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Agenda - General Committee - 20040302TOWN OF AURORA GENERAL CO AGENDA NO, O&OB TUESDAY, 7:00 P.M. ITTEE 2, 2004 COUNCIL CHAMBERS AURORA TOWN HALL PUBLIC RELEASE 27/02/04 TOWN OF AURORA GENERAL COMMITTEE MEETING AGENDA NO. 04-08 Tuesday, March 2, 2004 Councillor Gaertner in the Chair. I DECLARATIONS OF PECUNIARY INTEREST H APPROVAL OF AGENDA RECOMMENDED: THAT the content of the Agenda as circulated by the Corporate Services Department be approved as presented. 111 DETERMINATION OF ITEMS REQUIRING SEPARATE DISCUSSION IV ADOPTION OF ITEMS NOT REQUIRING SEPARATE DISCUSSION V DELEGATIONS Mr. Neil Garbe, Director of Community Planning, Regional (pg. 1) Municipality of York Re: Draft Regional Centres and Corridors Strategy and Draft Regional Official Plan Amendment No. 43 Mr. Steve Falk, Representative from the Stephen Lewis Foundation (pg. 45) Re: HIV/AIDS in Africa VI CONSIDERATION OF ITEMS REQUIRING SEPARATE DISCUSSION General Committee Meeting No. 04-08 Tuesday, March 2, 2004 Page 2 of 5 VIl OTHER BUSINESS, COUNCILLORS VIII IN CAMERA Personnel Matter RECOMMENDED: THAT this Committee proceed In Camera to address a personnel matter. IX ADJOURNMENT General Committee Meeting No. 04-08 Page 3 of 5 Tuesday, March 2, 2004 AGENDAITEMS 1. ADM04-003 - Strategic Planning Process (pg. 47) (Deferred from February 17, 2004 General Committee) RECOMMENDED: THAT the Committee determine whether it wishes to accept one of the appended third party proposals to facilitate an update of the Strategic Plan; and THAT the Committee determine whether it wishes to incorporate a formal community research component, undertaken by a research firm, as background to the review. 2. ADM04-004 - Amalgamation Assessment — (pg. 114) Aurora and Newmarket Hydro Corporations RECOMMENDED: THAT the attached Report from Navigant Consulting Ltd. dated January 2004 be received; and THAT based on the preliminary analysis undertaken, the management of Aurora Hydro together with the management of Newmarket Hydro proceed with the next phase of the work program and undertake, with the assistance of Navigant Consulting, a detailed financial assessment of the benefits of consolidating Aurora and Newmarket Hydro, identifying conditions precedent to a merger and/or items requiring special attention in a shareholders declaration; and THAT Council charge the responsibility for making recommendations on the next phase of the analysis to the Town staff/hydro staff/financial and external legal counsel with input from the current Hydro Board of Directors. 3. ADM04-005 - Organizational Review - Development Planning (pg. 140) Functions RECOMMENDED: THAT the attached Organizational Review — Development Planning Functions prepared by the Randolph Group be received and referred to the 2004 budget discussions. General Committee Meeting No. 04-08 Tuesday, March 2, 2004 Page 4 of 5 4. TR04-007 - Project Manager For The Implementation Of (pg. 170) A New Financial Information System — Award Of RFP TR2004-13 RECOMMENDED: THAT Council endorse the selection of Intrasys Services Inc. as the Project Manager to oversee the supply, delivery and installation of the new Financial Information Systems software recently purchased from Vadim Computer Management Group Ltd. and RAC Software Inc., subject to the signing of a satisfactory Agreement with the Town of Aurora; and THAT the Agreement be based on their response to Request for Proposal TR2004-13, to a maximum of $75,000 plus applicable taxes; and THAT staff review the total number of days estimated in the response, in an effort to reduce the days required and more accurately reflect the management services needed to complete the project; thus, reducing the financial impact. 5, TR04-006 - Council and Local Board Members Remuneration (pg. 176) and Expenses for2003 RECOMMENDED: THAT Report TR04-006, Council and Local Board Members Remuneration and Expenses for 2003, be received for information. 6. PW04-008 - Reconstruction of St. John's Sideroad, Yonge Street (pg. 181) to Bayview Avenue — McKenzie Marsh Area Detailed Design RECOMMENDED: THAT the upgraded landscape design concept for St. John's Sideroad at the McKenzie Marsh as generally described in Report No. PW04-008 be approved; and THAT additional funds be allocated from the appropriate Development Charge Reserve for the upgraded landscape design concept for St. John's Sideroad at the Mckenzie Marsh in the order of: 1. $49,000 (plus GST) for the redesign and construction of upgraded street lighting; and General Committee Meeting No. 04-08 Tuesday, March 2, 2004 Page 5 of 5 2. $95,000 (plus GST) for the construction of the boardwalk, landscaping, and planting areas; and THAT the above additional funds be incorporated into the 2004 Development Charge update; and THAT the Regional Municipality of York be informed of Council's decision in this matter; and THAT Staff be requested to report further to Council on the results of the tender for the St. John's Sideroad reconstruction. Presentation to Aurora Council re: Regional Centres and Corridors Page 1 of 1 Eastwood, Carrie From: Whitney, Karen [Karen.Whitney@region.york.on.ca] Sent: Tuesday, February 24, 2004 10:22 AM To: Eastwood, Carrie Subject: Presentation to Aurora Council re: Regional Centres and Carry, Further to our conversation, Regional staff (Neil Garbe, Director of Community Planning) would be making the presentation to Aurora Council regarding the "Draft Regional Centres and Corridors Strategy + Draft Regional Official Plan Amendment No. 43" on March 2 as per Aurora staffs request. A report had also previously been adopted by Regional Council on January 22, 2004 recommending that a presentation be made to area municipal Councils at their request. Thank you for making the arrangements to add this item to the March 2 agenda. Could you also confirm that the meeting starts at 7:00 pm? Thanks for your help. Karen Whitney, MCIP, RPP Senior Planner Community Planning Branch The Regional Municipality of York Phone: 1-877-464-9675 ext1505 Fax:(905) 895-3482 E-mail: karen.whitney@region.york.on.ca 000001. 2/24/2004 To: Mayor and Members of Council From:Sue Seibert, Director of Planning Date: 2/27/2004 Re: Regional Centres and Corridors draft Regional Official Plan Amendment and Consultation Process The Regional Planning Department is currently preparing an Official Plan Amendment dealing with Regional Centres — Markham, Vaughan, Richmond Hill and Newmarket — and Corridors that include Yonge Street within Aurora. This draft Official Plan proposes residential intensification in the Centres and Corridors with density targets proposed in key development areas. The Region, in recognition of the diversity of the corridors; notes that it is important to assist area municipalities in identifying the different conditions of each Regional Corridor on a segment- by- segment basis. Aurora's corridor on Yonge Street is particularly diverse given the historic core and environmentally sensitive aspects of Yonge Street South. Staff have therefore stressed the importance of local consultation prior to the Regional Council taking any position of the draft Regional Official Plan. We have requested that Regional Staff make a presentation to the General Committee to inform Council of key features of the proposed amendment. A public meeting is also scheduled by the Region March 30 to receive local input. The Committee may wish to waive the 5 minute time limit so that a full explanation of the implications of the amendment can be explored. A copy of the Regional Staff report on this matter is attached. Yours truly, All — Sue Seibert, MCIP, RPP • Page 1 00,0002 Yo �� ' n �R,.- � gi° January 28, 2004 Mr. Bob Panizza Director, Corporate Services/Municipal Clerk Town of Aurora P.O. Box 1000 100 John West Way Aurora, Ontario L4G 6J1 Dear Mr. Panizza: Office of the Regional Clerk Corporate Services Department r^'R CORP. SERVICES DEPT. COPIES CIRCULATED TO: i Members of Council C.A.O. Directors 5.5(,4 Other Re: Centres and Corridors Draft ROPA and Consultation Process The Council of the Regional Municipality of York, at its meeting held on Thursday, January 22, 2004, adopted the recommendations of the Planning and Economic Development Committee, with respect to the report entitled "Centres and Corridors Draft ROPA and Consultation Process". May I draw your attention to the following recommendations: 2. Staff continue to consult with the public and local municipalities in order to further refine a draft Regional Official Plan Amendment (ROPA) to achieve the desired urban structure of Regional Centres linked by Regional Corridors, served by rapid transit. 3. Staff be authorized to present an overview of the policy as invited by Local Councils. A copy of Clause No. 2 of Report No. 1 of the Planning and Economic Development Committee is enclosed for your information. Please contact Neil Garbe, Director of Community Planning, 905-830-4444, ext. 1502, if you have any questions with respect to this matter. Sincerely, Denis Kelly Regional Clerk K.Price Attachments Copy to: N. Garbe, Director, Community Planning TOWN OF AURORA PLANNING DEPARTMENT RECEIVED INITIA 11✓ ACTION The Regional Municipality of York, 17250 Yonge Street, Nevnnarket, Ontario L3 Y 6Z1 Tel: 905-830-4444 Ext, 1320, 1-877-GO4-YORK, Fax: 905-895-3031 /, Internet: w ..00Qn03region.york.onxa 0I YorkRegion Clause No. 2 in Report -No. 1 of the Planning and Economic Development Committee was adopted, without amendment, by the Council of The Regional Municipality of York at its meeting on January 22, 2004. 2 CENTRES AND CORRIDORS DRAFT ROPA AND CONSULTATION PROCESS The Planning and Economic Development Committee recommends the following: The following communications be received: a) Janet Babcock, Commissioner of Planning, Town of Richmond Hill, January 6, 2004 and attached Resolution CW#01-04 of January 5, 2004; b) Carrie Hoffelner, Richmond Hill, resident, January 7, 2004; c) Gloria Marsh, Richmond Hill, resident, January 5, 2004; 2. The following requests for deputations be received: a) Janet Babcock, Commissioner of Planning, Town of Richmond Hill; b) David Cohen, Councillor, Town of Richmond Hill; c) David Fleiner, Richmond Hill, resident; d) Lynn Foster, Councillor, Town of Richmond Hill; e) Geoff Green, President, Yonge-Harding Church Ratepayers' Association, Richmond Hill; f) Neil Maynard, Richmond Hill, resident; g) Vito Spatafora, Councillor, Town of Richmond Hill; h) Susan Walmer, Chairperson, Ratepayers of Aurora Yonge South; i) Arnie Warner, Councillor, Town of Richmond Hill; 3. Regional staff be directed to hold a meeting with the above -noted deputants and other interested parties to obtain their comments on the Centres and Corridors Draft ROPA; 4. The recommendations contained in the following report, December 4, 2003, from the Commissioner of Planning and Development Services, be adopted. 1. RECOMMENDATIONS It is recommended that: 1. Council receive this report and attachments for information. 2. Staff continue to consult with the public and local municipalities in order to further refine a draft Regional Official Plan Amendment (ROPA) to achieve the desired 000004 Clause No. 2 2 Report No. 1 Planning and Economic Development Committee urban structure of Regional Centres linked by Regional Corridors, served by rapid transit. 3. Staff be authorized to present an overview of the policy as invited by local Councils. 4. The Regional Clerk circulate this report to the nine area municipalities for information. 2. PURPOSE The purpose of this report is to update the Committee on the status of the ROPA addressing Regional Centres and Corridors, and the related consultation process by outlining: 1. The key policy components of a draft ROPA to advance the Region's desired urban structure of Regional Centres and Corridors, served by rapid transit. 2. Feedback received from the local municipalities and public. 3. Upcoming consultation opportunities. 3. BACKGROUND The York Region Centres and Corridors Strategy is the primary action plan to guide the development of an urban structure based on a network of higher density, mixed use regional and local centres connected by rapid transit corridors. The Strategy contains four major action areas: 1) policy; 2) programs; 3) infrastructure, and; 4) financial tools. The proposed ROPA is the primary policy tool. Reports on centres and corridors at the GTA and York Region level are also before the Committee on this agenda. A set of ten policy principles was established and endorsed by Regional Council on February 20, 2003 to shape the ROPA (see Attachment 1). A staff report dated June 18, 2003 started to set out a policy framework for the ROPA and the associated consultation process. Since that time, consultation has taken place and the draft ROPA has begun to take shape with more detailed draft policies. A draft of the policies for Section 5 (Regional Structure and Growth Management) was circulated to the area municipal staff. A workshop was held on December 1, 2003 with area municipal staff and a great deal of positive feedback was received with ideas on how to better clarify and implement the ROPA as outlined in section 4.2 of this report. 4. ANALYSIS AND OPTIONS The idea of concentrating development in a network of Regional Centres and Regional Corridors is not a new concept. This was a guiding principle in the development of the Regional Official Plan ten years ago and has been reinforced by the public several times since then through consultations for Vision 2026, the Transportation Master Plan, and the statutory five-year review of the Regional Official Plan in 2002. The Regional Official Plan Amendment is intended to enhance the Region's urban structure. Changes to 000005 Clause No. 2 Report No. 1 Planning and Economic Development Committee Chapter 5 will be made to further emphasize and detail the role that Centres and Corridors have in advancing the Region's urban structure. The highlights are outlined below and set out in detail in Attachment 2 to this report. The "inverted-T" shape of the Region's urban area is focused on the Yonge.Street and Highway 7 corridors, and provides the foundation for building a higher -order transit system and provides locations for more intense development. More intensive development supports transit ridership and attracts a mix of higher -density uses needed to create a more vibrant, city -type environment. Development will not occur all at once, but incrementally over the timeframe of the Regional Official Plan and beyond as the long .term vision. It should be recognized that not all lands next to the rapid transit corridors will be redeveloped at higher densities in the timeframe of the Regional Official Plan. In order to address this reality, the concept of identifying key development areas is being introduced in the ROP. Regional Centres are already identified through the ROP as key locations for intensification. Each of the Regional Centres is currently covered by a Secondary Plan in the area municipal Official Plans except for Newmarket. Newmarket Council adopted a report on September 8, 2003 recommending that town staff continue to work with Regional staff on implementing the Regional Official Plan Amendment through the upcoming Town Official Plan and Zoning By-law review. 4.1 Regional Official Plan Amendment Highlights There are two main components to the urban structure: 1) Regional Centres, and 2) Regional Corridors. The Regional Centres have Secondary Plans in place and implementation work is ongoing. Newmarket will be addressing their centre in 2004. Making the Regional Corridors work demonstrates the close linkage of transportation and land use planning. The York Region Rapid Transit Plan and the Transportation Master Plan address the transportation needs, while the ROPA ensures supportive land uses in the Regional Corridors. The Regional Official Plan is successful and has stood the test of time. This ROPA introduces several new concepts to address the changing land use requirements of the Regional Centres and Regional Corridors. A primary concept is the identification of key development areas along the Regional Corridors. The ROPA also introduces the concept of density targets partnered with urban design criteria to ensure the right development is promoted in these key development areas. 4.1.1 Key Development Areas A fundamental component of the draft ROPA is the idea of choosing the spots along the Regional Corridors where more intensive development is appropriate, recognizing that Regional Centres are the primary locations for intensification. There is a great diversity in the areas along the corridors in terms of existing development, development opportunities, natural environment, and historical context. It is therefore important that the Region assist the area municipalities in identifying the different conditions of each Regional Corridor on a segment -by -segment basis. This should occur in a ._ 000006 Clause No. 2 4 Report No. 1 Planning and Economic Development Committee comprehensive manner that identifies "Key Development Areas" within these segments, representing one or more of the following: • Areas with the greatest opportunity for mixed -use and higher -density development. • Vacant lands or existing areas in transition. • Areas assigned early priority for rapid transit facilities and services, • Areas abutting or adjacent to rapid transit stations. • Areas of the corridor that intersect with other major transportation routes or facilities. The identification of "Key Development Areas" where higher -density, mixed -use development is encouraged will provide clarity as to where infill and intensification will occur. This in turn will provide some degree of stability to the areas that have not been identified for intensification. 4.1.2 Secondary Plans Secondary Plans are primary vehicles for implementing the pedestrian friendly, transit supportive development in the area municipalities and are excellent tools to facilitate growth in key development areas. Secondary plans can contain policies which recognize the unique characteristics of each area and set a detailed policy context for new development. A number of secondary plans currently exist for some portions of the Regional Corridors, may not currently contemplate rapid transit services or supportive development patterns and densities. It is important to review secondary plans to ensure that they can respond to the changing context of the Region through a greater emphasis on pedestrian -friendly, transit -supportive development and intensification. The initial focus needs to be on the secondary plans containing key development areas defined by the area municipalities. This may only be a few of the existing secondary plans, but is an important first step in providing the policy context. The draft ROPA policies provide a number of criteria to guide the secondary plan reviews, including: • Ensuring compact built form and uses that promotes transit ridership easily accessible by pedestrians. • Provisions for connections by a fine grain of streets and pedestrian links in Centres. • Minimum density requirements and resident -to -employee targets. • Development integrated with surrounding land uses and built -form • Promotion of Centres as focal points for community activity and civic pride. • High quality pedestrian environment. 4.1.3 Urban Design Principles A large part of achieving transit supportive development rests with the design of the buildings, spaces around the buildings, and the connections to the streets. Buildings can be designed to make it convenient, comfortable, and desirable for pedestrian to get from the building to the sidewalks and transit stops. The design of the building is also the primary factor in how well the building fits within an area. Because of the importance of urban design in achieving good transit supportive development, the draft ROPA has 000007 Clause No. 2 5 Report No. 1 Planning and Economic Development Committee introduced the new concept of including urban design principles and objectives. A number of more specific urban design objectives have been proposed in the ROPA as follows: • Achievement of pedestrian -friendly development in terms of scale, safety, connectivity, vibrancy, and sun, shade.and wind. _ • Provision pedestrian connections directly to the street. • Promotion of street and public space definition through building location and design. • Achievement of streetscapes that provide a high standard of design in the public realm • Achievement of high quality design. • Ensuring building and parking layout that will allow for future intensification in a phased manner. • Parking design and standards that assist in achieving pedestrian friendly, transit oriented development. • Provision of transition between existing residential communities and new development. 4.1.4 Density The achievement of higher densities in the Regional Centres and Corridors is vital to ensure adequate transit ridership. Higher densities in these strategic locations will generate several benefits, including: • More efficient use of land and infrastructure. • Generate levels of activity required to make rapid transit viable. • Provide a wider range of housing and employment opportunities. • Create more diversity in the Region's economy. • A more vibrant public realm. The draft ROPA introduces a density target of 2.5 FSI (Floor Space Index, being the building area divided by the site area) for the Regional Centres and Regional Corridors to help achieve these objectives. Higher densities supportive of this target would be first achieved in the key development areas. Density also goes hand -in -hand with the urban design principles in achieving transit supportive development. In order to achieve the densities contemplated by the ROPA, for example, parking has to primarily be in a structure rather than at grade. Generally the building would also be pushed closer to the sidewalks since more of the site is covered by building than parking. It is important, however, that any density target be accompanied with detailed urban design objectives to achieve good development that enhances the surrounding community. 4.1.5 Infrastructure The provision of infrastructure and land use intensification is linked together. The rapid transit infrastructure is needed to support the land use intensification and the land use intensification is needed to support the transit infrastructure. The provision of other hard infrastructure such roads, sewers and water -are also important in supporting the Regional structure of Centres and Corridors. The ROP policies need to recognize this link and 000008 Clause No. 2 Report No. 1 Planning and Economic Development Committee ensure that infrastructure investment and the Regional Capital Works Program are supportive of the objectives of achieving this structure. The draft ROPA needs to include a policy such as; "Provide support and direction for regional infrastructure investment including: i rapid transit and transit network ii road network iii sewer and water systems iv streetscaping." In terms of rapid transit, it is important that the initial redevelopment is in tune with the Quick Start program and subsequent phases of the rapid transit implementation. Draft policies are included to reflect this relationship. 4.1.6 Implementation Tools Current Provincial legislation, and a number of planning and transportation practices offer a variety of tools that can be used to help achieve the desired Centres and Corridors urban structure. Many of these tools need to be included in the local Official Plans. The concept of including a wide array of implementation tools in the Regional Plan is to support their use and enable the municipalities to pick and choose the ones most appropriate to their planning policies. The implementation strategies/tools may include: • Encouraging public investment from all levels of government. • Using a wide range of innovative financial tools to encourage development consistent with this Plan including Tax Increment Financing and site specific Development Charges. • Providing opportunities for joint development between the transit agency and developers to encourage and facilitate transit supportive development and the transit infrastructure itself. • Promoting transit ridership through controlled parking standards within the Regional Centre and Corridors including maximum parking standards, parking authorities and cash -in -lieu of parking under the Planning Act. • Developing a suite of Transportation Demand Management measures, including the establishment of Transportation Management Associations. • The establishment of the Regional Centres as Community Improvement Plan areas under Section 28 of the Planning Act to assist in the implementation of this Plan. • The establishment of a development permit framework or pre -zoning based on the principles of streamlining and promoting development in a cost-effective manner. • Establishing phasing plans for the build -out of the regional centres. • The use of Section 37 of the Planning Act to achieve net community benefits which are supportive of a compact community form • Innovative polices and programs to provide schools, parks and open space to serve the Regional Centres, including bonusing and alternative parkland provisions. Q�QQQ9 Clause No. 2 7 Report No. 1 Planning and Economic Development Committee 4.1.7 Structural Changes to ROP The section in the ROP pertaining to the Regional Structure currently contains a section on centres and a section on corridors that each have polices on the different types of centres and corridors. In order to emphasize the importance of the Regional. Centres and Corridors, they have been broken out into separate sections that detail their relationship to rapid transit infrastructure and services in these areas. These components of the urban structure are the fundamental elements of achieving the transition to city -building in the Region. The structural changes to the ROP are illustrated in the following Figure 1. Chapter 5 Policy Structure 5.1 Forecasting Growth 5.2 Community Building (Refined) 5.3 Regional Centres 5.4 Local Centres 5.5 Regional Corridors 5.6 Local Corridors 5.7 Hamlets 5.8 Agricultural Policy Area 5.9 Rural Policy Area 5.10 Mineral Aggregate Resource Areas 5.11 Estate Residential Development 5.12Consents 5.13Resort/Recreational Development 4.2 Consultation Figure 1 — Structural Chances to the Regional Official Plan A thorough consultation process is important in achieving appropriate Official Plan policies that can drive the Centres and Corridors urban structure. The ROPA needs to reflect existing ongoing initiatives (Markham Centre Review & Vaughan Highway 7 Land Use Review) as well as provide guidance to future initiatives. There has been a great deal of consultationto date and there will be more. The broad consultation accompanying Vision 2026 through the year 2001 engaged the public with the ideas of managed growth efficiently in urban areas, quality communities and infrastructure including higher -order transit. From this broader Vision 2026 and previous 2021 documents came the strategic initiatives of both the Transportation Master Plan that includes the provision of rapid transit on Yonge Street, Highway 7, the Vaughan north/south corridor and Markham north/south corridor and the Centres and Corridors Strategy. The formulation of the Transportation Master Plan (TNT) also included an extensive consultation program involving key stakeholders and members of the public. The TNT provides a comprehensive transportation vision for the Region based on a transit -focused .1000010 Clause No. 2 g Report No. 1 Planning and Economic Development Committee strategic direction largely centred on reducing automobile dependence and moving the Region towards more liveable communities. The TNT followed the "Master Planning Process" that integrated the planning of municipal infrastructure requirements with existing and future land use. The draft Centres and Corridors Strategy has also been broadly circulated for consultation and information purposes. The draft Strategy was presented to council in May 2003 and was circulated widely to private and public agencies throughout the province. A number of presentations have also been made to groups such as the Urban Development Institute. All of this work and consultation forms the basis for proceeding with further consultation specific to the Regional Official Plan policies to implement the Centres and Corridors urban structure. Regional Council has adopted the guiding set of 10 policies principles on February 20, 2003 and adopted a further report dated June 18, 2003 setting out a policy framework for the ROPA reflective of the consultation done to that point. Regional staff hosted workshops with local municipal staff on February 24 and April 28, 2003 to discuss in detail the ten policy principles for the ROPA, part of an ongoing consultation process. The session generated excellent feedback for the ROPA process, and led to a general consensus on the approach and timing for developing new and enhanced policies. There was also a consensus that the Regional Centres and Corridors should be the focus of intensive development to support rapid transit. A further staff workshop was held on December 1, 2003 on more detailed policies. The attached draft Section 5 was sent out to area municipal staff for review and the comments received are outlined as follows: • Percentage of development that occurs within the existing urban area needs to be looked at further. • Need monitoring to determine effectiveness of targets. • Clarification is needed for the hierarchy of centres and corridors within the overall urban structure. • Clarify the role of the key development areas and how they are identified. • Need to be selective of key development areas to be focused on first. • Need to maintain long term vision. • Key development areas need to be defined first and then adjust rapid transit stops. • Density of 2.5 needs to occur through a phased implementation over time - need to pick initial locations for first phase. • Provision of infrastructure must be linked to development. • Specific lands need to be targeted for density in order to achieve the density. • Priority needed to be given to Regional capital works that support Regional Centres and Corridors. • Higher order transit definition needs clarification. • Employment targets in the centres need to be given careful consideration — there may be other ways to represent them other than ratios. 6 -66 11 Clause No. 2 Report No. 1 Planning and Economic Development Committee • Urban design is important for inclusion, but don't want policies to be too prescriptive. The public consultation process underway for the environmental assessment studies required for the rapid transit (YRTP) presented an ideal opportunity to engage the public in the ROPA process as these projects are closely linked. The implementation of rapid transit along Highway 7, Yonge Street, the Vaughan North/South Corridor and Markham North/South corridor is a key driver for the fixture success of achieving the Centres and Corridors urban structure partnered with the Official Plan policies promoting land uses and density that support the rapid transit. Planning staff attended a number of public information centres for the YRTP studies in June 2003 and September 2003. The adopted principles and ideas of enhanced Official Plan policies were presented at these public information centres and the public response was positive. The idea of pedestrian -friendly environments was especially well received at these sessions. Many indicated that they recognized and supported the principles of intensification along the transitways, but had concerns about the fit of new development with the existing neighbourhoods. Further consultation is planned to help shape the ROPA in January through March as follows: • A series of public open -houses in Markham, Vaughan, Richmond Hill, Aurora and Newmarket These open -houses will include and visual displays to fully engage the public and foster a better understanding of pedestrian -friendly and transit -supportive development. • A series of presentations to local Councils if requested; there may be opportunities to partner with local staff presentations through local initiatives such as the Highway 7 work being done by both Vaughan and Markham. • an Urban Design Charette to illustrate what different densities could look like and. illustrate what different urban design principles mean. • Youth outreach through presentations a schools and other youth forums since the youth are a large transit users and future transit users. • a Statutory Public Meeting in May or June 2004. 4.3 Relationship to Vision 2026 Making changes to the Regional Official Plan to achieve the desired urban structure of centres and corridors will advance the goals of Vision 2026, including "Quality Communities for a Diverse Population," "Managed and Balanced Growth," and "Infrastructure for a Growing Region." 5. FINANCIAL IMPLICATIONS Making changes to the Regional Official Plan to achieve a more compact urban structure of centres and corridors served by rapid transit will optimize Regional investments in existing and planned public infrastructure including transit, water supply and wastewater treatment capacity, and human services. Clause No. 2 10 Report No. 1 Planning and Economic Development Committee Innovative financial approaches must also be explored to ensure that transit -supportive land use is advanced in tandem with transportation investments. The Region's public - private partnership to implement the YRTP, in particular, represents upwards of $4 billion in rapid transit investments over the next 30 years. This and other capital -intensive investments in public infrastructure and related services must be supported by an efficient and effective urban structure. The ROPA process is just one of the tools being used to advance our desired urban structure and support our related investments, including rapid transit. Forming a larger framework for the ROPA and other initiatives is the Region's Draft Centres and Corridors Strategy endorsed by Council. This Strategy is currently under development and will put into action a suite of programs, infrastructure and financial tools to leverage investments in our urban structure. 