Notice and Agenda MOTION TO MOVE INTO CLOSED SESSION (5:00 P.M.)

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1 Notice and Agenda City of Brockville Council Meeting Tuesday, January 12, 2010, 7 p.m. Brockville Memorial Centre, Community Hall Page MOTION TO MOVE INTO CLOSED SESSION (5:00 P.M.) THAT pursuant to Municipal Act, 2001, Sections 239 (2), (c), (e) and (f), Council resolve itself into the Committee of the Whole, In Camera, closed to the public to consider: 1. a proposed or pending acquisition or disposition of land by the municipality or local board; 2. litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board; 3. advice that is subject to solicitor-client privilege, including communications necessary for the purpose; 17.1 (a) REPORT OF THE COMMITTEE OF THE WHOLE IN CAMERA THAT Council rise from Committee of the Whole, In Camera and the Chairman report that all recommendations adopted in Committee of the Whole, In Camera, be adopted (b)mayor's REMARKS 17.2 DISCLOSURE OF INTEREST 17.4 (a) MOTION TO MOVE INTO COMMITTEE OF THE WHOLE COUNCIL THAT we adjourn and meet as Committee of the Whole Council, with the Mayor in the Chair (b)correspondence, COMMUNICATIONS AND PETITIONS 17.4 (c) DELEGATIONS Mr. Lucas Pearson, Tunnel Bay Marina Ltd. Mr. Pearson will address Council in relation to the design and operations within Tunnel Bay. Page 1 of 35

2 Notice and Agenda Council Meeting, Tuesday, January 12, 2010 Page (c) DELEGATIONS Mr. Bob Pearce, Brockville and District Chamber of Commerce Mr. Pearce will address Council in regard to Tunnel Bay Harbour Marina Design. Mr. Gino Giannandrea, Maritime Discovery Centre Committee Mr. Giannandrea will address Council regarding the Partnership Agreement between the City of Brockville and Tall Ships Landing Inc. Boardwalk Landing, Marina Redesign A representative from the Boardwalk Landing will address Council with respect to the Marina Redesign. Boardwalk Landing, Broad Street Parking A representative of the Boardwalk Landing will address Council with respect to the changes to on-street parking related to the redevelopment of Broad Street. Mr. Colin Williams Mr. Williams will address Council with respect to the proposed amendments to the City/TSL Partnership Agreement (d)staff REPORTS Tender for Contract Water Pollution Control Centre Upgrades THAT Council accept the tender from J.C. Sulpher Construction Ltd. in the amount of Thirty-four million, seven hundred and ninety-two thousand, nine hundred and one dollars ($34,792,901.00) excluding GST for Contract No for the Water Pollution Control Centre Upgrades; and THAT funding for this contract be allocated from account Program Contribution Agreements RinC Memorial Centre and Youth Arena THAT Council authorize the execution of the Contribution Agreements with the Page 2 of 35

3 Notice and Agenda Council Meeting, Tuesday, January 12, 2010 Page 17.4 (d)staff REPORTS Government of Canada and the Province of Ontario for the RinC Program at the Centennial Youth Arena (R1391) and the Brockville Memorial Centre (R1392); and THAT the necessary by-law be enacted (e) REPORTS BOARDS AND COMMITTEES ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE Councillor J. Baker, Chair Councillor M. Kalivas, Councillor S. Williams Meeting held January 5, 2010 EDP - REGULAR AGENDA TUNNEL BAY HARBOUR MARINA DESIGN THAT Brockville City Council approve the Tunnel Bay Harbour Marina redesign as depicted in Option C attached to report ; and THAT the Mayor and Clerk are hereby authorized to execute all documentation associated thereto (f) NEW BUSINESS - REPORT FROM MEMBERS OF COUNCIL Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Centre Amendments to City/TSL Partnership Agreement THAT the recommended terms of agreement dated December 15, 2009 between the Corporation of the City of Brockville and Tall Ships Landing Development Inc. and the Steering Committee of the Maritime Discovery Centre of the 1000 Islands as presented by the Maritime Discovery Centre Facilitation Committee chaired by Gino Giannandrea be approved be duly prepared and executed in accordance with established City procedures (g)motion TO RETURN TO COUNCIL THAT we revert from Committee of the Whole Council, to Council. Page 3 of 35

4 Notice and Agenda Council Meeting, Tuesday, January 12, 2010 Page 17.5 ADOPTION OF REPORT OF THE COMMITTEE OF THE WHOLE COUNCIL THAT the report of the Committee of the Whole Council be adopted and that the necessary actions or by-laws be enacted UNFINISHED BUSINESS 17.7 EMERGENCY BUSINESS 17.8 BY-LAWS A By-law to Authorize the Appointment of Municipal Law Enforcement Officers and Peace Officers as it Applies to the Private Property of The Brockville General Hospital 75 Charles Street site and 42 Garden Street site Being A By-Law to Authorize the Mayor and City Clerk to Execute an Agreement Between the Corporation of the City of Brockville and Her Majesty the Queen in Right of Ontario as Represented by the Minister of Energy and Infrastructure and the Minister of Health Promotion for the Rehabilitation of Centennial Youth Arena and of the Brockville Memorial Athletic Complex BYLAWS FIRST AND SECOND READING THAT By-laws Numbered and be introduced and the same be now read a first and second time. BYLAWS THIRD READING THAT By-laws Numbered and be now read a third time, signed by the Mayor and Clerk, sealed with the Seal of the Corporation and be recorded. CONFIRMATORY BYLAW FIRST AND SECOND READING THAT By-law Number to confirm the Proceedings of Council at its meeting held on January 12, 2010 be read a first and second time. CONFIRMATORY BYLAW THIRD READING THAT By-law Number to confirm the Proceedings of Council at its meeting held on January 12, 2010 be now read a third time, signed by the Mayor and Clerk, sealed with the Seal of the Corporation and be recorded. Page 4 of 35

