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HomeMy WebLinkAboutLGL-009-15 Uarftwn Legal Services Report If this information is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. Report To: General Government Committee Date of Meeting: November 9, 2015 Report Number: LGL-009-15 Resolution: 4 File Number: Department File# L2030-02-09 By-law Number: ;I,o\ i Report Subject: Older Adult Governance - Management of the Beech Centre Recommendations: 1. That Report LGL-009-15 be received; 2. That Council pass By-law No. 2015-074 attached to this Report (Attachment 1) in order to designate the Beech Centre as a municipal capital facility and exempt it from taxation; 3. That the Clerk be directed to provide written notice of By-law No. 2015-074 to the Minister of Education as required by subsection 110(5) of the Municipal Act, 2001; 4. That the Clerk be directed to provide written notice of By-law No. 2015-074 to the Municipal Property Assessment Corporation, the Clerk of the Region of Durham and the local school boards as required by subsection 110(8) of the Municipal Act, 2001; 5. That the Mayor and the Clerk be authorized to execute the Transition Agreement and Municipal Capital Facility Agreement with the Bowmanville Older Adult Association attached to this Report (Attachments 2 and 3); 6. That staff be authorized to take"all steps necessary to fulfill all of the Municipality's obligations under the Transition Agreement; and 7. That all interested parties listed in Report LGL-009-15 and any delegations be advised of Council's decision. Municipality of Clarington Report LGL-009-15 Page 2 Report Overview This Report contains recommendations that are intended to implement specific aspects of Council's preferred option for older adult service delivery. The agreements attached to this Report provide the basis for the management of the Beech Centre to be transferred from a municipal service board (Clarington Older Adult Centre Board) to an independent not-for-profit corporation (Bowmanville Older Adult Association). 1 . Background 1.1 In 1998, the Municipality became the owner of 26 Beech Avenue, Bowmanville. The Municipality took title to the property subject to a lease with the Bowmanville Tennis Club. 1.2 In October 1998, the Municipality leased the property (other than the tennis court area) to the Clarington Older Adult Association. 1.3 In December 2011, Council established the Clarington Older Adult Centre Board as a municipal service board to operate and manage the Beech Centre. 1.4 In May 2012, the Municipality entered into a new lease with the Bowmanville Tennis Club. 1.5 On June 29, 2015, Council considered Report CSD-008-15 (Older Adult Strategy Governance) and resolved, amongst other matters, to dissolve the Clarington Older Adult Centre Board effective January 1, 2016 and enter into an agreement with a not-for-profit corporation for the use and operation of the Beech Centre. The full resolution (#GPA-425-15) reads as follows: That Report CSD-006-15 be received; That By-law 2011-166 be repealed effective January 1, 2016; That staff develop a two year Agreement for the use and operation of 26 Beech Avenue by the COAA as a registered not-for-profit corporation; That the Agreement identify that the minimum qualifying age for membership with the COAA be established at 55 years with the exception of current COAA members between the ages of 50-54 years who will be grandfathered; Municipality of Clarington Report LGL-009-15 Page 3 That the COAA update the organization's information with the Province of Ontario Ministry of Government Services in regard to their corporate status; That the mandate of the Community Services Department be expanded to include responsibility for community programming for adults age 55 years and over living in Clarington effective January 1, 2016; That the Community Services Department be given budget approval to recruit and hire an Older Adult Coordinator and Older Adult Programmer(non-affiliated positions) with a start date of August 2015, at a cost of approximately$72,400 including salaries and benefits for 2015; That the Community Services Department be given 2015 budget approval for$40,000 for capital equipment purchases for the dedicated space at the Courtice Community Complex and that the necessary funds be-accessed from the Community Services Capital Reserve Fund; That the Community,®Services Department develop a 2016 Older Adult Budget as a part of the overall Community Services 2016 budget submission; and That the COACB be directed to liaise with the Municipal Director of Finance/Treasurer on the development of a revised 2015 budget. 2. Discussion 2.1 Consistent with the direction provided through Resolution #GPA-425-15, staff have prepared 2 agreements that are intended to transfer the management and operation of the Beech Centre from the Clarington Older Adult Centre Board to a new not-for-profit corporation (Bowmanville Older Adult Association — a name selected by the current COAA Board). 2.2 Bowmanville Older Adult Association has been incorporated under the Canada Not-For-Profit Corporations Act. 2.3 The Transition Agreement (Attachment 2) deals with the transfer of assets and liabilities from the Municipality and the municipal service board (COAA Board) to the new corporation (BOAA). In essence, it deals with matters that are applicable to the purchase and sale of a business. The Municipal Capital Facilities Agreement (Attachment 3) is intended to address matters that will continue into the future in terms of the Municipality's relationship with the new corporation. It is Municipality of Clarington Report LGL-009-15 Page 4 essentially a lease that has been tailored so that it also addresses municipal taxation issues and issues relating to older adult services and programs. 