6. LOCAL MUNICIPAL IMPACT Local municipal planning staff are taking an active role in determining the scope and direction of the future ROPA and will continue to be key stakeholders throughout this ongoing process. The local municipalities have made significant strides in city -building to support the desired urban structure of Regional Centres and Corridors linked by rapid transit. The Regional Official Plan can assist local municipalities continue this progress. The ROPA will provide clear and supportive policy to bolster city -building at the local level, which occurs through local official plans, zoning by-laws, site plan controls and programs. The Regional Official Plan, therefore, should not only shape but also strengthen local planning policy. 7. CONCLUSION The Regional Official Plan has proven to be an effective tool in managing growth and directing infrastructure investment, since its adoption in 1994. Our urban structure of Regional Centres and Corridors has played a key role in this success. This structure needs to be refined further to support the upwards of $4 billion investment and long term planning required to implement the YRTP over the next 30 years. Local planning policies to advance city -building also warrant strong support through Regional policies, programs, infrastructure and financial tools. This report outlines more refined policy principles, local municipal feedback and a public consultation plan that will form the basis of a ROPA to refine our urban structure. A further refined ROPA will be presented to Planning and Economic Development Committee in the first half of 2004 and a statutory public meeting will also be scheduled for the first half of 2004, '000013 Clause No. 2 11 Report No. 1 Planning and Economic Development Committee The Senior Management Group has reviewed this report. (A copy of the attachments referred to in the foregoing are included with this report and are also on file in the Office of the Regional Clerk.) Attachment 1 Council Report Attachment Policy Principles Regional Council on February 20, 2003 adopted ten policy principles to shape a ROPA aimed to further strengthen policies thatdirect growth and transit enhancements to the Region's network of centres and corridors. These ten policy principles are: 1. The Region should promote and encourage appropriate development in the Regional Centres and Corridors in support of large public investments in rapid transit. 2. A sustainable urban structure needs to be reinforced which includes a connected hierarchy of centres and corridors. 3. Investment in public buildings, community facilities and human services needs to be supportive of the urban structure hierarchy and strategic focal points. 4. Development should be transit supportive with the highest densities located in the Regional Centres. Overall densities in the Regional Corridors and centres should achieve an average overall density of 2.5 FSI. 5. Development in the Regional Centres should provide the broadest land use mix including a variety of housing types, range of employment opportunities, human services and entertainment uses. 6. Key development opportunities should be identified within the Regional Centres and Corridors. 7. Stable residential communities should be supported. 8. A high quality of urban design should be promoted, which achieves a pedestrian friendly, transit oriented development form. The development of urban design guidelines for both the Regional Centres and Corridors can achieve this. 9. Development should be facilitated through a streamlined process using innovative policies, programs and financial tools to ensure implementation. 10. The timing and delivery of appropriate infrastructure should be considered through the development process. Attachment 2 Council Report Attachment Proposed ROPA to reflect an enhanced urban structure of Regional Centres & Regional Corridors served by rapid transit Chapter 5 Policy Structure 5.1 Forecasting Growth 5.2 Community Building (Refined) 5.3 Regional Centres 5.4 Local Centres 5.5 Regional Corridors 5.6 Local Corridors 51 Hamlets 5.8 Agricultural Policy Area 5.9 Rural Policy Area 5.10 Mineral Aggregate Resource Areas 5.11 Estate Residential Development 5.12Consents 5.13ResorURecreational Development 5.2 Community Building DRAFT — November 18, 2003 Proposed changes: Underscore indicates new policies Communities are a fundamental building block of this Plan. Communities are much more than the architecture of buildings and the design of neighbourhoods. Communities are places where people interact, learn, work, play and reside. Excellence in community design is essential to creating a physical place where people have the opportunities and choices required to lead rewarding lives. York has a tradition of tightly knit villages with mainstreets, community activities and places to work, live and play. The challenge in many ways is to include some of these proven elements in creating new communities. The creation of new communities also needs to complement an urban structure that provides a series of strong Regional Centres linked by Corridors servingthe he Region as a whole. Complete communities are healthy communities that incorporate principles of safety, accessibility, high quality urban design, adequate human services and choice for all citizens. Growth will require investment in infrastructure including human services. Communities are places that protect and enhance the natural environment and foster economic vitality. The policies of this Plan are intended to promote communities that are diverse and self-contained with opportunities to work, enjoy recreation and be housed. They are designed so that effective transit systems can be operated and so that people have the choice of walking and bicycling throughout the community and beyond. Policies are also included to encourage well designed streets and building locations that create vibrant, pedestrian -friendly, transit -oriented streetscapes. The municipalities in York Region are at different stages in preparing detailed community plans for their settlement areas. Consequently, the urban areas defined on Map 5 are not extensive enough to accommodate the 2026 forecasts in Table 1. Further community planning in accordance with the Plan may result in amendments to Map 5. These characteristics are detailed in the community development criteria that follow. The policies of this section also identify clear boundaries for urban areas, require new communities to be planned for large contiguous areas, encourage carefully planned intensification and require comprehensive study before any urban expansion by amendment to this Plan. Objective To develop diverse, self-sufficient, accessible, safe, green, economically vibrant, pedestrian -oriented, accessible communities through excellence in planning and urban design. It is the policy of Council: 1. That the majority of growth be directed to the urban areas identified on Map 5. 2. That area municipalities, in cooperation with the Region, are required to develop and monitor growth management strategies prior to the expansion of the urban areas shown on Map 5 and/or major growth in towns and villages. These growth management strategies shall be implemented through official plans and secondary plans and are to be based on the policies of this Plan including: a) incorporation of the centres and corridors structure of this Plan; b) promotion of infill and redevelopment that shows consideration for the existing built -form of the community through appropriate building design and massing; c) provision for efficient and compact communities; d) an assessment of the amount and distribution of the rural population; and e) assurance that travel demand and transportation facilities with an emphasis on public transit are kept in balance over time through the planning and development review/approval process at the local and regional level and in cooperation with adjacent jurisdictions. 00001'7 3. To require an amendment to this Plan for any expansion of the urban areas identified on Map 5. Such amendments shall be adopted by Regional Council only if they are consistent with the following: a) regional population and employment forecasts; b) the need for expansion relative to other lands available for development in the area municipality; c) the role of the new development lands identified in area municipal growth management strategies; d) the capability of the area municipality to provide growth within the urban area; e) an analysis of options for growth direction and sequencing with respect to environment, agriculture and the implications on the availability of servicing including water, sewer, road and transit networks and human services; f) the protection of and integration with the Regional Greenlands System; g) the amendment is large enough (i.e. a concession block) with clear and identifiable boundaries, such as concession roads, major natural features, rail or major utility corridors, to assess the creation of new communities at the regional level; h) the role the new development lands have in supporting an urban structure of centres and corridors with transit supportive densities: and i) the other policies of this Plan. 4. To target a minimum 2G% 30°!o of the Region's forecasted population increase to existing built-up portions of urban areas, towns and villages in keeping with the centres and corridors structure of this Plan and by redevelopment of under-utilized areas and areas in transition. 5. These strategies should identify minimum five year phasing programs for the logical, efficient and contiguous progression of development based, among other things, on capital works programs and the efficient provision of water, sewer, public transit, roads, schools and other human services. 6. To promote civic centres in locations with good transit access as a focus for community activities and events and to help foster community identity. For example, the creation of civic centres in Vaughan and East Gwillimbury are important components of the municipalities'growth management strategies. 7. To require the preparation of comprehensive secondary plans by way of area municipal official plan amendment for new areas of development within the urban areas shown on Map 5, based on the following: a) the plans are generally for large contiguous blocks of land, approximately concession blocks of 400 hectares (1,000 acres); b) the areas encompass one or more communities; c) the development provides for a broad range of housing types in the community at overall transit -supportive densities; ,000018 d) the development includes continuous mid -concession block collector roads that run both north -south and east -west where possible and/or a grid system of roads; e) the distance to a transit stop of generally no more than 500 metres (a 5-10 minute walk) for 90% of the residents and no more than 200 metres for 50% of residents; f) community design to support the system of centres and corridors as identified in this Plan; g) community design around a focal point or community or civic centre; h) a mix of uses in order to improve the possibilities for working and living in close proximity; i) a system of walkways and bicycle paths link the community internally and externally to other areas; j) the incorporation of the Regional Greenlands System into the community plan and the inclusion of pedestrian -accessible green space and local parks; k) community design that emphasizes public access and safety; 1) the completion of an environmental analysis which includes examination of natural functions, attributes and linkages, as well as cultural heritage resources; m) an assessment of human development needs including education facilities, safety, social and health facilities, arts, culture and recreation facilities; n) a road system which is linked with the regional road system and is generally designed to incorporate road patterns that offer a choice of routes and flexibility; o) population and employment targets for the area municipality; and p) the completion of a transit plan for the planning area which includes how the area will be serviced by transit and how transit service will be integrated with the regional rapid transit system and GO Transit rail services q) urban design criteria to ensure a high quality urban that addresses but is not limited to the following: i) street definition through building location and design ii) relation of building to open space iii) pedestrian movement and connection iv) building design compliments existing neighbourhoods v) pedestrian scale and amenity r) other policies of the Plan. S. That major growth in towns and villages identified on Map 5 be governed by secondary plans based on the following criteria: a) sewer and water services are available to accommodate the proposed growth; b) the planning area is sufficiently large to take a long-term view of the community; c) the plan considers the entire town or village and integrates the new development area into the existing community; and d) the plan meets criteria c), d) and f) through p) in Policy 5.2.7. 9. To encourage municipalities to prepare secondary plans to guide redevelopment of areas in transition or areas that are under-utilized in keeping with the policies in this section. 000019 10. To consider the impact and compatibility of potentially conflicting land uses on each other and thesurrounding area including the assessment of noise impacts for land uses adjacent to arterial road and highway facilities. 11. To support area municipalities in their efforts to ensure that urban design plans, site plan submissions and/or zoning regulations promote pedestrian -friendly and transit - oriented streetscapes. The Region will support the area municipalities in their efforts to ensure access to buildings and public spaces by the disabled. 12. That the Region work with area municipalities in the completion of comprehensive growth management studies including the Growth Management Study Areas shown on Map 5 which address the policies and criteria of the Plan. 13. That the Region work with the Town of Richmond Hill in the completion of the growth management study of the entire municipal area, taking into account the existing urban service areas boundaries and levels of development presently in the urban fringe area. 14. The Township of King has adopted Amendment 54 — a Community Plan for the King City community. This Community Plan establishes population projections for the community of 10,000 persons to 2016 and 12,000 persons to 2021. The boundaries of the Community Plan and service area are fixed for the planning period. In accordance with the policies of Amendment 54, new urban development in the Community is to be serviced on full municipal water and sanitary sewer services through an extension of the York DurhamServicing Scheme. It is recognized that extending the York Durham Servicing Scheme is only intended to service the Community of King City and not to provide the additional capacity for urban uses outside of the community plan. Notwithstanding the foregoing, the service area may be extended to provide sewage capacity for lands designated "Institutional' in the Township of King Official Plan which abut the boundary of the King City Community Plan and which are occupied by Seneca College and the Country Day School for the institutional uses on those sites where those uses meet the following criteria: a) that the private sewage system(s) for the institutional use has reached its capacity and requires extension enlargement or improvement to meet environmental standards appropriate for the size and type of use; b) that the financial costs for the extension are borne entirely by the institutional use and, c) that all other approvals required by the Township and the Region of York and other agencies are met. However, no extension of the system shall be considered for any non -institutional use. �; 000020 Prior to the commencement of the capital works associated with the sewage infrastructure related to the extension of the York Durham Servicing Scheme to King City, the Regional Municipality of York shall have entered into the appropriate Fish Habitat Compensation Plan with the Ministry of Natural Resources and the Department of Fisheries and Oceans. 15. To work with the Town of Georgina to address environment and development issues as well as servicing implications along the Lake Simcoe shoreline. 16. To work with the Town of Markham to identify additional urban areas beyond the Town's identified 20 year urban area designation shown on Map 5, consistent with the Table 1 forecast. 17. The Town of Whitchurch-Stouffville has adopted Amendment No. 101, a Community Plan for the Stouffville community. This Community Plan establishes a population target of 24,500 persons for the year 2021. The boundary for the urban serviced area within the community plan is fixed for the planning period and is shown on Map 5. In accordance with the policies of Amendment No. 101, new urban development in the Community is to be serviced on full municipal water and sanitary sewer services through an extension of the York Durham Servicing Scheme. It is recognized that extending the York Durham Servicing Scheme is only intended to service the urban serviced area of the Stouffville Community and not to provide additional capacity for urban uses outside of this boundary 18. That the Town and Village designation, west of Woodbine Avenue, north of Baseline Road in Georgina, known as Maple Leaf Village Estates, corresponds to the approved Town of Georgina Official Plan Amendments 10, 11 and 12. 5.3 Regional Centres �Rl7TJ!!T!lTJPfi 000021 It is the intent of this Plan to identify Regional Centres and provide for a hierarchy of Local Centres that can act as a focus for public- and private -sector investment. Centres make effective and efficient use of existing and proposed infrastructure. Centres can create greater identity for the Region and the area municipalities. It is intended that centres include a broad mix of uses, be compact, pedestrian -meted -friendly, transit -oriented, safe and accessible. Regional Centres should have the highest concentration and intensity of uses in the Region. The feur regionaleeffiresidentified ea Map c are stfategie lly leeated wit : ;nsity and naediuni *h density develepnient. This plan identifies four strategically located Regional Centres with access by major roadways and transit, as shown on Mao 5: Newmarket Centre in the north Vaughan Corporate Centre in the west. Markham Centre in the east and Richmond Hill Centre in south. Together, and connected by Regional Corridors these four centres are the foundation of the Region's urban structure. These areas would be a are to be a focus of business, government, entertainment and culture within the Region with complementary medium -density and high -density development. T additien to regiamd this Pl., pfe,:.i„ fe a series ofurban ntr and leeentres 1. wetild b identified ia area e,l..1 plans. Ui-7b . entr a fb .. ed eAstiaD wouldeentfes b served 1,J ..FC,.e nt tr eften ntr een have Wsterie str-eetseaes r 1, should.i e be retained nnh urban ed. Nb ereated asheeal eentres serve towns and es as well as fur -a! and -F-i-altural areas. Lee-1 O b YY J .. to build o and broaden existing residential, eefpAnereial d TWs Nefafehy ef regional and urban eentres is eanneeted by a system of transit eeffiders, The Regional Centres will have the highest concentration and variety of land uses in the Region —becoming theprimary destinations for residents businesses and visitors to live, work flay and learn Regional -scale commercial employment entertainment and government facilities within walking distance of compact higher -density housing and transit services will be located here Regional Centres place emphasis on growth in an urban setting and reinforces the preservation of agricultural land, rural landscape and natural areas. 000022 Development in the Regional Centres will be supported by the early implementation of rapid transit services -in the Yonge Street and Highway 7 corridors, in the Vaughan Corporate Centre -York University corridor, and in the Warden Avenue corridor linking Markham Centre with the Toronto Transit Commission subway system to the south It is recognized that Regional Centres will evolve over time to meet the needs of a growing and changing Region. The four regional centres will become more established beyond the life of this Plan to further add to the sustainability of the Region's natural environment, economic vitality and the health of our communities. The establishment of a strong centres and corridors urban structure will promote growth that can contribute to a high quality of life through efficient transportation and transit,_ systems, water and sewer systems and accessible schools and hospitals. In addition to Regional Centres, this Plan provides for a series of ..� local centres that would be identified in area municipal plans. Objectives To create a well -designed system of regional centres to focus residential, institutional and business activities and recognize the long term vision of achieving thriving regional centres, served by rapid transit. It is the policy of Council: MITUMMM a. 0Q0023 ................................... . . . . . . . . ........... FE1,10 ---allill ...... .... I . i M-HIMM. �.-- . ........ MIME . .............. ...... Will . . ......... ........ . . . ......... ... . .......... ..... . .............. ............. �- 000024 10 - ..... ..... ._ I) To support a well-defined urban structure of Regional Centres and Regional Corridors. This will be achieved through implementation of a Centres and Corridors Strategy that includes a suite of policies, programs, infrastructure and financial tools. 2) To recognize that the influence of Regional Centres and corridors extends beyond the urban area, having a region -wide impact. Focusing the most intensive and higher -order land uses in these areas helps preserve agricultural land, protect and enhance the natural environment, optimize the use of infrastructure, create transportation choices, and improve economic competitiveness and increase opportunity for investment and development. 3) To recognize that the Regional Centres of Newmarket Centre, Vaughan Corporate Centre, Markham Centre, and Richmond Hill Centre as identified on Map 5 are the major focal points for urban development in the Region, and are intended to support a concentration of emplovment, residential, cultural and government functions in an intensive land use form 4) That densities should be highest within the Regional Centres and should support an overall density target of a Floor Space Index of 2.5 in the Regional Centres and Regional Corridors. 5) That the development in Regional Centres will balance employment and residential growth and be supported by parks, open space, and community facilities appropriate for an intense urban setting. I 6) That Regional Centres will be promoted as the primary locations for mixed -use developments including a variety of residential, institutional and employment uses and live -work opportunities. 7) That a variety of hig her density housing types will be directed to Regional Centres to service all housing needs including affordable and assisted housing. 8) That Regional Centres should be the primary and priority locations for public investment including public buildings and investment supporting community facilities and services Major Regional buildings and facilities will be located in the Regional Centres. The municipalities will be encouraged to locate major public buildings and facilities in the Regional Centres. 9) Area municipalities will undertake the review of their Official Plans as required by the Planning Act The Secondary Plan for the Regional Centres should be established or reviewed to: a) Ensure appropriate planning policy, urban design principles provision of infrastructure and provision of appropriate human services are in place as follows: i. Building form and use shall promote transit ridership through urban design, scale, densities, land use mix and location: I Development is connected by a fine grain of streets and pedestrian links that provide direct access to rapid transit routes: iii. Regional Centres should be compact in form and provide for high density development: iv. Plans should contain minimum density requirements, consistent with Policy 5.3.4 of this Plan: V. Priority for residential development other than low density should be ziiygp: vi. New development shall be integrated with surrounding land uses and built -form through appropriate scale, design and use: vii. Regional Centres should permit the greatest mix of uses within the municipality including residential, institutional, retail, office and human service uses: viii. Rapid transit facilities should be easily accessible to pedestrians ix. Regional Centres shall be designed to be serviced by rapid transit: X. Regional Centres should create focal points for community activity and civic pride: xi. Provision should be made for public gathering places, streetscaping and planting to enhance the pedestrian environment-, xii. Connections with the local and Regional greenland systems including parks bicycle and pedestrian systems and natural features shall be provided: 12 xiii. Regional Centres should be designed so that they can evolve and intensify beyond the period of this Plan: xiv. Specific employment targets should be identified and should contribute to a minimum target resident -to -employee ratio of 1:1: xv. Ensure that ground -floor uses of mixed -use buildings enhance the vibrancy of the street: xvi. Provide locations for human services that meet Region -wide needs: and xvii. recognize and protect the cultural heritage resources in the Regional Centre. b) Promote the creation or review of urban design guidelines with the assistance of the Region to achieve: i. pedestrian -friendly development in terms of scale safety, connectivity, vibrancy, and consideration of sun, shade and wind; ii. development that provides pedestrian connections directly o the street; iii. street and public space definition through building location and design; iv. streetscapes that provide a high standard of design in the public realm; V. high quality design; vi. building and parking layout that will allow for future intensification in a phased manner; vh. parking design and standards that assist in achieving pedestrian friendly, transit oriented development; and vin. a transition between existing residential communities and new development that applies appropriate scale and design of buildings, including step -backs or terracing. Appropriate building heights and setback requirements shall be promoted in the area municipal plans and implemented in the area municipal zoning by-laws. 0 Provide support and direction for regional infrastructure investment including_ i rapid transit and conventional transit network: ii road network; and iii sewer and water systems 12. To support the Town of Newmarket in the preparation of a Secondary Plan for the Regional Centre. The area municipality shall have the primary responsibility the preparation of this plan. 13. To support development in the Regional Centres by the earlv implementation of rapid transit services in the Yonge Street and Highway 7 corridors, in the Vaughan Corporate Centre -York University corridor, and in the Warden Avenue corridor linking Markham Centre with the Toronto Transit Commission subwav system in Toronto to the south. 00002 13 14. That the area municipalities in partnership with the Region shall develop implementation strategies for the policies of the Secondary Plans, which may include: a) encouraging public investment from all levels of government: b) using a wide range of innovativefinancial tools to encourage development consistent with this Plan including Tax Increment Financing and site specific Development Charges: c) providing_ opportunities for joint development between the transit agency and developers to encourage and facilitate transit supportive development and the transit infrastructure itself: d) promoting transit ridership through controlled parking standards within the Regional Centre including maximum parking standards, parking authorities and cash -in -lieu of parking under the Planning Act: e) developing a suite of Transportation Demand Management measures, including the establishment of Transportation Management Associations: f) desi ng_atinu Regional Centres as Community Improvement Plan areas under Section 28 of the Planning Act to assist in the implementation of this Plan: g) establishing a development permit framework or pre -zoning based on the principles of streamlining and promotingdevelopment evelopment in a cost- effective manner: h) establishing phasing121ans for the build -out of the regional centres. recognizing that the build -out may occur beyond the life of this Plan: i) the use of Section 37 of the Planning Act to achieve net community orm: benefits which are sportive of a compact communityform: j) innovative polices and programs to provide schools parks and open space to serve the Regional Centres, including bonusing and alternative parklandprovisions. 15. The location and quantity of parking should be Manned in such a manner that minimizes surface parking in favour of above- or below -grade parking structures. 16. Development should be monitored to determine the effectiveness and appropriateness of existing policies and practices for the planning and iinlementation of Regional Centres. 17. The delivery of transit services shall support the development objectives of this Plan. 18. Priority shall be given to infrastructure improvements in Regional Centres and Corridors. 00,0028 14 5.4 Local Centres Local centres are concentrations of residential, human service, commercial and office activities that serve the adjacent community. These centres are designed to function much like Regional Centres, but on a much smaller scale. Rather than serving the entire Reo�; on a Local Centre usually serves the community located immediately around it. The smaller scale and shorter reach of Local Centres does not diminish their importance to the Region's urban structure. Local Centres play a supporting role to Regional Centres, and contribute to the vitality of their surrounding communities. Local Centres can vary from small areas adjacent to old mainstreets to intensive clusters of buildings in new communities. Local Centres may naturally evolve as settlement areas mature. Many centres exist in the Region already. These centres often have historic streetscapes that should be retained and enhanced. Centres have existed on the mainstreets of Newmarket and Thornhill for over 100 years. The mainstreets of Stouffville and Sutton have long served the needs of the surrounding settlements and agricultural communities. Local Centres may accommodate more growth and a broader mix of uses provided Local Centres are served by efficient transit services. New Local Centres may be created as part of the community development process defined in Section 5.2. Objective: To create a series of local centres that provide a concentration of residential, business and institutional activities for the surrounding community. It is the policy of Council to: 1. To require municipal official plans to identify the locations of local centres in the communities of Newmarket, Aurora, Richmond Hill, Thornhill, Unionville, Markham Village, Woodbridge, Carrville, Velore Village, Maple and Keswick and other local centres as determined by the area municipality. [renumbered from 5.3.41 2. Local Centres that are wholly or partially located on rapid transit corridors will also be subject to the Regional Corridor policies of Section 5.5 of this Plan 3. That area municipalities prepare plans for these Local Centres that address the following criteria: [renumbered from 5.3.51 { 0Q0019 15 a) the Local Centres should permit a range and mix of uses within the municipality including residential, community, institutional, retail, office and human service uses; [renumbered from 5.3.2(c)l b) transit facilities should be easily accessible to pedestrians; [renumbered from 5.3.2(d)l c) local Centres should create focal points for community activity and civic pride; [renumbered from 5.3.2(e)] d) local Centres should be integrated with the local greenlands systems, including local parks, bicycle and pedestrian systems and local natural features; [renumbered from 5.3.2(fll e) local Centres should provide for pedestrian plazas, streets, and/or parks and promote a pedestrian environment; [renumbered from 5.3.2(g)l f) the areas around the Local Centres should relate and contribute to the vitality of the Local Centre; [renumbered from 5.3.2(h)l g) the specific location and boundaries of the urban centres should be identified using approximately 30 hectares (75 acres) as the focus of the urban centre; [renumbered from 5.3.56)1 h) the size of the Local Centre and the context for development should be in relation to the surrounding community and corridors; [renumbered from 5.3.5(c)1 i) permitted uses within Local Centres should be similar to those permitted in Regional Centres with greater emphasis on residential and local employment uses; [renumbered from 5.3.5(d)l j) local Centres should comprise the highest density and mix of uses when within urban areas, with the exception of Regional Centres; [renumbered from 5.3.5 e k) specific employment targets should be identified and contribute to a minimum target resident -to -employee ratio of 1:1; [renumbered from 5.3.5(f)] 1) local Centres can vary in size, scope, role and function; [renumbered from 5.3.5601 m) the location of Local Centres should be in the immediate vicinity of the highest -capacity roads and highest capacity transit service; the road pattern should be composed of a hierarchy of roads, progressing downwards from these intersections, into areas that are progressively less dense and contain less mixed use; [renumbered from 5.3.5(h)l n) promote their development as focal points for local and regional transit• o) plans for existing Local Centres should identify intensification targets for development; [renumbered from 5.3.5(i)l p) plans should also examine methods to reduce or slow down traffic within the centre, as well as improvements to local parking in support of local business, particularly through the development of higher -density development that may provide opportunities to create below -grade public parking when in urban areas; and [renumbered from 5.3.5(i)l q) where cultural heritage resources exist in centres, they should be conserved, if possible. [renumbered from 5.3.5(k)l yn1 ^k�'! 