98011-0612

Report

To: Audit, Budget and Corporate Services Committee Item: Date of Report:

ABCS-07-01 March 5, 2007 From: Rick Stockman File: Date of Meeting:

Commissioner Corporate Services Department

D-2310 March 12, 2007

Subject: Ward(s): One

Gerdau Ameristeel, 500 Waterloo Court – Request for Exemption to Schedule ‘M’, Licensing By-law 120-2005

Public 1.0 PURPOSE The purpose of this report is to provide staff comments and analysis with respect to Gerdau Ameristeel exemption request to By-law 120-2005, Schedule M, s. 25 (c) and to comment upon their proposal to provide landscaping on the boulevard area abutting their property. 2.0 RECOMMENDATION That the Audit, Budget and Corporate Services Committee recommend to City Council: 1. That Gerdau Ameristeel, 500 Waterloo Court be granted an exemption under Section

25 (c) of Schedule “M” of Licensing By-law 120-2005 that requires that storage of goods within the outdoor storage area shall not exceed the lowest height of the fence required by paragraph 25(b) of this Schedule;

2. That Gerdau Ameristeel be approved for the renewal of their Second Hand Dealer –

Salvage and Public Garage Licences subject to compliance with the following conditions;

a) That fencing be repaired and or erected around the perimeter of the site at a

height not exceeding 3 metres, and that this work be completed no later than June 30, 2007;

b) That Gerdau Ameristeel prepare a boulevard landscape design, in consultation with the City of Oshawa, to depict a tree planting plan along the boulevard area on Waterloo Court, on all lands abutting Gerdau Ameristeel;

c) That the tree planting plan be approved by the City of Oshawa; d) That the tree planting plan depict a mix of coniferous and deciduous trees; e) That Gerdau Ameristeel finance the purchase of and installation of trees, in

accordance with the tree planting plan; f) That the planting of the trees, be coordinated with Parks Services and be

scheduled for completion, no later than June 30th 2007; and

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 2 - Meeting Date: March 12, 2007

g) That Gerdau Ameristeel agree to replace trees planted as a condition of

licensing, which have been lost due to disease or damage, in accordance with City requirements. Replacement will include the purchasing of the trees and the planting thereof, with approval of the City of Oshawa.

3.0 EXECUTIVE SUMMARY In 2005 a notice was issued with respect to Gerdau Ameristeel’s non compliance with City of Oshawa Licensing By-law 120-2005, as it relates to fencing and outdoor storage for a Salvage Yard. (Photographs of 500 Waterloo Court form Attachment 1 to this Report.) On June 26, 2006, the Audit, Budget and Corporate Services Committee reviewed correspondence dated June 21, 2006, from Jason Hunt of Kitchen Kitchen and Simeson McFarlane, Barristers and Solicitors, on behalf of Gerdau Ameristeel Recycling, requesting an exemption to By-law 120-2005, Schedule M, s. 25 (c). (A copy of the June 26th letter forms Attachment 4 to this report.) On July 4, 2006, Council directed that the exemption request be referred to staff for a report concerning options to the current height restriction requirements, including the use of screens and berms, and that Legal Services be advised that City Council has no objection to a stay of proceedings while options are being considered. On Sept 6, 2007 Gerdau Ameristeel submitted a presentation to staff identifying a proposal which would address compliance concerns with the Licensing By-law. (A copy of the Sept 6th Presentation forms Attachment 2 to this report.) Gerdau proposed a landscaping plan to buffer/screen the appearance of its property on Waterloo Ct. The plan put forward reflects an acknowledgement of the City’s concerns with regard to image and streetscape and a willingness to work with the City to improve the general image of this industrial community and the image of their property in particular. Staff have no objections to the exemption request with regard to outdoor storage or the renewal of the Second Hand Dealer-Salvage and Public Garage Licences subject to satisfying the conditions and time frames outlined in this report. 4.0 INPUT FROM OTHER SOURCES

Municipal Law Enforcement and Licensing Services.

Legal Services.

Parks Services Branch.

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 3 - Meeting Date: March 12, 2007

5.0 ANALYSIS

Gerdau Ameristeel

Gerdau Ameristeel is a metal recycling facility located at 500 Waterloo Ct. Gerdau has operated from this location since 1978 (operating as LASCO), while the site has been used by other Metal Recycling businesses since at least 1970. (A locational plan forms Attachment 3 to this Report.)

With regard to the status of the original prosecution, Legal Services advises that

this matter was adjourned to April 3, 2007, to be spoken to.

