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CITY OF KINGSTON

m REPORT TO COUNCIL

I Report No.: 08-1 13 I TO:

FROM:

RESOURCE STAFF:

DATE OF MEETING:

SUBJECT:

Mayor and Council

Denis Leger, Commissioner of Corporate Services

Malcolm Morris, Director of Transportation

May 6,2008

Delegated Approval and Signing Authority

EXECUTIVE SUMMARY:

The Airport Division is required to enter into agreements to administer programs that are largely defined by other levels of government or other publicly funded institutions. The purpose of this report is to establish and confirm the delegation of authority for the authorization and execution of a number of these agreements.

RECOMMENDATION:

THAT a by-law be presented to Council for three readings to delegate authority with regard to airport operations to the Commissioner of Corporate Services or his delegates to review and recommend the following:

a) agreements and contracts with the federal government for cost-shared program areas; b) agreements, licences and contracts with service providers or other agencies for services related to Airport operations; c) agreements and contracts under the Federal Airports Capital Assistance Program.

It being understood that staff will report to Council periodically as a schedule to the Purchasing Delegated Authority monthly report;

THAT the Mayor and Clerk be authorized to sign said agreements, which will be in a form satisfactory to the Director of Legal Services;

- and further - THAT staff will bring forward for Council's consideration where applicable, prior to any commitments being made on behalf of the City, any new initiatives that have policy implications, service level adjustments and/or appreciable financial implications for the City related to these service areas.

AUTHORIZING SIGNATURES:

- and further -

ORIGINAL SIGNED BY COMM ISSIONER Denis Leger, Commissioner, Corporate Services -

ORIGINAL SIGNED BY CHIEF ADMINISTRATIVE OFFICER Gerard Hunt, Interim Chief Administrative Officer

31

REPORT TO COUNCIL.

Commissioner Beach, Sustainability & Growth

Commissioner Hunt, Finance & Corporate Performance

Commissioner Thurston, Communify Development Services

Commissioner Leger, Corporate Services

Jim Keech, President, Utilities Kingston

May 6,2008 - -

NIR NIR NIR NIR NIR

COUNCIL MEETING! 1 9 b '08 Report No.: 08-1 13

32

REPORT TO COUNCIL. May 6,2008 - -

Report No.: 08-1 13

OPTlONSlDlSCUSSlON : At its regular Council meeting held on December 11, 2007, Report No. 08-006 was referred to the Administrative Policies Committee who then referred back to staff to determine appropriate language for reporting requirements in the by-law to delegate authority to staff to execute agreements for airport operations. -+ Staff will report all agreements, contracts and licences executed under the provision of delegated authority on a periodic basis. The reporting mechanism will be via a schedule to the monthly information reports to Council prepared by the Finance Department. The number of agreements, contracts and licences in a typical year is not expected to exceed eight (8).

EXISTING POLlCYlBY LAW:

By-Law Nos. 2000-134; 2006-21; 2006-21 1

NOTICE PROVISIONS:

There are no existing notice requirements under the Municipal Acf concerning this subject on record to date.

ACCESSIBILITY CONSIDERATIONS:

NIA

FINANCIAL CONSIDERATIONS:

No financial implications are to be considered in this report.

CONTACTS:

Shirley de Silva, Airport Manager

OTHER CITY OF KINGSTON STAFF CONSULTED:

Janis Morrison, Purchasing Agent

EXHIBITS ATTACHED:

Exhibit A - Report to Council 08-006 Exhibit B - Draft By-Law

(613) 389-6404, Ext. 101

(61 3) 546-4291, Ext. 2229

33

CITY OF KINGSTON REPORT TO COUNCIL

Exhibit A

I Report No.: 08-006 I TO:

FROM:

RESOURCE STAFF

DATE OF MEETING:

SUBJECT

Mayor and Council

Denis Leger, Commissioner, Corporate Services

Malcolm Morris, Director of Transportation

2007-1 2-04

Delegated Approval and Signing Authority for Airport Operation

EXECUTIVE SUMMARY The Airport Division is required to enter into agreements to administer programs that are largely defined by other levels of government or other publicly funded institutions. The purpose of this report is to establish and confirm for the Term of Council the delegation of authority for the authorization and execution of a number of these agreements.

RECOMMENDATION THAT a By-law be presented to Council to delegate authority with regard to airport operations to the Commissioner of Corporate Services or his delegates to review and recommend the following:

a. b.

c.

agreements and contracts with the Federal Government for cost-shared program areas; agreements, licenses and contracts with service providers or other agencies for services related to Airport operations; agreements and contracts under the Federal Airports Capital Assistance Program;

it being understood that the agreements be in a form satisfactory to the Director of Legal Services and that the Mayor and Clerk be authorized to sign said agreements; and further, THAT Council direct staff to bring forward for Council's consideration where applicable, prior to any commitments being made on behalf of the City, any new initiatives that have policy implications, service level adjustments andlor appreciable financial implications for the City related to these service areas.


~

CONSULTATION WITH THE FOLLOWING COMMISSIONERS:

Commissioner Beach, Susfainability & Growth

Commissioner Hunt, Finance & Corporate /Mornme

Commissioner Thurston, Commuky Development Services

Commissioner Leger, Corporate Services ~

Jim Keech, President, Utiifies Kingston NR indicates c~nsultat!on not required

NR NIR

NIR

u/ NR

34

REPORT TO COUNCIL. 2007-12-04 - Page 2 -

Report No.: 08-006

OPTIONSIDISCUSSION: Onaoim Service Deliveiv: The Instrument Landing System (ILS) at the Airport was installed in 1986. The ILS requires routine preventative and corrective maintenance to monitor its accuracy in providing navigational assistance to aircraft landing in inclement weather. It also requires flight checks twice a year to calibrate the system for safety reasons. These works are preformed by Nav Canada and require the C i to enter into service contracts annually. Nav Canada is sole supplier for these contracts.

New Service Initiatives: From time to time the Airport is required to enter into agreements with the Nav Canada Flight Service Station and the Canadian Air Transport Security Authority (CATSA) for services related to operational aspects of their respective agencies.

New Initiatives: Airport Administration submits Airports Capital Assistance Program (ACAP) requests to Transport Canada to assist in financing capital projects related to safety, asset protection and operating cost reduction. When an ACAP request is deemed eligible and approved for funding, the Airport must enter into a Contribution Agreement with the Federal Government for the project. The Federal Government has also instituted special compensation programs for Airports for security and safety and the City would have to enter into an Agreement for these programs as well.

Staff is seeking authorization from Council in an effort to streamline administration of these agreements. In the absence of such delegated authority, staff would be obligated to bring all agreements and amendments, as well as service contracts with providers and related amendments to Council for authorization. In the past, some contract amendments have been for an increased cost of under $100 annually.

All of the above programs have been in place for many years and require a quick response in order to secure grants or service delivery commitments and are part of normal and routine administmtive duties.

All capital project or service contract costs are included in the Airport operating or capital budgets prepared annually.

EXISTING POLlCYlBY LAW By-Law No. 98-1 , required the Mayor and Clerk to sign all agreements binding the Corporatiin.

NOTICE PROVISIONS: There are no existing notice requirements under the Municipal Act concerning this subject, on record, to date.

ACCESSIBILITY CONSIDERATIONS: NIA

FINANCIAL CONSIDERATIONS: No financial implications are to be considered in this report.

CONTACTS: Shirley de Silva, Airport Manager, 613-389-6404

OTHER CITY OF KINGSTON STAFF CONSULTED: NiA .

EXHIBITS ATTACHED: Draft By-law

35

COUNCIL MEETING@ 10% 0 4 '07

BY-LAW NO. 2008 - XXX A BY-LAW TO DELEGATE THE AUTHORITY FOR THE AUTHORITY AND EXECUTION OF AGREEMENTS FOR AIRPORT OPERATIONS.

PASSED: December 4, 2007.

WHEREAS the Municipal Act, 2001, provides that a municipality may delegate authority to a committee of Council or to an employee of the municipality, subject to any conditions which the municipality may impose;

THEREFORE the Council of The Corporation of the City of Kingston enacts as follows:

That a By-law be presented to Council to delegate authority with regard to airport operations to the Commissioner af Corporate Services or his delegates to review and recommend, subject to legal review and budget confirmation, and to authorize the Mayor and Clerk, to execute the following: a. agreements and contracts with the Federal Government for cost-shared program areas: b. agreements, licenses and contracts with service providers or other agencies for services

related to Airport operations; c. agreements and contracts under the Federal Airports Capital Assistance Program.

1.

2. FURTHER that Council direct staff to bring forward for Council's consideration where applicable, prior to any commitments being made on behalf of the City, any new initiatives that have policy implications, service level adjustments andlor appreciable financial implications for the City related to these service areas;

This By-law shall come into force and take effect on the date of its passing.

GIVEN FIRST AND SECOND READINGS December 4,2007

GWEN THIRD READING AND PASSED December 18,2007

CITY CLERK MAYOR

36

COUNCIL MEETING1 1 FfAY 0 6 '08 Exhibit B

BY LAW NO. 2008 - XXX

A BY=LAW TO DELEGATE THE AUTHORITY FOR THE AUTHORITY AND EXECUTION OF AGREEMENTS FOR AIRPORT OPERATIONS

PASSED: May 6,2008

WHEREAS the Municipal Act, 2001, provides that a municipality may delegate authority to a committee of Council or to an employee of the municipally, subject to any condition which the municipality may impose:

THEREFORE the Council of The Corporation of the City of Kingston enacts as follows:

1. THAT a by-law be presented to Council for three readings to delegate authority with regard to airport operations to the Commissioner of Corporate Services or his delegates to review and recommend the following:

a. agreements and contracts with the Federal Government for cost-shared program areas; b. agreements, licences and contracts with service providers or other agencies for services related to Airport

c. agreements and contracts under the Federal Airports Capital Assistance Program. It being understood that staff will report to Council periodically as a schedule to the Purchasing Delegated Authority monthly report; and

operations;

2. FURTHER that staff will bring forward for Council's consideration where applicable, prior to any commitments being made on behalf of the City, any new initiatives that have policy implications, service level adjustments andlor appreciable financial implications for the City related to these service areas.

This By-law shall come into force and take effect on the date of its passing.

GIVEN ALL THREE READINGS AND PASSED May 6,2008

CITY CLERK MAYOR

3 7

COUNCIL MEETING1 1 MAY 0 6 '08

CITY OF KINGSTON

REPORT TO COUNCIL

I Report No.: 08-119 I TO: Mayor & Council

FROM:

RESOURCE STAFF:

Cynthia Beach, Commissioner, Sustainability & Growth Group

Barclay Mayhew, Director of Project Development

DATE OF MEETING: 2008-05-06

SUBJECT: Kingston Multiplex Community Centre - Naming Rights Agreement

EXECUTIVE SUMMARY:

In January and February 2007, Council approved a process and guidelines to award the naming rights of the Kingston Multiplex facility. In April 2007 Council endorsed the naming rights process for the four (4) individual ice pads. City of Kingston project staff retained Wakeham and Associates Marketing Inc. to develop the best possible deal for the City within the naming rights policy and guidelines.

The process for naming rights included two approval steps by Council. The first step is for Council to approve the form of agreement which outlines legal obligations for the parties, including compensation to the City. If Council approves the form of agreement, an announcement will be made by City of Kingston project staff regarding the name of the corporate naming rights sponsors for the Multiplex as well as the four ice pads. The second step is for the public to be asked to provide input regarding the suffix for the name of the Multiplex facility (for example, ABC Multiplex, ABC FourPlex, ABC Centre) and a final recommendation for the full name will be provided to Council for final approval along with the input provided by the public.

The two-step process recommended to Council does not include an approval of the corporate name as part of this process. Staff have reviewed potential naming rights corporations and have ensured they are consistent with the naming rights policy. Altering the process to request public input on the corporate name is not recommended as it will be unlikely that commercial business will proceed under those conditions.

In December 2006, Wakeham and Associates prepared a valuation document which provided a high level market analysis and an estimated value for the naming rights of the Multiplex. Following the approval of the naming rights process, Wakeham and Associates developed a naming rights package which summarized deal points for an agreement and issued a local Request for Expression of Interest (RFEI) in March 2007. Companies were provided with a period of about three (3) weeks to respond to the RFEI. Following this three week period, Wakeham and Associates, in conjunction with City of Kingston project staff began to contact companies.

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REPORT TO COUNCIL COUNCIL MEETING1 1 MAY 0 6 '08

Report No. 08-1 19 May 6,2008

Over the past months, many companies with various levels of interest, have been in discussion with Wakeham and Associates and City of Kingston project staff to purchase naming rights of the Kingston Multiplex Community Centre and the individual rinks. Wakeham and Associates in collaboration with City of Kingston project staff have reviewed all potential candidates and offers based on the business plan and requirements of the naming rights guidelines and have finalized proposed agreements with the candidates that meet all requirements. The selections are being brought forward because they represent good value. Revenues from the agreements will be allocated toward the operating costs of the facility in order to keep user rates reasonable and reduce taxpayer contributions for arena facilities.

Wakeham and Associates have been approached with respect to an additional naming right opportunity for the overall site. This was not outlined in Report to Council 07-062 Kingston Regional Sports and Entertainment Centre and Multiplex Community Centre - Naming Rights Process and Report to Council 07-1 34 Multiplex Community Centre - Naming Rights Process for Individual Ice Pads. This opportunity results from community interest in the project and the ongoing development of the site as a recreational destination for many activities in the future. The opportunity to name the overall site would be negotiated as a five year term at $40,000 per year with a 5 percent annual increase.

It was recommended by Wakeham and Associates that the City implement the same two step naming process as used for the naming of the building. Examples of names that could be used for the site are XXX Sports Campus, XXX Activity Complex, or XXX Leisure Centre.

RECOMMENDATION:

That Council approve the proposed form of agreement to award the naming rights of the Kingston Multiplex and the four (4) rinks once it has been reviewed to the satisfaction of the Legal Services Department and the Commissioner of Sustainability and Growth; and

That Council approve the suffix of the final name of the facility in a future report, once the public consultation has been conducted through the City website; and

That Council endorse the naming rights process for the overall site; and

That Council authorize staff to enter into an agreement for the naming rights of the overall site once it has been reviewed to the satisfaction of the Legal Services Department and the Commissioner of Sustainability and Growth; and

That Council approve the suffix of the final name of the overall site in a future report, once the public consultation has been conducted through the City website.

