regular session council - 14 sep 2021 - agenda - pdf

TOWN OF GREATER NAPANEE REGULAR SESSION OF COUNCIL

A G E N D A

SEPTEMBER 14, 2021 at 7:00 p.m.

Selby Community Hall, 114 Pleasant Drive, Selby, ON

. CALL TO ORDER

This meeting is live streamed on the Town's YouTube Channel. To access, please copy the link below into your browser: https://www.youtube.com/channel/UCmNkxvT9f0mEpxBZrZiqS4A?view_as=subscriber.

2. ADOPTION OF AGENDA

2.1 Adopt Agenda

Recommendation: That the Agenda of the Regular Session of Council dated September 14, 2021 be adopted as presented.

3. DISCLOSURE OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF

4. PRESENTATIONS

6 - 23 4.1 Presentation by Town of Greater Napanee Integrity Commissioner, Laura Dean Final IC Report – MCA 2021-01

24 - 62 4.2

Independent Auditors Report

5. DEPUTATIONS

63 - 71 5.1

Liz Cook - Lennox and Addington Seniors Outreach Services presentation regarding Town funding.

Recommendation: That Council note and receive for information.

6. ADOPTION OF MINUTES

72 - 81 6.1 Regular Session of Council - August 17, 2021

Recommendation: That the minutes of the Regular Session of Council dated August 17, 2021 be adopted as presented.

7. CORRESPONDENCE

7.1. Correspondence for Information

82 7.1.1 Correspondence for Information items dated September 14, 2021

Recommendation: That the Correspondence for Information items dated September 14, 2021 be received.

7.2. Correspondence for Action

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REGULAR SESSION COUNCIL - September 14, 2021 Agenda

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83 - 84 7.2.1 Recognition of September 30th as National Day for Truth and

Reconciliation

Recommendation: WHEREAS the Truth and Reconciliation Commission released its final report on June 2, 2015, which included 94 Calls to Action to redress the legacy of residential schools and advance the process of Canadian reconciliation; AND WHEREAS the recent discoveries of remains and unmarked graves across Canada have led to increased calls for all levels of government to address the recommendations in the TRC’s Calls to Action; AND WHEREAS all Canadians and all orders of government have a role to play in reconciliation; AND WHEREAS Recommendation #80 of the Truth and Reconciliation Commission called upon the federal government, in collaboration with Aboriginal peoples, to establish, as a statutory holiday, a National Day for Truth and Reconciliation to ensure that public commemoration of the history and legacy of residential schools remains a vital component of the reconciliation process; AND WHEREAS the Federal Government has announced September 30th, 2021, as the first National Day for Truth and Reconciliation (National Orange Shirt Day) and a statutory holiday; THEREFORE, BE IT RESOLVED THAT the Council of the Town of Greater Napanee does hereby commit to recognizing September 30th, 2021, as the National Day for Truth and Reconciliation (National Orange Shirt Day) by sharing the stories of residential school survivors, their families, and communities

85 7.2.2 Proclamation of Legion Week- September 19-25, 2021

Recommendation: That Council receive for information the correspondence from the Royal Canadian Legion dated August 19, 2021; And That, Council declare Legion Week in Greater Napanee to be the week of September 19 - 25, 2021

86 - 88 7.2.3 Proclamation of Canadian Autism Awareness Month- October 1-31, 2021

Recommendation: That Council receive for information the correspondence from the Autism Network LAC - LACAN received September 7, 2021; And That, Council direct staff the following in regards to the "Light it up Blue" initiatives.

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• Strathcona Paper Centre signage – Autism Awareness Month support,

• Spring Side Park waterfall light set to blue for the month of October,

• Banners to be displayed in Spring-side park to compliment the blue lights on the falls.

And That, Council declare the month of October 2021 in Greater Napanee to be Canadian Autism Awareness Month.

8. UNFINISHED BUSINESS

89 - 90 8.1 Education Development Charges

9. COMMITTEE REPORTS

91 - 92 9.1 Municipal Heritage Committee - July 22, 2021

Recommendation: That Council receive and adopt the minutes of the Municipal Heritage Committee dated July 22, 2021.

10. STAFF REPORTS

93 - 94 10.1 Infrastructure Services- Great Lakes St. Lawrence Cities Initiative – Annual General Meeting

Staff Recommendation: That Council receive for information the Infrastructure Services- Great Lakes St. Lawrence Cities Initiative- Annual General Meeting Report.

95 - 97 10.2 Infrastructure Services – Purchasing of Winter Sand and Screenings for the 2021/2022 Winter Season

Staff Recommendation: That Council receive for information the Infrastructure Services – Purchasing of Winter Sand and Screenings for the 2021/2022 winter season report; And further that Council accepts the Request for Proposals process undertaken by municipal staff, as having met the goals and principles of the municipal procurement policies forming part of Town of Greater Napanee By-Law #05-05, as amended; And further that Council accepts the lowest delivered bid of winter sand material to Hay Bay Sand & Gravel for the Napanee Public Works yard (8321 County Road 2) and the Selby Public Works yard (1599 County Road 41). And further that Council accepts the lowest delivered bid of limestone screenings to Morven Construction for the Napanee Public Works yard (8321 County Road 2) and the Selby Public Works yard (1599 County Road 41).

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And further that Council accepts that the quantities and total cost may vary due to weather conditions during winter operations, until March 31 2021.

98 - 102 10.3 Development Services – PLZACO 2021 044, 199 Richmond Boulevard Re zoning Report

Staff Recommendation: That Council receive for information the Development Services – PLZACO 2021 044, 199 Richmond Boulevard Re-zoning report; And further that Council approve the zoning by-law amendment subject to the following conditions: 1. That Council consider and decide on the merits of written and verbal submissions received up to and including the Council meeting; 2. That should new information be received, or further input received raise points for further consideration, this report and opinion herein be revisited as needed.

103 - 105 10.4 Financial Services - Budget Schedule Report

Staff Recommendation: That Council receive for information the 2022 Budget Meeting Schedule report: And further, That Council approve the 2022 Budget Meeting Schedule as presented.

106 - 119 10.5 Financial Services - FCM Successful Grant Application

Staff Recommendation: That Council receive for information the FCM Successful Grant Application report; And further, That Council authorize the Mayor and General Manager Financial Services/Treasurer to sign the Contribution Agreement; And further, That a By-Law is prepared once the CA has been signed; And further, That Council Authorize the General Manager Financial Services/Treasurer to single source the Asset Management work authorized through the grant to Public Sector Digest in order to meet the July 01, 2022 legislative requirements through O. Reg. 588/17.

120 - 191 10.6 Financial Services - Draft Purchasing Policy

Staff Recommendation: That Council receive for information the Draft Purchasing Policy report; And further, That Council approve the updated Purchasing Policy and that a By-Law be prepared for September 28, 2021.

192 - 214 10.7

Infrastructure Services – AMS Services Agreement

Staff Recommendation: That Council receive for information the Infrastructure Services – Automotive Materials Stewardship (AMS) Services Agreement; And further, That Council endorses the Municipal & First Nations Automotive Materials Services Agreement and authorizes the Mayor and Clerk to execute the said agreement on behalf of the Town.

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11. BY-LAWS

215 - 219 11.1 2021-0042 Being a Zoning By-law Amendment to By-law 02-22

220 11.2 2021-0043 A By-law to Repeal By-law 2021-0037 (A By-law to Appoint

an Acting Clerk)

221 11.3 2021-0044 A Bylaw to Appoint a Clerk

12. NEW BUSINESS

13. NOTICE OF MOTIONS

14. STATEMENTS BY MEMBERS

15. CLOSED SESSION

15.1 Adjourn to Closed Session pursuant to Section 239 of the Municipal Act in order to discuss information explicitly supplied in confidence to the municipality.

Recommendation: That Council resolve itself into closed session in order to discuss information explicitly supplied in confidence to the municipality.

15.2 Rise and Report from Closed Session

That Council rise and report from closed session; and further that all recommendations made within closed session be hereby adopted, namely that:

16. CONFIRM PROCEEDINGS

222 16.1 A By-law to Confirm the Proceedings of the Council of the Corporation of the Town of Greater Napanee

17. ADJOURNMENT

17.1 adjourn meeting

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Laura Dean Direct: 416.865.7706

E-mail:[email protected]

INTEGRITY COMMISSIONER REPORT

MCIA APPLICATION 2021-01

THE CORPORATION OF THE TOWN OF GREATER NAPANEE

Laura Dean

Aird and Berlis LLP

August 24, 2021

Presentation by Town of Greater Napanee Integrity Commissioner, Laura De... of 222

August 24, 2021 MCIA Application 2021-01 Page 2

Laura Dean Direct: 416.865.7706

E-mail: [email protected]

INTEGRITY COMMISSIONER REPORT ON

MCIA APPLICATION 2021-01

MAYOR MARG ISBESTER

A. INTRODUCTION

Aird & Berlis LLP is the Integrity Commissioner for the Corporation of the Town of Greater Napanee (the “Town”).

A formal application pursuant to subsection 223.4.1(2) of the Municipal Act, 20011 was filed directly with our office on March 1, 2021 (the “Application”). The Application requested that an inquiry be carried out concerning alleged contraventions of the MCIA by a member of the Town Council.

In particular, the Application alleges that Mayor Marg Isbester (the “Mayor”) contravened sections 5, 5.1 and 5.2 of the MCIA in respect of certain alleged activities related to a 16-acre property located in the Town formerly known as Heritage Park Subdivision (“Heritage Park”).2

The Application specifically alleges that the Mayor:

(a) attempted to influence Town staff and others in decisions on the marketing of Heritage Park in such a way that a developer with ties to the Mayor’s son would have an advantage in acquiring said property, and knowing that her son stood to gain a pecuniary benefit (direct or indirect) from the sale and development of Heritage Park as a residential subdivision, contrary to section 5.2 of the MCIA;

(b) attempted to influence Town staff, Council members and others in decisions on the sale of Heritage Park and on its development as a residential subdivision knowing that her son had an interest (direct or indirect) in a 4 acre parcel of land adjacent to Heritage Park and in a second 7 acre parcel of land across Camden Road from Heritage Park and stood to gain a pecuniary benefit (direct or indirect) from the sale and development of Heritage Park as a residential subdivision, contrary to section 5.2 of the MCIA;

(c) failed to disclose a pecuniary interest in the sale and development of Heritage Park and voted on questions in respect of these matters contrary to section 5 of the MCIA; and

(d) failed to disclose her interest in Heritage Park and the general nature thereof by filing a declaration with the Clerk, contrary to section 5.1 of the MCIA.

1 S.O. 2001, c. 25.

2 R.S.O. 1990, c. M.50 (the “MCIA”).



Subsection 223.4.1(15) of the Municipal Act, 2001 provides that upon completion of an inquiry, the Integrity Commissioner may, if he or she considers it appropriate, apply to a judge under section 8 of the MCIA for a determination as to whether a member has contravened the MCIA.

This report contains our decision regarding our inquiry into the Application issued pursuant to Sections 11 and 12 of the Complaint Protocol and subsection 223.4.1(17) of the Municipal Act, 2001.

Subsubsection 223.4.1(17) Municipal Act, 2001 provides that the Integrity Commissioner shall publish written reasons for the decision. It is our view that this requirement is met by the inclusion of this Report in the agenda materials for an open meeting of Council.

B. APPOINTMENT & AUTHORITY

Aird & Berlis LLP was appointed as Integrity Commissioner for the Town pursuant to subsection 223.3(1) of the Municipal Act, 2001 on January 22, 2019 by By-law 2019-0006. Aird & Berlis was reappointed as Integrity Commissioner on October 27, 2020 by Council Resolution 542/20.

We have reviewed the Application in accordance with our authority as Integrity Commissioner pursuant to the Town’s Complaint Protocol, being Appendix “B” to the Town’s Code of Conduct for Members of Council & Local Boards (the “Code of Conduct”), and the provisions of the Municipal Act, 2001.

C. TIMELINESS OF THE APPLICATION

Pursuant to subsection 223.4.1(4) of the Municipal Act, 2001, an application to the Integrity Commissioner for an inquiry to be carried out concerning an alleged contravention of the MCIA may only be made within six (6) weeks after the applicant became aware of the alleged contravention. The strict time limit is meant to protect elected officials and ensure that applications are brought forward on a timely basis.3

In this case, the Application was brought more than six weeks after the impugned conduct. The statutory declaration accompanying the Application, however, stated that the Applicant became aware of the Mayor’s alleged contraventions within the applicable six-week limitation period.

Specifically, the statutory declaration states that it was not until January 26, 2021 that the Applicant’s suspicions regarding improper influence by the Mayor in the sale and marketing of Heritage Park were confirmed. According to the Applicant, such confirmation was reached at the January 26, 2021 meeting of Council when it was revealed that a local developer who had previously worked closely with the Mayor’s son, had been contacting the Mayor to inquire regarding the sale of Heritage Park.

With respect to the Applicant’s allegation that the Mayor contravened the MCIA by participating in and voting on matters regarding the sale and development of Heritage Park, the Applicant claims that it was not until January 24, 2021, through discussions with the owner of property abutting Heritage Park, that the Applicant became aware that the Mayor’s son, through a numbered company, owned the 7-acre parcel across Camden Road to the west of Heritage Park.

3 Hervey v. Morris, 2013 ONSC 956, 9 M.P.L.R. (5th) 96 (Ont. S. C.J.).



The Applicant admits that he was well aware that the Mayor’s son, through a numbered company, owned the 4-acre parcel of land abutting Heritage Park to the north, however, the Applicant believed the property had been abandoned. The Applicant states that it was not until January 24, 2021, through discussions with the same abutting landowner, that he learned the Mayor’s son had not abandoned the 4-acre parcel of property.

Pursuant to the case law, once an applicant has explained when he or she acquired knowledge of the facts of the alleged contravention of the MCIA then the onus shifts to the respondent to prove on a balance of probabilities that the Applicant had actual or constructive knowledge at an earlier time, thus making the application untimely.4

The Mayor’s responding submissions provide clear evidence that the Applicant was aware of the Mayor’s involvement in matters related to Heritage Park and that the Applicant held suspicions of certain impropriety well in advance of the six-week period before the Application was filed. The Mayor’s submissions point to various Facebook posts authored by the Applicant which are critical of Council’s actions in relation to Heritage Park and other Town matters. In our view, however, these submissions do not establish on a balance of probabilities that the Applicant had actual or constructive knowledge of a conflict of interest as such conflict relates to Heritage Park, prior to January 26, 2021 and January 24, 2021, the dates relied upon by the Applicant.

Based on the above, we accept that the Application was brought within the relevant limitation period set out in subsection 8(2) of the MCIA.

D. MCIA PROVISIONS AT ISSUE

The Application alleges that the Councillor contravened the following provisions of the MCIA:

When present at meeting at which matter considered

5 (1) Where a member, either on his or her own behalf or while acting for, by, with or through another, has any pecuniary interest, direct or indirect, in any matter and is present at a meeting of the council or local board at which the matter is the subject of consideration, the member,

(a) shall, prior to any consideration of the matter at the meeting, disclose the interest and the general nature thereof;

(b) shall not take part in the discussion of, or vote on any question in respect of the matter; and

(c) shall not attempt in any way whether before, during or after the meeting to influence the voting on any such question.

…

Written statement re disclosure

5.1 At a meeting at which a member discloses an interest under section 5, or as soon as possible afterwards, the member shall file a written statement of the interest and its general nature with the clerk of the municipality or the secretary of the committee or local board, as the case may be.

4 MacDonald v. Ford, 2015 ONSC 4783, 41 M.P.L.R. (5th) 175 (Ont. S.C.J.).



…

Influence

5.2 (1) Where a member, either on his or her own behalf or while acting for, by, with or through another, has any pecuniary interest, direct or indirect, in any matter that is being considered by an officer or employee of the municipality or local board, or by a person or body to which the municipality or local board has delegated a power or duty, the member shall not use his or her office in any way to attempt to influence any decision or recommendation that results from consideration of the matter.

Other provisions of the MCIA have been considered and will be referred to in this Report but the aforementioned three provisions are all alleged to have been contravened.

E. REVIEW OF MATERIALS & INQUIRY

In order to undertake our inquiry into the Application we have undertaken the following steps:

Review of the Application and all accompanying materials;

Review of the Mayor’s response, dated April 13, 2021, including a sworn affidavit dated April 14, 2021;

Review of reply submissions of the Applicant, dated April 22, 2021;

Review of the Mayor’s sur-reply, dated May 3, 2021;

Review of relevant Council materials, including agendas, open and closed meeting minutes, staff reports, and advertisements;

Review of Town and third party planning reports related to the development of Heritage Park; and

Conducted telephone interviews with relevant Town staff.

We have also reviewed, considered and had recourse to such applicable case law and secondary source material, including other Integrity Commissioner reports, that we believed to be pertinent to the issues at hand.

F. BACKGROUND (a) Mayor Isbester

The Mayor was first elected as head of Council for the Town on December 4, 2018. She had previously been the Town’s Deputy Mayor from 2014 to 2018. Before that she held the position of Ward 3 Councillor from 2000 to 2014. Accordingly, the Mayor is a long-standing and experienced member of Council.



(b) Andrew Isbester

Andrew Isbester (the “Mayor’s Son”), is a builder, landlord and property developer with property interests throughout the Town.

The Mayor’s Son is a Director of two separate numbered companies, 1745158 Ontario Limited and 1652472 Ontario Inc. which own the following properties, respectively:

a 7-acre parcel of property located across Camden Road to the west of Heritage Park; and

391 Camden Road, a 4-acre parcel of vacant land abutting Heritage Park to the north.

The parcel register map below sets out the approximate boundaries of these properties and their relation to Heritage Park.

The evidence demonstrates that the Mayor’s Son has had previous business dealings, involving the sale and development of land, with a local developer (the “Local Developer”) who demonstrated an interest in acquiring Heritage Park.



(c) Heritage Park

Heritage Park is a property comprising approximately 16 acres located in the Town and bordered by Heritage Park Drive, Camden Road, Ginger Street, Church Street and Newburgh Road.5 The property is situated in an area that predominantly consists of residential, commercial and vacant land uses. The property slopes from north to south and drainage on the lands is from the north to the southeast. There is an existing watercourse which runs through the southern limits of the property.

(d) Sale of Heritage Park

On September 11, 2018, Council adopted Resolution 372/18 to declare specific properties within the Town that had gone through the tax sale process and vested with the Town to be surplus to the Town’s needs and to be advertised for sale. Heritage Park was among a number of other properties to be declared surplus on September 11, 2018.

On May 2, 9 and 23, 2019, advertisements were placed in the Napanee Beaver newspaper advertising the sale of Heritage Park by public tender. It is our understanding that the tender was also advertised on the Town’s website as well as the private social media of a local real estate association. Tenders were to be submitted to the Town prior to May 24, 2019.

On May 22, 2019, the Local Developer requested an extension from the Town to receive clarification on his questions certain clauses of the tender. After receiving legal advice, the Town’s General Manager of Community and Corporate Services determined that proper notification could not be given to any potential interested parties regarding the clarification of the questions. It was determined that the tender should be cancelled in order to ensure a fair and open process.

At a Regular Session of Council held on June 25, 2019, Council passed Resolution 365/19 directing that Heritage Park be listed for sale with a realtor for $1.1 million and authorized the General Manager of Community and Corporate Services to act on behalf of the Town during the negotiation process for offers. The Mayor was the Chair of the meeting of Council held on June 25, 2019 and she did not declare a pecuniary interest in the listing for sale of Heritage Park.

Heritage Park was listed for sale on July 24, 2020 and offers were to be submitted to the realtor on or before August 20, 2019. The Local Developer did not submit an offer.

At a Regular Session of Council held on September 10, 2019, by Resolution 448/19, Council authorized the sale of Heritage Park and authorized the Mayor and Clerk to execute all documents and take all actions necessary to complete the sale. The Mayor was the Chair of the September 10, 2019 Council meeting and did not declare a pecuniary interest in the sale of Heritage Park.

At a Special Session of Council held on October 8, 2019, Council adopted Resolution 507/19 to authorize the Mayor and Clerk to execute all documents and take all necessary actions to approve an amendment to the Agreement of Purchase and Sale of Heritage Park. The Mayor did not declare a pecuniary interest in this matter. The sale of Heritage Park closed on April 24, 2020.

5 Heritage Park is legally described as all of Lots 45 and 46, Registered Plan No. 1175 and all of Lots 1 to 23, both inclusive, all of Lots 25 to 54, both inclusive, all of Blocks 56 and 57, all of Rose Court, Heritage Park Drive and Angila Street, Registered Plan No. 1176, all in the Town of Greater Napanee and the County of Lennox and Addington.



(e) Development of Heritage Park

Around March 2020, applications were filed by the purchaser of Heritage Park for amendments to the Town’s Official Plan and Zoning By-law and for approval of a Draft Plan of Subdivision (the “Development Applications”). The proposed development is referred to as Millhouse Yards.

The Draft Plan of Subdivision Application proposed to create a residential subdivision with 38 single-detached dwellings, 63 row dwellings and 2 low-rise apartment buildings. The subdivision would include the creation of new public roads, park space and a stormwater management pond. The Official Plan and Zoning By-law amendments proposed to increase the permitted residential density of the lands and to establish site-specific performance standards for the proposed lots and buildings. The Development Applications would also place the park space and stormwater management lands within the Open Space (OS) zone.

On July 21, 2020, Council held a Special Session at which statutory public meetings under the Planning Act were conducted.6 At this meeting, Council heard a presentation by the planning firm representing the owner of Heritage Park regarding the Development Applications (Item 4.5 at 41:14 of the video recording). The Mayor did not disclose a pecuniary interest in the item and took part in the discussion in respect of the matter. Council did not vote on the matter.

At a Regular Meeting of Council held on October 27, 2020, Council voted to approve the Development Applications for Millhouse Yards subject to the satisfaction of a number of conditions (Item 10.4). The vote was not recorded and the Mayor does not appear to actually vote on the resolution approving the Development Applications (Resolution 537/20; see 1:12:43 of the video recording). The Mayor did not disclose a pecuniary interest in the matter, acted as Chair of the meeting and took part in the discussion in respect of the Development Applications. Council’s discussion of this matter begins at 58:46 of the video recording.

At the Regular Meeting of Council on February 9, 2021, Council passed Resolution 68/21 to receive for information a request from the owner of Heritage Park for Town support for an expedited review of his application to the Ministry of the Environment, Conservation and Parks for Environmental Compliance Approval for the proposed subdivision. The resolution further directed that Council issue a letter of support as requested by the owner. The Mayor did not declare a pecuniary interest in Item 6.1 which dealt with the above matter, acted as Chair of the meeting and participated in the discussion in respect of the matter.

However, once Council’s discussion of Heritage Park turned to specific consideration of pre-servicing agreements for the Millhouse Yard stormwater management pond, the Mayor began to declare a pecuniary interest.

At a Regular Session of Council held on April 27, 2021, the Mayor declared a pecuniary interest in regard to Item 10.7 and left the virtual meeting. This item dealt with a pre-servicing agreement for Millhouse Yards and the proposed front-ending for stormwater management and sanitary service oversizing to accommodate stormwater and sanitary drainage of future development lands north of Heritage Park. The Mayor’s required disclosure of pecuniary interest form did not note the reason for the Mayor’s declaration but states only, “Possible Conflict of Interest based on legal advice”.

6 R.S.O. 1990, c. P.13.



At a Special Session of Council held on April 30, 2021, the Mayor declared a pecuniary interest in Item 4.2 which once again dealt with the pre-servicing agreement between the owner of Heritage Park and the Town. It must be noted that Council’s specific consideration of the stormwater management matter and the Mayor’s declaration of a pecuniary interest in this matter came only after the filing of the Application.

G. DISCUSSION

The MCIA does not define "pecuniary interest", however, the case law establishes that a pecuniary interest under the MCIA is restricted to a financial, monetary or economic interest.7

The term "direct" is not defined in the MCIA, however, the courts have found that it must refer to a situation in which the member could experience an immediate, in the sense of close, non-deviated or traceable financial or economic impact, positive or negative.8

The MCIA defines indirect pecuniary interest as follows:

Indirect pecuniary interest

2 For the purposes of this Act, a member has an indirect pecuniary interest in any matter in which the council or local board, as the case may be, is concerned, if,

(a) the member or his or her nominee,

(i) is a shareholder in, or a director or senior officer of, a corporation that does not offer its securities to the public,

(ii) has a controlling interest in or is a director or senior officer of, a corporation that offers its securities to the public, or

(iii) is a member of a body,

that has a pecuniary interest in the matter; or

(b) the member is a partner of a person or is in the employment of a person or body that has a pecuniary interest in the matter.

A member may have a deemed interest under section 3 of the MCIA:

Interest of certain persons deemed that of member

3 For the purposes of this Act, the pecuniary interest, direct or indirect, of a parent or the spouse or any child of the member shall, if known to the member, be deemed to be also the pecuniary interest of the member.

The Mayor does not refute the claim that she was aware of the Mayor’s Son’s interest in the 4-acre and 7-acre properties in the vicinity of Heritage Park.

7 Mondoux v. Tuchenhagen, 2011 ONSC 5398, 88 M.P.L.R. (4th) 234 at para. 31 (Div. Ct.); Magder v. Ford, 2013 ONSC 263, 7 M.P.L.R. (5th) 1 at para. 6 (Div. Ct.).

8 Cooper v. Wiancko, 2018 CarswellOnt 676, 73 M.P.L.R. (5th) 212 at para. 63 (Ont. S.C.J.).



Pursuant to sub-clause 2(a)(i) above, any pecuniary interest of the numbered companies of which the Mayor’s Son is a Director would be an indirect pecuniary interest of the Mayor’s Son and by operation of section 3 of the MCIA, an indirect pecuniary interest of the Mayor.

In determining whether there is a sufficient pecuniary interest to trigger the provisions of the statute, the question which must be asked is: "Does the matter to be voted upon have a potential to affect the pecuniary interest of the member?"9

G. FINDINGS

We will address below each of the Applicant’s allegations.

(a) The Mayor attempted to influence Town staff and others in decisions on the marketing of Heritage Park in such a way that a developer with ties to the Mayor’s son would have an advantage in acquiring said property, and knowing that her son stood to gain a pecuniary benefit (direct or indirect) from the sale and development of heritage park as a residential subdivision, contrary to section 5.2 of the MCIA.

Analysis

There is insufficient evidence to demonstrate that the Mayor contravened section 5.2 of the MCIA by attempting to influence Town staff and others in decisions on the marketing of Heritage Park in such a way that the Local Developer would have an advantage in acquiring said property, and knowing that the Mayor’s Son stood to gain a pecuniary benefit (direct or indirect) from the sale and development of Heritage Park as a residential subdivision.

It is not our role as Integrity Commissioner to comment on issues related to the Town’s sale of land process. These issues have recently been documented in Council-commissioned reports prepared by KPMG. It is clear, however, that such issues led to well-intentioned suspicion and criticism by members of the public.

Despite our finding that there is insufficient evidence to demonstrate a contravention of section 5.2 of the MCIA, we find it necessary to comment on the allegation that the Mayor had a pecuniary interest (indirect or direct) in the Local Developer acquiring Heritage Park.

While the evidence demonstrates that the Local Developer, through his interest in acquiring Heritage Park, had a pecuniary interest in the matter, this does not translate into an indirect pecuniary interest on the part of the Mayor’s Son or the Mayor.

We also find that there is no evidence that the Mayor’s Son had a direct pecuniary interest in the Local Developer acquiring Heritage Park. In order to constitute a pecuniary interest, there must be something more than infrequent past business dealings or the possibility of future business.10

9 Greene v. Borins, 1985 CarswellOnt 666, 28 M.P.L.R. 251 at para. 42 (Div. Ct.).

10 Lorello v. Meffe, 2010 ONSC 1976, 99 M.P.L.R. (4th) 107 at para. 59 (S.C.J.). As noted by Penny J.:

To have a conflict under s. 5 of the MCIA, there must be a pecuniary interest existing at the time of the vote. There must be an actual conflict or a reasonable assumption that the conflict will occur. The pecuniary interest must be definable and real rather than hypothetical.



The suggestion that the Mayor’s Son would receive a financial benefit from the Local Developer’s potential acquisition of Heritage Park is purely speculative. Without evidence to substantiate the claim, it is not possible to demonstrate that the Mayor’s Son, or by operation of section 3 of the MCIA, the Mayor, had a direct pecuniary interest in the Local Developer’s acquisition of Heritage Park.

(b) The Mayor attempted to influence Town staff, Council members and others in decisions on the sale of Heritage Park and on its development as a residential subdivision knowing that her son had an interest (direct or indirect) in a 4 acre parcel of land adjacent to Heritage Park and in a second 7 acre parcel of land across Camden Road from Heritage Park and stood to gain a pecuniary benefit (direct or indirect) from the sale and development of Heritage Park as a residential subdivision, contrary to section 5.2 of the MCIA.

Analysis

As above, we have not found any evidence to demonstrate that the Mayor contravened section 5.2 of the MCIA by attempting to influence Town staff, Council members and others in decisions on the sale of Heritage Park and on its development as a residential subdivision.

The decision to sell Heritage Park by public tender appears to have been made independently by Town staff. There is no indication that the Mayor exercised any undue influence over this decision.

The Town’s planning report recommending approval of the Development Applications was prepared by the Town’s independent planning consultant. There is no evidence that the Mayor used her office to influence decisions related to the development of Heritage Park.

(c) The Mayor failed to disclose a pecuniary interest in the sale and development of Heritage Park and voted on questions in respect of these matters contrary to section 5 of the MCIA.

Analysis

The Mayor did not declare a pecuniary interest in the sale of Heritage Park and took part in all meetings of Council dealing with the matter. None of the votes with respect to the sale of Heritage Park were recorded and the meetings pre-date the Town’s current practice of video-recording the meetings of Council. Accordingly, we are unable to verify whether the Mayor voted on matters concerning the sale of Heritage Park. In our view, however, the Mayor’s participation in meetings regarding the sale of Heritage Park did not contravene section 5 of the MCIA.

In York et. al. v. Harris, the court found that possible future outcomes do not qualify as pecuniary interests under the MCIA on the basis that, “There must be a real issue of actual conflict or at least a reasonable assumption that conflict will occur. The pecuniary interest must be definable and real rather than hypothetical.”11

11 Yorke et. al. v. Harris, 2020 ONSC 7361, 11 M.P.L.R. (6th) 273 at para. 47 (S.C.J.) citing Bowers v. Delegarde, [2005] O.J. No. 689, 5 M.P.L.R. (4th) 157 at paras. 76-78 (S.C.J.) and Lorello v. Meffe, supra note 10 at para. 59.



In our view, the Mayor’s Son’s pecuniary interest in the sale of Heritage Park was hypothetical and tied to possible future outcomes involving the future development of that property. As such, in our view, the sale of Heritage Park did not have the potential to affect the pecuniary interest (direct or indirect) of the Mayor’s Son’s and, as a result, the sale did not have the potential to affect the Mayor’s own pecuniary interest.

Each case must stand on its own facts12 and, in our opinion, this case can be distinguished from Greene v. Borins wherein the Divisional Court found that a member contravened the MCIA by participating in a vote regarding the granting of an option to a developer to purchase City-owned lands within the vicinity of lands owned by the member’s family members.13 The potential purchase in that case took place in the context of an established redevelopment vision for the lands in question. Based on the evidence we reviewed, the Mayor would not have had any detailed knowledge regarding plans for the future redevelopment of Heritage Park at the time she participated in meetings and voted on items considering its sale.

Despite the above, however, we find that once Council began to consider the Development Applications, the Mayor’s Son’s indirect pecuniary interest was no longer hypothetical or the subject of any contingency. The Development Applications had the clear potential to affect the redevelopment of the Mayor’s Son’s properties thereby affecting his pecuniary interest. As such, we find the Mayor had a deemed indirect pecuniary interest in the Development Applications.

At the July 21, 2020 meeting when the Development Applications first came forward, the planner for the owner of Heritage Park discussed the proposed stormwater management pond. The planner noted that there is a little over 4 hectares of land adjacent to Heritage Park to the north that is draining in an uncontrolled fashion onto the Heritage Park property. To address this, it was explained that the stormwater pond was intentionally oversized to permit the drainage of the Millhouse Yard subdivision as well as the 4.3 hectares of land to the north.

The Planning Demonstration Report dated February 28, 2020 prepared by the planning consultant for the owner of Heritage Park further notes the benefits to adjacent properties that would result from the development of Heritage Park, especially in relation to the proposed stormwater management facility. For example, this report notes, “[t]he [stormwater management] pond is proposed to be oversized to accommodate flows from lands to the north and west.” (p.12)

The Planning Demonstration Report further provides:

The proposed stormwater management facility will significantly improve the stormwater management practices on subject lands and the adjacent properties by providing both quality and quantity control for all storm events up to the 100-year event to pre-development levels. The proposed tributary drainage area has been expanded to include an external area of approximately 4.5 hectares, located to the north of the site. A portion of these lands are developed with no means of stormwater management while the remainder has the potential to be developed in future. (p. 26)

It is clear from the above that the Mayor’s Son’s 4 acre property to the north of Heritage Park would benefit from Council’s approval of the Development Applications by receiving enhanced drainage. While it is anticipated that the cost of this servicing would eventually be borne by the

12 Cooper v. Wiancko, supra note 8, at para. 61, relying on Green v. Borins: “What constitutes a sufficient pecuniary interest to trigger s. 5 of the MCIA will not necessarily be demarcated by a bright line.”

13 Greene v. Borins, supra note 9.



future developer of those lands, there can be no doubt that the Mayor’s Son and therefore the Mayor, had a pecuniary interest in Council’s consideration and vote on the Development Applications. In addition to its benefits regarding stormwater management on the properties owned by the Mayor’s Son, it is not unreasonable to conclude that, once complete, the Millhouse Yard development would improve the quality of the surrounding area by providing approximately one acre of new parkland and enhancing connections between existing residential neighbourhoods, parkland and the downtown core.

As outlined above, the Mayor participated in discussions regarding the Development Applications at the special meeting on July 21, 2020 which was constituted as a public meeting under the Planning Act. The Planning Act requires the holding of at least one public meeting for Official Plan and Zoning By-law Amendments and applications for draft Plans of Subdivision for the purpose of giving the public an opportunity to make representations in respect of the proposal(s).

In our opinion, such a meeting still qualifies as a meeting pursuant to section 1 of the MCIA which provides that:

“meeting” includes any regular, special, committee or other meeting of a council or local board, as the case may be;

In our opinion, however, consideration of the Development Applications at the Planning Act meeting did not constitute a “matter” for the purpose of the MCIA. As determined by the Manitoba Court of Appeal in Lovatt v. Glenwood (Rural Municipality), “‘a matter’ in the sense that those words are used in s. 5(1), means an issue upon which there can be some meaningful discussion or debate and the prospect of some decision being made.”14

It is notable that while the Mayor took part in discussion regarding the Development Applications at the public meeting on July 21, 2020, there was no prospect of a decision being made at that meeting and no resolution was passed.

In any event, having attended the Planning Act meeting on July 21, 2020 and having heard the presentation given by the Applicant’s planner, the Mayor would have been aware that the Mayor’s Son’s properties stood to benefit from the Millhouse Yard development.

We find that the Mayor contravened clauses 5(1)(a) and 5(1)(b) of the MCIA at the Regular Session of Council on October 27, 2020 when she failed to declare a pecuniary interest and took park in the discussion and subsequent approval of the Development Applications because the Development Applications had the clear potential to affect the Mayor’s Son’s pecuniary interest given that such financial interest was clearly discernible and not hypothetical or entirely speculative.

As noted throughout this Report, by operation of section 3 of the MCIA, the pecuniary interest of the Mayor’s Son was known or ought to have been known by the Mayor. Accordingly, the Mayor’s Son’s financial interest is deemed to be the Mayor’s pecuniary interest by virtue of section 3 of the MCIA.

14 Lovatt v. Glenwood (Rural Municipality), 2004 MBCA 18, 49 M.P.L.R. (3d) 283 at para. 17 (C.A.). See also the application of the test in Tuchenhagen v. Mondoux, supra note 7, at para. 49 (Div. Ct.).



The MCIA recognizes a number of exceptions that serve to make a member’s direct, indirect, or deemed pecuniary interests not subject to the requirements of section 5 of the statute.

In our view, the exceptions in clauses 4(j) and 4(k) are the most relevant to this case. The exceptions in these provisions provide as follows:

Where ss. 5 and 5.2 do not apply

4 Sections 5 and 5.2 do not apply to a pecuniary interest in any matter that a member may have,

…

(j) by reason of the member having a pecuniary interest which is an interest in common with electors generally; or

(k) by reason only of an interest of the member which is so remote or insignificant in its nature that it cannot reasonably be regarded as likely to influence the member.

Section 1 of the MCIA defines “interest in common with electors generally” as follows:

a pecuniary interest in common with the electors within the area of jurisdiction and, where the matter under consideration affects only part of the area of jurisdiction, means a pecuniary interest in common with the electors within that part;

The exception in clause 4(j) for an interest in common applies where a matter before a council affects the pecuniary interests of the member in the same manner as others in the municipality (whether throughout the entire municipality or a more scoped geographic area). The interest may vary in degree, but must be the same in kind.15

In our opinion, while a new development may increase the tax base and create a benefit to all electors generally, the Mayor’s Son’s interest is different in kind from the average elector. The numbered companies of which the Mayor’s Son is a Director, stand to gain a particular benefit from the development of Heritage Park, which is specific to their properties, namely the provision of enhanced stormwater management, introduction of new parkland and other general improvements to the quality of the immediate area. These benefits are not broadly shared by other electors. As such, in our opinion, clause 4(j) cannot be relied upon to exempt the Mayor’s pecuniary interest from the operation of section 5 of the MCIA.

We are also of the view that clause 4(k) does not apply in this instance.

In determining whether clause 4(k) of the MCIA applies, the court must consider whether a reasonable elector, apprised of all the circumstances, would be more likely than not to regard the interest of the member as likely to influence that member’s action and decision on the question.16

While section 3 of the MCIA attributes to members the pecuniary interests of their children and/or partners, clause 4(k) requires consideration of whether the pecuniary interest of a child or partner

15 Ennismore (Township), Re, [1996] O.J. No. 167, 31 M.P.L.R. (2d) 1 at para. 21 (S.C.J.).

16 Whiteley v. Schnurr, [1999] O.J. No. 2575, 4 M.P.L.R. (3d) 309 at para. 10 (S.C.J.).



may nevertheless be so remote or insignificant that it cannot reasonably be regarded as likely to influence the member themselves. The child's pecuniary interest is deemed to be that of the member, but that does not mean that if the interest is not remote or insignificant to the child that it cannot be remote or insignificant to the member.17

While the Mayor may not have been motivated by her own pecuniary interest to take part in the discussions regarding the Development Applications, in our opinion, a reasonable elector would likely view the matter differently. In our opinion, on the balance of the evidence, a reasonable elector being apprised of all of the circumstances would be more likely than not to regard the Mayor’s deemed indirect pecuniary interest as likely to have influenced her actions at the Regular Meeting of Council on October 27, 2020. In any event, the matter of significance in clause 4(k) relates to the importance of the matter to the member, not merely to the financial value that is at stake.18

This is not a situation where the term “pecuniary interest” has been construed so broadly that it captures almost any financial or economic interest such that it risks needlessly disqualifying a municipal councillor from participating in matters of importance to constituents.

