4264 Schedule A - Dedicated Gas Tax Funds for Public Transportation ProgramMinistry of
Transportation
Office of the Minister
Ferguson Block, 3111 Floor n Wellesley St West
Toronto ON M7A 128
416 327-9200
www.ontario.ca/transportatfon
,JAN 2 2 2019
Mayor Stephen Molnar
Town ofTillsonburg
Minisb}re des
Transports
Bureau du ministre
Edifice Ferguson, 3• ~tage
77, rue Wellesley Quest
Toronto ON WA 128
416 327-9200
www.ontario.ca/1:ransports
10 Lisgar Ave
Tillsonburg ON N4G 5A5
Dear Mayor Molnar:
RE: Dedicated Gas Tax Funds for Public Transportation Program
~ Ontario
This Letter of Agreement between the Town of Tillsonburg (the "Municipality") and Her
Majesty the Queen in right of the Province of Ontario, as represented by the Minister of
Transportation for the Province of Ontario, (the "Ministry"), sets out the terms and
conditions for the provision and use of dedicated gas tax funds under the Dedicated
Gas Tax Funds for Public Transportation Program (the "Program"). Under the Program,
the Province of Ontario provides two cents out of the provincial gas tax to municipalities
to improve Ontario's transportation network and support economic development in
communities for public transportation expenditures.
The Ministry intends to provide dedicated gas tax funds to the Municipality in
accordance with the terms and conditions set out in this Letter of Agreement and the
enclosed Dedicated Gas Tax Funds for Public Transportation Program 2018/19
Guidelines and Requirements (the "guidelines and requirements").
In consideration of the mutual covenants and agreements contained in this Letter of
Agreement and the guidelines and requirements, which the Municipality has reviewed
and understands and are hereby incorporated by reference, and other good and
valuable consideration, the receipt and sufficiency of which are expressly
acknowledged, the Ministry and the Municipality agree as follows:
191. To support local public transportation services in the Municipality, the Ministry
agrees to provide funding to the Municipality under the Program to a maximum
amount of up to $52,793 ("the "Maximum Funds") in accordance with, and subject
to, the terms set out in this Letter of Agreement and, for greater clarity, the
guidelines and requirements.
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192. Subject to Section 1, the Ministry will, upon receipt of a fully signed copy of this
Letter of Agreement and a certified copy of the authorizing municipal by-law(s)
and, if applicable, resolution(s) for the Municipality to enter into this Letter of
Agreement, provide the Municipality with $39,595; and any remaining payment(s)
will be provided thereafter.
3. If another municipality authorizes the Municipality to provide local public __
transportation services on its behalf and authorizes the Municipality to request and
receive dedicated gas tax funds for those services also on its behalf, the
Municipality will in the by-law(s) and, if applicable, resolution(s) described in
section 2 confirm that the Municipality has the authority to provide those services
and request and receive those funds.
4. The Municipality agrees that any amount payable under this Letter of Agreement
may be subject, at the Ministry's sole discretion, to any other adjustments as set
out in the guidelines and requirements.
5. The Municipality will deposit the funds received under this Letter of Agreement in a
dedicated gas tax funds reserve account, and use such funds and any related
interest only in accordance with the guidelines and requirements.
6. The Municipality will adhere to the reporting and accountability measures set out in
the guidelines and requirements, and will provide all requested documents to the
Ministry. ·
7. The Municipality agrees that the funding provided to the Municipality pursuant to
this Letter of Agreement represents the full extent of the financial contribution from
the Ministry and the Province of Ontario under the Program for the 2018/19
Program year.
8. The Ministry may terminate this Letter of Agreement at any time, without liability,
penalty or costs upon giving at least thirty (30) days written notice to the
Municipality. If the Ministry terminates this Letter of Agreement, the Ministry may
take one or more of the following actions: (a) cancel all further payments of
dedicated gas tax funds; (b) demand the payment of any dedicated gas tax funds
remaining in the possession or under the control of the Municipality; and (c)
determine the reasonable costs for the Municipality to terminate any binding
agreement(s) for the acquisition of eligible public transportation services acquired,
or to be acquired, with dedicated gas tax funds provided under this Letter of
Agreement, and do either or both of the following: rn permit the Municipality to
offset such costs against the amount the Municipality owes pursuant to paragraph
B(b); and (ii) subject to section 1, provide the Municipality with funding to cover, iii
whole or in part, such costs. The funding may be provided only if there is an
appropriation for this purpose, and in no event will the funding result in _the
Maximum Funding exceeding the amount specified under Section 1.
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9. Any provisions which by their nature are intended to survive the termination or
expiration of this Letter of Agreement including, without limitation, those related to
disposition, accountability, records, audit, inspection, reporting, communication,
liability, indemnity, and rights and remedies will survive its termination or
expiration.
10. This Letter of Agreement may only be amended by a written agreement duly
executed by the Ministry and the Municipality.
11. The Municipality agrees that it will not assign any of its rights or obligations, or
both, under this Letter of Agreement.
