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ThWUteriJkr Superior by~

Office ofthe City Clerk Fax: 623-5468Memorandum Telephone: 625-2230

TO: Members of Council

FROM: John Hannam, City Clerk

DATE: Thursday, December 1, 2016

SUBJECT: Additional Information I New Business Committee of the Whole I City Council - December 5, 2016

COMMITTEE OF THE WHOLE

New Business

1. Memorandum from Councillor F. Pullia, dated November 30, 2016, relative to Standards for Winter Control.

CITY COUNCIL

Additional Information

1. Memorandum from Mr. J. Coady, Manager - Licensing & Enforcement, dated December 5, 2016, relative to By-law Number BL 119/2016 and By-law Number BL 120/2016.

2. By-law Number: BL 143/2016. A By-law to auth01ize the bonowing upon se1ial debenhu-es. 3. By-law Number: BL 144/2016. A By-law to autho1ize the b01TOwing upon se1ial debentures. 4. By-law Number: BL 145/2016. A By-law to authorize the bonowing upon serial debentures. 5. By-law Number: BL 146/2016. A By-law to authorize the bonowing upon serial debenhu-es. 6. By-law Number: BL 147/2016. A By-law to authorize the bonowing upon se1ial debenhu-es. 7. By-law Number: BL 148/2016. A By-law to authorize the bonowing upon se1ial debenhu-es. 8. By-law Number: BL 151 /2016. A By-law to authorize the bonowing upon serial debentures.

Ill

E:\COO 18 City Clerk's Administrative Files\CW\ I - OPERATIONS\20 16\December 5\Add Info Thurs Dec I for Dec 5.docx

Thwtaer1fi;;, Superior by~

Memorandum Office ofthe City Clerk Fax: 623-5468 Telephone: 625-2230

TO: John S. Hannam, City Clerk

FROM: Councillor F. Pullia, At-Large

DATE: December 1, 2106

SUBJECT: Review of Service Level Standards for Winter Control

The recent winter stonn, on Friday November 18, resulted in many residential roads not being cleared of snow for 2 and 3 days. This delay in snow clearing resulted in numerous calls of complaint from residents across the city. While the City of Thunder Bay's standard for Winter Control was confinned earlier this year it would seem evident that the standard falls shmi of cmrununity expectations when responding to a severe winter stonn such as occtmed on November 18th.

I feel it is incumbent on Council to look more closely at our capacity to respond to such events and so a review of what would be required to set a higher standard is in order. An external review would provide I think a more objective review and a 'fresh set of eyes' that will help better infonn both Council and Administration as to what options we might have in moving forward. Accordingly I would ask that the following motion be presented to Committee of the Whole for its consideration:

"With respect to Service Level Standards for Winter Control we recmrunend that an external consultant be engaged to conduct an operational review to examine the Department's ability to respond to winter weather events and identify options to mitigate the impacts of extreme weather including the identification of what resources would be required for the City of Thunder Bay to adopt the Provincial Maintenance Standards for Winter Operations.

AND THAT funding for this review be included in the 2017 Capital Budget."

ThWltlerffu Superior by1l!!J'

Licensing & Enforcement Fax: 625-2977Memorandum Telephone: 625-2644

TO: Members of City Council

FROM: James Coady Manager, Licensing & Enforcement

DATE: December 5, 2016

SUBJECT: By-law Number 119/2016 - Licensing & Regulation of Eating Establishments and/or Food Shops, and; 120/2016 - To update the Licensing & Regulation of Refreshment Vehicles.

Report Number 132/2016 was submitted to City Council on November 21, 2016. The purpose of the repo1i was to amend the Licensing and Regulation of Eating Establishments and/or Food Shops By-law 155-2005, and the Licensing and Regulation of Refreshment Vehicle By-law Number 163-2005 to enhance public safety by requiring food establishments to post a Health Unit inspection report at locations visible to the public.

The Legal Services Division performed a review of the subject by-laws and determined that several minor changes should be made. I would like to highlight the following changes that are included in the By-laws.

By-law Number BL 119/2016 is changed to remove the last sentence from Section 2.18 and to remove and replace "Public Health Inspector or member of the public upon request" with "Public Health Inspector, member of the public or Municipal Law Enforcement Officer."

By-law Number 120/2016 is changed by adding "in a conspicuous location" after the word "posted" in Section 2.19. And to remove and replace "Public Health Inspector or member of the public upon request" with "Public Health Inspector, member of the public, or Municipal Law Enforcement Officer."

Thank you for your assistance in this matter.

James Coady

Manager, Licensing and Enforcement

Memorandum Corporate By-law Number BL 143/2016

TO: Office of the City Clerk FILE:

FROM: Kathie Blake Corporate Services & Long Term Care - Financial Services

DATE: 10/18/2016

SUBJECT: BL 143 /2016 - A By-law to Authorize the Borrowing Upon Serial Debentures

MEETING DATE: City Council - 12/05/2016 (mm/dd/yyyy)

By-law Description: A By-law to authorize the borrowing upon serial debentures in the principal amount of $6,969,933.00 towards the cost of certain capital works described in schedule "A" to this by-law.

Authorization: Report 2014.025 (Accounting & Budgets) - Committee of the Whole - February 4, 2014.

By-law Explanation: The purpose ofthis by-law is to authorize borrowing towards the cost of certain capital works of The Corporation of the City of Thunder Bay.

Schedules and Attachments:

Schedule A - Capital Works to be Debentured Schedule B - Debenture Documents Schedule C - Loan Repayment Schedule

http:6,969,933.00

Recitals

THE CORPORATION OF THE CITY OF THUNDER BAY BY-LAW NUMBER BL 143/2016

A By-law to authorize the borrowing upon serial debentures in the principal amount of $6,969,933.00 towards the cost of certain capital works described in schedule "A" to this by-law.

1. Subsection 401 (1) of the Municipal Act, 2001, as amended (the "Act") provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way, and may issue debenhlfes and presc1ibed financial instruments and enter prescribed financial agreements for or in relation to the debt.

2. Subsection 408 (2.1) of the Act provides that a municipality may issue a debenhlfe or other financial instrument for long-tenn borrowing only to provide financing for a capital work.

3. The Council of The Corporation of the City of Thunder Bay (the "Municipality'') has passed the By-laws enumerated in column (1) of Schedule "A" attached hereto and forming part of this Bylaw ("Schedule "A") authorizing the classes of works or the capital works, as the case may be, described in column (2) of Schedule "A" (individually a "Capital Work", collectively the "Capital Works"), and authorizing the entering into of a Financing Agreement dated and effective as of the 22nd day of September, 2014 for the provision of temporary and long-term borrowing from the Ontario Infrastruchlfe and Lands Corporation ("OILC") in respect of the Capital Works (the "Financing Agreement") and the Municipality desires to issue debenh1res for the Capital Works in the amounts specified in column (5) of Schedule "A".

4. Before authorizing the Capital Works and before authorizing any additional cost amount and any additional debenture authority in respect thereof, the Council of the Municipality had its Treasurer calculate an updated limit in respect of its most recent annual debt and financial obligation limit received from the Ministry of Municipal Affairs and Housing (now the Ministry of Municipal Affairs) in accordance with the applicable regulation and, prior to the Colmcil of the Municipality authorizing each Capital Work, each such additional cost amount and each such additional debenture authority, the Treasurer determined that the estimated annual amount payable in respect of each Capital Work, each such additional cost amount and each such additional debenture authority, would not cause the Municipality to exceed the updated limit and that the approval of each Capital Work, each such additional cost amount and each such additional debenture authority by the Ontario Municipal Board pursuant to such regulation was not required.

5. The Municipality has submitted an application to OILC for long-term borrowing through the issue of debenhtres to OILC in respect of the Capital Works (the "Application") and the Application has been approved.

6. To provide long-term financing for the Capital Works and to repay certain temporary advances in respect of the Capital Works made by OILC pursuant to the Financing Agreement, it is

Page 1 By-Law No. Agenda Item BL 143/2016

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now deemed to be expedient to issue serial debenhlfes in the principal amount of $6,969,933.00 dated December 15, 2016 and maturing on December 15, 2026 and payable in semi-annual installments of combined principal and interest on the 15th day of June and on the 15th day of December in each of the years 2017 to 2026, both inclusive on the terms hereinafter set forth.

ACCORDINGLY, THE COUNCIL OF THE CORPORATION OF THE CITY OF THUNDER BAY ENACTS AS FOLLOWS:

1. For the Capital Works, the borrowing upon the credit of the Municipality at large of the principal amotmt of $6,969,933.00 and the issue of serial debentures therefor to be repaid in semiannual instalments of combined principal and interest as hereinafter set forth, are hereby authorized.

2. The Mayor and the Treasurer of the Municipality are hereby authorized to cause any number of serial debentures to be issued for such amounts of money as may be required for the Capital Works in definitive form, not exceeding in total the said principal ammmt of $6,969,933.00 (the "Debenhlfes"). The Debenhlfes shall bear the Mmucipality's municipal seal and the signahlfes of the Mayor and the Treasurer of the Municipality, all in accordance with the provisions of the Act. The mtmicipal seal of the Municipality and the signahlfes referred to in this section may be p1inted, lithographed, engraved or otherwise mechanically reproduced. The Debenhlfes are sufficiently signed if they bear the required signatures and each person signing has the authority to do so on the date he or she signs.