2.4 The key elements of the Transition Agreement are as follows: (a) Section 4 (Transfer of Assets) Ownership of all assets currently being used by COAA (other than the real property) will be transferred to BOAA. Staff felt that this was appropriate because the assets of value (e.g. the vehicles) were paid for using money raised by the COAA as opposed to grant monies that came from the Municipality. (b) Section 8 (Reserve Funds) It is recommended that the existing Older Adult Reserve Funds be dealt with as follows: (i) 50% of the Operating Reserve Fund (total fund balance $69,100 as at September 30, 2015) be paid to BOAA and the remaining 50% be redirected to the Municipality's Facilities Maintenance Reserve Fund and used to address future capital repairs or improvements at the Beech Centre. The funds in the Older Adults Centre Operating Reserve Fund date back to when the Beech Centre was originally established as the Older Adults Centre and the COAA was charged with the operation of the centre. At that time, Council set aside in a separate reserve fund $1 million for a period of several years, of which the principal could not be used. The principal was then returned to its original reserve fund. The interest earned on the funds was to be available to assist COAA in the operations and programming of the facility. The funds have only been drawn on a couple of occasions over its history. As a result of the original intent of the funds, staff feel that it is a fair position that half of the remaining funds go towards the programming of the facility through the newly formed organization and half go towards future capital needs of the facility through the operations department. (ii) The Capital Reserve Fund ($17,826 as at September 30, 2015) be paid out in its entirety to BOAA. This reserve fund was established originally for the purpose of providing funds to monitor the costs and revenues associated with the construction and completion of the Clarington Older Adults Centre through By-law 96-95 with provincial and federal grants as Municipality of Clarington Report LGL-009-15 Page 5 well as donations to be deposited into this account. Due to both the original source of the funds specific for the centre and the smaller dollar value of this reserve fund currently, it is recommended that the funds be transferred to the new organization for minor capital purposes. (c) Sections 10 — 12 (Liabilities) In accordance with O. Reg. 582/06, the Municipality will stand in the place of the COAA Board for all purposes after it is dissolved effective January 1, 2016. This means that all liabilities of the Board vest in the Municipality. These sections speak to all such liabilities. 2.5 The key elements of the Municipal Capital Facilities Agreement are as follows: (a) Sections 5 — 8 (Use of Centre) The uses are described so as to ensure that the Beech Centre maintains tax exempt status. (b) Section 11 (Term) As directed by Council, the initial term is 2 years. Thereafter, the term will automatically renew for periods of 1 year unless otherwise terminated. (c) Part 4 (Programing) " Part 4 is intended to Ensure that responsibilities for services and programs are clearly articulated in order to avoid duplication and public confusion around service delivery. (d) Part 5 (Maintenance and Repairs) The Municipality will`continue to be responsible for structural maintenance and repairs at the property and BOAA will be responsible for day-to-day maintenance. 2.6 The last item in Resolution #GPA-425-15 directed the Municipal Director of Finance /Treasurer to liaise with the COAA board on the development of a revised 2015 budget. The Director met with COAA representatives in late July to discuss such revisions. Based on the information provided as well as the original budget submission, the Director was satisfied that the revised budget request of Municipality of Clarington Report LGL-009-15 Page 6 $255,000 (reduced from $310,000) fairly represented the operational requirements to fulfil the organizations mandate for the balance of the 2015 year. 3. Concurrence 3.1 This report has been reviewed by the Director of Community Services, Director of Corporate Services, Director of Operations and Director of Finance who all concur with the recommendations. 3.2 The agreements attached to this Report have been reviewed and approved by the Clarington Older Adult Centre Board. 4. Conclusion 4.1 It is respectfully recommended that Council adopt all of the recommendations contained in this Report in order to effectively implement Council's direction respecting the operation and management of the Beech Centre. 5. Strategic Plan Application Not applicable. Submitted by:—ZL Reviewed b, C. Allison, B. Comm, LL.B Franklin Wu, Municipal Solicitor Chief Administrative Officer Staff Contact: Andrew C. Allison, 905-623-3379 ext. 2013 or aallisongclarin. tog n net Attachments: Attachment 1 - By-law No. 2015-074 Attachment 2 - Transition Agreement Attachment 3 - Municipal Capital Facilities Agreement The following is a list of the interested parties to be notified of Council's decision: Muriel Moynes, President, Clarington Older Adult Centre Board Alan Tibbles, Vice President, Clarington Older Adult Centre Board Angie Darlison, Executive Director, Clarington Older Adult Centre Board Cathie Ward, Past President, Clarington Older Adult Centre Board a Municipality of Clarington Report LGL-009-15 Page 7 Steve Coles, Steering Committee Member John Coffey, Steering Committee Member Julie Michalejko-Earle, Steering Committee Member Audrey Andrews, Manager of Diversity and Immigration, Region of Durham, Steering Committee Member ° Larry Gilks Attachment 1 to Municipality of Clarington Report LGL-009-15 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NO. 2015-074 A by-law to designate the Beech Centre as a municipal capital facility and exempt it from all taxes levied for municipal and school purposes WHEREAS section 110 of the Municipal Act, 2001 permits a municipality to enter into agreements for the provision of municipal capital facilities; AND WHEREAS save and except for the lands described in a lease between The Corporation of the Municipality of Clarington (the "Municipality") and the Bowmanville Tennis Club dated May 11, 2012, the lands known municipally as 26 