Finance and Economic Development Committee AGENDA 25 Tuesday, 2 October 2012, 9:30 a.m. Champlain Room, 110 Laurier Avenue West Committee Coordinator Diane Blais, 613-580-2424, ext. 28091 Diane.Blais@ottawa.ca Committee Members: Chair: Mayor J. Watson Vice-Chair: Councillor / conseiller P. Clark Councillors R. Chiarelli, D. Deans, K. Egli, A. Hubley, P. Hume, M. McRae, M. Taylor, D. Thompson, M. Wilkinson CONFIRMATION OF MINUTES Minutes 24 - Finance and Economic Development Committee meeting of 19 September 2012; and Minutes 2 – Joint Finance and Economic Development Committee and Governance Renewal Sub-Committee meeting of 30 August 2012 DECLARATIONS OF INTEREST AUDIT SUB-COMMITTEE 1. OFFICE OF THE AUDITOR GENERAL (OAG) – 2013 WORK PLAN, BY-LAW AND PROTOCOL AMENDMENTS AND SUCCESSION PLAN ACS2012-OAG-BVG-0002 CITY-WIDE 01 That the Finance and Economic Development Committee recommend Council approve the 2013 OAG’s Work Plan and the amendments to the Audit Protocol and receive this report. OTTAWA MUNICIPAL CAMPGROUND AUTHORITY 2. OTTAWA MUNICIPAL CAMPGROUND AUTHORITY - ANNUAL REPORT ACS2012-CMR-OMC-0003 BAY (7) 10 That the Finance and Economic Development Committee recommend Council receive this report for information. PLANNING AND INFRASTRUCTURE INFRASTRUCTURE SERVICES 3. COMPREHENSIVE ASSET MANAGEMENT PROGRAM ACS2012-PAI-INF-0007 CITY-WIDE 21 (Tabled at the meeting of September 19, 2012.) At its meeting of 2 October 2012, that the Finance and Economic Development Committee recommend Council: a) Receive the Comprehensive Asset Management Program, 2012 State of the Asset Report (Document 1); b) Approve the Comprehensive Asset Management Policy (Document 2); c) Approve an infrastructure renewal funding target, indexed annually to construction inflation, to maintain City assets in a state of good repair, as outlined in this report, to be reached within 10 years and included for consideration as part of each year’s draft budget; and d) Approve inclusion of an Asset Management section in all relevant future Committee and Council reports to ensure the long-term infrastructure implications of recommended projects are specifically identified. NOTICE OF MOTION RELATIVE TO THIS ITEM Moved by Councillor M. Wilkinson That the following be added as recommendation e) to the report: e) Approve working with the Association of Municipalities of Ontario (AMO) and teh Federation of Canadian Municipalities (FCM) to achieve long-range infrastructure funding for municipalities. CITY TREASURER AND FINANCE 4. LONG RANGE FINANCIAL PLAN IV - TAX SUPPORTED CAPITAL ACS2012-CMR-FIN-0039 CITY-WIDE 47 That the Finance and Economic Development Committee recommend that Council approve that the existing debt policies be continued while providing the required investment to maintain City assets in a state of good repair, and that in order to address the funding target as recommended in the Comprehensive Asset Management Program report, the following funding strategies be approved for consideration as part of future budgets: 1. That the use of debt for tax supported capital works continue to correspond to the amount of debt retiring within the year in accordance with Council’s adopted target to limit debt service for tax supported debt to 7.5% of own source revenues; 2. To ensure capital funding is maintained and increased, starting in the 2013 budget year, the annual contribution from taxation for capital projects be increased by inflation (Construction Price Index) and by an additional $5.4 million per year for both the renewal of existing assets and the increase in the asset base, as a priority within Council’s approved tax targets; 3. Starting in the 2015 budget year, the portion of the contribution to capital used to fund capital projects classified as strategic initiatives (new capital works) be maintained at $20 million per year and that priority be given, after the completion of the “Service Ottawa” project, to infrastructure investment; 4. Starting in the 2015 budget year, the enhancement component of any capital renewal project be identified and approved separately; 5. That the City of Ottawa Endowment Fund be maintained at $200 million and any excess continue to be directed to fund the capital program; and 6. That Council’s priorities for the use of any future federal or provincial infrastructure funding programs be for the renewal of existing assets and transit related projects included in the Transportation Master Plan. 5. DELEGATION OF AUTHORITY – CONTRACTS AWARDED FOR THE PERIOD APRIL 1, 2012 TO JUNE 30, 2012 ACS2012-CMR-FIN-0038 CITY-WIDE 75 That the Finance and Economic Development Committee and Council receive this report for information. CITY MANAGER’S OFFICE 6. LANSDOWNE PARTNERSHIP PLAN - AUTHORIZATION TO PROCEED WITH LEGAL CLOSE AND IMPLEMENTATION ACS2012-PAI-INF-0010 CITY-WIDE 83 That the Finance and Economic Development Committee recommend Council: 1. Approve that By-laws 2005-439 and 2004-239, being by-laws regulating permanent and temporary signs on private property,  be amended so as to establish Lansdowne as a special signage zone where the implementation of signage, including the review and approval for purposes of issuing sign permits, will be in accordance with the policies, directions, and regulations set out in the Lansdowne Signage and Way-finding Plan approved by Council on June 27, 2012, as revised by this report, and that the required by-laws setting out the details of the amendments be brought forward for enactment by Council prior to the end of 2012. 