AGENDA - Middlesex County, Ontario · Council will resume the Regular Council meeting starting at...

MIDDLESEX CENTRE COUNCIL AGENDA

WEDNESDAY, MAY 9, 2018 6:00 PMMiddlesex Centre Municipal Office

AGENDA

The Municipal Council of the Municipality of Middlesex Centre will meet in Regular Session in the Council Chamber on May 9, 2018 at 6:00 pm.

1.0 CALL TO ORDER

Mayor Edmondson to call the meeting to order at 4:30 pm. and then Council will go directly into Closed Session. Council will resume the Regular Council meeting starting at 6:00pm

2.0 CLOSED SESSION

Moved by

R2018- THAT Council adjourn to closed session at __________ pursuant to Section 239 (2) of the Municipal Act, 2001, as amended to discuss the following matters:

2.1 Section 239 (2) (c) a proposed or pending disposition of land by the municipality or local board; and (f) advice that is subject to solicitor-client privilege, including communications necessary for that purpose.

2.2 Section 239 (2) (b) personal matters about an identifiable individual, including municipal or local board employees

Moved by

R2018- That Council rise out of Closed Session at ________pm and begin the Regular Council meeting at ______ pm.

3.0 DISCLOSURE OF PECUNIARY INTEREST AND GENERAL NATURE THEREOF

The Municipal Conflict of Interest Act requires any member of Council declaring a pecuniary interest and the general nature thereof, where the interest of a member of Council has not been disclosed by reason of the member’s absence from the meeting, to disclose the interest at the first open meeting attended by the member of Council and otherwise comply with the Act.

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4.0 ADDITIONS TO THE AGENDA

Moved by

R2018- THAT the Additions to the Regular Agenda of Council dated May 9, 2018 be added to the Agenda as printed.

5.0 ADOPTION OF THE MINUTES

April 25, 2018 Minutes

Moved by

R2018- THAT the minutes of the April 25, 2018 meeting of Council be adopted as printed.

6.0 DELEGATIONS AND PRESENTATIONS

6.1 Paul Node, Komoka Kilworth Business Association – Request to waive certain fees associated with a Provincial Election debate on May 27th and a Municipal Election debate Date TBA

Moved by

R2018- THAT Council directs staff to work with Paul Node of the Komoka Kilworth Business Association in regard to facility costs incurred associated with hosting a Provincial Election debate on May 27, 2018 and a Municipal Election debate at a date and time to be determined.

6.2 Morgan Calvert, County of Middlesex IT – County IT Service Agreement

Local Service Delivery – Information Technology Services Agreement Report

Moved by

R2018- THAT Council for the Municipality of Middlesex Centre receives the presentation from Morgan Calvert of the Middlesex County IT department regarding a County IT Service agreement with Middlesex Centre as information and that the associated by-law be considered.

7.0 CONSENT AGENDA

Items listed under the Consent Agenda are considered routine and may require discussion but no action on the part of Council. Consent items are received in one motion. Council members may request that one or more item be removed for further action.

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Moved by

R2018- THAT the Council for the Municipality of Middlesex Centre receives the Consent Agenda items 1 and 2 as information.

1. Budget to Actual April 2018 - Report CPS-16-2018

2. Capital Budget to Actual 2017 – Report CPS-17-2018

8.0 STAFF REPORTS

8.1 Report CAO-014-2018 - 2018 Community Improvement Plan

Moved by

R2018- THAT Council adopts the recommendations of the Ilderton Community Improvement Program Evaluation Committee for the approved projects:

Filson Car wash – total project cost of $5,044.71 –Municipal Contribution of $2,522.36

Village Teapot – total project cost of $929.54 – Municipal Contribution of $464.77

Floral Temptations – project 1 total cost of $3,610.35 – Municipal Contribution of $1,805.18/ project 2 total cost of $12,900 – Municipal Contribution of $5,000

The King Edward – total project cost of $11,231.17 – Municipal Contribution of $5,000

8.2 Report CPS-15-2018 – Council Remuneration

Moved by

R2018- THAT the base salary for the Mayor, Deputy Mayor and Councillors be adjusted as follows: Effective January 1, 2019 should be increased by $5,000.00 and starting in 2020 be adjusted for the Cost of Living Adjustment

8.3 Report CPS-17-2018 - Reserve Transfers 2017 Year End

Moved by

R2018- THAT the transfers to reserves in 2017 for the water, wastewater and stormwater surpluses in the amounts of $1,360,630.28, $1,012,041.80 and $733,231.59 respectfully be approved; and

FURTHER THAT the transfer to reserves in 2017 for the fire vehicles and equipment reserve fund in the amount of $3,476 be approved; and

FURTHER THAT the transfer to reserves in 2017 for the roads capital reserve fund in the amount of $272,540.00 be approved; and

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FURTHER THAT the transfer to reserves in 2017 for the general vehicles and equipment reserve fund in the amount of $24,535.00 be approved.

9.0 NOTICE OF MOTION

None

10.0 CORRESPONDENCE & PETITIONS

10.1 2018 - 2020 AMO Board of Directors - Call for Nominations

10.2 Bluewater Recycling Association – Board of Directors Meeting highlights – April 19, 2018

10.3 Upper Thames River Conservation Authority – General Meeting Agenda and Minutes – February 22, 2018

10.4 Bluewater Recycling Association - BRA Annual Report

Moved by

R2018- THAT the Correspondence items 10.1 through to 10.4 be received as information.

11.0 COUNTY COUNCIL UPDATE

12.0 OTHER BUSINESS

13.0 BY-LAWS

13.1 By-Law 2018-039 - A by-law approving and ratifying an agreement with AMO for funding under the Ontario Main Street Revitalization Initiative

13.2 By-Law 2018-040 - A by-law to appoint a Deputy Treasurer for the Municipality of Middlesex Centre (Melissa Kopal)

13.3 By-Law 2018-041 - A by-law approving and ratifying an agreement with Middlesex County for Information Technology Services

13.4 By-Law 2018-042 – A by-law approving and ratifying a Severance and Development Agreement between Sarah Stevens and the Municipality of Middlesex Centre (126 Arthur Street, Komoka)

13.5 By-Law 2018-043 - To adopt and confirm all actions and proceedings of the Council of the Municipality of Middlesex Centre at the Council meeting held on May 9, 2018

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Moved by

R2018- THAT By-Laws 2018-039 through 2018-043 inclusive be approved and passed.

14.0 ADJOURNMENT

Moved by

R2018- THAT the Council for the Municipality of Middlesex Centre adjourns the May 9, 2018 Regular Council meeting at ___________ p.m.

The next Council meeting is Wednesday, May 23, 2018 at 6:00 pm in the Council Chamber.

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Middlesex Centre

Council Meeting Minutes Middlesex Centre Municipal Office, Council Chambers

Wednesday, April 25, 2018, 4:00p.m.

The Municipal Council of the Municipality of Middlesex Centre met in Regular Session in the Council Chamber on April 25, 2018 at 4:00 pm.

COUNCIL PRESENT: Mayor Edmondson - Chair presiding, Deputy Mayor DeViet, Councillors: Harvey, Brennan, McMillian, Silva and Berze

STAFF PRESENT: Michelle Smibert – CAO, Ann Wright - Clerk, Colin Toth – Director of Fire and Emergency Services, Tiffany Farrell – Director of Corporate Services, Brian Lima – Director of Public Works and Engineering, Scott Mairs – Director of Community Services, Kelly Henderson – County Planner, Arnie Marsman - Director Planning & Development Services / Chief Building Official

ALSO PRESENT: Members of the public and press.

1.0 CALL TO ORDER

Mayor Edmondson called the meeting to order at 4:00 pm.

2.0 DISCLOSURE OF PECUNIARY INTEREST AND GENERAL NATURE THEREOF

None disclosed

3.0 ADDITIONS TO THE AGENDA

No additions to the agenda

4.0 ADOPTION OF THE MINUTES

Moved by Councillor Harvey; seconded by Deputy Mayor DeViet

R2018-122 THAT the minutes of the April 11, 2018 meeting of Council be adopted as printed.

CARRIED

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Regular Council Meeting Minutes, April 25, 2018 Page 2 of 11

5.0 DELEGATIONS AND PRESENTATIONS

5.1 Mike DeVos of Spriet Associates - Consideration of Drainage Report for the Reconstruction of the Squired Municipal Drain

Moved by Councillor Berze; seconded by Councillor McMillian

R2018-123 THAT Council, having considered the Engineer’s Report dated February 28, 2018 for the Squires Drain, approves Provisional By-law Number 2018-034 to provide for drainage works known as Squires Municipal Drain;

FURTHER THAT Council appoints May 23, 2018 at 6 pm for the Court of Revision;

FURTHER THAT the following persons be appointed to the Court of Revision:

Councillors Silva, Brennan and Berze

CARRIED

6 CONSENT AGENDA

Moved by Deputy Mayor DeViet; seconded by Councillor Berze

R2018-124 THAT the Council for the Municipality of Middlesex Centre receives the Consent Agenda items 1 through 4 as information.

CARRIED

7 STAFF REPORTS

7.1 Updated Leaves of Policy Report – CAO-19-2018

Moved by Councillor Berze; seconded by Councillor Silva

R2018-125 THAT the previous Human Resource Policy No. 2.09 approved by Report CAO-2016-016 be repealed and replaced with the attached policy in report CAO-19-2018.

CARRIED

7.2 Ilderton Arena Rubber Flooring, Quotation Results Report –CMS-01-2018

Moved by Councillor Harvey; seconded by Councillor Berze

R2018-126 THAT the Ilderton Arena Rubber Floor Replacement Project be awarded to the lowest tender bid submission received from Gym-Con Ltd. at a quotation price of $80,914.00 (excluding HST).

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FURTHER THAT the additional amount of $914.00 over and above the budgeted amount be approved and paid for from the Building & Facilities Reserve Fund.

CARRIED

7.3 Pedestrian Crossover Program Report – PWE-27-2018

Moved by Councillor Harvey; seconded by Councillor Silva

R2018-127 THAT on the recommendation of the Director, Public Works & Engineering, Departmental Administration Staff BE DIRECTED to implement a Pedestrian Crossover Program, as guided by the Ontario Traffic Manual Book 15 - Pedestrian Crossing Facilities.

CARRIED

7.4 2018 Asphalt Resurfacing Program PWE 18-22 Results Report – PWE-28-2018

Moved by Councillor Berze; seconded by Councillor Harvey

R2018-128 THAT the 2018 Asphalt Resurfacing Program be awarded to the lowest tender bid submission received from Dufferin Construction Company in the amount of $1,555,553.95 (excluding HST); and

FURTHER THAT the Mayor and Clerk be authorized to execute the necessary documents.

CARRIED

7.5 Martin Road Development Drain Report – PWE-29-2018


R2018-129 THAT the drainage works for the Martin Road Development Drain proceed;

FURTHER THAT staff be directed to notify the affected landowners and appropriate agencies of Council’s decision to proceed with the drainage works; and,

FURTHER THAT following the notice to the appropriate agencies, Kevin Moniz, P. Eng. of Strik Baldinelli Moniz be appointed to prepare a Drainage Report for a new Municipal Drain, all in accordance with the Ontario Drainage Act.

CARRIED

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7.6 Micro Surfacing Program Tender PWE 18-21 Results Report –PWE-30-2018

Moved by Deputy Mayor DeViet; seconded by Councillor Harvey

R2018-130 THAT the Micro Surfacing Program be awarded to the lowest tender bid submission received from MSO Construction Limited in the amount of $218,400.00 (excluding HST); and

FURTHER THAT the Mayor and Clerk be authorized to execute the necessary documents.

CARRIED

8 CLOSED SESSION

Moved by Councillor Silva; seconded by Councillor Berze

R2018-131 THAT Council adjourn to closed session at 4:37pm pursuant to Section 239 (2) of the Municipal Act, 2001, as amended to discuss the following matters:

8.1 Section 239 (2) (b) 2 personal matters about identifiable individuals, including municipal or local board employees

CARRIED

Moved by Councillor Silva; seconded by Deputy Mayor DeViet

R2018-132 THAT Council do now rise out of Closed Session at 4:53 p.m.

CARRIED

9 RECESS FOR DINNER

Moved by Councillor Silva; seconded by Councillor Berze

R2018-133 THAT Council recess at 5:29pm and reconvene at 7:00 pm.

CARRIED

10 COMMITTEE OF ADJUSTMENT

No Applications to be considered at this time

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11 PUBLIC MEETINGS

Moved by Councillor Silva; seconded by Councillor McMillian

R2018-134 THAT Council move into Public Meeting at 7:00pm under Section 53 & 39 of the Planning Act, R.S.O. 1990, c. P13, as amended.

CARRIED

Mayor Edmondson, Chair, welcomes those in attendance and reads aloud the Public Meeting Procedures

11.1 Sifton, Phase 1 Clear Skies Subdivision - Remove Holding Provision

The applicants were not in attendance

There were no comments from the public on the application.

Kelly Henderson, County Planner presented her report PLA-16-2018 and recommended that the application be granted.

Councillor Harvey asked if this was for all of phase one

Kelley Henderson replied saying yes


R2018-135 THAT the request by Sifton to remove the (h-1) holding provision from the zoning of the land containing Phase 1 of the Clear Skies subdivision be approved.

CARRIED

11.2 Consent Application B-5-18 – B-8-18 and Zoning Amendment ZBA 6-2018 – John VanDerVeken, 145 Harris Road

This public meeting was not held due to new information received by staff.


R2018-136 THAT consent applications B-5/18 – B-8/18, filed by Michelle Doornbosch, on behalf of John VanDerVeKen in order to create four residential lots for the purpose of constructing single detached dwellings, each new lot proposed to be severed is vacant and would have a frontage of approximately 27.7 metres (90.8 ft) along Harris Road and an area of approximately 0.27 hectares (0.7 ac), the retained lot contains a single detached dwelling, detached garage and barn and would have a lot

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frontage of approximately 26 metres (85 ft) along Harris Road and an area of approximately 4.18 hectares (10.3 ac); the property is legally described as Part of Lot 14, Plan 305 (Township of Delaware), Municipality of Middlesex Centre; be deferred.

CARRIED

11.3 Consent Application B-9-18 - Terry VanderWal, 10581 Hedley Drive

The applicants were in attendance and appeared before Council to speak to the application.


Kelly Henderson, County Planner presented her report PLA-18-2018 and recommended that the application be granted with the conditions set out in the report.

No questions of Council

Moved by Councillor Brennan; seconded by Councillor McMillian

R2018-137 THAT consent application B-9-18, filed by Terry VanderWal on behalf of Wal Agri Ltd in order to sever a surplus farm residence on a lot with a frontage of 100 metres along Hedley Drive and an area of 0.54 hectares; from a property legally described as Part of Lot 10, Concession 9 (geographic Township of Lobo), Municipality of Middlesex Centre; be granted. FURTHER THAT Consent B-9/18 be subject to the following conditions: 1. That the Certificate of Consent under Section 53(42) of the Planning Act shall be given within one year of the date of the notice of the decision. The request for the Certificate of Consent shall be accompanied by a written submission that details how each of the conditions of severance have been fulfilled. 2. That the fee for the Certificate of Consent be paid in accordance with the Municipality’s Fees and Charges By-law. 3. That a draft reference plan be prepared by an Ontario Land Surveyor for the purposes of facilitating the transaction of Consent B-9/18 and that this plan be approved by the Municipality prior to being deposited with the Land Registry Office. 4. That the Owner’s solicitor provides a Transfer in Preparation to the Municipality, together with a deposited reference plan and a Schedule

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describing the land to be transferred, for the purposes of the issuance of a Certificate of Consent. 5. That the Owner’s solicitor submits an undertaking in a form satisfactory to the Municipality to register an electronic transfer of title consistent with the Consent decision. 6. That, if necessary, a revised assessment schedule in accordance with the Drainage Act, as amended, be commissioned and paid for by the Owner. 7. That a Zoning By-law Amendment that recognizes the residential use of the severed lot of Consent B-9/18 and prohibits new dwellings on the retained lot of Consent B-9/18 be in full force and effect. 8. That the Owner enter into a severance agreement with the Municipality in order to advise future owners of the severed lot of Consent B-9/18 of normal farm practices occurring in the area as outlined in the Farming and Food Production Protection Act, 1998, as amended or replaced. The following requirement shall be included in the severance agreement: The Owner shall include in any Agreement of Purchase and Sale of the severed lot a warning specifically notifying future owners that normal farm practices, as outlined in the Farming and Food Production Protection Act, 1998, as amended or replaced, are engaged in and occur in the area of the property and shall require the purchaser, as a condition of any aforementioned Agreement of Purchase and Sale, to acknowledge and accept that normal farm practices, as outlined in the Farming and Food Production Protection Act, 1998, as amended or replaced, are engaged in and occur in the area of the property. 9. That any outstanding property taxes for the severed and retained lots of Consents B-9/18 be paid in full. 10. That the owner obtains the necessary permits and installs a new farm entrance in order to provide independent access to the agricultural storage buildings on the retained lot of Consent B9/18. 11. That the retained lot of Consent B9/18 be provided with an address to the satisfaction of the Municipality and with all signage costs being borne by the Owner. 12. That the abandoned farm buildings be demolished and removed, and that the site be restored to the Municipality’s satisfaction.

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13. That the mobile home be removed at the Owners expense. FURTHER THAT the reasons for granting Consent Application B-9/18 include: • The proposal is consistent with the Provincial Policy Statement; • The proposal conforms to the County of Middlesex Official Plan and the

Middlesex Centre Official Plan; and • Subject to the conditions, the proposal would comply with the Middlesex

Centre Comprehensive Zoning By-law. CARRIED

11.4 Consent Application B-10-18 – Maria Van Gorp, 9763 Glendon Drive.

Applicant, Maria Van Gorp was in attendance and appeared before Council. Mr. Steve Sinker was in attendance with her to speak to the application. He mentioned that Mrs. Gorp would like to create one single driveway on the property line for both in the front.


Kelly Henderson, County Planner presented her report PLA-19-2018 and recommended that the application be granted with the conditions set out in the report. Kelly also relayed a message from the County Engineer that they would want to see two separate driveways.

Councillor McMillian asked for confirmation that the Van Gorps had merged the property together in the past and now want to put them back together.

Maria Van Gorp confirmed that

Moved by Councillor Silva; seconded by Deputy Mayor DeViet

R2018-138 THAT consent application filed by Maria Van Gorp on behalf of 2425021 Ontario Inc. in order to sever two commercial lots that have been merged on title; the lot proposed to be severed would have a frontage of 125.5 metres along Glendon Drive, a depth of 62.64 metres and an area of 0.78 hectares and the lot proposed to be retained would have a frontage of 75.73 metres along Glendon Drive, a depth of 102.68 metres and an area of 0.79 hectares; the land is legally described as Part of Lot 3, Concession 1; Parts 1 and 2, 33R-18646 (Geographic Township of Lobo), Municipality of Middlesex Centre; be granted. FURTHER THAT Consent B-10-18 be subject to the following conditions: 1. That the Certificate of Consent under Section 53(42) of the Planning Act shall be given within one year of the date of the notice of the decision.

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The request for the Certificate of Consent shall be accompanied by a written submission that details how each of the conditions of severance have been fulfilled. 2. That the fee for the Certificate of Consent be paid in accordance with the Municipality’s Fees and Charges By-law. 3. That a draft reference plan be prepared by an Ontario Land Surveyor for the purposes of facilitating the transaction of Consent B-10/18 and that this plan be approved by the Municipality prior to being deposited with the Land Registry Office. 4. That the Owner’s solicitor provides a Transfer in Preparation to the Municipality, together with a deposited reference plan and a Schedule describing the land to be transferred, for the purposes of the issuance of a Certificate of Consent. 5. That the Owner’s solicitor submits an undertaking in a form satisfactory to the Municipality to register an electronic transfer of title consistent with the Consent decision. 6. That, if necessary, a revised assessment schedule in accordance with the Drainage Act, as amended, be commissioned and paid for by the Owner. 7. That the Owner convey the appropriate road dedication to a distance of 18 m from the centerline of Glendon Drive to the County of Middlesex. All costs associated with the conveyance shall be borne by the Owner. 8. That the Owner apply and obtain an entrance permit for the severed lot and that all costs associated with obtaining the permit be borne by the Owner. 9. That the severed lot of Consent B10/18 be provided with an address to the satisfaction of the Municipality and with all signage costs being borne by the Owner. 10. That any outstanding property taxes for the severed and retained lots of Consent B-10/18 be paid in full. FURTHER THAT the reasons for granting Consent Application B-10/18 include:

The proposal is consistent with the Provincial Policy Statement;

The proposal conforms to the County of Middlesex Official Plan and the Municipality of Middlesex Centre’s Official Plan;

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The proposal conforms to the Middlesex Centre Comprehensive Zoning By-law

CARRIED

12 NOTICE OF MOTION

None

13 CORRESPONDENCE

Moved by Deputy Mayor DeViet; seconded by Councillor McMillian

R2018-139 THAT the Correspondence items 13.1 through 13.6 be received as information.