3. The Debentures shall be in fully registered form as one or more certificates in the aggregate principal amount of $6,969,933.00, in the name of OILC, or as OILC may otherwise direct, substantially in the form attached as Schedule "B" hereto and forming part of this By-law with provision for payment of principal and interest (other than in respect of the final payment of principal and outstanding interest on maturity upon presentation and surrender) by pre-authorized debit in respect of such principal and interest to the credit of such registered holder on such tenns as to which the registered holder and the Municipality may agree.

4. In accordance with the provisions of section 25 of the Ontario Infrastructure and Lands Corporation Act, 2011, as amended from time to time hereafter, as security for the payment by the Municipality of the indebtedness of the Municipality to OILC under the Debenhlfes (the "Obligations"), the Mtmicipality is hereby authorized to agree in writing with OILC that the Minister of Finance is entitled, without notice to the Municipality, to deduct from money appropriated by the Legislative Assembly of Ontario for payment to the Municipality, amounts not exceeding the amounts that the Mtmicipality fails to pay OILC on account of the Obligations and to pay such amounts to OILC from the Consolidated Revenue Fund.

5. The Debentures shall all be dated the 15th day of December, 2016, and as to both principal and interest shall be expressed and be payable in lawful money of Canada. The Debenhlfes shall bear interest at the rate of 2.52% per annum and mahlfe during a period of 10 years from the date thereof payable semi-annually in arrears as described in thls section. The Debenhlfes shall be paid in full by December 15, 2026 and be payable in semi-annual instalments of combined equal principal and diminishing interest amounts on the 15th day of June and on the 15th day of December in each of the years 2017 to 2026, both inclusive, as set forth in Schedule "C" attached hereto and fonning part of this By-law ("Schedule "C").

6. Payments in respect of principal of and interest on the Debenhlfes shall be made only on a Page 2 By-Law No. Agenda Item BL 143/2016

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day on which banking institutions in Toronto, Ontario, are not authorized or obligated by law or executive order to be closed (a "Toronto Business Day'') and if any date for payment is not a Toronto Business Day, payment shall be made on the next following Toronto Business Day.

7. Interest shall be payable to the date of maturity of the Debentures and on default shall be payable on any overdue amounts both before and after default and judgment at a rate per annum equal to the greater of the rate specified on the Schedule as attached to and fanning part of the Debentures for such amounts plus 200 basis points or Prime Rate (as defined below) plus 200 basis points, calculated on a daily basis from the date such amounts become overdue for so long as such amounts remain overdue and the Municipality shall pay to the registered holders any and all costs incurred by the registered holders as a result of the overdue payment. Any amounts payable by the Municipality as interest on overdue principal or interest and all costs incurred by the registered holders as a result of the overdue payment in respect of the Debentures shall be paid out of current revenue. Whenever it is necessary to compute any amount of interest in respect of the Debentures for a pe1iod of less than one full year, other than with respect to regular semi-annual interest payments, such interest shall be calculated on the basis of the actual number of days in the period and a year of365 days or 366 days as appropriate.

"Prime Rate" means, on any day, the annual rate of interest which is the aiithrnetic mean of the p1ime rates announced from time to time by the following five major Canadian Schedule I banks, as of the issue date of this Debenture: Royal Bank of Canada; Canadian Imperial Bank of Commerce; The Bank of Nova Scotia; Bank of Montreal; and The Toronto-Dominion Bank (the "Reference Banks") as their reference rates in effect on such day for Canadian dollar commercial loai1s made in Canada. If fewer than five of the Reference Banks quote a prime rate on such days, the "Prime Rate" shall be the arithmetic mean of the rates quoted by the remaining Reference Banks.

8. In each year in which a payment of semi-annual instalments of combined equal p1incipal and diminishing interest amounts becomes due in respect of the Capital Works there shall be raised as part of the Municipality's general levy the amounts of principal and interest payable by the Municipality in each year as set out in Schedule "C" to the extent that the amounts have not been provided for by any other available source including other taxes or fees or charges imposed on persons or property by a by-law of any municipality.

9. The Debentures may contain any provision for their registration thereof autho1ized by any statute relating to municipal debentures in force at the time of the issue thereof.

10. The Municipality shall maintain a registry in respect of the Debenhlfes in which shall be recorded the naines and the addresses of the registered holders and particulars of the Debentures held by them respectively and in which particulars of the cancellations, exchanges, substitutions and transfers of Debentures, may be recorded and the Municipality is authorized to use electronic, magnetic or other media for records of or related to the Debentures or for copies of them.

11. The Municipality shall not be bound to see to the execution of any trnst affecting the ownership of any Debenture or be affected by notice of any equity that may be subsisting in respect thereof. The Municipality shall deem and treat registered holders of the Debentures as the absolute owners thereof for all purposes whatsoever notwithstanding any notice to the contrary and all payments to or to the order of registered holders shall be valid and effectual to discharge the liability of the Municipality on the Debentures to the extent of the amount or amounts so paid. Where a Debenture is registered in more than one name, the principal of and interest from time to time


payable on such Debenture shall be paid to or to the order of all the joint registered holders thereof, failing written instrnctions to the contrary from all such joint registered holders, and such payment shall constih1te a valid discharge to the Municipality. In the case of the death of one or more joint registered holders, despite the foregoing provisions of this section, the principal of and interest on any Debentures registered in their names may be paid to the survivor or survivors of such holders and such payment shall constitute a valid discharge to the Municipality.

12. The Debentures will be transferable or exchangeable at the office of the Treasurer of the Municipality upon presentation for such purpose accompanied by an instrument of transfer or exchange in a fonn approved by the Municipality and which form is in accordance with the prevailing Canadian transfer legislation and practices, executed by the registered holder thereof or such holder's duly authorized attorney or legal personal representative, whereupon and upon registration of such transfer or exchange and cancellation of the Debenhlfe or Debentures presented, the Mayor and the Treasurer shall issue and deliver a new Debenture or Debenhlfes of an equal aggregate principal amount in any authorized denomination or denominations as directed by the transferor, in the case of a transfer or as directed by the registered holder in the case of an exchange.

13 . The Mayor and the Treasurer shall issue and deliver new Debenhlfes in exchange or substih1tion for Debenhlfes outstanding on the registry with the same maturity and of like fonn which have become mutilated, defaced, lost, subject to a mysterious or unexplainable disappearance, stolen or destroyed, provided that the applicant therefor shall have: (a) paid such costs as may have been incmTed in connection therewith; (b) (in the case when a Debenture is mutilated, defaced, lost, mysteriously or unexplainably missing, stolen or destroyed) furnished the Municipality with such evidence (including evidence as to the certificate number of the Debenture in question) and an indemnity in respect thereof satisfactory to the Municipality in its discretion; and (c) surrendered to the Municipality any mutilated or defaced Debenhlfes in respect of which new Debentures are to be issued in substih1tion.

14. The Debentures issued upon any registration of transfer or exchange or in substih1tion for any Debentures or part thereof shall carry all the rights to interest if any, accrned and unpaid which were carried by such Debentures or part thereof and shall be so dated and shall bear the same mah1rity date and, subject to the provisions of this By-law, shall be subject to the same tenns and conditions as the Debenhu-es in respect of which the transfer, exchange or substitution is effected.

15. The cost of all transfers and exchanges, including the printing of authoiized denominations of the new Debenhlres, shall be borne by the Municipality. When any of the Debenhlres are surrendered for transfer or exchange the Treasurer of the Municipality shall: (a) in the case of an exchange, cancel and destroy the Debenhlfes surrendered for exchange; (b) in the case of an exchange, certify the cancellation and destruction in the registry; ( c) enter in the registry particulars of the new Debenhlfe or Debentures issued in exchange; and ( d) in the case of a transfer, enter in the registry particulars of the registered holder as directed by the transferor.

16. Reasonable fees in respect of the DebenhU"es, in the nonnal course of business, other than reasonable fees for the substih1tion of a new Debenhlfe or new Debentures for any of the Debenhlres that are mutilated, defaced, lost, mysteriously or unexplainably missing, stolen or destroyed and for the replacement of any of the principal and interest cheques (if any) that are mutilated, defaced, lost, mysteriously or unexplainably missing, stolen or destroyed. When new Debenhlfes are issued in substitution in these circumstances the Municipality shall: (a) treat as cancelled and destroyed the Debentures in respect of which new Debentures will be issued in


substitution; (b) certify the deemed cancellation and destrnction in the registry; ( c) enter in the registry particulars of the new Debentures issued in substitution; and ( d) make a notation of any indemnities provided.

17. Except as otherwise expressly provided herein, any notice required to be given to a registered holder of one or more of the Debenhlfes will be sufficiently given if a copy of such notice is mailed or otherwise delivered to the registered address of such registered holder.

18. The Mayor and the Treasurer are hereby authorized to cause the Debentures to be issued, one or more of the Clerk and Treasurer are hereby authorized to generally do all things and to execute all other documents and other papers in the name of the Municipality in order to cany out the issue of the Debentures and the Treasurer is authorized to affix the Mmucipality' s municipal seal to any of such documents and papers.

