Additions to Council, April 9, 2013ADDITIONS TO COUNCIL, TUESDAY, APRIL 9, 2013
Budget
1. Copy of 2013 Capital Budget presentation.
Reports
1. Niagara Falls Bus Maintenance Facility -copy of presentation
2. Additional Report & By -law
L- 2013 -19
Elgin Block Lease Extension, 4673 Ontario Avenue Ltd. and the City
A by -law to authorize the execution of an Extension of Lease Agreement with 4673 Ontario
Avenue Ltd. Respecting the extension of the Lease of a portion of the Elgin Block for the
Information Systems department.
4/8/2013
Update
Opportunity to address 2013 Capital Budget
• Outline of projects previously approved and
ongoing (January
22nd report F- 2013 -02)
• Capital Budget binders were provided
• Amendments were provided February 26th
• Additional amendments provided tonight
• Budget has been developed prioritizing
projects departmentally & corporately
• Based on affordability
1
4/8/2013
i6"°■ra: f ft‘i: a': 1'2'
Funding Sources
• Development Charges
• Special Purpose Reserves
• Gas Tax
• Provincial and Federal Grants
• External Contributions
• Traffic Lighting Replacement & Upgrades
• Victoria Centre Streetscape Revitilization
2
4/8/2013
1J,.ft".=Pis,4,160744
Fire $ 1,009,500
Municipal Works $ 25,564,828
Transportation $ 338,000
Recreation & Culture $ 227,929
Building $ 1,620,500
Library $ 157,000
Information Systems $ 251,499
Small Business Office $ 50,000
Cemeteries & Parks $ 1,168,000
Total
41,
- • .
Chart 1
• Included in Budget Binder
• Worksheet that summarizes projects &
funding sources
• Continued from 2012
• Preapproved in 2013
• Projects fully funded own sources
• Listing of Priority 1 projects
3
4/8/2013
Debt Management Strategy
• In 2012, staff presented a financial
planning tool to address capital asset
needs
• Identified strategy that
1) increased capital reinvestment
2) utilized existing debt servicing
retirement room
3) resulted in no new taxation
unicipaT1Y tlpdae
• No debt issued in 2012; approved $5,942,876
• Will be going to market for completed projects in
2013
• Will include additional $1,267,981 for Museum
• Three projects included in 2013 Budget require
debt financing:
Ailanthus Ave.
Kalar Road (updated)
City Hall HVAC
$790,475
$849,271
$863,062
4
90
80
70
In 60
50
• 40
30
20
10
0
Debt Projection by Year
A
(A) (P) Projection(P) (p)
(PI (P) (P) tP
(P)
(A) Actual
O .-1 N re) ocr If1 o 1-.. co Of O .-1 N en
.■1 N .-1 .-1 .--1 .-1 ri .--1 .--1 .--1 i N N N
co O co O co O co co O co O O O O
N N r4 N N N N N N N N N N N
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000 a
4,000,000 -
2,000,000 _
Comparison: Actual vs. Available Debt Financing
�-1 N M R 1/1 1D 1, CO of 0 rl N M
Co O Co o 0 0 0 0 0 0 0 0 0
N N N N N N N N N N N N N
an Available New Capital Investment with
debt
Actual / Committed New Capital
Investment with debt
4/8/2013
5
4/8/2013
6
08/04/2013
Proposed Niagara Falls Bus
Maintenance Facility
PROJECT OVERVIEW
April 9, 2013
Council Directions
Oct. 2011/Jan. 2012 /July 2012
• One Integrated Operation - "WEGO" and Niagara
Falls Transit Operations
• Maximize the Use of Provincial, Federal and GO
Funding ($22,300,000)
• Examine Indoor Bus Storage Options
• Energy Efficient Building— Energy Design Workshop
• Investigate Space Reductions & Design Changes
z
1
The Project
• Integrated Operations — Transit, WEGO & Go Transit
• Montrose Road Business Park (Kalar & Brown)