CARRIED

14 COUNTY COUNCIL UPDATE

Deputy Mayor DeViet gave a brief overview of some of the currents Items that have come before County Council:

MPAC was in attendance and discussed Implementing Assessment Base Management and impacts, a slide deck is available on the April 24, 2018 agenda package for County Council

A presentation was made to County Council regarding Legal Services Review

A presentation was made to County Council regarding high speed rail

A presentation was made to County Council regarding Emergency Preparedness

The School Board will be coming to County Council for an interactive presentation, date and time to be announced

15 OTHER BUSINESS

None

16 BY-LAWS

16.1 By-Law 2018-034 - To provide a drainage works to be known as reconstruction of the Squires Municipal Drain

16.2 By-Law 2018-035 - To authorize the Treasurer or his/her designate, to process tax adjustments under Sections 356, 357, 358, and 359 of the Municipal Act”

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16.3 By-Law 2018-036 - To amend the Middlesex Centre Comprehensive Zoning By-law Number 2005-005 with respect to Registered Plan 33M-738 (Geographic Township of London)

16.4 By-Law 2018-037 - To amend the Middlesex Center Comprehensive Zoning By-Law number 2005-005 With respect to Part of Lot 14, Plan 305 (Geographic Township of Delaware)Roll number: 393901902002800

By-Law 2018-037 was not considered

16.5 By-Law 2018-038 - To adopt and confirm all actions and proceedings of the Council of the Municipality of Middlesex Centre at the Council meeting held on April 25, 2018


R2018-140 THAT By-Law 2018-034 be given first and second reading;

AND FURTHER THAT By-Laws 2018-035, 2018-036 and 2018-038 be approved. By-Law 2018-037 was removed from the agenda and not considered.

CARRIED

17 ADJOURNMENT

Moved by Councillor McMillian; seconded by Councillor Silva

R2018-141 THAT the Council for the Municipality of Middlesex Centre adjourns the April 25, 2018 Regular Council meeting at 7:20p.m.

CARRIED

UPCOMING MEETINGS OF COUNCIL

Wednesday, May 9, 2018 at 6:00 pm, Middlesex Centre Council Chamber

Wednesday, May 23, 2018 at 6:00 pm, Middlesex Centre Council Chamber

_____________________________ Al Edmondson, Mayor

_____________________________ Ann Wright, Clerk

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Committee of the Whole

Meeting Date: April 10, 2018

Submitted by: Morgan Calvert, Director of Information Technology Services

SUBJECT: LOCAL SERVICE DELIVERY – INFORMATION TECHNOLOGY SERVICES AGREEMENT

BACKGROUND:

In 2012, Middlesex County’s Information Technology Services (ITS) Department in partnership with the Municipality of North Middlesex piloted a shared service delivery model for the provision of information technology services. Each year since, the ITS department has on-boarded several local municipalities. The ITS department currently provides services to the Municipality of North Middlesex, the Township of Lucan Biddulph, the Municipality of Middlesex Centre, the Municipality of Thames Centre, the Township of Adelaide Metcalfe and is currently onboarding the Municipality of Southwest Middlesex.

During a comprehensive visioning session with Council in 2015, the various local service delivery models that were in use by the County’s Legal, Planning and ITS departments were discussed. Within the context of IT service delivery, Council and staff discussed the challenges and opportunities within the current framework. The current framework was an informal business relationship that left all parties involved with a varying degree of uncertainty relating to human resources, operational efficiency and strategic planning. However the current framework was based on a pay-per-use model that was attractive for local municipalities that wanted access to certain services but not all services, limited any barriers to service consumption while making it easy to manage per-use costs. For these reasons, Council and staff chose to stick with the existing framework until there was a higher rate of service adoption by the local municipalities.

From 2012 to today, the ITS department has been through significant change. Additional staff have been hired to support the business requirements of the County, Middlesex-London Paramedic Service, CFDC Middlesex, Strathmere Lodge Long-Term Care and six (6) of the eight (8) local municipalities within Middlesex County. The way the ITS department delivers IT services has changed substantially to better promote

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agility in the way in which services are delivered and consumed. Furthermore, the many policies, processes, security controls and training programs were updated to reflect shared service delivery methodologies.

During 2017 budget discussions, it was identified that the service adoption rate among local municipalities had reached a critical mass. This opened the discussion to the challenges regarding a pay-per-use model;

• Unpredictable revenue model • Unpredictable service consumption by the local municipalities • Due to the unpredictable nature of pay-per-use, budgeting for the local

municipalities was difficult • Difficult to flex service consumption up or down based on demand

The Budget Committee requested that a more predictable revenue model be developed keeping in mind both the service delivery agent and the customers. The Director of ITS took this direction as an opportunity to also consider the risks and liabilities associated to the overall provision of IT services as a shared service.

ANALYSIS:

In June of 2017, the Director of ITS began socializing the idea of a shared services agreement (attached as Appendix A – “Information Technology Shared Services Agreement”) with the participating local municipalities which seemed to be well received by the local CAOs. It was explained that the overarching concept is to protect the shared service and all parties involved by limiting associated risks and attempting to find operational efficiencies within the overall day-to-day management of the shared service.

Within this new construct, several factors were considered;

• Human resources • Operational efficiency • Predictable funding / revenue • Strategic planning • Shared service risks • Insurance requirements and potential exposures • Opportunities for collaboration and consolidation

A first draft of the agreement was created (and circulated to the local CAOs) in December of 2017. This agreement is an attempt to protect the investments the County has made in its human resources while creating opportunity for sustainable long-term planning and collaboration which should contribute to reducing the overall IT costs among participating municipalities. This agreement also creates a more predictable cost-recovery revenue structure for the County by leveraging Base Cost, Change Orders and Annual Reviews (see bottom of this report for more information). The agreement also builds in an annualized minimum increase of 2% as the majority of the


costs associated to the provision of IT services by the County to the local municipalities is directly related to human resourcing.

Termination of Agreement

One of the most important provisions in this agreement is the Termination provision. This provision not only protects the shared service but also protects the participating local municipalities. It allows for all parties involved to attempt to find further cost savings through long-term and collaborative planning, if they so choose.

For example, currently all participating local municipalities have their own “Email Server” which represents six different IT systems at six different geographic locations and six different individualized costs. If all six participating local municipalities decided to consolidate this particular service, it could be one server doing six different things in one geographic location at one much lower cost. If one local municipality decided to terminate the agreement, they would still be responsible for their portion of costs associated to this consolidated service so that the remaining participating local municipalities did not have to pay for another’s decision.

This provision simply ensures that a participating local municipality making a long-term financial decision is still financially responsible for it whether they are operating within the agreement or have terminated the shared service relationship.

Financial Provisions

Actual Costs Adjustment: The Base Cost of the Services is set out in Schedule A. The Base Cost will be paid by the Municipality in quarterly installments (March, June, September and December). In December of each year a reconciliation of the Base Cost and the actual costs of the IT services will be completed. The Actual Costs Adjustment will account for any Change orders made during the year and any unexpected increase/decrease in the costs of the Services. The final yearly invoice will contain the Actual Costs Adjustment.

Annual Review: There will be an Annual Review each year to review the Services provided and the anticipated IT needs to the Municipality in the upcoming year. The Base Cost set out in Schedule A will be amended at this time to reflect the results of the Annual Review. Services may be added or removed at this time. Any change orders made during the year will also be incorporated into Schedule A at that time.

Minimum Two Percent (2%) Increase: The Base Cost of the Services will be increased by a minimum of 2% each year. This is of course subject to any addition or removal of services. Below are some examples to assist in understanding:

Example 1: the Base Cost in year 1 is $10,000.00 for 5 different services. No Change Orders are made during the year and there is no adjustment to the December invoice as a result of the Annual Reconciliation. The results of the


Annual Review indicate that all five types of Services will be required in year 2 and that no other additional services are required. The only anticipated increase to the cost of the Services relate to labour and operational costs. The increase in these costs will be covered by the minimum 2% increase. The Base Cost ($10,000.00) will increase by 2% to $10,200.00.

Example 2: the Base Cost in year 1 is $10,000.00 for 5 different services. A Change Order is made halfway through the year to add an additional service. The Change Order indicates the Service will continue for the duration of the Agreement. The cost of this service is valued at $1,000.00 for half a year at the time of the Change Order. This amount is added to the December invoice. During the Annual Review the cost of the Service ($2,000.00 for a full year) is added to the Base Cost = $12,000.00. There are no other services added (or removed) during the Annual Review. The only anticipated increase to the cost of the Services relate to labour and operational costs. The increase in these costs will be covered by the minimum 2% increase. The Base Cost ($12,000.00) will increase by 2% to $12,240.00.

Example 3: the Base Cost in year 1 is $10,000.00 for 5 different services. A Change Order is made halfway through the year removing a service for the duration of the Agreement. The cost of this service is valued at $1,000.00 for half a year, at the time of the Change Order. This amount is deducted from the December invoice. During the Annual Review the cost of the Service ($2,000.00 for a full year) is deducted from the Base Cost = $8,000.00. There are no other services added (or removed) during the Annual Review. The only anticipated increase to the cost of the Services relate to labour and operational costs. The increase in these costs will be covered by the minimum 2% increase. The Base Cost ($8,000.00) will increase by 2% to $8,160.00.

Example 4: the Base Cost in year 1 is $10,000.00 for 5 different services. No Change Orders are made during the year and there is no adjustment to the December invoice as a result of the Annual Reconciliation. The results of the Annual Review indicate that all five types of Services will be required in year 2 and that Service X will also be required for year 2. The cost of Service X for year 2 is $5,000.00; this amount includes labour and operational costs associated with Service X. The Base Cost ($10,000.00) will increase by a minimum of 2% (to $10,200.00) to reflect increased labour and operational costs for the continuing Services. The cost for the new Service ($5,000.00) will be added to this amount and the Base Cost for the upcoming year will be $15,200.00.

Other Provisions


Amendments to Schedule A: the Actual Costs Adjustment and the Annual Review will be reflected in amendments to Schedule A. The amended Schedule A will come into effect January 1 of each year, following the first year of the Agreement.

Negotiation Provisions: provide the Director of ITS with the discretion to renegotiate the cost of the services in the event of a significant impact on human resources of the ITS Department.

RECOMMENDATION:

That the Information Technology Services Agreement as attached be approved as presented, noting that some provisions and schedules may need to be updated to reflect the specific local municipalities requirements; that the Director of ITS may amend from time to time the attached Schedules A, B, C and D; and that the necessary by-laws be presented to County Council to authorize the Warden and the County Clerk to execute the Information Technology Services Agreement with local municipalities as required.

Attachment


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INFORMATION TECHNOLOGY SERVICES AGREEMENT SERVICE AGREEMENT effective this _______ day of ___________, 2018. BETWEEN:

THE CORPORATION OF THE COUNTY OF MIDDLESEX (hereinafter called the “County”)

- and –

THE NAME OF LOCAL MUNICIPALITY

(hereinafter called the “Municipality”)

WHEREAS:

A. The County is a municipality and an upper-tier municipality as defined by the Municipal Act, 2001, S.O. 2001, c. 25, as amended or replaced (hereinafter the “Municipal Act”);

B. The Municipality is a lower-tier municipality and local municipality as defined by the Municipal Act;

C. Local municipalities located within the geography of the County of Middlesex and County

Councillors have expressed interest in having the County provide information technology services to the local municipalities;

D. Section 9 of the Municipal Act provides that municipalities have the capacity, rights,

powers and privileges of natural persons, which includes the power to do things that natural persons can do, such as, inter alia, provide information technology services and enter into agreements;

E. Subsection 11(1-2) of the Municipal Act provides broad authority for upper-tier

municipalities to manage their respective financial affairs and to provide any service the upper-tier municipality considers desirable for the public;

F. County Council considers the County provision of information technology services to the

local municipalities to be desirable, effective and valuable to the community;

G. Subsection 19(2)3 and 20 of the Municipal Act allows an upper-tier municipality to provide a service in a local municipality as long as one of the purposes of its provision is for lower-tier municipal purposes, there is consent from the local municipality, and the municipalities enter into an agreement with respect to the provision of such services;

H. The Municipality desires and consents for Information Technology Services to be provided

by the County and confirms that the purpose of delivery of such service from the County is to pool resources with the County in a cooperative effort to provide local municipalities with high quality information technology services at a cost which is not prohibitive (hereafter referred to as the “Initiative”);


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I. The Municipality acknowledges that, in reliance on the local municipalities’ express and collective desire for the Initiative, the County has hired information technology staff to provide information technology services to the local municipalities and that it would be detrimental to the County in terms of human resources and employment law costs if the Municipality were to terminate this Agreement;

J. Section 8 of the Municipal Act provides that the powers of municipalities shall be

interpreted broadly so as to confer broad authority to enable municipalities to govern their own affairs;

K. This Agreement sets out the conditions upon which the County will provide information

technology services to the Municipality; the requirements of said services; and the methods for requesting said services;

L. The CAO or the CAO’s designate is authorized to administer this Agreement for the Municipality and execute any such further documents as may be necessary to give effect to services herein described;

M. The Director of ITS and his or her designate is authorized to administer this Agreement on behalf of the County and execute any such further documents as may be necessary to give effect to services herein described.

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT, in consideration of the payment of the sum of TWO DOLLARS ($2.00) from each Party to the other and for other good and valuable consideration, including the covenants herein, the receipt and sufficiency of which is hereby acknowledged, the Parties covenant and agree as follows:

Recitals

1. The above recitals are true and hereby incorporated into this Agreement by reference.

Definitions

2. In this Agreement, in addition to terms defined elsewhere in this Agreement, the following terms have the following meanings:

(a) “Agreement” means this Agreement, including all Schedules, as it may be

confirmed, amended, modified, supplemented or restated by written agreement between the Parties;

(b) “Business Day” means any day excluding a Saturday, Sunday or statutory holiday in the Province of Ontario.

(c) “Change Order(s)” means a Change Order substantially in form of Schedule “C” which adds, removes or modifies a service to be provided to the Municipality by the ITS Department for the duration and at the cost set out in the Change Order. Any duly endorsed Changer Order(s) by the Municipality and the Director of ITS shall be an amendment to this Agreement and shall be appended hereto.


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(d) “Communication” means any notice, demand, request, consent, approval or other communication which is required or permitted by this Agreement to be given or made by a Party;

(e) “Consultant(s)” means a third party(ies) whose services are procured by the ITS Department upon the recommendation of the Director of ITS and paid for by the Local Municipalities whether individually or as a cooperative purchasing scenario.

(f) “Director of ITS” means the person appointed to hold the position of the Director of Information Technology Services of the ITS Department.

(g) “IT” means Information Technology.

(h) “ITS” means Information Technology Services.

(i) “ITS Department” means the department of the County having the mandate and responsibility for the provision of Information Technology Services.

(j) “ITS Staff” means employees of or independent contractors contracted with the County ITS Department.

(k) “IT Security” means systems or processes designed to mitigate unauthorized access to computers, networks and/or data. This could be in the form of privacy and confidentiality policies, employee education and training or IT systems or services which attempt to limit the exposure to the unauthorized access, use, disclosure, disruption, modification, inspection, recording or destruction of information.

(l) “Local Municipalities” means all of the local municipalities which are located within the geography of the County of Middlesex and, each of which have entered into a Service Agreement with the ITS Department.

(m) “Options Menu” means the services listed in Schedule “B”, which may be provided by the ITS Department in the event of a duly endorsed Change Order(s) by the Municipality and the Director of ITS for the duration and at the cost set out in Change Order(s).

(n) “Parties” means The Corporation of the County of Middlesex and NAME OF LOCAL MUNICIPALITY collectively and “Party” means one of them.

(o) “Services” means the information technology services list set out in Schedule “A” to be provided for the Term of this Agreement and for the cost set out in section 10(a) of this Agreement, subject to Change Order(s).


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Term

3. Subject to the termination and amendment provisions of this Agreement (ss. 20-22 and 25), the term of this Agreement shall be for five (5) years commencing on the effective date noted at the top of page one (1) of this Agreement (hereafter, the “Term”). The Term shall be automatically renewed for two further five (5) year terms commencing on the anniversary date of each five-year term, provided that neither Party terminates this Agreement in accordance with ss. 20-22, on or before the applicable renewal date.

Information Technology Services

4. The ITS Department shall provide NAME OF LOCAL MUNICIPALITY with ITS, as set out in the following documents:

(a) Schedule “A” Services List – sets out the services to be provided for the

Term of this Agreement for the cost set out in section 10(a) of this Agreement, subject to Change Order(s).

(b) Schedule “B” Options Menu - sets out services which are not included in

the cost set out in section 10(a) of this Agreement but may be provided by the ITS Department in the event of a duly endorsed Change Order(s) by the Municipality and the Director of ITS for the duration and at the cost set out in Change Order(s).

(c) Schedule “C” Change Order Form – provides a form of Change Order

Form to be used by the Parties. (d) Schedule “D” Regular Service Level Guidelines – a guideline document

which sets out incident response guidelines.

5. The scheduling and delivery times for Services will be discussed between the Director of ITS and the Municipality and the ITS Department shall use reasonable efforts to cooperate with and accommodate the scheduling requests of the Municipality.

6. Any change, modification or addition of a service to the Services, to be effective, must be processed through a Change Order(s) substantially in the form of Schedule “C” and endorsed by the Municipality and the Director of ITS. Change Orders shall generally identify the following:

(a) The nature of the change such as addition, deletion or modification of the

service; (b) The duration of the change; (c) How the Services are affected; (d) The increase or decrease of the cost of the Services as a result of the

Change Order.


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It is the responsibility of the Municipality to ensure that all Change Orders are compliant with local purchasing by-laws or policies. The County shall be permitted to rely upon the signature of the CAO or his or her designate as confirmation of compliance with any such policy or by-law. Any duly endorsed Changer Order(s) by the Municipality and the Director of ITS shall be an amendment to this Agreement and shall be appended hereto.

Consultants to be Procured by the County ITS Department

7. From time to time, it may be necessary for the ITS Department, on the recommendation of the Director of ITS, to procure Consultant(s) to assist with the provision of IT Services. Consultants may be retained where the ITS Department requires:

(a) specialized expertise; (b) additional support for significant projects; (c) additional support for short deadlines,

or in any other circumstance deemed appropriate by the Director of ITS.

8. Where the Director of ITS recommends the procurement of Consultant(s), he/she

shall notify the Municipality in writing of such recommendation with written reasons why the Consultant is necessary. It shall be the sole responsibility of the ITS Department to procure the Consultant(s) in accordance with the County purchasing policy and pay such Consultant(s) directly.

9. Any amounts due and payable to a Consultant or incurred by the County in procuring the consultant pursuant to section 7 shall be calculated and recovered from the Municipality. Prior to awarding the procurement of a Consultant to a particular individual or entity the ITS Department shall provide the name of a proposed Consultant to the Municipality so that it may advise the ITS Department of any potential conflicts of interest. Where the consultant may be performing services that will benefit more than one of the Local Municipalities, then the cost of the consultant will be divided between the benefitting Local Municipalities on a pro rata basis or as set out by the Director of ITS in writing to the Municipality.


Base Cost + Actual Costs Adjustment 10. The County shall be compensated for the provision of IT Services by the Municipality

in accordance with the Base Cost + Actual Costs Adjustment formula set out below:

(a) The base cost for the Services for the Municipality provided herein shall be $______ (hereafter the, “Base Cost”), as set out in Schedule “A”.


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(b) The Municipality shall pay to the County the Base Cost in quarterly invoices produced on or about March 31, June 30, September 30, and December 31 of each year during the Term of this Agreement.

(c) Invoices are payable within 30 days from the date the invoice is issued by

the County.

(d) An annual costs reconciliation and adjustment (hereafter the “Actual Costs Adjustment”) will be made in December of each year during the Term of this Agreement to ensure that the Municipality’s annual payment for the Services aligns with the actual cost to ITS of providing the Services. The Actual Costs Adjustment shall take into account the costs associated with any Change Order(s) made during the year and any other consideration deemed relevant by the Director of ITS, including but not limited to:

(i) the impact that the Services for the Municipality has had on the

human resources of the ITS Department; (ii) salary and benefits of ITS Staff; (iii) infrastructure costs; (iv) licensing costs; and (v) software and hardware costs.

The annual Actual Costs Adjustment, if any, will be reflected on the Municipality’s final invoice for the year issued on or around December 31. A report detailing the Actual Costs Adjustment will be provided by the Director of ITS to the CAO of the Municipality or his or her designate.