Decisions related to the development of land tend to be of particular concern to members of the public. It should be noted that at the time of the meeting of Council on October 27, 2020, there was a heightened interest in the Town regarding such matters. Given the proximity of the Mayor’s Son’s properties to Heritage Park and the known benefit of the Development Applications to those properties, it is difficult to view the Mayor’s pecuniary interest in the Development Applications as remote or insignificant.

In our opinion, it was incumbent on the Mayor as an experienced member of Council to exercise particular caution in participating in Council decisions that had the potential to affect the Mayor’s Son’s property and financial interests. Given the highly publicized public concern over the Town’s dealings with land and the fact that the Town had recently directed an independent review of its property sales process, one would have expected the Mayor to have demonstrated a higher level of attentiveness to perceived conflicts of interest.

(d) The Mayor failed to disclose her interest in Heritage Park and the general nature thereof by filing a declaration with the Clerk, contrary to section 5.1 of the MCIA.

Analysis

The Mayor did not file a written statement of her interest and its general nature in the Development Applications at the October 27, 2020 Council meeting. The Mayor, therefore, contravened section 5.1of the MCIA.

17 Amaral v. Kennedy, 2012 ONSC 1334, 96 M.P.L.R. (4th) 49 at para. 37 (Div. Ct.).

18 Magder v. Ford, 2012 ONSC 5615, 5 M.P.L.R. (5th) 1, at para. 44 (S.C.J.): “In view of the respondent's remarks to City Council, I find that his pecuniary interest in the recommended repayment of $3,150 was of significance to him. Therefore, the exemption in s. 4(k) of the MCIA does not apply.”



H. DECISION TO APPLY TO A JUDGE

The Municipal Act, 2001 authorizes the Integrity Commissioner to bring an application to the Ontario Superior Court of Justice for a determination of whether a member has contravened the MCIA. The relevant portions of section 223.4.1 of the Municipal Act, 2001 provide as follows:

Completion

223.4.1 (15) Upon completion of the inquiry, the Commissioner may, if he or she considers it appropriate, apply to a judge under section 8 of the Municipal Conflict of Interest Act for a determination as to whether the member has contravened section 5, 5.1 or 5.2 of that Act.

Notice to applicant re decision not to apply to judge

(16) The Commissioner shall advise the applicant if the Commissioner will not be making an application to a judge.

Reasons after inquiry

(17) After deciding whether or not to apply to a judge, the Commissioner shall publish written reasons for the decision.

Costs

(18) The Commissioner’s costs of applying to a judge shall be paid by the following:

1. If the member is alleged to have contravened section 5, 5.1 or 5.2 of the Municipal Conflict of Interest Act as a member of council of a municipality, the municipality.

An Integrity Commissioner’s decision regarding whether to make an application to a judge pursuant to subsection 223.4.1 (15) of the Municipal Act, 2001 does not come with any statutory criteria. The only consideration set out in that provision is whether, in the integrity commissioner’s view, he or she “considers it appropriate.”

The relevant considerations regarding whether to make an application to a judge have been summarized by other Integrity Commissioners as follows:

… [W]hen deciding whether to refer this matter to the Court the Integrity Commissioner must weigh the seriousness of the breach, the need for deterrence and the possibility of the Court imposing a sanction that warrants potentially significant expense to the Town inherent in bringing such an application. It is also reasonable to consider whether there is an alternative that would provide a commensurate penalty or sanction without the inherent expense.19

In our view, it would not be appropriate to refer this matter to a judge for the determination of whether the Mayor contravened the MCIA.

Although, in our opinion, the breach is not insignificant, we submit that deterrence can be achieved without the need for a court application. Furthermore, in our view, it is most likely that a court would not order that the Mayor be removed from her seat in the circumstances. While the breach

19 Final Investigation Report by Cunningham, Swan, Carty, Little & Bonham LLP, Town of Gananoque — Complaint against Mayor Ted Lojko, November 19, 2020.



of the MCIA is clear, there are mitigating circumstances that would allow a court to impose a lesser sanction. Using the criteria enumerated in Ferri v. Ontario (Ministry of Attorney General), it is more likely than not that a court would consider the following:20

The Mayor has had many years of service to the Town;

There is no indication that the Mayor, in participating in meetings regarding the Development Applications, was motivated by a potential pecuniary benefit;

The record indicates that the Mayor has been vigilant and conscientious in declaring conflicts of interest in the past regarding Council matters which directly deal with properties owned by the Mayor’s Son;

Since the Application was filed and the specific issue of the oversizing of the stormwater management pond has been brought before by Council, the Mayor has declared a pecuniary interest in the matter;

There is no indication that the Mayor would receive any benefit from the Development Applications.

In our assessment, requiring the Town to incur the significant legal cost of pursuing a court application is not an appropriate use of the Town’s scarce resources and would not be in the public interest. Instead, we view the publication of this Report and the bringing to light of this issue to be the appropriate response in the circumstances.

A draft of this Report was provided to the Mayor before its finalization and we have considered the Mayor’s response.

I. CONCLUSION

Subsection 223.4.1 of the Municipal Act, 2001 provides that, upon completion of an inquiry, the Integrity Commissioner may, if the Integrity Commissioner considers it appropriate, apply to a judge under section 8 of the MCIA for a determination of whether the member has contravened section 5, 5.1 or 5.2 of that Act.

For the reasons set out above, we will not be making an application to a judge pursuant to subsection 223.4.1(15) of the Municipal Act, 2001.

Going forward, we recommend that the Mayor and all members of Council exercise caution as to their statutory obligations under the MCIA which arise anew any time a matter may come before Council, a committee of Council or municipal staff for decisions or recommendations. Members are statutorily entitled to submit specific requests to the Integrity Commissioner for written advice under the MCIA pursuant to subsection 223.3(2.1) of the Municipal Act, 2001.

We will be providing notice to the Applicant of our decision.

20 Ferri v. Ontario (Ministry of Attorney General), 2015 ONCA 683, 40 M.P.L.R. (5th) 223 (C.A.).



We recommend that a copy of our written reasons in this report be posted by the Town on its website.

AIRD & BERLIS LLP

Laura Dean

Integrity Commissioner for the Town of Greater Napanee

Dated this 24th day of August, 2021

45076490.2


DRAFTCORPORATION OF THE TOWN OF GREATER NAPANEE

CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Independent Auditors Report of 222

DRAFTManagement's Responsibility for the Consolidated Financial Statements

The consolidated financial statements of the Corporation of the Town of Greater Napanee are theresponsibility of management and have been approved by Council.

The consolidated financial statements have been prepared in compliance with Canadian public sectoraccounting standards as issued by the Public Sector Accounting Board (PSAB) of the CharteredProfessional Accountants of Canada. A summary of the significant accounting policies are described inNote 1 to the consolidated financial statements. The preparation of consolidated financial statementsnecessarily involves the use of estimates based on management's judgment, particularly when transactionsaffecting the current accounting period cannot be finalized with certainty until future periods.

The Corporation's management maintains a system of internal controls designed to provide reasonableassurance that assets are safeguarded, transactions are properly authorized and recorded in compliancewith legislative and regulatory requirements and reliable financial information is available on a timelybasis for preparation of the consolidated financial statements. These systems are monitored and evaluatedby management.

The Town Council is responsible for ensuring that management fulfills its responsibilities for financialreporting. Council through the Audit Committee, reviews the Corporation's consolidated financialstatements and discusses any significant financial reporting or internal control matters prior to Councilapproval of the consolidated financial statements.

The consolidated financial statements have been audited by Welch LLP, independent external auditorsappointed by the Corporation, in accordance with Canadian generally accepted auditing standards. Theaccompanying Independent Auditor's Report Outlines their responsibilities, the scope of theirexamination and their opinion on the Corporation's consolidated financial statements.

___________________________

Brandt Zatterberg Paul Dowber, CPA, CGA

Interim Chief Administrative Officer Treasurer

1


DRAFTINDEPENDENT AUDITOR'S REPORT

To the members of Council of theCORPORATION OF THE TOWN OF GREATER NAPANEE

Opinion

We have audited the consolidated financial statements of Corporation of the Town of Greater Napanee(the Corporation), which comprise the consolidated statement of financial position as at December 31,2020, and the consolidated statements of operations and accumulated surplus and the consolidatedstatement change in net financial assets and cash flows for the year then ended, and notes to theconsolidated financial statements, including a summary of significant accounting policies (collectivelyreferred to as the "consolidated financial statements").

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,the consolidated financial position of the Corporation of the Town of Greater Napanee as at December31, 2020 and the results of its operations, changes in net financial assets, and its consolidated cash flowsfor the year then ended in accordance with Canadian public sector accounting standards as issued by thePublic Sector Accounting Board (PSAB).

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Ourresponsibilities under those standards are further described in the Auditor's Responsibilities for the Auditof the Consolidated Financial Statements section of our report. We are independent of the Corporation inaccordance with the ethical requirements that are relevant to our audit of the consolidated financialstatements in Canada, and we have fulfilled our ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated FinancialStatements

Management is responsible for the preparation and fair presentation of the consolidated financialstatements in accordance with Canadian public sector accounting standards, and for such internal controlas management determines is necessary to enable the preparation of consolidated financial statements thatare free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing theCorporation's ability to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting.

Those charged with governance are responsible for overseeing the Corporation's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements asa whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with Canadian generally accepted auditing standards will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these consolidated financial statements.

2



CONSOLIDATED NOTES TO FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2020

As part of an audit in accordance with Canadian generally accepted auditing standards, we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financialstatements, whether due to fraud or error, design and perform audit procedures responsiveto those risks, and obtain audit evidence that is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the Corporation’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Corporation’s abilityto continue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report to the related disclosures in theconsolidated financial statements or, if such disclosures are inadequate, to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Corporation to ceaseto continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financialstatements, including the disclosures, and whether the consolidated financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identify during our audit.

Napanee, Ontario CHARTERED PROFESSIONAL ACCOUNTANTSTBA LICENSED PUBLIC ACCOUNTANTS

3



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

DECEMBER 31, 2020

2020 2019

FINANCIAL ASSETSCash - note 3 $ 20,771,848 $ 15,034,911Taxes receivable 3,341,634 3,470,710Accounts receivable 572,147 1,538,657User charges receivable 768,603 804,359Long-term receivable 8,869 11,642Long-term investments - note 4 2,035,078 2,428,267

27,498,179 23,288,546

LIABILITIESAccounts payable and accrued liabilities 2,707,846 3,188,830Employee benefits payable and other liabilities - note 7 539,440 270,782Deferred revenue - note 8 6,889,621 5,985,944Municipal debt - note 9 4,943,290 5,849,723

15,080,197 15,295,279

NET FINANCIAL ASSETS 12,417,982 7,993,267

NON-FINANCIAL ASSETSTangible capital assets - note 5 and Schedule 1 115,574,527 117,484,399Prepaid expenses 641,065 497,719

116,215,592 117,982,118

ACCUMULATED SURPLUS - note 12 $128,633,574 $125,975,385

CONTINGENT LIABILITIES - note 10

(See accompanying notes)

4



CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS


2020 2020 2019Budget Actual Actual

(Note 16)REVENUE

Municipal taxation $ 10,908,853 $ 11,229,492 $ 10,321,696Taxation from other governments 1,400,708 1,370,842 1,382,473User charges 8,886,006 8,424,427 8,866,152Government transfers Government of Canada 10,695 19,600 22,475 Province of Ontario 1,811,816 2,323,531 1,921,626 Other Municipalities 972,701 971,748 955,741 Other 11,000 - 22,136Investment income 225,000 152,428 341,498Interest and penalties on taxes 495,000 467,286 523,231Donations 21,000 9,966 216,812Miscellaneous 32,100 9,105 7,869

24,774,879 24,978,425 24,581,709

EXPENDITURES General government 2,645,250 2,789,700 2,464,621Protection to persons and property 7,159,512 7,194,831 6,459,810Transportation services 6,372,335 6,054,628 6,680,608Environmental services 5,687,833 5,768,997 4,359,502Recreation and cultural services 3,230,416 2,560,418 2,973,124Planning and development 586,839 610,579 594,804Health services 184,810 66,112 222,851

25,866,995 25,045,265 23,755,320

INCOME (LOSS) FROM OPERATIONS (1,092,116) (66,840) 826,389

OTHER INCOME AND (EXPENSES) RELATED TO CAPITALMunicipal taxation 694,000 658,371 704,690Taxation from other governments - 40,924 46,014Contributed assets - note 5 - - 164,887Government transfers Government of Canada 482,103 585,669 1,329,643 Government of Ontario 705,166 719,449 1,291,925Development charges 330,000 25,682 289,181Donations and miscellaneous - 198,404 179,218Tangible capital asset gain (loss) - 496,530 (176,599)

2,211,269 2,725,029 3,828,959

ANNUAL SURPLUS 1,119,153 2,658,189 4,655,348ACCUMULATED SURPLUS, beginning of year 125,975,385 125,975,385 121,320,037

ACCUMULATED SURPLUS, end of year $127,094,538 $128,633,574 $125,975,385


5



CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS


2020 2020 2019Budget Actual Actual

(Note 16)

ANNUAL SURPLUS $ 1,119,153 $ 2,658,189 $ 4,655,348Amortization of tangible capital assets 4,747,339 4,747,339 4,610,727Acquisition of tangible capital assets (6,131,250) (8,104,146) (4,042,906)Change in assets under construction - 4,408,985 (2,131,218)Loss on sale of tangible capital assets - (496,530) 176,599Proceeds on sale of tangible capital assets - 1,354,224 43,606Acquisition of prepaid expense - (641,065) (497,719)Use of prepaid expense - 497,719 362,467

CHANGE IN NET FINANCIAL ASSETS (264,758) 4,424,715 3,176,904

NET FINANCIAL ASSETS, beginning of year 7,993,267 7,993,267 4,816,363

NET FINANCIAL ASSETS, end of year $ 7,728,509 $ 12,417,982 $ 7,993,267


6



CONSOLIDATED STATEMENT OF CASH FLOWS


2020 2019

OPERATING ACTIVITIESAnnual surplus $ 2,658,189 $ 4,655,348Non-cash items:

Amortization 4,747,339 4,610,727Loss on sale of tangible capital assets (496,530) 176,599Contributed land and buildings - (164,887)Employee benefits payable 231,799 (27,297)Solid waste landfill closure and post-closure care 36,859 -

7,177,656 9,250,490Changes in non-cash charges to operations (net change):

Taxes receivable 129,076 262,590Accounts receivable 966,510 115,100User charges receivable 35,756 (115,839)Prepaid expenses (143,346) (135,252)Accounts payable and accrued liabilities (480,984) (1,384,622)Deferred revenue 903,677 473,901

8,588,345 8,466,368

CAPITAL ACTIVITIESAcquisition of tangible capital assets (3,695,161) (6,009,237)Proceeds on disposal of capital assets 1,354,224 43,606

(2,340,937) (5,965,631)INVESTING ACTIVITIES

Purchase of long-term investments (1,490,078) (1,835,078)Proceeds from sale of long-term investments 1,883,267 2,749,511Repayment of long-term receivable 2,773 2,341

395,962 916,774

FINANCING ACTIVITIESLong-term debt repaid (906,433) (891,460)

NET CHANGE IN CASH 5,736,937 2,526,051

CASH, beginning of year 15,034,911 12,508,860

CASH, end of year $20,771,848 $15,034,911


7





1. SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements of the Corporation of the Town of Greater Napanee are therepresentation of management prepared in accordance with generally accepted accounting policiesas issued by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountantsof Canada. Significant aspects of the accounting policies adopted by the Corporation are as follows:

Reporting Entity

The consolidated financial statements reflect the assets, liabilities, revenues, expenditures, and cashflows of the reporting entity. The reporting entity is comprised of all organizations and enterprisesaccountable for the administration of their financial affairs and resources to the Corporation andwhich are owned or controlled by the Corporation. In addition to general government tax-supportedoperations, they include the following:

Napanee Business Improvement Area Association

Interdepartmental and organizational transactions and balances are eliminated.

Accounting for County and School Board Transactions

The assets, liabilities, revenues, and expenditures with respect to the operations of school boardsand the County of Lennox and Addington are not reflected in these consolidated financialstatements..

Basis of Accounting

The consolidated financial statements are prepared using the accrual basis of accounting. Theaccrual basis of accounting records revenue as it is earned and measurable. Expenses arerecognized as they are incurred and measurable based upon receipt of goods or services and/or thecreation of a legal obligation to pay.

Land Held for Resale

Land held for resale is recorded at the lower of cost and net realizable value. Cost includes amountsfor improvements to prepare the land for sale or servicing. Included in tangible capital assets atDecember 31, 2020 is land held for resale of $752,063 (2019 - $1,142,531).

8





1. SIGNIFICANT ACCOUNTING POLICIES (continued)

Deferred Revenue

The Corporation receives contributions under the authority of provincial legislation and fundingagencies. These funds, by their nature, are restricted in their use, and, until applied to applicableprojects, are recorded as deferred revenue. Amounts applied to projects are recorded as revenue inthe fiscal period in which they are expended.

Reserve and Reserve Funds

Certain amounts, as approved by Council, are set aside in reserve and reserve funds for futureoperating and capital expenditures. Transfers to, or from, reserves and reserve funds are recorded asan adjustment to the respective fund when approved.

Government Transfers

Government transfers are recognized as revenues or expenditures in the year that the events givingrise to the transfer occurred, provided the transfer is authorized, eligibility criteria, if any, have beenmet by the recipient, and a reasonable estimate of the amount can be made.

Taxation and Related Revenues

Property tax billings are prepared by the Corporation based on assessment rolls issued by theMunicipal Property Assessment Corporation ("MPAC"). Tax rates are established annually byCouncil incorporating amounts to be raised for local services and amounts the Corporation isrequired to collect on behalf of the County of Lennox and Addington for general and librarypurposes and the Province of Ontario in respect of education taxes. Realty taxes are billed based onthe assessment rolls provided by MPAC. Taxation revenues are recorded at the time tax billings areissued. A normal part of the assessment process is the issue of supplementary assessment rolls thatprovide updated information with respect to changes in property assessment. Once a supplementaryassessment roll is received, the Corporation determines the taxes applicable and renderssupplementary tax billings. Assessments and the related property taxes are subject to appeal. Anysupplementary billing adjustments made necessary by the determination of such changes will berecognized in the fiscal year they are determined and the effect shared with the school boards asappropriate.

Investments

Investments are stated at cost except for those cases where the decline in value is considered to bepermanent in which case the investment is written down to market value.

Non-Financial Assets

Non-financial assets are not available to discharge existing liabilities and are held for use in theprovision of services. They have useful lives extending beyond the current year, and are notintended for sale in the ordinary course of operations. The change in non-financial assets during theyear, together with the excess of revenues over expenses, provides the Consolidated Change in NetFinancial Assets for the year.

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Non-Financial Assets (continued)

a) Tangible Capital Assets

Tangible capital assets are recorded at cost, which includes all amounts that are directly attributableto acquisition, construction, development or betterment of the asset. The cost, less residual value, ofthe tangible capital assets is amortized on a straight-line basis over their estimated useful life asfollows:

Land improvements 10 to 45 yearsBuildings 25 to 50 yearsMachinery and equipment 10 to 30 yearsVehicles 5 to 20 yearsComputer hardware and software 3 to 5 yearsWater and waste plants and networks

- underground networks 50 to 125 years- sewage treatment plants and lift stations 50 to 100 yearswater pumping stations and reservoirs 50 to 100 years- flood stations and other infrastructure 50 to 100 years

Transportation- roads 10 to 40 years- bridges and structures 45 to 50 years

Leased assets 5 to 40 years

Amortization will begin on the acquisition date in the year of acquisition and in the year of disposal.Assets under construction are not amortized until the asset is available for productive use, at whichtime they are capitalized. Amortization will be prorated from the acquisition month or the month theasset is available for use.

The Corporation has a capitalization threshold so that individual tangible capital assets of lesservalue are expensed, unless they are pooled because, collectively, they have significant value, or foroperational reasons.

b) Contribution of Tangible Capital Assets

Tangible capital assets received as contributions are recorded at their fair value at the date of receiptand also are recorded as revenue. Similarly, transfer of assets to third parties are recorded as anexpense equal to the net book value of the assets as of the date of transfer.

c) Works of Art

Assets that have a historical or cultural significance, which include works of art, monuments andother cultural artifacts are not recognized as tangible capital assets because a reasonable estimate offuture benefits associated with this property can not be made.

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Non-Financial Assets (continued)

d)Leases

Leases are classified as capital or operating leases. Leases which transfer substantially all of thebenefits and risks incidental to ownership of property are accounted for as capital leases. All otherleases are accounted for as operating leases and the related lease payments are charged to expensesas incurred.

Forgivable Loan

The Corporation has developed a doctor recruitment and retention program which provides aforgivable loan in the aggregate amount of $100,000 per doctor. The doctors enter into a forgivableloan agreement in exchange for a minimum five year commitment to practice family medicinewithin the Town of Greater Napanee. The Corporation does not expect to be repaid unless certainconditions are not met, accordingly, payments under the forgivable loan agreements have beenincluded as an expenditure in the consolidated financial statements.

Contaminated Sites Liability

Contaminated sites are a result of contamination being introduced into air, soil, water or sedimentof a chemical, organic or radioactive material or live organism that exceeds an environmentalstandard. The liability is recorded net of any expected recoveries. A liability for remediation of acontaminated site is recognized when, as at the financial reporting date, all of the following criteriaare met for a site or a portion of a site which is no longer in productive use:

i) an environmental standard exists;ii) contamination exceeds environmental standard;iii) the Corporation is directly responsible or accepts responsibility: andiv) a reasonable estimate of the amount can be made.

Use of Estimates

The preparation of consolidated financial statements in conformity with Canadian generallyaccepted accounting principles requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at thedate of the financial statements and the reported amounts of revenues and expenses during thereporting period. Management makes accounting estimates when determining the estimated usefullife of the Corporation's tangible capital assets, its allowance for doubtful accounts, the accruedliability for employee benefits and solid waste landfill closure and post-closure care. Actual resultscould differ from those estimates.

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2. FINANCIAL INSTRUMENTS

The Corporation's financial instruments consist of cash, taxes receivable, accounts and mortgagesreceivable, investments, accounts payable and accrued liabilities and long-term debt. Unlessotherwise noted, it is management's opinion that the Corporation is not exposed to significantinterest, currency or credit risks arising from these financial instruments. The fair value of theCorporation's financial instruments approximates their carrying value due to their short-term nature.It is not practical to determine the fair market value of long-term debt. The terms of such long-termdebt have been disclosed separately.

3. CASH

Cash and investments consist of the following:

Market Value 2020 2019

Cash and chequing accounts $19,523,100 $19,523,100 $14,318,584Mutual Funds/segregated funds 1,248,748 1,248,748 716,327

$20,771,848 $20,771,848 $15,034,911

Unappropriated cash $ 7,915,198 $ 6,112,046

Clean water and wastewater fund agreement 242,098 397,448

Federal-provincial safe restart agreement 446,400 - Designated under Development charges by-law 3,930,360 3,216,212Designated under Planning Act - Parkland 80,765 80,765Designated under the Town of Greater Napanee

bylaw for Water and Wastewater Utilities 6,512,096 3,976,698Napanee Hydro Electric Commission proceeds 1,644,931 1,251,742

$20,771,848 $15,034,911

Cash received under the Clean water and wastewater fund agreement is restricted for upgrades tothe wastewater pollution control plant.

Cash received under the federal-provincial safe restart agreement is to assist with Covid-19 costsand pressures.

Cash received under the Federal Gas Tax agreement is restricted for expenditure on environmentallysustainable municipal infrastructure.

Cash raised under the Development charges bylaw is restricted for growth related capital costs forwhich the development charge was imposed.

Cash raised under the Planning Act regarding parkland is restricted for capital costs for theacquisition of land or other capital expenditures for park or other recreational purposes.

Cash raised under the Town of Greater Napanee bylaw for Greater Napanee Utilities is restricted forongoing maintenance, capital projects and emergency expenses.

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4. LONG-TERM INVESTMENTS

The balance of long-term investments consists of the following:

2020 2019Market Market

Cost Value Cost Value

Napanee Hydro Electric Commission Proceeds

- Provincial bond coupon $ - $ - $ 445,000 $ 453,328 Guaranteed investment certificates 2,035,078 2,048,357 1,983,267 3,031,300

$ 2,035,078 $ 2,048,357 $ 2,428,267 $ 3,484,628

Investments are initially recorded at cost. Cost is adjusted annually to amortize any premiums ordiscounts over the term of the respective investments.

The Corporation holds guaranteed investment certificates having effective interest rates of 2.2 %to 3.0% with maturity dates from April 29, 2021 to December 10, 2021. Included in accountsreceivable is $20,536 (2019 - $28,564) of accrued interest on guaranteed investment certificates.

5. TANGIBLE CAPITAL ASSETS

Schedule 1 provides information on the cost and accumulated amortization of tangiblecapital assets of the Corporation by major asset category.

Contributed tangible capital assets

During the current year the value of contributed capital assets is $Nil (2019 - $164,887).

In 2018, Council approved the write-off of taxes receivable, accrued interest and related charges onseveral development, abandoned or inactive properties owned by taxpayers. The properties havebeen vested in the name of the Corporation under the tax sale provisions of the Municipal Act,declared surplus and advertised for sale. Proceeds from future sales will be returned to reserveswith County and School board portions returned accordingly. During the year parcels of this vestedproperty were sold for $1,150,000 (2019 -$170,951) netting $405,027 (2019 -$8,437) returned to theReserve for Working Capital in 2020 and Assessment Appeals for 2019.

6. BANK INDEBTEDNESS

The Corporation has an operating line of credit of $4,000,000 at an interest rate of prime less .5% ofwhich $Nil (2019 - $Nil) was utilized at year end.

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7. EMPLOYEE BENEFITS PAYABLE AND OTHER LIABILITIES

The Corporation provides certain employee benefits and operates two solid waste landfill siteswhich will require funding in future periods and are comprised of the following:

2020 2019

Solid waste landfill closure and post-closure care $ 108,065 $ 71,206 Staff retirement allowance 431,375 199,576

$ 539,440 $ 270,782

a) Landfill Closure and Post-Closure Care

The Ontario Environmental Protection Act sets out the regulatory requirements to properly closeand maintain all active and inactive landfill sites. The estimated liability for these expenditures isrecognized based on the cumulative capacity used to date, compared to the total estimatedlandfill capacity.

The estimated liability for the South Fredricksburg and Roblin landfills is $106,530 based on thepresent value of closure and post-closure costs estimated at $475,778 using assumed rates of 3%for inflation and 6% for interest.

The South Fredricksburg landfill has an estimated remaining capacity of 76% and is expected toprovide capacity for 42 years based on estimated current waste generation rates.

The Roblin landfill site is closed and no longer receiving waste. The landfill has an estimatedremaining capacity of 89%.

The liability is currently unfunded, it is expected to be funded through budget allocations to alandfill reserve over the remaining life of the landfill.

Post-closure care is estimated to continue for a period of approximately 20 years.

b) Staff Retirement Allowance

Under Town of Greater Napanee Bylaw 2016-0060 "Conditions of employment, compensationand benefits", upon retirement a full time employee with more than 1 year of service but lessthan 10 years shall receive one day's pay per year of service to the Corporation, for full timeemployees with 10 years of service or more shall receive two day's pay per year of service. Allretirement packages are capped at a maximum of $7,500.

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8. DEFERRED REVENUE

The balance of deferred revenue consists of the following:

Balance Transferred BalanceDecember 31, to December 31,

2019 Additions Income 2020

Externally restrictedDevelopment charges $ 3,216,212 $ 714,148 $ - $ 3,930,360Developer contributions 152,000 - - 152,000Federal Gas tax - 482,103 (482,103) -Clean Waste Water Fund 397,448 - (155,350) 242,098Parkland 80,765 - - 80,765

3,846,425 1,196,251 (637,453) 4,405,223

Water and Wastewater UtilitiesImpost fees 1,959,487 377,248 - 2,336,735

Recreation revenue 3,691 - (3,691) -Deferred deposits 176,341 - (28,678) 147,663

$ 5,985,944 $ 1,573,499 $ (641,144) $ 6,889,621

Development charges are restricted by legislation. These funds are recognized as revenue in theperiod they are used for the purpose specified.

Developer contributions are restricted by agreement for the future construction of a regional stormwater management facility and urbanization of Alkenbrack Street and remediation work onMcPherson Drive.

Clean Waste Water funds are restricted for use in the Waste Water Expansion project and fundswill be recognized as used.

Parkland is restricted by legislation. These funds are for the acquisition of land to be used for parkor other public recreational purposes, including the erection or repair of buildings and theacquisition of machinery for park or other public recreational purposes.

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9. LONG-TERM DEBT

Long-term debt consists of the following: 2020 2019

Bank loans - Strathcona Paper Centre $ 1,743,679 $ 2,229,315OMEIFA loan 2,499,611 2,570,408Assessment appeal settlement - note 17 700,000 1,050,000

$ 4,943,290 $ 5,849,723

The Strathcona Paper Centre bank loan of $ 1,743,679 has an effective interest rate of 3.18%,payable in monthly blended payments of $45,806, with a maturity date of April 20, 2024.

The OMEFIA loan bears interest at 2.74%, payable in semi-annual payments of $70,372, withmaturity date of June 15, 2045.

The assessment appeal settlement is payable in annual installments of $350,000, bearing interest atan escalating rate of 0.5% each year, for 2020 the interest rate is 4.0 % (2019 - 3.5%) with amaturity date of January 2022.

Principal repayments are estimated to be as follows:

2021 $ 924,2482022 942,4372023 611,2282024 269,0312025 81,1162026 - 2030 440,4102031 and subsequent 1,674,820

10. CONTINGENT LIABILITIES AND COMMITMENTS

In the course of its business, the Corporation becomes involved in various claims and legalproceedings. Litigation is subject to many uncertainties and the outcome of individual matters is notpredictable. An estimate of the contingency cannot be made since the outcome of these matters isnot predictable. The Corporation carries liability insurance. Any settlement in excess of amountswhich have been recorded in the accounts and insurance coverage will be accounted for as a currenttransaction in the year of settlement. Contingent environmental liabilities may arise out of existingoperations. Such liabilities are different from environmental remediation and solid waste landfillclosure and post-closure care liabilities because the liabilities are not determinable, the conditionwhich may give rise to the expenditures are uncertain, and the future expectations of the applicableregulatory authorities are not known. Potential costs that may arise in connection which suchliabilities are not included in our provisions until the source and nature of the obligation becomeclear and is reasonably estimable.

The Corporation has commitments under various operating leases. The minimum payments underthe leases are as follows:

2021 21,0292022 21,0292023 21,0292024 21,0292025 10,515

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10. CONTINGENT LIABILITIES AND COMMITMENTS (continued)

The Corporation has an agreement with Waste Management of Canada Corporation for garbagecollection and disposal services and recycling and processing services to December 31, 2020.Charges for the 2020 year garbage collection and disposal services were $682,628 and for recyclingcollection and processing were $545,278.

The Corporation had an agreement with the Ministry of Community Safety and CorrectionalServices for the provision of police services to December 31, 2020. Details for the renewal ofcontracted services remains under negotiation. Charges for 2020 for police services were$3,965,813 (2019 - $3,588,948).

The Corporation has entered into a cost sharing agreement with the County of Hastings to share thecost of recruitment of family doctors. The Corporation has agreed to reimburse Country of Hastings30% of the expenses. Future reimbursements in force at December 31, 2020 are as follows:

2021 $18,0002022 $18,000

The Corporation has developed a doctor recruitment program. Future payments for the program,based on agreements in force at December 31, 2020 are as follows:

2021 $22,5002022 $22,5002023 $22,5002024 $22,500

As at December 31, 2020 the Corporation has no outstanding capital project contractualcommitments.

11. CONTRACTUAL RIGHTS

The Corporation is involved in various contracts and agreements arising in the ordinary course ofbusiness. This results in contractual rights to economic resources, leading to both assets andrevenue in the future.

a) Lease revenue

The Corporation has entered into a number of fixed term lease agreements for the use ofCorporation owned land and/or buildings that are anticipated to provide the Corporation withfuture revenues.

b) Developer contributions

The Corporation has entered into property development agreements which require the developersto contribute various infrastructure assets to the Corporation, including roads and undergroundnetworks. The timing and extent of these future contributions vary depending on developmentactivity and fair value of the assets at time of contribution which cannot be determined withcertainty at this time.

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11. CONTRACTUAL RIGHTS (continued)

c) Funding agreements and grants

The Corporation is the recipient of funding agreements and grants from federal, provincial,municipal and other government agencies. These funding agreements do not abnormally impactthe Corporation's financial position and do not guarantee the Corporation the right to futurefunding. At December 31, 2020, the balance of the outstanding contractual rights not accrued inthe financial statements are as follows:

2021 $ 504,0172022 504,0172023 525,931

12. ACCUMULATED SURPLUS

Accumulated surplus consists of restricted and unrestricted amounts and equity in tangible capitalassets as follows:

2020 2019

Equity in tangible capital assets $ 115,574,526 $ 117,484,398Less: related debt (4,243,290) (4,799,723)

111,331,236 112,684,675Capital projects (3,559,732) (3,915,154)Reserve and reserve funds - schedule 2 21,051,492 11,295,131Amounts to be recovered

Landfill closure and post-closure costs (108,065) (71,206)Employee costs (431,375) (199,576)

Unrestricted SurplusTown of Greater Napanee 303,162 6,144,409Napanee Business Improvement Area 46,856 37,106

$ 128,633,574 $ 125,975,385

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13. SEGMENTED INFORMATION

The Corporation's services are provided by departments. Certain departments that have beenseparately disclosed in the segmented information, along with services they provide, are as follows:

General Government

General government is comprised of council, chief administrative office (CAO), community andcorporate services department, and finance department. A municipal council is the ultimateauthority, subject to provincial law, for all actions taken on behalf of the municipal corporation inthat it exercises both executive and legislative roles. It fulfills its role by making policies inaccordance with the wishes and concerns of the general public, subject to provincial laws, policiesand directives. Council plays a managerial role by monitoring ongoing administrative performanceand ensuring the best care of resources. The chief administrative officer is responsible to council forthe general control and management of the affairs of the Corporation as prescribed by council. TheCAO, as head of the corporation's civic administration, provides leadership and direction to thesenior management team, co-ordinates the administrative functions of the Corporation and exercisesgeneral management and control of operations. The CAO's office ensures coordinated responsibleservices are delivered to residents and businesses in accordance with the approved policies anddirections. The community and corporate services department consists of clerks & by-lawenforcement department, economic development department, information technology departmentand recreation department. Clerks and by-law enforcement department is responsible for thefollowing service areas: birth and death certificates, marriage licenses, lottery and taxi licensing, by-laws and minutes, by-law enforcement, requests for information, crossing guards and dog andkennel licensing.

The finance department is responsible for the administration of taxes, water and wastewater billing,accounts payable and receivable, financial statements and all other financial information andreporting for the Corporation.

Protection to Persons and Property

Protection to persons and property is comprised of police services, emergency services, and bylawenforcement. Police services are provided by the Ontario provincial police whose mandate is thesafety of lives and property of citizens, preserve peace and good order, prevent crimes fromoccurring, detect offenders and enforce the law. The emergency services goal is to ensure that weprotect our residents and properties in our community through prompt emergency response in theevent of fire, accident or disaster relief, and in our commitment to meeting the health, safety andaccessibility needs of all people. By-law enforcement department of community and corporateservices is committed to serve, protect and provide a desired quality of life for citizens and visitorsthrough education to raise awareness of community standards and enforcement of by-Laws toensure timely compliance with a professional, unbiased approach.

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13. SEGMENTED INFORMATION (continued)

Transportation Services

As part of infrastructure services the public works department is responsible for the delivery ofmunicipal public works services related to the planning, development and maintenance of roadwaysystems, storm water management, parking, fleet, and street lighting.

Environmental Services

The Corporation contracts with Waste Management Inc. for the collection and disposal ofhousehold and commercial solid waste. The Corporation contracts with Waste Management Inc. forthe collection of household recycling. The Corporation owns and operates two landfill sites withinthe municipal limits. Twice a year the Corporation provides free pickup of leaf and yard waste. TheCorporation occasionally provides free drop off of Hazardous Household waste. As part ofinfrastructure services the utilities department owns and operates its water and wastewater treatmentplants and is responsible for water distribution and wastewater collection systems.

Recreation and Cultural Services

As part of community and corporate service the recreation department is a social service with itspurpose to assist individual and community development, to enhance social functioning and toimprove the quality of life. The recreation department provides accessible recreational programsincluding aquatics, minor ball and skating. Infrastructure services is responsible for theCorporation's facilities, including community halls, arenas, pools, parks, ball diamonds, soccerfields, tennis courts and boat launches.

Planning and Development

As part of infrastructure services the planning department is responsible for building and planningmatters within the municipality including the issuance of building permits, land severance andminor variance applications, applications for official plan amendments and zoning by-lawamendments, site plan control and subdivision matters and property standards inspections. As partof community and corporate services, economic development services is geared to assisting theexisting business community while also encouraging new business development and growth toensure a strong and diversified economic base.

The Napanee Business Improvement Area, under the municipal government, is mandated to promoteand encourage local businesses by attracting residents and visitors to the areas shops, otherattractions and enterprises, by means of beautification, revitalization and special promotions.

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14. OPERATION OF SCHOOL BOARD AND THE COUNTY OF LENNOX ANDADDINGTON

Further to Note 1, the taxation, other revenues and expenditures of school boards and the County ofLennox and Addington are comprised of the following:

School Boards County

Taxation $ 5,780,475 $11,507,126Requisitions 5,780,475 11,507,126

$ - $ -

15. PENSION AGREEMENTS

The Corporation makes contributions to the Ontario Municipal Employees Retirement Fund(OMERS), which is a multi-employer plan on behalf of its staff. The plan is a defined benefit planwhich specified the amount of the retirement benefit to be received by the employees based onlength of service and rates of pay. Employees and employers contribute jointly to the plan.

Contributions for employees with a normal retirement age of 65 were being made at a rate of 9.0%(2019 - 9.0%) for earnings up to the annual maximum pensionable earnings of $58,700 (2019 -$57,400) and at a rate of 14.6% (2019 - 14.6%) for earnings greater than the annual maximumpensionable earnings.

Contributions from employees with a normal retirement age of 60 were being made at a rate of 9.2%(2019 - 9.2%) for earnings up to the maximum pensionable earnings of $58,700 (2019 - $57,400)and at a rate of 15.8% (2019 - 15.8%) for earnings greater than the actual maximum pensionableearnings.

