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HomeMy WebLinkAbout2003-135 CORPORATION OF THE MUNICIPALITY OF ClARINGTON BY-lAW NO. 2003-135 being a by-law to authorize the execution of an Agreement between the Corporation of the Municipality of Clarington and the Clarington Board of Trade to continue the economic development functions on behalf of the Municipality THE CORPORATION OF THE MUNICIPALITY OF ClARINGTON HEREBY ENACTS AS FOllOWS: 1. THAT the Mayor and Municipal Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington with the Corporation Seal, an Agreement between the Clarington Board of Trade to continue the economic development functions on behalf of the Municipality. By-law read a first and second time this 15th day of September 2003. By-law read a third time and finally passed this 15th day of September 2003, DRAFT #3: Sept. 4,2003 THIS AGREEMENT is made as of this 15th day of September, 2003. BETWEEN: THE CLARINGTON BOARD OF TRADE (hereinafter called the "Board of Trade") OF THE FIRST PART THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (hereinafter called the "Municipality") OF THE SECOND PART AGREEMENT WHEREAS: A. The Board of Trade is incorporated under the laws of the Province of Ontario to promote and improve access to commercial/industrial development opportunities in the Municipality of Clarington and to strive to improve commerce and the economic well-being of the Municipality. B. The members of the Board of Trade include, among others, corporations, partnerships, firms and associations that carryon business in the Municipality of Clarington. C. The Municipality and the Board of Trade made an Agreement dated April 12, 1999 respecting, among other matters, the delivery of services in the area of Economic Development in the Municipality. The "Initial Term" of that Agreement expired on December 31, 2000. The "Initial Term" was extended to expire on December 31,2003 by the First Amending Agreement between the Parties dated February 26,2001. The agreement dated April 12, 1999 as amended by the First Amending Agreement dated February 26, 2001 collectively are referred to hereinafter as the "Present Board of Trade Agreement". D. By its adoption of Report #Admin-04-03 at its meeting on June 23, 2003, Council of the Municipality approved the making of this Agreement subject to the Regional Municipality of Durham approving the Municipality of Clarington's continuing to deliver economic development functions and services in the Municipality in accordance with the provisions of the Municipal Act, 2001, S.O. 2001, c.25, as amended ("Act"). E. The execution of this Agreement by the Mayor and the Municipal Clerk on behalf of the Municipality is authorized by By-law No. 2003-_ which was passed by the Council of the Municipality on September 15, 2003. NOW THEREFORE WITNESSETH THAT in consideration of the premises and the covenants hereinafter expressed, and the sum of two ($2.00) dollars of lawful money of Canada now paid by each Party to the others (the receipt whereof by each Party is hereby acknowledged), the Parties hereto covenant and agree to and with each other as follows: 2 1.0 Term 1.1 The Parties hereto shall perform their respective duties and responsibilities under this Agreement for three (3) years on and from January 1, 2004 ("Term"). Unless the Term ofthis Agreement is extended in accordance with paragraph 6.1, this Agreement shall terminate and have no further force or effect on December 31,2003. 2.0 Agreement Not to Affect Present Board of Trade Agreement 2.1 Notwithstanding the execution of this Agreement by the Parties, the Present Board of Trade Agreement shall continue in full force and effect until it expires on December 31,2003. 3.0 Agreement Conditional on Region of Durham's Action 3.1 This Agreement shall be conditional on and have no force or effect until the Regional Municipality of Durham has approved by way of delegation or otherwise the Municipality, continuing to deliver economic development functions and services in the Municipality of Clarington. 4.0 Responsibilities of Parties 4.1 In addition to providing reports to the Municipality that the Board of Trade initiates on its own or initiates at the request of the Council, in each year of the Term of this Agreement and any extension or renewal thereof, the Board of Trade shall prepare a report of its activities for the previous year ("Annual Report") and a work program for the current calendar year (the "Annual Work Program"), as well as a proposed budget for the current year in a form satisfactory to the Municipality's Chief Administrative Officer. The Annual Report, the Annual Work Program and the proposed budget for each current year shall be submitted to the Municipality by February 15th of each year of the Term or any extension or renewal thereof, so that they can be considered and if appropriate approved by Council in conjunction with the Municipality's budget processes. (The approved Annual Work Program for each year of this Agreement and any extension or renewal thereof is referred to hereinafter as the "Approved Annual Work Program".) The latest approved budget is referred to hereinafter as the "Approved Annual Budget". 4.1.2 The Board of Trade shall not represent in any way to any person that its Business Development Officer/Manager will be either a full-time or a part-time employee of the Municipality, or will be entitled to any of the benefits of an employee of the Municipality, including without limitation, the right to participate in the Ontario Municipal Employees Retirement System plan. The Board of Trade shall provide a copy of this Agreement to each candidate who is interviewed for employment as the Business Development Officer/Manager. 