1,S4 600030 IGl 4. That all Local Centres be serviced by transit within the lifecycle of this Plan, and connect to the planned rapid transit services in the Yonge Street and Highway 7 corridors. 5. To support the development of Local Centres by giving priority to transit and infrastructure improvements in these areas. frenumbered from 5.3.61 6. To encourage area municipalities, as part of planning Local centres, to revitalize and preserve traditional mainstreet areas by conserving cultural heritage resources and reinforcing the character of the mainstreet.. [renumbered from 5.3.71 7. That area municipalities be supported in their planning for the Local Centres of the communities of Sutton, Pefferlaw, Mount Albert, Holland Landing, Sharon, Stouffville, Nobleton, Schomberg, Kleinburg, Ballantrae/Musselman Lake and King City. That plans for these Local Centres should meet the following criteria in addition to the applicable criteria of Section 5.4.3: a) identify the area of the commercial core; centre; c) protect the significant natural features of the community such as rivers, lakes, etc.; d) preteet the eultufal hefitage reseurees of the area-, e) recognize the potential for commercial and tourist activity; g) recognize the servicing capacity of the community, and h) provide human services for surrounding rural and agricultural areas. 5.5 Regional Corridors aaQo�s 17 Yonge Street and Highway 7 extend to the four comers of the Region, linking the Regional Centres and connecting it to the rest of the Greater Toronto Area and beyond. These corridors also have great potential for more intensive and mixed -use development, which will be served by rapid transit. The Regional Corridors form the key connections between the Regional Centres. These corridors are considered the main arteries of the Region's urban structure. They provide for the movement of people and of goods between the Regional and Local Centres to support their vitality. Major Road and transit networks also intersect along these corridors to create opportunities for "sub -centres" or "inter -modal nodes" between the Local and Regional Centres. These areas may be identified as Key Development Areas in local official plans consistent with the policies of this Plan This Plan promotes a comprehensive overall view of the corridors identified on Map 5 as a linking and unifying element in the Region that provides a transit system connecting to the larger Greater Toronto Area. In addition to Yonge Street and Highway 7, a Vauggh North -South Corridor and Markam North -South Corridor form part of the broader Regional Corridor svtem The Vaughan North -South Corridor will provide a rapid transit connection between the Vaughan Corporate Centre, York University and the Toronto Transit Commission subway (Downsview station on the Spadina Line). The Markham North -South Corridor will provide a rapid transit connection between Markham Centre and the Toronto Transit Commission subway (Don Mills station on the Sheppard Ling , Yonge Street is unique as a Regional Corridor — serving as the historical spine for over 200 years of development history north of Toronto traversing the Oak Ridges Moraine. OrigtinaHy with its stagecoach service and then radial rail, Yonge Street linked the many historical villages and towns northward to Newmarket and beyond. Existing pohcies and programs pertaining to Yonge Street should be reviewed to ensure that the historical character and natural heritage unique to this corridor will be enhanced throughout the development lifecycle and the implementation of planned rapid transit services. Highway 7 has a different history than Yonge Street — beginning at a time when its primarypumose was the movement of automobile and truck traffic as a former Provincial Highway. The vision for Highway 7 is the evolution of this once auto -dominated highway to a human -scale "mainstreet" with compact and pedestrian -friendly development served by rapid transit The identification of key development areas along the various segments of this corridor is the first step in moving toward the vision for Highway 7. Regional Corridors are not uniform across their entire length. The character and pace of change varies dramatically. From historical main streets to vacant land to modern higher - density buildings, there are a variety of conditions that make-up the character of each 00€,032 ow Regional Corridor. These conditions can be classified three ways: 1) " greenfield," representing vacant development -ready lands: 2) "second generation," comprising developed sites ideal for new and intensified development: and, 3) areas unlikely to change much at all, like historical areas and environmentally sensitive features like the Oak Ridges Moraine. These corridors are at different stages in the development lifecycle and should be subject to specialized policies and programs that recognize this. These should provide incentives for redevelopment in appropriate areas, while maintaining the character and integrity of areas where little change is expected. Objective: To achieve vibrant active corridors that support public transit and link Regional Centres. It is a policy of Council: To require Official Plans for Aurora, Newmarket, Vaughan, Richmond Hill and Markham to identify Regional Corridors in accordance with the locations identified on Map 5. 11.6 - W. 000033 19 2. To require the Official Plans for the area municipalities identify the major transit spines: Yonge Street from Steeles Avenue to Davis Drive; Highway 7: the Vaughan Corporate Centre to York University North -South link, and; the Markham North South link at Warden Avenue. 3. That the Region assist the area municipalities in identifying the different conditions of each Regional Corridor on a segment -by -segment basis. This should occur in a comprehensive manner that identifies Key Development Areas within these segments representing one or more of the following; a) areas with the greatest opportunity for mixed -use and higher -density development: b) areas assigned early priority for rapid transit facilities and services; c) areas abutting or adjacent to rapid transit stations, and; d) areas of the corridor that intersect with other major transportation routes or facilities. 4. That the Key Development Areas identified according to Policy 5.5.3 of this Plan serve as places where higher -density and mixed -use development is encouraged. This will provide clarity as to where infill and intensification will occur. 5. That area municipal policies direct new employment and mixed -use development to Key Development Areas within 500 metres of existing and planned conventional transit and raid transit stops with the highest densities within 200 metres of transit stops, 6. That rapid transit stations along the corridors will be supported by higher density development and/or unique public destinations such as historic mainstreets and public facilities. 7. That rapid transit services should be initiated as early as possible in the Regional Corridors to encourage development and redevelopment in these corridors. 000034 20 0 Regional Centres combined. 9. To assist the area municipalities in developing urban design guidelines for the various segments of the Regional Corridors, consistent with Policy 5.3.9.b) of this Plan. 10.,To explore opportunities with area municipalities and related agencies to trench public utilities such as hydro wires. 11. To explore opportunities with area municipalities to provide sidewalks and lighting in the street right-of-way in order to enhance the visual appearance of the streetscape. 12. Area municipalities will undertake the review of their Official Plans as required under the Planning Act and establish or review existing secondary plans that include segments of the re iog nal corridors, consistent with the following` a) identify the role and function of the seconder elan area; b) promote transit ridership through urban design; scale, land use mix and location: c) appropriately integrate new development with existing development to maintain and enhance historical mainstreets: d) recognize and protect the cultural heritage resources: e) buildings shall be oriented to the street to create a consistent setback and building form adjacent to the street right-of-way; f) building design should set a high standard of urban design g) buildings and sites shall be designed to achieve accessibility in terms of transit, pedestrians, cyclists and persons with disabilities: h) contributes to the overall mix of commercial, housing, employment and institutional uses in the Regional Corridor: i) complies with the Regional Streetscape Policies: j) identifies Key Development Areas within the regional corridor segment, consistent with Policy 5.5.4 of this Plan: k) identify the existing areas which will not redevelop in the near future but have redevelopment potential in the longterm erm: 1) provide for public gathering places, streetscaping and greening supportive of the pedestian environment and integrated with the local and Regional greenland systems including parks, bicycle and pedestrian systems and natural features: m) appropriately integrate with and transition to the surrounding land uses and bulk form through scale, use and design, and: n) other policies of this Plan. 21 of regional corridors. 14 That the delivery of transit services shall support the development objectives of this Plan. 15 To assign priority to Regional infrastructure improvements in regional corridors 16. That the area municipalities, in partnership with the Region, shall develop implementation strategies for the policies of the secondary plans reviewed or developed under Policy 5 5 13 of this Plan. These strateg ies.will be consistent with Policy 5.3.14 of this Plan. 17 Priority for residential development other than low density should be given. 18. That all new development shall either front or flank the Regional Corridor roadway. New backlots are not permitted. 5.6 Local Corridors A system of arterial roads and provincial highways crisscross the Region linking communities together. In the urban areas of the Region certain arterials or corridors have the potential to link regional and local centres by efficient transit services. These corridors also have great potential for more intensive mixed -use development, which would be supported by transit services. Some of these corridors may be identified as routes for rapid transit services and facilities. In such cases the regional corridor polices in Section 5.5 of this Plan shall apply to these segments. Local corridors located in existing and proposed urban areas have great potential for new residential and employment growth at densities that would make frequent transit service possible. The appropriate level of density will depend on site -specific circumstances and the nature of development along and adjacent to the corridors. Obiective: Promote opportunities for residential and employment growth and intensification along local corridors serving the local communities. It is the policy of Council: 1. That development and redevelopment in the corridors address the following criteria: h) identify the function of each section of the corridor; 22 i) establish a range of residential unit types, tenures and commercial uses, including retail, offices and services; j) establish density and performance standards to encourage mixed -use residential and commercial building forms, in addition to single -use buildings, with particular attention to creating public spaces at grade; k) establish consistent setback provisions to encourage a continuous building form adjacent to the street right-of-way; 1) establish site -specific parking requirements that recognize the level of planned transit service and the need for residential and commercial activities; as well, to encourage the provision of alternatives to street parking along the street frontage, for example, underground or parking at the rear with appropriate screening; m) encourage pedestrian activity through the arrangement and design of a development and streetscaping; and n) observe the streetscape policies in Section 5.2. 2. That major new development or redevelopment proposals on corridors be evaluated in terms of the policies of this section of the Plan. 3. That area municipal policies concentrate new employment within 200 metres of transit stops. :... ._................ 5. To encourage area municipalities, as part of corridor planning, to revitalize and preserve traditional mainstreet areas. 6. To require that secondary plans contain policies which indicate the function of corridors considering the historic function and provide land use policies along the local corridors. 7. That those segments of local corridors identified through the environmental assessment process as locations for rapid transit services and facilities shall be subject to and consistent with the Regional Corridors policies under Section 5.5 of this Plan. Amendment to the Definition Section: Floor Space Index: means the ratio of gross floor area to the lot area. l"00013 n. ,rR" YOY"Regzoh January 28, 2004 Mr. Bob Panizza Director, Corporate Services/Municipal Clerk Town of Aurora P.O. Box 1000 100 John West Way Aurora, Ontario L4G 6J1 Dear Mr. Panizza: Re: Centres and Corridors - Growth Management in the GTA Ore of the Regional Clerk Corporate Servires Department The Council of the Regional Municipality of York, at its meeting held on Thursday, January 22, 2004, adopted the recommendations of the Planning and Economic Development Committee, with respect to the report entitled "Centres and Corridors - Growth Management in the GTA": A copy of Clause No. 3 of Report No. 1 of the Planning and Economic Development Committee is enclosed for your information. Please contact John Waller, Director of Long Range and Strategic Planning, 905-830-4444, ext. 1525, if you have any questions with respect to this matter. Sincerely, /u Denis Kelly Regional Clerk K.Price Attachments Copy to: J. Waller, Director, Long Range and Strategic Planning 000008 The Regional Municipality of York, 17250 Yonge Street, Newmarket, Ontario L3Y 6Z1 Tel., 905-830-4444 Ext. 1320, 1-877-GO4-YORK, Fax: 905-895-3031 Internet: wwu<region.york.on.ra YorkRggion Clause No. 3 in Report No. 1 ofthePlanning and Economic Development Committee was adopted, without amendment, by the Council of The Regional Municipality of York at its meeting on January 22, 2004. 3 CENTRES AND CORRIDORS - GROWTH MANAGEMENT IN THE GTA The Planning and Economic Development Committee recommends the adoption of the recommendations contained in the following report, December 16, 2003, from the Commissioner of Planning and Development Services: RECOMMENDATIONS It is recommended that: 1. Council receive this report for information. 2. Staff continue to work with the GTA Regions and Cities on key proposed action areas and in monitoring progress. 3. This report be forwarded to the local municipalities and other interested stakeholders for information. 2. PURPOSE The purpose of Centres and Corridors -Growth Management in the GTA is to identify the actions that need to be taken to focus on the development of 17 major Centres and Corridors across the GTA, including a Provincial and Federal government lead role in policy, programs and investment. York Region staff have taken a lead role in developing this paper and based its approach on the work done for the Region's Centres and Corridors Strategy and the Making It Happen Report. 3. BACKGROUND In 1992, a report entitled GTA 2021: The Challenge of our Future, a Working Document was prepared by the former Office for the Greater Toronto Area (OGTA) and endorsed by Provincial Cabinet. The report adopted the concentrated nodal form of development as the "Vision for the GTA". The report had a number of purposes: • To raise public awareness of issues facing the GTA • To present a vision of what the GTA should look like in 2021; and • To provide abroad outline of the process needed to achieve the vision. 0000,39 Clause No. 3 Report No. 1 Planning and Economic Development Committee The GTA Vision emphasized quality of life through the development of sustainable, healthy communities supported by concentrated centres and corridor growth and a transportation system that balances transit and automobile use. To a large degree, the.GTA Vision has been integrated into the Official Plans of the four regions, the City of Toronto, area municipalities as well as the City of Hamilton. Important growth management successes across the GTA include the establishment of firm urban boundaries, innovative and comprehensive community building systems, long-range infrastructure strategies, and systems that protect greenlands, agricultural and rural areas and the identification of 17 major Centres and Corridors for development across the GTA. Four of the 17 major Centres are located in York Region: Markham Centre, Vaughan Corporate Centre, the Richmond Hill/Langstaff Gateway and Newmarket Centre all proposed to be linked by the rapid transit Corridors of Yonge Street and Highway 7. Well -established examples of success include the Mississauga City Centre, the North York Centre, the City of Toronto's "The Avenues" and the Markham Centre. However, efforts to create Centres and Corridors linked by transit have not been as successful as hoped. The Regional Planning Commissioners of Ontario (RPCO- GTA Caucus) have hosted a number of workshops and prepared several discussion papers focussing on growth management, examining what is working and what challenges remain to moving ahead. The consensus continues to be that the GTA Vision model is still the best plan to address the growth pressures facing the area. 4. ANALYSIS AND OPTIONS In order to maintain and enhance the GTA's strong economic competitiveness into the 2151 century, it is critical for government to set the stage through policy, investment and private sector partnerships to encourage effective urban growth management in the form of vibrant, liveable Centres and Corridors that support transit, affordable housing, and employment. Centres and Corridors -Growth Management in the GTA summarises the successes, challenges and efforts to date, and identifies the key action areas, the roles of all levels of government, and critical next steps to moving forward with an initial focus on creating a strong system of 17 major Centres and Corridors across the GTA. Ewa Clause No. 3 Report No.l Planning and Economic Development Committee 4.1 Key Action Areas A number of action areas have emerged from recent discussions on Centres and Corridors. There is also agreement that transit is.a key ingredient for success. There is no one action that will create centres. A broad series of actions by all levels of government and the private sector over a long period of time is needed. A suite of key action areas are recommended in Centres and Corridors -Growth Management in the GTA which include: • Policy Initiatives • Infrastructure Investment • Financial Tools • Supportive Programs Centres and Corridors -Growth Management in the GTA compliments and verifies York Region's efforts underway on the Centres and Corridors Strategy Making It Happen! and the Centres and Corridors Regional Official Plan Draft Amendment 43. 4.2 A Co-ordinated Effort is Required There is agreement that a package of co-ordinated policy, infrastructure, financial tools and related programs is required to build Centres and Corridors across the GTA both at the municipal, Provincial, Federal levels along with private sector involvement. 4.2.1 Municipal Role Municipalities need to create a new generation of strong local policies and guidelines to ensure focussed growth management, civic investment and public awareness of Centres and Corridors. Municipalities must continue to strengthen the local "toolbox" of supportive by-laws, financial partnerships and performance measurement and continue to work with the Provincial, Federal and private sectors to focus investment and policy and legislative reforms on a system of Centres and Corridors that will support smart growth. 4.2.2 The Provincial Role In order for Centres and Corridors to be successful, the Province must take a lead role in transit investment, policy and legislative reforms, and enabling municipal tax capabilities to create a fiscal and land use climate that promotes Centres and Corridors. Provincial investment in housing and transit must be focussed on Centres and Corridors. 4.2.3 The Federal Role The Federal government has a crucial role in supporting growth in Centres and Corridors, through long-term sustained investment in affordable housing (including rental), transit and infrastructure (including infrastructure renewal) and developing creative financial tools like location efficient mortgages, and transferring more tax resources to municipalities. 000041 Clause No. 3 4 Report No. 1 Planning and Economic Development Committee 4.2.4 The Private Sector Case studies in the United States and in our own urban areas demonstrate that significant public investment and policy attracts private sector involvement in creation of Centres and Corridors through reduced private sector costs, enhanced locational demand and reduced investment risk. Innovative collaboration on public sector/private sector development and marketing are required. 4.3 Moving Forward All levels of government and the private sector agree- now is the time for action. Centres and Corridors are the heart of our urban systems. They help promote quality of life, economic vitality, and play a key role in effective growth management. Municipalities have taken the first steps in identifying the major 17 centres across the GTA and in putting forward rapid transit proposals including York Region's Quick Start Program. All three levels of government along with the private sector need to work together strategically to manage growth in a way that encourages livable urban areas that will remain economically strong and globally competitive. Centres and Corridors - Growth Management in the GTA identifies the key actions that need to be taken and is intended to provide the starting point for discussion and coordination of next steps in achieving a successful system of Centres and Corridors in the GTA. 4.4 Relationship to Vision 2026 Implementation of Centres and Corridors - Growth Management in the GTA will help York Region achieve success under many areas of Vision 2026's eight goal areas. This includes: promoting livable, sustainable compact community cores, encouraging pedestrian friendly and transit oriented neighbourhoods, increasing housing choices available to residents, achieving better connections between where residents live, work, play and learn, partnering with federal and provincial government and the private sector to develop innovating funding methods, planning for high-level transit services to employment areas, and encouraging quality urban planning and design that emphasizes the needs of people, to name just a few. 000042 Clause No. 3 Report No. 1 Planning and Economic Development Committee 5. FINANCIAL IMPLICATIONS Centres and Corridors - Growth Management in the GTA is an important step in ensuring that the GTA remains a strong and viable economic engine for the province and the country. Within this context, York Region will benefit from remaining a key player in a, GTA wide coordinated effort to ensure the successful development of Centres and Corridors. Consultation will continue with area municipalities on any changes to or implementation of financial tools such as development charges, property tax, etc. 6. LOCAL MUNICIPAL IMPACT Centres and Corridors - Growth Management in the GTA is supportive of many initiatives underway in York Region's Centres and Corridors including the Region's Centres and Corridors Strategy Making It Happen! and the Centres and Corridors Regional Official Plan Draft Amendment 43. Continued co-ordination of efforts between the Region and local staff is critical to the successful implementation of Centres and Corridors - Growth Management in the GTA Staff will continue to monitor and support local initiatives and to consult local staff on Regional activities to ensure that efforts are co-ordinated, not only across the Region, but also with the efforts occurring across the GTA. 7. CONCLUSION There is consensus across the GTA that a system of Centres and Corridors is essential for effective growth management. The Centres and Corridors paper identifies key actions in four areas: land use policy, infrastructure investment, financial tools and supporting progress. The paper calls on the Federal and Provincial governments to provide infrastructure investment and additional municipal financial resources. All three levels of government along with the private sector must work together strategically to manage growth to create economically strong and globally competitive, livable urban areas. York Region has taken a lead role in developing Centres and Corridors - Growth Management in the GTA, which is based on the Region's Centres and Corridors Strategy Making It Happen! Centres and Corridors - Growth Management in the GTA is being sent by the RPCO- GTA Caucus to the Provincial and Federal Governments, as well as other interested agencies, to initiate discussion on taking the next steps in achieving a successful system of Centres and Corridors in the GTA. Clause No. 3 6 Report No. 1 Planning and Economic Development Committee The Senior Management Group has reviewed this report. (A copy of the attachment referred to in the foregoing has been forwarded to each Member of Council with the January 7, 2004 Planning and Economic Development Committee agenda and a copy thereof is on file in the Office of the Regional Clerk.) 000044 Ewart, Karen From: Steve Falk [stalk@ttsdistributing.com] Sent: Friday, February 27, 2004 2:40 PM To: Ewart, Karen Subject: FW: York Region Committee in Support of the Stephen Lewis Foundation Hi Karen, I am writing to thankyou for the opportunity to present a deputation to the Aurora Council meeting on March 2, 2004. I will be briefly explaining the work and goals of our committee here in. York Region. Our group is conducting an 18 month campaign across the Region of York that will raise awareness of the HIV/AIDS pandemic in Africa. We are working across all sectors of thecommunity from faith groupsto service clubsto the business and educationsectors toreach our goals of raising awareness about the critical need to ease the pain of this tragedy in Africaand also to raise 1 milliondollarsto support the work of. the. Stephen Lewis Foundation. We are proud to include as our campaign. Patrons Lincoln. Alexander, Steven. Page from the Bare Naked Ladies and Charles Beer. Withtheir help we hope to have a. successful "If I had a million dollars" campaign in the coming months. We areproposing a week long HIV/AIDS in Africaawareness week across the Region in the Fall. Additionally, Stephen. Lewis. will be the keynote speaker at our Gala Event on December 2, 2004, If you. require further information, please let me know. Steve Falk Cc -Chair of the York Region Committee in Support of. the Stephen. Lewis Foundation Director of Business Development ITS Distributing Inc. Distribution. Management Services since 1986 Fulfilment, Mailing Services, Pick. Pack and Warehousing Phone: 905-841-3898 Fax: 905-841-3026 Marvel at all that we do! www.ttsdistributing.com 000045 Mo 3-c RECEIVED FEB 10 2004 PE W"�PNt4 „ ° ,PW Office of the Mayor m Tom Taylor February 6, 2004 Mayor Tim Jones Town of Aurora Box 1000 100 John West Way Aurora, ON L4G 6,11 Dear Tim; Town of Newmarket 395 Mulock Drive PO Box 328, STN Main Newmarket, Ontario L3Y 4X7 Telephone: 905-895-5193 Toronto: 1-877-550-5575 Fax:905-953-5102 Email: nmayor@town.newmarket.on.ca I am writing this letter on behalf of the York Region Committee in support of the Stephen Lewis Foundation campaign of raising one million dollars for HIV/AIDS in Africa. As you know Tim, we attended a breakfast recently at the Municipal Offices in Newmarket where the aim was to inspire people to raise awareness and financial support for the cause of HIV/AIDS in Africa. We were fortunate to hear a very moving story from one of the Stephen Lewis foundation workers and she shared with us the atrocities that are happening there on a daily basis. There are six thousand five hundred people a day dying from AIDS. In other words the population of the Town of Newmarket would be erased in less than twelve days. I am asking for you to invite a representative from this campaign to make a deputation to your Council to help this Committee with their endeavours. Please contact Mary Anna Beer, Chair to arrange a date and time. Mary Anna can be reached by calling 905-895-4332. 