Annual Review 11. The ITS Department shall perform an annual review (hereafter the “Annual

Review”) in December of each year during the Term of this Agreement, and any renewals thereof, which will take into account both the Actual Costs Adjustment noted above and any anticipated Change Order(s) anticipated for the upcoming year, for the purposes of adjusting the Base Cost of the Services for the upcoming year. In determining the Base Cost for the upcoming year, the ITS Department shall take into account:

(a) any Change Order(s) made during the year; (b) the Municipality’s actual or anticipated ITS needs for the upcoming year; (c) the impact that the Services for the Municipality has had on the human

resources of the ITS Department; (d) salary and benefits of ITS Staff; (e) infrastructure costs;


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(f) licensing costs; (g) software and hardware costs; and (h) any other consideration deemed relevant by the Director of ITS.

Without limiting the foregoing, the Parties acknowledge and agree that, subject to any cost adjustment required by any Change Order(s) made during the year and any addition or removal of services based on the anticipated needs of the Municipality for the upcoming year, the Base Cost will increase by a minimum of two percent (2%) each year to account for increased labour and operation costs. Following the Annual Review, the Director of ITS, in consultation with the Municipality, shall amend Schedule “A” to adjust the Base Cost of the Services for the upcoming year. Any Change Order(s) made during the year that are intended to be in effect during the upcoming year shall be incorporated into the amended Schedule “A” at that time. The amended Schedule “A” shall come into effect January 1 of the year following the Annual Review.

Renegotiation Out of Necessity 12. Notwithstanding the foregoing or any other provision of this Agreement, at any time

during the Term of this Agreement, whether due to an Annual Review or otherwise, the Director of ITS in his or her sole discretion determines that that the Services being provided to the Municipality by the ITS Department are having a significant impact on human resources of the ITS Department which warrants an adjustment to the price, the price of the Services shall be renegotiated as between the Director of ITS and the Municipality’s CAO and this Agreement shall be amended as a result of the renegotiation. In the event that the Director of ITS and the Municipality’s CAO are unable to reach a renegotiated agreement within four (4) weeks from the time the Municipality was notified of the need for a price change, the price shall be considered a dispute and the dispute resolution mechanism provided for in section 27 of this Agreement shall commence.


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County Responsibilities

13. The County covenants that it shall be responsible for the following:

(a) the provision of the Services, as defined in Schedule “A” of this Agreement,

subject to the limitation of liability set out in section14 of this Agreement.

For clarification purposes, IT Security, as defined herein, are designed to mitigate unauthorized access to computers, networks and/or data, but do not guarantee total protection against computer viruses, unauthorized use of, or access to any computer; or the loss of, loss of use of, damage to, corruption of, inability to access or inability to manipulate electronic data, for such is beyond the scope of the Services. The Municipality remains responsible for any and all losses resulting from the aforementioned causes, subject to section 14 of this Agreement.

(b) providing best efforts to leverage shared services to reduce overall ITS

costs to Local Municipalities located in the geography of Middlesex County; (c) its own employees, Councillors, officers, and agents engaging in the

furtherance of their duties, wherever situate, in relation to the performance of the Services under this Agreement; and

(d) subject to the limitation or liability in section 14 of this Agreement, the

negligence of its own employees and agents in the furtherance of their duties under this Agreement.

County Indemnity

14. The County hereby releases, indemnifies, and holds harmless the Municipality, its

Mayor, Councillors, employees, directors, officers, and agents from and against any and all claims, causes of action, or losses suffered by the Municipality as a direct result of the negligent provision of the Services by County employees acting in the furtherance of this Agreement, however, the total amount of any such claims, causes of action, or losses for which the County may be liable to the Municipality in any calendar year shall be strictly limited to fifty-thousand dollars ($50,000.00).

Responsibilities of the Municipality

15. The Municipality covenants that it shall be fully responsible for the following:

(a) Its own corporate operations and activities; (b) Its own employees, Councillors, officers, and agents engaging in the

furtherance of their duties, wherever situate;


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(c) Its own negligence or the negligence of its own employees, Councillors, Mayors, directors, officers, and agents;

(d) Without limiting clauses 15(a-c), the operating and capital costs associated

with the IT systems, software, hardware, licensing, warranties, and other related costs of the IT systems, software, and hardware which it owns, maintains or licenses;

(e) Without limiting clauses 15(a-c), appropriately budgeting for its own IT

operating and capital expenditures, as recommended by Director of ITS;

(f) Determining, as the ultimate client, and in consideration of the recommendations of the ITS Department, which IT services are to be included in Schedule “A” on an annual basis;

(g) Without limiting clause 15(f), where IT Security is provided as part of the

Services, ensuring implementation of, and adherence to, the security and mitigation measures recommended by the ITS Department;

(h) Without limiting clauses 15(a-c), losses arising directly or indirectly from

computer viruses, unauthorized use of, or access to any computer, or the loss of, loss of use of, damage to, corruption of, inability to access or inability to manipulate electronic data;

(i) Providing best efforts to the Director of ITS notice of upcoming projects,

strategies and objectives that may impact IT resources; (j) Adhering to technology standards as determined by the ITS Department; (k) Without limiting clause 15(a-c), ensuring that third party vendor agreements

(underpinning contracts) are in place for appropriate service coverage; (l) Assigning a knowledgeable primary contact to facilitate IT related inquiries

and approvals; (m) Without limiting clause 15(a-c), adopting and adhering to appropriate ITS

policies; and (n) Providing to the ITS Department any and all relevant information relating

to its: IT systems; the use of its IT systems; software; hardware; licensing; and warranties.


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Indemnity from the Municipality

16. The Municipality hereby releases, indemnifies, completely holds harmless and agrees to defend the County, including the County’s Warden. Councillors, employees, directors, officers, agents and legal counsel from and against any and all claims, causes of action, demands, losses, costs, charges, fees, expenses, duties, dues, accounts, covenants, or other proceeding of every kind or nature whatsoever at law or in equity brought against, suffered by or imposed which arise out of or are related to any loss, damage or injury to any person or property (including injury resulting in death) which is caused by its operations, activities or the negligence of its employees, directors, or officers, including but not limited to: losses arising directly or indirectly from computer viruses, unauthorized use of, or access to any computer, or the loss of, loss of use of, damage to, corruption of, inability to access or inability to manipulate electronic data, subject to section 14 of this Agreement.

Force Majeure

17. Despite any section of this Agreement, no Party shall be liable for damages caused

by delay or failure to perform its obligations under this Agreement where such delay or failure is caused by an event beyond its reasonable control (hereinafter referred to as a “Force Majeure Event”). The Parties agree that an event shall not be considered a Force Majeure Event if a reasonable person owing duties to others in the same or similar circumstances as provided for under this Agreement would have put in place contingency plans to either materially mitigate or negate the effects of such an event. If a Party seeks to excuse itself from its obligations under this Agreement due to a Force Majeure Event, that Party shall immediately notify the other Party(ies) of the delay or non-performance, the reason for such delay or non-performance, and the anticipated period of delay or non-performance. In addition, the Party excusing itself due to a Force Majeure Event shall use its best efforts to remedy any such non-performance, except that nothing herein contained shall require any such party to make settlement of any labour dispute on terms unacceptable to it.

Compliance with Law and Confidentiality

18. The Parties agree to treat each other’s information that is not publicly available,

including information relating to the business affairs, operations, human resources and proprietary practices as confidential.


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19. Notwithstanding section 18 above, both Parties acknowledge that each of them, being

an Ontario municipality, is subject to the Municipal Freedom of Information and Protection of Privacy Act, RSO 1990, c M56 (“MFIPPA”) and as a result, some information may be required to be disclosed by either party as a statutory requirement. The Parties agree that notwithstanding section 18 of this Agreement, either Party shall have no obligation with respect to the disclosure of confidential information and does hereby fully and finally release the other, its respective Warden, Mayor, Councillors, officers, directors, employees, agents, and legal counsel from any liability for disclosing confidential information in the event that the Party that discloses confidential information does so in accordance with a lawful statute applicable in Ontario, including MFIPPA, or PHIPA or is ordered to disclose such information by the Office of the Information and Privacy Commissioner or any court or tribunal of competent jurisdiction.

Termination

By the Municipality

20. The Municipality may terminate this Agreement by providing six (6) months written notice to the County. The effective date of termination by the Municipality shall be exactly six (6) months after notice is effectively received by the County in accordance with section 23 of this Agreement (the “Termination Date”). The Municipality acknowledges that in the event the Municipality terminates this Agreement, it will no longer receive ITS, from the County, but it will remain liable for:

(a) Paying to the County all costs that, but for the termination, would have

been associated with providing the Services for the remainder of the year in which the Termination Date occurs;

(b) Paying the County an amount sufficient to cover the Municipality’s share

of any and all long-term obligations incurred for the benefit of the Municipality by the County in reliance upon the Municipality’s commitments to the Initiative, including but not limited to, the hiring of IT personnel, leasing, licensing, early termination costs, consultants and all other non-avoidable future costs identified; and

(c) The return of any hardware and/or software licenses that is not owned

solely by the Municipality to the County.

By the County

21. The County may terminate this Agreement at any time without cost or penalty upon providing six (6) months written notice to the Municipality.


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Due to Dissolution

22. In the event the Municipality dissolves as a Corporation, this Agreement shall terminate. In the event the County dissolves as a Corporation, this Agreement shall terminate. In either event, termination due to dissolution shall occur as of the date the corporate entity ceases operations. Each of the Parties covenant to inform the other immediately as soon as it has knowledge that the dissolution the cessation of operations is either being considered and/or has any semblance of likelihood.

Notices

23. Acceptable Communications between the Parties shall include communications

which are:

(a) delivered personally or by courier; (b) sent by prepaid registered mail; (c) transmitted by facsimile, e-mail or functionally equivalent electronic

means of transmission, charges (if any) prepaid.

Any Communication must be sent to the intended Party at its address for service listed on the signature pages of this Agreement or to any other address as any Party may at any time advise the other by Communication given or made in accordance with this section. Any Communication delivered to a Party to whom it is addressed will be deemed to have been given or made and received on the day it is delivered at that Party’s address, provided that if that day is not a Business Day then the Communication will be deemed to have been given or made and received on the next Business Day. Any Communication transmitted by facsimile, e-mail or other functionally equivalent electronic means of transmission will be deemed to have been given or made and received on the day on which it is transmitted, but if the Communication is transmitted on a day which is not a Business Day or after 4:00pm (local time of the recipient), the Communication will be deemed to have been given or made and received on the next Business Day.

Further Assurances

24. The Parties warrant that they shall do, execute, acknowledge, deliver and/or cause to be done such other acts, agreements and other documents as may be reasonably required or desirable to give effect to the terms of this Agreement.


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Amendment and Waiver

25. No amendment, discharge, modification, restatement, supplement, termination or

waiver of this Agreement or any section of this Agreement is binding unless it is in writing and executed by the Parties to be bound. No waiver of, failure to exercise, or delay in exercising, any section of this Agreement constitutes a waiver of any other section (whether or not similar) nor does any waiver constitute a continuing waiver unless otherwise expressly provided.

Assignment and Enurement

26. Neither this Agreement nor any right or obligation under this Agreement may be assigned by any Party, other than provided for herein, without the prior written consent of the other Parties. This Agreement enures to the benefit of and is binding upon the Parties and their respective heirs, executors, administrators, estate trustees, trustees, personal or legal representatives, successors and permitted assigns.

Dispute Resolution

27. Upon written requests to resolve any disputes arising from this Agreement which are

sent by one Party to another, the Parties hereby agree to resolve all disputes pursuant to this section. Upon receipt by the receiving Party of a written request to resolve disputes, the Parties shall first attempt to resolve all disputes by way of formal negotiation between the Parties and their appointed representatives. Generally, at first instance an attempt to resolve any dispute shall be performed by the Municipality’s staff and the Director of ITS. Should the dispute remain unresolved for a period of thirty (30) or more days then the matter may be escalated to the respective CAOs of the County and the Municipality. If the disputes cannot be settled within sixty (60) days from the receipt of the written request to resolve disputes by the receiving Party, then the Parties shall enter into a structured negotiation on a without prejudice basis with the assistance of a mediator appointed by them. If the disputes cannot be settled within ninety (90) days from the receipt of written request to resolve disputes by the receiving Party, or such longer period as may be agreed to by the Parties, the Parties shall, refer the matter forthwith to an arbitration which shall finally resolve the dispute(s). The aforementioned arbitration shall be conducted in accordance with the Ontario Arbitration Act, 1991, c 17, as amended or replaced.

Voluntary Enforceable Agreement

28. The Parties warrant that this Agreement is voluntary, that none of the Parties are

under any legal disability and that each Party has had an opportunity to seek the advice of independent legal counsel with respect to this Agreement.


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Counterparts

29. This Agreement may be executed and delivered by the parties in one or more

counterparts, each of which will be an original, and each of which may be delivered by facsimile, e-mail or other functionally equivalent electronic means of transmission, and those counterparts will together constitute one and the same instrument.

Severability

30. Each section of this Agreement is distinct and severable. If any section of this

Agreement, in whole or in part, is or becomes illegal, invalid, void, voidable or unenforceable in any jurisdiction by any court of competent jurisdiction, the illegality, invalidity or unenforceability of that section, in whole or in part, will not affect:

(a) the legality, validity or enforceability of the remaining sections of this

Agreement, in whole or in part; or (b) the legality, validity or enforceability of that section, in whole or in part, in

any other jurisdiction. Governing Law

31. This Agreement is governed by, and is to be construed and interpreted in accordance

with the laws of the Province of Ontario and the laws of Canada applicable in that Province.

[ONE (1) SIGNATURE PAGE FOLLOWS]


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IN WITNESS WHEREOF this Agreement has been executed by the Parties hereto on the date(s) set out below and the Parties agree that this Agreement shall be effective on the date set out at the top of page one (1) of this Agreement.

THE CORPORATION OF THE COUNTY OF MIDDLESEX

Date: _________________, 2018 Address for Service: Attn: County Clerk 399 Ridout Street N. London, ON N6A 2P1

Per: Marigay Wilkins, Warden

Per:

Kathleen Bunting, County Clerk

We have authority to bind the Corporation

NAME OF LOCAL MUNICIPALITY

Date: _______________________, 2018 Address for Service: Attn: Clerk Address Town, ON Postal Code

Per: ________, Mayor

Per: ________, Clerk


Schedules: A = Services List B = Options Menu C = Change Order Form D = Regular Service Level Standards


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SCHEDULE “A”

SERVICES

Service Name Effective Date

Duration of additional/changed service

Service Level

Service Desk For the duration of the Agreement

Regular

Service Description The Service Desk is a customer service focused single point of contact with the ITS Department. It is responsible for the efficient and effective resolution of incidents or service requests. The Service Desk tracks, logs and manages all incidents and service requests using an Information Technology Service Management (ITSM) system to ensure that all Service Level Standards are met.



Service Level

Website / Web Application Hosting

For the duration of the Agreement

Regular

Service Description: Website / Web Application Hosting is the business of housing, serving and maintaining files for one or more websites which are made accessible to the Internet. This service provides adequate storage and bandwidth to ensure the website or web application performs as expected. This service also includes related services such as domain name registration and renewal, DNS management, disaster recovery planning, AODA compliance reporting and availability monitoring. Below is a list of web sites and web applications that the Municipality owns which are hosted using Middlesex County IT infrastructure.

- www.website.com - www.website2.com - Learning management system


http://www.website.com/

http://www.website2.com/

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Service Name Effective

Date Duration of

additional/changed service Service Level

IT Procurement For the duration of the Agreement

Regular

Service Description: IT procurement is the series of activities and procedures necessary to acquire information technology products and services. By consolidating IT procurement, it creates opportunities to leverage economies of scale when purchasing equipment or services. IT procurement also drives technology standards to ensure that overall cost effectiveness and efficiencies are found within the Municipality. Functions of IT Procurement include, but are not limited to:

• Vendor Relationship Management • Equipment Purchasing • Technology Standards • Economies of Scale • Leveraging Vendor of Record Programs • Equipment Research and Recommendations • Procurement Vehicles: Request for Quotes and Request for Proposals



Service Level

IT Asset Management For the duration of the Agreement

Regular

Service Description: IT Asset Management is the set of business practices that join financial, contractual and inventory functions to support life-cycle management and strategic decision making for an IT environment. IT Assets are defined using the ITS Department’s Asset Management policy. For example (without limiting the foregoing), switches, routers and computers are assets. Keyboards and mice are not considered assets.


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Date Duration of


Management of Software Licensing

and Hardware Maintenance Agreements


Regular

Service Description: This service ensures the Municipality is in compliance with all software licensing requirements that the ITS Department is responsible for supporting and maintaining. This service also ensures that the appropriate hardware renewal / maintenance agreements of critical IT infrastructure are in place.



Service Level

Application Management and

Support


Regular

Service Description: Application Management and Support is a service that manages and maintains software applications throughout their lifecycle. This includes installation, maintenance and upgrades, troubleshooting, end-user support and basic usability assistance. The following is a list of software applications included in this Agreement as of the Effective Date.

- List the applications per Local Municipality - App 1 - App 2 - App 3 - App 4 - Etc.


19


Date Duration of


Network Monitoring For the duration of the Agreement

Regular

Service Description: This service monitors the performance and availability of critical IT infrastructure and services allowing the ITS Department to proactively respond to service disruptions.



Service Level

IT Security For the duration of the Agreement

Regular

Service Description: IT Security are defined as systems or processes designed to mitigate unauthorized access to computers, networks and/or data. This could be in the form of privacy and confidentiality policies, employee education and training or IT systems or services which attempt to limit the exposure to the unauthorized access, use, disclosure, disruption, modification, inspection, recording or destruction of information. The Parties acknowledge and agree that IT Security do not guarantee protection against computer viruses, unauthorized use of, or access to any computer; or the loss of, loss of use of, damage to, corruption of, inability to access or inability to manipulate electronic data, for such is beyond the scope of the Services. The Municipality remains responsible for any and all losses resulting from the aforementioned causes, subject to paragraph 14 of this Agreement.

- List Current Programs and Services the Municipality currently employs via this Service Agreement

- Audit and Compliance - Email Security Filtering - Secure Data Destruction and Equipment Recycling


20



Service Level

IT Disaster Recovery Plan


Regular

Service Description: A disaster recovery plan is a documented process or set of procedures to recover and protect critical IT infrastructure in the event of a failure or a disaster. This is not to be confused with a Business Continuity Plan or a Continuity of Operations Plan. This service is required for the effective management of critical IT infrastructure and services.



Service Level

Server virtualization For the duration of the Agreement

Regular

Service Description: Server virtualization enables more efficient use of IT resources by consolidating the number of physical servers within an organization. It allows physical resources to be better utilized by sharing such resources across multiple virtual server instances based on the performance requirements of each virtual server.



Service Level

User Account Management


Regular

Service Description: Add / Modify / Disable / Remove User Accounts across various IT systems to ensure appropriate access to IT systems and services is maintained. This service also ensures accounts are appropriately assigned to employees while ensuring that the necessary security controls are in place.

- User Account Management for up to XX accounts


21



Service Level

Email Account Management


Regular

Service Description: Add / Assign / Modify / Disable / Remove Email Accounts as required to support the email communication requirements of the Municipality.

- Email Account Management for up to XX accounts.



Service Level

File Server / Storage Management


Regular

Service Description: File Server / Storage Management is the process of maintaining or increasing the performance of data storage resources and protecting the integrity of data which is stored on the Municipality’s IT data storage infrastructure. This includes capacity planning, performance management, reliability of access to data and data backup.



Service Level

Printer/Scanner/Plotter Support


Regular

Service Description: This service includes setup, installation and troubleshooting of the Municipality’s printers, scanners or plotters. Where required, this service will also facilitate the coordination of third parties to ensure printers, scanners and plotters are functioning as expected.

- Unlimited number of Printers/Scanners/Plotters


22


Date Duration of


Desktop Support For the duration of the Agreement

Regular

Service Description: This service is responsible for the setup, installation, maintenance, testing, troubleshooting and overall management of laptop and desktop computers within the Municipality.

- Desktop Support for up to XX computers.



Service Level

Server Support For the duration of the Agreement

Regular

Service Description: This service is responsible for the setup, installation, maintenance, testing, troubleshooting and overall management of the Municipality’s physical or virtual server infrastructure.

- Server Support for XX physical servers. - Server Support for XX virtual servers.



Service Level

Network Support For the duration of the Agreement

Regular

Service Description: This service is responsible for the setup, installation, maintenance, testing, troubleshooting and overall management of the Municipality’s network infrastructure.

- Network Support for XX devices.


23



Service Level

Voice over IP (VoIP) Telephony Services


Regular

Service Description: This service is responsible for the development, application and deployment of network based telecommunication services for the purpose of transmitting voice, video, fax or data. VoIP replaces traditional analog phone systems with digital technologies that leverage existing network infrastructure.

- Voice over IP (VoIP) Telephony Services for XX phone systems



Service Level

Mobile Device Management /

Cellular Account Management


Regular

Service Description: This service is responsible for the overall administration and management of mobile devices and cellular enabled mobile devices such as, tablets, smart phones and mobile internet devices (rocket hubs, cellular enabled Wi-Fi routers).