Beech Avenue, Bowmanville which are legally described as Part 1 on Plan 40R-14445, Municipality of Clarington, Regional Municipality of Durham (the "Beech Centre") is a municipal capital facility from which older adult services and programs have been and will continue to be provided; AND WHEREAS the Municipality has authorized the execution of an agreement with the Bowmanville Older Adult Association ("BOAX) for the continued use of the Beech Centre as a municipal capital facility; AND WHEREAS subsection 110(6) of the Municipal Act, 2001 provides that a municipality may exempt from all or part of the taxes levied for municipal and school purposes land or a portion of it on which municipal capital facilities are located; AND WHEREAS Ontario Regulation 603/06, as amended, specifies the classes of municipal capital facilities that can be exempt from taxation under subsection 110(6) of the Municipal Act, 2001, and the Beech Centre is within a class that qualifies for such exemption; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ENACTS AS FOLLOWS: Designation 1. The Beech Centre is hereby designated as a municipal capital facility (as that term is defined in subsection 2(1) of Ontario Regulation 603/06) effective January 1, 2016 for the purpose of providing older adult services and programs. Tax Exemption 2. The Beech Centre is hereby exempted from taxation in accordance with subsection 110(6) of the Municipal Act, 2001 and paragraph 15 of subsection 2(1) of Ontario i I Municipality of Clarington Report LGL-009-15 Page 9 Regulation 603/01 effective January 1, 2016. i 3. In accordance with clause 5(b) of Ontario Regulation 603/01, Council hereby declares that the Beech Centre shall be used for the purposes of the Municipality as set out in the j Municipal Capital Facilities Agreement between the Municipality and BOAA dated January 1, 2016 and shall be for public use. i Effective Date 4. This by-law comes into force and is effective on January 1, 2016. PASSED this 23rd day of November, 2015. Adrian Foster, Mayor C. Anne Greentree, Municipal Clerk I I I ATTACHMENT NO. 2 LG L-009-15 I TRANSITION AGREEMENT THIS AGREEMENT is dated November 23, 2015 BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (the "Municipality") - and - BOWMANVILLE OLDER ADULT ASOCIATION ("BOAA") RECITALS A. By a Transfer registered on January 5, 1998, the Municipality became the owner of the lands known municipally as 26 Beech Avenue, Bowmanville which are legally described as Part 1 on Plan 40R-14445, Municipality of Clarington, Regional Municipality of Durham (the "Property"). B. The Municipality took title to the Property subject to a lease with the Bowmanville Tennis Club dated January 1, 1998 of the tennis court area (the "Tennis Court Lands"). C. By lease dated October 1, 1998, the Municipality leased the balance of the Property which includes buildings and ancillary parking facilities (the "Centre") to the Clarington Older Adult Association. D. Pursuant to By-law 2011-106 passed on December 5, 2011, Council established the Clarington Older Adult Centre Board (the "Board") as a municipal service board in accordance with section 196 of the Municipal Act, 2001 to operate and manage the Centre. E. By an agreement dated May 11, 2012, the Municipality entered into a new lease with the Bowmanville Tennis Club for the Tennis Court Lands. F. On June 29, 2015, Council considered Report CSD-008-15 and resolved, amongst other matters, to dissolve the Board effective January 1, 2016 and develop a 2 year agreement for the use and operation of the Centre by a registered not-for-profit corporation. G. On November 23, 2015, Council considered Report LGL-009-15 and passed By-law No. 2015-074 which, (a) designated the Centre as a municipal capital facility (as that term is defined in subsection 2(1) of O. Reg. 603/06) effective January 1, 2016; and i Beech Centre Transition Agreement Page 12 (b) exempted the Centre from taxation in accordance with Subsection 110(6) of the Municipal Act, 2001 and paragraph 15 of subsection 2(1) of O. Reg. 603/01 effective January 1, 2016. H. In accordance with O. Reg. 582/06, the Municipality will stand in the place of the Board for all purposes on and after the Effective Date, and all rights, claims, undertakings, obligations, assets and liabilities of the Board shall vest in the Municipality on the Effective Date save and except as set out in this Agreement. NOW THERFORE the Municipality and BOAA agree as follows: PART 1 - INTERPRETATION Definitions 1. In this Agreement, "Agreement" means this Agreement as it may be amended from time to time; "Board" means the Clarington Older Adult Centre Board described in Recital D; "BOAR" means the Bowmanville Older Adult Association, a corporation incorporated under the Canada Not-for-profit Corporations Act, S.C. 2009, c. 23 and includes, where appropriate, its agents, consultants, contractors, employees and those for whom it is in law responsible; "Centre" means the portion of the Property described as such in Recital C and shown in Schedule "A"; "Council" means the Council of the Municipality; "Effective Date" means January 1, 2016; "Municipality" means The Corporation of the Municipality of Clarington including, where appropriate, its agents, consultants, contractors, employees and those for whom it is in law responsible; and "Property" means the property described in Recital A. Extended Meanings 2. In this Agreement, unless otherwise specified, (a) a grammatical variation of a word or expression defined has a corresponding meaning; (b) references to an Act or By-law shall include any amendments to or replacements of such Act or By-law; Beech Centre Transition Agreement Page 1 3 (c) references to Parts, sections and Schedules are references to Parts, sections and Schedules in this Agreement; (d) where reference is made to a consent, waiver, approval, notice, request or other communication, such matters shall be deemed to be qualified by the words "acting reasonably"; and (e) every provision by which BOAA is obligated in any way through the words "BOAA shall" will be deemed to include the words "at its expense" (including the payment of any applicable taxes). 