39

REPORT TO COUNCIL

Commissioner Thurston, Community Development Services

May 6,2008 - 3 -

~~~ ~

NIR


Jim Keech, President, Utilifies Kingston

Report No. 08-1 19

NIR


ORIGINAL SIGNED BY COMMISSIONER I Cynthia Beach, Commissioner, Sustainability & Growth Group

1 ORlGlNAt SIGNED BY CHlFF ADW ATIVE OFFICER Gerard Hunt, Interim Chief Administrative Officer

I Commissioner Hunt, Finance & Corporate Performance I / I

I Commissioner Leqer, corporate Services I L/ I

4 0

COUNCIL MEETING1 1 IdAY 0 6 ’08 REPORT TO COUNCIL

May 6,2008 - 4 -

Report No. 08-1 19

OPTIONSIDISCUSSION:

Backqround and Process

In January and February 2007, Council approved a process to award the naming rights of the Kingston Multiplex which directed City of Kingston project staff to retain Wakeham and Associates Marketing to lead the competitive and open process. The January 23,2007 report also described a two step process, with the first report to include the draft of the contract, and the second with the approval of the final name of the Centre. In April 2007 Council endorsed the naming rights process for the four (4) individual ice pads. This report to Council is the first step in the two-step process, providing the terms of the proposed agreement.

Following this approval, City staff will conduct public consultation through the City’s website. Staff will bring another report to Council for the approval of the Multiplex facility’s final name, which will take into consideration input from the public consultation. The public consultation is to be limited to the selection of a suffix to the name of the company. As per the approved process, the name of the company is not provided in this report as the report is for the approval of the content of the agreement. Once the agreement is approved, the name of the company will be provided to Council and to the public. The public consultation is scheduled to start after the announcement of the company name. A report with the recommendation of the full name of the Centre (Le. ABC Centre or ABC Multiplex, etc.) will be brought forward to Council following the public consultation period.

In February 2007, Council also approved naming rights guidelines which were provided to Wakeham and Associates prior to any discussions and negotiations with companies. Discussions and negotiations with companies were not entertained unless they first met the guidelines. It should be noted that the current candidates meet the guidelines established by Council.

In December 2006, Wakeham and Associates prepared a valuation document which provided a high level market analysis and an estimated value for the naming rights of the Multiplex and individual rinks. Following the approval of the naming rights process, Wakeham and Associates, through City of Kingston project staff, developed a naming rights package which summarized deal points for an agreement. This package was provided to all companies demonstrating an interest in the naming rights for the Centre or the individual rinks. It is not proposed that consultation take place on the naming of individual rinks. The final name for each would be “ABC RinK’.

Wakeham and Associates issued a local Request for Expression of Interest (RFEI) in March 2007. At the time of its publication, no local companies responded to the RFEI. Wakeham and Associates had discussions with a number of companies with various levels of interest, between the months of January and March 2008. During that period of time, some local companies contacted both City of Kingston project staff and Wakeham and Associates to discuss the potential of purchasing the naming rights to the Multiplex facility and the four (4) individual ice pads.

Wakeham and Associates, in collaboration with City of Kingston project staff, have reviewed all potential candidates and offers based on the business plan and requirements of the naming rights guidelines and have finalized proposed agreements with the candidates that meet all requirements.

Wakeham and Associates have been approached with respect to an additional naming right opportunity for the total site. This was not outlined in Council reports 07-062 Kingston Regional Sports and Entertainment Centre and Multiplex Community Centre - Naming Rights Process and 07-134 Multiplex Community Centre - Naming Rights Process for Individual Ice Pads to Council, but results from community interest in this project and the ongoing

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COUNCIL MEETING1 1 MAY 0 6 ’08 Report No. 08-1 19 REPORT TO COUNCIL

May 6,2008 - 5 -

development of the site as a recreational destination for many activities in the future. The opportunity to name the overall site would be negotiated as a five year term at $40,000 per year with a 5 percent annual increase.

It was recommended by Wakeham and Associates that the City implement the same two step naming process as used for the naming of the building. Examples of names that could be used for the site are XXX Sports Campus, XXX Activity Complex, or XXX Leisure Centre.

Proposed Draft Aqreement Multiplex Naminq Rights

The proposed naming rights draft agreement has been through an initial review by the City, including Legal Services. There are still some operational and legal minor points that need to be clarified within the agreement (Le. location of interior signage, tailoring individual agreements to reflect type of naming (facilitylindividual ice pads)). These points will be reviewed to the satisfaction of both the City’s Legal Department and the Commissioner of Sustainability and Growth prior to agreement execution. The naming rights agreement for the overall site will be drafted upon Council’s authorization to proceed. The deal points of the contract for the facility are included in the attached draft agreement. Highlights of these points include the following elements:

1. Five (5) year agreement provides for the following revenues: a. $105,000 gross revenues for the first year with an escalation of 5% per year for the following four

years. This is the combined revenue for the facility and the four (4) individual ice pads.

2. The Naming Rights candidate for the facility will receive the following items: a. b. c.

d.

Signage rights for the Centre (exterior building faSade signage, door decals, directional signs) Recognition on Assignment LCD’s, logo on ice and ice resurfacers Two (2) usages of one ice pad and a multipurpose room per year rent free as negotiated for company events Centre name recognition on all facility originated printed collateral and broadcast material

3. The Naming Rights candidates for the individual rinks will receive the following items: a. b. c. d. e. Change Room signage

Digital backlit signage in prime scoreboard location Logo on ice and ice resurfacers Select door and window decals Electronic advertising opportunities throughout building

Naminq Riqhts Agreement Revenue and Cost Analysis

This section provides a financial analysis of the deal points identified under the Proposed Agreement section as well as other costs to be factored into the naming rights agreement. The escalation of 5% per year only applies to the cash contribution. The tables below provide a net cash contribution for revenues associated with the overall site, the facility as well as the individual rinks.

4 2

REPORT TO COUNCIL

Payment Structure Year 1

COUNCIL MEETING1 1 MAY 0 6 '08 Report No. 08-1 19

Gross Revenue Net Revenue $40.000 $37.000

May 6,2008 - 6 -

Year 2 Year 3 Year 4 Year 5 TOTAL

Five Year Table of Naminq Riqhts Valuation Overall Site

$42,000 $38[850 $44,100 $40,790 $46,305 $42,832

$221.025 $204.446 $48,620 $44,974

Payment Structure Gross Revenue Year 1 $40,000 Year 2 $42.000

Net Revenue $37,000 $38.850

Five Year Table of Naminq Riqhts Valuation Facility

_. -

Year 3 Year 4

$44; 1 00 $40,790 $46.305 $42,832

I

Year 5 $481620 TOTAL $221,025

$44[974 $204,446

Five Year Table of Naminq Riqhts Valuation Feature Rink

Year 1 Year 2 Year 3

I Pavment Structure 1 Gross Revenue I Net Revenue I $20,000 $1 8,500 $21,000 $1 9,425 $22.050 $20.396 . -

Year 4 Year 5

$231 153 $21 I417 $24.31 0 $22,487

~~~

Payment Structure Year 1

Five Year Table of Naminq Riqhts Valuation (3) Three Community Rinks

Gross Revenue Net Revenue $45.000 $41,625

Year 2 Year 3 Year 4 Year 5 Total

$47,250 $43[706 $49,613 $45,892 $52,093 $48,186 $54,698 $50,596 $248,654 $230,005

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REPORT TO COUNCIL

Payment Structure Year 1 Year 2

Report No. 08-1 19 May 6,2008

- 7 -

Gross Revenue Net Revenue $145,000 $1 34,125 $1 52.250 $1 40.831

Five Year Aggregate Table of Overall Naming Rights Valuation

Year 3 Year 4

$1 59,863 $147,871 $1 67.856 $1 55,267

Year 5 Total

. , . , $1 76,248 $1 63,030 $801.21 7 $741,124

Based on the tables above, there is a total value of $145,000 gross revenue and net revenue of $134,125 in the first year if the naming rights for the overall site are approved.

Revenues l a ) Business plan approved by Council included net yearly revenue of $50,000 for the first year. The

' proposed agreement exceeds the business plan target.

costs 2a) Signage costs related to naming rights are covered under the capital budget. All wayfinding, signage and

scoreclock costs are already budgeted in the base building project budget and therefore have no impact on the naming rights revenues. Costs related to signage do not have an impact on operational revenues and the business plan.

2b) the cost of including the logo and name in the facility material will not involve any additional costs to the facility material already covered into the pre-opening budget.

As per the January report approved by Council, Wakeham and Associates also receives a commission on the naming rights agreement. Wakeham and Associates' commission has been set at an overall rate of 7.5%.The total commission to Wakeham and Associates is $43,514 over the five year period and will be paid on a yearly basis. This cost is factored into the net naming rights revenues.

Wakeham and Associates' consulting fees were covered through the project capital budget and therefore have no impact on naming rights revenues and the business plan.

It should be noted that although naming rights agreements tend to vary in their deal points, the proposed agreement for the Kingston Multiplex includes general deal points that are found in most agreements.

EXISTING POLICY/BY LAW:

City of Kingston Naming of Corporate Assets Policy

NOTICE PROVISIONS:

There are no notice provisions required for this report.

REPORT TO COUNCIL May 6,2008

- 8 -

COUNCIL MEETING1 1 !AY 0 6 '08 Report No. 08-1 19

ACCESSIBILITY CONSIDERATIONS:

There are no accessibility considerations with this report.


The business plan for the Kingston Multiplex included $50,000 in gross revenues from naming rights with an escalation for inflation. Signage costs are to be covered by the project capital cost.

The proposed naming rights agreement exceeds the business plan requirements. It should also be noted that all applicable costs related to naming rights have been factored into and accounted for in the proposed net revenues.

CONTACTS:

Barclay Mayhew, Director of Project Development, Sustainability and Growth, (61 3) 546-4291 ext. 1350.

OTHER CITY OF KINGSTON STAFF CONSULTED:

Alan McLeod, Senior Legal Counsel, Legal Services Tony Fleming, Senior Legal Counsel, Legal Services Lanie Hurdle, Director, Project Development

EXHIBITS ATTACH ED :

Exhibit A - Draft Agreement to Award Naming Rights

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CQUNClL MEETING1 1 NAY 0 6 ’08 REPORT 08-119

EXHIBIT A NAMING SPONSORSHIP AGREEMENT

THIS SPONSORSHIP AGREEMENT (the “Agreement”) is made and entered into effective as of the 1’‘ day of May, 2008 by and among the Corporation of the City of Kingston (the “Owner”) with regard to the Kingston Multiplex (“Facility”), and XxxXX Company (the “Sponsor”). For and in consideration of the mutual covenants and agreements contained herein, the parties hereto do hereby agree as follows:

ARTICLE 1

Definitions

Section 1 .I The following terms shall have the following meanings as used in this Agreement:

“Additional Expenditure” shall have the meaning assigned to such term pursuant to the provisions of Section 5.2 hereof.

“Affiliates” shall mean, when used with respect to any person or entity, any other person or entity which controls, is controlled by or is under common control with the specified person or entity.

“Business days” means a day other than a Saturday or Sunday or any statutory or civic holiday observed in the City of Kingston.

‘Contract Year” shall mean the 12 month period during the Term commencing on the Launch Date and ending on the date that is the one year anniversary thereof.

“Corporate Events” shall have the meaning assigned to such term pursuant to the provisions of Subsection 2.2(h) hereof.

“Current Year Termination Refund Amount” shall have the meaning assigned to such term pursuant to the provisions of Section 3.3(3) hereof.

“Effective Date” means the date of this Agreement as first set out above.

“Event” shall mean and include every presentation or performance that occurs in the Centre whether or not tickets are issued or offered from sale for admission to any such presentation or performance that occurs in the Centre to which members of the general public are admitted. Notwithstanding the preceding, an Event is also defined as an occasion that may be private in nature (such as a consumedtrade show, corporate or special interest event) which may or may not be open to the general public. Each performance of a multi-day or multi- performance presentation (such as a circus concert, consumer/trade show) shall count as a separate event.

1

“Facility”, or “Centre” shall mean the Kingston Multiplex, located at 1350 Gardiners Road, Kingston, ON.

“First Level Representatives” shall have the meaning assigned to such term pursuant to the provisions of Subsection 9.3(a) hereof.

“Force Maieure Event” shall have the meaning assigned to such term pursuant to the provisions of Section 10.1 7 hereof.

“Launch Date” shall have the meaning assigned to such term pursuant to the provisions of Section 2.1.

“Lono” shall have the meaning assigned to such term pursuant to the provisions of Subsection 2.2(a).

“Lono Guidelines” means the logo guidelines as agreed to by the parties.

“Mediation” shall have the meaning assigned to such term pursuant to the provisions of Subsection 9.3(c) hereof.

“Name” shall have the meaning assigned to such term pursuant to the provisions of Subsection 2.1,

“Owner Trademarks” shall have the meaning assigned to such term pursuant to the provisions of Section 6.1 hereof.

“Refund Amount” shall have the meaning assigned to such term pursuant to the provisions of Subsection 5.l(b) hereof.

“Relevant Period” shall have the meaning assigned to such term pursuant to the provisions of Subsection 2.2(k) hereof

“Second Level Representatives” shall have the meaning assigned to such term pursuant to the provisions of Subsection 9.3(b) hereof.

“Site Purposes” means the purposes for which the Facility is intended to be used, including community sports and entertainment events and programs as well as private functions, exhibits, trade shows, conferences and other like events or programs.

(v) - “Sponsor Trademarks” shall have the meaning assigned to such term pursuant to the provisions of Section 6.1 hereof.

(w) “Sponsorship Fee” shall have the meaning assigned to such term pursuant to the provisions of Section 5.1 hereof.

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COUNClL MEETING1 1 MAY 0 6 ’08

(x) ‘Standard” shall have the meaning assigned to such term pursuant to the provisions of Section 7.1 hereof.

(y) “Subsequent Year Termination Refund Amount” shall have the meaning assigned to such term pursuant to the provisions of Section 3.3(3) hereof.

(z ) “Term” shall have the meaning assigned to such term pursuant to the provisions of Section 3 hereof.

ARTICLE 2.

Naming Rights. Sponsor and Owner Benefits

Section 2.1 Naming Rights. Commencing on the actual date upon which the Name, Logo and signage are publicly unveiled (the “Launch Date”), and throughout the remainder of the Term, the name of the Facility will be rebranded as the “XXXXX Centre” or such other name as may be mutually agreed upon in writing by the parties (the “Name”). The Sponsor acknowledges that the Naming Rights are subject to approval of Kingston City council and that the approval process includes a public consultation process regarding the suffix (i.e. “Centre”, “Place”, “Arena”, “Multiplex” etc.) to the Facility name. The Sponsor agrees to take the results of the public consultation into consideration when recommending its desired name for the Facility.

Section 2.2 Sponsor’s Benefits.

(a) created for the Facility at Owner‘s expense. Same may be amended by agreement of the parties from time-to-time in accordance herewith (the “Logo”), which has been designed at the Owner’s sole cost and expense.

Logo. The Sponsor and Owner agree that a mutually agreeable logo will be

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COUtaCiL MEETING1 1 MAY 0 6 ’08

(b) throughout the remainder of the Term (i) the Logo shall, at the sole cost of the Owner, and subject to prior approval of Sponsor, be included in a prominent position in all of the Owner’s collateral materials and advertising of any kind that promotes the Facility or any event or activity to be presented at the Facility; and (ii) Owner shall make best efforts to cause any outside user of the Facility to incorporate the Logo and/or Name in regular typeface into any materials it creates to promote their event at the Facility. The design, placement and use of the Logo and the Name in all Advertising or Collateral materials shall be in accordance with the Logo Guidelines and any proposed use not in accordance with the Logo Guidelines shall require the Sponsor’s prior written approval (not to be unreasonably withheld). A proposal requiring the Sponsor’s approval shall be provided to the Sponsor at least five (5) business days prior to the date on which such approval is required; provided that the Sponsor’s prior written approval of a piece of Advertising Collateral shall constitute Sponsor‘s approval of all future Advertising Collateral similar in layout and form (in the case of Visual Materials) and form and content (in the case of Other Materials) unless and until Sponsor advises Owner otherwise. Where the Sponsor fails to respond to a request for approval within the five (5) business days, it shall be deemed to have approved the Advertising Collateral, but only in respect of that particular piece of Advertising Collateral.

Advertising and Collateral Materials. Commencing on the Launch Date and

(c) and throughout the remainder of the Term the Logo shall be incorporated into the exterior and selected interior Building Signage as follows:

Signage. Commencing no later than ninety (90) days after the Launch Date

Exterior - - Facade signage - Door decals

Interior - - Directional signs - LCDscreens - Centre ice - Zamboni (three machines)

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COUNCIL MEETING1 1 MAY 6 ‘08

. Owner reserves the right to sell and/or permit signage to other sponsors. Any event producer will be allowed temporary (i.e. through the duration of the event period) signage rights. The parties agree that the foregoing does not prevent the producer of any event, leasing the Facility from having its own sponsors, competing or otherwise, and displaying such sponsors’ advertising and logos within the producer’s licensed space, provided that all of Sponsor’s on-site benefits as set out in this Agreement shall remain intact as part of the normal operation for the presentation of events but subject to producers’ rights which may include the temporary right to cover signage provided that this applies to all the signage in the building. Under no circumstances will the exterior signs identifying the building be covered.