12. The invalidity or unenforceability of any provision of this Letter of Agreement will
not affect the validity or enforceability of any other provision of this Letter of
Agreement. Any invalid or unenforceable provision will be deemed to be severed.
13. The term of this Letter of Agreement will commence on the date of the last
signature of this Letter of Agreement.
14. The Municipality hereby consents to the execution by the Ministry of this Letter of
Agreement by means of an electronic signature.
If the Municipality is satisfied with and accepts the terms and conditions of this Letter of
Agreement, please print it, secure the required signatures for it, and then return a fully
signed copy, in pdf format, to the following email account:
MTO-PGT@ontario.ca
Sincerely,
qt17z/;L
Jeff Yurek
Minister of Transportation
I have read and unde tand the terms of this Letter of Agreement, as set out above,
and, by signing bef'tJW, I am signifying the Municipality's consent to be bound by these
terms.
L...._,.,,,....
Per: ,{
cliiemnancial fficer!Treasurer
'L):,uH_ R.J r.: J,..__ 4 '°'
Date:=r;-""' :?,O ::) I" I 9 I
f>0ntar10
MINISTRY OF TRANSPORTATION
Dedicated Gas Tax Funds For
Public Transportation Program
2018/19 Guidelines and Requirements
TABLE OF CONTENTS
1. DEFINITIONS ........................................................................................................................ 3
2. INTRODUCTION ................................................................................................................... 5
3. GENERAL ELIGIBILITY REQUIREMENTS AND CONDITIONS .......................................... 5
4. GENERAL PROGRAM ALLOCATION METHODOLOGY AND PAYMENT PROCESS ........ 7
o 4.1 General Program Allocation Methodologies 7
o 4.2 Payment Process 8
5. DEDICATED GAS TAX FUNDS RESERVE ACCOUNT AND INTEREST ............................ 9
o 5.1 Dedicated Gas Tax Funds Reserve Account 9
o 5.2 Interest 1 0
6. ACQUISITION OF GOODS OR SERVICES, AND DISPOSAL OF ASSETS ...................... 10
7. ADJUSTMENT, WITHHOLDING AND PAYMENT OF DEDICATED GAS TAX FUNDS AND
OTHER REMEDIES .......................................................................................................... 10
8. ACCOUNTABILITY, RECORDS, AUDIT AND REPORTING REQUIREMENTS ................ 12
o 8.1 Accountability 12
o 8.2 Records 12
o 8.3 Audit 12
o 8.4 Reporting 13
9. COMMUNICATIONS ........................................................................................................... 13
10. CONFLICT OF INTEREST ................................................................................................ 14
11. FREEDOM OF INFORMATION AND PROTECTION OF PRIVACY ACT ......................... 14
12. LIABILITIES AND INDEMNITIES ...................................................................................... 15
13. COMPLIANCE WITH THE LAW ....................................................................................... 15
14. WHERE TO APPLY AND REQUEST OR PROVIDE INFORMATION .............................. 16
APPENDIX A: REPORTING FORMS ...................................................................................... 17
APPENDIX B: CANADIAN CONTENT POLICY ...................................................................... 18
APPENDIX C: VISUAL IDENTITY SIGNAGE REQUIREMENTS ............................................ 19
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DEDICATED GAS TAX FUNDS FOR PUBLIC TRANSPORTATION PROGRAM
2018/2019 GUIDELINES & REQUIREMENTS
1. DEFINITIONS
When used in these guidelines and requirements, the words set out below that import the
singular include the plural and vice versa:
"baseline spending" means a municipality's spending level, which equals the average
municipal own spending on public transportation for the years 2001 to 2003 and includes a
rate of 2% per year for inflation. For new transit systems that were not operational from 2001
to 2003, the baseline will be determined at the Ministry's discretion until the municipality has
three years of operation, whereby the first three years of municipal spending will be averaged
and a rate of 2% per year for inflation will be applied.
"Canadian Content Policy" means the Canadian Content for Transit Vehicle Procurement
Policy, attached to these guidelines and requirements as Appendix B: Canadian Content
Policy, which the Ministry may amend from time to time.
"dedicated gas tax funds" means the money provided by the Ministry to a municipality to be
used strictly towards eligible expenditures that are reasonable, in the opinion of the Ministry,
and related directly to the provision of public transportation services, and "dedicated gas tax
funding" has the same meaning.
"dedicated gas tax funds reserve account" means an interest bearing account set up by a
municipality, under its name and in a Canadian financial institution, where dedicated gas tax
funds are deposited and can be tracked separately from any other funds that may be in the
account. This does not need to be a separate account, so long as the dedicated gas tax funds
can be tracked separately.
"DFPTA" means the Dedicated Funding for Public Transportation Act, 2013, S.O. 2013, c. 2,
Sched. 3.
"eligible expenditures• means expenditures made by a municipality in direct support of public
transportation operating or capital, or both, costs in accordance with Article 3 of these
guidelines and requirements.
