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THE CORPORATION OF THE MUNICIPALITY OF CHATHAM-KENT CHATHAM-KENT

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					           THE CORPORATION OF THE MUNICIPALITY OF
                      CHATHAM-KENT

                    CHATHAM-KENT COUNCIL MEETING

     COUNCIL CHAMBERS, CHATHAM-KENT CIVIC CENTRE

October 6, 2008                                                           6:00 P.M.

1.    CALL TO ORDER

The Mayor called the meeting to Order.

Present were: Mayor Randy Hope, Councillors Brown, Crew, Clarke, Faas, Fluker,
              Gilbert, Herman, McGregor, Parsons, Pickard, Pinsonneault, Robbins,
              Stirling, Sulman, Vercouteren, and Weaver

Absent:           Councillor King


2.    APPROVAL OF SUPPLEMENTARY AGENDA


3.    DISCLOSURES OF PECUNIARY INTEREST
      (DIRECT OR INDIRECT) AND THE GENERAL NATURE THEREOF
Councillor Vercouteren declared a pecuniary interest regarding a property sale that was
discussed in Closed Session.

Councillor Pinsonneault declared a pecuniary interest #9(a) – Proposed structural
renovations to Fire Station #5 Chatham North (Tupperville) and 9(b) – Proposed
structural renovations to Station 17 Merlin, as he is a volunteer firefighter.

Councillor McGregor declared a pecuniary interest with respect to Item #7 of the Closed
Session Agenda as he is an abutting land owner.

Councillor Sulman declared a pecuniary interest with respect to Item #7 of the Closed
Session Agenda due to a client.

Mayor Hope declared a pecuniary interest with respect to a potential land sale
discussed in Closed Session.

Councillor Herman moved, Councillor Stirling seconded:

“That Item #10(a) – Capitol Theatre Approval to Proceed with Construction be
moved and discussed after Item #14 (a) – Approval of the October 6, 2008 Council
Information Package”

The Mayor put the Motion
                                                                        Motion Carried




Chatham-Kent Council at its meeting held on October 6, 2008
Page 1 of 38
4.    RECOGNITION
(a)   Recognition of the Wallaceburg Bantam Griffins, Ontario Lacrosse Association
      Champions

Mayor Hope, Councillor Parsons and Councillor McGregor presented the Wallaceburg
Bantam Griffins with certificates of recognition for winning the 2008 Ontario Lacrosse
Association B Championships. Mayor Hope congratulated the team on their
accomplishments.


(b)   Recognition of the Chatham-Kent Home Builders for their contribution to the
      Chatham-Kent Health Alliance MRI Campaign

Mayor Hope recognized the leadership of the Chatham-Kent Home Builders Association
in bringing together community partners, contractors, trades, business, and volunteers
who in three short days built an energy star home to be donated as part of the
Chatham-Kent Health Alliance MRI Campaign. The success of this remarkable
achievement in support of a worthwhile cause to serve the citizens of Chatham-Kent is
a true testament of their generosity, commitment, and incredible efforts of so many
community champions. This is a tribute to the dedication and the community spirit of
the Chatham-Kent Home Builders Association.


(c)   Recognition of the Ontario Senior Games, 2008 Actifest Medal Winners

The Director of Seniors Services explained that the Ontario Senior Games Association
mandate is to provide the opportunity for people ages 55 + to increase their social
interactions with others, increase their physical and mental well-being, and maintain and
enhance their psychological and physiological well-being through participating in
recreational activities and sports. The Ontario Senior Games is hosted every summer
and winter throughout the municipality.

Mayor Hope presented certificates of recognition to the following medal winners:
    Joyce Hensel won Silver in Women’s B Flight Golf
    Norbert Bechard won Silver in Men’s B Flight Golf


5.    DEPUTATION

(a)   Amanda Murray, President, South West Area Recreation Guild re South West
      Area Recreation Guild re Southwestern Ontario In Motion Health Promotion
      Strategy

Ms. Murray explained that the purpose of the South West Area Recreation Guild is to
provide opportunities for professional and personal growth of leisure providers in south
west Ontario by sharing resources, by introducing and maintaining educational, social
and developmental initiatives and by acting as an advocate on leisure issues. She
further explained that In Motion is a comprehensive, community based approach that
uses public awareness, education and motivation strategies to reach all corners of the
community. The intent of In Motion is to ingrain understanding and behaviour changes
into the culture and fabric of the community.

Ms. Murray requested that the Municipality of Chatham-Kent participate in the In Motion
Launch on Wednesday, October 8, 2008 at 12:00 p.m. which is being held as part of
National In Motion week observed across Canada from October 6 – 10, 2008.

Councillor McGregor explained that the Board of Health has adopted the

Chatham-Kent Council at its meeting held on October 6, 2008
Page 2 of 38
recommendation and will have a team participating in the In Motion Launch. He
encouraged other Councillors and members of the public to attend this event.


6.    PRESENTATION
(a)   Ralph Roels, Chair and Rick Francis, Committee Member, Chatham-Kent
      Accessibility Advisory Committee re Chatham-Kent 2008 Facility Accessibility
      Design Standards (see attached report)

                            MUNICIPALITY OF CHATHAM-KENT

                      COMMUNITY AND DEVELOPMENT SERVICES

TO:               Mayor and Members of Council

FROM:             Ralph Roels
                  Chair, Chatham-Kent Accessibility Advisory Committee

DATE:             September 25, 2008

RE:               Chatham-Kent 2008 Facility Accessibility Design Standards


RECOMMENDATIONS

It is recommended that:

1. The Municipality of Chatham-Kent 2008 Facility Accessibility Design Standards be
   approved.

2. The Standards be utilized in the design and construction of new facilities, as well as
   in the renovation of existing facilities that are owned, leased or operated by the
   Municipality of Chatham-Kent.

BACKGROUND

The Chatham-Kent Accessibility Advisory Committee was established in 2003. The
Committee is a working committee of Council that includes approximately 25
representatives from organizations that either include members or work with people who
may have various ranges of abilities or may encounter barriers. In addition, the
Committee includes one Council representative and other municipal staff.

With its mission “…to make all facilities in Chatham-Kent accessible to all people of all
abilities” and its vision of “a barrier free Chatham-Kent”, the Committee reviews
municipal properties, programs and services and identifies and provides
recommendations to eliminate existing and potential barriers to accessibility.
Recommendations are also provided to other areas of the Corporation which may offer
accessible services or be impacted by same (e.g. accessible transit, sidewalk
accessibility, parking, etc.).

COMMENTS

Beginning in 2007, the Committee met with the Chief Building Official and
representatives of other municipal departments to draft the Chatham-Kent 2008 Facility
Accessibility Design Standards. Utilizing the Facility Accessibility Design Standards
document created by the Corporation of the City of London as a reference, the
Committee has drawn up a document that addresses the specific needs of Chatham-

Chatham-Kent Council at its meeting held on October 6, 2008
Page 3 of 38
Kent citizens of all abilities.

The standards address accessibility requirements for the design and construction of
new facilities, as well as the retrofit, alteration or addition to existing facilities that are
owned, leased or operated by the Municipality of Chatham-Kent.

The document has been reviewed by the Chief Building Official who has found the
standards to either meet or exceed the requirements of the Ontario Building Code.

Although compliance with the standards is not mandatory for non-municipal properties,
it is being encouraged by the Chief Building Official that operators of facilities within
Chatham-Kent utilize the standards.

COMMUNITY STRATEGIC PLAN

The recommendations in this report support the following objectives and strategic
directions:

A: Health – We are a healthy community
     A1: Provide sufficient capacity to sustain community health and economic
           growth

E: Civic Engagement - We are an engaged community
      E3: Enhance networking and communication opportunities throughout Chatham-
           Kent

Desired Outcomes

       •   Develop plans that respond to the demographic changes in the community
           and the needs of an aging population

       •   Focus on information sharing and developing collaborative initiatives to
           address existing and emerging community issues and opportunities

The recommendations will not adversely impact the remainder of the Community
Strategic Plan.

CONSULTATION

The General Manager of Environmental and Engineering Services and City Engineer for
the City of London was contacted and provided permission to adapt the document
created by the City of London Municipal Accessibility Advisory Committee for use in
Chatham-Kent.

The draft document was forwarded for review to the Mayor, EMT, SMT, the Building
Maintenance Coordinator and the Acting Director of Recreational Facilities.

FINANCIAL IMPLICATIONS

If approved, the costs associated with implementing the standards will be built into the
cost of each construction project.

Prepared by:


Ralph Roels, Chair
Chatham-Kent Accessibility Advisory Committee



Chatham-Kent Council at its meeting held on October 6, 2008
Page 4 of 38
Mr. Roels explained that the Chatham-Kent Accessibility Advisory Committee ensures
that all municipal properties and services are accessible to all people of all abilities. He
noted that Rick Francis will provide an overview of the Chatham-Kent Facility
Accessibility Design Standards.

Mr. Francis explained that the Chatham-Kent Facility Accessibility Design Standards
addressed accessibility requirements for municipal properties only. He stated that it
applies to new or renovated property and allows for all people of all abilities barrier free
use of public areas. Mr. Francis reviewed some of the features of the design standards
which include:

      Equitable use – this design is useful and marketable to people with diverse abilities
      Flexibility in use – the design accommodates a wide range of personal preferences
      and abilities
      Simple and intuitive use – use of this design is easy to understand regardless of
      the users experience, knowledge, language skills, or current concentration levels
      Perceptible information – this design communicates necessary information
      effectively to the user regardless of ambient conditions or the users sensory
      abilities
      Tolerance for error – this design minimizes hazards and the adverse
      consequences of accidental or unintended actions
      Low physical effort – this design can be used efficiently and comfortably with a
      minimum of fatigue
      Size and space for approach and use – appropriate size and space are provided
      for approach, reach, manipulation, and use regardless of the users body position,
      size, posture or mobility.

Mr. Francis requested that Council help to ensure that the Municipality of Chatham-Kent
continues this progressive momentum and adopt the Chatham-Kent Facility
Accessibility Design Standards.

Councillor Crew moved, Councillor Faas seconded:

“That

1.    The Municipality of Chatham-Kent 2008 Facility Accessibility Design
      Standards be approved.

2.    The Standards be utilized in the design and construction of new facilities, as
      well as in the renovation of existing facilities that are owned, leased or
      operated by the Municipality of Chatham-Kent.”

Councillor Crew thanked the committee members and staff for working diligently on
these standards. She felt that Council has the responsibility to ensure that all citizens of
Chatham-Kent have access to municipal services. Councillor Crew encouraged Council
to support the Chatham-Kent Accessibility Committee and adopt the design standards.

Councillor Fluker noted the interest in trails in Chatham-Kent. He questioned if the
Accessibility Committee will be providing input on the design of these trails. Mr. Roels
explained that the Accessibility Committee worked on the design of the boardwalk in
Erieau and some members of the Accessibility Committee are also part of the Active
Communities Committee.

