7.       PROVINCIAL TRANSIT CAPITAL FUNDING and Ontario Bus Replacement Program

 

Subvention d'immobilisation provinciale destinée au transport en commun

 

 

Committee Recommendations

 

That Council:

 

1.      Approve the by-law, provided as Document 1, confirming the City's commitments with respect to the Provincial transit capital grant of $27,185,031;

 

2.      Authorize the Mayor and City Treasurer to sign the "Amending Letter of Agreement to the Ontario Bus Replacement Program (OBRP)", provided as Document 2, in order to receive additional funds of $1,271,837; and

 

3.      Approve an amendment to By-law 2007-265, provided as Document 3, authorizing the signing of the "Amending Letter of Agreement".

 

 

Recommandations du comité

 

Que le Conseil :

 

1.      Approuve le règlement, présenté dans le Document 1, qui confirme les engagements de la Ville à l’égard de la subvention d’immobilisation provinciale de 27 185 031 $ destinée au transport en commun;

 

2.      Autorise le maire et le trésorier municipal à signer la « lettre d’entente rectificative du Programme ontarien de remplacement des autobus (PORA) », présentée dans le Document 2,  afin de recevoir des fonds supplémentaires totalisant 1 271 837 $;

 

3.   Approuve une modification au Règlement municipal 2007-265, présentée dans le Document 3, autorisant la signature de la « lettre d’entente rectificative ». 

 

 

Documentation

 

1.   City Treasurer’s report dated 7 March 2008 (ACS2008-CMR-FIN-0010).

 


Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

7 March 2008 / le 7 mars 2008

 

Submitted by/Soumis par : Marian Simulik, City Treasurer, Trésorière municipale

 

Contact Person/Personne ressource : Marian Simulik,
City Treasurer, Trésorierè municipale

Financial Services/Services financiers

(613) 580-2424 x 14159, marian.simulik@ottawa.ca  

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2008-CMR-FIN-0010

 

 

 

SUBJECT:

PROVINCIAL TRANSIT CAPITAL FUNDING and Ontario Bus Replacement Program

 

 

 

OBJET :

Subvention d'immobilisation provinciale destinée au transport en commun ET pROGRAMME ONTARIEN DE REMPLACEMENT DES AUTOBUS

 

 

 

 

REPORT RECOMMENDATIONS

 

That the Corporate Services and Economic Development Committee recommend Council:

 

1.      Approve the by-law, provided as Document 1, confirming the City's commitments with respect to the Provincial transit capital grant of $27,185,031;

 

2.      Authorize the Mayor and City Treasurer to sign the "Amending Letter of Agreement to the Ontario Bus Replacement Program (OBRP)", provided as Document 2, in order to receive additional funds of $1,271,837; and

 

3.      Approve an amendment to By-law 2007-265, provided as Document 3, authorizing the signing of the "Amending Letter of Agreement".

 

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique recommande ce qui suit au Conseil :

 

1.      Approuver le règlement, présenté dans le Document 1, qui confirme les engagements de la Ville à l’égard de la subvention d’immobilisation provinciale de 27 185 031 $ destinée au transport en commun;

 

2.      Autoriser le maire et le trésorier municipal à signer la « lettre d’entente rectificative du Programme ontarien de remplacement des autobus (PORA) », présentée dans le Document 2,  afin de recevoir des fonds supplémentaires totalisant 1 271 837 $;

 

3.      Approuver une modification au Règlement municipal 2007-265, présentée dans le Document 3, autorisant la signature de la « lettre d’entente rectificative ». 

 

 

BACKGROUND

 

In the 2007 Ontario Economic Outlook and Fiscal Review (Fall Economic Statement), the Province indicated that one-time funding would be provided to municipalities to improve and expand public transit.  On February 29, 2008, Jim Watson, MPP Ottawa West-Nepean, announced that the City of Ottawa was allocated $27,185,031 of this one-time funding. In order to receive these funds, the Province requires the City of Ottawa to approve a by-law confirming the use of these funds and reporting requirements.

 

Additional funding is also being made available under the OBRP.  In order to access these additional funds, the Province requires the Mayor and City Treasurer to sign the Amending Letter of Agreement and authorize the amendment to the by-law approved in 2007.

 

 

DISCUSSION

 

Recommendation 1 - Provincial Transit Capital Funding

 

On February 29, 2008, the Province announced that the City of Ottawa would receive $27,185,031 as a one-time grant for municipal transit capital purposes.  Prior to receiving this funding, the Province requires that City Council approve a by-law acknowledging the provincial requirements regarding these funds.  This by-law, attached as Document 1, outlines that this funding:

 

·          must be used for municipal transit capital expenditures;

·          must be audited by the City's external auditor and reported to the Ministry of Transportation on an annual basis; and

·          will be deducted, in full or in part, from future provincial transit funding allocations, if the City is not in compliance with the terms set out above.

