2002-017 To authorize the execution of a letter of agreement between the Township of Oro-Medonte and the Queen in right of Ontario, as represented by the Agriculture, Food and Rural Affairs
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THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
BY-LAW NO. 2002-017
BEING A BY-LAW TO AUTHORIZE THE EXECUTION OF A LETTER OF
AGREEMENT BETWEEN THE TOWNSHIP OF ORO-MEDONTE
AND HER MAJESTY, THE QUEEN IN RIGHT OF ONTARIO, AS REPRESENTED
BY THE MINISTER OF AGRICULTURE, FOOD AND RURAL AFFAIRS
WHEREAS the Council of the Township of Oro-Medonte passed By-law Number 2001-
053 to execute an agreement with Her Majesty, the Queen in Right of Ontario, as
represented by the Minister of Agriculture, Food and Rural Affairs for funding under the
Ontario Small Town and Rural (OSTAR) Infrastructure initiative, to comply with the
Drinking Water Protection Regulation or Orders from the Ministry of the Environment;
AND WHEREAS funding under Option 1 Round 1 of the Ontario Small Town and Rural
e (OSTAR) Development Infrastructure initiative has been approved by the Ministry;
AND WHEREAS it is required that the Township of Oro-Medonte execute a letter of
agreement with the Ministry of Agriculture, Food and Rural Affairs to allow for the
transfer of funding to the Township;
NOW THEREFORE the Council for The Corporation of the Township of Oro-Medonte
hereby enacts as follows:
1. THAT the Mayor and Clerk are hereby authorized to execute a letter of
agreement with Her Majesty, The Queen in Right of Ontario, as represented by
the Minister of Agriculture, Food and Rural Affairs, said agreement attached
hereto as Schedule 'A' and forming part of this by-law.
2. THAT this by-law come into full force and effect upon final passing thereof.
It
BY-LAW READ A FIRST AND SECOND TIME THIS 6TH DAY OF FEBRUARY,
2002.
BY-LAW READ A THIRD AND FINAL TIME THIS 6th DAY OFFebruar:'l002.
THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
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Mayor, Ian Bard
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Scqedule 'A' to By-law No. 2002-017
Minister of Agriculture,
Food and Rural Affairs
Ministre de I'Agriculture,
de I' Alimentation
et des Affaires rurales
Nj
Ontario
Queen's Park, Ontario
M5S 1 83
January 17, 2002
Our File No.: 6219
Ms. Jennifer Zieleniewski
Chief Administrative Officer/Treasurer
The Township of Oro-Medonte
Box 100
Oro, ON LOL 2XO
Dear Ms. Zieleniewski:
RE: Letter of Agreement - OST AR Infrastructure initiative
Further to your participation in the Ontario Small Town and Rural (OST AR) Infrastructure
initiative (the "initiative"), HER MAJESTY THE QUEEN in RIGHT of ONTARIO, as
represented by the Minister of Agriculture, Food and Rural Affairs (the "Ministry"), is
prepared to provide the Corporation of The Township of Oro-Medonte (the
"Municipality"), the sum of $132,829.06 (the "Financial Assistance") subject to the
following terms and conditions:
1) The Financial Assistance is to be used by the Municipality only for the purposes of the
initiative and for works of a capital nature that are related directly and exclusively to the
initiative.
2) Expenditure of the Financial Assistance shall be properly accounted for in accordance
with Generally Accepted Accounting Principles (GAAP) and all books and records in
relation thereto shall be available for inspection by the Ministry upon reasonable notice.
3) Prior to the advance of the Financial Assistance, the Municipality shall provide the
Ministry with an indemnity and proof of insurance as outlined below.
The Municipality agrees that
a) in no event shall the Ministry be liable for:
Letter of Agreement - OST AR Infrastructure initiative
Page 1 of 4
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i) any bodily injury, death or property damage to the Municipality, its employees,
agents, or consultants or for any claim, demand or action by any third party
against the Recipient, its employees, agents, or Consultants, arising out of or in
any way related to this letter of agreement or the initiative; or
ii) any incidental, indirect, special or consequential damages, or any loss of use,
revenue or profit to the Municipality, its employees, agents, or consultants
arising out of or in any way related to this letter of agreement or the initiative.
b) The Municipality agrees to indemnify and hold harmless Her Majesty the Queen in
Right of Ontario, Her directors, officers, employees and agents from and against all
suits, judgements, claims, demands, expenses actions, causes of action and losses
(including, without limitation, reasonable legal expenses and any claim for lien made
pursuant to the Construction Lien Act (Ontario)) and for any and all liability for
damages to property and injury to persons (including death) howsoever caused, as a
result of any claim, demand or action arising out of or in any way related to this
letter of agreement or the initiative.
c) The Municipality further agrees to indemnify and hold harmless Her Majesty the
Queen in right of Ontario, Her directors, officers, employees and agents, for any
incidental, indirect, special or consequential damages, or any loss of use, revenue or
profit, by any person, entity or organization, including the Ministry, arising out of
or in any way related to this letter of agreement or the initiative.
