4. MUNICIPAL CAPITAL FACILITIES AGREEMENT - OTTAWA HUMANE SOCIETY -

101 CHAMPAGNE AVENUE SOUTH

ENTENTE MUNICIPALE SUR LES IMMOBILISATIONS - SOCIÉTÉ PROTECTRICE DES ANIMAUX D'OTTAWA - 101, AVENUE CHAMPAGNE SUD

COMMITTEE RECOMMENDATIONS

1. That Council approve:

3. The City of Ottawa enter into a Municipal Capital Facilities Agreement (MCFA), as described in Document 1, pursuant to Section 110 of the Municipal Act 2001, with the Ottawa Humane Society (OHS) relating to the premises being occupied for pound and ancillary services at 101 Champagne Avenue South, commencing January 1, 2007 until December 31, 2012 or until it ceases to operate and provide the same services to the City of Ottawa under the provisions of the MCFA at that location, whichever event occurs first.

5. A by-law of the City of Ottawa, as described in Document 2, be enacted to designate the premises, being occupied for the pound and ancillary services with the OHS, to be 55.4% exempt from taxation for municipal and school purposes, as permitted under Section 110 of the Municipal Act, 2001 and as defined in Ontario Regulation 46/94, commencing January 1, 2007 until December 31, 2012 or until it ceases to operate and provide the same services to the City of Ottawa under the provisions of the MCFA at that location , whichever event occurs first.

7. The Chief Corporate Services Officer be delegated the authority to finalize and execute the Municipal Capital Facilities Agreement as described in Document 1.

RECOMMENDATIONS DU COMITÉ

Que le Conseil approuve:

1. Que la Ville d’Ottawa conclue avec la Société protectrice des animaux d’Ottawa, conformément à l’article 110 de la Loi de 2001 sur les municipalités, l’entente municipale sur les immobilisations (EMI), décrite dans le document 1, à propos des locaux occupés par la fourrière et les services auxiliaires, au 101, avenue Champagne Sud, et que cette entente soit en vigueur du 1^er janvier 2007 jusqu’au 31 décembre 2012, ou jusqu’à ce que la Société mette un terme à ses activités et qu’elle cesse d’offrir ces mêmes services à la Ville d’Ottawa en vertu des dispositions de l’EMI à cet endroit, selon la première des deux occurrences.

2. Qu’un règlement de la Ville d’Ottawa, comme le décrit le document 2, soit promulgué pour que les locaux que la Société protectrice des animaux d’Ottawa occupe pour la fourrière et les services auxiliaires soient exonérés de 55,4 % des taxes municipales et scolaires, comme l’autorise l’article 110 de la Loi de 2001 sur les municipalités et comme le définit le Règlement 46/94 de l’Ontario, du 1^er janvier 2007 jusqu’au 31 décembre 2012, ou jusqu’à ce que la Société mette un terme à ses activités et cesse d’offrir ces mêmes services à la Ville d’Ottawa en vertu des dispositions de l’EMI à cet endroit, selon la première des deux occurrences.

3. Que le pouvoir de mettre la touche finale à l’entente municipale sur les immobilisations décrite au document 1, et d’exécuter cette entente, soit délégué au chef des Services généraux.

DOCUMENTATION

1. Chief Corporate Services Officer’s report dated 5 October 2006
(ACS2006-CRS-FIN-0040).

Report to/Rapport au:

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

05 October 2006 / le 05 octobre 2006

Submitted by/Soumis par : Greg Geddes, Chief Corporate Services Officer/

Chef des Services généraux

Contact Person/Personne ressource: Ken Hughes, Manager of Revenue / Gestionnaire, Recettes

Financial Services/Services financiers

(613) 580-2424 x13485, Ken.Hughes@ottawa.ca

Ward: Kitchisippi (15)