’

(d) Public Relations.

Sponsor and Owner shall work together in good faith to draft and publish a press release announcing publicly the entering into of this Agreement, the branding contemplated herein and such other matters agreed to by the parties, and develop and implement a timeline and plan for the public unveiling of the Name, Logo and signage contemplated by Subsection 2.2(c).

Commencing on the Launch Date and throughout the remainder of the Term and subject to the Sponsor’s prior written approval (which approval shall not be unreasonably withheld), the Owner will, subject to the approval of the Sponsor, include the Logo, the Name and the Sponsor’s name in all publicity materials produced by the Owner that are related to the Facility (as differentiated from Advertising Collateral) regardless of form (“PR Collateral”). All PR Collateral shall be provided to Sponsor at least five (5) business days prior to the date on which approval of Sponsor is required for the use of the Logo, Name and the Sponsor’s name; provided, that Sponsor‘s prior approval of a form of PR Collateral shall constitute Sponsor’s approval of all future PR Collateral similar in content and layout unless and until Sponsor advises Owner otherwise, and that failure by the Sponsor to respond to a request for approval of PR Collateral submitted within five (5) business days of submission for approval shall be deemed to constitute approval by the Sponsor but only in respect of that specific piece of PR Collateral. Owner shall make best efforts to cause any outside user of the Facility to incorporate the Logo and/or Name in regular typeface into any materials it creates to promote their event at the Facility.

Without limiting any other provision herein, for greater certainty all PR Collateral of a non-visual nature and all Other Materials shall utilize the Name with no abbreviations or acronyms thereof without the express written consent of Sponsor generally or in accordance with this Section 2.2(e) or 2.2(b), as applicable.

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(4) The phone line at the Facility shall have an answering service recording that states the Facility name, crediting the Sponsor.

(e) Facility Use: Sponsor shall have the option to use the Centre as follows:

(1) Fitness Centre - If the Fitness Centre is managed by a private operator, Owner will make introductions for Sponsor with regard to discussing offering a promotional one-day access pass for each XXXXX employee. If the Fitness Centre is managed by the Owner, then owner would permit Sponsor to issue a one-day promotional access pass for each XXXXX employee.

Multipurpose room on four dates annually with no rental fee. Such use will be limited to the hours of 9:00 AM to 500 PM. Sponsor will be responsible for any maintenance, catering, labor and other incidental costs.

(3) Rinks - The sponsor shall have the opportunity to utilize one rink and multi-purpose room at the Facility rent-free, in a manner to be mutually agreed upon by the parties, acting reasonably, as follows: - One full day annually -

(2) Multi-Purpose Room - Sponsor will have access to use of the '

Twelve one-hour sessions annually, to be scheduled for mid-week, mid-day times, focusing on off-peak season dates (NOTE: Sponsor will have the right to allocate the 12 one-hour sessions individually or back-to-back in varying combinations) On an ad-hoc basis, Owner would make available to Sponsor un- booked time during weekday times, focusing on off-peak season, as bonus access times for XxxXX employees, subject to availability.

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Owner has exclusive control over all labour, catering, rentals, etc. with respect to such uses. All costs normally charged by Owner relating to such uses will be the responsibility of the sponsor.The Sponsor acknowledges that the Owner may at its sole discretion refuse to agree to dates requested by Sponsor which are more than three (3) months from the date of the Sponsor's request or which may conflict or impact with any tentative or confirmed Facility bookings as of the date of Sponsor's request.

(f) Owner's sole expense. Sponsor will also have a hotlink from the Facility Website to a Facility-oriented page on the Sponsor Website.

Website. Owner shall include the Logo on the Website for the Facility at

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(g) Union Agreements.

In exercising its rights under this Agreement, the Sponsor shall conform with and abide by all covenants and agreements in force and in effect from time to time between the Owner and any union or association of which it is advised and shall, without restricting the generality of the foregoing:

a. obtain, with the assistance of the Owner, any clearance required by any union or trade organization having any jurisdiction over any part of work to be done by the Sponsor at the Facility, and

b. endeavour not to prejudice any relationship between the Owner and any union or trade organization.

The Owner shall provide the Sponsor with copies of collective agreements in force and such reasonable information as the Sponsor may from time to time require to fulfill its obligation under this section.

ARTICLE 3.

Term

Section 3.1 Term. The term of this Agreement shall be the period commencing on the Effective Date of this Agreement and terminating on the date that is the five (5) year anniversary of the Launch Date (the “Initial Term” together with any Renewal Term the “Term”).

Section 3.2 Effect of Termination or Expiry.

(a) Upon expiry of this Agreement or early termination in accordance with Section 9.2:

(1) Owner shall as soon as reasonably practicable remove or alter, at its own cost, all signage then in place in accordance with Section 2.2(c) in order to remove reference to the Logo and Name it being acknowledged by Owner that (i) to the extent alterations are undertaken the altered signage shall bear no resemblance to the Logo and Name, and (ii) upon early termination by Sponsor in accordance with Sections 9.2(c), 5.1 (b) or 10.1 7, Owner shall immediately remove or otherwise obscure at its own cost all visible representations of the Logo and Name then in place;

(2) Owner shall commencing upon the effective date of such expiry or termination, cease using any PR Collateral and Advertising Collateral containing the Logo or the Name, or otherwise referencing the Sponsor;

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(3) to the extent that this Agreement is terminated by Sponsor pursuant to Sections 9.2(c), 5.l(b) or 10.17, Owner shall, in addition to any other remedies which the Sponsor may have at law, within fifteen (1 5) days of the effective date of such termination return a pro rata' portion of the payment made by Sponsor in accordance with Section 5.1 during or in respect of the Contract Year in which the Agreement is terminated, if any, calculated as the product of the fraction the numerator of which is the number of days remaining in such Contract Year as at the effective date of such termination (plus in the case of a termination in accordance with Section 5.l(b) the number of days making up the Closed Period) and the denominator of which is the total number of days in the Contract Year multiplied by any payment previously made during or in respect of the applicable Contract Year in accordance with Section 5.1 (the "Current Year Refund Amount"). In addition, Owner shall return any and all payments made by Sponsor in advance of a subsequent Contract Year in accordance with Section 5.1 (the "Subsequent Year Termination Refund Amount").

(4) to the extent that this Agreement is terminated by the Owner pursuant to Section 9.2(c) or 10.1 7, within fifteen (1 5) days of the effective date of such termination:

(0

(ii)

in the event the payment required by Section 5.1 in respect of the Contract Year during which termination occurs has not been made, Sponsor shall, in addition to any other remedies which the Owner may have at law, pay a pro rata portion of such unpaid amount calculated as the product of the fraction the numerator of which is the number of days that have passed in such Contract Year as at the effective date of such termination and the denominator of which is the total number of days in the Contract Year multiplied by the payment not yet made during or in respect of the Contract Year in question; and

In the event the payment required by Section 5.1 in respect of the Contract Year during which termination occurs has been made, Owner shall, return the Current Year Termination Refund Amount and, in any event, Owner shall return the Subsequent Year Termination Refund Amount.

(b) The termination or expiration of all or any part of this Agreement shall not affect or prejudice any rights or obligations which have accrued or arisen under this Agreement or such part thereof prior to the termination or expiry and those rights and obligations shall survive the termination of this Agreement or part thereof. Notwithstanding any other provision of this Agreement, Article 8, this Sections 5.1 and 10.4 and all other provisions of this Agreement necessary to give

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COUNCIL MEETING^ 1 W A Y 3 6 ’08

effect thereto shall survive the termination or expiry of this Agreement.

(c) In the event of a termination of this Agreement by the Owner in accordance with Section 9.2(c) the Owner may, in its sole discretion, choose to offset any amounts owing by the Sponsor under this Agreement against amounts to be paid by the Owner to the Sponsor under a Gas Contract, Electricity Contract and/or Other Product Contract. In the event of a termination of any Gas Contract, Electricity Contract or Other Product Contract due to an unremedied default of Owner, the Sponsor may, in its sole discretion, choose to offset any amounts owing to it under the applicable contract against any amounts to be paid by Sponsor under this Agreement.

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ARTICLE 4.

Exclusivity

Section 4.1 Generally. In addition to any limitations contained in Section 2.1, Owner agrees that it will not, at any time during the Term, (a) enter into a naming rights sponsorship arrangement with a competitor of the Sponsor, (b) except to the extent a person or entity provides services similar to the Services pursuant to an agreement in effect as at the Effective Date and the agreement requires or permits same, permit any person or entity to publicize, or publicize itself, the existence of any arrangement to provide such services that does not involve Sponsor, (c) permit any person or entity that is a competitor to the Sponsor to have logo representation on any printed material or on the Facility website that is any more than 50% of the size of the logo of the Sponsor or (c) permit any person or entity, or enter into any agreement with a person or entity that requires Owner to, install exterior signage or signage on or in the immediate vicinity of the Facility so as to interfere with the visibility of the Signage referred to in Section 2.2(c)( 1 ) as determined by the Sponsor, acting reasonably. The parties agree that the foregoing does not prevent the producer of any event, show or production leasing the Facility from having its own sponsors, competing or otherwise, and displaying such sponsors’ advertising and logos within the producer’s licensed space, provided that all of Sponsor‘s on-site benefits as set out in this Agreement shall remain intact but subject to producers’ rights which may include the temporary right to cover signage. In addition, except as permitted under the terms of this Agreement, Owner agrees that it will not enter into any agreement or arrangement or other relationship, or extend the term of or voluntarily renew any currently existing agreement, arrangement or relationship, that results in a conflict or interferes with the Owner‘s obligations or Sponsor’s rights hereunder.

ARTICLE 5.

Financial Considerations

Section 5.1 Amount of Payment.

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‘(a) In consideration of the rights and benefits being granted to Sponsor pursuant to the provisions of this Agreement, to the extent Owner fulfills its obligations hereunder, Sponsor will pay to Owner the fees (the “Sponsorship Fee”). Total Fees over the Term total $221,025.00.

In addition to the Sponsorship Fee, the Sponsor shall be responsible for the payment of all applicable taxes, including Goods and Services Tax (GST), of which the Owner shall advise Sponsor from time-to-time and remit to the applicable taxing authorities. Sponsor shall, subject to any rights it may have to apply Refund Amounts to such Contract Year, pay all such undisputed amounts to Owner within fifteen (1 5) business days of receipt of such invoice.

(b) In the event that a material portion of the Facility is unable to be used for the Site Purposes (or such other purpose as agreed to by Sponsor) (“Closed”) for a period exceeding sixty (60) days for any reason other than Sponsor’s negligence or willful misconduct (each such period being a “Closed Period”), in addition to any other rights and remedies contained herein, unless such Closed Period is the result of a Force Majeure Event, Sponsor shall have no obligation to pay the Sponsorship Fee in respect of the Closed Period and, in the event that Sponsor has already paid Sponsorship Fees in respect of the Contract Year in which such Closed Period occurs the Owner shall, at the discretion of the Sponsor, refund the amount calculated as the product of the fraction the numerator of which is the number of days making up the Closed Period over the total number of days in the Contract Year multiplied by the Sponsorship Fees, if any, paid during or in respect of such Contract Year (including any Refund Amounts previously applied forward under (y) below by Sponsor) under Section 5.2(a) (the “Refund Amount”), or apply the Refund Amount to the Sponsorship Fees owed in respect of a future Contract Year. In addition to the rights described above and elsewhere herein, in the event that a single Closed Period exceeds three hundred and sixty-five (365) continuous days or multiple Closed Periods equaling three hundred and sixty-five (365) days occur within any twenty-four (24) month period during the Term, the Sponsor shall have the right to terminate this Agreement on the terms as set out in this Agreement.

ARTICLE 6.

Logo Specifications/Use of Trademarks

Section 6.1 Grant of Trademark Rights.

(a) The Sponsor hereby grants to the Owner the non-exclusive right to use the Sponsor’s names, trade names, trademarks and marks which may be amended from time to time in writing by the Sponsor (“Sponsor Trademarks”) in the manner contemplated by this Agreement during the Term. The Sponsor Trademarks, and all goodwill therein, shall remain the exclusive property of the Sponsor, and any and all rights therein shall enure to the benefit of and be the exclusive property of the Sponsor.

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(b) The Owner hereby grants to the Sponsor the non-exclusive right to use the Owner's names, trade names, trademarks and marks which may be amended from time to time in writing by the Owner ("Owner Trademarks") in the manner contemplated by this Agreement during the Term. The Owner Trademarks, and all goodwill therein, shall remain the exclusive property of the Owner, and any and all rights therein shall enure to the benefit of and be the exclusive property of the Sponsor.

Section 6.2 Restriction on Use. The Owner Trademarks and the Sponsor Trademarks shall at all times be used solely for the purpose and in the manner described in this Agreement, or as may be further approved by the Owner or the Sponsor, as the case may be, in writing from time to time.

Section 6.3 Form of Use. Without limiting Subsections 2.2(b) and (e), all use of Sponsor Trademarks in advertising, tickets, signs, programs or any other promotional items bearing a Sponsor Trademark which may be used, displayed or sold by the Owner (or its designee) during the Term pursuant to the provisions of this Agreement shall be in accordance with the specifications to be provided by the Sponsor from time to time.

ARTICLE 7.

Representations and Warranties

Section 7.1 Owner's Representations, Warranties and Covenants. In addition to any representations, warranties and covenants contained elsewhere herein, the Owner hereby represents, warrants and covenants to the Sponsor as follows:

(a) this Agreement and to engage in and perform the transactions contemplated hereby, has taken all necessary action to authorize the execution, delivery and performance by it of the Agreement (including obtaining the required approval of the Council of the Corporation of the City of Kingston), and no joinder, consent or approval of any other person or entity is required for it to properly consummate and perform this Agreement.

The Owner has the requisite power and capacity and authority to enter into

(b) enforceable against the Owner in accordance with its terms and applicable law.

This Agreement is the legal, valid and binding obligation of the Owner

. (c) The execution and performance of this Agreement by the Owner does not violate the terms and provisions of any agreement to which the Owner is a party or by which its assets are bound.

(d) force and effect property and casualty and other insurance relating to the Facility that a prudent business would maintain in full force and effect.

The Owner has, and will at all times throughout the Term maintain in full

Section 7.2 Sponsor's Representations and Warranties. In addition to any representations and warranties contained elsewhere herein, Sponsor hereby represents and warrants to the Owner as follows:

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(a) this Agreement and to engage in and perform the transactions contemplated hereby, has taken all necessary corporate action to authorize the execution, delivery and performance by it of the Agreement, and no joinder, consent or approval of any other person or entity (which has not yet been obtained) is required for it to properly consummate and perform this Agreement.

The Sponsor has the requisite corporate power and authority to enter into

(b) This Agreement is the legal, valid and binding obligation of Sponsor enforceable against the Sponsor in accordance with its terms and applicable law.

(c) unenforceable in whole or in part. The Sponsor’s right to use, and to license the use of, the Sponsor Trademarks as they are intended to be used pursuant to this Agreement has not been challenged. No actions, claims, proceedings or suits are pending nor, to the Sponsor’s knowledge, threatened regarding the Sponsor’s right to use or to license the Sponsor Trademarks. The Sponsor Trademarks do not infringe any rights owned or possessed by any third party.

The Sponsor Trademarks are subsisting and are not invalid or

(d) The execution and performance of this Agreement by the Sponsor does not violate the terms and provisions of any agreement to which the Sponsor is a party or by which its assets are bound.

Each provision of this Section 7.2 is a material provision of this Agreement.

ARTICLE 8.