3. The following Schedules are attached to and form part of this Agreement: Schedule "A" Arial Photo of the Property and the Centre Schedule "B" Municipal Capital Facility Agreement PART 2 - TRANSFER OF ASSETS AND LIABILITIES Transfer of Assets 4. As of the Effective Date, the Municipality sells, conveys, assigns and transfers to BOAA, and releases all right, title and interest in, all of the physical or tangible assets used by the Board and located at the Centre on the Effective Date (the "Transferred Assets") including the following: (a) Toyota SIE [5TDZK3DC5BS020462]. (b) Toyota RG4 [2T3ZF4DVXCW155562]. (c) 2008 GMC Van [1GDJG316381124088]. (d) Cash on hand and short-term investments. (e) Receivables. (f) Books, records, mailing lists, advertising and promotional materials, equipment maintenance records, and all other documents (whether in hard copy or electronic form). (g) Computers and related software, websites, office equipment and office supplies. (h) Furniture. (i) Phone system and any other technological equipment. (j) The telephone number 905-697-2856, fax 905-697-0739 and email address coaa(i4bellnet.ca. Beech Centre Transition Agreement Page 14 (k) The internet domain name www.claringtonbeechcentre.ca. (1) All social media accounts, including Facebook, Google Plus, LinkedIn, Twitter and YouTube accounts established by the Board. Consideration 5. All of the Transferred Assets shall be transferred to BOAA for the total purchase price of Two Dollars ($2.00). I Representation and Warranty 6. The Municipality represents and warrants to BOAA that it has good and marketable title to all of the Transferred Assets free and clear of all liens and encumbrances. Sales Taxes 7. Any sales taxes applicable on the sale of the Transferred Assets shall be the responsibility of the Municipality. Reserve Funds 8. The Municipality's existing Older Adults Operating Reserve Fund shall be split with BOAR. Fifty percent (50%) of the amount that is in such fund on the Effective Date shall be paid by the Municipality to BOAA. The remaining fifty percent (50%) shall be redirected to the Municipality's Facilities Maintenance Reserve Fund, which is overseen by the Municipality's Director of Operations, and used to address future capital repairs or improvements at the Centre. The Older Adults Capital Reserve Fund shall be paid out in its entirety to BOAA. As of September 30, 2015, the amounts in such reserves are $69,100 (Operating) and $17,826 (Capital). Assumption of Contracts 9. As of the Effective Date, the Municipality assigns and transfers to BOAA, and BOAA assumes all obligations under, the following contracts, if any, that were entered into with the Board (the "Assumed Contracts"): (a) All employment contracts. (b) All maintenance contracts. (c) All contracts for computers and other equipment (i.e. photocopier). (d) Acorn Landscaping(snow removal). Liabilities 10. Save and except for the Assumed Contracts, BOAA shall not assume any obligation or liability of the Municipality under contract or otherwise. Without limiting the generality Beech Centre Transition Agreement Page 15 of the foregoing, the Memorandum of Understanding between the Municipality and the Board dated June 16, 2009 shall be of no further force or effect. 11. Save and except as set out in the Municipal Capital Facility Agreement (Schedule "B"), the Municipality shall not be responsible for any liability that arises from BOAA's operation of the Centre on or after the Effective Date including any employment-related liabilities. 12. The Municipality shall not be responsible for any liability that arises from the Board's operation of the Centre before the Effective Date, save and except any employment- related liabilities if any Board employee does not accept employment with BOAA (in which case the Municipality shall be responsible for all severance liability under the Employment Standards Act, 2000, S.0. 2000, c. 41). Vehicle Insurance 13. As of the Effective Date, BOAA shall be required to obtain its own vehicle insurance. Budget 14. BOAA shall revise its budget for the 2015 year and prepare a new budget to reflect programming changes that will take place as a result of this Agreement. PART 5 - MISCELLANEOUS Business Registration 15. BOAA shall be required to obtain its own business registration number. EPC Grants 16. The Municipality shall cooperate with BOAA to ensure that nothing in this Agreement prejudices the ability of BOAA to apply for and receive grants under the Elderly Persons Centres Act, R.S.O. 1990, c.E.4 or any other type of government or private sector financial assistance program. Marketing 17. BOAA may advertise or otherwise make public the programming that it intends to deliver after the Effective Date once Council has approved the execution of this Agreement and the execution of the Municipal Capital Facility Agreement (Schedule "B"). 18. All Municipal services currently provided to the Board (e.g. financial and legal) shall continue to be provided to the Board up until the Effective Date. Thereafter only those Municipal services specifically identified in the Municipal Capital Facility Agreement (e.g. repairs and maintenance provided by the Operations Department) shall continue to be provided to BOAR. Beech Centre Transition Agreement Page 16 Dispute Resolution 19. If either party provides the other party with notice of a dispute regarding the interpretation or implementation of this Agreement (a "Dispute"), then the parties shall use their best efforts to settle the Dispute by negotiating with each other in good faith. If the parties are unable to resolve a Dispute, it shall be submitted to mediation by an impartial third party to be agreed upon by the parties to the Dispute. If the parties are unable to resolve the Dispute through mediation, then it shall be referred to arbitration in accordance with the provisions of the Arbitration Act, 1991, S.O. 