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Gas Tax Agreement
CANADA-ONTARIO-ASSOCIATION OF MUNICIPALITIES OF ONTARIO-CITY OF TORONTO
AGREEMENT FOR THE TRANSFER OF FEDERAL GAS TAX REVENUES UNDER THE NEW DEAL FOR CITIES AND COMMUNITIES
PDF (436 KB)
This Agreement made as of June 17, 2005
BETWEEN: |
HER MAJESTY IN RIGHT OF CANADA, ("Canada") represented
by the Minister of State (Infrastructure and Communities) ("Federal Minister")
|
AND: |
HER MAJESTY IN RIGHT OF THE PROVINCE OF ONTARIO, ("Ontario")
represented by the Minister of Municipal Affairs and Housing ("Provincial
Minister") |
AND: |
THE ASSOCIATION OF MUNICIPALITIES OF ONTARIO ("AMO") represented
by the President |
AND: |
THE CITY OF TORONTO ("Toronto") represented by His Worship the
Mayor of Toronto |
PREAMBLE
WHEREASCanada, Ontario and Ontario municipalities, as represented
by AMO and Toronto, wish to cooperate in making a transformative difference
in the sustainability and future prosperity of cities and communities in Ontario
for Canada's future.
WHEREAS Canada's New Deal for Cities and Communities will: engage
governments, stakeholders and the citizens of Canada in purposeful partnerships;
foster vibrant, creative, prosperous and sustainable cities and communities
across Canada; and enable all Canadians to achieve a higher quality of life
and standard of living.
WHEREAS the Government of Canada's Budget 2005 outlined
an intent to provide provinces and territories an amount equivalent to a portion
of the federal excise tax on gasoline ("Gas Tax Funding").
WHEREAS this Agreement includes the specific provisions on the Gas
Tax for Environmentally Sustainable Municipal Infrastructure to primarily
support environmental sustainability objectives under Canada's New Deal for
Cities and Communities.
WHEREAS Canada, Ontario and Ontario municipalities, as represented
by AMO and Toronto, have agreed to cooperate in the future on shared objectives
under the New Deal for Cities and Communities which is based on a long-term
vision of sustainability and which integrates four interdependent dimensions:
economic, environmental, social and cultural. Canada, Ontario and Ontario
municipalities may enter into separate agreements, including possible bilateral
and trilateral agreements, to support sustainability objectives, including
economic, environmental, social and cultural sustainability.
WHEREASCanada, Ontario and Ontario municipalities, as represented
by AMO and Toronto, recognize that all governments must work together collaboratively
and in harmony to ensure that investments in communities are strategic, purposeful
and forward-looking.
WHEREASCanada, Ontario and Ontario municipalities, as represented
by AMO and Toronto, agree that open communication with the public will best
serve the right of Canadians to transparency, public accountability, and full
information about the benefits of New Deal investments in communities.
WHEREAS Ontario recognizes that Ontario municipalities are accountable,
mature governments that can ably represent the needs of their residents and
can work with the Government of Canada to determine the best way to use federal
gas tax revenues.
WHEREAS the Association of Municipalities of Ontario is a legally
incorporated entity under the Corporations Act (Ontario) representing
and acting in the interest of municipal government in Ontario.
AND WHEREAS Toronto is an incorporated municipality in Ontario established
by provincial statute.
THEREFORE the Parties agree as follows:
1. PRINCIPLES
The Parties agree to the following joint principles as governing their actions
with respect to this Agreement. These joint principles reflect both federal
principles and principles agreed to on November 12, 2004 by all provincial
and territorial ministers responsible for local government.
Principle 1 - Respect for jurisdiction: Canada, Ontario, AMO and Toronto
will respect the roles of all governments. Furthermore, the Parties recognize
the merit of full and meaningful partnerships across all governments to support
the New Deal.
Principle 2 - A flexible approach: In recognition of the diversity
of Canadian provinces and territories, regions, cities and communities, the
Parties agree that the framework for the delivery of gas tax funding in Ontario
will reflect the diversity of Ontario municipal governments, including Upper
and Lower tier Municipalities, where they exist.
Principle 3 - Equity: Canada is committed to treating provinces,
territories and municipal governments equitably.
Principle 4 - Focus on long-term solutions: The Parties recognize
the value of ongoing collaboration to address the needs of Canadian municipalities.
Principle 5 - Transparency: The Parties commit to an open and transparent
governance process for the purposes of implementing this agreement.
Principle 6 - Regular reporting to Canadians: Where possible, existing
mechanisms will be used to report on outcomes achieved with federal gas tax
funds. The Government of Canada may also create a new publication to report
to Canadians on the New Deal.
2. INTERPRETATION
-
Definitions
"Agreement" means this Canada - Ontario - AMO - Toronto agreement
for the Transfer of Federal Gas tax Revenue under the New Deal for Cities
and Communities.
"Annual Expenditure Report" means the annual report to be prepared
and delivered by AMO to Canada, more particularly described in Schedule D.
"Audit Report" means an audit report prepared for AMO by a licensed
auditor, more particularly described in Schedule D.
"Base Amount" means the total municipally-funded capital spending
on Municipal Infrastructure by Eligible Recipients in the period January 1st,
2000 to December 31st, 2004.
"Capacity Building Projects" means projects and activities that strengthen
the ability of Municipalities to develop and implement integrated community
sustainability plans, as more particularly described in Schedule A.
"Capital Investment Plan" means a document, such as a capital plan,
created through a public process, with approval from locally elected officials,
providing a detailed understanding of anticipated investments into tangible
capital assets that are considered "priorities", along with a rationale.
"Environmentally Sustainable Municipal Infrastructure (ESMI) Projects"
means Municipal Infrastructure projects that:
-
improve the quality of the environment and contribute to reduced greenhouse
gas emissions, clean water, or clean air; and
-
fall within the category of projects described in Schedule A hereto.
"Eligible Costs" means those costs described in Schedule B, incurred
in respect of Eligible Projects.
"Eligible Projects" means Capacity Building Projects and ESMI Projects.
"Eligible Recipient" means:
- a Municipality or its duly authorized agent (including its wholly owned
corporation);
-
a non-municipal entity, on the condition that the Municipality where
the proposed Eligible Project would be housed has indicated support for
the Eligible Project through a formal resolution of the Municipal council.
A non-municipal entity includes:
-
Local Roads Boards and Local Services Boards in territory not within
the jurisdiction of a Municipality.
Federal and provincial entities in the form of departments, corporations
and agencies are not eligible recipients.
"Eligible Recipient Requirement" means those requirements described
in Schedule C hereto.
"Federal Minister" means the Minister of State (Infrastructure and
Communities).
"Fiscal year" means the period beginning April 1 of a year and ending
March 31 of the following year.
"Funding Agreement" means an agreement made between AMO and an Eligible
Recipient pursuant to which Funds are paid to the Eligible Recipient.
"Funds" means the funds made available pursuant to this Agreement
and includes any interest earned on the said Funds.
"GTF" means the Gas Tax Fund Transfer Payment Program, pursuant to
which this Agreement is entered into.
"Infrastructure Programs" means Canada's infrastructure programs in
existence at the time of the execution of this Agreement including: The Canada
Strategic Infrastructure Fund, The Border Infrastructure Fund, The Municipal
Rural Infrastructure Fund and The Infrastructure Canada Program.
"Integrated Community Sustainability Plan" means a long-term plan,
developed in consultation with community members, that provides direction
for the community to realize sustainability objectives, including environmental,
culture, social and economic objectives, as defined in Schedule G.
"Large Municipalities" means those municipalities identified in Schedule
A.