4.1.3 During the Term of this Agreement and any extension or renewal thereof the Board of Trade shall continue to take primary responsibility in the areas of business attraction and business retention in the Municipality of Clarington. All actions undertaken by the Board of Trade and its employees shall be consistent with the ethical practices of the Municipality and its staff, and shall promote the Municipality to businesses in manner agreeable to the Municipality's Council. The Board of Trade and its employees shall refrain from engaging in actions or conduct in the opinion of Counci I may negati vely impair the relationshi p between the Board of Trade and the Municipality. 4.1.4 For the avoidance of doubt, the Parties acknowledge and agree that the Board of Trade is exclusively responsible for the payment of any and all compensation and benefits to its staff full-time and part-time employees, including but not limited to the Membership Co- ordinator, the Business Development Officer/Manager and other staff that it may employ. If at any time funds in excess of the financial support from the Municipality set out in this Agreement re required by the Board of Trade for the payment of such compensation and benefits or for any other of its purposes, the Board of Trade acknowledges and agrees that it 3 is exclusively responsible to raise any necessary funds from persons other than the Municipality. 4,1.5 The Board of Trade shall satisfy the requirements of all applicable laws in respect of its employees and in respect of the workplace for its activities. 4.1.6 Notwithstanding the Board of Trade's assumption of primary responsibility in the areas of business attraction and business retention in the Municipality of Clarington, the Parties acknowledge that the Municipality will continue to playa supporting role in those areas as more particularly described hereafter in this Agreement. The common goals of business attraction and business retention shall be a priority for the Board of Trade throughout the Term of this Agreement and any extension or renewal thereof, 4.1. 7 The Board of Trad~ shall prepare a Business Directory and Vacant Land and Building Inventory for the Municipality prior to December 31, 2004 and shall update the document on an annual basis. 4.2 Responsibilities of the Municipalitv 4.2.1 During the Term of this Agreement, in exchange for the performance of the Board of Trade' s duties and responsibilities provided for in this Agreement to assist it in defraying its cost, the Municipality will make the following annual lump sum payments to the Board of Trade: Year Date of Payment Amount of Payment 2004 2005 2006 March 1,2004 March 1,2005 March 1, 2006 $90,000 $95,000 $100,000 If the Term is extended or renewed until December 2007 in accordance with paragraph 6,1, on March 1, 2007 the Municipality shall pay the Board of Trade $100,000 to assist in defraying its costs incurred the performance of its duties and responsibilities provided for in this Agreement 4.2.2 In addition to the payments provided for in paragraph 4.2,1, the Municipality will make a one-time payment to the Board of Trade of $18,000 on or before April 1, 2004 to assist the Board of Trade in defraying the cost or part of the cost of preparing the Business Directory and Vacant Land and Building Inventory referred to in paragraph 4.1.10. 4.2.3 The Municipality shall assist and cooperate with the Board of Trade in respect of the following matters: (1) subject to compliance with the Municipal Freedom of lnfonnation and Protection of Privacy Act, forwarding information received by the Municipality concerning businesses which are interested in locating in the Municipality of Clarington; (2) providing office space for the Board of Trade being the "north wing" of the Tourism Office at 181 Liberty Street South, Bowmanville, for the duration of this Agreement;; (3) sharing with the Municipality responsibility of the operating costs of the new Tourism Office including electricity, water and heating charges, cleaning and maintenance expenses in the proportions of 50% by the Board of Trade and 50% by the Municipality and paying its share forthwith after each written invoice is given to it by the Municipality's Manager of Communications and Tourism; and (4) permitting use by the Board of Trade of telephone and telefax equipment located in the Tourism Office which are dedicated to its use, provided that all telephone, telefax and Internet charges including connection charges for services used by the Board of Trade, its officers and employees, and the cost of a Web site used by the Board of 4 Trade, shall be paid by the Board of Trade either directly to the service provider or forthwith after each written invoice is given to it by the Municipality. 4.2.4 During the Term of this Agreement and any extension or renewal thereof, the Municipality will direct or copy all enquiries that it may receive from businesses located in the Municipality of Clarington who indicate that they may relocate out of the Municipality, so that such businesses may be contacted by the Board of Trade. The Board of Trade will use its best efforts to persuade such businesses to continue their location in the Municipality of Clarington. 