5 Notice and Agenda Council Meeting, Tuesday, January 12, 2010 Page 17.9 MAYOR'S ANNOUNCEMENTS MEDIA QUESTION PERIOD ADJOURNMENT THAT Council adjourn its proceedings to the next regular meeting scheduled for January 26, The meeting adjourned at. Page 5 of 35

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7 BROCKVILLE AND DISTRICT Chamber of Commerce 3 Market St. W., Suite #1 Brockville, ON K6V 7L2 Tel Fax info@brockvillecharnber.com President Mary Jean McFall Templeman Menninga LLP Past President Bob Pearce The Recorder & Times 1st Vice President Heather Halladay ScotiaMcLeod Corporate Secretary David Keenleyside TD Canada Trust Treasurer Sean Somerville Somerville Accounting Services Directors Tom Blanchard UML Property Management Gary Brett Brett s Valu-Mart Sueling Ching Brockville and Area YMCA Michael Dingman Leslee Sports Inc. Sherri Fournier-Hudson Riverside Ford Sales Ltd. Laura Good Employment & Education Centre Suzanne Lavin Proter & Gamble Inc. January 6, 2010 Mayor and Council City of Brockville Box 5000 Brockville, Ontario Dear Sir or Madam: The Brockville and District Chamber of Commerce is the Voice of Business in this community serving over 530 members including businesses of all sizes and within all sectors. Our mission statement is to foster a competitive business environment in the Brockville region that benefits the people of this region through the growth ofjobs, wealth and quality of life. The Brockville & District Chamber of Commerce (the Chamber ) has reviewed and discussed the Proposed Terms of Agreement presented by the Steering Committee of the Maritime Discovery Centre of the 1000 Islands (the MDC ) at the City Council meeting held on December 15, 2009 addressing changes proposed to the Partnership Agreement between the City of Brockville and Tall Ships Landing Developments Inc. and related and proposed agreements (together, the Amended Terms ). The Chamber takes the following position on the Amended Terms, and on the overall project comprehending the MDC and the connected Tall Ships Landing ( TSL ) condominium project. 1. The Chamber s position relative to the MDC, on record, prior to the announcement of the Amended Terms, has been that it fully supports the project provided that it is conducted in a fiscally responsible manner. 0 Voice ofbusiness Mr. Bob Pearce, Brockville and District Chamber of Commerce Page 7 of 35 Since 1906

8 2. The Chamber reiterates and restates this position and has the following further comment on its position on the MDC, TSL and the Amended Terms: a. The Chamber believes that this project, being the MDC and TSL, is more critical than ever to the economic well-being of Brockville and area and strongly recommends to City Council that it do everything in its power to support the fulfillment of this vision for our community. President TernplemanMenningaLLP b. This position of support for the project is consistent with the Chamber s longstanding ongoing support for (1) Downtown revitalization; and (2) the documented need for an Anchor Attraction on Brockville s waterfront. Past President,.. Bob Pearce c. The Chamber s support for this project is predicated, in part, on The Recorder & Times its view that the Fuller Group has a first-class reputation for ist Vice President quality design and construction. It is a committed, established Heather Halladay developer with a proven track record. Brockville needs and ScotiaMcLeod. should be able to depend on this credibility. Corporate Secretary David Keenleyside TD Canada Trust d. The Chamber supports the City s view that the MDC and the TSL condominium tower should be built concurrently and Treasurer. Sean Somerville believes that the provisions in the Amended Terms adequately address this concern. ;omerville Accounting Services Directors Tom Blanchard e. The Chamber recommends to the City, the MDC and TSL that, UML Property Management for the sake of transparency, there needs to be public disclosure Gary Brett of the basis for the construction budget of the MDC Brett s Valu-Mart (recommend use of the budget presented in the Building Sueling Ching Canada application). Alternatively, the City could provide a Brockville and Area YMCA.. Capital Project Management page in its conventional format Michael Dingman that outlines total cost and all sources of funding for public Leslee Sports Inc. release. Sherri Fournier-Hudson Riverside Ford Sales Ltd. Laura Good mployment & Education Centre.. Suzanne Lavin Proter & Gamble Inc. f. The Chamber strongly recommends that the City and TSL resolve the issues relating to the redesign of the Marina so as not to jeopardize the balance of this project. g. The Chamber strongly recommends to the City that the City needs to provide, at its expense, adequate additional parking in the immediate vicinity of the MDC to satisf the increased demand for parking created by the MDC and TSL. The additional parking will also serve to remedy an existing need for parking for commercial businesses in the Boardwalk building. Mr. Bob Pearce, Brockville and District Chamber of Commerce Page 8 of 35

9 BROCKVILLE AND DISTRICT Chamber of Commerce 3 Market St. W., Suite #1 Brockville, ON K6V 7L2 Tel Fax info@brockvillechamber.com President Mary Jean McFalI Templeman Menninga LLP h. The Chamber views the City s commitment to this project as an investment in the future. It is a unique and complicated project. The City has the opportunity to take a calculated risk in order to realize a vision for the future of our community. The Provincial and Federal governments both have demonstrated their belief in investing in the future of Brockville. It is time for the City to do the same. 3. We recommend that you vote Yes to the Proposed Terms of Agreement presented by the Steering Committee of the Maritime Discovery Centre of the 1000 Islands on January 12, Past President Bob Pearce The Recorder & Times 1st Vice President Heather Halladay ScotiaMcLeod Corporate Secretary David Keenleyside TD Canada Trust Treasurer Sean Somerville Somerville Accounting Services Directors Tom Blanchard UML Property Management Gary Brett Brett s Valu-Mart Sueling Ching Brockville and Area YMCA Michael Dingman Leslee Sports Inc. Sherri Fournier-Hudson Riverside Ford Sales Ltd. Laura Good Employment & Education Centre Suzanne Lavin Proter & Gamble Inc. Voice ofbusiness Since 1906 Mr. Bob Pearce, Brockville and District Chamber of Commerce Page 9 of 35