19. The money received by the Municipality from the sale of the Debenhlfes to OILC, including any premium, and any earnings derived from the inveshnent of that money, after providing for the expenses related to their issue, if any, shall be apportioned and applied to the Capital Works and to no other purpose except as pennitted by the Act.

20. Subject to the Municipality's investment policies and goals, the applicable legislation and the terms and conditions of the Debenhlres, the Municipality may, if not in default under the Debentures, at any time purchase any of the Debenhlfes in the open market or by tender or by private contract at any price and on such tenns and conditions (including, without limitation, the manner by wmch any tender offer may be communicated or accepted and the persons to whom it may be addressed) as the Municipality may in its discretion detennine.

21. This By-law shall come into force and take effect on the date it is passed.

Enacted and passed tills 5th day ofDecember, A.D. 2016 as witnessed by the Seal of the Corporation and the hands of its proper Officers.

Keith Hobbs, Mayor

John S. Hannam, City Clerk


Schedule "A"

(1) (2) (3) (4) (5) (6)

Approved

By-law Project

Description

Amount to be Financed

Through the Issue of

Debentures

Amount of Debentures Previously

Issued

Amount of Debentures to

be Issued

Term of Years of

Debentures

014-2014 Capital costs in $3,98 1,100.00 Nil $3,981 ,096.41 10 039-201 4 connection with

the Municipal Roads Infrastructure Pavement Rehabilitation project

014-2014 Capital costs in $2 , I 00,000 .00 Nil $2, l 00,000 00 10 039-2014 connection with

the Municipal Roads Infrastructure Road Network Improvements project

014-2014 Capital costs in $648 ,900.00 Nil $648,83855 10 039-2014 connection with

the Municipal Road Infrastructure Sidewalks Improvements project

014-2014 Capital costs in $240,000 00 Nil $239,998.04 10 039-2014 connection with

the Municipal Road Infrastructure Street Lighting Improvements project

TOTAL $6,969,933.00

Schedule "B"

No. OILC2016-02 $6,969 ,933 .oo I

CANADA

Province of Ontario

THE CORPORATION OF THE CITY OF THUNDER BAY

FULLY REGISTERED 2.52% SERIAL DEBENTURE THE CORPORATION OF THE CITY OF THUNDER BAY (the "Municipality"), for value received, hereby promises to pay to

ONTARIO INFRASTRUCTURE AND LANDS CORPORATION ("OILC")

or registered assigns, subject to the Conditions attached hereto which form part hereof (the "Conditions"), upon presentation and surrender of this debenture (or as otherwise agreed to by the Municipality and OILC) by the maturity date of this debenture (December 15, 2026), the principal amount of

SIX MILLION, NINE HUNDRED SIXTY-NINE THOUSAND, NINE HUNDRED AND

THIRTY-THREE DOLLARS

----------------------------------- ($6,969 ,933.00) --------------------------------

by semi-annual instalments of combined equal principal and diminishing interest amounts on the 15th day of June and on the 15th day of December in each of the years 2017 to 2026, both inclusive, in the amounts set forth in the attached Loan Amortization Schedule (the "Arno1iization Schedule") and subj ect to late payment interest charges pursuant to the Conditions, in lawful money of Canada. Subject to the Conditions, interest shall be paid until the maturity date of this debenture, in like money in semi-annual payments from the closing date, or from the last date on which interest has been paid on this debenture, whichever is later, at the rate of2.52% per annum, in arrears, on the specified dates, as set forth in the Amortization Schedule. Interest shall be paid on default at the applicable rate set out in the Amortization Schedule both before and after default and judgment. The payments of principal and interest and the outstanding amount of principal in each year are shown in the Amortization Scheduie.

The Municipality, pursuant to section 25 of the Ontario Infrastructure and Lands Corporation Act, 2011 (the "OILC Act, 201 1") hereby irrevocably agrees that the Minister of Finance is entitled, without notice to the Municipality, to deduct from money appropriated by the Legislative Assembly of Ontario for payment to the Municipality, amounts not exceeding any amounts that the Municipality fails to pay OILC on account of indebtedness evidenced by this debenture, and to pay such amounts to OILC from the Consolidated Revenue Fund.

This debenture is subject to the Conditions.

DATED at the City of Thunder Bay as at the 15th day of December, 2016

IN TESTIMONY WHEREOF and under the authority of By-law Number BL 143/2016 of the Municipality duly passed on the 5th day of December, 2016 (the "By-law"), this debenture is sealed with the municipal seal of the Municipality and signed by the Mayor and by the Treasurer thereof.

Date of Registration: December 15, 2016

(Seal)

Keith Hobbs, Mayor Rob Colquhoun, Treasurer

Pagel By-law Number Agenda Item BL 143/2016

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----- ---------- --------------- --------------- --------------- -----------------------------------

-------------- -------------- -------------- --------------------

LOAN AMORTIZATION SCHEDULE

Loan.. ... : 1537 Name ..... : Thunder Bay, The Corporation of the City of Principal : $6,969,933.00 Rate.. ... : 02.5200% Term .... . : 120 Paid.... . : Semi-annual Matures.. : 12/15/2026

Pay# Date Amount Due Principal Due Interest Due Rem . Principal

$ $ $ $ 106/15/2017 436,077.20 348,496.65 87,580.55 6,621,436.35 2 12/15/2017 432,155.32 348,496.65 83,658.67 6,272,939.70 3 06/15/2018 427,319.14 348,496.65 78,822.49 5,924,443 .05 4 12/15/2018 423,349.15 348,496.65 74,852.50 5,575,946.40 5 06/15/2019 418,561.09 348,496.65 70,064.44 5,227,449.75 6 12/15/2019 414,542.97 348,496.65 66,046.32 4,878,953.10 7 06/15/2020 410,139.88 348,496.65 61,643.23 4,530,456.45 8 12/15/2020 405,736.80 348,496.65 57,240.15 4,181,959.80 9 06/15/2021 401,044.98 348,496.65 52,548 .33 3,833,463.15 10 12/15/2021 396,930.62 348,496.65 48,433.97 3,484,966.50 11 06/15/2022 392,286.92 348,496.65 43,790.27 3,136,469.85 12 12/15/2022 388,124.44 348,496.65 39,627.79 2,787,973 .20 13 06/15/2023 383,528.87 348,496.65 35,032.22 2,439,476.55 14 12/15/2023 379,318.27 348,496.65 30,821.62 2,090,979.90 15 06/15/2024 374,915.18 348,496.65 26,418.53 1,742,483.25 16 12/15/2024 370,512.09 348,496.65 22,015.44 1,393,986.60 17 06/15/2025 366,012.76 348,496.65 17,516.11 1,045,489.95 18 12/15/2025 361,705.91 348,496.65 13,209.26 696,993.30 19 06/15/2026 357,254.70 348,496.65 8,758 .05 348,496.65 20 12/15/2026 352,899.74 348,496.65 4,403 .09 0.00

7,892,416.03 6,969,933.00 922,483.03

http:922,483.03http:6,969,933.00http:7,892,416.03http:4,403.09http:348,496.65http:352,899.74http:348,496.65http:8,758.05http:348,496.65http:357,254.70http:696,993.30http:13,209.26http:348,496.65http:361,705.91http:1,045,489.95http:17,516.11http:348,496.65http:366,012.76http:1,393,986.60http:22,015.44http:348,496.65http:370,512.09http:1,742,483.25http:26,418.53http:348,496.65http:374,915.18http:2,090,979.90http:30,821.62http:348,496.65http:379,318.27http:2,439,476.55http:35,032.22http:348,496.65http:383,528.87http:787,973.20http:39,627.79http:348,496.65http:388,124.44http:3,136,469.85http:43,790.27http:348,496.65http:392,286.92http:3,484,966.50http:48,433.97http:348,496.65http:396,930.62http:3,833,463.15http:52,548.33http:348,496.65http:401,044.98http:4,181,959.80http:57,240.15http:348,496.65http:405,736.80http:4,530,456.45http:61,643.23http:348,496.65http:410,139.88http:4,878,953.10http:66,046.32http:348,496.65http:414,542.97http:5,227,449.75http:70,064.44http:348,496.65http:418,561.09http:5,575,946.40http:74,852.50http:348,496.65http:423,349.15http:5,924,443.05http:78,822.49http:348,496.65http:427,319.14http:6,272,939.70http:83,658.67http:348,496.65http:432,155.32http:6,621,436.35http:87,580.55http:348,496.65http:436,077.20http:6,969,933.00

OILC hereby agrees that the Minister of Finance is entitled to exe rcise certain rights of deduction pursuant to section 25 of the OILC Act, 2011 as described in this debenture.

Ontario Infrastructure and Lands Corporation

by: _____________~ by: ________________

Authorized Signing Officer Authorized Signing Officer

LEGAL OPINION

We have examined the By-law of the Municipality authorizing the issue of serial debentures in the principal amount of $6,969,933.00 dated December 15, 20 16 and maturing on December 15, 2026 in semi-amrnal instalments of combined equal principal and diminishing interest amounts on the 15th day of June and on the 15th day of December in each of the years 2017 to 2026, both inclusive, as set out in Schedule "C" to the By-law.