"guidelines and requirements· means these guidelines and requirements entitled "Dedicated
Gas Tax Funds for Public Transportation Program -2018/2019 Guidelines and
Requirements", including Appendices A, B and C to these guidelines and requirements, which
the Ministry may amend from time to time.
"host municipality" means a host municipality as described in Section 4.2.
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"indemnified parties" means Her Majesty the Queen in right of Ontario, Her ministers, agents,
appointees, and employees.
"letter of agreement" means an agreement entered into between the Ministry and a
municipality, including a host municipality, that sets out the terms and conditions under which
the Ministry agrees to provide dedicated gas tax funds to the municipality, including those
under these guidelines and requirements, and any amendments to the letter of agreement.
"losses" means any and all liability, loss, costs, damages or expenses (including legal, expert
and consultant fees).
"major refurbishment" means: (a) for a subway car, light rail car, streetcar or trolley bus, the
refurbishment where the life cycle is extended for a minimum of six years beyond the designed
life cycle set out by the manufacturer; and (b) for a bus thirty feet in length or over, the
refurbishment where, when the bus reaches a minimum age of nine years, the life cycle of the
bus is extended for a minimum of six years.
"Ministry" and "Minister", respectively, means the Ministry of Transportation, which is
responsible for the administration of the Program and the Minister responsible for the Ministry.
"municipal own spending on public transportation" means the funds, including those received
from total operating revenue and local public donations, that a municipality contributes towards
public transportation expenditures, including funds it contributes for operating and capital
expenditures.
"personnel" includes the advisors, appointees, directors, officers, employees, agents, partners,
affiliates, volunteers or subcontractors of a municipality.
"proceeding" means any and all causes of action , actions, claims, demands, lawsuits or other
proceedings.
"Program" means the Dedicated Gas Tax Funds for Public Transportation Program set up by
the Ministry to provide municipalities with dedicated gas tax funds subject to and in
accordance with a letter of agreement.
"PRESTO" means the fare payment system for which Metrolinx is responsible.
"public transportation" means any service for which a fare is charged for transporting the public
by vehicles operated by or on behalf of a municipality or local board as defined in the
Municipal Affairs Act, R.S.O. 1990, c. M. 46, as amended, or under an agreement between a
municipality or local board, and a person, firm or corporation , and includes special
transportation facilities for transporting persons with disabilities but does not include
transportation by special purpose facilities, such as school buses or ambulances.
"public transportation vehicle" refers to a streetcar, bus, subway car, light rail car, specialized
vehicles for transporting persons with disabilities or trolley bus used for public transportation.
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"reporting forms" means the following forms attached as Appendix A (Reporting Forms) to
these guidelines and requirements: 1) Dedicated Gas Tax Funds for Public Transportation
2018 Reporting Form (i.e. form MT-O-16); 2) Dedicated Gas Tax Program -2018
Conventional Transit Reporting Form (i.e. form MT-O-17); and 3) Dedicated Gas Tax Program
-2018 Specialized Transit Reporting Form (i.e., form MT-O-18).
"subcontractor" means any contractor of a municipality or any of its subcontractors at any lier of
subcontracting.
2. INTRODUCTION
The Program is an important element of the ongoing relationship between the province of
Ontario and Ontario municipalities. Municipalities receiving dedicated gas tax funds must
meet the requirements set out in these guidelines and requirements.
As of 2013 and pursuant to the Dedicated Funding for Public Transportation Act, 2013, S.O.
2013, c. 2, Sched. 3 ("DFPTA"), a portion, (2 cents per litre), of the provincial gasoline tax
revenue is dedicated to the provision of grants to municipalities for public transportation,
including those pursuant to the Program. The portion of the gas tax that is dedicated in each
fiscal year is an amount determined using a formula set out in the DFPTA.
The 2018/19 Program year runs from April 1, 2018 to March 31, 2019. The new allocation of
funding for the Program for 107 public transit systems representing 144 municipalities will
amount to approximately $367.5 million.
3. GENERAL ELIGIBILITY REQUIREMENTS AND CONDITIONS
The purpose of the Program is to provide dedicated gas tax funds to Ontario municipalities to
support local public transportation services, and to increase overall ridership through the
expansion of public transportation capital infrastructure and levels of service. To be eligible to
receive dedicated gas tax funds, a municipality must contribute financially towards its public
transportation services.
For 2018/19, and unless otherwise approved in writing by the Ministry, only municipalities that
have submitted their 2017 annual data survey to the Canadian Urban Transit Association
(CUTA), and their 2017 Gas Tax reporting forms to the Ministry, will be eligible to receive
dedicated gas tax funds.
Subject to the provision of a municipal by-law indicating its intent to provide public
transportation services, a municipality that is not currently providing public transportation
services, but decides to begin providing such services, may be eligible for funding. Notification
of the municipality's intent to provide public transportation services and specific commitment to
annually fund such public transportation services is required. Municipalities are encouraged to
contact ministry staff early in their decision making process for providing services. After the
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new public transportation services have been implemented, and at the Ministry's sole
discretion, dedicated gas tax funding may then be available.