Ref N°: ACS2006-CRS-FIN-0040

SUBJECT:	MUNICIPAL CAPITAL FACILITIES AGREEMENT - OTTAWA HUMANE SOCIETY - 101 CHAMPAGNE AVENUE SOUTH

OBJET:	ENTENTE MUNICIPALE SUR LES IMMOBILISATIONS - SOCIÉTÉ PROTECTRICE DES ANIMAUX D'OTTAWA - 101, AVENUE CHAMPAGNE SUD

REPORT RECOMMENDATION

That the Corporate Services and Economic Development Committee recommend to Council that:

1. The City of Ottawa enter into a Municipal Capital Facilities Agreement (MCFA), as described in Document 1, pursuant to Section 110 of the Municipal Act 2001, with the Ottawa Humane Society (OHS) relating to the premises being occupied for pound and ancillary services at 101 Champagne Avenue South, commencing January 1, 2007 until December 31, 2012 or until it ceases to operate and provide the same services to the City of Ottawa under the provisions of the MCFA at that location, whichever event occurs first.

2. A by-law of the City of Ottawa, as described in Document 2, be enacted to designate the premises, being occupied for the pound and ancillary services with the OHS, to be 55.4% exempt from taxation for municipal and school purposes, as permitted under Section 110 of the Municipal Act, 2001 and as defined in Ontario Regulation 46/94, commencing January 1, 2007 until December 31, 2012 or until it ceases to operate and provide the same services to the City of Ottawa under the provisions of the MCFA at that location , whichever event occurs first.

3. The Chief Corporate Services Officer be delegated the authority to finalize and execute the Municipal Capital Facilities Agreement as described in Document 1.

RECOMMANDATION DU RAPPORT

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

BACKGROUND

Section 110 (1) and (6) of the Municipal Act, 2001, authorizes a municipal council to enter into capital facilities agreements with certain types of organizations whereby the organization is exempt from municipal and school taxes in exchange for the provision of services outlined in the agreement. Organizations mandated to protect, regulate and control animals are among those that may enter into such agreements with a municipality.

DISCUSSION

In 1996, in recognition of the essential animal pound services provided by the OHS for the former municipalities, the former City of Ottawa entered into its first MCFA with the OHS exempting it from 58% of its annual assessment commencing in 1996. The 58% tax relief was commensurate with the percentage of the OHS facility that supports the pound operation, which is a municipal service.

In exchange for tax relief, the MCFA required that the OHS provide pound services, sell dog licenses and collect municipal pound release fees. In the absence of such tax relief, the OHS would have sought to pass on to the municipality that operating cost through its funding arrangement with the City for the pound and associated services.

The City wishes to continue the MCFA, as provided in Document 1, commencing January 1, 2007 until December 31, 2012 or until OHS ceases to operate and provide the same services to the City of Ottawa under the provisions of this Agreement at that location, whichever event occurs first. As a result of some reconfiguration of space allocation at the OHS, the percent tax relief is now 55.4 %. The foregoing requires the enactment of a by-law, as provided in Document 2, that grants to the OHS an exemption from 55.4% of its taxation for municipal and school purposes.

CONSULTATION

The Legal Services Branch and By-law Services Branch have reviewed the report, MCFA and the proposed by-law and their comments have been incorporated.

Given the administrative nature of the recommendation, no public consultation was undertaken.

FINANCIAL IMPLICATIONS

The 55.4% residential tax relief will amount to approximately $8,466.37 of which $6,591.37 would be for City purposes and $1,875.00 for education purposes, which is based on the 2006 current value assessment (CVA) and tax rate. The annual tax relief amount will be based on the yearly CVA and tax rate.

SUPPORTING DOCUMENTATION

Document 1 - Municipal Capital Facilities Agreement and By-law

Document 2 - Municipal Capital Facilities By-Law

DISPOSITION

Corporate Services, Legal Services Branch to finalize the MCFA and to process the by-law for enactment.

City Clerk to notify the Municipal Property Assessment Corporation.

DOCUMENT 1

This Agreement made in triplicate, this day of , 2006.