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11 January 4, 2010 REPORT TO COUNCIL - JANUARY 12, COSGROVE, P.ENG. TENDER FOR CONTRACT DIRECTOR OF OPERATIONS WATER POLLUTION CONTROL CENTRE UPGRADES CJ. RECOMMENDED THAT Council Thirty-four million, dollars Pollution Control accept the tender seven ($34,792,901.00) Centre from J. C. Construction Ltd. in hundred and ninety two nine hundred excluding GST for Contract No for Upgrades; and Suipher thousand, the amount of and one the Water THAT funding for this contract be allocated from account PURPOSE The purpose Upgrades. of this report is to award the tender for the Water Pollution Control Centre ANALYSISIOPTIONS Tenders for Contract No Water Pollution Control Hall on Wednesday, December 16, 2009 at 4:00 p.m. The following is a results: the Centre were opened at summary City of Torbear Contracting Inc J.C. 3. Fuller Construction Company Ltd 4. North America Construction (1993) Ltd 5. Inc Thomas Suipher Construction Ltd Pomerleau $34,246, $34,792, $35,800, $36,296, $37,200, Engineer s Estimate (based on final design) $36,479, The tenders have been checked and found to be in order Tender for Contract Water Pollution Control Centre Upgrades Page 11 of 35

12 Report Tender for Contract Water Pollution Control Upgrades Page 2 The bids were evaluated to identify the cost of each bid to the City, taking into account the impact of the July 1, 2010 implementation of the Harmonized Sales Tax. The method of evaluation was confirmed by the project managers and legal counsel to ensure the best value for the City while treating all bidders fairly. Attachment 1 to this report details this evaluation as completed by MHPM Project Managers Inc. The total cost to the City, excluding GST and HST is summarized as follows: 1. J.C. Sulpher Construction Ltd $33,922, Torbear Contracting Inc $34,139, Thomas Fuller Construction Company Ltd $34,714, North America Construction (1993) Ltd $35,502, Pomerleau Inc $36,334, Based on this evaluation, the bid from J.C. Sulpher Construction Ltd. represents the lowest cost to the City. The proposed work will include the construction of all of the tankage, piping, buildings and control systems at the WPCC necessary to add a secondary treatment process. addition, the project includes modifications and equipment replacement in In the existing WPCC and pumping stations associated with the addition of the secondary treatment process. The construction of the project is scheduled to commence Substantial performance is to be achieved by March 1, in February POLICY IMPLICATIONS J.C. Sulpher Construction Ltd. was pre-qualified as an accepted general contractor and acceptance of its bid is consistent with the City s rights under the tender documents Tender for Contract Water Pollution Control Centre Upgrades Page 12 of 35

13 Report Tender for Contract Water Pollution Control Upgrades Page 3 FINANCIAL CONSIDERATIONS There are sufficient funds available expenditures: in the project budget to accommodate these Expenditures 1. DESCRIPTION PROJECT BUDGET ESTIMATED FINAL COST DIFFERENCE Construction Cost $36,479,374. $33,922,202. $2,557, Engineering $4,378,400. $4,378,400. $0 3. Project Management $692,318. $692,318. $0 4. Hydro Feed $300,000. $300,000. $0. Shop Drawings Equipment - Preselected $75,000. $75,000. $0 6. Geotechnical Services $10,000. $10,000. $0 7. Professional Services $15,000. $15,000. $0 8. Application Fees $18,000. $18,000. $0 9. Advertising $5,000. $5,000. $0 Contingency/rooftop solar/other project enhancements $4,026,908. $6,584,080. ($2,557,172) TOTAL $46,000,000. $46,000,000. $0 Project Funding 1. CSIF DESCRIPTION PROJECT BUDGET ESTIMATED FINAL COST DIFFERENCE Federal $22,997,500. $22,997,500. $0 2. ReNew Ontario $7,669,165. $7,669,165. $0 3. Development Charges $1,020,000. $1,020,000. $0 4. Debentures $7,990,000. $7,990,000. $0 5. Hydro One Reserve $6,323,335. $6,323,335. $0 TOTAL $46,000,000. $46,000,000. $ Tender for Contract Water Pollution Control Centre Upgrades Page 13 of 35

14 Report Tender for Contract Water Pollution Control Upgrades Page 4 CONCLUSION It is recommended that the tender for the Water Pollution Control Centre Upgrades be awarded to J.C. Sulpher Construction Ltd. C. J. Cosgrove, I JEng. D. Cyr 1i4 Director of Operaions Director of Finance B. Casselman City Manager Tender for Contract Water Pollution Control Centre Upgrades Page 14 of 35

15 2\TEACHMENT 1 mhpm PROJECT LEADERS January 4, 2010 Conal Cosgrove, Director of Operations City of Brockville One King Street West, P0 Box 5000 Brockville ON K6V 7A5 Dear Conal, Re: Brockville Water Pollution Control Centre (WPCC) Upgrades Project Recommendation for Award of Contract The City of Brockville issued a call for competitive tenders on November 10, 2009 for services to construct the Brockville WPCC Upgrades. Bids received on December 16, 2009 from five pre-qualified general contractors were publicly opened on the same day. The submitted bids were subsequently reviewed by representatives of the City, the project manager and the consultant. The bids were evaluated to identify the cost to the City, giving regard to the impact of the July 1, 2010 implementation of Harmonized Sales Tax. For each bid the cost to the City was calculated as the tendered price net of the amount of PST which will not be payable as a consequence of HST implementation. This evaluation, which ensures the best value for the City while treating all bidders fairly and equally, was confirmed by Aird & Berlis, the City s expert legal advisor. The attached spreadsheet (doc ) details the foregoing calculations. The lowest cost to the City, in the amount of $33,922,202.17, is obtained from the bid by J.C. Sulpher Construction Ltd. Insofar as the tendered amount is within the project budget, and the contractor s schedule meets the project completion date of March 31, 2012, we recommend that the contract for construction services on the Brockville WPCC Upgrades project be awarded to J.C. Sulpher Construction Ltd. for the amount of $34,792,901 plus GST. Yours truly, Lucas Smith, M.Sc., MBA, PMP, LEED AP Senior Project Manager iiilipm. coin MlPM PflOJEGT MANAGERS NC. 272 Street. Otrewe, Oriraeo, Cnec K2C 1 tet S Fax: Cry Pwk 0ree, Siete 208, Otraw:.r, Cn1are, Carrad K.I ta3 TeI Fax Tender for Contract Water Pollution Control Centre Upgrades Page 15 of 35