A municipality receiving dedicated gas tax funds must ensure that all funds received and any
related interest are used exclusively towards eligible expenditures and, unless otherwise
approved in writing by the Ministry, disbursement of dedicated gas tax funds and any related
interest must be net of any rebate, credit or refund, for which the municipality has received, will
receive, or is eligible to receive.
All public transportation services and public transportation vehicles must be fully accessible in
accordance with the requirements set out under the following statutes and regulations, as may
be amended from time to time: the Accessibility for Ontarians with Disabilities Act, 2005, S.O.
2005, c. 11 and the Integrated Accessibility Standards, 0. Reg. 191/11 made under that Act;
the Highway Traffic Act, R.S.O. 1990, c. H.8 and the Accessible Vehicles, R.R.O. 1990, Reg.
629 made under that Act; and the Public Vehicles Act, R.S.O 1990, c. P. 54. In addition to the
above, the acquisition of public transportation vehicles must comply with the Canadian
Content Policy requirements.
Unless the Ministry otherwise approves in writing, in 2018/19, gas tax revenues and any
related interest can only be used to support municipal public transportation expenditures
above a municipality's baseline spending and not to reduce or replace current levels of
municipal public transportation funding. External audit and financial reporting costs are not
eligible expenditures which the Ministry may reimburse or to which dedicated gas tax funding
can be applied.
(a) Requirements for All Dedicated Gas Tax Funds Received in 2018/19 and Beyond
• Dedicated gas tax funds and any related interest must be spent on:
o Public transportation capital expenditures that promote increased transit
ridership, and are above a municipality's baseline spending;
o Public transportation operating expenditures that are above a municipality's
baseline spending;
° Capital expenditures for the replacement of any public transportation vehicles
that are above a municipality's baseline spending;
o Capital expenditures that provide improvements to public transportation
security and passenger safety, and are above a municipality's baseline
spending; or
o Expenditures for major refurbishment on any fully accessible, or to be made
fully accessible, public transportation vehicle, with the exception of
specialized vehicles used for the transportation of persons with disabilities,
and are above a municipality's baseline spending.
• For municipalities that provide only specialized transit for persons with disabilities,
dedicated gas tax funds can be spent on public transit initiatives that may not initially
result in ridership growth but will provide increased accessibility.
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(b) Additional Requirements for the following Municipalities: Regions of Durham and
York, the Cities of Brampton, Burlington, Hamilton, Mississauga, Ottawa and
Toronto, and the Town of Oakville.
Prior to the release of any dedicated gas tax funds, the municipalities listed under (b) above
will, in addition to any other requirements in this Article 3, be required to:
• Participate in PRESTO and, as participants, will be required to meet their financial
obligations for that system.
(c) Additional Requirements for GTA Municipalities: Regions of Durham, Halton, Peel
and York, and Cities of Hamilton and Toronto.
Prior to the release of any dedicated gas tax funds, the municipalities listed under (c) above
will, in addition to any other requirements in this Article 3, be required to:
• Demonstrate that they have met their responsibility for the payment of the growth
and expansion capital costs of Metrolinx pursuant to the Amendment to Greater
Toronto Services Board By-law No. 40, 0. Reg. 446/04, made under the Metro/inx
Act, 2006, S.O. 2006, c. 16, as amended.
The eligibility requirements for dedicated gas tax funds will be determined in accordance with
these guidelines and requirements. The eligibility for any dedicated gas tax funds is at the
sole discretion of the Ministry. Municipalities should consider consulting with Ministry staff to
determine whether a proposed expenditure is an eligible expenditure for the purpose of
dedicated gas tax funds.
4. GENERAL PROGRAM ALLOCATION METHODOLOGY AND PAYMENT PROCESS
4.1 General Program Allocation Methodologies
Based on consultation with municipalities, public transportation operators and stakeholders,
the Province recognizes the varying needs of public transportation in Ontario municipalities,
including those related to large established public transportation systems and communities
with different growth rates and levels of public transportation service. Consistent with the
above, the Province has established an allocation formula based on a combination of ridership
and population. This formula balances the needs of large established public transportation
systems, the growth needs of rapidly growing municipalities, and the needs of smaller
municipalities that provide public transportation services.
The Province is implementing an allocation based on 70% transit ridership and 30% municipal
population. Fully implemented, 70% of $367.49 million (up to $257.24 million) may be
distributed to municipalities on the basis of their public transportation ridership levels. Thirty
percent (30%) of $367.49 million (up to $110.25 million) may be distributed on the basis of
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population levels. Public transportation ridership will include the totals of both conventional
and specialized public transportation services.
Both ridership and population figures are updated and revised annually for use in the
calculation of dedicated gas tax funds.
