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Home My WebLink AboutCOD-065-04 ~~~mgron REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: December 6, 2004 Report #: COD-065-04 File#_ j{e6-11 61'/1-56 7-6<-( By-law # c?OOI./ ';;255" Subject: Single Stream Remuneration Agreement with Region of Durham Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-065-04 be received; 2. THAT the Mayor and Clerk be authorized to execute the agreement, substantially In the form of Attachment #1, with the Region of Durham, for the provision of remuneration by the Municipality of Clarington for Regional Council duties; and 3. THAT the appropriate by-law be forwarded to Council for approval; and 4. THAT the Region of Durham be notified of Council's decision and provided with a copy of the above by-law. Submitted by: ~ / d~,N arie Marano, H.B.Sc., C.M.O. Director of Corporate Services Reviewed by: kin Wu, Chief Administrative Officer ~ MM/ca 1~14 REPORT.: COD-065-04 PAGE 2 BACKGROUND AND COMMENT 1. Council, in approving report COD-05-04, authorized the payment for Regional Councillors' duties under a single stream arrangement at the local level. 2. This arrangement was originally intended to be effective in 2004, however due to the complexities of transferring OMERS, taxation and benefit matters to satisfy the authorities that the process would be a bona fide arrangement, the effective date was advanced to January 1, 2005. 3. The Region of Durham drafted an agreement to set out the terms of the arrangement with the participating municipalities for current and future Regional Councillors. Clarington, Whitby, and Uxbridge have identified interest in participating in this single stream remuneration process. 4. The agreement commits the current Regional Councillors, and any future Regional Councillors to payment for all Regional and Local compensation to be paid at the local level. 5. The benefit plans which were previously provided at the Regional level have been eliminated and a cash value equivalent to the Region's premium payment has been identified. This benefit value will not be included in calculations for future payment issues such as L TD claim calculations etc. The benefit plan that Councillors currently receive at the local level will continue as before. 6. The Region of Durham will continue to set the rate of remuneration for all Regional Councillors, and will reimburse all associated costs to the Municipality of Clarington. 7. The agreement provides for a cut-off period at December 24th to permit the transfer of remuneration to match the pay period timing of the local levels. This will leave a 3 week period over year end before the next payment is received at the local level on January 13th, which will represent a 3 week payment. 8. The Region of Durham is proposing to bring the attached agreement and appropriate by-laws to Regional Finance and Administration Committee meeting, and subsequently to Regional Council, in December in order to permit the agreement to take effect in January 2005. Attachment # 1: Agreement with the Region of Durham #2: By-law CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVlllE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169 l~L) THIS AGREEMENT made this _ day of .2004 Attachment # 1 Report COD-065-04 BETWEEN: THE REGIONAL MUNICIPALITY OF DURHAM (the "Region") - and- (the "Municipality") WHEREAS this agreement is being entered into pursuant to section 20 of the Municipal Act, 2001, 5.0. 2001, c.25 (the "Act") to provide for jOint services in respect of the administration of remuneration for members of Regional Council; AND WHEREAS by the Adoption of Report No. 2004-A-05(1) of the Finance and Administration Committee, Regional Council at its meeting held on February 11, 2004 authorized an arrangement for the harmonization of Councillors' salaries between the . Region and the Municipality in order to provide for a single stream payment of remuneration to members of Regional Council by the Municipality; AND WHEREAS the Municipality, by By-Law No. passed on . has confirmed that it is prepared to enter into a joint services agreement with the Region; NOW THEREFORE the parties agree as follows: APPLICATION 1. This Agreement shall be applicable to all members of Regional Council who are members of Council for the Municipality, including the Mayor. L:....I.u -2- DUTIES 2. The Region shall: (a) establish the rate of remuneration in respect of all members of Regional Council, which may be amended from time to time (hereafter referred to as "Regional Remuneration"); (b) reimburse the Municipality for the costs of the Regional Remuneration, including any increases to benefit expenses on a pro rata basis attributable to Regional Remuneration. Such funds shall be remitted in accordance with the terms set out in Schedule "A" attached hereto. (c) reimburse the Municipality for the cost of providing a payment to its Regional Councillors in lieu of their being entitled to receive the applicable insured benefits otherwise offered to Regional Councillors by the Region. Such funds shall be remitted in accordance with the terms set out in Schedule "A" attached hereto. (d) continue to administer and/or adjudicate any long term disability benefit claim in respect of the Municipality's Regional Councillors, and shall reimburse the Municipality as appropriate. Any such claim shall be based upon the Regional remuneration net of the payment in lieu of benefits referenced in paragraph 2(c). 