16 A ITACHMENT 1 Brockville WPCC Upgrades MHPM Project Managers Inc. Summary of Tender Results (1) BId Summary Bidder Tendered Amount inclusive of PST included in Total Tendered PST Amount Torbear Contracting Inc. $ 34,246, $ 127, ic. Suipher Construction Ltd. $ 34,792, $ 1,042, Thomas Fuller Construction Company Ltd. $ 35,800, $ 1,300, North America Construction (1993) Ltd. $ 36,296, $ 950, Pomerleau Inc. $ 37,200, $ 1,036, Source: Bid Documents Forecast Percentage Completed by June 30, 2010 Estimated project cost $ 36,479,374 Estimate of work complete by July 1, 201C $ 6,006,031 Percentage of work complete by July 1, % Percentage of PST recoverable 83.5% Source: Total Cost to City Bidder Tendered Amount inclusive of PST Recoverable Cost to City PST ic. Suipher Construction Ltd. $ 34,792, $ 870, $ 33,922, Torbear Contracting Inc. $ 34,246, $ 106, $ 34,139, Thomas Fuller Construction Company Ltd. $ 35,800, $ 1,085, $ 34,714, North America Construction (1993) Ltd. $ 36,296, $ 793, $ 35,502, Pomerleau Inc. $ 37,200,000.00$ 865, $ 36,334, Tender for Contract Water Pollution Control Centre Upgrades Page 16 of 35

17 REPORT TO COUNCIL JANUARY 12, B. CASSELMAN 2010 PROGRAM CONTRIBUTION AGREEMENTS CITY MANAGER RinC MEMORIAL CENTRE AND YOUTH ARENA RECOMMENDATION: THAT Council authorize the execution of the Contribution Agreements with the Government of Canada and the Province of Ontario for the RinC Program at the Centennial Youth Arena (RI 391) and the Brockville Memorial Centre (Rl 392); and THAT the necessary by-law be enacted. PURPOSE To obtain Council s authorization to enter into the Contributions Agreements for the RinC Programs for the Centennial Youth Arena and the Brockville Memorial Centre Complex projects. BACKGROUND The City of Brockville was successful in two funding applications: Improvements to the Centennial Youth Arena for $630,000 Improvements to the Memorial Centre Athletic Complex for $651,670. ANALYSIS In August 2009, the City received correspondence from the Ministry of Tourism. The funding is conditional on the following item: The Province receiving a certified copy of the municipal by-law designating the signing officers and authorizing the execution of the Contribution Agreement. POLICY IMPLICATIONS This project represents many of the core values contained in our Strategic Plan including working in partnership with community organizations to enhance our facilities and the community Program Contribution Agreements RinC Memorial Centre and Youth Arena Page 17 of 35

18 Report 2010 RinC Contribution Agreements Program Memorial Centre and Youth Arena Page 2 FINANCIAL CONSIDERATIONS Both projects are governments with being funded equally by contributing $427,222. each the Federal, Provincial and Municipal The City s portion of Capital surplus the RinC Program is being funded through reallocation 2009 through 2010 Capital Budget ($213,111). Funds ($213,111)and the the CONCLUSION As required by agreements. the agreements, it is recommended that Council enter into the D. Cyr U B. Director of City Manager Finance Casselman Program Contribution Agreements RinC Memorial Centre and Youth Arena Page 18 of 35

19 Committee Minutes Economic Development & Planning Committee January 5, :15 pm City Hall - Council Chambers ROLL CALL COMMITTEE MEMBERS: Councillor J. Baker, Chair Councillor M. Kalivas Councillor S. Williams Mayor D. Henderson, Ex-Officio OTHERS: Councillor G. Beach Councillor J. Fullarton Councillor L. Journal Councillor H. Noble Councillor L. Severson STAFF: Ms. T. Brons, Administrative Coordinator (Recording Secretary) Mr. B. Casselman, City Manager Mr. R. Burke, Chief Fire Prevention Officer Mr. C. Law, Municipal Intern Mr. D. Paul, Director of Economic Development Ms. M. Pascoe-Merkley, Director of Planning Ms. S. Seale, City Clerk The Chair called the meeting to order at 5:15 p.m. STAFF REPORTS (i) TUNNEL BAY HARBOUR MARINA DESIGN Mr. Bob Casselman, City Manager, provided an overview of Report the Tunnel Bay Harbour Marina Redesign. Mr. Casselman noted that in response to the City of Brockville's request, Tall Ships Landing Developments Inc. has proposed to provide marina services including the replacement of docks, relocation of fuel services, pump out facilities, washrooms and dock masters office. Page 1 of 4 Councillor J. Baker, Chair Councillor M. Kalivas, Councillor S. Williams Meeting held January 5, 2010 Page 19 of 35