1991, c.17. Entire Agreement 20. This Agreement and the Municipal Capital Facility Agreement (Schedule "B") constitute the entire agreement between the parties concerning the Centre and may only be amended or supplemented by an agreement in writing signed by both parties. Further Assurances 21. Both parties agree that they shall execute and deliver, at the request of the other party, all such further documents, agreements and instruments, and will do and perform all such acts as may be necessary to give full effect to the intent and meaning of this Agreement. Registration 22. Neither this Agreement nor notice of it shall be registered against title to the Property. Notices 23. All notices, communications and requests for approval which may be or are required to be given under this Agreement shall be in writing and shall be mailed by first class prepaid post, sent by e-mail or delivered: To the Municipality: Municipality of Clarington 40 Temperance Street Bowmanville, ON L 1 C 3A6 Attention: Municipal Clerk Email: clerks�c�clarin Ytai .net To BOAA: Bowmanville Older Adult Association 26 Beech Avenue Bowmanville, ON L 1 C 3A2 Attention: Executive Director Email: exec-director @bellnet.ca. or such other address or number of which either party has notified the other. Any such notice shall be effective from the date that it is so mailed, emailed or delivered. Beech Centre Transition Agreement Page 17 Governing Law 24. This Agreement shall be governed by, and be construed and interpreted in accordance with, the laws of Ontario and the laws of Canada applicable in Ontario. Approvals 25. Wherever an approval or consent is required to be given under this Agreement, the consent or approval shall not be unreasonably withheld, delayed or conditioned, and any withholding of approval or consent shall be accompanied by reasons therefor. The party from whom an approval or consent is required shall, within 30 business days after the request for approval or consent is received, advise in writing the party requesting such approval or consent that it consents or approves, or that it withholds its consent or approval. Assignment 26. The BOAA shall not assign this Agreement without the consent of the Municipality. Successors and Assigns 27. This Agreement shall extend, be binding upon and enure to the benefit of the parties, their respective successors and permitted assigns. Covenants 28. Each obligation in this Agreement, even though not expressed as a covenant, is considered for all purposes to be a covenant. Each covenant is a separate and independent covenant and a breach of covenant by any party shall not relieve the other parties from their obligations to perform each of their covenants, except as otherwise provided in this Agreement. Severability 29. The invalidity or unenforceability of any provision in this Agreement shall affect the validity or enforceability of such provision only and any such invalid provision shall be deemed to be severable from the balance of this Agreement. IN WITNESS WHEREOF the Municipality and BOAA have executed this Agreement. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Mayor Adrian Foster Anne Greentree, Municipal Clerk Beech Centre Transition Agreement Page IS BOWMANVILLE OLDER ADULT ASSOCIATION Muriel Moynes, President Alan Tibbles, Vice-President I a i Beech Centre Transition Agreement Page 19 SCHEDULE "A" ARIAL PHOTO OF THE PROPERTY AND THE CENTRE I i I 694 p90- s4�84 X48 pr44° _ 74 _ ` ` 1 1 +, o , e CONCESSION STREET WEST 69 0 67 59 40 a O 39 1. y Ar 63 72a T 3 9 - 65 .. Oj 36 , e. 29 64 21 p 23 fit, r O 29 u O - 58 XA 15 ' MEY - s - I a 20 s, O 8 15 �I ♦ 9 ( 42t>, r 8 -- 30 26' 24 �- • 72 °;. LOWE STIR f - 78 tp i Beech Centre Transition Agreement Page 10 SCHEDULE "B" MUNICIPAL CAPITAL FACILITY AGREEMENT I I ATTACHMENT NO. 3 LG L-009-15 MUNICIPAL CAPITAL FACILITY AGREEMENT THIS AGREEMENT is dated as of January 1, 2016 BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (the "Municipality") -and- BOWMANVILLE OLDER ADULT ASSOCIATION ("BOAA") RECITALS A. The Municipality owns the lands known municipally as 26 Beech Avenue, Bowmanville which are legally described as Part 1 on Plan 40R-14445, Municipality of Clarington, Regional Municipality of Durham (the "Property"). B. By an agreement dated May 11, 2012, the Municipality leased a portion of the Property to the Bowmanville Tennis Club. C. In accordance with subsection 110(2) of the Municipal Act, 2001, the Municipality and BOAA wish to enter into an agreement to allow for the lease, operation and maintenance of the balance of the Property which includes buildings and ancillary parking facilities (the "Centre") as a municipal capital facility. D. On November 23, 2015, Council considered Report LGL-009-15 and passed By-law No. 2015-074 which designated the Centre as a municipal capital facility and exempted the Centre from taxation. NOW THERFORE the Municipality and BOAA agree as follows: PART 1 - INTERPRETATION Definitions 1. In this Agreement, "Agreement" means this Agreement as it may be amended from time to time; "BOAA" means the Bowmanville Older Adult Association, a corporation incorporated under the Canada Not-for-profit Corporations Act, S.C. 2009, c. 23 and includes, where appropriate, its agents, consultants, contractors, employees and those for whom it is in law responsible; Beech Centre Agreement Page ( 2 "Centre" means the portion of the Property described as such in Recital C and shown in Schedule "A"; "Commencement Date" means January 1; 2016; "Council" means the Council of the Municipality; "Municipality" means The Corporation of the Municipality of Clarington including, where appropriate, its agents, consultants, contractors, employees and those for whom it is in law responsible; "older adult" means a person 55 years of age or older; "Property" means the property described in Recital A; and "Term" means the term of this Agreement as set out in section 11. Extended Meanings 2. In this Agreement, unless otherwise specified, (a) a grammatical variation of a word or expression