In our opinion, the By-law has been properly passed and is within the legal powers of the Municipality. The debenture issued under the By-law in the within form (the "Debenture") is the direct, general, unsecured and unsubordinated obligation of the Municipality. The Debenture is enforceable against the Municipality subject to the special jurisdiction and powers of the Ontario Municipal Board over defaulting municipalities under the Municipal Affairs Act. This opinion is subject to and incorporates all the assumptions, qualifications and limitations set out in our opinion letter.

December 15, 2016

WeirFoulds LLP

http:6,969,933.00

CONDITIONS OF THE DEBENTURE

Form, Denomination, and Ranking of the Debenture

I. The debenh1res issued pursuant to the By-law (collectively the "Debentures" and individually a "Debenture") are issuable as fully registered Debentures without coupons.

2. The Debenh1res are direct, general, unsecured and unsubordinated obligations of the Municipality. The Debenh1res rank concurrently and equally in respect of payment of principal and interest with all other debentures of the Municipality except for the availability of money in a sinking or retirement fund for a particular issue of debenh1res.

3. This Debenture is one fully registered Debenture registered in the name of OILC and held by OfLC.

Registration

4. The Municipality shall maintain at its designated office a registry in respect of the Debenh1res in which shall be recorded the names and the addresses of the registered holders and particulars of the Debentures held by them respectively and in which particulars of the transfers, exchanges and substih1tions of Debentures, may be recorded and the Municipality is authorized to use electronic, magnetic or other media for records of or related to the Debentures or for copies of them.

Title 5. The Municipality shall not be bound to see to the execution of any trust affecting the

ownership of any Debenhire or be affected by notice of any equity that may be subsisting in respect thereof. The Municipality shall deem and treat registered holders of Debentures, including this Debenture, as the absolute owners thereof for all purposes whatsoever notwithstanding any notice to the contrary and all payments to or to the order of registered holders shall be valid and effech1al to discharge the liability of the Municipality on the Debenh1res to the extent of the amount or amounts so paid. Where a Debenhire is registered in more than one nan1e, the principal of and interest from time to time payable on such Debenture shall be paid to or to the order of all the joint registered holders thereof, failing written instructions to the contrary from all such joint registered holders, and such payment shall constih1te a valid discharge to the Municipality. In the case of the death of one or more joint registered holders, despite the foregoing provisions of this section, the principal of and interest on any Debenh1res registered in their names may be paid to the survivor or survivors of such holders and such payment shall constihlte a valid discharge to the Municipality.

Payments of Principal and Interest

6. The record date for purposes of payment of principal of and interest on the Debenh1res is as of 5:00 p.m. on the sixteenth calendar day preceding any Payment Date including the maturity date. Principal of and interest on the Debenhtres are payable by the Municipality to the persons registered as holders in the registry on the relevant record date. The Municipality shall not be required to register any transfer, exchange or substitution of Debentures during the period from any record date to the corresponding Payment Date.

7. The Municipality shall make all payments in respect of semi-annual instalments of combined equal principal and diminishing interest amounts on the Debenh1res on the 15th day of June and the 15th day of December commencing on June 15, 2017 and ending on December 15, 2026, as set out in Schedule "C" to the By-law, by pre-authorized debit in respect of such interest and principal to the credit of the registered holder on such terms as the registered holder may agree.

8. The Municipality shall pay to the registered holder interest on any overdue amount of principal or interest in respect of any Debenture, both before and after default and

judgment, at a rate per annum equal to the greater of the rate specified on the Schedule as attached to and forming part of the Debenture for such amount plus 200 basis points or Prime Rate (as defined below) plus 200 basis points, calculated on a daily basis from the date such amount becomes overdue for so long as such amount remains overdue and the Municipality shall pay to the registered holder any and all costs incurred by the registered holder as a result of the overdue payment.

9. Whenever it is necessary to compute any amount of interest in respect of the Debentures for a period of less than one full year, other than with respect to regular semi-annual interest payments, such interest shall be calculated on the basis of the actual number of days in the period and a year of365 days or 366 days as appropriate.

10. Payments in respect of principal of and interest on the Debentures shall be made only on a day on which banking institutions in Toronto, Ontario, are not authorized or obligated by law or executive order to be closed (a "Toronto Business Day"), and if any date for payment is not a Toronto Business Day, payment shall be made on the next following Toronto Business Day as noted on the Amortization Schedule.

11 . The Debentures are transferable or exchangeable at the office of the Treasurer of the Municipality upon presentation for such purpose accompanied by an instrument of transfer or exchange in a form approved by the Municipality and which form is in accordance with the prevailing Canadian transfer legislation and practices, executed by the registered holder thereof or such holder's duly authorized attorney or legal personal representative, whereupon and upon registration of such transfer or exchange and cancellation of the Debenture or Debentures presented, a new Debenture or Debentures of an equal aggregate principal amount in any authorized denomination or denominations will be delivered as directed by the transferor, in the case of a transfer or as directed by the registered holder in the case of an exchange.

12 . The Municipality shall issue and deliver Debentures in exchange for or in substitution for Debentures outstanding on the registry with the same maturity and of like form in the event of a mutilation, defacement, loss, mysterious or unexplainable disappearance, theft or destruction, provided that the applicant shall have: (a) paid such costs as may have been incurred in connection therewith; (b) (in the case of a mutilated, defaced, lost, mysteriously or unexplainably missing, stolen or destroyed Debenture) furnished the Municipality with such evidence (including evidence as to the certificate number of the Debenture in question) and an indemnity in respect thereof satisfactory to the Municipality in its discretion; and (c) surrendered to the Municipality any mutilated or defaced Debentures in respect of which new Debentures are to be issued in substitution.

13. The Debentures issued upon any registration of transfer or exchange or in substitution for any Debentures or part thereof shall carry all the rights to interest if any, accrued and unpaid which were carried by such Debentures or part thereof and shall be so dated and shall bear the same maturity date and, subject to the provisions of the By-law, shall be subject to the same terms and conditions as the Debentures in respect of which the transfer, exchange or substitution is effected.

14. The cost of all transfers and exchanges, including the printing of authorized denominations of the new Debentures, shall be borne by the Municipality. When any of the Debentures are surrendered for transfer or exchange the Treasurer of the Municipality shall: (a) in the case of an exchange, cancel and destroy the Debentures surrendered for exchange; (b) in the case of an exchange, certify the cancellation and destruction in the registry; (c) enter in the registry particulars of the new Debenture or Debentures issued in exchange; and ( d) in the case of a transfer, enter in the registry particulars of the registered holder as directed by the transferor.

15 . Reasonable fees for the substitution ofa new Debenture or new Debentures for any of the Debentures that are mutilated, defaced, lost, mysteriously or unexplainably disappeared, stolen, or destroyed and for the replacement of mutilated, defaced, lost, stolen, mysteriously or unexplainably disappeared or destroyed principal and interest cheques may be imposed by the Municipality. Where new Debentures are issued in substitution in these circumstances the Municipality shall: (a) treat as cancelled and destroyed the

16

Debentures in respect of which new Debentures will be issued in substitution; (b) certify the deemed cancell at ion and destruction in the registry; (c) enter in the registry particulars of the new Debentures issued in substitution; and ( d) make a notation of any indemnities provided.

If OILC elects to terminate its obligations under the financing agreement entered into between the Municipality and OILC pursuant to which the Debentures are iss ued, OILC, at its discretion, shall assess any losses that it may incur as a result of the termination as follows: if on the date of termination the outstanding principal balance on the Debentures is less than the net present value of the Debentures, the Municipality shall pay the difference between these two amounts to OILC.

Notices 17. Except as otherwise expressly provided herein, any notice required to be given to a

registered holder of one or more of the Debentures wi ll be sufficiently given if a copy of such notice is mailed or otherwise delivered to the registered address of such registered holder. If the Municipality or any registered holder is required to give any notice in connection with the Debentures on or before any day and that day is not a Toronto Business Day (as defined in section 10 of these Conditions) then such notice may be given on the next following Toronto Business Day.

18. Unless otherwise expressly provided herein, any reference herein to a time shall be considered to be a reference to Toronto time.

Governing Law

19. The Debentures are governed by and shall be construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable in Ontario.

Definitions:

(a) "Prime Rate" means, on any day, the amrnal rate of interest which is the arithmetic mean of the prime rates announced from time to time by the following five major Canadian Schedule I banks, as of the issue date of this Debenture: Royal Bank of Canada; Canadian Imperial Bank of Commerce; The Bank of Nova Scotia; Bank of Montreal; and The Toronto-Dominion Bank (the "Reference Banks") as their reference rates in effect on such day for Canadian dollar commercial loans made in Canada. If fewer than five of the Reference Banks quote a prime rate on such days, the "Prime Rate" shall be the arithmetic mean of the rates quoted by the remaining Reference Banks.



FROM: Kathie Blake Corporate Services & Long Tenn Care - Financial Services

DATE: 10/18/2016

SUBJECT: BL 144/2016 - A By-law to Authorize the Borrowing Upon Serial Debentures


By-law Description: A By-law to authorize the borrowing upon serial debentures in the principal amount of $5, 7 43 ,948.23 towards the cost of certain capital works described in schedule "A" to this by-law.

Authorization: Report 2014.019 (Accounting & Budgets) - Committee of the Whole - March 24, 2014.

By-law Explanation: The purpose of this by-law is to auth01ize borrowing towards the cost of certain capital works of The Corporation of the City of Thunder Bay.