"Local Roads Board" means a board as defined under theLocal Roads
Boards Act, RSO 1990, c.L27
"Local Services Board" means a board as defined under the Northern
Services Boards Act, RSO 1990, c.L28.
"Lower-tier Municipality" means a municipality that forms
part of an upper-tier Municipality for municipal purposes, as defined under
the Municipal Act, 2001 S.O. 2001 c.25.
"Municipal Infrastructure" means tangible capital assets in Ontario
primarily for public use or benefit owned by an Eligible Recipient.
"Municipality" and "municipalities" means every municipality
as defined under the Municipal Act, 2001 S.O. 2001 c.25
"New Deal" and "New Deal for Cities and Communities" refers
to the federal initiative to enhance Government of Canada commitments to advancing
local sustainability in four major dimensions: economic, environmental, social
and cultural.
"Outcomes Report" means the report to be delivered by AMO to Canada
and made available to the public, which reports on the outputs and outcomes
of the use of the Funds, using the Indicators, more particularly set out in
Schedule E.
"Parties" means Canada, Ontario, the AMO and Toronto.
"Provincial Minister" means the Minister of Municipal Affairs and
Housing.
"SIMSI" means Infrastructure Canada's Shared Information
Management System for Infrastructure.
"Third Party" means any person, other than a party to this Agreement
that participates in the implementation of an Eligible Project.
"Upper Tier Municipality" means a Municipality of which two or more
Lower-tier municipalities form part for municipal purposes, as defined under
the Municipal Act, 2001 S.O. 2001 c.25.
b) Entire Agreement
-
This Agreement supersedes and invalidates all other commitments, representations
and warranties relating to the subject matter hereof which the Parties may
have made either orally or in writing prior to the date hereof, and all
of which will become null and void from the date this Agreement is signed.
- Obligations imposed by this Agreement on each of the Parties are several
and not joint such that, for example, each party is responsible for its own
defaults and not for the defaults of other Parties.
c) Schedules
The following schedules are attached to form part of this Agreement:
Schedule A - Description of Eligible Project Categories
Schedule B - Eligible Costs
Schedule C - Eligible Recipient Requirements
Schedule D - Audit, Reporting and Evaluation
Schedule E - Outcome Indicators
Schedule F - Communications Protocol
Schedule G - Integrated Community Sustainability Plans
d) Precedence
In the event of a conflict, the part of this Agreement that precedes the
signature of the Parties will take precedence over the Schedules.
e) Accounting Principles
All accounting terms not otherwise defined herein have the meanings assigned
to them; all calculations will be made and all financial data to be submitted
will be prepared in accordance with generally accepted accounting principles
(GAAP) in effect in Canada and in Ontario. GAAP will include, without limitation,
those principles approved or recommended from time to time by the Canadian
Institute of Chartered Accountants or any successor institute, applied on
a consistent basis.
3. PURPOSE OF AGREEMENT
The purpose of this Agreement is to:
- provide a framework for the transfer of the Funds for the benefit of Ontario
communities for investment in environmentally sustainable infrastructure
(PART I);
- identify the specific roles and responsibilities of the Parties (PART II);
and
-
confirm the Parties' commitment to future co-operation under a New Deal
for Cities and Communities, based upon shared objectives, and which may
result in agreements that become parallel to this agreement or appended
as separate schedules (PART III).
PART I - GAS TAX FRAMEWORK
1 GAS TAX PURPOSE / OUTCOMES
a) Purpose
Gas Tax Funding will provide Ontario communities with a source of stable,
predictable and long-term funding towards Environmentally Sustainable Municipal
Infrastructure to help them address their infrastructure needs and meet sustainability
objectives. Gas Tax Funding is incremental to federal, provincial and municipal
infrastructure funding available to Municipalities and the 100% GST rebate
available to all Municipalities.
Gas Tax Funding will be used for investments in:
- Environmentally Sustainable Municipal Infrastructure (ESMI) Projects
-
Capacity Building Projects.
b) Outcomes
Gas Tax Funds will support the following environmental objectives:
- Reduced Greenhouse Gas (GHG) emissions
-
Cleaner water
-
Cleaner air
2 CONTRIBUTION PROVISIONS
a) Allocation
Canada's total contribution for the benefit of Eligible Recipients in Ontario
is as follows:
Fiscal year |
Canada's Contribution:
Gas Tax Funding |
2005-2006 |
$ 223.9 million |
2006-2007 |
$ 223.9 million |
2007-2008 |
$ 298.5 million |
2008-2009 |
$ 373.1 million |
2009-2010 |
$ 746.2 million |
TOTAL |
$1865.5 million |
b) Payment
Provided there is no default under the terms of this Agreement, Canada's
contribution, as set out above, will be paid as set out below, in equal semi-annual
payments as follows:
-
The first payment will be made not later than July 1st of
each Fiscal Year set out above.
-
The second payment will be made not later than November 1st
of each Fiscal Year.
c) Appropriations
A payment due by Canada hereunder is conditional on a legislated appropriation
for the GTF and Funds for the Fiscal Year in which the payment is due.
No payment will be made under this Agreement that is inconsistent with C-43
Budget Implementation Act 2005 until Parliament has approved appropriations
specific to Gas Tax Funding.
3 ALLOCATION AND DELIVERY MECHANISM
a) Allocation
Canada, AMO and Toronto agree that the allocation of Funds to all Ontario
Municipalities will be based upon population, using 2001 National Census data
made available by Statistics Canada and that:
- the formula for allocation to Ontario Municipalities, excluding Toronto,
via AMO, is as detailed in Part II, Section 2 c) of this Agreement; and
- the specific allocation to Toronto is as detailed in Part II, section 3
of this Agreement.
Canada will set aside amounts of $0.7 million in 2005-06, $0.7 million in
2006-07, $0.9 million in 2007-08, $1.2 million in 2008-09, $2.3 million in
2009-10 for Eligible Recipients that are Local Services Boards and Local Roads
Boards.
b) Delivery Mechanism
Funds will be delivered to Eligible Recipients via three complementary mechanisms:
- Canada's contribution to Municipalities, excluding Toronto, will be transferred
directly to the AMO semi-annually for delivery to Municipalities, as detailed
in Part II, section 2 of this Agreement.
-
Canada's contribution to Toronto will be transferred directly to Toronto
semi-annually as detailed in Part II, section 3 of this Agreement.
- The mechanism for delivery to Local Services Boards and Local Roads Boards
will be determined at a later date.
4. Oversight Committee
Upon execution of this Agreement, Canada, AMO and Toronto will promptly establish
an Oversight Committee, consisting of two representatives from the Government
of Canada, two representatives from AMO and two representatives from Toronto,
which shall manage the implementation of the Agreement, in accordance with
the respective roles and responsibilities of the Parties.
Ontario will appoint two individuals as advisors to the Oversight Committee
who will assist in implementing Ontario's commitments under Part II, 1(b)
and may advise the Committee on matters that are within Ontario's mandate.
PART II - ROLES AND RESPONSIBILITIES OF THE PARTIES
1 CANADA - ONTARIO
Canada and Ontario recognize that Gas Tax Funding is consistent with and
contributes to Ontario's framework for comprehensive, integrated and long-term
planning that supports and integrates the principles of strong communities,
a clean and healthy environment and economic growth.
a) Canada's Commitments
Canada agrees that it:
- will honour any existing contribution agreement with Ontario in respect
of Infrastructure Programs, in accordance with its terms.
-
will ensure that the funding under this Agreement provides additional
revenues for Municipalities rather than displacing other federal infrastructure
funding; and that it intends to renew and extend into the future, the Canada
Strategic Infrastructure Fund, Municipal Rural Infrastructure Fund and Border
Infrastructure Fund as they expire.