The property is presently zoned G1 (General Industrial) under Zoning By-law 60-94, as amended, which in part permits the use of the property as a recycling depot/recycling operation.

Schedule “M” to Licensing By-law 120-2005 (Second Hand Dealer)

City of Oshawa Licensing By-law 120-2005 (Schedule “M”) governs the

operation of Second Hand Dealer – Salvage. This type of business involves dealing with Second Hand Salvage Goods exclusively for the purpose of wrecking, dismantling, and recycling such goods prior to their disposition.

The intent of the site design and fencing regulations contained in the Licensing

By-law, as it relates to Second Hand Goods and Salvage Yard businesses are to ensure that such businesses are operated in a clean, organized and safe manner, giving consideration to neighbouring properties and the image of the community. The fencing and height restriction on outdoor storage is intended to minimize aesthetic impacts as well as to contain scrap materials on the site.

Section 25. of Schedule “M” states that no Second Hand Dealer or Second

Hand Dealer – Salvage shall permit outdoor storage except pursuant to the following:

(a) Compliance with City of Oshawa Zoning By 60-94, as amended; (b) Enclosure of the outdoor storage area by a fence no more than three (3)

metres high constructed in such fashion as to entirely obscure from external view the outdoor storage area; and,

(c) Storage of goods within the outdoor storage area shall not exceed the lowest height of the fence required by paragraph 25(b) of this Schedule.

Other Screening Alternatives

The referral of this item to staff by the ABCS Committee also included a request to

explore other screening alternatives. The use of screening, other than fencing, is

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 4 - Meeting Date: March 12, 2007

possible, but the options are not practical for this site nor will they provide complete screening. Specifically: Berms constructed at a height sufficient to screen this property would require

significant land area, and accordingly the ability of the site to function as a viable salvage yard would be significantly diminished if berms were required;

Other screening such as fencing materials that can absorb bumps and impacts

and which can block the view from the abutting street are the preferred options. Chain link or light weight fencing will not deter damage or visual blight, nor could such screening be constructed at a sufficient height to block the view of this property; and

Other screening such as trees is a preferred option, in combination with other

physical screening, but the height of the plantings will be insufficient to fully block the view of a property from a higher elevation.

Gerdau Ameristeel (Presentation to Staff)

David Humphreys, Division Manager, Gerdau Ameristeel recycling, submitted a

presentation to staff, dated September 6, 2006 (Attachment 2), to demonstrate the company’s commitment to working with the City to comply with the by-law.

The presentation includes pictures of the yard before changing the streetscape

and photographs depicting some possible solutions to the current problem. 6.0 FINANCIAL IMPLICATIONS

The fee for a Second Hand Dealer – Salvage Licence is $135.00 per year.

The fee for a Public Garage Licence is $150.00 per year.

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 5 - Meeting Date: March 12, 2007

7.0 RESPONSE TO THE COMMUNITY STRATEGIC PLAN

The above analysis addresses the Community Strategic Plan objectives with respect to improving image and being a cleaner and greener city through measures that enhance:

the visual appearance of the City of Oshawa; and

increasing community involvement in ‘greening’ and “clean-up” initiatives.

Jerry Conlin, Director, Municipal Law Enforcement and Licensing Services Rick Stockman, Commissioner Corporate Services Department Attachments

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 6 - Meeting Date: March 12, 2007

Attachment 1

500 Waterloo Court Gerdau - December 21, 2006

500 Waterloo Court Gerdau - December 21, 2006

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 7 - Meeting Date: March 12, 2007

Attachment 2

0

Presentation to Staff09.06.2006

Application for Exemption to By-law 100-2000, Schedule M,

s. 25(c)

Gerdau AmeriSteel RecyclingOshawa Division

1

Purpose

To tie the City of Oshawa’s objectives to GerdauAmeriSteel’s Vision, Mission and Values

To share information

To demonstrate Gerdau AmeriSteel’s commitment to working with the City to comply with the spirit of the By-law

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 8 - Meeting Date: March 12, 2007

2

Objectives of the licensing by-law

The by-law is intended to encourage businesses to operate in a manner that respects their neighbors

Maintain the cityscape

Create value for residents and business owners

Encourage growth and development

3

Gerdau AmeriSteel’s ObjectivesVision

To be recognized as the most successful company in the steel industry.

Mission

To create value for our customers, employees, shareholders and communities through engagement of people and excellence of operations.

