2016-045 Authorize Certain New Capital Works (OILC)The Corporation of The Township of Oro-Medonte
By -Law No. 2016-045
A By -Law to Authorize Certain New Capital Works of The Township of Oro-
Medonte ("Municipality"); To Authorize the Submission of an Application to
Ontario Infrastructure and Lands Corporation ("OILC") for Financing Such
Capital Works; to Authorize Temporary Borrowing From OILC to Meet
Expenditures in Connection with Such Works; and to Authorize Long Term
Borrowing for Such Works Through the Issue of Debentures to OILC
Whereas the Municipal Act, 2001 (Ontario), as amended, (the "Act") provides that a
municipal power shall be exercised by by-law unless the municipality is specifically
authorized to do otherwise;
And Whereas it is now deemed to be expedient to authorize for the purposes of the
Municipality the new capital work(s) described in column (2) of Schedule "A"
(individually a "Capital Work", collectively the "Capital Works", as the case may be)
attached hereto and forming part of this By-law ("Schedule "A") in the amount of the
respective estimated expenditure set out in column (3) of Schedule "A", subject in each
case to approval by OILC of the financing for such Capital Work(s) that will be
requested by the Municipality in the Application as hereinafter defined;
And Whereas in accordance with section 4 of Ontario Regulation 403/02 (the
"Regulation"), the Council of the Municipality had its Treasurer calculate an updated
limit in respect of its most recent annual debt and financial obligation limit received from
the Ministry of Municipal Affairs and Housing (as so updated, the "Updated Limit"), and,
on the basis of the authorized estimated expenditure for the Capital Work or each
Capital Work, as the case may be, as set out in column (3) of Schedule "A" (the
"Authorized Expenditure" for any such Capital Work), the Treasurer calculated the
estimated annual amount payable in respect of the Capital Work or each Capital Work,
as the case may be, (collectively the "Estimated Annual Amount Payable") and
determined that the Estimated Annual Amount Payable does not cause the Municipality
to exceed the Updated Limit, and accordingly the approval of the Ontario Municipal
Board pursuant to the Regulation, is not required before any such Capital Work is
authorized by the Council of the Municipality;
And Whereas subsection 405(1) of the Act provides, amongst other things, that a
municipality may authorize temporary borrowing to meet expenditures made in
connection with a work to be financed in whole or in part by the issue of debentures if,
the municipality is an upper -tier municipality, a lower -tier municipality in a county or a
single -tier municipality and it has approved the issue of debentures for the work;
And Whereas subsection 401 (1) of the Act provides that a municipality may incur a
debt for municipal purposes, whether by borrowing money or in any other way, and may
issue debentures and prescribed financial instruments and enter prescribed financial
agreements for or in relation to the debt;
And Whereas the Act also provides that a municipality shall authorize long term
borrowing by the issue of debentures or through another municipality under section 403
or 404 of the Act;
And Whereas OILC has invited Ontario municipalities desirous of obtaining temporary
and long term debt financing in order to meet capital expenditures incurred on or after
January 1, 2004 in connection with eligible capital works to make application to OILC for
such financing by completing and submitting an application on the form provided by
OILC;
And Whereas the Municipality has completed and submitted an application to OILC
(the "Application") to request financing for the Capital Work(s) by way of long term
borrowing through the issue of debentures to OILC and by way of temporary borrowing
from OILC pending the issue of such debentures;
And Whereas OILC has accepted and has approved the Application;
BOX
Now Therefore The Council of The Corporation of the Township of Oro-Medonte
enacts as follows:
The Council of the Municipality hereby confirms, ratifies and approves the
execution by the Treasurer of the Application and the submission by such
authorized official of the Application, duly executed by such authorized official, to
OILC for the financing of the Capital Work(s) in the maximum aggregate principal
amount of $1,200,000 substantially in the form of Schedule "B" hereto and
forming part of this By-law, with such changes thereon as such authorized official
may hereafter approve, such execution and delivery to be conclusive evidence of
such approval.