2. Approve the Heritage Easement Agreement between the City of Ottawa and the Ontario Heritage Trust as outlined in Document 1 to this report and authorize the City Manager to execute the Agreement on behalf of the City. 3. Approve an increase of $12 Million in capital authority and the funding sources as outlined in this report. 4. Receive the final report on the satisfaction of all of the conditions precedent to close the Lansdowne Partnership Plan Project Agreement as outlined in Document 4 to this report, as amended by the recommendations above. 5. Approve the legal close of the Lansdowne Partnership Plan in order to move to the construction stage of the redevelopment of Lansdowne Park and approve that the City Manager be delegated the authority to carry out the intent of the foregoing approvals including, but not limited to, the execution and delivery of such other agreements, documents, instruments, acts and things as are required or deemed necessary or desirable to give full effect to the terms of this report and the transactions contemplated herein. CITY CLERK AND SOLICITOR DEPARTMENT 7. LANSDOWNE PARTNERSHIP PLAN IMPLEMENTATION – FINAL REPORT ON LEGAL AGREEMENTS ACS2012-CMR-LEG-0002 CITY-WIDE 177 That the Finance and Economic Development Committee recommend Council: 1. Approve amendments to the Lansdowne Partnership Plan Project Agreement, as contemplated by the updated LPP Project Agreement Framework, as follows: (a) That the previously approved LPP Project Agreement Framework be amended to state that the City will agree to act reasonably, in accordance with pre-determined criteria, in deciding whether to permit a sale of either or both of the Canadian Football League team and/or the Ontario Hockey League team in exchange for a binding commitment by the Ottawa Sports and Entertainment Group (OSEG), or OSEG’s successor, to extend its legal obligations to operate the teams for the first eight (8) years under the Lansdowne Partnership Plan instead of the current, first five (5) years, as described in this report; (b) That the Project Agreement be amended to treat any cost overruns above the conditional guaranteed maximum price contract incurred by the members of OSEG for the City’s portion of the Stadium Parking Garage as Additional Equity under the Closed System for the Lansdowne Partnership Plan, as described in this report; and, (c) That the description of the formula for City Funding Equity in the previously approved LPP Project Agreement Framework be amended to read as follows, “the lesser of the Maximum City Cost or the actual cost borne by the City for the Stadium Improvements and City’s share of Cost of Parking less proceeds from the sale of air rights, less the amount that can be debentured from 75% of the realty taxes estimated from the project other than the residential component, less the amount that can be debentured from the avoided costs of $3.8 million per year of the City by it not having to operate the Stadium” and that the Project Agreement be revised accordingly, as further described in this report. 2. Confirm that the priorities for the distribution of net cash flow between the City and OSEG in the Closed System under the LPP are as set out in the previously approved June 28, 2010 LPP Project Agreement Framework referenced in this report. 3. Approve the updated LPP Project Agreement Framework as described in this report and attached as Document 1 – “Overview of Structure and Content – Final LPP Project Agreements” as amended by the above recommendations. 4. Receive the final legal Agreements, as amended by the recommendations above and by the updated LPP Project Agreement Framework, as set out in Document 2 – “Listing of Final LPP Legal Agreements on file with the City Clerk and Solicitor”. 