4) The Municipality shall put in effect and maintain in full force and effect or cause to be
put into effect and maintained for the period for which monies are advanced under this
letter of agreement, with insurers acceptable to the Ministry, all the necessary insurance
that would be considered appropriate for a prudent municipality of this type initiative,
without limitation:
a) Comprehensive General Liability Insurance to an inclusive limit of not less than five
million dollars ($5,000,000) per occurrence for property, damage, bodily injury and
personal injury including, at least, the following policy endorsements:
i) Her Majesty the Queen in right of Ontario as an additional insured for the
purposes of the initiative only: Cross Liability; Contractual Liability;
Independent Contractors; Products and Completed Operations; Employer's
Liability and Voluntary Compensation; 30 day written notice of cancellation;
Tenants Legal Liability (if applicable); and Non-owned automobile coverage with
blanket contractual and physical damage coverage for Hired Automobiles.
ii) Property insurance to a limit commensurate to the full replacement cost value of
the asset on an "All Risks" basis including earthquake and flood. The policy
must include the following: Replacement Cost Value; Stated Amount Co-
Insurance; and Waiver of Subrogation.
Letter of Agreement - OST AR Infrastructure initiative
Page 2 of 4
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iii) Professional/Consultants Errors & Omissions Liability Insurance, insuring
liability for errors and omissions in the performance or failure to perform
professional services contemplated for which monies are advanced under this
letter of agreement, in the amount of not less than two million dollars
($2,000,000) per claim and in the annual aggregate.
5) Prior to any Financial Assistance being provided under this letter of agreement and
throughout the term of for which monies are advanced under this letter of agreement,
the Municipality shall provide the Ministry with a valid Certificate of Insurance that
references the initiative, confirms the above requirements and identifies major
exclusions in the policy.
6) The Municipality shall provide the Ministry a copy of the policy and any renewal or
replacement certificates as may be necessary.
7) The Municipality shall put in effect and maintain in full force and effect or cause to be
put into effect and maintained in full force and effect during the term of for which
monies are advanced under this letter of agreement:
a) a performance bond in the amount of 100% of the contract price for any contract for
the construction of the asset covering the performance of that construction contract
and the correction of any deficiencies; and
b) a labour and material payment bond in the amount of 50 % of the contract price for
any contract for the construction of the asset covering the payment for labour,
material or both.
8) If the Municipality and the Ministry do not enter into an agreement satisfactory to the
Ministry under the Initiative within 90 days from the receipt by the Municipality of the
OST AR Infrastructure Initiative Round 1 Funding Agreement for Infrastructure
Projects, the advanced funds shall be forthwith returned to the Ministry with interest at
the then current interest rate charged by the Province of Ontario on accounts receivable.
9) The Financial Assistance advanced pursuant to this letter of agreement shall be set off
against advances of funds under the agreement contemplated in paragraph 8.
10) The Financial Assistance advanced pursuant to this letter of agreement shall be subject
to the usual 10% holdback applicable to other OSTAR payments, payable upon proof of
completion of the initiative.
11) This letter of agreement shall not obligate the Ministry to advance any funds hereunder
or to advance any funds pursuant to the agreement contemplated by paragraph 8 and is
not intended to form any legal relationship between the parties, unless accepted by the
Municipality and thereupon, limited to the terms hereof.
Letter of Agreement - OST AR Infrastructure initiative
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If your Municipality agrees to the foregoing, please execute this letter below where
indicated and return it to the undersigned together with the Certificate of Insurance by
March 1, 2002.
Sincerely,
Brian
Minis r
The undersigned on behalf of the Corporation of The Township of Oro-Medonte, do
acknowledge that the Municipality has agreed to the aforesaid terms and conditions of this
letter and that we are properly authorized according to the by-laws of the Municipality to
provide this acknowledgement, indemnity and acceptance.
~~
Name: Neil Craig
Thk: Deputy Mayor
!~ r.vu" L 13,
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on behalf of The Township of Oro-Medonte
rYl~L
Seal Date
on behalf of The Township of Oro-Medonte
/3
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Letter of Agreement - OST AR Infrastructure initiative
Page 4 of 4
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Minister of Agriculture,
Food and Rural Affairs
~
Ontario
Ministre de I'Agriculture,
de I' Alimentation
et des Affaires rurales
Queen's Park, Ontario
M5S 183
February 19, 2002
Our File No.: 6219
Ms. Jennifer Zieleniewski
Chief Administrative Officer/Treasurer
The Township of Oro-Medonte
Box 100
Oro, ON LOL 2XO
Dear Ms. Zieleniewski:
Ontario Small Town and Rural (OSTAR) Development Infrastructure initiative
INTRODUCTION
I have been authorized by the Minister of Agriculture, Food and Rural Affairs to revise
certain terms and conditions outlined in the Letter of Agreement dated January 17, 2002
pertaining to the interim funding on your OST AR project.