The amount contributed to OMERS for 2020 was $560,754 (2019 - $532,812) for current serviceand is included as an expenditure on the "Consolidated Statement of Operations". The actuarialvaluation of the OMERS plan at December 31, 2020 indicated a (deficit)/surplus in the plan of($7,655,000,000) (2019 - $1,531,000,000). Because OMERS is a multi-employer plan, any pensionplan surpluses or deficits are a joint responsibility of Ontario Municipal organization and theiremployees. As a result, the Corporation does not recognize any share of the OMERS pensionsurplus or deficit.

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16. BUDGET FIGURES

Budget established by the corporation are based on a project oriented basis, the costs of which maybe carried out over one or more years. Although they are not directly comparable with current yearactual amounts, budget figures have been reflected on the "Consolidated Statement of Operations".Budget figures have been reclassified for the purpose of these consolidated financial statements tocomply with PSAB reporting requirements.

17. ASSESSMENT APPEAL SETTLEMENT

On April 5, 2013 the Corporation reached an agreement regarding an assessment by a taxpayer forthe years 2003 to 2012. The Corporation is refunding the taxpayer the total amount of $3,500,000,repayable in annual payments of $350,000 commencing in 2014. $950,430 of this liability, beingthe County's share has been recovered from the County of Lennox and Addington in 2014. Areserve has been established regarding this liability and is reported in schedule 2 to the financialstatements.

18. RIVERSIDE AND RIVERVIEW CEMETERIES

In May 2020, Council approved the assumption of operations of the Riverside and Riverviewcemeteries. Licensure has been authorized to avoid interruption of services however theBereavement Authority of Ontario has yet to finalize the transfer of cemetery assets to theCorporation. The value of these assets are indeterminable at the financial statement date. Theassets include land and trust funds that are to be held for the benefit of others and as such do notaffect and would not be presented as part of the Corporation's statement of financial position oroperations.

19. UNCERTAINTY DUE TO THE ECONOMIC CONSEQUENCES OF THE CORONAVIRUSDISEASE (COVID-19) OUTBREAK

In mid-March of 2020, the province of Ontario declared a state of emergency in response to thepublic health concerns originating from the spread of the coronavirus disease.

A high degree of uncertainty persists surrounding the full economic impact of the situation. Theunpredictable nature of the spread of the disease makes it difficult to determine the length of timethat the Corporation's operations will be impacted. Consequently, at the time of issuance of thesefinancial statements, the effect that the continued disruptions to economic activity will have on theCorporation's operations, assets, liabilities, revenues and expenses are not yet known.

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SCHEDULE 1 - CONSOLIDATED STATEMENT OF TANGIBLE CAPITAL ASSETSYEAR ENDED DECEMBER 31, 2020

GENERAL INFRASTRUCTURE TOTALS

Land

Buildings andLeasehold

Improvements VehiclesOther

EquipmentAssets UnderConstruction

Plant andFacilities Roads

Undergroundand OtherNetworks

Bridges andOther

StructuresAssets UnderConstruction 2020

COSTOpening cost $ 11,100,587 $ 15,979,574 $ 9,392,131 $ 7,397,638 $ 17,833 $13,729,786 $ 81,302,935 $ 51,777,924 $ 4,793,521 $ 7,148,801 $ 202,640,730

Additions during the year 11,519 - 135,308 208,063 12,248 2,634,537 2,430,895 2,552,722 131,102 570,110 8,686,504Disposals during the year (502,619) (149,577) (93,106) (140,668) (2,976) - (665,875) (227,337) - (4,988,367) (6,770,525)

Closing cost 10,609,487 15,829,997 9,434,333 7,465,033 27,105 16,364,323 83,067,955 54,103,309 4,924,623 2,730,544 204,556,709

ACCUMULATED AMORTIZATIONOpening accumulated amortization 636,243 5,026,906 4,807,089 3,924,830 - 6,139,180 46,800,458 15,491,201 2,330,424 - 85,156,331

Amortization during the year 83,480 352,886 601,430 435,107 - 346,943 2,278,985 553,508 95,000 - 4,747,339Disposals and writedowns (10,071) (69,831) (80,141) (121,294) - - (552,416) (87,735) - - (921,488)

Balance, end of year 709,652 5,309,961 5,328,378 4,238,643 - 6,486,123 48,527,027 15,956,974 2,425,424 - 88,982,182

Net Book Value of Tangible Capital Assets $ 9,899,835 $ 10,520,036 $ 4,105,955 $ 3,226,390 $ 27,105 $ 9,878,200 $ 34,540,928 $ 38,146,335 $ 2,499,199 $ 2,730,544 $ 115,574,527


GENERAL INFRASTRUCTURE TOTALS

Land

Buildings andLeasehold

Improvements VehiclesOther

EquipmentAssets UnderConstruction

Plant andFacilities Roads

Undergroundand OtherNetworks

Bridges andOther

StructuresAssets UnderConstruction 2019

COSTOpening costs 11,007,925 15,778,112 9,013,900 7,070,409 61,876 13,566,910 80,806,632 50,182,850 4,644,776 4,973,539 197,106,929

Additions during the year 263,613 201,462 715,579 428,689 17,833 162,876 496,303 1,625,639 148,745 3,981,215 8,041,954Disposals during the year (170,951) - (337,348) (101,460) (61,876) - - (30,565) - (1,805,953) (2,508,153)

Closing cost 11,100,587 15,979,574 9,392,131 7,397,638 17,833 13,729,786 81,302,935 51,777,924 4,793,521 7,148,801 202,640,730

ACCUMULATED AMORTIZATIONOpening accumulated amortization 571,665 4,674,655 4,549,575 3,550,508 - 5,902,841 44,526,509 14,963,947 2,226,022 - 80,965,722

Amortization during the year 64,578 352,251 593,237 438,391 - 236,339 2,273,949 547,580 104,402 - 4,610,727Disposals and writedowns - - (335,723) (64,069) - - - (20,326) - - (420,118)

Balance, end of year 636,243 5,026,906 4,807,089 3,924,830 - 6,139,180 46,800,458 15,491,201 2,330,424 - 85,156,331

Net Book Value of Tangible Capital Assets $ 10,464,344 $ 10,952,668 $ 4,585,042 $ 3,472,808 $ 17,833 $ 7,590,606 $ 34,502,477 $ 36,286,723 $ 2,463,097 $ 7,148,801 $ 117,484,399


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SCHEDULE 2 - CONSOLIDATED SCHEDULE OF CONTINUITY OF RESERVES AND RESERVE FUNDSYEAR ENDED DECEMBER 31, 2020

Revenue Contributions TransfersBalance,

beginning ofyear

Interest onReserveFunds

FromOperations

From Capital Total To Operations To Capital Interfund Total

Balance, end of

year

RESERVESAcquisition of capital assets and debt reduction $ 519,817 $ - $ 242,694 $ 496,620 $ 739,314 $ - $ 117,694 $ - $ 117,694 $ 1,141,437Arena reserve 277,873 - - - - - - - - 277,873Arena user surcharge 595,893 - 38,473 - 38,473 - - - - 634,366Assessment appeals 329,861 - - - - - - - - 329,861Conservation Authority 65,005 - - - - - - - - 65,005Election 20,000 - 20,000 - 20,000 - - - - 40,000Accessibility reserve 51,000 - 5,000 - 5,000 - - - - 56,000Park land 8,690 - - - - - - - - 8,690Physician recruitment 229,000 - - - - 18,000 - - 18,000 211,000Policing reserve 19,688 - - - - - - - - 19,688Recreational and cultural services capital reserve 77,936 - - - - - - - - 77,936Safe Recovery Act - - 446,400 - 446,400 - - - - 446,400Strategic Plan 50,000 - 50,000 - 50,000 - - - - 100,000Working capital 1,393,661 - 5,679,013 1,066,705 6,745,718 77,904 750,046 - 827,950 7,311,429

3,638,424 - 6,481,580 1,563,325 8,044,905 95,904 867,740 - 963,644 10,719,685

RESERVE FUNDSNapanee Hydro Electric Commission proceeds 3,680,009 - - - - - - - - 3,680,009Capital improvement fund 727,563 6,565 1,139,242 - 1,145,807 - 1,018,276 - 1,018,276 855,094Emergency operating 255,214 - 1,386,609 - 1,386,609 - - - - 1,641,823Maintenance reserve fund 2,993,921 21,718 1,139,242 - 1,160,960 - - - - 4,154,881

7,656,707 28,283 3,665,093 - 3,693,376 - 1,018,276 - 1,018,276 10,331,807

TOTAL $ 11,295,131 $ 28,283 $ 10,146,673 $ 1,563,325 $ 11,738,281 $ 95,904 $ 1,886,016 $ - $ 1,981,920 $ 21,051,492


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SCHEDULE 3 - CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE STATEMENT OF OPERATIONSYEAR ENDED DECEMBER 31, 2020

BUDGET

GENERALGOVERNMENT

PROTECTIONSERVICES

TRANSPORTATIONSERVICES

ENVIRONMENTALSERVICES

RECREATIONAND CULTURAL

SERVICESPLANNING ANDDEVELOPMENT

HEALTHSERVICES CONSOLIDATED

REVENUESMunicipal taxation $ 1,214,388 $ 5,612,128 $ 2,128,967 $ (4,407) $ 1,468,402 $ 325,430 $ 163,945 $ 10,908,853Taxation from other governments 166,905 714,249 270,951 (561) 186,882 41,417 20,865 1,400,708User Charges 67,600 485,500 211,000 6,943,753 1,071,530 106,623 - 8,886,006Government Transfers

Government of Canada - - - - 5,000 5,695 - 10,695Province of Ontario 1,649,800 57,016 - 95,000 - 10,000 - 1,811,816Other Municipalities - - 972,701 - - - - 972,701Other - - - - 11,000 - - 11,000

Investment Income 225,000 - - - - - - 225,000Interest and Penalties on taxes 495,000 - - - - - - 495,000Donations - - - - 21,000 - - 21,000Miscellaneous - - 32,100 - - - - 32,100

EXPENDITURES

3,818,693 6,868,893 3,615,719 7,033,785 2,763,814 489,165 184,810 24,774,879

Salaries, wages and employee benefits 1,530,417 2,027,384 1,705,831 1,681,933 1,465,195 367,297 83,510 8,861,567Interest on long-term debt - - 69,948 - 64,034 - - 133,982Materials and supplies 780,505 492,580 1,533,040 1,507,625 1,017,124 134,388 21,300 5,486,562Contracted services and general services 119,300 4,147,462 296,100 1,436,105 207,381 62,500 80,000 6,348,848Rents and financial expenses 31,370 6,050 10,800 10,600 10,180 5,280 - 74,280External transfers 19,000 195,417 - - - - - 214,417Amortization 164,658 290,619 2,756,616 1,051,570 466,502 17,374 - 4,747,339

2,645,250 7,159,512 6,372,335 5,687,833 3,230,416 586,839 184,810 25,866,995

NET REVENUES (EXPENDITURES) $ 1,173,443 $ (290,619) $ (2,756,616) $ 1,345,952 $ (466,602) $ (97,674) $ - $ (1,092,116)


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ACTUAL

GENERALGOVERNMENT

PROTECTIONSERVICES






REVENUESMunicipal taxation $ 1,573,618 $ 5,582,857 $ 2,117,863 $ (83,329) $ 1,460,743 $ 414,650 $ 163,090 $ 11,229,492Taxation from other governments 163,347 699,019 265,174 (549) 182,897 40,534 20,420 1,370,842User Charges 135,567 484,961 256,421 6,540,822 808,162 198,494 - 8,424,427Government Transfers

Government of Canada - - - 3,920 11,760 3,920 - 19,600Province of Ontario 2,097,200 93,485 - 132,846 - - - 2,323,531Other Municipalities - - 971,748 - - - - 971,748

Investment Income 152,428 - - - - - - 152,428Interest and Penalties on taxes 467,286 - - - - - - 467,286Donations 3,023 2,500 - - 4,443 - - 9,966Miscellaneous - 95 8,410 600 - - - 9,105

EXPENDITURES

4,592,469 6,862,917 3,619,616 6,594,310 2,468,005 657,598 183,510 24,978,425

Salaries, wages and employee benefits 1,586,197 2,047,934 1,476,284 1,763,947 1,130,441 354,055 48,030 8,406,888Interest on long-term debt - - 69,862 - 63,568 - - 133,430Materials and supplies 732,086 468,907 1,392,207 1,406,444 741,863 96,167 82 4,837,756Contracted services and general services 265,424 4,193,578 310,682 1,521,620 150,698 139,125 18,000 6,599,127Rents and financial expenses 26,335 2,687 48,977 25,416 7,346 3,858 - 114,619External transfers 15,000 191,106 - - - - - 206,106Amortization 164,658 290,619 2,756,616 1,051,570 466,502 17,374 - 4,747,339

2,789,700 7,194,831 6,054,628 5,768,997 2,560,418 610,579 66,112 25,045,265

NET REVENUES (EXPENDITURES) $ 1,802,769 $ (331,914) $ (2,435,012) $ 825,313 $ (92,413) $ 47,019 $ 117,398 $ (66,840)


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ACTUAL

GENERALGOVERNMENT

PROTECTIONSERVICES






REVENUESMunicipal taxation $ 582,009 $ 5,340,155 $ 2,195,147 $ (245,233) $ 1,911,365 $ 395,476 $ 142,777 $ 10,321,696Taxation from other governments 73,064 718,163 295,211 (22,705) 257,047 42,492 19,201 1,382,473User Charges 99,000 248,322 762,218 6,532,076 1,142,224 82,312 - 8,866,152Government Transfers

Government of Canada - - - - 5,000 17,475 - 22,475Province of Ontario 1,612,900 154,398 - 144,328 - 10,000 - 1,921,626Other Municipalities - - 954,791 - 950 - - 955,741Other - - - - 22,136 - - 22,136

Investment Income 341,383 - - - - 115 - 341,498Interest and Penalties on taxes 523,231 - - - - - - 523,231Donations 4,248 1,000 - - 6,264 5,300 200,000 216,812Miscellaneous 61 - 7,808 - - - - 7,869

EXPENDITURES

3,235,896 6,462,038 4,215,175 6,408,466 3,344,986 553,170 361,978 24,581,709

Salaries, wages and employee benefits 1,471,836 1,837,722 1,592,794 1,514,622 1,348,321 397,909 77,200 8,240,404Interest on long-term debt - - 71,684 - 78,140 115 - 149,939Materials and supplies 667,481 488,724 1,821,610 1,347,810 1,081,809 143,163 35,651 5,586,248Contracted services and general services 122,552 3,659,058 399,410 549,719 - 30,900 110,000 4,871,639Rents and financial expenses 28,282 5,213 22,802 9,875 9,464 5,343 - 80,979External transfers 17,800 197,584 - - - - - 215,384Amortization 156,670 271,509 2,772,308 937,476 455,390 17,374 - 4,610,727

2,464,621 6,459,810 6,680,608 4,359,502 2,973,124 594,804 222,851 23,755,320

NET REVENUES (EXPENDITURES) $ 771,275 $ 2,228 $ (2,465,433) $ 2,048,964 $ 371,862 $ (41,634) $ 139,127 $ 826,389


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SCHEDULE 4 - CONSOLIDATED SCHEDULE OF RECONCILIATION OF FINANCIAL PLAN TO THE BUDGETYEAR ENDED 2020

OPERATINGBUDGET

CAPITALBUDGET

RESERVES AND

RESERVE FUNDS

TANGIBLECAPITAL

ASSETADJUSTMENTS

NAPANEEBUSINESS

IMPROVEMENT ELIMINATIONS PSAB BUDGETREVENUES

Municipal taxation $ 10,832,053 $ - $ - $ - $ 76,800 $ - $ 10,908,853Taxation from other governments 1,400,708 - - - - - 1,400,708User fees and sale of goods and services 9,025,451 - - - - - 9,025,451Government Transfers

Government of Canada 10,695 - - - - - 10,695Province of Ontario 1,811,816 - - - - - 1,811,816Other Municipalities 972,701 - - - - - 972,701Other 11,000 - - - - - 11,000

Investment income 225,000 - - - - - 225,000Penalty and interest on taxes 495,000 - - - - - 495,000Donations 21,000 - - - - - 21,000Miscellaneous 32,100 - - - - - 32,100

24,837,524 - - - 76,800 - 24,914,324

EXPENDITURESCurrent

General government 2,480,592 - - 164,658 - - 2,645,250Protection services 6,868,893 - - 290,619 - - 7,159,512Transportation services 3,615,719 - - 2,756,616 - - 6,372,335Environmental services 4,636,263 - - 1,051,570 - - 5,687,833Recreational and cultural services 2,763,914 - - 466,502 - - 3,230,416Planning and development 414,347 - - 11,194 161,298 - 586,839Health services 184,810 - - - - - 184,810

CapitalGeneral government - 200,000 - (200,000) - - -Protection services - 380,000 - (380,000) - - -Transportation services - 2,443,450 - (2,443,450) - - -Environmental services - 2,579,000 - (2,579,000) - - -Recreational and cultural services - 528,800 - (528,800) - - -

20,964,538 6,131,250 - (1,390,091) 161,298 - 25,866,995

NET REVENUES/(EXPENDITURES) 3,872,986 (6,131,250) - 1,390,091 (84,498) - (952,671)

OTHER INCOME AND EXPENSESRELATED TO CAPITAL

Municipal taxation - 694,000 - - - - 694,000Taxation from other governments - - - - - - -Government transfers

Canada - 482,103 - - - - 482,103Ontario - 705,166 - - - - 705,166

Development charges - 330,000 - - - - 330,000- 2,211,269 - - - - 2,211,269

FINANCING AND TRANSFERSDebt repayment (556,433) - - 556,433 - - -Transfers from (to) other funds (3,316,553) 3,919,981 (603,428) - - - -

(3,872,986) 3,919,981 (603,428) 556,433 - - -

ANNUAL SURPLUS (DEFICIT) $ - $ - $ (603,428) $ 1,946,524 $ (84,498) $ - $ 1,258,598


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2020

Consolidated Financial

Statements Highlights

Presented by:

The Corporation of the Town of Greater Napanee


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Disclaimer

All information provided in the following slides is for internal

management discussion purposes only. The information

provided is general in nature or excerpts from the audited

consolidated financial statements. This information on its

own, may be taken out of context and/or may not be

suitable for your needs.


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Discussion Topics

➢ Statement of Financial Position

➢ Statement of Operations and Accumulated Surplus

➢ Results for the year

➢ Accumulated Surplus

➢ Reserves and reserve funds

➢ Questions or Comments


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Statement of Financial Position

2020 2019

Financial Assets $ 27.5M $ 23.3M

Liabilities 15.1M 15.3M

Net Financial Asset 12.4M 8.0M

Non Financial Assets 116.2M 117.9M

Accumulated Surplus $128.6M $125.9M


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Consolidated Statement of Operations and Accumulated Surplus

Budget 2020 2019

Revenue 24,774,879$ 24,978,425$ 24,581,709$

Expenditures 25,866,995 25,045,265 23,755,320

Income (loss) from operations (1,092,116) (66,840) 826,389

Other income related to capital 2,211,269 2,725,029 3,828,959

Annual Surplus 1,119,153 2,658,189 4,655,348

Accumulated surpus, beginning of year 125,975,385 125,975,385 121,320,037

Accumulated surplus, end of year 127,094,538$ 128,633,574$ 125,975,385$


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Results for the yearBudget 2020

Operating

Revenue $ 24,774,879 $ 24,978,425

Expense 25,866,995 25,045,265

Income from Operations (1,092,116) (66,840)

Budget Adjustments for PSAB

Amortization 4,747,339 4,747,339

Adjusted Income from Operations 3,655,223 4,680,499

Capital

Revenue 2,211,269 2,725,029

Expense 6,131,250 3,695,161

(3,919,981) (970,132)

Other

Proceeds from Long Term Debt - -

Changes in Other Financial Position Items (556,433) 569,919

Changes in Reserves 292,873 (9,756,361)

Change in Capital Funds (371,682) (355,422)

(635,242) (9,541,864)

Surplus (Deficit) $ (900,000) $ (5,831,497)


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ACCUMULATED SURPLUS (FS, Note 12)

Change 2020 2019

Equity in tangible capital assets (1,909,872)$ 115,574,526$ 117,484,398$

Less: related debt 556,433 (4,243,290) (4,799,723)

(1,353,439) 111,331,236 112,684,675

Capital projects 355,422 (3,559,732) (3,915,154)

Reserve and reserve funds 9,756,361 21,051,492 11,295,131

Amounts to be recovered

Landfill closure and post closure costs (36,859) (108,065) (71,206)

Employee costs (231,799) (431,375) (199,576)

Unrestricted Surplus

Town of Greater Napanee (5,841,247) 303,162 6,144,409

Napanee Business Improvement Area 9,750 46,856 37,106

2,658,189$ 128,633,574$ 125,975,385$


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Reserves & Reserve Funds = $21 million

Reserves:

Acquisition of capital assets

& debt reduction 1,141,437$

Arena reserve 277,873

Arena user surcharge 634,366

Assessment Appeals 329,861

Conservation authority 65,005

Election 40,000

Accessibility reserve 56,000

Parkland 8,690

Physician recruitment 211,000

Policing 19,688

Recreation & cultural 77,936

Safe recovery act 446,400

Strategic plan 100,000

Working capital 7,311,429

10,719,685$


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Reserve Funds

Napanee Hydro Electric

Comission Proceeds 3,680,009$

Capital improvement fund 855,094

Emergency operating fund 1,641,823

Maintenance reserve fund 4,154,881

10,331,807$

Reserves & Reserve Funds


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Questions or Comments?


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Liz Cook - Lennox and Addington Seniors O

utreach Services presentation r... of 222

TOWN OF GREATER NAPANEE REGULAR SESSION OF COUNCIL

Minutes of Meeting Held Virtually via Zoom August 17, 2021 at 7:00 PM

PRESENT: Mayor Marg Isbester in the Chair, Deputy Mayor Max Kaiser, Councillor

Ward 1 John McCormack, Councillor Ward 2 Terry Richardson, Councillor Ward 3 Dave Pinnell, Jr., Councillor Ward 4 Bob Norrie, Councillor Ward 5 Ellen Johnson

ABSENT:

CALL TO ORDER Mayor Isbester called the electronic meeting to order at 7:09 p.m. and advised that the meeting is being live streamed on the Town’s YouTube Channel.

ADOPTION OF AGENDA RESOLUTION #383/21: Pinnell, Norrie, Carried That the Agenda of the Regular Session of Council dated August 17th, 2021 be adopted as presented.

CARRIED.

DISCLOSURE OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF

Mayor Isbester declared a conflict of interest with Agenda Item No. 12.9 - Infrastructure Services (Development Services) - Millhouse Yards Phase 1 Final Approval, due to a possible indirect pecuniary interest of a family member.

PUBLIC MEETING UNDER THE PLANNING ACT

Resolution to Convene Public Meeting RESOLUTION #384/21: McCormack, Johnson That the Public Meeting under the Planning Act is hereby convened.

CARRIED.

Zoning By-law Amendment Application PLZACO 2021 053

Applicant: Howard Vaughan

Legal: Part of Lot 7, Concession 7 in the former Township of Richmond, now in the Town of Greater Napanee

Address: 373 Buttermilk Falls Road

Effect: To prohibit the keeping of livestock in the existing barn at 373 Buttermilk Falls Road in order to fulfill a condition of consent applications PLCOR 2020 062, PLCOR 2020 063, PLCOR 2020 064 and PLCOR 2020 065

Michael Nobes spoke to the application. All advertising requirements for this meeting were met and comments from Paul Sammon were included in agenda. There was no one in attendance from the public to speak to the application.

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Regular Session of Council - August 17, 2021 of 222

REGULAR SESSION OF COUNCIL - August 17, 2021 Minutes

Resolution to Adjourn Public Meeting RESOLUTION #385/21: Pinnell, McCormack That the Public Meeting under the Planning Act is hereby adjourned.

CARRIED.

PRESENTATIONS

None.

DEPUTATIONS

Kevin Cropper - Ice Cream Mobile Truck at Napanee Conservation Park.

Mr. Cropper provided an overview of his request to use a mobile ice cream truck at Napanee Conservation Park beginning in May 2022. He discussed size of cart, security, signage, and electrical needs.

RESOLUTION #386/21: Kaiser, Norrie

That council note and receive,

And further That, Kevin Cropper contact the Deputy CAO to explore the requirements needed before setting up and to establish a suitable lease agreement.

ADOPTION OF MINUTES

Special Session of Council - July 19, 2021 RESOLUTION #387/21: McCormack, Richardson That the minutes of the Regular Session of Council dated July 19, 2021 be adopted as presented.

CARRIED.

Regular Session of Council - July 26, 2021 RESOLUTION #388/21: Pinnell, Johnson That the minutes of the Regular Session of Council dated July 26, 2021 be adopted as amended with the addition of Mayor Isbester’ s declaration of a conflict of interest for agenda items 12.7 and 13.3.

CARRIED.

CORRESPONDENCE

CORRESPONDENCE FOR INFORMATION RESOLUTION #389/21: Kaiser, Pinnell That the Correspondence for Information items dated August 17, 2021 be received, And That, items five, six and seven be highlighted for discussion.

CARRIED.

RESOLUTION #390/21: Kaiser, Johnson

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That Council receive correspondence from Sherry Batten, CAO/Clerk Manager, Town of Laurentian Hills; support for Provincial funding for the ongoing maintenance and preservation of abandon cemeteries dated July 26, 2021, And That, Council direct staff to provide letters of support.

CARRIED.

RESOLUTION #391/21: Kaiser, Pinnell That Council direct staff to send a letter of support of a special occasion permit to Sandy Eastlake, Napanee & District Curling Club regarding events being held August 29th, 2021 and September 17th, 2021.

CARRIED.

CORRESPONDENCE FOR ACTION

Luke Revell re: Application for Exemption to Noise By-law RESOLUTION #392/21: Kaiser, Norrie That Council receive for information the correspondence from Luke Revell requesting an exemption to the Town's Noise By-law between 5:00 p.m. September 18, 2021 until 1:00 a.m. on September 19, 2021 for amplified music for a wedding to be held at 175 Denridge Rd. Napanee, ON; And That, Council provide an exemption.

CARRIED.

Richard Dodds re: Application for Exemption to Noise By-law RESOLUTION #393/21: Pinnell, Richardson That Council receive for information the correspondence from Richard Dodds requesting an exemption to the Town's Noise By-law between 7:30 p.m. and 11:00 p.m. on August 21, 2021 for amplified music for an event to be held at 353 South Shore Rd. Hay Bay, ON; And That, Council provide an exemption.

CARRIED.

Ontario Coalition for Better Child Care - October 21, 2021 Proclamation RESOLUTION #394/21: Richardson, Johnson That Council receive for information the correspondence dated July 13, 2021; And further; Whereas years of research confirms the benefits of high-quality childcare for young children's intellectual, emotional, social and physical development and later life outcomes; and Whereas childcare promotes the well-being of children and responds to the needs of parents and the broader community by supporting quality of life so that citizens can fully participate in and contribute to the economic and social life of their community; and Whereas trained and knowledgeable Early Childhood Educators and childcare staff are the key to quality in early learning and childcare programs and champions for children; Therefore, Be It Resolved that October 21, 2021 be designated the 21st annual "Child Care Worker & Early Childhood Educator Appreciation Day" in recognition of the

Page 3 of 10



education, dedication, and commitment of childcare workers to children, their families and quality of life of the community.

CARRIED.

Kelly Schermerhorn - Virtual Terry Fox Run 2021 - August 4, 2021 RESOLUTION #395/21: McCormack, Kaiser That Council receive for information the Virtual Terry Fox Run 2021 correspondence dated August 4, 2021 regarding event taking place September 19th 2021; And That, Council provide direction to approve and advertise.

CARRIED.

Dan Shaw - Bylaw Enforcement - August 5, 2021 RESOLUTION #396/21: Kaiser, Pinnell That Council note and receive for information the correspondence dated August 5, 2021.

CARRIED.

UNFINISHED BUSINESS

None.

COMMITTEE REPORTS

Municipal Heritage Committee - June 10, 2021 RESOLUTION #397/21: Richardson, McCormack That Council receive and adopt the minutes of the Municipal Heritage Committee dated June 10, 2021.

CARRIED.

Business Improvement Area RESOLUTION #398/21: Norrie, Johnson That Council receive and adopt the minutes of the Business Improvement Area dated April 14, 2021, April 21, 2021, May 19, 2021, June 14, 2021, June 16, 2021, June 24, 2021, and July 21, 2021 as presented.

CARRIED.

ACTIVITY REPORTS

Administration -There were no comments regarding this report.

Infrastructure Services - Wayne Taylor provided update regarding Oliver Side Road Bridge. Striving for November completion date.

Emergency Services - Discussion regarding the fire pump at Sandhurst Shores and the flow of water at the Richmond Trailer Park. Mayor Isbester advises an increase in communication and investigation in the possibility of new water tower.

Financial Services - There were no comments regarding this report.

Community and Corporate Services - Brandt Zatterberg provided an update on Bang the Table software; one goal is to use software to aid in the budget process and allow the community to stay engaged.

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RESOLUTION #399/21: Kaiser, Johnson That Council note and receive all Activity Reports (Agenda items 11.1 thru 11.5).

CARRIED.

STAFF REPORTS

Financial Services- Public Engagement Session

Paul Dowber spoke to the report. Using Bang the Table software, the goal is to engage the public during the budget process. The intention is to keep in informal, and not be a council meeting; Council would view on YouTube.

RESOLUTION #400/21: Kaiser, McCormack That Council note and receive for information the 2022 Budget Public Engagement Session; And further, That Council provide direction to staff to proceed with all suggestions as presented in report, including the timing of the engagement session, format of the information flow from the public to the upcoming 2022 budget meetings and the degree to which Council will be involved at the engagement sessions.

CARRIED.

Financial Services - Q2 Financial Update Report

Paul Dowber was present to answer any questions if necessary. There were no questions.

RESOLUTION #401/21: Norrie, Kaiser That Council notes and receives for information the 2021 Q2 Budget vs Actuals report.

CARRIED.

Financial Services - Purchase Card Report

Paul Dowber spoke to the report and will report back September 14th with procurement policy that these are related to.

RESOLUTION #402/21: Pinnell, McCormack That Council receives for information the Purchase Cards report.

CARRIED.

Emergency Services - Fire Invoice issued CR 12 Mr. D. Lamb

Deputy Chief Hammond and Chief Koenig were present and responded to questions.

RESOLUTION #403/21: Kaiser, Pinnell That Council receive for information the response to questions raised during the July 26th meeting with respect to why the fires on County Road 12 property of Mr. Lamb were extinguished and a cost recovery invoice issued; And further, That Council approve the following recommendations; that the invoice issued to Mr. Lamb for the suppression activities be upheld with no reduction in cost and that the portion of the invoice for mutual aid partners be paid in full.

CARRIED.

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Emergency Services - Replacement Pumper/Tanker RFT 2021-18

Deputy Chief Hammond spoke to report and provided an overview. Clarification that the tanker is the larger size and if there is a problem with the present tanker before purchasing a new one, Fire and Emergency Services can borrow from “our neighbours”.

RESOLUTION #404/21: McCormack, Johnson That Council receive for information this summary report and recommendation of the RFT 2021-18 process undertaken by municipal staff, as having met the goals and principles of the municipal procurement policies forming part of Town of Greater Napanee By-Law #05-05, as amended; And further, That Council award the successful Tender as follows: 1) RFT #2021-18 to Carrier Centers and authorize the purchase of one (1) new

Pumper Tanker for Emergency Services at a cost of $369,457.80 (taxes included $417,487.31).

CARRIED.

Infrastructure Services - Water and Sewer Needs Study

Todd Harvey attended to speak to report and provided overview.

RESOLUTION #405/21: Pinnell, Richardson That Council receive for information the Infrastructure Services – Water & Sewer Needs Study Report; And further, That Council approve award of the work to GHD Limited for a fee of $37,719, excluding HST, to be paid from the Impost Reserve Account.

CARRIED.

Infrastructure Services (Public Works) - Centre Street Boat Launch Parking 2021

Wayne Taylor provided information about the report and Council contemplated the options.

RESOLUTION #406/21: Richardson, Norrie That Council receive for information the Infrastructure Services (Public Works) – Centre Street Boat Launch Historical and Suggested Parking assignment Report; And That, Council authorize “Concept C” temporary parking assignment to be implemented by staff. And That, Council direct staff to develop baseline criteria for parks plans variations and to seek out quotations for Parks Master Plans/public consultations in relation to strategic priorities (Waterfront Specific or Municipal Wide) which would be brought before council for consideration.

CARRIED.

Infrastructure Services - Resolution #529/15 (18 Water Street). RESOLUTION #407/21: Kaiser, Johnson

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That Council receive for information the Infrastructure Services – Resolution #529/15 (18 Water Street) Report; And That, Council direct Staff to demolish 18 Water Street by utilizing Option D.

CARRIED.

Infrastructure Services (Development Services) - Millhouse Yards Phase 1 Final Approval.

Mayor Isbester left meeting at 9:08 p.m. due to a conflict of interest. James Selkirk entered the meeting 9:08 p.m. Michael Nobes provided information regarding the report and advised that Bob Clark of Clark Consulting will come to Council at a later date to discuss options available related to the oversizing. James Selkirk had no comments other than his appreciation of Council. Mayor Isbester rejoined the meeting at 9:19 p.m. and James Selkirk left at 9:19 p.m.

RESOLUTION #408/21: Richardson, Norrie That Council receive for information the Infrastructure Services (Development Services) Millhouse Yards Phase 1 Final Approval Report; And further, that Council grant Final Approval for Phase I of Subdivision Application PLSUBF 2020 073; And That, Council authorize the Deputy Mayor and Acting Clerk to execute the subdivision agreement on behalf of the municipality; And That, Council authorize staff to bring forward a road naming by-law to a future meeting to rename Angila Street to Heritage Park Drive.

CARRIED.

Community & Corporate Services - Land Sales

Brandt Zatterberg presented report.

RESOLUTION #409/21: Kaiser, Richardson That Council review the attached documents and direct Staff to continue going forward with the Request for Expressions of Interest (REOI) REOI # 2020- CAO/ADMIN Vendor of Record for Municipal Real Estate Transactions (February 2020) and Real Estate Pilot Project Report – Draft Scope of Work (January 2021).

CARRIED.

Community & Corporate Services - Affordable Housing Partnership with Lennox and Addington County.

Brant Zatterberg reintroduced report and responded to questions.

RESOLUTION #410/21: Richardson, Norrie That Council receive for information the correspondence from Connor Dorey, Social Services, Prince Edward-Lennox and Addington Social Services and the July 20, 2021 report to County Council titled Canada Ontario Community Housing Initiative (COCHI)/Ontario Priorities Housing Initiative (OPHI).

Page 7 of 10



And That, Council considers the request from the County and direct staff to explore further and provide more information that will enable us to continue engagement with the County and to have a resolution prior to October 31, 2021

CARRIED.

Community & Corporate Services - Matt Raham BIA Board of Directors Resignation August 2021 RESOLUTION #411/21: Norrie, Kaiser That Council receive with regret the correspondence from Matt Raham dated August 6, 2021 resigning from the BIA Board of Directors; And further that Council direct the Mayor to send a letter to Mr. Raham thanking him for his community service to the BIA.

CARRIED.

BY-LAWS

None.

NEW BUSINESS

Councillor Norrie introduced the Officer Beard dedication on August 27th ,2021. Road closure does not involve county roads.

RESOLUTION #412/21: Norrie, McCormack That Council close John St between Dundas St and the exit road from Market Square from 7:00 a.m. until 12:00 p.m. on Friday August 27, 2021 for a dedication to a fallen Napanee Police Officer 100 years ago.

CARRIED.

NOTICE OF MOTIONS

None.

STATEMENTS BY MEMBERS

Councillor McCormack requested Council be notified when support letters that Council direct Staff to provide are sent.

Councillor Richardson expressed disappointment that the Town of Greater Napanee did not have a delegation at the AMO conference to discuss detention centre costs with the solicitor general.

CLOSED SESSION

Adjourn to Closed Session pursuant to Section 239 of the Municipal Act in order to discuss personal matters about identifiable individuals and third-party information supplied in confidence to the municipality. RESOLUTION #413/21: Kaiser, Pinnell

Page 8 of 10



That Council resolve itself into closed session in order to discuss personal matters about identifiable individuals and third-party information supplied in confidence to the municipality.

CARRIED.

RESOLUTION #414/21: Kaiser, McCormack That Council continue past 10:00 p.m.

CARRIED.

Rise and Report from Closed Session dated August 17th, 2021 RESOLUTION #415/21: Pinnell, McCormack That Council rise and report from closed session; and further that all recommendations made within closed session be hereby adopted. Mayor Isbester reported that during Closed Session;

• Council adopted the Minutes of the Closed Session of Council dated July 19th, 2021, July 26th, 2021, July 29/30th 2021 and August 5th, 2021;

• Meeting of July 29/30th 2021, Council received information and participated in interviews and gave the human resources consultant direction to proceed.

• Meeting of August 5th, 2021, Council received information and participated in interviews and gave the human resources consultant direction.

• Meeting of August 17th, 2021, Council received information regarding personal matters about identifiable individuals and third-party individuals’ information, supplied in confidence to the municipality, and gave staff direction.

CARRIED.

CONFIRM PROCEEDINGS RESOLUTION #416/21: Kaiser, Richardson That By-law No. 2021-41 being a By-law to Confirm the Proceedings of Council at its Regular Session held August 17, 2021 be read a first and second time and finally passed and that the Mayor and the Clerk sign the same and affix thereto the seal of the Corporation.

CARRIED.

ADJOURNMENT RESOLUTION #417/21: Pinnell, McCormack That the meeting does hereby adjourn at 10:14 p.m.

CARRIED.

Marg Isbester, Mayor Katy Macpherson, Deputy Clerk

Page 9 of 10



Page 10 of 10


Summary of Correspondence for Information Items

September 14th, 2021

This summary contains correspondence that was received by the municipality from outside organizations, which were broadcast to all municipalities, or which were addressed generally to the Town. This includes requests for support for resolutions.

All correspondence addressed to an individual member of council or to the whole council from a resident are placed in the appropriate council mailbox. These items of correspondence are not added to the agenda unless requested by a member of council.

Correspondence for Action items are pieces of correspondence that were received by Town staff that require further council attention or action. Members of Council may request items be added to the agenda for consideration.