CUTA annually collects and reproduces, on behalf of the Ministry, transit ridership data in its
Ontario Urban Transit Fact Book and its Ontario Specialized Transit Services Fact Book (the
"CUTA Fact Books"). The Ministry used the 2017 ridership data from the 2017 CUTA Fact
Books for the above calculation. Where a municipality's ridership data have not been
collected nor reproduced in the 2017 CUTA Fact Books, the Ministry used the 2017 transit
ridership data received from the municipality.
The 2018/19 gas tax allocations were calculated using 2017 population estimates derived from
the 2011 census data.
Dedicated gas tax funds provided to each municipality in 2018/19 are not to exceed, based on
the 2017 municipal public transportation spending data set out in the CUTA Fact Books, 75%
of municipal own spending on public transportation. The Ministry may re-allocate, in support
of increasing public transportation ridership, any amounts of moneys dedicated for but that
remains undistributed through the Program.
The Ministry may undertake an annual review of the dedicated gas tax allocation methodology
and eligibility requirements to ensure these funds support the desired outcome of increased
public transportation ridership. Municipal public transportation spending will be reviewed on
an annual basis to determine if the limits of the dedicated gas tax funds need to be applied
where the gas tax allocation may exceed 75% of municipal own spending on public
transportation.
4.2 Payment Process
The Minister will advise ea.ch municipality that provides public transportation services of the
amount of dedicated gas tax funds it is eligible to receive. The Minister will send a letter of
agreement to each of these municipalities. The letter of agreement will set out the terms and
conditions upon which the dedicated gas tax funds will be released to the municipality, and by
which the municipality will have to agree to be bound.
The Ministry may, on a quarterly basis (or other basis, as the Ministry may decide from time to
time), make payments of dedicated gas tax funds only after receipt of the following
documents: i) the letter of agreement, provided by the Ministry to the municipality, signed in
accordance with the by-law(s) and, if applicable, the resolution(s) described below; and ii) a
certified copy of the by-law(s) and, if applicable, any resolution(s) authorizing the letter of
agreement and naming municipal signing officers for the letter of agreement.
In addition, the Ministry may withhold payment of dedicated gas tax funds until the reporting
requirements under Section 8.4 are met.
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Any amount of dedicated gas tax funds provided to the municipality under the Program will be
subject to the remedies set out under Article 7.
Any dedicated gas tax funds the Ministry provides to a municipality and any related interest,
including those kept by the municipality in a dedicated gas tax funds reserve account, will have
to be used by the municipality exclusively towards public transportation services and in
accordance with the requirements set out in these guidelines and requirements including,
without limitation, those related to eligibility and related conditions, acquisition, disposition,
accountability, records, audit, reporting, liability, and indemnity requirements.
If a municipality agrees to provide public transportation services (a "host municipality") for
another municipality, the Ministry, at its sole discretion, may only provide the host municipality
with dedicated gas tax funds. Prior to the Ministry making any payment of dedicated gas tax
funds to the host municipality, the host municipality and the municipality on whose behalf the
host municipality is providing transportation services will be required to provide the Ministry
with copies of their respective by-law(s) and, if applicable, resolution(s), designating the host
municipality as a public transportation service provider for the municipality or authorizing the
host municipality to provide public transportation services to the municipality, as applicable.
The contributing municipality, on whose behalf the host municipality is providing transportation
services, will be required to provide the Ministry with a copy of their by-law(s) and, if
applicable, resolution(s), in the year that this arrangement is initiated, and will be required
annually to confirm with the Ministry in writing that the arrangement is still in effect. The host
municipality will be required to enter into a dedicated gas tax funds letter of agreement with the
Ministry and be in compliance with the terms and conditions set out in these guidelines and
requirements.
In addition, the host municipality must promptly advise the Ministry of any change in
arrangements between the host and contributing municipalities, such as decisions to cease
contributions. The Ministry may then, at its sole discretion, make any necessary adjustment to
its contribution of dedicated gas tax funds to the host municipality.
5. DEDICATED GAS TAX FUNDS RESERVE ACCOUNT AND INTEREST
5.1 Dedicated Gas Tax Funds Reserve Account
Dedicated gas tax funds must be used only towards the eligible expenditures for public
transportation listed under Article 3(a). If the Ministry provides dedicated gas tax funds to a
municipality before the municipality's immediate need for the funds, the municipality will be
required to keep the funds, and all interest earned on such funds, in a dedicated gas tax funds
reserve account. Dedicated gas tax funds received, and any related interest earned on such
funds, must be reported annually, using the reporting forms, on a cash basis.
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5.2 Interest
Interest must accrue on funds carried over the course of the Program reporting period in a
dedicated gas tax funds reserve account. A municipality must calculate interest on its average
annual balance of funds. The interest must also be reported annually, using the reporting ·
forms, and can only be applied towards eligible expenditures.
6. ACQUISITION OF GOODS OR SERVICES, AND DISPOSAL OF ASSETS
If a municipality acquires goods, including supplies, materials, vehicles, equipment or services,
or both, with dedicated gas tax funds, it must do so through a process that promotes the best
value (with due regard for economy, efficiency and effectiveness) for the dedicated gas tax
funds it spends.