- will work together with Ontario and Ontario Municipalities to examine other
proposals regarding the New Deal.
-
in addition to the Funds to Municipalities set out in Part I, Section
2, will provide Gas Tax Funding to First Nations on-reserve communities
in Ontario to address their infrastructure needs.
b) Ontario's Commitments
Ontario will ensure the long-term sustainability of Ontario's communities,
through its comprehensive framework, including:
- land use planning system and recent planning reforms, including the:
- Provincial Policy Statement, which supports the protection of Ontario's
environment, promotes energy conservation, encourages settlement patterns
which minimize negative impacts to air quality and climate change, supports
long-term planning for alternative and renewable energy sources, discourages
urban sprawl and supports public transit, promotes the development of more
affordable housing and supports and protects rural areas; and
-
Greenbelt Act, 2005, S.O. 2005 c.1 which provides the authority
to establish a Greenbelt Area and Greenbelt Plan to protect greenspace
and contain urban sprawl in the Greater Golden Horseshoe region. The Greenbelt
initiative has added one million acres of land to those areas already
protected by the Oak Ridges Moraine Conservation Plan and Niagara Escarpment
Plan to create a 1.8 million acre Greenbelt, the greenbelt was developed
recognizing the need to strike a balance between protecting environmentally
sensitive and agricultural lands and meeting the needs of growing communities.
-
Ontario's commitment to long-term strategic planning for growth through
the:
-
proposed Places to Grow Act, which, if passed, would provide
the legal framework necessary to develop a growth plan for any area of
the province; and
- a Greater Golden Horseshoe Growth Plan, which will create stronger, more
liveable communities, enhance the economy and protect the natural environment
of the fastest growing region of the country.
-
initiatives to protect and provide safe drinking water in Ontario, including
existing and proposed legislation and regulations to support safe drinking
water, source water protection and the full cost recovery of water and sewer
services.
- provincial gas tax program which, by providing Municipalities with a portion
of the gas tax for public transportation, assists Municipalities in increasing
their transit ridership; increasing the level of accessibility to public transit;
supporting reduced commute times and cleaner air; reducing congestion; and
assisting municipalities in becoming more self sustaining.
- Ontario's requirement that all municipalities prepare annual financial statements
in accordance with the principles of the Public Sector Accounting Board, pursuant
to Ontario Regulation 277/02.
Ontario will build on these actions by committing to:
- ensure that Gas Tax Funding is incremental to provincial infrastructure
funding available to Municipalities;
- not reduce, eliminate or claw back any Gas Tax Funding to Municipalities;
-
enable Ontario municipalities, through AMO, and enable Toronto to work
directly with Canada to determine the best way to use federal gas tax
revenues;
-
work with the AMO and Toronto to facilitate, where required, the implementation
of the reporting, audit and evaluation frameworks as outlined in Part
II, Sections 2 and 3;
- share information with Canada to assist the design and implementation
of the GTF;
- facilitate municipal reporting on the use of the Funds through existing
reporting processes;
- engage in an annual review of priorities with Canada.
No role
Ontario will have no role in the allocation formula for the Funds, the disbursement
of Funds to Municipalities, reporting, audit or evaluation provisions or any
adjudication of disputes between Canada and the other Parties to this Agreement.
Agreement to share information
Ontario will share with Canada the results of any compliance or performance
audit that they may carry out with respect to Municipal Infrastructure that
examines the use of the Funds to a significant extent.
2. CANADA - Association of Municipalities of Ontario
a) Canada's Commitments
Canada agrees that it will:
-
work together with AMO to examine other proposals regarding the New Deal.
- encourage inter-Municipal and Municipal - First Nations reserve collaborations
on eligible projects
-
provided that AMO is not in default under this Agreement, transfer the
following amounts to AMO for the benefit of Ontario Municipalities, excluding
Toronto, semi-annually as follows:
Fiscal year |
Canada's Contribution to Ontario Municipalities
via AMO |
2005-2006 |
$174.3 |
2006-2007 |
$ 174.3 |
2007-2008 |
$ 232.4 |
2008-2009 |
$ 290.5 |
2009-2010 |
$ 581.0 |
TOTAL |
$1,452.6 |
b) AMO commitments
AMO agrees that it will:
- carry out an administrative and coordinating role, including aggregate reporting,
with respect to the delivery of Funds for the benefit of all Ontario's Municipalities,
whether or not they are members of AMO, excluding the Funds paid directly
by Canada to Toronto;
-
require Municipalities, as a prerequisite to receiving payments of Funds,
to agree to comply, pursuant to a Funding Agreement, with all requirements
and conditions set out in Schedule A, Schedule B, Schedule C and Schedule
F;
- include the Eligible Recipient requirements in all Funding Agreements and
enforce all terms and conditions of funding agreements in a diligent and timely
manner and seek remedies from non-compliant Eligible Recipients.
c) Allocation, Delivery Mechanism and Use of Funds
AMO will allocate Canada's contribution in Part II, Section 2 a) above to
Municipalities, excluding Toronto, on a per capita basis with allocations
made on a 50:50 basis to Upper and Lower tier Municipalities, where they exist.
AMO will disburse funds directly to Municipalities, excluding Toronto, provided
a Funding Agreement between AMO and the Municipality has been signed, through
which the Municipality will agree to comply with all requirements and conditions
set out in Schedule A, Schedule B, Schedule C and Schedule F and any other
requirements needed to implement the terms and conditions of Part II Section
2 of this Agreement and the Funding Agreement between AMO and the Eligible
Recipient.
Municipalities will be permitted to carry over unexpended Funds into subsequent
years in reserve accounts. Any interest earned on Funds by the municipality
may only be applied to Eligible Costs on Eligible Projects or to the administration
costs related to the implementation of the Funding Agreement.
AMO agrees it will deposit Funds into a separate account, pending payment
to Municipalities in accordance with the terms of this Agreement.
AMO agrees to pay Funds to Eligible Recipients solely for Eligible Projects
identified in Schedule A and solely in respect of Eligible Costs identified
in Schedule B.
AMO agrees that if Funds advanced by AMO to Eligible Recipients are not paid
by the Eligible Recipient in respect of Eligible Costs within 3 years after
the end of the year in which the advance payment was received, AMO shall consult
with the Eligible Recipient and may elect to withhold further payment of Funds
to the Eligible Recipient.
d) Administration Costs
Funds may be used by AMO to pay the administrative costs incurred by the
AMO in the delivery of the Funds or in fulfilling the requirements set out
in this section provided that AMO submits, in advance, for review and acceptance
by Canada, a business case justifying such use of Funds.
e) Limit on Canada's Financial Commitments
Eligible Recipients may use Funds to pay up to 100% of Eligible Costs of
an Eligible Project. However, if an Eligible Recipient is receiving money
under an Infrastructure Program in respect of an Eligible Project to which
the Eligible Recipient wishes to apply Funds, the maximum federal contribution
limitation set out in any Infrastructure Program contribution agreement made
in respect of that Eligible Project shall continue to apply.
f) Disposal of Eligible Projects
To the extent that AMO receives a repayment of all or a portion of a contribution
pursuant to the operation of Paragraph 13 of Schedule C, AMO shall immediately
pay the said amount to Canada.
g) Contracting
AMO agrees that any of its contracts for the supply of services or materials
to implement its responsibilities under this Agreement will be awarded in
a way that is transparent, competitive, and consistent with value for money
principles.
h) Reporting
AMO will :
AMO will require Eligible Recipients, excluding Toronto, to commit to:
-
accounting for the Funds which they receive and expenditures on an annual
basis through an annual reporting document which will be developed by AMO,
in consultation with Ontario municipalities, Ontario and Canada, and will
be made publicly available.