• 104,400 ft2 Building — Administration (13 %),
Maintenance (53 %) and Storage(36 Buses 34 %)
• Fully Accessible — Employees & Visitors
• Capable of Servicing Commercial Buses
• Equivalent to "LEED GOLD"
• EAA Approved
3
Indoor Bus Storage
• 36 Parking Spaces Included in Tender
• 12 Allocated for Go Transit Buses
• 24 Spaces Represent 60% of N.F. Transit /WEGO
Needs
• 80% of Fleet can be Stored using Maintenance Area
4
08/04/2013
2
Tender Process
• Prequalified 6 General Contractors
• 5 Bids Received - Aquicon Low Bid at $19,589,00
• Aquicon Completed MacBain & Grace Centre
• Tender Price Reflects the Space Reductions and
Design Changes Requested by Council
• Cost Reduced by Over $3M Since 90% Estimate
5
Comparison of Bus Maintenance Facility Budget to Project Costs (36 -Bay (60%) Storage Option)
VTS Capital Budget
Project C04 d6Nlmt (City)
Class'D'
(225'30%)
Estimate
Cl ass 'C'
(t 15 %(
Estimate
Cless'8
(31056)
Estimate
Class'4'
(x55) E
Tender Price
Architect DesliatKontiact AdmXAtration 51,155,000
51,529,900
51,529900
51,680,900
50,800,000
51,850,000
Project Managemere& Belated Services 5300,000
5243,SOO
5243,600
5244,600
5348000
5348,000
OEpethniratlmreetlptiona 525,000
505,000
$50,000
575,000
575000
520,000
EwI0s,*nMI Assessment (1PAP &Phase 1) 5100000
555,000
555,000
585,000
585,000
$85,000
Property Purchase -
5800,000
5925,000
H/8
11/5
H/5
Site Prapantbn end Development) And IT, Telephone and 51,000,000
sem. , APProaab, Perm., Survey
5822,5000
$822,500
5693,500
5693,500
693,500
Hydro, Slpage, Inspection &Cammbabning Allowances 5325,000
$325, W0
5325,000
5300,000
$210000
160,000
Building Construction • 36 Bays /5 %allowance) 518,005,000
$24,350,800
$22.635800
523,230,000
523464,500
521,000,000
Soil Improvement Program
aaa
5245,000
5258.000
Fnnhun, Fixtures & Equipment (FF &E) 5400,000
540,00
5400000
5400,00
5400000
400,000
Tools, Heavy Equipment $250000
5250,000
5250,000
5250,000
3250,000
250,000
Hoq{onstrucllon Cantinger,yA owiince 525000
525000
5250,0
5250,00
5150,00
1000
NMmeelomtebb HST (51.16%) 5400,00
540,000
5400 ,000
5400,000
$40,000
Tabl 522,300,00
529496,80
529,536,80
521,608,000
529,021,00
525,114.500
6
08/04/2013
3
Summary of Project Budget
A. Project Costs
Aquicon Contract
$19,589,000
Contingency
$1,400,000
Site Preparation
$758,000
Project Design, Approvals, Design,
Furnishings, Equipment, Road Improvements
$3,967,500
$25,714,500
B. Project Contributions
Federal, Provincial and Go Transit
$22,300,000
Difference
$3,414,500
7
City's Contribution
• $3,414,500 Contribution Required
• Represents 12% of Total Project Costs
• Compare to: $6M in Immediate Repairs
$15M for a New Facility
• 50 Year Investment in Transit
8
08/04/2013
4
Next Steps
• Execute Contract with Aquicon
• Initiate Construction in April 2013
• Complete Construction in Fall 2014
9
08/04/2013
5
L- 2013 -19
Nia a ra lls April 9, 2013
REPORT TO: Mayor James M. Diodati
and Members of the Municipal Council
City of Niagara Falls, Ontario
SUBMITTED BY: Legal Services
SUBJECT: L- 2013 -19
Elgin Block Lease Extension
4673 Ontario Avenue Ltd. and the City
Our File No. 2007 -311
RECOMMENDATION
1. That the City settle any possible claims relating to the Lease between Historic
Niagara Development Inc. and The Corporation of the City of Niagara Falls, dated
January 1, 2008, for a total payment of $6,000.00.