20 Economic Development & Planning Committee January 5, 2010 Three options (A, B or C) for the redesign of the current design of the Tunnel Bay Harbour were presented in Report The City Manager recommended Option A to address the needs of the City and to create a regional attraction and revitalize the historic Downtown of Brockville. DELEGATIONS Mr. Dave Publow and Mr. John Malcolmson, on behalf of the Brockville Yacht Club appeared before the Committee to express their support of the proposal for the redevelopment of the marina area. Mr. Lucas Pearson, owner of Tunnel Bay Marina, stated his support for Option A as he feels it meets the needs set out by the City. Mr. Pearson noted that he feels Option A will provide for more mixed use dockage, a full service marina and integrated water activity by using the resources in the best way possible. Mr. Colin Williams, resident, suggested delaying the execution/signing of the documents until the drawings are no longer "concept" and are complete. Mr. Williams questioned where the boats will line up to get gas as the design shows congestion in the gas pump area. Mr. Williams also noted concern regarding the turning circle at the end of Broad Street being too small for the large tour buses that are anticipated to bring people to the Maritime Discovery Centre. Mr. Casselman noted that the capacity on the gas dock is increased with the proposed plan. Mr. Casselman also indicated that the tour buses are intended to navigate along Flint Street with a pick up and drop off area with parking on John Street parking lot. Mr. Neil Moores of the Boardwalk, stated his opposition to Option A due to the view at the end of Broad Street being obstructed. Mr. Moores provided conceptual drawings of what he foresees the view to be with Option A. Mr. Moores read a document that he feels proves the sea wall is owned by the Boardwalk. Mr. Gary Lalonde, Tunnel Bay Boat Club, expressed support for Option C and requested the City look at all options before a decision is made. He also noted that Option C could provide more transient dock slips. Mr. Larry O'Brien, Tunnel Bay Boat Club, stated his support for Option C. Mr. O'Brien noted that Option C would respect property rights, provide more boat slips and save the City money. Mr. O'Brien referred to a document granting ownership of the water's edge including the south Page 2 of 4 Councillor J. Baker, Chair Councillor M. Kalivas, Councillor S. Williams Meeting held January 5, 2010 Page 20 of 35

21 Economic Development & Planning Committee January 5, 2010 seawall to the Boardwalk. It was also noted by Mr. O'Brien that the Boardwalk currently has twelve boat slips as opposed to the eleven that appear on the proposed options. Mr. O'Brien indicated that the City would not be adding slips with Option A but would with Option C and the City would save money by not relocating the Boardwalk docks. Mr. O'Brien questioned why the Fair Jeanne could not use the waterfront at Hardy Park. Mr. O'Brien indicated that Option A would provide less space for the Boardwalk. Mr. O'Brien indicated that he feels the time line is too short for a decision to be made as the concept drawings were not presented to the Boardwalk until December 23rd. Mr. John Simpson, City Solicitor, stated the City's position with respect to the ownership, rights, obligations and control of the seawall. Mr. Simpson is of the opinion that the seawall is owned by the Federal Government. Mr. Gary Porter, tenant of a City boat slip, questioned if either Option A or C would effect the number of boat slips at Tunnel Bay (owned by the City). Mr. Casselman indicated that both options increase the number of slips. Mr. Terry O'Reilly, resident, stated that he feels if the Boardwalk docks are maintained and the City uses the east seawall then there would be no need to reconfigure Tunnel Bay docks. Ms. Twyla Webb, resident, stated her concern regarding the insufficient number and size of transient boat slips. Mr. Casselman indicated that the proposal will allow for an additional 14 slips along Tunnel Bay. Bob Anderson, resident, questioned if it is necessary for the Fair Jeanne to be docked in Tunnel Bay and recommended moving the Fair Jeanne outside of Tunnel Bay from May 24 to Labour Day. Concern was noted by residents regarding full service marina and access for emergency services. Mr. Burke, Chief Fire Prevention Officer, confirmed that the plans for the marina reconfiguration met all of the necessary requirements for emergency services. Mr. Rob Hammond, resident, noted that he feels the Fair Jeanne should be relocated. Mr. Dale Golledge noted concern regarding the narrow width of the finger docks. Page 3 of 4 Councillor J. Baker, Chair Councillor M. Kalivas, Councillor S. Williams Meeting held January 5, 2010 Page 21 of 35

22 Economic Development & Planning Committee January 5, 2010 Ms. Mary Kathleen McDermott noted that the design should blend in with the historical architecture of the City of Brockville. Mr. Paul Webb recommended moving the Fair Jeanne to the Fuller property. Mr. Webb also recommended attention be given to the size of the transient docks. Councillor Kalivas commented that he believes Option C will be the best compromise. He noted he would prefer that the dock be closer to the seawall (less than eight feet) while ensuring that appropriate security measures are in place and he would also prefer to see the Fair Jeanne moored at a different location (not at the south end). Councillor Baker commented that he supports Option C, but would like it to be improved. Moved by: Councillor Kalivas THAT Brockville City Council approve the Tunnel Bay Harbour Marina redesign as depicted in Option C attached to report ; and THAT the Mayor and Clerk are hereby authorized to execute all documentation associated thereto. CARRIED CONSENT AGENDA Report will be taken to the next regular meeting of Council scheduled for January 12, This meeting will be held at the Brockville Memorial Centre. The meeting adjourned at 8:13 p.m. Page 4 of 4 Councillor J. Baker, Chair Councillor M. Kalivas, Councillor S. Williams Meeting held January 5, 2010 Page 22 of 35

23 1 SUMMARY OF RECOMMENDED TERMS OF AGREEMENT BETWEEN THE CITY OF BROCKVILLE, TSL AND THE MDC DECEMBER 15, 2009 The following are a general description of the recommended amendments to existing agreements or new agreements to be made between the parties. The content of these highlights have come out of the meetings between the representatives of the City and the Developer that were facilitated by the Steering Committee of the MDC. For additional details and more specific wording see the actual documents titled AGREEMENT RECOMMENDED TERMS OF 1. The City shall enter into an agreement of purchase and sale with TSL for the construction and purchase of the 27,000 sq. ft. in and the City s in TSL s favour on TSL MDC. constructing no less than favour on project financing. The City will a The agreement shall be conditional twelve (12) storey condominium authorize expenditure of the money required to do the construction necessary for the blasting, the foundation (to 4 feet below grade) and the footings for the MDC,, estimated at $75,000 which included in the MDC s $1.15 million expenditure between now and June is 2 In order to reduce the long term risk for the City, the P3 Agreement will be amended to provide for an Operating Agreement between the MDC Real Property). and the City (as owner of the The Operating Agreement will provide, in part, for: a. The City will be responsible for the accounting and financial statements of the MDC. b. The MDC will TSL. be responsible to provide financial reporting to City Council and Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 23 of 35