-
accounting for outcomes achieved as a result of Gas Tax Funding through
an Outcomes Report, to be made available publicly.
i) Audits
AMO will prepare and deliver to Canada an Audit Report along with the Annual
Expenditure Report, as outlined in Schedule D.
An audited statement of Funding and Expenditures, prepared by each Eligible
Recipient will provide assurance that the terms of the agreement have been
adhered to and Funds received by the Municipality have been spent in accordance
with eligibility criteria.
AMO agrees to ensure and to require, as a condition of each Funding Agreement,
that proper and accurate accounts and records, including invoices, statements,
receipts and vouchers in respect of all Eligible Projects that Funds are paid
in respect of, are kept for at least three (3) years after termination of
this Agreement and will, upon reasonable notice, make them available or require
the applicable Municipality to make them available to Canada for inspection
or audit.
Canada may request, upon written notification, and AMO agrees to complete
and provide to Canada an audit of any one or more individual Eligible Projects,
as may be requested by Canada.
Compliance Audit: The Federal Minister or the Auditor General of Canada
may undertake, at his or her own cost, an audit of AMO to be carried out by
such person as the Federal Minister or the Auditor General of Canada may appoint
to ensure compliance with this Funding Agreement. AMO will cooperate and
provide access to the appropriate records to conduct such an audit. The Federal
Minister or the Auditor General of Canada may share a copy of the resulting
report with AMO and agrees to discuss any concerns raised in the audit with
AMO.
Performance Audit: The Federal Minister or the Auditor General of Canada
may, after consultation with AMO, choose to conduct his or her own performance
(value-for-money) audit, to be carried out by such a person as the Federal
Minister or the Auditor General of Canada may appoint, at his or her own cost.
AMO will cooperate and provide access to the appropriate records to conduct
such an audit. The Federal Minister or the Auditor General of Canada may share
a copy of the resulting report with AMO and agrees to discuss any concerns
raised in the performance audit with AMO.
j) Evaluation
No later than March 31, 2009, Canada and AMO shall complete a joint evaluation
of the program set out in this Agreement as it pertains to AMO and Municipalities,
excluding Toronto, the results of which will be made public. Canada and AMO
shall seek the input of Municipalities, or representatives thereof, as the
Parties deem appropriate.
At a minimum, the evaluation will address the issues related to achievement
of the objectives of this Agreement, the use of funding, the effectiveness
of the funding approach described in this Agreement, and the effectiveness
of the communications protocol.
Canada and AMO agree to cooperate with respect to the above noted evaluation
and will collaborate on the design of the evaluation framework.
In addition to the foregoing, no later than June 30, 2009, Canada will, at
its cost, complete a national evaluation, incorporating the results of the
joint bilateral evaluations described above. Canada will share the results
of this national evaluation with AMO, prior to its completion.
3. CANADA - CITY OF TORONTO
a) Canada's Commitments
Canada agrees that it:
-
will honour any existing contribution agreement with City of Toronto
in respect of Infrastructure, in accordance with its terms;
- subject to Part II, 3(i), ensure that funding under this agreement provides
additional revenues for the City of Toronto rather than displacing other federal
infrastructure funding and that it intends to renew and extend into the future,
the Canada Strategic Infrastructure Fund and Border Infrastructure Fund as
they expire;
-
work together with Toronto to examine other proposals regarding the New
Deal;
- provided that Toronto is not in default under this Agreement, transfer to
Toronto its allocation of Funds semi- annually as follows:
Fiscal year |
Canada's Contribution to City of Toronto
|
2005-2006 |
$48.9 |
2006-2007 |
$ 48.9 |
2007-2008 |
$ 65.2 |
2008-2009 |
$ 81.4 |
2009-2010 |
$ 162.9 |
TOTAL |
$407.3 |
b) City of Toronto commitments
The City of Toronto agrees to:
- ensure that the Funds will result in net incremental capital spending by
Toronto for its Municipal Infrastructure;
- invest the Funds solely in respect of Eligible Projects related to public
transit and only in respect of Eligible Costs as outlined in Schedule B, for
example:
-
Rapid Transit: tangible capital assets and rolling stock (includes
light rail, heavy rail additions, subways, ferries, transit stations,
park and ride facilities, grade separated bus lanes and rail lines);
-
Transit Buses: bus rolling stock, transit bus stations;
-
Intelligent Transport System (ITS) and Transit Priority Capital Investments;
- ITS technologies to improve transit priority signalling, passenger
and traffic information and transit operations;
-
Capital investments, such as transit queue-jumpers and High Occupancy
Vehicle (HOV) lanes;
-
Para transit: rolling stock, fixed capital assets and systems
-
Related capital infrastructure: bus loading bays, road rehabilitation
for bus-only lanes;
-
Active transportation infrastructure (e.g., bike lanes).
- adhere to the Communication Protocol as set out in Schedule F.
c) Applicable Schedules
Schedule B, Schedule F and Schedule G are applicable to Canada-Toronto commitments
under this Agreement.
d) Payment
Provided there is no default under the terms of this Agreement and Toronto
City Council has ratified this Agreement, Canada's annual contribution to
Toronto, as set out above, will be paid in equal semi-annual payments as follows:
The first payment will be made not later than July 1st of each
Fiscal Year set out above.
The second payment will be made not later than November 1st of
each Fiscal Year.
A payment due by Canada hereunder is conditional on a legislated appropriation
for the GTF and Funds for the Fiscal Year in which the payment is due.
No payment will be made under this Agreement that is inconsistent with C-43
Budget Implementation Act 2005 until Parliament has approved appropriations
specific to Gas Tax Funding.
e) Reporting
Toronto will prepare and deliver to Canada no later than September 30th
of each year, in respect of the prior fiscal year, an audited annual expenditure
report, detailing:
-
the amounts received from Canada under this Agreement
- the amounts paid for Eligible Projects
-
listing of all Eligible Projects, indicating location, amount and identity
of all sources of funding, nature of the investment and expected outcomes
-
any amounts held at year end, including interest, to pay for Eligible
Projects
-
in narrative form, the progress Toronto has made in meeting its commitments
and contributions under this Agreement.
Toronto will prepare, publish and make available to the public, by no later
than September 30th 2009, an outcomes report which will report
on clean air outcomes and public transit outputs achieved over the first three
years of the agreement.
Toronto will make best efforts to provide an interim, un-audited version
of the annual expenditure report in respect of the prior Fiscal Year by June
30th, of each Fiscal Year.
f) Audits
An audit report, prepared by an external auditor for Toronto that provides
an opinion as to whether all of the information contained in the annual expenditure
report is complete and accurate and whether Toronto has complied with all
the material provisions of this Agreement will accompany each annual expenditure
report.
Toronto agrees to ensure that proper and accurate accounts and records, including
invoices, statements, receipts and vouchers in respect of all Eligible Projects
that receive Funds, are kept for at least three (3) years after termination
of this Agreement and will, upon reasonable notice, make them available to
Canada for inspection or audit.
Canada may request and Toronto agrees to complete and provide to Canada an
audit of any one or more individual Eligible Projects, as may be requested
by Canada.
Toronto will share with Canada the results of any compliance or performance
audit that they may carry out beyond the audit report that examines the use
of Funds to a specific extent.
g) Evaluation
No later than March 31, 2009, Canada and Toronto shall complete a joint evaluation
of the program set out in this Agreement, the results of which will be made
public.
At a minimum, the evaluation will address the issues related to achievement
of the objectives of this Agreement, the use of funding, the effectiveness
of the funding approach described in this Agreement, and the effectiveness
of the communications protocol.
Canada and Toronto agree to cooperate with respect to the above noted evaluation,
the costs of which to be shared by Canada and Toronto. Canada and Toronto
will collaborate on the design of the evaluation framework.