Indemnification

Section 8.1 Sponsor’s Indemnification. Sponsor will reimburse, indemnify, defend and hold the Owner and their elected officials, officers, employees and Owners, or any of them (the “Indemnitees”) harmless from and against:

(a) Any and all claims, damages, losses, deficiencies, liabilities, penalties, charges, costs and expenses resulting from, relating to or arising out of (i) any breach of any representation made by the Sponsor in this Agreement, (ii) the breach of any warranty, representation, covenant or obligation of the Sponsor contained in this Agreement, (iii) the use of Sponsor Trademarks by the Owner or the Sponsor pursuant to and in accordance with this Agreement, and (iv) the use of Sponsor Trademarks by the Sponsor or anyone authorized by the Sponsor, whether such use is pursuant to this Agreement or not, but indemnity shall not apply to claims, damages, losses, deficiencies, liabilities, penalties, charges, costs or expenses are caused by the negligence or willful misconduct of the I ndemnitees.

(b) costs, charges and expenses which may be imposed upon, incurred by or

Any and all claims, damages, losses, deficiencies, liabilities, penalties,

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asserted against the Indemnitees, or any of them, from any cause or in any manner whatsoever resulting from, relating to or arising out of any negligent act or omission of the Sponsor, except to the extent those claims, damages, losses, deficiencies, liabilities, penalties, costs, charges and expenses are caused by the negligence or willful misconduct of the Indemnitees.

(c) assessments, audits, fines, judgments, costs and other expenses (including, without limitation, court costs and reasonable attorneys’ fees) incident to any of the indemnified claims referred to in Section 8.l(a) or (b) above or to the enforcement of the provisions of this Section 8.1.

Any and all actions, suits, claims, proceedings, investigations, demands,

Section 8.2 Owner’s Indemnification. Owner will reimburse, indemnify, defend and hold the Sponsor, its Affiliates, and their officers, employees and Owners, or any of them (the “Sponsor Indemnitees”) harmless from and against:

(a) charges, costs and expenses resulting from, relating to or arising out of (i) breach of any representation made by the Owner in this Agreement, (ii) the breach of any warranty, representation, covenant or obligation of the Owner contained in this Agreement, or (iii) the use of Sponsor Trademarks by the Owner other than in accordance with this Agreement .


(b) costs, charges and expenses which may be imposed upon, incurred by or asserted against Sponsor Indemnities from any cause or in any manner whatsoever resulting from, relating to or arising out of (i) the operational activities of Owner at the Facility, or (ii) any negligent act or omission of the Owner, except to the extent those claims, damages, losses, deficiencies, liabilities, penalties, costs, charges and expenses are caused by the negligence or willful misconduct of the Sponsor Indemnitees.


(c)Any and all actions, suits, claims, proceedings, investigations, demands, assessments, audits, fines, judgments, costs and other expenses (including, without limitation, court costs and legal costs) incident to any of the indemnified claims referred to in Section 8.2(a) or (b) above or to the enforcement of the provisions of this Section 8.2.

Section 8.3 No Exclusive Remedy.

The remedies provided by this Article 8 are in addition to, and not to the exclusion of, any other remedy that may be available at law or in equity.

Section 8.4 Survival.

Anything to the contrary notwithstanding, the indemnities provided for in this Article 8 shall survive the execution and performance and any termination of this Agreement.

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Section 8.5 Limitation on Liability.

Despite anything in this Article 8, neither party shall be responsible for special, indirect, consequential or punitive damages or loss of profit incurred by the other, however caused.

ARTICLE 9.

Defaults and Remedies

Section 9.1 Default.

(a) If a party (the "Defaulting Party") breaches a material provision of this Agreement (including without limitation those marked as such herein), then the other party (the "Non-Defaulting Party") shall have the right to give the Defaulting Party a notice ("Default Notice") specifically setting forth the nature of such failure or violation and stating that the Defaulting Party shall have a period of ten (IO) days to pay any sums of money specified therein as due and owing or, if the failure or violation is a non-monetary default and is capable of being cured, thirty (30) days to cure such default specified therein. If the monies specified in the Default Notice are not paid within such ten (IO) day period, or if such non-monetary failures or violations are not capable of being cured or, if capable of being cured, such Defaulting Party has not cured such non-monetary failures or violations within such thirty (30) day period (if such non-monetary default is capable of being cured but not within thirty (30) days and if efforts to cure such non-monetary default have commenced and are continuing, then within a ninety (90) day period), then a "Party Default" shall be deemed to have occurred with respect to such Defaulting Party. If a Defaulting Party cures in all material respects all of its failures or violations which are capable of being cured within the aforesaid notice and cure periods, then such defaults shall be deemed no longer to exist and such Party shall be deemed no longer to constitute a Defaulting Party.

Section 9.2 Rights and Remedies. Subject to Section 9.3 and in addition to any rights and remedies set out elsewhere herein, upon the occurrence of a Party Default, the Non-Defaulting Party shall have the following rights, options and remedies which shall be cumulative and may be exercised concurrently or independently in the sole and absolute discretion of the Non-Defaulting Party:

(a) any, and any direct damages arising from such default (including, without limitation, reasonable attorneys' fees and disbursements incurred by the Non-Defaulting Party in prosecuting any such action).

The right to bring an action at law in order to recover the amounts owed, if

(b) The right to bring any proceeding in the nature of injunction, specific performance or other equitable remedy, it being acknowledged by each of the parties that damages at law may be an inadequate remedy for such default.

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COUNCIL MEETING1 1 MAY 0 6 ’08

(c) Defau It i ng Party .

The right to terminate this Agreement by providing notice thereof to the

The foregoing rights and remedies are cumulative of, and in addition to, any rights, remedies or recourses to which the Non-Defaulting Party may be entitled at law or in equity.

Section 9.3 Conflict Resolution. Notwithstanding anything to the contrary herein, any controversy, claim or dispute, including relating to any Party Default or potential Party Default (“Dispute”) arising out of or related to this Agreement, including, without limitation, Disputes covering the performance of the parties’ obligations or the interpretation of the terms and conditions of this Agreement except any Dispute relating to a breach or an alleged breach of confidentiality or in which a party is seeking injunctive relief (which at any time may be made the subject matter of an action or application in a court of law or equity), shall be dealt with as follows:

Each Dispute that the parties are unable to resolve it will be referred in the first instance to the General Manager of the Sponsor and the General Manager of the Facility (“First Level Representatives”).

If the First Level Representatives are unable to resolve the Dispute within ten (1 0) business days following reference by the First Level Representatives, or such other period as may be agreed by the parties, they will refer the matter to the President of the Sponsor company and the Manager of Arenas (“Second Level Representatives”).

If the Second Level Representatives are unable to reach a mutually acceptable agreement within the ten (1 0) business days following reference by the First Level Representatives, or such other period as may be agreed between the parties, the matter will be referred by the parties to informal mediation by a party agreed to by the parties, acting reasonably (“Mediation”).

If the Mediation does not resolve the Dispute to the mutual acceptance of both parties within twenty (20) business days following the appointment of the mediator, or such other period as may be agreed between the parties, the parties shall be able to pursue remedies available under Section 9.2.

ARTICLE I O .

Miscellaneous Provisions

Section 10.1 Notices. All notices given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally with receipt acknowledged or sent by registered or certified mail or equivalent, if available, return receipt requested, or by facsimile or electronic mail (which shall be confirmed by a writing sent by registered or certified mail or equivalent on the same day that such facsimile, telex or cablegram is

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COUlVcie mEETING1 1 MAY 0 6 '08

sent), or by recognized overnight courier for next day delivery, addressed or sent to the parties at the following addresses and facsimile numbers or to such other additional address or facsimile number as any party shall hereafter specify by notice to the other parties:

Owner: The City of Kingston

Attention: Barclay Mayhew Telephone: Fax:

Sponsor: XxxXX Inc.

Attention: Telephone: Fax:

Section 10.2 Other Instruments. The parties hereto covenant and agree that they will execute such other and further instruments and documents as are or may become necessary or convenient to effectuate and carry out the provisions of this Agreement.

Section 10.3 Whole AgreemenVAmendment This Agreement shall be the whole agreement between the parties with respect to all matters herein and its execution has not been induced by, nor do any of the parties hereto rely upon or regard as material, any representations or premises whatsoever not incorporated herein. Except with respect to the list of Sponsor Trademarks and Owner Trademarks, any alteration, amendment or qualification of this Agreement shall be null and void and shall not be binding upon any such party unless made and recorded in a written instrument executed by the parties.

Section 10.4 Headings. The headings used in this Agreement are used for administrative purposes only and do not constitute substantive matter to be considered in construing the terms of this Agreement.

Section 10.5 Assignment. Neither party to this Agreement may assign or transfer its interest herein except with the prior written consent of the other party which consent may not be unreasonably withheld, provided that where the Agreement is in good standing (a) the Owner may assign and transfer its interests hereunder to the City of Kingston or to any purchaser who acquires the Owner's interest in and to the Facility except to the extent such purchaser is a competitor of Sponsor, and (b) the Sponsor may assign and transfer its interests hereunder to any Affiliate or otherwise as part of an internal reorganization or to a purchaser of all or substantially all of Sponsor's assets. In the case of any assignment, with or without the consent of the non-assigning party, the assigning party and the proposed assignee shall enter into an agreement with the non- assigning party agreeing to assume the rights and obligations and comply with the terms and conditions of this Agreement.

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COUNClL MEEiiNG1 1 NAY 0 6 '08

Section 10.6 Parties Bound. This Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, and assigns where permitted by this Agreement.

Section 10.7 Waiver. A waiver of any default, breach or non-compliance under this Agreement is not effective unless in writing and signed by the party to be bound by the waiver. No waiver shall. be inferred from or implied by any failure to act or delay in acting by a party in respect of any default, breach, non-observance or by anything done or omitted to be done by another party. No waiver of any term, provision, or condition of this Agreement, in any one or more instances, shall be deemed to be, or shall constitute, a waiver of any other provision hereof, whether or not similar, nor shall such waiver constitute a continuing waiver or waiver in respect of any subsequent default, breach or non-compliance (whether of the same or any other nature).

Section 10.8 Legal Construction. In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.

Section 10.9 No Partnership. Nothing in this Agreement shall be deemed in any way or for any purpose to constitute any party a partner of any other party to this Agreement in the conduct of any business or otherwise or a member of a joint venture or joint enterprise with any other party to this Agreement. The parties hereto are independent contractors and acknowledge that neither has the authority to speak for or bind the other in any manner of commitment.

Section 10.1 0 Time of Essence. Time shall be of the essence for all purposes of this Agreement.

Section 10.1 1 Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original.

Section 10.1 2 Prior Agreements Superseded. This Agreement supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter.

Section 10.1 3 Law. This Agreement shall be construed under and in accordance with the laws of the Province of Ontario and Canada applicable therein.

Section 10.1 4 Confidentiality. Unless subject to the Municipal Freedom of Information Act or unless acting within mutually agreed-upon public communications plans contemplated under Subsection 2.2(e)(2), each party agrees to treat as confidential the terms of this Agreement together with all information concerning the business or affairs of the other or its Affiliates which may come into its possession during the performance of its obligations or rights hereunder, excluding any information that (a) is at the time of disclosure or becomes after such disclosure publicly available without breach

17

of this Agreement or any other confidentiality obligation of the party in receipt thereof or its Representatives (as defined below) or others to whom it is entitled to disclose in accordance herewith, and through no act or omission of it or its Representatives or any others to whom it is entitled to disclose in accordance herewith, (b) was demonstrably in the possession of party in receipt thereof prior to receiving it from the other or its Affiliate and is not known by the recipient to be the subject of any obligation of confidence of any kind, (c) the recipient can demonstrate was developed by it independently and without use of or reference to the information of the other party or its Affiliates, or (d) the recipient receives in good faith without an obligation of confidence of any kind from a third party who is under no confidentiality obligation to the other (collectively, the “Confidential Information”). Each party agrees to (a) hold in strict confidence all Confidential Information that comes into its possession, (b) use the Confidential Information solely to perform its obligations or to exercise its rights under this Agreement, and (c) not to transfer, display, convey or otherwise disclose or make available all or any part of such Confidential Information to any person or entity other than to its governors, directors, officers, employees and Owners who have a bona fide need to know such Confidential Information to fulfill obligations hereunder and who are bound by confidentiality obligations at least as restrictive as the terms of this Agreement (“Representatives”). The handling and treatment of such Confidential Information by the Representatives in accordance with this Agreement is the full responsibility of the party in receipt of such Confidential Information. Any act or omission of any Representative which, if done (or not done) by the party, would constitute a breach of this Agreement by the party, shall constitute a breach by the party. A party shall not use (except as expressly provided in this Agreement) or disclose Confidential Information that comes into its possession without the prior written consent of the other party. Without limiting the foregoing, each party shall use at least the same degree of care to protect the other party’s Confidential Information as it uses to protect its own confidential information of like nature, but in no circumstances less than reasonable care. Notwithstanding anything to the contrary in this Section 10.1 4, a party shall be permitted to disclose Confidential Information where required to do so by law; provided, that prompt notice of such disclosure obligation shall have been given to party to whom the Confidential Information relates prior to the disclosure so that it is afforded the opportunity to seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained or compliance is waived, the entity compelled by law to disclose shall furnish only that portion of the Confidential Information in respect of which it is advised by written opinion of legal counsel that it is required to disclose; and the Sponsor and the Owner are permitted to publicize the existence of this Agreement in connection with their business activities subject to Section 2.2(e).

10.1 5 Insurance. The Sponsor will carry and maintain commercial general liability insurance in an amount of no less than five-million dollars ($5,000,000) per occurrence to which the Owner shall be added as an additional insured, which shall be primary, noncontributory with, and not excess of, any insurance available to the Owner and which shall contain a waiver by the insurer of any rights of subrogation or indemnity or any other claim as against the Owner, a severability of interestkross-liability clause and an undertaking by the insurer that it shall provide Owner with thirty (30) days written notice of any intention to cancel the insurance except in the case of non-payment in which case it

18

shall provide Owner with fifteen (1 5) days written notice of any intention to cancel as a result thereof.

Section 10.1 6 Force Maieure. Neither party shall be liable for a failure or delay in the performance of its obligations pursuant to this Agreement; provided that such failure or delay (a) could not have been prevented by reasonable precautions; (b) cannot reasonably be circumvented by the non-performing party through the use of alternate sources, work around plans or other means; and (c) such failure or delay is caused by fire, flood, earthquake, elements of nature or acts of God, war, riots, civil disorders, rebellions, or any other similar causes beyond the reasonable control of such party (each, a "Force Majeure Event"). Upon the occurrence of a Force Majeure Event and so long as the non-performing party is using commercially reasonable means to recommence performance, the non-performing party shall be excused from performance for as long as the Force Majeure Event continues and shall as soon as practicable notify the other party of any actual or anticipated delay or impact. If the Force Majeure Event continues for ninety (90) days or more, the party who is not relying on the Force Majeure Event to justify its non-performance or to require performance of the other party shall be entitled to terminate the Agreement by giving written notice to the non-performing party with such termination to be effective on the date indicated in such notice. For greater clarity, the parties acknowledge and agree that an action or omission by a permitted subcontractor or Affiliate of a party shall not constitute a Force Majeure Event.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date and year first written above.

The City of Kingston

By: Name: Title:

By: Name: Title:

xXXXX Company

By: Name: Title:

19

CITY OF KINGSTON

REPORT TO COUNCIL

~~

Commissioner Beach, Sustainability & Growth


Commissioner Hunt, Finance & Corporate Performance

Commissioner Leger, Corporate Services


I Report No.: 08-145 I

J J

r/

if d

TO: Mayor and Council

FROM:

RESOURCE STAFF: Same

Desiree Kennedy, Director of Financial Services / City Treasurer


SUBJECT: 4th Quarter Operating Budget Report for 2007

EXECUTIVE SUMMARY: This report is to provide council with information on the financial results of the City of Kingston for the fiscal year 2007. The attachments include the year-end financial schedules, ready for audit as prepared by the finance department.