The municipality must report, in writing, to the Ministry any funds accrued from the sale, lease
or disposal of assets purchased with dedicated gas tax funds, and return such funds to a
dedicated gas tax funds reserve account (see Article 5), with the exception that funds accrued
from the sale, lease or disposal of transit buses beyond their useful economic life (12 years for
conventional and 5 years for specialized), will not be required to be returned to a dedicated
reserve account.
7. ADJUSTMENT, WITHHOLDING AND PAYMENT OF DEDICATED GAS TAX FUNDS
AND OTHER REMEDIES
If, in the opinion of the Ministry, a municipality: i) fails to comply with any term, condition or
obligation set out in a letter of agreement, including these guidelines and requirements; ii)
uses any of the dedicated gas tax funds or any related interest for a purpose not authorized
without the prior written consent of the Ministry; iii) provides erroneous or misleading
information; iv) fails to provide information, including requested audit information and required
reports, to the Ministry for any reason whatsoever; or v) is unable to provide or acquire or has .
discontinued the provision or acquisition of any service or asset for which dedicated gas tax
funds have been provided, or it is not reasonable for the municipality to continue to provide or
acquire any service or asset for which such funds have been provided ("event of default"), the
Ministry may, unless the Ministry provides the municipality with written notice of an opportunity
to remedy the event of default, take one or more of the following actions: i) initiate any action
the Ministry considers necessary in order to facilitate the successful provision or acquisition of
any service or asset provided or acquired with dedicated gas tax funds; ii) suspend the
payment of dedicated gas tax funds for such period as the Ministry determines appropriate; iii)
reduce the amount of the dedicated gas tax funds; (iv) cancel further payments of dedicated
gas tax funds; (v) demand from the municipality the payment of any dedicated gas tax funds
remaining in the possession or under the control of the municipality; (vi) demand from the
municipality the payment of an amount equal to any dedicated gas tax funds the municipality
used, but did not use in accordance with the letter of agreement; (vii) demand from the
municipality the payment of an amount equal to any dedicated gas tax funds the Ministry
provided to the municipality; and viii) terminate the letter of agreement at any time, including
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immediately, without liability, penalty or costs to the Ministry upon giving notice to the
municipality.
Where the Ministry gives the municipality an opportunity to remedy an event of default by
giving the municipality notice of the particulars of the event of default and the date by which
the municipality is required to remedy it, and: i) the municipality does not remedy the event of
default by the date specified in the notice; ii) it becomes apparent to the Ministry that the
municipality cannot completely remedy the event of default by the date specified in the notice;
or iii) the municipality is not proceeding to remedy the event of default in a way that is
satisfactory to the Ministry, the Ministry may extend the date by which the municipality is
required to remedy the event of default, or initiate any of the remedies for event of default
available to it under this Article.
Upon termination of the letter of agreement pursuant to this Article, the Ministry may take one
or more of the actions listed for in the first paragraph to this Article 7. In regards to any
demand for payment, the Minister may not demand payment of an aggregate amount greater
than the dedicated gas tax funds that were received by the municipality.
Upon the Minister providing a municipality a written demand for payment of dedicated gas tax
funds, any related interest, or both, the amount of the demand will be deemed to be a debt
due and owing to the Crown of the Province of Ontario and may be recovered as such under
applicable law, including, without limitation, the Financial Administration Act, R.S.O. 1990, c.
F.12, as amended, ("FAA"). In addition to any remedy the Crown may have under the FAA,
the Ministry may decide to withhold or adjust the amount of any current or future dedicated
gas tax funding, or any other funding program, that may be provided to the municipality in an
amount equal to such debt or have the amount of such debt deducted from financial
assistance payable on any other project(s) of the municipality under any other initiative in
which the Ministry is involved (either current or future). The Ministry may charge the
municipality interest on any money owing by the municipality at the then current rate charged
by the Province of Ontario on accounts receivable. The municipality will pay any money owing
to the Ministry by cheque payable to the "Ontario Minister of Finance" and delivered to the
Ministry as the Ministry may require.
If a municipality: i) has failed to comply with any term, condition or obligation under any other
agreement with Her Majesty the Queen in right of Ontario or one of Her agencies (a "failure");
ii) has been provided with notice of such failure in accordance with the requirements of such
other agreement; iii) has, if applicable, failed to rectify such failure in accordance with the
requirements of such other agreement; and iv) such failure is continuing, the Ministry may
suspend the payment of dedicated gas tax funds for such period as the Ministry determines
appropriate.
When the Ministry provides its consent pursuant to a letter of agreement, including these
guidelines and requirements, it may impose any terms and conditions on such consent and
the municipality will comply with such terms and conditions.
If a municipality fails to comply with any term of a letter of agreement, including these
guidelines and requirements, the municipality could only rely on a waiver of the Ministry if the
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waiver was in writing and refers to the specific failure to comply. A waiver will not have the
effect of waiving any subsequent failures to comply.