In addition to the foregoing, no later than June 30, 2009, Canada will, at
its cost, complete a national evaluation, incorporating the results of the
evaluations described above. Canada will share the results of this national
evaluation with Toronto, prior to its completion.
h) Toronto's Further Commitments
Toronto agrees to:
-
Complete, prior to the end of the fourth year of this Agreement, a Capital Investment
Plan;
- Over the life of the Agreement, develop or enhance an Integrated Community
Sustainability Plan, as set out in Schedule G.
- Prior to March 31, 2010, adopt and use the accounting rules of the Public
Sector Accounting Board, in accordance with provincial regulations.
- Ensure that over the period of April 1, 2005 to March 31, 2010 its capital
spending on Municipal Infrastructure will not fall below its Base Amount.
- Permit Canada reasonable access to all records relating to all Eligible
Projects that have received Funds.
- Be responsible for its complete, diligent and timely implementation and
completion of the Eligible Project, net of any Funds received.
- Acknowledge that Funds may be held back if Torontois in default under this
Agreement.
- Comply with all legislated environmental assessment requirements and confirms
that no Funds will be committed to an Eligible Project until all environmental
assessment requirements have been satisfied.
- Implement all mitigation measures identified in any environmental assessment
of the Eligible Project.
- Invest such Funds in accordance with Ontario law and in accordance with
Toronto's investment policy.
- (a) Retain title to, and ownership of, the Municipal Infrastructure resulting
from the Eligible Project for at least ten (10) years after Eligible Project
completion.
(b) If, at any time within ten (10) years from the date of completion of the
Eligible Project, Toronto sells, leases, encumbers or otherwise disposes of,
directly or indirectly, any asset constructed, rehabilitated or improved,
in whole or in part, with Funds contributed by Canada under the terms of this
Agreement, other than to Canada, Toronto shall repay Canada on demand, a proportionate
amount of the Funds contributed by Canada, as follows:
-
Where Eligible Project asset is
sold,
leased, encumbered or disposed of: |
Repayment of contribution
(in current dollars) |
Within 2 Years after Eligible
Project completion |
100% |
Between 2 and 5 Years after Eligible
Project completion |
55% |
Between 5 and 10 Years after Eligible
Project completion |
10% |
(c)Toronto agrees to advise Canada in writing 120 days in advance and at
any time during the ten (10) years following the completion of an Eligible
Project if any asset constructed, rehabilitated, or improved in whole or
in part with Funds is sold, discharged or alienated in any way other than
to Canada.
- Award and manage all contracts for the supply of services and/or material
to the Eligible Project ("Contracts") in accordance with Toronto's relevant
policies and procedures and award Contracts in a manner that is transparent,
competitive, and consistent with value for money principles.
i) Stacking
- Toronto acknowledges that it may use Funds to pay up to 100% of Eligible
Costs of an Eligible Project. However, to the extent Toronto is receiving
money under an Infrastructure Program in respect of an Eligible Project to
which Toronto wishes to apply Funds, the maximum federal contribution limitation
set out in any Infrastructure Program contribution agreement made in respect
of that Eligible Project shall continue to apply.
-
Toronto will inform Canada of any other federal financial assistance
offered or received in respect of Eligible Costs of an Eligible Project.
j) Use of Funds
Toronto will be permitted to carry over unexpended Funds into subsequent
years in a separate reserve account. Any interest earned on Funds by Toronto
may only be applied to Eligible Costs on Eligible Projects.
Toronto agrees to expend all Funds received under this Agreement by the termination
date of the Agreement.
k) Ratification
This Agreement is being executed on behalf of Toronto by the Mayor thereof,
to be ratified as required by Toronto City Council.
l) Administration Costs
All administration costs of Toronto in respect of the implementation and
management of this Agreement shall be for the account of Toronto.
PART III - AREAS FOR FURTHER CO-OPERATION
Strong Communities Committee
The Parties agree to work together to examine various means to building strong,
local communities. To that end, upon execution of this Agreement, the Parties
shall promptly establish a Strong Communities Committee to be co-chaired by
four members:
-
one of whom is to be appointed by the Federal Minister, and designated
as Federal Co-Chairperson,
- one of whom is to be appointed by the Provincial Minister, and designated
as Provincial Co-Chairperson
-
one of whom is be a senior official from AMO, and designated as AMO co-chairperson
- one of whom is to be appointed by the Mayor of Toronto and designated as
Toronto Co-chairperson
The Committee shall explore shared objectives under the New Deal for Cities
and Communities. Canada, Ontario, AMO and Toronto and other Municipalities
may enter into separate bilateral or multilateral agreements, to support a
long-term vision of sustainability.
Any financial provisions for these other agreements will be negotiated separately
and will not be funded from federal gas tax revenue.
As a first priority, the Committee will work to develop a framework by which
municipalities can participate in discussions on national issues most important
to them, as suggested in the Government of Canada's Budget 2005 and the Premier's
communication to the Prime Minister of March 3, 2004.
AMO
Canada, Ontario and AMO agree to work in partnership toward the development
of a tripartite framework agreement referred to in Schedule C of the Ontario
Memorandum of Understanding with the Association of Municipalities of Ontario.
City of Toronto
Canada, Ontario and Toronto agree to work in partnership toward development
of a tripartite framework agreement to address issues that could benefit from
the coordinated actions of the three governments.
PART IV - ADDITIONAL Provisions
1. DISPUTE RESOLUTION, DEFAULT, REMEDIES AND INDEMNITY
a) Dispute resolution
The Parties shall keep each other informed of any disagreement or contentious
issue by notifying the Oversight Committee, which shall attempt to resolve
it.
Any disagreement or contentious issue that cannot be resolved will be submitted
to the Federal Minister for resolution.
b) Events of Default
1. Canada may declare that an event of default has occurred if Ontario, AMO
or Toronto has:
- Not complied with any condition, undertaking or material term in the Agreement;
Canada will not declare that an event of default has occurred unless it has
consulted with Ontario, AMO or Toronto, as appropriate, and given notice of
the occurrence, which in Canada's opinion constitutes an event of default.
2. Canada may declare that an event of default has occurred if AMO has:
-
Failed to deliver an Annual Expenditure Report, Audit Report or the
Outcomes Report, when required
- Delivered an Annual Expenditure Report or Audit Report that disclosed
non-compliance by either AMO or an Eligible Recipient.
3. Canada may declare that an event of default has occurred if Toronto has:
-
Failed to deliver an annual expenditure report, audit report or the
outcomes report described in Part II, Section 3 e), f) and g), when required
- Delivered an annual expenditure report or audit report that disclosed
non-compliance by Toronto.
4. Canada will not declare that an event of default has occurred unless
it has consulted with AMO or Toronto, as appropriate, and given notice of
the occurrence, which in Canada's opinion constitutes an event of default.