1 am sure Mary Anna or one of her many campaign associates would be pleased to speak to your Council and ask for their support and assistance in raising one million dollars in York Region for HIV/AIDS In Africa. The old saying "charity begins at home" starts here. Yours truly, Tom Taylor Mayor "The situation of people living and dying with AIDS in parts of Africa is so desperate that even the most basic help will bring solace and hope." "We know how to defeat this pandemic. We have all the knowledge we heed, But to do it, there must be a quantum leap in financial resources." Stephen Lewis, Secretary General's Special Envoy on HIV/AIDS in Africa 000046 AGENDA ITEM # VI 11 enofg4�o TOWN OF AURORA re� b EXTRACT FROM GENERAL COMMITTEE MEETING NO. 04-06 HELD ON TUESDAY, FEBRUARY 17, 2004 & ADOPTED BY COUNCIL ON FEBRUARY 24, 2004 CONSIDERATION OF ITEMS REQUIRING SEPARATE DISCUSSION ADM04-003 - Strategic Planning Process Moved by Mayor Jones Seconded by Councillor Wallace THAT Report ADM04-003 be deferred to the March 2, 2004 General Committee meeting. CARRIED 666047 C ► TOWN OF AURORA GENERAL COMMITTEE REPORT No. ADM04-003 DATE: February 171h 2004 TO: Mayor and Members -of -Council FROM: Larry Allison, Chief Administrative Officer SUBJECT: Strategic Planning Process RECOMMENDATIONS THAT the Committee determine whether it wishes to accept one of the appended third party proposals to facilitate an update the Strategic Plan; THAT the Committee determine whether it wishes to incorporate a formal community research component undertaken by a research f irm as background to the review. BACKGROUND At the Council meeting held January 27th staff were requested to explore an approach to the update of the Town's Strategic Plan incorporating the use of external expertise in a facilitation role and an expanded public consultation component. Staff were requested to report back with additional information regarding cost and timing. As a result number of consultants in the field were contacted and proposals to undertake the work were solicited. The submissions are appended to this report for the review of the Committee. COMMENTS As was pointed out during the Strategic Planning session presented at the offsite workshop, the update process need not be a complete rewrite of the existing document. Some of the elements of the existing Goals would likely remain consistent today. The process should however reflect changes to the legislative environment the Town finds itself in, recognize unavoidable influences from other sources and reflect a vision that has the consensus of the newly elected Council. One of the key elements in the review process is the public consultation component. The Plan should reflect the views of the broad community and measures should be taken to ensure the product has a number of varied opportunities for public input prior to completion in order to be as inclusive as possible. The proposals attached take varying approaches to this component and all involve active participation by Council and staff at key stages in the process. U00048 - 2 - Report No. ADM04-003 OPTIONS The initial strategic plan work was undertaken in 1993 with the assistance of the Randolph Group. In previous years updates were undertaken on an in-house basis with direct input from Members of Council. Engaging external resources to assist with the Strategic Plan Review is optional but is advocated given the age of the parent document. Proposal Summary: B. Miles and Associates — the workplan for the project would include an initial solicitation of information/research from a variety of sources including potentially a web survey to serve as the basis for a visioning step led by Council. The outcome would be circulated to the community using a variety of sources, conclusions drawn based on the input received and review by staff. The document would then be brought back to Council for approval. Ann Welsh Communications — the approach from this firm would include an environmental analysis (information gathering stage) once the project parameters were defined more precisely, the facilitation of a visioning session with Council, community input potentially through a "Town Hall" meeting or web site link and a final step where business/operational plans are devised to achieve the strategic goals determined. Randolph Group — their approach is somewhat similar with an initial information gathering stage, a series of interviews with key individuals followed by a working session with staff and council. The second component would include workshops with community organizations and the public following which the new plan would evolve. The document would then be finalized, circulated for comment and parameters for a framework established for implementation mechanisms. As noted above each of the proposals provides an approach to public participation. An alternative available in this regard is to undertake a professional sampling and analysis exercise as a precurser to the review. Attached is a general overview of the services provided by Environics Research Group. As an initial phase of a more comprehensive process Council may wish to formally sample the views of the community to obtain a perspective on the sentiments of the residents on their vision for the community, their satisfaction with various service levels and/or other key issues. The data would be invaluable in ensuring the new strategic plan would reflects the broad base perspective of our residents. Approaches available from the firm vary substantially from relatively inexpensive web based surveys of selected groups to very comprehensive custom polls and resulting detailed analysis. Municipalities faced with strategic decisions related to competing priorities and allocation of resources are tending to use this approach more frequently. Attached as an Appendix is a published summary of a comprehensive recently undertaken by the firm for the Town of Markham that formed the basis for a major strategic undertaking. A similar exercise for Aurora would be beyond the scope of our ability to pay but demonstrates an approach to this issue recently undertaken. - 3 - Report No. ADM04-003 CONCLUSIONS As directed by Council in January staff have reviewed a number of approaches to undertaking an update to the Strategic Plan. The proposals attached provide differing work programs and opportunities_ for Council input and public consultation. Eachanticipates concluding in June of this year. All are relatively consistent in terms of anticipated financial commitments. The opportunity also exists to supplement the work program by involving a professional research firm if that was deemed an important element by Coun cil. EFFECT ON TOWN FINANCES Current Year Based on the proponents submissions, the cost for the work should not exceed $50,000, sufficient funds will need to be added as part of the revisions to the draft 2004 budget to accommodate the undertaking. Final work programs and costing would be defined based on detailed discussions with the preferred proponent. The additional costs for the additional research component would vary depending upon the approach to be undertaken and could allow for reductions in the work programs proposed above. Undertaking a custom poll of Aurora residents on specific issues designed by the Municipality could add an additional $50,000 to the project. Costs for other services provided by the firm would be substantially less. Further discussion would take place in this regard if there was a desire to add this element to the process. Future Years If the review moves forward, as a part of the 2005 Budget additional funds will be proposed to undertake a "core services review" as a second phase component of the implementation of the new strategic plan outcomes. This process, also involving external expertise will review and confirm the various businesses the municipality is in to ensure alignment with the new Plan. LINK TO STRATEGIC PLAN As above. SUPPLEMENTARY INFORMATION Attachments Extract from the January 271" 2004 Council Meeting Proposal from B. Miles and Associates, Aurora dated February 9, 2004 Proposal from Randolph Group dated February 11, 2004 000050 - 4 - Report No. ADM04-003 Proposal from Ann Welsh Communications dated February 11, 2004 Overview of Environics Research Group services. For Further Information Contact: Larry Allison, Chief Administrative Officer, Ext. 251 Chief Administrative Officer 000051 Miles February 9, 2004 The Town of Aurora *Associates C/O: Lawrence Allison Strategy to Execution 100 John West Way Aurora, ON L4G 631 Dear Mr. Allison: Further to our meeting earlier this week, please find enclosed my proposal to provide strategic planning services to The Town of Aurora. The proposal outlines my suggested methodology, fees and timelines. The methodology includes steps that may not have been considered in past strategic planning processes. In my opinion as a strategic planner, researcher and senior business executive, using this methodology will yield a very comprehensive, ground -up, visionary and well supported strategic plan that will be both the foundation for immediate short term action as well as the base for planning in future years. Since I moved my family to Aurora last year I am just beginning to develop friends and associates in town. I understand that political impartiality and confidentiality are key requirements of this project. I do not have any friends or relatives in municipal, provincial or federal governments or any affiliations or ties at any level of government. I do not know any of the town's Councilors other than Tim Jones who I met for the first time at a recent Aurora Chamber of Commerce luncheon. I am prepared to sign a non -disclosure agreement with The Town of Aurora as a requirement for managing this project. During our meeting we discussed my credentials and qualifications for conducting this project. As further support, I am attaching a list of strategic planning/facilitation clients. I am prepared to manage the complete project or, if required, to work with a second party where I participate in steps 1 to 3 and / or others. I live here, so I want to help ensure that the best lri9 Treegrove i ide. planning process is used and that it is properly managed. Ac!lora, Onti.srk Thank you for considering my proposal. If you require further L-Lt; CHS information please contact me at once. y_ Sincerely, ¢,3s 'z:; �,: 000052 Brian Miles ,vvoy l) ii;=-_ B. Miles & Associates RM'fles ss dates Strategy to Execution CLIENT REFERNECES 1, Basics Office Products, Waterloo Diversified Office Products Dealer Jim Dillon, President Parn Dillon, VP Hurnan Resources 1-800-387-3411 Jim: ext. 201 Parn: ext. 202 2. Beatties Office Products, St. Catharines Diversified Office Products Dealer Ted Hoxie, President 1-800-263-4977 3, Grosnor industries, Toronto Muld Divisional Plastics Manufacturer George 5chnarr, President 41.6-744-2011. 4. Multi -Laser solutions Inc., Gananoyue Laser and Inkjet Toner Cartridge Manufacturer Brian Cosgrove, President 1-800-338-2274 S. Writes & Riddell, Montreal Office Products & Printing Dealer Peter Lai, General Manager 1.-800-26 3-8641. C09Treegiove _:rrde L•'tG 6L9 r q, (i 7'7� '4•I1h (100053 b�'. �nr4urrv.fa�rhes.�.� METHODOLOGY The proposed strategic planning methodology contains 8 different steps shown in their preferred sequence. The steps are: 1. Research 2. Summarize / Conclusions 3. Visioning 4. Strategy Development 5. Public Consultation 6. Summarize / Conclusions 7. Corporation Recommendations 8. Final Council Approval Miles *Associates Wrategy to Execution The Town of Aurora Strategic Planning 00,0054 Proposal U N STEP 1: Research The first step in preparation for conducting a strategic planning process is to gather together information that will provide both background and context to the process. Input obtained, whether qualitative or quantitative, would greatly assist in the development of a comprehensive and relevant strategic plan. In the public arena there are three main sources of this information - interest groups, corporation management and the general public. The research phase includes the following steps: 1. Interest Groups: Gathering managed and concise input from this group can be accomplished by asking for each group to submit a written brief. Letters would be sent to each group explaining the purpose of the request and giving a tight format and timeline for the submission of their written proposals. The final public consultation step which would happen later would be outlined to them. 2. Corporation Management: Planning forms would be given to each department head requesting their input on the short, medium and long terms strategic issues under their department's scope of responsibilities. 3. General Public: A totally confidential on-line survey would be conducted. For people without access to the web, written forms could be requested, mailed completed and returned. Upon receipt their input would be keyed into the on-line database. The survey would need to be advertised. The advertisement could inform interest groups about the submission of written briefs so that all interest groups would be officially notified. NilesThe Town of Aurora Strategic Planning Assodates Proposal .Strategy to Execution * 000055 w3 STEP 2: Summarize. / Conclusions The second step is to aggregate and summarize the input. Once completed, the input will be analyzed and conclusions will be formulated. 1. Interest Groups: Where possible, similar interest groups (e.g. amateur sports groups / teams) data would be aggregated and overall major conclusions formulated 2. Corporation Management: The completed planning forms would be gathered. 3. General Public: The data would be aggregated and quantitative tables would be created that would indicate the level (raw score) of support for each main conclusion. Once all of the input has been gathered, analyzed and summarized, each councilor will receive the research package to review in preparation for the visioning step. If steps 1 and 2 are not taken, the council will develop the new vision of the future and the related goals and strategies based on current knowledge and assumptions and without fresh input from its constituencies. This could mean the vision and goals would not be properly aligned with the vision of the constituents which could make the plan much more open to criticism and future revision. Miles ASSOU&S Strategy to Execution *. O'00056 The. Town of Aurora Strategic Planning Proposal STEP 3: Visioning Visioning is a critical step in the development of a proper strategic plan. Goals, strategies and subsequent action plans all flow in sequence from each other. Without initially developing a clear vision of the future the strategic goals will be reflective of current thinking and will tend to support the status quo. The visioning step allows all of the participants to consider each others "what ifs", new ideas, lateral thinking concepts that, although they may not all be relevant, will help the participants break away from their current thinking and open their minds to new possibilities. The visioning step consists of an all day session with the councilors and the facilitator in a closed meeting room. A laptop computer, projector and screen are used by a separate person / transcriber using sophisticated planning software to capture the ideas and develop the vision. This method focuses the group as they not only talk and listen, they watch their ideas / vision unfold on the screen. When they leave they take a final printed copy with them. The visioning session will develop the mission statement, future vision and broad strategic goals. Niles +de ':trrttegi tc Fxecutian + The Town of Aurora Strategic P9ar nitig 000057 Proposal STEP 4: Strategy Development Once the visioning session has been completed the vision, mission statement and goals will be distributed to the council and corporation management. At least one subsequent meeting will be required to articulate and word -smith all the goals and to develop short, medium and long term strategies. Once the plan is completed and the draft has been approved by Council the public consultation process will begin. RMI'lles oh-soclates Strategy to Execution * The Town of Aurora Str iegk Planning 000058 Proposal 5 STEP 5: Public Consultation During this step the following potential consultation methods can be used to involve the public: 1. Town hall meetings 2. Focus groups: - Interest group participants - Citizen participants 3. Meetings with large interest groups 4. Receiving a -mails and correspondence Advertisements would inform constituents about the strategic plan and the public consultation process. The plan would be put on The Town of Aurora web site and interested citizens could request a written copy. RN'lles *Assodates Strategy to Execution * The Town of Aurora Strategic Planniti 060059 Proposal 19 STEP 6: Summarize / Conclusions Once all constituents had been consulted sufficiently the feedback would be aggregated, analyzed and conclusions developed. This material would be collated to line up with the various goals and corporation departments. It would be circulated to the councilors and corporation senior management. Miles *Associates Stmtcgy to Execution * The Town of aurora trategk Planning 00-0060 Proposal M STEP 7: Corporation Recommendations The corporation management team would review the material and make recommendations back to Council on changes, new issues and any concerns. If required, a joint meeting would be held to listen to their input. B.Miles OAI Strutegy 90 Fxecartion The Town of Aurora Strategic Planning 000061 Proposal 9 `l STEP 8: Final Council Approval A meeting would be held to review the plan one final time and to obtain final Council approval. RMI'les *Associates .Sfrategy to Execution The Town of Aurora Strategic Planning 000062 Proposal :1.0 FEES AND TIMELINES The chart below summarizes the time required for each step (in days), the approximate number of hours to complete each step and any additional cost estimates. Fees are billed at the rate of $225.00 per hour. All out-of-pocket expenses are billed at cost. Other costs will be billed as quoted and will be payable directly by The Town of Aurora. Fees are billed periodically and are due upon receipt. The estimates below indicate the complete process will take approximately 16 weeks to complete, consume a rough estimate of 80* hours of consultation time and other costs will total $12,500 for a rough total cost of $30,500 plus taxes and misc. expenses. STEP DAYS HOURS OTHER COSTS 1. Research 28 10 - 20 Survey $5M Advert. $3M 2. Summary/conclusion 14 10 - 20 3. Visioning 7 8 Transcr. $1.5M 4. Strategy 7 6-10 5. Public Consultation 28 TBD* Advert. $3M 6. Summary/conclusion 14 10 - 15 7. Corp. Recommend. 7 2-8 8. Final Approval 7 4-8 TOTALS 112 50 - 89* $12.5M * TBD - Involvement & time required is not known Miles The Town of Aurora Strategic Panning *Associates 000063 Proposal .Strategy to Enecartion * AnnWelsh COMMUNICATIONS INC. Commooicalionsthat take the stress out olchange® 1110 Yonge Street, Suite 301 Toronto, ON M4W 21-6 Tel: 416/972-1930 February 11, 2004 Mr. Lawrence Allison Chief Administrative Officer Town of Aurora 100 John West Way Aurora, Ontario L4G 6J1 Dear Larry: Again, thank you for the opportunity to meet with you last week to discuss Council's strategic planning initiative and to submit a proposal to design and facilitate the development of a strategic plan for the Town of Aurora. I am pleased to offer Council extensive experience and a solid track record in designing and facilitating strategic planning and public consultation processes for organizations in the public, not -for -profit, non-profit and corporate sectors. I am very familiar with and comfortable working within public sector structures and decision -making processes. I have worked extensively with elected officials, both in a consulting and a public servant capacity. I would, of course, be pleased to provide any additional information that Council requires and/or to meet with Council. Thank you for the opportunity to provide Council with a proposal. Yours truly, Ann Wefsh Encl. OU-0064 105 A Proposal to the Town of Aurora To Provide Strategic Planning Facilitation Ann Welsh Communications Inc. February 11, 2004 000065 A Proposal to the Town of Aurora February 11, 2004 Table of Contents 1. Introduction................................................................................................................. 2 CompanyOverview ... :............. ....................................................................................... 2 ClientServices............................................................................................................ 2 2. Our Understanding of Your Needs............................................................................. 2 3. Our Approach.............................................................................................................. 4 KeyFeatures................................................................................................................... 4 PublicConsultation......................................................................................................... 5 FourStep Approach........................................................................................................ 6 Step1: Project Start-Up.............................................................................................6 Step 2: Environmental Scan/Situational Analysis ..................................................... 7 Step3: Visioning........................................................................................................ 7 Step 4: Business/Operational Planning...................................................................... 8 4. Your Strategic Planning Facilitator............................................................................ 8 Relevant Experience and Training.................................................................................. 8 StrategicPlanning....................................................................................................... 8 FacilitationSkills........................................................................................................ 9 Working with Elected Officials................................................................................ 10 Familiarity with Municipal Government.................................................................. 11 PublicConsultation................................................................................................... 11 Communications....................................................................................................... 12 EmployeeConsultation............................................................................................. 12 5. Work Plan ................................................................................................................. 13 Step1: Project Start-Up........................................................................................... 13 Step 2: Environmental Scan/Situational Analysis ................................................... 14 Step3: Visioning...................................................................................................... 14 Step 4: Business/Operational Planning.................................................................... 15 6. Deliverables.............................................................................................................. 16 7. Budget.......................................................................................................................17 S. What We Offer.......................................................................................................... 18 Appendix 1 Resume: Ann Welsh................................................................................. 19 Appendix2 References................................................................................................. 20 S AnnWelsh COMMUNICATIONS INC. Cwnmunicalionsllulpk¢Neslmss wlalsday¢s ���iii �ll iJ A Proposal to the Town of Aurora February 11, 2004 A Proposal to the Town of Aurora To Provide Strategic Planning Facilitation 1. Introduction This is a proposal by Ann Welsh Communications Inc. to design and facilitate a strategic planning process for the Town of Aurora, Ontario. Company Overview Established in 1990 and incorporated in 1991, Ann Welsh Communications Inc. is dedicated to helping organizations and communities make and communicate wise decisions that are good for business and good for people. We are an organizational development centred practice. Our combination of change management, marketing and public relations expertise helps our clients to achieve rapid, significant and lasting change on an individual, organizational and community level. Our clients are progressive organizations who are committed to employee participation and accountability. Ann Welsh Communications Inc. is not affiliated with any political party. Client Services Corporate Communications • Facilitation • Training 2. Our Understanding of Your Needs The Town of Aurora has had a strategic plan, "Aurora's Way Ahead" in place for about nine years. Successive Councils have reviewed and updated the plan. At its January 10, 2003 off -site workshop, Dr. Phil Daniels gave Council a strategic planning frame of reference. Mayor Tim M. Jones is committed to and Council has endorsed in principle a complete update of the strategic plan. AnnWelsh COMMUNICATIONS INC. Communicalims0a11aRe I�eslrzcswlol[�ange° 2 000067 A Proposal to the Town of Aurora February 11, 2004 An up-to-date strategic plan, developed in the context of today's political, economic, social, technological and international environment, will position the Town of Aurora to make the best use of its many resources and attract new ones so that it will continue to be a great place to live, work and do business. Aurora's strategic plan will provide the context for the development of other key planning documents (e.g., Economic Development Strategy). The Town of Aurora has had a long commitment to open communications and consultation. Continuing this commitment, your strategic planning process must have a public consultation component. This public consultation should be "meaningful" —that is, consultation that provides a real opportunity for the Aurora community to have input to the strategic plan (not just "rubber" stamp it). At the same time, this consultation needs to be planned and managed so that it provides equal opportunities for people and/or the organizations that represent them to give input and be heard by Council and that makes the best of use of community members' and Council members' time and talents. It will also be important to ensure that the Town's employees have an opportunity to participate in the planning process. Whatever their roles and responsibilities, they have important "front-line" perspectives and information to contribute to Council's deliberations. Again, these internal consultations must be well -planned. Two key decisions that Council will need to make are: • What "transparency" means • What the scope of public and employee consultation should be. In this way, Council's decisions can be reflected in the strategic planning process, planned for and communicated. It is our understanding that Council will take a "hands-on" approach in developing the new strategic plan for Aurora. In working with Council, your strategic planning facilitator must: • Be a "quick study", able to analyze and synthesize large amounts of information from a variety of sources. • Have an understanding and appreciation of the municipal government sector and the impact that provincial government decisions over the past few years have had on Ontario municipalities. • Be able to design and facilitate a process that will create a positive, "safe" and constructive environment in which Council can do its strategic thinking and planning and consult with its employees and the community it serves. • Design and facilitate effective, productive meeting agendas. • Manage the strategic planning process so that it is completed on time, within budget and achieves the agreed upon deliverables. AnnWelsh CUM INC. Communicalbns Nat lake Ne stress out of 0AM 0 A Proposal to the Town of Aurora February 11, 2004 3. Our Approach Key Features In working with Council to develop Aurora's strategic plan, we would: • Identify key decision points and a range of options for Council at each stage of the strategic planning process. • Provide proposed definitions for key terms in strategic planning (e.g. "vision") to ensure a common understanding for discussions. ■ Work with you to confirm the time period that the strategic plan must cover. • Identify success criteria for each key phase to assist Council in answering the question: "how will we know it (e.g., "vision statement") when we see it?" and for measuring progress in achieving the plan. • Use of the "OARRs" (outcomes, agenda, roles and "rules") model as basis for designing and facilitating Strategic Planning and Consultation sessions. • Make "communications" an integral part of our approach. In our experience, initiatives that take communications into account from the very beginning will be fundamentally and profoundly different than those that do not. This would include: • providing advice (and services, if required) to Council on communicating about the strategic planning initiative with employees and the community. • ensuring that relationship building is an integral part of the process and of the design of every meeting agenda to support Council Members in their work together and to make employee and public consultations constructive, positive and effective. • identifying an "up -beat", energizing name for the strategic planning initiative and the final plan. ■ Make skills transfer an integral part of our approach. • Use a variety of leading edge strategic planning tools and techniques that will be most relevant to the outcomes you want to achieve. (We have training in several strategic planning approaches.) AnnWelsh COMMUNICATIONS INC. CammwicaliansNal lake the 5110ouloltAan9¢e 000069 0 A Proposal to the Town of Aurora February 11, 2004 Public Consultation In our experience, there are three key points at which public consultation can be most effective in strategic planning processes that seek an element of public consultation. These are: 1. Obtaining input to the information gathering process as the start of the strategic planning process (note: important if starting "from scratch" which the Town of Aurora is not). 2. Seeking comment on draft strategic vision, mission, values and strategic directions/goals statements. 3. Seeking comment on draft business/operational plans. We would work with Council to determine which of these it wants to pursue and how best to get community input. In our experience, #2: Seeking comment on draft strategic vision, mission, values and strategic directions/goals statements is the most important. There are many ways to get input (e.g., "Town Hall" meetings, focus groups, web site, public opinion polling.) We would help Council to determine what would work best for what it wants to achieve. Whatever method it chooses, it will be critical to set parameters for the discussion/input and to ensure that no one agenda "takes over" the process. Employee Consultation Employee input is critical. Employees, ultimately, must have "ownership" of the strategic plan. Again, in our experience, there are three key points at which employee consultation can be most effective: 1. Obtaining input to the information gathering process as the start of the strategic planning process. 2. Seeking comment on draft strategic vision, mission, values and strategic directions/goals statements. 3. Seeking comment on draft business/operational plans (Staff, of course, will have the responsibility for fleshing out the detailed implementation of the business/operational plans.) We would work with Council to determine which of these it wants to pursue and how best to get employee input. A Note on Confidentiality: We appreciate that during the course of our work with the Town of Aurora we would have access to confidential information. We want to assure AnnWelsh COMMUNICATIONS INC. Canmumaalionslklhkellceslressoulolckamsx° 000070 A Proposal to the Town of Aurora February 11, 2004 you that we regularly deal with highly confidential and proprietary information. We treat all information in the strictest confidence and keep all client files secured. All "working" notes and documents will be shredded at the conclusion of the project. No Conflict of Interest: We are not aware of any conflict of interest that we would have in undertaking this work with Council. Four Step Approach We would undertake this work in four steps Step 1: Project Start -Up Step 2: Environmental Scanning/Situational Analysis Step 3: Visioning Step 4: Business/Operational Planning Here is a brief outline of how we would carry out each step: Step 1: Project Start -Up Key Activities • Confirm project expectations, deliverables, budget, time line • Sign contract • Determine what "transparency" means • Determine scope of/methods for employee consultation and develop implementation strategy. Our experience in designing and facilitating strategic planning processes in unionized environments is that the union executive needs to be informed of the proposed process and involved in determining how unionized employees will participate in the process of giving input. • Detennine scope ofhnethods for public consultation and develop implementation strategy. • Develop final work plan with dates, key activities, milestones, responsibilities. • Determine documentation and information required for Council and roles/responsibilities for providing/developing it (e.g., existing strategic plan, annual reports, economic development analysis and projections, etc.). • Develop and implement internal and external communication plan (the Town's excellent web site will be an important too] in communicating about the strategic plan). 0S �� AnnWelsh COMMUNICATIONS INC. Cammmimlim Ilml lak the slog oul0lf OR00 Cocoi1 A Proposal to the Town of Aurora February 11, 2004 Step 2: Environmental Scan/Situational Analysis Key Activities Conduct information gathering for Council's "Environmental Scan" or "Situational Analysis" using two scanning models: — PESTI (Political climate and Legal environment, Economic conditions, Socio- cultural context, Technological environment, International environment); and, — SPOT (Strengths, Problems, Opportunities and Threats) analyses. We would work with Council and its staff to identify and prepare concise background material to support Council in its strategic planning discussions. Begin internal consultation. — As part of this information gathering process, we would propose to conduct one- on-one interviews with the Mayor, each Council Member and the CAO and a focus group with the Directors of Building Administration, Corporate Services; Leisure Services, Planning, Public Works, and Treasury, and the Economic Development Officer. The purpose of these interviews and focus groups would be to identify priority issues, challenges and opportunities. We would summarize the results of these interviews for Council. Design and facilitation of Environmental/Situational Analysis session for Council. Summary of findings for Council. Step 3: Visioning Key Activities Design and facilitation of Council's session(s) to develop draft vision, values, mission and strategic directions/goals statements (we anticipate that this will require more than one session). "Fine tune" drafts. Continue employee consultation strategy. Two possible options would be: — "Town Hall Meeting(s)" with a formal agenda where Council, senior staff or your strategic planning facilitator present draft material and seek input to a series of specific questions; or, — Directors organize discussions with their staff at the departmental level. We would assist you in planning the agendas for any meetings with employees on the strategic plan, consistent with the communications strategy that we develop. AnnWelsh 7 COMMUNICATIONS INC. C1 ^/tJ�^ 72 CanmunMaOonsllal Uk¢ik smgDula/0afgel J�rU A Proposal to the Town of Aurora February 11,2004 • Summarize employee input. • Conduct public consultation, based on agreed upon strategy. (Options for getting public input might include a "Town Hall" meeting, special Town of Aurora web site link, "storyboards" visually conveying the strategic statements and displaying these in the Town Hall foyer with "comments' boxes, focus groups with selected community leaders). • Summarize public consultation input. • Council finalizes vision, values, mission, strategic directions/goals statements and identifies key performance indicators. • Continue implementation of internal and external communication strategy. Step 4: Business/Operational Planning • Design and facilitation of draft business/operational plan to achieve the strategic directions/goals. • Continue implementation of agreed upon public and employee consultation. • Continue implementation of internal and external communication strategy. • Council finalizes strategic plan. • CAO initiates implementation at the stafflevel. 