1. Association of Municipalities Ontario (AMO)a. AMO WatchFile - August 12, 2021b. AMO WatchFile - August 19, 2021c. AMO Policy Update - MTO Regulatory Amendments, Changes to

Municipal Act 2001, Rowan’s Law Timing - August 19, 2021d. AMO WatchFile - August 26, 2021e. AMO Policy Update - Proof of Vaccination Certificates - September 1,

2021f. AMO WatchFile – September 2, 2021

2. Bryan Martin, CAO/Clerk-Treasurer, Township of South Algonquin - Support for Fort Erie’s Resolution regarding continuing the exemption of Capital Gains on Primary Residences – August 6, 2021

3. Jim Aitcheson, Warden, County of Perth – Resolution regarding Relationship with MPAC – August 16, 2021

Correspondence for Information items dated September 14, 2021 of 222

8/26/2021 AMO Policy Update - Draft Resolution for Municipal Recognition of September 30th as National Day for Truth and Reconciliation, New M…

https://amo.informz.ca/informzdataservice/onlineversion/ind/bWFpbGluZ2luc3RhbmNlaWQ9MTI4Njk2NiZzdWJzY3JpYmVyaWQ9OTI3MjQ2MzY0 1/2

AMO Update not displaying correctly? View the online version Add [email protected] to your safe list

August 23, 2021

AMO Policy Update – Draft Resolution for MunicipalRecognition of September 30th as National Day for

Truth and Reconciliation, and New MunicipalResource Materials

Recent discoveries of remains and unmarked graves across Western Canada haveled to increased calls for all levels of government to immediately address therecommendations in the Truth and Reconciliation Commission’s (TRC) Calls to Action.

All Canadians and all orders of government have a role to play in reconciliation. TheTRC’s 94 Calls to Action are addressed primarily to the federal, provincial, andterritorial governments but also to municipal governments, the corporate sector, andthe broader Canadian society. They cover a wide range of government responsibilitiesincluding child welfare, education, language and culture, health, justice,commemoration, museums and archives, training for public servants, and a fewspecific initiatives related to reconciliation.

At the August 14th Board Meeting, the AMO Board of Directors approved two resourcepapers to assist municipal councils’ efforts to support Truth and Reconciliation.

The first resource paper provides an overview of the Truth and ReconciliationCommission’s (TRC’s) Calls to Action that municipal governments can addressthemselves.

The second resource paper provides ideas and options for what municipal leaders,councils can do to better support and engage Indigenous residents and neighbours atthis time.

These AMO resource papers are meant to be organic and to be revised/updated whenappropriate and more municipal resource materials are available.

Municipal Recognition of September 30th as National Day for Truthand Reconciliation – Draft Resolution

The AMO Board of Directors encourages members to recognize September 30th asNational Day for Truth and Reconciliation (also known as Orange Shirt Day with theadoption of the following resolution:

Recognition of September 30th as National Day for Truth and Reconciliati... of 222

https://www.amo.on.ca/sites/default/files/assets/DOCUMENTS/Reports/2021/MunicipalResourceTruthReconciliation20210823.pdf

https://www.amo.on.ca/sites/default/files/assets/DOCUMENTS/Reports/2021/WhatMunicipalLeadersCanDoToBetterSupportIndigenousResidentsNeighboursAtThisTime20210823.pdf

8/26/2021 AMO Policy Update - Draft Resolution for Municipal Recognition of September 30th as National Day for Truth and Reconciliation, New M…

https://amo.informz.ca/informzdataservice/onlineversion/ind/bWFpbGluZ2luc3RhbmNlaWQ9MTI4Njk2NiZzdWJzY3JpYmVyaWQ9OTI3MjQ2MzY0 2/2

WHEREAS the Truth and Reconciliation Commission released its final report on June2, 2015, which included 94 Calls to Action to redress the legacy of residential schoolsand advance the process of Canadian reconciliation;

AND WHEREAS the recent discoveries of remains and unmarked graves acrossCanada have led to increased calls for all levels of government to address therecommendations in the TRC’s Calls to Action;

AND WHEREAS all Canadians and all orders of government have a role to play inreconciliation;

AND WHEREAS Recommendation #80 of the Truth and Reconciliation Commissioncalled upon the federal government, in collaboration with Aboriginal peoples, toestablish, as a statutory holiday, a National Day for Truth and Reconciliation to ensurethat public commemoration of the history and legacy of residential schools remains avital component of the reconciliation process;

AND WHEREAS the Federal Government has announced September 30th, 2021, asthe first National Day for Truth and Reconciliation (National Orange Shirt Day) and astatutory holiday;

THEREFORE, BE IT RESOLVED THAT the Council of the [municipality] of[placename] does hereby commit to recognizing September 30th, 2021, as theNational Day for Truth and Reconciliation (National Orange Shirt Day) by sharing thestories of residential school survivors, their families, and communities.

AMO's COVID-19 Resources page is being updated continually so you can find criticalinformation in one place. Please send any of your municipally related pandemicquestions to [email protected].

*Disclaimer: The Association of Municipalities of Ontario (AMO) is unable to provide any warranty regarding the accuracy or completenessof third-party submissions. Distribution of these items does not imply an endorsement of the views, information or services mentioned.

Please consider the environmentbefore printing this.

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Lieutenant Colonel Harry Babcock(Ontario) Branch 13?

26 MiliStreet East, Napanee, Ontario K7R1H2613—3S4-S275

August 19, 2021

Mayor Marg IsbesterTown of Greater Napanee124 John StreetNepanee, OntarioK7R 3L4

Dear Mayor Isbester:

Re: Legion Week Segtenaher 19-25, 2021

We extend greetings from the Executive and members of the Royal Canadian Legion Branch137. We are writing to petition the Town Council of Greater Napanee to recognize the week ofSeptember 19-25 as Legion Week in Greater Napanee.

We would ask that your Council officially declare that week as Legion Week with it appearing inthe local media.

As a non-profit organization, the Legion has assumed the responsibility of maintaining thetradition of Remembrance of those men and women who served our country in past and presentcon?icts, so Canadians can live in the freedom that we enjoy today. Legion Week is a time forour community to recognize and support our Veterans and celebrate the 1001*‘Anniversary of theRemembrancePoppy in Canada.

Thank you for your consideration of this request.

Yours in cornradeship,

tee/MKathy GardnerPresidentRCLBranch 137Napanee

"Sa!uting the Past; Welcoming the Future"

Proclamation of Legion Week- September 19-25, 2021 of 222

Proclamation

Request:

'Light it Up Blue' Canadian Autism

Awareness Month - October 1-31,

2021.

Proclamation of Canadian Autism Awareness Month- October 1-31, 2021 of 222

Dear Mayor Marg Isbester & Council Members, On behalf of the ASD (Autism Spectrum Disorder) community in Lennox & Addington County, LACAN is submitting a request for the annual proclamation to support CanadianAutismAwarenessMonth-OctoberCampaign by the the Town of Napanee in Lennox & Addington County. The CanadianAutism Awareness Month is held during the month of October each year to bring awareness, acceptance and inclusion for all individuals living with an invisible disability. This also serves as a time to open a conversation in our community to share stories and educate those individuals who may not have had an opportunity to understand this complex disorder. Autism Network LAC - LACAN strives for awareness, acceptance and inclusion in our community for all abilities. We are a positive, forward-thinking group with an open dialogue looking to bring compassion and education to our future leaders. Furthermore, we are looking to work together and brainstorm in order to help our community grow in positive ways. Many families in our community struggle with the feeling of lack of inclusion, as I know I have personally felt in the past. It is for this reason, I am advocating for this campaign to share acceptance and awareness for autism in our great community.. Making our community more aware of autism will hopefully shine a light into the lives of those living with invisible disabilities and the unique strengths they have to offer our communities. Our vision is to lead our community to more inclusive events while bringing our community closer with the use of different abilities. Pleaseconsidercontinuingthefollowingisyear2021–October:

Ø Downtown core having blue - lights. Ø Strathcona Paper Centre signage – Autism Awareness Month

support. ‘Light it up Blue’ Ø Encouraging community members to show their support by

sporting a blue porch light.


Ø Spring Side Park waterfall light set to blue for month of October. Ø Encourage business members to shine a blue light in their shop in

show support. Ø Banners to be displayed in Spring-side park to compliment the

blue lights on the falls. Autism Network LAC thanks the great people with the Town of Greater Napanee, who were able to place the "light it up blue for autism awareness" sign displayed at the Strathcona Paper Centre last October as many families contacted LACAN with their excitement and expressed feelings of inclusion. This valuable tradition we are proud the Town of Greater Napanee has chosen to support in the past has brought a light to this important disorder and the many people affected by it in our community. Thank you for your consideration moving forward into 2021/2022. Sincerely, MandyStapleyMandy Stapley Director – CEO Autism Network LAC – LACAN E-mail: [email protected] Website: www.lacautismnetwork.com Mobile : (613) 532-0465 Registered Charity #: 741786677RR0001 https://www.canadahelps.org/en/charities/lennox-addington-county-autism-network/


Education Development Charges

WHEREAS the French Public School Board for our region (Conseil des écolespubliques de l'Est de l'Ontario) is proposing to impose a Development Charge of $300-$333 per new Residential Unit built in the Town of Greater Napanee.

AND WHEREAS, the Board imposes an education development charge against land undergoing Residential Development or redevelopment in the southern portion of the Lennox and Addington County if the Residential Development or redevelopment requires any one of those actions set out below and described in section 257.54 of the Education Act:

• the passing of a zoning by-law or an amendment to a zoning by-law

• the approval of a minor variance

• a conveyance of land to which a by-law passed under the Planning Act applies

• the approval of a plan of subdivision

• a consent under section 53 of the Planning Act

• the approval of a description under the Condominium Act, 1998

• the issuing of a building permit under the Building Code Act, 1992, in relation to a building or structure

AND WHEREAS, An Education Development Charge will be collected once in respect of a particular development, but does not prevent the application of the board’s by-law to future development of the same property;

AND WHEREAS the Council of the Town of Greater Napanee has expressed concerns with this charge and its negative impact on the issue of alleviating the affordable housing crisis;

AND WHEREAS Greater Napanee has a very minimal number of eligible electors that support this Board;

AND WHEREAS the Board has failed to adequately communicate its intentions locally;

AND WHEREAS there are no schools Greater Napanee and these funds are designed to pay for a school in the City of Kingston;

NOW THEREFORE the Council of The Town of Greater Napanee call on the Minister of Education, the Honourable Steve Lecce, to rescind approval of the proposed Development Charges as they drastically overreach the principle of local growth paying for local services;

Education Development Charges of 222

AND FURTHER that the Minister initiate a review of the Legislation that allows School Boards this opportunity to tax those that receive limited or no benefit;

AND FURTHER that this Resolution be shared with ROMA, the other unfairly impactedThe Town of Greater Napanee and our Member of Provincial Parliament Daryl Kramp.

Education Development Charges of 222

OTHERS PRESENT: Brianna Clement, Community Engagement Clerk

CALL TO ORDERMeeting Called to order at 6:32 p.m.

ADOPTION OF AGENDARecommendation: Armagost & MaitlandThat the agenda of the Municipal Heritage Committee dated July 22, 2021 behereby adopted.

ADOPTION OF MINUTESRecommendation: Cowhey & BestThat the minutes of the Municipal Heritage Committee dated June 10, 2021 arehereby approved.

ITEMS FOR DISCUSSION

(i) ADMINISTRATIVEITEMS

Nothing at this time

was had for ideas for small projects that the Committee cI I ‘llbe developed and sent to Council for appro

Brianna Clement ask for Heritage Committee’s support in enhancing the Historic Walking Tour aspart of the Town-Bay of Quinte partnership project for experiential tourism. Noted that theCommittee could find a local storyteller/historian that may be interested in giving guided tours of thewalk to make it more interactive. Could work with places on the tour to stop and explore thebuildings / have lunch etc to make the tour more interactive than just reading and walkingindividually. Brianna willdiscuss ideas with Bay of Quinte and include Heritage Committee inplanning where/when necessary.

TOWN OF GREATER NAPANEEMUNICIPALHERITAGE COMMITTEE

Minutes of eeting Held July 22, 2021 at 6:30 PMOnline via Zoom

: Ashley Cameron, Mike Armagost, Sylvia Cowhey, Lisa Bird, Councillor Ward 2 TerryRichardson, Jen Best, Victoria

CouncillorRichardson noted that he and CouncillorNorrie are wanting to place a monument incommunity in honour of the 100 years of Constable Beard’s death. Itwas noted that once themonument is installed, it should be part of the Historic Walking Tour and that members of the

Page 1 of

(iii)Discussion of Heritage Committee as Part of 1-Year Work Plan

HERITAGE AWARENESS AND

(ii) HERITAGE LISTINGSNothing at this time

Discussionyear work plan. A forma p an W

an work on as pval. Projects in

ABSENT: ----

art of the 1-

Municipal Heritage Committee - July 22, 2021 of 222

Heritage Committee

Jen Best brought forth the idea to showcase old photos at the Lennox & Addington County Museum& Archives. Research could be done to find old photos of houses in the community and/or familiesthat resided in the houses over the generations. Community outreach could be done to collect thesephotos as well. Ifenough photos are collected, Committee could reach out to the County Museum torun an exhibit to showcase the photos / stories behind them.

Mike Armagost brought forth the idea to research how the Committee could get the Grand Trunkrailway and bridge in downtown Greater Napanee on the historical registry or to give it somerecognition for historical significance. Research by the Committee willhave to be done to find a way

Recommendation: Armagost & BestThat Council authorize the Municipal Heritage Committee to move fonNard with its 1-year plan aspresented and make a call out to the community for those interested in having their house orproperty featured as part of the Historic Walking Tour. Further, the Committee willalso developcommunications to the community to let residents know that the Committee willaccept deeds, ol

dphotos or information on buildings or property that have heritage value in the community.

NEW BUSINESSGeneral Information SharingCommittee discussed ways to enhance Historic Walking Tour in addition to the Town/Bay of Quinteinitiative. It was noted that the walking tour has a lot of locations, with the hopes of adding more,and it may be better to break it down into two different tours i.e. East / West route or have differentoptions available i.e. 20 minute walking tour/ 1 hour walking tour.

NEXT MEETINGThe next Municipal Heritage Committee meeting willbe held on Thursday, August 26 at6:30 p.m. via Zoom

ADJOURN ENTRecommendation: Bird & BestThat the Municipal Heritage Committee meeting does hereby adjourn at 7:28 p.m.

D” a-9"

ling when a a e

Page 2 of

1 I.\.!O.u

Municipal Heritage Committee - July 22, 2021 of 222

Staff Report to Council To: Mayor Isbester and Members of Council

Date of Meeting: September 14th, 2021

Date Council Decision is Required: N/A

Prepared By: Andrew Girouard, Septic/ Environmental Coordinator

Presented By: Andrew Girouard, Septic/ Environmental Coordinator

Re: Infrastructure Services- Great Lakes St. Lawrence Cities Initiative – Annual General Meeting

Staff Recommendation: That Council receive for information the Infrastructure Services- Great Lakes St. Lawrence Cities Initiative- Annual General Meeting Report.

Financial Implications: Registration for the meeting (conference) was $28.16 per member. Mayor Isbester and Andrew Girouard attended the meetings.

Accessibility Implications: This report may be available in alternate format upon request.

Information Technology Implications: Upon review, there are no information technology implications.

Communications Implications: Upon review, there are no communications implications.

Background Information:At the May 25th, 2021 Council Meeting; Council passed a resolution for the Town to join the Great Lakes St. Lawrence Cities Initiative (The Initiative). Founded in 2003, the Initiative’s mission is to protect, restore, and promote the Great Lakes and St. Lawrence River to sustain the health and vitality of the communities that surround them.Since joining, Mayor Isbester and the Environmental Coordinator have had an introductory meeting with the Chair and Executive Director of the Initiative. On August 25th and 26th,2021 the Initiative held its annual general meeting (conference) virtually.

Infrastructure Services- Great Lakes St. Lawrence Cities Initiative – An... of 222

This year’s theme was climate change 2021 and beyond. Both Mayor Isbester and the Environmental Coordinator attended the 2-day conference.

Discussion:

Highlights of the conference included keynote addresses by Erin Brockovich and the Honourable former Prime Minister Mulroney. Erin Brockovich’s message was to address climate change now and stop putting it off for the next generation and to work together to move things forward. Prime Minister Mulroney spoke about making steady progress as “there are no home runs in this business”. He also stated that leaders and politicians need to be able to see around the corner of history.

Sessions spoke to predictive modeling for climate change, building climate change resiliency and dealing with the current impacts of climate change.

Some of the key messages that were taken away from the conference include: Considering environmental impacts of decisions internally and not solely relying

on other agencies. Thinking differently about shoreline protection. Green vs Grey spectrum solutions

(I.e., not always turning to armour stone as the first solution for shoreline protection).

Preparing storm water system for more frequent and intense storms including storm water harvesting and removing sediments.

Support for Bill 279 Environmental Protection Act Amendment. The amendment is to require the use of microplastics filters on washing machines. Whole house filters are also being considered.

The Initiative Committee reports were received including a report from the Mayors Commission on Water Equality and the Mayors Advisory Council on Coastal Resilience. Based on survey results the Council on Coastal Resilience has set the following 4 priorities: coordinated planning and solutions across the shoreline; education for communities and property owners; national and international engagement; more tools and complete data; and more supportive and accessible funding. Of note for Napanee is that the survey identified including and engaging with private landowners as an important part of moving forwarded.

The Conference was worthwhile, and staff look forward to continued involvement in the Initiative and putting lessons learned into action.

Council will be provided with access to the recorded sessions and materials from the conference once available.

Infrastructure Services- Great Lakes St. Lawrence Cities Initiative – An... of 222


Date: September 14th, 2021

Prepared By: Mike Dwyer, Manager of Public Works Tara Bruce, Infrastructure Services Administrative Assistant

Presented By: Mike Dwyer, Manager of Public Works

Re: Infrastructure Services – Purchasing of Winter Sand and Screenings for the 2021/2022 winter season

Staff Recommendation: That Council receive for information the Infrastructure Services – Purchasing of Winter Sand and Screenings for the 2021/2022 winter season report;

And further that Council accepts the Request for Proposals process undertaken by municipal staff, as having met the goals and principles of the municipal procurement policies forming part of Town of Greater Napanee By-Law #05-05, as amended;

And further that Council accepts the lowest delivered bid of winter sand material to Hay Bay Sand & Gravel for the Napanee Public Works yard (8321 County Road 2) and the Selby Public Works yard (1599 County Road 41).

And further that Council accepts the lowest delivered bid of limestone screenings to Morven Construction for the Napanee Public Works yard (8321 County Road 2) and the Selby Public Works yard (1599 County Road 41).

And further that Council accepts that the quantities and total cost may vary due to weather conditions during winter operations, until March 31 2021.

Financial Implications: The costs associated with the supply and delivery of winter sand and screenings are included in the 2021/2022 Public Works Operating Budget.


Infrastructure Services – Purchasing of Winter Sand and Screenings for t... of 222


Energy Management Implications: Upon review, there are no energy management implications.

BackgroundThe Request for Proposal tender closed on Thursday, September 2nd at 3:00 pm and one (1) tender was received for supply and delivery, of winter sand. Three (3) tenders were received for the supply and delivery of screenings to both Public Works yard locations.

The following are the tender results:

Supply and Delivery of Sand 2,000 Tonnes - Napanee Yard (8321 County Road 2)1,000 Tonnes - Selby Yard (1599 County Road 41)

Supplier Rate/Tonne Subtotal HST Total

Hay Bay Sand & Gravel $ 15.00 $ 30,000.00 $ 3,900.00 $ 33,900.00 Hay Bay Sand & Gravel $ 15.00 $ 15,000.00 $ 1,950.00 $ 16,950.00

Supply and Delivery of Screenings2,000 Tonnes - Napanee Yard (8321 County Road 2)


Morven Construction $ 10.25 $ 20,500.00 $ 2,665.00 $ 23,165.00 Lafarge $ 13.50 $ 27,000.00 $ 3,510.00 $ 30,510.00 R.W. Tomlinson $ 10.59 $ 21,180.00 $ 2,753.40 $ 23,933.40

Supply and Delivery of Screenings1,000 Tonnes - Selby Yard (1599 County Road 41)


Morven Construction $ 11.75 $ 11,750.00 $ 1,527.50 $ 13,277.50 Lafarge $ 13.50 $ 13,500.00 $ 1,755.00 $ 15,255.00 R.W. Tomlinson $ 12.00 $ 12,000.00 $ 1,560.00 $ 13,560.00


Discussion:Based on staff’s review of the tender results it is recommended that the supply and delivery of winter sand be awarded to Hay Bay Sand & Gravel with the lowest and only bid of $15.00 per tonne + HST for total of $50,850.00 of sand product for both public work yard locations.

After review, it is recommended that the supply and delivery of limestone screenings be awarded to Morven Construction with the lowest bid of $10.25 per tonne + HST for the Napanee Public Works yard and $11.75 per tonne + HST for the Selby Public Works yard, for a total cost of $36,442.50.



Date of Meeting: September 14, 2021

Date Council Decision is Required: September 14, 2021

Prepared By: Michael Nobes, Director of Development Services

Presented By: Michael Nobes, Director of Development Services

Re: Development Services – PLZACO 2021 044, 199 Richmond Boulevard Re-zoning Report

Staff Recommendation: That Council receive for information the Development Services – PLZACO 2021 044, 199 Richmond Boulevard Re-zoning report;And further that Council approve the zoning by-law amendment subject to the following conditions:

1. That Council consider and decide on the merits of written and verbal submissions received up to and including the Council meeting;

2. That should new information be received, or further input received raise points for further consideration, this report and opinion herein be revisited as needed.

Introduction:

A rezoning application (PLZACO 2021 044) was received from Sierra Abrams to amend Zoning By-law 02-22 with respect to property at 199 Richmond Boulevard in Lot 24, Concession 3, geographic Township of Richmond, now in the Town of Greater Napanee.

The application seeks to permit the sale of used vehicles in conjunction with the motor vehicle repair garage that is currently operating on the site’s south end.

The subject lands are designated “Industrial” in the Town of Greater Napanee Official Plan and zoned “M1 (Light Industrial)” in Zoning By-law 02-22. The parcel would be rezoned to a site-specific “Light Industrial Exception 11 (M1-11)” zone to permit the sale of used motor vehicles as an accessory use to the motor vehicle repair garage.

Discussion:

Development Services – PLZACO 2021 044, 199 Richmond Boulevard Re zoning... of 222

Effect:

The Zoning By-Law Amendment seeks to permit the sale of used motor vehicles as an accessory use to the currently operating motor vehicle repair garage.

Site Location:

Industrial and Business Park lands surround the subject property to the north, south east & west and the Highway 401 is located approximately 150m north of the subject site. The proposal will have the affect of permitting the sale of a small amount of used vehicles on the site as a complement to the motor vehicle repair garage. The applicant has identified that in some cases vehicles are beyond repair and the more economical decision of a vehicle owner would be to purchase a used vehicle that suits their needs.

Planning Policies and Regulations:

Provincial Policy Statement:

Section 3 of the Planning Act requires that municipal planning decisions be consistent with the Provincial Policy Statement (PPS). The PPS provides direction on matters of provincial interest related to land use planning and development.

The subject lands are designated Industrial in the Town’s Official Plan, which is considered as employment lands in the PPS. The PPS encourages economic development and the cultivation of opportunities for diversified economic base. The PPS also encourages the efficient use of land and resources (1.1.3.2 a)) and encourages economic development and competitiveness by:

ensuring a range and mix of employment is made available (1.3.1 a)), and; providing opportunities for a diversified economic base and considering the

needs of existing and future businesses (1.3.1 b))

The PPS also strives to ensure that incompatible land uses are avoided where possible and that the necessary mitigation measures are put in place to avoid such conflicting uses. The proposal is not anticipated to result in incompatible land uses within the vicinity.

The addition of used vehicle sales on the site is consistent wit the PPS as it encourages economic development, adds to the mix of employment opportunities available on the site and is addressing a need of an existing business.

County of Lennox & Addington Official Plan:

The County Official Plan (OP) identifies the subject lands as ‘Urban Area’. The urban area encourages commercial development that will provide a full range of goods and


services at appropriate locations to meet the needs of the residents, employees and businesses (C1.1.2 a)). The plan also encourages the protection and preservation of employment areas for current and future uses (C1.1.3 d)). The County Official Plan permits a full range of uses within urban areas in accordance with local Official Plan policies and land use designations.

Through the addition of motor vehicle sales on the site the proposal is in conformity with the County Official Plan.

Town of Greater Napanee Official Plan:

The subject lands are designated “Industrial” in the Official Plan and the uses permitted in general industrial lands are those that have a potential for low or moderate impact with respect to heat, smoke, noise, vibration, odour, dust and traffic. Permitted uses in the general industrial areas include storage, wholesale trade, contractor yards, municipal yards as well as equipment and vehicle sales and servicing or similar uses (4.6.3.2 b)). Staff are of the opinion that the proposed sale of used vehicles falls within such permitted uses as it would be considered accessory to the motor vehicle repair garage and would have a lesser impact on the surrounding lands than several of the permitted uses listed above.

Through the addition of motor vehicle sales on the site the proposal is in conformity with the Town’s Official Plan.

Town of Greater Napanee Zoning By-Law:

The subject lands are zoned ‘Light Industrial’ (M1) in Zoning By-law 02-22. This zone permits a wide range of uses, inclusive of motor vehicle body shop, repair garage, wash, towing office/garage and truck/transport depot. The addition of accessory used vehicle sales to the site is not anticipated to result in adverse on-site or off-site impacts.

The ‘Light Industrial’ Zone requires a minimum lot area 2,000m2, a minimum lot frontage of 30 metres and a maximum lot coverage of 50%. The site meets such by-law provisions and the addition of accessory used vehicle sales will not result in non-compliance with the by-law.

The parking of vehicles and traffic flow on site must continue to comply with the applicable by-law provisions and it is not anticipated that the addition of ancillary vehicle sales will cause negative impacts with the site’s functioning. The draft by-law has been written such that the scale of the sale of used vehicles shall be clearly incidental and subordinate to the primary repair garage use.

Through the zoning amendment, compliance with the by-law can be achieved for such vehicle sales.

Comments Received/Public Meeting:


At the time of writing this report, no comments have been received from the public and all agencies provided comment with no concerns noted. Quinte Conservation Authority offered no objection however did note that the site is located within the Intake Protection Zone II for the Town. The proposal was reviewed by QCA’s Risk Management Official and concluded that the application may proceed.

At the public meeting held July 26th, there was concern raised regarding the potential scale of vehicles for sale on the site given the other uses on the property and the intention to ensure the sale of vehicles remains clearly accessory to the repair business. Further comment was made inquiring about the Town’s ability to limit the scale of the sales on site given that there is no limit to the maximum number of vehicles that can be made for sale on other properties within the vicinity. Upon review, the other locations within the vicinity that have motor vehicles for sale are in zones that include the permitted use of “motor vehicle sales” as a principal use. Such principal use is not restricted to a maximum number of vehicles that can be made for sale on site at any one time though the sites are required to comply with other zoning restrictions regarding location of vehicles for sale, etc. To address the concerns raised at the meeting, the by-law has been drafted to read as follows:

Within the M1-11 Zone, the following provisions apply:

a) The sale of used motor vehicles is considered an accessory use to the permitted motor vehicle repair garage. Such sale of vehicles shall be clearly incidental and subordinate to the motor vehicle repair garage. Such sale of vehicles shall:

i. not interfere with motor vehicle storage associated with the motor vehicle repair garage operations, and;

ii. shall not interfere with the parking requirements associated with the site.

Staff are confident that the above language within the by-law would allow some flexibility in the number of vehicles that can be made for sale on site yet ensure that operations on the site can continue unhindered. If the scale of the sales becomes problematic, the municipality has the ability to enforce the zoning by-law.

Summary:

It is the opinion of staff that the proposal is consistent with the PPS and meets the intent of the Official Plan and Zoning By-Law and the proposed uses are compatible with the existing uses in the area.

It is recommended that the Zoning By-Law Amendment be approved subject to the following conditions:


1. That Council consider and decide on the merits of written and verbal submissions received up to and including the Council meeting;

2. That should new information be received, or further input received raise points for further consideration, this report and opinion herein be revisited as needed.

Respectfully submitted,

Michael Nobes, P.Eng.Director of Development Services/CBO



Date of Meeting: September 14, 2021

Date CouncilDecision is Required: September 14, 2021Prepared By: Paul Dowber, General Manager Financial

Services/Treasurer Presented By: Paul Dowber, General Manager Financial

Services/Treasurer

Re: 2022 Budget Meeting Schedule

Staff Recommendation:

THAT Council receive for information the 2022 Budget Meeting Schedule report:

AND FUTHER THAT Council approve the 2022 Budget Meeting Schedule as presented.

Financial Implications: All financial implications will be presented during the budget process



Communications Implications: Upon approval, the 2022 Budget Meeting Schedule will be communicated through the Town’s social media and website and any media as appropriate. It will also be available to the public through the agenda portion of the Town website.

Financial Services - Budget Schedule Report of 222

Background:

The 2021 budget process saw budget meeting through special session of Council in October, November and December 2020 with final approval at the first regular Council session in January 2021.

There was a discussion with Council and the General Manager Financial Services/Treasurer at that meeting with the direction of passing the 2022 budget at the last regular meeting of Council in December 2021.

Discussion:

Date Activity Topics TimeSeptember 21, 2021 Public Consultation

With a report to Council at the September 28, 2021 regular meeting of Council

Property TaxBudget ProcessPublic Input

7:00-9:00pm

October 20, 2021 Budget Meeting #1 Operating 10:00am-4:00pmNovember 17, 2021 Budget Meeting #2 Capital and

Operating updates

10:00am-4:00pm

December 1, 2021 Budget Meeting #3 Water/Sewer, Operating and Capital updates

10:00am-4:00pm

December 14, 2021 Final Budget Approval

7:00-9:00pm

An early adoption of the budget provides multiple benefits, including: Cost saving through earlier procurement processes Procurement schedule for the year provided to the Director of Operational Audits

in the beginning of January 2022 allowing staff to concentrate on the 2021 audit earlier, increasing the ability of

meeting the May 2022 Audited Financial Statement presentation goal


Respectfully Submitted,

Paul Dowber, CPA, CGAGeneral Manager Financial Services/Treasurer


Staff Report to Council To: Mayor Isbester and Members of Council Date of Meeting: September 14, 2021 Date Council Decision is Required: September 14, 2021 Prepared By: Paul Dowber, General Manager Financial Services/Treasurer Presented By: Paul Dowber, General Manager Financial Services/Treasurer Re: FCM Successful Grant Application

Staff Recommendation: THAT Council receive for information the FCM Successful Grant Application report; AND FUTHER THAT Council authorize the Mayor and General Manager Financial Services/Treasurer to sign the Contribution Agreement; AND FURTHER THAT a By-Law is prepared once the CA has been signed; AND FURTHER THAT Council Authorize the General Manager Financial Services/Treasurer to single source the Asset Management work authorized through the grant to Public Sector Digest in order to meet the July 01, 2022 legislative requirements through O. Reg. 588/17.

Financial Services - FCM Successful Grant Application of 222

Financial Implications: This grant is an 80% contribution of $50,000 through FCM and a Municipal contribution of $12,500. The municipal portion of this grant will be included in the 2022 budget process and will, therefore, not affect the implementation of the 2021 budget.

Accessibility Implications: An updated Asset Management Plan with Current Service Levels will be one of the milestones of the work through this grant. This report will be AODA compliant when posted on the Town website.

Information Technology Implications: The updated information to the upcoming Town Asset Registry system will be communicated with IT through the Town Data Management Clerk and the Manager of IT.

Communications Implications: The grant information will be communicated through the 2022 budget process and associated milestone report will be posted on the Town Website when completed.

Background:

Finance submitted a report to Council on June 8, 2021 changing the scope of the FCM MAMP grant to help the Town catch up on Asset Management activities and aid in the completion of work legislatively required in O Reg 588/17.

The grant had originally applied for Asset Management Software. The scope of the grant saw a change in the Jun 8, 2021 report to AM activities, including:

• Analysis of inventory and state of the infrastructure• AM lifecycle strategies• AM risk strategy• AM growth strategy• Levels of Service legislative requirements• Assistance with financial requirements• Asset Management Plan draft and final reports with a Council presentation• Asset Management Strategy Planning

o Identify gaps within the Town’s AM programo Missing strategies, planning documents, processes, protocols, or policies

are identified within the seven core elements of an AM Strategy of: Organization and people Asset data and information AM decision making Risk management Levels of service Financial strategies strategy and planning


Discussion: The Manager of Funding at FCM, Aymone Agossou notified the Mayor and General Manager Financial Services/Treasurer on August 24, 2021 that the funding application was successful. Staff would like to move quickly on this work to catch up on the backlog of Asset Management work and help the Town Asset Management Team complete the work in the timeframes required through O Reg 588/17. In order to achieve this goal, staff would like to single source the activities applied for in the FCM MAMP funding application to Public Sector Digest out of London Ontario. PSD is a Canadian company that is a leader in Asset Management work in North America. The Town has been working with PSD through the successful MFOA Amp IT Up grant given to the Town in 2019. PSD has a working knowledge of the asset structure of the Town.

Attachments: Appendix “A”, FCM successful grant notification Appendix “B”, PSD Project Charter Respectfully Submitted, Paul Dowber, CPA, CGA General Manager Financial Services/Treasurer


24 August 2021

Her Worship Mayor Marg Isbester and Members of Council Town of Greater Napanee 124 John Street, P.O. Box 97 Greater Napanee, Ontario K7R 3L4

Title of initiative: Asset Management Systems and Data Enhancements in Greater Napanee Application number: MAMP-17415

Dear Mayor Isbester and Members of Council:

On behalf of the Municipal Asset Management Program (MAMP) it is my pleasure to confirm that the Town of Greater Napanee has been approved for a grant in the amount of up to $50,000.

In the near future, Hidayate Adebo will contact Paul Dowber, General Manager Financial Services/Treasurer of the Town of Greater Napanee to finalize the agreement for the grant. FCM’s obligation to fund the above-noted initiative will only become binding once the agreement is fully executed. During this time, eligible expenditures may be incurred as of your project’s eligibility date: 28 July 2021.

Public announcements regarding MAMP-funded initiatives are overseen by FCM in partnership with the Government of Canada. Your municipality is welcome to participate in that process, but until authorised by FCM and Infrastructure Canada, any public statements related to the status of the application for MAMP funding are not permitted. This communication protocol is contained in the grant agreement. If you require further information prior to receiving the contract, please contact Hidayate Adebo at 613-907-6213 or by e-mail at [email protected].

Thank you for your interest in MAMP. We look forward to working with you to improve asset management practices in your community, and to sharing the results of your initiative with communities across Canada.

Sincerely,

Aymone Agossou Manager, Funding

cc: Paul Dowber, General Manager Financial Services/Treasurer

Appendix "A"


Town of Greater Napanee Ontario Regulation 588 (2022) Compliant Asset Management Plan

and Asset Management Strategy

Project Charter

Sept 7, 2021

PSD Citywide Inc. 148 FULLARTON STREET , 9 T H F LOOR , LONDON , ONTARI O N6A 5 P3

PHONE: (519 ) 690 -2565 • FAX : (51 9 ) 519 -649 -2010

Appendix "B"


PSD Citywide Inc. 1

Contact List TOWN OF GREATER NAPANEE (“CLIENT”)

NAME TITLE TELEPHONE E-MAIL

Paul Dowber General Manager of Financial Services

613-354-3351 Ext. 2005

pdowber@greaternapane

PSD CITYWIDE INC. (“PSD”)

NAME TITLE TELEPHONE E-MAIL

Jeff Muir Account Manager 519-690-2565

Ext. 2502 [email protected]

Matthew Van

Dommelen

GM Business Development & Implementation

519-690-2565


John Murray GM Asset

Management 519-690-2565

Ext.2700 [email protected]

Dana Ossman Client Support

Representative

519-690-2565


Appendix "B"


PSD Citywide Inc. 2

Project Deliverables This document contains a high-level statement of work for the Town of Greater Napanee for the

delivery of an Asset Management Plan that is compliant with Ontario Regulation 588/17

requirements. The proposed schedule, requirements and scope presented in this document are to

be refined and updated as client requirements, business and operational goals, and constraints

are identified throughout the project. The Asset Management Plan (AMP) will be composed with

the following components at a minimum:

• Executive Summary • Introduction • State of Local Infrastructure

• Levels of Service • Asset Management Strategy

• Financial Strategy

Although a foundational document, the AMP may be too tactical depending on the state of the asset management maturity. The spending on infrastructure services is not limited to assets. It

comprises investments in many elements, including people, processes, systems, and applications, all of which work together to help create and preserve alignment between asset management and

sustainable long-term capital planning. A high-functioning asset management program is a well-configured collection of these elements. Included in this project, PSD will develop an asset

management strategy (AMS) that provides an initial path to develop that program and address gaps and inefficiencies in how these various elements work together. It is a connecting link between an AMP (‘tactical and practical’), the asset management policy, and the corporate

strategic plan.

1. O.Reg 588/17 Compliant AMP

The asset management plan will become a document that officials, staff, and residents can use to

guide their decision-making and develop an educated perspective on managing Town of Greater

Napanee’s assets. Ontario Regulation 588/17 requires municipalities to develop an asset

management plan in three stages:

Stage Deadline Assets Included Requirements

1 July 1, 2022 Roads, Bridges, Water,

Wastewater, Stormwater

➢ Infrastructure Asset Inventory

➢ Current Levels of Service

➢ Lifecycle Activities (10 Years)

➢ Growth Assumptions

2 July 1, 2024 All Infrastructure Assets Same as 2022 expanded to all

infrastructure assets

3 July 1, 2025 All Infrastructure Assets

➢ Proposed Levels of Service

➢ Lifecycle Management Strategy

➢ Financial Strategy

PSD’s work for the Town of Greater Napanee will complete preparation for stage 1, in order to

comply with the 2022 requirements of AMP development.

Appendix "B"


PSD Citywide Inc. 3

Asset Management Workshops & Interviews

The development of the AMP requires input from stakeholders across all departments to leverage existing knowledge, understand current practices, and review insights. At key intervals over the

course of the project PSD will lead workshops and/or interviews with relevant staff to ensure all project requirements have been satisfied. The number of workshops and the content covered will be determined during the initial project planning stage in collaboration between PSD and key

project stakeholders but may change as project requirements become better understood. This will depend on the maturity of data and processes currently and the availability of studies and reports.