Councillor Herman thanked the committee for educating Council and the citizens of
Chatham-Kent on what changes need to take place in the community. She noted that
the Accessibility Advisory Committee is also available in the design of the Gable Rees
Rotary Pool in Blenheim.



Chatham-Kent Council at its meeting held on October 6, 2008
Page 5 of 38
In response to a question by Councillor Parsons, Mr. Roels explained that the design
standards originated with the City of London who hired a consultant to develop the
standards. There are presently 56 communities and organizations making use of these
design standards.

Councillor Parsons questioned how these design standards might impact retrofitting an
existing municipal building. The Director of Building, Enforcement and Licensing
explained that there may be instances where the existing structure will not
accommodate these standards.

Mayor Hope congratulated the committee for coming before Council and noted his
appreciation of their hard work and dedication. He felt that the committee needs to
have a louder voice in the community.

The Mayor put the Motion
                                                                        Motion Carried


(b)    Chatham-Kent Police Services Board – Business Plan / Protocol Agreement

                              Municipality of Chatham-Kent
                           Chatham-Kent Police Services Board

To:               Mayor and Members of Council

From:             Chatham-Kent Police Services Board and
                  Carl Herder, Chief of Police

Date:             September 22, 2008

SUBJECT:          BUSINESS PLAN / PROTOCOL AGREEMENT


RECOMMENDATION:

It is recommended that:

      1. The Municipality of Chatham-Kent Council directs the Chief Administrative
         Officer to negotiate a Protocol Agreement with the Chatham-Kent Police
         Services Board. This agreement will address the sharing of information between
         Council and the Police Services Board, including the type of information to be
         shared and the frequency of sharing such information.

BACKGROUND:

Whereas the Chatham-Kent Police Services Board pursuant to Section 31(1) of the
Police Services Act as amended (Bill 105), is responsible for the provision of adequate
and effective police services in the Municipality of Chatham-Kent and is required by
Section 32 (1) of Ontario Regulation 3/99 (Adequacy Standards), to enter into a protocol
agreement with Municipal Council.

COMMENTS:

The Police Services Act requires the Police Services Board to develop and implement a
Business Plan every three (3) years.

The Business Plan must involve input from the community, service clubs, business
groups, school boards, hospital groups and Municipal Council.

Chatham-Kent Council at its meeting held on October 6, 2008
Page 6 of 38
The plan is of utmost importance in developing strategic directions and in the
development of the Police Service’s annual budget.

The Protocol between Municipal Council and the Police Services Board is one issue that
must be addressed in the Business Plan.

The Business Plan must also address several other issues, including but not limited to:
   • Core business functions and objectives in the delivery of services
   • Community based crime initiatives, community patrol and criminal
      investigations
   • Community satisfaction
   • Emergency calls for service
   • Violent crime and clearance rates
   • Property crimes and clearance rates
   • Youth crime and clearance rates
   • Police assistance to victims of crime
   • Road safety
   • Information technology
   • Resource planning
   • Police facilities

The present Business Plan expires in January 2009.

In order to enhance a positive working relationship between the Police Services Board,
the Chief of Police and our community it is imperative that Municipal Council provide
information and guidance to the process of developing the Business Plan. Each
member of Council is encouraged to complete the public survey. The Director of Legal
Services has agreed to collect completed surveys from Council.

The development of the Business Plan is contingent on three stages:

       1.   Complete an internal needs survey (employee needs/opinions).
       2.   Complete an external needs survey (community input).
       3.   Develop and forecast an annual budget (3-year supplementary
            requests).

The public survey can be located on the Chatham-Kent Police Service Web Site. In
addition, hard copies are located at all Municipal Service Centres, all Police Service
facilities and in communities that have neither a Municipal Centre nor police facility they
can be located at the local variety store or restaurant.

Copies of both the Internal and the Public Survey are included for Council’s information.

The Protocol Agreement will require the Chatham-Kent Police Service to attend
Municipal Council meetings, the frequency to be determined by Council, to advise
Council and the public regarding operational issues and changes to deployment
strategies.

The Chatham-Kent Police Services Board will also provide Council, on a monthly basis,
copies of their public agenda meetings and the minutes relating to those meetings.

COMMUNITY STATEGIC PLAN:

The recommendation in this report complements the following objective and Municipal
strategic directions:

A4- Fosters a safe, caring and healthy environment.


Chatham-Kent Council at its meeting held on October 6, 2008
Page 7 of 38
The recommendation will not adversely impact on the remainder of the Community
Strategic Plan.

OTHERS CONSULTED:

The following were consulted and agree with the recommendation.

Strategic and Development Services - Deborah Furlan
Legal - Steve Matheson
Chatham-Kent Police Services Board - Uly Bondy, Chairperson
CAO - Dave Weldon

FINANCIAL IMPLICATIONS:

There are no financial implications resulting from the recommendation.

Prepared by:                                           Reviewed by:

______________________________                        __________________________
Carl Herder,                                          Dave Weldon,
Chief of Police                                       Chief Administrative Officer



The Police Chief thanked the Mayor and Council for the opportunity to discuss the
business planning process, the requirement for a new protocol agreement with Council
and for the opportunity to advise all citizens of Chatham-Kent to complete the business
plan survey. It is hoped that the new business plan will assist in determining future
policing needs in Chatham-Kent.

Mr. Bondy, Chair of the Police Services Board introduced the Police Services Board
members and thanked them for their time and dedication. He explained that the Police
Services Board is responsible for the provision of adequate and effective police services
for the Municipality of Chatham-Kent and is required to enter into a protocol agreement
with Municipal Council. He further explained that the current protocol agreement has no
time frame, however the Police Services Board felt that is appropriate to periodically
renew this agreement so that a positive working relationship can be maintained. The
Police Services Act requires that the Police Services Board develop and implement a
business plan every three years. The business plan must include input from the
community, service clubs, business groups, school boards, hospital groups and
Municipal Council. The present business plan expires in January, 2009.

The Police Chief noted the importance of public participation in the survey in order to
identify important policing issues.

Councillor Brown questioned if the surveys are anonymous. The Police Chief explained
that the online survey asks where the closest police station is located to your house in
order to determine a general area, but there is no way to identify the person who filled
out the survey.

Councillor Stirling was pleased with the increased effort to communicate to Council and
to the public with regard to the business plan and protocol agreement.

Councillor Stirling moved, Councillor Fluker seconded:

“That the Municipality of Chatham-Kent Council direct the Chief Administrative
Officer to negotiate a Protocol Agreement with the Chatham-Kent Police Services
Board. This agreement will address the sharing of information between Council


Chatham-Kent Council at its meeting held on October 6, 2008
Page 8 of 38
and the Police Services Board, including the type of information to be shared and
the frequency of sharing such information.”

Mayor Hope noted the importance of transparency and communication between the
Police Services Board and Council. He commended the Police Services Board and
staff for developing an improved protocol agreement that will create a stronger
partnership between Police Services, Council and the public.

The Mayor put the Motion
                                                                           Motion Carried


Mr. Bondy introduced Deputy Chief Designate Clare Wiersma and Police Chief
Designate Dennis Poole who will assume their new positions upon the retirement of
Chief Herder.


7.    CONSENT AGENDA
(a)   Information Reports
      (i)      Delegated Planning Approvals/Citizen Panel Approvals

      (ii)     Traffic Investigation Report – Keil Drive Pedestrian Crossover (PXO) Safety
               & Operations Review, Community of Chatham, Municipality of Chatham-
               Kent

      (iii)    Traffic Investigation Report – Allison Line at Communication Road, Allison
               Line at Middle Line, Community of Harwich, Municipality of Chatham-Kent

      (iv)     Traffic Investigation Report – Michener Road Pedestrian Crossover Safety
               and Operations Review, Community of Chatham, Municipality of Chatham-
               Kent

      (v)      Monthly Financial Summary – July 2008

(b)   Committee Reports
      (i)     Chatham-Kent Board of Health Minutes from its meeting held on June 25,
              2008

      (ii)    Wallaceburg Community Task Force Minutes from its meeting held on
              August 21, 2008

      (iii)   Chatham-Kent Accessibility Advisory Committee Minutes from its meeting
              held on September 16, 2008


Action – Council to advise the Clerk of any items to be removed from the Consent
         Agenda and placed aside for consideration and debate separately.

Motion – That the items listed on the Consent Agenda be approved as presented and
         that action be taken as required (excluding any items placed aside).

Action – Items placed aside will now be discussed


Councillor Robbins moved, Councillor Pickard seconded:


Chatham-Kent Council at its meeting held on October 6, 2008
Page 9 of 38
“That the items listed on the Consent Agenda be approved as presented and that
action be taken as required.”

The Mayor put the Motion
                                                                           Motion Carried


8.    NOTICES OF MOTION
(a)   Presentation of New Notices of Motions

Councillor Brown introduced a Notice of Motion regarding Purchasing Business Plan /
Tender & RFP Policy Review. This matter will be added to the next regular agenda for
discussion and voting.


9.    TENDER AWARDS

(a)   Proposed structural renovations to Fire Station #5 Chatham North (Tupperville)

Councillor Pinsonneault declared a conflict of interest and removed himself from
discussion and voting on the matter.

                            MUNICIPALITY OF CHATHAM-KENT

                                      FIRE DEPARTMENT

TO:               Mayor and Members of Council

FROM:             Raymond Stone, Assistant Chief

DATE:             September 22, 2008

SUBJECT:  Proposed structural renovations to Fire Station #5 Chatham North
          (Tupperville)
RECOMMENDATIONS

It is recommended that:

1.    The design submitted by Jordan & Cook Architect Ltd. (Appendix II) be approved.

2.    The tender in the amount of $364,126 for the renovations at Station #5 Chatham
      North be awarded to Elric Contractors. These renovations include the addition of
      one new bay to accommodate fire apparatus, along with storage facilities for
      bunker gear, equipment, office and new male and female washroom/shower
      facilities.

3.    The funding for these renovations plus architectural and associated fees comes
      from the Capital Budget for Fire.

BACKGROUND

A construction budget estimate was submitted by Jorden & Cook. Tenders were then
requested and have since been submitted for this project.

Chatham-Kent Fire Station #5 (Chatham North) cannot accommodate the fire apparatus
required at this station. At the present time the Municipality is renting a vehicle bay at a
separate location to house a piece of fire apparatus. When responding to an

Chatham-Kent Council at its meeting held on October 6, 2008
Page 10 of 38
emergency, firefighters must respond to two different locations to retrieve fire apparatus.

Recommendation #1 of the 2007 Master Fire Plan identifies Station #5 Chatham North
as one of four stations needing reconstruction and/or renovations.