4. Your Strategic Planning Facilitator Ann Welsh would undertake all aspects of the design and facilitation work. She would be your key contact and responsible for ensuring that all work is conducted on time, within budget and to the highest professional standards. Ann's resume is in Appendix Relevant Experience and Training Appendix 2 contains Ann's references. Her experience includes: Strategic Planning For many government, non-profit, public and corporate sector teams, designing and facilitating strategic visioning, strategic planning and business/operational planning sessions. For a major telecommunications firm, designing and facilitating various strategic and business planning initiatives for senior management teams, including North American and global senior management teams of a major and very successful division. S AnnWelsh COMMUNICATIONS INC. CNmwkaliomlh 1Watheslim WateWV1 600073 A Proposal to the Town of Aurora February 11, 2004 • For many public sector organizations, developing performance indicators and success measurement criteria for strategic and business/operational plans. Ann has formal training in program evaluation and has conducted numerous program evaluations of government programs and services. • Provision of strategic planning and operational planning advice and support for the senior management team of a government funded program aimed at encouraging girls and young women to pursue work in trades and technology. • For a government central agency, designing and facilitating a strategic planning process that resulted in a 20% increase in resources. • Conceptualizing and providing creative direction for a "storyboard" for a Community Care Access Centre to assist it in communicating its strategic directions to its diverse, urban, multicultural community. The agency uses elements of the "storyboard" in other aspects of its internal and external communications. Facilitation Skills Ann has designed and facilitated many group and interpersonal process. This has included: • For an international corporation in a fast -changing sector, the design and facilitation of planning sessions to support a major corporate leadership development initiative. • For a Canadian firm in a fast changing sector, designing and facilitating team building sessions for inter -provincial, bilingual senior management teams to support corporate restructuring. • For non-profit, public and corporate sector teams in the health and other sectors, designing and facilitating numerous team building sessions for Boards, senior and middle management, administrative/clerical, clinical and non -clinical teams. • For the Cabinet Office of a provincial government, assisting with a review of its executive staffing policies and practices. Consulting activities included interviewing current and former Cabinet Office executives, senior government executives and Deputy Ministers. The Office used the findings to revise its executive human resources polices and practices. • For a provincial government department, conducting two consecutive annual program reviews of an assessment program for executive "feeder group" staff. Consulting activities included documentation review, moderating focus groups and conducting interviews with participants and their managers and making recommendations to the senior management team for building on and strengthening the program. (Almost all were accepted.) • For a large organization, conducting qualitative and quantitative research with management employees on proposed changes to compensation. AnnWelsh COMMUNICATIONS INC. Gommunkatlomllulnka lhesness aulolaOengE° C0 007 4 A Proposal to the Town of Aurora February 11, 2004 • For a large Canadian retailer, conducting focus groups with employees to assess the effectiveness of internal communications for an employee opinion survey. • For staff in a very senior government policy role, facilitating a process to launch a strategic organizational development initiative. • At the request of the CEO in a public sector agency, working with two senior executives to resolve conflicts that were getting in the way of the agency achieving its strategic goals. • For a major provincial professional association in the health sector, designing a highly successful problem solving session for members. • For a health sector agency, designing and a conducting a conflict resolution session for a volunteer task force. The task force had been unable to achieve its mandate to make recommendations for funding guidelines for a government -funded program and was at risk of being disbanded. By the conclusion of the one -day session, the task force resolved its internal conflicts and achieved its mandate.. • For an inter -provincial team in the telecommunications sector with a mandate for developing communications related to a major reorganization, developing and facilitating a process to resolve conflicts that were getting in the way of the team's achieving its mandate. At the team members' request, Ann continued to work with the team beyond the scope of the original assignment. • For the Board of a women's shelter, providing advice to assist the Board members in addressing conflicts between the Board and the agency's staff. (Ann was subsequently invited to join the Board). Working with Elected Officials • Ann has provided strategic planning, policy development, program evaluation/review and communications advice and services to Provincial Cabinet Ministers in all three parties. Her communications support to Ministers has included communication strategy, speech writing, issues management, media relations, verbal and print briefings, and stakeholder relations. • Ann also provided communications support for a successful municipal candidate (non -partisan). • Prior to establishing her consulting practice in 1990, she worked in the Ontario Public Service. As a public servant, she made many presentations and provided support to the members of Management Board of Cabinet and to other Cabinet Committees. • Ann understands and is comfortable working within public sector structures and decision -making processes. She appreciates the complexities that impact on government decision -making and the reality of the many "bottom lines" that governments, at all levels, must take into account. AnnWelsh COMMUNICATIONS INC. Comim�nealionsN¢ION¢Itrestr¢¢s oul al ¢Yung¢" 0000"i � 10 A Proposal to the Town of Aurora February 11, 2004 Familiarity with Municipal Government • Provision of communications support to a senior municipal official at the "old" City of Toronto (e.g., speeches, speech modules, communication plans, training and development materials) :- • Delivering training programs on marketing and communications to municipal employees working in the workplace diversity field. • Writing speeches for a former Minister of Municipal Affairs and Housing. • As a former Management Board Officer in the Ontario Public Service, Ann is familiar with municipal issues addressed by the Management Board Cabinet Ministers. Public Consultation Ann has designed and facilitated many consultation processes. This has included: • Designer and facilitator of all kinds of consultation processes to pilot test draft strategic plans, new programs, services and products for public and non-profit sector organizations and to obtain input to needs assessments and program evaluations/reviews. Methodologies have included focus groups, key informant interviews, large group interventions, public opinion polling, and surveys. • Designer and lead facilitator (three person facilitation team) for a two-day consultation with health care providers, educators, advocacy group representatives, referral sources, Canadian and U.S. ethicists, and municipal and provincial government representatives on Ethical Decision -Making in Community Health. In formal evaluations, several participants said the session was "the best meeting I ever attended". Ann designed and facilitated a follow-up one day session six months later that resulted in the development of Guidelines for Ethical Decision -Making in Community Health. These guidelines are now in place. • Designer and facilitator of a one -day consultation with cross-sectoral community representation (75 participants) to do priority setting for a provincial health program. • Co -facilitator of a series of public consultations in Ontario on federal government refugee and immigrant services. • Designing and moderating focus groups to pilot test on-line, paid subscription services for corporate clients. The findings were used to reposition marketing and pricing strategies, contributing to the achievement of key business goals. • Designer and facilitator of an external communications audit for a health sector agency that included public opinion polling, readership survey and focus groups. EAnnWelsh COMMUNICATIONS INC, (100076 CeM¶OOhAXINI Oke b SIFM oNol WN" 11 11 A Proposal to the Town of Aurora February 11, 2004 Communications • Developed and implemented strategic communications; media relations, stakeholder relations, employee communication plans, public affairs and public relations campaigns on a wide range of issues (e.g., new legislation, programs and services; major organizational change). • Research and writing of a Code of Conduct for a large research and teaching hospital in Toronto. • Provision of advice and services to Cabinet Ministers in three political parties and senior public servants. • Designed and delivered professional development programs in communications planning, media relations, program evaluation, project management, social marketing, and speech writing for non-profit, public and corporate sector clients. • Moderator, Mental Health Tune -Up 2002 Kick -Off, featuring guest speaker, the Honourable James K. Bartleman, Ontario's Lieutenant Governor; panel of experts; and, audience Q and A. • Conference speaker on marketing and communications topics. • Guest lecturer for communications planning studies (Ryerson, George Brown College). • Narration of a video produced for a medical research fund raising initiative. • Featured storyteller, CAMHfest 2003 (telling "Can You Catch It Like A Cold", a book produced by CAMH to assist children of parents with a mental illness). Prior to establishing her consulting practice in 1990, Ann established and directed the Marketing and Communications Branch at the former Ontario Human Resources Secretariat. This was a full service communications department, responsible for communications with 90,000 Ontario government employees and the public. Ann was the Secretariat's Chief Spokesperson with the media. Employee Consultation Design and facilitation of processes to obtain employee input to strategic plans, internal communications and a wide range of human resources, organizational development and change management initiatives in union and non -union environments in the public, non-profit and corporate sectors. Methodologies have included focus groups, large group/whole system change processes, interviews and surveys. AnnWelsh 12 COMMUNICATIONS INC. CwmmnicNionslhal lake lAe slrefsouloleAangea 000077 A Proposal to the Town of Aurora February 11,2004 5. Work Plan We would develop a detailed work plan using the following template: ate Activity , Responsibility Milestone: 'Deliverable In general terms, here is how we would see the "roll -out" of the strategic planning initiative: Date Activity -_._. . March 2004 Step 1: Project Start -Up Key Activities • Confirm project expectations, deliverables, budget, time line • Sign contract • Determine what "transparency" means • Determine scope of/methods for employee consultation and develop implementation strategy. Our experience in designing and facilitating strategic planning processes in unionized environments is that the union executive needs to be informed of the proposed process and involved in determining how unionized employees will participate in the process of giving input. • Determine scope of/methods for public consultation and develop implementation strategy. • Develop final work plan with dates, key activities, milestones, responsibilities. • Determine documentation and information required for Council and roles/responsibilities for providing/developing it (e.g., existing strategic plan, annual reports, economic development analysis and projections, etc.). • Develop and implement internal and external communication plan (the Town's excellent web site will be an important tool in communicating about the strategic plan). s AnnWelsh COMMUNICATIONS INC. Commmh0whal bke 00 stress am olehwe 000078 13 A Proposal to the Town of Aurora February 11,2004 2004 & May Step 2: Environmental Scan/Situational Analysis Key Activities Conduct information gathering for Council's `Environmental Scan" or "Situational Analysis" using two scanning models: — PESTI (Political climate and Legal environment, Economic conditions, Socio-cultural context, Technological environment, International environment); and, — SPOT (Strengths, Problems, Opportunities and Threats) analyses. We would work with Council and its staff to identify and prepare concise background material to support Council in its strategic planning discussions. Begin internal consultation. — As part of this information gathering process, we would propose to conduct one-on-one interviews with the Mayor, each Council Member, and the CAO and a focus group with the Directors of Building Administration, Corporate Services, Leisure Services, Planning, Public Works, and Treasury; and the Economic Development Officer. The purpose of these interviews would be to identify priority issues, challenges and opportunities. We would summarize the results of these interviews for Council. Design and facilitation of Environmental/Situational Analysis session for Council. Summary of findings for Council. Step 3: Visioning Key Activities Design and facilitation of Council's session(s) to develop draft vision, values, mission and strategic directions/goals statements (we anticipate that this will require more than one session). "Fine tune" drafts. Continue employee consultation strategy. Two possible options would be: — "Town Hall Meeting(s)" with a formal agenda where Council, AnnWelsh COMMUNICATIONS INC. GanmunkAlms IHI lake the slr¢ss al of ¢urge 00,0079 14 A Proposal to the Town of Aurora February 11,2004 Date Activity _. . senior staff or your strategic planning facilitator present draft material and seek input to a series of specific questions; or, — Directors organize discussions with their staff at the departmental level. — We would assist you in planning the agendas for any meetings with employees on the strategic plan, consistent with the communications strategy that we develop. • Summarize employee input. • Conduct public consultation, based on agreed upon strategy. (Options for getting public input might include a "Town Hall" meeting, special Town of Aurora web site link, "storyboards" visually conveying the strategic statements and displaying these in the Town Hall foyer with "comments' boxes, focus groups with selected community leaders) • Summarize public consultation input. • Council finalizes vision, values, mission, strategic directions/goals statements and identifies key performance indicators. • Continue implementation of internal and external communication strategy. May 2004 Step 4: Business/Operational Planning Design and facilitation of draft business/operational plan to achieve the strategic directions/goals. • Continue implementation of agreed upon public and employee consultation. • Continue implementation of internal and external communication strategy. June 2 004 • Council finalizes strategic plan. • CAO initiates implementation at the staff level. AnnWelsh COMMUNICATIONS INC. Cammunbalbns Idal lak Ne simss atl d [M1arp¢" 000080 15 A Proposal to the Town of Aurora February 11,2004 6. Deliverables Design and facilitation of a strategic planning process with the following components: • Vision • Mission • Values • Strategic Directions/Goals and Performance Indicators • Multi -year Business/Operational Plan (macro level) and Performance Indicators • Employee and Public Consultation Component We would, of course, want to have further discussions with Council about the specific deliverables it requires. For costing purposes, we have identified the following potential deliverables. • Final work plan. • Documentation review, summary and analysis. • Conduct 10 interviews (Mayor, other Council Members and CAO). • Conduct focus group with six Directors and Economic Development Officer. • Design, prepare for and facilitate sessions with Council to conduct environmental scan/situational analysis; develop draft and final vision, mission, values statements; and business/operational plan (Estimate facilitating equivalent of four to six one -day strategic planning sessions with Council). • Summarize results of each strategic planning session. • Develop internal and external communication strategy. • Design and facilitate one half -day public "Town Hall" meeting. • Design and facilitate two employee "Town Hall" meetings (approximately two hours each). • Write/edit strategic planning document. • Provide one hard copy and disc copy. s AnnWelsh COMMUNICATIONS INC, Canmuniealims lhai lake @¢ sveu ail of eM1ange a [G A Proposal to the Town of Aurora February 11,2004 7. Budget Once we know the specific deliverables; we would provide you with a firm, fixed cost price. per We estimate that to provide the above deliverables would require 23 to 30 consulting days ($34,500 to $45,000) and approximately $300 for administrative services. We would, of course, provide you with an itemized billing of days/hours and purpose. All of the above costs are subject to applicable taxes. All out of pocket costs would be itemized and billed to you at cost including but not limited to travel billed at Town of Aurora rates, photocopying, and courier fees. Exclusions The above costs due not include: Administration and Logistics for Public and Employee Consultations We are assuming that the Town of Aurora would handle logistics for employee and public consultations. In our experience, this is the most cost-effective approach. If you would like us to handle this aspect of the work, we would be happy to provide you with a cost estimate. Writing/Editing Materials for the Communication Strategy We are assuming your staff will do this work. Again, we can provide writing/editing support, if required. 09 AnnWelsh COMMUNICATIONS INC. cammueia0omlhal lake the AM$ nul al change e 000082 17 A Proposal to the Town of Aurora February 11,2004 8. What We Offer A mature, seasoned facilitator and communication consultant with; — Extensive experience and a solid track record in providing facilitation, consultation, and communications advice and services to organizations in the government, public, non-profit, and corporate sectors. — Experience in working with elected officials. Familiarity with public sector, including municipal government. — Experience and training in a variety of strategic planning approaches. A commitment to quality service to you, our client. Thank you for the opportunity to provide you with a proposal. 0S � AnnWelsh 18 COMMUNICATIONS INC. Communkalions IAaI lake Ike sV¢se wl of danger 00.0083 A Proposal to the Town of Aurora February 11, 2004 Appendix 1 Resume: Ann Welsh Ann Welsh has more than three decades of experience as an external and internal consultant, communicator, facilitator and designer of participatory processes. She is a specialist in group and interpersonal communications. Her consulting practice, which she established in 1990, is dedicated to helping organizations and communities make and communicate wise decisions that are good for business and good for people. Ann has both a professional and personal commitment to helping organizations and individuals to work with a greater sense of purpose, community and enjoyment. She has a practical appreciation of the realities of organizational life, the barriers that get in the way of change, and a commitment to helping people achieve their goals. Ann specializes in change management facilitation and communications. She has undertaken consulting assignments in many aspects of organizational and social change, helping clients to achieve and sustain change at the individual, organizational, and community level. Her clients include corporations, government departments, not -for - profit organizations and professional associations. Ann has special expertise and advanced training in leading edge change management facilitation, communication and team development techniques that promote "big picture" thinking, participation, ownership and decision -making. This includes an advanced educational program in group relations jointly sponsored by the Tavistock Institute of Human Relations and the Tavistock Clinic, London, England. She is a trained focus group moderator (The Burke Institute, now A.C. Neilsen Burke Institute, Cincinnati, Ohio) and a Certified Team Building Facilitator (Drexler-Sibbet Team Performance'rM System). Prior to establishing her consulting practice, Ann established and directed a corporate communications function that was responsible for communications with 90,000 employees, the public and the media. She also has "hands on" experience in strategic planning, policy development, human resources, program evaluation and program review. Ann is active in the community. She has served on several not -profit Boards and as a fund-raiser and trainer of volunteers in the area of health research. She currently sits on the Board of her faith community and Chairs its Communications Committee. She is a News Reader with VoicePrint Canada, the National Broadcast Reading Service for the blind and others who are unable to access print. As a volunteer, Ann has worked with many not -for -profit organizations and charitable institutions, helping them to strengthen their strategic planning, program evaluation, and communications capabilities. ES � AnnWelsh COMMUNICATIONS INC. Cammunkaliom IAaI lake llce stress oul a/flange^ 19 A Proposal to the Town of Aurora February 11, 2004 Appendix 2 References Ms Ruth Rappini Adjunct Professor, Queen's University (formerly senior executive with Empire Financial, Norte] Networks, Bell Canada) 613.530.2552 Ms Camille Orridge Executive Director Toronto Community Care Access Centre 416.506.9888 Mr. Tony McEvenue Director, Community Support Services, Canadian Mental Health Association - Peel 905.451.1718 Ext. 312 Ms Wendy Nailer Former Chair, East York Community Care Access Centre 416.535.8501 Ext. 6897 AnnWelsh COMMUNICATIONS INC. CommuniwliwslAal laMe Nsdress aul of [range Ms Marysia Chmiel Director, Corporate Services Cabinet Office Government of Ontario 416.325.4745 Mr. Peter Coleridge Vice -President Communications, Education & Community Health Centre for Addiction and Mental Health 416.595.6650. Ms Rachele Dabraio Director, Ontario Honours & Awards Secretariat 416.314.7523 600085 20 OukaTme" ade PFFmneeEetibeFea WepkN a.[[a Town of Aurora Strategic Plan A Proposal a r February 11, 2004 ANAUEMENT Ct NSULTANT8 INC. February 11, 2004 Mr. Larry Allison Chief Administrative Officer Town of Aurora P.O. Box 1000 100 John West Way Aurora, Ontario L4G 6J1 Dear Larry: Re: Town of Aurora: Strategic Plan Following our conversation last week, I am preparing this brief letter of proposal for The Randolph Group to provide consulting assistance to the Town of Aurora in the review and renewal of its strategic plan. It is based on our discussion, a review of the materials provided to Council at the January 10th Offsite Workshop, our general knowledge of strategic planning for municipalities, and specific experience as the consultants involved in the development of the Town's first strategic plan, Aurora's Way Ahead, approved by Council in 1993. The proposal is divided into four main sections: u Our Firm's Experience and Relevant Qualifications, in working for municipalities, specifically in the area of strategic planning u Understanding of Your Needs, with respect to the Town's interest in undertaking a strategic plan u Proposed Approach, including a strategic planning framework and a three- phase work program u Staffing, Timing and Budget, including a brief description of the consultants proposed for the project, a timeframe for completing the project by the end of June and a budget for the work. I I I King Street East, 3rd Floor, Toronto, Ontario, Canada M5C 1G6 Telephone: (416) 368-7402 Facsimile: (41FI o" nOF a m^''- r"� ^"^randolph.on.ca n l' C08 6 Mr. Larry Allison February 11, 2004 Page 2 A list of client references for you to contact is attached to this letter of proposal. We have chosen clients who have similar requirements to Aurora and projects that have involved the development of completestrategicplans including community consultation. Please call them to ask about our work and their satisfaction with it. A firm profile, resumes and an article on strategic planning based on our municipal experience are also included for your information. EXPERIENCE AND RELEVANT QUALIFICATIONS The Randolph Group is a general management consulting firm with a unique focus on municipalities. The three partners of the firm work in the areas of strategy, organization and operations. We have worked for upwards of 60 municipalities within the past five years assisting Councils and senior staff. There are four main reasons why we feel well qualified for this assignment: u Understanding of municipalities and the issues they face. Municipalities today are involved in managing increasingly large and complex organizations. Provincial realignment of services, or "downloading", has increased the municipal responsibility for the planning, delivery and funding of services. Citizens are demanding the same or improved services for the same or less tax dollars. Municipalities like Aurora are facing the competing pressures of growth and maintaining a community and quality of life that existing residents value. These issues require municipalities to discuss their future directions and priorities and to involve a wide variety of interest groups as part of these discussions. u Extensive experience with municipal strategic planning. Principals of The Randolph Group have been involved in approximately 40 municipal strategic planning projects over the past ten years. Not surprisingly, these projects embrace a variety of municipal situations and methods of community consultation. The following municipalities have hired us assist them with strategic planning: • Durham Region • Halton Region • Ottawa -Carleton Region • Peel Region (4) • York Region • City of Burlington (3) • City of Cambridge • City of Guelph • City of Moncton • City of Nepean 0008 1f Mr. Larry Allison February 11, 2004 Page 3 • County of Lanark • County of Simcoe • Lambton County • Middlesex County (2) • Peterborough County • United Counties of Prescott and Russell • Grey County • Elgin County Municipality of Chatham -Kent • City of Quinte West • City of Windsor • Town of Aurora • Town of New Tecumseth (2) • Town of Richmond Hill • Town of Walden • Town of Whitby • Town of Blind River • Township of Wilmot • King Township u Specific knowledge of the Town of Aurora. In 1992/93 we assisted the Town with the development of its first strategic plan. Since then, we have been involved in organizational reviews for Leisure Services, Fire and Emergency Services and most recently the Town's development planning functions. We have also assisted Aurora Hydro in a strategic visioning exercise. Through these projects we have become familiar with the Town's operations and the issues being addressed by Council and staff. u Reputation for implementation and moving forward. Finally, all of our strategic planning projects have been adopted by our municipal clients. In Aurora's case, the original plan, Aurora's Way Ahead, was reviewed in 1995, 1998 and again in 2001 as each new Council established its directions and priorities for its term of office. As such, these strategic plans have provided an over -arching vision/mission, objectives and strategic directions to guide the work of municipal departments and staff. In certain cases, these plans have also provided a framework for the community and specific municipal partners to outline their actions in support of the vision/mission and objectives. UNDERSTANDING YOUR NEEDS The Town of Aurora has a population of approximately 42,000 and is one of nine municipalities located within the Region of York. It is governed by a nine member Council consisting of a Mayor, and eight Councillors elected by ward. The municipality provides a comprehensive range of municipal services and is administered by seven departments under the direction of a Chief Administrative Officer. THE 60i� t % + Mr. Larry Allison February 11, 2004 Page 4 As mentioned earlier, the Town first adopted a strategic plan in 1993. It was designed to act as a guide for the municipality's growth and future direction. It is comprised of a mission statement and six general goals as shown in Figure 1. Each goal is supported by a series of high level strategies which in turn are supported by more detailed actions and initiatives. Figure 1 Aurora's Way Ahead Town of Aurora Strategic Plan (2001) Mission Statement and Supporting Goals "Aurora is a Town which we are proud to call home. We are committed to providing our citizens with Business, Employment, Housing and Leisure opportunities in a community which values the following goals: Maintain a well managed and fiscally responsible municipality 2. Supporting a healthy business environment that attracts new business and is responsive to the needs of our present business community 3. Continuing controlled, well planned growth 4. Conserving our natural and cultural heritage. 5. Promoting open, accountable, transparent and accessible municipal government 6. Encouraging, supporting and recognizing volunteer involvement in community activities and special events" In January, 2004 the newly elected Council participated in an offsite workshop which included a discussion of the elements of strategic planning. The discussion suggested that it was appropriate to engage in a complete review of the strategic plan instead of simply revisiting the existing plan and updating it. The review should include consultation with the community and be led by Council. r� 60 `, Mr. Larry Allison February 11, 2004 Page 5 Now, more than ever before, there are compelling reasons for the Town of Aurora to develop a new strategic plan. u Developing a collective vision. In a time of growing demands and scarce resources it is important to marshal the resources of a community behind a common vision. In this way the collective investment in the community can be maximized. u Planning for the future. The Town's future will involve change — change in its population, its economy and the services to be provided. The strategic planning process should identify the internal and external forces which will influence the municipality. This exercise will provide the information needed to make rational, informed decisions on the strategic issues facing the Town in the future and the alternatives for dealing with them. u Maximizing resources. As a management process, strategic planning provides a mechanism for deploying resources in an effective manner. Through the identification of a vision/mission and goals, Aurora's strategic planning process will allow the community to identify key strategic issues, and Council to set a direction and staff to develop actions. u Establishing a framework for other plans. The strategic plan functions as an umbrella document. It coordinates and provides direction to the specific Town initiatives and the work of the various departments. u Entering into effective partnerships. As issues continue to increase in complexity and blend in terms of jurisdictional responsibility, and as resources continue to shrink, municipalities will need to increase their efforts at working with others to provide needed services. Aurora's strategic plan will provide the basis for building future partnerships. u Communicating the Town's priorities. Finally, strategic planning provides important communication benefits. The strategic plan will provide information on the Town's vision and mission, the strategic issues it faces and the actions underway or planned to address these issues. This type of information establishes a proactive position for the Town and communicates its directions to everyone involved with the Town — Councillors, staff, residents, businesses, interest groups, and other governments. / i 00 f , Mr. Larry Allison February 11, 2004 Page 6 The development of a new strategic plan does not mean that all elements of the current plan will be discarded. Rather, it will include consultation with the community and staff as well as with elected officials to ensure that the vision/mission and goals continue to serve the needs of the broad community and current realties. The Town has agreed that the strategic plan update should be undertaken using the services of an outside consultant/facilitator. PROPOSED WORKPROGRAM Based on this understanding of your needs, our experience with strategic planning generally and with the Town of Aurora in particular, we are suggesting a three-phase work program using the following strategic planning framework. A Suggested Strategic Planning Process for Aurora ':'Dnvelo� Building Consensus- IN Focusing on What Really Matters Creative, Tough Thinking /.. - Figuring out Whal Needs to be Done Building Commitment -Seeking approval and / buy -in / Seeking Approvals \ and -Buy -in 000092 t. Knowing Where You Stand 2. Determining Where You(k Going g. Getting There Mr. Larry Allison February 11, 2004 Page 7 The phases and tasks are described below. Phase 1: Knowing Where We Stand The first part of the work involves five activities to be completed during February and March. It includes establishing the framework for developing the strategic plan and the environmental scan that will inform the development of the draft vision, mission and goals. 1.1 Finalize the proposal and work program. As a first step, we will meet with you and others selected to oversee the project, to review the proposal, work plan and agree on the project deliverables. At this meeting, it will be important to agree on the respective roles and responsibilities of the consultant/facilitator, staff, members of Council and others involved in the project. We will discuss the communications strategy for the work and the approach for consultation with staff, the public, community interest groups and others. 1.2 Develop communications materials. We will prepare an announcement of the strategic plan initiated by Council for you to advertise and distribute appropriately. As well, we will prepare notices for open houses or other forums scheduled for Phase 2 to allow various individuals and groups to express their views. In previous assignments, we have enjoyed success in developing a group of community leaders to work with their respective sectors of interest and to comment on the strategic plan at key stages. This approach may be of interest to the Town of Aurora. Finally, it will be important to develop mechanisms for Town staff to know about the strategic plan project and how they can provide input. 1.3 Review relevant background materials. It will be important to obtain all previous strategic plans as well as reports and information that might be useful in understanding the current situation and as support to the development of a new strategic plan for the Town of Aurora. Other information relating to the programs and services provided by the Town will be used as input into the development of background report. A key part of the review will be working with staff to report on the accomplishments of the 2001 strategic plan. 1.4 Conduct key interviews. A major part of the Phase 1 work will involve interviews with members of Council and Department Heads. The purpose of these discussions is to understand individual expectations of the strategic 1?4NDOLPH Mr. Larry Allison February 11, 2004 Page 8 planning process, their views on the current situation and the vision they have for the future of the community of Aurora. These interviews will follow a discussion guide distributed in advance of.the. meeting and will also probe for the strengths, weaknesses, opportunities and threats facing Aurora. 