24 2 c. If City Council or TSL is uncomfortable with the financial direction of the MDC and feel that their concerns cannot be resolved the City and TSL have the right to create an Oversight Committee who will apply the necessary financial tests to determine if a Supervisor is required to be appointed to resolve the financial issues. d. The Supervisor, if appointed, shall have full and sufficient authority to make any and all decisions necessary to return the MDC to fiscal health. 3 The letters patent of the NFP will provide that the Board of Directors will be comprised of 12 members. City has the right to appoint 4 members, TSL has the right to appoint 4 members and those 8 members shall have the right to appoint 4 members. The Chair of the Board will have a casting vote in the event of a tie. 4 The current partnership agreement will be modified to recognize that the size of the project is now 27,000 sq. ft. with a capital budget of $18,000,000 and an annual operating budget of $1,500, The Developer will agree to make a cash contribution of $1,080,000 to the MDC regardless of the height of the tower being built. 6 The City will agree to remove the interim date from the Brownfield s agreement with the Developer but the final date for the entire project will remain unchanged. 7 The current partnership agreement will be modified to recognize that the Developer s contribution towards the larger project will now be about $600,000 in land costs and management fees instead of the previous $450,000. Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 24 of 35

25 3 The current partnership agreement will be modified to recognize that the Developer s contribution towards the larger project will include a $1,350,000 donation of the value of the Floor Space Index. 8 The Steering Committee will be free to continue its work to design and undertake any construction activity and decisions necessary to enable a building permit for the MDC and its associated components to be applied for concurrently with the building permit application by the developer for Tower 1. 9 A critical path with strategic dates and benchmarks will be created and all parties will undertake their best efforts to comply with the dates including making necessary changes to the City s purchasing Bylaw. 10 The City will verify that the Holding Symbol on the zoning for the property has been complied with. 11 Within 30 days of the execution of the terms of agreement, the Executive Director of the MDC together with the MDC committee shall negotiate with TSL a formula to determine the percentage allocations to the MDC for shared costs. 12 The MDC will be charged with the tasks of establishing relationship agreements with the restaurant and the hotel. TSL s commitment to build the restaurant will be conditional on the City, as landlord, entering into a non-disturbance agreement with TSL that provides that in the event that the MDC terminates business, the City will not disturb the relationship that the MDC (previously) had with the restaurant to provide convention space, provided that the City will receive the revenue that the MDC previously had received for providing access to the convention space. Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 25 of 35

26 4 13 The parties confirm that the decision on the burying of the hydro line on Flint Street and similar decisions shall continue to be the responsibility of the MDC upon execution of the new Partnership agreement. 14 The agreement will be subject to the redesign of the marina that is satisfactory to both the City and the Developer, in which case the current Memorandum of Agreement will be amended. 15 The City will agree to commit an additional amount of cash of $1,070,000 to create approximately 100 public parking spaces to compensate for the loss of spaces on Broad St. and to accommodate some of the increased needs that will result from the entire development. It is estimated that these spaces will have a value of $2,200,000. The MDC budget and TSL will make up the difference. The City will own these parking spaces but they will be operated by the MDC. The City s cash contribution to the MDC will remain unchanged at $1,500,000 for capital and $150,000 per year in operations. The City s in-kind contributions also remain unchanged. Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 26 of 35

27 RECOMMENDED TERMS OF AGREEMENT December 15, 2009 Parties: THE CORPORATION OF THE CITY OF BROCKVILLE (herein referred to as the City ) TALL SHIPS LANDING DEVELOPMENTS INC. (herein referred to as the Developer or TSL ) STEERING COMMITTEE OF THE MARITIME DISCOVERY CENTRE OF THE 1000 ISLANDS (herein referred to as the MDC ) The following are the recommended terms of agreement between the City, the Developer and the MDC that have come out of negotiations facilitated by the Steering Committee of the Maritime Discovery Centre of the 1000 Islands. Facilitation sessions were held on: November 19, November 23, November 30, December 6 and December 9, For clarity, the following terms are a statement of the spirit of amendments to existing agreements or new agreements to be made between the parties. The formal agreements, as created or amended, will contain wording that captures the spirit of the statements made in this term sheet. There is likely to be wording revision but the spirit will remain constant. The formal agreements / amendments to existing agreements, as applicable, will be prepared and entered into following approval of these terms of agreement by TSL, the MDC and, for the City, Brockville City Council. Concurrent Build Agreement of Purchase and Sale 1. The City shall enter into an agreement of purchase and sale with TSL for the construction and purchase of the MDC which shall be conditional in the City s favour on TSL constructing rio less than twelve (12) storeys of condominium residences in addition to the three (3) podium floors; and conditional in TSL s favour on project financing. Condition date to be December 31, Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 27 of 35