Tenders were called and received by the Purchasing Officer on Thursday, August 7,
2008. The bids received are inclusive of three projects consisting of additions and
renovations to Merlin, Tilbury and Chatham North. The results are as follows:

TENDER: CONTRACT T08-149
          Addition & Renovations to Merlin, Tilbury, Chatham North (Tupperville)
 Rank                      Tenderer                      Total Bid Amount      Chatham North
        Elric Contractors,
  1                                                        $967,997.95           $364,126.34
        Wallaceburg, ON
        Intrepid General
  2                                                       $1,034,403.27          $399,227.47
        Chatham, ON
        Westhoek Construction
  3                                                       $1,056,115.40          $431,435.07
        Chatham, ON
        Timm-Con
  4                                                       $1,076,687.85          $434,710.00
        Blenheim, ON

The Building Maintenance Co-ordinator and Jordan & Cook Architects reviewed the
tenders and found them to be complete in all respects.

COMMENTS

The present operation at Station #5 Chatham North is inefficient as firefighters have to
respond to different locations in personal vehicles to determine what fire apparatus is
available for use. The result is that fire apparatus has to respond from two locations for
emergency calls.

The proposed station renovation would enable all fire apparatus to be housed in one
location. It would also provide adequate facilities for storage of bunker gear and
equipment, male and female washrooms, and space for training purposes.

A 35’ x 43’ one bay building is to be constructed on the east side of the existing fire hall.
This would consist of one bay for a piece of fire apparatus, an office, new male and
female washroom/shower areas and some additional storage.

The addition would create room in the existing area for storage, safer movement of
equipment and a safer facility for firefighter movement.

See attached estimate (Appendix I) and drawing (Appendix II) of proposed addition for
this fire station.

COMMUNITY STRATEGIC PLAN

The recommendation in this report supports the following objectives and strategic
directions:

A:    Health – We are a healthy community
      A4 Foster a safe and caring community

E:    Civic Engagement – We are an engaged community
       E3 Enhance networking and communication opportunities throughout Chatham
            Kent.

Desired outcomes




Chatham-Kent Council at its meeting held on October 6, 2008
Page 11 of 38
   •    Continue to encourage cooperative efforts among our police, fire, ambulance,
        911, inspections, disaster service providers and community members.
   •    Focus on information sharing and developing collaborative initiatives to address
        existing and emerging community issues and opportunities.
   •    Build relationships within and across sectors.

The recommendation will not adversely impact on the remainder of the Community
Strategic Plan.

CONSULTATION

Fire Department staff consulted with Building Maintenance staff and received estimates
from Jorden & Cook Architects.

The Station Chief of Station #5 Chatham North was involved with this process.

FINANCIAL IMPLICATIONS

Below is the breakdown of costs involved with the proposed renovations at Station #5
Chatham North:

Structure Costs                                                 $364,126
Architectural/Engineering Fees                                   $32,446
Contingency Fees*                                                $13,000
                                                                 ______________________



Total structural costs                                          $409,572
Bunker Gear Racks (inc.tax/shipping)                                  $3,919
Hose Dryer (inc. tax/shipping)                                        $1,808
                                                                _______________________


Grand Total                                                     $415,299

Capital Budget for Fire                                                       $786,231
Tender plus architectural and associated fees                                 $415,299
Total remaining in Capital Budget                                             $370,932
* Contingency fee is to cover the additional costs of renovating the Chatham North,
Merlin & Tilbury fire stations separately.

There would be an annual savings of $2,600 presently being paid by the Municipality for
storage of one piece of fire apparatus.

Prepared by:                                           Reviewed by:

____________________________                           __________________________
Raymond Stone                                          Robert J. Crawford
Assistant Chief Fire Chief                             Fire Chief

Reviewed by:                                           Reviewed by:

_________________________                              __________________________
Gerry Wolting, B.Math,CA                               Dave Weldon
General Manager                                        Chief Administrative Officer
Corporate Services



Councillor Faas moved, Councillor Weaver seconded:

“That


Chatham-Kent Council at its meeting held on October 6, 2008
Page 12 of 38
1.    The design submitted by Jordan & Cook Architect Ltd. (Appendix II) be
      approved.

2.    The tender in the amount of $364,126 for the renovations at Station #5
      Chatham North be awarded to Elric Contractors. These renovations include
      the addition of one new bay to accommodate fire apparatus, along with
      storage facilities for bunker gear, equipment, office and new male and
      female washroom/shower facilities.

3.    The funding for these renovations plus architectural and associated fees
      come from the Capital Budget for Fire.”

Councillor Faas noted that the renovations at this facility are long overdue.

Councillor Weaver explained that the Fire Master Plan showed the importance and the
need to improve and maintain this facility. These renovations will send the positive
message that this service is valued and permanent.

Councillor Herman noted that the budget does not include a contingency allowance.
The Assistant Fire Chief explained that there is $13,000 contingency fund.

Councillor McGregor sought clarification on the construction timelines.

The Mayor put the Motion
                                                                          Motion Carried


(b)   Proposed structural renovations to Station 17 Merlin

Councillor Pinsonneault declared a conflict of interest and removed himself from
discussion and voting on the matter.

                            MUNICIPALITY OF CHATHAM-KENT

                                      FIRE DEPARTMENT

TO:               Mayor and Members of Council

FROM:             Raymond Stone, Assistant Chief

DATE:             September 22, 2008

SUBJECT:          Proposed structural renovations to Station 17 Merlin

RECOMMENDATION

It is recommended that:

1.    The design submitted by Jordan & Cook Architect Ltd. (Appendix II) be approved.

2.    The tender in the amount of $296,128 for the renovations to 22 Erie Street, Merlin
      be awarded to Elric Contractors. This renovation includes the addition of three
      bays to accommodate fire apparatus, along with storage facilities for bunker gear,
      equipment, offices, and new male and female washroom/shower facilities.

3.    The funding for these renovations plus architectural and associated fees come
      from the Capital Budget for Fire.

Chatham-Kent Council at its meeting held on October 6, 2008
Page 13 of 38
BACKGROUND

A construction budget estimate was submitted by Jorden & Cook. Tenders were then
requested and have since been submitted for this project.

Chatham-Kent Fire Station #17 (Merlin) is presently operating out of two facilities. Fire
apparatus is housed at the existing fire station (9 Sullivan Street), while training facilities
and office are located at the old Police building (22 Erie Street). A portion of this
building is rented to Kruger on an annual basis that is due to expire October, 2008.

Recommendation #1 of the 2007 Master Fire Plan identifies Station #17 Merlin as one
of four stations needing reconstruction.

Tenders were called and received by the Purchasing Officer on Thursday, August 7,
2008. The bids received are inclusive of three projects consisting of additions and
renovations to Merlin, Tilbury and Chatham North. The results are as follows:

TENDER: CONTRACT T08-149
          Addition & Renovations to Merlin, Tilbury, Chatham North (Tupperville)
 Rank                      Tenderer                      Total Bid Amount            Merlin
        Elric Contractors,
  1                                                        $967,997.95             $296,127.76
        Wallaceburg, ON
        Intrepid General
  2                                                       $1,034,403.27            $321,262.59
        Chatham, ON
        Westhoek Construction
  3                                                       $1,056,115.40            $320,183.24
        Chatham, ON
        Timm-Con
  4                                                       $1,076,687.85            $331,989.00
        Blenheim, ON

The Building Maintenance Co-ordinator and Jordan & Cook Architects reviewed the
tenders and found them to be complete in all respects.

COMMENTS

The existing fire apparatus door opening height and length of fire station is not adequate
to accommodate modern fire apparatus. Major work would be required to raise the
height of the roof and door openings. An additional apparatus bay would be needed for
one piece of fire apparatus. Office and washroom/shower facilities would also need to
be added.

The proposed addition to 22 Erie Street South would provide suitable accommodation
for fire apparatus, eliminating the need to purchase more costly custom-built fire
apparatus. It would also provide adequate facilities for storage of bunker gear and
equipment, male and female washrooms, and space for training purposes.

The proposed structural renovations would also enable the Municipality to close the
building at 22 Sullivan Street, and sell or use it as a storage facility.

The radio tower at the present location would have to be moved to the Erie Street
building to provide radio transmissions.

See attached estimate (Appendix I) and drawing (Appendix II) of proposed three bay
additions to the former Police building (22 Erie Street).



COMMUNITY STRATEGIC PLAN

The recommendation in this report supports the following objectives and strategic

Chatham-Kent Council at its meeting held on October 6, 2008
Page 14 of 38
directions:

A:       Health – We are a healthy community
         A4 Foster a safe and caring community

E:   Civic Engagement – We are an engaged community
      E3 Enhance networking and communication opportunities throughout Chatham
           Kent.
Desired outcomes

     •    Continue to encourage cooperative efforts among our police, fire, ambulance,
          911, inspections, disaster service providers and community members.
     •    Focus on information sharing and developing collaborative initiatives to address
          existing and emerging community issues and opportunities.

The recommendation will not adversely impact on the remainder of the Community
Strategic Plan.

CONSULTATION

Fire Department consulted with Building Maintenance staff and received estimates from
Jorden & Cook Architects.

The Station Chief and Deputy Station Chief of Station #17 Merlin were involved with this
process.

FINANCIAL IMPLICATIONS

Below is the breakdown of costs involved with the proposed renovations at Station #17
Merlin:

Structure Costs                                               $296,128
Architectural/Engineering Fees                                  21,870
Contingency Fees *                                             $13,000
                                                               ______________________



Total structural costs                                        $330,998
Bunker Gear Racks (inc. tax/shipping)                               $3,919
Hose Dryer (inc. tax/shipping)                                      $1,808
Radio Tower Connection (inc. tax/installation)                      $6,206
                                                              _______________________




Grand Total                                                   $342,931

Capital Budget for Fire                                                                 $370,932
Tender plus architectural and associated fees                                           $342,931
Total remaining in Capital Budget                                                        $28,001

* Contingency fee is to cover the additional costs of renovating the Chatham North,
Merlin & Tilbury fire stations separately.

Prepared by:                                           Reviewed by:

____________________________                           __________________________
Raymond Stone                                          Robert J. Crawford
Assistant Chief Fire Chief                             Fire Chief


Reviewed by:                                           Reviewed by:

_________________________                              __________________________

Chatham-Kent Council at its meeting held on October 6, 2008
Page 15 of 38
Gerry Wolting, B.Math,CA                               Dave Weldon
General Manager                                        Chief Administrative Officer
Corporate Services



Councillor Fluker moved, Councillor Stirling seconded:

“That

1.    The design submitted by Jordan & Cook Architect Ltd. (Appendix II) be
      approved.

2.    The tender in the amount of $296,128 for the renovation to 22 Erie Street,
      Merlin be awarded to Elric Constructions. This renovation includes the
      addition of three bays to accommodate fire apparatus, along with storage
      facilities for bunker gear, equipment, offices, and new male female
      washroom/shower facilities.

3.    The funding for these renovations plus architectural and associated fees
      come from the Capital Budget for Fire.”

In response to a question by Councillor Fluker, the Assistant Fire Chief explained that
the Station Chiefs and firefighters from the fire stations have been consulted during the
design phase of these projects.