Recitals


A By-law to authorize the borrowing upon serial debentures in the principal amount of $5,743,948 .23 towards the cost of certain capital works described in schedule "A" to this by-law.

1. Subsection 401 (1) of the Municipal Act, 2001, as amended (the "Act") provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other

way, and may issue debentures and prescribed financial instruments and enter prescribed financial

agreements for or in relation to the debt.

2. Subsection 408 (2.1) of the Act provides that a nnmicipality may issue a debenture or other

financial instmment for long-term borrowing only to provide financing for a capital work.

3. The Council ofThe Corporation of the City of Thunder Bay (the "Municipality'') has passed

the By-laws enumerated in column (1) of Schedule "A" attached hereto and forming part of this By

law ("Schedule "A") authorizing the capital work described in column (2) of Schedule "A" (the

"Capital Work"), and authorizing the entering into of a Financing Agreement dated and effective as

of the 24th day of June, 2015 for the provision of temporary and long-term borrowing from the

Ontario Infrastrncture and Lands Corporation ("OILC") in respect of the Capital Work (the

"Financing Agreement") and the Municipality desires to issue debentures for the Capital Work in

the amount specified in column (5) of Schedule "A".

4. Before authorizing the Capital Work and before authorizing an additional cost amount and

an additional debenture authority in respect thereof, the Council of the Municipality had its

Treasurer calculate an updated limit in respect of its most recent annual debt and financial

obligation limit received from the Ministry of Municipal Affairs and Housing (now the Ministry of

Municipal Affairs) in accordance with the applicable regulation and, prior to the Council of the

Municipality authorizing the Capital Work, such additional cost amotmt and such additional

debenture authority, the Treasurer determined that the estimated annual amount payable in respect

of the Capital Work, such additional cost amount and such additional debenture authority, would

not cause the Municipality to exceed the updated limit and that the approval of the Capital Work,

such additional cost amount and such additional debenture authority by the Ontario Municipal

Board pursuant to such regulation was not required.

5. The Municipality has submitted an application to OILC for long-term borrowing through the

issue of debentures to OILC in respect of the Capital Work (the "Application") and the Application

has been approved.

6. To provide long-term financing for the Capital Work and to repay certain temporary

advances in respect of the Capital Work made by OILC pursuant to the Financing Agreement, it is

now deemed to be expedient to issue serial debentures in the principal amount of $5,743,948.23


http:5,743,948.23http:5,743,948.23

dated December 15, 2016 and maturing on December 15, 2026 and payable in semi-annual installments of combined principal and interest on the 15th day of June and on the 15th day of December in each of the years 2017 to 2026, both inclusive on the terms hereinafter set forth.

ACCORDINGLY, THE COUNCIL OF THE CORPORATION OF THE CITY OF THUNDER BAY ENACTS AS FOLLOWS:

1. For the Capital Work, the borrowing upon the credit of the Municipality at large of the principal amount of $5,743,948.23 and the issue of serial debentures therefor to be repaid in semiannual instalments of combined principal and interest as hereinafter set forth, are hereby authorized.

2. The Mayor and the Treasurer of the Municipality are hereby authorized to cause any number of serial debentures to be issued for such amounts of money as may be required for the Capital Work in definitive fonn, not exceeding in total the said principal amount of $5,743,948.23 (the "Debentures"). The Debentures shall bear the Municipality's municipal seal and the signatures of the Mayor and the Treasurer of the Municipality, all in accordance with the provisions of the Act. The municipal seal of the Municipality and the signatures referred to in this section may be printed, lithographed, engraved or otherwise mechanically reproduced. The Debentures are sufficiently signed if they bear the required signatures and each person signing has the authority to do so on the date he or she signs.

3. The Debentures shall be in fully registered form as one or more certificates in the principal amount of $5,743,948.23, in the name of OILC, or as OILC may othe1wise direct, substantially in the form attached as Schedule "B" hereto and forming part of this By-law with provision for payment of principal and interest (other than in respect of the final payment of p1incipal and outstanding interest on matu1ity upon presentation and surrender) by pre-authorized debit in respect of such principal and interest to the credit of such registered holder on such terms as to which the registered holder and the Municipality may agree.

4. In accordance with the provisions of section 25 of the Ontario Infrastructure and Lands Corporation Act, 2011, as amended from time to time hereafter, as security for the payment by the Municipality of the indebtedness of the Municipality to OILC under the Debentures (the "Obligations"), the Municipality is hereby auth01ized to agree in writing with OILC that the Minister of Finance is entitled, without notice to the Municipality, to deduct from money appropriated by the Legislative Assembly of Ontario for payment to the Municipality, amounts not exceeding the amounts that the Municipality fails to pay OILC on account of the Obligations and to pay such amounts to OILC from the Consolidated Revenue Fund.

5. The Debentures shall all be dated the 15th day of December, 2016, and as to both principal and interest shall be expressed and be payable in lawful money of Canada. The Debenhll'es shall bear interest at the rate of 2.52% per annmn and mature during a period of 10 years from the date thereof payable semi-annually in arrears as described in this section. The Debentures shall be paid in full by December 15, 2026 and be payable in semi-annual instalments of combined equal principal and diminishing interest amounts on the 15th day of June and on the 15th day of December in each of the years 2017 to 2026, both inclusive, save and except for the last principal instalment which is slightly increased from the preceding equal principal instalments, as set forth in Schedule "C" attached hereto and fanning part of this By-law ("Schedule "C").

6. Payments in respect of principal of and interest on the Debentures shall be made only on a Page 2 By-Law No. Agenda Item BL 144/2016

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day on which banking institutions in Toronto, Ontario, are not autho1ized or obligated by law or executive order to be closed (a "Toronto Business Day'') and if any date for payment is not a Toronto Business Day, payment shall be made on the next following Toronto Business Day.

7. Interest shall be payable to the date of maturity of the Debentures and on default shall be payable on any overdue amounts both before and after default and judgment at a rate per annum equal to the greater of the rate specified on the Schedule as attached to and fanning paii of the Debentures for such amounts plus 200 basis points or Prime Rate (as defined below) plus 200 basis points, calculated on a daily basis from the date such amounts become overdue for so long as such amounts remain overdue and the Municipality shall pay to the registered holders any and all costs incurred by the registered holders as a result of the overdue payment. Any amounts payable by the Municipality as interest on overdue principal or interest and all costs incurred by the registered holders as a result of the overdue payment in respect of the Debentures shall be paid out of current revenue. Whenever it is necessary to compute any amount of interest in respect of the Debentures for a period of less than one full year, other than with respect to regular semi-annual interest payments, such interest shall be calculated on the basis of the actual number of days in the pe1iod and a year of 365 days or 366 days as appropriate.

"Prime Rate" means, on any day, the amrnal rate of interest which is the arithmetic mean of the prime rates announced from time to time by the following five major Canadian Schedule I banks, as of the issue date of this Debenhlfe: Royal Barik of Canada; Canadian Imperial Barik of C01mnerce; The Barik of Nova Scotia; Barik of Montreal; and The Toronto-Dominion Bartl

Debenture is registered in more than one name, the principal of and interest from time to time payable on such Debenture shall be paid to or to the order of all the joint registered holders thereof, failing written instrnctions to the contrary from all such joint registered holders, and such payment shall constih1te a valid discharge to the Municipality. In the case of the death of one or more joint registered holders, despite the foregoing provisions of this section, the principal of and interest on any Debenhlfes registered in their names may be paid to the survivor or survivors of such holders and such payment shall constitute a valid discharge to the Municipality.

12. The Debenhlfes will be transferable or exchangeable at the office of the Treasurer of the Municipality upon presentation for such purpose accompanied by an instrnment of transfer or exchange in a fonn approved by the Municipality and which form is in accordance with the prevailing Canadian transfer legislation and practices, executed by the registered holder thereof or such holder's duly authorized attorney or legal personal representative, whereupon and upon registration of such transfer or exchange and cancellation of the Debenture or Debentures presented, the Mayor and the Treasurer shall issue and deliver a new Debenture or Debentures of an equal aggregate principal amount in any authorized denomination or denominations as directed by the transferor, in the case of a transfer or as directed by the registered holder in the case of an exchange.

13. The Mayor and the Treasurer shall issue and deliver new Debentures in exchange or substitution for Debentures outstanding on the registry with the same maturity and of like fonn which have become mutilated, defaced, lost, subject to a mysterious or unexplainable disappearance, stolen or destroyed, provided that the applicant therefor shall have: (a) paid such costs as may have been incurred in connection therewith; (b) (in the case when a Debenture is mutilated, defaced, lost, myste1iously or unexplainably missing, stolen or destroyed) furnished the Municipality with such evidence (including evidence as to the certificate number of the Debenture in question) a:nd an indemnity in respect thereof satisfactory to the Municipality in its discretion; and (c) surrendered to the Municipality any mutilated or defaced Debentures in respect of which new Debentures are to be issued in substitution.

14. The Debenhlfes issued upon any registration of transfer or exchange or in substih1tion for any Debenhlfes or part thereof shall can-y all the rights to interest if any, accrned and unpaid which were carried by such Debentures or part thereof and shall be so dated and shall bear the same mah1rity date and, subject to the provisions of this By-law, shall be subject to the same terms and conditions as the Debentures in respect of which the transfer, exchange or substitution is effected.