Project Scope There are four key sections in the asset management plan:

• Inventory Analysis & State of the Infrastructure

o Asset Data Hierarchy Development o Data Gap Analysis o State of the Infrastructure

• Asset Management Strategies o Lifecycle Management Strategies

o Risk Analysis o Growth Assumptions

• Levels of Service

o Review of existing LOS data o Recommended KPIs

• Financial Strategies o Review of funding levels against requirements

o Development of financial strategy scenarios

The following tables identify the content that will be included in the AMP for each asset category:

Asset Category

Project Requirements

Inventory

Analysis &

SOTI

AM

Strategies

Levels of

Service

Financial

Strategy

Road Network Yes Yes Yes Yes

Bridges & Structural Culverts Yes Yes Yes Yes

Storm Yes Yes Yes Yes

Water Yes Yes Yes Yes

Wastewater Yes Yes Yes Yes

Facilities Yes No No Yes

Land Improvements/Parks Yes No No Yes

Machinery & Equipment Yes No No Yes

Vehicles Yes No No Yes

Appendix "B"


PSD Citywide Inc. 4

Topic In Scope Out of Scope

Inventory Analysis &

State of the Infrastructure

✓ Develop customized AMP

classification structure (data

hierarchy)

✓ Complete a data gap analysis

✓ Review and adjust Useful Lives and

Replacement Costs

✓ Inventory duplication review &

identification of excluded assets

✓ Upload available assessed

condition data (e.g. OSIM, Road

Needs Study) that aligns with

current asset inventory structure

only

× Software

× Financial data adjustments

(disposals, betterments, cost

balancing)

× Inventory reconciliation or

merging data between two

datasets (e.g. TCA vs. GIS)

× Create links to GIS dataset

× Disaggregate pooled inventory

data

× Complete on-site condition

assessments

AM Strategies

(Lifecycle)

✓ Document current lifecycle and

condition assessment strategies

(all assets)

✓ Create lifecycle model(s) for Roads

that identify current or proposed

management strategies

✓ Lifecycle activities for bridges and

structural culverts based on

recommended activities in OSIM

reports

× Identify optimal lifecycle

strategies or make

recommendations on best

practices

× Create lifecycle model(s) for any

assets other than Roads

AM Strategies (Risk)

✓ Basic risk models developed for all

asset categories (1-3 Consequence

of Failure Metrics; 1-2 Probability

of Failure Metrics) based on

available data

✓ Development of risk matrices

✓ Identification of risks to

infrastructure programs in general

× Development of risk mitigation

strategies

AM Strategies (Growth)

✓ Identification of growth

assumptions based on the best

available data

✓ Review of expected impacts of

growth on asset management

planning

× Growth forecasting

Levels of

Service

✓ Identification of current level of

service (O. Reg. 588/17 metrics)

✓ Selection of up to 1-3 additional

performance measures per asset

category

× Review of historical data and/or

trend analysis

× Identification of proposed level of

service

Financial

Strategy

✓ Review of historical approach to

capital funding allocation and debt

financing

✓ Development of phased-in financial

strategy to meet capital lifecycle

requirements (5-20 Years)

× Review of operating costs

× Integration of growth costs

× Development of reserve funding

strategy

Draft/Report

✓ 2 draft revision cycles

✓ Final presentation to Council as

required

Appendix "B"


PSD Citywide Inc. 5

2. AM Strategy

An asset management strategy is the path to develop that program and address gaps and inefficiencies in how these various elements work together. It is a connecting link between an

asset management plan (‘tactical and practical’), the asset management policy, and the corporate strategic plan.

The AMP identifies gaps and deficiencies in asset performance and aims to improve funding strategies. In contrast, the asset management strategy (AMS), is designed to improve and

reinforce corporate practices, business processes, and approaches that underpin the asset management program and organizational culture. PSD’s asset management strategies are

developed to reflect the sophistication and maturity of current asset management practices. After a rigorous analysis of the organization’s current state, including a comprehensive data gap analysis, our consultants will develop a practical path to reach more advanced stages of asset

management. Our consultants will also synchronize recommendations with internal and external constraints as well as opportunities that may impeded or accelerate progress. The asset

management strategy develops a clear direction for the organization and introduces cross-departmental coordination. The strategy helps advance maturity through an analysis of the seven core asset management elements as seen in figure 1:

The first step is to assess the current state of asset management within the organization. With all essential players from each department identified and brought together (e.g. asset management

committee), PSD consultants can begin to identify the gaps within the Town’s asset management program. Reflecting on the seven core elements in figure 1, gaps such as missing strategic or planning documents, processes, protocols, or policies can be identified. The second step is to

define a practical and achievable future state of maturity. Based on a review of best practices from other similar organizations, the PSD team should be able to identify meaningful changes that can

be made to achieve feasible goals. The third and final step is to develop a high-level strategy or path with specific initiatives, tasks, timelines, and ownership. The following are the steps to

developing an AM strategy:

Appendix "B"


PSD Citywide Inc. 6

Component of the AMS Type In Scope?

Current State Assessment (High Level Recommendations)

Required Yes

Asset Management Self-Assessment Strategy Required Yes

Departmental Workshops Required Yes

Data Gap Analysis Required Yes

Systems Review and Mapping Optional No

Database Alignment Review Optional No

Visioning and Refinement (Detailed Roadmap) Required Yes

Business Process Mapping Optional No

Risk Management Strategy Optional No

Communications and Change Management Strategy

Optional No

Project Schedule The estimated duration of this project is 8-10 months. The initial phase will focus on completing

the required O.Reg compliant AMP in time for the July 1st, 2022 deadline. Upon completion, PSD will begin work on the Asset Management Strategy.

The detailed project schedule and Gantt chart will be supplied after the kick-off meeting and will be reviewed and approved in phases as the project progresses. The duration of the project is dependent on multiple factors including client availability as well as data activities. Note that Client

time and resources will be required regularly throughout the project. It is expected that the Client will provide data and additional inputs for each stage as well as review and provide feedback on

the deliverable for each stage.

Project Communication Due to the size and scope of the project, clear and efficient communications between the Client

and PSD is vital to project success. In the kick-off meeting, the main point of contact for PSD and the Client will be decided upon and the Client will be introduced to PSD's Project Management Tool, Mavenlink, in which clients can have access to view the progress of the project. All high-level

client communications, including project progress updates, scheduling future meetings/workshops and sending of data should be done between these individuals unless stated otherwise throughout

the project. In addition, every two weeks starting with the kick-off meeting, the PSD Project Manager will provide a project status update that includes progress of tasks completed to date

and the timelines and milestones of activities moving forward. Alternatively, the client can check project progress, statuses, and updates through Mavenlink.

Appendix "B"


PSD Citywide Inc. 7

Terms of Payment • This project will start in October and be invoiced in 10 equal monthly amounts with the first

invoice delivered on October 1, 2021 and the final invoice being issued once a draft document

has been delivered.

• PSD expenses such as mileage, accommodation and meals are extra where applicable and

subject to prior written approval by the Client.

• Taxes are extra where applicable (GST, PST, HST).

• Consulting rates are valid for the term of this agreement only.

General:

• All amounts quoted are in CDN dollars and will be invoiced as such. Applicable taxes are extra. (GST, PST, HST)

• Consulting rates are as follows:

o $1,600 / day or $200.00 / hour – A Day includes 8 hours of services. Request for additional consulting services may be made via e-mail or purchase order from an

authorized representative of the Client. This will serve as authorization to perform and invoice the service. Consulting rates are valid for the term of this agreement only.

• Detailed pricing information is included below.

• The Client shall pay invoices within 30 days of receipt of the invoice. Any amounts unpaid after the due date shall be subject to a late charge of 1.5% per month.

• During the provision of the implementation services and for 1 year afterward, customer shall not hire PSD employees or subcontractors involved in the delivery of the services.

• PSD Citywide Inc. warrants that the professional services shall be performed by its employees

or subcontractors in a manner conforming to generally accepted industry standards and practices. No other warranties, expressed or implied, are made with respect to the services or

goods to be supplied by PSD Citywide Inc. hereunder, including, without limitation, any implied warranty of merchantability or fitness for a particular purpose.

• The liability of either party to the other or to any third party for any claim of any kind arising

out of this Purchase Agreement is limited to monetary damages, and the aggregate amount of such liability for all claims of any kind relating to any particular product or service is limited to

the fees paid to PSD Citywide Inc. under this Agreement for the particular product or service which gave rise to the claim. Under no circumstances shall PSD Citywide Inc. be liable to customer or any third party for indirect, incidental, special or consequential damages, or

damages for loss of profits, revenue, data or use, even if PSD Citywide Inc. has been advised of the possibility of such damages.

Appendix "B"


PSD Citywide Inc. 8

Additional Considerations This document has been prepared specifically for the Client. This proposal and all of its associated pricing shall remain valid for 30 calendar days from the date of issue.

Ownership and Confidentiality

All Client data stored within the Citywide applications remains the legal ownership of the Client

and can be extracted and used without restriction. PSD shall treat as confidential all information obtained by PSD for and from the Client as well as all information compiled by PSD under this Agreement for the Client, including without limitation: business and marketing information,

technical data, programs, source codes and other software, plans and projections.

Security

PSD performs regular security audits of our systems to ensure current updates and patches are applied on all hardware, along with updated antivirus software. All users are forced to use secure passwords which are stored on the server only in encrypted format. Nightly backups are done off-

site. The PSD Firewall is configured to only allow traffic to enter the network for required services such as our web server.

Project Budget

Professional Services

Service Cost

O. Reg 588 (2021) Compliant AMP $40,000.00

Asset Management Strategy

• Current State Assessment

• High- Level Project Plan

$22,500.00

Project Cost $62,500.00

Appendix "B"


PSD Citywide Inc. 9

AuthorizationThis contract shall be deemed to have come into force when executed by representatives

authorized to bind the respective corporations: Town of Greater Napanee and PSD Citywide Inc.

Terms and Assumptions Accepted between:

Additional information required to be completed by Customer

Does your company require a Purchase Order (PO) before issuing payment? NO ☐ YES ☐ The PO # for this order is: ___________________________

All PSD invoices shall be directed to:

Accounts Payable Contact:

Telephone:

Accounts Payable Email Address:

Billing Address:

Town of Greater Napanee

124 John Street

Napanee ON, K7R 3L4

PSD Citywide Inc.

148 Fullarton Street, 9th Floor

London, Ontario, N6A 5P3

Appendix "B"


Staff Report to Council To: Mayor Isbester and Members of Council Date of Meeting: September 14, 2021 Date Council Decision is Required: September 14, 2021 Prepared By: Paul Dowber, General Manager Financial Services/Treasurer Charles McDonald/Director of Operational Audits Presented By: Paul Dowber, General Manager Financial Services/Treasurer Charles McDonald/Director of Operational Audits Re: Draft Purchasing Policy

Staff Recommendation: THAT Council receive for information the Draft Purchasing Policy report; AND FUTHER THAT Council approve the updated Purchasing Policy and that a By-Law be prepared for September 28, 2021.

Financial Implications: There are no financial implications. Accessibility Implications: The By-Law will be available on the website in an AODA compliant format. Information Technology Implications: There are no IT implications. Communications Implications: The By-Law will be available on the Town website.

Background:

A purchasing policy update was presented to Council on July 20, 2021 to change:

Financial Services - Draft Purchasing Policy of 222

• Levels of procurement activities • Levels of signing authority/purchase levels • Emergency purchase levels

Purchase cards were also introduced on July 20, 2021 and August 17, 2021. ON August 20, 2021, the General Manager Financial Services/ Treasurer indicated to Council that a draft Purchasing Policy would be presented to Council on September 14, 2021 for discussion and approval, either on September 14th or at a future Council meeting if there were changes to the policy by Council.

Discussion: Enclosed as appendix “A”, which is the updated Purchasing Policy as a draft for Council review and discussion. Enclosed as Appendix “B” is an overview of the changes to the Purchasing Policy.

Respectfully Submitted, Paul Dowber, CPA, CGA General Manager Financial Services/Treasurer Charles McDonald Director of Operational Audits


2

BY-LAW NUMBER 2021-__

A By-Law to Define Procurement Policies and Procedures for The Corporation of the Town of Greater Napanee and to Repeal By-Laws 05-05 and Amendment By-

Law 2014-0051.

WHEREAS the Municipal Act 2001, S.O., 2001, c.25 Section 270 requires all municipalities and local boards to adopt and maintain a policy concerning the procurement of goods and services.

AND WHEREAS the Corporation of the Town of Greater Napanee is committed to ensuring its procurement decisions are fair, open and transparent;

AND WHEREAS purchases made by the Town of Greater Napanee should reflect best value for the taxpayer, protect the Corporation's financial interests and encourage competitive bidding;

AND WHEREAS the Corporation of the Town of Greater Napanee must be prepared to manage extraordinary circumstances from time to time, and that such circumstances may require immediate procurement decisions that are necessary to prevent or alleviate serious delay, a threat to public health, safety or welfare, the disruption of essential services or damage to public property or to respond to any emergency of the Corporation or as required under the provincial Emergency Management and Civil Protection Act (as amended);

AND WHEREAS effective planning, monitoring and control of public sector procurement are essential for maintaining public trust and confidence;

NOW THEREFORE the Council of The Corporation of the Town of Greater Napanee enacts as follows: 1. THAT it is deemed expedient that the Council of the Town of Greater Napanee

hereby adopts the Procurement Policies and Procedures for the Town of Greater Napanee attached hereto and marked as Schedule “A”.

2. THAT that the Council of the Town of Greater Napanee repeal By-law 05-05, a By-Law to Govern the Purchasing of Goods and Services, Amendment By-law 2014-0051 and all other by-laws or provisions conflicting with this by-law;

3. That this by-law shall take effect upon the date of final passing.

Read a first and second time and finally passed this ___ day of September, 2021. ______________________________ _____________________________ Marg Isbester, Mayor Brandt Zatterberg, Deputy CAO.

Appendix "A"


3

Schedule “A”

To By-Law 2021-___

A By-law to Define Procurement Policies and

Procedures for The Corporation of the Town of Greater Napanee

Appendix "A"


4

Section 1 - Contents

Section 2 - Purposes of This By-Law ......................................................................... 6

Section 3 - Procurement Goals and Objectives .......................................................... 6

Section 4 - Application of This By-Law ....................................................................... 7

Section 5 - Definitions................................................................................................. 7

Section 6 - Town’s Conduct and Conflicts of Interest ............................................... 11

Section 7 - Supplier’s Conduct and Conflicts of Interest ........................................... 12

Section 8 - Separation of Roles and The Role of Council......................................... 13

Section 9 - Roles, Responsibilities and Authorities .................................................. 13

Section 10 - Cooperative Purchasing ......................................................................... 16

Section 11 - Trade Agreements…………………………………………………………….17

Section 12 - Purchasing Procedures……………………………………………………… 17

Section 13 - Standard Procurement ........................................................................... 18

Section 14 - Non-Standard Procurement .................................................................... 19

Section 15 - Delegated Procurement Authorities ........................................................ 19

Section 16 - Table of Authority for Purchasing and Payments .................................. 20

Section 17 - Council Approval .................................................................................... 21

Section 18 - Bid Irregularities ..................................................................................... 21

Section 19 - Bidder Debriefings .................................................................................. 22

Section 20 - Procurement Protests ............................................................................. 22

Section 21 - Bid Review Committee ........................................................................... 22

Section 22 - Contract Management and Supplier Performance .................................. 23

Section 23 - Negotiation ............................................................................................. 24

Section 24- Records Retention and Access to Information ....................................... 25

Section 25 - Unsolicited Proposals ............................................................................. 25

Section 26 - Occupational Health and Safety ............................................................. 26

Section 27 - Accessibility for Ontarians with Disabilities ............................................. 26

Section 28 - Environmentally Sustainable Procurement ............................................ 26

Section 29 - Sale and Other Disposition of Real Property .......................................... 26

Section 30 - Quarterly Report to Council .................................................................... 26

Section 31 - By-Law Review ....................................................................................... 27

Appendix "A"


5

Section 32 - Short Title ............................................................................................... 27

Section 33 - Interpretation of By-Law ......................................................................... 27

Section 34 - Appendices............................................................................................. 28

Appendix “A” - Exempt Procurements ........................................................................... 29

Appendix “B” - Delegated Procurement Authorities ....................................................... 32

Appendix “C” - Non-Standard Procurements ................................................................. 38

Appendix “D” - Statement of Ethics for Public Purchasers and for Procurement ........... 42

Appendix “E” - Invitational Informal Quotations / Proposals by Departments ................ 43

Appendix “F” - Request for Quotations (RFQ) ............................................................... 45

Appendix “G” - Request for Tenders (RFT) ................................................................... 47

Appendix “H” - Request for Proposals (RFP) ................................................................ 49

Appendix “I”- Request for Supplier Qualification - Rosters– Supply Arrangements .... 52

Appendix “J” - Request for Standing Offers (RFSO). ..................................................... 53

Appendix “K” - Development of Specifications............................................................... 54

Appendix “L” - Bid Irregularities ..................................................................................... 56

Appendix “M”- Conflict of Interest .................................................................................. 60

Appendix “N” - Environmental Sourcing and Procurement ............................................ 62

Appendix “O” – Credit Card Purchases, Policies and Procedures……………………….65

Appendix "A"


6

Section 2 - Purposes of this By-Law

The purposes of this By-law are:

To express the Corporation of the Town of Greater Napanee’s (hereinafter referred to as “the Town”) goals and objectives in relation to its procurement of goods, services and construction;

To strengthen the Town’s goals and objectives for accountable local government;

To describe the roles, responsibilities and authorities of the Town’s employees, Chief Administrative Officer (CAO) and elected officials in carrying out the Town’s procurement operations;

To extend authority to the CAO for the approval of detailed procurement procedures and protocols that are consistent with the intent of this By-law and, to supplement and amend those procedures and protocols as and when deemed necessary, to meet the present and future needs of the Town; and,

To comply with the requirements of Section 270(1) of the Municipal Act, S.O., 2001, as amended from time to time.

Section 3 - Procurement Goals and Objectives

The goals and objectives of the Town’s procurement operations are:

To obtain the best value for the Town when procuring goods and service(s) and construction;

To encourage competitive procurement and ensure the principles of fairness, objectivity, transparency and accountability are reflected in the Town’s procurement processes; To offer a variety of purchasing methods and to use the most appropriate method depending on the particular circumstances of the acquisition;

To support effective business planning such that goods, services and construction will only be acquired after consideration of need, alternatives, timing, the mitigation of and adaptation to the vulnerabilities that may be caused by climate change, and appropriate life-cycle management issues;

To adhere to the highest standards of ethical conduct and to avoid conflicts between the interests of the Town and those of the Town’s employees, Chief Administrative Officer and elected officials;

To ensure alignment and compliance with the Municipal Act, all applicable trade agreements, laws and regulations;

To practice reciprocal non-discrimination and geographic neutrality with respect to Ontario’s trading partners and avoid preferential treatment of local suppliers as per the

Appendix "A"


7

Discriminatory Business Practices Act, R.S.O. 1990, c D12. To avoid creating situations or relationships which may result in a continuous reliance on a particular supplier; and

To encourage the procurement of goods, services and construction with due regard to the preservation of the natural environment, and the promotion of human rights and fair labour practices.

Section 4 - Application of This By-Law

4.1 This By-law applies to all departments of the Town and Committees of Council;

4.2 This By-law may be adopted in principle and, at their own discretion, by affiliate boards and commissions of the Town;

4.3 This By-law applies to the procurement of all goods, service(s) or construction except for those items set out in Appendix “A”;

4.4 In addition to the items set out in Appendix “A”, this By-law does not apply to the acquisition or disposal of real property. The disposal of real property is governed by the Policy and/or By-law in effect at the time of such disposition; and

4.5 In addition to this By-law, the Town has procedures, protocols, templates and forms for use during the procurement cycle to assist Departments in achieving compliance with this By-law. All tools for engaging in procurement activity will be maintained and updated by the Finance Department as required and stored on the Town’s network directory/intranet and where applicable the external website.

Section 5 - Definitions

In this By-law,

“Associate” means any partner of an employee or Council member; any trust or estate in which the employee has a substantial beneficial interest or as to which the employee serves as trustee or in a similar capacity for the Town; any relative of the employee; any body corporate of which the officer or employee beneficially owns, directly or indirectly, or exercises control or direction over, equity shares of the corporation carrying more than ten (10) percent of the voting rights attached to all equity shares of the corporation for the time being outstanding; “Award” means authorization to proceed with the Purchase from a chosen Supplier;

“Best value” means the best combination of price (total cost of ownership) technical merit and quality as determined in accordance with pre-defined evaluation criteria and may not be the lowest cost;

Appendix "A"


8

“Bid” means a submission in response to a solicitation document which is subject to acceptance or rejection by the Corporation;

“Bid Review Committee” means the committee established pursuant to Section 21 of this By-law;

“Bidder” means a supplier that submits a bid; “Bid Solicitation” means a request for Bids including informal Requests for Quotation or Proposals and formal Requests for Quotations, Requests for Pre-Qualification, Requests for Tenders, Requests for Proposals, Negotiated Requests for Proposals and Requests for Expressions of Interest; “Bidding System” means the Corporation of the Town of Greater Napanee’s online, electronic web-based solution for issuing Bid Solicitations and/or receiving online bids and posting results of Bid Solicitations; “CETA” means the Comprehensive Economic and Trade Agreement set out for Government Procurement (Chapter Nineteen: Government Procurement) effective September 21, 2017 and as may be updated from time to time; “CFTA” means the Canadian Free Trade Agreement set out for Government Procurement (Chapter Five) effective July 1, 2017 and as may be updated from time to time;

“Chief Administrative Officer” or “CAO” means the Chief Administrative Officer of the Town or designate, as defined by the Municipal Act;

“Clerk” as defined by the Municipal Act;

“Competitive Process” means either an Open Competition or an Invitational Competition; “Compliant Bid” means a bid that meets the terms and conditions of the Bid Solicitation and this By-Law;

“Construction” means the process of using labour to build, alter, repair, improve or demolish any structure, building or public improvement, and generally does not apply to routine maintenance, or operations of existing real property;

“Consulting Services” means the provision of expertise or strategic advice that is presented for consideration and decision-making, and includes services provided by architects, engineers, designers, surveyors, geo-technical consultants, planners and technology consultants;

“Contract” means a commitment by the Town for the procurement of goods, services or construction from a supplier, which may be evidenced by an agreement executed by the supplier and the Town or a purchase order issued to the supplier by a duly authorized employee of the Town, including revenue generating contracts;

Appendix "A"


9

“Contract Extension” means an amendment to a Contract which has the effect of increasing the value of the Contract in funds, increasing the scope of the work and/or extending the term of a Contract, where the terms of the Contract do not include the option for such amendment;

“Cooperative Purchasing” means a variety of arrangements whereby two or more public procurement entities combine their requirements in a single procurement process to obtain advantages of volume purchases from the same supplier(s) or contractor(s); “Council” means the Council of the Town;

“Department” means a department of the Town;

“Department Head” means the General Manager of Financial Services/Treasurer, the General Manager of Community and Corporate Services, the General Manager of Infrastructure Services, the General Manager of Emergency Services or respective designates that are responsible for a specific department; “Designate” means a person authorized by the CAO, General Manager or Department Head to act on his/her behalf, for the purpose of this By-Law; “Discrete Work Assignments” means various, separate or individually distinct work assignments;

“Goods” means moveable property including services that are incidental to the provision of the moveable property, such as manufacturing, delivery, installation or maintenance, and any necessary raw materials, products, supplies, equipment and other physical objects of every kind and description whether in solid, liquid, gaseous or electronic form, unless they are procured as part of a construction contract;

“Invitational Competition” means a competitive process in which an invitation to submit bids is issued to at least three suppliers;

“Low Cost Purchase” (LCP) means a purchase for goods, service(s) or construction, as per the thresholds stated in Appendix “B” of this By-law that are not covered by an existing supply arrangement, standing offer or qualified supplier roster or available through the Town’s existing materials inventory;

“Master Framework Agreement” means a master agreement entered into between the Town and pre-qualified suppliers that have been included on a Qualified Supplier Roster.

“Negotiation” means a purchasing method whereby the Corporation may negotiate directly with one or more Suppliers with the intent to award a Contract or extend an existing Contract;

“Non-Standard Procurement” means the acquisition of goods, services or construction through a process or method other than the process and method normally required for

Appendix "A"


10

the type and value of the goods, services or construction, as identified and described under Appendix “C” of the Town’s Procurement By-law. Non-standard procurement processes include:

• A “Non-Competitive Procurement”, where the goods, services or construction are acquired directly from a particular supplier without conducting a competitive process when an Invitational Competition or an Open Competition would normally be required; or

• A “Limited Competition”, where bids are solicited from a limited number of suppliers when an Open Competition would normally be required.

“Open Competition” means the solicitation of bids through a publicly posted solicitation document;

“Procurement” or “Purchasing” means the acquisition of goods, service(s) or construction by purchasing, renting or leasing;

“Procurement Value” means the total value of the goods, services or construction being procured, and must include all costs to the Town, including, as applicable, acquisition, maintenance, replacement, disposal, training, delivery, installation and extension options, less applicable rebates or discounts and includes the unrecoverable portion of the HST;

“Purchase Order” means the Town’s written document issued by a duly authorized employee of the Town to a supplier formalizing all the terms and conditions of the purchase and supply of the goods, services or construction identified on the face of the Purchase Order. A purchase order is the simplest form of an agreement used to enter into a purchase;

“Purchasing Card” means both Credit Cards and Purchasing Cards (PCards) provided by the Town, to duly authorized employees of the Town for use as a payment method to purchase directly from suppliers where permitted under this By-law and in accordance with a written card holder agreement and applicable procedures.

“Revenue Contracts” means profit sharing contracts whereby the Town receives a portion of revenue sales or profits earned by a third party under contract with the Town;

“Qualified Supplier Roster” means a list of suppliers that have participated in and successfully met the requirements of a Request for Supplier Qualifications (RFSQ), and have been pre-qualified to perform discrete work assignments involving the delivery of a particular type of goods or services;

“Qualified Supplier Roster Competition” means an expedited, invitational competition between suppliers that have been included on a Qualified Supplier Roster for the selection of a supplier to perform a discrete work assignment during the term of the roster;

Appendix "A"


11

“Real Property” means land and its permanently affixed buildings or structures. Any property that is not personal property;

“Relative” means a parent, spouse, child, sister, brother, sister-in-law, brother-in-law, father-in-law, mother-in-law, son-in-law, daughter-in-law as well as step-relationships and half-relationships; this definition shall also include any other person(s) that are living with the employee on a full-time basis whom the employee has demonstrated a settled intention to treat as an immediate relative;

“Service” means the furnishing of labour, time or effort by a supplier, which may involve the delivery or supply of products incidental to the provision of the services, and includes consulting and non-consulting services;

“Signing Officer” means a person appointed through a by-law or resolution of Council, with the authority to sign cheques and/or execute documents on behalf of the Town.

“Solicitation Document” means the document issued by the Town to solicit bids from bidders;

“Supplier” means a person carrying on the business of providing goods, services or construction;

“Standing Offer” means an Offer from a qualified, pre-approved supplier to the Town to supply goods and services, as requested, through the use of an ordering process during a particular period of time, at a predetermined price or discount, generally within a pre-defined dollar limit;

“Treasurer” as defined by the Municipal Act.

Section 6 - Town’s Conduct and Conflicts of Interest

6.1 The Town’s procurement activities must be conducted with integrity so as to maintain the public’s trust. All procurement activities undertaken by the Town must be conducted in accordance with:

6.1.1 the Town’s Employee Code of Conduct, as applicable;

6.1.2 the Statement of Ethics for Public Purchasers in Appendix “D” of this By- law; and

6.1.3 Appendix “M” – Conflict of Interest

6.1.4 the Municipal Conflict of Interest Act, R.S.O. 1990, c.M.50, as applicable.

6.2 All participants in a procurement process, including any external consultants or other service providers acting on the Town’s behalf, must declare any perceived, possible or actual conflicts of interest.

6.3 No purchase will be processed for personal items of direct benefit to employees of the Town or any member of Council except, where permitted by policy, or under the auspices of a Town-sponsored employee program or with the prior approval of

Appendix "A"


12

the CAO or designate.

6.4 No goods, services or construction will be purchased from an officer or employee of the Town, or any associate or family member of an officer or employee, unless the extent of the interest of such individual has been fully disclosed to the CAO or designate and the purchase has been subsequently approved by the General Manager of Financial Services/Treasurer.

Section 7 - Supplier’s Conduct and Conflicts of Interest

7.1 The Town expects its suppliers to act with integrity and conduct business in an ethical manner.

7.2 The Town may refuse to do business with any supplier that:

7.2.1 has engaged in illegal or unethical bidding practices;

7.2.2 has an actual or potential conflict of interest;

7.2.3 has an unfair advantage in the procurement process; or

7.2.4 fails to adhere to ethical business practices.

7.3 All suppliers participating in a procurement process must declare any perceived, possible, or actual conflicts of interest.

7.4 Where a supplier is retained to participate in the development of a solicitation document or the specifications for inclusion in a solicitation document, that supplier may not be allowed to respond, directly or indirectly, to that solicitation document.

7.5 Illegal or unethical bidding practices include:

7.5.1 bid-rigging, price-fixing, bribery or collusion or other behaviours or practices prohibited by federal or provincial statutes;

7.5.2 attempting to gain favour or advantage by offering gifts or incentives to Town employees, members of Council or any other representative of the Town;

7.5.3 lobbying members of Council or Town officials and employees or engaging in any prohibited communications during a procurement process;

7.5.4 submitting inaccurate or misleading information in response to a procurement opportunity; and

7.5.5 engaging in any other activity that compromises the Town’s ability to run a fair procurement process.

7.6 The Town will report any suspected cases of collusion or other bid-rigging offences under the Competition Act to the Competition Bureau or to other relevant authorities.

7.7 In providing goods, services or construction to the Town, suppliers are

Appendix "A"


13

expected to adhere to ethical business practices, including:

7.7.1 performing all Town contracts in a professional and competent manner and in accordance with the terms and conditions of the contract;

7.7.2 complying with all applicable laws, including safety and labour codes (both domestic and international as may be applicable);

7.7.3 ensuring that fair wages are paid to suppliers’ employees; and

7.7.4 providing workplaces that are free from harassment or discrimination of any kind.

Section 8 - Separation of Roles and The Role of Council

8.1 In accordance with best practices in municipal procurement, Council recognizes the need for a clear separation of political and administrative functions in relation to the Town’s procurement operations. It is the role of Council to establish policy and to approve expenditures through the Town’s budget approval process. Through this By-law, Council delegates to the Town’s employees the authority to incur expenditures in accordance with approved budgets through the procurement of goods, services and construction in accordance with the rules and processes set out in this By-law.

8.2 To facilitate Council’s oversight role in respect of significant projects, Council may require Departments to obtain Council’s authority to initiate specific procurements by identifying procurement projects of interest, such as procurements that are of a high value or involve significant risk, security concerns or significant community interest.

8.3 To avoid the potential appearance of bias or political influence in procurement contract award decisions, members of Council will have no involvement in competitive procurement processes from the time those procurement process have been initiated through the advertisement or issuance of the solicitation document until a contract has been entered into with the successful bidder, except where Council is required to approve the contract award in accordance with Section 16 of this By-law.

Section 9 - Roles, Responsibilities and Authorities

Specific responsibilities pertaining to all stages of a procurement process, from the initial identification of requirements through to the management of contracts with suppliers, are detailed in this By-law and the Town’s procurement procedures and protocols. In addition to those specific responsibilities, the general roles and responsibilities delegated to the Town’s employees are set out below.

9.1 Chief Administrative Officer

It is the role of the CAO or designate, to implement and promote this By-law and oversee the conduct and activities of the Town’s employees in carrying out the Town’s procurement operations. In fulfilling this role, the CAO is responsible for:

Appendix "A"


14

9.1.1 Approving procurement procedures and protocols;

9.1.2 Ensuring compliance with this By-law and reporting serious or repetitive incidents of non-compliance to Council, as warranted; and

9.1.3 Submitting recommendations and reports to Council, as required under this By-law.

9.2 General Manager of Financial Services/Treasurer

It is the responsibility of the Treasurer for overseeing Purchasing staff and provide support and guidance and as required:

9.2.1 Addressing and, where possible, resolving issues or concerns that arise in respect of a procurement process or the application and interpretation of

this By-law and the Town’s procurement procedures and protocols and seeking guidance and advice from the CAO and the Clerk, as required;

9.2.2 Referring unresolved issues or concerns raised by the Town’s employees to the CAO, as necessary;

9.2.3 Auditing compliance with this By-law and reporting non-compliance, in writing, to the appropriate Department Head and/or the CAO where warranted.

9.2.4 Ensuring proper internal controls including segregation of duties.

9.3 Director of Operational Audits / Finance Department It is the role of Financial Department staff to assist in the Town’s procurement operations. In fulfilling this role, the Director of Operational Audits or designate is responsible for:

9.3.1 Researching developments in Canadian public procurement requirements and best practices and recommending updates to this By-law and the Town’s procurement procedures and protocols to reflect such developments and support the Town’s procurement goals and objectives;

9.3.2 Providing procurement advice and related services, including developing and maintaining the necessary forms, contracts, and solicitation document templates, for the purposes of fulfilling the procurement needs of the Town;

9.3.3 Developing procurement strategies and continually analyzing Town’s business requirements and spending patterns to identify opportunities for more strategic sourcing, including:

• the standardization of goods and service(s) in conjunction with departments, where appropriate and feasible; and

• the consolidation of all similar goods and service(s) where appropriate and possible.

9.3.4 Ensuring the consistent application of procurement procedures and protocols and providing procurement services in an efficient and diligent

Appendix "A"


15

manner;

9.3.5 Referring unresolved complaints from bidders or suppliers to the Bid Review Committee, as necessary, or where required in accordance with applicable procedures and protocols;

9.3.6 Providing appropriate orientation, training and tools to Town employees involved in procurement activities; and

9.3.7 Serving as the Town’s representative as a member of co-operative purchasing groups and organizations, where such membership is determined to be in the best interests of the Town.

9.4 Department Managers / Directors

It is the role of Department Managers to ensure that their requirements for goods, services and construction are met in accordance with the goals and objectives of this By-law. In fulfilling this role, Department Managers, or designates, are responsible for:

9.4.1 Exercising their authority for all procurement activity within the prescribed limits of this By-law;

9.4.2 Delegating authority approval limits to staff in compliance with this By-law and all applicable procedures and protocols;

9.4.3 Ensuring that all procurement activities and decisions are authorized by this By-Law and are carried out in accordance with the Town’s procurement procedures and protocols;

9.4.4 Monitoring all contract expenditures to ensure compliance with financial limits;

9.4.5 Identifying and addressing non-compliance with this By-law and applicable procedures and protocols within their Departments;

9.4.6 Upon discovery of instances of non-compliance, notifying the Treasurer and consulting with the CAO to obtain advice with respect to mitigating potential risks to the Town arising from the non-compliance;

9.4.7 The Department Manager or designate, shall inform the Finance Department of supplies and/or services with a total value exceeding $20,000 (or for consulting and professional services exceeding $50,000), detailing departmental requirements and including budgetary limits and authorization;

9.4.8 Shall ensure a copy of all legally executed contracts relating to the procurement of goods, services and construction are retained in accordance with the Records Retention By-law and an original copy is provided to the Clerk’s Department.

9.5 Responsibilities of Department Employees and Town Staff

Employees of all Departments are responsible for complying with this By-law. Department employees involved in procurement activities must clearly understand their obligations and responsibilities under this By-law and all applicable procedures and protocols and should consult with Purchasing staff in respect of any questions

Appendix "A"


16

regarding the application or interpretation of this By-law or the procurement procedures and protocols.

9.5.1 Where direct award by user departments is allowed under Section 13, payment may be made by Purchase Card (PC).

9.5.2 When payment by PC is not viable, a purchase order must be issued at the time of placing the order or engaging the service. Purchase Order Terms and Conditions must accompany the supplier/vendor portion of the Purchase Order.

9.5.3 When the purchase of supplies or services is greater than $10,000 but less than $20,000, documentation of three bids as required under Appendix “B”, shall be attached to the purchase order.

9.5.4 Where the purchase of consulting and professional services is greater than $20,000 but less than $50,000, documentation of three proposals as required under Appendix “B”, shall be attached to the purchase order.

9.5.5 It is important that Town staff plan effectively to allow sufficient time to follow the requirements of the procurement policy. The Town will align posting procedures of all competitive bid documents as to the time periods set out in the Canada European Economic Trade Agreement (CETA) and the Canadian Free Trade Agreement (CFTA) dependent on trade agreement monetary thresholds.

9.5.6 Departments shall inspect all deliveries of supplies and services to determine whether they meet the specifications set out in the purchase order or contract prior to receiving in the financial system.

9.5.7 Bid documents shall be retained in accordance with the Retention of Records By-law.

9.5.8 Employees of all Departments are responsible for complying with this By- law. Department employees involved in procurement activities must clearly understand their obligations and responsibilities under this By-law and all applicable procedures and protocols and should consult with the Finance Department in respect of any questions regarding the application or interpretation of this By-law or the procurement procedures and protocols.

Section 10 - Cooperative Purchasing

10.1 Staff in consultation with the Finance Department are authorized to participate in cooperative purchasing arrangements with other municipalities, regions, local boards, and public agencies within the province when in the Town’s best interests or utilize a ‘piggyback clause” within public sector contracts and consortiums. The Finance Department shall ensure that any procurement conducted through cooperative purchasing is carried out in a manner consistent with the CFTA and CETA.

10.2 Staff in consultation with the Finance Department may acquire supplies or services from a federal, provincial or municipal body, ministry, agency, board, corporation or authority or in the case of Provincial and Federal Standing Agreements, or other competitive procurement processes. Staff may take

Appendix "A"


17

advantage of these opportunities if they are deemed to be in the best interest of the Town.

10.3 Any direct award shall be considered Non-Competitive Procurement and shall follow the requirements of Appendix “C”.

Section 11 - Trade Agreements

Purchases by the Corporation may be subject to the provisions of trade agreements including but not limited to CETA and CFTA.

Where an applicable trade agreement supersedes and is in conflict with this By-Law, the trade agreement shall take precedence.

Staff that are authorized to make purchasing decisions, shall advise the appropriate Department Manager when a purchase may not conform to an applicable trade agreement as early as possible in the Bid Solicitation process.

Section 12 - Purchasing Procedures

12.1 All costs to the Town, including as applicable, acquisition, maintenance, replacement, disposal, and training, delivery, installation and extension options, less applicable rebates or discounts and including the unrecoverable portion of the HST as applicable for the specific procurement request, shall be included in determining the procurement process to be followed.

12.2 The dollar values identified in this section represent the estimated maximum total value of the procurement over its entire duration, whether awarded to one or more suppliers, considering premiums, fees, commissions and interest and providing for the total value of all possible options.

12.3 No employee of the Town shall divide or split a purchase or a contract with the sole intent of avoiding the requirements of this policy or to circumvent the prescribed approval authority dollar limits;

12.4 Procurement of supplies and services should be made from suppliers who hold contracts that were coordinated through the Finance Department on behalf of the Town, such as Qualified Supplier Rosters, Standing Offers and/or Vendors of Record.