The Mayor put the Motion
                                                                               Motion Carried


(c)   Tender Award Contract T08-182 Public Works Salt Storage Building Design and
      Build, Community of Tilbury, Municipality of Chatham-Kent

                            MUNICIPALITY OF CHATHAM-KENT

                   INFRASTRUCTURE AND ENGINEERING SERVICES

                   ENGINEERING AND TRANSPORTATION DIVISION

TO:               Mayor and Members of Council

FROM:             Stephen E. Jahns, P.Eng., CMM III
                  Manager, Infrastructure and Traffic
                  Engineering and Traffic Division,

DATE:             September 26, 2008

SUBJECT:          Tender Award: Contract T08-182
                  Public Works Salt Storage Building Design and Build
                  Community of Tilbury, Municipality of Chatham-Kent


RECOMMENDATION

It is recommended that:

1.      The tender in the amount of $328,185.90 (including 5% GST) for the work
        associated with Contract T08-182 Public Works Salt Storage Building Design and

Chatham-Kent Council at its meeting held on October 6, 2008
Page 16 of 38
        Build – Community of Tilbury be awarded to C&C Enterprises Construction
        Limited of Sarnia, Ontario.

BACKGROUND

This tender is associated with the construction of a new salt storage building at the
Public Works Department Yard in the Community of Tilbury and was approved in the
2008 Chatham-Kent Capital Budget.

COMMENTS

The new facility will be located adjacent to the Public Works Department Yard off of
Tower Street in the Community of Tilbury. This new development shall incorporate a
new structure for the storage of salt to facilitate winter control within the Community of
Tilbury.

Figure 1 illustrates the proposed site plan for the project. As illustrated, access to the
proposed salt and sand storage building will be via Tower Street and the existing Public
Works Department Yard. Interconnection with the paved circulation area of the existing
yard will be provided for maximum operational efficiency. An extension to the existing
paved circulation area and an additional paved drive will allow safe circulation of winter
control and salt delivery vehicles efficiently around the structure. Existing perimeter
fencing will be modified to surround the new secure area of operations; including the
new salt storage building.

As shown in Figures 2, 3 and 4, the storage structure to be erected is to be a free-
standing structure with cast-in-place concrete footings, concrete floor slab and a pre-
manufactured, stressed-skin superstructure. The building will measure approximately
36 feet by 58 feet in plan dimension (approximately 2,100 sq. ft.).

An overhead door complete with mechanical operator will be provided at the north end
of the structure to facilitate entry by salt delivery and loading equipment. Figure 5
illustrates a similar but smaller structure. The translucent fabric of the stressed-skin
superstructure will allow use of the building during daylight hours with minimal need for
overhead electric lighting. Overhead lighting will be installed none the less to facilitate
use of the building in evening hours and on overcast days.

In September of 2008, the tender for this design-build project was let by Engineering
and Transportation Division. The Purchasing Officer received and opened tenders for
the work on September 18, 2008. The results are as follows:

             Tender Results - Contract T08-182 - Salt Storage Building – Design and Build
                          Community of Tilbury, Municipality of Chatham-Kent
Rank       Name and Location of Tenderer                                   Amount (incl. 5% GST)
   1       C&C Enterprises Construction Limited                                 $328,185.90
           Sarnia, Ontario
    2      Agri Urban                                                           $330,645.00
           Dresden, Ontario
    3      Elric Contractors                                                    $346,382.86
           Wallaceburg, Ontario
    4      Westhoek Construction                                                $353,409.00
           Chatham, Ontario
    5      Spurr Contracting                                                    $400,050.00
           Belle River, Ontario

Engineering and Traffic Division has reviewed the tender and note that they are
complete in all respects. Project fees associated with this project will be funded through
the 2008 Chatham-Kent Capital Budget and Capital Surpluses and Reserve. A detailed
financial breakdown is indicated in the Financial Implications section of this report.

As this is a design-build project, the Contractor is responsible for obtaining any and all

Chatham-Kent Council at its meeting held on October 6, 2008
Page 17 of 38
approvals and permits prior to undertaking this work. The Contractor is also responsible
for retaining engineers for structural, electrical and mechanical design, and to develop
detailed design drawings related to the construction of the facility and design of the site.
 The Contractor and their design team are to work along with the Municipality of
Chatham-Kent during this process. Only upon approval of drawings will construction
commence. The Contractor may commence work anytime after the award of the
contract. The contractor is required to erect the structure by the end of 2008. Paving
and earthworks are to be completed by mid-May of 2009.

Council may also recall that Public Works has recently undertaken placement of asphalt
paving around a number of salt storage facilities within the Municipality of Chatham-
Kent to address Best Management Practices for salt and sand. As this site has a fairly
expansive paved asphalt area, this site will conform to these Best Management
Practices.

COMMUNITY STRATEGIC PLAN

The recommendation in this report supports the following objectives and strategic directions:

A. Health – We are a healthy community

     A1: Provide sufficient capacity to sustain community health and economic growth

B. Economy – We are a prosperous community

     B3: Maintain and enhance new and existing infrastructure to support economic
         and smart growth opportunities

Desired Outcomes

    •   Provide safe, accessible, convenient and efficient public transportation
    •   Support new infrastructure investments and modernize existing infrastructure

The recommendation will not adversely impact on the remainder of the Community
Strategic Plan.

CONSULTATION

The Tenders were opened by the Purchasing Officer and reviewed by the Tendering
Committee comprised of the Purchasing Officer, Corporate Services, the Director,
Financial Services/Treasurer, Corporate Services and the Director, Engineering and
Traffic Division, Infrastructure and Engineering Services.

FINANCIAL IMPLICATIONS

Costs associated with this project will be funded through the approved 2008 Chatham-
Kent Capital Budget. The project is summarized in the following table:

           Financial Implications - Contract T08-182 - Salt Storage Building – Design and Build
                           Community of Tilbury, Municipality of Chatham-Kent
A) Project Costs         Recommended Tender                               $              328,185.90
                         Less GST Rebate 5%                              -$                15,627.90

                                               Project Costs Total          $           312,558.00
B) Project Funding      Approved 2008 Capital Budget Project                $           300,000.00
                        Capital Funds re-allocated from project surpluses   $            12,558.00
                                                  Balance Remaining         $                 0.00

Prepared by:                                                Reviewed by:


Chatham-Kent Council at its meeting held on October 6, 2008
Page 18 of 38
____________________________                           _____________________________
Stephen E. Jahns, P.Eng., CMM III                      Gary Northcott, P. Eng.
Manager, Infrastructure & Transportation               Director,
Engineering & Transportation Division                  Engineering & Transportation Division
Infrastructure & Engineering Services                  Infrastructure and Engineering Services

Reviewed by:                                           Reviewed by:

____________________________                           _____________________________
Leo Denys, P. Eng.                                     C.D. Weldon
General Manager                                        Chief Administrative Officer
Infrastructure and Engineering Services



Councillor Fluker moved, Councillor Faas seconded:

“That the tender in the amount of $328,185.90 (including 5% GST) for the work
associated with Contract T08-182 Public Works Salt Storage Building Design and
Build – Community of Tilbury be awarded to C&C Enterprises Construction
Limited of Sarnia, Ontario.”

The Mayor put the Motion
                                                                              Motion Carried


10. CORPORATE SERVICES
(a)   Capitol Theatre Approval to Proceed with Construction

                            MUNICIPALITY OF CHATHAM-KENT

                                   CORPORATE SERVICES

                                    FINANCIAL SERVICES

TO:               Mayor and Members of Council

FROM:             Larry M. Najjar, B.J., LL.B.
                  Manager, Partnership Development

DATE:             September 30, 2008

SUBJECT:          Capitol Theatre Approval to Proceed with Construction

RECOMMENDATIONS

It is recommended that:

1. Administration be authorized to instruct Intrepid General Limited to proceed with the
   reconstruction of the Capitol Theatre at an anticipated cost of $11.3 million.

2. A maximum of $750,000 from the monies allocated to the Municipality under the
   Province’s “Investing in Ontario Act” be invested directly into the Capitol
   reconstruction project.

3. The investment referred to in recommendation 2 above match, dollar for dollar (to a
   maximum of $750,000), the funds contributed by the Chatham Capitol Theatre

Chatham-Kent Council at its meeting held on October 6, 2008
Page 19 of 38
   Association (CCTA) by June 30, 2009 and that the CAO and Treasurer be
   authorized to confirm the CCTA funding contribution as of that date and the
   matching amount of Municipal investment.

4. $2,000,000 from the Municipality’s allocation under the “Investing in Ontario Act” be
   made available to finance renovations and leasehold improvements to the Capitol
   Theatre, with this amount to be repaid to the Municipality by the CCTA over 10
   years, commencing January 1, 2012, through the use of a per ticket surcharge.

BACKGROUND

On March 28, 2008 the Province announced that the Municipality’s application under the
Municipal Infrastructure Investment Initiative (MIII) for a $7 million grant to assist in the
reconstruction of the Capitol Theatre (the Capitol) was successful.

The $7 million in funding awarded to Chatham-Kent under the MIII has already been
received by the Municipality. Under the terms of the MIII the Municipality is expected to
proceed expeditiously with the Capitol reconstruction project.

On June 23, 2008 administration advised Council that, for a number of reasons, costs
for the reconstruction of the Capitol Theatre were expected to exceed $9 million,
exclusive of the furniture, fixtures and equipment necessary to turn the completed
building into a fully functioning performing arts centre. At that time administration
sought and received Council’s approval to proceed with the tendering process to
determine actual costs for the Capitol reconstruction project.

Over the summer tender packages for the numerous components which comprise the
Capitol reconstruction project – 40 separate tender packages in total – were prepared.
Of these, 25 were let by the Municipality. The remaining 15, covering the materials to
be used by the Job Creation Program (JCP) participants on this project, were let by the
CCTA. The tenders closed on three separate dates – September 22, 23 and 24, 2008.

After the tenders were opened a detailed analysis was undertaken to ensure that the
bids received complied with both the tender requirements and the Municipality’s
procurement policies (other than the tenders let by the CCTA, which were not subject to
the Municipality’s procurement policies). As a result of this analysis, the lowest
compliant bids were identified. A chart detailing every bid received on every tender
package is attached as Attachment 1.

Once the tendering process was completed the Municipality’s prime consultant, Jorden
& Cook Architect Ltd., and the Municipality’s construction manager carefully analyzed
the low bids to identify any opportunities to reduce the resulting construction costs. In
particular, they identified certain instances of duplication among the bids received as
well as certain opportunities to utilize alternate pricing or to rationalize scopes of work to
reduce cost. A chart detailing the results of this analysis is attached as Attachment 2.

Finally, in order to arrive at an all-inclusive cost for the Capitol reconstruction project
Jorden & Cook prepared a summary of the total soft costs for the project. This
summary is attached as Attachment 3. As is seen at the bottom of Attachment 3, the
total project cost is $11,300,255.37. Approximately $10,000,000 of this figure is
attributable to construction costs, which is approximately $700,000 higher than the
construction cost estimate presented to Council in June. The balance (approximately
$1.3 million) is attributable to furniture, fixtures and equipment.