RECOMMENDATION:


That council receive the 2007 4th quarter operating budget status report. That the surplus generated from municipal operations in the amount of $1,041 ,I 65 be allocated to the Working Fund Reserve in accordance with policy on surplus distribution. That the surplus generated from the municipal utilities operations in the amount of $2,475,096 be allocated as follows:

a. $676,560 to the Water Capital Reserve Funds b. $41 4,540 to the Wastewater Capital Reserve Funds c. $1,301,912 to the Gas Capital Reserve Fund d. $82,084 to the Gas Appliance Reserve Fund ._ - . ~

1 ORIGINAL SIGNED BY CHIEF ADMINISTRATIVE OFFICER I Gerard Hunt, Interim Chief Administrative Officer

~ ~ ~~


46


-Page 2 -

Report No.: 08-145

OPTIONS/DISCUSSION: The financial information provided in this report is derived from the financial accounting records of the corporation as at December 31,2007. The report reflects 2007 actual revenue and expenditure information together with the approved operating budget for the year 2007. Three schedules are attached, reported by group and summarized by department. Agency transfers and municipal utilities are summarized as well. Schedule A reflects the net operating information (revenues less expenditures). Schedules A-1 and A-2 reflect gross revenues and gross expenditures respectively. In addition, schedule B is provided reflecting a continuity summary of the reserve fund for building permit fees in accordance with the requirement for annual reporting in Bill 124. During the 2008 budget deliberations, council received budget and actual year-to-date variance information as part of the budget documentation provided. At that time, departments had the opportunity to present information on the explanation of variances and address specific questions from members of council. The budget for 2008 has been developed recognizing the positive and negative variances from 2007 as referenced in this report. A. General Municipal Operations Schedule A, attached to this report, reflects a summary of the 2007 net departmental surpluses or (deficits). These amounts are summarized by group and department. The following information provides council with a brief explanation of the major items:

1.

ii.

iii.

Mayor & Council and the Office of the CAO These offices ended the year with a combined net surplus of approximately $3K resulting from under- expenditures in most areas. Corporate Services This group experienced a net surplus of approximately $663K or 7.5% on a budget of approximately $8.8M primarily as a result of:

- Net surplus in the clerk's department of $142K, due mainly to staff vacancies and reduced material and supply related expenditures.

Net surplus in legal services of $445K, due mainly to higher provincial offenses revenues of approximately $500K and net of County share. Net surplus in corporate assets of $69K. Corporate assets include arena and marina operations, information services, properties and fleet.

-

-

Public Works and Emergency Services This group experienced a net deficit of approximately $1.4M or 3.1% on a net budget of $47M primarily as a result of:

- Net deficit in public works of $1.3M primarily in winter control $670K, road maintenance $420K and sports fields and outdoor skating rinks $140K, as a result of efforts to meet maintenance and usage demands. Winter control expenditures are difficult to predict and the unusual conditions in late November and December of 2007 used up anticipated surplus. . Road maintenance activities attempted to meet needs and demands of deteriorating road and street network. Heavily used Sports Fields are under stress and require extra maintenance to hold their condition and meet user groups expectations. Outdoor Rinks are a high demand service and additional effort was made to try to meet those demands, through a long January to March outdoor rink season. Net deficit in fire of $1.2M, primarily as a result of overtime costs due to sick time of $640K, recognition pay awarded as part of the new labour contract of $200K and related payroll benefits of $250K. Net surplus in solid waste of $555K, including increased revenues from the sale of recyclable materials and under expenditures in program budgets.

-

-

4 7

COUNCIL MEETING1 1 0 h '08 REPORT TO COUNCIL

May 6,2008 -Page 3 -

Report No.: 08-145

iv.

V.

vi.

vii.

viii.

ix.

- Net surplus in transportation of $350K, made up of net surpluses in transit, airport and traffic management, as a result of a variety of under expenditures in staffing and other operating costs, totaling $360K, lower transit revenues of approximately $60K and higher airport revenues of approximately $50K. Surplus monies in parking resulted in an additional transfer to the reserve fund of $423K, primarily as a result of lower parking enforcement costs and additional revenues.

-

Community Development Services This group experienced a net surplus of approximately $1.8M, or x 5.4%, on a net budget of $33.1 M primarily as a result of:

- Net surplus in building and licensing of $336K, primarily due to lower staffing levels and related costs. Building permit fees were $3.6M in 2007, just over $1 M higher than budget. This was offset by a corresponding entry to move the surplus revenue to the BRRAG Stabilization Reserve Fund in accordance with Bill 124 requirements as detailed in Schedule B attached. Net surplus in community and family services of $1.6MI made up of unanticipated additional Ontario Municipal Partnership Fund grant revenues of $850K, with the remainder representing other one-time recoveries and reimbursements and under-expenditures in program delivery costs. The revenues of the community and family services department are very much tied to expenditure levels for Social Services, Housing and Children's Services wherein subsidization is based on expenditure levels. As a result, a macro revenue analysis can only be interpreted by taking expenditure levels into consideration. Net deficit in the Rideaucrest operation of $230K, made up of primarily of additional nursing costs of $450K related to salaries, overtime and labour relations costs, offset by an increase in provincial subsidy of $21 OK. Rideaucrest continues to work through recommendations from the operations review.

-

-

Growth and Sustainability

This group experienced a net surplus of approximately $174K or 7.4% on a net budget of $2.4M. This amount is primarily made up of under expenditures due to the nature of activities undertaken. Within this group, Strategy, Sustainability and Communication were under budget by approximately $225K including under- expenditures related to Bell Island Landfill of $94K and Environmental Services salaries and wages of approximately $1 OOK. Finance and Corporate Performance Services

This group experienced a net surplus of $1 45K or 3.6% on a budget of $4M. The net surplus resulted from under expenditures, primarily in salaries and wages, as a result of unfilled positions for a portion of the year. Fiscal Services The fiscal services budget shows a net surplus of just over $1.2M representing higher than budgeted investment and bank interest income as a result of higher than anticipated interest rates. Fiscal services is used as a flow through mechanism to record any unanticipated provincial or federal monies that are received and subsequently transferred to the applicable reserves, reserve funds or capital funds. Taxation Revenue The taxation revenue budget shows a net deficit of just over $1.5M consisting primarily of $830K of allowance to estimate the potential risk of not receiving expected federal payments-in-lieu, with the balance primarily due to larger than anticipated tax write-offs and assessment reductions/adjustments during the year. Agencies and Boards The surpluses/deficits of Kingston Police Services and Kingston Frontenac Public Library are consolidated as part of the overall municipal surplus and offset prior year deficits incurred by these boards. In 2007, Kingston Police Services ended the year with a deficit of approximately $299K primarily due to the necessity to record

