources to be reserved for more serious matters. This creates a more efficiently aligned use of public resources (POA). 6.5 As part of the implementation process, a public consultation plan to inform residents about the transition to APS would be created. This supports Clarington's commitment to Page 25 Municipality of Clarington 10 Report LGS-016-25 transparency and public engagement, ensuring that residents are aware of and understand the changes. Page 6.6 As indicated, the proposal involves evaluating the potential of leveraging technology to better improve service delivery by means of upgrading current enforcement software and considering additional tech resources to better improve efficiencies. 6.7 The proposed implementation plan includes a phased in approach to APS, starting with parking violations and potentially expanding to other by-laws. This methodical approach aligns with the need for ongoing evaluation to ensure successful outcomes. 7. Climate Change Not Applicable. 8. Concurrence Not Applicable. 9. Conclusion It is respectfully recommended that Report LGS-016-25, and any related delegations or communication items, be received; That Staff investigate and report back to Council with the requirements to replace existing parking fines with a system of Administrative Penalties, including an estimate of overhead costs; and That all interested parties listed in Report LGS-016-25, and any delegations be advised of Council's decision. Staff Contact: Natalie King, Municipal Law Enforcement Supervisor, 905-623-3379 ext. 2110 or nking@clarington.net. Attachments: Not Applicable Interested Parties: There are no interested parties to be notified of Council's decision. Page 26 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: LGS-017-25 Authored By: Kristina Bergeron, Municipal Law Enforcement Manager Submitted By: Rob Maciver, Deputy CAO/Solicitor, Legislative Services Reviewed By: Mary -Anne Dempster, CAO By-law Number: Resolution Number: File Number: Report Subject: Administrative By-law Amendments — Site Alteration, Property Standards, and Traffic By-laws Recommendations: 1. That Report LGS-017-25, and any related delegations or communication items, be received; 2. That the By-laws attached to Report LGS-017-25, as Attachment 1, Attachment 2, and Attachment 3 be approved; and 3. That all interested parties listed in Report LGS-017-25, be advised of Council's decision. Page 27 Municipality of Clarington Page 2 Report LGS-017-25 Report Overview Staff are requesting Committee approval for three housekeeping By-law amendments. These minor adjustments are intended to enhance clarity and ensure the By-law regulations are consistent with the authorities outlined in the Municipal Act, Building Code Act, and Highway Traffic Act. 1. Background Minor By-law Adjustments 1.1 Municipal Law Enforcement staff are recommending minor administrative adjustments to the Site Alteration By-law 2024-017, Property Standards By-law 2007-070, and Traffic and Parking By-law 2014-059. These changes are intended to enhance clarity and align with enforcement procedures. 1.2 It is necessary that By-laws include language to provide for the recovery of expenses incurred by the Municipality when undertaking work needed to resolve violations and bring a property into compliance. The Site Alteration By-law and Property Standards By-law currently lack provisions to include administrative costs in such cases. 1.3 The draft amendments provide a mechanism to add administrative fees to the User Fee By-law, offering a streamlined approach to cost recovery. Traffic By-law Update 1.4 The Traffic By-law requires a minor update to authorize the issuance of parking infraction notices for the enforcement of violations at temporarily prohibited locations. These locations are marked with "No Parking" or "No Stopping" signs erected under Section 8. of Traffic and Parking By-law 2014-059 by the Chief of Police of the Durham Regional Police Service, a designate, or the Director/Designate. 1.5 The authority to install appropriate signage is already in place; however, without the proposed wording, enforcement efforts remain incomplete. Creating the offence for "parking or "stopping" where temporary signs have been erected is essential to ensure compliance with the signage, maintain public order, and promote safety. This step will bridge the gap between regulatory intent and enforcement capability, enabling the municipality to uphold the regulations effectively and deter violations. Page 28 Municipality of Clarington Page 3 Report LGS-017-25 Proposed Amendments Administrative Cost Recovery 1.6 Amendments to the Site Alteration By-law 2024-017 and Property Standards By-law 2007-070 include provisions to incorporate administrative costs into required work undertaken by the Municipality. It is common practice for Municipalities to include administrative fees to recover the additional costs associated with procurement, scheduling, site attendances, and the clerical resources required to process the invoicing. 1.7 These provisions will allow the Municipality to recover expenses efficiently and equitably, ensuring fairness in the application of municipal resources. The proposed administrative fees are set out in FSD-019-25. Parking Infraction Authority 1.8 The proposed update to the Traffic and Parking By-law 2014-059 will grant explicit authority for issuing parking infractions at temporarily signed, prohibited locations. This adjustment ensures better traffic flow and compliance at identified locations requiring temporary restrictions. 2. Financial Considerations 2.1 There is currently no mechanism in place to recover the additional costs incurred for organizing and carrying out the necessary work to comply with Orders issued under the Site Alteration By-law 2024-017 and Property Standards By-law 2007-070. 2.2 Incorporating an administrative fee aligned with the existing fee structure outlined in the Boulevard By-law 2013-066 will help offset additional costs associated with procurement, scheduling, site attendance, and the clerical work required to process invoices. 2.3 A proposed administrative fee equal to 25% of the costs incurred by the Municipality for actual work undertaken, is consistent with the existing fee outlined in the Boulevard By- law 2013-066, and will assist in offsetting additional expenses related to the procurement, scheduling, site attendance, and the clerical resources necessary for processing invoices. 3. Strategic Plan 3.1 The Strategic Plan emphasizes efficient and responsible management of municipal operations. By ensuring By-law regulations are consistent with higher legislative Page 29 Municipality of Clarington Page 4 Report LGS-017-25 authorities, these amendments support transparent and effective governance, a key pillar of the Strategic Plan. 3.2 The Strategic Plan includes objectives related to traffic management and safety. Aligning By-law regulations with the intended authorities ensures that traffic -related rules are clear and enforceable, contributing to safer and more connected communities. 4. Climate Change Not Applicable. 5. Concurrence 5.1 This report has been reviewed by the Deputy CAO of Legislative Services who concurs with the recommendations. 6. Conclusion 6.1 It is respectfully recommended that that Council approve the proposed administrative amendments to the Site Alteration By-law 2024-017, Property Standards By-law 2007- 070, and Traffic and Parking By-law 2014-059 to enhance clarity and operational effectiveness. Staff Contact: Kristina Bergeron, Manager, Municipal Law Enforcement, kbergeron2 _clarington.net Attachments: Attachment 1 — Proposed Site Alteration Amending By-law (Administrative Fees) Attachment 2 — Proposed Property Standards Amending By-law (Administrative Fees) Attachment 3 — Proposed Traffic and Parking By-law Amending By-law (Temporary No Parking) Interested Parties: There are no interested parties to be notified of Council's decision. Page 30 By-law YYYY-N N N Site Alteration By-law 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 YYYY-NN Being a By-law to amend the Site Alteration By-law 2024-017 Whereas, arising out of Report LGS-017-25, the Council of the Municipality of Clarington has deemed it desirable/necessary to amend the Site Alteration By-law 2024-017; Now, therefore, the Council of the Municipality of Clarington enacts as follows: 1. That the following new section be added to By-law 2024-017 immediately after section 32.: 32.1 An expense referred to in section 32. includes any actual costs to the Municipality to do a matter or thing plus any applicable administrative fee established by the Municipality. Page 1 of 2 Page 31 By-law YYYY-N N N Site Alteration By-law 2. That this by-law shall come into force and effect on the date of passing. Passed in Open Council this XX day of MMMM, YYYY. Adrian Foster, Mayor June Gallagher, Municipal Clerk Written approval of this by-law was given by Mayoral Decision MDE-YYYY-XXX dated XXXX XX, YYYY. Page 1 of 2 Page 32 By-law YYYY-N N N Property Standards By-law 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 YYYY-NN Being a By-law to amend the Property Standards By-law 2007-070 Whereas, arising out of Report LGS-017-25, the Council of the Municipality of Clarington has deemed it desirable/necessary to amend the Property Standards By-law 2007-070; Now, therefore, the Council of the Municipality of Clarington enacts as follows: That section 6.01 of By-law 2007-070 be deleted and replaced with the following: 6.01 If an Order is not complied with in accordance with the Order as deemed confirmed or as confirmed or modified by the Committee or a judge, the Municipality may cause the property to be repaired or demolished accordingly, and the actual cost, including any applicable administrative fee established by the Municipality, shall be added to the tax roll against the property in accordance with section 15.4 of the Building Code Act, 1992 and subsections 1(2.1) and 1(3) of the Municipal Act, 2001. 2. That this by-law shall come into force and effect on the date of passing. Passed in Open Council this XX day of MMMM, YYYY. Adrian Foster, Mayor June Gallagher, Municipal Clerk Written approval of this by-law was given by Mayoral Decision MDE-YYYY-XXX dated XXXX XX, YYYY. Page 1 of 1 Page 33 By-law YYYY-N N N Traffic and Parking By-law 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 YYYY-NN Being a By-law to amend the Traffic and Parking By-law 2014-059. And whereas, arising out of Report LGS-017-25, the Council of the Municipality of Clarington has deemed it desirable/necessary to amend the Traffic and Parking By-law 2014-059. Now, therefore, the Council of the Municipality of Clarington enacts as follows: 1. That the following words be added to section 21. of By-law 2014-059: "or where temporary "no parking" signs have been erected pursuant to Section 8." 2. That the following words be added to section 22. of By-law 2014-059: "or where temporary "no stopping" signs have been erected pursuant to Section 8." 3. That this by-law shall come into force and effect on the date of passing. Passed in Open Council this XX day of MMMM, YYYY. Adrian Foster, Mayor June Gallagher, Municipal Clerk Written approval of this by-law was given by Mayoral Decision MDE-YYYY-XXX dated XXXX XX, YYYY. Page 1 of 1 Page 34 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: FSD-014-25 Authored By: Mandy Chong, Manager, Procurement Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary -Anne Dempster, CAO By-law Number: Resolution Number: File Number: RFP2025-2 Report Subject: Engineering Services for Albert Street and Durham Street Reconstruction Recommendations: 1. That Report FSD-014-25, and any related delegations or communication items, be received; 2. That the proposal received from CIMA Canada Inc., being the highest scoring proponent meeting all terms, conditions and specifications of RFP2025-2 be awarded the contract for the provision of Engineering Services for Albert Street and Durham Street Reconstruction; 3. That the funds required to complete this project be funded from the approved budget and; 4. That all interested parties listed in Report FSD-014-25, be advised of Council's decision. Page 35 Municipality of Clarington Page 2 Report FSD-014-25 Report Overview To request authorization to award RFP2025-2 — Engineering Services for Albert Street and Durham Street Reconstruction to CIMA Canada Inc. 1. Background 1.1 The Municipality of Clarington requires the assistance of a qualified engineering consulting firm for the provision of engineering services for the detailed design and tender preparation for road reconstructions of Albert Street and Durham Street in Bowmanville. The limits of the project are Albert Street (Duke Street to Brown Street) and Durham Street (Duke Street to Brown Street). The Municipality is working in cooperation with the Region of Durham who will be replacing the watermain. The work includes urbanization and replacement of the road structure and improvements to streetlight, drainage, and sidewalks. 1.2 A Request for Proposal (RFP) was drafted to allow the Municipality to select a qualified Consultant to assist with the reconstruction of Albert Street and Durham Street. 1.3 RFP2025-2 was issued by the Procurement 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 February 14, 2025. 2.2 Fifteen companies downloaded the document, and six proposals were received (refer to Attachment 1) by the stipulated closing date and time. All six proposals received were reviewed and determined to have met the mandatory items as contained within the RFP. The Proposals were distributed to the evaluation committee for review, evaluation, and scoring. 2.3 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. 2.4 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. Page 36 Municipality of Clarington Page 3 Report FSD-014-25 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. • Experience and qualifications of both the firm as well as the proposed team who would be working on the project. • That the proposed team had the expertise in the fields required such as Civil Engineering, Stormwater Management and Storm Sewer Design, Streetlight Design, Geotechnical Engineering, Landscape and Architecture Design. • The qualifications and experience record of the Contract Administrator and Site Inspector to be utilized on the project. • The Proponents methodology and understanding of the requirements for the project. • A proposed work plan indicating the project method, schedule, Time -Task Matrix showing an estimated overall timeline of the project. • Measures, processes and procedures used by the Proponent to ensure that high quality services are being provided to the Municipality. 2.6 Upon completion of the evaluation, two submissions met the established passing threshold of 80 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 scoring proponent, CIMA Canada Inc. 2.9 CIMA Canada Inc. has completed work for the Municipality in the past and reference checks were completed and came back satisfactory. 3. Financial Considerations 3.1 This project was broken down into two stages for pricing purposes: 3.1.1. The first stage will include the design and approvals as well the preparation of the tender documents and tendering phase. This portion of the work was quoted as $253,701.89 (Net HST Rebate). 3.1.2. The second stage was provisional and included the Inspection and Contract Administration services required during the execution of the work required. The Municipality will not be including this portion of the work in the award. Page 37 Municipality of Clarington Page 4 Report FSD-014-25 3.2 The funding required for this contract award is up to $310,956.46 (Net HST Rebate) which include the engineering services for design, approvals and tendering as well as the permit application fees and allowance for utility relocation. The project will be funded from the following accounts, which are in the approved 2025 budget: Description Account Number Amount Albert Street Reconstruction 110-50-330-84346-7401 $152,837 Durham Street Reconstruction 110-50-330-84347-7401 $158,119 4. Strategic Plan C.1.4: Proactively address traffic management, walkability, livability, and connectivity. 5. Climate Change Not Applicable. 6. Concurrence This report has been reviewed by the Deputy CAO, Planning and Infrastructure Services who concurs with the recommendations. 7. Conclusion It is respectfully recommended that CIMA Canada Inc., being the highest scoring proponent meeting all terms, conditions and specifications of RFP2025-2 be awarded the contract for the provision of Engineering Services for the Albert Street and Durham Street Reconstruction. Staff Contact: Mandy Chong, Manger, Procurement, 905-623-3379 Ext. 2209 or mchong@clarington.net. Attachments: Attachment 1 — Summary of Proposals Received Interested Parties: List of Interested Parties available from Department. Page 38 Municipality of Clarington Page 5 Report FSD-014-25 Attachment 1 to Report FSD-014-25 - Summary of Proposals Received Municipality of Clarington RFP2025-2— Engineering Services for Albert Street and Durham Street Reconstruction Summary of Proposals Received Bidder 11 Ainley Graham & Associates Ltd. * 11 11 Chisholm Flemming & Associates 11 CIMA Canada Inc. Concept Dash Inc. J.L. Richards & Associates Jp2g Consultants Inc. Note: Bidders marked with "*" were shortlisted. Page 39 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: FSD-015-25 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: 2024 Annual Investment Report and Policy Review Recommendations: 1. That Report FSD-015-25, and any related delegations or communication items, be received; 2. That the revised Policy CP-003 Investment Policy (Legal List), as Attachment 1, be approved; 3. That the revised Policy CP-011 Investment Policy, as Attachment 2, be approved; and 4. That all interested parties listed in Report FSD-015-25, and any delegations be advised of Council's decision. Page 40 Municipality of Clarington Page 2 Report FSD-015-25 Report Overview Annually, the Treasurer is required to report to Council on the investment portfolio and results. Further, it is required that the investment policies be reviewed annually. This report fulfills this requirement. The Municipality had an investment return of approximately 8.8%, an amount which is roughly double the prime rate, providing revenues to the Municipality from a non -tax source that can be used for future capital and operating pressures. It should be noted that approximately 1/3 of the investment income relates to DC reserve funds and are therefore restricted in use; however this mitigates cost pressures on DC projects and future DC fee increases. This is the first policy review since Council approved the move to Prudent Investor, changes to the policies are predominantly related to this change. No substantive change in investment practices or risk tolerance are recommended. 1. Background 1.1 In June 2018, through report FND-011-18, the Municipality of Clarington reviewed and revised its Investment Policy. This policy requires the Treasurer of the Municipality to report the state of the Municipality's investments to Council on an annual basis. 1.2 The policy was further reviewed in June 2021 and revised through Report FSD-035-21 to adjust the limits on certain investments to provide additional flexibility to the Treasurer. These adjustments included a higher limit for financial institutions from 60 to 80 percent, a higher per -institution limit from 20 to 25 percent, an exception in municipal debt limits for the Region of Durham, and a change to an annual review of the investment policy rather than once per term. 1.3 In 2023, the Report FSD-025-23 provided the annual update at which time the Policy was migrated to the new policy format and updated to include reference to Environment, Social and Governance (ESG) investment considerations. 1.4 In April 2024, Report FSD-015-24 provided the required By-law, Draft Investment Policy, and the Membership Agreement with ONE JIB required to adopt the Prudent Investor Standard. At its November 27, 2024 Board Meeting, the ONE JIB approved the Municipality's entry into the JIB and the Municipality officially came under the Prudent Investor Standard. The investment plans for the Municipality were also approved. 1.5 Section 8 of the Municipality's Investment Policy requires the Treasurer to report on an annual basis to Council on the performance of the investments, the balance of the Page 41 Municipality of Clarington Page 3 Report FSD-015-25 investment portfolio, and the Municipality's compliance with the investment policy and goals. 1.6 A snapshot summary of key information pertaining to the portfolio follows: If1pening closing Fund Balance, Balance, Investment on January 2024 December - Income Average Balance General Fund $39,324,462 $38,152,500 $4,303,907 11.1% Development Charges 57,582,467 49,593,067 5,623,697 10.5% Reserve Fund Non -DC Reserve Fund 94,953,787 116,100,518 7,895,269 7.5% Strategic Capital Reserve 9,641,508 9,928,765 457,160 4.7% Fund $201,502,224 $213,774,850 $18,280,033 8.8% 1.7 The nature of the legal list investments does not compare reasonably with most indices that personal investors may compare. This is due to the restricted nature of the investments. However, given that the Bank of Canada bank rate averaged 4.73 percent in 2024, the return is significantly above that rate. Similarly, the average 1-year Treasury Bill rate of return was 4.08% which is the low risk rate of return. 1.8 It should also be noted that investment income earned on Development Charges must stay within the DC reserve funds. This income is used to fund mitigate inflationary pressures and provide additional funding resources. Investment Environment in 2023 and 2024 1.9 The last three years have seen significant fluctuations in the interest rate market in Canada. In January 2022, the interest rate was 0.50, this increased to a high of 5.25 from July 2023 to June 2024. Since July 2024, there have been eight rate changes bringing the current rate to 3.0 in March 2025. Page 42 Municipality of Clarington Page 4 Report FSD-015-25 1.10 Fixed income investments are impacted by the Bank Rate. Many investments entered into in 2021 and 2022 would be at low interest rates. As these matured, they were invested in higher returning investments. With decreasing rates, future returns may not be as high as 2024 as a result of decreasing interest rates. 1.11 The following chart shows the past three years of the Bank of Canada overnight rate: 6 5 4 3 2 1 0 Jul-21 Bank of Canada Bank Rate Monthly 2022 to 2025 Feb-22 Aug-22 Mar-23 Oct-23 Apr-24 Nov-24 May-25 1.12 Over the long-term, interest rates have been significantly lower than the past 24 months. The legal list, which the Municipality has moved away from, is predominantly a fixed income market. Since January 2016, these rates have averaged 2.1 percent. 6 5 4 3 2 1 0 Bank of Canada Bank Rate Monthly January 2016 to March 2025 —i N N M M M I:t 'It V1 ci ci ci ci ci ci ci ci ci a-i N N N N N N N N N N N N N C C i Q -0 75 U bA C C i Q -0 V ? �" O N N — N (6 U 0 O Q N N — U) (6 U N a Ln LL 0 g 0 g Page 43 Municipality of Clarington Page 5 Report FSD-015-25 2. Performance of the Investment Portfolio 2.1 The Municipality's portfolio consists of several funds, including general funds, trust funds, reserve funds, and other investments. General Fund 2.2 The General Fund is the primary operating fund for the Municipality. This fund has the least number of active investments. The majority of the investments in this fund are in the HISA accounts provided by the investment advisors to the Municipality (ONE Investment, CIBC Woodgundy, BMO Nesbitt Burns and Scotiabank). The HISA accounts offer favourable interest rates for a highly liquid investment. 