BETWEEN:

CITY OF OTTAWA

Hereinafter referred to as the “City”

AND:

OTTAWA HUMANE SOCIETY

Hereinafter referred to as the “Society”

WHEREAS the Society operates a municipal animal shelter that complies with Provincial legislation governing animal pounds/shelters at 101 Champagne Avenue South in the City of Ottawa;

AND WHEREAS the Society owns the lands known municipally as 101 Champagne Avenue South in the City of Ottawa more particularly described in Annex “A” (the Lands”);

AND WHEREAS the City has entered into a Municipal Animal Shelter Services (MASS) Agreement with the Society to provide animal shelter services for the City and the Society will continue to adhere to all the provisions outlined in that Agreement or any new (MASS) Agreement that may follow this current one;

AND WHEREAS the Society wishes pursuant to Section 110 of the Municipal Act, 2001 to enter into an agreement with the City for the use of the Lands as a Municipal Capital Facility;

AND WHEREAS the City wishes pursuant to Section 110 of the Municipal Act, 2001 to exempt a portion of the lands from taxation for municipal and school purposes;

AND WHEREAS a significant portion of the Lands will be used for animal control purposes of the City thus qualifying the Lands as a class of municipal capital facility described in Ontario Regulation 46/94.

THEREFORE, in consideration of the making of this Agreement and the mutual covenants contained herein, the parties undertake, covenant and agree as follows:

DESIGNATION

1. The City will by by-law (substantially in the form attached as Annex “B”) designate the Lands as a municipal capital facility.

TERM

2. The term of this Agreement and the designation of the Lands as a municipal capital facility shall be from January 1st, 2007 to the earliest of:

(a) December 31st, 2012;

(b) the day the Society ceases to own the Lands; and

(c) the day the City ceases to use the Lands as a municipal capital facility as that term is described in Ontario Regulation 46/94 or amendments thereto.

TAX EXEMPTION

3. The City shall pursuant to Section 110(6) of the Municipal Act, 2001, exempt the "Lands" from 55.4% of the property taxation for municipal and school purposes, which percentage is commensurate with the percentage of the Society's building which may be said to support the pound and ancillary services.

ZONING

4. For the purposes of clarity, the City acknowledges and agrees that neither this Agreement nor the proposed by-law shall in any way affect the zoning of the Lands or the permitted uses of the Lands under applicable laws.

REGISTRATION

5. The by-law referred to in Section 1 of this Agreement shall be registered by the City on title of the Lands.

OBLIGATIONS AS COVENANTS

6. Each obligation expressed in this Agreement, even though not expressed as a covenant, is considered to be a covenant for all purposes.

ENTIRE AGREEMENT

7. The Agreement contains all the covenant, agreements and understanding between the parties concerning the subject matter.

ENUREMENT

8. This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

PARTIAL INVALIDITY

9. If any provision of this Agreement or the application of it to any person or circumstances is held to any extent invalid or unenforceable, the remainder of this Agreement or the application of the provisions to persons or circumstances other than those as to which it is held invalid or unenforceable is not affected.

FURTHER ASSURANCES

10. The parties shall do and execute all such further acts, deed, instruments or things as may be necessary or desirable for the purpose of carrying out the intent of this Agreement.

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement.

CITY OF OTTAWA

Per: ________________________________________

I have authority to bind the City

OTTAWA HUMANE SOCIETY

Per: _______________________________________

I have the authority to bind the Society

ANNEX “A”

Part Lot 7 and Lots 8, 9,10, 11, 22, 23, 24 and 25 and Part Lot 26, Plan 131037, Part of Lane, Plan 131037 as closed by Order CR234928, as in CR519221; OTTAWA/NEPEAN

ENTENTE MUNICIPALE SUR LES IMMOBILISATIONS - SOCIÉTÉ PROTECTRICE DES ANIMAUX D'OTTAWA - 101, AVENUE CHAMPAGNE SUD

DISCUSSION

CITY OF OTTAWA

DOCUMENT 2