12.5 Authority to purchase during emergency events is detailed under Appendix “C”.

12.6 The following procedures may be used in purchasing supplies and/or services for the Town:

Exempt Procurements Appendix “A”

Appendix "A"


18

Delegated Procurement Authorities Appendix “B”

Non-Standard Procurements Appendix “C”

Statement of Ethics for Public Purchasers Appendix “D”

Informal Quotations / Proposals by Departments

Appendix “E”

Request for Quotations (RFQ) Appendix “F”

Request for Tenders (RFT) Appendix “G”

Request for Proposals (RFP) Appendix “H”

Request for Supplier Qualification (RFSQ) – Supply Arrangements – Qualified Supplier Roster

Appendix “I”

Request for Standing Offers (RFSO) Appendix “J”

Development of Specifications Appendix “K”

Bid Irregularities Appendix “L”

Conflict of Interest Appendix “M”

Environmental Sourcing and Procurement Appendix “N”

Credit Card Purchases, Policies and Procedures

Appendix “O”

Section 13 - Standard Procurement

13.1 A standard procurement is the acquisition of goods, services or construction through the applicable process and method identified and described in Appendix “B” of this By-law. Depending on the type and value of the goods, services or construction required, standard procurement processes include:

13.1.1 placing an order under an existing Standing Offer;

13.1.2 conducting a Qualified Supplier Roster Competition to solicit bids from suppliers on an existing Qualified Supplier Roster;

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19

13.1.3 making Low Value Purchases using petty cash, a corporate purchasing card or the issuance of a purchase order;

13.1.4 conducting an Invitational Competition by soliciting bids from a minimum of three suppliers; or

13.1.5 conducting an Open Competition by publicly advertising and posting the solicitation document.

13.2 All standard procurement processes must be approved, conducted and reported in accordance with this By-law and all applicable procedures and protocols.

Section 14 - Non-Standard Procurement

14.1 A non-standard procurement is the acquisition of goods, services or construction through a process or method other than the process and method normally required for the type and value of the required goods, services or construction, as identified and described under Appendix “C” of this By-law. Non-standard procurement processes include:

14.1.1 a Non-Competitive Process, where the goods, services or construction are acquired directly from a particular supplier without conducting a competitive process when an Invitational Competition or an Open Competition would normally be required; or

14.1.2 a Limited Competition, where bids are solicited from a limited number of suppliers when an Open Competition would normally be required.

14.2 The use of a non-standard procurement process is only permitted under the specific circumstances set out in Appendix “C” of this By-law.

14.3 All non-standard procurement processes must be approved and conducted in accordance with this By-law and all applicable procedures and protocols.

Section 15 - Delegated Procurement Authorities

15.1 Delegated Procurement Authorities

A contract must be established by the execution of a legal agreement and/or the issuance of a purchase order before the delivery of goods, services or construction commences.

Delegated authorities to award a contract or issue a purchase order evidencing a contract are set out in the table in Appendix “B” of this By-law.

A Purchase Order is to be used when the resulting contract is straightforward and will contain the Town’s standard Purchase Order Terms and Conditions.

A legal agreement is to be used when the resulting contract is complex and will contain terms and conditions other than the Town’s Standard Terms and Conditions.

An agreement is to be executed by persons, who are authorized by Council resolution

Appendix "A"


20

to execute contract documents.

15.2 Conditions of Delegated Procurement Authority

The delegated procurement authorities are subject to the following conditions:

15.2.1 No contract award may be approved unless the approved annual budget funding in an amount sufficient to cover the procurement value is available and the procurement process was conducted in accordance with this By-law and all applicable procedures and protocols;

15.2.2 No contract may be entered into, either through the issuance of a purchase order or the execution of a legal agreement, unless the approved annual budget funding in an amount sufficient to cover the procurement value is available and the procurement process was conducted in accordance with this By-law and all applicable procedures and protocols;

15.2.3 No legal agreement may be executed unless the agreement and any ancillary documents have been prepared in a form satisfactory to the CAO in consultation with the Town Solicitor;

15.2.4 A financing lease may only be approved and entered into in accordance with the Town’s Lease Financing Policy.

15.2.5 The delegation of authority to approve a contract does not apply to a contract requiring Council approval under Section 16 of this By-law.

Section 16 - Table of Authority for Purchasing and Payments

16.1 Authority limits for purchasing and payments (cost as defined in Appendix ‘B”) are as follows:

POSITION DETAIL LIMIT*

Mayor and Council All expenditures Unlimited

Chief Administrative Officer & Treasurer

All expenditures $100,000

General Managers All expenditures $50,000

Department Directors General Purposes – day-to-day departmental requirements. Payments for approved Contracts/Service Agreements

$20,000

Department Managers General Purposes – day-to-day departmental requirements. Payments for approved Contracts/Service Agreements

$10,000

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Staff not listed above Refer to Delegation of Authority for Purchasing and Payments Policy

*Approval limits are subject to available funds in the Approved Budget

16.2 Authority for payments in this Appendix relate to payments of amounts contained in approved budgets or by resolution only. Department Heads are able to delegate signing authority to selected individual(s).

16.3 Delegated authority for approval of utility bills, payroll related regulatory remittances and other government remittances is provided to the CAO and/or Treasurer and their designates as appropriate and are excluded from this Appendix.

16.4 The numbers in this table are maximums.

Section 17 - Council Approval

17.1 The following award of contracts require Council approval, unless approved in accordance with Section 16.2.

17.1.1 Any contract requiring approval from the Province17.1.2 Any acquisition of goods or services that is not already included in the

approved budget, such as items requiring pre-budget approval or post- budget amendments, must be reported to Council to have the expenditure authorized via Resolution.

17.1.3 There is an irregularity or unresolved challenge in connection with the Procurement and, in the opinion of the CAO, in consultation with the applicable Department Head and Treasurer, the award of the contract is likely to expose the Town to significant legal, financial or reputational risk.

17.1.4 The procurement value exceeds the approval limits of delegated procurement authorities as set out in Section 15.

17.2 Where necessary, the CAO is authorized to approve the contracts normally subject to Council approval, as set out in Section 16.1, during the time that regular Council meetings are suspended, provided that a report is submitted to Council, as soon as reasonably possible, setting out the details of any contract approved pursuant to this authority.

Section 18 - Bid Irregularities

18.1 Major or Minor Irregularity and Mathematical Error

A bid irregularity is a variance between the requirements (terms, conditions, specifications, special instructions) of a bid request and the information provided in a bid response.

Irregular Results of a competitive procurement process are to be reported to

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22

Department Head and Treasurer.

For the purposes of this policy, a submission showing irregularities are classified as "major irregularities" or "minor irregularities" or “mathematical errors” and defined as follows:

A "major irregularity" is a deviation from the competitive procurement process request that affects the price, quality, quantity or delivery, and is material to the award. The bidder will be disqualified from the process. The Town must reject any offer submitted, which contains a major irregularity. The bidder will be notified of the rejection due to the major irregularity.

A "minor irregularity" is a deviation from the competitive procurement process request, which affects form, rather than substance. The effect on the price, quality, quantity or delivery is not material to the award. The bidder will be given the opportunity to adjust the irregularity and continue in the process. The Town may permit the person to correct a minor irregularity to make the submission compliant.

A “mathematical error” is a deviation in addition, subtraction, multiplication or division, or a transposition error which may or may not affect the total price. A mathematical error will be corrected based on the unit bid price, including sales tax amounts if applicable. Where the intent of the price, unit or otherwise is unclear, the bid may be declared non- compliant.

Refer to the Appendix “L” for a non-exhaustive list of examples of major and minor irregularities.

If, in the opinion of staff, any bidder has underestimated the value of the goods and/or services to be provided as reflected in its unit/bid price/fee, authorized staff may reject the bid as unbalanced (i.e., not representative of the scope of the supplies and/or services).

Section 19 - Bidder Debriefings

19.1 Where the Town has conducted a competitive procurement process, unsuccessful bidders may request a debriefing. Debriefings must maintain the confidentiality of the detailed content of the Proponent’s submissions. The goal is to assist the Proponent in better understanding the strengths and weaknesses of their own submission. The Finance Department will coordinate the arrangements for the meeting.

Section 20 - Procurement Protests

20.1 Suppliers may formally protest the outcome of a procurement process. Formal protests must be made by suppliers to the CAO and responded to by the Town’s CAO, Treasurer and/or the responsible Department Manager.

Section 21- Bid Review Committee

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21.1 Where irregularities occur, or complaints or challenges are made by bidders or suppliers in respect of a procurement process, staff will provide notice to the Treasurer to initiate the Bid Review Committee process. The BRC will review the matter with the objective of presenting a solution, recommendation or otherwise resolving the issue.

21.2 The Treasurer is responsible for establishing a Bid Review Committee (the “BRC”) for the purpose of making determinations in respect of matters referred to it by staff.

21.3 Whenever the Bid Review Committee process is initiated the Treasurer will designate the Director of Operational Audits as well as two or more other persons to sit on the committee.

21.4 If the BRC cannot reach agreement on the resolution of a matter referred to it, or otherwise considers it advisable, a report of the findings of the BRC must be prepared and submitted to the Town Solicitor for legal advice, if necessary.

Section 22 - Contract Management and Supplier Performance

22.1 Once the contract has been signed, it is essential that it be properly managed. Departments are responsible for all aspects of contract management. The following principles must be followed with respect to all Town contracts:

22.1.1 Scope Management – The scope of each contract must be appropriately managed to ensure that all deliverables are properly received, quality control is undertaken, payments are appropriately made, all timelines are met, and any extension options are appropriately exercised.

22.1.2 Payments to Suppliers – Departments are responsible for ensuring that all payments are made in accordance with the contract and for reviewing and approving supplier invoices.

22.1.3 Scope Changes and Contract Amendments – Scope changes and contract amendments are to be managed prudently when unforeseen events arise when a project is underway:

• The supplier must submit a change order request including rationale, cost and timing implications;

• The change must be approved by the Town prior to commencement

of work;

• The change must be funded within an approved budget;

• The amendment of the contract must be approved in accordance with the approval limits set out in Section 16 of this By-law; and

• If the amendment results in an increase of greater than 10% of the original contract value, the amendment must have the approval of the Department Head, Treasure or CAO or designate in accordance with Section 15 and Appendix C – Contract Extension.

22.1.4 Contract Disputes – All potential disputes with suppliers must be managed

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in accordance with the dispute resolution mechanisms outlined in the contract. Where a contract is silent on dispute resolution, Departments should ensure that potential disputes are proactively managed and appropriately escalated. Written copies of all communications and correspondence with suppliers concerning a contract dispute must be maintained by the Department.

22.1.5 The respective Department Head, or designate, is responsible for monitoring and documenting supplier performance and compliance with procurement contracts in accordance with the Town’s Supplier Performance Evaluation Protocol. Ensuring that performance problems are addressed quickly and effectively and that a written record is kept of all matters connected with performance tracking is essential to proper contract management. This protocol is available to staff on the Town’s Intranet and to suppliers on the Town’s external website.

22.1.6 Termination – A contract can only be terminated prior to its expiry date in accordance with the terms of the contract. Where necessary, legal services will be retained to provide advice on any legal risks connected with terminating the agreement.

22.1.7Supplier Disqualification– Problematic suppliers can be barred from future contracts with the Town in accordance with the Town’s Supplier Disqualification Protocol, as maintained by the Finance Department.

Section 23 - Negotiations

23.1 Notwithstanding that Negotiation may be a component of another procurement process, a Department Head or designate (dependent on level of authority Section 15) is authorized to enter into negotiations with or without formal competitive bids when any of the following circumstances apply:

23.1.1 Where there is only one known source of supply;

23.1.2 Where two or more identical bids are received;

23.1.3 When bids have been solicited and no responsive bid has been received;

23.1.4 When the lowest bid received exceeds the estimated cost;

23.1.5 When all bids fail to comply with the specifications of conditions and it is impractical to recall;

23.1.6 Where the extension or reinstatement of an existing contract would prove cost-effective or beneficial;

23.1.7 When, due to market conditions, required goods or services are in short supply;

23.1.8 All responsible and responsive submissions exceed the budget by a material amount as determined by the Treasurer;

23.1.9 Fewer than two (2) submissions are received in a formal competitive procurement process;

23.1.10 An award of the contract to the lowest responsible and responsive vendor is considered to not be in the best interest of the Town.

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23.1.11 Emergencies which could not be foreseen, that could be a threat to public health or safety and require immediate delivery of supplies and/or performance of contract.

23.1.12 A Roster has been developed in accordance with the Qualified Supplier Roster Protocol.

23.2 The Negotiation Protocol contains established guidelines and procedures for negotiating with bidders or suppliers. This protocol should be read in conjunction with the Town’s Procurement By-law and contains the following negotiation procedures:

• Negotiation with Supplier in a Non-Competitive Process

• Negotiation with Bidders in a Competitive Process

• Consecutive Negotiation Process

• Concurrent Negotiations and Best and Final Offers

• Negotiation with Bidders in a Competitive Process

23.3The methods of negotiation shall be those that employ fair and ethical practices. The information pertinent to and the results of all such negotiations shall be reported to the Treasurer and at the discretion of the CAO, shall be reported to Council.

Section 24 - Records Retention and Access to Information

24.1 All procurement activities must be supported by appropriate documentation and all records relating to a procurement process must be retained in accordance with the Town’s Records Management By-law and any associated records management policies and procedures.

24.2 Disclosure of information related to the Town’s procurement processes must be made in accordance with applicable procurement procedures and protocols and the Town’s policies with respect to disclosure and protection of information in accordance with the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA) and the Personal Health Information Protection Act (PHIPA), as amended.

Section 25 - Unsolicited Proposals

25.1 All unsolicited proposals, including any offers for presentations or product/service trials submitted to the Town with the expectation on the part of the submitter of obtaining consideration for an ensuing contract or purchase by the Town will not be given preference. Purchases will follow the requirements and processes contained within this Procurement Policy.

25.2 In the event, that an actual goods/services product presentation or demonstration would be required in advance of a purchase decision, such presentation or demonstration should be included as part of the formal competitive bid process.

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25.3 Any procurement resulting from the receipt of an unsolicited bid must comply with the provisions of this Procurement By-law.

25.4 In the absence of a competitive process, a contract may only be awarded in respect of an unsolicited proposal if a Non-Standard Procurement is permitted in accordance with this By-law and all applicable procedures and protocols.

Section 26 - Occupational Health and Safety

26.1 The Town will promote and incorporate the requirements of the Occupational Health and safety Act, R.S.O. 1990, C. O.1, in procurement activities of the Town.

Section 27 - Accessibility for Ontarians with Disabilities

27.1 When purchasing goods, services and facilities it shall be required to incorporate accessibility design, criteria and features except where it is not practicable to do so. This is a requirement of the Integrated Accessibility Standard Regulation (O.Reg.191/11) under the Accessibility for Ontarians with Disabilities Act 2005, S.O. 2005, c.11.

27.2 When preparing the specifications, the user department shall be knowledgeable of the Accessibility for Ontarians and Disabilities Act 2005 and its regulations and apply those requirements with respect to procuring goods, services and/or facilities, and in the development of specifications.

Section 28 - Environmentally Sustainable Procurement

28.1 The Town is committed to the purchase of goods and services with due regard to the preservation of the natural environment and to encourage the use of sustainable and environmentally friendly products and services.

28.2 All departments, are encouraged to seek additional ways of achieving the goal of

being environmentally safe and responsible thorough review of each procurement process to ensure that, wherever possible and economically feasible, the Town’s solicitation document includes specifications that reflect sustainable and environmentally friendly attributes of the goods and services, as further described in Appendix N – Environmental Sourcing and Procurement.

Section 29 - Sale and Other Disposition of Real Property

29.1 The procedures for the sale of real property are found in Greater Napanee By-Law 2007-0059, as amended, a By-Law to Establish Procedures Governing the Sale and Other Disposition of Land.

Section 30 - Quarterly Report to Council

30.1 The Finance Department must submit a quarterly procurement information report

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to Council to provide the following information about the Town’s procurement activities:

30.2 The circumstances and details of any emergency purchase(s) with a Procurement value equal to or greater than $100,000; and

30.3 The circumstances and details of all non-standard procurements with a procurement value equal to or greater than $10,000.

Section 31 - By-Law Review

31.1 This Procurement By-law will be reviewed every five (5) years, or such earlier date as the CAO or designate or Council may deem it appropriate to evaluate its effectiveness.

Section 32 - Short Title

32.1 The short title of this By-law is the “Procurement By-law”.

Section 33 - Interpretation of By-Law

3This By-law shall be interpreted in accordance with the following:

33.1.1 the part numbers and headings, subheadings and section, subsection, clause and paragraph numbers are inserted for convenience of reference only and shall not affect the construction or interpretation of this By-law;

33.1.2 this By-law shall be construed with all changes in number and gender as may be required by the context;

33.1.3 references in this By-law to any legislation or any provision thereof include such legislation or provision thereof as amended, revised, re-enacted and/or consolidated from time to time and any successor legislation thereto.

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Section 34 - Appendices

Appendix “A” to this By-law – Exempt Procurements forms an integral part of this By-law and is attached hereto.

Appendix “B” to this By-law – Delegated Procurement Authorities forms an integral part of this By-law and is attached hereto.

Appendix “C” to this By-law – Non-Standard Procurements forms an integral part of this By-law and is attached hereto.

Appendix “D” to this By-law – Statement of Ethics for Public Purchasers forms an integral part of this By-law and is attached hereto.

Appendix “E” to this By-law – Informal Quotations / Proposals by Departments forms an integral part of this By-law and is attached hereto.

Appendix “F” to this By-law – Request for Quotations (RFQ) forms an integral part of this By-law and is attached hereto.

Appendix “G” to this By-law – Request for Tenders (RFT) forms an integral part of this By-law and is attached hereto.

Appendix “H” to this By-law – Request for Proposals (RFP) forms an integral part of this By-law and is attached hereto.

Appendix “I” to this By-law – Request for Supplier Qualification (RFSQ) – Qualified Supplier Roster - Supply Arrangements forms an integral part of this By-law and is attached hereto.

Appendix “J” to this By-law – Request for Standing Offers (RFSO) forms an integral part of this By-law and is attached hereto.

Appendix “K” to this By-law – Development of Specifications forms an integral part of this By-law and is attached hereto.

Appendix “L” to this By-law – Bid Irregularities forms an integral part of this By-law and is attached hereto.

Appendix “M” to this By-law – Conflict of Interest forms an integral part of this By-law and is attached hereto.

Appendix “N” to this By-law – Environmental Sourcing and Procurement

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Appendix “A” - Exempt Procurements

Competitive Bidding processes are not required for the following categories. The listing below is not a comprehensive listing. Purchasing staff will, from time to time, review and approve new situations or items to determine if they fall within the purview of this Appendix. For exceptions outside of this Appendix purchasing staff may request the user department follow the requirements of Appendix “C” – Non-Standard Procurement.

a) Petty Cash Items - Maximum $50 per transaction

• Work to be performed on the property under the provisions of a lease, warranty or guarantee held in respect of the property or the original work.

• Goods purchased on a commodity market.

b) Training / Education / Professional Development – paid via PC or Cheque Requisition

• Conferences / Conventions / Courses / Seminars / Workshops - If employee paid, reimbursement will be made through payroll

• Magazines / Periodicals / Subscriptions

• Memberships

• Corporate staff development, workshops and training including all related, equipment, resources, supplies, trainers, coaches and speakers

c) Refundable Employee Expenses – reimbursed through payroll

• Meal allowances

• Miscellaneous – non-travel

• Travel expenses

• Entertainment expenses d) Corporate General Expenses

• Payroll and Benefit Premiums and remittances

• Recruitment services

• Public employment contracts

• Advertising in newspapers, radio, television, etc.

• Employee Medicals

• Medical or other Investigative Services

• Ongoing Licences– including Hardware and Software Licences and maintenance contracts

• Debenture payments

• Insurance premium payments, claim settlements and adjuster services

• Grants to agencies

• Damage claims

• Petty cash replenishment

• Tax remittances

• Property tax refunds

• Workplace Safety and Insurance Board (WSIB) remittance

• Building/Development permit refunds and deposit returns

• Charges to or from other government agencies with approval from Finance, including;

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• Regional Permits

• Cross Boundary Agreements

• Fire Dispatch Agreements

• Radio Trunking License

• Vehicle Licensing

• Police Services

• Real Estate transactions including the acquisition or rental of land, existing buildings, or other immovable property or the rights thereon

• Bank charges

• Development Charges, Connection Fees, and Cash in Lieu refunds

• Brokerage Fees

• Commissions

• Taxi Services

• Recreation program/facility refunds

• Committee Fees e) Professional and Special Services

• Counselling services

• Legal counsel and professional and expert services as required and authorized by a Department Head in consultation with the Treasurer and/or CAO.

• Legal counsel and professional and expert services for employment and labour law matters as required and authorized by the Department Head, Human Resources in consultation with the Treasurer and/or CAO

• Arbitrators, Mediators and Investigators

• Acquisitions from philanthropic institutions, non-profit organizations, prison labour or natural persons with disabilities

• Financial services respecting the management of government financial assets and liabilities (i.e. treasury operations), including ancillary advisory and information services, whether or not delivered by a financial institution

• Appraisal charges

• Land survey costs where competitive bids are not able to be obtained

• Hiring of consultants or contractors to complete project deficiencies or complete the work of a developer where the developer has abandoned the project or is negligent in completion and where funds to complete the work are being drawn from deposits held by the Town and where time does not permit a competitive bidding process

• Special Events - performers, artists, speakers, facility rental, catering, equipment, resources and supplies

• Honorarium where a Social Insurance Number shall be provided

• Providers of artistic and recreational services, such as instructors, dance/yoga/gymnastic teachers, historical experts, artistic designers, health and appearance therapists, public/guest speakers, individuals or ensembles that offer creative content for presentation to others.

Staff engaging Professional & Special Services (Section e) listed above are responsible

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to request proof of commercial general liability insurance and certificate of good standing with WSIB and keep all documentation current until completion of the work. Exceptions must be pre-approved by the Treasurer.

f) Utilities

• Servicing and requested plant modifications / relocations related to construction

• Postage and Courier Services

• Water and Sewage

• Hydro and Gas

• Telephone (basic services), Cellular and Wireless Devices

• Service relocations when required by a designate authority, e.g. Union Gas, Ontario Hydro

• Cable or CCTV Television Charges

• Radio system licensing

• Services and Inspection of the Technical and Safety Standards Association (TSSA)

• Other regulated authorities operating within and across municipal right of ways (e.g. CN Rail, Bell Canada)

g) Election materials

The Clerk has the authority to purchase goods, services and equipment considered necessary or advisable to carry out the requirements of the Municipal Elections Act, S.O. 1996, c.32. The Clerk shall wherever possible be guided by the provisions of this Policy.

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Appendix “B” - Delegated Procurement Authorities

*Total procurement value includes all costs to the Town, including as applicable, acquisition, maintenance, replacement, disposal, and training, delivery, installation and extension options, less applicable rebates or discounts and including the unrecoverable portion of the HST, as applicable for the specific procurement request, and represent the value of the annual contract or entire multi-year contract.

Total

Procurement Value *

Procedure

Mandatory

Requirements

Authority to Approve the Award of a

Contract and Issue a PO

For the Procurement of Supplies or Services:

<$10,000

Low Cost Purchase/Direct Award by User Departments also includes purchases made through the Qualified Supplier Roster or Vendor of Record List

Payment by Purchasing Card (PCOS) or Purchase Order.

In accordance with spending authority.

>$10,000

Qualified Supplier Roster Competition issued to all applicable suppliers on Qualified Supplier Roster or Vendor of Record List

Refer to Delegation of Authority for Purchasing and Payments Policy.


Limited to maximum dollar value as specified in the Standing Offer

Request for Standing Offer - Utilization of Standing Offers – Call-up issued to one supplier from these lists.

Appendix I Purchase Order


$10,000 but

<$20,000

Invitational / Informal Quotations/Proposals by User Departments

Appendix “E”

Award Form

Purchase Order


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33

$20,000 but

<$50,000

Request for Quotations (RFQ) or Request for Proposals (RFP) by User Departments in consultation with Purchasing Staff

Appendix “F”

Appendix “H”

Award Form Purchase Order


>$50,000

Request for Tenders (RFT) and Request for Proposals (RFP) by User Departments in consultation with Purchasing Staff

Appendix “G”

Appendix “H”

Award Form

Purchase Order


For the Procurement of Construction:

<$10,000 Direct Award by User Departments

Payment by

Purchasing Card

(PCOS) or

Purchase Order

In accordance with spending authority

$10,000 but

<$20,000

Informal Quotations by User Departments or the Qualified Supplier Roster Protocol (Direct Award or Roster Competition) or Vendor of Record List

Appendix “E”

Award Form

Purchase Order

Manager Approval

Required


$20,000 but

<$50,000

Request for Quotations or Qualified Supplier Roster Protocol (Roster Competition) or Vendor of Record List

Award Form

Purchase order

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$50,000 but <$100,000

Request for Quotations (RFQ) or Request for Proposals (RFP) or Qualified Supplier Roster Protocol (Roster Competition) or Vendor of Record List by User Departments in consultation with Purchasing Staff

Appendix “F”

Appendix “H”

Award Form if over $100,000

Purchase

Order


For Non-Competitive Procurement:

>$10,000

Single Source

Sole Source

Contract Extension/Purchase Order Increase

Appendix “C”

Non-Competitive Award Form

Purchase Order

Purchase Order Amendment

Treasurer, Clerk or CAO (or designate)

>$10,000

Consulting Services – Repetitive Projects/Assignments for Continuous Service

Appendix “C”

Non-Competitive Award Form

Award Form

Purchase Order


>$30,000

Standardization –purchases based on an approved Standardization Award Form that Resulted in Single Source

Appendix “C”

Non-Competitive Award Form Purchase Order


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35

For Emergency Procurement:

Total Procurement Value

Procedure

Authority to Approve

>$25,000

A report must go to Council if the procurement is over the approved budget

CAO or Treasurer

<$25,000

A report must go to Council if the procurement is over the approved budget

Department Head

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36

For Contract Renewals:

>$30,000

Optional Year Contract Renewal where provision for such optional year renewal formed part of the original contract

Award Form

Purchase Order


For Qualified Supplier Roster

Roster established through Request for Supplier Qualification (RFSQ) Process by Purchasing Staff

Appendix “I”

Approval Form for > $30,000

Master Framework Agreements required


Council Approval Required

Threshold

Procurement of Any Goods, Services or Construction for

which:

Approval Authority

All • Statute requires Council approval

• Contract requiring approval from the Ontario Municipal Board

• Exemption from any or all purchasing methods is required.

• Budget has not been approved.

• Increased funding from a reserve fund is required.

• There is an irregularity or unresolved challenge in connection with the Procurement Project and in the opinion of the CAO or designate, in consultation with the applicable

Council

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Department Head and Treasurer, the award of the contract is likely to expose the Town to significant legal, financial or reputational risk.

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38

Appendix “C” - Non-Standard Procurements

In certain circumstances, the Town may not have the ability to go through a competitive process for its procurement activity. In specific reference to Appendix “C”, the following are types of direct awards:

Contract Extensions

Contract extensions shall be allowed in accordance with the allowable limited tendering circumstances shown under Appendix C – a to j.

1. Any individual or cumulative scope changes required by unforeseen circumstance arising during performance of a Contract that do not exceed 10% of the original Contract value shall be considered to fall within the scope of the Contract and not require separate competition. Such contract extensions shall be approved by the requisitioning Department Head or Treasurer or CAO in accordance with spending authorities.

2. Any individual extension to the value of a Contract beyond the value established in 1. (Contract Extensions) is considered a non-competitive procurement and approval must be sought by the Department Head before proceeding. Such contract extensions shall be approved by the requisitioning Department Head or Treasurer or CAO in accordance with spending authorities.

3. Non-monetary Contract changes which alter the originally agreed Contract terms and/or the originally approved financial account numbers shall be approved by the requisitioning Department Head.

Single Sourcing – where purchases are made through a selected supplier, even though there are other suppliers that provide similar supplies or service.

Sole Sourcing – where there is only one available supplier for the source of the supplies or service.

Purchase Order / Contract Increase – represents additional work that is required to address an unexpected problem or unforeseen circumstances and is required to deliver the original approved work and not expand the original scope of the project.

Standardization - is the adoption of a single product, service or support activity to be used by one department or a number of departments, whereby a particular supplier may be identified based on technical specifications and sourced to the exclusion of others. This process will allow for a reduction in the number of supplies and services required, maximize volume buying opportunities, reduced handling, training and storage costs.

Consulting Services – Repetitive Projects/Assignments for Continuous Service

Where it has been deemed beneficial to the Town to retain a Consultant on a project where previous involvement in earlier stages of the project may have ensued, the funds

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39

are provided as defined in the appropriate budget, and the cost shall not exceed $50,000, the initiating Department Head shall submit a report to the Chief Administrative Officer recommending the appointment of the Consultant and request an exemption from the terms of this policy outlining the reasons for so doing. For projects over $50,000 the initiating Department Head shall submit a report to Council requesting an exemption from the terms of this policy outlining the reasons for so doing.

No Submissions Received

Where a bid has been publicly advertised and no submissions were received, no bids conformed to the essential requirements of the bid document or no suppliers satisfied the conditions for participation.

Non-Competitive Approval Form

For non-competitive procurement under the Sections above, the Department Head shall initiate a single source award report including rationale for requesting non-competitive procurement prior to making a commitment to a supplier or prior to commencing any work. Purchasing staff shall be involved and guide any negotiation process to ensure the Town employs fair and ethical practices.

Emergency - when an event occurs where in the opinion of an Emergency Authorized Person, to be a threat to public health, the maintenance of essential Town services, the welfare of persons or of public property, the protection of the Town’s physical assets, or the security of the Town’s interests or financial liabilities arising from unexpected conditions, and the occurrence requires the immediate delivery of supplies or service. The Department Head may make such purchases without the involvement of purchasing staff and/or a competitive bidding process and without regard to the authorization limits and is authorized to do so in the most expedient and economical means possible. When feasible, purchasing staff shall be contacted to assist in obtaining quotes, securing services, and issuing purchase orders.

In the case of a declared emergency, the Town of Greater Napanee Emergency Plan will supersede this By-Law. The emergency award report shall detail the cause of the emergency and the action taken to resolve the emergency and shall be submitted for approvals within two working days following the resolution of the emergency. Where the emergency situation may be prolonged, the Department Head shall contact purchasing staff to determine the course of action moving forward. Executed Contracts

Copies of executed contracts shall be kept on file with the Non-Competitive Approval Form in the Finance Department. Original executed contracts shall be provided to the Clerk’s Department and kept on file in accordance with the Records Management By-law.

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40

Trade Agreement Requirements

All non-competitive procurement greater than $100,000 shall be awarded on the Town Procurement Portal (Bids and Tenders) as required by the CFTA.

Limited Tendering

Goods, services and construction may only be acquired through a non-standard procurement process under the following limited tendering circumstances:

a. Where a standard procurement process conducted in accordance with this By-law and applicable procedures and protocols has not resulted in the receipt of any bids.

b. Where only one supplier is able to meet the requirements of a procurement in order to:

• ensure compatibility with existing products;

• recognize exclusive rights, such as exclusive licenses, copyright and patent rights;

• maintain specialized products that must be maintained by the manufacturer or its representative;

• work is to be performed on a property by a contractor according to provisions of a warranty or guarantee held in respect of the property or the original;

• work is to be performed on a leased building or related property, or portions thereof, that may be performed only by the lessor; or

• the supply of goods or services is controlled by a supplier that is a statutory monopoly.

c. Where there is an absence of competition for technical reasons and the goods or services can only be supplied by one particular supplier and no alternative or substitute exists.

d. For the procurement of goods or services relating to matters of a confidential or privileged nature where the disclosure of those matters through an open competition could reasonably be expected to compromise government confidentiality, cause economic disruption or otherwise be contrary to the public interest;

e. For the procurement of goods or services or construction from a public body or a non-profit organization.

f. For the procurement of goods, services or construction through the use of

Ontario’s Vendor of Record (VOR) Program, where analysis supports best value.

g. For the procurement of goods under exceptionally advantageous circumstances such as bankruptcy or receivership, but not for routine purchases.

h. For the procurement of a prototype of a first good or service to be developed in the course of and for a particular contract for research, experiment, study or original development, but not for any subsequent purchases.

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41

i. For the procurement of goods, services and construction that is financed primarily from donations that are subject to conditions that are inconsistent with a standard procurement process conducted in accordance with this By- law and applicable procedures and protocols.

j. A Roster for Professional Services has been developed in accordance with the Qualified Supplier Roster Protocol.

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42

Appendix “D” - Statement of Ethics for Public Purchasers, Statement of Ethics for

Procurement

Goal: To ensure ethical, professional and accountable procurement.

All employees authorized to purchase Goods, Services and/or Construction on behalf of the Town must adhere to the following principles.

Open and Honest Dealings with Everyone who is Involved in the Purchasing Process. Procurement activities must be open and accountable. This includes all businesses with which this Town contracts or from which it purchases Goods, Services and/or Construction, as well as all members of our staff and of the public who utilize the services of Purchasing Staff.

Fair and Impartial Award Recommendations for All Contracts and Tenders. Contracting and purchasing activities must be fair, transparent and conducted with a view to obtaining the best value for public money. This means that Town Staff do not extend preferential treatment to any vendor, including local companies. Not only is it against the law, it is not good business practice, since it limits fair and open competition for all vendors and is therefore a detriment to obtaining the best possible value for each tax dollar.

An Irreproachable Standard of Personal Integrity on the Part of All Those Designated as Purchasing Representatives for This Town. Individuals involved with procurement activities must act, and be seen to act, with integrity and professionalism. Honesty, care, and due diligence must be integral to all procurement activities within and between the organization, suppliers, and other stakeholders. Respect must be demonstrated for each other and for the environment. Confidential information must be safeguarded. Participants must not engage in any activity that may create or appear to create, a conflict of interest, such as accepting gifts or favours, providing preferential treatment, or publicly endorsing suppliers or products.

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43

Appendix E – Invitational Informal Quotations / Proposals by Departments

The Invitational RFQ format is the default format for Invitational Competitions where the selection of the successful bidder will be based on lowest price. The Invitational RFP format is the default format for Invitational competitions where the evaluation will include criteria in addition to price and the selection of the successful bidder will be based on highest score.

For procurement of supplies, services, construction, as well as consulting and professional services from $10,000 – up to but not including $20,000, the process shall be conducted in the following manner:

• user departments shall utilize all applicable Town contracts where available;

• a minimum of three compliant bids/proposals (from three separate suppliers) shall be obtained by the user department in written communication (a “No Bid” response shall not be considered a valid bid);

• staff are encouraged to seek more than the minimum three bids and to vary the selection of bidders to ensure a more competitive process;

• staff shall refer to the suspended vendor list before invitations are sent;

• all bidders shall receive the same request information, terms and conditions;

• staff shall utilize templates approved by the Finance Department;

• award for quotations shall be to the lowest compliant bid, award for proposals to the highest ranked compliant proposal;

• bids/proposals shall be kept on file in the user department in accordance with the Retention of Records By-law.

Purchasing staff may waive the requirement for three bids, where the user department has demonstrated to the satisfaction of purchasing staff that three bids could not be obtained.

Informal request for proposals should be issued in the same manner as the Request for Proposals (RFP) procedure as outlined in Appendix “H”.

A purchase order is required and bid information shall be attached. Any contract document, other than a purchase order, shall be reviewed by purchasing staff and forwarded to the Clerk and Treasurer or CAO, as per Section 14 (Delegated Purchasing Authorities), for execution.

For services and construction, the user department shall ensure the following documentation is received:

• A Certificate of Insurance naming the Corporation of Greater Napanee as additional insured providing proof of commercial general liability as required based on the risk associated with the procurement. Generally, limits are

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recommended to be not less than $5,000,000.00 however limits less than $5,000,000.00 may be approved in consultation with the Clerk and Treasurer. Additional Insurance coverage may also be required and will be outlined within provided Procurement documents; and

• A certificate of good standing with the Workplace Safety and Insurance Board (WSIB) demonstrating the supplier has complied with the requirements and that all requisite premiums under the Act have been paid;

The user department shall contact Finance Department staff for assistance when required.

Staff shall monitor the requirements set out in this Appendix and shall report noncompliance to the Department Head and Treasurer.

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Appendix “F” – Request for Quotations (RFQ)

For procurement of supplies and services from $20,000 – up to but not including $50,000; and for procurement of construction from $50,000 – up to but not including $100,000, the process shall be conducted in the following manner:

• quotations will be advertised publicly using the Greater Napanee Procurement Portal, or sent directly to suppliers by invitation only as agreed between the user department and purchasing staff;

• tenders shall be advertised using the Greater Napanee Procurement Portal for a minimum of twenty-five (25) calendar days preceding the closing date for tenders or sent directly to suppliers by invitation only as agreed between the user department and purchasing staff;

• the requirement for advertising twenty-five (25) days under item may be reduced to ten (10) calendar days provided;

o a prequalification has been issued in advance, or o a notice of planned procurement has been posted using the Greater

Napanee Procurement Portal at least forty (40) calendar days (and not more than 12 months) in advance of the tender posting.

o where bids are sent directly to suppliers by invitation, staff are encouraged to seek more than the minimum three bids and to vary the selection of bidders to ensure a more competitive process;

• every department shall provide technical assistance in the preparation of the quotation specifications, drawings, etc.;

• purchasing staff shall assist in the preparation and posting to the Greater Napanee Procurement Portal (if applicable) of the bid documents;

• staff shall attempt to obtain a minimum of three bids where possible, however may seek more than the minimum three bids to ensure a more competitive process;

• quotation responses shall be received using the Greater Napanee Procurement Portal or other such method at the discretion of purchasing staff.

Quotations shall be awarded to the lowest compliant bid meeting all requirements specified in the quotation document.

If two or more compliant bids are submitted in the same amount, bidders will be allowed 24 hours to re-examine their bids to determine if there are any cost savings that may be passed on to the Town. If this effort is unsuccessful, then a tie break method (coin flip) will be held to determine the successful bidder. The outcome of the tie breaking method is final.

The Town may but shall not be required to award or accept a quotation, and may choose to either cancel the call for quotations or recall the quotations at a later date:

• when only one bid has been received;

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• when the lowest compliant bid exceeds the available project budget for the supplies or

service;

• when all bids received are non-compliant with the specifications or quotation terms and conditions.

Department staff shall award the contract after the submission of an approved award form to the Finance Department.

Where an award is being made to the lowest compliant bid, but the bid exceeds the current approved budget by a material amount as determined by the Treasurer, shall be approved by Council.

A purchase order shall be created, and a contract shall be executed if required.

Award forms and copies of executed contracts shall be kept within secure files in the Finance Department. Original contracts shall be provided to the Clerk’s Department and kept on file in accordance with the Retention of Records By-law.

The Town shall publish an award notice using the Greater Napanee Procurement Portal.

Changes or modifications to the terms and conditions of the contract, including changes that result in an increase in price shall be documented by purchasing staff on the purchase order and in the contract file.