2.3 The ONE Investment Inc. HISA was established in September 2016 and held low balances throughout 2017. In 2018, the Municipality began being more active with its investments and moved funds from the lower interest -earning bank accounts to the higher HISA account. At December 31, 2024, the ONE Investment HISA had approximately $0.0 million (2023 - $0.2 million). Funds were withdrawn from the ONE HISA in anticipation of the move to Prudent Investor in January 2025. 2.4 Similarly, the investment accounts at CIBC Woodgundy, BMO Nesbitt Burns and RBC Dominion Securities include a HISA portion. These funds are typically available within 3 business days. The balance in these accounts typically result from maturing investments being pooled until a purchase can be made. At December 31, 2024 the balance in the HISA products with our investment advisors was approximately $16.0 million (2023- $23.0 million) across all funds. Non -Development Charges Reserve Funds 2.5 The Municipality operates a Non -Development Charges Reserve Fund investment portfolio for all reserve funds not established under the Development Charges Act, 1997. There is one exception: the Strategic Capital Reserve Fund, a separate fund. 2.6 The total book value of investments is approximately $116.1 million (2023 - $95.0 million), including approximately $37.9 million (2023 - $37.5 million) in bank balances. At December 31, 2024, the portfolio was comprised of $8.7 million (2023 - $7.9 million) in GICs with maturities in each of 2025 through 2028 and $24.8 million (2023 - $27.5 million) in bonds with maturities from 2025 to 2033. The equity pool with ONE Investment was liquidated in 2024 in anticipation of the transfer to the ONE JIB. The portfolio includes $39.4 million (2023 - $16.1) in principle -protected notes; these are banknotes which are linked to an index but are issued by a chartered bank. For Page 44 Municipality of Clarington Page 6 Report FSD-015-25 purposes of this report, the TD Bank Reserve Fund bank account is included in this portfolio. Development Charges Reserve Funds 2.7 The Development Charges Reserve Fund portfolio meets the obligations of the Municipality under the relevant legislation for Development Charges. 2.8 The Municipality closed the two accounts with the ONE Investment Program related to this fund: a Bond account and an Equity account in December 2024. These funds were used to provide funds to the ONE JIB in January 2025 2.9 At December 31, 2024, the DC Reserve Fund included $8.9 million in HISA, $3.0 million in various government bonds, $30.1 million in financial institutions and $1.6 million in corporate debt. Of the investments, $24.0 million were in bonds and $8.1 million in Principal Protected Notes. Strategic Capital Reserve Funds 2.10 The Municipality established the Strategic Capital Reserve Fund portfolio to hold investments for the Strategic Capital Reserve Fund specifically. This reserve fund was created to provide a funding source for economic development activities. The intent was to keep the $10.0 million capital as a source of internal borrowing for economic development capital investments. Interest earned on the investments is transferred to the general fund to offset the tax levy. 2.11 This fund invests $3.9 million (2023 - $2.8 million) in GICs with maturities in 2027.to 2029. Interest rates vary from 2.97 percent to 5.0 percent. Bonds worth $3.6 million (2023 - $4.8 million) with maturities from June 2024 to January 2032 are also held with an interest rate of 1.4 to 3.1 percent. There is also $2.0 million in HISA balances as a result of timing at year end and pending investments. Page 45 Municipality of Clarington Page 7 Report FSD-015-25 Overall Performance 2.12 The total income for the past five years, excluding trust funds and Elexicon, by fund are summarized below: General Fund Development Charges Reserve Fund Non -DC Reserve Funds Strategic Capital Fund $4,303,907 $4,812,802 $3,808,056 $1,060,573 $1,046,664 5,623,697 1,695,019 1,694,340 624,705 923,855 7,895,269 1,582,907 1,600,751 1,123,800 1,343,802 457,160 (402,115) 372,817 612,865 45,342 Total Investment $18,280,033 $7,688,614 $7,475,964 $3,421,943 $3,359,663 3. Compliance with Investment Policy 3.1 The Municipality of invests based on the legal list of investments outlined in O.Reg. 438/97 as amended. The legal list is very prescribed and limits the ability of the Municipality to diversify its investments fully; however, it is relatively secure. Investment Accounts 3.2 The Municipality of Clarington holds its investments through investment accounts with several financial organizations. In determining whether the Municipality is meeting its investment policies, the underlying asset is considered, not the custodian of the investment. 3.3 No new investment accounts were opened in 2023. Page 46 Municipality of Clarington Page 8 Report FSD-015-25 3.4 The Municipality held the following accounts throughout 2024: TD Bank RBC Dominion Securities ONE Investment Inc. BMO Nesbitt Burns CIBC Woodgundy ScotiaBank • General Fund bank • Several small bank accounts • Reserve Fund bank account • Guaranteed Investment Certificates (GICs) • Reserve Fund investment account • DC Reserve Fund investment account • Strategic Capital Fund investment account • Hight Interest Savings Account (HISA) • Equity portfolio investment account • Bonds portfolio investment account • General fund investment • Reserve Fund investment account • DC Reserve Fund investment account • General Fund investments • High Interest Savings Account (HISA) Page 47 Municipality of Clarington Page 9 Report FSD-015-25 3.5 The investment accounts with RBC Dominion Securities, BMO Nesbitt Burns, and CIBC Woodgundy hold a variety of investment instruments which could include GICs, government bonds, and bank deposit notes. 3.6 As a result of the changes to Prudent Investor, it was determined by staff that the Municipality did not require all of the investment accounts and consolidation occurred in December 2024 and was completed in January 2025. 3.7 Over the year end, the accounts with RBC Dominion Securities were transferred in kind to the custody of CIBC Woodgundy and the accounts with RBC Dominion Securities were closed. The ONE Investment portfolios were also closed and those funds were transferred to the ONE JIB. Finally, the HISA with Scotiabank was closed and funds were reinvested. Diversification Risk 3.8 The Municipality holds investments of several different types. It is essential to diversify the types of investments with an extensive portfolio to reduce the risk to the overall portfolio from variations in any one market. The following table shows the December 31, 2024, investments by type as well as the minimum and maximum percentage allowed per the Investment Policy: High Interest Savings o 0 0 Account $51,976,906 24.3 /0 0 /0 100 /o Federal Debt 9,040,318 4.2% 0% 1 100% Provincial Debt 19,837,121 9.3% 0% 80% Municipal Debt 3,3844,184 1.8% 0% 35% Financial Institutions 124,976,725 58.5% 0% 80% Municipality of Clarington Page 10 Report FSD-015-25 Corporate Debt (non- financial) 4,099,594 Total $213,774,850 3.9 The policy guideline for financial institutions is zero percent to 80 percent of the investment portfolio. At December 31, 2024, the Municipality was within this limit. While within the policy limits, the above indicates that the Municipality is concentrated in Canadian financial institutions. Liquidity Risk 3.10 The Municipality attempts to balance cash flows through the timing of the maturity of investments. Staggered maturity dates ensure that cash is readily available to meet the needs of the Municipality and reduces interest rate risk. At December 31, 2024, the maturity dates, and allowable ranges, of investments held by the Municipality were as follows: Up to 90 Days Up to 1 Year 1 to 5 Years 5 to 10 Years $56,111,458 8,416,634 50,174,399 99,072,359 $213,774,850 26.2% 20.0% 100.0% 30.2% 23.5% 46.3% 30.0% 100.0% 0.0% 85.0% 0.0% 50.0% Page 49 Municipality of Clarington Page 11 Report FSD-015-25 3.11 The Municipality's Investment Policy indicates the target range for less than 90 days is 20% to 100%, and less than one year is 30% to 100%. The amount shown above that is 90 days to 1 year should be added to the amount held less than 90 days to determine compliance with the requirement. Total amounts maturing less than one year is $64.5 million, which is 30.2% of the investment portfolio. 3.12 The Municipality's HISA and TD Reserve Fund bank accounts are considered to have a maturity of less than 90 days, as they are available to the Municipality within 24 hours. Concentration Risk 3.13 The Municipality attempts to diversify its investment portfolio by restricting the percentage of investments any single institution may have. Diversification mitigates the risk to the Municipality if an investment becomes insolvent. Note that the Canadian Deposit Insurance Corporation (CDIC) only guarantees investments up to $100,000 per institution, therefore, most of the Municipality's investments are not insured through CDIC. 3.14 At December 31, 2024 the Municipality's investments by institution were as follows: TD Bank - Savings 37,973,104 17.8% 100.0% Royal Bank of Canada 14,883,269 1 7.0% 25.0% Royal Bank of Canada HISA 11,803,640 5.5% 100.0% CIBC - HISA 4,194,714 1 2.0% 100.0% National Bank 4,023,420 1.9% 25.0% Bank of Nova Scotia 31,819,508 1 14.9% 25.0% Page 50 Municipality of Clarington Page 12 Report FSD-015-25 Bank of Montreal 33,147,333 15.5% 25.0% CIBC 32,329,700 15.1 % 25.0% TD Bank 6,778,944 3.2% 25.0% Province of Ontario 13,038,602 6.1 % 20.0% Province of British Columbia 968,290 0.5% 20.0% Province of Manitoba 962,429 0.5% 20.0% Regional Municipality of Durham 1,001,760 0.5% 10.0% Quebec Hydro 1,600,000 0.7% 5.0% City of Toronto 1,512,039 0.7% 10.0% Canada Housing Trust 2,059,140 1.0% 100.0% Canada Housing Trust No 1 3,058,623 1.4% 100.0% Government of Canada 3,922,555 1.8% 100.0% Municipal Finance Authority of BC 831,861 0.4% 25.0% Page 51 Municipality of Clarington Page 13 Report FSD-015-25 I Province of Alberta 1,939,216 Province of Quebec 2,928,585 Ontario Hydro 2,499,594 Regional Municipality of York 498,525 $213,774,850 0.9% 20.0% 1.4% 20.0% 1.2% 5.0% 0.2% 10.0% 3.15 At December 31, 2024, the Municipality was in compliance with restrictions on per institution investments. Throughout 2024, Staff worked to increase diversification for a better overall investment portfolio and risk mitigation. Overall Compliance and Work-out Program 3.16 One of the investments held by the Municipality was a structured note with a Canadian Schedule I Bank; however, it was considered a "Principal -At -Risk" note. This structured note had the potential to mature at an amount below the principal amount. While these notes are similar to Principal -Protected -Notes in that they are tied to an index, the PPN will not drop below the principal amount. 3.17 Once staff became aware that the note was not a PPN, a work-out plan was created. The note was sold from the Municipality's investment holdings along with investments that were in a positive position to realize overall a net gain. This transaction occurred within the month of January 2025. 3.18 As at December 31, 2024, a work-out plan for this investment was in place; therefore, the Municipality was in compliance with O.Reg. 438/97 as amended. 3.19 The Municipality was in compliance with CP-003 Investment Policy (Legal List), which governs money not required immediately, as it requires a work-out plan to be put in place for any investments determined to be ineligible in accordance with the legal list. Page 52 Municipality of Clarington Page 14 Report FSD-015-25 4. Review of Investment Policy Background 4.1 The Municipality of Clarington is required, under the Municipal Act, 2001 to have an investment policy adopted and approved by Council. 4.2 In 2024, the Municipality proceeded to adopt the Prudent Investor Standard. Staff recommended at the time, and continue to recommend, that Council approves two distinct investment policies. There is an overall policy, which governs the Prudent Investor Policy (CP-011) and a Legal List policy which governs the short-term (money required immediately) investment portfolio. The short-term portfolio is not anticipated to require significant changes going forward. Proposed Revised CP-003- Investment Policy (Legal List) (Attachment 1) 4.3 Minor changes are proposed and reflect the change to the Prudent Investor standard. 4.4 Changes to the purpose and legislative authority reflect the change to Prudent Investor and provide clarity as to the purpose and scope of the short-term investment policy. Further, housekeeping changes to titles and department names. Approval requirements for all trades has been changed as a result of updated signing authority policies and to better align with those policies. 4.5 References to investment term limits for five to ten years, and over ten years are removed as a result of the fact that these funds would be considered Money Not Required Immediately. Proposed Revised CP-011 — Investment Policy (Attachment 2) 4.6 The proposed changes to Policy CP-011 Investment Policy are substantially housekeeping in nature and reflect changes by ONE Investment and ONE JIB in their operations. 4.7 References to "portfolio manager" has been changed to "Sub -Investment Manager" to reflect the change to the OCIO. Language throughout the policy has been changed to reflect that change. 4.8 The terms "Long -Term Money" and "Short -Term Money" have been changed to WNW' and WRI" respectively. This change better aligns with the legislation and reflects that there is not a time requirement for the definition of money required immediately or money not required immediately. 4.9 Definitions were added as required and deleted if no longer used in the document. Page 53 Municipality of Clarington Page 15 Report FSD-015-25 4.10 Restricted Special Assets are listed in Schedule A. This is a new definition to provide clarity on several types of investments that are not intended to be included in MNRI, and therefore under the control of the ONE JIB. The Municipality's investments in Elexicon are listed in Schedule A. 4.11 Third -Party Trust Funds and Designated Funds are now listed in Schedule B. The ONE JIB is not responsible for the investment of these funds. The Municipality's trust funds are listed in Schedule B. 4.12 A new section on Alternative Asset Classes has been added. This includes investments such as real estate. The Policy allows this type of investment; however it would still be up to the ONE JIB to determine if these types of investments make sense in the Municipality's Investment Plan. At this time, it is being recommended to permit Alternative Asset Classes to provide the greatest number of options to the Board; however if Council wishes to restrict its use the section may be amended. 4.13 The above changes are recommended by ONE JIB and are an effort to provide consistent wording across the member municipalities. Staff have reviewed the changes proposed and do not have concerns with these changes. 4.14 Staff have reviewed the section on Prohibited Investments. At this time staff are not recommending any changes to this section, that is to say that staff are not recommending prohibiting investments. Given the current trade relationship with the US, there are increased desires to diversify from the this relationship; however, given the sheer size of the US market a prohibition on US investments would not be prudent and would be counter to Council's decision to move to Prudent Investor to open up investment opportunities. 5. Other Information Relevant to Council Board Appointments 5.1 At its meeting of March 28, 2025, the Board of CHUMs (a subsidiary of the Municipal Finance Officers Association of Ontario) appointed Trevor Pinn as the Vice -Chair of ONE Investment Inc for 2025-2026 and Chair for the years 2027-2028. 5.2 Additionally, at its April meeting, the Audit Committee of ONE Investment appointed Trevor Pinn as the Vice -Chair of the Audit Committee. 5.3 Internally, processes are in place to ensure that there is a vetting process in place for investment decisions related to ONE Investment. The annual determination of Money Not Required Immediately, is performed by the Financial Planning team and reviewed by the Treasurer. This is the amount that is provided to ONE JIB, which is independent of ONE Investment. Page 54 Municipality of Clarington Page 16 Report FSD-015-25 Prudent Investor Update 5.4 At its meeting of November 21, 2024, the ONE JIB accepted the Municipality as a member municipality. The Municipality's investment plan was presented to the Board by PH&N for acceptance. 5.5 The Municipality transferred funds of $20 million to the ONE JIB on January 13, 2025 for investment. These funds represent the estimated Money Not Required Immediately, which is required to be given to the ONE JIB for investment. These funds are estimated to have a long-term time frame, as funds are not expected to be pulled from this amount until approximately 10 years (this is reviewed annually). 5.6 The investment plan approved by the ONE JIB utilizes nine different funds all operated by RBC Global Asset Management. The model is considered a long-term 70% equity model and includes: 30% Canadian fixed income, 35% Canadian equities and 35% global equities. 5.7 At March 31, 2025 the ONE JIB fund breakdown was as follows: PH&N Short Term Bond & Mortgage Fund $5,766,577 $5,843,804 RBC Commercial Mortgage Fund 300,000 300,000 PH&N Canadian Equity Value Fund 2,333,333 2,394,833 PH&N Canadian Equity Fund 2,333,333 2,381,510 RBC QUBE Canadian Equity Fund 2,333,334 2,376,265 RBC QUBE Low Volatility US Equity Fund 1,400,000 1,511,606 PH&N US Equity Fund 700,000 672,141 RBC QUBE US Equity Fund 700,000 665,908 Page 55 Municipality of Clarington Page 17 Report FSD-015-25 RBC International Equity Fund PH&N Overseas Equity Fund 2,100,000 2,100,000 2,208,393 2,171,871 $20,066,577 $20,526,331 5.8 The initial $20.0 million investment has resulted in a current market value of $20.5 million which represents a return of 2.6% in 2.5 months. 6. Financial Considerations 6.1 The 2024 Annual report provides historical results, historical results are not indicative of future results due to many external economic factors outside of the control of the Municipality. 6.2 The allowance of "Alternative Asset Classes" provides potential diversification opportunities in real estate or other investments that are not typically traded or held by municipalities within the legal list investments. This opportunity is optional and ONE JIB will review the appropriateness of its use in the investment plan process it undertakes annually. Restriction investments in Alternative Asset Classes would result in less ability to diversify. 6.3 While Canada and the US are currently in a trade dispute, given the fact that the US is the largest investment market in the world, it is not financially prudent to prohibit investments in the US. The ONE JIB investment plan currently has investments in other global markets which mitigates the reliance on the US markets.. 7. Strategic Plan Not Applicable 8. Climate Change Not Applicable. Page 56 Municipality of Clarington Page 18 Report FSD-015-25 9. Concurrence Not Applicable. 10. Conclusion It is respectfully recommended that Council approve the revised policies CP-003 Investment Policy (Legal List) and CP-011 Investment Policy (Prudent). Staff Contact: Trevor Pinn, CPA, CA, Deputy CAO/Treasurer, 905-623-3379 x2602 or tpinn@clarington.net. Attachments: Attachment 1 — Draft Revised CP-003 — Investment Policy (Legal List) red -line version Attachment 2 — Draft Revised CP-011 — Investment Policy (Prudent) red -line version Interested Parties: The following interested parties will be notified of Council's decision: • ONE JIB • CIBC Woodgundy • BMO Nesbitt Burns Page 57 Council Policy Attachment 1 to Report FSD-015-2 Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Number: CP-003 Title: Investment Policy (Legal List) Type: Financial Management Sub -type: Investments Owner: Financial Services Financial Planning Approved By: Council Approval Date: July 3, 2018 Effective Date: July 3, 2018 Revised Date: May 29, 2023 Applicable to: All Staff 1. Legislative or Administrative Authority: 1.1. Effective November 27. 2024. the Municipality of Clarinaton officiall met the requirements under Section 418.1 of the Municipal Act to follow the Prudent Investor Standard. The Municipality has entered into an agreement with the ONE Joint Investment Board (ONE JIB) to meet the requirement of having an investment board under Section 418.1. 4-.4-.1.2. This policy was developed in accordance with Section 418 of the Municipal Act, 2001, which authorizes a municipality to invest in prescribed securities, in accordance with prescribed rules, money that it does not require immediately. The policy follows Ontario Regulation 438/97, Eligible Investments, Related Financial Agreements and Prudent Investment 2. Purpose: 2.1. To provide guidance for the investment of funds deemed "Money Required Immediately". 2-.4-.2.2. The Municipality of Clarington strives for the optimum utilization of its cash resources within statutory limitations and the basic need to protect and preserve capital, while maintaining solvency and liquidity to meet ongoing financial requirements. Page 1 of 17 Formatted: Rght Formatted: Font: 12 pt Formatted: Header distance from edge: 0.6" Page 58 Council Policy Attachment 1 to Report FSD-015-2 Clarftwn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 3. Scope: 3.1. This policy includes all funds that are managed by the Municipality of Clarington o ptforthe M UR'Gipal't o�+.o.+'n Rex'GGR GF 61. 4. Definitions: 4.1. Asset Backed Securities — Fixed income securities (other than a government security) issued by a Special Purpose Entity, substantially all of the assets of which consist of Qualifying Assets. 4.2. Basis Point — A unit that is equal to 1/100th of 1 % and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed -income security. 4.3. CHUMS Financing Corporation (CHUMS) — A subsidiary of the Municipal Finance Officers Association of Ontario (MFOA) which in conjunction with the Local Authority Services Limited (LAS) operates the ONE Investment Program. 4.4. Credit Risk - The risk to an investor that an issuer will default in the payment of interest and/or principal of a security. 4.5. Discount — The amount by which the par value of a security exceeds the price paid for the security. 4.6. Diversification —A process of investing assets among a range of security types by class, sector, maturity and quality rating. 4.7. Duration — A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed -income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates. 4.8. Environmental, Social and Governance (ESG) Investing — considering and integrating ESG factors into the investment process, rather than eliminating investments based on ESG factors alone. Page 2 of 17 -- Formatted: Right Formatted: Font: 12 pt Page 59 Council Policy Attachment 1 to Report FSD-015-2 Clarftwn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Integrating ESG information can lead to more comprehensive analysis of a company. 