5. Ontario, AMO or Toronto within 30 days of receipt of the notice,
either correct the condition or event or demonstrate, to the satisfaction
of Canada, that it has taken such steps as are necessary to correct the condition.
c) Remedies
If Canada declares that an event of default has occurred, after 30 days of
declaration, it may immediately exercise one or more of the following remedies:
-
In the case of default under subsection 1 A) above, terminate or suspend
its obligation to pay Funds. If Canada suspends payment it may pay suspended
funds if Canada is satisfied that the default has been cured;
-
In the case of any other default, suspend its obligation to pay Funds
related to the event of default pending Canada's satisfaction that the
default has been cured.
d) Indemnity
AMO and Toronto (individually, an "Indemnifier") agree at all times to indemnify
and save harmless Canada its officers, servants, employees or agents, from
and against all claims and demands, loss, costs, damages, actions, suits or
other proceedings by whomsoever brought or prosecuted in any manner based
upon, or occasioned by any injury to persons, damage to or loss or destruction
of property, economic loss or infringement of rights caused by or arising
directly or indirectly from:
-
In the case of Toronto, all Toronto's Eligible Projects and in the
case of AMO, all other Eligible Projects;
-
the performance of this Agreement or the breach of any term or condition
of this Agreement by the Indemnifier, its officers, employees and agents,
or by a third party, its officers, employees, or agents;
-
in the case of AMO, the performance of a Funding Agreement or the breach
of any term or condition of a Funding Agreement by an Eligible Recipient,
its officers, employees and agents, or by a third party, its officers,
employees, or agents
-
the design, construction, operation, maintenance and repair of any
part of, in the case of Toronto, Toronto's Eligible Project and in the
case of AMO, all other Eligible Projects; and
- any omission or other wilful or negligent act of the Indemnifier or,
in the case of AMO, an Eligible Recipient or third party and their respective
employees, officers, or agents;
except to the extent to which such claims and demands, losses, costs, damages,
actions, suits, or other proceedings relate to the act or negligence of an
officer, employee, or agent of Canada in the performance of his or her duties.
2 Term of Agreement and Renewal
a) Term
This Agreement shall commence on June 17, 2005 and shall expire on
March 31, 2015. Any Party may terminate this Agreement on 2 years written
notice.
b) Review
Following the completion of the evaluation described in Part II, sections
2(j) and 3 (g), the Parties may elect to amend the Agreement, as appropriate.
3 COMMUNICATIONS
The Parties hereby agree to follow the terms of the Communications Protocol
as outlined in Schedule F.
4 Miscellaneous
a) Binding Obligations
Each Party declares to the other that the signing and execution of this Agreement
was duly and validly authorized, and that each has incurred a legal and valid
obligation in accordance with the terms and conditions of the Agreement.
b) Survival
The Parties' rights and obligations set out in Section 3, Part II, 2 f),
h), i), j), 3 (e) f), g), h) 11, Part IV 1 c), d), 3, 4 d) of this Agreement
will survive the expiry or early termination of this Agreement.
c) Governing law
This Agreement is governed by the laws applicable in Ontario.
d) Debts Due to Canada
Any amount owed to Canada under this Agreement will constitute a debt due
to Canada, which AMO or Toronto will reimburse forthwith, on demand, to Canada.
e) No Benefit
No member of the House of Commons, the Senate of Canada, the Legislature
of the Province of Ontario, AMO Board of Directors or Toronto City Council
will be admitted to any share or part of any Contract made pursuant to this
Agreement or to any benefit arising therefrom.
f) No Agency
It is understood, recognized and agreed that no provision of this Agreement
and no action by the Parties will establish or be deemed to establish a partnership,
joint venture, principal-agent relationship, or employer-employee relationship
in any way or for any purpose whatsoever between Canada and Ontario or between
Canada, Ontario, AMO, Toronto and a Third Party.
g) No Authority to Represent
Nothing in this Agreement is to be construed as authorizing one Party to
contract for or to incur any obligation on behalf of the other or to act as
agent for the other. Nothing in this Agreement is to be construed as authorizing
any Recipient or any Third Party to contract for or to incur any obligation
on behalf of either Party or to act as agent for either Party and AMO will
take reasonable steps to ensure that all Funding Agreements contain provisions
to that effect.
h) Counterpart Signature
This Agreement may be signed in counterpart, and the signed copies will,
when attached, constitute an original Agreement.
i) Values and Ethics Code
No person governed by the post-employment, ethics and conflict of interest
guidelines of Canada will derive a direct benefit from this Agreement unless
that person complies with the applicable provisions.
j) Severability
If for any reason a provision of this Agreement that is not a fundamental
term is found to be or becomes invalid or unenforceable, in whole or in part,
it will be deemed to be severable and will be deleted from this Agreement,
but all the other terms and conditions of this Agreement will continue to
be valid and enforceable.
k) Waiver
A Party may waive any right under this Agreement only in writing; and any
tolerance or indulgence demonstrated by that Party will not constitute waiver
of such right. Unless a waiver is executed in writing, that Party will be
entitled to seek any remedy that it may have under this Agreement or under
the law.
l) Lobbyists and Agent Fees
Ontario warrants that any person who lobbies or has lobbied on its behalf
to obtain funding, or any benefit under this Agreement, and who is subject
to the Lobbyists Registration Act (Canada), is registered accordingly.
Furthermore Ontario warrants that no remuneration based on a percentage of
Canada's contribution will be paid to a lobbyist.
m) Amendments to the Agreement
If Canada concludes an agreement for similar purposes with any other province
or territory of Canada, and that agreement taken as a whole is materially
different from this Agreement, Ontario, AMO or Toronto may ask Canada to agree
to amend this Agreement so that, taken as a whole, it affords similar treatment
to Ontario as the other agreement affords to the other province or territory.
Additionally, this Agreement may be amended from time to time on written
agreement of the signatories. Amendments to Parts 1,3 and 4 will require agreement
of all signatories; Amendments to Part 2 will require agreement of Canada
and the other signatory, as applicable.
n) Notice
Any notice, information or document provided for under this Agreement will
be effectively given if delivered or sent by letter, postage or other charges
prepaid, or by facsimile or email. Any notice that is delivered will have
been received on delivery; and any notice mailed will be deemed to have been
received eight (8) calendar days after being mailed.
Any notice to Canada must be sent to :
Assistant Deputy Minister, Cities and Communities
Infrastructure Canada
90 Sparks Street
Ottawa (Ontario)
K1P 5B4
Facsimile: 613-952-4978
Email: laroche.yazmine@infrastructure.gc.ca
Notice to Ontario will be addressed to:
Assistant Deputy Minister, Local Government Division
Ministry of Municipal Affairs and Housing
777 Bay Street - 13th Floor
Toronto (Ontario)
M5G 2E5
Facsimile: 416-585-6434
Email: dana.richardson@mah.gov.on.ca
Notice to AMO will be addressed to:
Executive Director
Association of Municipalities of Ontario
393 University Avenue, Suite 1701
Toronto, (Ontario)
M5G 1E6
Facsimilie: 416-971-6191
Email: pvanini@amo.on.ca
Notice to City of Toronto will be addressed to:
City Manager
City of Toronto
City Manager's Office
100 Queen Street West
City Hall, 11th Floor, East Tower
Toronto, ON M5H 2N2
Facsimile: 416-392-1827
email: SHoy@toronto.ca
Each Party may change the address that it has stipulated by notifying in
writing the other party of the new address.
5 SIGNATURES
IN THE PRESENCE OF:
Original signed by:
______________________
WITNESS |
GOVERNMENT OF CANADA
______________________
Minister of State for Infrastructure and Communities |
IN THE PRESENCE OF:
Original signed by:
______________________
WITNESS |
GOVERNMENT OF ONTARIO
______________________
Minister of Municipal Affairs and Housing |
IN THE PRESENCE OF:
Original signed by:
______________________
WITNESS |
ASSOCIATION OF MUNICIPALITIES OF ONTARIO
______________________
President |
IN THE PRESENCE OF:
Original signed by:
______________________
WITNESS |
CITY OF TORONTO
______________________
Mayor |
SCHEDULE A - Eligible Categories
1 ESMI Projects include the following:
a) Public transit, e.g.:
- Rapid Transit: tangible capital assets and rolling stock (includes light
rail, heavy rail additions, subways, ferries, transit stations, park and ride
facilities, grade separated bus lanes and rail lines);
-
Transit Buses: bus rolling stock, transit bus stations;
-
Intelligent Transport System (ITS) and Transit Priority Capital Investments;
- ITS technologies to improve transit priority signalling, passenger and traffic
information and transit operations;
- Capital investments, such as transit queue-jumpers and High Occupancy Vehicle
(HOV) lanes
- Para transit: rolling stock, fixed capital assets and systems
-
Related capital infrastructure: bus loading bays, road rehabilitation
for bus-only lanes.
