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Gas Tax AgreementCanada-Ontario - Association of municipalities of Ontario - City of TorontoAgreement for the transfer of federal gas tax revenues under the New Deal for Cities and Communities2005- 2015Help on accessing alternative formats, such as PDF, PPT and ZIP files, can be obtained in the alternate format help section.
This Agreement made as of June 17, 2005
PREAMBLEWHEREAS Canada, 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. WHEREAS Canada, 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. WHEREAS Canada, 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. PRINCIPLESThe 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
"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:
"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:
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
c) SchedulesThe 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) PrecedenceIn 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 PrinciplesAll 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 AGREEMENTThe purpose of this Agreement is to:
PART I - GAS TAX FRAMEWORK1 GAS TAX PURPOSE / OUTCOMESa) PurposeGas 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:
b) OutcomesGas Tax Funds will support the following environmental objectives:
2 CONTRIBUTION PROVISIONSa) AllocationCanada's total contribution for the benefit of Eligible Recipients in Ontario is as follows:
b) PaymentProvided 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:
c) AppropriationsA 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 MECHANISMa) AllocationCanada, 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:
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 MechanismFunds will be delivered to Eligible Recipients via three complementary mechanisms:
4. Oversight CommitteeUpon 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 PARTIES1 CANADA - ONTARIOCanada 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 CommitmentsCanada agrees that it:
b) Ontario's CommitmentsOntario will ensure the long-term sustainability of Ontario's communities, through its comprehensive framework, including:
No roleOntario 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 informationOntario 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 Ontarioa) Canada's CommitmentsCanada agrees that it will:
b) AMO commitmentsAMO agrees that it will:
c) Allocation, Delivery Mechanism and Use of FundsAMO 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 CostsFunds 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 CommitmentsEligible 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 ProjectsTo 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) ContractingAMO 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) ReportingAMO will :
AMO will require Eligible Recipients, excluding Toronto, to commit to:
i) AuditsAMO 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) EvaluationNo 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 TORONTOa) Canada's CommitmentsCanada agrees that it:
b) City of Toronto commitmentsThe City of Toronto agrees to:
c) Applicable SchedulesSchedule B, Schedule F and Schedule G are applicable to Canada-Toronto commitments under this Agreement. d) PaymentProvided 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) ReportingToronto 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:
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) AuditsAn 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) EvaluationNo 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 CommitmentsToronto agrees to:
i) Stacking
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) RatificationThis Agreement is being executed on behalf of Toronto by the Mayor thereof, to be ratified as required by Toronto City Council. l) Administration CostsAll 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-OPERATIONStrong Communities CommitteeThe 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:
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. AMOCanada, 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 TorontoCanada, 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 Provisions1. DISPUTE RESOLUTION, DEFAULT, REMEDIES AND INDEMNITYa) Dispute resolutionThe 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 Default1. Canada may declare that an event of default has occurred if Ontario, AMO or Toronto has:
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:
3. Canada may declare that an event of default has occurred if Toronto has:
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) RemediesIf 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:
d) IndemnityAMO 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:
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 Renewala) TermThis 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) ReviewFollowing 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 COMMUNICATIONSThe Parties hereby agree to follow the terms of the Communications Protocol as outlined in Schedule F. 4 Miscellaneousa) Binding ObligationsEach 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) SurvivalThe 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 lawThis Agreement is governed by the laws applicable in Ontario. d) Debts Due to CanadaAny 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 BenefitNo 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 AgencyIt 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 RepresentNothing 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 SignatureThis Agreement may be signed in counterpart, and the signed copies will, when attached, constitute an original Agreement. i) Values and Ethics CodeNo 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) SeverabilityIf 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) WaiverA 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 FeesOntario 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 AgreementIf 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) NoticeAny 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 Facsimile: 613-952-4978 Notice to Ontario will be addressed to: Assistant Deputy Minister, Local Government Division Facsimile: 416-585-6434 Notice to AMO will be addressed to: Executive Director Facsimilie: 416-971-6191 Notice to City of Toronto will be addressed to: City Manager Facsimile: 416-392-1827 Each Party may change the address that it has stipulated by notifying in writing the other party of the new address. 5 SIGNATURES
SCHEDULE A - Eligible Categories1 ESMI Projects include the following:a) Public transit, e.g.:
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.:
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:
SCHEDULE B- Eligible CostsEligible Costs1 Project CostsEligible 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:
1.1 Employee and Equipment CostsIn 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:
1.2 Administration CostsThat portion of Funds representing interest earned, may be used to pay for administration costs. Ineligible CostsCosts related to the following items are ineligible costs:
SCHEDULE C- Eligible Recipient RequirementsEligible Recipients shall:
(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.
SCHEDULE D - Reporting and Audits1. Reporting1.1 Annual Expenditure Report1.1.1 The Annual Expenditure Report will report on:
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 Report1.2.1 The Outcomes Report will report on:
2. Audit Report2.1 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 IndicatorsThe 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:
Outputs:
SCHEDULE F - Communications ProtocolThe 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:
The Government of Canada agrees that:
AMO and Toronto agree that:
AMO agrees that: Funding Agreements with Municipalities will include the provisions included this Protocol, particularly that:
General
AssessmentCommunication results will be assessed as part of the evaluation process. SCHEDULE G - Integrated Community Sustainability PlansMunicipal 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:
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