4.9. Holding Period Classification — Classification of investments based on the intended period the Municipality would hold the asset, as follows: 4.9.1. Cash Equivalent: short-term highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. 4.9.2. Short-term: securities with a holding period of one year or less. 4.9.2.4.9.3. Medium -term: securities with a holding period of one to thraP 4�4.9.4. Long-term: securities with a holding period of greater than am --three years. 4.10. Liquidity — A measure of an assets' convertibility to cash 4.11. Local Authority Service Limited (LAS) — A subsidiary of the Association of Municipalities of Ontario (AMO) which in conjunction with CHUMS are members of the ONE Investment Inc. 4.12. ONE Investment Inc. — An incorporated not -for -profit organization which includes investment portfolios available for Ontario municipalities. Formerly was the ONE Investment Program which is a professionally managed group of pooled investments that meet eligibility criteria as defined by regulations under the Municipal Act. Also includes the High Interest Savings Account (HISA). 4.13. Market Risk — The risk that the value of a security will rise or decline as a result of changes in market conditions. 4.14. Market Value — The current market price of a security. 4.15. Maturity — The date on which payment of a financial obligation is due. The final stated maturity is the date on which the issuer must retire a bond and pay the face value to the bondholder. Page 3 of 17 --- Formatted: Right Formatted: Font: 12 pt Page 60 Attachment 1 to Report FSD-015-2 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4.16. Par — The face value or principal value of a bond. 4.17. Premium — The amount by which the price paid for a security exceeds the security's par value. 4.18. Principal — The face or par value of a debt instrument or the amount of capital investment in a given security. 4.19. Rate of Return — The yield obtainable on a security based on its purchase price or its current market price. Yield reflects coupon, term, liquidity and credit quality. 4.20. Schedule I Bank — Schedule I banks are domestic banks and are authorized under the Bank Act to accept deposits, which may be eligible for deposit insurance provided by the Canadian Deposit Insurance Corporation. 4.21. Schedule II Banks — Schedule II banks are foreign bank subsidiaries authorized under the Bank Act to accept deposits, which may be eligible for deposit insurance provided by the Canada Deposit Insurance Corporation. Foreign bank subsidiaries are controlled by eligible foreign institutions. 4.22. Sinking Fund — Money accumulated on a regular basis, through regular contributions and interest earnings, in a separate custodial account that is used to redeem debt securities by a specified date. 4.23. Weighted Average Maturity (WAM) — The average maturity of all the securities that comprise a portfolio. 4.24. Yield to Maturity (YTM) — The annual return on a bond held to maturity when interest payments and price appreciation (if priced below par) or depreciation (if priced above par) are considered 5. Policy Requirements: General 5.1. For money -required immediately, the Municipality follows the Eligible Investment rules outlined in O.Reg.438/97. Page 4 of 17 Formatted: Rght Formatted: Font: 12 pt Page 61 Attachment 1 to Report FSD-015-2 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5A-.5.2. The primary objectives of the investment short-term investment program, in order of priority, shall be: 5-.2-.5.3. Adherence to Statutory Requirements . .1. All investment activities must be made in accordance with Section 418 (1) of the Municipal Act, 2001,as amended 5.2..3.5.3.2. Investments, unless limited further by Council, will be those deemed eligible under O.Reg 438/97 as amended. 5-3 5.4. Preservation of Capital 5 2 1 5.4.1. Safety of principal is an important objective of the short-term investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. 5-.3-.2-.5.4.2 Staff shall mitigate credit risk through the following: • Limiting investments to safer types of securities; • Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 544-.5.4.3. Staff shall mitigate interest risk through the following: Page 5 of 17 Formatted: Right Formatted: Font: 12 pt Page 62 Council Policy Attachment 1 to Report FSD-015-2 Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 • Structuring the investment portfolio so that securities mature to meet ongoing cash flow requirements, thereby reducing the need to sell securities on the open market prior to maturity; Investing operating funds primarily in shorter -term securities or approved investment pools; and �4.5.5. Maintaining Liquidity 5-.44-.5.5.1. The investment portfolio shall remain sufficiently liquid to meet all operating or cash flow requirements and limit temporary borrowing requirements. This shall be done where possible by structuring the portfolio such that securities mature concurrent with anticipated cash demands. 5:4.2.5.5.2. The portfolio shall consist largely of securities with active secondary or resale markets to ensure liquidity. A portion of the portfolio may be placed in local government investment pools which offer liquidity for short-term funds. 5-.5-.5.6. Competitive Rate of Return .1. Notwithstanding the other objectives of this policy, the Municipality shall maximize the rate of return earned on its investment portfolio by implementing a dynamic strategy as part of the investment program. 5.5.2.5.6.2. Diversification, as well as ensuring safety of principal by limiting exposure to credit, sector or term risk, provides opportunities to enhance the investment return on the Municipality's portfolio. Standards of Care 5�5.7. Prudence Page 6 of 17 Formatted: Rght Formatted: Font: 12 pt Formatted: Indent: Left: 2.13", No bullets or numbering Page 63 Council Policy Attachment 1 to Report FSD-015-2 Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5-.64-5.7.1. Investments shall be made in accordance with the policy, under the prevailing circumstances. Consideration of the probable safety of the principal as well as income to be derived should be of primary concern. F6.2.5.7.2. Staff acting in accordance with procedure and this investment policy and having exercised due diligence, shall be relieved of personal responsibility for any individual security's credit risks or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidation or sale of securities are carried out in accordance with the terms of this policy. 5-.7-.5.8. Ethics and Conflict of Interest 5.7-.4-.5.8.1. Employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair ability to make impartial decisions. 6-.T-.2-.5.8.2. Employees involved in investment procedures shall disclose all material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. 5-74-.5.8.3. Employees and officers shall not undertake personal investment transactions with the same individual with whom business is conducted on behalf of the Municipality. 574.5.8.4. If a staff member of the Finance and Technoloov Department or any elected or appointed member of the Municipality is party to, or has a direct or indirect beneficial interest in an investment transaction of the Municipality, he or she must provide full disclosure of that interest to the Direster e€ RRa%eDeauty CAO/Treasurer (or designate). The Direster of FiRa%92uty CAO/Treasurer (or designate) will determine Page 7 of 17 Formatted: Right Formatted: Font: 12 pt Page 64 Attachment 1 to Report FSD-015-2 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 whether the Municipality's investment is to continue to be retained or sold forthwith. 5-.�5.9. Safekeeping and Custody 544._J.2.1. All securities shall be held for safekeeping by a financial institution approved by the Municipality. Individual accounts shall be maintained for each portfolio. All securities shall be held in the name of the Municipality. 5R :2 5.9.2. The depository shall issue a safekeeping receipt to the Municipality listing the specific instrument, rate, maturity and other pertinent information. On a periodic basis (preferably monthly), the depository will also provide reports, which lists all securities held by the Municipality, the book value of holdings and the market value as of month -end. 5-.19-.5.10. Authority 5 9 1 5.10.1. The Deputy CAO/Treasurer, or designate, has overall responsibility of the investment portfolio. The Deputy CAO/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and shall exercise control over that staff. The Deputy CAO/Treasurer or designate have the authority to make investment decisions for the Municipality. 5.9.2.5.10.2. The authority to enter into arrangements with banks, investment dealers and brokers, and other financial institutions for the purchase, sale, redemption, issuance, transfer and safekeeping of securities shall be done in a manner that conforms to the Municipal Act, 2001 and the Municipality's policies, including the Delegation of Authority By-law. 5.10.5.11. Approval Requirements Page 8 of 17 Formatted: Right Formatted: Font: 12 pt Page 65 Attachment 1 to Report FSD-015-2 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.10 2.5.11.1. Signing authority for transactions from the Municipality's bank account to an investment account would follow the signing authorities outlined in the Banking Signing Authorities Policy. 5.11.5.12. Council Reporting 544-.4-.5.12.1 The Deputy CAO/Treasurer shall provide an annual investment report to Council which shall contain at a minimum: A statement about the performance of the portfolio of investments during the period covered by the Report; The balance of the current outstanding investment portfolio; • A statement as to whether or not all investments were in accordance with the investment policies and goals of the Municipality; If applicable, a description of the estimated proportion of investments that are invested in the Municipality's own long-term and short-term securities and a description of the change, if any, in the estimated proportion since the previous report; If applicable, a record of the date of each transaction in or disposal of its own securities, including a statement of the purchase and sale price of each security; and Page 9 of 17 Formatted: Right Formatted: Font: 12 pt Page 66 Attachment 1 to ReDort FSD-015-2 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 • Contains such other information that the Council may require or that, in the opinion of the Treasurer or designate, should be included. 5.11.2.5.12.2. If an investment made by the Municipality is, in the Treasurer or designate's opinion, not consistent with the investment policies and goals adopted by the Municipality, the Treasurer shall r pert the iR isteRGY + GO„n. ;'create a work-out plan in accordance with O.Req 438/97 within 30 days after becoming aware of it. 5.12.5.13. Eligible Investments and Statutory Requirements 5.12.1.5.13.1. The Municipality maintains the following funds: General Fund Non -Development Charges Reserve Fund Development Charges Reserve Fund To provide a source of funding for operating and non -DC supported capital expenditures. To provide a source of funding for reserve funds which are not funded by Development Charges. Typically requirements relate to the Municipality's capital plan. To provide a source of funding for growth -related The investment horizon for this fund is typically within 24 months. However longer -term investments may be made to recognize increased returns. The investment horizon for these funds is typically 5 years. There will be deposits annually from budgeted contributions as well as withdrawals to support the annual budget requirements. The DC study has a horizon of 5 years, within this fund there will be Page 10 of 17 Formatted: Right Formatted: Font: 12 pt Page 67 Council Policy Attachment 1 to ReDort FSD-015-2 Clarftwn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Strategic Capital Fund Trust Funds activities funded through withdrawals and deposits development charges. annually. Long-term asset management strategic financing tool; Investment in debt financing opportunities through internal debenture issuance; investment in servicing of non-residential areas as a front -ending tool May include funds held for the perpetual care of cemeteries under the control of the Municipality. Trusts may also include bequests made to the Municipality. These The key investment driver is to ensure liquidity in the portfolio that can be used to finance approved growth -related expenditures. This fund has an investment horizon of over 5 years. The key investment driver is to earn a return which can be used to fund other activities while preserving capital. This fund does not see significant levels of transactions annually and is more focused on specific projects which qualify under the establishing by-law. This fund has an investment horizon of 5 years. As these funds are held in trust for other parties, the key investment driver is maintain the capital while Page 11 of 17 Formatted: Right Formatted: Font: 12 pt Council Policy Attachment 1 to Report FSD-015-2 C]aFftMR If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 bequests may be earnin restricted in use, which return. varies based on the individual. 5.12.2.5.13.2. The above categories are funds which manage similar accounts. For example the Development Charge Reserve Fund invests for all individual DC Reserve Funds, individual accounts are not required to be established. An individual investment security may be made utilizing funds from different sources (i.e. a GIC in the DC Reserve Fund may relate to general government, parks and road DC reserve funds). 5.13.5.14. Eligible Securities E1215.14.1. Eligible securities are prescribed under O.Reg 438/97, as amended. 5.14.2. Investments shall be diversified by: • Limiting investments to avoid over -concentration in securities from a specific issuer or sector (excluding Government of Canada securities); • Limiting investment in securities to those that have higher credit ratings; • Investing in securities with varying maturity dates; • Investing primarily in liquid, marketable securities which have an active secondary market, to ensure appropriate liquidity. Page 12 of 17 Formatted: Right Formatted: Font: 12 pt Page 69 Attachment 1 to Report FSD-015-2 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.14.5.15. Investment Limitations 544-.4-.5.15.1. To promote diversification, the following percentage weightings for each type of investment within the portfolio shall be established and maintained: Federal Debt 100% Provincial Debt 80% 20% per province Municipal Debt 35% 10% per municipality (except the Region of Durham) Municipal Corporation Equity 50% 50% per municipal corporation Financial Institutions 80% 25% per financial institution Corporate Debt (non -financial) 10% 5% per corporation ONE Investment Pools 25% 15% per portfolio . .1 .2. To promote diversification and ensure liquidity, the following percentage weightings for the investment portfolio shall be established and maintained: Page 13 of 17 Formatted: Right Formatted: Font: 12 pt Formatted Table Page 70 Council Policy Attachment 1 to Report FSD-015-2 C]aF*MR If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 From 1 year up to, but not including, 5 0% to 85% years 8°k-to-59% 40 years i �i r�ir+Tr_ �rs7� 54 4-3-5.15.3. cte d rsec,.ritio ..Gooding ton (49) yeaFG, pFeyide d the 544.4-.5.15.4. Portfolio size limitations listed above will be applicable based on the allowable percentage of the portfolio on the day the investment is made. Limitations relate to the total investment portfolio and are to be applied to the Municipalities' separate funds that it manages. 544-5-5.15.5 When determining the portfolio limitation: The total portfolio (denominator) shall include all cash, cash equivalents, short-term investments and long-term investments (excluding investment in Elexicon Group Inc.) Page 14 of 17 Formatted: Right Formatted: Font: 12 pt Formatted Table Page 71 Council Policy Attachment 1 to Report FSD-015-2 Clarftwn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Funds held within general or high interest savings accounts shall not be used to determine the maximum category or sector limitations (numerator). For further clarification, funds held in a bank account do not count towards the 25 per cent limit for the institution. 5.15.6. The Municipality may invest in US denominated funds, as allowed by regulation, provided that the purpose of the investment relates to a pending or anticipated purchase which is to be denominated in US funds and it is prudent to mitigate from foreign exchange risk. 5.15.5.16. Environmental, Social and Governance (ESG) Investing 5.15.1.5.16.1. The Municipality supports incorporating ESG investing into the Portfolio. The Municipality believes that well - managed companies are those that demonstrate high ethical and environmental standards and respect for their employees, human rights, and the communities in which they do business and that these actions contribute to long-term financial performance. 5.16.5.17. Policy Review 5.16.1.5.17.1. This policy shall be reviewed annually and updated as necessary. 6. Roles and Responsibilities: 6.1. Council is responsible for: 6.1.1. Setting the investment policy for the Municipality. 6.1.2. Determining the risk tolerance of the Municipality. Page 15 of 17 Formatted: Right Formatted: Font: 12 pt Page 72 Attachment 1 to Report FSD-015-2 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 6.2. Deputy CAO/Treasurer is responsible for: 6.2.1. Establishing internal controls around the investment and banking process. 6.2.2. Determining an investment plan in compliance with the Investment Policy. 6.2.3. Ensuring the Municipality's investment plan is in compliance with legislation. 6.2.4. Reporting to Council investment information in compliance with the Policy and the legislation. 6.3. Directors / Managers are responsible for the following within their scope of authority: 6.3.1. Making investment decisions in compliance with the Investment Policy. 6.4. All Staff are responsible for: 6.4.1. Following the Investment Policy. 7. Related Documents: 7.1. O.Reg.438/97: Eliqible Investments, Related Financial Agreements and Prudent Investment 7.2. Delegation of Authority By-law 8. Inquiries: 8.1. Manager, Financial Planning/Deputy Treasurer Page 16 of 17 Formatted: Right Formatted: Font: 12 pt Page 73 Council Policy Attachment 1 to Report FSD-015-2 Clarftwn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 9. Revision History: Date Description of Changes Approved By June 12, 2023 Update format to new policy template Add definition and section on Environment, Social and Governance (ESG) Investing Council April 22, 2024 Policy name changed with additional Investment Policy added (CP-011) Council May XX, 2025 Removed references which are no Council longer required as a result of moving to Prudent, including term limits beyond 5 years (removed). Page 17 of 17 --- Formatted: Right Formatted: Font: 12 pt Page 74 Attachment 2 to Report FSD-015-25 ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Number: CP-011 Title: Investment Policy Type: Financial Management Sub -type: Investments Owner: Finance and Technology Financial Planning Approved By: Council Approval Date: April 22, 2024 Effective Date: April 22, 2024 Revised Date: Applicable to: Finance and Technology 1. Legislative or Administrative Authority: 1.1. This policy was developed in accordance with Section 418.1 of the Municipal Act, 2001, which authorizes a municipality to invest money that it does not require immediately in accordance with the prudent investor standard. The policy follows the Ontario Regulation 438/97, Eligible Investments, Related Financial Agreements and Prudent Investment. 2. Purpose: 2.1. This Investment Policy Statement (IPS) governs the investment of the Municipality's Money Not Required Immediately (MNRI) and Money Required Immediately (MRI). It is intended, among other things, to direct the Deputy CAO/Treasurer, Finance and Tech nology/Treas6i re r in the investment of MRI and to direct ONE Joint Investment Board (ONE JIB) in the investment of MNRI by implementing the Authorizing By-law 2024-016 pursuant to which the Municipality authorized the establishment of guidelines for the prudent management of the Municipality's MNRI pursuant to section 418.1 of the Act. 2.2. In addition to the Municipality's MRI and MNRI, the Municipality is from time to time entrusted with the management of money and investments for a third - party beneficiary ("third -party trust funds"). The Municipality's Third -Party Trust Funds are listed in Schedule B of this Policy. 2.3. There are also sources of money in which the Municipality may have an indirect interest but which the Municipality currently has no authority to invest. Page 1 of 34 Formatted: Font: 12 pt Page 75 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt GINarington Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Such sources of money, referred to in this IPS as "designated funds", are listed in Schedule A attached hereto. The designated funds are identified in this IPS for the sole purpose of enabling the Municipality to better see, on an aggregated basis, the various financial assets in which the Municipality has an interest. The Municipality is not responsible for the investment activities or performance of designated funds. 2.4. The goals of this IPS are to: a) Define and assign responsibilities for investment of MRI and MNRI; b) Describe the Municipality's responsibilities with respect to third -party trust funds and designated funds; c) Ensure compliance with the applicable legislation; d) Direct ONE JIB as to the Municipality's investment goals and risk tolerance; e) Provide guidance and limitations regarding the investments and their underlying risks; f) Establish a basis of evaluating investment performance and the underlying risks; and, g) Establish a reporting standard to Council. 2.5. This IPS applies to employees of the Municipality, to ONE JIB and to the employees of ONE Investment. ONE JIB, the Deputy CAO, Finance and Technology/Treasurer, and any agent or advisor providing services to ONE JIB in connection with the investment of the portfolio shall accept and strictly adhere to this IPS. 3. Scope: 3.1. This policy includes all funds that are managed by the Municipality of Clarington. Page 2 of 34 Page 76 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4. Definitions: 4.1. Act - means the Municipal Act, 2001, S.O. 2001, c. 25, as amended from time to time. 4.2. Agent - means any administrator, Custodian, payment servicer, portfolio manager, investment counsel, consultant, banker, broker, dealer or other service provider engaged or appointed by ONE JIB and authorized by ONE JIB to exercise any of the functions of ONE JIB pursuant to a written agreement, in the manner and to the extent provided in the Regulation and without limiting the generality of the foregoing, Agent includes ONE Investment. 4.3. Alternative Assets - means investments outside traditional investments such as equities, fixed income, and cash which may include, hedge funds, private equity, natural resources, real estate and infrastructure. Alternative investments are typically less liquid than traditional investments, are appropriate only for allocations with a long investment horizon. 