28 The Agreement will contain a statement that TSL will re-state its intention, on a non-binding basis, to construct the full multi-use facility as per the site plan application previously submitted by the Developer and approved by Council. Agreement to include provision for the City to authorize expenditure of the money required to do the construction necessary for the blasting, the foundation (to 4 feet below grade) and the footings for the MDC, between now and June 2010, estimated at $75,000 which is included in the MDC s $1.15 million expenditure between now and June See Appendix A attached. Agreement to include the estimated costs of the freehold and an appendix to outline how costs will be determined for the share of common elements such as mechanical and concrete. The Agreement will provide that the land cost will be donated by the developer; the MDC will be approximately 27,000 square feet and the City shall have satisfied itself that the Agreement reflects those other fundamental aspects of the Building Canada application, as they relate to the base building that formed the basis for the grant. Operating Agreement and Oversight 2. The P3 Agreement will be amended to provide for an Operating Agreement between the MDC and the City (as owner of the Real Property) during the period when the City shall hold title to the MDC. The Operating Agreement will provide, in part, for: a. The City is responsible for the accounting and financial statements of the MDC. b. The MDC will be responsible to provide financial reporting to City Council and TSL on as frequent a basis as required quarterly, perhaps, moving to annual as the operation becomes more mature. c. Financial reporting will include presenting the MDC s financial statements, annual budgets and variance reports. d. If City Council or TSL is uncomfortable with the financial direction of the MDC then the City/TSL and the Board I Staff of MDC will meet and work cooperatively to seek to resolve the financial issues identified. e. The City and TSL have the right to create an Oversight Committee who will apply the necessary financial tests to determine if a Supervisor is required to be appointed to resolve the financial issues identified. 2 Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 28 of 35

29 Composition of the Committee: one appointee of the City (one appointee of TSL and a professional with the necessary credentials for the issue at hand, appointed by agreement of the other two members of the committee. f. Upon the recommendation of the Oversight Committee, City Council shall pass a resolution to appoint the Supervisor whose function shall be to usurp the function of the Board of Directors of the not-for-profit, being the MDC. The Supervisor shall have full and sufficient authority to make any and all decisions necessary to return the MDC to fiscal health. The City shall become responsible for the operation of the MDC through the Supervisor. This does not oblige the City to spend additional money. g. At any time, the City, TSL or the Board of the MDC can apply to the Oversight Committee to determine if the financial issues have been resolved and if the operation of the MDC can be restored to MDC Board and Staff. On recommendation from the Oversight Committee, City Council shall retire the Supervisor and return operations to the MDC Board and Staff. Governance 3. The letters patent of the NFP will provide that the Board of Directors will be comprised of 12 members. The City has the right to appoint 4 members, TSL has the right to appoint 4 members and those 8 members shall have the right to appoint 4 members. The Chair of the Board will have a casting vote in the event of a tie. Scope of the Project 4. The parties agree that the first sentence of paragraph partnership agreement will be modified to read as follows E of the current The Maritime Discovery Centre, as fully constructed, will contain a gross area of approximately 27,000 square feet which will include the Elevated Captain s Walk, Pilot House, a three storey Kelpie Atrium and a Discovery Hall on the third level with a capital budget of $18, and anticipated annual operating budget of $1,500, The concept of the Maritime Discovery Centre, has been further described in: (i) a 40 page Power Point presentation made by the Developer dated September 5, 2007, (ii) an associated White Paper and (iii) the report prepared by The Economic Planning Group of Canada entitled An Anchor Attraction for Brockville: The Maritime Discovery Centre and other Waterfront Enhancements, dated August 2007, copies of which are attached hereto; 3 Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 29 of 35

30 Developer s Contribution 5. TSL agrees to contribute the bonus of $1,080,000 that it had previously offered to pay concurrent on the construction of the MDC without consideration as to the final height of the building. The Developer s contribution shall be provided in installments that are equal to the City s capital investment. If the MDC is not built on these premises due to agreed upon conditions not being met, these amounts constitute sunk costs to both sides and are not recoverable by either from the other and neither party shall be required to make further contributions. 6. The City agrees that Clause 44 of the current Brownfield s Redevelopment/CIP Funding Agreement between the parties will be modified by the removal of that part in which the owner covenants that Phase 1 of the project shall commence no later than June 30, 2009 (later amended 2010) and that Phase 1 shall be substantially completed within 24 months of the commencement date, excepting delays (135) days in aggregate. The balance of the clause will be modified to ensure that the Owners rights to receive Program Assistance under this agreement shall cease following the completion of the last unit of the last phase of the project but in no case shall such rights continue later than June 30, 2022 plus 135 days for delay which does not represent a material change to the current agreement. The balance of the Brownfield s Agreement shall continue in full force and effect without further amendment unless mutually agreed by the parties to it. 7. The parties agree that Section 3 paragraph (b) of the current partnership agreement will be modified to read as follows: The Developer shall issue an invoice to the City for the development of the Maritime Discovery Centre the Developer s construction management fee for project and management services (in line with a CCDC Construction Management Agreement without risk contract) to be provided by the Developer equivalent to 6% (being 2% for project management during the design development stage and 4% for project management during the construction stage) based on an estimated building construction budget of $7,400, relating to the construction of phase one structure of the Maritime Discovery Centre (excluding any interior fixtures, chattels and improvements), undertaken of the Tall Ships Landing concurrently with the construction of Phase development (which project and construction management fee shall not I Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 30 of 35 4

31 include third party consultants costs incurred relating to the design and construction of the Maritime Discovery Centre) (in this Agreement, such construction management fee is hereinafter referred to as the Construction Management Fee ). For greater certainty, there will be no increase in the Construction Management Fee should the construction budget for the Maritime Discovery Centre exceed $7,400, provided the construction thereof occurs during Phase Landing development as herein provided. I of the Tall Ship The Developer will enter into a Donor s Agreement with the City confirming, among other things, its donation of a sum equal to the Construction Management Fee invoiced to the Maritime Discovery Centre to offset such amount. The Donor s Agreement will provide that the donation of the Cpnstruction Management Fee will be co-terminus with substantial performance (as the term is defined in the Construction Lien Act of Ontario) of Phase I of the Tall Ships Landing development. For the of the Tall Ships purpose hereof, substantial performance of Phase Landing development shall be the date of publication of a Certificate of Substantial Performance pursuant to the Construction Lien Act in respect of the Tall Ships Landing development to work relating to said Phase I including the Maritime Discovery Centre to the extent of its phase one construction. Without limiting the generality of the foregoing, any project and construction management services provided by the Developer in respect to the Maritime Discovery Centre beyond the date of publication of a Certificate of Substantial Performance for Phase I I of the Tall Ships Landing development including fee payable to the Developer for same must be the subject of a further agreement made between the City and the Developer. The Developer shall make an in-kind contribution to the Maritime Discovery Centre which will consist of the agreed upon fair market value of $150, of that portion of the Lands upon which the Maritime Discovery Centre will be constructed. The Partnership Agreement shall provide for the Developer to issue an invoice to the City for the development of the Maritime Discovery Centre to reflect the Developer s fee on Floor Space Index (FSI) of 27,000 sq. ft. at $50 per sq. ft. for a total of $1,350,000. The Developer will enter into a Donor s Agreement with the City confirming, among other things, its donation of $1,350,000 to the Maritime Discovery Centre to offset such amount. Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 31 of 35 5