- Active transportation infrastructure (e.g., bike lanes).
b) Water, e.g.:
Drinking water supply; drinking water purification and treatment systems;
drinking water distribution systems; water metering systems.
c) Wastewater, e.g.:
Wastewater systems including sanitary and combined sewer systems; and separate
storm water systems.
d) Solid waste, e.g.:
Waste diversion; material recovery facilities; organics management; collection
depots; waste disposal landfills; thermal treatment and landfill gas recuperation.
e) Community Energy Systems, e.g.:
- Cogeneration or combined heat and power projects (where heat and power are
produced through a single process);
-
District heating and cooling projects where heat (or cooling) is distributed
to more than one building.
f) Local roads, bridges and tunnels, active transportation
infrastructure (e.g, bike lanes) that enhance sustainability outcomes.
2 For the purposes of this Agreement, Large Municipalities
will be defined as all Municipalities with a population of 500,000 or more.
For Large Municipalities, the list of eligible categories will consist of
no more than two (2) of categories a) to e) listed above.
Large municipalities include: Durham Region, Peel Region, York Region, the
City of Mississauga and the City of Ottawa.
3 Capacity Building includes the following activities:
- Collaboration: building partnerships and strategic alliances; participation;
and consultation and outreach;
- Knowledge: use of new technology; research; and monitoring and evaluation;
-
Integration: planning, policy development and implementation (e.g., environmental
management systems, life cycle assessment).
SCHEDULE B- Eligible Costs
Eligible Costs
1 Project Costs
Eligible costs, as specified in each funding agreement, will be all direct
costs which are in Canada's opinion properly and reasonably incurred and paid
by an Eligible Recipient for under a contract for goods and services necessary
for the implementation of an Eligible Project. Eligible costs may include
only the following:
-
the capital costs of acquiring, constructing, renovating or rehabilitating
a tangible capital asset and any debt financing charges related thereto;
- the fees paid to professionals, technical personnel, consultants and contractors
specifically engaged to undertake the surveying, design, engineering, manufacturing
or construction of a project infrastructure asset and related facilities and
structures;
-
the costs of environmental assessments, monitoring, and follow-up programs
as required by the Canadian Environmental Assessment Act; or a provincial
equivalent;
-
the costs related to strengthening the ability of municipalities to enhance
or develop Integrated Community Sustainability Plans.
1.1 Employee and Equipment Costs
In the case of Eligible Recipients that are remote municipalities the out
of pocket costs (not overhead) related to employees or equipment may be included
in its eligible costs under the following conditions:
- the Eligible Recipient has determined that it is not economically feasible
to tender a contract;
-
employees or equipment are employed directly in respect of the work that
would have been the subject of the contract; and
-
the arrangement is approved in advance and in writing by the Oversight
Committee.
1.2 Administration Costs
That portion of Funds representing interest earned, may be used to pay for
administration costs.
Ineligible Costs
Costs related to the following items are ineligible costs:
- Eligible Project costs incurred before April 1st, 2005;
-
services or works that are normally provided by the Eligible Recipient
or a related party;
-
salaries and other employment benefits of any employees of the Eligible
Recipient or related party except as indicated in sections 1.1;
-
an Eligible Recipient's overhead costs, its direct or indirect operating
or administrative costs, and more specifically its costs related to planning,
engineering, architecture, supervision, management and other activities
normally carried out by its applicant's staff;
-
costs of feasibility and planning studies for individual Eligible Projects;
-
taxes for which the municipality is eligible for a tax rebate and all
other costs eligible for rebates;
-
costs of land or any interest therein, and related costs;
-
cost of leasing of equipment by the municipality except for as indicated
in section 1.1 above;
- routine repair and maintenance costs;
- legal fees;
-
administrative costs incurred by the municipality as a result of implementing
a funding agreement, subject to 1.2 above; and
- audit and evaluation costs.
SCHEDULE C- Eligible Recipient Requirements
Eligible Recipients shall:
-
Complete, prior to the end of the fourth year of this Agreement, a Capital
Investment Plan;
- Over the life of the Agreement, the Eligible Recipient will develop or enhance
an Integrated Community Sustainability Plan, either by itself or as part of
some higher level of agglomeration, as discussed in Schedule G.
- Prior to March 31, 2010, adopt and use the accounting rules of the Public
Sector Accounting Board, in accordance with provincial regulations.
- Ensure that the Funds will result in net incremental capital spending on
Municipal Infrastructure.
- Ensure that there is no reduction in capital funding provided by municipalities
for Municipal Infrastructure. In the case of Eligible Recipients that are
Municipalities in excess of 100,000 in population, ensure that over the period
of April 1, 2005 to March 31, 2010 the Municipality's capital spending on
Municipal Infrastructure will not fall below its Base Amount.
- Permit Canada reasonable access to all records relating to all Eligible
Projects that have received Funds.
- Be responsible for the complete, diligent and timely implementation and
completion of the Eligible Project, net of any Funds received.
- Acknowledge that funds may be held back if the Eligible Recipient is in
default under the Funding Agreement.
- Comply, as necessary, with the Communications protocol set out in Schedule
F.
- Comply with all legislated environmental assessment requirements and agree
that no funds will be committed to an Eligible Project until all environmental
assessment requirements have been satisfied.
- Implement all mitigation measures identified in any environmental assessment
of the Eligible Project.
- Invest such funds in accordance with Ontario law and in accordance with
the municipality's investment policy.
- Expend all Funds by the termination of the Agreement.
- (a) Retain title to, and ownership of, the Municipal Infrastructure resulting
from the Eligible Project for at least ten (10) years after Project completion.
(b) If, at any time within ten (10) years from the date of completion of
the Eligible Project, the Eligible Recipient sells, leases, encumbers or otherwise
disposes of, directly or indirectly, any asset constructed, rehabilitated or
improved, in whole or in part, with funds contributed by Canada under the terms
of this Agreement, other than to Canada, Ontario, a municipality, or a Crown
corporation of Ontario that is the latter's agent for the purpose of implementing
this agreement, the Eligible Recipient shall repay Canada on demand, a proportionate
amount of the funds contributed by Canada, as follows:
-
Where Eligible Project asset is
sold,
leased, encumbered or disposed of: |
Repayment of contribution
(in current dollars) |
Within 2 Years after Eligible
Project completion |
100% |
Between 2 and 5 Years after Eligible
Project completion |
55% |
Between 5 and 10 Years after Eligible
Project completion |
10% |
(c) advise Canada in writing 120 days in advance and at any time during the
ten (10) years following the completion of an Eligible Project if any asset
constructed, rehabilitated, or improved in whole or in part with Funds is
sold, discharged or alienated in any way other than to Canada.
- Award and manage all contracts for the supply of services and/or material
to the Eligible Project ("Contracts") in accordance with the Eligible Recipient's
relevant policies and procedures and award Contracts in a manner that is transparent,
competitive, and consistent with value for money principles.
- Acknowledge that it shall use Funds to pay up to 100% of Eligible Costs
of an Eligible Project. However, to the extent an Eligible Recipient is receiving
money under an Infrastructure Program in respect of an Eligible Project to
which the Eligible Recipient wishes to apply Funds, the maximum federal contribution
limitation set out in any Infrastructure Program contribution agreement made
in respect of that Eligible Project shall continue to apply.