4 8


-Page 4 -

Report No.: 08-145

~~~~~ ~ ~

estimates for compensation related accruals. Kingston Frontenac Public Library ended the year with a deficit of approximately $35K. Transfers to other agencies for 2007 reflect a net surplus of approximately $320K. Of this amount, transfers to the County of Frontenac for Land Ambulance services were under budget by approximately $126K and transfers for Fairmount Home were under budget by approximately $168K. Actual costs of these services are reconciled annually with the County of Frontenac. These 2007 surpluses reflect adjustments related to the 2006 year end reconciliation. At this time, the county has not confirmed their 2007 year-end position with the city. Once known, the adjustments will be reflected in the 2008 financial records.

B. Allocation of Annual Municipal Surplus In accordance with the Working Fund Reserve policy, the net surplus shall be transferred to the Working Fund Reserve. Recommendation 2 b provides for this authorization.

C. Municipal Operations Manaqed bv Utilities Kinqston The operations of these municipal utilities are funded entirely by rate revenues based on established charges for volume consumption. Depending on the nature of the usage, often impacted by weather, surplus/deficits will result. As these operations are capital intensive, it is appropriate practice to allocate year end amounts to respective capital reserve funds. Excess funds will be factored into future capital budget financing and will allow additional infrastructure work or reduced debt issuance. i. Water Operations

Water operations resulted in an operating surplus of $676K for 2007 and it is recommended that the surplus be allocated to the water reserve funds.

ii. Wastewater Operations Wastewater operations resulted in an operating surplus of $414K for 2007 and it is recommended that the surplus be allocated to the wastewater reserve funds.

Gas operations resulted in an operating surplus of $l,384K for 2007 and it is recommended that the surplus be allocated to the gas capital reserve fund in the amount of $l,302K and the gas appliance capital reserve fund in the amount of $82K.

iii. Gas Operations

Audited financial statements for the year ended December 31,2007 for the operations of 1425445 Ontario Limited (operating as Utilities Kingston) and for Kingston Electricity Distribution Limited have been prepared by Utilities Kingston management, presented and approved by their respective Boards of Directors and presented to Council at the respective shareholders’ meetings.

D. Bill 124 - Ontario Buildinq Code Act Bill 124 requires that the municipality publish an Annual Report on building fees in accordance with Section 7(4) of the Building Code Act. This report must be published within three months of the year end, and must be made available to anyone seeking this information.

The Building Code Act requires that building permit fees not exceed the cost of providing the service and that surplus fees be placed in a permit “Stabilization Reserve Fund” to ensure that a municipality does not suffer any negative financial impacts that would otherwise occur during slow times in the often volatile construction industry. This would also ensure that a municipality is able to retain the resources necessary to handle subsequent building booms. The Report, reflected as Schedule B, was made available on March 31,2008.

EXISTING POLICY/BY LAW: Council receives the 4th quarter report and the audited financial statements on an annual basis.

49

REPORT TO COUNCIL Report No.: 08-145 May 6,2008

-Page 5 -

NOTICE PROVISIONS: Not applicable

ACCESSIBILITY CONSIDERATIONS: Not applicable


Allocations to reserve and reserve funds are in accordance with council approved policy and as approved by annual budget allocations or budget amendments approved by council.

CONTACTS : Desiree Kennedy, Director of Financial Services I City Treasurer Gerard Hunt, Interim Chief Administrative Officer

Ext. 2220 Ext. 2205

OTHER CITY OF KINGSTON STAFF CONSULTED: Cynthia Beach, Commissioner of Sustainability and Growth Lance Thurston, Commissioner of Community Development Services Denis Leger, Commissioner of Corporate Services Jim Keech, President and CEO, Utilities Kingston

EXHl BITS AlTACH ED: Schedule A - 2007 Net Operating Report Schedule A-1 - 2007 Gross Revenue - Operating Fund - Municipal Schedule A-2 - 2007 Gross Expenditure -Operating Fund - Municipal Schedule B - 2007 Report on Building Fees

5 0

Report 08-145 Schedule A

CITY OF KINGSTON Council Report

Net Operating Report Operating Fund - Municipal

For the year ended December 31,2007

Variance =. MuniciDal ODerations

Mayor 8 Council

CAO Office

Corporate Services Commissioner's Office Clerk's Office Corporate Assets Legal Services Total Corporate Services

Public Works 8 Emergency Services Commissioner's Office Engineering Fire 8 Emergency Management Parking Public Works Solid Waste Transportation Total Public Works 8 Emergency Services

Community Development Services Commissioner's Office Building 8 Licensing Community and Family Services Culture 8 Recreation Planning 8 Development Long Term Care-Rideaucrest Total Community Development Services

617,087

358,692

616,509

362,831

578

(4.139)

231,137 1,285,044 6,232,595

379,727 8,128,503

238,425 1,426,927 6,301,344

824,584 8,791,280

(7,288) (141,883) (68,749)

(444,857) (662,777)

113,941 1,890,871

19,567,767 0

14.580.535

125,720 2,049,274

18,395,677 0

13.226.714

(1 1,779) (1 58,402)

1,172,090 (0)

1,353,821 (555,734) (347,289)

1,452,706

. . 5,395,122 7,297,261

48,845,498

. . 5,950,857 7,644,550

47,392,792

248,398 (116,039)

22,057,816 2,897,379 1,067,121

(5.71 1) (336,208)

(1,646,628) (34,905) 19.566

254,109 220,169

23,704,445 2,932,284 1,047,555 4,941,963

33,100,525 5,171,886

31,326,561 229,923

(1,773,964)

Growth 8 Sustainability Commissioner's Office Growth 8 Initiatives Strategy,Sustainability 8 Communication Total Growth 8 Sustainability

Finance 8 Corporate Performance Commissioner's Office Financial Services Organizational Effectiveness Total Finance 8 Corporate Performance

Total All Departments

Fiscal Services

Taxation Revenue Total

Agency Transfers

Total Municipal Operations

(19,801) 70.401

411,607 603,294

1 ,I 75,224 2,190,126

431,408 532,893

1,399,884 2,364,185

(224,660) (174,060)

239,100 1.217.996

232,500 1.345.934

6,600 (127,938) (23,941)

(145,280)

(1,306,936)

. . 2,420,695 3,999,129

2,396,753 3,853,848

95,320,315

11,108,568

96,627,251

12,376,118 (1,267,550)

(155,079,709) (48,650,827)

(156,634,820) (47,631,451)

1,555,111 (1,019,376)

47,285,771 47,606,451

(25,000)

(320,680)

(1,340,056) (1,365,056)

Municipal Utilities Water (676,560)

(414.540) (676,560) (414,540)

(1,301,912) (82,084)

(2,475,096)

Wastewater Gas Gas HWT Total Municipal Utilities

Boards Police Library Total Boards

Downtown Business Assoc.

Net Operating

(1:3011912) (82,084)

(2,475,096)

298,891 35,046

333,937

25,000

298,891 35,046

333,937

(0) 25,000

(3,481,215) 0 (3,481,215)

51

ReDortO8-145 COUNCIL MEETING1 1 b!AY 0 6 '08

Schedule A-1


Gross Revenue - Operating Fund - Municipal For the year ended December 31,2007

Actuals 5 Year to Date Variance =

Municipal Operations

Mayor & Council

CAO Office

Corporate Services Commissioneh Office Clerk's Office Corporate Assets Legal Services Total Corporate Services

Public Works 8 Emergency Services Commissionel's Office Engineering Fire & Emergency Management Parking Public Works Solid Waste Transportation Total Public Works & Emergency Services

Community Development Services Commissionel's Office Building & Licensing Community and Family Services Culture & Recreation Planning & Development Long Term Care-Rideaucrest Total Community Development Services

Growth & Sustainability Commissioneh Office Growth & Initiatives Strategy,Sustainability & Communication Total Growth 8 Sustainability

Finance 8 Corporate Performance Commissioner's Office Financial Services Organizational Effectiveness Total Finance 8 Corporate Performance


Fiscal Services

(19,650)

(1 5,000)

(18,037)

(15,000)

(1,613)

(1 5,637) (223,279)

(7,517,396)

(15,637) (212,934)

(6,575,077)

0 (1 0,345)

(942.319) (1,832,447) (8,636,094)

. . (51 8,680i

(1,471,345) (2,351,127)

(1 0,107,439)

(243,408) (1 44,759)

(4,793,199) (688,887)

(3,032,716)

(59,123) (41,314)

(1 35,479) 166,815

(490,821)

(302,531) (186,073)

(4,928,678) (522,072)

(3;523,537) (7,686,617)

(1 7,149,507) (7,698,809)

(16,601,778) 12,192

(547,730)

(9,730) (4,491,026)

(50,644,125) (1,314,128)

(459,346)

(9,730) (1,052,426) (1,719,139)

(76,779) 54.754

(3,438,600) (48,924,986)

(1,237,349) (514,100)

(81824,355) (62,939,390)

(9,051,9611 (65,970,315)

(227.6061 (3,030,926)

(27,001) f110.000~ 82,999 (9,884) 73,116

. . (65,sooj

(175,800) (75,684)

(102,684)

(12,000) (805.678)

(12.000) 0 (35,753) (769,925)

(995,638) (1,777,563)

. . (985,949)

(1,803,627) 9,689

(26,064)

(95,168,223) (90,163,662) (5,004,561)

(1 4,103,353)

(52,490) (19,160,404)

0

(1 6,476,030) (2,372,677)


(158,777,310) (270,421,563)

(1 58,724,820) (251,261,159)

Agency Transfers


Municipal Utilities Water Wastewater Gas Gas HWT Total Municipal Utilities

(190,179)

(270,611,7421

(190,179)

(251,451,338) (19,160,404)

(1 2,118,004) (18,936,554) (57,950,420)

(318,751) (560,072)

27.655.531

(1 2,436,755) (19,496,626) (30,294,889) (1,355,254)

(63,583,524) (1,224,000)

(90,228,978) (131,254)

26,645,454


Downtown Business Assoc.

Gross Revenue

(26,317,198) (26.085.391) (231,807) . (6,075,361 j (32,392,560)

. . . , (5,983,402)

(32,068,793) (91,960)

(323,767)

(998,203) (998,203)

5 2 (367,586,029) (374,747,311) 7,161,283

COUNCIL MEETING! 1 M A Y r) 6 '08 Report 08-145 Schedule A-2


Gross Expenditures - Operating Fund - Municipal For the year ended December 31,2007

Variance = Municipal Operations

Mayor 8 Council

CAO Office

Corporate Services Commissioner's Office Clerk's Office Corporate Assets Legal Services Total Corporate Services

Public Works 8 Emergency Services Commissioneh Office Engineering Fire & Emergency Management Parking Public Works Solid Waste Transportation Total Public Works 8 Emergency Services

Community Development Services Cornmissioner's Office Building & Licensing Community and Family Services Culture 8 Recreation Planning 8 Development Long Term Care-Rideaucrest Total Community Development Services

Growth 8 Sustainability Commissioneh Office Growth & Initiatives StrategySustainability & Communication Total Growth 8 Sustainability

Finance 8 Corporate Performance Commissionets Office Financial Services Organizational Effectiveness Total Finance 8 Corporate Performance


Fiscal Services


Agency Transfers


Municipal Utilities Water Wastewater Gas Gas HWT Total Municipal Utilities


Downtown Business Pssoc.

Gross Expenditure

636.737 634,546

377,831

2,191

(4,139) 373,692

246,774 1,508,323

13,749,991

254,062 1,639,861

12,876.42 1

(7,288) (131,538) 873,570

2,730,854 18,235,942

2,657,031 17,427,375

73.823 808,567

125,720 2,292,682

18,540,436 4,793,199

13,915,601 8,983,573

(11,779) (99,279)

1,213,404 135,478

1,187,005 (64,914)

113,941 2,193,402

19,753,841 4,928.678

15,102,606 8,918,659

14,983,878 65,995,005

15,343,359 63,994,570

(359,481) 2,000,436

258,128 4,374,987

72,701,941 4,211,507 1,526,466

254,109 3,658,769

72,629,430 4,169,633 1,561,655

4,019 716,218 72,511 41,874

(35,189) 457,529'

1,256,961 14,223,847 97,296,876

96,039,915 13,766,318

41 1,607 630,295

431,408 642.893

(19,801) (12,598)

(214,776) (247,175)

1,250,908 2,292,810

1,465,684 2,539,985

251,100 2.023.674

244,500 6,600 (92,185) (33,6311

(1 19,216)

. . 3,382,702 5,657,476

190,488,538 186,790,913

14,748,795

2,090,000 203,629,708

47,796,630

3,697,625

12,835,802

1,607,601 18,141,028

(320,680)

17,820,349

21,584,597

3,697,601 221,770.737

47,475,950

269,246,687 251,426,338

12,118,004 18,936,554 57,950,420

(357,809) 145,532

(28.957.444)

11,760,195 19,082,086 28,992,976

1,273,170 61,108,428

' 49,170' (29,120,550)

1,224,000 90,228,978

26,616,089 26.085.391 530.698 . .

5,983,402 32,068,793

6,110,408 32,726,497

127,006 657,704

1,023,203 1,023,203

53 364,104,814 374,747,311 (10,642,498)

COUNCIL MEET!MGI 1 6 '08

'Report 08-1 45 Schedule B

2007 Report on Buildinq Fees (In accordance with the Building Code Act (BCA) , S. 0. 1992, c. 23 Section 7 (4))

(A) FEES Revenues Less :

1) Direct Costs - Administration and enforcement 2) Direct Costs - Other and related service costs 3) Indirect Costs - For support and overhead 4) Transfer to Permit Stabilization Reserve Fund

$ 3,589,838

( 1,570,055) ( 260,609) ( 41 4,174)

1,345,000)

Net Cost for Building Inspection Enforcement in 2007 u

(B) PERMIT STABILIZATION RESERVE FUND

(Per 2006 Ontario Building Code Regulations, Division C, Part 1, Section 1.9.1.1. (1) (d))

Opening balance January 1,2007 Add: 2007 transfer from fees Interest earned on fund Less: Funding for capital purposes

Ending balance December 31 , 2007

$ 2,277,818 1,345,000

123,670 (1 93,572)

uiEEuB


CITY OF KINGSTON

REPORT TO COUNCIL -

I ReDort No.: 08-158 I

TO: Mayor and Council

FROM: Gerard Hunt, Interim CAO

RESOURCE STAFF: Jeff Garrah, CEO, KEDCO Jeff Gouveia, Family Physician Recruiter, KEDCO


SUB J ECT: Family Physician Recruitment Support Package

EXECUTIVE SUMMARY: The purpose of this report is to report to council on two passed motions from the November 20, 2007 council meeting that address the shortage of family physicians in Kingston. Motion #I asked city and KEDCO staff to implement a plan to quantify the number of Citizens without a family physician and to take into account surveys from Statistics Canada, Southeast LHlN and other available sources. Motion #2 asked city and KEDCO staff to research and report to council on a family physician recruitment suppod plan that would make Kingston more competitive with other communities.

RECOMMENDATION:

1. That council approve the following family physician recruitment support package:

a. $25,000 per new, full-time, established, family physician to Kingston to help defray the costs of relocation and establishing a practice.

b. $ 75,000 (cash flowed or amortized over 5 years) per new, full-time, unestablished, family physician to Kingston to help defray the costs of relocation and establishing a practice, subject to entering into a 5 year contract, including repayment on a proportionate basis, should the term not be completed

2. Any agreements arising from this program must be satisfactory to the Director of Legal Services and the Commissioner of Finance & Corporate Performance.

3. That the program be established for up to 3 years with the objective of attracting sufficient physicians to close the identified gaps/shortages estimated at 25-30 physicians.

4. That staff report back no later than March 1 , 2009 on the effectiveness of this program with recommendations for the future and development of the program.

55

COUNCIL MEETPJG1 ’J 0 h ’08 Report No.: 08-158 REPORT TO COUNCIL

May 6,2008 -Page 2 -

Commissioner Hunt, Finance & Corporate Performance Commissioner Leger, Corporate Services Jim Keech, President, Utilities Kingston


/ NIR NIR

I ORIGINAL SIGNED BY CHIEF ADMINISTRATIVE OFFICER I I I Gerard Hunt, Interim Chief Administrative Officer


1 Commissioner Beach, Sustainabilitv & Growth I NIR I I Commissioner Thurston, Community Development Services I NIR I

OPTIONSIDISCUSSION:

The purpose of this report is to report to council on two passed motions from the November 20, 2007 council meeting that address the shortage of family physicians in Kingston. Motion #1 asked city and KEDCO staff to implement a plan to quantify the number of citizens without a family physician and to take into account surveys from Statistics Canada, Southeast LHlN and other available sources.

(1) Moved by Councillor Hutchison Seconded by Councillor Garrison

WHEREAS the City of Kingston has potentially 20,000 citizens without the services of a family doctor; AND WHEREAS that, while the lack of family doctors in Kingston is a serious community problem, the number of 20,000 is based on anecdotal evidence or inferred from studies conducted for other purposes; AND WHEREAS the inability to accurately quantify the number of citizens without a family doctor is impeding the City’s and KEDCO’s ability to plan and manage the recruitment of family doctors since having an accurate baseline doctor- patient ratio for Kingston would help the process of Kingston seeking designation as an underserviced area with the Ministry of Health, enable the accurate projection of the number of physicians needed, aid in formulating the recruitment- marketing plan needed to alleviate the problem, and create the basis for information tools to measure the success of our recruitment process;

BE IT RESOLVED THAT the issue of implementing a plan to quantify the number of citizens without a family doctor be referred to City and KEDCO staff for a report to Council for consideration for the City’s andlor KEDCO’s 2008 operating budgets;

AND BE IT FURTHER RESOLVED THAT, as part of the report, the city and KEDCO take into account surveys to done by Statistics Canada, the South East LHlN and any other readily available sources that will utilize the appropriate methodology, error margin and geographical reference to the City of Kingston to determine the number of people without a family doctor, and that the least costly survey that meets these criteria be preferred.

CARRIED AS AMENDED Pursuant to above motion #1, we can now confirm that a Statistics Canada survey, Kingston Survey of Doctor Accessibility, was conducted in November 2007. This survey used very sound and stringent methodology and is an appropriate tool to satisfy council’s request to quantify the number of citizens in Kingston without a family physician. From the sampling of the target population in the survey, it is estimated that 13,360 residents do not have a family physician (14.8 per cent of respondents) while 76,913 residents have access to a family physician (85.2 per cent of respondents). This sampling represents a population of 90,270 residents aged 18 years and older (77 per cent of the Statistics Canada 2006 City of Kingston total censure population of 1 17,207). 56

COUNCIL MEETING1 J MAY I! 6 ’08 REPORT TO COUNCIL Report No.: 08-158

May 6,2008 -Page 3 -

Motion #2 asked city and KEDCO staff to research and report to council on a family physician recruitment support plan that would make Kingston more competitive with other communities.

(2) Moved by Councillor Hutchison Seconded by Councillor Matheson

WHEREAS there is a national and international competition between communities for recruiting family doctors; AND WHEREAS the City of Kingston is therefore in direct competition with other communities in recruiting family doctors;

AND WHEREAS in the KEDCO experience, other communities are offering a mix of cash or equivalent supports including for medical school educational expenses, salary top-ups, subsidized turn-key clinic space and equipment, paid housing expenses, moving expenses and dentaVmedical benefits; AND WHEREAS KEDCO finds that the current lack of cash or equivalent supports available to offer to prospective family doctors is seriously undermining the City’s ability to attract new family doctors;

THEREFORE BE IT RESOLVED that City staff in conjunction with KEDCO research and report to Council on a family doctor recruitment support plan that would effectively make Kingston competitive in this area for consideration for the City’s andlor KEDCO’s 2008 operating budgets.

CARRIED (8:l)

Pursuant to above motion #2, we can now confirm that work has been completed to research the need for a support package in order for Kingston to be more competitive in its family physician recruitment efforts. Further, with recent approval of a budget estimate of $200K for the 2008 year we are now in a position to bring forward this report.

Although six new family physicians have been recruited to Kingston since the beginning of KEDCO’s Family Physician Recruitment and Retention program in June 2006, a significant number of family physicians have retired from Kingston’s aging physician workforce resulting in little improvement in the shortage of family physicians.

The initial success of recruitment efforts are unsustainable, relying heavily on the limited number of desirable practice opportunities available within Kingston’s three family health teams and the city’s support of these teams. In addition, Kingston has recently been denied designation as an underserviced area by the Ministry of Health and Long-Term Care (Ministry). The resulting lack of Ministry financial supports and the elimination of International Medical Graduates as prospects leave Kingston at a significant disadvantage when competing with other communities offering substantial underserviced area and municipal financial supports.

In addition to the experience of Kingston’s Family Physician Recruitment Initiative Program, a thorough review of other communities’ efforts to attract family physicians weighed against Kingston’s sustainable competitive advantages shows that Kingston is lagging behind in its ability to attract additional family physicians due to a lack of comparable financial supports. For example, these communities currently offer the following recruitment investment:

Belleville $1 50,000 $60,000 $55,000 $265,000

Hastings County $150,000 $55,000 $205,000

Greater Napanee $60,000 $55,000 $1 15,000

Quinte West $1 00,000 $60,000 $55,000 $215,000

Brockville TBD $40,000 $30,000 $55;000 $1 25,000 *Designated Underserviced Area Incentives

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REPORT TO COUNCIL Report No.: 08-158 May 6,2008

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Recently, a family physician who had just completed training at Queen’s University had committed to starting a practice in Kingston. Upon further consideration, the new graduate decided instead to move to another municipality after being offered $265,000 in total support.

A successful family physician recruitment and retention program requires a multifaceted approach. Strategies, as outlined in KEDCO’s 2008 Family Physician and Recruitment Strategic Plan (see Appendix A), must focus not only on recruitment but must address the retention of existing family physicians and maximizing their efficiency. Recruitment efforts have to be sensitive to existing family physicians. It is essential to have centralized coordination of stakeholders’ efforts and to address complex issues such as enhancing hospital privileges for family physicians. Engaging the city and the community, as partners, in addressing the shortage of family physicians is imperative.