defined has a corresponding meaning; (b) references to an Act or By-law shall include any amendments to or replacements of such Act or By-law; (c) references to Parts, sections and Schedules are references to Parts, sections and Schedules in this Agreement; (d) where reference is made to a consent, waiver, approval, notice, request or other communication, such matters shall be deemed to be qualified by the words "acting reasonably"; and (e) every provision by which BOAA is obligated in any way through the words "BOAA shall" will be deemed to include the words "at its expense" (including the payment of any applicable taxes). Schedule 3. Schedule "A" (Arial Photo of the Property and the Centre) is attached to and forms part of this Agreement. PART 2 - GRANT AND USE I Grant 4. In consideration of the performance by BOAA of its obligations under this Agreement, Beech Centre Agreement Page 13 the Municipality leases to BOAA the Centre for the Term and agrees to observe and perform all of the covenants to be observed and performed by the Municipality under this Agreement. In consideration of the performance by the Municipality of its obligations under this Agreement, BOAA takes the Centre on lease from the Municipality and agrees to observe and perform all covenants to be observed and performed by BOAA under this Agreement. Use of Centre 5. Subject to the restrictions set out in Part 4 (Programming), the Centre may be used by BOAA for such purposes as in its judgment are consistent with the purposes for which it was incorporated which, for ease of reference, are described as follows in BOAA's Articles of Incorporation: The purposes of Bowmanville Older Adult Association are to relieve loneliness and isolation of the aged and to improve their mobility and fitness by establishing, operating and maintaining a senior citizens'centre that will provide recreation, education, cultural activities and other programs for senior citizens. 6. The Municipality acknowledges that BOAA is permitted to allow individuals and organizations to use the Centre on a limited basis in the same manner as members of the public are entitled to use portions of the Municipality's other community centres. 7. BOAA shall not be permitted to allow any person to use any portion of the Centre for any period of time for any commercial activity if such use will alter the tax exempt status of the Centre. Without limiting the generality of the foregoing, auctions shall not be permitted. Silent auctions that are part of a not-for-profit event shall be'permitted. 8. The Centre shall be used only-for the purposes set out in sections 5 and 6 and for no other purpose without the consent of the Municipality. Nuisance 9. BOAA shall not carry on any activity or do or suffer any act or thing that constitutes a nuisance or which is offensive or an annoyance to the owners or tenants of properties surrounding the Centre. Assignment and Subletting 10. In order to ensure compliance with subsection 110(6)(c) of the Municipal Act, 2001, BOAA shall not assign, sublet or otherwise allow any person to occupy or use any portion of the Centre except as permitted by this Part without the consent of the Municipality. i Beech Centre Agreement Page 14 PART 3 - TERM AND RENT Term 11. The term of this Agreement shall be 2 years commencing on the Commencement Date and terminating on December 31, 2017. The Term shall be automatically extended for further periods of one year unless otherwise terminated. Termination 12. This Agreement may be terminated by either party upon 1 year's notice. Upon termination of this Agreement, the Centre shall be deemed to no longer be a municipal capital facility. I Overholding 13. If BOAA remains in possession of the Centre after the expiry or earlier termination of the Term, there shall be no tacit renewal of this Agreement or the Term, notwithstanding statutory provisions or legal presumption to the contrary, and BOAA shall be deemed to be occupying the Centre as a tenant from month to month upon the same terms, covenants and conditions as are set forth in this Agreement insofar as they are applicable to a monthly tenancy. Rent 14. BOAA shall pay to the Municipality as rent for the entire Term in lawful money of Canada the nominal amount of Two Dollars ($2.00). Utilities 15. BOAA shall pay or cause to be paid all charges for water, gas, electricity, light, heat or power, telephone, internet, cable or other communication service used, rendered or supplied upon or in connection with the Centre throughout the Term. Taxes 16. The parties agree that because the Centre has been designated by the Municipality as a municipal capital facility, the Centre is exempt from taxes levied for municipal and school board purposes. I Beech Centre Agreement Page 15 PART 4 - PROGRAMMING Age 17. Consistent with its Articles of Incorporation, all programs, services and activities that are planned, organized or administered by BOAA shall be restricted to older adults and current members who are under 55 years of age. Non-Competition 18. BOAA shall not provide any programs or services outside of the Centre that will compete with programs or services provided directly by the Municipality to older adults. 19. Subject to section 20, BOAA shall be permitted to provide its programs or services, (a) from any location within the geographic boundaries of the Bowmanville urban area; (b) from any location outside the geographic boundaries of the Bowmanville urban area if the program or service requires specialized facility space (e.g. golf and bowling); (c) from any location outside the geographic boundaries of the Bowmanville urban area for one time special events; and (d) from any parks, trails, forests or other outdoor areas wherever they are located. 20. BOAA shall not be permitted to provide any programs or services within any indoor recreational facilities owned or operated by the Municipality. 