- Mobile Device Management / Cellular Account Management of up to XX devices.


24



Service Level

Remote Access (VPN)


Regular

Service Description: A remote access service is any combination of hardware or software to enable users to remotely access internal corporate network or server services in a secure manner. This service allows the ITS Department to enable and support the Municipality in providing its employees remote access to internal IT resources.



Service Level

After-Hours IT Emergency Support


Regular

Service Description: This is a service that provides the Municipality access to IT support outside of regular office hours for IT related emergencies. IT Emergencies are defined as, any IT related failure or disruption to network or servers that causes a significant impact on the work flow of its users.


25

SCHEDULE “B”

OPTIONS MENU

This is a list of Services that can be added to the Service Agreement using the Change Order process in section 6 of the Agreement. This list is not meant to be all inclusive of every service the ITS Department can provide. If a service is not listed below, please contact the Director of ITS. This list does not contain a specific description for each Service as it is meant to promote conversation as the requirements and expectations may vary depending on the Municipality. A description will be developed to outline the requirements and expectations of the service.

• Electronic Records Management • Security Cameras • IT Policy Development • Content Management • Application Development • Analytics and Data Management • Report Writing • Technology Training • Intrusion Detection / Prevention • Security Assessments and Audits • Network Design • AODA Compliance Audit and Reporting • Information Architecture • Intranet Services • Consulting • IT Strategic Planning • Audio / Visual Components


26

SCHEDULE “C”

CHANGE ORDER

Pursuant to section 6 of the Information Technology Services Agreement (hereinafter, the “Agreement”) entered into and duly executed by the Parties on ____________ the Parties hereby agree to the following Change Order:

1. Schedule “A” of the Agreement is hereby amended to add the following IT services:

a. _____________.

b. _____________.

c. _____________.

2. The provision of the IT services identified in section 1(a) […etc.] shall commence on

________ and continue for the remainder of the Term of the Agreement or until ______________.

3. In addition to the Base Cost set out in section 10(a) of the Agreement, the Municipality

shall pay to the County ____________ for the provision of the services identified in section 1(a) […etc.]. The aforementioned sum shall be added to the Municipality’s December 31, _______, invoice, in accordance with section 10(c) of the Agreement.

THE CORPORATION OF THE THE CORPORATION OF THE MUNICIPALITY COUNTY OF MIDDLESEX OF ________________

____________, Chief Administrative Officer ______________, Director of ITS I have delegated authority to bind the I have delegated authority to bind the Corporation Corporation


27

SCHEDULE “D”

REGULAR SERVICE LEVEL GUIDELINES Support Hours

ITS support staff will be available for Service Desk and Emergency inquiries during the following hours:

Classification Hours of Service

Normal Hours Monday through Friday, 8:00 AM to 5:00 PM EST, not including statutory holidays

Afterhours (Emergency) All incidents outside of the above normal hours fall into the afterhours (emergency) category. The availability of afterhours ITS services are outlined in the Middlesex ITS Emergency Support Guidelines

Priority Definitions

Below are guidelines and examples for each priority level. Priority 1 (Urgent) Priority 2 (High) Priority 3 (Medium) Priority 4 (Low)

Mission-critical system or service is down.

Mission-critical secondary system is down.

Non-mission-critical system is down and a workaround is available.

Service request that does not require immediate attention.

Productivity Stopped. Staff can’t perform their work. (e.g. Internet is down, local network is unavailable)

High Impact to Productivity. Staff can perform only a small portion of their work. (e.g. Server failure, primary business software unavailable, ex. financial system unavailable).

Medium Impact to Productivity. Staff can perform most of their work, but some daily tasks are impacted. (e.g. Printer isn’t working, there are other working printers nearby)

Low Impact to Productivity. Staff can perform all of their normal daily tasks. (e.g. Adjusting printer settings)


28

Response Times

Response Times by Priority:

Priority Initial Response Resolution Time and

Reporting

Contact Person

Response Time

Resolution Time Reporting

1 – Urgent

Normal Hours

Service Desk 15 Minutes 4 Hours ITS Manager and ITS Director

After Hours On-Call Staff 1 Hour 4 Hours Escalation Manager

2 – High

Normal Hours

Service Desk 1 business hour

5 business hours

ITS Manager


3 – Medium

Normal Hours

Service Desk 4 business hours

12 business hours

Update ticket in Incident Management System

After Hours N/A N/A N/A N/A

4 – Low

Normal Hours


24 business hours




Staff Report

1

Report No.: CPS-16-2018 Meeting Date: May 9, 2018 Submitted by: Tiffany Farrell, Director of Corporate Services Subject: Budget to Actual April 2018

Recommendation: THAT the Budget to Actual report for April 2018 be received.

Purpose: To present to Council the financial results for April 2018.

Background: As presented to Council in Report CS016-001: Where valuable insight into the operations of the Municipality can be obtained is through comparing our current year budgeted numbers with the actual results to gain an understanding on where we stand. This monthly report will give Council valuable information that can affect future decisions. Council will gain an understanding monthly of how we are performing financially based on each department. Having this information will assist council in understanding how each department is performing financially and where we are over or under in budget before the financial statements are presented at year end. In addition, this information will assist in determining whether or not the variance was a onetime occurrence or whether future budgets should be adjusted to reflect actual spending habits. Overall, Council needs to keep an eye on what is actually happening to make sure that the municipal operations match the budget. This is why I would like to provide Council with regular financial reports that compare actual results of the budget. Financial reports are a good source of information and budget control.

Analysis: Attachment – outlines department specific issues.

Financial Implications: As shown compared to budget.

Strategic Plans: Financial: Maintain Financial Integrity Financial: Manage Costs

May 09, 2018 Page 1 of 2

04/05/2018

MUNICIPALITY OF MIDDLESEX CENTRE2018 BUDGET TO ACTUAL

April 2018

Actual Total Budget % Used NOTES

Property Taxes - Revenue (12,255,279) (16,658,353) 73.57%

No issues noted. Interim tax revenue recorded in February 2018, and year end will be recorded in August. School Board and County payments made in March 2018 and June 2018 which will reduce the revenue portion to half.

General Government - Revenue (1,005,387) (3,019,064) 33.30%

General Government - Expenses 1,371,388 7,040,231 19.48%

Protection to Persons and Property - Revenue (365,855) (800,366) 45.71%

Protection to Persons and Property - Expenses 1,053,678 4,499,519 23.42%

Public Works & Engineering - Revenue (15,675) (79,120) 19.81%

Public Works & Engineering - Expenses 1,377,967 6,054,402 22.76%

Environmental Services - Revenue (1,447,261) (7,787,832) 18.58%

Environmental Services - Expenses 1,361,574 8,122,347 16.76%

Health Services - Revenue (1,700) (8,050) 21.12%

Health Services - Expenses 280 17,488 1.60%

Community Services - Revenue (747,653) (2,168,584) 34.48%

Community Services - Expenses 993,234 3,836,067 25.89%

Planning & Development - Revenue (48,081) (474,522) 10.13%

Planning & Development - Expenses 72,121 714,293 10.10%

Vehicles & Equipment - Expenses 218,437 950,452 22.98%

TOTAL FOR MUNICIPAL PURPOSES (9,438,213) 238,908

As a whole for April 2018, there are no issues noted in the budget to actual analysis.

At the beginning of every month the detailed budget to actual reports are reviewed by the Director of Corporate Services and are provided to each Department and Directors perform a detailed analysis on their accounts, for April nothing was noted.

When looking at the % used column in this analysis, for a 12 month period a monthly average % used would equate to 8.33%, which means for April (4 months) this should be around 33.32%. As one can see from this analysis, no expenses are tracking close to the monthly amount, this is due to many reasons, but mainly due to the timing of processing invoices and expenses. The Municipality reports on a cash basis.Environmental Services revenue is not at the monthly average at this time, although the municipality is now processing revenue monthly, the higher usage amounts occur in the spring and summer months. Additionally, the bill for April is issued the first week of May and has yet to be posted in revenue at the time of this report.

May 09, 2018 Page 2 of 2

Staff Report

Meeting Date: May 9, 2018

Submitted by: Tiffany Farrell

Number: CPS-17-2018

Subject: Capital Budget to Actual 2017

Recommendation:

THAT the Budget to Actual Capital 2017 report be received.

Purpose:

To provide Council with a summary and explanation for any capital budget variances for the 2017 year.

Background:

Please refer to the attached report for detailed capital budget analysis. The Municipality is under budget on capital spending in 2017 overall. There were many projects financed by the tax levy in 2017 that were not spent entirely, the difference between what went over budget and what went under budget will be transferred into a Reserve in 2017 for funding of the projects in 2018. Refer to report CPS-18-2018 Capital projects completed to date have been financed based on user fees, development charges, debt financing, reserves or tax levy as set out in the 2017 budget. Financial Implications:

As shown compared to budget.

Strategic Plan:

Financial: Maintain Financial Integrity

May 09, 2018 Page 1 of 3

01/05/2018

Department Budget Actual Variance Notes

$ DescriptionAdministration

2 Hybrid/EV Car - Building Department 80,000 - 80,000 80,000 Building Department Reserve - Delayed delivery until 2018, carried forward as part of 2018 budget.

Total 80,000$ -$ 80,000$ 80,000$ -$

Fire DepartmentArva

Replace Engine/ Pumper 400,000 406,062 6,062- 406,062 Fire Vehicles & Equipment - Slightly over budget (1.52%), withdrawn from Fire Vehicles and Equipment reserve

Coldstream - -

New Hall Construction 2,800,000 2,904,783 104,783- 1,282,879 Budget DC Fire 51%, Amended DC Fire 35.2% -

Over budget in 2018.The DC eligible portion of the Coldstream fire hall changed during the 2017 DC amendment. The eligible portion decreased from 51% to 35.2%. $1,022,483.76 was funded from DCs in 2017 and $260,395.13 from prior years costs. The remaining portion is covered under the FCM grant and loan. This project will be completed in 2018.

Administration - -

Hydraulics/ Rescue Tools 20,000 15,996 4,004 20,000

under budget, remaining amount to be transferred to Fire Vehicles and Equipment Reserve to cover overage in SCBA bottles.

Infrared Cameras 30,000 30,528 528- 30,000 Slightly over budget $528

SCBA Bottles x20 40,000 45,104 5,104- 40,000 Fire Vehicles & Equipment - Over budget $5,104, withdrawn from fire vehicles and equipment reserve

TOTAL 3,290,000$ 3,402,473$ 112,473- 1,728,941$ 50,000$ Net amount to be transferred to Fire Vehicles and Equipment Reserve $3,476-

Public Works & Engineering -

Concrete Replacement Program 150,000 155,476 5,476- 155,476 Roads Capital - Additional funding from Roads Capital Reserve, $5,476.

Oxbow Drive (Komoka Rd to Valleyview Drive) 1,010,973 782,614 228,359 313,046 DC Roads 40% 606,584

Under budget, Tax levy surplus transferred to Roads Capital Reserve $137,016 (Difference in tax levy budgeted to tax levy utilized)

Wellington/Victoria/Martin/Longwoods Reconstruction 2,015,000 2,256,729 241,729- 1,918,220 DC Roads 85% - Over budget on DC eligible portion of project.

- 338,509 Roads Capital

Over budget on Roads Capital withdrawal:Budget $302,250Actual $338,509Difference $36,259 to be funded from Roads capital reserve

Hyde Park Road (Stone Field Ln to water tower) 250,000 39,808 210,192 31,418 DC Roads 90% 25,000

Ongoing project into 2018, surplus in tax levy funding $14,808 transferred to Roads Capital Reserve

Sinclair Drive (Nairn Rd to Bear Creek Rd) 243,000 195,307 47,693 - Road Entrance Permit - union gas - Funding for work obtained from Union Gas in 2017 - complete

Ivan Drive Nairn Rd. to Lobo Compressor station) 460,000 190,886 269,114 Union GasFunding for work obtained from Union Gas in 2017 - complete

Hot Mix Resurfacing Program 588,600 655,751 67,151- 442,668 OCIF Reserve 145,932

During the year, Council approved PWE 038-2017 to utilized Federal Gas Tax money on additional hot mix resurfacing roads and to fund these from the federal gas tax rather than the tax levy. Over budget was approved at that time (July 12, 2017).

Budget Adjustment PWE038-2017 220,000 Gas Tax

Tax Levy to be transferred to Reserve $145,070 ($862.41 allocated to 2017 tax levy). Hot Mix funded from OCIF $442,668 and Federal Gas Tax $212,220.87

Tri-Axle Trailer Pup - New 75,000 71,560 3,440 75,000 Under budget, Tax levy surplus transferred to general vehicles & equipment reserve $3440

Single Axle Truck - Replace 2005 International 3219 265,000 266,389 1,389- 265,000 Gen Vehicles & Equipment - Slightly over budgetTractor / Mower - Replace 1996 Case 585XL 3511 200,000 202,500 2,500- 200,000 Gen Vehicles & Equipment - Slightly over budget

One Ton Flatbed Truck - Replace 2005 GMC Topkick 3222 75,000 67,346 7,654 75,000 Gen Vehicles & Equipment -

Under budget, significantly higher than over budgets, no adjustment required, remains in reserve

3/4 Ton Pickup - Replace 2013 Chevrolet Silverado 3237 60,000 39,139 20,861 60,000 Under budget $20,861 transferred to General Vehicles & Equipment

Single Steel Drum Roller - New 155,000 154,766 234 155,000 Under budget, Tax levy surplus transferred to general vehicles & equipment reserve $234

Rehabilitate Bridge B-114 530,000 405,472 124,528 405,472 Gas Tax -

Balance remains in Federal Gas Tax Reserve Account for 2018.

Rehabilitate Culvert C-311 520,000 245,236 274,764 245,236 Gas Tax - Balance remains in Federal Gas Tax Reserve Account for 2018

Total 6,597,573$ 5,728,979$ 868,594$ 4,610,045$ 1,067,516$

Net Amount to be transferred to Reserves:General Vehicles & Equipment - $24,535.00Roads Capital $272,540.29 ($300,334 less Community services projects $27,793.71)-

Wastewater - Arva WWTF - New Facility 250,000 - 250,000 250,000 DC Wastewater 100% - project deferred to 2018Ilderton WWTF Expansion - Phase 1 265,000 279,720 14,720- 279,720 DC Wastewater 100% 14,720- project 100% DC funded

Tax Levy BudgetDescription

2017 Budget

Municipality of Middlesex CentreCapital Expenditures and Financing Detail

ReserveFinancing

May 09, 2018 Page 2 of 3

01/05/2018

Department Budget Actual Variance Notes

$ Description Tax Levy BudgetDescription ReserveFinancing

Kilworth West Sanitary Sewer Connection 1,475,000 30,014 1,444,987 23,711 DC Wastewater 79% 1,444,987 Project 79% DC funded, remaining from wastewater reserve

- 6,302 Wastewater ReserveHybrid/EV Car 20,000 - 20,000 20,000 Wastewater Reserve - Delivery of vehicles delayed to 2018.

Total 2,010,000$ 309,733$ 1,700,267$ 579,733$ 1,430,267$ As fully funded by Reserves, unspent amounts remain in reserves at year end.- -

Water -

Delaware - new supply 505,000 77,101 427,899 71,205 DC Water 14.1% -

Project presently being funded by Water Reserve, Grant funding received 2018, DC allocation to be completed 2018

- - 75,000 CWWF reserve- - 358,795 Water Reserve

Melrose Lake Huron Supply Connection 84,418 19,055 65,363 84,418 Water ReserveWellington/Victoria/Martin/Longwoods Reconstruction 300,000 183,631 116,369 183,631 Water Reserve, DC Eligible 85% 116,369 Oxbow Drive Reconstruction 49,060 10,992 38,068 49,060 Water Reserve - Glendon Drive Watermain Extension 210,000 17,500 192,500 114,030 DC Water 54.3% -

14,728 14,728- 95,970 Water ReserveWachs Automated Valve turning trailer 50,000 41,314 8,686 50,000 Water Reserve - Hybrid/EV car 20,000 - 20,000 20,000 Water Reserve - Delivery of vehicles delayed to 2018.

Total 1,218,478$ 364,322$ 854,156$ 1,102,109$ 116,369$ As fully funded by Reserves, unspent amounts remain in reserves at year end.- -

Stormwater - -

Wellington/Victoria/Martin/Longwoods Reconstruction 775,000 981,515 206,515- 147,227 Storm Water Reserve

Projected was reviewed and was 85% DC eligible, therefore DC portion covered amount over budget. Less impact on Stormwater Reserve

834,288 DC funded 85%

Oxbow Drive Reconstruction 401,920 401,144 776 240,687 Storm Water Reserve

Projected was reviewed and was 40% DC eligible, therefore DC portion covered amount over budget. Less impact on Stormwater Reserve

160,458 DC funded 40%

Total 1,176,920$ 1,382,660$ 205,740-$ 1,222,202$ 45,282-$ As fully funded by Reserves, unspent amounts remain in reserves at year end.- -

Community Services - - Ilderton Rail Trail 180,000 199,041 19,041- 125,143 DC Recreation 90% after Grant Over budget by $13,904.00

Delaware Community Centre floor 40,000 41,871 1,871- 31,871 Delaware Hydro ReserveOver budget by $1,871 removed from Delaware Hydro Reserve

Arva Washrooms Accessible 50,000 - 50,000 50,000 Building & Facility - project deferred to 2018, funding remains in reserve

Skateboard Park Ilderton 200,000 215,554 15,554- 133,340

Over budget by $15,554.00, however obtained a donation of $8,852.19, which decreased overage to $6,701.71

New Basketball Court Poplar Hill 45,000 57,158 12,158- 25,000 Over budget by $12,158.00

Ice Resurfacer - Komoka 100,000 73,761 26,239 100,000 Gen Vehicles & Equipment -

Under budget by $26,239 from General Vehicles and Reserve Fund. This will cover all vehicle overages as outlined below, the remaining overage stays in the reserve account.

Replace 2007 Ford Ranger - 1/4 Ton 35,000 39,281 4,281- 35,000 Gen Vehicles & Equipment - Over budget by $4,281 - covered by general vehicles and equipment reserve

New Half Ton Pickup 37,500 39,281 1,781- 37,500 Gen Vehicles & Equipment - Over budget by $1,781 - covered by general vehicles and equipment reserve

New Half Ton Pickup 37,500 39,281 1,781- 37,500 Over budget by $1,781 15' Trailer 3,500 4,382 882- 3,500 Over budget by $882

New Mower 15,000 15,750 750- 15,750 Gen Vehicles & Equipment -

Over budget by $750, $7,000 tax levy funding to come from general vehicles and reserve due to under budget for ice resurfacer. Tax levy raised will be allocated to over budget Ilderton Rail Trail project.Total from General Vehicles and Equipment $7,750

Municipal Accessibility Improvements (Bryanston Washroom) 64,000 77,913 13,913- 50,069 Building & Facility 13,069- Over budget $13,913 removed from building and facility reserve.

18' Trailer 4,500 4,617 117- 4,500 Over budget $117Total 812,000$ 807,892$ 4,108$ 445,333$ -$ 190,771$ - -

Total Capital 15,184,971$ 11,996,059$ 3,188,912$ 9,768,362$ -$ 2,809,641$

General Vehicles and Equipment - $12,427.00 remain in reserve from net under budget projects.Community Services over budget in tax levy funded capital projects by a net amount of $27,793.71. Overage will be covered by Roads Capital projects under budget on the tax levy, reducing the roads capital year end transfer.