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 9 - Meeting Date: March 12, 2007

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Values:§ Safety§ Integrity§ Customer – Driven Culture§ Investment in People, Process and Technology§ Engaged Employees§ Open Communication§ Community and Environmental Awareness§ Profitability

5

Where are we?

As a responsible operator, Gerdau AmeriSteel desires to be part of the solution

Gerdau AmeriSteel has retained the services of Schollen& Company Inc. to assist in designing a streetscape that will comply with the spirit of the by-law

Where are we?

As a responsible operator, Gerdau AmeriSteel desires to be part of the solution

Gerdau AmeriSteel has retained the services of Schollen& Company Inc. to assist in designing a streetscape that will comply with the spirit of the by-law

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 10 - Meeting Date: March 12, 2007

6

Pictures of the yard before changing the streetscapePictures of the yard before changing the streetscapePictures of the yard before changing the streetscape

7

Some possible solutionsSome possible solutionsSome possible solutions

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 11 - Meeting Date: March 12, 2007

8

Some possible solutionsSome possible solutionsSome possible solutions

9

Some possible solutionsSome possible solutionsSome possible solutions

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 12 - Meeting Date: March 12, 2007

10

Some possible solutionsSome possible solutionsSome possible solutions

11

Some possible solutionsSome possible solutionsSome possible solutions

Report to the Audit Budget and Item: ABCS-07-01 Corporate Services Committee (Continued) - 13 - Meeting Date: March 12, 2007

Attachment 3

Attachment 4

U"TCHEN KITCHEN SIMESON MCFARLANE

'.

JASON D. D. HUNT

PH: (905) 579-5302FAX: (905) 579-6073

jhunt~kksm_com

Our file number: 26-16929

June 21,2006

Mary Medeiros, Committee SecretaryAudit, Budget and Corporate Services Committee50 Centre Street SouthOshawa, Ontario L1H 3Z7

Dear Ms. Medeiros:

Re: Gerdau Ameristeel

Application for Exemption to Bylaw 100-2000. Schedule M. s. 25(c)

We are the solicitors for Gerdau Ameristeel with respect to the above matter. Enclosed please find

materials in respect of our client's application for an exemption to a bylaw. I am requesting thatthis matter be heard at the June 26, 2006 meeting of the Audit Budget and Corporate ServicesCommittee. I have enclosed a copy of

the materials for each member of the committee. Pleasecontact me if you have any questions or if there is anything further that you require.

Yours very truly,

iqCHEN KITCHEN S~SON McFARLANE

IJASON D. D. HUT J

JDDH/Encl.

40

86 SIMCOE ST S po Box 428 OSHAWA ON L1 H 7L5RONALD J. KITCHEN. GARY G. KITCHEN. ALASTAIR H. SIMESON . FAYE M. McFARLANE

KEVIN P. MARA . JASON D. D. HUNT. BRUCE V. MACKEY

MErvioRANDuM

TO: Audit, Budget and Corporate Service Committee

FROM: Jason Hunt

DATE: June 21,2006

RE: Application for Exemption to bylawlOO-2000, Schedule M, s. 25(c) byGerdau Ameristeel

I want to begin by thanking the members of the committee for taking the time to consider

my client's application for an exemption.

BACKGROUND

As you mayor may not know the City recently enacted a by-law which is directed

specifically at certain businesses including salvage yards. Gerdau Ameristeel, in addition

to operating a large steel mill in Whitby, also operates a metal recycling yard in Oshawa

located at 500 Waterloo Street in Oshawa in the area of Wentworth and Ritson Road.

The bylaw provides:

100-2000 Schedule M, Section 25(c)

25. No Second Hand Dealer or Second Hand Dealer - Salvage shall permit outdoorstorage except pursuant to the following:

(a) Compliance with City of Os haw a Zoning By-law 60-94, as amended;

(b) Enclosure of the outdoor storage area by a fence no more than three (3) metreshigh constructed in such fashion as to entirely obscure from external viewtheoutdoor storage area; and,

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(c) Storage of goods within the outdoor storage area shall not exceed the lowestheight of the fence required by paragraph 25(b) of this Schedule.

Gerdau was served with a summons notifying them that they were in violation of the

bylaw by virte of the fact that the height of the metal matenals in their yard was

exceeding the height of their fence. Gerdau has attended on a first appearance on this

matter with the prosecutor Rhonda Vanderlinde. At that time the matter was adjourned

to July 4, 2006 in order to permit Gerdau to apply to this committee to seek an exemption

to the bylaw.

EXCELLENT LOCATION

This location has been operated as a metal recycling facility for at least 30 years. It is in

many respects an ideal location for this activity.