2. That the City enter an extension of the existing Lease in a form acceptable to the
Chief Administrative Officer, the Director of Finance and the City Solicitor, for the
premises currently occupied by the Information Systems department located at
4673 Ontario Avenue, in the City of Niagara Falls, at a gross all inclusive rent of
$4,000.00, plus HST, per month.
EXECUTIVE SUMMARY
The City's Lease of part of the Elgin Block expired at the end of February, 2011. Since that
time, the City has been an overholding Tenant. During the period of overholding, the
Landlord has the right to charge rent at a rate of 150% of the rate stated in the Lease.
Staff have negotiated a resolution of the situation with the Landlord. Under the terms of
the settlement, a claim for back rent will be settled for a total payment of $6,000.00 and an
Extension of Lease Agreement entered at a rate of $4,000.00 per month.
BACKGROUND
In 2008, the City entered into a Lease for the premises located at 4673 Ontario Avenue,
in the City of Niagara Falls; a building known as the Elgin Block. The monthly rent required
pursuant to that Lease is $3,099.88, subject to an adjustment based upon the Consumer
Price Index. During the life of the Lease, the Consumer Price Index adjustment was never
made, giving rise to a potential claim by the Landlord as against the City.
In August of 2010, the Elgin Block changed hands. The City continued to occupy the
premises. In February of 2013, the new Landlord gave notice of an intention to enforce its
rights under the Lease. Negotiations ensued.
The Landlord also had the premises measured by an architect and determined they were
larger than was assumed by Historic Niagara Development Inc. The architect has
determined the area of the space in question to be 3,993 ft.2. Thus, the rate of the rent
April 9, 2013
- 2 - L- 2013 -19
proposed for the Extension of Lease Agreement is approximately $10.00 per square foot.
The rate in the expired Lease was also $10.00 per square foot, however, the premises
were thought to be somewhat smaller and so the monthly rental was $3099.80.
The term of the Extension of Lease Agreement is to run from March 1, 2011, to February
29, 2016. The fourth and fifth years of the Extension of Lease Agreement (2014 and 2015)
will be subject to a cost -of- living increase based on the Consumer Price Index.
The potential claim for back rent against the City is at least $37,198.56.
ANALYSIS /RATIONALE
The proposal represents a reasonable resolution of the current situation. It resolves any
claims for back rent and secures the premises for the City for a further 2 years.
FINANCIAL /LEGAL IMPLICATIONS
A potential claim is resolved at a considerable discount.
CITY'S STRATEGIC COMMITMENT
The proposed transaction is in keeping with Council's commitment to financial
sustainability.
Recommended by:
Respectfully submitted:
KB
Ken Beaman, City Solicitor
K n Todd, Chief Administrative Officer
CITY OF NIAGARA FALLS
By -law No. 2013 -
A by -law to authorize the execution of an Extension of Lease Agreement with 4673 Ontario Avenue
Ltd. respecting the extension of the Lease of a portion of the Elgin Block for the Information
Systems department.
THE COUNCIL OF THE CORPORATION OF THE CITY OF NIAGARA FALLS ENACTS
AS FOLLOWS:
1. An Extension of Lease Agreement dated the 1" day of March, 2011 and made between 4673
Ontario Avenue Ltd. as Landlord, and The Corporation of the City of Niagara Falls as
Tenant, respecting the extension of the Lease Agreement for part of the Elgin Block building
municipally known as 4673 Ontario Avenue, Niagara Falls, for use by the Information
Systems department, as attached hereto, is hereby approved and authorized.
2. The Mayor and Clerk are hereby authorized to execute the said Extension of Lease
Agreement.
3. The Clerk is hereby authorized to affix the corporate seal thereto and to deliver the said
Extension of Lease Agreement.
Passed this ninth day of April, 2013.
DEAN IORFIDA, CITY CLERK JAMES M. DIODATI, MAYOR
First Reading:
Second Reading:
Third Reading:
April 9, 2013.
April 9, 2013.
April 9, 2013.
THIS EXTENSION OF LEASE AGREEMENT made this 1st day of March, 2011.