21. Subject to the restrictions contained in this Part and in Part 2 (Grant and Use), BOAA may, (a) fix the hours when the Centre will be open to the public; (b) establish rates, fees or charges for admission to, or use of, the Centre; and (c) adopt policies or rules for the use of portions of the Centre. 22. BOAA shall have access to the Clarington Recreation & Leisure Guide on the same basis as other community service groups. The Community Services Department shall have access to BOAA's noticeboards to advertise its own programs and services for older adults. i i B Beech Centre Agreement Page ( 6 PART 5 - MAINTENANCE AND REPAIRS BOAA Responsibilities 23. Subject to section 25, BOAA shall be responsible for such day-to-day repair and maintenance of the Centre as are proper or necessary to keep the Centre clean and in good condition. This responsibility shall include custodial care. 24. BOAA shall not alter any physical component of the Centre's buildings or grounds without approval from the Municipality. Municipal Responsibilities 25. The Municipality shall be responsible for all repairs and maintenance to the Centre's structure including its mechanical systems and elevator. 26. The Operations Department of the Municipality shall assign a representative who will act as a staff liaison to BOAA to respond to building maintenance and repair issues. As the Municipal liaison, this individual shall attend BOAA Board meetings as a non-voting resource person when requested. Heritage 27. Any repairs or maintenance work undertaken at the Centre, whether structural or otherwise, shall be undertaken in a manner that reflects its heritage features and its inclusion in a heritage conservation district under Municipal By-Law No. 2006-102. PART 6 - INSURANCE AND INDEMNITY Director's Liability Insurance 28. BOAA shall be required to obtain its own director's liability insurance. Contents Insurance 29. The Municipality shall take out and maintain insurance for the Property and BOAA's contents which are located in the Centre. On or before March 31 in each year, BOAA shall provide the Municipality with a list of its contents for such purpose. CGL Insurance 30. BOAA shall take out and maintain commercial general liability insurance pertaining to BOAA's liability to others in respect of injury, death or damage to property occurring upon, in or about the Centre, such insurance to be of an amount which is reasonable and sufficient having regard to the scope of the risk and the current practice of prudent owners of similar Centre for the carrying on of similar businesses, but in any event in an amount not less than three million dollars ($3,000,000.00) for claims arising out of one occurrence. Such policy shall also name the Municipality as an additional insured and Beech Centre Agreement Page ( 7 may not be cancelled unless prior notice by registered letter has been given to the Municipality by the insurer 30 days in advance of the expiry date. 31. If requested, BOAA shall file with the Municipality a Certificate of Insurance in a form satisfactory to the Municipality's Director of Finance, verifying that the insurance `required by this Agreement is in effect and setting out the essential terms and conditions of the insurance. 32. The provision of the insurance required by this Agreement shall not relieve BOAA from liability for claims not covered by the policy or which exceed its limits, if any, for which BOAA may be held responsible. Insurance Risks 33. BOAA shall not do, omit to do, or permit to be done or omitted to be done upon the Centre anything that may contravene or be prohibited by any of the Municipality's insurance policies in force from time to time covering or relevant to any part of the Centre or which would prevent the Municipality from procuring its policies with companies acceptable to the Municipality. If the occupancy of the Centre, the conduct of activity in the Centre or any acts or omissions of BOAA at the Centre causes or results in any increase in premiums for any of the Municipality's insurance policies, BOAA shall pay such increase to the Municipality. Indemnification 34. Each of the Municipality and BOAA shall indemnify and save harmless the other from and against any and all actions, losses, damages, claims, costs and expenses (including solicitors' fees on a solicitor and client basis) to which the party being indemnified shall or may become liable by reason of any breach, violation or non-performance by the party so indemnifying of any covenant, term or provision of this Agreement or by reason of any damage, injury or death occasioned to or suffered by any person or persons including the Municipality or BOAA, as the case may be, or any property by reason of any wrongful act, neglect or default on the part of the party so indemnifying or any of those persons for whom it is in law responsible. For greater certainty, the limitation of liability set out above in this section does not extend to claims, losses or damages resulting in whole or in part from the gross negligence or wilful misconduct of the party claiming indemnification, its employees or those for whom it is in law responsible. PART 7 - REMEDIES Municipality's Right to Remedy Default 35. In addition to all other remedies the Municipality may have under this Agreement and in law, if BOAA is in default of any of its obligations under this Agreement, and such default has continued for a period of 30 days after receipt of notice by BOAA (or such longer period as may be reasonably required in the circumstances to cure such default, except in an emergency where the Municipality will not be required to give notice), the i Beech Centre Agreement Page 18 Municipality, without prejudice to any other rights which it may have with respect to such default, may remedy such default and BOAA shall be responsible for all such costs. Waiver 36. No condoning, excusing or overlooking by the Municipality of any default, breach or non-observance by BOAA at any time or times in respect of any covenant, obligation or agreement under this Agreement shall operate as a waiver of the Municipality's rights hereunder in respect of any continuing or subsequent