1.5 Hold a working session with Council and Town management. The results of the first four activities will be used to structure a strategic planning discussion with members of Council and Department Heads. Topics to be discussed include: • Background report including the accomplishments of the 2001 strategic plan • Discussing the strengths, weaknesses, opportunities and threats facing the Town of Aurora • Identifying the trends and key strategic issues facing the municipality • Developing a draft vision, mission and goals to use in the Phase 2 consultation sessions At this session, the group will also be asked to advise on the format and agendas for the Phase 2 consultation with staff, community organizations and the public. Phase 2: Determining Where We're Going The second phase of work involves five activities to be completed in April and May. This phase involves extensive consultation and the drafting of a strategic plan. 2.1 Develop a draft vision, mission and goals. The Phase 1 work and session with Council/Town management will result in a brief report documenting the services provided by the Town, the assessment of trends and key strategic issues to be addressed and a draft vision, mission and goals for review. 2.2 Conduct workshops. This consultation will be refined at the startup meeting. However, at this preliminary stage,we recommend consultation with the following groups, at a minimum: • Town staff involved in the programs and services provided by the Town • Community organizations who work with the Town in providing services and representing the views of groups interested in the work of the Town (e.g. arts, culture and heritage, education, health care, sports and recreation, youth, seniors, religious groups, business organizations, etc.) • Members of the public THE C�a ��4 A.1VDOLPH ._........_._. _.- ....._ �.._..._ U ..__ Mr. Larry Allison February 11, 2004 Page 9 Again, past experience has shown that some combination of electronic information and face-to-face meetings works best. The overall goal is to ensure that anyone interested in the Town of Aurora knows about and has an opportunity to input into the strategic plan. The sessions will be designed to seek feedback on the draft vision, mission and goals, as well as suggestions for high level strategic actions. 2.3 Develop actions and desired end results. All of the information from the consultation sessions will be used to draft end results and strategic actions to support the draft vision, mission and goals. These end results and actions will be high level and will reflect the community's views on what is important for the future. In addition, comments on the draft vision, mission and goals will be reviewed. 2.4 Hold a review session with Council and Town management. At this stage of the work, it will be important to meet with members of Council and Department Heads to review all of these draft materials following the consultation and prior to the development of a draft strategic plan. The discussion will involve reviewing both the desired future direction and the ability of the Town to implement the suggestions raised during the consultation process. The materials discussed will include all of the elements to be included in the draft strategic plan. 2.5 Develop a draft strategic plan. Following the Council/Town management session, we will develop a draft strategic plan. It will combine elements of the Phase 1 work including the vision, mission, and goals. As well there will be a section on actions and desired end results suggesting how the strategic plan will be monitored. Phase 3: Getting There 3.1 Circulate the draft strategic plan for comment. Once the draft strategic plan has been prepared, it will be available electronically and circulated to all those involved in the consultation process. Individuals will be invited to make comments and provided with an easy -to -use feedback form to encourage participation. 3.2 Revise the strategic plan based on comments. The comments received from members of Council and the Department Heads, staff, community organizations THE 1?4NDOLPH , Mr. Larry Allison February 11, 2004 Page 10 and the public will be summarized and recommendations for changes will be made if appropriate. 3.3 Hold a working session with Council and Town management. Members of Council and Department Heads will meet to review the comments provided through the feedback and agree on the changes to be made to finalize the strategic plan. They will also discuss the communication of the strategic plan and implementation mechanisms. 3.4 Finalize the strategic plan for Council approval. The strategic plan will be presented to Council for approval. The approval will include an implementation strategy to set the framework for ensuring that the actions identified in the plan are reflected in the work of the Town's departments. 3.5 Assist with implementation. Although specifically part of the work program, we are available to provide advice and guidance to Town management in terms of establishing the implementation mechanisms and performance measures. STAFFING, TIMING AND BUDGET The proposed timeframe for completing the project is shown in Figure 2. Assuming a February start-up, the strategic plan is scheduled for completion in June. Figure 2 also shows regular meetings with Council and Department Heads during each of the three phases of work. Of course, the timing can be adjusted if needed to better suit the Town's schedule of activities. Strategic planning work requires the experience of senior professionals who have a proven track record of working on high profile, public processes and who can deliver clear, concise materials on time and within budget. Overall project responsibility will rest with Carolyn Kearns. If required, she will be assisted by either Susan Wright or Michael Rowland. All consultants are partners of The Randolph Group and they have worked together for over 15 years designing and implementing strategic planning processes. Carolyn, Susan and Michael have worked on previous projects in Aurora. THE 0000,96 1?" + Mr. Larry Allison February 11, 2004 Page 11 Figure 2 Town of Aurora: Strategic Plan Proposed Work Program Timing Phases and Tasks. - Feb .Mai: Apr May Jun` Phase 1: Knowing Where We Stand (February/March) 1.1 Finalize the proposal and work program 1.2 Develop communications materials 1.3 Review relevant background materials 1.4 Conduct key interviews 1.5 Hold a working session with Council and Town management Phase 2: Determining Where WeOe Going (April/May) 2.1 Develop a draft vision, mission and goals 2.2 Conduct workshops 2.3 Develop actions and desired end results 2.4 Hold a review session with Council and Town management 2.5 Develop a draft strategic plan Phase 3: Getting There (May/June) 3.1 Circulate the draft strategic plan for comment 3.2 Revise the strategic plan based on comments 3.3 Hold a working session with Council and Town management 3.4 Finalize the strategic plan for Council approval e 3.5 Assist with implementation ® Submission of report materials ® Client meetings THE 1?4NDOLPH 000097 Mr. Larry Allison February 11, 2004 Page 12 Carolyn Kearns has spent over 25 years consulting to a broad range of public sector and not -for -profit sector clients. A large part of Carolyn's work involves issues management, facilitation and consensus building. She understands municipalities, and is committed to working with a diverse set of client interests in wrestling through issues, reaching agreement and developing strategies for implementing the results. She has been involved in almost all of the firm's municipal strategic planning assignments, and has worked with a wide range of processes and products. As mentioned earlier, she was the consultant who worked with the Town on the development of its first strategic plan, Aurora's Way Ahead. Susan Wright has led numerous strategic planning projects for municipalities and special purpose bodies. Susan has a particular interest in developing effective consultation strategies and has worked with a variety of approaches in recent client assignments. She has worked most recently in Aurora for the Aurora Public Library. Carolyn and Susan both worked on Vision 2026, the Region of York's community visioning exercise which involved public meetings in all municipalities. Susan met with citizens and elected officials in the Town of Aurora as part of this work. Michael Rowland was involved in a review of the Leisure Services Department for the Town of Aurora. He is currently assisting the City of Burlington with its sixth strategic plan and was responsible for the development of a strategic plan for the City of Quinte West. Michael has considerable experience in the design of questionnaires and surveys. Resumes for all consultants are provided in the appendix to this proposal. In addition, we strongly recommend that the Town assign a Project Manger to act as the liaison between the consultants, the CAO and Department Heads, other staff and the community. Past experience has shown that such an individual adds to the value of the work and is able to effectively transfer knowledge about the Town to the consultant and about the strategic planning process to Town staff. Ideally, the individual is viewed as a strategic thinker who is credible with his/her peers and has experience working with Council and the community. This is not a full time commitment and should be viewed as an excellent development opportunity. We are not proposing a specific budget at this stage, as it will depend on finalizing the work program including the role of the consultant/facilitator relative to staff and the amount of consultation to be undertaken. However, our experience suggests a budget Mr. Larry Allison February 11, 2004 Page 13 range of $40,000 to $50,000 (exclusive of G.S.T.) depending on the above factors. Again, a detailed budget will be prepared once there is an agreed upon work program. On behalf of The Randolph Group, I am pleased to submit this letter of proposal. Please call if you have any questions about the suggested approach, our relevant strategic planning experience or our interest in continuing to work for the Town of Aurora. Respectfully submitted, THE RANDOLPH GROUP Carolyn Kearns Partner rarH �a R 0 U F i 3 a t 3 A r� 0 IL CL 3 100 cooloD z 0 z w a cc C" _ cc �� = :3 'p O C c) '� a � c C.)as .& w � cts F Y cts CO) U) � i C Q. N 0 i O Cs i G _ 'cc %O c = O t cc O _ CL E N r N '� E •Q c tm -0 O_ 0) V cc = d .. U) cC C . cc N O C.) O Cl) iz 000101 N Im c O ^E^ wi W O H CL 0001.02 c �0 V i d OW cn U m 7m 13 V k - i O d t O O � i O = a� = .E O cc .O .o-.. O N E O cc 0 N Q. .� .' E 7 � O C� O N ,' O i N s. O N d � O � m V 0 0001.03 j U 0 a V 31 A V AW W Z .L V L 1.1. m O Q 0 FM N y.r C C. 0 O O �cn (0) CD� a.+ a. 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VI ° E L O VI w y N° 4J N "O N ._ y y Qi s m N bA N m T o C Ci m m i0 C u m m ._ 'c c` m ._ O O y bl tl W 1/� Qi Z a N Z m> z o _ z c m a'o z° w 'h i 'L °u c i E- v .Y o E'c Ql r� o c o o n L o u c E o v o o W N •- W o- m w W W 'o W .c oui c a W r Q 3 w o •o cJ a w w 3 m a 3 ry o o. I- J 'o y a m a 3 w W 0 u E L Y N E 'AGENDA ITEM # oZ TOWN OF AURORA GENERAL COMMITTEE REPORT No. ADM04-004- SUBJECT: Amalgamation Assessment — Aurora and Newmarket Hydro Corporations FROM: Administration Department DATE: March 2, 2004 RECOMMENDATIONS THAT the attached Report from Navigant Consulting Ltd. Dated January 2004 be received and, THAT based on the preliminary analysis undertaken, the management of Aurora Hydro together with the management of Newmarket Hydro proceed with the next phase of the work program and undertake, with the assistance of Navigant Consulting, a detailed financial assessment of the benefits of consolidating Aurora and Newmarket Hydro, identifying conditions precedent to a merger and/or items requiring special attention in a shareholders declaration and; THAT Council charge the charge the responsibility for making recommendations on the next phase of the analysis to the Town staff/hydro staff/financial and external legal counsel with input from the current Hydro Board of Directors. BACKGROUND In 1998, the provincial government passed Bill 35, the Energy Competition Act, to restructure Ontario's electricity system and to introduce competition. Municipal Electric Utilities were required to incorporate under the Ontario Business Corporations Act (OBCA) by November 7, 2000 and were required to be licensed as electricity distributors by the Ontario Energy Board. In recognition of the requirements in the Energy Competition Act, the Town of Aurora, on October 3`d 2000 passed By-law 4220-OOL, that transferred substantially all of the assets 00,0114 March 2. 2004 - 2 - Report No. ADM04-004 and liabilities of the Aurora Hydro -Electric Commission to two newly created corporations, Aurora Hydro Connections Limited and Borealis Hydro Electric Holdings Inc. The Town retained ownership of the hydro office building located on Industrial Parkway South. In order to preserve the value of the assets of the corporation, the Shareholders Declaration states that the Shareholder expects that the Board of Directors of the Corporation(s) will establish policies to earn up to the maximum rate of return to the regulated distribution business to the extent permitted by the Ontario Energy Board, or in other words, to be for - profit business. Starting in 1999 the Town also actively pursued merger of York Region Hydro Utilities including Newmarket, Markham, Richmond Hill and Vaughan. At the time of the enacting of the new legislation a transfer tax holiday was created by the Province as it was encouraging the many small independent utilities to consolidate in orderto assist in viability in the new market place. Ultimately the (Unipower) municipal utility mergerthat was agreed upon by all parties failed to be consummated on the day it was to occur as late breaking issues with the City of Vaughan could not be satisfactorily resolved. In 2001 Council endorsed further work on a smaller proposed merger between Aurora, Newmarket and Markham. The mechanics to implement that consolidation were contingent upon eitherthe grand -fathering of the new merger within the scope of the previous Unipower initiative as the tax holiday was now closed by the Province or the extension of the provincial window of opportunity by Regulation. Neither was forthcoming at the time and work to implement the "MAN" merger ceased. Aurora created its own Board of Directors in mid 2002 and commenced the operation of the utility as a stand alone entity. On November 25, 2002, The Electricity Pricing, Conservation and Supply Act, 2002 (Bill 210) was introduced by the Province of Ontario. Bill 210 required the shareholder municipal Councils to pass a resolution to confirm their original decision to commercialize their respective local electricity distribution company (LDC) . Council passed the requisite resolution last spring and confirmed its intent with respect to the operation of the utility in a manner consistent with the Shareholders Declaration currently in place. A Regulation was subsequently enacted by the Province in July 2003 reopening the transfer tax holiday for a two year period expiring in March 2005. In August, Council endorsed a memorandum provided by the Mayor that suggested that staff reopen the issue of a potential merger of the utilities with previous participants and report back to Council in that regard. It was determined early in the process that there wasn't the same level of interest or viability of pursuing the initiative with Markham as there was in 2000/01 thus efforts were concentrated on the substantially less complex task of a consolidation of the Aurora and Newmarket entities. The Town of Markham has very recently confirmed publicly their intention to merge their utility with the City of Vaughan. A copy of the press release 0001,15 March 2, 2004 - 3 - Report No. ADM04-004 issued is attached. Discussions taking place in the fall at a staff level determined that there were sufficient synergies, commonalities and relative compatibility in terms of overall scope of operations that more detail was warranted. As a result the two utilities jointly engaged Navigant Consulting to undertake the attached preliminary review. The report is prepared at a high level and verifies the staff conclusions that there is merit in more detailed examination of the proposed merger. COMMENTS Benefits of Amalgamation As summarized by the consultant, the benefits of further examining the benefits of amalgamation as compared to continuing to stand alone include: • a low risk opportunity to enhance operating flexibility that should lead to lowercosts, improved service levels and better reliability • lower overall rates than would be the case in stand alone option • other future strategic options not precluded • value preservation and potential enhancement through efficiencies Risks of Maintaining the Status Quo flexibility to respond to cost, performance and competitive pressures is limited and long term value may be compromised. OPTIONS Council as the sole shareholder is charged with the responsibility of ensure the long term viability of a $26 million asset that provides core services to the ratepayers in Aurora. In its oversight role it has created an operating structure, appointed an independent Board of Directors and endorsed a Shareholders Declaration that establishes the operating parameters for the utility. The regime in which the utility operates has been fluid for some period of time. The analysis undertaken in accordance with Council's pervious direction indicates that there is merit in further examining a merger of the utilities. Proceeding to the next stage is discretionary however staff point out that the window provided by the current legislation is limited and approximately 12 months remain to complete a series of significant steps if the decision is made to move forward. Maintaining the current corporate 00.01.16 March 2, 2004 - 4 - Report No. ADM04-004 configuration remains an option. The consultant has pointed out that external pressures will likely continue to mount as the regime in which the utility operates continues to become more complex and regulated. CONCLUSIONS Staff recommends that the Town affirm its commitment to examine in more detail the merits of the merger of the Aurora and Newmarket utilities. Financial analysis undertaken in both the Unipower and MAN mergers indicated there were long-term benefits to Aurora participating in those initiatives. This next phase of review of the merger would confirm the degree to which there are benefits of a two party merger; identify any special circumstances to be addressed as part of the analysis and propose a governance (Board of Directors) structure for the new utility. While staff are proposing forthe sake of efficiency the utilities jointly undertake the financial component of the analysis , the very specialized nature of the hydro regime necessitates that external legal counsel be ultimately need to be retained to assist and advise Aurora in the third and final phase of the examination. Newmarket would likely retain their own expertise in this field to provide independent advice to their council. The Hydro Board of Directors at their meeting held in February has endorsed the further review of the merger as being in the best interest of the utility. A copy of the correspondence confirming their support is appended. FINANCIAL IMPLICATIONS As part of the next phase of the work Navigant would need to analyse the relative financial position of Aurora Hydro in the current market conditions as a stand alone utility and compare the financial opportunities and threats it would have in a consolidated status. Similarly the same firm would provide a similar service for Newmarket, assessing their gains and risks with a merger. This data would to a large extent influence the parameters of a new draft share holders agreement that would deal with issues related to distribution of returns, allocation of assets and protections for each utility should a merger proceed. In order to accomplish the foregoing asset and other detailed financial information that was prepared as part of the Unipower and MAN mergers would have to be updated to reflect current values and adjustments based on recent pronouncements by the OEB. 00,01i.1'7 March 2, 2004 - 5 - Report No. ADM04-004 LINK TO STRATEGIC PLAN This Report references GOAL 'A' — MAINTAINING A WELL MANAGED AND FISCALLY RESPONSIBLE MUNICIPALITY. One of the objectives of this goal is to reduce operating costs by setting priorities. Council set the objective of reviewing its current and projected near future capital assets and holdings by determining the cost for maintaining these assets and the ability of the Town to finance the conservation of assets to ensure the financial viability of municipal operations is not jeopardized. ATTACHMENTS - memorandum from Mayor Jones August 2003 - Report from Navigant Consulting Ltd. January 2004 - MarkhamNaughan Press Release February 2004 - Letter from Hydro Board of Directors February 2004 PRE-SUBI ,JIISSION REVIEW Team — February 25th, 2004 L�Ivrence Allison Chief Administrative Officer 0001.18 ATTACHMENT-1 Memo To: Members of Council From: Mayor Tim Jones Date: August 14th, 2003 Re: New Hydro Transfer Tax Exemption Regulation v C�(l .;a hied AGE -� As Members of Council are well aware, the Provincial government had in connection with the multitude of dramatic changes imposed upon local hydro utilities, instituted a temporary exemption from transfer tax to facilitate their desire to see sales, mergers and other consolidations of the previously public hydro utilities. That exemption window opportunity was utilized during the previous term of Council to actively support and participate in the work leading to the failed Unipower consolidation of a number of York Region utilities and the subsequent additional discussions related to the potential for a smaller consolidation between the Markham, Newmarket and Aurora Hydro corporations. Analysis previously undertaken by independent third parties demonstrated financial and service advantages to the creation of a larger entity that would be better able to compete in an environment that was becoming increasingly complex and competitive. With respect to the latter initiative, the Minister declined our joint request to retroactively grant the transfer tax holiday exemption requesL As a result, the three remaining municipalities have proceeded independently to create their stand-alone corporations. They appointed business based Boards of Directors and proceeded to distribute the commodity. Markham's Energy Corporation has also embarked on a number of other initiatives beyond those of a distribution firm. As noted in the attached communication from AMO, the re -imposition of the transfer tax holiday announced by the Province in the spring has very recently come to fruition. It provides for a similar exemption to that which previously existed for those municipal electricity assets transferred to certain municipal corporations, another LDC, Ontario Power Generation or Hydro One, between March 2003 and March 2005. In that Council is the sole shareholder of our utility and there were efficiencies associated with consolidation previously identified, I would request that Council sanction a request that we renew our dialog with Markham and Newmarket to determine I there is interest in taking advantage of the tax holiday. If one or more of the municipalities express interest, a working group of senior staff from the Town and the President of Aurora Hydro could be reestablished to pursue the initiative. The objective would be to review previous analysis and engage any needed expertise to update or review the existing background work this fall and allow the incoming Council an opportunity to debate the matter in the early spring. From experience we know the implementation process might take some time and all the approvals are necessary prior to March 2005. of the above is requested. Mayor Tim Jokes 000119 TWO-YEAR TRANSFER TAX EXEMPTION FOR LDCS PASSED AND OTHER ELEr.: Page I of 2 Member Communimition 3'93 UnivwrOn c:, 0n V5 t 70' ALERTO 7a ontc, On Y15G 1 E6 rel: 1416) 971-9856 email: am 00arn o.rnunsori. corn To the immediate attention of the Clerk and Council July 25, 2003— Alert 03/039 TWO-YEAR TRANSFER TAX EXEMPTION FOR LDCS PASSED AND OTHER ELECTRICITY UPDATES Issue: Regulation allowing municipal electricity assets to be sold or consolidated without transfer taxes for the next two years Background: As noted in AMO Alerts 03118 and 03/23, the Provincial government promised in their 2003 Budget that there would be a two-year transfer tax exemption (until March 28, 2005) for sales and amalgamations of municipal Local Distribution Companies (LDCs) within the public sector. On July 7, 2003, the Province passed promised Regulations to encourage the "...development of new electricity supply from clean, alternativeand renewable energy sources." Among several tax incentives for companies investing in these types of projects, is a 10-year property tax holiday. The government promised that "Compensation to municipalities for lost property tax from this new holiday would be provided similar to that provided in relation to waterpower," but these provisions have yet to be passed by the government. AMO has asked the Finance Minister when this will happen. On July 18, 2003, Regulation 292/03, made under the Electricity Act, 1998 was filed, providing that a transfer tax exemption applies if electricity assets are transferred to certain municipal corporations, an LDC, Ontario Power Generation (OPG), Hydro One or subsidiaries of OPG and Hydro One. According to the government, the purpose of the Regulation is "... to encourage greater rationalization and efficiency," in Ontario's electricity distribution system. The Regulation will be Gazetted on July 26, 2003, but is available now at the E-laws website: http://www.e-laws. gov.on.ca/DBLaws/Sou rce/Regs/Engl is h/2003/R03292_e. htm. Two consultations on increasing electricity generation and improving energy conservation have been announced. On June 27, 2003 it appointed an Electricity Conservation and Supply Task Force and it is expected that the Task Force will report out early next year. In addition, the Ontario Energy Board (OEB), at the direction of the Minister of Energy is embarking on a review of Demand Side Management and Demand Response. Stakeholders have until July 28, 2003 to respond to the OEB's invitation to participate. A draft report should be available later this year, and recommendations will be provided to the Minister of Energy on March 4, 2004. Information on the OEB review can be found at: www.oeb.gov. on. calhtml/en/i ndustryrel ation s/ongoi ngprojects_mi n istersd irective_dsm. htm. Action: Borden Ladner Gervais LLP (BLG), AMO's legal advisor on electricity issues, has done analyses of the above Regulations. They are available on the AMC website at: www.amo.on.ca/whats new/whats new.html. 'Lawyers from BLG will also be doing a presentation at the upcoming AMO AnnuaF Conference on Monday, August 18, 2003. Please see www.municom.com/document/AMODocconfList.asp?PubCatlD=56 for more details. The 00.001120 httn '%ww".nnmirnm (-nm'Puhlicatinne/I 1/01(17')5 nit hhnl R/7/01 TWO-YEAR TRANSFER TAX EXEMPTION FOR LDCS PASSED AND OTHER ELE1.: Page 2 of Association will also be participating in the consultations conducted by the OES and the Electricity Conservation and Supply Task Force. This information is available through AMO's subscription based MUNICOM network at www.municom.com. For more information, please contact. Jeff Fisher, Senior Policy Advisor, 416 971-9856 ext 315 or emaHjrisher@amo.municom.com 0001,1 APR 7 2003 I Corporate inrvitres De BORDEN April 3,2003 LADNER GERVAIS DearSirs/Mesdames: MAYOR'S OFFICE COPIES CIRCULATED TO: C.A.O. Dir. Of Building Admin. Dir. Of Corp. Serv. Dir. Of Leisure Services Dir. Of Planning Dir. Of Public Works Borden Ladner Gervais LLP Lawyers • Patent & Trade -mark Agents Scotia Plaza, 40 King Street West Toronto, Ontario, Canada M5H 3Y4 tel.: (416) 367-6000 fax: (416) 367-6749 www.blgcanada.com Treasurer __� � Linda L. Bedoldi 1 J. Mark Rodger Members of Council _..Q.. t tel.: (416) 367-66471(416) 367.6190 direct fax: (416) 361-73831(416) 361-7088 e-mail: Ibertoldi@blgconada,com 1 mrodger@blgcanada.com Re: Ontario Budget Paper— Transfer Tax Holiday on Sale of LDCs We are writing in respect of the Province's Budget Paper delivered on March 27, 2003 which has a significant impact on your municipality's ability to merge or sell its local electricity distribution company ("LDC') or to acquire other municipally owned LDCs. Since November 2000, municipalities and municipal electricity utilities that transfer an interest in electricity assets to another person have been subject to a 33% transfer tax on the value of those transferred assets. This transfer tax has proven to be a major impediment to the consolidation of the more than 90 municipally -owned electricity distribution companies in Ontario. The Budget Paper proposes a two-year transfer tax holiday for transfers occurring between March 27, 2003 and March 28, 2005'. The exemption would apply to transfers from a municipality or municipally -owned electricity utility to another municipality or publicly -owned electricity utility. Our Energy Markets Group is very involved in assessing the impact of the Electricity Pricing, Conservation and Supply Act, 2002 (Bill 210) on municipalities and their LDCs. We have extensive experience assisting municipal clients on LDC mergers, acquisitions and dispositions including developing and undertaking Requests for Proposals, negotiating and preparing Purchase and Sale Agreements to document the transaction and participation in the Ontario Energy Board approval process. We have advised municipalities on the largest value LDC sales in Ontario's history (the sale of Brampton Hydro and Richmond Hill Hydro). We have also assisted municipalities and LDCs with respect to financing strategies including leases, private placements and bank financings. We are currently advising a number of municipalities as they consider the future of their LDCs in light of the new transfer tax holiday and would be pleased to assist your municipality in this analysis. For further information, please contact either Linda Bertoldi at 416-367-6647 or Mark Rodger at 416-367-6190. Yours very truly, BORDEN LADNER GERVAIS LLP Linda L. Bertoldi and J. Mark Rodger Co -Chairs, Energy Markets Group 0001.22 0 0 0 0 ATTACHMENT-2 CO NS Ut.T I N G NEWMARKET HYDRO & AURORA HYDRO AMALGAMATION ASSESSMENT JANUARY2004 Navigant Consulting Ltd. 2 Bloor Street West, Suite 2005 Toronto, Ontario M4W 3E2 416 927-1641 www.navigantconsulting.com 0001 �3 NAviGANT GONSVOINC CONTENTS 1 INTRODUCTION.....................................................................................................1 2 OPERATING ENVIRONMENT.................................................................................2 PERFORMANCE -BASED REGULATION(PBR)........................................................................................I......2 RECENT DEVELOPMENT IN ENERGY LEGISLATION....................................................................................2 FUTURE OPERATING ENVIRONMENT..........................................................................................................3 Continuing PBR-Driven Cost Pressure...................................................................................................3 3 STRATEGIC INITIATIVES - AMALGAMATION......................................................5 GROWTH THROUGH AMALGAMATION......................................................................................................5 4 ALTERNATIVES TO AMALGAMATION..................................................................6 GROWTH THROUGH ACQUISITION.............................................................................................................6 CONTINUE OPERATING AS A STAND ALONE UTILITY...............................................................................7 OUTSOURCING I JOINT VENTURE................................................................................................................8 OUTRIGHTSALE............................................................................................................................................8 OPERATINGLEASE...................................................................................................................................... 10 5 CONCLUSIONS AND RECOMMENDATIONS........................................................10 SUGGESTED NEXT STEPS............................................................................................................................. 