15. The cost of all transfers and exchanges, including the printing of authorized denominations of the new Debenhlfes, shall be borne by the Municipality. When any of the Debentures are surrendered for transfer or exchange the Treasurer of the Municipality shall: (a) in the case of an exchange, cancel and destroy the Debentures surrendered for exchange; (b) in the case of an exchange, certify the cancellation and destruction in the registry; ( c) enter in the registry particulars of the new Debenhlfe or Debenhlfes issued in exchange; and ( d) in the case of a transfer, enter in the registry particulars of the registered holder as directed by the transferor.

16. Reasonable fees in respect of the Debentures, in the normal course of business, other than reasonable fees for the substitution of a new Debenture or new Debentures for any of the Debentures that are mutilated, defaced, lost, mysteriously or tmexplainably missing, stolen or destroyed and for the replacement of any of the principal and interest cheques (if any) that are mutilated, defaced, lost, mysteriously or unexplainably missing, stolen or destroyed. When new Debentures are issued in substih1tion in these circumstances the Municipality shall: (a) treat as

Page4 By-Law No. Agenda Item BL 144/2016

cancelled and destroyed the Debentures in respect of which new Debentures will be issued in substitution; (b) certify the deemed cancellation and destruction in the registry; (c) enter in the registry particulars of the new Debentures issued in substitution; and ( d) make a notation of any indemnities provided.

17. Except as otherwise expressly provided herein, any notice required to be given to a registered holder of one or more of the Debenhlfes will be sufficiently given if a copy of such notice is mailed or otherwise delivered to the registered address of such registered holder.

18. The Mayor and the Treasurer are hereby authorized to cause the Debentures to be issued, one or more of the Clerk and Treasurer are hereby authorized to generally do all things and to execute all other documents and other papers in the name of the Municipality in order to carry out the issue of the Debenhlfes and the Treasurer is auth01ized to affix the Municipality's municipal seal to any of such documents and papers.

19. The money received by the Municipality from the sale of the Debentures to OILC, including any premium, and any earnings de1ived from the investment of that money, after providing for the expenses related to their issue, if any, shall be apportioned and applied to the Capital Work and to no other purpose except as pennitted by the Act.

20. Subject to the Municipality's investment policies and goals, the applicable legislation and the tenns and conditions of the Debenhlfes, the Municipality may, if not in default under the Debentures, at any time purchase any of the Debentures in the open market or by tender or by private contract at any price and on such terms and conditions (including, without limitation, the manner by which any tender offer may be communicated or accepted and the persons to whom it may be addressed) as the Municipality may in its discretion detennine.

21. This By-law shall come into force and take effect on the date it is passed.

Enacted and passed this 5th day of December, A.D. 2016 as witnessed by the Seal of the Corporation and the hands of its proper Officers.

Keith Hobbs, Mayor

John S. Hannam, City Clerk


Schedule "A"

(I) (2) (3) (4) (5) (6)

Approved

By-law Project

Description

Amount to be Financed

Through the Issue of

Debentures

Amount of Debentures Previously

Issued

Amount of Debentures to

be Issued

Term of Years of

Debentures

022-2014 Capital costs in $8,200,000.00 Nil $5,743,948.23 10 40/20 15 connection with

the Municipal Roads Infrastructure -improvements to Golf Links Road and Junot Avenue project (Phase 2A)

TOTAL $5, 7 43,948.23

Schedule "B"

No. OILC2016-04 $5,743,948.23

CANADA

Province of Ontario

THE CORPORATION OF THE CITY OF THUNDER BAY

FULLY REGISTERED 2.52% SERIAL DEBENTURE THE CORPORATION OF THE CITY OF THUNDER BAY (the "Municipality"), for value received, hereby promises to pay to

ONT ARIO INFRASTRUCTURE AND LANDS CORPORATION ("OILC")

or registered assigns, subject to the Conditions attached hereto which form part hereof (the "Conditions"), upon presentation and sutTender of this debenture (or as otherwise agreed to by the Municipality and OILC) by the maturity date of this debenture (December 15, 2026), the principal amount of

FIVE MILLION, SEVEN HUNDRED FORTY-THREE THOUSAND, NINE HUNDRED FORTY-EIGHT DOLLARS AND TWENTY-THREE CENTS

----------------------------------- ($5, 7 43 ,948.23) --------------------------------

by semi-annual instalments of combined equal principal and diminishing interest amo unts on the 15th day of June and on the 15th day of December in each of the years 2017 to 2026, both inclusive, save and except for the last principal instalment which is slightly increased from the preceding equal principal instalments, in the amounts set fo1ih in the attached Loan Amortization Schedule (the "Amortization Schedule") and subject to late payment interest charges pursuant to the Conditions, in lawful money of Canada. Subject to the Conditions, interest shall be paid until the maturity date of this debenture, in like money in semi-annual payments from the closing date, or from the last date on which interest has been paid on this debenture, whichever is later, at the rate of 2.52% per annum, in anears, on the specified dates, as set forth in the Amortization Schedule. Interest shall be paid on default at the applicable rate set out in the Amortization Schedule both before and after default and judgment. The payments of principal and interest and the outstanding amount of principal in each year are shown in the Am01iization Schedule.

The Municipality, pursuant to section 25 of the Ontario Infrastructure and Lands Corporation Act, 201 I (the "OILC Act, 201 1") hereby irrevocably agrees that the Minister of Finance is entitled, without notice to the Municipality, to deduct from money appropriated by the Legislative Assembly of Ontario for payment to the Municipality, amounts not exceeding any amounts that the Municipality fails to pay OILC on account of indebtedness evidenced by this debenture, and to pay such an1otmts to OILC from the Consolidated Revenue Fund.

This debenture is subject to the Conditions.

DATED at the City of Thunder Bay as at the 15th day of December, 2016

IN TESTIMONY WHEREOF and under the authority of By-law Number BL 144/2016 of the Municipality duly passed on the 5th day of December, 2016 (the "By-law"), this debenture is sealed with the municipal seal of the Municipality and signed by the Mayor and by the Treasurer thereof.

Date of Registration: December 15, 2016

(Seal)

Keith Hobbs, Mayor Rob Colquhoun, Treasurer

http:5,743,948.23

---- ---------- --------------- --------------- --------------- --------------- -------------------

-------------- -------------- -------------- ------------------


Name ..... : Thunder Bay, The Corporation of the City of Principal: $5,743,948.23 Rate .. ... : 02.5200% Term .... . : 120 Paid ..... : Semi-annual Matures.. : 12/15/2026

Pay# Date Amount Due Principal Due Interest Due Rem . Principal

$ $ $ $ 1 06/15/2017 359,372.86 287,197.40 72,175 .46 5,456,750.60 2 12/15/ 2017 356,140.83 287,197.40 68,943.43 5,169,553.20 3 06/15/2018 352,155.31 287,197.40 64,957.91 4,882,355.80 4 12/15/2018 348,883.62 287,197.40 61,686.22 4,595,158.40 5 06/15/2019 344,937.77 287,197.40 57,740.37 4,307,961.00 6 12/15/2019 341,626.42 287,197.40 54,429 .02 4,020, 763.60 7 06/15/2020 337,997.82 287,197.40 50,800.42 3, 733,566.20 8 12/15/2020 334,369.22 287,197.40 47,171.82 3,446,368.80 9 06/15/2021 330,502.68 287,197.40 43,305.28 3,159,171.40 10 12/15/ 2021 327,112.02 287,197.40 39,914.62 2,871,974.00 11 06/15/2022 323,285.13 287,197.40 36,087.73 2,584, 776.60 12 12/15/2022 319,854.81 287,197.40 32,657.41 2,297,579.20 13 06/15/2023 316,067.58 287,197.40 28,870.18 2,010,381.80 14 12/15/2023 312,597. 61 287,197.40 25,400.21 1, 723, 184.40 15 06/15/2024 308,969 .01 287,197.40 21,771.61 1,435,987 .OD 16 12/15/2024 305,340.41 287,197.40 18,143.01 1,148,789.60 17 06/15/2025 301,632.49 287,197.40 14,435.09 861,592.20 18 12/15/2025 298,083.20 287,197.40 10,885 .80 574,394.80 19 06/15/ 2026 294,414.95 287,197.40 7,217.55 287,197.40 20 12/15/2026 290,826.23 287,197.63 3,628.60 0.00

6,504,169.97 5,743,948.23 760,221.74

http:760,221.74http:5,743,948.23http:6,504,169.97http:3,628.60http:287,197.63http:290,826.23http:287,197.40http:7,217.55http:287,197.40http:294,414.95http:574,394.80http:10,885.80http:287,197.40http:298,083.20http:861,592.20http:14,435.09http:287,197.40http:301,632.49http:1,148,789.60http:18,143.01http:287,197.40http:305,340.41http:21,771.61http:287,197.40http:308,969.01http:25,400.21http:287,197.40http:312,597.61http:2,010,381.80http:28,870.18http:287,197.40http:316,067.58http:2,297,579.20http:32,657.41http:287,197.40http:319,854.81http:36,087.73http:287,197.40http:323,285.13http:2,871,974.00http:39,914.62http:287,197.40http:327,112.02http:3,159,171.40http:43,305.28http:287,197.40http:330,502.68http:3,446,368.80http:47,171.82http:287,197.40http:334,369.22http:733,566.20http:50,800.42http:287,197.40http:337,997.82http:54,429.02http:287,197.40http:341,626.42http:4,307,961.00http:57,740.37http:287,197.40http:344,937.77http:4,595,158.40http:61,686.22http:287,197.40http:348,883.62http:4,882,355.80http:64,957.91http:287,197.40http:352,155.31http:5,169,553.20http:68,943.43http:287,197.40http:356,140.83http:5,456,750.60http:72,175.46http:287,197.40http:359,372.86http:5,743,948.23

OILC hereby agrees that the Minister of Finance is entitled to exercise certain rights of deduction pursuant to section 25 of the OILC Act, 2011 as described in this debenture.