BETWEEN:
4673 ONTARIO AVENUE LTD.
Hereinafter referred to as the "Landlord"
OF THE FIRST PART;
- and -
THE CORPORATION OF THE CITY OF
NIAGARA FALLS
Hereinafter referred to as the "Tenant"
OF THE SECOND PART.
WHEREAS by Lease Agreement dated the 1 S` day of January, 2008, and made between Historic
Niagara Development Inc. as Landlord and The Corporation of the City of Niagara Falls as Tenant,
(the "Lease "), the parties entered into a Lease Agreement for part of the building municipally known
as 4673 Ontario Avenue, in the City of Niagara Falls, more particularly described in the Lease;
AND WHEREAS by Transfer registered as Instrument No. SN290940 on the 25`h day of August,
2010, the Lease was transferred from Historic Niagara Development Inc. to 4673 Ontario Avenue
Ltd., the Landlord herein;
AND WHEREAS the Lease, according to its terms, expired on the 28th day of February, 2011;
AND WHEREAS the Lessee wishes to extend the Lease for a further five (5) years commencing
March 1, 2011;
NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the sum of
One Dollar ($1.00) paid by the Tenant to the Landlord and other mutual terms and conditions herein
contained and subject to and with the benefit of the Landlord's and Tenant' s covenants, provisos and
conditions in all respects as are contained in the Lease, the parties agree as follows:
1. The Landlord agrees to extend the term of the Lease for an additional term of five (5) years
from the l' day of March, 2011 to the 29`h day of February, 2016.
2. The Tenant hereby covenants to pay during the extended term unto the Landlord, its
successors and assigns, (at such place or places as the Landlord shall designate from time to
-2-
time in writing), without any deductions, defalcation or abatement whatsoever, rent as
follows:
(a) For the first and second years of the extended term of the Lease, the sum of THIRTY
SEVEN THOUSAND AND ONE HUNDRED AND NINETY -EIGHT 56/100
DOLLARS ($37,198.56), plus applicable taxes, payable monthly in advance by the
Tenant to the Landlord in equal monthly instalments of THREE THOUSAND AND
NINETY -NINE 88/100 DOLLARS ($3,099.88), plus applicable taxes, on the 1 s`
day of each and every month, commencing on March 1, 2011, to and including
February 1, 2013;
(b) For the third year of the extended term of the Lease, the sum of FORTY -EIGHT
THOUSAND DOLLARS ($48,000.00), plus Harmonized Sales Tax, payable
monthly in advance by the Tenant to the Landlord in equal monthly instalments of
FOUR THOUSAND DOLLARS ($4,000.00), plus Harmonized Sales Tax, on the
15t day of each and every month, commencing on March 1, 2013, to and including
February 1, 2014;
(c) For the fourth year of the extended term of the Lease, the amount paid by the Tenant
as set out in paragraph 2(b) above shall increase by an amount defined as the
percentage increase in the Consumer Price Index for Canada as of February, 2014
and shall be payable on the same terms and conditions as set out in paragraph 2(b)
above; and
(d) For the fifth year of the extended term of the Lease, the amount paid by the Tenant
for the fourth year of the extended term of the Lease shall increase by an amount
defined as the percentage increase in the Consumer Price Index for Canada as of
February, 2015 and shall be payable on the same terms and conditions as set out in
paragraph 2(b) above.
3. The Tenant acknowledges that it has no further right to renew the Lease at the expiry of the
extended term.
4. The Landlord and Tenant hereby covenant that they will perform and observe their
covenants, provisos and conditions in the Lease as fully as if such covenants, provisos and
conditions had been herein repeated in full with such modifications only as are necessary to
make them applicable to this Extension of Lease Agreement.
IN WITNESS WHEREOF the parties hereto have hereunto affixed their corporate seals, duly
attested by the hands of their proper signing Officers and the said signing Officers certify that they
-3-
have authority to bind their corporation.
4673 ONTARIO AVENUE LTD.
Philip Ritchie, President
THE CORPORATION OF THE CITY
OF NIAGARA FALLS
Per:
James M. Diodati, Mayor
Dean Iorfida, City Clerk