COMMENTS

The total project cost set out above exceeds the funding presently available by

Chatham-Kent Council at its meeting held on October 6, 2008
Page 20 of 38
approximately $4.1 million. The recommendations made in this report are intended to
permit the project to proceed now, on the basis of the current plans and specifications.

Prior to making these recommendations administration considered various options, but
concluded that none were viable. These options included:

Option 1 – Reducing the Scope of the Project

Throughout the Municipality’s involvement with this project administration has worked
closely with Jorden & Cook and the CCTA to identify areas where costs could be
reduced by reducing the scope of the project. A number of scope reductions had
already been made by the CCTA after it tendered the project in 2006, and further
reductions were made during the spring and summer, 2008. At this point, no further
significant scope reductions can be made without:

       Impairing the operational viability of the Capitol, as any further reductions will
       restrict the number and variety of performances it can host;

       Compromising the community’s vision of the completed Capitol as a top tier
       performing arts centre;

       Risking the MIII grant funding already received. That funding was awarded to the
       Municipality on the basis that the Capitol, when completed, would be a state of
       the art performing arts centre capable of hosting a full range of performances,
       driving a regional increase in tourism, anchoring the redevelopment of Chatham’s
       downtown core (and its emerging cultural precinct) and energizing the
       community’s efforts to grow and diversify its population (including attracting
       industry and professionals). Any scope reductions significant enough to
       materially decrease construction costs would run contrary to representations
       made to the Province in securing the MIII funding. Extracts from the
       Municipality’s MIII application are attached as Attachment 4; and

       Delaying the project and increasing costs. Any scope reductions sufficient to
       materially decrease construction costs would require substantial revisions to the
       existing plans and specifications. This process itself would cause additional
       costs to be incurred (i.e. architect’s and consultants’ fees) and would require the
       entire project to be re-tendered, with all the additional costs that would entail. In
       addition, as more fully discussed below any delay in the project can be expected
       to lead to increased costs (which would eat up much, if not all, of the savings
       realized through scope reductions).

Option 2 – Delaying Construction to Allow for Additional CCTA Fundraising

When Council authorized administration to proceed to tender in June, 2008 it set a
funding formula under which the project would not proceed to construction until the
CCTA had secured funding to cover 75% of any shortfall between the actual project
costs and the available funding. To date the CCTA has been able to secure $255,000
in funding. One of the major difficulties faced by the CCTA in its fundraising efforts has
been the perception in the community that the project would not proceed and that
therefore any contributions made would be wasted. Delaying the project at this time
would only fuel that perception and make the CCTA’s fundraising more difficult.

In addition, and perhaps more importantly, any delay in the project will substantially
increase costs. It is common knowledge among contractors across southwestern
Ontario that this project was tendered in 2006 and that construction did not proceed at
that time. Throughout the current tendering process the Municipality, its construction
manager and Jorden & Cook were consistently advised by potential bidders that they
were skeptical that the project would proceed now and that they were not going to
waste their time bidding again. Considerable effort had to be devoted to countering that

Chatham-Kent Council at its meeting held on October 6, 2008
Page 21 of 38
perception and encouraging sub-trades to bid on the Capitol tender packages. Despite
that effort single bids were received on a number of tender packages and no bids at all
were received on one.

It is unlikely that sub-trades could be encouraged to submit bids a third time if the
project is delayed. The result would be a dramatic increase in project costs due to the
costs associated with the re-tendering process, the lack of competitive bidding and the
likelihood that any sub-trades who do bid will grossly inflate their bids.

In addition, it is well known that construction costs increase simply as a result of the
passage of time. This factor has already negatively affected the Capitol project
between 2006 and today. Given the recent dramatic increases in the price of oil, steel,
copper, concrete and other construction materials it appears that any further delay
would drive up the project cost.

For the reasons set out above it has become clear that if the project does not proceed
now it likely never will.

Proposed Funding Arrangement Going Forward

As noted above, actual project costs have now been fixed at approximately $11.3
million. Available funding totals approximately $7.2 million (the initial $7 million MIII
grant and the anticipated interest on it). This leaves a funding shortfall of approximately
$4.1 million.

It is recommended that a maximum of $750,000 from the monies to be received by the
Municipality under the “Investing in Ontario Act” be invested directly into the Capitol
reconstruction project. It is recommended that the amount of this direct Municipal
investment match, dollar for dollar (to the $750,000 maximum), the amount of the funds
contributed by the CCTA as of June 30, 2009. It is further recommended that the CAO
and Municipal Treasurer be authorized to confirm both the amount of the CCTA’s
funding contribution as of June 30, 2009 and the matching amount of direct Municipal
investment in the project.

In addition, it is recommended that $2 million from the Municipality’s allocation under the
“Investing in Ontario Act” be made available to finance renovations and leasehold
improvements to the Capitol. This $2 million investment would be repaid by the CCTA
in the form of lease payments to the Municipality. It is recommended that such
payments not commence prior to the end of 2011 to permit the CCTA to focus its
energies and available resources on the reconstruction project and on preparing to
open and operate the theatre. The full amount would be repaid in equal payments over
10 years, with the first payment due January 1, 2012. This term would be included in the
lease agreement between the Municipality and the CCTA. The CCTA would fund these
payments by way of a modest ($1-2) surcharge on all tickets sold for events at the
Capitol.

This recommendation would permit the Municipality to use the same money twice –
once to assist with the completion of the Capitol project and then a second time when
the funds are repaid and become available for further infrastructure investment.

The base amount invested under this recommendation would be $2 million. It is
recommended that an additional amount up to $750,000 be made available, if required,
in the event that the CCTA funding contribution falls short of the anticipated $750,000
(which would cause a corresponding decrease in the amount of the Municipality’s
matching funding) or the Superbuild funding described below does not materialize. If
such additional funding is required it would be repaid to the Municipality on the same
terms as the initial $2 million, as described above.

Finally, the CCTA continues to pursue $600,000 in funding under the Superbuild

Chatham-Kent Council at its meeting held on October 6, 2008
Page 22 of 38
program. CCTA representatives have been in regular contact with the Superbuild
administrators and have requested the $600,000 previously allocated to this project.
The CCTA has been advised that the Superbuild administrators are awaiting Council’s
decision to proceed with the project before making a firm funding decision.

If accepted, the recommendations made in this report would meet the $4.1 million
funding shortfall as follows:

CCTA funding raised to date………………………………………..$255,000
Additional CCTA funding raised by June 30, 2009..………….….$495,000

Total CCTA funding………………………………………………….$750,000

Matching Municipal direct investment...……………………………$750,000
Superbuild funding…………………………………………………...$600,000
Repayable Municipal renovation/leasehold investment…..……$2,000,000

TOTAL FUNDING………………………………………………….$4,100,000

If the recommendations made in this report are approved by Council, the CCTA will
effectively have met the 75% funding precondition noted above.

Need to Proceed Immediately

In issuing the tenders described above the Municipality requested that any bids received
remain valid for 45 days from the close of tenders. Despite this request, a number of
the bids received stipulated that they would expire 30 days after the close of tenders
(i.e. October 22-24). The rationale offered was that, given the extreme volatility in the
price of many construction materials (steel, concrete, copper, etc.), tender prices could
not be held longer than 30 days. If the bids are not accepted before they expire they
become void, which will create significant difficulties moving forward with the project and
will almost certainly increase costs.

In addition, the process of entering into contracts with dozens of sub-trades will be very
time consuming. If it is to be completed in time to avoid the expiry of a number of the
low bids it must begin immediately.

COMMUNITY STRATEGIC PLAN

The recommendations in this report support the following objectives and strategic directions:

D: Culture – We are a cultural community.

E: Civic Engagement – We are an engaged community.

The recommendations in this report also support Council’s Strategic Directions, the
recently received Economic Development Strategy and the recently received Cultural
Strategy.

CONSULTATION

The CAO, the General Manager of Infrastructure and Engineering Services, the General
Manager of Corporate Services, the Director, Engineering and Transportation Division,
the Director of Legal Services, representatives of the CCTA, Jorden & Cook and
Intrepid General and a number of consultants have been consulted regarding matters
addressed in this report.

FINANCIAL IMPLICATIONS

Chatham-Kent Council at its meeting held on October 6, 2008
Page 23 of 38
The financial implications of the recommendations made in this report are largely set out
in the Comments section above. The $750,000 direct investment recommended above
will assist in meeting Council’s Strategic Direction 1, which calls for significant
investment to strengthen the cultural and recreational opportunities available in the
Municipality.

In addition, the completion of this project will preserve the Municipality’s investment in
the Capitol to date and could reasonably be expected to enhance the value of this
municipally owned asset and, by extension, the value of the Municipality’s portfolio of
properties.

Prepared by:                                           Reviewed by:

____________________________                           __________________________
Larry M. Najjar, B.J., LL.B.                           Gerry Wolting, B. Math, C.A.
Manager, Partnership Development                       General Manager, Corporate Services

Reviewed by:

________________________________
C.D. Weldon
Chief Administrative Officer



Councillor Pickard moved, Councillor Robbins seconded:

“That

1.    Administration be authorized to instruct Intrepid General Limited to proceed
      with the reconstruction of the Capitol Theatre at an anticipated cost of $11.3
      million.

2.    The Chatham Capitol Theatre Association (CCTA) fundraise and contribute
      $750,000 by June 30, 2009 toward the project costs.

3.    $2,750,000 from the Municipality’s proceeds from the sale of the Downtown
      Chatham Centre land be made available to finance renovations and
      leasehold improvements to the Capitol Theatre, with this amount to be
      repaid to the Municipality by the CCTA over 14 years, commencing January
      1, 2012, through the use of a per ticket surcharge.

4.    If necessary, administration be authorized to utilize reserves on an interim
      basis, pending completion of the DCC land sale.”

Councillor Brown noted that Council has made a previous decision on this issue and
questioned if a two thirds vote is required to put this issue back on the table for
discussion. The Director of Legal Services explained that a two thirds vote is required if
the new direction of Council is opposite that of the previous motion; in his opinion this
new motion is not opposite to the original motion. The amount financed and the
repayment schedules are conditions which can be amended without a two thirds vote.

Councillor Brown questioned if there was a meeting today regarding this issue and if so,
why was all of Council not involved. Mayor Hope explained that there was no meeting
called by either the Mayor or CAO regarding this issue. Councillor Pickard explained
that he had spoken with the majority of Council and the Mayor regarding his revised
motion. He further noted that he did not contact Councillor Brown as he was aware of

Chatham-Kent Council at its meeting held on October 6, 2008
Page 24 of 38
his position on this matter.

Councillor Pickard noted that the reason for his amended recommendation was that
Council was clear at the previous meeting, that no additional tax dollars would be
committed to this project. He expressed frustration with the position of the Capitol
Theatre, but to walk away from the project at this time would be detrimental to the local
economy. This recommendation provides a means for the project to move forward
without costing the taxpayers additional money. The proceeds from the sale of the
Downtown Chatham Centre would be used to finance the project, with that money being
repaid by the Capitol Theatre Association over a 14 year period.