32 Design and Other Decisions 8. Both parties will agree that the MDC committee will be free to continue its work to design and undertake any construction activity and decisions necessary to enable a building permit for the MDC and its associated components to be applied for concurrently with the building permit application by the developer for Tower 1 including, but not limited to, all remediation and foundation construction. See Appendix A. Critical Path 9. The parties agree that the MDC together with the Developer will establish the strategic dates and benchmarks (critical path) for the project and the City, the MDC and the Developer will undertake their best effort to comply with their respective obligations to complete any tasks within the agreed to dates. To facilitate meeting these deadlines and to comply with the Building Canada Contribution Agreement, the City agrees to waive compliance with its purchasing by-law with reference to the construction phase of the MDC. Removal of Holding Symbol 10. The City agrees that it will give the Developer a letter as of the date that these Terms of Agreement are approved by City Council to verify that the H2 Holding Symbol on the zoning for the property has been complied with. Percentage Allocation of Capital Costs and Operating Expenses to MDC 11. The parties agree that within 30 days of the execution of the terms of agreement, the Executive Director of the MDC together with the MDC committee shall negotiate with TSL a formula to determine the percentage allocations to the MDC for: a. all shared capital construction costs for the project; b. all shared operating expenses for the MDC going forward, including agreeing upon what operating expenses will be metered. 6 Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 32 of 35

33 The Developer will receive recognition by the MDC on this percentage allocation basis for contributions it has made towards its shared capital costs as payment on account of the zoning bonus. The percentage allocation of the shared operating expenses and metered expenses shall be confirmed in the Operating Agreement to be made between the City and MDC as well as the Shared Operating Costs Agreement between the MDC, the City and TSL. The City s costs to date on this project shall also be submitted and reviewed by MDC Committee for purposes of submitting for reimbursement under Building Canada grant or for credit towards the City s contribution. Relationship of MDC with Hotel and Restaurant 12. The parties agree that as soon as possible following the execution of these terms of agreement, the Executive Director of the MDC together with the MDC committee shall negotiate with TSL to establish the parameters for the commercial relationship between the hotel, restaurant and the MDC. Bearing in mind the Developer s restatement in Paragraph 1 of this Proposal as to his non-binding intention to build the full multi-use facility per the site plan agreement, nothing in this Paragraph 12 obligates the Developer to build the hotel. It is understood that TSL s commitment to build the restaurant is conditional on the City, as landlord, entering into a non-disturbance agreement with TSL in form and content satisfactory to the City and TSL. The agreement, which may be assigned by TSL to the tenant/operator of the restaurant, shall provide that in the event that the MDC terminates business, the City will not disturb the relationship that the MDC (previously) had with the restaurant to provide convention space, provided that the City will receive the revenue that the MDC previously had received for providing access to the convention space. Nothing in the non-disturbance agreement will restrict the City s right to sell the MDC premises in its discretion. Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 33 of 35 7

34 Burying Hydro Lines along Flint Street 13. The parties confirm that the decision on the burying of the hydro line on Flint Street and similar decisions shall continue to be the responsibility of the MDC upon execution of the new Partnership agreement. Marina Re-Design and Docking 14. In May 2008, the City and the Developer entered into a Memorandum of Agreement for the re-design of the marina and docking. This Agreement included a new design for the marina and docking but also contemplated the possibility of improving the design following public and stakeholder consultation and conditional on the further agreement of the parties. This Proposal contemplates a further re-design of the marina and docking facilities in form and content satisfactory to the Developer and the City, both acting reasonably and in the context of prior consultations and the public consultation to be undertaken by the City in the first week of January, Any change to the marina and docking re-design which is agreed to by the City and TSL following the public consultation will be incorporated into this Proposal for presentation to City Council on January 12, Parking 15. The City will agree to commit an additional amount of cash of $1,070,000 to create approximately 100 public parking spaces to compensate for the loss of spaces on Broad St. and to accommodate some of the increased needs that will result from the entire development. It is estimated that these space will have a value of $2,200,000. The MDC budget and TSL will make up the difference. The City will own these parking spaces but they will be operated by the MDC. The City s cash contribution to the MDC will remain unchanged at $1,500,000 for capital and $150,000 per year in operations. The City s in-kind contributions also remain unchanged. 8 Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 34 of 35

35 APPENDIX A Jan June - MDC Requirements and Sources of Funds - Funds spent to date by both parties $ 600, Source of Funds Funds required to be Spent Building Canada leverage from $50,000 from each partner $ 200, Executive Director $ 100, Commitment Hydro lines on Flint Street 200, Blasting Civil Engineering 15, , % of Design (% subject to conf n by MDC) City - captain s Walk (requires commitment to get started) 200, , , , , , re Exec Director re Exec Director Commitment TSL - Back from Building Canada June Jan City - TSL-Jan June Jan June - Building Canada - 75, , $1,115, $ 1,150, $1,715, includes $ spent to date 9 Notice of Motion presented by Councillor Journal at the Council Meeting of December 15, 2009 Maritime Discovery Page 35 of 35