· It is already developed as an industral area

· This location is at the bottom of a hil, and not easily visible until you approach it

· It's close proximity to GM, its main customer, means less undesirable traffic on

city roadways - trips to and from GM are entirely routed through industnal areas.

· In addition, the location has good access to artenal routes and highways without

passing through residential or commercial areas.

· The neighbouring properties are all similar uses and there is no conflcts or issues

with neighbours. These neighbours include:

o 1NTo An Industrial Park

o Laidlaw Bus Lines

o Canada Bnck

o A Trucking / Logistics company

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o Montgomery Creek

o \Ventworth Street.

. Some pictures of the site are attached.

METAL RECYCLING

Metal recycling is an important service for the City and the region and it is an important

industry in this Region. Ontaro produces 6.3 milion tons and consumes 5.2 milion tons

of scrap metal per year. The remaining i. i milion tons are exported.

Durham Region produces 300,000 tons and consumes 750,000 tons. The region is a net

consumer of scrap metaL This Gerdau facility is servicing a high demand for scrap metal

in the region.

Receiving and processing these materials is important to the Region as welL. Gerdau's

customers include:

· GM· Town of Whitby

· City of Oshawa

· Individual Residents

If Geraau reduces the volume of its matenals accepted at this location these matenals

wil simply be diverted. This wil have a number of unintended consequences:

6. Poorly operated sites - Gerdau realizes that the metal recycling industry suffers

from a poor reputation earned by disreputable operators. These operators engage

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in practices which are nuisance to the neighbouring community, a threat to the

environment, are unsafe for members of the public and employees and make them

poor neighbours. Gerdau employs the highest standards of safety in the operation

of their facilities making their site safe for employees, users as well as other

members of the public. Gerdau runs this facility with a sound business modeL.

They use best practices to protect their local environment and endeavour to be

good neighbours and good corporate citizens. Diverting materials from Gerdau's

site will only increase the problems at less desirable locations operated by less

reputable operators.

7. Undesirable traffic in residential areas - Materials that are not accepted at the

Gerdau site will be diverted to other recycling and salvage yards. Few of these

locations are situated as conveniently as Gerdau is from a community planning

perspective. Loads of scrap metal diverted closer to commercial and residential

areas will be an inevitable and undesirable result.

8. Diversion to less desirable locations - As mentioned above, the Gerdau site has

many attractive features for recycling metal. These advantages wiI be lost as the

material is diverted if Gerdau reduces its volume. Other sites may be located in

mixed commercial and / or residential areas, wil not have the same access to good

roads etc.

There wil no doubt be other unintended consequences from this policy. Gerdau

recognizes and accepts Council's goal of achieving a welcoming and dynamic port area

which offers opportnities for recreational and commercial uses which are nofnow

possible. Gerdau is prepared to accept their responsibility as a committed member of this

community to paricipate with Council in achieving this objective. Gerdau believes in

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Oshawa and believes that Oshawa's success is Gerdau's success as welL. Gerdau

envisions a solution to this problem which allows Council to achieve the objective of the

bylaw - to improve the look of the streetscape - while permitting Gerdau to continue to

be a successful and responsible member of Os haw a's business community.

GERDAU is A RESPONSffLE OPERA TOR

Gerdau Ameristeel is an internationally recognized corporation with a large presence in

this region. Gerdau is a responsible operator in an industr tarished by operators who

often refuse to follow even minimal standards. By contrast Gerdau uses best practices in

the operation of its recycling facility. Materials are spread directed throughout the yardinto sorted piles to ensure highest quality. All materials are kept within reach of

the mainproduction equipment known as the bailer. This practice is now only efficient but also

safer for employees and users as it reduces the handling of the materials. Material ismaintained in discrete location with minimum setbacks for access to ensure safe accessfor employees.

Gerdau is a good employer with sound employment practices and a good health and

safety record. Gerdaupractices sound environmental stewardship and is sensitive to their

role as a guardian of the sensitive lands in the Montgomery Creek. Gerdau is aiming not

to meet out to exceed environmental standards because they believe this is the right thing

to do.

Gerdau has initiated a process to install a stormwater management system at the site.

This installation represents a major investment by Gerdau undertaken not because it was

required or because they had to do it, but because Gerdau recognized that this was the

right thing to do. This improvement will not only improve the site but it wil also result in

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substantial business for local subcontractors Gerdau is a large, visible, well known and

stable business with a good track record in this community.

COMMUNITY INVOL VEl\IENT

Gerdau Ameristeel is a good corporate citizen and is very involved in this community.