Any decision made by the Minister regarding funding under the Program is final.
8. ACCOUNTABILITY, RECORDS, AUDIT AND REPORTING REQUIREMENTS
8.1 Accountability
A municipality receiving dedicated gas tax funds must use such funds, and any interest earned
on such funds, exclusively towards public transportation service eligible expenditures and in
accordance with these guidelines and requirements. The municipality will not be allowed to
use dedicated gas tax funds and related interest to offset other municipal expenditures.
The municipality will also be required to provide such further assurances as the Ministry may
request from time to time with respect to any matter to which a letter of agreement, including
these guidelines and requirements, pertains, and will otherwise do or cause to be done all acts
or things necessary to implement and carry into effect the terms and conditions of these
documents to their full extent.
Furthermore, the municipality must ensure any information the municipality provides to the
Ministry under the Program is true and complete at the time provided and will continue to be
true and complete.
8.2 Records
A municipality receiving dedicated gas tax funds must keep and maintain separate records
and documentation related to any dedicated gas tax funds and any related interest, including
invoices and any other financially-related documents relating to the provision or acquisition of
public transportation services for which dedicated gas tax funds and any related interest have
been used. The records and documentation must be kept and maintained in accordance with
generally accepted accounting principles. Records containing confidential information must be
kept in accordance with all applicable legislation. No provision of these guidelines and
requirements shall be construed so as to give the Ministry any control whatsoever over the
municipality's records.
8.3 Audit
A municipality receiving dedicated gas tax funds may be subject to audit. The Ministry may, at
its sole discretion, audit or have audited by any third party, any records and documentation of
the municipality related to any public transportation services provided or acquired with
dedicated gas tax funds or any related interest, and such funds. Such audit may require the
Ministry, at the municipality's expense (except as provided in the Canadian Content Policy), to
retain external auditors. In addition, the Auditor General may, pursuant to the Auditor General
Act, R.S.O. 1990, c. A. 35, as amended, audit the accounts and records of the municipality
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relating to any expenditure of dedicated gas tax funds.
To assist in respect of the rights set out above, a municipality will be required to disclose any
information requested by the Ministry, its authorized representatives or an independent auditor
identified by the Ministry, and will do so in the form requested by the Ministry, its authorized
representatives or an independent auditor.
In addition to any adjustments the Ministry may make to dedicated gas tax funding under
these guidelines and requirements, the Ministry may, upon recommendation in an audit report,
adjust future dedicated gas tax fund payments or other payments the Province may make to
the municipality under any other program.
8.4 Reporting
Accuracy in the calculation and reporting of municipal transit ridership and dedicated gas tax
funds and any related interest is paramount. When calculating ridership, municipalities must
use one of the acceptable best practices identified in the 2008 Ontario Ridership Data
Collection Review Report, published jointly by CUTA and iTrans Consultants (retained by
CUTA).
A municipality will be accountable to use dedicated gas tax funds and any related interest
towards public transportation expenditures that meet the Program eligibility requirements.
Each municipality will be required to report on how dedicated gas tax funds and any related
interest are spent on an annual basis, including the provision of its Canadian Content Policy
declaration form(s), in accordance with the Canadian Content Policy, for any public
transportation vehicle funded with dedicated gas tax funds. The Canadian Content Policy has
been amended effective September 21, 2017 to be aligned with government procurement
commitments under the Comprehensive Economic Trade Agreement (CETA) between
Canada and the European Union (EU). As of September 21, 2017, municipalities are to
comply with the amended policy for all transit procurements.
For the purpose of the above reporting, municipalities will be required to use the reporting
forms that have been developed in consultation with municipal public transportation
stakeholders, and submit these reporting forms to the Ministry prior to February 28, 2019.
Municipalities are strongly advised to carefully verify all data before submitting their reporting
forms, to ensure that all information provided is accurate. Municipalities are also encouraged
to contact the Ministry if they require any guidance or assistance in completing these reports.
9. COMMUNICATIONS
Unless the Ministry otherwise approves in writing, a municipality receiving dedicated gas tax
funds will be required to acknowledge the support of the Ministry in a form and manner as
directed by the Ministry.
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A municipality will be required to give a minimum of thirty (30) days written notice to the
Ministry regarding any planned local dedicated gas tax funding communication or recognition
event, or both. The municipality will also be required to provide the Ministry with detailed
information regarding such communication or event, or both.
The Ministry and a municipality receiving dedicated gas tax funds will, at all times, remain
independent of each other and will not represent themselves to be the agent, joint venturer,
partner or employee of the other. Neither the municipality nor the Ministry will be allowed to
make representations or take actions that could establish or imply any apparent relationship of
agency, joint venture, partnership or employment. In addition, neither the municipality nor the
Ministry will be bound in any manner whatsoever by any agreements, warranties or
representations made by any of them to any other person or entity, with respect to any other
action of the other.