11 APPENDIX 1 - STATUS OF FORMER UTILITY BUYERS..............................................12 Introduction 00,0124 Page h NAviG,ANI' 4.0I sItITIN6 1 INTRODUCTION Navigant Consulting was asked by Newmarket Hydro and Aurora Hydro to undertake a high- level assessment of utility amalgamation vis-a'-vis other strategic alternatives to determine if further due diligence on a possible amalgamation is warranted. During the past two years, regulatory uncertainty and transfer tax penalties have resulted in minimal movement toward a rationalized local distribution industry in Ontario. Recent changes, such as the re -introduction of a temporary transfer tax waiver and policy announcements by the new Ontario government, have restarted discussions among municipalities on possible utility merger combinations. It would seem prudent that management and shareholders of utilities in Ontario re -assess their strategic opportunities in light of these new developments. The following report uses a two-step approach to analyse the merits of a possible amalgamation of Newmarket Hydro and Aurora Hydro. First, the report describes the environment in which electricity distribution utilities must operate in Ontario, taking into consideration the current market rules and Navigant Consulting's expectations for future market developments. Secondly, the report considers the strategic opportunities available to electric utilities with an emphasis on amalgamation but with alternative strategies also considered. At this stage of the assessment, no financial analysis was performed and impacts are discussed in qualitative rather than quantitative terms. The objective of the report is to determine whether further discussion is warranted on amalgamating Aurora Hydro with Newmarket Hydro. The following five criteria will be used to arrive at a recommendation: Table 1- Typical Shareholder Criteria Criteria Description Flexibility Does the opportunity provide the flexibility to respond to changes in regulatory and operating environment over the long term? Does it preclude future changes in strategy? Value Creation/ Does the opportunity enhance value or better position the utility to retain long - Retention term value? Customer Rates What is the expected impact on customer rates? Control How much control will the municipal shareholder have over long-term direction of the utility? Risk How risky is the opportunity? Is there risk in not pursuing the opportunity? Introduction ` 0.01.25 PayeI NAvIGANT C:0 N 5 tt 11I N4 2 OPERATING ENVIRONMENT Since restructuring of the electricity market in Ontario started with the introduction of the Electricity Act 1998, municipalities and management of local distribution utilities in the province have been adapting to an environment where the only constant has been change. Utilities have had to adjust to everything from corporatization to wholesale market opening, all of which demanded a great deal of time and made for a difficult planning environment. Compounding this situation was the unpredictable nature of direct government intervention in Ontario's electricity marketplace. Some of the most influential ongoing factors and recent changes to the current operating environment are outlined below. PERFORMANCE -BASED REGULATION (PBR) In many jurisdictions, performance -based regulation (PBR) has been introduced to replace the old style cost -of -service or rate -of -return regulation, which was viewed by regulators and policy - makers as stifling innovation and causing management to focus more on regulators than on customers. Performance -based regulation uses financial incentives with appropriate checks and balances to influence the behavior of regulated utilities. The basic premise is that PER will foster an atmosphere where utilities try to lower costs and improve service to customers while providing an acceptable return to their shareholders. Another key element of PBR is that all of these objectives are accomplished with minimal direct involvement by the regulator (although this has not been the case in Ontario). From an income statement point of view, the OEB sets maximum parameters for the utility's top line (revenue). Therefore, controllable expenses and capital expenditures must be squeezed in order for the utility to achieve the allowed return on equity (ROE). It is important to note that under PBR, a utility's rates, service and reliability are primarily driven by the Ontario Energy Board and that the level of municipal or shareholder influence over these factors has been significantly reduced. RECENT DEVELOPMENT IN ENERGY LEGISLATION Local distribution companies in Ontario have been operating in an uncertain environment for the past 18 months or so due to ever changing government policy. This situation has started to clarify somewhat, at least for local distribution companies (LDCs) in Ontario, with the introduction of the Ontario Energy Board Amendment Act (Electricity Pricing) 2003. The most relevant aspects of the Act for LDC's are: Operating Hnviranrnent 601 4C Page 2 NAVIGANT f.ON$l,t r ING • Beginning April 1, 2004, local distribution companies (LDCs) would be allowed recover some of the regulatory assets associated with market restructuring. These recoveries are to be spread over a four-year period. • As of March 1, 2005, LDCs would be allowed to achieve their full commercial return. This increase would be conditional on LDCs reinvesting the equivalent of one year of these monies in conservation and demand management initiatives. The Ontario Energy Board Amendment Act (Electricity Pricing) 2003 received royal assent on December 18, 2003 and the Minister of Energy recently wrote to each LDC to notify them that they could apply for the April 2004 rate increase. These recent actions suggest that the new provincial government will be more supportive of municipalities and the electric distribution utilities that they own. Now that LDCs have the opportunity to earn a full return, municipal shareholders will have control over how this benefit is distributed and can allocate the wealth from increased dividends to municipal programs that they deem are the highest priority. Municipal owners will want to ensure that their utilities are best positioned to maximize this potential dividend. FUTURE OPERATING ENVIRONMENT Navigant Consulting believes that fundamental changes to the Ontario distribution sector will continue to occur in response to various pressures during the period covering the second generation PBR (ie. 2005 through 2008). Continuing PBR-Driven Cost Pressure Although little information is available on the second -generation PBR plan, it is safe to assume that the current comprehensive scheme (O&M, capital and losses) will be maintained. As a result, the pressure on controllable expenses will continue, with additional pressure to reduce capital expenses and power losses. Navigant Consulting expects that it will be difficult to achieve the required cost reductions over the long term without considerable restructuring of individual utilities (e.g., creating shared service entities), strategic alliances or mergers to seize upon economies of scale. While Navigant Consulting expects continuing cost pressure in the second generation PBR regmine, the magnitude of this cost pressure will be largely driven by two fundamental questions that need to be answered by the Ontario Energy Board: • Whether to rebase rates and by how much? Operating Environment 0001,27 Page 3 NAviGAN CO N6 VI I I N G • What is the appropriate X-factor (productivity factor), if any, by which distribution rates must be reduced on an annual basis?' Rebasing Rebasing occurs at the end of a pre -determined term of a PBR scheme. Prior to entering a new PBR scheme, utilities are required to submit operating cost and rate base information. Customer rates are then "rebased" to reflect the new costs associated with providing the service. If costs have increased, service levels have declined or service levels are at risk of declining, regulators may allow rates to increase, but the general regulatory bias is to rebase downwards (ie, putting additional cost pressure on utilities). As an example, rates for LDCs in Victoria, Australia were rebased downward by 9% to 18% in 2001 to reflect efficiencies gained during the previous 5 year PBR plan. This was a one-time event followed by annual productivity factors of 1% in the subsequent PBR plan from 2001 through 2005. When selecting the 2001 rebasing amount the regulator decided that total efficiency gains would be split 70/30 between ratepayers and shareholders. This split creates an incentive for the utility to try and achieve these operating efficiencies. Navigant Consulting does not necessarily believe that the OEB will be as aggressive in rebasing prior to the second generation PBR plan; but experience in Victoria does serve as a good indication of what could happen in the longer term future. Regulators will expect certain productivity improvements to be made and the primary beneficiaries will be the utility's ratepayers. Service and Reliability Requirements Based on the results of the first generation PBR plan, the OEB is expected to tighten customer service and reliability requirements and implement meaningful penalties for LDCs that fail to meet these requirements. There are two implications stemming from this development. First, any degradation in service or reliability is likely to result in reduced payments to shareholders because of the financial penalties incurred. Secondly, smaller utilities may require proportionately more capital investment to ensure that service and reliability levels are maintained or improved to acceptable standards. Therefore, it will be imperative that distribution utilities are able to implement cost effective measures that improve service and reliability and still maintain expected returns for shareholders. The X-factor or productivity factor is the mechanism that the Ontario Energy Board uses to put downward pressure on rates. The first generation productivity factor was set at 1.5%, meaning that after accounting for inflation (only 0.4% m 2002), rates must then be adjusted downward by 1.5%. Operating Environment 0 6101.12 8 Page 4 NAvIGANI- C 0 N 5 U I11 N CI 3 STRATEGIC INITIATIVES -AMALGAMATION The previous section discussed a number of reasons why Navigant Consulting believes that future regulatory requirements will continue to emphasize operating efficiency, service and reliability improvements for Ontario LDCs. Those utilities that have the greatest operating flexibility will be best able to proactively respond to these cost pressures and satisfy both ratepayers and shareholders alike. One of the lowest risk strategies to obtaining this operating flexibility is to amalgamate with other electric distribution companies. GROWTH THROUGH AMALGAMATION Municipally owned utilities have the opportunity to merge with other government owned utilities and avoid paying the 33% transfer tax. In order to avoid the transfer tax, all agreements and regulatory approvals must be in place by March 28, 2005. An amalgamation with another utility can provide operating flexibility through the following features: • Staffing overlap may allow for labour cost reductions. While employment cuts may be the fastest route to these savings, in many cases the savings can be realized through a combination of contract staff reduction, attrition, re -assignments and hiring freezes implemented while the much larger customer base continues to grow (For example, assuming 3% annual customer growth, staffing efficiency would increase by 15% over five years under a hiring freeze); • Integration of distribution systems to provide redundancy or avoid capital investment in expanded capacity; • Coordination of line crews and better response to emergencies; • Reduced purchasing cost for equipment and supplies through increased bulk purchasing power; • Joint effort on regulatory changes and responding to developers. • Attain $100 million in rate base faster which allows for greater leverage2 and the opportunity for enhanced value and a cash dividend to shareholders. A detailed analysis that quantifies the benefits of a merger between Newmarket Hydro and Aurora Hydro was beyond the scope of this report. Regardless of the eventual savings achieved, the combined utilities will be better positioned to respond to PBR-related pressure in the future. Utilities under $100 million in rate base are limited to a 50/50 debt to equity ratio. Utilities with rate bases greater than $100 million are allowed a 55/45 debt to equity ratio. Strategic Initiatives - Amalgamation 0001 129 Page 5 NAviGANT c rev S U Gr i n c: Why Consider Amalgamation? • Amalgamation is a low risk option to provide the utility with greater operating flexibility that should lead to. lower costs, improved service levels and better reliability than compared to smaller stand-alone utilities; • Ratepayers could realize benefits through lower rates not available under the stand-alone option; • Amalgamation does not preclude other strategic options such as outsourcing, future sale or acquisition of other LDCs. Note that the larger size of the amalgamated utility may make the assets more attractive to potential buyers. • Shareholder's investment should see better value preservation and possibly value enhancement from improved efficiencies; Concerns • Decision -making may be hindered by multiple shareholder structure in the absence of an effective governance model, however, regardless of ownership structure the level of municipal or shareholder influence over a utility's rates, service levels and reliability has been significantly reduced under PBR. 4 ALTERNATIVES TO AMALGAMATION This section discusses the primary strategic alternatives to amalgamation: growth through acquisition; continuing operation as a stand-alone utility; outsourcing/joint ventures; outright sale and entering into an operating lease. GROWTH THROUGH ACQUISITION As outlined previously, it is expected that successive generations 'of performance -based ratemaking will exert considerable pressure on utilities in the province to become increasingly efficient. One of the ways to improve operating efficiency is to expand the customer base through acquisition and capture potential efficiencies available through increasing economies of scale. Depending on the attractiveness of the utility for sale and the number of bidders, an acquirer will need to formulate a bid that offers value and commitments that exceed other bidders. One of the common features of many purchase offers is an employment guarantee that effectively delays potential integration savings. In addition, it will be necessary for the bidder to devise ways to implement cost reductions that exceed other competing bids; yet a significant portion of these savings will need to be passed on to the vendor in the form of increased value (or dib premium) Alternatives to Anealgamation - /��,n 12o Page6 NAviG ANT C O N S V II IN i:: in order to win the bid. The extent to which value is passed back to the vendor will vary from transaction to transaction. However, this is perhaps the greatest source of risk in an acquisition since it creates a substantial minimum threshold point in terms of savings that must be achieved before the buyer sees a net benefit from the. transaction. If the purchaser fails to achieve at least the savings that were reflected in the bid premium, they will be worse off then before the purchase. Why Consider an Acquisition? • Shareholder's investment should see better value preservation and possibly value enhancement from improved efficiencies. These efficiencies are potentially greater than under the amalgamation scenario. • Long term decision making should be easier due to single owner; Concerns • Significantly greater integration risk since a large portion of incremental value from efficiency savings has been passed on to the vendor; • Limited promising acquisition candidates for Newmarket Hydro or Aurora Hydro given their size and location. CONTINUE OPERATING AS A STAND ALONE UTILITY A decision to forgo opportunities to merge or acquire would leave the utility in a "business as usual" state. While this would minimize short-term risk and avoid the additional expenditures associated with a merger or acquisition scenario, it could significantly hinder operating flexibility going forward. The number of "levers" available to utility management to respond to pressures imposed by the regulator on operating costs, service and reliability are much more limited. In addition to self-imposed cost cutting and other efficiency improvement mechanisms, the only alternative for utility management is to consider outsourcing or joint ventures, both of which are discussed in further detail below. Why Consider Stand Alone? • Allows management to focus entirely on the day today operation of the business Concerns • Flexibility to respond to cost, performance and competitive pressures is limited and long- term value may be significantly compromised. Alternatives to Aumlgmnation Page 7 U01J NAvIC_It1NT CGN$L11T1N1i OUTSOURCING / JOINT VENTURE While outsourcing of functions among LDCs in Ontario has been common for many years, it has typically been limited to tree trimming; meter reading or some line construction work. More recently, larger utilities have been moving to outsource back office functions of customer service, billing, IT, HR and finance. Outsourcing allows the utility to offload some of the operational risk associated with these functions through a contractual arrangement that provides more certain costs for these services. Some of the more notable outsourcing agreements in Canada include Cap Gemini / Hydro One and the recently formed Accenture Business Services (ABS), whose clients include Enbridge, BC Gas, Centrica, BC Hydro, and Enmax. Collectively, these companies serve over 5 million customers. Accenture Business Services currently offers services for IT, customer service (meter reading, billing, call centre, credit & collections), human resources, and financial support. In theory, outsourcing allows each party to focus on what they do best — delivering energy for a utility versus customer service for the service provider. Any economies of scale or scope that the service provider captures are shared with the client utility in the from of reduced costs. The magnitude of these savings depend on a number of things, including the number of customers involved, the length of the contract, the presence of employment guarantees and the relative efficiency of operation at contract commencement. Why Consider Outsourcing? • Some operating risk is passed on to the service provider; • Should reduce costs in the long run versus providing service in-house; Concerns • May limit the shareholder's ability to merge or sell the utility with outsourcing agreements in place; OUTRIGHT SALE If the shareholder of Aurora Hydro or the shareholder of Newmarket Hydro decide that owning and operating the local utility is not in their long-term interest, a sale of the assets or shares of the utility is the quickest and most simple method of exiting the business. There is an additional incentive to consider this option given the current transfer tax waivers that extends through March 28, 2005. The shareholders of the utilities would require OEB approval prior to this date; otherwise any sale transaction would be subject to a 33% transfer tax less PIL taxes paid to date. ' Transfer tax waiver applies only to municipal utilities that are sold to other government -owned utilities. Alternatives to Amalgamation 06 0 o2 Page 8 <0 N 6U II INO Current Market is Illiquid When the Electricity Act 1998 was first announced and clarified that ownership of MEUs rested with the municipality, many municipalities made the decision to sell. The transaction environment and market outlook at the time was very favourable to vendors, often resulting in sale prices that were well above the book value of assets. There were a number of well -financed bidders present who were encouraged by the Ontario market potential and the relatively straightforward market rules outlined by the Ontario government and the OEB. However, today's market is not nearly as buoyant. Many of the previous buyers have left the Ontario market for good, or at a minimum, reduced their expectation due to numerous changes to government policy. Appendix 1 identifies some of utilities that were previously active in the Ontario market and updates their present day status. It is true that the clarity provided in the proposed legislation announced by the new Ontario government should cause some private utilities to once again seek opportunities in Ontario. Unfortunately, the number of suitors will be fewer and the level of aggressiveness will be lower due to the: • Absence of many US players who continue to re -focus on their core domestic businesses; • Financial restrictions imposed on US and Canadian utilities by credit rating agencies in the post Enron era; • Continuing feeling that Ontario is a questionable place to invest. In this environment, it can be safely assumed that any present day transactions will be at prices lower than three years ago; however, the size of the discount is difficult to determine. Navigant Consulting believes that most transactions will be much closer to net book value rather than the 1.3 times and sometimes higher that was previously experienced. Why Consider Selling? • Value inherent in business is monetized, albeit at lower values than previously experienced; • Regulatory and operating risk has been entirely passed onto new owner; Concerns • Illiquid market makes it difficult to determine potential sale price; • A transaction with a private bidder would trigger transfer tax, significantly reducing the net proceeds to the seller • Municipality is no longer in control of the ultimate destiny of the utility. Alternatives to Amalgamation 00-0 33 1 Page 9 NAvIGAtNIT C. t1 N513t 11Nc: OPERATING LEASE An operating lease provides an alternative to an outright sale that may have some attractive features for a municipality. In an operating lease, the MEU leases its distribution assets to a third party (lessee) who operates the utility for the term of the lease (usually 10 years). All new capital is funded by the lessee who also takes on all regulatory and operating risk for the term of the lease. At lease expiry, the lessee has an option to buy the balance of the assets. Why Consider an Operating Lease? • Provides a long term source of revenue for the municipality; • Avoids transfer tax; .• The ownership and long term destiny of the asset remains with the municipality; Concerns • Illiquid market makes it difficult to determine lease value. 5 CONCLUSIONS AND RECOMMENDATIONS Navigant Consulting's analysis of the current and future operating environment for electric distribution utilities in Ontario indicates that operating flexibility will be the key to success. Utilities will need to be able to respond to continuing cost pressures from PBR, maintain or improve service and reliability levels, and respond aggressively to any new entrants. A summary matrix in the following table demonstrates that based on typical shareholder criteria, the most attractive strategic option is amalgamation, given that it: 1. Provides operating flexibility but does not preclude a strategic change of direction toward another opportunity (e.g future sale); 2. Has the potential to increase value for the shareholder, 3. Would likely lead to lower rates for ratepayers when compared to the stand alone option; 4. Would retain at least some control over the utility for the municipal shareholder, 5. Presents minimal risk to shareholders and ratepayers. Amalgamation presents a low risk, low cost opportunity that is even more attractive under the current transfer tax waiver period set to expire March 28, 2005. Therefore, in Navigant Consulting's opinion, it would seem a prudent course of action for the management of Newmarket Hydro and Aurora Hydro to continue discussions and due diligence toward an eventual amalgamation of the two utilities. Conclusions mid Recornrnendations - Page 10 000134 NAvIGANT C@rv$U I..T ING Table 2 - Summary Matrix of Strategic Options versus Typical Shareholder Criteria Criteria Merger Stand Alone Acquire Out Source Sell Operating Lease Flexibility + + Value Creation/Retention + 0 + Customer Rates + 0 + Control -�- -�- -�- Risk + + + + + Positive influence on shareholder criteria Negative influence on shareholder criteria Unknown outcome SUGGESTED NEXT STEPS In order to arrive at a decision to proceed with an amalgamation of Aurora Hydro and Newmarket Hydro, Navigant Consulting suggests that the due diligence focus on the following issues: • Develop a preliminary organization chart for the amalgamated utility; • Identify any areas of staffing overlap and potential solutions - attrition, re -assignment, grow into it, severance; • Billing & Customer Service integration - staffing, hours, software, billing cycles; • Distribution system integration - operational, reliability and capital investment impacts; • Impact on customer rates through rate harmonization, if any; • Potential governance model. Conclusions and Recommendations 000135 1 Page II NAviGAN-r CLAN sUITi NG APPENDIX 1 - STATUS OF FORMER UTILITY BUYERS Prior Bidders Current Status Publicly Owned • Hydro One • New management team now focused on system upgrades with no mandate to acquire • EPCOR • Recent focus on generation • Toronto Hydro • Uncertain capacity for acquisitions given unsuccessful venture into retail and impending new President & CEO • Enersource • Still a likely buyer with backing of Borealis pension money Canadian IOUs • Enbridge • Divestment of Cornwall Electric and establishing Wirebury may indicate no intention of future acquisitions. • Union Gas • New owner (Duke) appears to have no interest in expanding distribution assets in Canada • TransAlta • Now entirely focused on generation • Fortis • Acquired Comwall Electric and appears interested in further acquisitions • Emera • Not currently active in Ontario U.S. IOUs • Utilicorp • Company now called Acquila has been restructuring to reduce debt by selling foreign assets, including Canadian assets. • AEP • AEP was one of the first U.S. utilities to exit Ontario and continues to sell foreign assets and focus on the US only • Sempra • Failed attempt at building gas distribution in Nova Scotia . Focus on commodity trading in Canada. Appendix 1 — Status of Former Utility Buyers 06-01 36 Page 12 gAmw FOR IMMEDIATE RELEASE ATTACHMENT-3 V&#M 710, Cil*jA6pe rwna4r February 19, 2004 PROPOSED MERGER OF HYDRO UTILITIES TO CREATE ONTARIO'S 3rd LARGEST LOCAL DISTRIBUTION COMPANY MARKHAM & VAUGHAN, ON -- Building upon the success of their joint purchase of Richmond Hill Hydro Inc. (RHHI) in 2001, Hydro Vaughan Distribution Inc. (HVDI) and Markham Hydro Distribution Inc. (MHDI) are pursuing a merger of their two utilities along with RHHI. If implemented, the merger of the three utilities would result in the creation of the 3rd largest local distribution company in the province, delivering electrical power to more than 190,000 residential and business customers. "The rationale behind our merger discussions is a strong belief that it will ultimately benefit all stakeholders including the consumers in each of the three municipalities," said Vaughan Mayor Michael Di Biase. "By combining the customer, asset and skill bases of the three utilities, this partnership enables us to realize economies of scale and provide consumers with more efficient service," commented Markham Mayor Donald Cousens. Discussions on how to maximize efficiencies among the three utilities began last year, following Hydro Vaughan and Markham Hydro's joint purchase of Richmond Hill Hydro. The Ontario government's announcement In March of a transfer tax holiday for utilities considering an amalgamation, removed a key financial impediment to a merger. The two utilities set up a joint steering committee to investigate all options and provide recommendations to each of their Boards, KPMG LLP was hired to facilitate the process. If the remaining issues are successfully dealt with, HVDI and MHDI expect that the transaction will be completed some time In the second or third quarter of 2004. The final agreement is subject to both the approval of HVDI's and MHDI's Board of Directors and that of their respective shareholders - the City of Vaughan and the Town of Markham. Further, the merger requires the approval of the Ontario Energy Board. Public consultation sessions will be scheduled for customers, residents and the general public to get additional information and provide comments on the merger. Hydro Vaughan Distribution Inc. and Markham Hydro Distribution Inc. are incorporated companies owned by the City of Vaughan and the Town of Markham respectively. Each utility has 50 percent ownership of Richmond Hill Hydro Inc. Media Contacts: Vaughan Mayor Michael Di Biase Susan Kadis, HVDI Board Chair 905-832-2281 Ext. 8340 (Di Bfase) or� 8349 (Kadis) Email: Michael dihlase@vauahan ca susan.kadisCa vaughan.r� -30- Markham'Mayor Donald Cousens Deputy Mayor Frank Scarpitti, MHDI Board Vice -Chair 905-475-4872 (Cousens) or 905-475-4899 (Scarpitti) Email: dcous-ens@markham ca fscaroitti@markham ca 000137 ATTACHMENT.4 Borealis Hydro Electric Holdings Inc. 215Industrial Parkway South, P.O. Box 157 Aurora, ON L4G3113 Telephone (905) 727-4612 p'na• (905) 727-5619 February 26, 2004 Town of Aurora 100 John West Way Aurora, ON L4G 6J1 Attention: Mr. Larry Allison CAO Dear Mr. Allison Re: Amalgamation Assessment Aurora and Newmarket Hydro Corporations Dear Mr. Allison: FEB 2 7 2004 ADrV IN16 i FIATION At the February 18th, 2004 Board of Directors Meeting, the Board reviewed the Navigant Consulting Ltd. report entitled Newmarket Hydro & Aurora Hydro Amalgamation Assessment. The Board endorsed the report based on its conclusions and recommendations and agreed that a further review of the merger opportunity would be in the best interest of the utility. The President of Aurora Hydro will engage in a study of the results of an amalgamation with the President of Newmarket Hydro Ltd.; such study to be subjected to a peer review by Navigant Consulting Ltd. for consideration by the Board of Directors of Borealis Hydro Electric Holdings Inc. and the Council of the Town of Aurora. Key points related to this position are; • greater operating flexibility in responding to the future cost pressures expected in the electricity distribution sector 010101.38 Larry Allison February 26, 2004 Page 2 • a merger with other distribution companies represents a low risk strategy to obtain operating flexibility • there is currently a 33% transfer tax holiday for mergers with other government owned utilities up until March 28, 2005 • a detailed study of a merger with Newmarket Hydro Limited will ensure that the customer and shareholder interests will be continue to be served well by Aurora Hydro Connections Limited The Board passed the following motion endorsing the principle of amalgamation and support further study of merger results to be undertaken by staff. Moved by Cal White Seconded by Jane Murray That the Board endorse the principle of amalgamation with regard to the conclusions and recommendations in the Navigant report and make such recommendation to the Shareholder for a further staff review of the benefits to an amalgamation with Newmarket Hydro. Yours truly, AURORA HYDRO CONNECTIONS LIMITED Jn L. Sanderson, P.Eng. President & CEO J LS/cm cc: Borealis Hydro Electric Holdings Inc. Directors 0001.39 TOWN OF AURORA GENERAL COMMITTEE REPORT AGENDA ITEM # 3 No. ADM04-005 SUBJECT: Organizational Review— Development Planning Functions FROM: Larry Allison, Chief Administrative Officer DATE: March 2nd, 2004 RECOMMENDATIONS THAT the attached Organizational Review — Development Planning Functions prepared by the Randolph Group be received and referred to the 2004 budget discussions. BACKGROUND In the fall of 2003 the services of the Randolph Group, Management Consultants were engaged in order to undertake a review of the Town's Development Planning Functions. The review was prompted by a series of factors including the significant volume of work processed within the organization last year and an opportunity to revisit the present organizational structure of the Planning Department arising as a result of an incumbent not returning from maternity leave. The scope of the review was not focussed solely on the Planning Department but was intended to take a broader approach and encompassed issues such as how each department plays a role in the review of development applications; the current structure and staffing in place in comparator municipalities and suggestions for realignment of present resources to increase efficiency. The report outlining a number of recommendations was recently completed and submitted to the Town. COMMENTS As was mentioned during Council's initial review of the Planning Departments 2004 operating budget on January 171h, an increase in staff complement to the Department in 2004 was advocated. The analysis undertaken by the consultant clearly supports the need to bolster the overall number of staff providing planning related support. The report also 00.01.40 March 2, 2004 -2- Report No. ADM04-005 suggests a series of further enhancements to the present organizational structure that will have the effect of enhancing overall efficiency. A number of the suggestions and functional realignments of staff can take place within the present scope of the authority provided to the undersigned by Council. As a result an interim reconfiguration of the department will be implemented consistent with the objectives of the Report and the other recommendations without a direct financial implications will be reviewed in detail and implemented over the coming 3 — 6 months. The components of the consultant's analysis that relates to additional staff complement will be held in abeyance through completion of the budget discussions and Council's ultimate decision as to the number of new staff complement positions to be created this year. OPTIONS Council has discretion as to the overall full time staff complement of the organization. The allocation of those resources within the Town's departmental structure is a responsibility of the CAO. Fully implementing the recommendations of the report would transfer 2.75 existing staff members and add 2 new staff members to the re -titled Planning and Development Department over a two year period. One new full time complement position and funding for 1 other contract position are already proposed as part of the first draft 2004 budget submitted by the department. Implementing the recommendations of the report would also advance from 2006 to 2005 one full time complement position already proposed in the area of GIS support. It is proposed that final determinations related to new complement be contingent on the availability and allocation of additional funds for this purpose as determined through the final budget deliberations. CONCLUSIONS It is recommended that financial implications arising from the report be received and referred to the budget discussions. The additional staff complement proposed will be addressed as part of the follow up to the adoption of the 2004 budget by Council. In the interim the remainder of the recommendations that are focused on enhancing the overall effectiveness of the organization including realigning internal functions, the transfer and enhancement of the Committee of Adjustment and Economic Development functions will be reviewed and an implementation strategy devised covering next 3 — 6 months. March 2, 2004 - 3 - FINANCIAL IMPLICATIONS No. ADM04-005 The addition of the full time complement position and other changes in 2004 as proposed in the Report would have an estimated impact of $60,000. There are currently sufficient funds contained within the first draft of the Planning Department 2004 budget to allow implementation of those portions of the recommendations this year. The internal transfers of staff do not create budgetary implications. LINK TO STRATEGIC PLAN Goal A — Maintain a well managed and fiscally responsible municipality. ATTACHMENTS Appendix "A" Organizational Review Planning Department Functions Report February 20, 2004 prepared by the Randolph Group Present Organizational Structure — Planning Department Potential Organizational Structure — post budget approval PRE -SUBMISSION REVIEW Management Teagr Meeting — February 25`h, 2004 Administrative Officer 000142 APPENDIX "A" OO o LL � 3 c o a o 0 N r s W 0 V t i llq- 0 0 N O N i 00,011.43 c U W O7 N <O m a ti V 0 i 5 7 U co m 0 U N U O > NO N O U Q m 0 Y U .E 7 E E N O L U L (� co U O G 0 +p o m N_ O) N E O � Q 0 E 00,0144 N c 00,0145 a) c It (6 L U Q O o Q U) 0) co > o c: a) a n n ca a) 0 = > a) 0 a) °)a o a) EU u 0 0. c a) p 0 0 a) U a) O u c 0) 'E C N O i c0 a) = (6 Q M — Oj j C 0 c E S E a) E a) 0 Q m a) c 7 p p m U) "U a) :p m U) _0 a) 0) c (D (p E 4 O N �° Qa L a (ma a) E N O a) U !EU L 0 c a) c 0 0 0 0) a) 0 r� L � 0 'E a5 c 0 0 o c Q ■ ■ ■ w a) U) m cu L a) L U a) U) C cu U c 0 U C O1 C ._ C m O_ "O U c (a L C a) U) 2 a) U c 0 (a 0 m O a �U .E 3 2 0 c 0 L 0 42 a) 0 c a) U C a) O_ 0 0 0 0) 0 N rn 0 U 0 rid ■ ■ ■ 0001.46 I M I ACD �O d to 3 I a � v R. a)� W i O U O O L U (p6 U 0 O 3 d� o n3 0 Q U N p N O Co m N Np •U Q U — a) �+ C — C N U) O C .. - d (o c N cn �7 C 3 .