May 09, 2018 Page 3 of 3

Staff Report Meeting Date: May 9, 2018 Submitted by: Michelle Smibert, Chief Administrative Officer Number: 2018-014 Subject: 2018 Community Improvement Plan

Recommendation: That Council adopts the recommendations of the Ilderton Community Improvement Program Evaluation Committee for the approved projects:

• Filson Car wash – total project cost of $5,044.71 –Municipal Contribution of $2,522.36

• Village Teapot – total project cost of $929.54 – Municipal Contribution of $464.77 • Floral Temptations – project 1 total cost of $3,610.35 – Municipal Contribution of

$1,805.18/ project 2 total cost of $12,900 – Municipal Contribution of $5,000 • The King Edward – total project cost of $11,231.17 – Municipal Contribution of

$5,000 Purpose: To review the applications received by the Municipality under the 2018 CIP Program. Background: The objective of the CIP is to compliment Dr. Avi Friedman’s Master Plan for the downtown and to revitalize the commercial core. Analysis: Eight applications were received by the Municipality that represented $59,482.79 in total investment work in downtown Ilderton. Recall that the grant categories include: façade/signage improvement, development charges and tax increment equivalent. All applications fell under the façade and signage category and the applications included:

• Tony VanBommel/Garage Property – asphalt work of $4,154 • Tony VanBommel/Grace Church Property – asphalting of parking lot $16,480

May 09, 2018 Page 1 of 2

• Ilderton Agricultural Society – replace fence on front green space at arena - $5,133.02

• Floral Temptations – tenant – replace front sign and install 2 signs on building - $3,610.35

• Owner of Floral Temptations – Larry Ducharme – exterior painting of building - $12,900

• Village Teapot – 2 signs to be placed on building - $929.54 • Filson Car Wash – landscaping of the corner of Ilderton Road and King Street

$4950 and painting of door - $94.71 • The King Edward – repair/replace roof - $5016.17 and replace rotting deck boards

on veranda including roof supports - $6,215

There was some question regarding the eligibility of the Ilderton Agricultural Society given they are not a business/nor a municipality and that there is also an agreement with the Society and the municipality that speaks to costs that are covered by the municipality, etc. There was some discussion with respect to the applications submitted by Tony VanBommel and it was felt that the proposed work/improvements to the properties are likely not best to be funded at this time. Successful applicants will receive 50% of the project costs up to a maximum project cost of $10,000. Funding is based on actual amounts of the project work and subject to the projects being completed. Financial Implications: $14,792.31 to be funded through the Build Middlesex Centre Fund Strategic Plans: Promote a Positive Image

May 09, 2018 Page 2 of 2

Staff Report

1

Report No.: CPS-15-2018 Meeting Date: May 9, 2018 Submitted by: Tiffany Farrell, Director of Corporate Services Subject: Council Remuneration Recommendation: That the base salary for the Mayor, Deputy Mayor and Councillors be adjusted as follows: Effective January 1, 2019 should be increased by $5,000.00 and starting in 2020 be adjusted for the Cost of Living Adjustment. Purpose: To provide a recommendation on an increase in Council remuneration due to the removal of the 1/3 tax exemption in lieu of claiming expenses related to their duties for 2019. Background: In the 2017 Federal government budget contained a legislative change to eliminate the tax exemption for elected officials effective 2019. Municipal elected officials across the country have been able to decide to use a 1/3 tax exemption in lieu of claiming expenses related to their duties. Middlesex Centre has always allowed the 1/3 of remuneration to be declared tax free for personal income tax purposes, however this will now come to an end in 2019. Municipalities across Ontario have been investigating the impact this will have on Council members, including the County of Middlesex. Analysis: Middlesex Centre has been monitoring what other Municipalities are doing with respect to the 1/3 exemption. Specifically, within Middlesex County, other local tier Treasurers have been in discussion with the County Treasurer to determine the best course of action. The goal is to provide fair and reasonable remuneration for performing the duties of the office and reimbursement for the expenses that are incurred in fulfilling the responsibilities. The following factors were taken into account when reviewing remuneration considerations: • Reflect the demanding nature and responsibilities of the position in order to attract capable candidates; • Neighbouring municipalities compensation levels; and • Fiscal capacity of the municipality. Effective January 1, 2018 the following salaries are in place for the Municipality: • Councillor, $16,543.02

May 09, 2018 Page 1 of 4

Staff Report

2

• Mayor: $26,469.04 • Deputy Mayor: $19,851.26 Please refer to the attached document outlining other Municipalities council remuneration. Middlesex County just passed a resolution to increase council remuneration by $5,000 per position and other Municipalities are currently considering adjusting the council pay to maintain the same net pay by increasing the gross salaries effective January, 2019 to offset the elimination of the one-third tax-free portion of the salary. The true impact of the change in council is impossible to determine because the impact will be different depending on external income for each councillor. Therefore, it is fair to consider an average impact as well as the average compensation for adjacent municipalities in considering compensation levels Possible Scenarios: 1. No change to salaries for the Mayor, Deputy Mayor and Councillor Positions and increase these positions each year by the cost of living adjustment. 2. Increase all Positions by $5,000. Financial Implications: The impact to the 2019 budget will be an increase of $35,000, representing an increase in the tax levy of approximately .23% Strategic Plan: Financial: Maintain Financial Integrity.

May 09, 2018 Page 2 of 4

ELECTED OFFICIALS REMUNERATION SURVEY AUGUST 2017

Municipality Remuneration Meeting Rates Conference

Per Diem Capped Paid for All

Meetings Meetings Required to Attend Without Pay

No. Regular Meetings

Average # Committee Meetings

Additional Information

Mayor Deputy Mayor

Councillors Council Committee Other

Thames Centre

$23,957.52

Indexed annually – equal to

increase in staff/union

remuneration

$17,623.80



remuneration

$14,594.88



remuneration

-

-

-

Rate equal to rate of Middlesex County Council (currently $151.49 per ½ day)

$6,000 per member (includes registration, accommodation, meals, per diem & travel - paid in accordance with Automobile Allowance Rates – CRA)

No – included in salary Council Meetings - Mileage paid in accordance with Automobile Allowance Rates - CRA

All

21

Only 2 council reps appointed to various committees – a member may attend anywhere from 6 – 26 per year

Additional remuneration for representatives on Police Services Board

Strathroy-Caradoc

$43,507.90

$22,394.88

$17,457.05

-

-

-

Registration, two meals, travel

$10,000 for whole Council (9 members)

No – included in salary

Council & Committee

24

Each attend about 12

Additional remuneration for representatives on Police Services Board

Middlesex Centre

$26,026.52


increase in staff

remuneration

$19,519.50


increase in staff

remuneration

$16,266.38


increase in staff

remuneration

-

-

-

No (receive

mileage $.54 per/km)

2/year (reviewing policy)

No – included in salary

All meetings

24-27

Approx 12 - Council reps appointed to various committees

Newbury

0

0

0

$35.00

$35.00

$35.00

No

No

Committee of Adjustment and Newbury Community Services - $35.00

4

12

4

Southwest Middlesex 2016 Rates

$12,025.19

Indexed annually to

reflect preceding

year of CPI

$6,680.67

Indexed annually to

reflect preceding

year of CPI

$4,008.41

Indexed annually to

reflect preceding year

of CPI

$80.17

$80.17

$80.17

$166.87 (max 3 days)

$2,977.15 (includes accommodation, travel, per diem & out of pocket expenses) – adjusted annually to reflect preceding year of CPI)

Yes

None

33

Tillsonburg

$33,038.46

$13,861.12

$12,522.64

-

-

-

$130/day

No – included in salary (except Hydro Board $6,456.40/yr)

All Council Advisory Committees (1-2 committees)

22

12

Additional remuneration for Police Services Board

May 09, 2018 Page 3 of 4

ELECTED OFFICIALS REMUNERATION SURVEY AUGUST 2017

Malahide 2015-2018

$20,697.96 Indexed annually

commencing Jan 1 2019

equal to percentage increase to Municipal

Staff Salary Grid once

determined



equal to percentage increase to Municipal

Staff Salary Grid once

determined



equal to percentage increase to

Municipal Staff Salary Grid

once determined

-

-

-

$165/day plus mileage

Included in salary

Council Meetings – annual allowance: Mayor/Deputy Mayor $849.96 Councillor $570.00

24 12

Aylmer

$15,604.80

$10,610.04

$8,738.52

-

-

-

N/A Reasonable - Approved by Administrator

Administrator includes amount in annual budget

Included in salary (except outside boards which may provide payment)

27

Approx. 27 + Water Board meetings and EEECC Interim Board

Annual Remuneration for Police Services Board

East Zorra Tavistock

$19,046

$16,278

$13,506

-

-

-

$220.45/day Mileage $.54 Meals max $40/meal & $75/day Accommodation & Parking

Included in salary

21-22

None

Norwich

$23,298 Indexed

annually – equal to

increase in staff(union)

remuneration

$20,420 Indexed



remuneration

$17,275 Indexed



remuneration

-

-

-

$160/day – Max 3 per diems/ event (excludes mileage/travel & accommodation) Seminars - $125/day (excludes mileage)

Max 3/year

Reimbursed for mileage – meetings/ conferences/seminars and board meetings as appointed (provided Board does not provide reimbursement). Mileage rate equal to previous years rate per km Revenue Canada Policy

24-26

Average 2/month – Mayor more

May 09, 2018 Page 4 of 4

Staff Report

Meeting Date: May 9, 2018

Submitted by: Tiffany Farrell

Number: CPS-17-2018

Subject: Reserve Transfers 2017 Year End

Recommendation:

THAT the transfers to reserves in 2017 for the water, wastewater and stormwater surpluses in the amounts of $1,360,630.28, $1,012,041.80 and $733,231.59 respectfully be approved; and

FURTHER THAT the transfer to reserves in 2017 for the fire vehicles and equipment reserve fund in the amount of $3,476 be approved; and

FURTHER THAT the transfer to reserves in 2017 for the roads capital reserve fund in the amount of $272,540.00 be approved; and

FURTHER THAT the transfer to reserves in 2017 for the general vehicles and equipment reserve fund in the amount of $24,535.00 be approved.

Purpose:

To transfer the money raised from the tax levy in 2017 for capital projects that were either not completed in the year or came in under budget.

Additionally, to transfer the water, wastewater and stormwater operating surpluses to the reserve funds at year end.

Background:

As outlined below there was money raised on the tax levy for capital projects that were not completed and deferred to 2018 or completed under budget. Therefore it is important that the money raised on taxes be transferred to reserves to pay for future projects.

May 09, 2018 Page 1 of 3

Analysis:

Transfer to reserve funds for Water, Wastewater and Stormwater

Wastewater surplus year-end - $1,012,041.80

Stormwater surplus year-end - $733,231.59

Water surplus year-end - $1,360,630.28

Transfer to roads capital reserve fund, fire vehicles and equipment reserve fund and the general vehicles reserve fund

Transfer to roads capital reserve fund for the net effect of capital projects funded from the tax levy 2017 $272,540.00

Transfer to general vehicles and equipment reserve fund for the net effect of capital projects funded from the tax levy 2017 $24,535.00

Transfer to fire vehicles and equipment reserve fund for the net effect of capital projects funded from the tax levy 2017 $3,476.00

For capital analysis refer to report CPS-17-2018 Capital Budget to Actual 2017.

Refer to Attachment – 2017 Reserve Balances (unaudited)

Financial Implications:

Refer to details above.

Strategic Plan:

Financial: Manage Costs Financial: Maintain integrity

May 09, 2018 Page 2 of 3

2018.02.15 8.0 9759 01/05/2018 1:37PMMunicipality of Middlesex Centre

General LedgerTrial Balance

Posting Period: 12 Ending 31/12/2017Fiscal Year Ending:

Year to DateAccount Description Debits Credits

31/12/2017

Cash-in-Lieu of Parking01-0000-3412 7,465.21

Delaware Hydro01-0000-3415 838,605.14

Insurance Claims01-0000-3420 155,067.73

Winter Maintenance Reserve Fund01-0000-3426 110,175.22

Employee Benefits01-0000-3430 194,908.41

Medical Centre01-0000-3436 63,508.50

Waste Management01-0000-3445 171,192.00

Gravel Pit Rehabilitation01-0000-3450 472,789.73

Buildings & Facilities01-0000-3455 2,037,936.67

Fire Vehicles & Equipment01-0000-3460 888,517.85

Fire Public Education01-0000-3463 87,751.17

General Vehicles & Equipment01-0000-3465 322,140.20

Build Middlesex Centre01-0000-3470 671,339.92

Ontario Community Infrastructure Fund (OCIF)01-0000-3473 766.95

Gas Tax Rebate01-0000-3475 333,821.28

Ilderton Lions Park01-0000-3478 36,080.08

Poplar Hill Log Cabin01-0000-3490 6,409.97

Tax Rate Stabilization01-0000-3495 1,986,397.03

Cost Stabilization Reserve Fund01-0000-3508 472,675.92

Administrative Support Reserve01-0000-3509 81,364.21

Roads Capital01-0000-3510 3,395,515.32

Wastewater Capital01-0000-3520 1,194,016.22

Stormwater Capital01-0000-3525 1,121,214.22

Water Capital01-0000-3530 1,958,427.57

16,608,086.52Revenue Fund Balance: 0.00

0.00 16,608,086.52Report Total:

Trial Balance SummaryAssets 0.00

Fund Balance 0.00

Liabilities 16,608,086.52-

Net 16,608,086.52-

Revenues 0.00

Expenses 0.00

Net 0.00

Page 1

May 09, 2018 Page 3 of 3

2018 – 2020

AMO BOARD OF DIRECTORS Call for Nominations

April 23, 2018

May 09, 2018 Page 1 of 8

May 09, 2018 Page 2 of 8

1

Monday, April 23, 2018

To: Head and Members of Council From: Trevor Wilcox, Secretary-Treasurer, AMO

Please be advised that in accordance with the Association’s governing by-law, the Secretary-Treasurer is requesting nominations to the 2018 – 2020 AMO Board of Directors.

Attached please find: • A summary of the offices for which elections will be held at the 2018 Annual Meeting;• An estimate of the annual time commitment required to serve on the AMO Board of Directors

and for those who will then serve on the AMO Executive Committee; and• Nomination Form

The names of all qualified individuals who are duly nominated will appear on the ballot for election to the Board. From the AMO Bylaw No. 2, Part 3, qualifications are:

3.3 Qualifications of Directors. a) Every Director shall:

• be an individual of eighteen (18) or more years of age;• be an elected official of a Member Municipality or an employee of a Member Municipality

of the Corporation;• not be an undischarged bankrupt; and• not be declared incapable.

b) The position of Secretary-Treasurer is to be filled by an employee of a Member Municipalityand also meet the qualifications of 3.3 a).

Qualified Nominees must obtain a Council resolution of support which must also specify the Caucus or position for which the individual is being nominated. In order to provide the broadest representation possible, AMO Bylaw No. 2 stipulates that a member municipality can only have one representative on the Board unless another representative is on the Board as an appointed official from a municipal group. See Section 3.4(e).

A completed Nomination Form and supporting material must be received no later than 12:00 noon on Monday, June 25, 2018. Nominations will not be accepted beyond that date. AMO’s Chief Returning Officer, Peter Fay, will certify the nomination. A Nominations Report will be issued no later than Friday, July 27, 2018.

Please forward a completed Nomination Form to the Association via email [email protected] or fax at (416) 971-6191 or mail to the attention of Pat Vanini, Executive Director

All candidates will be contacted to confirm receipt of their nominations and at that time will receive further information on the election process.

If you have any questions regarding this information, please contact Pat Vanini, Executive Director at (416) 971-9856, ext. 316, e-mail [email protected] or Lorna Ruder, Executive Assistant, ext. 341, email [email protected]

May 09, 2018 Page 3 of 8

mailto:[email protected]



2

Commitment:

The following is an estimate of time individuals can normally expect to devote for service on the AMO Board of Directors and Executive Committee (i.e. Chair of each Caucus).

Executive Meetings: 10 days

Memorandum of Understanding Meetings: 8 days (Executive Committee only)

Board Meetings: 6 days

AMO Conference: 3 days

Other Commitments: up to 6 days, depending on interest (task forces, other meetings)

Board Meetings:

Board meetings are normally held on the fourth Friday in September, November, January, March and June and on the Saturday and Sunday in advance of the AMO Annual Conference in August. The June meeting is normally held in the President’s or Secretary-Treasurer’s home municipality. In addition to the Board meetings, Board members may also serve on AMO Task Forces.

Executive Meetings:

Executive meetings are held on the Thursday before a scheduled Board meeting and on the fourth Thursday of the month when there is no Board meeting. Memorandum of Understanding (MOU) meetings are specifically scheduled annually in concert with the Ministry of Municipal Affairs.

May 09, 2018 Page 4 of 8

3

AMO Board/Executive/Volunteer Expense Reimbursement Policy

This policy applies to members of the Executive and Board as it relates to Executive Committee meetings (including MOU meetings) and Board of Directors meetings.

Travel Expense:

AMO will reimburse travel expenses in excess of $300.00 per meeting for AMO Board of Directors, AMO Executive Committee meetings, and MOU meetings, which are generally held in the City of Toronto or the President or Secretary-Treasurer’s municipality. Travel expenses refer to airfare, train fare, car mileage, public transit, and parking costs, and shall not apply to AMO Board of Directors/Executive meetings that are held prior to or following the AMO Annual Conference, Urban Symposium or Counties, Regions and Single Tier Symposium. Members are expected to make the most efficient and cost effective travel arrangements.

Mileage Rates:

Automobile travel allowance rates are 54 cents for the first 5,000 kilometers, and 48 cents for each additional kilometer.

AMO’s mileage rate is based on Revenue Canada’s current “Automobile Deduction Limits and Expense Benefit Rates for Business” and is adjusted annually to reflect any changes.

Accommodation/Meals:

There is no provision for the reimbursement of accommodation and meals.

Northern Ontario Exception:

Northern Ontario Executive Committee and Board members are expected to take advantage of airfare savings, and make the most efficient and cost effective travel arrangements. As some Northern Ontario board/executive members have connecting flights making it impossible to complete their travel without incurring accommodation and meal expenses, then AMO will reimburse a maximum of three days accommodation and meal expenses.

May 09, 2018 Page 5 of 8

4

Notice of Elections:

Elections will be held for the 2018 – 2020 AMO Board of Directors consistent with the AMO By-law No. 1. Positions include:

• President (must be a municipal elected official).

• Secretary-Treasurer (must be a municipal staff official).

• 6 County Caucus Directors. To be Elected: Three elected officials and one municipalemployee to be elected by caucus constituency at the conference. Appointed Officials: Chairsof the Eastern and Western Ontario Wardens Caucuses.

• 7 Large Urban Caucus Directors. To be Elected: Five elected officials and one municipalemployee to be elected by caucus constituency at the conference. Appointed Official: Chairof the Large Urban Mayors’ Caucus of Ontario.

• 6 Northern Caucus Directors. To be Elected: Four elected officials to be elected by caucusconstituency at the conference: two from the Northeast and two from the Northwest.Appointed Officials: Chairs of the Federation of Northern Ontario Municipalities and theNorthern Ontario Municipal Association.

• 7 Regional and Single Tier Caucus Directors. To be Elected: Six elected officials to be electedby caucus constituency at the conference. Appointed Official: Chair of the Mayors andRegional Chairs of Ontario’s Single Tier Cities and Regions.

• 6 Rural Caucus Directors. To be Elected: Four elected officials and one municipal employeeto be elected by caucus constituency at the conference. Appointed Official: Chair of theRural Ontario Municipal Association.

• 6 Small Urban Caucus Directors. To be Elected: Four elected officials and one municipalemployee to be elected by caucus constituency at the conference. Appointed Official: Chairof Ontario Small Urban Municipalities.

Each of the above elected caucus members shall serve a two-year term.

*Excerpt from AMO Bylaw No. 2, Section 3.4 (e): No Member Municipality may be represented onthe Board by more than one Director elected to the Board (either a municipal elected official or amunicipal employee) except in the case where the Director is an appointed Director as set out inSection 3.4 b) ii), or the City of Toronto (Section 3.4 c).

May 09, 2018 Page 6 of 8

5

NOMINATION FORM 2018 – 2020 AMO Board of Directors

• It is the responsibility of the person nominated to file a complete and accurateNomination Form.

• Nominations will be accepted no later than 12:00 noon Monday, June 25, 2018.• Council Resolution of support must be attached, and must specify the Board Office

position.

Send completed forms to:

Pat Vanini, Executive Director Association of Municipalities of Ontario 200 University Avenue, Suite 801 Toronto, ON M5H 3C6 Email: [email protected] Fax: 416-971-6191

Please type or print clearly:

Nominee’s Name, as it is to appear on the ballot

Nominee’s Municipal Position Title

Nominee’s Municipality

Address

Municipality and Postal Code

Nominee’s Email address and phone number

May 09, 2018 Page 7 of 8


6

Nominated for the Office of (check one only):

President

Secretary-Treasurer

Director County Caucus

Director Large Urban Caucus

Director Northern Caucus

Director Regional & Single Tier Caucus

Director Rural Caucus

Director Small Urban Caucus

________________________________________________

A Council Resolution confirming Board Office Nomination and Council support for the Nomination is ATTACHED

Consent of Nominee and Statement of Qualification:

I, the Nominee mentioned in this Nomination Form do hereby consent to such Nomination and declare that I am qualified to be elected and to hold the office for which I am nominated.

Signature of Nominee and date

Certificate of AMO’s Chief Returning Officer:

I, Peter Fay, the Chief Returning Officer, appointed by the Association of Municipalities of Ontario, to officiate over these elections, do hereby certify that I have examined the Nomination Form of the aforementioned Nominee filed with me and am satisfied that such Nominee is qualified to be nominated to the office indicated above.