Regarding transit capital expenditures, the Province outlines various examples to which these funds may be allocated.  These include those that keep the transit system in a state of good repair, increase transit ridership, improve accessibility for people with disabilities, manage congestion, support the environment and modernize equipment and facilities.  Purchases could include conventional and specialized transit vehicles, bus engines, bus shelters, hybrid buses (more fuel efficient and lower emission vehicles), security equipment (cameras and terminal security lighting), fare collection systems, communication systems and GPS systems.

 

Recommendations 2 and 3 - Ontario Bus Replacement Program (OBRP)

 

On March 22, 2007, the City entered into an agreement with the Ministry of Transportation regarding the replacement of transit buses.  The OBRP was designed to recognize the need for municipalities to increase public transportation reliability, reduce municipal operating costs and invest in the renewal of transportation systems.  At that time, the Province indicated that the City would receive $7,067,420 and Council approved the allocation of these funds to the City's Bus Replacement Program and Para-Transpo Vehicles.

 

The Province has recently advised that the City will receive an additional $1,271,837 under this program for a total of $8,339,257.  As specified in the recommendations, City Council must authorize the signing of the amendment to the original agreement and an amending by-law to access these funds. These are provided as Documents 2 and 3.

 

CONSULTATION

 

This report is administrative in nature and no public consultation has been undertaken.

 

FINANCIAL IMPLICATIONS

 

Details regarding the application of the provincial capital transit grant of $27,185,031 and the additional OBRP grant of $1,271,837 will be provided in future reports as appropriate.

 

SUPPORTING DOCUMENTATION

 

Document 1 - Authorizing By-law for Provincial Transit Capital Grant

 

Document 2 - "Amending Letter of Agreement to the Ontario Bus Replacement Program"

Document 3 - Amendment to By-law 2007-265 regarding the Ontario Bus Replacement Program

 

DISPOSITION

 

The Council report, signed agreements and authorizing by-laws will be forwarded to the Ministry of Transportation.


Document 1

BY-LAW NO. 2008-

 

                        A by-law of the City of Ottawa to confirm the City of Ottawa’s commitments with respect to receipt of a transit capital grant from the Province of Ontario.

 

                        The Council of the City of Ottawa enacts as follows:

 

1.                     In consideration for the receipt of the sum of $27,185,031.00 from the Province of Ontario for one-time funding to improve public transit in the City of Ottawa by such means as improving the state of good repair, increasing transit ridership, improving accessibility for persons with disabilities, managing congestion and modernizing equipment and facilities, the Council of the City of Ottawa acknowledges and agrees with the following conditions:

(a)                the funds shall be used only for municipal transit capital expenditures;

(b)               the expenditure of the funds shall be audited by the City’s external auditor and reported to the Ministry of Transportation on an annual basis; and

(c)                the funds shall be deducted in full or in part from future provincial transit funding allocations if the City is found not to be in compliance with the provisions of clauses (a) and (b).

 

                        ENACTED AND PASSED this 26th day of March, 2008.

 

 

 

 

                                    CITY CLERK                         MAYOR


 





                                                                                                                                    Document 3 

BY-LAW NO. 2008-

 

                        A by-law of the City of Ottawa to authorize the entering into of an amending agreement with the Province of Ontario relating to funding provided by the Province of Ontario to the City under the Ontario Bus Replacement Program.

 

                        WHEREAS the Province has provided for funding to support the replacement of aging municipal transit buses;

 

                        AND WHEREAS the Province represented by the Ministry of Transportation and the City have entered into a letter of agreement dated March 22, 2007 relating to the terms and conditions of the funding to the City under the Ontario Bus Replacement Program;

 

                        AND WHEREAS the Province wishes to support the capital costs of replacing transit buses and to provide additional funding to the City;

 

                        AND WHEREAS the Province has specified that, as a condition precedent for receiving these additional funds, the City must enter into an amending Letter of Agreement entitled: “Amending Letter of Agreement to the Ontario Bus Replacement Program (OBRP) between Her Majesty the Queen in right of the Province of Ontario, represented by the Ministry of Transportation for the Province of Ontario (the “Ministry”) and the City of Ottawa (the “Municipality”) (the “Amending Letter of Agreement”);

 

                        THEREFORE the Council of the City of Ottawa therefore enacts as follows:

 

1.                     The Mayor and the Treasurer are hereby authorized to execute the amending Letter of Agreement dated February 25, 2008 related to the Ontario Bus Replacement Program with the Province of Ontario through the Ministry of Transportation for the replacement of aging municipal transit buses.

 

 

                        ENACTED AND PASSED this 26th day of March, 2008.

 

 

 

 

                                    CITY CLERK                         MAYOR