2. (a) The undertaking of the Capital Work or of each Capital Work, as the case
may be, in the amount of the respective estimated Authorized Expenditure
set out in column (3) of Schedule "A" is hereby approved and authorized;
(b) any one or more of the Mayor and the Treasurer are hereby authorized to
conclude contracts on behalf of the Municipality for the undertaking of the
Capital Work or of each Capital Work, as the case may be, in accordance
with the Municipality's usual protocol;
(c) where applicable, the Engineer of the Municipality will forthwith make such
plans, profiles and specifications and furnish such information as in the
opinion of the Engineer are necessary for the undertaking of the Capital
Work or of each Capital Work, as the case may be; and
(d) where applicable, the undertaking of the Capital Work or of each Capital
Work, as the case may be, shall be carried on and executed under the
superintendence and according to the direction and orders of such
Engineer.
3. The Mayor and the Treasurer are hereby authorized to negotiate and enter into,
execute and deliver for and on behalf of the Municipality a financing agreement
(a "Financing Agreement") with OILC that provides for temporary and long term
borrowing from OILC in respect of the Capital Work(s) on such terms and
conditions as such authorized officials may approve, such execution and delivery
to be conclusive evidence of such approval.
4. The Mayor and/or the Treasurer are hereby authorized, pending the substantial
completion the Capital Work or each Capital Work, as the case may be, or as
otherwise agreed with OILC, to make temporary borrowings pursuant to section
405 of the Act in respect of the Capital Work or of each Capital Work, as the case
may be, on the terms and conditions provided in the Financing Agreement and
on such other terms and conditions as such authorized officials may agree, and
to sign such evidence of indebtedness as OILC may require (the "Note") and to
deliver the Note to OILC, such execution and delivery to be conclusive evidence
of such agreement; and the Treasurer is authorized to sign such certifications as
OILC may require in connection with such borrowings in respect of the Capital
Work(s); provided that the amount of borrowings allocated to the Capital Work or
to each Capital Work, as the case may be, does not exceed the Authorized
Expenditure for such Capital Work and does not exceed the related loan amount
set out in column (4) of Schedule "A" in respect of such Capital Work.
5. Subject to the terms and conditions of the Financing Agreement and such other
terms and conditions as OILC may otherwise require, the Mayor and the
Treasurer are hereby authorized to long term borrow for the Capital Work(s) and
to issue debentures to OILC on the terms and conditions provided in the
Financing Agreement and on such other terms and conditions as such authorized
officials may agree (the "Debentures"); provided that the principal amount of the
Debentures issued in respect of the Capital Work or of each Capital Work, as the
case may be, does not exceed the Authorized Expenditure for such Capital Work
and does not exceed the related loan amount set out in column (4) of Schedule
"A" in respect of such Capital Work.
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6. In accordance with the provisions of section 25 of the Ontario Infrastructure and
Lands Corporation Act, 2011, as amended from time to time hereafter, as
security for the payment by the Municipality of the indebtedness of the
Municipality to OILC under the Note and/or the Debentures, as the case may be
(the "Obligations"), the Municipality is hereby authorized to agree in writing with
OILC that the Minister of Finance is entitled, without notice to the Municipality, to
deduct from money appropriated by the Legislative Assembly of Ontario for
payment to the Municipality, amounts not exceeding the amounts that the
Municipality fails to pay OILC on account of the Obligations and to pay such
amounts to OILC from the Consolidated Revenue Fund.
7. For the purposes of meeting the Obligations, the Municipality shall provide for
raising in each year as part of the general levy, the amounts of principal and
interest payable in each year under the Note and/or any outstanding Debenture,
to the extent that the amounts have not been provided for by any other available
source including other taxes or fees or charges imposed on persons or property
by a by-law of any municipality.
8. (a) The Mayor and/or the Treasurer are hereby authorized to execute and
deliver the Note, the Mayor and the Treasurer are hereby authorized to
enter into, execute and deliver the Financing Agreement, and to issue the
Debentures, one or more of the Clerk and the Treasurer are hereby
authorized to generally do all things and to execute all other documents
and papers in the name of the Municipality in order to perform the
Obligations of the Municipality under the Financing Agreement and to
execute and deliver the Note and to issue the Debentures, and the
Treasurer is authorized to affix the Municipality's municipal seal to any
such documents and papers.