Signature of Chief Returning Officer and date

Date Nomination Form received in AMO Office

May 09, 2018 Page 8 of 8

Board of Directors Meeting Highlights

Held on April 19, 2018 at 5:00 PM at the MRF Board Room

Thinking About Ontario’s Breakneck Waste Shift

Waste management in Ontario is going through a tectonic shift as a result of the Waste-Free Ontario Act, 2016 (WFOA), which incorporates two separate acts: The Waste Diversion Transition Act and The Resource Recovery and Circular Economy Act (RRCEA). This is a very ambitious plan for the Ontario Ministry of the Environment and Climate Change (MOECC). It’s moving along at breakneck speed and everyone in the business is very happy to now see a clear direction and action plan. A separate document - Strategy for a Waste-Free Ontario: Building the Circular Economy - lays out the framework for the elements of both transitioning to an individual producer responsibility (IPR) system for managing and paying for the management of products in the waste stream. It’s designed to identify producers, as well as a way for Ontario to move towards a circular economy and reduce waste. Both acts will have a significant impact on how waste is managed in Ontario over the short, medium and long term, and the impacts on municipalities, as well as producers, and likely consumers, should be profound. Under the Waste Diversion Transition Act, four programs (Blue Box, Waste Electronics and Electrical Equipment, tires and Municipal Hazardous or Special Waste) will be transitioned from the Waste Diversion Act (WDA) to the RRCEA over time. When fully transitioned, the existing IFOs (industry funding organizations) will be wound up, and the programs will be managed by one or more PROs (producer responsibility organizations). One of the objectives of the WFOA was to introduce competition into the stewardship/EPR marketplace in Ontario. Under the WDA stewards and producers had to join the IFO (industry funding organization) designated in the legislation. Many producers did not like the lack of choice for their service provider in a business which is getting more expensive for them. It is hoped that introducing competition and choice into the Ontario marketplace will resolve this concern over time. Transitioning the Municipal Hazardous and Solid Waste (MHSW) program mostly involves primary batteries and a few other materials. Paint, the biggest part of the MHSW Phase 1 program under the Waste Diversion Act (WDA) is managed under an ISP (industry stewardship plan), which will remain in place under grandfathering provisions in the Waste-Free Ontario Act. While municipalities have had some role in management of Waste Electronics and Electrical Equipment (WEEE), tires and MSHW, the program with by far the biggest impact on municipalities in Ontario on a go forward basis will be what happens to the Blue Box program. A joint agreement between Stewardship Ontario (SO) and the Association of Municipalities of Ontario was announced in summer 2017 to move Blue Box contracts over a 5-10 year period (depending on contract expiry dates), to Stewardship Ontario through an amendment to the Blue Box Plan under the WDA. On Feb. 15, both Stewardship Ontario and the Resource Productivity and Recovery Authority announced that a proposal for an amended Blue Box Plan would not be submitted to MOECC, and that Ontario municipalities and SO would continue to work together to find an acceptable long-term arrangement for the Blue Box program. Since 2004, producers of printed paper and packaging in Ontario have paid about half of the Blue Box programs annual costs. The relationship between municipalities and SO has not been perfect, and a disagreement over funding lead to an arbitration in

May 09, 2018 Page 1 of 15

2014. The costs of the Blue Box program have increased over time for many reasons, including a changing mix of materials and less newspaper in the Blue Box. Blue Box program concerns that need to be worked out through the transition, as well in new regulations, include: longer-term service standards that will be imposed across Ontario as a condition of funding collection programs; diversion targets to be reached; acceptable contamination rates; materials included in the standard provincial list of materials to be funded in the future Blue Box program; the municipal role in processing (likely to transition to stewards/producers over time, like in B.C.), and many others. The wind-up letters for the tires and WEEE programs have been sent by MOECC to the current IFOs managing these programs. The tire program will transition to full IPR on Jan. 1, 2019, with the transition of the WEEE program scheduled for July 1, 2020. These programs will be run by competitive PROs (producer responsibility organizations). It is anticipated that high diversion targets will be set for these materials and they will no longer be disposed of in the residual Ontario waste stream if the programs are successful, thus lowering the demand for landfill and other disposal over time. The Strategy that accompanies the Act lays out an ambitious agenda. The most significant are: A food and organic waste action plan aimed at reducing food waste production in the first place, and then directing food waste to its highest and best use; A food waste and organic waste ban at disposal sites, likely starting with larger communities and landfills (most of Ontario’s waste is landfilled) and other disposal sites, and progressively being expanded to cover the whole province. A number of studies are underway on different aspects of the food waste ban at this time; Designating regulations for a larger list of materials (the list in the Strategy includes mattresses, carpets, furniture, textiles, paper products and packaging, batteries, tires, etc.) meaning that over time they will be removed from the waste stream, and the cost of managing these materials will be absorbed by producers and stewards; Disposal bans on a list of materials designated under IPR regulations (WEEE such as household appliances, power tools, lighting, electronics, etc. mattresses, carpets, furniture, textiles, paper products and packaging, batteries, tires, etc.)

May 09, 2018 Page 2 of 15

Wendy Ren Moving On

Wendy Ren has accepted a new position at the Ministry and Infrastructure as the Director of Infrastructure Policy and Planning, we will be very sad to see her leave. Wendy started her new role at MOI on April 4 and her last day at MOECC was April 3. Wendy was the lead of the Resource and Recovery Policy Branch over the past 4 years as the Director of the Branch. Wendy has been a very integral part of the resource recovery transformation initiative within Ontario having shepherded the Waste Free Ontario Act and Strategy, implementation of the Waste-Free Ontario Framework including first producer responsibility regulation for tires, Food and Organics Framework and regulation for administrative penalties. Before her role as Director of RRPB, Wendy served as a Manager for the former Land Water and Policy Branch and worked on cross cutting files including brownfields reform, the Great Lakes Protection Act, the Lake Simcoe Protection Plan, and played a key role in a number of provincial initiatives including the Provincial Policy Statement, Growth Plans and the Places to Grow Act. Wendy has forged very strong working relationships with her colleagues and other stakeholders in her time here at MOECC and will be missed by everyone. Managers within the section have agreed to serve as Acting Director on a rotational basis until the process to fill Wendy's position on a permanent basis is complete. John Armiento has kindly agreed to take the first rotation as Acting Director until May 11th.

Amendment to Regulation 344/90 (Disposable Containers for Milk)

After considering input received from stakeholders on the proposed amendment to Regulation 344 (Disposable Containers for Milk) under the Environmental Protection Act, 1990, a decision was made to implement the amendment. The amending regulation was filed on April 6, 2018 and is now in effect. To view the regulation, please visit the Environmental Registry (link: https://ero.ontario.ca/notice/013-2059). The amendment to Regulation 344 provides options for milk producers to use containers that are widely accepted in recycling programs or are managed through a deposit return program. This will provide flexibility to milk producers while still protecting the environment. In Ontario, the packaging of fluid milk is regulated under R.R.O. 1990, Regulation 344 (Disposable Containers for Milk), which has been in effect for decades and predates the establishment of the Blue Box program across the Province. Under this Regulation, milk containers require a deposit to be charged unless they are refillable glass containers, plastic film pouches, laminated containers (not greater than 1 litre), coated paper containers, or any disposable container with a capacity less than 1 pint.

City Of London Mulls Natural Gas For Waste Fleet

Ontario’s City of London is joining the province to split the $1.3-million cost of changing its waste management fleet to natural gas as part of an Ontario-wide greenhouse gas challenge. London’s waste vehicles are currently travelling more than 15,000 kilometres every year using diesel fuel. City council recently discussed a transfer payment agreement from the Ontario Municipal Greenhouse Gas (GHG) Challenge Fund under its fuel-switching component. The city is working with Union Gas to cut a fuel deal and decide on an appropriate refuelling location. “We are also actively engaged with the City of London to establish a CNG program for their fleets in London,” Union Gas stated in a report to city council. “CNG as a transportation fuel achieves a minimum reduction of 15% lower CO2 than gasoline or diesel fuels with affordable, return-to-base refuelling options.”

May 09, 2018 Page 3 of 15

Your Lifestyle Is Making Blue Box Recycling Unsustainable

Do you read your news online? Enjoy takeout? Live in an apartment? Our changing lifestyles over the past few decades have dramatically altered the types of materials we put in blue bins. And that's led to flatlining recycling rates and ballooning costs for municipalities across Canada that are struggling to cope with the changes. "It's a really a perfect storm of crazy stuff going on that means that the blue box has huge challenges that it did not have 10 years ago," says Maria Kelleher, principal of Toronto-based Kelleher Environmental, a consulting firm specializing in waste reduction and recycling research, strategy and program design. The problem is that we're now throwing out a huge variety of new types of packaging — mostly plastics, sometimes glued to other materials like metals — that recycling programs were never meant to deal with. Meanwhile, the materials that they were designed to collect, sort and resell make up a shrinking proportion of what comes in. Newspaper, for example, used to be the backbone of the recycling program, Kelleher says, "because it's easy to recycle and it's worth a good bit of money." Now, it's being replaced with plastics, which are typically more difficult and expensive to collect, sort and recycle, and worth less money when they can actually be resold. This problem, dubbed "the evolving ton," threatens to make many blue box programs unsustainable.

May 09, 2018 Page 4 of 15

Making things even more challenging, China, the world's biggest importer of recyclables, closed its doors in January to all but the cleanest and purest recyclable materials from places like Canada. Some municipalities like Halifax are resorting to burning their recyclable plastics or burying them in landfills. Kelleher says consumers' busy lifestyles have fuelled a growing appetite for takeout, ready-to-eat food, and small, individualized packages like coffee pods — typically packaged in plastic. Because of the way recycling plants are designed, many small items are harder to sort than fewer large items. Lighter materials, like plastic, are also less efficient to process because materials are sold by the tonne but the capacity of trucks and processing plants is limited by volume. And recyclables can't be compacted like garbage because that makes sorting too challenging. The consequences of all these changes are ballooning costs and flatlining or even declining recycling rates in many cities. In Ontario, the cost of recycling has more than doubled since 2002, while recycling rates have barely budged, says Calvin Lakhan, a post-doctoral researcher in waste management at York University in Toronto. He says jurisdictions across Canada, Europe and the U.S. have the same problems. A further complication is that many newer types of plastic packaging, such as the resealable flexible pouches used to package frozen vegetables and baby food, for example, aren't recyclable in conventional plants but often find their way into blue bins. That's contributed to another big problem: Growing levels of contamination. Non-recyclable materials ranging from some types of plastic packaging to globs of peanut butter are finding their way into blue bins, further hiking costs, complicating logistics and making it harder to sell the material so it can be turned into new products and offset the cost of recycling. Toronto's recycling contamination rate has soared to an average of about 25 per cent in recent years. Jim McKay, the city's general manager of solid waste management services, says every percentage point increase in contamination costs an extra $600,000 to $1 million a year. That's largely because it requires extra time and labour to collect contaminated material and dispose of it in the landfill. Part of the problem is that household sizes are shrinking and more and more people are living in apartment and condo buildings in cities like Toronto. Many buildings require residents to go all the way downstairs and outside to empty and sort their recycling into common bins. That discourages recycling and increases the likelihood that a bin will be contaminated. But the biggest factor might be that most people aren't clear on what's recyclable — something that varies from community to community and is constantly changing. So what to do? Obviously, the onus can't be on the public to adapt their lifestyles to suit the recycling system. So it's governments and recycling systems that are going to have to adapt. The most obvious solution is technology. Deploying new technology at plants that process recycling can both:

1. Clean up contamination so the recovered materials are pure enough to sell to both domestic markets and importers like China that have raised their standards.

2. Adapt to new kinds of packaging. Of course, cutting-edge recycling technology doesn't come cheap, especially at a time when recycling costs per tonne are rising. That means municipalities need to look for creative solutions for funding recycling programs.

May 09, 2018 Page 5 of 15

The “New” Economics of Recycling

This message is particularly poignant because 50 years ago only two cities, San Francisco and Madison, Wis., had curbside recycling programs. Both collected newspapers put in paper bags on garbage collection day. The newspapers were placed in racks underneath the truck’s waste compaction unit. Madison’s program was brand new, and I’m not sure when San Francisco’s started. Both programs faced the same market fluctuations we are facing today. Prices were high when demand for old newspapers was high and low when the demand was low. This reality has not changed for the last 50 years. I don’t know how many times recycling markets have gone up and down in the last five decades, but I remember that when I started at the U.S. Environmental Protection Agency (EPA) in the summer of 1976, prices were slumping, and the 100 or so curbside recycling programs were grappling with lousy markets along with the rest of the paper recycling industry. In 1987, the garbage barge radically changed recycling. The Flying Dutchman of Trash launched thousands of local recycling programs. Those new programs promptly swamped recycling markets, creating probably the worst pricing collapse the recycling industry has experienced. However, manufacturers saw opportunity in the surge of new raw materials. Newspaper deinking mills were built to handle this new material, as were a number of mills that produced deinked paper fibers for other uses. Plastic recycling markets also grew in response. Since then, we have seen five market slides and four rebounds. Three were caused by a downturn in the overall economy. The price collapse in response to the closure of factories for the Beijing Olympics in the summer of 2008 was different because it was exacerbated by the Great Recession. Nonetheless, a year later, paper recycling prices were slightly higher than a year before. As had happened after previous price collapses, we quickly forgot that recyclables are commodities with fluctuating values. Instead, we moved forward as if nothing had happened, and we had no future worries about markets. Granted, our current market doldrums are unique. This time they are caused by an artificial imbalance in supply and demand caused by the decision of the Chinese government to establish specifications for imported recyclables. These new specifications, with a limit of 0.5 percent contamination, will be particularly challenging for American, Canadian and European mixed paper and mixed plastics recyclers. A different problem faces corrugated boxes. They constitute more than half of the recyclable paper China imports because of their long, strong fibers. They are also a far cleaner grade than mixed paper, especially corrugated boxes from commercial accounts. Yet, uncertainty over inspection procedures is causing problems. Paper recyclers are understandably reluctant to ship bales of old corrugated cardboard (OCC) until they know that inspections will be consistent and predictable. Recycled paper and plastic markets will face turbulence for at least the next 12 months. However, just like in the early 1990s, markets will adjust. E-commerce has increased the amount of brown paper in the residential mixed paper stream. Some mills will change their stock preparation systems to mine this material. A new paperboard mill will be built in Ohio with mixed paper as a primary feedstock. Two companies have already announced plans to grind and pelletize mixed plastics and ship the pellets to China. Will we learn anything from this latest price collapse, or will we once again run around like chickens without our heads when the next one happens? Clearly, we need to learn how to provide buffers from down markets and opportunities from up markets and start applying those solutions. Casella Waste Systems’ monthly Sustainability/Recycling Adjustment that it charges commercial and residential contract accounts is one promising option. Whatever the solution is, let’s learn from our mistakes, not repeat them. Chaz Miller is a longtime veteran of the waste and recycling industry. He can be reached at [email protected].

May 09, 2018 Page 6 of 15

Canada's Environment Minister Wants To Make Plastic Waste A Global Issue

Canada's minister of environment and climate change, Catherine McKenna, recently offered more details on plans to use the June G7 Summit in Quebec as a platform to advance the country's plastic waste reduction agenda. "We are looking at a zero-plastics-waste charter," she said, as reported by CBC News. "We could build on goals like having 100% reusable, recyclable or compostable packaging." McKenna cited recent sustainability discussions from big companies such as Unilever and Coca-Cola as a sign that momentum was building. Canada hopes its own action on plastic microbeads can be a model for other countries to follow, and that this can spread to the broader group of G20 countries. The comments were met with support — and a dose of skepticism — in the Canadian media. Both CTV News and the Toronto Star ran pieces calling on the national government to lead more by example on the issue. Opportunities for further action by provincial governments, such as container redemption programs, were also highlighted.

Prime Minister Justin Trudeau first mentioned Canada's plastics agenda earlier this year, and it fits into the broader global conversation being driven by the European Union. The topic has received ongoing attention from the United Nations, Ellen MacArthur Foundation and many others in recent years. The 2017 G7 Summit also included a workshop on marine litter, which came out of an action plan signed at the 2015 G7 Summit in Germany. This marine litter focus has led to numerous investments by Closed Loop Partners, The Ocean Cleanup and others in an attempt to reverse course on ocean pollution. It has become increasingly popular for government officials to set bold goals around plastic, as seen with Canada and the U.K. The U.S. Environmental Protection Agency has also said marine plastic is still an active priority. Translating those ideas into results is often more complicated. For example, around the time Trudeau was talking up this environmental agenda in Davos the national government was approving a $35 million grant for plastics manufacturing. While this may signal hypocrisy to environmental groups, it also represents the intricacies around plastics reduction or recycling. Barring a major shift in modern society, plastic will continue to play a role. Some consensus is building around limiting single-use items such as bags or straws. Containers or packaging can be addressed through extended producer responsibility or redemption programs. The role of multinational packaging manufacturers, and recycling service providers, adds another layer to the discussion. All of this makes for a topic that is perfect for a global summit in theory, but remains a national and local issue in practice.

May 09, 2018 Page 7 of 15

Taiwan Announces Ban on All Plastic Bags, Straws, and Utensils

All single-use plastic must be phased out by 2030. Ordering take-out, picking up groceries, buying a soft drink — these are all activities that will change over the next decade in Taiwan when the island nation imposes a blanket ban on single-use plastic bags, straws, and cups, according to the Hong Kong Free Press. It will be one of the farthest-reaching bans on plastic in the world, and it demonstrates the momentum of the anti-plastic movement as the scale of environmental harm caused by the substance is fully realized. Taiwan’s ban will be phased in over time and builds on existing regulations like an expanded recycling program and extra charges for plastic bags, according to the science website Phys. The first part of the regulation includes banning chain restaurants from giving straws to customers in 2019, and then an overall ban on straws in dining outlets by 2020. Retail stores will be charged for providing free plastic bags, disposable food containers, and utensils in 2020 and additional fees will be added in 2025. These measures will culminate in a flat-out ban on single-use bags, utensils, straws, and containers by 2030, Hong Kong Free Press reports. Taiwan’s announcement is in response to the scale of plastic pollution. Globally, around 380 million metric tons of plastic are being created annually. Meanwhile, an estimated 8 million metric tons of plastic enter the oceans each year, which is like emptying a garbage truck of plastic into an ocean every minute. The announcement is also part of a larger movement against plastic in the world as governments realize that the convenience of plastic is not worth the harm it causes. The UN recently proposed a global ban on plastic pollution entering the oceans; Canada is planning to introduce a similar proposal at the G7 gathering later this year; and a range of local, state, and federal governments are enacting targeted and sweeping bans on plastic use. Each day, US citizens use about 500 million straws, according to Eco-Cycle. Considering the US accounts for just 4.4% of the global population, the global number of straws used daily is probably much higher. Almost none of these straws can be recycled because they’re generally made from single-use plastic and are so flimsy that they can’t endure the recycling process. So businesses, cities, and even countries are getting rid of them.

May 09, 2018 Page 8 of 15

Plastic Bags No Longer Accepted Into Saskatoon Recycling Bins

As of April 1, Saskatoon residents are no longer allowed to recycle plastic bags into the city's blue bins. Along with plastic shopping bags, the new rule applies to saran wrap, bread bags and plastic food packaging. City council voted in favour of Loraas Recycle and Cosmopolitan Industries, the two companies responsible for city recycling, removing plastic bags from the blue bin program. The companies said they could no longer find a market to buy the low-grade plastic. Naomi Mahilewicz, with the Saskatchewan Waste Reduction Council, said the change will come as a wake up call to some residents. Mahilewicz urges shoppers to use reusable bags at the grocery store. She said her personal favourite are those made of nylon, which are more durable than cloth. For produce and some bulk items, Mahilewicz said she uses clear mesh bags. She also suggests washable zippered pouches that can replace ziploc bags in your lunch box. When it comes to the widespread use of plastic bags, Mahilewicz said it's up to consumers to make a push for change. She suggests talking to stores about not offering them and complaining to companies that do. Mahilewicz said a full-on plastic bag ban is not likely in Saskatoon yet because they don't make up the majority of what's in the garbage. She said the City of Saskatoon is more likely to target improvements to organic waste disposal and composting. "That is such a huge volume of what we throw out and so easy to divert that I think we'll see them picking some of the more lower hanging fruit first," she said. "And then eventually as those start to change and we all have curbside composting, they're going to start moving away from some of those smaller things like plastic straws, plastic bags and some of those single-use plastic items." If you want to get rid of some of the plastic shopping bags you have lying around, you can take them to food banks, daycares or preschools, which have a number of uses for them. Or, they can always be used for picking up dog poop.