The following revisions are noted:
1. The indemnity clauses are revised as indicated by the underlined sections in
Clauses 3b and 3c below.
2.
In Clause 4a (ii), earthquake and flood insurance is mandatory only for those
municipalities located in the designated earthquake zone in the Ottawa region.
The "waiver of subrogation" condition is deleted from Clause 4a (ii).
The deadline to provide the certificate of insurance is extended to April 30,
2002.
3.
4.
Amendment to Letter of Agreement - OST AR Infrastructure initiative
Page 1 of 3
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AMENDMENT
The terms and conditions pertaining to the indemnities in Clause 3 are revised as follows:
3) By April 30, 2002, the Municipality shall provide the ministry with an indemnity and
certificate of insurance as outlined below:
Q2. The Municipality agrees to indemnify and hold harmless Her Majesty the Queen in
Right of Ontario, Her directors, officers, employees and agents from and against all
suits, judgements, claims, demands, expenses actions, causes of action and losses
(including, without limitation, reasonable legal expenses and any claim for lien made
pursuant to the Construction Lien Act (Ontario)) and for any and all liability for
damages to property and injury to persons (including death) which Her Majesty in
right of Ontario, Her directors, officers, employees and agents may incur, otherwise
than by reason of their own negligence or wilful misconduct, as a result of or arising
out of or in relation to any breach by the Municipality of the terms of this
Agreement, or the Recipient's own negligence or wilful misconduct.
~ The Municipality further agrees to indemnify and hold harmless Her Majesty the
Queen in right of Ontario, Her directors, officers, employees and agents, for any
incidental, indirect, special or consequential damages, or any loss of use, revenue or
profit, which Her Majesty in right of Ontario, Her directors, officers, employees
and agents may incur, otherwise than by reason of their own negligence or wilful
misconduct, as a result of or arising out of or in relation to any breach by the
Municipality of the terms of this Agreement, or the Municipality's own negligence
or wilful misconduct.
The terms and conditions pertaining to insurance coverage in Clauses 4 and 5 are revised as
follows:
4) The Municipality shall, when appropriate for the stage of consultation and construction,
put in effect and maintain in full force and effect or cause to be put in effect and
maintained for the period for which monies are advanced under the Letter Agreement,
with insurers acceptable to the Ministry, all the necessary insurance that would be
considered appropriate for a prudent municipality for this type initiative, without
limitation:
a) ii) Property insurance to a limit commensurate to the full replacement cost of the
asset on an "All Risks" basis. Earthquake and flood insurance will be required only
for those municipalities in the Ottawa region as determined by the insurer to be in
the designated earthquake zone of Ontario. The policy must include the following:
Replacement Cost Value and Stated Amount Co-Insurance. [waiver of subrogation
omitted]
Amendment to Letter of Agreement - OST AR Infrastructure initiative
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5) The Municipality shall provide the Ministry with a valid Certificate of Insurance that
references the initiative, confirms the above requirements and identifies major
exclusions in the policy no later than April 30, 2002.
All other terms and conditions remain unchanged as contained in the Letter of Agreement
dated January 17, 2002.
If your Municipality agrees to the foregoing, please execute this letter below where
indicated and return, along with a copy of the executed original Letter of Agreement if not
already submitted, to the undersigned by March 1, 2002. Please note submissions must be
postmarked no later than this date in order to obtain interim funding.
Sincerely,
Christine R. Dukelow
Director, Rural Secretariat
The undersigned on behalf of the Corporation of The Township of Oro-Medonte, do
acknowledge that the Municipality has agreed to the aforesaid terms and conditions of this
amendment to the Letter of Agreement and that we are properly authorized according to the
by-laws of the Municipality to provide this acknowledgement, indemnity and acceptance.
Neil Crai
Deputy Mayor
Seal
on behalf of The Township of Oro-Medonte
Seal Date
on behalf of The Township of Oro-Medonte
Title: Clerk
Amendment to Letter of Agreement - OST AR Infrastructure initiative
Page 3 of 3
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@ Ontario
SuperBuild
SuperCroissance
Ministry of Agriculture and
Food
1 Stone Road West, 3NW
Guelph, ON N1G 4Y2
Tel: 1-866-306-7827
Fax: (519) 826-4336
Ontario Small Town and Rural Development Secretariat
June 6, 2002
Ms. Jennifer Zieleniewski
Chief Administrative Officer
Township of Oro-Medonte
Box 100
Ora, Ontario LOL 2XO
Dear Ms. Zieleniewski:
Re: Return of the Letter of Agreement
Ministere de I'Agriculture et
de I' Alimentation
36 etage
1, rue
Guel ,
Tel.
Please find enclosed a copy of your OSTAR Infrastructure Initiative Letter of Agreement
with original signatures for your files. The OST AR Secretariat has retained the necessary
copies for our files and is pleased to return the second copy original.
Should you have any questions or concerns, please feel to contact the OST AR secretariat
at 1-866-306-7827 or 1-866-30-0ST AR.
Sincerely,
Angela Allan
Financial Coordinator
I