Councillor Fluker requested that the sale of the Downtown Chatham Centre be
explained. The Chief Administrative Officer explained that administration prepared a
presentation that will explain the new funding option proposed by Councillor Pickard’s
motion.

The Manager of Partnership Development provided an overview of the Capitol Theatre
project to date. He explained that the current issue is that the cost of the project
exceeds the available funding by approximately $4.1 million.

The Manager of Partnership Development reviewed the following four options available
to Council:

      Option 1 – Delay the project
      Option 2 – Scale back the project
      Option 3 – Do not proceed at all
      Option 4 – Proceed with the project now

Administration felt that the first two options are not viable and third option could be very
costly to the community in loss of funding, private investment and credibility.

The General Manager of Corporate Services explained that the new recommendation
would allocate the proceeds from the Downtown Chatham Centre land sale to the
Capitol Theatre, repayable over 14 years. He further explained that this funding would
not be needed for approximately 8 to 10 months to allow for the finalization of this
transaction.

The General Manager of Corporate Services reviewed the status of the Downtown
Chatham Centre land sale. He explained that the sale has been approved by Council
contingent on proceeds within a certain range. He further explained that negotiations
are complete and the legal agreements are being finalized. The proceeds of the sale
are within the approved range, will be sufficient to meet the amended
recommendations, and have not yet been allocated by Council. It is anticipated that the
legal agreements will be finalized within one month and the sale will close.

The General Manager of Corporate Services provided clarification on the ticket
surcharge.

Councillor Fluker questioned the use of the current revenue from the Downtown
Chatham Centre. The General Manager of Corporate Services explained that the lease
payment is part of general revenues for the Municipality.

Councillor Vercouteren noted that Intrepid General Limited is the general contractor for
the Capitol Theatre project. He further noted that Intrepid General Limited bid on, and
was awarded one of the sub-trade tenders. He expressed concern with the general
contractor being able to bid on sub-trade tenders. The Manager of Partnership
Development explained that the terms of the Construction Manager RFP allowed for the
successful bidder to bid on individual sub-trade packages. Intrepid General Limited bid
on one of the forty sub-trade packages; they were also the only bidder on this sub-trade

Chatham-Kent Council at its meeting held on October 6, 2008
Page 25 of 38
package.

Councillor Vercouteren noted that he would not support the motion and requested a
recorded vote.

Councillor Clarke noted that there is a disconnect between perception and reality on
what the actual costs of the Chatham Capitol Theatre. The Municipality has invested $1
million in this facility. The remainder of the funding has come from grants, other
organizations and donations. Councillor Clarke noted the revitalization of the downtown
core due to the expectations of the Capitol Theatre.

Councillor Clarke expressed concern regarding the message that would be sent to the
senior levels of government should the $7 million MII grant be returned to the Province.
He further noted all the donations that have been made by the citizens of Chatham-Kent
that would be thrown away if this project does not come to fruition. Councillor Clarke
appreciated the innovative approach that does not commit any new tax dollars to this
project.

In response to a question by Councillor Herman, the Manager of Partnership
Development confirmed that the $7 million MII grant money will be lost if it is not used
for the purposes for which it was granted. Councillor Herman noted that even using the
revenue from the sale of the Downtown Chatham-Kent to fund the Capitol Theatre still
has an effect on the taxpayers of Chatham-Kent.

Councillor Herman sought clarification on the need for a fly tower. The Manager of
Partnership Development explained that the fly tower is not responsible for the $4
million dollar gap in funding. The construction of the Capitol Theatre, with or without the
fly tower, is going to exceed $8 million. The removal of the fly tower will reduce some
labour and materials but will only scale down one small part of the construction. The
net savings of removing the fly tower will be $600,000 to $800,000. The process of
redesigning, re-tendering, and delaying the project to remove the fly tower could result
in a loss of more than the projected savings due to the potential loss of the Super Build
funding and cost certainty of the tenders that have already been received. Mr.
Donaldson provided clarification on the artistic need for the fly tower.

Councillor Herman noted that she has not seen a business plan for the Capitol Theatre.
She expressed concern with making a decision without knowing the business and
strategic vision for the Capitol Theatre.

In response to a question by Councillor Sulman, the General Manager of Corporate
Services explained that there are no restrictions on the proceeds from the sale of the
Downtown Chatham Centre. He further explained that once the Capitol Theatre begins
to repay the loan, Council can put those repayment funds towards other projects.

Councillor Sulman noted that the Capitol Theatre has raised $255,000. He questioned if
this money is used for operating expenses as well. Mr. Donaldson explained that the
$255,000 breaks down into $130,000 in future pledges, $100,000 in a recent naming
opportunity and $25,000 in a second naming opportunity.

Councillor Brown noted that at the previous meeting in June regarding the Capitol
Theatre, Mr. Donaldson assured Council that they would not be requesting any
additional funding. Councillor Brown sought clarification on the reason for the Capitol
Theatre beginning debt repayment in 2012. The Manager of Partnership Development
explained that this recommendation was developed to give the CCTA time to get its
operations in shape prior to commencing debt payments.

Councillor Brown noted that the budget includes $700,000 for rigging. He questioned
the use of this rigging. The Manager of Partnership Development explained that the
rigging goes inside the fly tower. Councillor Brown questioned if the rigging would be

Chatham-Kent Council at its meeting held on October 6, 2008
Page 26 of 38
needed if the fly tower was not built, resulting in $1.4 million in savings. Mr. Cook
explained that if the fly tower is removed a different set of rigging will be required to deal
with the backstage components. He further explained that an allowance has been built
into the tender for the rigging. Should the contingency be used up during the
construction project, the rigging allowance can be cut back. Additional rigging
components can be added over time.

Councillor Pinsonneault noted that requiring additional funding has been the history of
this project from the beginning and he did not believe that this would be the last funding
request. He felt that the economic times will make the debt repayment amount difficult
to meet. Councillor Pinsonneault felt that the CCTA should scale back the project and
work within the available funding. He requested that Council turn down the
recommendation.

Councillor Stirling noted that he was making his decision on this issue based on what
kind of Chatham-Kent he wanted to see in the future. He felt that this decision will have
a huge impact on the cultural future of Chatham-Kent. He encouraged Council not to be
timid with this decision.

Councillor Weaver noted that it is not unusual for Councillors to meet outside of Council
Chambers to discuss issues. He further noted that he and Councillor Pickard met with
the CCTA as they are the Council appointed members of the CCTA. Councillor Weaver
felt the shift of resources from the Downtown Chatham Centre to the Capitol Theatre is
the appropriate answer to this situation.

Councillor Robbins felt that the Capitol Theatre will add diversity to the economic aspect
of Chatham-Kent. Councillor Robbins sought clarification on the rate of return on this
investment to the local workforce. Mr. Cook explained that although there was no
stipulation that regarding local preference in the tendering process, a number of tenders
were awarded to local companies.

Councillor Crew questioned the legality of loaning the CCTA money to fix up a
municipally owned building and requiring the CCTA to pay that money back. The
Director of Legal Services explained that this situation is exactly like a lease hold
improvement scenario and is very common in the commercial industry.

Councillor Crew questioned what would happen to the Capitol Theatre should Council
decide not to approve the additional funding. The Manager of Partnership Development
explained that the project could not proceed without this additional funding.

Councillor Crew questioned what would happen should the CCTA not be able to raise
their portion of the funding by June 2009. The Manager of Partnership Development
explained that there is some flexibility in the rigging tender as well as a contingency fund
that can be used if needed.

Councillor Crew felt that some of the more ornate construction elements could be
removed or scaled back. The Manager of Partnership Development explained that
administration, the CCTA and the Construction Manager will continue to investigate all
avenues to reduce costs by using alternate material.

Councillor Crew noted that this scenario will allow for the proceeds from the Downtown
Chatham Centre land sale to be used twice. The funds will be used to complete the
Capitol Theatre and then will be available for Council to reinvest once the CCTA begins
repaying the loan.

Councillor Parsons questioned if there is adequate parking in the downtown to
accommodate approximately 800 people per performance. The Manager of Partnership
Development explained that there is sufficient parking within walking distance of the
Capitol Theatre to accommodate the expected audiences.

Chatham-Kent Council at its meeting held on October 6, 2008
Page 27 of 38
Councillor Parsons expressed concern that the amount of money that will be lost on
providing an interest free loan has not been considered.

Councillor Parsons questioned the meaning of and item in the tender called a MTCU
allowance. The Manger of Partnership Development explained that the acronym stands
for Ministry of Training, Colleges and Universities which is essentially the Job Creation
Program. Mr. Cook explained that the amount listed in the MTCU allowance is for the
materials needed for the Job Creation Program to participate and do their job. He
further explained that wages are part of the overall project value. Councillor Parsons
questioned the dollar value associated with staffing costs for the JCP participants. Mr.
Cook explained that the JCP participants are provided to the project without cost by the
Ministry of Training, Colleges and Universities.

Councillor Parsons questioned when the announcements will be made regarding the
naming opportunities for the Capitol Theatre. Mr. Donaldson explained that one donor
has committed to naming the front board room in the Capitol Theatre Annex and this
donor will be announced in either October or November. The donor of the $100,000
naming opportunity wishes to remain anonymous at this time.

In response to a question by Councillor Parsons, Mr. Donaldson explained that
approximately $3.5 million has come from private donations. The federal government
has provided approximately $4.5 million. Councillor Parsons questioned the amount of
public and private funding which is invested in the Capitol Theatre at the time the
building is operational. Mr. Donaldson explained that the total invested to date is
approximately $9 million. Councillor Parsons noted that this project will ultimately cost
approximately $20 million.

Councillor Parsons question if the Capitol Theatre plans on hosting three performances
per week. Mr. Donaldson explains that it depends on the ebb and flow of the season.
Some performances will run for a week, while others will be one night shows. It is not
anticipated that 150 events per year will be difficult to attain.

Councillor Parsons expressed concern with the tight timelines forced on Council
regarding this project. He noted that Council has never had the opportunity to have a
strategic discussion regarding this project. He further noted that Council has never
seen a business plan for the Capitol Theatre.

Councillor Robbins moved, Councillor Pickard seconded:

“That the meeting be extended until 11:00 p.m.”

The Mayor put the Motion
                                                                          Motion Carried


Councillor Faas noted that he was under the impression that when Council approved
the $7 million dollar MII grant, that the money would be sufficient to finish the project
and if not, concessions would be made to bring the costs down. However, he felt that
voting against the project would be doing an injustice to the project as the $7 million
would have to be returned to the Province. He further noted all the donations that have
been made by the citizens of Chatham-Kent that would go to waste should Council not
support this project.

In response to a question by Councillor Faas, the Manager of Partnership Development
confirmed that any funding not used will reduce the Municipality’s contribution to the
project.