(o- w p) O 7 (o ►— C CD O a) a) w U LL O C6 a) f0 �_ O v- C p ,� a) o N N a NT �1� Q C N -p A te` N C O. cu t nm 0.3 aaa) 0_ �� Q; a `o Apo °pQ�'�nL o-2 20 > a > a N -o � Q c W U_ U) m .o-+ 4-- d �.4 3 p v U p c �- o 5aa)i a m d0io a '� . 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AGENDA ITEM # GENERAL COMMITTEE REPORT No. TR04-007 SUBJECT: PROJECT MANAGER FOR THE IMPLEMENTATION OF A NEW FINANCIAL INFORMATION SYSTEM —AWARD OF RFP TR2004-13 FROM: Paul Dillman; Acting Treasurer/Tax Collector DATE: March 2, 2004 RECOMMENDATIONS THAT Council endorse the selection oflntrasys Services Inc as the Project Manager to oversee the supply, delivery and installation of the new Financial Information Systems software recently purchased from Vadim Computer Management Group Ltd and RAC Software Inc subject to the signing of a satisfactory Agreement with the Town of Aurora; and THAT the Agreement be based on their response to Request for Proposal #TR2004- 13 to a maximum of $75,000 plus applicable taxes; and, THAT staffreview the total number of days estimated in the response in an effort to reduce the days required and more accurately reflect the management services needed to complete the project; thus, reducing the financial impact. BACKGROUND Council at their meeting of January 13, 2004 authorized staff to enter final negotiations with Vadim Computer Software Management Group Limited and RAC Software Inc for the supply, delivery and installation of a Financial Information Systems for the Corporation of the Town of Aurora. At that same meeting, Council authorized staff to solicit proposals from qualified financial system implementation specialists to facilitate the role of project manager in accordance with the Town's procurement policies and procedures. Council at their meeting of February 10, 2004 authorized the Mayor and Clerk to execute Agreements with Vadim Computer Management Group Inc for the supply, delivery and installation of their Financial Information Systems and with RAC Software Inc for the supply, delivery and installation of Financial Manager's Workbench, Capital and Salary Forecasting Software. Request for proposal (RFP) TR2004-13 was released on January 28, 2004. The deadline for submissions was Wednesday, February 11, 2004 at 12:00 noon and a total of ten proposals were received and were evaluated by staff. 06.0 F( o March 2, 2004 .2- Report No. TR04-007 COMMENTS Over the past couple of years staff have consistently identified the constraints and limitations associated with the Town's core Financial Information Systems. These shortcomings not only limit the effectiveness and efficiency of Treasury staff but also limit the ability to establish electronic links between the various municipal software applications that could benefit from centrally managed and maintained data sources that can lead to the use of inaccurate property or customer data. The fact that ten proposals were received has provided the Town with a broad cross section of experience and qualifications to undertake this project and achieve its objective of most if not all of the objectives defined within the terms of reference. The proposed range in cost for the project management of the implementation of the Financial Information System ranged from (approximately $63,000 to $297,000) but the scope of the proposals also ranged from that of a very comprehensive approach to that of an overview with suggestions that could possibly achieve desired objectives. In order of proposal per Diem cost (lowest to highest) to complete the project management the respondent submissions are summarized as follows: # FIRM NAME PER DIEM EST ESTIMATED OTHER ESTIMATED ($) # OF TOTAL PER COSTS TOTAL COST DAY DIEM COSTS OF PROJECT S 1 Intras s Services Inc $ 525.00 131 $ 68,775.00 $5,250.00 $ 74,025.00 2 ITNET $ 800.00 100 $ 80,000.00 Not stated $ 80,000.00 3 Brainhunter $ 800.00 273 $218,400.00 Not stated $218,400.00 4 Prior & Prior $ 816.88 109 $ 89,040.00 $120/$140 $ 89,040.00 Associates Ltd Der hour 5 Applied Technology $ 900.00 230 $207,000.00 Not stated $207,000.00 Solutions Inc 6 Fujitsu Consulting $ 900.00 70 $ 63,000.00 Not stated $ 63 000.00 7 Jackson Begg Limited $1 000.00 67 $ 67,000.00 Travel etc $ 67 000.00 8 Rondinone $1,040.00 130 $106,080.00 Mileage $106,080.00 Management Services Inc 9 Robert Half $1,350.00 220 $297,000.00 Travel, $297,000.00 Management Supplies Resources $225/hr 10 RIS Resource Not Not Unable to Not stated Unable to Information Systems provided provi calculate calculate Inc I ded The evaluation criteria deployed by staff for this project included cost, scope of review, qualifications and experience of respondent staff resources and ability to recommend innovative solutions within the municipal environment. 04601. 71 March 2, 2004 - 3 - Report No. TR04-007 OPTIONS The option is available for staff to undertake the roll of Project Manager. However, staff is of the opinion that an external resource with broader knowledge and experience in managing a project of this scope will enhance the overall project objectives and therefore final results. If staff were removed from their current duties it would adversely impact the level of service currently provided to Town of Aurora residents. FINANCIAL IMPLICATIONS The 2003 capital budget proposed to undertake the replacement of the Town's core financial information systems. The proposed budget included a provision for consulting services to retain the services of a project manager to oversee the implementation of the new systems in 2003/2004. CONCLUSIONS Based on the staff review of proposals received, it is recommend that Intrasys Services, Inc. be engaged to as the Project Manager to oversee the supply, delivery and installation of the new Financial Information Systems software recently purchased from Vadim Computer Management Group Ltd and RAC Software Inc. Although Intrasys Services Inc. ranked third of the ten respondents on the cost to complete this project, the thorough analysis of the proposals ranked them as #1 on the strengths of their approach, overall scope of undertaking the review and requisite experience within the municipal sector. Their experience with Vadim Implementations and the having a core team member who was previously an Implementation Supervisorfor Vadim made Intrasys' proposal very attractive. Also, their proposal includes a bonus of eight no cost project days and includes seven days that are directly related to Phase II (2005) of the Financial Information System upgrade; thus in the opinion of staff the number of project days can be reduced. Without getting into the detailed analysis of each respondent proposal, the evaluation process included weighting factors within each category for which all proposals were ranked. Staff has been in contact with two other municipalities who purchased Vadim Software and used Intrasys as a consultant to provide a business process review and project management. They are both very satisfied with the level of service provided by Intrasys. 000172 March 2, 2004 - 4 - Report No. TR04-007 LINK TO STRATEGIC PLAN Goal "A" — A Well Managed and Fiscally Responsible Municipality ATTACHMENTS APPENDIX A - Executive Summary — Intrasys Response to RFP TR2004-13 PRE -SUBMISSION REVIEW Chief Administrative Officer— Thursday, February 26, 2004 Prepared by: Paul Dillman, Acting Treasurer/Tax Collector Ext. #4112 Paul Dillman Acting Treasurer/Tax Collector 000173 APPENDIX "A" www.inrrasys.ca Request For Proposal (RFP #TR2004-13) The Services of a Project Manager to Assist in The Implementation of a New FIS System in The Town of Aurora February 10, 2004 Owner: Town of Aurora C/O Town Clerk Corporation Services 2' Floor,100 John West Way Aurora, ON. MG 6J1 Project Consultants: Intrasys Services, Inc. Suite 2, 630 -Whamcliffe Road, South London, ON. N6J 2N4 000174 Section 1 — Executive Summary Intrasys is well positioned to provide appropriately experienced and qualified staff in support of the Vadim FIS implementation at the Town of Aurora. With our directly related experience with Vadim staff, systems and applications with the County of Lambton, City of Sarnia and City of Kawartha Lakes we are able to confidently provide Aurora with the required expertise for a successful implementation. This municipal experience is also supplemented by similar and extensive information management and technology experience within the healthcare sector. Through out extensive Vadim systems experience we are aware that a project of this size and complexity do not always go according to plan. However Intrasys is able to be very flexible in responding to such unforeseen events in a professional and accommodating fashion in order to "get the job done" to your satisfaction. The Town of Aurora has undertaken a significant investment in technology, infrastructure and related resources in the past few years. As mentioned in the Council report of June I O'h, 2003 (based on the Prior & Prior MIS plan update) amongst other important recommendations and observations: • It is important for the corporation to acknowledge the role of Information Technology, • The continued financial support of MIS resources within the organization. • Commit to a best of breed acquisition strategy while optimizing capabilities of existing applications. • Standardize data standards and platforms to facilitate integration of core business applications. The full-time staff at Intrasys (and associated expert Consultants, including GIS) can provide the Project Managers, Systems Analysts and Technical Specialists to achieve a successful outcome to this project. The Town of Aurora will benefit from out ability to supply not just a single Project Manager but additional experienced staff within the overall project to maximize resource productivity and utilization. Our estimated 131 project days within the provisional project plan will represent Aurora's best interests to Vadim and other vendors that may be involved through the project. In addition our 8 "no cost" value added project days offer a substantial benefit to the Town of Aurora. We are most willing to provide post implementation support in accordance with Aurora's expectations. Intrasys Services, Inc. Suite 2 - 630 Warncliffe Rd., London, ON. NU 2144 ph: (619) 657 6571 fax: (519) 667 6171 Online: www.intrasys.ca Email: intrasys@intrasys.ca 0601'75 AGENDA ITEM # S TOWN OF AURORA GENERAL COMMITTEE REPORT No. TR04-006 SUBJECT: Council and Local Board Members Remuneration and Expenses for 2003 FROM: Paul Dillman, Acting Treasurer/Tax Collector DATE: March 2, 2004 RECOMMENDATIONS THAT Report TR04-006, Council and Local Board Members Remuneration and Expenses for 2003 be received for information. BACKGROUND Pursuant to Section 284 (1) of the Municipal Act, the Treasurer of every Municipality must submit annually to the council of the municipality an itemized statement of the remuneration and expenses paid to each member of council in respect of his/her services as a member of council or as an officer of the municipal corporation in the preceding year. Further, section 284 (3) indicates that a local board shall submit to the Treasurer a statement of remuneration and expenses paid to members of the local board. COMMENTS Remuneration, travel allowance, expense allowance and conference/seminar expense allowance are paid to Mayor and Councillors in accordance with a By-law and Administrative Procedure No. 57. By-law#4206-OO.0 was repealed and replaced with By- law #4459-03.C, effective December 1, 2003. 00,01'76 March 2, 2004 - 2 - Report No. TR04-006 Report No. TR02-030 — Regional Councillors Remuneration to be Paid at the Local Level was adopted by Council at its meeting on Tuesday, December 17, 2002. Report No. TR02-030 recommended: ■ THAT Council for the Corporation of the Town of Aurora endorse Report No 8 of the Regional Municipality of York+s Finance and Administration Committee relating to Pension Options for York Region's elected officials; ■ AND THAT remuneration for Regional Councillors be administered in a single payer system a the local municipal level effective January 1, 2003: ■ AND THAT any cost incurred by the Town of Aurora for the region remuneration component including the cost of any increase to benefit expenses be reimbursed on a cost recovery basis from the Region; ■ AND THAT the Town of Aurora execute an agreement with the Region of York based on the terms set out in this report. Any remuneration paid to the Town of Aurora's Regional Councillor on behalf the Regional Municipality of York under the Terms of the Joint Service Agreement are not included in Schedule A attached to this report and will be reported on separately by the Regional Municipality of York. OPTIONS N/A CONCLUSIONS N/A FINANCIAL IMPLICATIONS The Town's annual operating budget provides forthe remuneration and expenses forthe Mayor and Members of Council and Members of the Committee of Adjustment. The annual operating budget also provides for a grant to the Aurora Public Library Board, from which members of the Library Board are reimbursed for reasonable expenses. C001 7'7 March 2, 2004 - 3 - Report No. TR04-006 LINK TO STRATEGIC PLAN N/A ATTACHMENTS • Schedule "A" — Council and Local Board Members Remuneration and Expenses for 2003. PRE -SUBMISSION REVIEW Management Team Meeting - Wednesday, February 25, 2004 Prepared by. Darlene Munro, Accounting Supervisor Ext. 4117 i � pllet- _ Paul Dillman Acting Treasurer/Tax Collector 000178 TOWN OF AURORA Schedule "A" Report no. TR04-006 Summary of Council and Local Board Members Remuneration and Expenses for 2003 TRAVEL [ OTHER REMUNERATION TRAVEL ALLOWANCE I EXPENSES Tim Jones $ 40,308.08 $ 7,200.00 $ 2,683.25 $ 50,191.33 Evelyn Buck 1,584.59 83.00 1,667.59 Wendy Gaertner 1,584.59 83.00 1,667.59 David Griffith 15,894.66 917.00 16,811.66 William Hogg 1,584.59 83.00 1,667.59 Nigel Kean 17,479.26 1,000.00 18,479.26 Evelina MacEachern 15,894.66 917.00 125.00 16,936.66 Phyllis Morris 1,584.59 83.00 - 1,667.69 Betty Pedersen 15,894.66 917.00 1,119.66 17,931.32 George Timpson 15,894.66 917.00 2,400.00 19,211.66 Damir Vrancic 17,479.26 1,000.00 - 18,479.26 Ron Wallace 17,479.26 1,000.00 18,479,26 John West 17,479.26 1,000.00 - 18,479.26 $ $ _L201,670.03 6,327.91 15,200.00 180,142.12 $ .. . . . . . . . .. ....... Members of :CommitteeAdjustment-1-150M — -P. ... .... ..... ........ ............. ... Julia Ellieff $ 660.00 $ 660.00 Roy Harrington 715.00 715.00 Julius Horvath 660.00 660.00 Matti Lilles 715.00 715.00 Michael Seaman 845.00 845.00 $ 3,595.00 em6e:1 ..... .... . Aurora:' bl 6 Library; Members Public ,X;" "J. y., Oar6WIVI Jane Taylor $ 3,595.00 $ 133.75 $ 133.75 $ 133.75 $ 133.75 000179 rage i of i Munro, Darlene From: Monika Beuning [mbeuning@library.aurora.on.ca] Sent: February 19, 2004 10:37 AM To: Munro, Darlene Subject: 2003 Library Board Remuneration and Expenses This will confirm that no remuneration was paid to any Library Board members in 2003, Expenses were paid as follows: Jane Taylor, Ontario Library Association SuperConference $125 + tax = $133.75 Thanks Monika Monks Beuning - Administrative Coordinator Aurora Public Library 15145 Yonge Street Aurora ON L4G 1M1 Tel: (905) 727-9494 Ext 222 Fax: (905) 7273454 19/02/04 00,0180 TOWN OF AURORA AGENDA ITEM # 6 GENERAL COMMITTEE REPORT No. PW04-008 SUBJECT: Reconstruction of St. John's Sideroad, Yonge Street to Bayview Avenue — McKenzie Marsh Area Detailed Design FROM: W. H. Jackson, Director of Public Works DATE: March 2, 2004 RECOMMENDATIONS That the upgraded landscape design concept for St. John's Sideroad at the McKenzie Marsh as generally described in Report No. PW04-008 be approved; THAT additional funds be allocated from the appropriate Development Charges Reserve for the upgraded landscape design concept for St. John's Sideroad at the Mckenzie Marsh in the order of. 1. $49,000 (plus GST) for the redesign and construction of upgraded street lighting; and 2. $95,000 (plus GST) for the construction of the boardwalk, landscaping, and planting areas. THAT the above additional funds be incorporated into the 2004 Development Charge update; THAT the Regional Municipality of York be informed of Council's decision in this matter; and THAT Staff be requested to report further to Council on the results of the tender for the St. John's Sideroad reconstruction. BACKGROUND The reconstruction of St. John's Sideroad from Yonge Street to Bayview Avenue was the subject of an Environmental Assessment (EA), which was finalized in 2000. Since then, Regional staff have, with input where appropriate from Town staff, prepared the detailed design and supporting documents in anticipation of shortly tendering this project. The single main item outstanding is the treatment to be applied throughout the McKenzie March 2, 2004 -2- Report No. PW04-008 Marsh area (a distance of about 350m). Figures 1 and 2 show the existing conditions on the subject section of road. COMMENTS The original design for the reconstruction of St. John's Sideroad through McKenzie Marsh (the "Marsh") consisted of the basic road, safety and streetlight requirements together with minimal landscape features. Figure 3 is a computerized representation of this design. It is recognized, however, that the Marsh, which is a designated "Provincially Significant Wetland" is important to the Town and the Region. The Marsh forms an integral part of the Nokiidaa trail system and is the connection between Aurora and Newmarket. Map No. 1 shows the Nokiidaa Trail system through the subject area. It is also important to note that once St. John's Sideroad is reconstructed, no major road works are anticipated again in the Marsh area for 50 +/- years. In consideration of the above, Town staff together with Regional staff, road design consultants and landscape/urban design consultants undertook a critical review of the "original design". The rest of this report describes the results of this review as well as the partnership that has evolved between the Town and the Region with respect to the design and cost sharing for the road treatment through the Marsh. Features Considered During Design Review Recognizing that the Marsh is a "people" oriented location where pedestrians and cyclists alike can enjoy the ambience and wildlife available in the Marsh, the review group examined in detail the practicality of including features such as: A meandering boardwalk; The provision of additional lookouts on the boardwalk; • The elimination of the guardrail on both sides of the road; • Maximize the number of street trees; The use of ledgerock and decorative bollards where appropriate in place of the guardrail; • Various levels of planting areas; and • Upgraded, more pedestrian oriented, streetlighting. Landscape/Boardwalk Consideration The upgraded design presented in this report incorporates a meandering boardwalk with an additional lookout. The guardrail presented in the original design has been replaced by ledgeroad/landscape treatments, planting beds and the use of bollards to help define the boulevard. March 2, 2004 - 3 - Report No. PW04-008 Figures 4 through 9 inclusive are computer representations of the upgraded design features. Roadway Illumination To compliment the upgraded landscape design, it is proposed to include decorative poles, brackets and luminaries on the north side of the road and decorative brackets and luminaries attached to the hydro poles on the south side, all similar to those used on Wellington Street East. These decorative streetlighting features are only proposed through the Marsh area. On either side of the Marsh, the standard "cobra head" streetlighting fixtures will be installed. As noted above, the upgraded streetlighting design can be seen in Figures 4 to 7 inclusive. Figures 10 and 11 provide additional views of this project. OPTIONS During the course of the design review, many options, combinations and permutations of the individual design elements were considered and this report presents the optimal "upgraded" design. It must be understood, however, that many of the elements are not mutually exclusive. For example, the guardrail shown in the original design can be replaced by strategically placed planting beds, ledgerock and bollards. Elimination of these various landscape features results in the need to utilize the original guardrail design. Based on the above, the options available basically reduce to two as presented below. Roadway Illumination Council may wish to continue the use of standard "cobra head" streetlighting fixtures on concrete poles and hydro poles through the Marsh area. Landscape/Boardwalk Council may wish to proceed with the original design as shown in Figure 3. CONCLUSIONS An upgraded design for the treatment of St. John's Sideroad through the McKenzie Marsh has been presented. As is typical, upgrades cost more than the original design and these additional costs are also presented in this report. Given the significance of the Marsh, Council may wish to seriously consider the proposed upgrades. V 00183 March 2, 2004 - 4 - Report No. PW04-008 Staff has reviewed various options and with the success of the treatment on Wellington Street plus the aforementioned importance of the Marsh, staff are of the opinion that the proposed upgrades and associated budget increases are appropriate. FINANCIAL IMPLICATIONS As noted above, the upgraded design will cost more than the original design. It is important to realize that the Region has acknowledged the significance of the subject area by partnering with the Town both in the design process and cost sharing. As noted in the Options section, the streetlighting and landscape elements are the two areas that could be considered separately and accordingly, the costs are presented separately below. Streetlighting To redesign and construct the upgraded streetlighting proposal consisting of decorative poles, brackets and luminaries on the north side of the roadway, and decorative brackets and luminaries attached to proposed hydro poles on the south side of the roadway will cost an additional $49,000. The style will be similar to that on Wellington Street and the work includes the redesign of the new Lighting to satisfy the appropriate design criteria (i.e. illumination levels) and dispersion so as not to affect the McKenzie Marsh habitat. All streetlighting costs are borne by the Town. It is further noted that until the project has been tendered the actual costs will not be known. Tender costs might be higher or lower than the cost estimate prepared by the consultant. Landscaping The upgraded landscaping through the Marsh consists of a number of elements such as the boardwalk & railing, street trees, bollards, ledgerock, boulevard treatments and an irrigation system to help maintain the vegetation. In total, the estimated cost to provide all of these upgraded features is about $435,000 compared to $350,000 for the original design. Through the aforementioned partnership with the Region, it has been determined that the Town would be responsible for $245,000 of the upgraded design with the Region responsible forthe remaining $190,000. The comparable numbers for the original design are $230,000 for the Town and $119,000 for the Region. Table No. 1 shows the comparison between the original design, upgraded design and the original budget for the items discussed in this report. ('CO184 March 2, 2004 - 5 - Report No. PW04-008 Table 1: Comparison between Capital Budget and Current Cost Estimate Streetlighting Costs ($)* Landscaping Costs ($) Town Region Town Region Original 24,000 N/A 230,000 120,000 Design Upgraded 70,000 N/A 245,000 190,000 Design Approved 21,000 N/A 150,000 NIA Budget Variance — +49,000 N/A +95,000 NIA Budget Vs Upgraded Design * Design and Construction As can be seen from the above Table, funds additional to that budgeted are required for both the upgraded streetlighting and landscape features. It should also be noted that even for the original design, the landscaping budget is insufficient by some $80,000. Based on the current sources of funding, staff is of the opinion the additional funds should be obtained from the appropriate Development Charge Reserve accounts. LINK TO STRATEGIC PLAN Goal "D" - Conserving Our Natural And Cultural Heritage is supported by maintaining high standards for trails, parks, open space systems and bicycle routes. ATTACHMENTS Figures 1 to 11 - Project Overview: Landscape Design Concepts Map 1 — Location of Nokiidaa Trail Appendix A — 2001 Capital Budget Sheet for Public Works portion of the project Appendix B — 2003 Capital Budget Sheet for Boardwalk PRE -SUBMISSION REVIEW Management Team Meeting — February 25, 2004 Prepared by. Anca Mihail, Engineering Assistant, ext. 4383 W. H. Jack Director of Public Works C00,185 Map 1. Location of Nokiidaa Trail W a E w z ore 3 Z ago W tv � � cC dRg W o WW z m iII 000197 Appendix A TOWN OF AURORA 2WI CAMAL BUDGET ANALYSIS BY PROJECT )EPARTMEAT: public works Department PROJECT: Construction of SidewaU6 Mutniatmoo. and Watermains on St. John's Sidetoad. Yotese Sneecto Ea!view Avenue PURPOSE: To provide for the provision of sidewalks and Mu nination. and the construction of wasioQ,= as Part of thereconstructionof St. John's Sideroad by the Region of York roFORMASCF/ACTT«' 1 INCREASE (DECREASE) • To provide increased levels of service to residents • The construction of this watermaln will add apptotdmateiy Min to the existing water distribution network: EFFECT ON, vF OPE ATTIC BUDGETS 2001 2002 2003 INCREASE (DECREASE) M00 SALARIES S500 OTHER COSTS S1000 TOTAL PROJECT COST/FfNAtiCTNG TOTAL PROJECT COST $1.043.000 FINANCING: CURRENT LEA')' 1158.700 GRANTS RESERVE FUND • (Sperif. S984JW OTHER TOTAL FINANCING SIA43.000 EXPLAN AT I O N S M I G H L 1 G HTS: Reserve Fund - Deveiopment Charge Reserve (S435.500 for watermain and S528.80D for sidewalks and llhmtmauon) The Region': current scneduie is to :ender this pro]= in Inge 2001• with construction occurring in 20M These monies will not oe spent this year. but must be allatatnd in 2001 so that the Town can confum m the Reason that mese items arc to be uichtded in the Appendix B TOWN OF AURORA Department Priority: 2003 CAPITAL BUDGET LSAC Priority: 4 ANALYSIS BY PROJECT :PARTMENT: Leisure Services Department , ACCOUNT NO. IOJECT: St. John's Sideroad TraiUBoard Walk To implement continuation of the Town's Trail System/Nokiidaa Trail. ERFORIIIANCE/ACTIVTTY MEASURES (CREASE (DECREASE To increase recreational trail opportunities in the Town of Aurora. FFECT ON FUTURE OPERATING BUDGETS NCREASE (DECREASE) ALARIES )THER COSTS PROJECT COSTIFINANCING FINANCING: CURRENT LEVY GRANTS RESERVE FUND - Development Charges Reserve OTHER - Nokiidaa Trail Contribution - Cash -In -Lieu of Parkland TOTAL FINANCING EXPLANATIONSIHIGH LIGHTS: Elevated boardwalk proposed to be constructed on the north side of St. John's Sideroad in conjunction with the Region of York St. John Sideroad widening project. Approximately 350 linear metres of trail /board walk is required in this area to safely cross the McKenzie Marsh. This important section oftrail will connect the entire north/south Nokiidaa Trail from the Vandorf Road in the south to the Town of Newmarket boarder in the north. KU 9 ADDITIONAL ITEMS TABLED FOR GENERAL COMMITTEE MEETING Tuesday, March 2, 2004 ➢ Request for delegation from Mr. AI Wilson Re: Waste Diversion ➢ Request for delegation from Ms Kathy Banks Re: Request for licensing of Aurora eateries ➢ Request for delegation from Mr. Ben Kestein Re: Item #6 a Reconstruction of St. John's Sideroad ➢ Memorandum from the Director of Leisure Services Re: Request for a Special General Committee meeting to discuss the public/private partnership solicitation for the new Recreation Complex Par izza, Bob From: AI C. Wilson Sent: Sunday, February To: Pani=a, Bob Cc: Jackson, Wayne Subject: Request for Delegation Status This is to confirm my request for delegation status at the General Committee meeting of the Aurora Council an Tuesday March 2, 2004. My presentation is to address the the current waste diversion in Aurora and encourage council to Proactively take measures that will improve our ratios. This includes: A) Request for a Regional Waste Audit to be undertaken specific for the Town of Aurora B) Request to the Region to lobby provincial ministry officials to address the short -comings in the current packaging standards within the Province C) Mandate the proposed new 'Environment Advisory Committee' to address the collection issues and make respective recommendations to be implemented to contribute to raising Aurora's diversion rate to above the Region's average within 3 years. I will provide more specific details to support such a request during my presentation. Please confirm Sincerely, Al Wilson 1 03/02/2004 88:56 9057274791 DR ROBERT 19ILLIAMS PAGE 01 Kathy Banks 14 Keystone Crt AURORA, Ontario L4G 3113 March 1 /04 Notification of Intention to be a Delegate Dear Mr. Panizza: Please consider this my written request to appear as a delegate at the General Committee meeting of the Town of Aurora on Tuesday March 2/04. The purpose of this delegation is to ask for: the consideration of and support of our current council in initiating a municipal licensing of Aurora eateries. Upon my investigation I have learned that 3 municipalities in our area have this licensing in place already, and that without it, the town is powerless to deal with problems that may arise. I hope this brief ex lanation is adequate for what you need. If not, please call me at before you leave today and I will be happy to modify it as you see fit. Many thanks *at) H. Keslein Town of Aurora 100 John West Way A�rora, ON. L46 6J1 At C.C. Bob Panlua Faye to: 00S- 726- 4732 March 2, 2004 Dear Bob Panlzzaq l am writing ywr to request yourgood ofAces to grant to ly Bon Kostelny agent for P.A.R,K,s, delegate status as it appertalas to to-n/ghts meeting to subject, Reconstruction of St. Johns siderood, yonge street to lndustdal pkwy. Known as the McKenrle Marsh. Thanking you in advance, / remafny s/ncerely, Bon Kastole par. ' ptione� ""alb N T E R O F F I C E To: Mayor and Members of Council From: Allan D. Downey, Director of Leisure Services Subject: Public/Private Partnerships Date: Tuesday, March 2, 2004 MEMO Council at their meeting of February 24, 2004 approved the following recommendation: 4. Public/Private Partnership Solicitation THAT, the Project Manager immediately undertake a public process to solicit requests for expressions of interest from the private sector to partner with the Town in the construction of the facility and report back as to the viability of any of the potential arrangements identified through the process as soon as possible. The Project Managerfor the new Recreation Centre as part of their responsibilities, are to assist in the solicitation and evaluation of Public/Private Partnerships. Staff have met with MHPM Project Managers Inc. to discuss the issues related to the solicitation of Public/Private Partnerships and the process required to meet our needs. During our discussion it became evident that in order to properly explore this issue, and ensure that we are proceeding in an appropriate manner, that a short presentation to Council would not be sufficient. The issues surrounding a partnership are complex and require dialogue to properly explore all aspects of a partnership and its inherent advantages and disadvantages with regards to facility fit, financing and timing of the project to mention a few. Staff are suggesting that Council may wish to considera special meeting of the General Committee on March 11, 2004 to discuss this issue in more detail. The Consultants are prepared to make a presentation at this working session regarding Public/Private Partnerships and would elaborate on the steps required to solicit, evaluate and enter into an Agreement with a private partner, obtaining direction in this regard where appropriate. Should Council agree with this approach, staff request that the date and time of this working session be confirmed, so that public notification can be provided. Allan D. Downey, Director of Leisure Services. ADD/dp cc: Larry Allison, C.A.O.