• A Certificate of Insurance naming the Corporation of the Town of Greater Napanee as additional insured providing proof of commercial general liability as required based on the risk associated with the procurement. Generally, limits are recommended to be not less than $5,000,000.00, however limits less than $5,000,000.00 may be approved in consultation with the Clerk and Treasurer. Additions Insurance coverage may also be required and will be outlined within provided Procurement documents; and


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Appendix “G” – Request for Tenders (RFT)

For procurement of supplies and services with an estimated value greater than $50,000; and for the procurement of construction with an estimated value greater than $100,000, an open competitive procurement process shall be processed in the following manner:

• purchasing staff shall assist in the preparation of the formal tender, in conjunction with department staff documents including clear instructions, specifications, terms and conditions of the contract;

• every department shall provide technical assistance in the preparation of the tender specifications, drawings, etc.;

• tenders shall be advertised using the Greater Napanee Procurement Portal for a minimum of twenty-five (25) calendar days preceding the closing date for tenders;

• the requirement for advertising twenty-five (25) days under the previous item may be reduced to ten (10) calendar days provided;


Napanee Procurement Portal at least forty (40) calendar days (and not more than 12 months) in advance of the tender posting.

• the Town shall advertise tenders on any designated electronic Canada-wide single point of access (SPA) as directed by the Government of Canada.

Tenders shall have a specified closing date and time. Tenders received after the set closing date and time will not accepted.

Tenders shall be awarded to the lowest compliant bid meeting all requirements specified in the tender document.

If two or more compliant tenders are submitted in the same amount, bidders will be allowed 24 hours to re-examine their bids to determine if there are any cost savings that may be passed onto the Town. If this effort is unsuccessful, then a tie break method will be held to determine the successful bidder. The outcome of the tie breaking method is final.

The Town may but shall not be required to award or accept a tender, and may choose to either cancel the call for tenders or recall the tenders at a later date:

• when only one tender has been received as the result of a tender call;

• when the lowest compliant tender exceeds the available project budget for the supplies, service or construction;

• when all tenders received fail to comply with the specifications or tender terms and conditions; or

• when a material change in the scope of work or specifications is required.

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Department Staff following the submission of a tender award form, shall notify the successful bidder of the Town’s intent to award the contract. Should a report to Council respecting the award of the contract be required, the report shall remain confidential until it is distributed to Council.

Where a formal contract is required, it shall be submitted, at the time of notification, to the successful bidder for execution.

Where a bidder has been notified of the Town’s intent to award the contract, and the successful bidder fails to execute the contract or to provide any other required documents within the specified time, Department staff, after consultation with purchasing staff, may:

• grant the successful bidder additional time to fulfill the requirements;

• award the contract to the second lowest bidder; or

• cancel the Request for Tenders.

Where an award is being made to the lowest compliant bid, but the bid exceeds the current approved budget by a material amount as determined by the Treasurer, shall be approved by Council. Award forms and copies of executed contracts shall be kept on file with the bid documents in the Finance Department. Original executed contracts shall be provided to the Clerk’s Department and kept on file in accordance with the Retention of Records By-law.




• A Certificate of Insurance naming the Corporation of the Town of Greater Napanee as additional insured providing proof of commercial general liability as required based on the risk associated with the procurement. Generally, limits are recommended to be not less than $5,000,000.00 however limits less than $5,000,000.00 may be approved in consultation with the Clerk and Treasurer. Additional insurance coverage may also be required and will be outlined within the provided Procurement documents;


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Appendix “H” – Request for Proposals (RFP)

Request for Proposals are used where comprehensive technical specifications cannot be fully defined or specified, or when alternate methods are being sought to perform a certain function or service. Requests for Proposals are also used to procure consulting and professional services.

Request for Proposals shall be processed in the following manner:

• Finance Department staff shall assist in the preparation of the RFP documents in conjunction with department staff, including clear instructions, project scope/outcome and/or requirements, terms and conditions of the contract;

• every department shall provide technical assistance in the preparation of the proposal documents;

• mandatory requirements shall be clearly articulated and any proposal that fails to meet these mandatory requirements shall be deemed non-compliant;

• proposal documents shall clearly outline the technical and pricing evaluation criteria and applicable weighting assigned that will form the basis of contract award;

• proposals valued over $20,000 shall be advertised using the Greater Napanee Procurement Portal for at least twenty-five (25) calendar days preceding the closing date for proposals;

• the requirement for advertising twenty-five (25) day under the previous item may be reduced to ten (10) calendar days provide;


Napanee Procurement Portal at least forty (40) days (and not more than 12 months) in advance of the proposal posting.

• the Town shall advertise proposals on any designated electronic Canada- wide single point of access (SPA) as directed by the Government of Canada.

RFP evaluation committee members shall be determined prior to the closing time of the Request for Proposals, and

• are responsible to fully review each submission and complete the evaluation matrix as provided; and

• must hold all contents of the proposal submissions in strict confidence,

Proposals shall have a specified closing date and time. Proposals received after the set closing date and time will not be accepted.

Proposals shall be awarded to the highest ranked compliant submission meeting all mandatory requirements set out in the related proposal document.

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The Town may but shall not be required to award or accept a proposal, and may choose to either cancel the call for proposals or recall the proposals at a later date:

• when only one proposal has been received as the result of a call for proposals;

• when the highest ranked proposal exceeds the available project budget for the supplies or service;

• when all proposals received fail to comply with the mandatory terms and conditions; or

• when a material change in the scope of work or specifications is required.

Department Staff following the submission of a proposal award form, shall notify the successful bidder of the Town’s intent to award the contract. Should a report to Council respecting the award of the contract be required, the report shall remain confidential until it is distributed to Council.

Where a formal contract is required, it shall be submitted, at the time of notification, to the successful proponent for execution.

Where a proponent has been notified of the Town’s intent to award the contract, and the successful proponent fails to execute the contract or to provide any other required documents within the specified time, purchasing staff may:

• grant the successful proponent additional time to fulfill the requirements;

• enter into negotiations with the next highest ranked proponent; or

• cancel the Request for Proposals.

Where an award is being made to the highest ranked bid, but the bid exceeds the current approved budget the award shall be approved and reported.

Award forms and copies of executed contracts shall be kept on file with the proposal documents, including all individual and consensus scoring documents, in the Finance Department. Original executed contracts shall be provided to the Clerk’s Department and kept on file in accordance with the Retention of Records By-law.

On request, the Town shall provide an unsuccessful proponent with an explanation of the reasons why the Town did not select its proposal.



For services and construction, the user department shall ensure the following documentation is

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received:

• A Certificate of Insurance naming the Corporation of the Town of Greater Napanee as additional insured providing proof of commercial general liability as required based on the risk associated with the procurement. Generally, limits are recommended to be not less than $5,000,000.00 however limits less than $5,000,000.00 may be approved in consultation with the Clerk and Treasurer. Additional Insurance coverage may also be required and will be outlined within provided Procurement documents; and


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Appendix “I” – Request for Supplier Qualification - Rosters– Supply Arrangements

The purpose of a Request for Supplier Qualification (prequalification) is to ensure that each supplier bidding to perform work for the Town can demonstrate its ability to provide the necessary expertise and resources to satisfactorily complete the work required.

Pre-Qualification may be considered in the following circumstances:

a) the work will require substantial project management by the Corporation and could result in substantial cost to the Corporation if the Supplier is not appropriately experienced;

b) the Goods and/or Services to be purchased must meet national safety standards; c) the work involves complex, multi-disciplinary activities, specialized expertise,

equipment, materials or financial requirements; d) miscellaneous repairs or services as required by the Corporation such as

plumbers, electricians, and drywall contractors; e) there could be substantial impact on the Corporation’s operations if the work is

not satisfactorily performed the first time; or f) any other circumstances deemed appropriate by the CAO.

Purchasing staff shall assist in the preparation of the prequalification documents including specific criteria which are used to collect information from and to identify qualified suppliers in advance of one or more expected future projects. Information may include, but not be limited by the following:

• previous experience if essential to meet the project requirements;

• capacity of the contractor to fulfill the contract requirements; and

• the facilities and/or equipment to perform the work.

Only the prequalified suppliers shall be invited to respond to a subsequent Request for Quotations, Request for Tenders or Request for Proposals for the services outlined within the RFSQ document.

RFSQ documents shall be advertised using the Loyalist Town Procurement Portal (Bonfire) for a minimum of twenty-five (25) calendar days preceding the closing date for submissions. Where subsequent procurement is required, it shall be advertised for ten (10) calendar days.

When utilizing the RFSQ process for a Qualified Supplier Roster please follow the information contained within the Qualified Supplier Roster Protocol.

Purchasing staff shall ensure that the terms and conditions of the RFSQ document contain specific language to disclaim any obligation on behalf of the Town, to call on any supplier as a result of such prequalification.

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Appendix “J” - Request for Standing Offers (RFSO)

Requests for Standing Offer are a competitive form of Procurement (Open Competition) and will be advertised on the Greater Napanee Procurement Portal for a period of no less than 25 days.

This method is used to solicit standing offers to provide goods and services on an as- and-required basis, at firm prices, as per established terms and conditions. It clearly states the requirement, the evaluation method and selection criteria, the call-up procedures, the ranking methodologies, whenever applicable, to be used for making call-ups against the authorized standing offer(s), and all terms and conditions applicable to the contract that is brought into effect, as a result of any call-up.

A RFSO must include the following information, as a minimum:

• a clear definition of the requirement and the period for making call-ups;

• information on the number of standing offers intended to be authorized for use;

• offer preparation instructions;

• clear evaluation criteria;

• clear evaluation procedures and basis of selection;

• instructions informing offerors that they may request information about the results of the RFSO and how their offer was evaluated.

• clear ranking methodology where applicable;

• clear call-up procedure(s) including the method of allocating the work among multiple standing offers;

• a notice to offerors regarding disclosure of their unit prices

• conditions applicable to the RFSO;

• conditions applicable to the standing offer;

• resulting contract clauses applicable to ensuing call-ups; and

• the estimated utilization, whenever practical.

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Appendix “K” – Development of Specifications

The preparation of the specifications for Request for Quotations, Request for Tenders or Request for Proposals shall be the responsibility of the user department.

Finance Department staff shall have the authority to review and recommend improvements to the specifications when deemed necessary. The project manager shall cooperate with the Finance Department in the finalization of the specifications. Finance staff may reject any specification not consistent with the Procurement Policy By-law.

Department staff in conjunction with the Finance Department may issue a Request for Information (RFI), to gain additional information on the supplies and/or service from the vendor community or an Expression of Interest (EOI) to determine if there is sufficient vendor interest to justify proceeding with a competitive procurement process. The RFI or EOI would request detailed information such as, but not limited to, the background of the vendor and its key personnel, relevant experience, and what the vendor can offer the Town.

The following requirements shall be followed in the preparation of the specifications:

• Where appropriate technical specification should be defined in terms of performance and functional requirements, rather than design or descriptive characteristics and based on international or other standards, if they exist.

• Specifications should be detailed but not brand specific (unless allowing for approved equivalents) to leave room for potential vendors to provide alternatives in the event an equal or better-proven product or method is available to maintain a competitive procurement process.

• Where the specification requirements of the user department may result in a single source purchase, it shall be at the discretion of purchasing staff whether to authorize such specifications or to require the user department to seek approval for such specifications through the single source process addressed in Appendix “C”.

• Suppliers and/or consultants who have a commercial interest in the procurement shall not be requested to provide demonstrations, expend time, money or effort on design or in developing specifications or otherwise to help define a requirement beyond the provision of general information. Where services are required for the development of specifications, design or detailed scope of work:

o Municipal staff shall be advised prior to any agreement; and o the contracted supplier shall be considered a consultant and will not be

permitted to submit a bid for the subsequent provision of the supplies and services; and

o a fee shall be paid, the amount of which shall be determined and agreed upon with the supplier before the service commences; and

o the detailed specifications shall become the property of the Town and may be used in obtaining competitive bids.

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• Where it is not possible to prepare precise specifications to issue a Request for Quotations or Tenders, a Request for Proposals shall be issued.

• When purchasing goods, services and facilities it shall be required to incorporate accessibility design, criteria and features except where it is not practicable to do so. This is a requirement of the Integrated Accessibility Standard Regulation (O.Reg.191/11) under the AODA.

When preparing the specifications, the user department shall be knowledgeable of the Accessibility for Ontarians with Disabilities Act 2005 and its regulations.

Source documents must be included with the final materials (e.g., if a PDF is created from a Microsoft Word that Word document must be included) for the purpose of creating accessible documents. If the source file has any linked images, content or unique fonts that are not embedded or easily obtained, include as separate or packaged files. All raw data files (such as but not limited to CSV, Excel) must also be included as separate files.

When preparing the specifications, the user department shall consider the amount of packaging that would be associated with the procurement of a supply. If the required level of packaging is felt to be too excessive, then the specifications for those supplies shall require the vendor to be responsible for and bear the cost for the removal and disposal of the packaging materials.

When preparing specifications, the user department shall consider environmentally sustainable products as a first priority. When considering applicability of supplies or services, staff shall consider the following and determine if the supply or service will accomplish some or all of the following criteria;

• make efficient use of natural resources

• minimize waste

• minimize toxicity

• give preference for high quality materials that can be repaired or upgraded

• use renewable or recycled materials

• contain reusable parts or reusability

• protect indoor and outdoor air quality

Compliance with municipal, provincial and federal legislation, policies, procedures, guidelines and best practices.

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Appendix “L” - Bid Irregularities

The Financial Services department together with the requisitioning department will evaluate all submissions and may be required to disqualify a vendor’s submission. The disqualified supplier will be advised prior to Council award. A formal letter will be issued, and a debriefing offered after the award; and

The Financial Services department may amend the list of irregularities as new actions arise.

Reasons for disqualification are outlined in the following table.

# Action Irregularity Result

1 Late submission of sealed tender/proposal/quotation package to the Town (by any amount of time)

Major Automatic Rejection

2 Did not attend and sign in at a mandatory meeting held for bidders.


3 Company submitting a bid has been disqualified from participating in a competition during the time of the competition request because of past performance.


4 The Form of Tender (Form of Proposal) and/or mandatory submission sheets are completed in pencil.


5 Bid Surety or Agreement to Bond is not submitted in the submission package as stated in the competitive request (or any addenda) that such surety is mandatory.


6 Submitted an unsealed bid or proposal response package or envelope. (Does not apply to electronic tendering).


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7 Terms of the bid surety and/or Agreement to Bond are not as stated in the Request; the surety received is not in the form requested; for example, submitted a bond when not requested

Minor Financial Services may request the submission be rectified

8 Price, mandatory items required for evaluation or signature pages are missing from the submission package


9 Execution of Agreement to Bond:

a) Bond company corporate seal or equivalent proof of authority to bind company or signature is missing

b) Surety company not licensed to do business in Ontario


10 Execution of Bid Bonds:

a) Corporate seal or equivalent proof of authority to bind company or signature of the person with the authority to bind the company or both are not on the Acknowledgement and Estoppel Form /Proposal Form supplied in the request document

b) Corporate seal or equivalent proof of authority to bind the company or signature of Bonding Company missing


11 Other Bid Security:

a) Cheque which has not been certified by a Canadian Bank or an error made on the certified cheque

b) Bank Draft not on the official form of the Canadian Bank


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c) Letter of Credit not from a Canadian Bank or signed

12 A specific term of the competitive request or of the process identified in the request document is not followed and this is cause for the perception of an unfair advantage to the other bidders in the competitive process; for example, lobbying


13 Insufficient amount of the financial security (i.e. no deposit or bid bond or insufficient deposit)

Major or Minor Automatic Rejection unless amount is not specified in request and insufficiency is trivial or insignificant

14 Execution of the Form of Tender or Acknowledgement Form of proposal is not executed or executed by a person without authority or the original signed form is not submitted, and it is a photocopy.


15 Rules of the process identified in the request document are not followed but there isn’t any substantial consequence to the result of the competition; information requested but not mandatory was not submitted and it is noted in the evaluation but there isn’t any substantial consequence

Minor Financial Services may determine that the non-compliance is minor and receive the document for evaluation.

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16 Bid received on documents other than those provide in request

Minor Automatic Rejection unless specified otherwise

17 Strike outs or changes to the submission that are legible but not initialled by the signing authority

Minor 1 working day to make changes; Town reserves the right to waive initialling and accept bid if it does not significantly affect the price/offer

18 Illegible submissions – unable to clearly evaluate a submission


19 Pages with mandatory information required by the vendor are missing or left blank


20 Unsolicited alternative offer shall not be considered


21 Alternate items bid in whole or in part

Minor Available for consideration if the request invites alternative goods

22 Other mathematical errors which are not consistent with the unit prices

Minor Unit prices will govern when a total price is incorrect; where a bid deposit is incorrect, a 24- hour period is permitted to correct the bid deposit; automatic rejection if not corrected

23 Bid documents which suggest that the bidder has made a major mistake in calculations or bid

Minor Consultation with the Town Solicitor and referenced within a staff report

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Appendix “M” – Conflict of Interest

1. Staff involved in procurement activities with suppliers and consultants shall

implement provisions that:

a. Adhere to the definition of Conflict of Interest included in this policy

and the requirements of the Town’s Code of Conduct for emphasis

and clarity;

b. Reserve the right of the CAO or delegate to solely determine

whether any situation or circumstance constitutes a conflict of

interest;

c. Reserve the right of the CAO or delegate to disqualify prospective

suppliers or consultants from a procurement process due to a

conflict of interest;

d. Require prospective suppliers or consultants participating in a

procurement process to declare any actual, perceived or potential


e. Require suppliers or consultants to avoid or disclose any conflict of interest during the performance of their contractual obligations for

the town;

f. Reserve the right of the Town to prescribe the manner in which a

supplier or consultant should resolve a conflict of interest;

g. Allow the Town to terminate an agreement where a supplier or

consultant fails to disclose any actual or potential conflict of interest

or fails to resolve a conflict of interest as directed by the town; and

h. Allow the Town to terminate an agreement where a conflict of

interest cannot be resolved.

2. Staff shall be aware of the conflict of interest created when a supplier or

consulting organization is involved in the development of the competitive

documents or is involved in a study that will lead to a requirement for

development of competitive documents and also has the ability to fulfill the

procurement needs that are being contemplated in those competitive

documents.

3. Staff shall be very clear and insist on documented agreements that any

supplier or consultant involved in developing the competitive documents or

studies affecting competitive documents cannot be involved in the creation

of the response to those competitive documents.

4. There may be conflicts of interest where employees, advisors or members

of Council may be involved. When involved in a competitive bidding

process, including Requests for Proposals, employees, advisors or

members of Council are expected to declare a conflict of interest and the

CAO or designate shall request that a conflict-of-interest declaration be

signed. The employee, advisor or member of Council is ultimately

responsible and accountable to use good judgment in the exercise of the

Town’s duties and shall:

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a. Disclose conflicts of interest to the CAO or delegate, or his or her department supervisor or designate in writing; and

b. Avoid situations that may present conflicts of interest while dealing

with persons or organizations doing business or seeking to do

business with the Town.

5. Situations that might result in a conflict of interest include the following:

a. Engaging in outside employment;

b. Not disclosing an existing relationship that may be perceived as

being a real or apparent influence on their objectivity in carrying out

an official role;

c. Providing assistance or advice to a particular supplier participating

in a competitive process;

d. Having an ownership, investment interest, or compensation

arrangement with any entity participating in a competitive process;

e. Having access to confidential information; and

f. Accepting favours or gratuities from those doing business with the

organization.

6. The CAO or designate shall consider situations where there may be an

employee or advisor conflict of interest and those situations shall be dealt

with accordingly.

7. In addition to the situations that might result in a conflict of interest for all

employees and advisors, the agent shall be aware of and identify any

additional conflicts of interest that may arise as a result of evaluation team

members participating in the selection of products or services.

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Appendix “N” - Environmental Sourcing and Procurement

1) Staff are encouraged to consider environmentally responsible and sustainable products and services as part of their purchasing decisions. The objectives of environmental sourcing are to: a. Provide an environmental role model for public procurement by making it a

priority to use environmentally responsible products and services, where feasible and cost effective;

b. Support a healthier working environment for employees and for citizens in general through the purchase of environmentally preferable goods and services;

c. Increase demand for environmentally responsible products and services, which may ultimately enhance quality and cost competitiveness;

d. Increase the conservation of resources through the use of more reusable products, and/or products and services that require less energy and materials to produce or use; and

e. Reduced the Town’s Greenhouse Gas emissions and dependency on traditional energy and fuel sources.

2) The procurement needs of the Town represent a significant level of responsibility to demonstrate leadership and support for greener business practices. Integrating environmental performance and impact into supply chain decisions is a commitment to improvement of the environment and the quality of life of Town residents.

3) Sustainable procurement shall be viewed in the context of achieving value for money for the total life-cycle costs. It requires the inclusion of environmental impact considerations into the procurement process, including planning, acquisition, use and disposal. Value for money shall include the consideration of many environmental tangible and intangible factors when determining the total life-cycle costs and environmental impact.

4) The factors noted above require an understanding of the environmental aspects and potential impacts associated with the lifecycle assessment of goods and services being acquired. The life-cycle approach shall examine costs beyond the up-front acquisition cost of goods or services, such as costs associated with operating, maintaining and disposing of the goods. Environmental considerations include, among other things: the reduction of greenhouse gas emissions and air contaminants; improved energy and water efficiency; reduced waste and support of reuse and recycling; the use of renewable resources; reduced hazardous waste; and reduced toxic and hazardous substances.

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5) Assessment of life-cycle costs will commonly require input from a broad range of sources including program managers, project authorities, procurement authorities, operational users, environmental and disposal experts, cost accountants and financial management advisor, and standards organizations. Dialogue with the supplier community can also be useful to find out what is available and to inform the market of future requirements. Care should be taken not to distort competition — this process should not give any advantage to particular suppliers.

6) Activities to support green procurement should be incorporated during each stage of the procurement process. The following table outlines opportunities to integrate such considerations:

Recommended Framework: Sustainable Procurement Considerations

Procurement

Step Traditional Focus Areas Environmental Focus Areas

Step 1

Assess

Opportunity

Spend analysis focuses

primarily on materials and

logistics costs

Spend analysis encompasses

direct and indirect environmental

costs (e.g., energy consumption,

disposal, packaging waste, water)

Step 2

Assess Internal

Supply Chain

Specification focused, map

current process and identify

process opportunities

Specification review and design

considers industry’s

environmentally sound products and services

Step 3

Assess Supply

Market

Identify potential sources of

supply and perform supplier

assessments/comparisons

Supply base includes suppliers

who specialize in more efficient

and sustainable products (e.g.,

possible commodity substitutions

and new manufacturing

processes)

Step 4

Develop Sourcing

Strategy

Confirm scope, determine the

desired outcomes, and

brainstorm process

enhancement

Sustainability considerations and

criteria are specified in the RFP

document (e.g., energy, disposal,

water usage costs may be

solicited from suppliers for analysis)

Step 5

Implement

Strategy

Develop/implement supplier

solicitation strategy, conduct

supplier negotiation and award

contract

Bid analysis quantifies

cost/benefits of sustainability

attributes (e.g., energy

consumption, carbon footprint or

waste)

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Step 6

Institutionalize

Strategy

Transition to new process,

develop supplier relationships,

implement operation changes

and monitor/report

performance

Sustainability attributes closely

tracked and audited

7) Procurement measures such as purchasing environmentally responsible products and supplies as well as adopting pollution prevention criteria when purchasing goods, services and construction are examples of initiatives to advance sound environmental management for organizational operations. Other examples of green procurement would include identifying or sourcing products and services that:

a. Make efficient use of natural resources including land, air, energy and water;

b. Minimize waste by limiting purchases and packaging while increasing our waste diversion rates;

c. Are made of high quality materials that can be repaired or upgraded;

d. Minimize toxicity;

e. Are made from renewable or recycled materials;

f. Contain reusable parts or reusability;

g. Protect indoor and outdoor air quality.

8) Staff shall be able to demonstrate value for money in awarding the contract, i.e., the contract should be awarded to the proponent offering the best combination of costs, quality and performance to meet that requirement over its life cycle. The requirement for environmentally friendly products should also be tested for need, affordability and cost-effectiveness.

9) A clear definition of the technical requirements including the environmental outcomes to be achieved, terms and conditions, including environmental terms such as use of certified recyclers, mandatory requirements and bid evaluation criteria, as applicable, as well as the contractor selection methodology, shall permit the award of a contract that supports value-for-money propositions.

Staff is encouraged to familiarize themselves with environmental certification labels such as Ecologo and ENERGY STAR®.

Appendix "A"


http://portico/DepartmentsR/Environment%20portal/SustainablePurchasing/naturalresources/default.aspx?PageView=Shared

http://portico/DepartmentsR/Environment%20portal/SustainablePurchasing/naturalresources/default.aspx?PageView=Shared

http://portico/DepartmentsR/Environment%20portal/SustainablePurchasing/MinimizeWaste/default.aspx?PageView=Shared



http://portico/DepartmentsR/Environment%20portal/SustainablePurchasing/HighQualityMaterials/default.aspx?PageView=Shared

http://portico/DepartmentsR/Environment%20portal/SustainablePurchasing/MinimizeToxicity/default.aspx?PageView=Shared

http://portico/DepartmentsR/Environment%20portal/SustainablePurchasing/RenewableRecycledMaterials/default.aspx

http://portico/DepartmentsR/Environment%20portal/SustainablePurchasing/Reuse/default.aspx

http://portico/DepartmentsR/Environment%20portal/SustainablePurchasing/ProtectAirQuality/default.aspx?PageView=Shared

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Appendix “O” – Credit Card Purchases, Policies and Procedures

PURPOSE

The purpose of the Town of Greater Napanee's Credit Card Policy is to ensure that:

• credit cards are used to make only authorized purchases on behalf of the Town

of Greater Napanee;

• only duly authorized employees obtain credit cards;

• appropriate documentation supports expenses; and

• adequate security exists over cards and card numbers.

REQUIREMENTS

Credit cards are assigned to assist staff in obtaining goods and services in an expedient

manner. It provides a cost effective and timely payment method compared to the use of

electronic funds transfers or cheque issuance. It is the intent to use credit cards only to

augment the Town of Greater Napanee's Policies and Procedures. The use of credit cards in

no way supersedes the requirements set forth in the Purchasing of Goods and Services

Policy.

Authorized Departments and Staff who are Eligible to Hold a Town of Greater Napanee Credit Card

The following departments and staff are eligible to hold Town of Greater Napanee credit cards:

• The Administration, Finance, and Community and Corporate Services

Departments having the credit card holder as the Chief Administrative Officer.

• The Emergency Services Department having the credit card holder as the

General Manager of Emergency Services/Fire Chief.

• The Infrastructure Services Department having the credit card holder as the

General Manager of Infrastructure Services.

Eligible uses of the Town of Greater Napanee's Credit Card

The Town of Greater Napanee's Credit Card Policy is meant to augment the approved

Purchasing of Goods and Services Policies and Procedures. Before purchases are made with

credit cards, staff must ensure that they abide by corporate purchasing requirements

concerning eligible expenses, authorization limits, and all other requirements outlined in the

Purchasing of Goods and Services Policies and Procedures.

For those individuals who hold credit cards, pre-authorized travel expenses may be paid for by

Appendix "A"


66

using the Town of Greater Napanee's credit card. All receipts must be kept by the card holder

and attached to the monthly credit card statement. It is the card holder's sole responsibility to

ensure that the monthly credit card statement is forwarded to Financial Services and includes

all supporting documentation and account charges, is appropriately matched and reconciled and

has the card holder's authorizing signature.

Ineligible uses of the Town of Greater Napanee’s Credit Card

The credit card must not be used for:

• personal use,

• cash advances,

• payment of salary and wages, and

• for the purpose of circumventing the Town of Greater Napanee Purchasing of

Goods and Services Policies and Procedures

Under no circumstances will the card be loaned out to co-workers, colleagues or any other

associates. However, authorized credit card holders are entitled to make credit card purchases

for the departments under their control.

Credit card companies often have reward programs, which offer points that can be redeemed

for merchandise. Credit card holders shall not collect or redeem points under any

circumstances for personal benefit in any way from these programs.

Expense Authorization Procedures

Monthly credit card statements will be forwarded to card holders. The card holder must attach

the original receipts along with the credit card slips. The monthly credit card statement or

vendor receipts must be properly authorized. This means that the accounts payable stamp

must be used; appropriate signatures must be obtained indicating that the goods were received

or services rendered, invoice calculations must be rechecked, and the dollar payable amount

and the account code must be noted and the statement must be signed by an individual with the

proper authority level.

The credit card monthly statement and attached authorized original documents must be

returned to the Financial Services department within 3 calendar days of receipt.

The Financial Services department audits the credit card transactions, and monitors card

holder's statements. Card holders will be notified of any disputed charges, or policy and

contractual violations.

Returns and Exchanges

Returns and exchanges for purchases made on the credit card must be reversed on the credit

Appendix "A"


67

card as opposed to receiving a cheque or cash. The reversing credit card slip along with any

other documentation must be attached to the monthly credit card statement and submitted to

the Financial Services department.

Physical Security

The card holder is completely responsible for the card. It must be held in a secure location at all

times. If a card is lost or missing, the card holder must notify the credit card company

immediately and subsequently notify the Financial Services department as soon as possible

thereafter.

It is the responsibility of the card holder to ensure that credit card account numbers do not

appear on any unnecessary documentation to limit exposure to theft.

Conseguence of Misuse

Fraud or misuse of Town of Greater Napanee's credit cards may result in administrative action

including disciplinary measures up to and including termination of employment. Individuals will be

held responsible for any losses to the Town of Greater Napanee resulting from fraud or misuse

and appropriate action will be taken to recover these losses.

Failure to provide authorized receipts may result in the card holder being held responsible for the

purchases along with appropriate action being taken to recover these amounts from the card

holder.

Departing Employees

It is the responsibility of the Human Resources department to obtain Town of Greater Napanee's

credit cards from employees prior to their last day of work. The cards must be returned to the

Financial Services department who will be responsible for the destruction of the card. The

Financial Services department will confirm with the credit card company that the card has been

cancelled.

Appendix "A"


Overview of Changes to Purchasing By-Law

The following highlights some of the updated provisions forming part of the proposed

Purchasing By-Law. To assist, I have included the By-Law Sections.

The updated values of procurement and the corresponding methods of procurement

were previously circulated to the various departments for review and comment. These

revisions were then presented to members of Council.

Section 3 - Procurement Goals and Objectives

To practice reciprocal non-discrimination and geographic neutrality with respect to Ontario’s trading partners and avoid preferential treatment of local suppliers as per the Discriminatory Business Practices Act, R.S.O. 1990, c D12. Section 5 – Definitions “Purchasing Card” means both Credit Cards and Purchasing Cards (PCards) provided by the Town, to duly authorized employees of the Town for use as a payment method to purchase directly from suppliers where permitted under this By-law and in accordance with a written card holder agreement and applicable procedures. Section 6.1 – Town’s Conduct and Conflicts of Interest No purchase will be processed for personal items of direct benefit to employees

of the Town or any member of Council except, where permitted by policy, or

under the auspices of a Town-sponsored employee program or with the prior

approval of the CAO or designate.

Section 7.1 – Suppliers Conduct and Conflicts of Interest

All suppliers participating in a procurement process must declare any

perceived, possible, or actual conflicts of interest.

Section 9 – Roles, Responsibilities and Authorities

Specific responsibilities pertaining to all stages of a procurement process, from the initial identification of requirements through to the management of contracts with suppliers, are detailed in this By-law and the Town’s procurement procedures and protocols. In addition to those specific responsibilities, the general roles and responsibilities delegated to the Town’s employees are set out below.

9.1 Chief Administrative Officer

9.2 General Manager of Financial Services / Treasurer

Appendix "B"


9.3 Director of Operational Audits / Finance Department

9.4 Department Managers

9.5 Responsibilities of Department Employees and Town Staff

Section 15 – Delegated Procurement Authorities This Section refers to Appendix B which outlines the purchasing procedure that must be followed based on the Total Procurement Value.

Section 16.1 – Table of Authority for Purchasing and Payments

Authority limits for purchasing and payments (cost as defined in Appendix ‘B”)

are as follows:

POSITION DETAIL LIMIT*

Mayor and Council All expenditures Unlimited

Chief Administrative Officer All expenditures $100,000

Town Treasurer All expenditures $50,000

Department Managers General Purposes – day-to-day departmental requirements. Payments for approved Contracts/Service Agreements

$20,000

Staff not listed above Refer to Delegation of Authority for Purchasing and Payments Policy

*Approval limits are subject to available funds in the approved budget

NOTE: Appendix B describes the required procurement procedures depending on the

value of the procurement.

Section 21.1 – Bid Review Committee

Where irregularities occur, or complaints or challenges are made by bidders or suppliers

in respect of a procurement process, staff will provide notice to the Treasurer to initiate

the Bid Review Committee process. The BRC will review the matter with the objective of

presenting a solution, recommendation or otherwise resolving the issue.

Section 30 – Quarterly Report to Council

30.1 The Finance Department must submit a quarterly procurement information report to Council to provide the following information about the Town’s procurement activities:

Appendix "B"


30.2 The circumstances and details of any emergency purchase(s) with a Procurement value equal to or greater than $100,000; and

30.3 The circumstances and details of all non-standard procurements with a procurement value equal to or greater than $10,000.

Appendix L – Bid Irregularities

The Financial Services department together with the requisitioning department will evaluate all submissions and may be required to disqualify a vendor’s submission. Reasons for disqualification are outlined in a Table. The Table describes various irregularities, classifies whether they are minor or major and lists the resulting action to be taken. This approach provides clear direction to staff and creates a standardized approach for dealing with bid irregularities.

Appendix M – Conflict of interest

1. Staff involved in procurement activities with suppliers and consultants

shall implement provisions that:

a. Adhere to the definition of Conflict of Interest included in this policy

and the requirements of the Town’s Code of Conduct for emphasis

and clarity;

b. Reserve the right of the CAO or delegate to solely determine

whether any situation or circumstance constitutes a conflict of

interest;

c. Reserve the right of the CAO or delegate to disqualify prospective

suppliers or consultants from a procurement process due to a


d. Require prospective suppliers or consultants participating in a

procurement process to declare any actual, perceived or potential


e. Require suppliers or consultants to avoid or disclose any conflict of

interest during the performance of their contractual obligations for

the town;

f. Reserve the right of the Town to prescribe the manner in which a

supplier or consultant should resolve a conflict of interest;

g. Allow the Town to terminate an agreement where a supplier or

consultant fails to disclose any actual or potential conflict of interest

or fails to resolve a conflict of interest as directed by the town; and

h. Allow the Town to terminate an agreement where a conflict of

interest cannot be resolved.

Appendix N – Environmental Sourcing and Procurement

Appendix "B"


Staff are encouraged to consider environmentally responsible and sustainable products and services as part of their purchasing decisions. The objectives of environmental sourcing are then listed.

Appendix "B"


Staff Report to Council

To: Mayor Isbester and Members of Council Date of Meeting: September 14th, 2021 Date Council Decision is Required: October 1st, 2021 Prepared By: Kristie Kelly, Manager of Environmental Compliance Presented By: Kristie Kelly, Manager of Environmental Compliance

Re: Infrastructure Services – AMS Services Agreement

Staff Recommendation: That Council receive for information the Infrastructure Services – Automotive Materials Stewardship (AMS) Services Agreement; And further that Council endorses the Municipal & First Nations Automotive Materials Services Agreement and authorizes the Mayor and Clerk to execute the said agreement on behalf of the Town.

Financial Implications: The Town receives reimbursement funding for the management of various hazardous wastes. The reimbursement is based on volumes received at our Household Hazardous Waste Event. The funds received help to pay for the proper end-of life recycling/disposal of hazardous materials collected at our events. Accessibility Implications: This report may be available in an alternate format upon request. Information Technology Implications: Upon review, there are no information technology implications. Communications Implications: Upon review, there are no communications implications. Background Information: In April 2017, the Town entered into an agreement with Automotive Materials Stewardship (AMS) to receive reimbursement for the management of various hazardous wastes including oil filters, oil containers, antifreeze and antifreeze containers, as defined by the Industry Stewardship Plan. Effective October 1, 2021, the Hazardous and Special Products (HSP) Regulation comes into effect, which creates new legal obligations for each producer. Producers of hazardous

Infrastructure Services – AMS Services Agreement of 222

products will now be responsible for the collection, management and/or promotion to ensure the proper disposal and/or recycling of designated products. Discussion: The updated Municipal & First Nations Automotive Materials Services Agreement has been distributed to the Town for endorsement and submission. Upon submission, the Town will be eligible for funding for our recent Household Hazardous Waste Event which was held September 11th, 2021. The updated Services Agreement includes various minor changes from our current agreement. The financial terms are unchanged. AMS was required to revise current agreements with producers and services providers to comply with the new Hazardous and Special Products Regulation.


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Municipal & First Nations Automotive Materials Services Agreement – July 22, 2021

MUNICIPAL & FIRST NATIONS AUTOMOTIVE MATERIALS SERVICES AGREEMENT

THIS AGREEMENT is made as of the 1st day of October, 2021 (the “Effective Date”).

BETWEEN:

AUTOMOTIVE MATERIALS STEWARDSHIP INC. (“AMS”)

- and -

THE CORPORATION OF THE TOWN OF GREATER NAPANEE (“COLLECTOR”)

collectively, the “Parties”

Reporting Contract #: ____________________________________ (completed by AMS)

WHEREAS:

A. AMS will be offering services as a producer responsibility organization (“PRO”) under the Hazardous and Special Products Regulation (“HSP Regulation”) made under the Resource Recovery and Circular Economy Act, 2016 (the “RRCEA”) (collectively, the “AMS Program”).

B. As a PRO, AMS is establishing a collection and management system for HSP consisting of antifreeze (including antifreeze containers less than 30 litres), oil containers, and/or or oil filters (collectively, “Automotive Hazardous and Special Products” or “Automotive HSP”) as more particularly defined below.

C. AMS and Collector wish to enter into an agreement concerning the provision of services by the Collector to AMS concerning Automotive HSP.


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NOW THEREFORE in consideration of the premises, the parties hereto agree as follows:

1.0 Definitions and Interpretation

1.1. Terms beginning with capital letters and used herein without definition shall have the meanings given to them in the RRCEA or the HSP Regulation or the Municipal Act, 2001 (Ontario), as the case may be unless otherwise specified.

1.2. In this Agreement:

(a) “Agreement” means this Agreement and includes all schedules and amendments thereto;

(b) “Automotive HSP” means one or more of the following as defined under the Regulation:

(i) “Oil Container” means a container that is used for the supply of new lubricating oil and that has a capacity of 30 litres or less;

(ii) “Oil Filter” means a fluid filter, other than a gasoline filter, and includes,

a. a spin-on style filter or element-style fluid filter that is sold separately or as part of a product, that is used in hydraulic, transmission or internal combustion engine applications,

b. a filter used for oil, diesel fuel, storage tank fuel, coolant, household furnace fuel, and

c. a sump type automatic transmission filter

(iii) “Antifreeze” means a product containing ethylene or propylene glycol that is used or intended for use as a vehicle engine coolant and includes,

a. the initial antifreeze supplied with a new vehicle, and

b. antifreeze that is premixed and concentrated.