Councillor McGregor sought clarification on the construction timeframe. The Manager

Chatham-Kent Council at its meeting held on October 6, 2008
Page 28 of 38
of Partnership Development explained that it is expected that construction will
commence the beginning of November with a construction timeframe of approximately
fourteen months. Mr. Donaldson explained that once a date of substantial completion is
received from the construction manager the CCTA will schedule a soft opening
accordingly. It is anticipated that this will take place in the spring of 2010.

Councillor McGregor questioned if the $11 million will be sufficient funding to complete
the project. Mr. Donaldson explained that the funding request was based on the
tendered prices to complete the project. Mr. Cook felt confident that the budget and
contingencies are sufficient to see this project through to completion.

Councillor McGregor sought clarification on the number of jobs that will result from the
Capitol Theatre. Mr. Donaldson explained that the staffing level will be as lean as
possible at the beginning and will hinge on the relationship that can be developed with
the Kiwanis Theatre to share resources such as box office and stage hands. Mr. Cook
explained that approximately 50% of the construction value constitutes labour costs.

Councillor Gilbert echoed the concerns of other Councillors regarding the absence of a
current business plan for the Capitol Theatre. She noted that a repayment plan has to
be based on a sound business plan. She sought clarification on the target audience for
the Capitol Theatre. Mr. Donaldson explained that the target audience will change
depending on the presentation. He further explained that the business plan is a work in
progress due to all the current changes with the Capitol Theatre.

Mayor Hope noted the difficulty making a large financial decision in the absence of a
business plan. He sought clarification on the interest that will be lost by providing this
loan to the Capitol Theatre. The General Manager of Corporate Services explained that
the Capitol Theatre will receive a benefit of approximately $50,000 per year in forgiven
interest on the loan.

Mayor Hope questioned what will happen should the deal to purchase the Downtown
Chatham Centre fall through as there is no signed documents at this time. The General
Manager of Corporate Services confirmed that there are no signed completed
documents at this time; however negotiations are complete, a price has been agreed
upon, and the legal documents are in the final stages of formulation. Mayor Hope
questioned if the purchaser can still back out of the deal. The General Manager of
Corporate Services explained that until such time as there is a signed agreement the
purchaser can back out of the sale. He further explained that should this sale not come
to fruition, administration would come back to Council with recommendations on other
infrastructure funds that are available to Council on a loaned basis.

Mayor Hope sought clarification on the use of the Capitol Theatre Annex. Mr.
Donaldson explained the building will house the administrative offices of the Capitol
Theatre, the Capitol Theatre box office, a leasible board room and rentable commercial
space. He further noted that there is a full basement in this building that will be usable,
at some point down the road.

In response to a question by Mayor Hope, the Manager of Partnership Development
explained that the Super Build funding has been approved, however the CCTA has not
drawn upon this funding yet, as it was to be used for furniture, fixtures, and equipment
and the project has not reached this stage of construction. Administration is in the
process of confirming that the Super Build funding is transferable to the Municipality and
is still available. Indications are that the funding is still available, confirmation pending
the outcome of tonight’s meeting. The Manager of Partnership Development further
explained that the Super Build funding program is coming to an end and the funding
needs to be spent by March 31, 2009.

Mayor Hope noted that the revenue from the lease of the Downtown Chatham Centre
goes into the Municipality’s general revenue. The General Manager of Corporate

Chatham-Kent Council at its meeting held on October 6, 2008
Page 29 of 38
Services explained that once the property is sold the revenue stream of $250,000 from
the lease payments per year will be lost. Mayor Hope noted that this revenue loss will
have to be made up. The General Manager of Corporate Services explained that the
investment into the downtown will be a revenue source.

Mayor Hope questioned if a study has been conducted on the financial impact of the
Capitol Theatre to show the expected revenues from this investment. The General
Manager of Corporate Services explained that Council has not requested a feasibility
study, however the original business plan for the Capitol Theatre touched on this
subject as well as a couple of the Master Plans conducted by the Municipality.

Mayor Hope expressed concern with being asked to make blind business decisions. He
noted that he will not be supporting additional revenue to the Capitol Theatre due to the
lack of information. He noted that he would continue to support the Capitol Theatre in
completing the project within the $7 million in approved funding, but he could not
support any additional funding.

That the Mayor put the Motion

      Councillor            Yes      No
Brown                                X
Clarke                      X
Crew                        X
Faas                        X
Fluker                      X
Gilbert                     X
Herman                      X
King                         Absent
McGregor                    X
Parsons                     X
Pickard                     X
Pinsonneault                       X
Robbins                     X
Stirling                    X
Sulman                             X
Vercouteren                        X
Weaver                      X
Mayor Hope                         X
Total                       12      5

                                                                          Motion Carried


11.    INFRASTRUCTURE AND ENGINEERING SERVICES

(a)   Notice of Motion – Councillor Herman re Traffic Study at the intersection of Erieau
      Road and Talbot Trail

Councillor Herman moved, Councillor Vercouteren seconded:

“That administration conduct a traffic study of the intersection of Erieau Road
and Talbot Trail in the community of South Kent and the study include the
possible need to bring attention to the intersection stop (i.e. placement of a
beacon light).”

Councillor Herman noted that it has been sometime since a traffic study has been
conducted on this intersection. She felt that the increased traffic in the area warrants a
traffic study at this intersection.

Chatham-Kent Council at its meeting held on October 6, 2008
Page 30 of 38
Councillor Stirling noted that the grade of the intersection provides visibility issues at this
intersection. The Manager of Infrastructure and Transportation explained that the
sightlines are considered during any traffic study. Councillor Stirling requested that
administration provide South Kent Councillors with information as to when a traffic study
was conducted at a similar intersection in Cedar Springs.

Councillor Pinsonneault questioned if rumble strips would be an alternative to a beacon
light. The Manager of Infrastructure and Transportation explained that the
characteristics of the intersection are used to determine the best intersection indicator to
utilize.

The Mayor put the Motion
                                                                             Motion Carried


(b)   Tile Drainage Loan Debentures By-law and Inspections

                            MUNICIPALITY OF CHATHAM-KENT

                   INFRASTRUCTURE AND ENGINEERING SERVICES

                  DRAINAGE, ENVIRONMENTAL AND FLEET DIVISION

TO:               Mayor and Members of Council

FROM:             Tim Dick, C.E.T.
                  Director, Drainage, Environmental and Fleet Division

DATE:             September 22, 2008

SUBJECT:          Tile Drainage Loan Debenture By-law and Inspections

RECOMMENDATION

It is recommended that:

1.    Three readings be given to the Rating By-law for Tile Loan Debenture # 2008-11
      for November 1, 2008 imposing special annual drainage rates under the Tile
      Drainage Act.

BACKGROUND

The Province of Ontario provides loans to property owners through the Tile Loan
Program to assist in funding the installation of private farm tile on their agricultural
properties. The program is governed by the Tile Drainage Act. The Ontario Ministry of
Agriculture, Food and Rural Affairs (OMAFRA) announced the criteria for the 2008/2009
Tile Loan Program would remain the same as last year, offering an annual loan
maximum of $50,000 with a 6% interest rate for a ten year term. Tile drainage loans are
available on a first come first served basis for the Provincial fiscal year. The $50,000
loan limit is on a per owner basis, not on a per property basis. The details of the current
Tile Loan Program were announced April 29, 2008.

COMMENTS

The Tile Drainage Act requires that the Council of the local municipality adopt an
authorizing debenture by-law for tile loans.



Chatham-Kent Council at its meeting held on October 6, 2008
Page 31 of 38
The following inspections have met the criteria as set out under the Tile Drainage Act.

Tile Drainage Loan Inspections Completed and Loans Requested

                                    Land to                      Amount of         Annual
     Roll No.
                                   be Drained                 Loan Requested      Payment

                    Pt Lots 6,7,8 Concession 13
360.001.59400                                                       $47,900.00       $ 6,508.08
                    Community of Camden (Gore)

                    Pt Lot 13 Concession 12
410.005.49700                                                       $19,500.00       $ 2,649.43
                    Community of Chatham Twp.

                    N Pt Lot 12 Concession 12
060.004.04300                                                       $17,200.00       $ 2,336.93
                    Community of Tilbury East

TOTAL                                                               $84,600.00       $11,494.44


COMMUNITY STRATEGIC PLAN

The recommendation in this report supports the following objectives and strategic
directions:

B: Economy – We are a prosperous community
      B4: Encourage the continuing growth of a diversified and sustainable economic base

Desired Outcomes/Proposed Activities

•   Develop and promote available industrial/commercial/residential/agricultural
    properties.

The recommendation will not adversely impact on the remainder of the Community
Strategic Plan.

CONSULTATION

Correspondence has been received this year from the office of the Minister of
Agriculture and Food, Leona Dombrowsky, announcing that funding is available through
the Tile Loan Program for the 2008/2009 fiscal year.

FINANCIAL IMPLICATIONS

There are no financial implications resulting from the recommendation.

Prepared by:                                      Reviewed by:

____________________________                      __________________________
Lynn Tyhurst                                      Tim Dick, C.E.T.
Drainage Analyst                                  Director
                                                  Drainage, Environmental & Fleet Division




Reviewed by:                                      Reviewed by:

____________________________                      ___________________________
Leo Denys, P. Eng.                                C.D. Weldon
General Manager                                   Chief Administrative Officer

Chatham-Kent Council at its meeting held on October 6, 2008
Page 32 of 38
Infrastructure and Engineering Services
Councillor Fluker moved, Councillor Crew seconded:

“That three readings be given to the Rating By-law for Tile Loan Debenture #
2008-11 for November 1, 2008 imposing special annual drainage rates upon the
Tile Drainage Act.”

The Mayor put the Motion
                                                                           Motion Carried


(c)    Extension of Parking Lease Agreement – Municipal Lot 7

                            MUNICIPALITY OF CHATHAM-KENT

                   INFRASTRUCTURE AND ENGINEERING SERVICES

                          ENGINEERING AND TRAFFIC DIVISION

TO:               Mayor and Members of Council

FROM:             Gary Northcott, P.Eng.
                  Director, Engineering and Transportation Division,

DATE:             September 23, 2008

SUBJECT:          Extension of Parking Lease Agreement – Municipal Lot 7


RECOMMENDATION

It is recommended that:

      1. The Mayor and Clerk be authorized to enter into an agreement for the continued
          use of Municipal Parking Lot 7 with 1156222 Ontario Limited for a term of 5 years
          with provision for a 5 year extension to a maximum of 10 years.

BACKGROUND

The former City of Chatham had entered into a lease agreement for the development
and lease of Municipal Lot 7 at the corner of King Street East and William Street, the
former Canadian Pacific Railway (CPR) station site. The agreement saw the City of
Chatham(City) develop the property as a parking lot securing the lease agreement with
the owner(s) for an initial 5 years in 1996 with a provision for a 5 year extension. The
cost of the initial lease advance was $135,000 with additional site development costs at
$38,000. The estimated annual maintenance costs on the lot including the annual tax
assessment and lost interest on the loan for improvement costs would be offset by the
revenues generated under the business plan prepared by the former City during the
term of the agreement. There was also provision for recovery of the initial capital
investment of $135,000 plus the cost of paving and lighting of the lot with the
requirement of the owner to put up a bond secured by a charge/mortgage in favor of the
City in the amount of $188,000., due at the expiration of lease.