4-.-3-.4.4. Asset Class - An asset class is a specific category of assets or investments, such as cash, fixed income, equities, alternative investments, real estate etc. 4-.4-.4.5. Asset Mix (or Asset Allocation) - means the proportion of each asset class in a portfolio. Asset classes include bank deposits, money market securities, bonds and equities, among other things. 4�4.6. Authorizing By-law - means a by-law of a Founding Municipality which authorizes: (i) the entering into of the Initial Formation Agreement; (ii) the establishment of ONE JIB; (iii) the approval of the Client Questionnaire and the adoption of the IPS; and (iv) the entering into of the ONE JIB Agreement. 4-.6-.4.7. Benchmark - means an index that is representative of a specific securities market (e.g. the S&P/TSX Composite Index, the FTSE/TMX 91 Day T-bill Index, etc.) against which investment performance can be compared. Performance benchmarks refer to total return indices in Canadian dollar terms. 4.8. CHUMS Financing Corporation (CHUMS) - means a subsidiary of Municipal Finance Offcers' Association of Ontario (MFOA) which, in conjunction with LAS, established ONE Investment. Page 3 of 34 Page 77 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4.7.4.9. CFA Institute - refers to the global, not -for -profit professional association that administers the Chartered Financial Analyst (CFA) and the Certificate in Investment Performance Measurement (CIPM) curricula and examination programs worldwide, publishes research, conducts professional development programs, and sets voluntary, ethics -based professional and performance reporting standards for the investment industry. a. Credm R,ISk rneans the pessibi"Ity Af R'Ass AR"I Rg from a be is failure repay a Inan n eet nnn+raGt al ebligationc That is the r oL that a le-Rder rRay nt r e the awed PFORGipal and !Rte Fe St 4�4.10. Custodian - means a specialized financial institution that is responsible for safeguarding a municipality's investments and is not engaged in "traditional" commercial or consumer/retail banking. Global custodians hold investments for their clients in multiple jurisdictions around the world, using their own local branches or other local custodian banks ("sub -custodians" or "agent banks"). 4.11. Designated Funds - means source(s) of money in which the Municipality may have an indirect interest but which the Municipality currently has no authority to invest. Designated Funds are listed in Schedule B of this Policy. 4-4&4.12. Derivative - A derivative is a contract between two or more parties whose value is based on an agreed -upon underlying financial asset (like a security) or set of assets (like an index). Common underlying instruments include bonds, commodities, currencies, interest rates, market indexes, and stocks. 4.13. Diversification - means a risk management technique that mixes a variety of investment types within a portfolio to help mitigate portfolio risk. A diversified portfolio holds different kinds of investments to improve the risk adjusted returns. 4.11.4.14. Environmental, Social and Governance (ESG) Investing - means considering and integrating ESG factors into the investment process, rather than eliminating investments based on ESG factors alone. Integrating ESG information can lead to more comprehensive analysis of a company. Page 4 of 34 Page 78 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4.12. fnterpgt Rate Risk refers to he pessibili�th t th�yal,-o of A heRd r other fiverl_inrpme in ec+mon+ well of iffer As the result of a nhonne in n+e re c+ re+ec In+erec+ re+e r sk r n hem ed +e help imreve estmon+ ei tGeMec 4.13 4.15. Internal Controls — means a system of controls that may include authorities, policies, procedures, separation and segregation of duties, compliance checks, performance measurement and attribution, reporting protocols, measures for safekeeping of property and data, and the audit process. 4.14.4.16. Investment Plan — means the investment plan applicable to the LGPg- Term Mene., and adopted by ONE JIB under the Regulation, as it may be amended from time to time. 4.15.4.17. Investment Policy Statement (IPS) — means the investment policy applicable to the Municipality's investments adopted and maintained by the Council of the Municipality for I en Term MepeyMNRI under the Regulation, and for Cher+ Term MepeyMRI, as the same may be amended from time to time. The IPS may also apply to the money and investments held by the Municipality for the benefit of persons other than the Municipality itself and may make reference to source(s) of money in which the Municipality may have an indirect interest but which the Municipality has no authority to invest. 4.16.4.18. JIB — is short for Joint Investment Board and means a joint municipal service board that is established under section 202 of the Act by two or more municipalities for the purposes of Part II of the Regulation. 4.17.4.19. Legal List Securities — means the securities and other investments and financial instruments that are included from time to time in Part I of the Regulation. 4.18.4.20. Leverage — means an investment strategy of using borrowed money — specifically, the use of various financial instruments or borrowed capital —to increase the potential return of an investment. Typically leverage also tends to increase investment risks. 4.21. Liquidity — means the ability to turn an investment into cash relatively quickly, without a substantial loss in value. For example, a savings account is more liquid than real estate. Page 5 of 34 Page 79 Attachment 2 to Report FSD-015-25 ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4.22. Local Authority Services (LAS) — means an entity which, in conjunction with MFOA/CHUMS, established ONE Investment. 4.19.4.23. Local Distribution Corporation or LDC — means a corporation incorporated under section 142 of the Electricity Act, 1998. 4.24. Market Value — means the price at which a security is trading and could Presumably be sold. Also known as Fair Value it represents the current value of the investment. 4.25. Maturity — means the date upon which the principal or stated value of an investment becomes due. 4-21. AAndprn,Pnrtfnlmn Theory aneaRsathheery ef pe ftf lie gerneat that 'Arks +ewards the per+felie a a where rather than +ewards the pr6ldeRno f r. rh in os+mon+ in the per+feliThis inre s fe-U-nd in the QFA Inc+ifi i+o C+onralr-ls r.f. Dros+ino 6.Ionrlbeek 4.22.4.26. Money Required Immediately (MRI) — municipal funds not included in the Money Not Required (MNRI) definition included in this policy, funds are governed in accordance with Section 418 of the Act. 4.23.4.27. Money Not Required Immediately (MNRI) — long term municipal funds defined in this policy, that are governed by the Prudent Investor Standard in accordance with Section 418.1 of the Act. 4.28. Municipal Services Corporation (MSC) — means a corporation established under section 203 of the Act in accordance with the applicable regulation (Ontario Regulation 599/06). 4.24.4.29. Municipality — means the Municipality of Clarington. 4.25.4.30. OCIO Offering - means the comprehensive investment program made available through ONE Investment as agent for ONE JIB, where a qualified Page 6 of 34 Formatted: Font: 12 pt Formatted: Font: Bold Formatted: Font: Not Bold ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 investment manager is engaged to advise a Participating Municipality with regard to the investment of the Participating Municipality's MNRI and to invest and manage such MNRI in accordance with the terms and conditions set out in the ONE JIB Agreement. mea-ins the n rehensi„e investment pregram made ilahle through ONE u nt to wh'nh a dulyqii+ied'nv�stR�ent rnaRager who is a.n Cv+emol Portfolio Manager is GRgaged by ONIC 1pyPstrnp to advise o or+idpatinn FRURiGipality with r arrl to the investment of the or+ioipatinn m ality's Managed Assets and to invest -and MaRage oh Managed Assets i orrlonoe �e/+h the terms and conditions e+ eu t On the ONE jII3A g ree r"rrrc-rnt. 4.31. ONE Investment — means the not -for -profit corporation established b CHUMS and LAS which provides certain management, administrative and other services to ONE JIB as its agent. 4.26.4.32. ONE JIB - means ONE Joint Investment Board, established by certain founding municipalities under section 202 of the Act as a JIB for purposes of Part II of the Regulation, which is the duly appointed JIB for the Municipality, as constituted from time to time and which acts in accordance with the Act, the Regulation, the ONE JIB Agreement, including the Terms of Reference, this IPS and the Investment Plan. 4.27.4.33. ONE JIB Agreement — means the agreement effective as of TBC, entered into in accordance with the requirements of the Regulation, pursuant to which ONE JIB has control and management of the Municipality's LeRg—Tern-. MOReyMNRI. 4.28.4.34. Participating Municipality - means from time to time each of the municipalities for whom ONE JIB acts as the JIB under the terms of the ONE JIB Agreement. 4.29.4.35. Pooled Fund - means a unit trust established under a trust instrument, generally not available to the public, in which institutional, sophisticated or high net worth investors contribute monies that are invested and managed by an External Portfolio Manager. Monies are pooled or combined with monies of other investors. 4.30 4.36. Portfolio - means any collection of funds that are grouped together and required for specific purposes. Page 7 of 34 Page 81 ,Attachment 2 to Report FSD-015-25 - Formatted: Font: 12 pt GINarington Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4.31.4.37. Proxy Voting - means a legal transfer to another party of a shareholder's right to vote thereby allowing shareholders who cannot attend meetings to participate. External Portfolio Managers usually vote proxies on behalf of their clients. 4.32.4.38. Prudent Effective Date - means the date on which the prudent investor regime applies to the Municipality. 4.39. Prudent Effective Date Agreement — means an agreement entered into by the Municipality and ONE Investment that sets out the day on which the prudent investor regime starts to apply to the Municipality. 4224.40. Prudent Investor Standard - means the standard that applies when the Municipality invests money that it does not require immediately under section 418.1 of the Act. It requires the Municipality to exercise the care, skill, diligence and judgment that a prudent investor would exercise in making such an investment and the standard does not restrict the securities in which the Municipality can invest. The Prudent Investor Standard makes use of Modern Portfolio Theory and applies the standard of prudence to the entire portfolio in respect of the Municipality's' eng Term Mepe MNRI rather than to individual securities. It identifies the fiduciary's central consideration as the trade-off between risk and return as found in the CFA Institute Standards of Practice Handbook. Page 8 of 34 Page 82 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4.41. Rebalancing - means the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling securities in a portfolio to maintain an original or desired level of asset allocation or risk. 4.34.4.42. Regulation - means Ontario Regulation 438/97. 4.43. Restricted Special Assets - means investments specified by this Policy and held by the Municipality as of the Prudent Effective Date, where ONE JIB is not able to exercise control. Restricted Special Assets are listed in Schedule A of this Policy and are not considered to be MNRI. 4-35-.4.44. Risk - means the uncertainty of future investment returns or chance of loss of capital. 4.36.4.45. Risk Tolerance - means the financial ability and willingness to absorb a loss in return for greater potential for gains. 4.46. Safekeeping - means the holding of assets (e.g. securities) by a financial instibitinn 4.37.4.47. Securities Lending - means loaning a security to another market participant. The borrower is required to deliver to the lender, as security for the loan, acceptable collateral with value greater than the value of the securities loaned. The Securities Lending program is managed by the Custodian or another appointed agent on behalf of investors. A Securities Lending program is widely used by institutional investors to generate additional marginal returns on the total portfolio. 4.39.4.48. Sinking Fund - means a fund established to fulfil the requirements to make annual contributions in respect of various debenture issues wherein money is to be regularly set aside for the payment of the principal of the debentures at maturity. Page 9 of 34 Page 83 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4.40.4.49. Sinking Fund Required Contributions (Annual Sinking Fund Requirement) — means the amount of money to be set aside each year for deposit into a sinking fund or a retirement fund, as applicable, for each sinking fund and term debenture issue in accordance with the Municipality's debenture by-laws. 4.41.4.50. Sinking Fund Required Earnings — means the investment earnings needed for the Sinking Fund Contributions to continue to grow to a value sufficient to repay the principal at maturity for each issue of sinking fund and term debentures. 4.42.4.51. Sinking Fund Excess Earnings — means the investment earnings in excess of the required earnings. 4.52. Sub -Investment Manager - means an asset management firm or investment consultant, acting as a sub -investment manaqer for ONE JIB that provides investment advice and professional services and is involved in the implementation and operational aspects of the OCIO Offering, and that has full responsibility for the investment and management of a Participating Municipality's MNRI through ONE Investment, based on an IPS approved by the Council of the municipality. 4.53. Third -Party Trust Funds — means money over which the Municipality exercises both management and policy control but whose assets are not owned by the Municipality. These funds are governed by a variety of agreements and, in some cases, by legislation. Some funds may have externally mandated investment policies, and some may have investment policies that are determined by the Municipality. Third -Party Trust Funds are listed in Schedule B of this IPS. 4.54. Trust Fund — means a fund which consists of assets that have been conveyed or assigned to a trustee to be administered as directed by agreement or statute. As a result, a trustee holds title to the assets for the purpose of providing benefits, and being accountable, to a beneficiary. The Municipality is the trustee of funds that are to be used for specific purposes by the Municipality or any related parties. Page 10 of 34 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 4.43.4.55. Treasurer — means the Deputy CAO, Finance and Technology/Treasurer, or other individual appointed by Council to fill role of Treasurer as required by the Municipal Act, 2001 5. Policy Requirements: General Statements 5.1. Investments of Money Required Immediately (MRI) will, in accordance with this IPS and Section 418 of the Act, only be made in Legal List Securities. 5.2. Investments of Money Not Required Immediately (MNRI) are governed by the Prudent Investor Standard in accordance with Section 418.1 of the Act. This standard is similar to that which governs trustees and pension fund administrators and creates a fiduciary responsibility. Prudent investment in compliance with the Act and the Regulation enhances the potential for the Municipality to earn improved risk -adjusted rates of return. 5... ^ ,,d,.,oStFTi�R� that +hen .,i�ality holds as third Est funds e hoc o n+n roc+ in o rlooig Rate J f� inds will he of �hion+ +n o nlinohlo lorriclo+i r.n r nd o related o onto OF ORStFUrReRtS. -54.5.3. The Act provides that the Municipality, and therefore ONE JIB, must consider the following criteria in planning investments of MNRI, in addition to other criteria relevant to the circumstances: a) General economic conditions; b) The possible effect of inflation or deflation; c) The role that each investment plays within the Municipality's total portfolio of investments; d) The expected total return from income and the appreciation of capital; and e)Needs for liquidity, regularity of income and preservation or appreciation of capital. Page 11 of 34 Page 85 ,Attachment 2 to Report FSD-015-25 - Formatted: Font: 12 pt GINarington Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 e-)5.4. Money and investments that the Municipality holds as Restricted Special Assets, Third -Party Trust Funds or has an interest in as Designated Funds will be subject to applicable legislation and any related agreements or instruments. Page 12 of 34 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciff;W4011 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.5. Use of Prudent Investor Standard 5.5.1. For MNRI, the standard to be used by the Municipality and ONE JIB shall be the Prudent Investor Standard as required by section 418.1 of the Act and Part II of the Regulation in the context of managing the Municipality's MNRI and investments thereof. Investments shall be made with the care, skill, diligence, and judgment, taking into account the prevailing circumstances, that persons of prudence, discretion and integrity would exercise in the management of investments, considering the necessity of preserving capital as well as the need for income and appreciation of capital. The Act includes a duty to obtain the advice that a prudent investor would obtain under comparable circumstances. 5.5.2. Officers, employees and investment agents acting in accordance with written procedures and the IPS and exercising due diligence shall take all necessary actions to optimize performance of investments on a portfolio basis, taking into account the prescribed risk and other parameters set out in this IPS and market factors. The Municipality's staff acting in accordance with written procedures and this IPS, shall be relieved of personal responsibility for an investment's performance, provided underperformance relative to expectations is reported to Council and the liquidation or sale of investments is carried out in accordance with this IPS. Determination of Money Required Immediately and Money Not Required Immediately 5.6. Determination of the Municipality's MNRI is the responsibility of Council. In making the determination, Council may consider: 5.6.1. the time horizon within which the monies are needed to meet financial obligations; 5.6.2. the purpose for which the monies have been collected or set aside and are to be used; 5.6.3. the source of the money; or 5.6.4. any combination of the foregoing Page 13 of 34 Page 87 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.7. There is no legislated definition of MRI or MNRI and no guidance is provided - The municipality has the responsibility to define the basis of MNRI in a way that is most appropriate for their circumstances. 5.8. The Municipality defines MNRI as funds that are, in the opinion of the Treasurer, not required within the next 36 month period. 5.9. For certainty, all money and investments of the Municipality that have not been identified as MNRI (other than Restricted Special Assets, Third -party Trusts Funds and any Designated Funds third party trust funds and any designated funds referenced in Section 1_15-3) shall be deemed for purposes of this IPS to 5.10. Determination of the Municipality's MNRI and MRI may be modified at any time and from time to time by action of Council and with respect to specific money by the Treasurer in accordance with the provisions of Section 1.1.1537. 5.11. Any changes in this IPS regarding the Municipality's MNRI and MRI must be communicated immediately in writing to ONE JIB. 5.12. The Municipality's portfolios represent funds required for specific purposes. A high-level description of each of these portfolios and their objectives is provided in Section 5.17 below. This IPS applies to the following money of the Municipality, its agencies, boards and commissions including: 5.12.1. MRI which is invested in Legal List Securities; and/or, 5.12.2. MNRI which is invested under the Prudent Investor Standard. Investment 5.13. The Municipality's MRI is described in this IPS asS-hert Tern'' nn no„ car+_ Term IVIGRGY consists of money that is needed to meet the short-term financial obligations of the Municipality and are controlled and managed by the Deputy CAO/Treasurer, Finance and Technology Treasure or designate. 5.14. chertTerm Mepe„Money Required Immediately: Investment Objectives 5.14.1. The main focus of the investment of chnerF Term Meet eyMRI is cash management, and the interest income generated by the investment of these Page 14 of 34 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 monies contribute to municipal revenues. To the extent possible, the Municipality shall attempt to match its investments with anticipated obligations. 5.14.2. Capital preservation is the paramount objective for short o, <«rrnMRI investments, and these investments need to be highly liquid. Consequently, only high - quality, short-term investments that are also Legal List Securities will be held in this portfolio. The Municipality may invest in fully liquid money market securities and deposit accounts. The Municipality aims to maximize returns subject to the constraints set out in Part I of the Regulation, as amended from time to time, with a view to preserving capital and to further manage risk through diversification by issuer and credit quality. 5.14.3. The investment objectives for s"^ir''erm rneene MRI, ranked in priority, are as follows: a) Security of Principal The primary objective for MRI is to ensure the security of principal. To minimize the risk of loss, investments shall be subject to minimum credit ratings and shall be diversified by maturity, type of investment and issuer. Investing activities will be reviewed on a regular basis as actual, revised and forecasted operating and capital plans are completed. Maturity dates should be structured so that investment cash inflows occur when needed. b) Liquidity Requirements Liquidity is measured by the ease with which securities can be converted to cash to meet forecast spending. The investments that are eligible under Ontario's Eligible Investments and Related Financial Agreements Regulation possess different features and thus market prices will vary depending on market conditions, as well as the particular features of the type of investment. To ensure adequate liquidity, the Municipality's investments shall be diversified by holding securities of various terms to maturity and by various types of investments and issuers and to the extent possible, the term of such investments shall match the forecasted requirements for such monies to meet expenditures. c) Rate of Return Page 15 of 34 . - ; • ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 The Municipality's money shall be invested to maximize the rate of return within acceptable risk levels while respecting the security of principal, legal constraints and the liquidity needs of each investment portfolio. The composition of each portfolio, including its term to maturity and type of investments, shall be adjusted within the guidelines of this Policy to take advantage of market opportunities. Such changes shall be made with the periodic interest rate outlook and target portfolio structure approved by the Treasurer. 