A family physician recruitment support package offered for a 3 year period and reviewed annually should yield an estimated 30 new full-time family physicians to Kingston. Taking into consideration anticipated retirements this would substantially alleviate Kingston’s shortage of family physicians. The risks associated with implementing this program are minimal since money will only be spent on the program once Kingston is successful in attracting new family physicians to the community.

Family Physician Shortage in Kingston One million Ontarians, an estimated 20,000 in Kingston alone, do not have a family physician. Almost all of the family physicians in Kingston have closed their practices to new patients. This is a source of very real frustration for Kingstonians. The College of Physicians and Surgeons of Ontario field inquiries from thousands of people every month who are desperately searching for a family physician. Locally, the City of Kingston, Kingston and the Islands MPP, John Gerretsen, the Kingston Academy of Medicine and Council on Aging are similarly inundated with inquiries regarding physician availability.

Our evidence indicates that this problem will worsen. An aging patient population places greater demands on primary care and in fact Kingston already has 2 per cent more elderly residents than the provincial average. The average age of practicing family physicians has also increased to 51 years, with more than one-third of these physicians nearing retirement. In addition, younger family physicians are, on average, working fewer hours than their established counterparts. It is estimated that it takes approximately 1.3 new family physicians to replace every one retiring physician.

Reasons for Family Physician shortage in Kingston

There are various reasons why Kingston does not. have sufficient community family physicians, including: Reduction of Enrolment and Residency Positions: In the early 1990s medical school enrolment was cut by 10 per cent and family medicine residency positions were reduced.

Attraction of Specialist Positions: Fewer medical graduates are choosing family practice as their first choice. This percentage has been cut in half in the last decade. Family physician’s incomes have declined while specialist‘s incomes have increased. Many students fear the overworked, underpaid syndrome that seems to plague general practitioners. They are often enticed by the prestige and financial stability a specialty can offer. Billing Number Restrictions: In the mid-1990sI billing numbers, which are the mechanism by which family physicians are paid, were either only issued for practicing in designated underserviced areas or restricted for certain cities, including Kingston. These billing number restrictions meant that new family physicians practicing in Kingston were paid 20 per cent less than they would be paid if they were practicing in most other communities. This made it undesirable for new family physicians to practice in Kingston. Billing number restrictions were a major contributing factor for the loss of many family physicians to the United States. This restriction no longer applies but has had an historical impact. Burnout: Family physicians are suffering from burnout. There are some family physicians that are caring for over 2,000 patients in Kingston while the provincial standard is 1,380. Stressful long hours, lifestyle compromises, and compromised quality due to workload are taking their toll on our family physicians. Offers from other Kingston Institutions: Correctional Services, Queen’s University, CFB Kingston, and OHIP/Ministry all provide employment opportunities for Kingston’s family physicians rather than practicing in the community.

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Report No.: 08-158

= No Underserviced Area Designation: Kingston is one of the few remaining communities, regionally, not designated as an underserviced area by the Ministry. This puts Kingston at a significant disadvantage as the city does not receive the benefits of this designation including up to $55,000 ($1 10,000 in northern areas) of supports for new family physicians; reimbursement for physician and spouse visit travel expenses; and, invitation to attend the government sponsored recruitment tour in Ontario. In addition, the majority of International medical graduates completing their residency must practice in a designated underserviced area for 5 years in order to fulfill their return-of-service agreements with the Ministry. Aging Workforce: A significant number of family physicians retiring from Kingston’s aging physician workforce has led to a high rate of attrition.

. It should be noted that there have been recent steps by the Ontario government to reduce the shortage of family physicians including: increasing residency spots, new health care models, and enhanced incorporation rights for physicians. Although these changes are a welcomed move in the right direction, there remains much work to be done at a local level to protect Kingston’s physical and economic well-being.

Effects of family physician shortage in Kingston

Research shows that having a family physician results in better care for patients, particularly the elderly and the chronically ill, and a relationship with a family physician reduces the frequency that they are hospitalized and reduces costs to the entire health-care system. The shortage of family physicians poses a risk to our economic competitiveness since access to health care is a quality of life benchmark for businesses looking to locate or expand in Kingston. Not being able to get a family physician has been cited as a major concern for potential employees and as a result can lead to Kingston’s employers having difficulty attracting skilled personnel.

Other communities’ efforts to resolve family physician shortages

Due to the serious effects of having a lack of family physicians there is competition between communities to recruit and retain family physicians. Cash supports, salary top ups, subsidized turn-key clinic space, paid moving expenses, paid medicalldental benefits, subsidized housing, golf memberships, etc. are common. Many cities have hired full time family physician recruiters including: London, Hamilton and Peterborough. Strategies and supports vary widely from community to community. Efforts range from family physicians handling recruitment on a part-time basis to the creation of multi-million dollar community medical centres.

History of the solution

To address the shortage of family physicians the City of Kingston formed the Ad-Hoc Committee for the Recruitment, Retention, and Recognition of Family Physicians in August 2005. This ad-hoc committee quickly became a working group to identify strategies to address the shortage of family physicians. The input of a broad range of family physicians was sought by utilizing a session at the Queen’s Executive Decision Centre in December 2005 and a public meeting was held at City Hall on May 10,. 2006. At the regular meeting of Kingston City Council held on June 6, 2006 the final report of the ad-hoc committee was approved.

In June 2006, KEDCO hired a full-time family physician recruiter and prepared an action plan incorporating the city committee’s recommendations. Although a significant number of family physicians have retired over this time period, the recruitment of six family physicians has been announced.

The success of recruitment efforts has relied heavily on the desirable practice opportunities available within Kingston’s three family health teams and the city’s support of these teams. However, there are currently only four vacant positions left within the family health teams. In addition, Kingston has recently been denied undersewiced area status by the Ministry. The letter received from the Ministry citing reasons for the denial of Kingston’s application is attached to this report for your reference (see Appendix B). KEDCO, along with representatives from MPP John Gerretsen’s office, attended a meeting in Toronto with the Ministry on April 2, 2008. Although the results of a Statistics Canada survey conducted in Kingston in November 2007 concluded that 14.8% of respondents do not have a family physician (an estimated 17,347 Kingston residents), the Ministry is unwilling to reconsider its decision to deny Kingston underserviced area status. 59


-Page 6 -

Steps have been taken to engage the community in recruitment efforts in partnership with the city. The Community Foundation of Greater Kingston has agreed, in principle, to the creation of a family physician recruitment charitable contribution fund. However, the city remains at a significant disadvantage when competing with many other communities offering substantial underserviced area and municipal financial supports.

We need more family physicians in Kingston and we must retain the valued physicians we have now. Kingston has a pressing need to ensure that we have enough physicians to meet our community's primary health care needs. Our physical and economic well-being depends on it.

EXISTING POLlCYlBY LAW: Not applicable

NOTICE PROVISIONS: Not applicable

ACCESSIBILITY CONSIDERATIONS: Not applicable


The financial plan in support of this recommendation is summarized as follows. The goal of the program is to attract 10 physicians per year over 3 years. The following table reflects the cash flow requirements and the mix of established and unestablished physicians.

1. Recruit established (9 over 3 years)

2. Recruit unestablished* (cash flowed or amortized over 5 years)

................................................................................................................. ............................

(2008- 78$75K) (2009-7 8$75K)

.. ~. (201 0-7875K) ............................................................................................................

Budget Requirement

75,000 I 75,000 I ...........................................................................................................................

105,000 105,000

............. .......

$180,000 $285,000

.... 75,000 nla nla nla nla ......................................................................................................................................................................................................................................

105,000 105,000 105,000 nla nla 105,000 105,000 105,000 105,000 nla 105,000 105,000 105,000 105,000 105,000

$390,000 $315,000 $315.000 210.000 105,000 ...........................................................................................................................................................................................................

'Unestablished family physician is defined as not having had a family practice in Ontario in the last 3 years.

Program budget funding for 2008 has been established at $200,000. We recommend that unspent funds be carried to the following year as a continuous program. Based on the up take of the program, the annual budget requirement can be calculated for each upcoming year's annual budget. It should be noted that income taxation will be the responsibility of the recipient.

CONTACTS : Gerard Hunt, Interim CAO Jeff Garrah, CEO, KEDCO Jeff Gouveia, Family Physician Recruiter, KEDCO

OTHER CITY OF KINGSTON STAFF CONSULTED: Hal Linscott, Director of Legal Services, Alan McLeod, Senior Legal Counsel Desiree Kennedy, Director of Financial Services

546-4291 ext. 2205 544-2725 ext. 230 544-2725 ext. 232

546-4291 ext. 1296 546-4291 ext. 1237 546-4291 ext. 2220 G O


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COUNCIL MEETING1 1 Ay 0 4 '08 Report No.: 08-158

EXHIBITS ATTACH ED:

Appendix A - KEDCO 2008 Family Physician Recruitment and Retention Strategic Plan Appendix B - Ministry of Health and Long Term Care letter to KEDCO re: Underserviced Area Program Application

Report to Council 08-158 Appendix A

KEDCO K I N G STO N ECO N 0 M I C Development Corpora ti on

2008 Strategic Plan Family Physician Recruitment & Retention Strategic Thrust 2-8 Broad Economic Development: Business Attraction, Retention & Entrepreneurship Family Physician Recruitment and Retention

Objective:

To improve access to primary care in Kingston, through the recruitment and retention of family physicians, in order to maintainlimprove the health of Kingston’s citizens and economy.

Research shows that having a family doctor results in better care for patients, particularly the elderly and the chronically ill, and a relationship with a family physician reduces the frequency that they are hospitalized and reduces costs to the entire health-care system. The shortage of family physicians poses a risk to our economic competitiveness since access to health care is a quality of life benchmark for businesses looking to locate or expand in Kingston. Not being able to get a family doctor has been cited as a major concern for potential employees and as a result can lead to Kingston’s employers having difficulty attracting skilled personnel.

Strategies:

1. Full-time Family Physician Recruiter

Implement strategies and provide ongoing personalized approach to recruitment and retention efforts.

2. Statistical Survey to quantify shortage of family physicians

Determine the number of Kingstonians without a family doctor as a baseline and use the information for needs planning and tracking the results of strategies.

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COUNCIL MEETING! 1. FAY 0 6 ’08 Report to Council 08- 158

Appendix A

3. Family Doctor information database

Information for needs planning and tracking the results of strategies. Monitor relevant information (practice model, hours worked, number of patients, retirement plans, etc.)

4. Recruitment of Queen’s University Medical StudentsRamily Medicine Residents (events, presentations, group and individual meetings)

Queen’s University is Kingston’s most valuable resource of recruits. Attending and developing events to maintain a rapport with the Medical School, Family Medicine Interest Group, Family Medicine Department, medical students and family medicine residents is essential.

5. Lobby the Ministry of Health and Long-Term Care to allow International Medical Graduates to fulfill their 5 year Return of Service agreements by working in retirementAong-term care facilities in the Kingston area.

Kingston’s application to the Ministry of Health and Long-Term Care to be designated as an underserviced area for family physicians was unsuccessful. Approximately 40% of the family physicians graduating fiom Queen’s University, many of whom would like to practice in Kingston, are International Medical Graduates who are required to practice in a designated underserviced area. There is a critical lack of family doctors in Kingston’s retiremenvlong-term care facilities and both the retirement/long-term care administrators and International Medical Graduates feel this is a viable alternative.

6. Repatriate family doctors who are from or trained in Kingston (marketing, Kingston visits, etc.)

A connection to Kingston increases the odds they will choose to practice here.

7. Recruit family medicine residents/doctors from abroad (marketing, recruitment fairs, Kingston visits, etc.)

Family medicine residents are mobile, have not established permanent practices yet, and are looking for practice opportunities.

8. Assist recruit’s family to integrate into the community (spousal employment, schools, real estate, etc.)

9. HealthForceOntario Job Portal

Web-based community information and centralized inventory of permanent and locum health care practice opportunities available in Kingston.

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COUNCIL MEETING! I MAY 0 6 ’08 Report to Council 08-158

Appendix A

10. Encourage existing family doctors to establisWexpand facilities. Assist and facilitate expansion of Kingston’s 3 Family Health Teams

Provides desirable practice opportunities for which to recruit, retains physicians due to improved working conditions, incorporates a multidisciplinary team of allied health professionals, including nurse practitioners, to deliver primary care and improves family doctors efficiency allowing them to care for more patients.

1 1. Celebrate annual Family Physician Week

Provides recruitment opportunities and helps retain existing family physicians.

12. Seek Stakeholders support

Raises awareness of the issue and provides funding for other significant initiatives (recruitment support package, scholarships, etc.).

Strategies must focus not only on recruitment, but must address the retention of existing family physicians and maximizing their efficiency. Recruitment efforts have to be sensitive to existing family physicians. It is essential to have centralized coordination of stakeholder’s efforts and to address complex issues such as enhancing hospital privileges for family physicians. Engaging the City and the community, as partners, in addressing the shortage of family doctors is imperative.

3 6 4

COUNCIL MEETING1 1 MAY 0 6 ’08

Report to Council 08-1 58 Appendix B

, d

Ministry of Health and tong-Term Care

I’riinary tlculth Cac Iwrn I Jndemtvicr?d hma I’rogmrn 150 Cuhr Stmcr. Siiire 402 sItdhtlry ON ~ 3 r : ~ A Z

Ministere de la Sante et des Sains de longue d u r b @Ontario Equipc dc rcnouvcllcment des sniiis primain3 Ic l cpho~~~dlcp l io~ ic~ 705-264-7492 Pntgnmmc (its saviccs IIUX rdgionr insuflisament dtsscrvics r auni.td.copicui: 705-564-7393 159. NC Cchr. burmu 402 Sudbury ON 1’31: 6AS

January 2, 2008

Mr. Jeff Gouveia Family Physician Recruiter Kingston Economic Development Corporation 67 Brock Street Kingston ON K 7 t 1 R8

Dear Mr. Gouveia:

Thank you for submitting the request to designate the City of Kingston as underserviced for family physicians (FPs). I appreciate the time and effort you have devoted to this process

The primary focus of the Ministry’s Underserviced Area Program (UAP) is to assist communities in the province that have long-standing, unresolved difficulties securing the required number of physicians, and have significantly fewer health care professionals than are needed to ensure access to health care services. Based on our analysis of recruitment activity in your community, there is evidence indicating that the City of Kingston has been successful in recruiting several FPs. As a result, the City of Kingston does not meet the above mentioned criteria.

Furthermore, the Council of Faculties of Medicine recommended FP to population ratio of 1:1380 would suggest that Kingston requires 84.93 (or 85) family physicians, based on the 2006 Census population of 117,207 Since the data provided in your submission lists a fuli-time equivalency of 104 FPs, Kingston has an oversupply of FPs, and thus, does not meet the underserviced area designation status ,

Additionally, the UAP has carefully reviewed your designation request, within the context of overall Ministry initiatives that address accessibility to primary health care services, particularly the three Family Health Teams (FHTs) located in Kingston.

I would encourage you to continue working with our office to keep us apprised of physician recruitment and retention issues in the City of Kingston. Please contact Linda Marsh, Project Analyst at (705) 564-7478 or via e-mail at [email protected] should you wish to discuss this further.

. I2

6 5

Mr Jeff Gouveia Page 2 January 2, 2008

COUNCIL MEETrhG1 1 Y IY 9 h 'MI Report to Council 08-158

Appendix B

Again, thank you for your ongoing effort and dedication to improving access to health care services in the community of Kingston

Yours truly,

Michael B. Walker Manager (a), Underserviced Area Program

c: Linda Marsh, Project Analyst, MOH - Underserviced Area Program

6 6

CITY OF KINGSTON i c

A, REPORT TO COUNCIL m

I Report No.: 08-167 I TO:

FROM:

RESOURCE STAFF:

DATE OF MEETING:

SUBJECT:

Mayor and Council

Gerard Hunt, Interim Chief Administrative Officer

Carolyn Downs, City Clerk John Bolognone, Deputy City Clerk

May 6,2008

CITIZEN COMMITTEE TO REVIEW COUNCIL REMUNERATION

EXECUTIVE SUMMARY: On April 15, 2008, staff provided a report to Council recommending that a citizen committee to review council remuneration be struck to review future compensation for the Mayor and Members of Council. During the deliberations on this matter, Council approved an amended recommendation, which increased the Committee membership from seven to eight members with the inclusion of a representative from the organized labour union; specified that the former Member of Council to be included on the Committee would be a Member who was elected to Council after the elimination of the Board of Control (November 2000); and directed that staff report back with alternatives as to how to fill the Citizen Committee to Review Council Remuneration. Council further directed that staff, in the development of criteria that comparator municipalities must satisfy in order to be considered by the Committee, consider restricting the list of comparator municipalities to municipalities who utilize the standing committee system as their governance model and that has Councillors who are elected by districtslwards and are considered part-time.

In response to the aforementioned direction, staff are providing for Council’s consideration, four alternatives as to how to fill the Committee. Staff is recommending Alternative 1 as its preferred option. Staff is also providing comments on the criteria to be used by the Committee during their review. Staff is recommending that thecomparator municipalities include municipalities who utilize either the standing committee system or Committee of the Whole system as their governance model; are similar in size in terms of population; operate as a single tier municipality; and that has Councillors who are elected by districtslwards and are considered part-time.

RECOMMENDATION:

THAT Alternative 1, as outlined in below, be approved as the method to be used to fill the Citizen Committee to Review Council Remuneration:

Alternative 1 :

Staff will contact the business community (Downtown Business Improvement Area), the healthcare community (University Hospitals Kingston), the non-profit sector (The United Way), the educational community (Queen’s University, St. Lawrence College, and Royal Military College), and the organized labour