May 09, 2018 Page 9 of 15

New Materials; New Recovery Methods

Some packaging materials simply may not belong in the traditional blue box either now or perhaps ever. For other newer types of plastic packaging, it may be that recycling technology just needs time to catch up. And for still others, maybe a completely different approach is what’s needed. The success of polystyrene foam depots in Quebec, and plastic bag take-back programs at retail outlets demonstrate that there's no single, 'best' answer for waste diversion, coast to coast. “Flexible” packaging - such as chip bags, juice pouches, standup pouches - and smaller packages like pudding cups are all used by consumer product manufacturers for an important reason: they keep products fresh and safe while at the same time, reducing packaging and contributing to lower greenhouse gas emissions throughout the whole product lifecycle. But these packages can challenge traditional recycling programs for three key reasons: 1. Materials laminated together can be difficult to separate for recycling. 2. Some items are in small sizes and volumes that are difficult to separate for recovery. 3. Evolving end markets and technologies often take time to catch up with newer, innovative materials, packaging and products that provide substantial environmental and economic benefits. This raises an important question: what other ways are there to enhance diversion of challenging packages - either as short or longer-term solutions? The Hefty® EnergyBag™ program is an innovative way of 'thinking outside the box' and applying new recovery solutions that address packaging end-of-life challenges. Pilot and full-scale programs in US communities show the Hefty® EnergyBag™ can divert impressive amounts of material that challenge the traditional blue box system. To date, over 44,500 orange bags have been collected, representing approximately 25 tons of non-recycled plastics being diverted from landfills. In the Hefty® EnergyBag™ programs, consumers purchase distinguishable, branded orange plastic bags for used plastics that wouldn't usually be accepted in their blue boxes. This could include flexible plastics, like chip bags, frozen fruit and vegetable bags, microwave pouches, plastic dishware, straws, foam clamshells utensils, toothpaste tubes, packaging peanuts and much more. When the bags are full, consumers place them in recycling carts or bins and set them at the curb to be picked up on their regular recycling day.

May 09, 2018 Page 10 of 15

When they arrive at the MRF, the Hefty® EnergyBag™ orange bags are pulled off at the front-end of the MRF, baled and shipped to an approved energy recovery facility to be converted into new energy sources, such as diesel fuel. The orange bags are never opened and do not go through the MRF. The goal is that in future these technologies can be used to create a feedstock to make new plastic resins – providing for a circular economy model of using plastics to make new plastics. Removing these loose, non-recycled plastics from the MRF stream improves the quality of the regular recyclables. Through detailed composition audits, the Hefty® EnergyBag™ program has found that the quality of materials collected is acceptable for use in energy recovery technologies, contributing to a significant decrease in the amount of material sent to landfill. Participating communities have identified positive impacts of the Hefty® EnergyBag™ program, among them:

• convenience and consistency for consumers (85% of one pilot's participants indicated they would continue to participate following completion of the pilot program)

• increased waste diversion with no significant changes to infrastructure and processes

• significant reduction in contamination of materials in the MRF

• overall cost reduction due to fewer materials sent to landfill

• recovery end markets gain, clean feedstocks from the separated materials

• sources of energy-rich feedstocks for energy recovery facilities Although we all acknowledge it's best to maximize how much we recycle, for those plastics that aren’t recycled diversion, programs like the Hefty® EnergyBag™ program can help to increase the overall diversion rate of these materials. Alternative and additional opportunities can support traditional diversion programs to help achieve sustainable materials management (SMM) and low carbon circular economy objectives. The Hefty® EnergyBag™ program may not be right for every community. However, alternative approaches like this, which complement recycling programs, are valuable for the additional diversion that can be achieved and also, for the avenues of inquiry that enhance conversations about how to manage the changing material mix and promote greater waste diversion. In addition, they will help support the development of energy recovery technologies (such as pyrolysis), which will get us to the closed-loop ‘from plastics to plastics’ circular model we are all striving for.

May 09, 2018 Page 11 of 15

Nespresso Joins BC In Recycling Coffee Pods

This initiative is part of global Nespresso program The Positive Cup. Nespresso, in partnership with Recycle BC, has launched its Green Bag pilot project in Vancouver to make it easier for people to recycle the popular coffee pods. As of March 2018, City of Vancouver residents can put their used capsules in a sealed recyclable Green Bag provided at no extra cost by Nespresso Canada when coffee capsules are purchased. The bag is placed into the recycling bin. The aluminum is repurposed and the coffee grounds are transformed into a high-quality compost used by farms at no additional cost to citizens or municipalities. Once collected by Recycle BC, the capsules are shipped to a partner where they undergo a technological process -- the first of its kind in Canada -- which mechanically separates the coffee grounds from the aluminum. The aluminum is repurposed and the coffee grounds are transformed into a high-quality compost used by farms at no additional cost to citizens or municipalities, according to a news release by the City. This initiative is part of global Nespresso program The Positive Cup. “As the only program in North America that is financed by the companies that produce packaging and paper products to operate the recycling system from collection through to processing the materials, we have a unique opportunity to collaborate with companies like Nespresso,” says Allen Langdon, Recycle BC Managing Director, in a statement. “Through these partnerships, we can make recycling easier for residents, ensuring more material is recycled and less goes towards landfill.” This is the second phase of the pilot project, following its implementation in Coquitlam and Anmore in May 2017.

May 09, 2018 Page 12 of 15

U.S. Moves Closer To Tougher Driver Training Standards

Entry-level truck drivers in the U.S. will face newly mandated training requirements as of Feb. 7, 2020. But the new training standards set out by the U.S. Federal Motor Carrier Safety Administration (FMCSA) will not define the minimum number of in-class or in-cab training hours, as previously advocated for, says Laura McMillan, vice-president of training and development at Instructional Technologies. Instead, a registered carrier will need to certify that someone with a Class A or B learner’s permit is “proficient” in 31 topics before a road test can be scheduled. Those with a learner’s permit before Feb. 7, 2020 will be allowed to complete their licensing under the old requirements, as long as it’s done before the permit expires. McMillan, who is also a member of the FMCSA’s advisory committee to suggest and approve the new regulations, offered an update on the tightening training regime during the Truckload Carriers Association’s annual convention. The 31 topics are divided into 12 areas, with each area given a recommended method of delivery and a placement in training curriculum. However, there are few hard and fast rules for how the curriculum should be delivered. Categories will include basic operation, safe operation, advanced operating practices, operating systems, reporting malfunctions, and non-vehicle activities for the classroom portion, skills on the range and on the road, and specialized information for those dealing with hazardous materials, school buses, or passengers. Trainees will be able to take the in-classroom portion of the training in a traditional classroom, online, or through a combination of both. And the in-cab portion of the training can be done, in part, through the use of simulators to help trainees experience extreme weather and driving conditions, but it is not necessary to include a simulator component. While the FMCSA regulations say driver trainees must be “proficient” in each of the 31 topics, there is no definition of what “proficient” means in the regulation. McMillan says the generally accepted definition of “proficient” is when the student can complete a task successfully eight times out of 10, but the definition is still subjective. While the FMCSA committee originally wanted there to be a required number of in-class and in-cab hours, much like Ontario’s 103.5 mandated hours, McMillan says the feedback the group received from the industry pressured the committee to change its mind and go with the current system instead. Those in the U.S. military who currently use their vehicle endorsements and training to transition into trucking will still be able to obtain a commercial driver license through that program if their state allows it. All training schools will have to be registered with the FMCSA — even if they belong to a group or association that maintains elevated curriculum standards. However, there is currently no active q Schools will also be subject to periodic reviews and audits by the FMCSA once they are registered, but there is currently no timeline or mechanism for how that will be carried out, either. Once the training is completed, training schools will have to submit their certification and have it received before a trainee is allowed to schedule their final road test. This closes a current loophole that allows tests to be completed and passed before evidence of training is submitted. That system will be an online, automated portal, which has yet to be designed. McMillan says she expects the developments that still need to be made will come with a “reasonable buffer” period for schools and drivers, and will be rolled out hopefully over the next year.

May 09, 2018 Page 13 of 15

105.7 104.9 103.1

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May 09, 2018 Page 14 of 15

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May 09, 2018 Page 15 of 15

February 22, 2018

UTRCA 71ST ANNUAL GENERAL MEETING *AMENDED

In conformity with the Conservation Authorities Act, RSO, 1990 Chapter 27, Regulation 17(1), the

Chair of the Upper Thames River Conservation Authority has designated the 2018 Annual General

Meeting to be held as follows:

DATE: THURSDAY, FEBRUARY 22, 2018

TIME: 9:30 A.M. – 12:25 P.M.

LOCATION: WATERSHED CONSERVATION CENTRE

BOARDROOM

AGENDA: TIME

* February 2018 Flood Presentation (T.Hollingsworth)

1. Approval of Agenda 9:30am

2. Declaration of Conflicts of Interest

3. Review and Approval of the Factual Certificate

(Certificate attached)

4. Minutes of the Previous Meeting

- Tuesday, January 23, 2018

5. Business Arising from the Previous Minutes

6. Business for Approval 9:35am

(a) Presentation & Approval of 2018 Draft Budgets

(Report attached)(I.Wilcox/C.Saracino)

(Doc: # 119404)(20 minutes)

(b) 2018 Capital Water and Erosion Control Infrastructure

(WECI) Projects (Report attached)

(C.Tasker/D.Charles)(Doc: FC # 1237)(5 minutes)

(c) Board of Directors Policy Handbook Updates

(Report attached)(Doc: Admin #2769)

(I.Wilcox)(5 minutes)

(d) 2017 Health and Safety Summary

(Report attached)(C.Ramsey)

May 09, 2018 Page 1 of 12

(Doc: #119364)(5 minutes)

7. Business for Information 10:10am

(a) Targets Progress Report

(Report attached)(I.Wilcox)

(Doc: #119414)(10 minutes)

(b) February Your Information Report

8. Other Business 10:20am

The Authority Staff and Guests will be invited to join the meeting.

10:25am

*****15 Minute Break*****

9. Welcome (10 minutes) 10:45am

10. Guest Speaker: Conservation Ontario GM Kim Gavine 10:55am

Conservation Authorities Act (20 minutes)

11. Watershed Report Card Launch (20 minutes) 11:15am

(C.Quinlan)

12. Targets Progress Report 11:35am

(I.Wilcox)(10 minutes)

13. Moyer/Lothian Flats Property Update (20 minutes) 11:45am

(S.Gillingwater)

14. 25th

Earth Day Event (5 minutes) 12:05pm

(K.Pugh)

15. Presentation of Service Awards 12:10pm

16. Chair and General Manager’s Concluding Remarks 12:20pm

17. Adjournment 12:25pm

LUNCH TO FOLLOW AT 12:40 PM

_________________________

Ian Wilcox, General Manager

c.c. Chair and Members of the Board of Directors

All UTRCA Staff

May 09, 2018 Page 2 of 12

1

MINUTES

BOARD OF DIRECTORS’ MEETING

TUESDAY, JANUARY 23, 2018

Members Present:

Regrets:

T.Birtch

M.Blackie

M.Blosh

R.Chowen

A.Hopkins

T.Jackson

S.Levin

B.Petrie

N.Manning

H.McDermid

A.Murray

J.Salter

G.Way

S.McCall-Hanlon

M.Ryan

Solicitor:

Staff:

G.Inglis

T.Annett

J.Enright

B.Glasman

C.Harrington

T.Hollingsworth

C.Saracino

A.Shivas

M.Snowsell

C.Tasker

I.Wilcox

K.Winfield

M.Blackie called the meeting to order and informed the Board that Nathalie Des Rosiers was

announced last week as the new Minister of Natural Resources and Forestry.

1. Approval of Agenda

G.Way moved – T.Jackson seconded:-

“RESOLVED that the UTRCA Board of Directors

approve the agenda as posted on the Member’s web-site.”

CARRIED.

2. Declaration of Conflicts of Interest

The Chair inquired whether the members had any conflicts of interest to declare relating to the

agenda. There were none.

3. Confirmation of Payment as Required Through Statutory Obligations

The Chair inquired whether the Authority has met its statutory obligations in the payment of the

Accounts Payable. The members were advised the Authority has met its statutory obligations.

May 09, 2018 Page 3 of 12

2

This will be the last time this statement is given at the opening of a Board meeting. As approved

by the Board in November 2017, starting in February the Factual Certificate will replace this

statement and be reviewed and accepted once a year.

4. Minutes of the Previous Meeting

November 28, 2017

M.Blosh moved – N.Manning seconded:-

“RESOLVED that the UTRCA Board of Directors approve

the Board of Directors’ minutes dated November 28, 2017

as posted on the Members’ web-site.”

CARRIED.

5. Business Arising from the Minutes

(a) Response to City of London Meeting Space Invitation

(Letter attached)

S.Levin moved – A.Hopkins seconded:-

“RESOLVED that the Board of Directors receive

the letter as presented.”

CARRIED.

6. Business for Approval

(a) Engagement of Investment Management Services from PH&N

(Report attached)

S.Levin presented the recommendation and informed the Board that the Committee received

three proposals. The Committee narrowed it down to two and invited both parties to come to the

WCC and give presentations. After hearing the presentations and a lengthy discussion, Phillips,

Hager & North Investment Funds Ltd. was chosen.

S.Levin added the following to the recommendation; Clause B: Both companies who provided

presentation to the Finance & Audit Committee are to be notified of the Board’s decision.

T.Jackson moved – J.Salter seconded:

“RESOLVED that the Board of Directors accept

the recommendation as presented in the report and

Clause B as outlined in the above minutes.”

CARRIED.

May 09, 2018 Page 4 of 12

3

(b) Tender Award – Wildwood Dam Valve

(Report attached)

Concerns were raised and discussed concerning the large variance between the estimate and the

actual cost. It was clarified that there is a Dam specific levy to be used for these types of

situations.

C.Tasker clarified that while all three dams have these valve type structures, they are all very

different and the other two will not require this type of maintenance. He went on to explain that

the cost is high due to the environmental controls needed to deal with the humidity and

temperature of the space. While there is no long term guarantee for the work, there will be long

term monitoring in place. At this time valve replacement was not considered, as there is still life

left in the current valves.

J.Salter moved – A.Murray seconded:

“RESOLVED that the Board of Directors accept

the recommendation as presented in the report.”

CARRIED.

(c) Fees Policy

(Report attached)

The draft Fees Policy presented is a starting point. It will be brought back when the Minister

approves the fees section of the new Conservation Authorities Act. Having a Policy will allow

for an annual review of the fees.

An omission was noted on Page 10. Staff will correct the error.

There was a discussion around cost recovery through fees. I.Wilcox reported that, with the

UTRCA’s current fees, cost recovered for plan review is most likely less than fifty percent. Staff

are hoping to get more Provincial direction on cost recovery in the upcoming fees section of the

new CA Act. Compared to the surrounding Conservation Authorities, the UTRCA’s fees are in

the middle, but overall there is no consistency across Ontario. Staff are hopeful the direction

from the Province will address this ongoing issue.

The Board agreed that the Policy needs more discussion, specifically around partners and

exemptions, and asked that it be brought back to this Board before November 2018 for approval,

whether Provincial direction has been given or not.

T.Birtch arrived at 9:47am

T.Jackson moved – R.Chowen seconded:

May 09, 2018 Page 5 of 12

4

T.Jackson moved – S.Levin seconded:

“RESOLVED that the motion be amended to include

the deadline of November 2018 for the final draft to be

reviewed by the Board.”

CARRIED.

“RESOLVED that the Board of Directors receive the draft

and direct staff to complete a final draft, to be presented

to the Board before November 2018.”

CARRIED.

7. Closed Session – In Camera

There being property and legal matters to discuss,

T.Jackson moved – H.McDermid seconded:-

“RESOLVED that the Board of Directors adjourn to

Closed Session – In Camera.”

CARRIED.

Progress Reported

(a) Matters Pertaining to Pittock Conservation Area

(Report attached)

Property matters relating to Pittock Conservation Area were discussed.

S.Levin moved – H.McDermid seconded:-


the report as detailed in the Closed Session minutes,

and receive the Minutes of the November 28, 2017

Closed Session meeting, as posted on the Member’s web-site.”

CARRIED.

8. Business for Information

(a) Administration and Enforcement – Section 28

(Report attached)

M.Blackie drew the Board’s attention to a few items listed in the report. Concerns and questions

were raised regarding the length of the requested drain cleanouts. Staff are currently drafting an

Enclosures Policy which will be presented to the Board when complete. Based on a request for

May 09, 2018 Page 6 of 12

5

further Board education on drain cleanouts, it was suggested that Board members attend the

annual Drainage conference in October that UTRCA staff regularly attend.

T.Birtch moved – M.Blosh seconded:-


the report as presented.”

CARRIED.

(b) Conservation Authorities Act Approval

(Report attached)

The new Conservation Authorities Act was approved in December. I.Wilcox directed attention

to the sections identified as ‘not yet enforced’ as outlined in the attached report. The Board was

advised that they will be involved with the revision of the Governance Policies, which must be

approved by December 12, 2018.

Kim Gavin, General Manager of Conservation Ontario, will be giving a presentation about the

changes to Act at the UTRCA Annual General Meeting in February.

G.Way moved – S.McCall-Hanlon seconded:-



CARRIED.

(c) Closure of Ontario Seeds Facility

(Report attached)

J.Enright outlined the events that lead to the attached letters. The decision to close the Ontario

Tree Seed Facility was made in August 2017 by the Province, without consultation with user

groups. The closure date is set for September 2018, but some efforts to dismantle operations

have begun. Numerous parties across the Province have voiced concerns.

J.Enright outlined, clarified, and gave his opinion regarding the letter of response the UTRCA

received from the Minister of Natural Resources and Forestry. There is serious concern that this

will impact the UTRCA’s Targets if staff do not have access to an adequate supply of

appropriate tree seed.

Board members encouraged each other to bring this to the attention of their Communities and

respective Municipal Councils. There was discussion around the roles of Conservation Ontario

and Forests Ontario in this matter. The Board expressed serious concerns around the closure of

this facility and discussed with staff the most appropriate action.

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S.Levin moved – R.Chowen seconded:-

“RESOLVED that the Board of Directors direct staff to

communicate with Conservation Ontario, and share with

them the Board's concerns regarding closure of the Ontario

Tree Seed Plant, and request their leadership in contacting

and working with the Province and appropriate partners to

retain or re-establish the Seed Plant.”

CARRIED.

(d) Harrington Dam Update

(Report attached)

C.Tasker presented his report to the Board and informed them the Master Plan process could take

anywhere from two to five years. Concerns were raised and discussed by the Board around the

length of time this new process may take, given the safety issues that prompted the original

Environmental Assessment (EA). Staff do not foresee any problems but will not lose sight of the

safety issues throughout the process. Once a plan is developed for the Master Plan process, staff

will have a more definite idea of the timeline and re-evaluate the dam safety review if necessary.

The Master Plan process was chosen because it has fewer constraints than the EA process, and

allows three parties to be at the table instead of just two. It also provides more latitude in scope

that will allow the concerns raised by the Harrington and Area Community Association to be

more fully addressed. The EA process has been paused and will most likely be resumed on the

completion of the Master Plan.

H.McDermid moved – N.Manning seconded:-



CARRIED.

(e) Draft Budget Municipal Feedback

(Report attached)

A letter received by the UTRCA from the Township of Perth South was presented to the Board

and was discussed as part of the Municipal Feedback report by I.Wilcox. Staff still have one

more Council meeting to attend and receive feedback from. This report will be completed and

presented to the Board again at the AGM.

The Board discussed the resolution presented in the letter from the Township of Perth South.

Staff clarified that while a Council resolution does not overcome the levying powers of the

UTRCA, it is a strong statement for the Board to take into consideration.

R.Chowen elaborated on the Thames Centre Council meeting he attended with I.Wilcox.

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S.Levin moved – S.McCall-Hanlon seconded:-



CARRIED.

9. January FYI

(Attached)

The attached report was presented to the members for their information.

10. Other Business

I.Wilcox informed the Board that the UTRCA received a generous and unexpected $2,000.00

donation from Columbia Sports Wear. The donation has been directed to the Species at Risk

program.

I.Wilcox reported that the UTRCA was approached by Ducks Unlimited to host their newest

wetland creation staff member in the WCC. Staff accepted the request and the arrangement will

being very soon. Board members expressed their support for this arrangement.

The Board was reminded of the 71st UTRCA Annual General Meeting taking place on Thursday,

February 22nd

. Similar to last year’s format, the meeting will be split, with business and the

Budget vote in the first half, followed by presentations from both staff and a guest speaker in the

second half. Kim Gavin, General Manager of Conservation Ontario will be the guest speaker

and will be discussing the changes to the Conservation Authorities Act. Staff presentations will

include the launch of the newest Watershed Report Cards, an update on the Moyer property, and

a Targets update.

11. Elections

(Report attached)

M.Blackie requested a motion to nominate Grant Inglis as Interim Chair for the purpose of

conducting the elections for Authority Chair and Vice-Chair for 2018.

T.Jackson moved – H.McDermid seconded:-



CARRIED.

T.Jackson moved – S.Levin seconded:-

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“RESOLVED that G.Inglis be nominated as

Interim Chair for the purpose of conducting the

elections for the Authority’s Chair and Vice-Chair

for 2018.”

CARRIED.

G.Inglis outlined the procedures for electing the Authority’s Chair and Vice-Chair as specified in

the Conservation Authorities Act and the UTRCA Board of Directors’ Policy Handbook.