Below are some of the community fundraising and other initiatives that Gerdauhas

paricipated in:

· Fundraising for St. Vincent de Paul

· Support for Mothers Against Drunk Driving

· Denise House - food drives, toy drives, donated computer equipment

· Scouts Canada Tree Planting and Earh Day

· Pitch-In Brooklin - garbage removal and donations

· Donated steel to local schools for shop programs - Henr Street H.S., R.S.

McLaughlin S.S., St. Stephens S.S.

· R.R. McLaughlin Durham Regional Cancer Centre

Children's Wish Foundation

· Durham Corporate Challenge

· Simcoe Hall Settlement House - Thanksgiving Food Drive

· Salvation Army - donated food to a local food bank

· Bathesda House Inc. Shelter - Toy drive

· Durham Regional Police Toy Drive

· Shoreline Clean up on Whitby waterfront

· Children's Aid Society ,. donated toys, food and gift certificates

· Adopted a family for Christmas providing food, clothing and toys.

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Gerdau is prepared to be responsive to any concerns that the City may have and be a

paricipant in their redevelopment plans for the area. It is Gerdau's position that a

successful redevelopment of the port lands in Oshawa will require the co-operation and

participation of many of the industrial operators in the affected area. Gerdau is happy to

playa role in helping the Council achieve its objectives

Gerdau has already taken a strong stance in opposition to the eN Rail Spur in the area.

A copy of our letter on this issue is attached. Gerdau has also discussed a role for itself

within the Council's efforts to revitaliZe the Harbour. Gerdau has discussed this with

Mayor John Gray as well as members of this committee and has received favourable

feedback and some concrete suggestions as to the role Gerdau might play. For example,

Gerdau has already been a paricipant in shoreline clean up in Whitby and would enjoy

the opportnity to paricipate in a similar program in Oshawa. Gerdau's close proximity

to one of Os haw a's most desirable recreational spaces - Lakefront Park - make Gerdau an

excellent candidate to provide financial and other support to redevelopment efforts in

this park. Gerdau would be interested in being a paricipant and partner with the City

and Council in your efforts to improve the harbour lands and is open to your suggestions

as to how Gerdau can best serve this role. It is Gerdau's hope and expectation that their

corporate leadership on this issue may assist the council in bringing

other industrialparners in the local area on side and on board for the exciting plans for the harbour

lands.

SOLUTIONS

Strict compliance with the bylaw is not workable. However, Gerdau is confident that

they can offer a solution to this issue which stil serves the Council's objective of

improving the streetscape. Gerdau does have a large fence but cannot maintain piles

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within the height of fence. The metal recycling business is one of small margins and

fluctuating prices. Successful operators need flexibility to store inventory to take

advantage of price fluctuations. As well, operating the site with more piles and less

height will make the operation less efficient, but more importtly will be more

dangerous to workers. The space between the piles wil be smaller, there will be less

visibility and as piles move out of range of the bailer workers will be required to handle

scrap more times and move it thought smaller pathways, thus increasing the risk of

InJury.

Typical volumes at the site are between 7,000 and 10,000 tons. Unfortnately, at the

time of the site visit Gerdau's volumes were abnormally high - between 16,000 and

20,000 tons. Since the date of the site visit Gerdau has worked to reduce and maintain

those volumes to the historical inventory level of under 10,000 tons.

Gerdau is proposing to employ a combination of management of pile height, selective

increases in fence height and strategic tree planning to substantially improve the street

scape outside of their facility.

Some graphics depicting the possible solutions are attached.

CONCLUSION

Gerdau is seeking your support for the following motion:

BIRT that the Audit, Budget andCorporate Services Committee agrees in principle to

provide an exemption to bylaw in respect of the Gerdau AmeristeeI propert located at

500 Waterloo Street, Oshawa on certain terms as are agreeable to the committee.

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BIFRT such terms as required above shall meet the objectives of the bylaw by improving

the aesthetic impact of the recycling materials at the site.

BIFRT Gerdau shall return to this committee on with a proposed solution

which includes selected increases in the fence height at the site, selective tree planting

and other landscaping measures at which time the committee will re-consider the

exemption together with the specific terms to attach to the exemption.

If you have any questions or comments please feel free to contact me at:

Jason HuntKitchen Kitchen Simeson McFarlane86 Simcoe Street SouthOshawa, Ontaro L i H 7L5

Tel:Fax:Email:

905-579-5302905-579-6073ihuntfêkksm.com

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