Ontario Infrastructure and Lands Corporation

by: _____________ by:________________

Authorized Signing Officer Authorized Signing Officer

LEGAL OPINION

We have examined the By-law of the Municipality authorizing the issue of serial debentures in the principal amount of $5 ,743 ,948.23 dated December 15, 2016 and maturing on December 15, 2026 in semi-annual instalments of combined equal principal and diminishing interest amounts on the 15th day of June and on the 15th day of December in each of the years 2017 to 2026, both inclusive, save and except for the last principal instalment which is slightly increased from the preceding equal principal instalments, as set out in Schedule "C" to the By-law.

In our opinion, the By-law has been properly passed and is within the legal powers of the Municipality. The debenture issued under the By-law in the within form (the "Debenture") is the direct, general, unsecured and unsubordinated obligation of the Municipality. The Debenture is enforceable against the Municipality subject to the special jurisdiction and powers of the Ontario Municipal Board over defaulting municipalities under the 1\i!1111icipal Affairs Act. This opinion is subject to and incorporates all the assumptions, qualifications and limitations set out in our opinion letter.

December 15 , 2016

WeirFoulds LLP

http:5,743,948.23

CONDITIONS OF THE DEBENTURE

Form, Denomination, and Ranking of the Debenture

I. The debentures issued pursuant to the By-law (collectively the "Debentures" and individually a "Debenture") are issuable as fully registered Debentures without coupons.

2. The Debentures are direct, general, unsecured and unsubordinated obligations of the Municipality. The Debentures rank concurrently and equally in respect of payment of principal and interest with all other debentures of the Municipality except for the avai labi lity of money in a sinking or retirement fund for a particular issue of debentures.

3. This Debenture is one fully registered Debenture registered in the name of OILC and held by OILC.

Registration

4. The Municipality shall maintain at its designated office a registry in respect of the Debentures in which shall be recorded the names and the addresses of the registered holders and particulars of the Debentures held by them respectively and in which particulars of the transfers, exchanges and substitutions of Debentures, may be recorded and the Municipality is authorized to use electronic, magnetic or other media for records of or related to the Debentures or for copies of them.

Title 5. The Municipality shall not be bound to see to the execution of any trust affecting the

ownership of any Debenture or be affected by notice of any equity that may be subsisting in respect thereof. The Municipality shall deem and treat registered holders of Debentures, including this Debenture, as the absolute owners thereof for all purposes whatsoever notwithstanding any notice to the contrary and all payments to or to the order of registered holders shall be valid and effectual to discharge the liability of the Municipality on the Debentures to the extent of the amount or amounts so paid. Where a Debenture is registered in more than one name, the principal of and interest from time to time payable on such Debenture shall be paid to or to the order of all the joint registered holders thereof, failing written instructions to the contrary from all such joint registered holders, and such payment shall constitute a valid discharge to the Municipality. In the case of the death of one or more joint registered holders, despite the foregoing provisions of this section, the principal of and interest on any Debentures registered in their names may be paid to the survivor or survivors of such holders and such payment shall constitute a valid discharge to the Municipality.

Pavments of Principal and Interest

6. The record date for purposes of payment of principal of and interest on the Debentures is as of 5 :00 p.m. on the sixteenth calendar day preceding any Payment Date including the maturity date. Principal of and interest on the Debentures are payable by the Municipality to the persons registered as holders in the registry on the relevant record date. The Municipality shall not be required to register any transfer, exchange or substitution of Debentures during the period from any record date to the corresponding Payment Date.

7. The Municipality shall make all payments in respect of semi-annual instalments of combined equal principal and diminishing interest amounts including the last 'non-equal' principal instalment, on the Debentures on the 15th day of June and the 15th day of December commencing on June 15, 2017 and ending on December 15, 2026, as set out in Schedule "C" to the By-law, by pre-authorized debit in respect of such interest and principal to the credit of the registered holder on such terms as the registered holder may agree.

8. The Municipality shall pay to the registered holder interest on any overdue amount of

principal or interest in respect of any Debenture, both before and after default and judgment, at a rate per annum equal to the greater of the rate specified on the Schedule as attached to and forming part of the Debenture for such amount plus 200 basis points or Prime Rate (as defined below) plus 200 basis points, calculated on a daily basis from the date such amount becomes overdue for so long as such amount remains overdue and the Municipality shall pay to the registered holder any and all costs incurred by the registered holder as a result of the overdue payment.

9. Whenever it is necessary to compute any amount of interest in respect of the Debentures for a period of less than one full year, other than with respect to regular semi-annual interest payments, such interest shall be calculated on the basis of the actual number of days in the period and a year of365 days or 366 days as appropriate.

I0. Payments in respect of principal of and interest on the Debentures shall be made only on a day on which banking institutions in Toronto, Ontario, are not authorized or obligated by law or executive order to be closed (a "Toronto Business Day"), and if any date for payment is not a Toronto Business Day, payment shall be made on the next following Toronto Business Day as noted on the Amortization Schedule.

11. The Debentures are transferable or exchangeable at the office of the Treasurer of the Municipality upon presentation for such purpose accompanied by an instrument of transfer or exchange in a fo1m approved by the Municipality and which form is in accordance with the prevailing Canadian transfer legislation and practices, executed by the registered holder thereof or such holder's duly authorized attorney or legal personal representative, whereupon and upon registration of such transfer or exchange and cancellation of the Debenture or Debentures presented, a new Debenture or Debentures of an equal aggregate principal amount in any authorized denomination or denominations will be delivered as directed by the transferor, in the case of a transfer or as directed by the registered holder in the case of an exchange.

12. The Municipality shall issue and deliver Debentures in exchange for or in substitution for Debentures outstanding on the registry with the same mah1rity and of like form in the event of a mutilation, defacement, loss, mysterious or unexplainable disappearance, theft

or destruction, provided that the applicant shall have: (a) paid such costs as may have been incurred in connection therewith; (b) (in the case of a mutilated, defaced, lost, mysteriously or unexplainably missing, stolen or destroyed Debenture) furnished the Municipality with such evidence (including evidence as to the ce1iificate number of the Debenhire in question) and an indemnity in respect thereof satisfactory to the Municipality in its discretion; and (c) surrendered to the Municipality any mutilated or defaced Debentures in respect of which new Debentures are to be issued in substitution.

13 . The Debentures issued upon any registration of transfer or exchange or in substitution for any Debentures or paii thereof shall cai-ry all the rights to interest if any, accrued and unpaid which were carried by such Debentures or part thereof and shall be so dated and shall bear the same maturity date and, subject to the provisions of the By-law, shall be subject to the saine terms and conditions as the Debentures in respect of which the transfer, exchange or substitution is effected.

14. The cost of all transfers and exchanges, including the printing of authorized denominations of the new Debentures, shall be borne by the Municipality. When any of the Debentures are surrendered for transfer or exchange the Treasurer of the Municipality shall: (a) in the case of an exchange, cancel and destroy the Debentures sunendered for exchange; (b) in the case of an exchai1ge, certify the cancellation and destruction in the registry; (c) enter in the registry particulars of the new Debenture or Debentures issued in exchange; and (d) in the case of a transfer, enter in the registry particulars of the registered holder as directed by the transferor.

15. Reasonable fees for the substitution ofa new Debenture or new Debentures for any of the Debenh1res that are mutilated, defaced, lost, mysteriously or unexplainably disappeared, stolen, or destroyed and for the replacement of mutilated, defaced, lost, stolen, mysteriously or unexplainably disappeared or destroyed principal and interest cheques may be imposed by the Municipality. Where new Debenhtres are issued in substihttion

16

in these circumstances the Municipality shall: (a) treat as cancelled and destroyed the Debentures in respect of which new Debentures will be issued in substitution; (b) certify the deemed cancellation and destruction in the registry; (c) enter in the registry particulars of the new Debentures issued in substitution; and (d) make a notation of any indemnities provided.

If OILC elects to terminate its obligations under the financing agreement entered into between the Municipality and OILC pursuant to which the Debentures are issued, OILC, at its discretion, shall assess any losses that it may incur as a result of the termination as follows: ifon the date of termination the outstanding principal balance on the Debentures is less than the net present value of the Debentures, the Municipality shall pay the difference between these two amounts to OILC.

Notices 17. Except as otherwise expressly provided herein, any notice required to be given to a

registered holder of one or more of the Debentures will be sufficiently given ifa copy of such notice is mailed or otherwise delivered to the registered address of such registered holder. If the Municipality or any registered holder is required to give any notice in connection with the Debentures on or before any day and that day is not a Toronto Business Day (as defined in section 10 of these Conditions) then such notice may be given on the next following Toronto Business Day.