5.15. cheirt Term Mene ,MRI: Eligible Investments 5.15.1. Short Term MoneyMRI may be invested in high quality, short-term investments that are also Legal List Securities available from banks, dealers and other financial institutions. Investments issued or guaranteed by approved institutions will be permitted by this Policy, as deemed eligible by Ontario Regulation 438/97 or as authorized by subsequent provincial regulations. Investments will be limited to securities issues maintaining a minimum credit rating by an appropriate credit rating agency. 5.15.2. The Municipality's existing Investment Policy CP-003, which is referred to in Part I of the Regulation as a statement of investment policies and goals, is attached as Appendix III and will apply to its eh .r+ Term Meepe ,MRI. Necessary modifications will apply and in the event of a conflict between this IPS and the attached investment policy in respect of the Short Term 8MR1, the provisions of the CP-003 Investment Policy (Legal List) will prevail. 5.16. MNRI:Long TermMoney 5.16.1. The Municipality's MNRI is described in Section 5.8 as' ^^^-TeFM MGR8Y. In ONE JIB Agreement and this IPS, ONE JIB has exclusive control and management of the Long Term MoneyMN and the investments made therewith. 5.16.2. From time to time, the Municipality may require money immediately to meet financial obligations and may require ONE JIB to liquidate one or more investments in order to generate money to meet those obligations. ONE JIB Page 16 of 34 Page 90 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 will select the investment(s) to be liquidated. The timing of such liquidation will be determined by ONE JIB in consultation with the Treasurer. 5.17. ' eng Term MepeyMNRI: Investment Objectives 5.17.1. In setting the objectives noted below, the Municipality has taken into account the following considerations: a) Preservation of capital; b) Adequate liquidity that takes into account the needs of financial obligations and reasonably anticipated budgetary requirements; c) Diversification by asset class, market, sector, issuer, credit quality and term to maturity; d) Income and capital appreciation; and, e) Macro risks, such as inflation, economic growth and interest rates. 5.17.2. Investment of IeRg term runny MNRI is to be managed by ONE JIB in a way that balances the investment objectives, expected returns and risk, to develop asset allocations that achieve the Municipality's financial needs with stated risk tolerances. 5.17.3. The investment objectives for MNRI are as follows: Short Term Medium Term Preservation of Capital Contributions towards capital projects, mitigating inflation impacts and meeting target Low Risk Moderate Risk 3-4 years 5-10 years Page 17 of 34 Page 91 Attachment 2 to Report FSD-015-25 ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 funding requirements Long Term Contributions Moderate to > 10 Years towards capital Moderate High projects, mitigating Risk and meeting target funding requirements. Emphasis on long term inflation adjusted growth 5.17.4. The MNRI invested with ONE JIB will be broadly diversified to help reduce the volatility of investment returns. Returns have an impact on revenues, as well as a longer -term impact on future years' budgets and should, at a minimum, keep pace with inflation. To the extent possible, the I Rg Term McRey'&MNRI eSt,,,�^ �Rt horizons are aligned with the Municipality's obligations and cash flow requirements and may consist of liquid and non -liquid securities based on future cash flow requirements. 5.18. I ^n^ Term McRe MNRI: Eligible Investments 5.18.1. Eligible investments for Inn^ Term MennyMNRI include any Pooled Fund or other collective investment vehicle or institutional investment management product that ;c part of the QGIQ Offering fer the Prudent Investment Drnnrom (oru„ eRt'Ryestmonf nffeFiRg)approved or selected by ONE Investment for the Prudent Investment Program (OCIO Offering), provided always that the products and the selection of products comply in all material respects with the IPS. 5.18.2. Additionally, nothing in this IPS prevents Inn^ Term Meno„MNRI from being held in cash, short-term money market instruments, or overnight deposits. 5.19. I nn^-Term Menee MNRI: Sinking Funds Page 18 of 34 Formatted: Font: 12 pt Page 92 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.19.1. There are ne previsiens appliGable fer sinking Ands Sinking Funds are currently not applicable to the Municipality, however, should any sinking funds be established in the future, they are to be classified as MNRI and will be managed separately by ONE JIB. 5.20. 1 nnn Term Menu Local Distribution Corporation (LDC) Securities 5.20.1. The rdiren+ investment in 1 DG shares and/or promissory notes as may be applRGabla prior to the Prudent €ffeG+iye Plan shall hepermitted and innl„rderl as par+ef cl ono Term ney/MNRl held NEj!B—Spec°.fiG detains of h's 0 nvestment shall be approved by GeunGil an its sele and absolute disGretionF pal GIN C IIR s�hh a�191 adhere to all +arms and n en al i+arms as !lireGted by +he MURisinali+.r Mere s nifisall.r IC IIR shall be nrehibited from selling transferring assigning, d(LApledging the 1 DG &hares The direct investment in LDC shares and promissory notes, as listed in Schedule A, shall be considered Restricted Special Assets and shall not be held by ONE JIB as MNRI. 52 Q. 7 1 DG shares _;;re sirJererJ restris+ed speGial asset,-; and remainn the ,s+edy of the MURininality. 1 DG_ shares are +e be . .e(d As separate s+anrlalnne investments; ..d+h the s, ,hien+ matter expertise and arlministmfive f„nn+inns re.rna inn under the n„nde... of the AA, mininali+.. of /'`larinn+nn ('n„nnil r2+triRS direr+,� r. de fasntrn heGch�rea of the LDG_nri ONE IIR .hall Trlheretd rt all terms anr art itinns as diresterl Mere s sdfisally GeURGH snntrnls all sitden and rdisnesitinn rtesisinns relater! to r ent and fi it, ire IaGqU fl!"` -assets. Any yn+inn relater! to I rV'` shores vVill he i nderta Len solely by the M61Rinina y 520.3.The re? nt On LDG shareGyill net be insl„rded On aIn„Ia+inn gaaF d�,ngg ass;et m y/allnsatinns n n+her nnnstreints that apply to the I n n Term Mersey. &20.4.5.20.2. The investment in Elexicon Corporation is considered to be an investment in an LDC for the purposes of this policy as it is the sole shareholder of Elexicon Energy which is an LDC. 5.21. Restricted Special Assets 5.21.1. For certainty, Restricted Special Assets are not MNRI of the Municipality, and such assets are not under the control or management of ONE JIB. 5.21.5.22. Third -Party Trust Funds and Designated Funds Page 19 of 34 Page 93 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.21.1.5.22.1. In addition to the Municipality's own money, the Municipality is from time to time entrusted with third -party trust funds, and the Municipality's responsibilities and obligations with respect thereto may be subject to other legislation and governed by other agreements and instruments. To the extent that there is any conflict or inconsistency between the provisions of this IPS and the terms and conditions contained in such other legislation, agreements or instruments applicable to third -party trust funds, the latter shall prevail. 5.21.2.5.22.2. The Municipality's third -party trust funds and the designated funds are listed in Schedule AB. 5.'z-1 .3.5.22.3. For certainty, the third -party trust funds and the designated funds are not MNRI of the Municipality, and such monies are not under the control or management of ONE JIB. Investment Management 5.22.5.23. Investment Management of Shert-Term nnePe„MRI 5.22.1.5.23.1. The investment of ch^r*-Terrn R,, MRI shall be controlled and managed by the Treasurer. 5.23.5.24. Investment Management of I en Term MopeyMNRI 5.23.1.5.24.1. The investment of Long Term Money MNRI shall be controlled and managed by ONE JIB in accordance with this IPS and the ONE JIB Agreement. 5.23.2.5.24.2. nn G is u rrUe l Qhmef Investment Offop-eF ("GGIO") an,a er External Dnrlfelie Managers shall he appointed by ONE IIQ and they shall eanh enter aR nt yiwth ONIC In..es+men++ha+ n Plies with this IDS and Part II of +he Regulation and P vide for delivery of a nlianee and Perfermanee r erts In e rllanee udth the a Plisahle r Plater requiremeRtS, ONE IIR shall make a the nar+ieina+inn MURiGipalities. O IC Investment shall agree en a set of quality standards and nerferpnanee a �. � en+a+inns hieh a li e en, amen+ell in the QGIQ's and/or Exlemal Dertfelie Manage guidelines.The selected Sub - Investment Manager shall enter into agreement with ONE Investment related to the OCIO Offerina. that comDlies with this IPS and Part II of the Reaulation and Page 20 of 34 Page 94 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 will provide compliance and performance reports to ONE JIB and ONE Investment. ONE JIB shall make any investment management changes deemed in the best interest of the Municipality. 5.245.25. Transition to Prudent Investor Regime 5.24.1.5.25.1. Until the Prudent Effective Date, the Municipality will continue to control and manage its MRI, MNRI and investments in Legal List Securities. Some Legal List investments were made with MRI and some with MNRI. 5.24:2.5.25.2. Upon and after the Prudent Effective Date, the control and management of money and investments that are determined to be not required immediately shall be given to ONE JIB. Nothing in this IPS requires that such investments need be liquidated or disposed of. It is not contrary to this IPS for investments that the Municipality does not require immediately to be held, and to continue to be held by, ONE JIB in instruments such as term deposits, guaranteed investment certificates or principal protected notes issued by a financial institution. They can be held to maturity and invested upon receipt of cash proceeds. 5.25.3. During the transition to the OCIO Offering the Chair and Vice -Chair of ONE JIB have discretionary power to approve temporary investments recommended by the Sub -Investment Manager that may not be expressly described in this IPS but are, in the opinion of the Chair and Vice -Chair, in the best interests of the Municipality and are entirely consistent with their fiduciary obligations to the MunicipalitV. 5.24.3.5.25.4. Managernent of third party trust f unels A..rl n y designated funds is rt rlirontly affeGted by the Prudent Cffont0yP Date All MNRI that is not Third - Party Trust Funds, Designated Funds or Restricted Special Assets shall be provided to the ONE JIB on the Prudent Effective Date. Investment Constraints 5.25.5.26. Environmental, Social and Governance (ESG) Investing 5.25.1.5.26.1. The Municipality supports ESG investing for Short t-, e,,T�r ^MRI and Long Term ne,.no„MNRI. The Municipality believes that well -managed companies are those that demonstrate high ethical and environmental Page 21 of 34 Page 95 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 standards and respect for their employees, human rights, and the communities in which they do business, and that these actions contribute to long term financial performance. 5.25.2.5.26.2. The Municipality has chosen to monitor the developments of ESG factors and will reconsider its approach to ESG investing for the Sh�m MRI Investment Portfolio as and when appropriate to do so. 5.25.3.5.26.3. Far the investment of Lang n Term Money ONE IIB i red to nlern he.., External Dertfelie Managers areimplementing responsible 'pies at the tome of hiring and during periediG FeVieWSd it may Wert e results n iedieally if roe„estedFor the Investment of MNRI, ONE JIB is required to explore and consider how the OCIO is implementing responsible investing principles at the time of hiring and during periodic reviews. It may report on results periodically, if requested. 5-d26-.5.27. Securities Lending 5.26.1.5.27.1. For the investment of Short -Term Mram^neyMRI, Securities Lending is not permitted. 5.26.2.5.27.2. For the investment of LongTermMepeyMNRI, the Municipality may invest in pooled funds, and other investment funds that are managed by n External Der+felie Maeaeer who May engage n SeG irities Lending if the el^ieG of the External Portfolio Manager permit ^ ^hAn aetieefunds that are managed by the Sub Investment Manager who may engage in Securities Lending if the policies of the OCIO permit such an action. 5.27.5.28. Derivatives 5.28.1. neri„a+i„e^ May et he used fer speei Iatiye n They may he i ed for the in e^+men+ of I e e_Term Meney where they are f illy a red by a haeLine et e s fer ei 1rrenev or rl ether heeine to ehanee eertfelfe !i� iretinn e ere t ^�" strategic^ For the investment of MNRI, futures and forwards contracts, options and other derivative instruments may only be used to: a) create an asset mix position that does not leverage the portfolio, b) replicate the performance of a capital market index, or Page 22 of 34 Page 96 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.27.1.0 reduce risk as part of a hedging strategy 548-.5.29. Use of Leverage 5.28.1.5.29.1. Nothing in this IPS prevents the use of leverage, provided it is prudent to do so. Leverage is inherent in the use of certain types of investment strategies and instruments. Where leverage is employed, ONE JIB (for MNRI) and the Treasurer (for MRI) shall have in place monitoring procedures to manage overall exposure to any counterparty Leverage is net a strategy Gurrently empleyed by ONE jIB h, Fnaybe Gonsfdered at alate F date.Leverage should not be exercised for speculative purposes but may be used as a hedging tool. 5.29.5.30. Pooled Funds 5-2-9—.1 .5.30.1 . nll oo+mar,+ stFatomes FR , bepursued direGtly through heldinnc es+ment f, inrls OF aRy mhina+ion thereof ay The in es+man+ strategies m I li ide, Ilena+igns to h shgr+s hgr+_+arm i ei es�men+ v hin-le a.sa �a�-a�n�as„� s. Investments in open-ended pooled funds, closed -ended pooled funds, limited partnerships and other specialist corporate structures (e.g. LLCs), are permitted provided that the assets of such funds are permissible investments under this IPS or provided that any non -permitted investments are disclosed by the Sub - Investment Manager. Within pooled funds, the External Portfolio Manager's policies will take precedence over this IPS. a 3�5.31. Currency Hedging 5.30.1.5.31.1. The MRI Investment Portfolio may consider the utilization of currency hedging only in cases where the Municipality can allocate the hedge to a specific capital purchase denominated in a foreign currency. 5.30.2.5.31.2. The Municipality's funding requirements are in Canadian dollars. However, some exposure to foreign currencies in the LGRg TerrnMNRI Investment Portfolio may be advantageous to provide diversification and potentially enhance returns. Therefore, it shall not be a violation of this IPS for investments in global mandates to be unhedged, in whole or in part, where the Page 23 of 34 Page 97 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 diversification benefits embedded in the currency exposure are considered to be beneficial or desirable by ONE JIB. 5.32. Alternative Asset Classes 5.32.1. The applicable legislation does not prevent the direct or indirect placement of the MNRI in Alternative Assets Classes, this IPS permits investments in alternative investments for the purpose of management of MNRI under ONE JIB. 5.32.2. Alternative Asset Classes, such as infrastructure or real estate, may have uncorrelated return characteristics with traditional Asset Classes that may improve diversification within the portfolio, which may lead to better risk adjusted returns. Typically investment may not be fully liquid, and are only appropriate for inclusion in portfolios with long investment horizons. 5.31.5.33. Prohibited Investments 5.31.1.5.33.1. There are no investments specifically listed as prohibited. 5-.32-.5.34. Performance Monitoring, Rebalancing and Management 5.32�5.34.1. Short -Term -MoneyMRI 5.32.2.5.34.2. Reporting of e" rt-T^rm MeyIVIRI shall be in accordance with policy CP-003 Investment Policy (Legal List). 5.32.3:5.34.3. l ^ Term nneneyMNRI 5.32.4.5.34.4. For the investment of eng Term MepeyMNRI, ONE JIB shall establish parameters for monitoring investments and rebalancing through policy or directly within the Ifnvestment Pplan. 5.32.5.5.34.5. Investments are expected to achieve returns at least equal to their benchmarks measured over a rolling five-year period. At minimum, ONE JIB shall provide reporting described in Section 5.415-.42- that shows the holdings, declares compliance with this IPS, and "^Ws EXter..nl Per1f^lie Manager pera^r., aRGereports on the Sub -Investment Manager's performance. Page 24 of 34 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciff;W4011 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Administrative Policies 5.33-.5.35. Flow of Money and Annual Municipal Budget 5 33 1 5.35.1. On an annual basis, as part of the Municipality's Annual Review process, the Municipality shall identify the amount, if any, of Long -Ter m MoneyMNRI that it holds. Any Long Term Mane MNRI not already under the control and management of ONE JIB shall be transferred to ONE JIB as soon as practicable. 5.33.2.5.35.2. On an annual basis, ONE JIB shall be notified by the Treasurer as to the amount, if any, required by the Municipality from the LE)Rg—Term Men"MNRI then under the control and management of ONE JIB for the Municipality's operational purposes. Such amount shall be deemed to be Short Term eyMRI and shall be returned to the Municipality in a lump sum or by way of periodic payments, as directed by the Treasurer. 5.34.5.36. Flow of Money Otherwise than through the Budget Process 5.34.1.5.36.1. The Sher*-Terrn F--- MRI captures revenues received by the Municipality during each year after the approval of the Municipality's budget for the year. Any amounts deemed to be MNRI by the Treasurer at any such time during the year shall be transferred to ONE JIB to be under its management and control as' ^^^-Term FURd MNRI. Amounts so transferred will be recorded annually in the Investment Plan and allocated by ONE JIB in accordance with the Investment Plan. 5.35.1.5.36.2. The Treasurer is authorized to direct ONE JIB to return any amounts determined by the Treasurer to be required to meet expenditures for unexpected contingencies not anticipated by the Municipality's budget in force for that year, provided however that the aggregate of the amounts to be returned to the Municipality under this Section 6.2.2 during the year shall not exceed 25% of the' ^^^ Term McReyMNRI under the control and management of ONE JIB as at the date that the Municipality approved its budget for the year (the Budgeted' ^^^-Term McReyMNRI). In determining the Budgeted' ^^^-Term ME)Pe MNRI for purposes of calculating the 25% limit, any L ^^^-Term McRe MNRI to be transferred to the control and management Page 25 of 34 Formatted Page 99 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 of ONE JIB in accordance with that year's Annual Review pursuant to Section 5.42.25.41.2 shall be included and any amount to be returned by ONE JIB to the Municipality pursuant to Section 6.1.2 shall be excluded. 5.36.5.37. Valuation of Investments 5.36.1.5.37.1. Investments shall be valued according to the values provided by the Custodian(s). For the investment of Long Mon yMNRI, values of unitized vehicles shall be valued according to the unit values published by the Custodian. Other investments shall be valued at their market value when that is available from regular public trading. If a market valuation of an investment is not available, then a fair value shall be supplied by the External onrtfnlin Managefthe Sub -Investment Manager to the Media^ONE Investment no less frequently than quarterly. 5-.37-.5.38. Voting Rights 5.37.1.5.38.1. c� 1hient +n the r of cnr-, fie , n with r +n eGt I DG ri+inc uihnrn Cv+n rnal Portfolio MaRagnrs have berm n Rt8d nh F=x nrnnl Dnr+fnlin Mnnnnnrc shall n n the responsibility of nvnrnicinn vn+inn rights and will report theiF voting p0liGies to ONE jIB aRnually. The MuniGipalAy may aGGess these nnliGies at „time The Sub -Investment Manaqer shall assume the responsibility of exercising voting rights in respect of the Municipality's MNRI and will report its voting policies to the ONE JIB annually. The Municipality may access these policies at any time. 5 3�5.39. Internal Controls 5.38.1.5.39.1. The Treasurer shall establish an annual process of review of all investments made under this IPS. This review will provide internal control by assuring compliance with governing legislation and with policies and procedures established by the Treasurer. To the extent ONE JIB's input is needed, these requirements will be communicated in advance to ONE JIB. 5.39.5.40. Custodians 5.39.1.5.40.1. All investments and assets of the investment portfolios shall be held by a Custodian and any of the Custodian's sub -custodians or nominees. For Long Term MepeyMNRI, the Custodian shall be acceptable to ONE Page 26 of 34 Page100 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Investment. For choir+ Term MeepeyMRI the Custodian shall be acceptable to ONE Investment if ONE Investment products are being used for the investment of the Municipality's Cher+ Term MepieyMRI, otherwise the Custodian shall be acceptable to the Municipality. 40.5.41. Reporting 5.40.1.5.41.1. For the investment of MRI, the Treasurer shall report at least annually to Council, the report to be in a form and contain such content as Council may request. Subject to any reporting obligations contained in the Municipality's Investment Policy (Legal List) the report to Council shall include investment performance during the period covered and any other information required under the Regulation and that the Treasurer may consider to be pertinent. 5.40.2.5.41.2. The Regulation provides that ONE JIB shall submit an investment report to Council in respect of the investment of eng Term ne,,ney (MNRI)of MNRI at least annually. This report shall include the following. a) Investment performance during the period covered by the report; b) Asset mix of the total portfolio; c) A listing of individual investments held at the fund level at the end of the reporting period showing, where appropriate, book value, market value, realized/unrealized gains/losses and actual income received; d) A list of all transactions including the security name, trade date, and the purchase and/or sale price; e) A statement by the Treasurer as to whether all investments were made in accordance with the IPS and as to whether all investments were made in accordance with the Investment Plan; and f) Any other pertinent information in the opinion of the Treasurer. 5.40.3.5.41.3. All securities invested on behalf of the Municipality by ONE JIB or with the assistance of ONE Investment shall be held for safekeeping in the name of the Municipality by a Custodian. Page 27 of 34 Page 101 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciff;W4011 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.41.5.42. Approval, Subsequent Modifications and Effective Date 5.41.1.5.42.1. Policy CP-003 Investment Policy shall be renamed CP-003 Investment Policy (Legal List) and will be reviewed on an annual basis. 5.41:2.5.42.2. At least annually, Council shall review the IPS and update it, if required. In the course of reviewing the IPS, Council may request comments from the Treasurer with respect to the investment of Short Term neone MRI and from ONE JIB with respect to the investment of Long Term Mon-e MNRI. 5.41.3.5.42.3. Following the Council's review of the IPS, ONE JIB shall review the Investment Plan and update it, if required. 