- Indemnify and save harmless Canada and AMO, their officers, servants, employees,
or agents from and against all claims and demands, loss, costs, damages, actions,
suits, or other proceedings by whomsoever brought or prosecuted in any manner
based upon, or occasioned by any injury to persons, damage to or loss or destruction
of property, economic loss or infringement of rights caused by or arising
directly or indirectly from:
- all Eligible Projects;
- the performance of this Agreement or the breach of any term or condition
of this Agreement by the Parties, its officers, employees and agents or
by a third party, and any of its officer, employees, servants or agents;
-
the performance of a Funding Agreement or the breach of any term
or condition of the Funding Agreement by the Parties, its officers,
employees and agents or by a third party, and any of its officer, employees,
servants or agents;
-
the design, construction, operation, maintenance and repair of any
part of an Eligible Project; and
-
any omission or other wilful or negligent act of the Parties or Eligible
Recipient or third party and their respective employees, officers, servants
or agents.
- If they intend to invest in the category of local roads and bridges, submit
to AMO prior to spending the Funds the appropriate documentation on the impact
of such investments on sustainability outcomes in a format approved by the
Oversight Committee.
SCHEDULE D - Reporting and Audits
1. Reporting
1.1 Annual Expenditure Report
1.1.1 The Annual Expenditure Report will report on:
- the amounts received from Canada under this Agreement
- the amounts paid to Municipalities
-
the amounts received from Canada for future payments to Municipalities
-
amounts paid by Municipalities in aggregate for Eligible Projects
-
amounts held at year end by Municipalities in aggregate, including interest,
to pay for Eligible Projects
1.1.2 The Annual Expenditure Report will also indicate in a narrative
the progress that the Party has made in meeting its commitments and contributions.
1.1.3 The Annual Expenditure Report will also include a
listing of all Eligible Projects that have been funded, indicating the location,
investment category, amount of federal contribution, nature of the investment
and expected outcomes, as identified in Schedule E. If SIMSI is used to provide
project information, there is no need to provide above information in the
Annual Report.
1.1.4 In the case of Eligible Recipients with a year end
other than March 31, and with prior approval of AMO, the Annual Expenditure
Report may include information in respect of Eligible Projects related to
that Eligible Recipient to the year end of that Eligible Recipient.
1.2 Outcomes Report
1.2.1 The Outcomes Report will report on:
2. Audit Report
2.1 The Audit Report will provide an opinion as to whether
all of the information contained in the Annual Expenditure Report is complete
and accurate and whether the Party has complied with all material provisions
of this Agreement.
2.2 AMO will share with Canada the results of any compliance
or performance audit that they may carry out beyond the Audit Report, that
examines the use of Funds to a significant extent.
SCHEDULE E - Outcome Indicators
The impact of the use of the Funds will be measured through a
set of core indicators, to be developed by the Oversight Committee and linked
to the following outcomes and outputs:
Outcomes:
-
Cleaner Air: [DETERMINE INDICATOR]
- Cleaner Water: [DETERMINE INDICATOR]
-
Lower GHGs: [DETERMINE INDICATOR]
-
Community Energy Systems: [DETERMINE INDICATOR]
-
Public Transit Infrastructure: [DETERMINE INDICATOR]
- Water Infrastructure: [DETERMINE INDICATOR]
-
Wastewater Infrastructure: [DETERMINE INDICATOR]
-
Changes in effluent quality [DETERMINE INDICATOR]
-
Solid waste: [DETERMINE INDICATOR]
-
Local Roads and Bridges: [DETERMINE INDICATOR]
- Capacity Building: [DETERMINE INDICATOR]
SCHEDULE F - Communications Protocol
The Parties agree that Canadians have a right to transparency and public
accountability, which is best served by full information about the benefits
of the New Deal for Cities and Communities.
This communications protocol establishes the principles and practices that
will guide all announcements and events related to this Agreement, funding
to municipalities under this Agreement and the New Deal. Communications activities
may include, without limitation, major public events or announcements, or
communications products such as speeches, press releases, websites, advertising,
promotional material or signage.
The Parties agree that:
-
A public event will mark the signing of this Agreement. This event will
be developed by communications officials from Canada, Ontario, AMO and Toronto
and will provide for municipal involvement and media participation.
- In addition to joint communications activities, Canada, Ontario, AMO and
Toronto may include messaging in their own communications products and activities,
around their commitment to the New Deal and other initiatives and investments
in cities and communities.
The Government of Canada agrees that:
-
It will make periodic announcements, through public events, press releases
and/or other mechanisms, of the transfer of federal gas tax revenues to
AMO and Toronto.
- It will make regular announcements, on a city or regional basis, of projects
that have benefited from federal gas tax investments. Key milestones may
be marked by public events, press releases and/or other mechanisms.
- It will report regularly to the public on the outcomes of the investments
entered into under this Agreement, including through the Treasury Board Secretariat
Canada's Annual Performance Report, and through the National Evaluation.
AMO and Toronto agree that:
-
All communications referring to projects funded under this Agreement
will clearly acknowledge the contributions made by Canada.
- All communications materials referring to the sharing of federal gas tax
revenues with municipalities will recognize that this initiative forms part
of the New Deal through the use of the Canada wordmark and of a tagline.
- They will report regularly to the public on the outcomes of the investments
entered into under this Agreement, including through the Outcomes Reports
described in this Agreement.
AMO agrees that:
Funding Agreements with Municipalities will include the provisions included
this Protocol, particularly that:
-
All communications by the Municipality referring to projects funded under
this Agreement will clearly recognize Canada's investments.
- Municipalities will ensure permanent signage at the location of projects
receiving investments under this Agreement, prominently identifying the Government
of Canada's investment and including the Canada wordmark. Where there is
no fixed location for signage, such as a transit vehicle, a prominent marker
will recognize the Government of Canada's contribution. All signage/plaques
will be located in such a way as to be clearly visible to users, visitors
and/or passersby.
- The timing of public events shall be sufficient to allow for all orders
of government to plan their involvement. Each Party shall provide a minimum
of 21 days notice of an event or announcement.
- Unless otherwise arranged, the Parties shall each pay their own costs associated
with their communications activities.
- The Parties agree that they and Eligible Recipients will each receive appropriate
recognition in joint communications materials.
- Joint communications material and signage will reflect Government of Canada
communications policy, including the Official Languages Act, and federal-provincial/territorial
identity graphics guidelines.
Assessment
Communication results will be assessed as part of the evaluation process.
SCHEDULE G - Integrated Community Sustainability Plans
Municipal governments in Ontario operate with a sophisticated and comprehensive
statutory and regulatory framework and are accountable to their residents
for all aspects of municipal policy making, including operations and capital
investment activities.
Ontario has demonstrated its leadership in sustainability planning through
its well-established land-use planning and initiatives to protect the environment
and provide safe drinking water in Ontario.
Municipal governments, through their Official Plans, under the Ontario
Planning Ac,, strive to reflect environmental objectives which
are implemented through their municipal planning decisions, Municipal capital
plans, strategic plans and sustainability plans. As such, municipalities have
demonstrated their commitment to sustainability.
The purpose of the integrated community sustainability plan is to enhance
or build upon existing planning instruments and processes.
Over the life of the Agreement, municipalities will be required to demonstrate
through its existing planning instruments and processes or through the creation
of new planning document that the municipality has:
-
a co-ordinated approach to community sustainability (e.g., linkages of
various plans, planning and financial tools that contribute to sustainability
objectives)
-
reflected and integrated social, cultural, environmental and economic
sustainability objectives in community planning
- collaborated with other municipalities where appropriate to achieve sustainability
objectives
-
engaged residents in determining a long-term vision for the municipality.
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