3. The Municipality shall; (a) implement all measures necessary to administer the Regional Remuneration and payments in lieu of benefits in accordance with the terms of this agreement and Schedule "A" attached hereto. (b) invoice the Region for the direct costs of the Regional Remuneration and the payments in lieu of benefits. 1~1' - 3- 4. This Agreement shall be administered by the Municipality solely on a direct cost recovery basis and there shall be no additional administrative costs charged to the Region arising from the administration of Regional Remuneration and payments in lieu of benefits by the Municipality. TERM OF AGREEMENT 5. This Agreement shall be in force effective January 1, 2005. Either party hereto may terminate this Agreement by providing at least sixty (60) days written notice to the other party. INDEMNITY 6. The Municipality agrees to indemnify and save harmless the Region from and against any and all costs, claims, demands, suits, actions and judgments made, brought or recovered against the Region resulting from any act or omission by the Municipality, its employees or agents, in connection with the provision of services pursuant to this Agreement including, without limitation, any proceeding or claim resulting from a failure to deduct or remit any required statutory deduction in connection with the Regional Remuneration. BINDING EFFECT 7. This Agreement shall enure to the benefit of and be binding upon the parties and their respective successors, administrators and assigns. SCHEDULE 8. Schedule "A" as attached forms an integral part of this Agreement and is binding upon the parties. AMENDMENTS 1~.d) - 4- 9. This Agreement and Schedule "A" hereto may be amended from time to time upon the mutual written agreement of each party or their respective successors or permitted assigns. IN WITNESS WHEREOF the parties hereto have hereunto affixed their respective seals under the hands of their proper signing officers duly authorized in that behalf. THE REGIONAL MUNICIPALITY OF DURHAM Per: Per: [MUNICIPALITY] Per: Per: 1':;1~ SCHEDULE "A" JOINT SERVICES AGREEMENT to provide for remuneration to members of Regional Council pursuant to s.20 of the Municipality Act, 2001, S.O. 2001, c.25 1. The rates for Regional Remuneration and payments in lieu of benefits referenced in paragraph 2 of the Agreement shall be: Regional Remuneration $39,985.00- effective January 1, 2005 Regional Remuneration $41,185 - effective April 1 , 2005 Additional Regional Remuneration as Chair of Regional Standing Committee or member of Police Services Board $6,000 - effective January 1, 2005 Payment in lieu of benefits $3,000.00 - effective January 1, 2005 2. Regional Remuneration and payment in lieu of benefit rates will be amended from time to time as established by Regional Council and/or the Commissioner of Human Resources of the Region, and this Schedule shall be amended accordingly. 3. Regional Remuneration shall be deemed to include any entitlement to severance remuneration that a member of Regional Council may be elltitled to from time to time pursuant to the by-laws of the Region. . The reimbursement in respect of increased benefits expenses referenced in paragraph 2(b) of the Agreement includes employer's share of premiums for Canada Pension Plan, OMERS contributions and all other statutory and discretionary benefits incurred by the Municipality that are directly attributable to Regional Remuneration provided that such reimbursement shall be undertaken on a pro rata basis. 4. l;';'GU - 6- 5. The Municipality will invoice the Region quarterly for the recovery of Regional Remuneration, payment in lieu of benefits and related benefit expenses. l~Gl Attachment #2: Report COD-06S-04 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-lAW 2004- Being a By-law to authorize the execution of a contract between the Corporation of the Municipality of Clarington and the Region of Durham for the provision of services under an agreement for Single Stream Remuneration for Regional Council duties, for the Mayor and Members of Regional Council. THE CORPORATION OF THE MUNICIPALITY OF ClARINGTON HEREBY ENACTS AS FOllOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, a contract between, the Region of Durham and said Corporation; 2. THAT the contract in substantially the form attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of By-law read a third time and finally passed this day of ,2004. ,2004 John Mutton, Mayor Patti L. Barrie, Municipal Clerk 1 . ..'J h.,~r;.,