8. STATUS UPDATE – FINANCE AND ECONOMIC DEVELOPMENT COMMITTEE INQUIRIES AND MOTIONS - FOR THE PERIOD ENDING 21 SEPTEMBER 2012 ACS2012-CMR-CCB-0073 CITY-WIDE 257 That the Finance and Economic Development Committee receive this report for information. CORPORATE PROGRAMS AND BUSINESS SERVICES 9. QUARTERLY PERFORMANCE REPORT TO COUNCIL, Q2: APRIL 1 – JUNE 30, 2012 ACS2012-CMR-OCM-0017 CITY-WIDE 263 1. That the Finance and Economic Development Committee receive the attached report and refer it for review and discussion at the following standing committee meetings: * Transportation Committee – October 3, 2012 * Agriculture and Rural Affairs Committee – October 4, 2012 * Planning Committee – October 9, 2012 * Environment Committee – October 16, 2012 * Community and Protective Services Committee – October 18, 2012 2. That Council receive the report for information on October 24, 2012 once it has been reviewed by standing committees. PLANNING AND INFRASTRUCTURE REAL ESTATE PARTNERSHIPS AND DEVELOPMENT OFFICE 10. LEASE - RIVERAIN PARK – OTHER PROPERTIES - NATIONAL CAPITAL COMMISSION ACS2012-PAI-REP-0021 Rideau-Vanier (12) 271 That the Finance and Economic Development Committee recommend Council approve a lease between the City of Ottawa and the National Capital Commission (NCC) for the property at 400 North River Road, known as Riverain Park, for a forty-nine (49) year term at a rental rate for the term of $1, and that in kind services (maintenance) on various NCC properties in the amount of $370,000 per annum be performed to reflect the current market lease value of the Riverain Park property.  11. SURPLUS DECLARATION AND SALE – 1357 KITCHENER AVENUE ACS2012-PAI-REP-0026 RIVER (16) 277 That the Finance and Economic Development Committee declare as surplus to the City’s needs two (2) residential building lots located at 1357 Kitchener Avenue shown as Parcels ‘A’ and ‘B’ on Document 1, and authorize staff to proceed with the sale of the lots in accordance with the City’s Disposal of Real Property Policy. 12. PROPERTY ACQUISITION - URBAN NATURAL FEATURES: UNA #98 – RIVERSIDE SOUTH FOREST AND UNA  #100 – ARMSTRONG ROAD SOUTH WOODS – URBANDALE CORPORATION AND RIVERSIDE SOUTH DEVELOPMENT CORPORATION ACS2012-PAI-REP-0035 GLOUCESTER-SOUTH NEPEAN (22) 283 That the Finance and Economic Development Committee recommend Council approve: 1. The Urban Natural Features acquisitions described in this report in accordance with the terms and conditions contained in a Memorandum of Understanding between City of Ottawa and Urbandale Corporation and Riverside South Development Corporation attached as Document 1; and 2. Subject to approval of Recommendations 1 and to the City satisfying all requirements of the Disposal of Real Property Policy, the delegation of authority to the Deputy City Manager, Planning and Infrastructure to declare surplus the City lands described as Parcel 5 on Document 2, and to finalize and execute the required agreements with Urbandale Corporation and Riverside South Development Corporation. ECONOMIC DEVELOPMENT AND INNOVATION 13. CITY OF OTTAWA’S RESPONSE TO ONTARIO LOTTERY GAMING CORPORATION REQUEST FOR EXPRESSIONS OF INTEREST ACS2012-CMR-OCM-0021 CITY-WIDE 297 (Timed item – 5:00 p.m.) That the Finance and Economic Development Committee recommend Council: 1. Approve that the City of Ottawa respond to the Ontario Lottery Gaming Corporation’s ("OLG") Request for Interest (RFI) by sending a letter from the Mayor stating that the City of Ottawa supports in principle becoming a "host city" for a gaming entertainment centre; 2. Direct staff to provide an analysis that gives a broad picture of the potential economic benefits and impacts of a gaming facility for the City of Ottawa. As part of this analysis, staff will consult with relevant stakeholders and consult with Ottawa Public Health staff on the potential public health impacts of an expanded gaming facility in Ottawa, including providing an overview of the current mitigation measures for populations at-risk of problem gambling. The staff report will be provided to FEDCO and Council when Council reconsiders the matter once a preferred proponent has been selected by OLG. INFORMATION PREVIOUSLY DISTRIBUTED A. 2013 VEHICLE GROWTH ACS2012-COS-PWS-0014-IPD CITY-WIDE B. CITY OF OTTAWA’S RESPONSE TO THE PROVINCE’S PROPOSED CHANGES TO REGULATIONS OF THE AODA ACS2012-CMR-OCM-0020-IPD CITY-WIDE C. MPAC ASSESSMENT NOTICES ACS2012-CMR-FIN-0041-IPD CITY-WIDE NOTICE OF MOTION (FOR CONSIDERATION AT SUBSEQUENT MEETING) OTHER BUSINESS INQUIRIES ADJOURNMENT NEXT MEETING Tuesday, 6 November 2012 Note: 1. Please note that any written or verbal submissions (including your name but excluding personal contact information) will form part of the public record and be made available to City Council and the public. 2. Reports requiring Council consideration will normally be presented to Council on 10 October 2012 in Finance and Economic Development Committee Report 25. CORPORATE SERVICES AND ECONOMIC DEVELOPMENT COMMITTEE AGENDA 56 19 SEPTEMBER 2006 ii COMITÉ DES SERVICES ORGANISATIONNELS ET DU DÉVELOPPEMENT ÉCONOMIQUE ORDRE DU JOUR 56 LE 19 SEPTEMBRE 2006 PAGE You can read this document on line at http://www.ottawa.ca Simultaneous interpretation in both official languages is available for any specific agenda item by calling the committee information number at least 24 hours in advance of the meeting. FINANCE AND ECONOMIC DEVELOPMENT COMMITTEE AGENDA 25 2 OCTOBER 2012 xi PAGE