2011-04-04_Agenda Packet--Dossier de l'ordre du jourCity of Saint John
Common Council Meeting
Monday, April 04, 2011
Regular Meeting
1. Call to Order — Prayer
12:30 p.m. Council Chamber
1.1 Commissioner of Finance: 2011 Debenture Issue
1.2 Amendment to the Contribution Agreement Cultural Capitals of Canada -
Saint John 225
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OPEN SESSION
March 30, 2011
His Worship Mayor Ivan Court
And Members of Common Council
Your Worship and Councillors:
SUBJECT: 2011 DEBENTURE ISSUE
BACKGROUND:
The New Brunswick Municipal Finance Corporation is planning a bond issue in
the near future. While the issue will not be sold until the Corporation feels that
rates are reasonable, they have provided ranges within which the issue could be
sold. These are as follows:
Interest Rate: Not to exceed an average of 6.50%
Price, Net: Not to be less than $98.00 per $100.00 of debenture
Term: Serial form to mature in equal annual amounts over a
term not to exceed 15 years for the General Fund
capital other than the Police Complex, which is not to
exceed 25 years and 20 years for the Water &
Sewerage Utility.
Notice of motion was given at the February 28t" 2011 meeting of Common
Council regarding the need to borrow $41,000,000. In order to proceed with the
debenture financing it is now recommended that the following be adopted.
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SAINT JOHN
P.O. Box 1971 Saint John, NB Canada E2L 4L1 I www.saintjohn.ca I C.P. 1971 Saint John, N. -B. Canada E2L 4L1
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RECOMMENDATION:
Whereas occasion having arisen in the public interest for the following public
civic works and needed civic improvements, that is to say:
GENERAL FUND
General Government
$
2,000,000
Protective Services
$
2,500,000
Transportation Services
$
10,500,000
Economic Development
$
3,500,000
Parks and Recreation
$
3.500,000
$ 22,000,000
Protective Services (Police Complex) $ 5,000,000
$ 5,000,000
WATER & SEWERAGE UTILITY
Water System $ 7,000,000
Sewer System $ 7,000,000
$ 14.000.000
TOTAL $ 41,000,000
1. Therefore resolved that debentures be issued under provisions of the Acts
of Assembly 52, Victoria, Chapter 27, Section 29 and amendments thereto
to the amount of $41,000,000.
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2. Commissioner of Finance be authorized to issue and to sell to the New
Brunswick Municipal Finance Corporation (the "Corporation ") a City of
Saint John bond or debenture in the principal amount of $41,000,000 at
such terms and conditions as are recommended by the Corporation.
3. And further that the City of Saint John agrees to issue post -dated cheques
to the Corporation, or other such arrangements as the Corporation may
from time to time accept, in payment of principal and interest charges on
the above bond or debenture as and when they are required by the
Corporation.
4. And further that the Commissioner of Finance be hereby authorized to
receive an offer in connection with the foregoing debentures at a price not
less than $98 per $100 of debenture, at interest rates not to exceed an
average of 6.50% and at a term not to exceed 15 years for the issue
related to the General Fund capital, other than the Police Complex, which
is not to exceed 25 years and not to exceed 20 years for the Water &
Sewerage Utility.
5. And further that the Commissioner of Finance report to Common Council
the exact values for price per $100 of debenture, interest rate and term in
years, together with the date of the issue.
Respectfully subm
Gregory J.)Gdomans, CGA, MBA
Commi sioner of Finance
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REPORT TO COMMON COUNCIL
March 30, 2011
Mayor Ivan Court and
And Members of Common Council
Your Worship and Members of Council:
SUBJECT: Amendment to the Contribution Agreement
Cultural Capitals of Canada - Saint John 225
The City of Saint John
Last March, the City entered into a Contribution Agreement with the Minister of Canadian Heritage
respecting his Department's $750,000.00 contribution to the Saint John 225 celebrations in
conjunction with Saint John being named a "Cultural Capital of Canada" for 2010.
Attached is an Amendment to the Contribution Agreement making some minor alterations to the
Contribution Agreement and extending certain filing deadlines under same.
Recommendation:
That the Mayor and Common Clerk be authorized to execute the attached
Amendment to the Contribution Agreement between the City and the Minister of
Canadian Heritage.
Respectfully submitted,
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J. trick Woods, CGA
CITY MANAGER
Enc.
A
Project ID #5276/10 -7 -S5
AMENDMENT TO THE CONTRIBUTION AGREEMENT
AMENDMENT # 1
This Amendment made this 171i day of March, 2011.
BETWEEN: HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the
Minister of Canadian Heritage (hereinafter called "the Minister' and including any
person duly authorized to represent her/him).
AND: THE CITY OF SAINT JOHN, a municipality duly incorporated under the laws of
the province of New Brunswick and represented by Mr. Ivan Court, Mayor,
hereinafter referred to as the "Recipient ".