The 5 year extension clause was exercised by the Municipality of Chatham-Kent and
approved in a 2003 Report to Council, Works\2304.doc. This extension lapsed in 2006.
The continued general municipal use of the lot or the recovery of funds is not presently
secured by an agreement although the charge/mortgage on the property is still
applicable.

Chatham-Kent Council at its meeting held on October 6, 2008
Page 33 of 38
COMMENTS

Staff has held discussions with the property owner(s) on the intended use and present
need for the property. At this time the owner(s) had no immediate need(s) for the
property so there was consensus on continuing its current usage as a municipal parking
lot. This lot currently has developed 88 spaces which are a mix of metered and permits.
This lot primarily serves the businesses in the King Street East / William Street area.
This is consistent with the 2002 Downtown parking study undertaken by Delcan
Consultants which recommended the continued need to maintain this parking. It would
be appropriate to enter into another extension to the existing agreement at this time.

On consultation with the property owner(s) it is recommended that the agreement,
Appendix B, be renewed on the same terms and conditions from the present date for an
additional 10 years in 5 year increments. This would extend the usage unless otherwise
noted or agreed through to 2018. The security arrangement for the original loan and
improvements would be extended and the security re-established in favour of the
Municipality through the charge/mortgage for an additional 10 year period from 2008
through 2018 to be reviewed on the 5 year anniversary, 2013.

COMMUNITY STRATEGIC PLAN

The recommendation in this report supports the following objective and strategic
direction:

B: Economy- We are a prosperous community.
    B3: Maximize and enhance new and existing infrastructure to support economic
    and smart growth opportunities.

Desired Outcomes / Proposed Activities

•     Continue to support the development of our downtown areas as vibrant and
      attractive focal points in our communities

The recommendation will not adversely impact on the remainder of the Community
Strategic Plan.

CONSULTATION

The property owner(s) was consulted and has reviewed the agreement.

The Municipal Solicitor was consulted to review the agreement.

FINANCIAL IMPLICATIONS

There are no financial implications resulting from the recommendation(s).

Prepared by:

___________________________
Gary Northcott, P. Eng.
Director, Engineering and Transportation
Infrastructure and Engineering Services

Reviewed by:                                     Reviewed by:

____________________________                     _____________________________
Leo Denys, P. Eng.                               C. D. Weldon


Chatham-Kent Council at its meeting held on October 6, 2008
Page 34 of 38
General Manager                                  Chief Administrative Officer
Infrastructure and Engineering Services



Councillor Crew moved, Councillor Vercouteren seconded:

“That the Mayor and Clerk be authorized to enter into an agreement for the
continued use of Municipal Parking Lot 7 with 1156222 Ontario Limited for a term
of 5 years with provision for a 5 year extension to a maximum of 10 years.”

The Mayor put the Motion
                                                                                Motion Carried


12.    CLOSED SESSION

                           COUNCIL CLOSED SESSION REPORT
                                    October 6, 2008

MEMBERS: Chair Robbins, Mayor Hope, Councillors Brown, Clarke (arrived at 4:15
p.m.), Crew, Faas, Fluker, Gilbert (arrived at 3:25 p.m.), Herman, McGregor (arrived at
4:15 p.m.), Parsons, Pickard, Pinsonneault, Stirling, Sulman (arrived at 4:15 p.m.), and
Vercouteren.

Not in attendance: Councillor King and Councillor Weaver.

A disclosure of pecuniary interest on CSX was declared by:
     Councillor McGregor – owns abutting property
     Councillor Sulman – client

A disclosure of pecuniary interest on Item #1, property in Harwich, was declared by:
     Mayor Hope – due to potential family involved
     Councillor Vercouteren - client

During Closed Session of October 6, 2008, Council would report the following for
approval:

1.    Council directed Administration to counter offer a property located in the Community
      of Harwich.

2.    Council instructed Administration with respect to the CSX Transportation Chatham-
      Wallaceburg Rail Line recommendations.

3.    Council provided instruction to Administration on the Chatham Armoury property.

4.    Council received a presentation from Dave Weldon regarding the corporate review
      report his experience during his terms as Chief Administrative Officer during the past
      three months.




Councillor Robbins moved, Councillor Herman seconded:

“That the October 6, 2008 Closed Session Report be received as given.”

The Mayor put the Motion

Chatham-Kent Council at its meeting held on October 6, 2008
Page 35 of 38
                                                                          Motion Carried


13.        READING OF BY-LAWS

(a)   FIRST READING

Councillor McGregor moved, Councillor Parsons seconded:

“That the By-laws be taken as read for the first time.”

The Mayor put the Motion
                                                                          Motion Carried


(b)   SECOND READING

Councillor Robbins moved, Councillor Pinsonneault seconded:

“That the By-laws be taken as read for the second time.”

The Mayor put the Motion
                                                                          Motion Carried


(c)   COUNCIL TO GO INTO COMMITTEE, IF REQUIRED, TO DISCUSS BY-LAWS

(d)   RESUMPTION OF COUNCIL

(e)   THIRD AND FINAL READING

      i.     By-law imposing special annual drainage rates upon land in respect of which
             money is borrowed under the Tile Drainage Act

      ii.    By-law to confirm proceedings of the Council of The Corporation of the
             Municipality of Chatham-Kent at its meeting held on the 6th day of October,
             2008

Councillor Faas moved, Councillor Vercouteren seconded:

“That the By-laws be taken as read for the third time and finally passed.”

The Mayor put the Motion.
                                                                          Motion Carried


14.        APPROVAL OF COMMUNICATION ITEMS
(a)   Approval of the October 6, 2008 Council Information Package

1.    Staff Reports and Information
(a)   Letter to Carol-Anne Grenier, Project Officer, Correctional Service Canada from
      Elinor Mifflin, Clerk, dated September 16, 2008 re Restorative Justice Week –
      November 16-23, 2008.
(b)   Letter to the Crohn’s and Colits Foundation of Canada from Elinor Mifflin, Clerk
      dated September 16, 2008 re Crohn’s and Colits Awareness Month – November
      2008.
(c)   Action Items from the September 22, 2008 Council Meeting.

Chatham-Kent Council at its meeting held on October 6, 2008
Page 36 of 38
2.    Correspondence From
(a)   Letter from Cynthia Morton, Deputy Minister of Health Promotion to All Heads of
      Council dated September 10, 2008 re Expression of Interest in Sport Hosting
      Events for 2009-2010.
(b)   Letter from Donna Cansfield, Minister of Natural Resources to Mayor Randy Hope
      dated September 11, 2008 re Growing Forest Value Forum – October 2008 in
      Thunder Bay.
(c)   Letter from Giuliana Rossini, Director, Strategy & Conservation Officer, to Mayor
      Randy Hope dated September 15, 2008 re Hydro One Conservation and Demand
      Management Program.
(d)   Letter from Premier Dalton McGuinty to Mayor Randy Hope dated September 16,
      2008 re Chatham-Kent’s Wind Energy Projects.
(e)   Communication from the Federation of Canadian Municipalities dated September
      18, 2008 re Federal Election Update: FCM Members’ Section Login.
(f)   Letter from Rev. Michael Brooks, Minister of St. Andrew’s United Church to Mayor
      Hope dated September 19, 2008 re Bottled Water.
(g)   Letter from J. Dowell, Consultant Project Manager, McCormick Rankin Corporation
      dated September 22, 2008 re 401 Municipality of Chatham-Kent.
(h)   Thank you from Shell Canada for Municipal interest and participation during recent
      study into possible expansion of refinery in Sarnia.

3.    Resolutions
(a)   Resolution from the City of Kingston dated September 3, 2008 re “Heads and
      Beds” Payment Increases.
(b)   Resolution from the Town of Fort Erie dated September 10, 2008 re Niagara
      Health System – Hospital Improvement Plan.

4.    Invitations
(a)   Program at a Glance for the AMO – 2008 Counties, Region and Single Tier
      Conference being held in London, Ontario, October 28, 2008

5.    News Letters/News Releases/Advisory/Announcements/Media
      Releases/Articles
      •    AMO Member Communication Alert/For your Information
             • AMO Report to Members on August 2008 Board Meeting, Alert No.
               08/041
             • AMO Seeking Comment on its Immigration Paper: “Putting Out the
               Welcome Mat: Why Immigration Matters to Ontario’s Municipalities”, Alert
               No. 08/042
             • Federal Election 2008 and Ontario Municipalities, Alert No. 08/043
      •    FCM Member’s Advisory re Federal Election Update: Schedule of Upcoming
        FCM Election Activities


Councillor Robbins moved, Councillor Pinsonneault seconded:

“That the October 6, 2008 Council Information Package be approved.”

The Mayor put the Motion
                                                                        Motion Carried


Councillor Herman referred to Item #2(f) – Letter from Rev. Michael Brooks, Minister of
St. Andrew’s Church regarding Bottled Water. She requested an update from the PUC
regarding the equipment for bottling municipal water. Councillor Fluker explained that
this equipment will be used for emergencies only and will not be sold.



Chatham-Kent Council at its meeting held on October 6, 2008
Page 37 of 38
15.    NON-AGENDA BUSINESS
Councillor Gilbert moved, Councillor Pickard seconded:

“That Council, as recommended by Heritage Chatham-Kent Committee, add the
property located on Part Lot 17 & 18, Part Lot A, Plan 49, Community of Chatham
(City), municipally known as 12 Dufferin Avenue to the Chatham-Kent Heritage
Registry as a listed property.”

Councillor Gilbert noted that this property is not designated. She further noted that by
putting this property on the registry it allows for sixty days protection from the issuance
of a demolition permit. She further noted that the owner of this property has requested
that the property be designated and Heritage Chatham-Kent will be bringing forward a
recommendation on designation at a future meeting.

Councillor Sulman requested that the property owner be allowed to come before Council
as a deputation.

Councillor Brown sought clarification between listing a heritage designation and listing
the property on the Heritage Registry.

The Mayor put the Motion
                                                                             Motion Carried


16. RESOLUTION COUNCIL IN CLOSED SESSION & ADJOURNMENT

Councillor Robbins moved, Councillor Sulman seconded:

That Chatham-Kent Council adjourn to its next Meeting to be held at 6:00 p.m. on
Monday October 20, 2008 and that Chatham-Kent Council authorize itself to meet in
closed session prior to such Meeting to discuss any matters permitted by The Municipal
Act.

The Mayor put the Motion
                                                                             Motion Carried


The meeting adjourned at 10:50 pm


                                                              ____________________________
                                                              MAYOR – Randy R. Hope


                                                              ____________________________
                                                              CLERK – Elinor Mifflin




Chatham-Kent Council at its meeting held on October 6, 2008
Page 38 of 38

				
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