5.0 Financial Affairs and Mana2ement bv Board of Trade 5.1 During the Term of this Agreement and any extension or renewal thereof: (a) the Board of Trade shall establish December 31 st and thereafter maintain December 31st as its financial year end until the expiry of the Term of this Agreement and any extension or renewal thereof; (b) the Board of Trade shall establish and maintain in accordance with good accounting principles satisfactory to the Municipality's auditor proper bank accounts and records for all funds received by the Board of Trade, and all bookkeeping and accounting systems and records and supporting vouchers and documentation; (c) the Board of Trade shall record serially all of the Board of Trade's revenues and receipts and all of the Board of Trade's disbursements for each financial year of the Board of Trade; (d) not later than March 31 st of each year during the Term and any extension or renewal thereof, the Board of Trade shall file with the Municipality's Treasurer an audit report prepared in accordance with proper accounting and audit principles and standards by a qualified auditor respecting the financial affairs of the Board of Trade for the preceding period. The Board of Trade's financial statements shall not be consolidated with the Municipality's financial statements. 5.1.2 The Board of Trade shall expend funds received from the Municipality pursuant to this Agreement or otherwise only for the purpose of defraying the Board of Trade's operating expenses and not for the purpose of acquiring property or other fixed assets. 5.1.3 The Municipality shall have the right to terminate this Agreement after giving the Board of Trade at least sixty (60) days written notice of termination if (1) the Board of Trade fails to file an audit report in accordance with paragraph 5.1.1, (d) the Board of Trade does not comply with paragraph 5.1.2, or (3) the Municipality's Council, acting reasonably, is of the opinion that the financial affairs of the Board of Trade are not being managed in accordance with proper accounting principles and in accordance with the Approved Annual Budget and the Approved Work Program. 5.1.4 Notwithstanding paragraph 5.1.3 or any other provisions of this Agreement, this Agreement may be terminated by the Municipality at any time without prior notice to the Board of Trade if the Municipality's Council, acting reasonably, suspects inappropriate conduct, inappropriate use of funds provided by the Municipality, or ineffective or false portrayal of the economy or the image of the Municipality, by the Board of Trade, its officers or its employees. 6.0 Extension or Renewal of A2reement 6.1 If the Board of Trade has not defaulted in performing its duties and responsibilities in accordance with the provisions of this Agreement, and not earlier than June 30, 2006 but not later than September 30,2006 the Parties have given written notice to each other that they consent to the extension or renewal of this Agreement so that it will expire on December 31, 5 2007, the Term of this Agreement shall be deemed to have been extended or renewed to expire on December 31,2007 without a formal amendment being made to this Agreement. If it is so extended or renewed, time shall continue to be of the essence of this Agreement. 7.0 General 7.1 The copyright in all written material, discs, audio tapes and video tapes prepared or published by the Board of Trade which advertises the Municipality and its advantages, is hereby assigned to the Municipality which shall be deemed to be the exclusive owner of such copyright material, discs, audio tapes and video tapes, 7.2 All disputes between the Municipality and the Board of Trade respecting the interpretation of this Agreement, Approved Work Programs and Approved Annual Budgets, shall be resolved exclusively by the Municipality's Council, acting reasonably. 7.3 The Parties acknowledge and agree that nothing contained in this Agreement is intended to or shall be deemed to establish a partnership or joint venture between the Parties, or to constitute either Party the agent of the other Party for any purpose. 7.4 Time shall be of the essence of this Agreement. 7.5 If any notice or other document is required to be or may be given by the Municipality or by any official of the Municipality to the Board of Trade or by the Board of Trade to the Municipality under this Lease, such notice shall be transmitted by telefax, mailed by first class prepaid post or delivered to: Municipality: The Corporation of the Municipality of Clarington 40 Temperance Street Bowmanville, Ontario Ll C 3A6 Attention: Chief Administrative Officer If by telecopier to: (905) 623-5717 Board of Trade: The Clarington Board of Trade P,O. Box 434 Bowmanville, Ontario LIC 322 If by telecopier to: (905) 623-0733 or such other address of which the Municipality or the Board of Trade has notified the other in writing. Any such notice so mailed or delivered shall be deemed good and sufficient notice under the terms of this Lease and shall be effective from the date which it is so mailed or delivered. Any notice transmitted by telefax shall be effective from the date that it is telefaxed. 7.6 This Agreement shall enure to the benefit of the Parties hereto and their respective successors. Neither the benefit nor the responsibilities of the Board of Trade under this Agreement shall be assigned to any person without the express written approval of the Municipality's Council. IN WITNESS WHEREOF the Parties hereto have hereunto set their hands and seals the day and year first above written and the Parties hereto have hereunto affixed their corporate seals by the hands of their proper officers duly authorized in that behalf. SIGNED, SEALED AND DELIVERED In the presence of: ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) 6 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ~ . By: :~C~~BO~=E N~m~. ~ o,,:-,c...C.&. - ~ 'D ~.r Tille. <{.~~ By: Lc.~<c<{~ me: c::, '::l '"t..Fw-.. '" c:: M t tIC. 'M ~ itIe: 'V;,\)S\nE?5 t>tvtNop r-...~r t\~~~