THIS AMENDMENT TESTIFIES that, in consideration of the mutual covenants herein, the parties agree
to amend the Contribution Agreement signed on March 31, 2010, as follows:
I.l . Within the text of the Contribution Agreement, clause 3.2 will be deleted and replaced by the
following:
3.2 Subject to termination, the Agreement covers the activities described in Annex "A" of
this Agreement for the period commencing on 2009/04/01 and ending on 2011/12/3 1.
Unless otherwise pre - authorized by the Minister, only goods and services rendered
within this time period shall be considered as eligible expenses.
2. PROJECT DESCRIPTION. SPECIFIC CONDITIONS AND BUDGET (ANNEX Al
2.1 Within Annex A of the Contribution Agreement, the description of activities proposed for
Celebration 225 shall be deleted and is replaced by the following:
Celebration 225: The People, Places and Events that Shaped Saint John: festivities to begin
May 18, 2010, the 225th anniversary of Saint John, to tell the story of the city through its
people, places and events. Special dates to be recognized are Multicultural Day, National
Aboriginal Day, Canada Day, New Brunswick Day, and the Acadian National Holiday.
Neighbourhood Celebration Kits will be distributed to help neighbourhood groups design their
own celebrations, and a Culinary Arts presentation will allow chefs to be inspired by the city's
strong artistic heritage to create commemorative dishes that reflect the history and culture of
Saint John throughout its 225 years. Festivities will end at the end of 2010 with a New Year's
Eve celebration that will bring the festival portion of the program to an official close.
2.2 Within Annex A of the Contribution Agreement, the description of activities proposed for
Reunion 2010 shall be deleted and is replaced by the following:
Reunion 2010: a four -day multi -stage music festival to highlight The work of Saint John artists.
3. FINANCIAL CONDITIONS (ANNEX B)
3.1 Within Annex B of the Contribution Agreement, clause 1.1 shall be deleted and is replaced by
the following:
1.1 Disbursements of the contribution to the Recipient will not exceed the following amount(s)
or percentage share of funding for the applicable fiscal year(s), as per the payment
breakdown and the eligible expenditures that will be incurred by the Recipient within the
fiscal year for which they are allocated:
Federal Government Fiscal Year 2009 -10:
The lesser of $201,450 or 75% of eligible expenses
Federal Government Fiscal Year 2010 -11:
The lesser of $548,550 or 75% of eligible expenses
Federal Government Fiscal Year 2011 -12: $0
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For any fiscal year, the maximum cumulative percentage of funding (after the initial fiscal
year and until the Iasi fiscal year of the funding period) may not exceed 75 % of eligible
expenses.
3.2 Within Annex B of the Contribution Agreement, clause 6.1.3 shall be deleted and is replaced by
the following:
6.1.3 Fiscal Year 2010 -2011
3.3 Within Annex B of the Contribution Agreement, clause 6.2 shall be deleted and is replaced by
The following:
6.2 A final payment representing the holdback shall be issued upon receipt and acceptance
of the following reports, certified by a person duly authorized by the Recipient:
Fiscal Year 2011 -2012
Holdback
Certified Financial Report
Payment Conditions
Reimbursement
for the period of
Conditions or type of reports
Period covered by the report
Recipient's
report
2011
submitted b
April 1 to
Cash Flow
Actuals: April I to June 30, 2010
August 1, 2010
June 30, 2010
Forecasts: July 1, 2010 to March
31, 20I 1
Interim Activity Report
April i to June 30, 2010
July 1 to
Cash Flow
Actuals: April I to September 30,
November 1,
September 30,
2010
2010
2010
Forecasts: October 1, 2010 to
March 31, 2011
Interim Activity Report
July I to September 30, 2010
October 1 to
Cash Flow
Actuals April 1 to December 3l,
February 1,
December 31,
Nate: Revised Cash Flow also
2010
2011
2010
serves to meet the requirement of
Forecasts: January I to March 31,
section 1.3 ofAnnev B
2011
Interim Activity Report
October I to December 31, 2010
January I to
Cash Flow
Actuals: April 1, 2010 to March
May 1, 2011
March 31, 2011
31, 2011
Forecasts: April 1 to December
31, 2011
Interim Activity Report
January 1 to March 31, 2011
3.3 Within Annex B of the Contribution Agreement, clause 6.2 shall be deleted and is replaced by
The following:
6.2 A final payment representing the holdback shall be issued upon receipt and acceptance
of the following reports, certified by a person duly authorized by the Recipient:
Fiscal Year 2011 -2012
Holdback
Certified Financial Report
Actual: April 1, 2009 to December
March 31, 2012
31,2011
Final Activity / Results Report
April 1, 2009 10 December 31,
2011
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5. PRECEDENCE
All other clauses contained in the Contribution Agreement signed by the parties on March 31, 2010
remain unchanged. In the event of any inconsistencies, the provisions of the current Amendment take
precedence over those of the original Contribution Agreement and any previous Amendment.
IN WITNESS WHEREOF, the parties hereto have signed this Agreement through duly authorized
representatives.
Recipient The Minister
Mr. Ivan Court Cynthia White Thomley
Mayor, City of Saint John Director General, Arts Policy Branch
Signature Signature
Date
Date
Witness Witness
Name (Print) Name (Print)
Signature Signature
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