If the municipality publishes any material of any kind, written or oral, relating to public
transportation services provided or acquired with dedicated gas tax funds, the municipality will
indicate in the material that the views expressed in the material are the views of the
municipality and do not necessarily reflect those of the Ministry.
A municipality receiving gas tax funding must comply with the requirements for the installation
and maintenance of visual identity signage set out in Appendix C.
10. CONFLICT OF INTEREST
A municipality and its subcontractors and any of their respective personnel must use
dedicated gas tax funds and provide and acquire services and assets with such funds without
an actual, potential, or perceived conflict of interest.
A conflict of interest includes any circumstances where a municipality or any person who has
the capacity to influence the municipality's decisions has outside commitments, relationships
or financial interests.that could , or could be seen to, interfere with the municipality's objective,
unbiased, and impartial judgment relating to the provision or acquisition of services or assets
provided or acquired with dedicated gas tax funds , the use of such funds, or both.
A municipality will disclose to the Ministry, without delay, any situation that a reasonable
person would interpret as an actual, potential, or perceived conflict of interest, and comply with
any terms and conditions that the Ministry may prescribe as a result of the disclosure.
11. FREEDOM OF INFORMATION AND PROTECTION OF PRIVACY ACT
All applications submitted to the Ministry are subject to the Freedom of Information and
Protection of Privacy Act, R.S.O. 1990, c. F. 31 , as amended ("FIPPA"). The FIPPA provides
every person with a right of access to information in the custody or under the control of the
Ministry, subject to a limited set of exemptions.
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Municipalities are advised that the names of municipalities receiving dedicated gas tax funds,
the amount of funds provided, and the purpose for which dedicated gas tax funds are
provided, is information the Ministry makes available to the public.
12. LIABILITIES AND INDEMNITIES
A municipality receiving dedicated gas tax funds must agree that it is responsible for anything
that may arise, directly or indirectly, in connection with the Program, including, without
limitation, any activity under it such as the provision and acquisition of services and assets
with dedicated gas tax funds. The Ministry's involvement under the Program is for the sole
purpose of, and is limited to, the provision of dedicated gas tax funds.
Furthermore, a municipality receiving dedicated gas tax funds must agree to indemnify and
hold harmless the indemnified parties from and against any and all losses or proceedings, by
whomever made, sustained, incurred, brought, or prosecuted, in any way arising out of, or in
connection with anything done or omitted to be done by the municipality or any municipality on
behalf of which the municipality receives dedicated gas tax funds, or any of their respective
personnel, the Program, any activity under it, or the letter of agreement, unless the loss or
proceeding is solely caused by the negligence or willful misconduct of the indemnified parties.
A municipality receiving dedicated gas tax funds is responsible for its own insurance and must
carry, at its own costs and expense, and require the same from its subcontractors and any
municipality on behalf of which it receives dedicated gas tax funds, all the necessary and
appropriate insurance that a prudent municipality in similar circumstances would maintain in
order lo protect itself and the Ministry and support the indemnification, as set out above,
provided to the Ministry. For greater certainty, the municipality is not covered by the Province
of Ontario's insurance program and no protection will be afforded to the municipality by the
Government of Ontario for any losses or proceedings that may arise out of the Program or
letter of agreement.
For greater certainty, the rights and remedies of the Ministry under a letter of agreement are
cumulative and are in addition to, and not in substitution for, any of its rights and remedies
provided by law or in equity.
13. COMPLIANCE WITH THE LAW
A municipality receiving dedicated gas tax funds must comply with all federal and provincial
laws and regulations, all municipal by-laws, and any other orders, rules and by-laws related to
any aspect of the services or assets provided or acquired with the dedicated gas tax funds and
the dedicated gas tax funds.
For greater clarity, by receiving dedicated gas tax funds, a municipality may become subject to
legislation applicable to organizations that receive funding from the Government of Ontario,
including the Public Sector Salary Disclosure Act, 1996, S.O. 1996, c. 1, Sched. A and the
Auditor General Act, R.S.O. 1990, c. A.35.
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14. WHERE TO APPLY AND REQUEST OR PROVIDE INFORMATION
All forms, agreements, supporting documentation as well as any questions regarding the
Program are to be directed to the Strategic Transit Investments Office of the Ministry of
Transportation at MTO-PGT@ontario.ca.
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APPENDIX C: VISUAL IDENTITY SIGNAGE REQUIREMENTS
1. Purpose of Schedule
This Appendix describes the municipality's responsibilities and obligations involved in installing
and maintaining visual identity signage under the Program.
2. Visual Identity Signage
The municipality will install and maintain the exterior and interior visual identity sign age on
transit vehicles for which dedicated gas tax funds were provided. This is to include
replacement buses that have been supported through the Program.
External visual identity signage must be located immediately to the left of the front passenger
entrance doors of the vehicle. Internal visual identity signage should be placed on an interior
wall in a location and height that will be convenient for passengers to read.
Recognition stickers approximate size -1 O" x 3.4". Sample image found below is not to scale.
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