5.41.4.5.42.4. At a minimum, the annual IPS review will consider: a) the adequacy of funding for capital works; b) the Municipality's ability to reduce other spending; c) flexibility of the timeframe to payout; and d) sensitivity to loss. 5:42-.5.43. Effective Date 5.42.1.5.43.1. This IPS is adopted by Council of the Municipality, and will come into force effective the date of the Prudent Effective Date Agreement as signed by ONE JIB and the Municipality..- The Treasurer is directed to sign a copy of this IPS to evidence approval and to deliver a copy of this IPS to ONE JIB. 6. Roles and Responsibilities: 6.1. Council is responsible for: 6.1.1. Approving the Municipality's Investment Policy and reviewing the policy on an annual basis. 6.2. Chief Administrative Officer (CAO) is responsible for: 6.2.1. Ensuring compliance with this policy Page 28 of 34 Page 102 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 6.3. Deputy CAO, Finance and Technology/Treasurer is responsible for: 6.3.1. This IPS is approved and adopted by Council with input from the Treasurer, and from ONE JIB with respect to MNRI. MRI of the Municipality, and-anyin addition to any third party trust f, ind-SThird-Party Trust Funds, Designated Funds and Restricted Special Assets referenced in Section 1_15-3, remain the control and management of the Treasurer. 6.3.2. Consistent with this IPS, the Treasurer is responsible for the implementation of the investment program and the establishment of investment procedures which shall include: a) Investment management of MRI and any third party trust fundsThird- Party Trust Funds, Designated Funds, and Restricted Special Assets referenced in Section 1.15.95-.9 by, or under the direction of, the b) The deposit or withdrawal of MNRI, under the explicit delegation of authority regarding MNRI, and the investment thereof, to ONE JIB, which is responsible for the control and management of such funds and investments; and, c) A system of controls exercised by the Treasurer to regulate the activities of employees. 6.3.3. No person including, without limitation, ONE JIB, may engage in an investment transaction except as provided under the terms of this IPS. 6.3.4. In the management of MRI of the Municipality, and any third+ fundsThird-Party Trust Funds. Desianated Funds and Restricted Special Assets referenced in Section 2.1, the Treasurer may engage one or more agents and service providers. ONE Investment can assist with the investment of the Municipality's MRI, in Legal List Securities, and with the investment of third -party trust funds, in accordance with the terms of the applicable trust, if permitted, at the request of the Municipality. 6.4. ONE JIB is responsible for: Page 29 of 34 Page103 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 6.4.1. ONE JIB has been appointed by the Municipality in accordance with the requirements of the Act and the Regulation and on the terms and conditions set out in the ONE JIB Agreement (Appendix 1). 6.4.2. ONE JIB exercises control and management of the Municipality's MNRI and the investments made by it in accordance with the objectives and risk tolerance established in this IPS. 6.4.3. Among the responsibilities of ONE JIB are the following: a) Reviewing this IPS; b) Adopting and maintaining an Investment Plan that complies with this IPS; c) Engaging External Pertfe-lie Manager Custodians, administrators and other investment professionals (Agents); d) Allocating the money and investments under its control and management among External Portfolio Managers and their funds in compliance with this IPS; e) Monitoring the performance of the OCIO Offering and Agents; and, f) Reporting to the Municipality. 6.4.4. The foregoing is subject to the more detailed terms and conditions contained in the ONE JIB Agreement. 6.4.5. ONE JIB, in its capacity as a joint municipal service board, in addition to being a local board of each member Municipality is subject to a Code of Conduct as required by the Municipal Act, 2001 (the "Act"). This Code of Conduct applies to the Chair and the other Members of ONE JIB acting in their capacity as Members of ONE JIB. 6.5. All Staff are responsible for: 6.5.1. Individuals who are responsible for the Municipality's Short-TermMRI Investment Portfolio shall comply with the Municipality's Conflict of Interest guidelines and any relevant professional codes of conduct (e.g., the CPA Code of Professional Conduct). Page 30 of 34 Page 104 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 7. Related Documents: 7.1. CP-003 Investment Policy (Legal List) 7.2. O.Reg.438/97: Eligible Investments, Related Financial Agreements and Prudent Investment 8. Inquiries: 8.1. Manager, Financial Planning/Deputy Treasurer 8.2. Deputy CAO, Finance and Technology/Treasurer 9. Revision History: Date Description of Changes Approved By April 22, 2024 Updated Policy name Council April 22, 2024 Prudent Investment adoption Council Page 31 of 34 Page105 Attachment 2 to Report FSD-015-25 GINarington Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 May xx, 2025 Annual update to investment policy. • References to portfolio manager have been changed to Sub -Investment Manager to reflect change to OCIO. • References to short-term or long-term monev changed to MRI or MNRI • Definitions added or removed. • New section on restricted special assets and corresponding amendments to LDC investment. • Added Appendix 1 and 2 Council Page 32 of 34 -- Formatted: front: 12 pt Formatted: List Paragraph, Bulleted + Level: 1 + Aligned at: 0.25" + Indent at: 0.5" Page106 ,Attachment 2 to Report FSD-015-25 Formatted: Font: 12 pt ciffbooll Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Schedule A Restricted Special Assets Debt Securities None Own -Debt Securities Not applicable LDC or other MSC Securities Investments in Elexicon Corporation, Elexicon Energy or Elexicon Group Other None Page 33 of 34 Page107 ,Attachment 2 to Report FSD-015-25 - Formatted: Font: 12 pt GINarington Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Schedule B Third -Party Trust Funds and Designated Funds Third -Party Trust Funds Care and Maintenance trust funds under the Funeral, Burial and Cremation Services Act, 2002. Designated Funds Not Applicable Page 34 of 34 Page108 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: FSD-016-25 Authored By: Mandy Chong, Manager, Procurement Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary -Anne Dempster, CAO By-law Number: Resolution Number: File Number: RFP2025-1 Report Subject: Engineering Services for Baseline Road Reconstruction Recommendations: 1. That Report FSD-016-25, and any related delegations or communication items, be received; 2. That the proposal received from CIMA Canada Inc., being the highest scoring proponent meeting all terms, conditions and specifications of RFP2025-1 be awarded the contract for the provision of Engineering Services for Baseline Road Reconstruction; 3. That the funds required to complete this project be funded from the approved budget; and 4. That all interested parties listed in Report FSD-016-25, be advised of Council's decision. Page109 Municipality of Clarington Page 2 Report FSD-016-25 Report Overview To request authorization to award RFP2025-1 — Engineering Services for Baseline Road Reconstruction to CIMA Canada Inc. 1. Background 1.1 The Municipality of Clarington requires the assistance of a qualified engineering consulting firm with the skills, resources, and experience necessary to provide engineering services for the reconstruction and urbanization of Baseline Road from Mearns Avenue to Lambs Road in Bowmanville. 1.2 A Request for Proposal (RFP) was drafted to allow the Municipality to select a qualified Consultant to assist with the reconstruction of Baseline Road, Bowmanville. 1.3 RFP2025-1 was issued by the Procurement Services Division and advertised electronically on the Municipality's website. system with price being an evaluated factor 2. Analysis 2.1 The RFP closed February 28, 2025. The RFP was structured on a two -envelope 2.2 Thirteen companies downloaded the request for proposal, and six proposals were received (refer to Attachment 1) by the stipulated closing date and time. One proposal was deemed non -compliant for the inclusion of pricing within the technical submission. Five proposals received were determined to have met the mandatory items as contained within the RFP. The five compliant proposals were distributed to the evaluation committee for review, evaluation, and scoring. 2.3 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. 2.4 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. 2.5 The evaluation committee met to review and agree upon the overall scores for each proposal. Some of the areas on which the proposals were evaluated were as follows: Page110 Municipality of Clarington Page 3 Report FSD-016-25 • The Proponent's understanding of the Municipality's requirements; • Experience and qualifications of both the firm as well as the proposed team who would be working on the project. • That the proposed team had the expertise in the fields required such as Civil Engineering, Stormwater Management and Storm Sewer Design, Streetlight Design, Geotechnical Engineering, Landscape and Architecture Design. • The qualifications and experience record of the Contract Administrator and Site Inspector to be utilized on the project. • The Proponents methodology and understanding of the requirements for the project. • A proposed work plan indicating the project method, schedule, Time -Task Matrix showing an estimated overall timeline of the project. • Measures, processes and procedures used by the Proponent to ensure that high quality services are being provided to the Municipality. 2.6 Upon completion of the evaluation, three submission proposals met the established passing threshold of 80 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 scoring proponent, CIMA Canada Inc. 2.9 CIMA Canada Inc. has completed work for the Municipality in the past and reference checks were completed and came back satisfactory. 3. Financial Considerations 3.1 This project was broken down into two stages for pricing purposes: 3.1.1. The first stage will include the design and approvals as well the preparation of the tender documents and tendering phase. This portion of the work was quoted as $463,041.36 (Net HST Rebate). 3.1.2. The second stage was provisional and included the Inspection and Contract Administration services required during the execution of the work required. The Municipality will not be including this portion of the of the work in the award. 3.2 The funding required for this contract award is up to $489,205.36 (Net HST Rebate) which include the engineering services for design, approvals and tendering in the Page111 Municipality of Clarington Page 4 Report FSD-016-25 amount of $463,041.36 (net HST Rebate) as well as the permit application fees and allowance for utility relocation in the amount of $26,164.00 (net HST Rebate). The project will be funded from the following accounts, which are in the approved 2025 budget: Description Account Number Amount Baseline Road Reconstruction 110-50-330-83312-7401 $489,205 4. Strategic Plan C.1.4: Proactively address traffic management, walkability, livability, and connectivity. 5. Climate Change Not Applicable. 6. Concurrence This report has been reviewed by the Deputy CAO, Planning and Infrastructure Services who concurs with the recommendations. 7. Conclusion It is respectfully recommended that CIMA Canada Inc., being the highest scoring proponent meeting all terms, conditions and specifications of RFP2025-1 be awarded the contract for the provision of Engineering Services for the Baseline Road Reconstruction. Staff Contact: Mandy Chong, Manager, Procurement, 905-623-3379 Ext. 2209 or mchong@clarington.net. Attachments: Attachment 1 — Summary of Proposals Received Interested Parties: List of Interested Parties available from Department. Page112 Municipality of Clarington Page 5 Report FSD-016-25 Attachment 1 to Report FSD-016-25 - Summary of Proposals Received Municipality of Clarington RFP2025-1— Engineering Services for the Reconstruction of Baseline Road Summary of Proposals Received Bidder Ainley Graham & Associates Ltd. CIMA Canada Inc. Concept Dash Inc. D.G. Biddle & Associates Ltd. Jp2g Consultants Inc. * Tunio Developments Inc.** Note: Bidders marked with "*" were shortlisted. Bidders marked with "**" were non -compliant Page113 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: FSD-019-25 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: 2025 User Fee By-law Update Recommendations: 1. That Report FSD-019-25, and any related delegations or communication items, be received; 2. That the By-law attached to Report FSD-019-25, as Attachment 1, be approved and By-law 2024-022 be repealed; and 3. That all interested parties listed in Report FSD-019-25, and any delegations be advised of Council's decision. Page114 Municipality of Clarington Page 2 Report FSD-019-25 Report Overview In June 2023, Council approved report FSD-029-23, which began the process of consolidating user fees into one by-law, an efficient way to incorporate inflationary factors and adopt new fees in a consistent manner. The Deputy CAO/Treasurer has the authority to approve annual changes to existing fees in the User Fee By-law up to the CPI increase or $5, whichever is greater. These most recent changes took effect January 1, 2025. This report adds new fees and highlights administrative changes to the User Fee By-law, which will take effect July 1, 2025. This requires Council approval. Once these new fees are added to the Fee Schedule, they will also be subject to the annual CPI/$5 increase to be approved by the Deputy CAO/Treasurer 1. Background 1.1 The Municipal Act, 2001 allows the Municipality to charge user fees for services that are provided to individuals. The user fee must be provided for in a by-law approved by Council. 1.2 The planned 2026 opening of the South Bowmanville Recreation Centre has resulted in proposed new fees. 1.3 Some minor administrative changes are being proposed to ensure consistency and to remove fees that no longer apply to the Municipality due to changes in legislation, process changes, etc. 1.4 Increasing care and housing fees are the drivers behind the proposed new fees from the Animal Services Division of the Legislative Services Department. 1.5 The Treasurer has directed staff to remove HST from the user fee schedules. A note will be added to advise residents that fees are subject to HST where applicable. This follows common practice in municipalities and reflects the fact that HST is not a fee charged by the Municipality. Changes to HST applicability and rates are outside the control of the Municipality and may change at any time, removing them from the By-law schedules provides flexibility if there are changes to HST. Page115 Municipality of Clarington Page 3 Report FSD-019-25 2. Updates to Existing Fees/Administrative Changes Planning and Infrastructure Services 2.1 Remove Commissioning Fees from Schedule E; these fees are noted in Schedule A - General Fees. As this service is offered by multiple departments, this will ensure consistency in the fee charged across the organization 2.2 Pre -consultation Fees: Stage 2 — Technical Proposal Review fee to be removed from Schedule E. This is no longer applicable to the Municipality. 2.3 Minor site plans in the Oak Ridges Moraine to be removed from Schedule E. 2.4 Additional Dwelling Unit: Registration for Applications submitted prior to January 1, 2015 fee to be moved to Publications section in Schedule E. 2.5 Minor revisions to the notes and descriptions of application fees to add clarity as to when the fees apply. 2.6 Remove and condense the duplication of the minor pre -consultation fee so that one fee captures all minor pre -consultation fees, including the land division pre -application meeting. Staff propose a $15 increase to provide consistency among all similar fees. 2.7 Separate the Deed Stamping Fee from the Land Division Application fee to avoid a future refund if the applicant does not complete the land division process. The deed stamping payment will now be collected at the end of the land division process for any future applications. The applicant will not have to pay the deed stamping fee again where the fee was already collected as a combined fee between 2024 to when this By- law is in effect. 2.8 In addition, Clarington staff and Hemson Consulting are undertaking a comprehensive review of Planning and Infrastructure fees to ensure full cost recovery. A report and by- law amendment are targeted for General Government Committee in the Fall. Public Services — Community Services Division 2.9 Remove the following fees due to the decommissioning of the Bowmanville Indoor Soccer building: 2.9.1. Turf Full Field Discount Page116 Municipality of Clarington Page 4 Report FSD-019-25 2.9.2. Turf Full Field Non -Prime 2.9.3. Turf Full Field Prime Time 2.9.4. Turf Half Field Discount 2.9.5. Turf Half Field Non -Prime Time 2.9.6. Turf Field Prime Time 2.10 Staff recommend updating the existing Swim/Skate drop -in options, 10-ticket passes, group entry, and annual membership to include access to the South Bowmanville Recreation Complex (SBRC) walking track during designated times. The updated charge name and descriptions would be revised to "Swim/Skate/Walk" with no changes to the existing fees. Including this update in the 2025 rates and fees ensures essential data is captured to inform the SBRC operational plan and budget. While these adjustments will not take effect until 2026, when the facility becomes operational, their early inclusion supports financial planning and strategic decision -making to ensure the SBRC meets community needs upon opening. Transitioning youth development groups to the correct ice rental rate 2.11 Historically, youth development programs were charged the lowest available rate under the previous ice rental structure. When the current rate structure was introduced, which includes Resident, Community, and Commercial rates, it was recognized that these programs would face a significant fee increase. To ease this transition, a phased -in approach was implemented, gradually moving these groups to the Resident Rate. As of January 1, 2026, these groups will reach the Resident Rate. However, this transition did not fully align these groups with the correct rate category. As businesses operating for profit, they should be classified under the Commercial Rate (Resident Rate plus 20% surcharge). To complete this transition while ensuring a manageable fee increase, staff recommend a continued phased -in approach: 2.11.1. January 1, 2027: Annual CPI increase plus additional —10% increase toward the Commercial Rate 2.11.2. January 1, 2028: Annual CPI increase plus additional —10% increase to fully align with the Commercial Rate 2.12 This adjustment applies only to existing youth development groups currently on the phased -in plan. Any new groups entering the system will be required to pay the correct Page117 Municipality of Clarington Page 5 Report FSD-019-25 Commercial Rate upfront. A clear communication plan will be developed to inform affected groups, manage expectations, and mitigate concerns. Public Services — Public Works Division 2.13 Commemorative Tree and Bench program to be removed from the User Fee schedules. Since these are donations, they should only be posted on the Municipal website, not in the User Fee By-law. 2.14 Staff propose an increase to the minimum labour requirement in the Incident Response category from 1 hour to 3 hours. This recommendation is based on a continuous improvement cost recovery project: Page118 Municipality of Clarington Page 6 Report FSD-019-25 2.15 Staff recommend updating the reference from "Current MTO Rate" to "Current MTO Ontario Provincial Standard Specification Rate" to provide greater clarity in the Incident Response category. Public Services - Emergency Services Division 2.16 Staff recommend increasing the base rate for 1 hour of services offered by a Fire Prevention Inspector to $77.47. The calculation for the fee will be: Time required to complete the task x $77.47. 3. New Fees Legislative Services — Animal Services Division 3.1 Currently, small animals such as rabbits, guinea pigs, hamsters and small birds are adopted out with a voluntary donation from the adopter rather than a fee. This has most often worked against the shelter — the donation is quite low compared to the cost of housing the animal. 3.2 Costs are rising for supplies for these types of animals. They are often harder to rehome, so their stays become longer. While we don't get many small animals, they can be expensive to house. 3.3 Nearby municipalities vary in price for the adoption of small mammals and birds. See below for a comparison. Municipality Pickering Rabbit - $56.50 Other - variable Oshawa $40 + HST Whitby $102 + HST Kawartha Lakes (Humane Society) Rabbits (sterilized) - $150 Others - $15+ Port Hope (Northumberland Humane Rabbits and guinea pigs - $25 Society) Rats/Hamsters - $15 Uxbridge — Scugog $55 3.4 Clarington Animal Shelter is the only area shelter that does not charge a set fee. Page119 Municipality of Clarington Page 7 Report FSD-019-25 3.5 Animal Services Division Staff are recommending the following additions to the User Fee By-law within Schedule B: 3.5.1. $39.82 for rabbits 3.5.2. $22.12 for guinea pigs and other small mammals. 3.6 There are no plans to sterilize rabbits or other small mammals at this time, as the procedure requires a specialized veterinarian and is cost prohibitive. Legislative Services — Clerks Division Completion of Municipal Information Form 3.7 The Municipal Clerk signs off on Municipal Information forms, which indicate whether the area in which the premises will be located is "wet", "damp" or "dry" (in relation to the sale of liquor) and notes if there are any specific concerns regarding zoning or non- compliance for the purpose of obtaining a liquor sales licence from the Alcohol and Gaming Commission of Ontario (AGCO). The Clerk's office confirms there are no Zoning or outstanding Municipal Law Enforcement Concerns and then the form as signed off by the Municipal Clerk. 3.8 Currently Clarington signs off on Municipal Information Forms free of charge. The Clerk's Division currently receives 5 to 10 Municipal Information Forms per year. Based on a review of comparator municipalities, the Clerk's Division Staff recommend adding a new fee of $50.00 + HST for completion of the form. Declaration of Municipally Significant Events 3.9 Council has delegated the authority to the Municipal Clerk to designate a "Public Event" an event of municipal for the purpose of obtaining a Special Occasion Permit through the AGCO. Examples of this type of event include: Spartan Race, Holiday in the Hills, Community Dances or Concerts The Clerk's office confirms the event qualifies as Municipally Significant in accordance with the criteria set out in Resolution #GPA-429- 12 arising from Report CLD-028-12, which includes criteria for events, and provides a letter to the applicant. 