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REPORT TO COUNCIL. CouNcit M E E T I N G ~ 1 MAY 0 6 '08

Report NO.: 08-167 May 6,2008 - Page 2 -

community (Kingston and District Labour Council) and request that each sector submit the name of their representative and an alternate to serve on the Committee.

At the same time, staff will place an advertisement in the Kingston Whig Standard and on the City's website seeking two interested members of the community to sit on the Committee.

With regard to the inclusion of a former Council Member who was elected to Council after November 2000 on the Committee, staff confirms that the list of former Councillors would include George Beavis, Bill Campbell, John Clements, Rick Downes, Bittu George, Kevin George, Dave Meers, Beth Pater,. Floyd Patterson, George Stoparczyk, and George Sutherland. Staff will contact each former member individually to determine their interest and desire in participating on the Committee.

A meeting of the Nomination Advisory Committee will be called to consider the applications received from the community-at-large and former Member(s) of Council and to ratify the appointments of the various sector representatives on the Committee. Following their deliberations, the report of the Nomination Advisory Committee will be forwarded to Council for approval;

- and further - THAT the Citizen Committee to Review Council Remuneration mandate and terms of reference, as outlined below, be approved:

Mandate: To review the current compensation paid to the Mayor and Members of Council and establish the percentile group as Kingston's target pay position or an appropriate remuneration effective December 1,201 0.

Membership and Composition: Eight members, including one representative each from the business community, healthcare community, the non-profit sector, the educational community; the organized labour community, two representatives from the community-at-large, and a former Member of Council who was elected to Council after November 2000. All members are voting members. The Chair and Vice-Chair of the Committee are selected by the members at the first meeting.

Reporting Relationship: The Committee will report directly to Council.

Staff and other resources made available: The City Clerk or designate and the Director, Organizational Effectiveness or designate, will support the Committee as non-voting staff members acting in a staff resource capacity, assist and advise as required. The City Clerk's Office will provide administrative support including compiling and co-ordinating the distribution of agendas and minutes to, and on behalf of members, booking of rooms, research, and compilation of data, etc.

Start and finish date: The term of the Committee will commence January, 2009 and will expire upon the delivery of its final report; it is anticipated that this will not exceed June, 2009;

- and further -

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REPORT TO COUNCIL.

N/R

May 6,2008 - Page 3 -


Report No.: 08-167

N/R

THAT the criteria to be used by the Citizen Committee to Review Council Remuneration in determining the comparator group of municipalities include municipalities that:

utilize the Standing Committee or the Committee of the Whole model of governance; 0 are similar in size in terms of population;

operate as a single tier municipality; and has Councillors who are elected by districts/wards (the exception being Thunder Bay) and are considered part-time.


1 ORIGINAl SIGNED BY dHlEF ADMINISTRATIVE OFFICER I Gerard Hunt, Interim Chief Administrative Officer


I Commissioner Beach, Sustainability & Growth I N/R I Commissioner Hunt, Finance and Corporate Performance I N/R I

I Commissioner LeQer, corporate Services I N/R I

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Report No.: 08-167 REPORT TO COUNCIL. May 6,2008 - Page 4 -

OPTIONS/DISCUSSION: On April 15,2008, Council approved the following recommendation:

“THAT a Citizen Committee to Review Council Remuneration comprised of eight members, including one representative each from the business community, healthcare community, the non-profit sector, the educational community; the organized labour community, two representatives from the community-at-large, and a former Member of Council who was elected to Council after November 2000, be struck to review future compensation for the Mayor and Members of Council and to provide a report on the results of this review directly to Council for their consideration;

- and further - THAT the Citizen Committee to Review Council Remuneration be directed to meet in 2009 and every four years thereafter during the last year of Council’s term of office to ensure that the City’s pay position is maintained;

- and further - THAT staff be directed to place the necessary advertisement(s) and undertake the recruitment process to confirm the membership for the Citizen Committee to Review Council Remuneration;

- and further - THAT staff be directed to report to Council with alternatives as to how the Citizen Committee to Review Council Remuneration may be filled;

CARRIED AS AMENDED - and further -

THAT the list of comparator municipalities be restricted to municipalities who utilize the standing committee system as their governance model and that has Councillors who are elected by districts/wards and are considered part-time.

DEFERRED

Alternatives as to how the Citizen Committee to Review Council Remuneration mav be filled

With respect to alternatives as to how the Citizen Committee to Review Council Remuneration may be filled, staff is,providing the following options for consideration by Council:

Alternative 1 :

Staff would contact the business community (Downtown Business Improvement Area), the healthcare community (University Hospitals Kingston), the non-profit sector (The United Way), the educational community (Queen’s University, St. Lawrence College, and Royal Military College), and the organized labour community (Kingston and District Labour Council) and request that each sector submit the name of their representative and an alternate to serve on the Committee.

At the same time, staff would place an advertisement in the Kingston Whig Standard and on the City’s website seeking two interested members of the community to sit on the Committee.

With regard to the inclusion of a former Council Member who was elected to Council after November 2000 on the Committee, staff confirms that the list of former Councillors would include George Beavis, Bill Campbell, John Clements, Rick Downes, Bittu George, Kevin George, Dave Meers, Beth Pater,. Floyd Patterson, George Stoparczyk, and George Sutherland. Staff would contact each former member individually to determine their interest and desire in participating on the Committee.

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REPORT TO COUNCIL. Report No.: 08-167 May 6,2008 - Page 5 -

A meeting of the Nomination Advisory Committee would be called to consider the applications received from the community-at-large and former Member(s) of Council and to ratify the appointments of the various sector representatives on the Committee. Following their deliberations, the report of the Nomination Advisory Committee would be forwarded to Council for approval.

Alternative 2

Staff would contact with the business community (Downtown Business Improvement Area), the healthcare community (University Hospitals Kingston), the non-profit sector (The United Way), the educational community (Queen’s University, St. Lawrence College, and Royal Military College), and the organized labour community (Kingston and District Labour Council) and request that each sector submit a name of their representative and an alternate to serve on the Committee. Staff would present a report transmitting the names of the various sector representatives on the Committee to Council for ratification.

Staff would place an advertisement in the Kingston Whig Standard and on the City’s website seeking two interested members of the community to sit on the Committee.


A selection panel comprised of the representatives from the business community (Downtown Business Improvement Area), the healthcare community (University Hospitals Kingston), the non-profit sector (The United Way), the educational community (Queen’s University, St. Lawrence College, and Royal Military College), and the organized labour community (Kingston and District Labour Council) would review the applications received from the community- at-large and former Member(s) of Council and forward their recommendations to Council for approval.

Alternative 3:

Staff would place an advertisement in the Kingston Whig Standard and on the City’s website seeking interested members of the community to sit on the Committee. The aforementioned advertisement would request that the individual identify which sector they would be representing on the Committee.


A selection panel comprised of the Chief Administrative Officer, City Clerk, and Deputy City Clerk would review the applications received from the community and former Members of Council and forward the top candidates to the Nomination Advisory Committee for their consideration. Following their review, a report concerning the appointments would be forwarded to Council for approval.

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Alternative 4:

Staff would place an advertisement in the Kingston Whig Standard and on the City’s website seeking interested members of the community to sit on the Committee. The advertisement would request that the individual identify which sector they will be representing on the Committee.

With regard to the inclusion of a former Council Member who was elected to Council after November 2000 on the Committee, staff confirms that the list of former Councillors would include George Beavis, Bill Campbell, John Clements, Rick Downes, Bittu George, Kevin George, Dave Meers, Beth Pater, Floyd Patterson, George Stoparczyk, and George Sutherland. Staff would contact each former member individually, to determine their interest and desire in participating on the Committee.

A selection panel comprised of the Chief Administrative Officer, City Clerk, and Deputy City Clerk would consider the applications received from the community and former Members of Council and following their review would transmit their recommendations directly to Council for approval.

Staff is of the opinion that the Committee should be comprised of individuals who have expertise in areas such as municipal government, human resources, finance, and teamwork. It is expected that the recruitment process would have regard for these qualifications.

As Council is aware, it is the mandate of the Nomination Advisory Committee to make recommendations to Council regarding the appointment of members of the public and Members of Council to all external and internal Committees. The Committee shall receive and review all applications from members of the public and Council who wish to serve on Committees.

In consideration of the foregoing, staff is recommending Alternative 1 as its preferred choice as it offers the most effective, efficient, and transparent method to fill the positions on the Committee.

Citizen Committee to Review Council Remuneration Mandate

Section 15.3 of By-Law 98-1, as amended, (“Council Procedural By-Law”), regarding the establishment of ad hoc committees, requires that “each committee shall be given a clear mandate and well defined terms of reference that shall include:

a) the mandate b) the membership c) d) the reporting relationship e) f)

the composition, including the applicable staff members

the staff and other resources made available a start and finish date”

In accordance with the above:

Mandate: To review the current compensation paid to the Mayor and Members of Council and establish the percentile group as Kingston’s target pay position or an appropriate remuneration effective December 1 , 201 0.

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Membership and Composition: Eight members, including one representative each from the business community, healthcare community, the non-profit sector, the educational community; the organized labour community, two representatives from the community-at-large, and a former Member of Council who was elected to Council after November 2000. All members are voting members. The Chair and Vice-Chair of the Committee are selected by the members at the first meeting.

Reporting Relationship: The Committee will report directly to Council.

Staff and other resources made available: The City Clerk or designate and the Director, Organizational Effectiveness or designate, will support the Committee as non-voting staff members acting in a staff resource capacity, assist and advise as required. The City Clerk's Office will provide administrative support including compiling and co- ordinating the distribution of agendas and minutes to, and on behalf of members, booking of rooms, research, and compilation of data, etc.

Start and finish date: e The term of the Committee will commence January, 2009 and will expire upon the delivery of its final

report; it is anticipated that this will not exceed June, 2009.

Comparator municipalities be used as part of the review

Staff reviewed the list of comparators used in the Chief Administrative Officer job evaluation exercise. The comparator group consisted of ten municipalities: Barrie, Brantford, Burlington, Cambridge, Chatham-Kent, Guelph, Kitchener, Oshawa, Sudbury, and Thunder Bay. They were identified as being similar in structure and represented a range based on municipal population, both smaller and larger. Applying criteria that restricts the list of comparator municipalities to those municipalities that utilize the standing committee system as their governance model and whose Councillors are elected by districts/wards and are considered part-time will have a definite impact on the aforementioned comparator municipalities. For ease of reference, staff has bolded the municipalities that would be impacted including the criterion in question:

Barrie - utilizes the Standing Committee governance model; elected by districts/wards; and Councillors are considered part-time. Brantford - utilizes the Committee of the Whole governance model; elected by districts/wards; and Councillors are considered part-time. Burlington - utilizes the Standing Committee governance model; elected by districts/wards; and Councillors are considered full-time. Cambridge - utilizes the Standing Committee governance model; elected by districtslwards; and Councillors are considered part-time. Chatham-Kent - utilizes the Committee of the Whole governance model; elected by districtslwards; and Councillors are considered part-time. Guelph - utilizes the Standing Committee governance model; elected by districts/wards; and Councillors are considered part-time. Kitchener - utilizes the Standing Committee governance model; elected by districts/wards; and Councillors are considered part-time. Oshawa - utilizes the Standing Committee governance model; elected by districts/wards; and Councillors are considered full-time.

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Sudbury - utilizes the Standing Committee governance model; elected by districts/wards; and Councillors are considered part-time. Thunder Bay - utilizes the Committee of the Whole governance model; elected by districtslwards and at-large; and Councillors are considered part-time.

Given that Brantford, Burlington, Chatham-Kent, Oshawa, and Thunder Bay do not meet the criteria, they should be eliminated from further consideration.

In addition, in order to effectively compare the remaining municipalities, the Committee may wish to consider the matter of remuneration for lower tier versus single tier municipalities. It would be reasonable to assume that the Members’ duties and responsibilities would be different, and therefore the lower tier municipalities should also be deleted from the list of comparators. This action would result in the further elimination of Cambridge and Kitchener from the list, given that their respective mayors sit on their Regional Councils and are remunerated accordingly (Note: Burlington’s Mayor and six Councillors sit on Halton Regional Council; and Oshawa’s Mayor and seven Councillors sit on Durham Regional Council).

The remaining municipal comparators, which would meet the above noted criteria, are also similar in size:

Barrie (1 28,430 in population) 0 Guelph (1 14,943 in population)

Sudbury (157,857 in population)

Municipalities that utilize the Committee of the Whole Svstem as their uovernance model

The City of Brantford, with a population of 90,192, operates as a single tier level of government and utilizes a Committee of the Whole model of governance. The municipality is comprised of five wards, with each ward represented by two Councillors. The City operates on a three week cycle, ,with Committee of the Whole - Community Development and Committee of the Whole - Operations and Administration meeting the first and second week, respectively, of the three week cycle of meetings with Council meeting in the third week of the cycle. Additional committees include: the Estimates Committee (created as a Committee of the Whole of Council consisting of the Mayor and Members of Council), the Finance Committee (created as a Standing Committee consisting of the Mayor and five Members of Council), Appointments Committee (created as a Committee of the Whole of Council consisting of the Mayor and Members of Council), the Social Services Committee (created as a Standing Committee consisting of the Mayor, five Members of Council, and two nominees of the County of Brant), and the Pubic Forum Committee (created as a Committee of the Whole of Council consisting of the Mayor and Members of Council. The Finance Committee and Social Services Committee meet monthly while the Estimates Committee and Public Forum Committee meet as required. The Mayor and Members of Council also sit on various boards and committees.

The City of Chatham-Kent, with a population of 108,117 operates as a single tier level of government and utilizes a Committee of the Whole governance model. The municipality is comprised of six wards. Ward 1 is represented by two Councillors, Ward 2 is represented by three Councilors, Ward 3 is represented by two Councillors, Ward 4 is represented by two Councillors, Ward 5 is represented by two Councillors, and Ward 6 is represented by six Councillors. The City operates on a two week cycle of meetings. The Planning Committee, which is comprised of all Members of Council, meets in the first week; and Council meets in the second week. All matters are brought before Council and Council as a whole makes decisions on reports prepared by Administration. The Mayor and Members of Council are also appointed to numerous boards and committees.

The City of Thunder Bay, with a population of 109,140, operates as a single tier level of government, and utilizes a Committee of the Whole governance model. The municipality is comprised of seven wards, with each ward represented by one Councillor. Five additional Councillors are elected at large. The City operates on a four week cycle of meetings. Committee of the Whole - Operations meets in the first week; Committee of the Whole - Community Services and Council meet in the second week;

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Committee of the Whole - Planning meets in the third week; and Committee of the Whole -Administrative Services and Council meets in the fourth week. The Mayor and Members all sit on Committee of the Whole and are also appointed to numerous boards and committees.

The City of Kingston, with a population of 117,207, operates as a single tier level of government, and utilizes a Standing Committee governance model. The municipality is comprised of twelve wards, with each ward represented by one Councillor. Council meets bi-monthly and the four Standing Committees (Planning; Arts, Recreation, & Community Policies; Administrative Policies; and the Environment, Infrastructure & Transportation Policies Committee) meet monthly. The majority of Council Members sit on the Standing Committees in addition to other ad hoc, advisory, and legislated committees.

In reviewing the number of meetings that Members of Council attend in Brantford, Chatham-Kent, and Thunder Bay in comparison with the number of meetings Members of Council attend in Kingston, it is staffs opinion that the type of governance model has no significant impact on the workload distribution. Both models rely on the equitable distribution of workload to effectively and efficiently carry out Council business. Applying too narrow criteria in this review would result in the comparator group being significantly reduced, making it difficult for the Committee to successfully complete its mandate. Staff is concerned that the limited number of comparator municipalities will skew the results of the review.

Staff suggests that the comparator group include municipalities that: utilize the Standing Committee or the Committee of the Whole model of governance; are similar in size in terms of population; operate as a single tier municipality; and has Councillors who are elected by districtslwards (the exception being Thunder Bay) and are considered part-time.

The group would consist of six municipalities: Barrie, Brantford, Chatham-Kent, Guelph, Sudbury, and Thunder Bay.

The Mayor and Members of Council should be compensated for their work at a level that fairly reflects the demands of the position, and in comparison to Council Members at similar municipalities in Ontario. The Committee will make a recommendation to Council as to what the Committee regards as an appropriate level of remuneration.

EXISTING POLlCYlBY LAW: By-Law No. 99-1 69, as amended, being a By-Law to provide for the annual paying of an allowance to the Members of Council for the Corporation of the City of Kingston.

By-Law No. 98-1, as amended, being the Council Procedural By-Law.

NOTICE PROVISIONS: Not applicable.

ACCESSIBILITY CONSIDERATIONS: Not applicable.

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FINANCIAL CONSIDERATIONS: Not applicable at this time. Any adjustments will be made in accordance to, and upon the submission of, the final report from the Citizen Committee to Review Council Remuneration.

CONTACTS: Carolyn Downs, City Clerk John Bolognone, Deputy City Clerk

OTHER CITY OF KINGSTON STAFF CONSULTED: None.

EXHIBITS ATTACH ED: None.

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