(b) The money realized in respect of the Note and the Debentures, including
any premium, and any earnings derived from the investment of that
money, after providing for the expenses related to the execution and
delivery of the Note and to the issue of the Debentures, if any, shall be
apportioned and applied to the respective Capital Work and to no other
purpose except as permitted by the Act.
9. This By-law takes effect on the day of passing.
By -Law Read a First, Second and Third time, and Passed this 23rd day of March,
2016.
The Corporation of the Township of Oro-Medonte
MT.=
las Irwin
Schedule "A"
to By -Law Number 2016-045
(1) (2) (3) (4)
Capital Work Description of Capital Work Estimated Loan Amount
Number Expenditure
1. Gore Road Bridge Replacement $1,200,000 $1,200,000
6X - L.aw
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (OILC)
LOAN APPLICATION
Application ID: 15106
Application Submit Date: Mar -09-2016
Program Year: 2015/2016
A. GENERAL INFORMATION - Borrowing Municipality
0 Q 1A �-0
A)a, a o /6 -oq- -
Name: The Township of Oro-Medonte
ID:
43047
Address: 148 Line 7 S
City:
Oro
Box 100 Postal Code:
L9M 1,18
Name of Treasurer(or Paul Gravelle
Title:
Director of Finance
equivalent):
Telephone Number: 705-487-2171
Fax No.:
705-487-0133
Email: pgravelle@oro-medonte.ca
B. CONTACT INFORMATION
Questions regarding the information contained in the application form should
be addressed to:
Name: Paul Gravelle
Title:
Director of finance
Telephone: 705-487-2171
Fax No.:
705-487-0133
Email: pgravelle@oro-medonte.ca
C. PROJECT SUMMARY INFORMATION
No. Project Name Category
Type
Loan Amount
1 Gore Rd. Bridge Replacement Municipal Bridges
$1,200,000.00
Infrastructure
Total Loan Amount
$1,200,000.00
Page 1 of 8
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (OILC)
LOAN APPLICATION
Project Details - Municipal Bridges Infrastructure
Project Name Gore Rd. Bridge Replacement
Category Municipal Bridges Infrastructure
Construction Start Date Feb -15-2016
Construction End Date Oct -31-2016
Please indicate below if any aspect of the project pertains to:
Energy Conservation:
❑ Yes ✓� No
The Municipal Eco Challenge Fund (MECF) is a three year, $20 million grant and $200 million loan initiative to
help municipalities reduce Green House Gas (GHG) emissions from their infrastructure.
Please indicate whether the loan is for a project that will reduce energy consumption or GHG emissions from a
municipally -owned facility (building, arena, etc.).
❑ Yes F✓ No
Is this project also being considered for an MECF grant?
❑ Yes ✓� No
Please provide:
An estimate of the reduction in energy consumption or GHG emissions as a result of the project.
or
A short description of the energy conservation benefits.
Address of the project:
Type of work (e.g. new construction, renovation of existing
facilities, redevelopment, deferred maintenance, etc.):
Description of the project:
Rd. Oro-Medonte
redevelopment
The existing bridge will be removed and replaced with a new structure. The bridge is in fair to poor
:ondition with a MTO bridge condition index of 35 out of 100. Severe concrete deterioration was
toted for all its components in 2015 inspection
Additional comments:
Page 2 of 8
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (OILC)
LOAN APPLICATION
What is the life span of the project in years? (i.e. the physical asset) 80
Please identify your Ministry contact (If applicable)
Ministry:
Contact Name:
Contact Phone:
Page 3 of 8
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (OILC)
LOAN APPLICATION
Project Information
Project Name Gore Rd. Bridge Replacement
Category Municipal Bridges Infrastructure
Project Cost (A)
$1,200,000.00
Project Funding/Financing
List existing and expected Funding/Financing sources for the project (eg. Reserves, other cash on hand,
approved grants, etc.).
Source/Description Timina Amount
Total Amount (B) $0.00
OILC Loan Amount (A -B) $1,200,000.00
Please enter your long-term borrowing requirements including the estimated date the funds are required.
Only include long-term borrowing in this section. If you anticipate that you will require short-term financing
during the construction phase of the project, the information will be gathered as part of the Financing
Agreement.