3.10 Currently, Clarington prepares these letters free of charge. The Clerk's Division currently receives 10 to 15 of these requests per year. Based on a review of comparator municipalities, the Clerk's Division Staff recommend adding a new fee of Page120 Municipality of Clarington Page 8 Report FSD-019-25 $50.00 + HST for completion of the form. Municipality of Clarington events would be exempt from this fee. 3.11 The following summarizes what other comparator municipalities charge for Municipal Information Forms and letters declaring an event Municipally Significant (sorted by fee): .. .. $0.00 B- FTFT • 0.00 0.00 • • • - 50.00 0.00. • 50.00 50.00 • 58.50 0.00 • 60.00 $0.00 • • • 83.00 $372 + HST One fee for all approvals, Clerk's Fire, Building • . 100.00 50.00 . 100.00 100.00 = $233.00 - One fee for all Municipal Approvals - - • • $626.79 - One fee for all approvals, Clerk's Fire, Building $157.00 - One fee for all approvals, Clerk's Fire, Building • $439.51 - One fee for all approvals, Clerk's Fire, Building Legislative Services — Municipal Law Enforcement Division 3.12 Staff recommend introducing at 25% administrative fee to recoup expenses incurred to arrange and execute required work undertaken to comply with Orders issued pursuant to the Site Alteration By-law 2024-017 and the Property Standards By-law 2007-070. 3.13 The administrative fee is intended to offset additional expenses related to procurement, scheduling, site attendance, and the clerical resources necessary for processing Page121 Municipality of Clarington Page 9 Report FSD-019-25 invoices. The proposed fee is consistent with the existing administrative charge outlined in the Boulevard By-law 2013-066. Planning and Infrastructure Services 3.14 Staff recommend introducing a Deeming By-law application fee for applications that propose to deem all or parts of registered plans of subdivision not to be part of a plan of subdivision if they were registered for eight (8) years or more under Subsection 50(4) of the Planning Act. This is not a common Planning Act Application and historically Clarington has used the exemption from Part Lot Control application fee for these types of applications as the process is similar and more of a legal and technical matter to rectify or change parcel fabric within a plan of subdivision, such as to be able to merge abutting lots. Public Services — Community Services Division New permit fees at the South Bowmanville Recreation Complex 3.15 Staff recommend the addition of new permit fees at the South Bowmanville Recreation Complex (SBRC). The proposed inclusion of these fees in the 2025 update allows sport partners to review and budget accordingly before submitting allocation requests for the new facility. Staff propose holding these rates for the 2026 operational year. .- Quarter Field Indoor Turf Prime $180.00 Per hour Quarter Field Indoor Turf Non -Prime 136.35 Per hour Quarter Field Indoor Turf Prime Off -Season 50.00 Per hour Quarter Field Indoor Turf Non -Prime Off -Season 40.30 Per hour Full Field Indoor Turf -Tournament 500.00 Per hour Gymnasium — Category A 85.26 Per hour 3.16 The gymnasium fee structure will be updated to a new naming convention using Categories A through D. Categories B through D will reflect existing rates, with no change in pricing. The standard rental of a single gymnasium at SBRC will be included under Category B (formerly "DHRC — Gymnasium Full"). A new Category A fee is being introduced to represent the combined rental of both Gymnasiums 1 and 2 at SBRC. Page122 Municipality of Clarington Page 10 Report FSD-019-25 3.17 Benchmarked against comparable facilities and reflecting the operational model of the former Bowmanville Indoor Soccer full turf field, these fees support similar usage for comparable pricing, ensuring continuity for user groups. The gymnasium fees are aligned with the pricing models of existing gymnasium facilities, ensuring consistency and competitiveness across municipal recreation offerings. Staff also recommend a reduced hourly tournament rate for full turf rentals when booked for 5 or more consecutive hours during the on -season. This fee supports sport tourism, which brings economic benefits to the community and promotes local business engagement. Whirlpool add -on fee for pool rentals 3.18 Staff recommend the addition of a whirlpool add -on fee for pool rentals. This fee covers additional costs for maintenance and operation while enhancing rental offerings to customers: Whirlpool Add -On $30.00 1 Per hour Stage rentals, garbage bins, and picnic tables (fields section) 3.19 The stage rental fees are intended to recover costs associated with maintenance and operation, including inspection and staffing requirements, which have increased significantly in recent years. Stage rental staffing costs will be calculated based on the actual staffing required during event times. The proposed stage fees will replace the former hourly stage fees. For picnic tables and garbage bins, delivery fees follow a cost recovery model, addressing staff time for delivery and pick-up. 3.20 Staff recommend that the new supply fees for events be approved as part of the July 1st update, but not take effect until January 1, 2026. Delaying implementation ensures a smoother transition, as introducing these changes mid -season would be operationally complex and could create confusion for event organizers. 3.21 These fees will apply to Community Not for Profit Events that have an approved Special Events application for an event on Municipal Property. Page123 Municipality of Clarington Report FSD-019-25 Page 11 Stage Rental - Staffing Varies by rental, based on required Per rental staffing and a cost -recovery model. Garbage Bins (Delivery) 49.85 Per 5 units, per event Picnic Tables (Delivery) 149.56 Per 5 units, per event New outdoor rental fee 3.22 Staff propose a new rental fee for picnic shelters and gazebos to support cost recovery for maintenance and repairs. These spaces currently have no rental fee but require staff time for cleaning, waste removal, and ongoing operational support. The fee is benchmarked against neighboring municipalities, where similar rentals are charged, and ensures sustainable management of these amenities. Picnic Shelter / Gazebo Swim and Skate sponsorship fee 10.00 1 Per hour 3.23 A flat sponsorship fee of $600 per event is recommended and based on the average potential revenue across all municipal recreation facilities. This was calculated by multiplying each facility's capacity by the current Youth Drop -In rate to estimate event revenue and then averaging those totals to arrive at a consistent rate. Formalizing this fee supports transparency and simplifies administration. Sponsorships help offset operational costs and ensure continued community access to affordable drop -in recreation opportunities. Description of Service Fee Unit Sponsored Public Swim or Open Leisure Skate $600.00 Per event (Any Location) Advertising fees (Rink Boards and Lobby Posters) 3.24 The Municipality now directly manages advertising sales (previously handled by a third party). Page 124 Municipality of Clarington Report FSD-019-25 Page 12 3.25 Staff recommend including the existing advertising fees for rink boards and lobby posters in the User Fee by-law. These fees remain unchanged from the current rates posted on the municipal website. 3.26 Artwork is the responsibility of the advertiser. An additional $200 production fee applies to each rink board. There is no additional cost for lobby ad production. Description of Service-fe-r—m-7 Location 1 Category A Rink Board 1 year Garnet B. Rickard Recreation Complex - $1,500.00 Pad A 1 year Garnet B. Rickard Recreation Complex - Category B Rink Board Pad B, South Courtice Arena - Pad A or B, 1,200.00 Darlington Sports Centre Category A Poster 1 year Garnet B. Rickard Recreation Complex, 1,000.00 South Courtice Arena Category B Poster 1 year Courtice Community Complex, Diane 800.00 Hamre Recreation Complex Category C Poster 1 year Darlington Sports Complex 500.00 Public Services - Emergency Services Division 3.27 Staff recommend adding an Administrative Fee to support cost recovery for MTO and ARIS fees, this fee aligns with the fee in Municipal Law Enforcement for using the same Province of Ontario systems. 4. Financial Considerations (section must remain, select not applicable if there are no considerations) 4.1 The Financial Considerations have been identified in the above rationale; departments will update user fee revenue as part of the 2026 Budget Update where applicable. 5. Strategic Plan 5.1 Not applicable. Page125 Municipality of Clarington Report FSD-019-25 Page 13 6. Climate Change 6.1 Not Applicable. 7. Concurrence This report has been reviewed by the Deputy CAOs of Planning and Infrastructure Services, Public Services and Legislative Services who concur with the recommendations. 8. Conclusion It is respectfully recommended that Council approve the attached Draft User Fee By-law and repeal By-law 2024-022. Staff Contact: Trevor Pinn, CPA, CA, Deputy CAO/Treasurer, 905-623-3379 x2602 or tpinn@clarington.net. Attachments: Attachment 1 — Draft User Fee By-law Interested Parties: There are no interested parties to be notified of Council's decision. Page126 Attachment 1 to Report FSD-019-25 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NO. 2025-xxx Being a by-law to require the payment of fees for services. Whereas Subsection 69(1) of the Planning Act, R.S.O. 1990, c.P.12, as amended, provides that by-laws may be passed by the council of a municipality to establish a tariff of fees for the processing of applications made in respect of planning matters; And whereas Subsection 391(1) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, authorizes a municipality to impose fees or charges for services or activities provided or done by or on behalf of it; And whereas Council passed a resolution arising out of Report FSD-019-25; Now therefore the Council of the Municipality of Clarington enacts as follows: 1. That commencing July 1, 2025, the fees for services provided by the Municipality shall be set out in the following Schedules to this By-law: a. Schedule "A" — General Fees b. Schedule "B" — Legislative Services Fees c. Schedule "C" — Financial Services Fees d. Schedule "D" — Emergency and Fire Services Fees e. Schedule "E" — Planning and Infrastructure Services Fees f. Schedule "F" — Community Services g. Schedule "G" — Public Works Fees h. Schedule "H" — Cemetery Services Fees 2. That the Deputy CAO/Treasurer is authorized to adjust the above schedules, without amendment to this By-law, effective annually on January 1 of each year, by an amount not exceeding the July over July, Ontario All -Items Consumer Price Index (CPI) or $5, whichever is higher. Page127 Attachment 1 to Report FSD-019-25 3. Notwithstanding Section 1, the Deputy CAO/Treasurer, or designate, is authorized to waive service fees for customer service, community events, or internal purposes. 4. That the Deputy CAO/Treasurer, or designate, be authorized to approve interim service fees to be ratified by Council within 12 months of approval. 5. That By-law 2024-022 and any amendments thereto, be repealed. 6. That this by-law shall be effective on July 1, 2025. Passed in Open Council this day of May, 2025. Adrian Foster, Mayor June Gallagher, Municipal Clerk Page128 Attachment 1 to Report FSD-019-25 By-law 2025-xxx Schedule "A" General Fees Fee Schedule Effective July 1, 2025 Fees are subject to HST where applicable. Page129 Attachment 1 to Report FSD-019-25 Note: 1. For daytime use (7:30am to 5:00pm Monday to Sunday), the user is expected to move their vehicle from the charge station parking spot after three (3) hours. A grace period of 30 minutes will be permitted once their allotted time has elapsed before an additional fee is applied. 2. Where offered by the Electric Vehicle Charger Service Provider, Electric Vehicle Parking Spaces may be reserved via an online booking platform on a first come first served basis. If the User does not connect to the electric vehicle charging station within 10 minutes of the reserved time, the User will be charged a fee and lose their place in the queue. Page130 Attachment 1 to Report FSD-019-25 By-law 2025-xxx Schedule "B" Legislative Services Fees Fee Schedule Effective July 1, 2025 Fees are subject to HST where applicable. The following table is a summary of regulatory fees set by the Municipality and rules outlining the license, applicability and eligibility should be referred to the appropriate regulatory by-law: Snow Clearing By-law (93-144)now 'Fee Removal of Snow • Administrative Charge ' - - • Page 131 Property Standards By-law (2007-070) Un Expenses incurred to comply with the terms of an Order that the individual(s) has failed to • satisfy. Administrative Charge Body Rub Parlour By-law (2003-127) (Application Owner's Licence Operator's Licence �ttendant's Licence icense Owner's Licence (Operator's Licence ik�ndant's Licence nse Renewal (Owner's Licence (Operator's Licence Attendant's Licence ler's License By-law (2005-206) Fee Unit Stationary Lu e M Assistant Auctioneers License By-law (2006-116) Auctioneer Annual Auctioneer Single Event Adult Entertainment By-law (2007-063) Owner Licence rator Licence Attendant Licence Site Alteration By-law (2024-017) Fee Unit Expenses incurred to comply with the terms of an Order that the individual(s) has failed to satisfy. Administration Charge Minor Fill Operation Permit Minor Fill Operation Permit Renewal mall Fill Operation Permit Small Fill Operation Permit Renewal Large Fill Operation Permit Large Fill Operation Permit Renewal Exotic Animal By-law (2012-045) rmit Application Impound Daily Care i Unit Attachment 1 to Report FSD-019-25 Note: Where a Prohibited Animal is impounded and a third -party is contracted to care for the Animal, the third -party care fee shall be charged for every day or part of a day the Animal is cared for by the third -party. Page 134 Responsible Pet Owners By-law (2013-024) Licenses Dog or cat — microchipped & spayed or neutered Dog or cat — spayed or neutered no microchip Dog — unaltered — unaltered Dog or cat — Agricultural rate (Note 1) Responsible Pet Owners By-law (2013-024) ee Unit Impounding Wearing License or Microchip First occurrence Second or subsequent occurrence Daily care fee (Note Responsible Pet Owners By-law (2013-024) 1 Impounding Not Wearing License or Not Fee Unit Microchipped First occurrence - Second or subsequent occurrence - ly care fee (Note 2) Not licensed (Note 3) Responsible Pet Owners By-law (2013-024) Fee Unit Surrenders Transfer of ownership of a cat or dog or litter, brought into the Animal Shelter Transfer of ownership of a cat or dog, picked up by the Animal Services Officers, during normal working hours (excluding Sunday and Holidays) Transfer of ownership of a cat or dog, picked up by the Animal Services Officer, outside of regular business hours. Responsible Pet Owners By-law (2013-024) Fee Trap Rental Fees Deposit — Fully refundable upon return of trap Daily rental Responsible Pet Owners By-law (2013-024) Permit to Keep More Dogs than Prescribed Fee Unit Limit Initial Application Fee Annual Renewal Responsible Pet Owners By-law (2013-024) Fee Unit Other Agency Boarding Intake exam - first day board ily Boarding Fee (includes food, cage space, care, daily monitoring, etc.) tiJ Cat Aggressive, dangerous, quarantine or medical isolation animals Nursing mom and litter (kittens or pups <4 weeks) (Fee determined based on size of litter and attention required) Small Animals Veterinary intervention Daily medication administration Grooming (if necessary) Other Services Cold Storage ,Kennel By-law (2013-025) I Application Fee Annual Renewal Special Events on Private -Property By-law (2014-020) -.d Unit Application Review Fee Traffic and Parking By-law (2014-059) Fee Parking Meter Zones on Highways (per schedule 5 of By-law) Municipal Parking Permit Until 8:00am the next day 7 days 21 days 28 days L�.days 84 days ment Vehicle By-law (2015-016) Fee Unit Stationary Refreshment Vehicle Annual Licence Licensed Stationary Refreshment Vehicle Temporary Relocation Fee Mobile Refreshment Vehicle Annual Licence Mobile Refreshment Vehicle Temporary Relocation Fee Refreshment Cart Annual Licence Currently licensed in Clarington Refreshment Vehicle By-law (2015-016) Currently licensed in Durham Currently licensed in another jurisdiction in Ontario If not Currently licensed in any jurisdiction Fireworks By-law (2015-047) F Class A (Permit to Discharge Consumer Fireworks) (Note 1) Class B (Permit to Discharge Display Fireworks or Special Effect Pyrotechnics Class C (Permit to Sell from a Mobile Sales Location) Class D (Permit to Sell from a Temporary Sales Location) Fire Inspection Fee for all Permits other _' than a Class Permit. Vehicle -For -Hire By-law (2019-069) Taxicab/Limousine Broker Licence TNV Broker Licence Replacement Plate Broker Information Update (during term of licence) Taxation Se Certificate Tax Certificate — Rush Tax Receipts/Letters Reprint of any previously issued tax AMllll correspondence New tax account set-up fee Research/archival fee (one hour minimum) Post dated cheque removal fee or date change Mortgage company information Addition to tax roll (e.g., Region of Durham water/sewer lien, POA arrears, development charges etc.) Dishonoured payments (pre -authorized payments/ cheques) LOwnership change ment of Account ars notice I Fees/Title Searches Farm Debt Notice Fee Process a refund/transfer between accounts/ updates to PAP withdrawals Tax sale registration recovery service Information / Document Copy of Emergency Response Report, Fire Loss Report — Within past two (2) years Copy of Emergency Response Report, Fire Loss Report — Over past two (2) years (Archival File Search for buildings up to four (4) units. Permits Schedule "A" Open Air Fire Permit — Residential (12 months) Schedule "A" Open Air Fire Permit — Residential (30 day) Schedule "B" Agreement for Controlled Burn Permit — farm Fireworks — Class B (permit to Discharge Display Fireworks or Special Effect Pyrotechnics) Fireworks — Class C (permit to Sell from a Mobile Sales Location) Fireworks — Class D (permit to Sell from a Temporary Sales Location) Open Aire Fire/Explosion Permit — Special Effects/Movie/Theatrical/Music U Fee Unit Request Inspection of all buildings and occupancy Propane Plan review Existing plan up to 5,000 USWG Existing Plan, greater than 5,000 USWG New/Modified Plan, up to 5,000 USWG New/Modified plan greater than 5,000 USWG Retention of third -party engineering or other firm Single Family Residential Inspection Refreshment Vehicle Inspection Public Education and Training Safety Presentations and Lectures Drill M Fire Extinguisher Training F Unit Attachment 1 to Report FSD-019-25 Preventable Fires and Alarm Services FM U Response to unapproved open-air burning Current MTO Per vehicle, _ (after one warning per 12-month period) Rate minimum on hour,• Page143 Attachment 1 to Report FSD-019-25 Page144 Attachment 1 to Report FSD-019-25 By-law 2025-xxx Schedule "E" Planning and Infrastructure Services Fees Fee Schedule Effective July 1, 2025 Fees are subject to HST where applicable. For Building Permit Fees, please refer to the Building By-law. oning By-law Amendment (Note 9) inor '• Major (Note 2) Removal of "(H)" Holding Symbol xtension of a temporary use : • Combined Official Plan and Zoning By-law mendments (Note 3 and 7)pr ni ssociated with a Minor OPA $25,3385.00 Associated with a Major OPA $19,670.00 Base amount - • - 310.00 Per unit 520.00 Per development Page145 Draft Plan of Subdivision (Note 9) Fee —A Un idential reparation of Subdivision Agreement (Note 5) Preparation of Subdivision Agreement Amendment (Note 5) Recirculation Fee (Note 11) Red Line Revisions to Draft Approval Plan of Fee Unit Subdivision (Note 9) All revisions Major Revisions to Subdivision Applications Fee Not Draft Approved (Note 9) Where original application was filed prior to July 1, 2000 Where original application was filed between July 1, 2000 and December 31, 2006 Major Revisions to Subdivision Applications Fee Unit Not Draft Approved (Note 9) Where original application was filed a December 31, 2006 Subdivision Clearance Extension of Draft Plan Approval Other Related Subdivision Applications (note 9) Fee Unit Part Lot Control Exemption Subsection 50(7) Deeming By-law Subsection 50(4) Draft Plan of Condominium (Note 9) 1 7Fee Unit Residential and Non-residential lication for Condominium Conversions reparation of Condominium Amendment (Note 5 Condominium Clearance Site Plan Approval / Amendment (Note 9) Fee Unit Telecommunications Towers Residential Use Attachment 1 to Report FSD-019-25 Page148 Attachment 1 to Report FSD-019-25 Site Plan Approval / Amendment (Note 9) Uni .. m2 commercialr 11gross floor area $• 411 • 1 11 :. - Per Amendment — Mixed Use (note 6) 1 :1 commercial gross floor area Per - .