18. Unless otherwise expressly provided herein, any reference herein to a time shall be considered to be a reference to Toronto time.

Governing Law

19. The Debentures are governed by and shall be construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable in Ontario.

Definitions:

(a) "Prime Rate" means, on any day, the annual rate of interest which is the arithmetic mean of the prime rates announced from time to time by the following five major Canadian Schedule I banks, as of the issue date of this Debenture: Royal Bank of Canada; Canadian Imperial Bank of Commerce; The Bank of Nova Scotia; Bank of Montreal; and The Toronto-Dominion Bank (the "Reference Banks") as their reference rates in effect on such day for Canadian dollar commercial loans made in Canada. Iffewer than five of the Reference Banks quote a prime rate on such days, the "Prime Rate" shall be the arithmetic mean of the rates quoted by the remaining Reference Banks.

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Schedule "C"


Name ..... : Thunder Bay, The Corporation of the City of Principal: $5,743,948 .23 Rate ..... : 02.5200% Term ..... : 120 Paid ..... : Semi-annual Matures.. : 12/15/2026

Pay# Date Amount Due Principal Due Interest Due Rem. Principal ----- ---------- --------------- --------------- --------------- --------------- ------------------

$ $ $ $ 1 06/15/2017 359,372.86 287,197.40 72,175.46 5,456,750.60 2 12/15/2017 356,140.83 287,197.40 68,943.43 5,169,553.20 3 06/15/2018 352,155.31 287,197.40 64,957.91 4,882,355.80 4 12/15/2018 348,883.62 287,197.40 61,686 .22 4,595,158.40 5 06/15/2019 344,937.77 287,197.40 57,740.37 4,307,961 .00 6 12/15/2019 341,626.42 287,197.40 54,429.02 4,020, 763.60 7 06/15/2020 337,997.82 287,197.40 50,800.42 3,733,566.20 8 12/15/2020 334,369.22 287,197.40 47,171.82 3,446,368.80 9 06/15/2021 330,502.68 287,197.40 43,305.28 3,159,171.40 10 12/15/2021 327,112.02 287,197.40 39,914.62 2,871,974.00 11 06/15/2022 323,285.13 287,197.40 36,087.73 2,584, 776.60 12 12/15/2022 319,854.81 287,197.40 32,657.41 2,297,579 .20 13 06/15/2023 316,067.58 287,197.40 28,870.18 2,010,381.80 14 12/15/2023 312,597 .61 287,197.40 25,400.21 1,723,184.40 15 06/15/2024 308,969.01 287,197.40 21,771.61 1,435,987.00 16 12/15/2024 305,340.41 287,197.40 18,143.01 1,148,789 .60 17 06/15/2025 301,632.49 287,197.40 14,435.09 861,592.20 18 12/ 15/2025 298,083 .20 287,197.40 10,885 .80 574,394.80 19 06/15/2026 294,414.95 287,197.40 7,217 .55 287,197.40 20 12/15/2026 290,826.23 287,197 .63 3,628.60 0.00

6,504,169 .97 5,743,948 .23 760,221.74

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FROM: Kathie Blake Corporate Services & Long Term Care - Financial Services

DATE: 10/18/2016

SUBJECT: BL 145/2016 - A By-law to Authorize the Borrowing Upon Serial Debentures


By-law Description: A By-law to authorize the borrowing upon serial debentures in the principal amount of $2,220,600.04 towards the cost of certain capital works described in schedule "A" to this by-law.

Authorization: Report 2008.007 (C01mnunity Services) - Committee of the Whole - January 14, 2008.

By-law Explanation: The purpose of this by-law is to authorize borrowing towards the cost of certain capital works of The Corporation of the City of Thunder Bay.



http:2,220,600.04

Recitals


A By-law to authorize the borrowing upon serial debentures in the principal amount of $2,220,600.04 towards the cost of certain capital works desc1ibed in schedule "A" to this by-law.

1. Subsection 401 (1) of the Municipal Act, 2001 , as amended (the "Act") provides that a

municipality may incur a debt for municipal purposes, whether by borrowing money or in any other

way, and may issue debentures and prescribed financial instruments and enter prescribed financial

agreements for or in relation to the debt.

2. Subsection 408 (2.1) of the Act provides that a municipality may issue a debenhlfe or other

financial instnunent for long-te1m borrowing only to provide financing for a capital work

3. The Council ofThe Corporation of the City of Thunder Bay (the "Municipality'') has passed

the By-laws enumerated in column (1) of Schedule "A" attached hereto and fanning part of this Bylaw ("Schedule "A") authorizing the capital work described in column (2) of Schedule "A" (the

"Capital Work"), and authorizing the entering into of a Financing Agreement dated and effective as

of the 16th day of September, 2016 for the provision of temporary and long-tenn borrowing from

the Ontario Infrastructure and Lands Corporation ("OILC") in respect of the Capital Work (the

"Financing Agreement") and the Municipality desires to issue debentures for the Capital Work in

the amount specified in column (5) of Schedule "A".

4. Before authorizing the Capital Work and before authorizing an additional cost amount and

an additional debenhlie authority in respect thereof, the Council of the Municipality had its

Treasurer calculate an updated limit in respect of its most recent annual debt and financial

obligation limit received from the Ministry of Municipal Affairs and Housing (now the Ministry of

Municipal Affairs) in accordance with the applicable regulation and, prior to the Council of the

Municipality authorizing the Capital Work, such additional cost amount and such additional

debenture authority, the Treasurer determined that the estimated annual amount payable in respect

of the Capital Work, such additional cost amount and such additional debenture authority, would

not cause the Municipality to exceed the updated limit and that the approval of the Capital Work, such additional cost amount and such additional debenture authority by the Ontario Municipal

Board pursuant to such regulation was not required.

5. The Municipality has submitted an application to OILC for long-term borrowing through the

issue of debentures to OILC in respect of the Capital Work (the "Application") and the Application

has been approved.

6. To provide long-tenn financing for the Capital Work and to repay ce1iain temporary

advances in respect of the Capital Work made by OILC pursuant to the Financing Agreement, it is

now deemed to be expedient to issue serial debentures in the principal amount of $2,220,600.04


http:2,220,600.04http:2,220,600.04

dated December 15, 2016 and maturing on December 15, 2036 and payable in semi-annual

installments of combined principal and interest on the 15th day of June and on the 15th day of

December in each of the years 2017 to 2036, both inclusive on the terms hereinafter set forth.

ACCORDINGLY, THE COUNCIL OF THE CORPORATION OF THE CITY OF

THUNDER BAY ENACTS AS FOLLOWS:

1. For the Capital Work, the borrowing upon the credit of the Municipality at large of the principal amolmt of $2,220,600.04 and the issue of serial debentures therefor to be repaid in semiannual instalments of combined principal and interest as hereinafter set forth, are hereby authorized.

2. The Mayor and the Treasurer of the Municipality are hereby authorized to cause any number of serial debentures to be issued for such amounts of money as may be required for the Capital Work in definitive form, not exceeding in total the said p1incipal amount of $2,220,600.04 (the "Debentures"). The Debentures shall bear the Municipality's municipal seal and the signatures of the Mayor and the Treasurer of the Municipality, all in accordance with the provisions of the Act. The municipal seal of the Municipality and the signatures referred to in this section may be printed, lithographed, engraved or otherwise mechanically reproduced. The Debentures are sufficiently signed if they bear the required signatures and each person signing has the authority to do so on the date he or she signs.

3. The Debentures shall be in fully registered fonn as one or more certificates in the principal amount of $2,220,600.04, in the name of OILC, or as OILC may otherwise direct, substantially in the form attached as Schedule "B" hereto and fonning part of this By-law with provision for payment of principal and interest (other than in respect of the final payment of principal and outstanding interest on mahnity upon presentation and surrender) by pre-authorized debit in respect of such p1incipal and interest to the credit of such registered holder on such tenns as to which the registered holder and the Municipality may agree.

4. In accordance with the provisions of section 25 of the Ontario Infrastructure and Lands Corporation Act, 2011, as amended from time to time hereafter, as security for the payment by the Municipality of the indebtedness of the Municipality to OILC under the Debentures (the "Obligations"), the Municipality is hereby authorized to agree in writing with OILC that the Minister of Finance is entitled, without notice to the Municipality, to deduct from money appropriated by the Legislative Assembly of Ontario for payment to the Municipality, amounts not exceeding the amounts that the Mlmicipality fails to pay OILC on account of the Obligations and to pay such amounts to OILC from the Consolidated Revenue Fund.

5. The Debenhlfes shall all be dated the 15th day of December, 2016, and as to both principal and interest shall be expressed and be payable in lawful money of Canada. The Debenhrres shall bear interest at the rate of 3.23% per annum and mahlfe during a period of 20 years from the date thereof payable semi-annually in aiTears as described in this section. The Debenhlfes shall be paid in full by December 15, 2036 and be payable in semi-annual instalments of combined equal principal and diminishing interest amounts on the 15th day of June and on the 15th day of December in each of the years 2017 to 2036, both inclusive, save and except for the last principal instalment which is slightly increased from the