Estimated Date Required Amount
Oct -17-2016 $1,200,000.00
Total Long -Term Financing $1,200,000.00
Term (in vears) TVPe
10 Amortizing
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ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (OILC)
LOAN APPLICATION
D. DEBT AND REPAYMENT SUMMARY
Financial Information Returns (FIR)
Please be aware that OILC will be unable to complete the processing of your application until you have filed your
most current FIR with the Ministry of Municipal Affairs and Housing. If you have not filed your FIR, you should
submit your application to OILC and send your FIR to MMAH as soon as possible.
ARL
Please provide a copy of the Borrower's most recent ARL issued by MMAH.
Existing Borrowing:
Please provide the following details on the existing debt, including capital leases and unsecured debt.
Loan
#
Loan
Purpose
Initial
Amount
Amount
Outstanding
Annual
Interest
Date
Borrowed
Maturity
Year
Summary
Payment
Periodic
Payment
Borrowed
as per Most
Rate (%)
(mm/dd/yy
of Existing
Pledges,
Type
Amount
Payable
Frequency
Recent
yy)
Conditions,
Audited
Covenants
Financials
Please elaborate on re -financing plans and options for any existing "interest only" debt, if applicable
Please see existing 10 loans.
Existing Encumbrances:
Does the Borrower have any existing liens, pledges and any other encumbrances on existing assets?
❑ Yes ✓� No
If yes, please provide details:
Page 5 of 8
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (OILC)
LOAN APPLICATION
OILC Loan Repayment Information
Please indicate the source(s) of revenue you plan to use to repay the OILC Loan.
Source
User Fees
Service Charges
Development Charges
Connection Fees
Contribution to OILC Loan Pavments (%)
100
100
Description of Other Source
Audited Financial Statements
A copy of the most recent audited financial statements must be attached with this loan application.
Page 6 of 8
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (OILC)
LOAN APPLICATION
E. LITIGATION
Is there any litigation threatened or existing which would affect any projects or substantially
impair the Borrower's ability to pay debt service costs on its general obligation indebtedness?
Please indicate Yes or No.
❑ Yes Fv_1 No
Please complete the Certificate of Litigation template found under the Forms menu.
F. NON -REPAYMENT OF LOANS OR DEBENTURES
In the last 10 years has the Borrower ever failed to make a loan or debenture repayment on
time to any lender, including to the Provincial Government?
❑ Yes F,/� No
If yes, please provide details. If necessary, attach details.
G. PROVINCIAL GRANTS AS SECURITY
Pursuant to OILC's enabling legislation, the Minister of Finance may deduct funds from provincial grants to the
Borrower appropriated by the Legislative Assembly of Ontario for payment to OILC to satisfy any outstanding
unpaid amounts owed by the Borrower to OILC.
H. ATTACHMENTS
Please ensure all required documents are submitted with the signed application. OILC requires originals as
noted below to be mailed or couriered. Also, please retain a copy of all documents submitted to OILC for your
records.
• Loan Application Signature Page signed and dated by the appropriate individual (original to be
submitted)
• Certified and sealed copy of OILC template By -Law authorizing project borrowing and applying f
a loan (original with seal)
• Certificate of Treasurer Regarding Litigation using the OILC template (original, signed & sealed)
• Updated Certified Annual Repayment Limit Calculation (original)
• OMB approval if exceeding debt repayment limit, if applicable
• Capital Plan if applicable
• Project management letter
Page 7 of 8
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (OILC)
LOAN APPLICATION
�✓ I acknowledge and agree that all of the above referenced documents must be submitted in the form required
by OILC and understand that the application will not be processed until such documents have been fully
completed and received by Infrastructure Ontario.
Please note: OILC retains the right to request and review any additional information or documents at its
discretion.
❑✓ I acknowledge that I have read and understood the Project Management and Best Practices Reporting
Requirements
Confidential Information
OILC is an institution to which the Freedom of Information and Protection of Privacy Act (Ontario) applies.
Information and supporting documents submitted by the Borrower to process the loan application will be kept
secure and confidential, subject to any applicable laws or rules of a court or tribunal having jurisdiction.
Page 8 of 8