“Antifreeze” includes the product’s primary packaging where that packaging is less than 30 litres.

(c) “Business Day” means Monday through Friday, excluding statutory holidays and any other day that the Government of Ontario has elected to be closed for business;

(d) “Claims Submission” means submission to AMS of data required to validate claim for payment;

(e) “Collection Services” means all the activities, including those conducted at Events and Depots operated by or on behalf of the Collector, for the purpose of receiving, classifying, packing, storing and transferring Automotive HSP onto transportation vehicles, including the manifesting of the Automotive HSP prior to transportation from the Event or Depot;


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(f) “Depot” means a collection and transfer facility/location operated by or on behalf of the Collector for receiving Automotive HSP from the public and transferring to Haulers for processing or recycling;

(g) “Diversion Report” means invoices, Automotive Material tonnage reports, or other such documents in the form and format specified by AMS as may reasonably be required from time to time for the validation of Claims Submissions;

(h) “Event” means a one-day or other collection event, operated by or on behalf of a Collector to collect, pack, transport, weigh, and process Automotive HSP from the public;

(i) “FOB” means free on board;

(j) “Generator” means the final user who generates waste which will be reused, recycled or disposed;

(k) “Hauler” means a Service Provider that transports collected Automotive HSP to a Processor;

(l) “Manifesting” means those activities associated with preparing a manifest for Post-Collection Services in accordance with Regulation 347 made under the Environmental Protection Act (Ontario);

(m) “Material Management Services” means the Collection Services and/or Post-

Collection Services provided by the Service Provider;

(n) “Packing Standards” means the Waste Packing Protocols listed in Schedule “C” as amended by AMS from time to time;

(o) “Post-Collection Services” means the management of Automotive HSP after transfer of such Automotive HSP to a Hauler FOB the Event or Depot location, including but not limited to transportation of Automotive HSP from Events and Depots, consolidation, sorting, weighing, processing, recycling, and safe disposal of residual waste and other post-collection waste management activities;

(p) “Processor” means a Service Provider that processes collected Automotive HSP;

(q) “Service Provider” means a Hauler and/or Processor, approved by AMS as posted in a secure location on the AMS website accessible to Collector, that provides Material Management Services to AMS or the Collector as the case may be; and

(r) “WeRecycle Portal” means AMS’s online system for uploading Claims Submissions.

2.0 Material Management Services

2.1. This Agreement is for three different service location types for the provision of Material

Management Services by the Collector to AMS. These are as follows:


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(a) Depot

(i) The Collector or the Collector’s Service Provider provides Depot Collection Services for Automotive HSP. AMS pays the Collector an hourly rate for the Collection Services of Automotive HSP.

(ii) Automotive HSP are to be separately sorted by material as per Packing Standards by the Collector at its Depots and made ready for pick-up by approved AMS hauler.

(iii) Depots must accept, at a minimum, all types of HSP that are in the same category as that type of HSP as defined in the Regulation.

(iv) Depots must accept from a person, at a minimum, up to 25 kilograms per day of each type of Automotive HSP.

(v) If a Depot accepts more than 50 kilograms of Automotive HSP from a person on a single day, Collector shall make reasonable efforts to record the person’s name, contact information, any unique identifier assigned by the Registrar and the weight of Automotive HSP accepted.

(b) Event

(i) The Collector or the Collector’s Service Provider provides Event Collection Services for Automotive HSP. The Collector may combine Events with other activities, including collection of non-Automotive HSP. AMS pays the Collector a cost per tonne of Automotive HSP as per Schedule “B” for the Collection and Post-Collection Services.

(ii) An Event must accept antifreeze, oil containers and oil filters.

(iii) An Event must operate for a minimum of four (4) consecutive hours.

(c) Event (and transportation to Depot)

(i) The Collector or the Collector’s Service Provider provides Event Collection Services for Automotive HSP and transports the collected Automotive HSP to a Depot. AMS pays the Collector a cost per tonne.

(ii) Automotive HSP are to be separately sorted by material as per Packing Standards by the Collector at its Depots and made ready for pick-up by an approved AMS Hauler.

For the purpose of this Agreement, AMS and the Collector have agreed that the service location types marked with an “X" below will be the ones under which the Collector will provide Material Management Services to AMS.

Depot

Event


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Event (and transportation to Depot)

2.2. AMS and Collector may agree in writing at any time to change the service location type

under which Collector is providing Material Management Services to AMS herein to the other service location type listed or to add another service location type and this Agreement shall be deemed to have been amended accordingly.

3.0 Price and Payment

3.1. Price

(a) Material Management Services – Depot. AMS will pay for Material Management Services provided by the Collector as follows:

(i) AMS will pay the Collector the hourly rate as set out in Schedule “B” for the Total Reimbursable Hours of Operation as specified in Schedule “A” for the Collection Services.

(ii) AMS will pay Service Providers directly for Post-Collection Services for Automotive HSP collected at Depots.

(b) Material Management Services - Event. AMS will pay for Material Management Services provided by the Collector as follows:

(i) AMS will pay the Collector an amount per tonne as set out in Schedule “B” for the Collection Services and Post-Collection Services for each of the approved Events that are submitted as outlined in Schedule “A”. The actual weight of the Automotive HSP as determined by the Service Provider providing the Post-Collection Services will be used.

(c) Material Management Services – Event (and transportation to Depot). AMS will pay for Material Management Services provided by the Collector as follows:

(i) AMS will pay the Collector an amount per tonne as set out in Schedule “B” for the Collection Services and transportation of Automotive HSP to a Depot for each of the approved Events that are submitted as outlined in Schedule “A”. The actual weight of the Automotive HSP as determined by the Service Provider providing the Post-Collection Services will be used.

(ii) AMS will pay Service Providers directly for Post-Collection Services for Automotive HSP collected at Events and transported to Depots.

3.2. Payment


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(a) Material Management Services – Depot.

(i) For Depot Collection Services payable pursuant to Section 3.1(a)(i), AMS will pay the Collector pursuant to this Agreement within thirty (30) days of the end of each calendar month.

(b) Material Management Services - Event.

(i) To receive payment for Event Collection Services and Post-Collection Services, the Collector must upload a Claims Submission via the WeRecycle Portal and send AMS a copy of the shipping manifest(s) and Diversion Report(s) from the End Processor with respect to the Automotive HSP. The Claims Submission is to be submitted by Collector to AMS within thirty (30) days of Collector receiving the related Diversion Report(s) but no later than the end of the following calendar quarter. AMS will validate the Claims Submission with the Diversion Report(s) received from Collector within thirty (30) days of receipt and AMS will pay the Collector pursuant to this Agreement within thirty (30) days of the date on which AMS determines the claim to be correct and accurate. If any errors or omissions are found, AMS will issue a payment adjustment and AMS may require a corrected Claims Submission from the Collector.

(c) Material Management Services – Event (and transportation to Depot).

(i) To receive payment for Event Collection Services and transportation of Automotive HSP to a Depot, the Collector must upload a Claims Submission via the WeRecycle Portal and send AMS a copy of the shipping manifest(s) with respect to the Automotive HSP. The Claims Submission is to be submitted by Collector to AMS within thirty (30) days of Collector receiving the related manifest(s) but no later than the end of the following calendar quarter. AMS will validate the Claims Submission with the manifest(s) received from Collector within thirty (30) days of receipt and AMS will pay the Collector pursuant to this Agreement within thirty (30) days of the date on which AMS determines the claim to be correct and accurate. If any errors or omissions are found, AMS will issue a payment adjustment and AMS may require a corrected Claims Submission from the Collector.

3.3. Collector will provide any additional back-up/supporting information reasonably requested by AMS to verify the accuracy of the Claims Submissions from time to time.

3.4. The Collector will not charge residential Generators of Automotive HSP for collection of Automotive HSP at its Depots or Events.

3.5. Late Submission Penalties

(a) AMS may reduce amounts payable under Claims Submissions which are not submitted to AMS within the time periods set out in section 3.2 (b) and (c) by five (5%) per cent per month.

(b) AMS will have no responsibility to pay and Collector will forfeit the right to claim for, any Claim Submission in respect of a calendar year which is not received by AMS by January 31 of the following calendar year.


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4.0 Supplemental Reporting

In addition to all other reporting requirements in this Agreement, Collector will provide information to AMS as required to satisfy AMS’ reporting obligations to the Authority in the Regulation and the Hazardous and Special Products Verification and Audit Procedure document, each of which can be found on the Government of Ontario and the Authority websites respectively. AMS will make no more than two (2) requests per calendar year.

5.0 Facility Access and Audit Rights

5.1. Collector will grant AMS (or its authorized representative) or the Authority access to Collector’s Depots used in the provision of Material Management Services to monitor Collector’s performance in the delivery of Material Management Services. Such access will be during normal business hours and on a minimum of 48 hours’ notice.

5.2. AMS or its representative will have the right to perform composition audits of Automotive HSP in the possession or control of the Collector and to review any documentation or other work product resulting from Material Management Services (“Audit Rights”) at AMS’ expense.

5.3. Collector will co-operate with AMS to allow AMS or its representative, to exercise its Audit Rights, and make reasonable efforts to provide access to adequate, indoor space and weighing devices, if available, at Collector’s facilities at no charge to AMS.

5.4. All parties acting on behalf of AMS are bound by strict confidentiality agreements.

6.0 Term

6.1. This Agreement will commence on the Effective Date and its initial term will continue until December 31, 2022. This Agreement will automatically renew for successive one (1) year terms unless or until it is terminated in accordance with this Agreement. The initial term and any such additional term or terms are herein referred to as the “Term”.

7.0 Exclusivity

7.1 The Collector will collect Automotive HSP exclusively on behalf of AMS and not for any other entity. In particular, Collector agrees not to enter into any other collection agreement for Automotive HSP with another producer responsibility organization or producer.

8.0 Title and Compliance with Laws

8.1. Title to all Automotive HSP collected by Collector at Events and Depots will belong to Collector from the time of collection until transfer of the collected Automotive HSP to an approved Hauler. At no time will AMS have title to Automotive HSP unless handled directly by AMS employees. Any contract entered into between Collector and a Service Provider for Automotive HSP must provide that title transfers to the Service Provider.

(a) Notwithstanding the foregoing, if the Collector operates a reuse program for any Automotive HSP, title to the Automotive HSP being reused shall transfer to Collector one (1) second prior to being given to the person or entity requesting it for reuse purposes.


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8.2. In performing Material Management Services hereunder, Collector represents and warrants that it will at all times, and will require its Service Providers to, have all Certificates of Approval (also known as an Environmental Compliance Approval), and any other approvals required and that it will otherwise comply at all times and require its Service Providers to comply, with all applicable laws, regulations and requirements of any governmental authority having jurisdiction, including without limitation the Ontario Ministry of the Environment and the Ontario Ministry of Labour.

9.0 AMS Policies, Standards and Guidelines

9.1. Collector will at all times comply with the HSP Regulation and the HSP Verification and Audit Procedure document as applicable.

9.2. AMS may develop from time to time, policies, standards and guidelines relative to the provision of Material Management Services or make amendments thereto.

9.3. The AMS Waste Packing Standards in effect at the time of entering into this Agreement are included in Schedule “C” for convenience.

9.4. Collector will use best efforts to comply with, and will require that any of its contractors supplying Material Management Services use best efforts to comply with the provisions of all such policies, standards and guidelines as they pertain to the provision of Material Management Services. AMS will communicate any new or amended such policies, standards and guidelines to Collector via email.

9.5. Collector may provide written notice within thirty (30) days of receiving such communication that it does not wish to comply with a new or amended policy, standard or guideline, and in the event that the Collector provides such written notice either Party may exercise the termination provisions of 22.5(b).

10.0 Promotion and Education

10.1. Promotion and education of the proper end of life management of Automotive HSP is essential. The Collector will work cooperatively with AMS in undertaking such promotion and education activities with respect to Automotive HSP and collection of the Automotive HSP by the Collector as may be reasonably requested by AMS from time to time.

10.2. If a Collector provides Material Management Services for an Event or an Event (and transportation to Depot), the Collector will promote each Event in the local municipality, territorial district or First Nations community where it will be held for at least one week prior to the date of the Event using a combination of two or more forms of media, including but not limited to:

• local print publications

• local print media

• local radio

• local signage, or

• social media.

Collector will submit a report to AMS in a form and format specified by AMS that indicates how the Collector promoted each Event.


9


10.3. The Collector must submit to AMS draft copies of all publications that make use of AMS trademarks and logos for approval, which AMS may withhold for any reason.

10.4. The Collector, its employees and Service Providers will not engage in any activity that may cause or perceive to cause harm to Automotive Materials Stewardship or any brand owned or used under license by AMS.

11.0 Indemnity and Insurance

11.1. Each party (the “Indemnifying Party”) hereby indemnifies and saves harmless the other party (the “Indemnified Party”) on its behalf and as trustee for, its respective directors, officers, contractors, employees and agent, from and against any and all manner of actions or causes of actions, damages (but not including consequential damages), costs, loss or expenses of whatever kind (including related legal fees on a full indemnity basis) which the Indemnified Party, its directors, officers, contractors, employees and agents may sustain, incur or be put to by reason of or directly or indirectly arising out of any breach of this Agreement by the other party or any wilful misconduct or negligence of the Indemnifying Party or any person for whom the Indemnifying Party is, at law, responsible, in relation to matters arising out of this Agreement.

11.2. The Collector will, during the Term of the Agreement, self-insure, maintain at its expense and/or require any Service Provider to maintain at either the Collector’s or Service Provider’s expense Comprehensive General Liability coverage with limits of not less than $5,000,000 (five million dollars) per occurrence. For clarity, only the Collector can self-insure.

11.3. The Comprehensive General Liability policy of insurance referred to in this section will include AMS as an additional insured.

11.4. Unless the Collector wholly self-insures, the Collector will deliver a copy of Certificate(s) of Insurance maintained by the Collector or a Service Provider pursuant to this Agreement, upon the effective date of this Agreement, and annually upon renewal of the Collector or Service Provider’s insurance, naming AMS as an additional insured with the following language:

“Automotive Materials Stewardship and its affiliated entities, officers, partners, directors, employees, representatives and agents are included as Additional Insureds for Comprehensive General Liability. Such coverage is primary and non-contributing.”

If the Collector wholly self-insures, the Collector will deliver a letter stating such self-insurance to AMS upon the effective date of this Agreement, and annually upon each automatic renewal of this Agreement.

11.5. The Certificate(s) of Insurance, referred to in subsection 11.4, must also provide that AMS will be provided with thirty (30) days advance written notice of cancellation, termination, non-renewal or material change.

12.0 Assignment


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12.1. The Collector may not subcontract or assign any of its rights or obligations under this Agreement or any part thereof without the prior written consent of AMS.

12.2. Notwithstanding subsection 12.1, the Collector may assign any of its rights or obligations under this Agreement or any part thereof without the prior written consent of, but with written notice to, AMS:

(a) from a Lower-tier Municipality to an Upper-tier Municipality or vice versa;

(b) to a municipal service board pursuant to sections 194 to 202 of the Municipal Act, 2001, as amended; or

(c) to a municipal business corporation pursuant to section 203 of the Municipal Act, 2001, as amended.

13.0 Notices

Any notice, request, demand or other instrument or communication herein provide, permitted or required to be given by either AMS or the Collector will be in writing and sufficiently given if delivered personally, by facsimile transmission or other electronic means of written communication tested prior to transmission to the extent such testing is available (unless otherwise expressly provided herein) or if sent by registered mail to the following respective address hereinafter set out, namely:

Notices to AMS will be delivered to:

Operations Officer Automotive Materials Stewardship 1 St. Clair Avenue West, Suite 701 Toronto, ON M4V 1K6 Email: [email protected]

Notices to the Collector will be delivered to:

Kristie Kelly, Manager of Regulatory Compliance Township of Greater Napanee 45 Commercial Court Napanee, ON K7R 4A2 Email: [email protected] Any such notice if delivered personally, by facsimile transmission or by other electronic means will be conclusively deemed to have been given on the day of personal delivery, or facsimile transmission or electronic communication (and if after 5 p.m. E.T. the next following Business Day), or if mailed as aforesaid, will be conclusively deemed to have been received on the fifth (5th) business day following the day on which such notice is mailed as aforesaid (except during a postal strike in which case such notice shall be delivered via courier). Either party may, at any time, give written notice to the other of any change of address (postal and/or email) of the party giving such notice and from and after the giving of such notice the address therein specified shall (in the absence of knowledge


mailto:[email protected]

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to the contrary) be deemed to be the address of such party for the giving of notices thereafter.

14.0 No Partnership or Joint Venture

14.1. This Agreement does not create and will not in any circumstances create or be deemed to create a partnership or joint venture between the parties. For all purposes Collector will be an independent Collector.

15.0 Severability

15.1. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such determination will not impair or affect the validity, legality or enforceability of the remaining provisions hereof, and each provision is hereby declared to be separate, severable and distinct. To the extent that any such provision is found to be invalid, illegal or unenforceable, the parties hereto will act in good faith to substitute for such provision, to the extent possible, a new provision with content and purpose as close as possible to the provision so determined to be invalid, illegal or unenforceable.

16.0 Amendment and Waivers

16.1. No amendment or waiver of any provision of this Agreement will be binding on any party unless consented to in writing by such party. No waiver of any provision of this Agreement will constitute a waiver of any other provision, and no waiver will constitute a continuing waiver unless otherwise provided.

17.0 Further Acts

17.1. Each party will execute all such documents and do all such other acts and things as may be necessary or desirable from time to time in order effectively to carry out the provisions of this Agreement and will not to take any action, or omit to take any action, that would constitute a breach of this Agreement.

18.0 No Third Party Beneficiaries

18.1. No person or entity which is not a party hereto will have any rights or obligations pursuant to this Agreement or be permitted to place any reliance on anything in this Agreement or on the continuation of this Agreement.

19.0 Counterparts and Facsimile

19.1. This Agreement may be executed in counterparts, and may be transmitted by facsimile or secure electronic document (PDF) each of which will constitute an original and all of which taken together will constitute one and the same instrument.

20.0 Force Majeure

20.1. In the event that either party hereto is delayed or hindered in the performance of any act required herein by reason of Acts of God, riots, insurrection, war or other reasons of a like nature not the fault of such party (an “Event of Force Majeure”), then the performance of


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such act will be excused for the period of the delay and the period for performance of any such act will be extended for a period equivalent to the period of such delay. The party whose performance of this Agreement is or may reasonably be expected to be affected by an Event of Force Majeure will promptly notify the other party of the existence of such circumstances and will use its best efforts to resume and complete performance. Whenever a party is reasonably certain that such an Event of Force Majeure is likely to occur, it will notify and consult with the other party as soon as practicable. All time periods for the performance of obligations hereunder will be extended by a period corresponding to the time period of any delay caused by the occurrence of an Event of Force Majeure.

21.0 Dispute Resolution

21.1. All disputes arising out of in connection with this Agreement, or in respect of any legal relationship associated with or derived from this Agreement, that cannot be resolved within thirty (30) days by a senior representative of each party, will upon written notice by any party to the others be arbitrated and finally resolved by one (1) arbitrator qualified by education, experience or training to render a decision upon the issues in dispute and who has not previously been employed by any party or any of their affiliates, and does not have a direct or indirect interest in any party or the subject matter of the arbitration. Such arbitrator will either be mutually agreed upon by the parties within thirty (30) days after written notice from any party requesting arbitration or, failing agreement, the Resource Productivity and Recovery Authority may appoint the arbitrator on behalf of the Parties after receiving written submission from both.

22.0 Termination

22.1. Upon execution of this Agreement by the Collector and acceptance by AMS, any prior agreement between the same Collector and AMS is automatically terminated with immediate effect, except for the provisions in the prior agreement which are expressly stated as surviving termination.

22.2. If, in the reasonable opinion of either party, there has been a breach of this Agreement (which, in the case of a Collector, includes the Collector’s compliance with the policies, standards, and guidelines described in section 9.0) by the other party (the “defaulting party”), the Collector or AMS (the “party giving notice”) may give the defaulting party written notice to remedy the breach or default within sixty (60) days, failing which the Agreement may be terminated. In the event that the remedy of such breach reasonably requires more than sixty (60) days, the defaulting party will so advise the party giving notice forthwith and provide a revised timetable for remedying the breach. The party giving notice will notify the defaulting party in writing as to whether the revised time line is acceptable and, if it is, the revised time line to remedy such breach will apply.

22.3. On the date of termination neither party shall have any obligations, financial or otherwise, hereunder save and except for matters and payment obligations arising prior to the date of termination.

22.4. Either Party may terminate this Agreement for any reason whatsoever save and except for matters arising from sections 22.2 & 22.5, without cause, cost or penalty, save and except for matters arising prior to termination, upon providing the other Party with ninety (90) days prior written notice of its intention to terminate this Agreement.


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22.5. Either Party may terminate this agreement immediately upon written notice to the other Party, except as expressly stated, if:

(a) Either Party assigns or subcontracts any of its rights or obligations under this Agreement or any part thereof except as expressly provided for herein; or

(b) the Collector provides written notice that it will not comply with any new or amended policies, standards and guidelines developed by AMS as per section 9.0; or

(c) the Collector fails to keep the terms of this Agreement confidential as per section 29.0, in such instances only AMS may terminate this agreement; or

(d) a receiver or trustee is appointed for any part of the assets of AMS; or

(e) AMS ceased to provide services as a PRO.

23.0 Survival

23.1. Articles 11, 22.3 and 29 of this Agreement will survive termination or expiry and continue in full force and effect.

24.0 Additional Conditions

24.1. The parties shall execute such further and other documents, cause such meetings to be held, resolutions passed and by-laws enacted, exercise their vote and influence, do and perform and cause to be done and performed such further and other acts and things as may be necessary or desirable in order to give full effect to this Agreement and every part thereof.

25.0 Entire Agreement

25.1. This Agreement constitutes the entire agreement between the parties with respect to all of the matters herein and supersedes and replaces all previous agreements, whether oral or written, concerning the same or similar subject matter.

26.0 Headings for Convenience Only

26.1. The division of this Agreement into articles and sections is for convenience of reference only and will not affect the interpretation or construction of this Agreement.

27.0 Governing Law

27.1. This Agreement will be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein and each of the parties hereto agrees irrevocably to conform to the non-exclusive jurisdiction of the Courts of such Province.

28.0 Legislation References

28.1. Any reference in this Agreement to any law, by-law, rule, regulation, order or act of any government, governmental body or other regulatory body will be construed as a reference


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thereto as amended or re-enacted from time to time or as a reference to any successor thereto.

29.0 Confidentiality

29.1. Subject to any legal requirements, including those included in the Municipal Act, 2001 and the Municipal Freedom of Information and Protection of Privacy Act (“MFIPPA”), Collector will at all times treat Schedule “B” and the financial terms contained therein as private and confidential information.

To the extent permitted under MFIPPA, Collector will inform AMS of any request made of Collector under MFIPPA for any records related to this Agreement that may reveal a trade secret or scientific, technical, commercial, financial or labour relations information supplied in confidence by AMS to Collector so that AMS will have an opportunity to make representations to Collector with respect to the proposed disclosure.

30.0 Rights and Remedies

30.1. The rights, remedies and privileges in this Agreement given to the Parties:

(a) are cumulative and any one or more may be exercised;

(b) are without prejudice to and are in addition to and apply notwithstanding any other provisions in this Agreement; and

(c) are not dependent or conditional upon, or in any way lessened, restricted or affected by any other provisions of this Agreement.

31.0 Schedules

31.1. Schedules “A” through “C” are attached hereto and incorporated in and form part of this Agreement.


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IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first set

out above.

AUTOMOTIVE MATERIALS STEWARDSHIP

by:

Name: David Pearce

Title: Operations Officer

THE CORPORATION OF THE TOWN OF GREATER

NAPANEE

by:

Name:

Title:

by:

Name:

Title:

Note: Second signatory to be completed by Collector only if Collector requires two signatories (and by leaving the second signatory blank and returning the Agreement to AMS, Collector and the first signatory represent that no additional signatories are required).


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SCHEDULE “A” – COLLECTION ACCESSIBILITY SCHEDULES

Collector will collect all Automotive HSP from its residents according to the following Collection Accessibility Schedules.

Depots

Depot Name Address Days & Hours of Operation

Operating Season

Operating Hours

Reimbursable Hours

NA N/A N/A N/A N/A N/A

TOTAL REIMBURSABLE HOURS 0

Events

Collector will use commercially reasonable efforts to submit Event Collection Accessibility Schedules in the format below to AMS for approval by March 31st of the calendar year in which the Events will be held, and in all cases will submit Event Collection Accessibility Schedules not less than sixty (60) days prior to the next planned Event. Once approved by AMS, the updated information on Event Schedules will be deemed to be incorporated into this Agreement.

Event Collection Accessibility Schedule - Example

Event #

Collector Date Location Address Collection Hours

Service Provider

1 Collector name Event date Location name Full address ex. 9am - 2pm SP Name

INITIALLED BY COLLECTOR: _____________


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SCHEDULE “B” – PAYMENT FOR COLLECTION SERVICES

AMS will pay the Collector for Automotive HSP Collection Services as follows:

For Material Management Services – Depot, AMS will pay the Collector the rate of $0.00 per hour plus applicable taxes for the Total Reimbursable Hours set out in Schedule “A”, to be paid in twelve (12) equal monthly instalments. For greater clarity, the monthly instalment will be calculated as Total Reimbursable Hours divided by twelve (12) and multiplied by the Hourly Rate.

For Material Management Services – Event, AMS will pay the Collector a rate of $1,100 per tonne of Automotive HSP plus applicable taxes.

For Material Management Services – Event (and transportation to Depot), AMS will pay the Collector a rate of $0.00 per tonne of Automotive HSP plus applicable taxes.

INITIALLED BY COLLECTOR: _____________


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SCHEDULE “C” – AMS WASTE PACKING STANDARDS

The following are AMS Waste Packing Standards applicable to this Agreement as of the date of this Agreement. Revisions to these standards will be posted in a secure location on the AMS website accessible to Collector.

Waste Packing Protocols

All collection site operators shall:

1.1 Pack waste according to the Ministry of the Environment and Climate Change waste

classes and AMS Waste Packing Standards as outlined in Appendix A.

1.2 Ensure that Automotive HSP are handled and stored as follows:

• In accordance with the conditions laid out in their respective Environmental

Compliance Approval and all applicable laws and regulations.

• Have the ability to receive wastes from the public in a controlled manner (direct

supervision or monitored) in a customer drop-off area, as applicable;

• Have adequate infrastructure to shelter material from inclement weather in a

consolidation storage area;

• Have sufficient space to receive, sort, store and prepare transportation containers for

shipment:

• As applicable, have material-handling equipment with the ability to move containers

onto transport vehicles;

• Be accessible to transport vehicles for pick- up of Automotive HSP; and

• Have adequate security measures in place to prevent Automotive HSP from being

tampered with by anyone at the site or using the collection facility at unauthorized

times.

1.3 All waste must be packed in an approved UN container and all HSP transported must be

contained in accordance with TDGA requirements.

1.4 Bulky items must be stored in an upright position in a secure area, and in accordance with

Technical Standards & Safety Authority (TSSA) requirements.

1.5 Transportation containers must be filled to capacity, except if this practice contravenes

either a ministry order or the Collection Site Operator’s Environmental Compliance

Approval Storage Requirements. Waste material collected at event days is an exception

since it may not always be possible to fill a transport container of a given waste class to

capacity.

1.6 Make use of vermiculite in sufficient quantity to cover and protect the waste material from

breakage when there is a potential for spillage or breakage of containers in a lab pack

during transport:


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1.7 Place large pails (20 litres or more) on skids and shrink wrap to prevent shifting of waste

during transport. Alternatively, gaylord boxes may be used.

1.8 Contamination allowances:

• Reasonable efforts must be taken to minimize contamination.

• The maximum contamination allowance is 5%. This is a weight-based allowance

assessed on individual transport containers for a given waste class.

• Contamination levels in transport containers (mis-packed Automotive HSP, non-

program wastes as identified in Appendix A) will be monitored by AMS through random

sampling. Collection site operators will be required to take corrective action if

contamination allowances are exceeded. AMS reserves the right to revoke the

collection site’s approval status if corrective action is not taken as requested by AMS.


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Appendix A – Waste Packing Standards

Please note: Automotive Materials Stewardship requires that waste materials in each individual row (as numbered in the first column on the left) be packed separately (even though they may be packed under the same waste class)

# Waste Class / UN# Examples of Inclusions Examples of Exclusions Eligible

Generators

1 Antifreeze Bulked – 212 Or Antifreeze Lab Pack – 212

• Antifreeze returned in containers with a volume of 30 litres or less. • Antifreeze recovered from vehicles at automotive service centres.

• Plumbing antifreeze; • Vehicle windshield antifreeze; • Product marketed as industrial heat transfer fluid; • Fuel (gasoline & diesel) antifreeze; Lock de-icer; • Air brake antifreeze; • Antifreeze which does not contain ethylene or propylene glycol; • Containers used to deliver Antifreeze with a capacity greater than 30 litres.

• Residential • All IC&I

2 Empty Auto Containers Or Empty Auto Containers - Shredded

• Antifreeze containers that are 30 litres or less; • Containers that have a capacity of 30 litres or less and that were manufactured and used for the purpose of containing lubricating oil. • Note: Lubricating oil includes: Synthetic crankcase or engine oil; Hydraulic fluid; Polyester fluids; Circulating oil or turbine oil; Paper machine oil; Transmission fluid; Power steering fluid; Gear oil; Vegetable oil for lubrication; Re-refined oil; Electrical insulating oil; Refrigeration system oil; Compressor oil; Mineral heat transfer fluid; Marine engine oil for vessels operating domestically; Metal working oil; Form release oil; Textile oil; Chain oil; Rock drill oil; 2-cycle engine oil; Gasoline / 2-cycle engine oil mixes; Saw guide oil; Drawing, stamping and shaping oil; Process oil; Deducting oil; Marine cylinder oil; Machine tool and sideway lubricant; Natural gas compressor oil; Conveyor lube; Dripless lube; Quenching oil; Pneumatic system oil; Rustproof oil; Food grade white mineral oil.

Containers from any of the following: Oil treatment; Diesel fuel treatment; Cleaning/flushing fluids for motors/equipment; Winter start fluid; Brake fluid; Undercoating; Penetrating oil; Hydraulic jack oil; 3-in-1 household oil; Aerosol propelled lubricant; Gun oil; Kerosene; Urethane coating; Sewing machine oil; Cooking oil; Windshield washer fluid; Emulsified oil.


Infrastructure Services – AMS Services Agreem

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# Waste Class / UN# Examples of Inclusions Examples of Exclusions Eligible

Generators

3 Oil Filters - 252 • Spin-on or element style filters that are used in hydraulic, transmission or internal combustion engine applications; • Diesel fuel filters; • Household furnace fuel filters; • Coolant filters; • Storage tank diesel fuel filters; • Plastic & paper element style filters; • Diesel fuel filters used at retail commercial pump islands

• Gasoline fuel filters; • Air filters (automotive or non-automotive); • Household furnace air filters; • Sock-type filters


Infrastructure Services – AMS Services Agreem

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BY-LAW NO. 2021-0042BEING A ZONING BY-LAW AMENDMENT

TO BY-LAW NO. 02-22

199 RICHMOND BOULEVARD

PART OF LOT 24, CONCESSION 3,GEOGRAPHIC TOWNSHIP OF RICHMOND

TOWN OF GREATER NAPANEE

2021-0042 Being a Zoning By-law Amendment to By-law 02-22 of 222


EXPLANATORY NOTE

TO BY-LAW NUMBER 2021-0042

PURPOSE OF THE BY-LAW

A Zoning By-law Amendment application (PLZACO 2021 044) was received from Access Auto (Sierra Abrams) at 199 Richmond Blvd. The by-law would add the sale of used vehicles to the motor vehicle repair and maintenance services currently performed at the site. The subject site is designated ‘Industrial’ in the Official Plan and is zoned “M1 (Light Industrial)” in Zoning By-law 02-22.

Re-zoning of the subject property to a site-specific “M1-11” Light Industrial Zone is required to permit the sale of used motor vehicles as an accessory to the motor vehicle repair garage.

EFFECT OF THE BY-LAW REQUESTThe zoning by-law amendment will permit the sales of used vehicles in addition to the vehicle maintenance and repair business carried on at the site.

LOCATION OF PROPERTYThe property is located at 199 Richmond Blvd. The lands are legally described as Part of Lot 24, Concession 3 in the geographic Township of Richmond, Town of Greater Napanee



BY-LAW NUMBER 2021-0042

BEING A BY-LAW TO AMEND ZONING BY-LAW NUMBER 02-22

WHEREAS Zoning By-law No. 02-22 as amended, was passed under the authority of Section 34 of the Planning Act, R.S.O. 1990, as amended, and regulates the use of land and the use and erection of buildings and structures within the Town of Greater Napanee;

AND WHEREAS the Council of the Corporation of the Town of Greater Napanee having given due consideration to the need to proceed with such changes and considers it reasonable to amend By-law 02-22 to permit the requested amendments;

AND WHEREAS the matters herein are in conformity with the provisions of the Official Plan for the Town of Greater Napanee;

NOW THEREFORE the Council of the Corporation of the Town of Greater Napanee enacts as follows:

1. THAT Schedule 10 of By-law 02-22 is hereby amended by changing to M1-11 the zone symbol of the lands shown as ‘Zone Change to M1-11’ on Schedule ‘A’ attached hereto and forming part of this by-law;

2. THAT, Section 5.27.6 Exception Provisions – Light Industrial (M1) Zone is hereby amended by the addition of the following new subsection following 5.27.6.10:

5.27.6.11 Light Industrial Exception Eleven (M1-11) Zone199 Richmond Boulevard, Part of Lot 24, Concession 3, Richmond

Within the M1-11 Zone, the following provisions apply:

a) The sale of used motor vehicles is considered an accessory use to the permitted motor vehicle repair garage. Such sale of vehicles shall be clearly incidental and subordinate to the motor vehicle repair garage. Such sale of vehicles shall:

i. not interfere with motor vehicle storage associated with the motor vehicle repair garage operations, and;

ii. shall not interfere with the parking requirements associated with the site.

3. THIS By-law shall come into force and take effect on its date of passing, subject to the provisions and subsections 34(30) and (31) of the Planning Act, R.S.O. 1990, c.P.13, as amended, in the event a notice of appeal of this by-law is filed in accordance with subsection 34 (19) of the Act.

Read a first and second time this 14th day of September 2021

Read this third time and passed this 14th day of September 2021

Marg Isbester (Mayor)

_____________________________


Katy Macpherson (Deputy Clerk)


Schedule A to By-Law No. 2021-0042

This Map Forms Part of the By-Law


THE CORPORATION OF THE TOWN OF GREATER NAPANEE BY-LAW NO. 2021-0043

Being a By-Law to Repeal By-law No. 2021-0037 (A By-law to Appoint an Acting Clerk)

WHEREAS the Council of The Corporation of the Town of Greater Napanee passed By-Law No. 2021-0037 on the 26th day of July, 2021, being a by-law to appoint an Acting Clerk.

NOW THERFORE, the Council of the Corporation of the Town of Greater Napanee enacts as follows:

1. That By-law No. 2021-0037, being a by-law to appoint an Acting Clerk, behereby repealed effective the 20th day of September, 2021.

2. That this by-law shall take effect on the date of its final passing.

Read a first and second time and finally passed this 14th day of September, 2021.

____________________________ Marg Isbester, Mayor

____________________________ Brandt Zatterberg, Acting Deputy CAO

2021-0043 A By-law to Repeal By-law 2021-0037 (A By-law to Appoint an Ac... of 222

The Corporation of the Town of Greater Napanee

By-law No. 2021-0044

A By-law to Appoint a Clerk

WHEREAS Section 228 of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, states that a municipality shall appoint a Clerk whose duty it is,(a) to record, without note or comment, all resolutions, decisions and other

proceedings of the council;(b) if required by any member present at a vote, to record the name and vote of every

member voting on any matter or question;(c) to keep the originals or copies of all by-laws and of all minutes of the proceedings

of the council;(d) to perform the other duties required under this Act or under any other Act; and(e) to perform such other duties as are assigned by the municipality.

AND WHEREAS the Council of the Corporation of the Town of Greater Napanee deems it expedient to appoint a Clerk;


1. Jessica Walters is hereby appointed Clerk for the Corporation of the Town of Greater Napanee and shall perform such duties as prescribed in the current job description of the Clerk and/or Provincial and/or Federal Legislation; and/or any other duties that may, from time to time, be assigned by the Chief Administrative Officer or Council by by-law or resolution of the Council of the Corporation of the Town of Greater Napanee.

2. This by-law supersedes and corresponding by-laws of the Town of Greater Napanee which, through inadvertence, may not have been repealed.

3. This by-law shall come into force and take effect on September 20, 2021.

Read a first and second time and finally passed this 14th day of September 2021.

Marg Isbester, Mayor Katy Macpherson, Deputy Clerk

2021-0044 A Bylaw to Appoint a Clerk of 222

THE CORPORATION OF THE TOWN OF GREATER NAPANEEBY-LAW NO. 2021-0045

Being a By-Law to Confirm the Proceedings of the Council of The Corporation of the Town of Greater Napanee at its Regular Session held on September 14, 2021.

WHEREAS Section 5 of the Municipal Act, 2001, S.O. 2001, c.25, as amended (the “Municipal Act, 2001”), gives Council the authority to exercise the powers of the municipal corporation and requires that the powers of every Council are to be exercised by by-law;

AND WHEREAS Council has passed By-law No. 2008-58, being a By-law to Govern the Calling, Place and Proceedings of Council and Committees of Council and the Conduct of its Members;

AND WHEREAS it is deemed expedient that the proceedings of the Council of the Town of Greater Napanee at this meeting be confirmed and adopted by by-law;


1. That the actions of the Council of the Corporation of the Town of Greater Napanee, at its Regular Session held on September 14, 2021 in respect of each motion and resolution passed and other actions taken by the Council of the Town of Greater Napanee at this meeting, are hereby adopted and confirmed, as if all such proceedings were expressly embodied in this by-law.

2. That the proper officials of the Town of Greater Napanee are hereby authorized and directed to do all things necessary to give effect to the actions of the Council of the Town of Greater Napanee, referred to in the preceding section.

3. That the Mayor, or in the absence of the Mayor, the Deputy Mayor and the Clerk, or in the absence of the Clerk, the Deputy Clerk are authorized and directed to execute all documents necessary in that behalf and to affix thereto the seal of the Town of Greater Napanee.

4. That this by-law shall come into force and take effect on the day of its final passing.

Read a first and second time and finally passed this 14th day of September 2021.

____________________________Marg Isbester, Mayor

Brant Zatterberg, Acting Clerk

A By-law to Confirm the Proceedings of the Council of the Corporation of... of 222

regular session council - 14 sep 2021 - agenda - pdf

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