default, breach or non-observance, or so as to defeat or affect in any way the rights of the Municipality in respect of any such continuing or subsequent default or breach, and no waiver shall be inferred from or implied by anything done or omitted by BOAA save only an express waiver in writing. PART 8 - MISCELLANEOUS Quiet Enjoyment 37. The Municipality shall permit BOAA to peaceably possess and enjoy the Centre during the Tenn without any interference from the Municipality, or any person lawfully claiming by, from or under the.Municipality provided BOAA is not in default. Right of Entry 38. BOAA agrees to permit the Municipality to enter the Centre during normal business hours for the purpose of inspecting the same, and BOAA shall arrange for such entry at a time convenient to both parties. The Municipality shall use its best efforts to minimize the disruption to BOAA's operations during any such entry. Signs 39. BOAA may only erect signs at the Centre with the Municipality's approval. All such signs shall be removed from the Centre at the end of the Term. Compliance with Laws 40. BOAA shall comply with all legal requirements (including statutes, laws, by-laws, regulations, ordinances, orders, rules and regulations of every governmental authority having jurisdiction) that relate to its use or occupation of the Centre. Agreements 41. BOAA may enter into agreements for normal operating or administrative matters respecting the Centre provided such agreements are consistent with the terms of this Agreement. Without limiting the generality of the foregoing, the Municipality acknowledges that BOAA shall be permitted to contract with the Lions Club of Bowmanville for the provision of services to AGCO licensed events within the Centre. I i Beech Centre Agreement Page 19 Bulk Purchasing 42. To the extent possible, the Municipality shall allow BOAA to participate in the bulk purchase of any insurance, utilities, goods or other services. Grant Requests j 43. On or before November 1st in each year, BOAA may prepare and submit for Council'8 consideration a grant request for the ensuing calendar year. Such requests shall include financial statements from BOAA's previous fiscal year and current unaudited financial statements. 44. If requested by the Municipality, as part of the review of any grant all minutes, books, records, documents, transactions, accounts and vouchers of BOAA related to the grant shall be open to the Municipality for inspection. Entire Agreement 45. This Agreement and the Transition Agreement between BOAA and the Municipality dated September 21, 2015 constitute the entire agreement between the parties concerning the Centre and may only be amended or supplemented by an agreement in writing signed by both parties. Further Assurances 46. Both parties agree that they shall execute and deliver, at the request of the other party, all such further documents, agreements and instruments, and will do and perform all such acts as may be necessary to give full effect to the intent and meaning of this Agreement. Registration 47. Neither this Agreement nor notice of it shall be registered against title to the Property. Notices 48. All notices, communications and requests for approval which may be or are required to be given under this Agreement shall be in writing and shall be mailed by first class prepaid post, sent by e-mail or delivered: To the Municipality: Municipality of Clarington 40 Temperance Street Bowmanville, ON L 1 C 3A6 Attention: Municipal Clerk Email: clerks L&larin gto�, n.net To BOAA: Bowmanville Older Adult Association 26 Beech Avenue Bowmanville, ON L1C 3A2 I Beech Centre Agreement Page 110 Attention: Executive Director Email: exec-director(t-i),bellnet.ca or such other address or number of which either party has notified the other. Any such notice shall be effective from the date that it is so mailed, emailed or delivered. Governing Law 49. This Agreement shall be governed by, and be construed and interpreted in accordance with, the laws of Ontario and the laws of Canada applicable in Ontario. Approvals 50. Wherever an approval or consent is required to be given under this Agreement, the consent or approval shall not be unreasonably withheld, delayed or conditioned, and any withholding of approval or consent shall be accompanied by reasons therefor. The party from whom an approval or consent is required shall, within 30 business days after the request for approval or consent is received, advise in writing the party requesting such approval or consent that it consents or approves, or that it withholds its consent or approval. Successors and Assigns 51. This Agreement shall extend, be binding upon and enure to the benefit of the parties, their respective successors and permitted assigns. Covenants 52. Each obligation in this Agreement, even though not expressed as a covenant, is considered for all purposes to be a covenant. Each covenant is a separate and independent covenant and a breach of covenant by any party shall not relieve the other parties from their obligations to perform each of their covenants, except as otherwise provided in this Agreement. Severability 53. The invalidity or unenforceability of any provision in this Agreement shall affect the validity or enforceability of such provision only and any such invalid provision shall be deemed to be severable from the balance of this Agreement. i Beech Centre Agreement Page 111 IN WITNESS WHEREOF the Municipality and BOAA have executed this Agreement. S THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Mayor Adrian Foster Anne Greentree, Municipal Clerk BOWMANVILLE OLDER ADULT ASSOCIATION Muriel Moynes, President Alan Tibbles, Vice-President I I i Beech Centre Agreement Page 12 SCHEDULE "A" ARIAL PHOTO OF THE PROPERTY AND THE CENTRE 694 p90- s4�84 X48 pr44° _ 74 _ ` ` 1 1 +, o , e CONCESSION STREET WEST 69 0 67 59 40 a O 39 1. y Ar 63 72a T 3 9 - 65 .. Oj 36 , e. 29 64 21 p 23 fit, r O 29 u O - 58 XA 15 ' MEY - s - I a 20 s, O 8 15 �I ♦ 9 ( 42t>, r 8 -- 30 26' 24 �- • 72 °;. LOWE STIR f - 78 tp i