- unit (maximum $• 411 Amendment — Industrial / Other Use • _ r m2 gross 1 :1 floor (maximum '� • 11 JMinor Site Plan (note 7) :11 11 Sales Trailer / Model Home r Preparation of Section 41 Agreement (note 5) 1 11 Preparation of Section 41 Agreement 1 11 Amendment (note 5) For projectswith greater than 11 • of •• Landscape Inspection Fee area, or units or greater1 '. of landscape ost estimate with a Page149 Site Plan Approval / Amendment (Note 9) Recirculation Fee (note 11) Extension of Site Plan Approval Committee of Adjustment (note 8 and 9) Request for Deferral by Applicant (Tabling Fee) Recirculation Fee (per additional circulation) or Additional Committee of Adjustment Meeting inor Variance (Notes 8 and 9) :essory Buildings and Structures Residential Minor (single, semi-detached, townhouse or proposed lot) Residential Major (all other residential) mmercial er non-residential nd Division (Note 9 Application Fee Preparation of Section 53 Agreement (Note 5) red Stamping Fee Un nit Unit Pre -Consultation Fees Pre -Consultation Meeting Request Pre -Consultation - Minor igns ermanent Sign Permit Temporary Sign Permit Sign By-law Variance Sian By-law Amendment ditional Dwelling Unit plication and Registration Registration for Applications submitted prior to January 1, 2015 Rental Protection Act Land Use Information and Compliance Letter Zoning, Building, and all other property information Subdivision and Site Plan (per agreement) Environmental Review Letter Peer Review Peer review Few Unit Comments on Applications under the Green Fee �ln Energy Act �� microFIT applications (10 kW or less) FIT applications up to 10 MW (solar e FIT applications up to 10 MW (other than solar) Other Street Name Change Request Activation of a dormant application not requiring a public meeting Application Requiring Additional Public Meeting or Open House Application Involving Review Under EPA and/or EAA Process (additional fee) Preparation of Development / Servicing Agreement (note 5 and note 12) Folding of drawings accompanying a submission (fee per sheet) ee i un Real Property Transactions Fee Unit Preparation of any agreements relating to real property transactions not otherwise specifically addressed in this Fee schedule; land transfers (e.g., right-of-ways, encroachments, leases and licensed, Attachment 1 to Report FSD-019-25 Page153 Attachment 1 to Report FSD-019-25 Development of Services, whichever is greater. $50,000 or 2.25% of the Estimated Cost 000 000 000 000 of Services, whichever is greater. $67,500 or 2.0% of the Estimated Cost $3,000,000 or greater of Services, whichever is greater. Note 1 The following are criteria for determining what constitutes a Major Official Plan Amendment application: • New golf courses or expansion to existing golf courses; • New waste facility or expansion to existing waste facility; • Commercial Development greater than 2,500 m2I • Deletion or addition of arterial or collector road; and/or • Any application that due to the broader policy implications for the Municipality would require the need to review or manage studies, or any application deemed to be a major by the Deputy CAO of Planning and Infrastructure Services. • Associated with a Regional Official Plan Amendment Note 2 The following are criteria for determining what constitutes a major Zoning By-law Amendment application: • Associated with an Official Plan Amendment; Page154 Attachment 1 to Report FSD-019-25 • Associated with an application for proposed Plan of Subdivision; • Application involving multiple properties, except for commercial and industrial related applications; and/or • Any application that requires the review of technical support documents or studies (e.g., environmental analyses, transportation). Note 3 Where Official Plan and Zoning By-law Amendments are submitted together a reduction of 50% of the Major Zoning By-law Amendment Fee shall apply. Note 4 The following are criteria for determining what constitutes a minor application for red- line revisions to Draft Approval: • Does not require circulation to outside agencies. Note 5 Agreement preparation fee does not include the cost of registering the agreement and all related documents (e.g., Transfers, Postponements, or inhibiting orders) in the Land Registry office. The cost of such registrations is as fol lows: • Initial registration $250 plus HST, plus disbursements. • All subsequent registrations $125 plus HST, plus disbursements. Applicants must provide the Municipality (Legal Services) with all such costs prior to registration. Note 6 The fee for a Mixed -Use Building will apply when residential units are proposed and a minimum of 50% of the ground floor of a building is for non-residential purposes. Note 7 The following are criteria for determining what constitutes a Minor Site Plan application: • A dog kennel and similarly scaled uses; and/or • A minor alteration to an existing site plan to revise parking, add a patio, add a storage building, revise signage, add or delete portables, etc. Note 8 Minor Variance applications for the construction or placement of an accessibility device to provide access to a single-detached/link or townhouse dwelling is exempt from the fee. An "accessibility device" is defined as a device including a Page155 Attachment 1 to Report FSD-019-25 ramp that aids persons with physical disabilities in gaining access to a dwelling unit. Note 9 Fees for all Planning applications submitted by a registered charitable organization or for a registered non-profit housing organization will be reduced by 50%. Note 10 The following are criteria for determining what constitutes a Minor Pre -consultation: • Associated with a Land Division Application; • Applications associated with a single detached dwelling; and/or • Applications associated with an agricultural use. Note 11 Recirculation fees will be required on the 4th resubmission of application materials that require circulation to internal departments and/or external agencies. Note 12 For preparation of any development/servicing agreement other than a subdivision agreement, Section 41 agreement or a Section 53 agreement, the applicant is required to reimburse the Municipality for its legal costs. If the legal work is undertaken by the Municipal Solicitor, it will be charged at the rate of $180/hour. If the legal work is undertaken by other legal counsel, it will be charged at the legal counsel's hourly rate. The minimum fee for any such agreement shall be $475 plus HST. Page156 Attachment 1 to Report FSD-019-25 By-law 2025-xxx Schedule T" Community Services Fees Fee Schedule Effective July 1, 2025 Fees are subject to HST where applicable. Aquatics Wry A '. 2 0 ' - • Category B14.45' - • Category C 62.47' ,,Category DI • . - • ' - • Bronze Cross ' - • Bronze Medallion and Emergency First Aid Bronze Star ' - • Lifesaving Society Instructor :. ' - • National Lifeguard Full Course Advanced Leadership Instructor ' - • ' - • National Lifeguard Recertification :: ' - • Standard First Aid and CPR C : • ' - • Swim Instructor ' - • Exam Cost Material Cost Per exam / Skate/Walk Adult 4Per visit and Under 0.00 Per visit Senior ' - Youth ' - Group '- Membership Swim and Skate Sponsorship Fee Page157 Aquatics Sponsored Public Swim or Open Leisure Skate (Any Location) Camps Category A Category B Category C Category D xtended Care Fee MJnit Community Development Mee U Admissions and ticketing Advertising Fees ERW+ee Unit Rink Boards Category A - Garnet B. Rickard Recreation Complex — Pad A Category B - Garnet B. Rickard Recreation Complex — Pad B, South _ Courtice Arena — Pad A or B, Darlington Sports Centre Lobby Posters Category A - Garnet B. Rickard Recreation Complex, South Courtice Arena Category B - Courtice Community Complex, Diane Hamre Recreation - Complex Category C - Darlington Sports _ Complex Facilities Category A Resident Parking lot / Civic Square Category B rking lot / Civic Square tegory C arking lot / Civic Square %'dw9vey u Resident Parking lot / Civic Square - Community Group Category E Resident rategory F Resident Event Full Hall Dry Pad Lull Facility with Dry Floor Full Facility with Ice Licensed event Drapery Rental Resident do Community Group / Not -For -Profit Kitchen Resident M cilities Community Group / Not -For -Profit Indoor Stage Setup Resident Community Group / Not -For -Profit Dry Floor Resident Ile 5 Skater Ice Discount Ice Non -Prime Resident Ice Prime Time Resident Lacrosse Bowl Lesident Quarter Field Indoor Turf Prime Resident Quarter Field Indoor Turf Non -Prime Resident Quarter Field Indoor Turf Prime Off -Season Resident Quarter Field Indoor Turf Non -Prime Off -Season Resident Full Field Indoor Turf — Tournament Resident Gymnasium — Category A Category B Category C Facilities Category D Pool Main Resident Pool Additional Staff Pool Swim Club/School Board Youth /K:_[0 Whirlpool add on Squash Club Court Rentals Internal Bookings / Community Group Picnic Shelter/Gazebo Fields Major Fi Adult Commercial Youth Major Field - Unlit Adult Commercial Youth Minor Field Adult mercial Youth Tournaments Baseball Tournament Tournament lighting Fee Unit Fields Batting Cages Artificial Turf Field - Lit Adult Commercial Youth :. ' - • Artificial Turf Field - Unlit Adult ' - • Commercial ' - • Youth ' - • Gazebo ' - • Picnic Area ' - • Special Event Commercialor �� • . ' - • Resident prr r 39.79' - • Stage Rental Saturday (minimum 3 hours) 53.13' - • Sunday/ Stat holiday (minimum 3 hou 72.3' - • Stage Rental Set Up 2,000.00 Per - Inspection Varies by based Staffing o required ' - - staffing • cost -recovery model. Other (Applicable to Community Not for Profit Events that have an approved Special Events application for an event on Municipal Property) Garbage Bins (Delivery) Picnic Tables (Delivery) Fitness Fee Unit Category A .. Category B • . Assessment — Body Scan Assessment — First Steps 9ryland Training (max 30 players) High School Visits (max 30 students) Workshops Personal Training r Hour Hours 10 Hours Semi -Private Semi -Private 5 hours Small Groups Fitness Centre Fitness Centre Plus Group Fitness Locker Rental Fitness Group Fitness Recreation Category A Adult Louth Category B Adult Fee Unit Attachment 1 to Report FSD-019-25 Recreation or Youth 6.99 Per • Category C Adult 7.49 Perhour Youth 8.49 Per • Category D Adult 10.20 Per • Youth 11.01 Perhour Category E Adult 12.91 Per • Youth ' - • Tournament 4.07 ' - • Trade Booth Commercial 57.83' - - - ommunity Group ' - - - Luncheon Per event with meal and • Per Special event with refreshment • : Per visit General Drop -in Adult • '- �Senior Per visit rYouth Per orts Drop -in dult Per visit Senior ' - Youth ' - Sports Drop -in Specialty Adult ' - Senior Page164 Recreation Youth Daytime Skating Drop -in 3 and Under Adult Senior Youth Administration is Leadership Discount Remote Programming Incentive Discount Non -Resident Surcharge Age Based Discount — Senior Age Based Discount - Youth Employee Part-time Discount rmily/Group Discount Inclusion Membership Discount — Ad Inclusion Membership Discount — Senior usion Membership Discount — Y, ent Discount Community Group / Not for Profit Discount (not already identified) Commercial Business Surcharge (not already identified) Unit Attachment 1 to Report FSD-019-25 Note 1: Discounts do not apply where rates have already been discounted. Note 2: A small number of groups offering youth development programs were previously charged the lowest available ice rental fee. When the current rate structure was introduced, these groups were placed on a phased -in plan to gradually move them to the Resident Rate, minimizing sudden increases. As of January 1, 2026, they will reach the Resident Rate. However, as for -profit businesses, the appropriate classification is the Commercial Rate (Resident Rate +20%). To complete the transition, staff recommend a continued phased approach: —10% + CPI in 2027 and again in 2028. New for -profit groups will be charged the full Commercial Rate from the outset. Page166 Attachment 1 to Report FSD-019-25 By-law 2025-xxx Schedule "G" Public Works Fees Fee Schedule Effective July 1, 2025 Fees are subject to HST where applicable. Page167 Attachment 1 to Report FSD-019-25 Access Permits Access Permit Application $130.00 Access Permit Rural (based on size of costs Actual of culvert)required resources Actual cost of Access Permit Urban required resources Actual cost of Curb reinstatement required resources Actual cost of Sidewalk remove and replace required resources Page168 Attachment 1 to Report FSD-019-25 By-law 2025-xxx Schedule "H" Cemetery Fees Fee Schedule Effective July 1, 2025 Fees are subject to HST where applicable. Per plot, includes • - $884.80 $1,327.20 $2,212.00 40% care and maintenance Not applicable No charge No charge Per plot, includes • 296.00 444.00 740.00 40% care and maintenance Disinternment Adult — Single Depth Page169 Adult — Double Depth Cremation Niche Infant Saturday Plot Interments Saturday Cremation/Niche Interments Sunday & Stat Holidays Plot Interments r Sunday & Stat Holidays Cremation/Niche Interments Rental for lowering device, set up and dressing Lrovincial Licence Fee Granite Plaque Replacement ministrative nsfer Fee Duplicate or Replacement Certificate ird Party Sale Transfer nsfer Back to Municipality Monument Foundation or Marker Setting Monument Flat Marker — Regular Flat Marker — Cremation Care and Monument Maintenance . Fee Total Fee Attachment 1 to Report FSD-019-25 Page 171 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 5, 2025 Report Number: LGS-015-25 Authored By: Lindsey Turcotte, Committee Coordinator Submitted By: Rob Maciver, Deputy CAO/Solicitor, Legislative Services Reviewed By: Mary -Anne Dempster, CAO Resolution#: File Number: By-law Number: Report Subject: Appointment to the Anti -Black Racism Advisory Committee, Diversity Advisory Committee, Newcastle Arena Board, and Samuel Wilmot Nature Area Management Advisory Committee Recommendations: 1. That Report LGS-015-25, and any related delegations or communication items, be received; 2. That the resignation of Gary Oliver, Bryan Hutchinson, and Omar Patel, from the Newcastle Arena Board, and Leo Blindenbach, from the Samuel Wilmot Nature Area Management Advisory Committee, be received with thanks; 3. That Lakeridge Health Bowmanville and Bethesda House be appointed to the Diversity Advisory Committee, for a term ending December 31, 2026, or until a successor is appointed; 4. That the Committee consider the applications for appointments to the Anti -Black Racism Advisory Committee, Diversity Advisory Committee, Newcastle Arena Board, and Samuel Wilmot Nature Area Management Advisory Committee, and that the vote be conducted to appoint the citizen representatives, in accordance with the Boards and Committees Management Policy; and 5. That all interested parties listed in Report LGS-015-25 and any delegations be advised of Council's decision. Page172 Clarington Staff Report Report Overview This report is intended to provide background information, regarding the vacancies on the Anti -Black Racism Advisory Committee, Diversity Advisory Committee, Newcastle Arena Board, and Samuel Wilmot Nature Area Management Advisory Committee, and to assist in the appointment process. 1. Anti -Black Racism Advisory Committee 1.1 The Anti -Black Racism Committee was originally a sub -committee of the Diversity Advisory Committee. The Anti -Black Racism Advisory Committee (ABRAC) was created at the January 13, 2025, General Government Committee meeting in accordance with Resolution #GG-017-25. 1.2 Arising from the above -noted resolution, the following were appointed to the ABRAC for a term ending December 31, 2026, or until a successor is appointed: • Angela Todd • Jodie Glean • Nadia Nembard- Anderson Hunt • Joseph • Dione Valentine Adesanya • Rochelle Thomas • Hawa Mire • Lauren Reyes - Grange • Olivia Mullings 1.3 The role of the Clarington ABRAC is to provide advice to Council on issues related to anti -Black racism in Clarington and is comprised of 12 voting members appointed by Council: • 8 citizen members who self -identify as part of the Black community; • 1 Youth member, between the age of 16-24 years who self -identify as part of the Black community; • 1 Member of Council; and • 2 representatives from local organizations, such as but not limited to, community and socially focused organizations, social services, professional associations, housing, healthcare and non-profit organizations, equity and human rights, academia/school boards and criminal justice system, whose work contributes to dismantling anti -Black racism. The Committee will request that the organizations select and prioritize Staff representatives who identify with the Black community but recognize this may not always be possible due to capacity and resources. Page173 Municipality of Clarington Page 3 Report LGS-015-25 1.4 Membership will be sought on the basis of broad interest, understanding, and commitment to identifying and addressing anti -Black racism in the Municipality. Additional qualifications include: • Citizen and Youth Members shall be residents of Clarington; • Skills, knowledge, and lived experience needed to contribute effectively to purpose, mandate and scope of activity for the ABRAC; and • Specific expertise and interests related to Black business, culture, education, employment, health, heritage, and psychological and community safety, among other areas. 1.5 The Terms of Reference were approved at the February 24, 2025, General Government Committee meeting. 1.6 Currently, there are two vacancies for 2 organization representatives for a term ending December 31, 2026, or until a successor is appointed. The following have put forward an application: • Community Development Council Durham • Pattern Therapy Group • Lakeridge Health 1.7 There is one vacancy for a youth member for a term ending December 31, 2026, or until a successor is appointed. The following have put forward an application: • Aniola Phillips • Nolan Lopez • Jaslin Browne • Jandeen Ashton 2. Diversity Advisory Committee (DAC) • Olivia Mullings 2.1 The role of the Clarington DAC is to provide advice to Council on issues related to Inclusion, Diversity, Equity and Anti -Racism (IDEA), specifically looking at ways to foster awareness, reduce barriers, promote inclusion, and engage residents. Page174 Municipality of Clarington Page 4 Report LGS-015-25 2.2 The Committee is comprised of 13 voting members, appointed by Council: • 9 citizen members; • 1 youth members (16 to 24 years); • 1 Member of Council; and • 2 representatives from organizations such as but not limited to community and socially focused organizations, social service agencies, professional associations, housing, healthcare and non-profit organizations, equity and human rights, academia and/or local school boards and criminal justice system, whose work contributes to racism and discrimination. 2.3 The Terms of Reference were updated at the February 24, 2025, General Government Committee meeting, which included the addition of a youth member and 2 representatives from local organizations. 2.4 Membership will be sought based on broad interest, understanding, and commitment to identifying and addressing inclusion, diversity, equity, and antiracism issues. Additional qualifications include: • Citizen and Youth Members shall be residents of Clarington; • Skills, knowledge, and lived experience needed to contribute effectively to the purpose, mandate, and scope of activity for the DAC; and • Commitment as a change -agent in inclusion, diversity, equity and anti -racism matters in the community. 2.5 Staff are recommending the appointment of Lakeridge Health Bowmanville and Bethesda House as the two organization representatives. 2.6 Therefore, one youth member is remaining to be appointed to the Clarington DAC. The following have put forward an application: • Jaslin Browne • Shanelle Paguirigan • Satvika Alamuri • Sienna Ragbar Page175 Municipality of Clarington Page 5 Report LGS-015-25 3. Newcastle Arena Board 3.1 The Newcastle Arena Board is a volunteer Municipal Service Board established by the Municipality of Clarington in accordance with the provisions of the Municipal Act, 2001, as amended. The Board operates the Newcastle Memorial Arena. 3.2 The Board is comprised of 8 citizens, one of whom shall be a member of Council. 3.3 Gary Oliver was appointed to the Arena Board in January 2023, for a term ending December 31, 2026, or until a successor is appointed. In November 2024, the Clerk's Division received notification of their resignation. At the time of the resignation, the Board was under review and was not recommended to fill the vacancy at that time. 3.4 Omar Patel was appointed to the Arena Board in January 2023, for a term ending December 31, 2026, or until a successor is appointed. In February 2025, the Clerk's Division received notification of their resignation. 3.5 Bryan Hutchinson was appointed to the Arena Board in June 2024, for a term ending December 31, 2026, or until a successor is appointed. In February 2025, the Clerk's Division received notification of their resignation. 3.6 Staff began advertising in February 2025; however, no applications were received, therefore the advertising was extended until April 17, 2025. 3.7 As a result of the resignations, Committee may appoint 3 citizens to the Board for a term ending December 31, 2026, or until a successor is appointed. The following have put forward an application for consideration: • Luc Chiasson • Joshua MacDonald • Steven Spracklin • Ali -Reza Allameh • Mark Stahler Page176 Municipality of Clarington Page 6 Report LGS-015-25 4. Samuel Wilmot Nature Area Management Advisory Committee 4.1 The Samuel Wilmot Nature Area Management Advisory Committee (SWNAMAC) is a group of volunteers appointed by the Municipality of Clarington to assist the Municipality and the Ministry of Natural Resources and Forestry in managing the Samuel Wilmot Nature Area. The Committee is also dedicated to preserving and improving the condition of the Nature Area for the benefit of the wildlife that resides there and the enjoyment of the residents of Clarington. The Committee plays an educational role for residents and visitors by organizing public presentations, events, and activities related to nature and the environment. 4.2 The Committee is comprised of the following 12 voting members, appointed by Council: • 11 citizen members; and • 1 Member of Council. 4.3 The Committee shall also consist of one non -voting representative from the Ganaraska Region Conservation Authority. 4.4 All members must be residents of the Municipality of Clarington, shall possess various skills, and will participate in the implementation of the Environmental Management Plan (EMP). The required skills are as follows: • Technical — shall interpret the EMP, recommend the work plan on a yearly basis, and provide leadership during the implementation of projects and monitoring; • Public Relations — shall create a public relations strategy focusing on public awareness, education, and promoting the site; • Fund-raising — may create a fund-raising strategy aimed at soliciting private funds, donations -in -kind, and investigating charitable status; and • Volunteer support — shall be responsible for soliciting volunteers and organizing work programs. 4.5 Leo Blindenbach was appointed to the SWNAMAC in January 2023, for a term ending December 31, 2026, or until a successor is appointed. In March 2025, the Clerk's Division received notification of their resignation. Page177 Municipality of Clarington Page 7 Report LGS-015-25 4.6 As a result, Committee may appoint 1 citizen to the SWNAMAC for a term ending December 31, 2026, or until a successor is appointed. The following have put forward an application: • Anusha Srinivasan • Megan Klemencic • Susana Gomes • Barbara Szita-Knight • Lou Itier • Paul Hallett • Mike Kube 5. Advertising and Applications 5.1 The Municipal Clerk's Division placed an advertisement in local papers and on the Municipality's website, www.clarington.net/Committees, to fill the vacancies on the Anti - Black Racism Advisory Committee, Diversity Advisory Committee, Newcastle Arena Board, and Samuel Wilmot Nature Area Management Advisory Committee. 5.2 In an effort to extend the reach of our advertisements for vacancies, the Clerk's Division created a profile on the www.claringtonvolunteers.ca website. Vacancies on the Anti - Black Racism Advisory Committee, Diversity Advisory Committee, Newcastle Arena Board, and Samuel Wilmot Nature Area Management Advisory Committee were listed on the Clarington Volunteers website. 5.3 In accordance with the "Boards and Committees Management Policy", a confidential application package is included as Attachment 1, and provided under separate cover. 6. Financial Considerations Not Applicable. 7. Strategic Plan L.4.1: Increase opportunities for civic engagement and public participation. 8. Concurrence Not Applicable. Page178 Municipality of Clarington Page 8 Report LGS-015-25 9. Conclusion It is respectfully recommended that Committee consider the vote to make the appointments to the Anti -Black Racism Advisory Committee, Diversity Advisory Committee, Newcastle Arena Board, and Samuel Wilmot Nature Area Management Advisory Committee 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 (Distributed Under Separate Cover) Interested Parties: The following interested parties will be notified of Council's decision: All applicants Anti -Black Racism Advisory Committee Diversity Advisory Committee Newcastle Arena Board Samuel Wilmot Nature Area Management Advisory Committee Page179 Municipality of Clarington General Government Committee Meeting Resolution DATE: May 5, 2025 MOVED BY Mayor Foster SECONDED BY Councillor That Staff be directed to report back on the progress, or lack thereof, of installing CCTV in downtown Bowmanville in co-operation with the BIA and with the encouragement of Durham Region Police Service. Page180 Municipality of Clarington General Government Committee Meeting Resolution DATE: May 5, 2025 MOVED BY Mayor Foster SECONDED BY Councillor That Staff be directed to report back outlining options for an annual report recognizing the accomplishments of Staff. Page 181