(a) Chair

G.Inglis called for nominations for the position of Chair of the UTRCA Board of Directors for

2018.

T.Jackson nominated M.Blackie for the position of Chair of the UTRCA Board of Directors for

2018.

G.Inglis called twice more for further nominations.

There being no further nominations, nominations were closed.

G.Inglis inquired if the nominee would allow his name stand and if he would like to speak to the

nomination. M.Blackie stated he would allow his name to stand.

G.Inglis declared M.Blackie as Authority Chair for 2018.

(b) Vice-Chair

G.Inglis called for nominations for the position of Vice- Chair of the UTRCA Board of Directors

for 2018.

R.Chowen nominated N.Manning for the position of Vice-Chair of the UTRCA Board of

Directors for 2018.

G.Inglis called twice more for further nominations.


G.Inglis inquired if N.Manning would allow her name to stand. N.Manning stated she would

allow her name to stand. G.Inglis declared N.Maning as the Vice- Chair of the UTRCA Board of Directors for 2018.

G.Inglis congratulated the Chair and Vice-Chair, and relinquished the Chair to M.Blackie.

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(c) Hearings Committee

M.Blackie noted that traditionally the Hearings Committee consists of the Authority Chair, Vice-

Chair, past Chair and two additional Authority members, but as there is no past Chair, the 2018

Hearings Committee will consist of M.Blackie, N.Manning and three additional Board members.

The Chair called three times for nominations for three positions on the Hearings Committee.

H.McDermid nominated T.Jackson to be a member of the Hearings Committee for 2018.

M.Blosh nominated S.Levin to be a member of the Hearings Committee for 2018.

A.Hopkins nominated M.Blosh to be a member of the Hearings Committee for 2018.

All three nominees agreed to let their names stand for the positions on the Hearings Committee

for 2018.


M.Blackie confirmed the 2018 Hearings Committee will consist of the M.Blackie, N.Manning,

M.Blosh, T.Jackson, and S.Levin.

(d) Finance & Audit Committee

M.Blackie noted that the Finance & Audit Committee consists of the Authority Chair, and two to

four additional Authority members.

The Chair called three times for nominations for the positions on the Finance & Audit

Committee.

R.Chowen nominated N.Manning to be a member of the Finance & Audit Committee for 2018.

H.McDermid nominated T.Jackson to be a member of the Finance & Audit Committee for 2018.

T.Jackson nominated S.Levin to be a member of the Finance & Audit Committee for 2018.

All three nominees agreed to let their names stand for the positions on the Finance & Audit

Committee for 2018.


M.Blackie confirmed the 2018 Finance & Audit Committee will consist of the M.Blackie,

N.Manning, T.Jackson, and S.Levin.

12. Adjournment

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T.Jackson congratulated and thanked A.Hopkins and all those involved in the process that lead to

the decision to decommission Springbank Dam.

There being no further business, the meeting was adjourned at 11:17 a.m. on a motion by

T.Jackson.

Ian Wilcox M.Blackie, Authority Chair

General Manager

Att.

May 09, 2018 Page 12 of 12

2017 Annual Report

May 09, 2018 Page 1 of 42

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Table of Contents

Corporate Profile 3

Highlights 4

Regulatory Update 15

Property, Plant and Equipment 27

Employees 27

Operations 28

Service Area 30

Management’s Responsibility for Financial Reporting 31

Auditor’s Report 32

Statement of Financial Position 33

Statement of Fund Operations and Changes in Fund Balances 34

Statement of Cash Flow 35

Notes to the Financial Statements (December 31, 2017) 36

Membership 41

Corporate Directory 42

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Corporate Profile The Bluewater Recycling Association, located in Huron Industrial Park in the Municipality of South Huron, near Exeter, provides a wide variety of reliable, dependable, and affordable resource management based products and services. The Association is one of the largest multi-municipal resource management organizations in Canada, which provides integrated waste reduction and environmental services ranging from collection and processing to marketing superior quality products and services. The 83 people employed by the Association handle over 50,000 tonnes of material yearly, which represents a substantial portion of the overall waste stream. Although the Association's fleet of 43 vehicles collect most of the material, the Association also processes contractor-collected material.

"Our mission is to provide ethical, innovative, effective, quality resource management services. We will carry out our mission efficiently, safely, and in an environmentally responsible manner, ultimately enabling our members to meet their environmental commitments."

The logo depicts the Association’s acronym at the roots of a white oak tree strategically placed above our recognizable Bluewater wave. The white oak, native to the area, standing tall above the waters of Lake Huron is notorious for its stability and long life, which the Association mirrors. The root system of the oak is as dispersed as the branches above, reflecting the Association's unique relationship between its owners and customers. The roots of the oak tree flow into BRA, the acronym for the Bluewater Recycling Association, signifying that the Association is at the root of providing solutions to environmental issues. The letters are intertwined, representing the cooperative nature of the organization that involves more than 20 individual municipalities. The bold, stylish letters symbolize the strength, creativity, and proactiveness of the organization. The wave is representative of the blue water found on Lake Huron which most of our members have an opportunity to view regularly. Each colour used in the logo also carries special significance for the Association. Green is synonymous with the environment in general. Blue is representative of the blue water of Lake Huron and is a colour that is widely associated with recycling. White is representative of the cleanliness and purity of the environment which we strive to achieve. The Bluewater Recycling Association is much more than a recycling company, it’s

"Your Environmental Alternative"

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Highlights The last year can best be described as an exhilarating, roller coaster ride, aboard a high speed train zooming through a tunnel which we hope the light we see is the end of the tunnel and not the light of another fast approaching train. What should have been a relatively quiet year before a series of elections turned out to be a game to see how many different pieces of legislation could be put through before the election with each one of them having a serious impact on our operations, but we’ll talk more about that in the Regulatory Update portion of our report.

Bluewater Recycling Association Wins Green Leader Award The Bluewater Recycling Association was recognized by the Huron Manufacturing Association by winning their Green Leader Award. It was an honour to simply be

nominated for such an award. The win came as a surprise and our staff, from left to right, our controller Michelle, Mars Operations Coordinator Bonnie, and our Dispatcher Barb, were on hand to receive the award at the South Huron Recreation Centre.

The Huron Manufacturing Association is an inclusive partnership of industry and related businesses that drives economic growth and promotes manufacturing excellence in Huron County.

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Commodity Markets Lead All Industry Talks in 2017

Evolving Tonne The printed paper and packaging forming the contents of the “blue box” program continue to evolve, making it more difficult to manage, resulting in increased costs. Examples aren’t hard to find as Postmedia and Torstar announced the trade of 42 local newspaper titles, mainly in Ontario, and closed most of them, citing a lack of advertising revenue. In the meantime, The Globe and Mail chose to save about $1 million per year on newsprint as it cut the width of its printed product to 10 inches from the old 11 inches. Declines in newsprint are continuing to track for complete extinction in 2020.

Newspapers continue to decline as are most glass packaged goods. However, the rest of the stream is also changing. Our cardboard is getting smaller in size because of all the online shopping. The growing use of pouches is affecting the flow of materials in the facility. The increased use of paper shredders at home is also affecting our equipment as it tends to behave like glass.

Commodity Pricing Volume and price are the two key drivers in the waste business. After the Great Recession volumes started to improve in 2014, which increased operating costs and improved pricing. The last decade has experienced “anemic” gross domestic product (GDP) growth, and the Consumer Price Index (CPI), which had historically seen 4 percent per year growth, has only grown 2 percent per year for the last 15 years on average and only 1.6 percent per year since the Great Recession. The industry is seeing real headwinds with low GDP and low CPI. The impact of the housing market on the waste industry, is a “true barometer” of what is driving the industry.

No one has ever experienced what we are watching today in the industry, the slow gradual recovery in the housing cycle and an underlying consumer segment that is actually confident. Millennials are starting to buy houses--they may be smaller houses, but they are getting into the market. The new housing builds are generating commercial and construction waste and spurring commercial waste collection businesses.

National Sword China is the largest importer of recovered materials in the world, accounting for approximately 27% of global scrap imports. In July, China informed the World Trade Organization (WTO) that it would be imposing a ban on importing 24 types of scrap, including mixed paper and mixed plastics, as of December 2017. China’s ban, affects 2.9 million tons or $532 million (USD) of US exports for mixed paper and plastics. This is not the first time China has implemented a policy to curb the inflow of contaminated scrap. China’s first crackdown was in 2013 when it implemented its Green Fence Policy, which similarly targeted the importation of low grade paper and plastics. Also, beginning in 2017 China implemented the “National Sword 2017” policy to crack down on imports of scrap, specifically targeting low grade plastics.

Pricing for recycled commodities was steady through spring, but then China also did not issue import licenses to mills until much later in the year, making conditions even more challenging.

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If this is the new normal, then we are faced with a meaningful revenue hit. There is going to be a pause here and people are going to take a big deep breath and just wait and see how some of this plays out.

The recycling market has fluctuated for decades and this is no exception, but near term market forces are combining to put greater than usual pressure on commodity pricing in 2018 and beyond. For MRFs and municipalities, the key to weathering this storm is production of high quality bales. As in the past, MRFs producing reliable quality will typically find a home for their materials. Locking in to longer term agreements with end markets is also recommended to ensure access to limited domestic reprocessing capacity.

MRFs that are unable to address bale quality issues may need to seek reprocessing markets in developing countries, like Vietnam, South Korea and Malaysia. This alternative may be the most cost effective option to address quality issues from some MRFs, but will come at a cost. They can anticipate competing against large quantities of available American single stream material for the remaining available reprocessing capacity and without well established relationships and the associated risks of shipping overseas, can expect challenges. It is important, therefore, that municipalities continue to monitor their operations and material quality given the ever reducing tolerance for contamination anticipated in all markets.

Trade Wars The U.S. has a $350 billion trade deficit with China. There are gaps with trade with the E.U., Mexico and Canada. The North American Free Trade Agreement (NAFTA) sent middle-class jobs out of the U.S.. Renegotiating trade agreements can be significant.

Nothing Less Than Perfection In the meantime, the end markets are demanding increased quality standards from us. Most commodities had a 5% allowance for contamination built in however that standard is now being pushed to 0.5% contamination allowance. Yes, that is a purity rate 10 times more stringent than in the past.

In anticipation of the impact that changes in packaging had on our system, the Board commissioned a review of the efficiency of the Material Recovery Facility in 2016. As suspected, three pieces of equipment were underperforming as a result of the changes which affected the efficiency of the system. We promptly reviewed available technologies to rectify the situation and landed on a solution that was installed at the end of November. The $1.2 million upgrade could not have come at a better time as the commodity prices were crashing as a result China’s pressure in the marketplace.

A new cardboard separator designed to reduce down time and increase smaller cardboard recovery was installed. The newspaper screening technology was removed in favour of additional optical technology. This enabled us to target specific materials rather than rely on screen openings and friction to assume we have selected the right commodity. We currently have the only single stream facility in Ontario able to meet the new Chinese quality requirements. Although the MRF was shut down for 2 weeks to faciliate the installation of the upgrade, collection services remained uninterrupted.

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Pure Recycling Campaign To reflect the changes in the marketplace, the Association refocused its promotion and educational materials to emphasize materials that are recyclable with minimum contamination. In order to accomplish this, we launched our PURE campaign (Perfectly Usuable Recyclable Everytime) to remind our customers that not everything is acceptable in our program. First and foremost, it exists to recover Printed Paper and Packaging. Our users cannot simply “wishcycle” and simply place anything they think or wish was recyclable in the recycling bin. In too many instances some users actually believe that any plastics with a Mobius loop is recyclable and that all metal or paper products can simply be thrown in. This has never been the case and it is this type of behaviour that can jeopardize the entire program for others.

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Have You Been Tagged? In 2016, we completed the upgrade of our vehicle on board monitoring system for wheelie bins. The drivers have been flagging and taking pictures of non-compliant containers set out for collection ever since. This data has been invaluable in identifying habitual offenders.

In the summer of 2017, the Association took the initiative to target repeat offenders by visiting their containers prior to collection. If contamination was visible or found, then a red “Stop!” tag was left behind with instructions to communicate with the user that they were not following the recycling program rules. They needed to clean up their bin prior to servicing.

Where a bin was found in good condition, a green “Thank You” tag was left behind to encourage the user. In some cases where a driver empties the bin and finds abuse “hidden” at the bottom of the bin, a red “Oops!” tag has been left to warn the user that future contraventions will not be tolerated. The program has worked so well that we have now established a bin team with a full time inspector on staff.

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Driver Shortage Could Hit All Time High This Year Everyone in the trucking industry is feeling the driver shortage. It has been talked about for years but a variety of factors have delayed its impact on businesses until 2017. The American Trucking Associations projected the shortage to reach 50,000 by the end of 2017 and if current trends hold the shortage could grow to more than 174,000 by 2026.

Driver turnover at large truckload fleets, which hit an all time high of 130% in 2005, averaged 81% last year with the freight slowdown. But by the second half of this year, it was back up to 90%.

In the last half of 2017, trucks were hard to get because of the two major hurricanes, Irma and Harvey. Haulers choose to serve the lucrative emergency help contracts overs long term customers. As a result, anyone trying to ship anything had to be selective in what and when they were shipping. It is forcing thousands of shippers into a tough choice: postpone all but the most important deliveries, or pay dearly to jump to the front of the line.

Several factors have converged to overwhelm the trucking market. Freight volumes in December hit near-record levels for that time of year, on the back of a strengthening economy. Retailers are replenishing stocks after one of the strongest holiday sales seasons in recent years. Manufacturers are also shipping more cargo; in December, industrial production had the largest year-over-year gain since 2010, according to the Federal Reserve. What’s more, bad weather and a new federal safety rule that took effect in December have crimped the supply of available trucks. Diesel prices are near a three-year high, adding to transportation costs. The start of 2018 saw the introduction of Electronic Log Books as a requirement in the US. This resulted in many older drivers retiring rather than adapting to the new technology. Canada is expected to follow suit shortly. In Ontario, the driver licensing and renewal requirements changed making it more onerous to get and maintain a commercial driver’s license. We also have this impending cannabis law coming which could further impact the number of drivers available. Like anything else in short supply, quality is usually the next to suffer. A major hauler in the US is already experiencing the quality impact as they received 100,000 driver applications last year but only 2.7% met their quality requirements. The causes of the shortage include the demographics of the aging driver population, lifestyle issues, regulatory challenges and others. Over the next 10 years, we need to attract almost 900,000 new people to the industry. Demographics is a big part of the problem. ATA’s research arm, the American Transportation Research Institute, recently updated its demographic data on drivers and found some 57% of drivers are 45 or older. Only 4.4% are 20-24 years old. We have experienced delays in shipping our commodities as a result of the shortage. We have also experienced difficulties finding quality drivers for our own operations which results in more overtime than expected. Recycling industry analysts believe that the current fees for recycling services which hover in the $3 to $4 per month will have to double in the coming years to maintain current services.

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90% Serviced with Automated Collection The Township of Perth East committed early in the New Year to switching to automated collection on a biweekly frequency. This meant that 90% of our households were serviced using the automated collection system and 100% of Perth County. On the heals of launching the last municipality in Perth to convert to automated collection, Dawn-Euphemia committed to convert to automated collection in the fall.

On May 15th, the Dawn-Euphemia council made the decision to proceed with the conversion to automated collection. The discussions were initiated in 2016 and public meeting were held early 2017. In the end, the life of the Dawn landfill and the need to have common services in all areas of the municipality after merging nearly 20 years ago, council opted to implement the automated collection program community wide on a biweekly basis for both waste and recycling. Dawn-Euphemia launched in November and it was immediately followed by the Chippewa of the Thames First Nation who started automated collection in December.

The Association has two remaining vehicles collecting manually from its fleet of 43 trucks.

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Commodities Update After a rise in pricing that started in May of 2016, the commodity pricing continued upward in 2017 until the last half of the year when the export market shut down which resulted in an oversupply situation on the domestic markets

Tonnes Managed The Association continues to grow by managing more materials in the area. Despite a significant campaign to reduce contamination in 2017, we managed to maintain our recycling volumes while increasing our waste volumes.

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Fuel Update One of the benefits of low crude oil is generally lower diesel prices as well. While diesel prices did not go down as rapidly as the crude price, it did eventually fall to a reasonable price below $1.00 per litre.

In the meantime, our conversion to natural gas continues with now 12 of our vehicles operating with this fuel. Despite the lower diesel prices, natural gas remains significantly lower. Furthermore, it remains the best overall performer with lower emissions and low noise.

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Facts About Food Waste About $31 billion worth of food is thrown away annually in Canada. Meanwhile, more than 850,000 Canadians rely on food banks for their next meal, including many children. The true cost of food waste when you factor in the energy that is wasted (to produce the food), is actually close to $107 billion annually. The United Nations’ Food and Agricultural Organization estimates that the full cost of food waste is approximately two and a half times greater than the “face value” of the wasted food, because of the wasted water, energy, labour, capital investment, and more.

Most food that gets thrown away in Canada – a full 47% – occurs in the home. Consumers throw away about $1,500 worth of wasted groceries annually. As much as we hate multilayer packaging for not being recyclable, here is how they help minimize food waste.

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Mars Environmental Our commercial division continues to perform well despite the drop in lifts performed in 2016. The drop in services was directly related to our change of policy with regards to recycling services. As soon as we implemented a nominal fee for the service, our customers responded with an adjustment in service frequency away from weekly service to biweekly or even monthly. This has resulted in a much more efficient operation lowering our costs while improving our revenue stream preparing us for continued growth ahead.

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Regulatory Update

Amended Blue Box Program Plan Bill 151 – the Waste-Free Ontario Act, 2016 – was proclaimed by the Ontario Legislature on November 30, 2016. The new legislation enacted the Waste Diversion Transition Act 2016 (WDTA) and the Resource Recovery and Circular Economy Act 2016 (RRCEA), which makes producers fully responsible for end-of-life management of designated products and packaging. Existing waste diversion programs for Blue Box, Municipal Hazardous and Special Waste (MHSW), Waste Electrical and Electronic Equipment (WEEE) and Tires will be wound up and transitioned to regulations developed under the RRCEA.

This transition will have major implications for all municipalities currently managing or operating waste diversion programs. The municipal sector must be actively involved, working very closely with the Ministry of the Environment and Climate Change (MOECC) and key stakeholders, including producers and service providers, to ensure that the outcomes of this transition are beneficial to our communities. On February 8, 2017, AMO held a one-day workshop with elected officials and municipal staff across the Province, and was asked to support municipal involvement in the transition process and to develop an effective partnership role for the municipal sector. On March 31, 2017, the AMO Board directed staff to engage in discussions on the formation of an appropriate entity to act as a coordinated municipal resource, to provide policy and negotiations support to the municipal sector, and to advocate for the expeditious transition of the Blue Box program to full producer responsibility.

The Association of Municipalities of Ontario, Municipal Waste Association, Regional Public Works Commissioners of Ontario, and the City of Toronto have joined forces to form the Municipal Resource Recovery and Research Collaborative (Municipal 3Rs Collaborative) to advocate for a smooth and timely transition to full producer responsibility, and to make sure key municipal priorities like maintaining service standards to residents are protected. The Municipal 3Rs Collaborative is working closely with key producers and the Ministry of the Environment and Climate Change in a process to consult on revisions to the current Blue Box Program Plan. This would be the first step in transitioning the Blue Box to full producer responsibility.

The role of the Municipal 3Rs Collaborative is to listen carefully to the Ontario municipal sector, feed this information into the process, promote municipal interests, and provide updates and resources that will help municipalities manage contracts and make the best possible decisions for their own local programs and communities.

The Municipal 3Rs Collaborative worked to support all Ontario municipal governments in this process, and throughout the extensive consultation process to ensure full participation by the sector. Unfortunately, the process failed.

The failure to present an acceptable plan rests solely on Stewardship Ontario (SO) and their flagrant disregard for the consultation process and the solutions presented to them to resolve the issues. Instead, they proceeded with the presentation of the BC plan version 2.0 despite repeatedly being told it would never be acceptable in Ontario.

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Municipalities spent countless hours developing solutions to the many issues under each of these main issue categories. The municipalities did so under the understanding this was to be a collaborative process. We had the utmost desire to reach an acceptable plan.

With the accord, SO had begun a reconciliation process with the municipalities but we now see that it was simply another tactic to delay the inevitable. This is the same group that was legislated to pay 50% of the Blue Box costs and has never paid their share. They have even taken municipalities to arbitration to avoid paying their share. They continue to introduce complex and non-recyclable packaging in the marketplace but refuse to take responsibility for them.

Our members, like other municipalities in Ontario have been the provider of the Blue Box programs for approximately three decades. We want good environmental outcomes for our ratepayers by providing fair and reasonable solutions that satisfies the Minister’s direction.

No plan was submitted to the Minister by the original February 15, 2018 deadline. It is anticipated that the Minister will not provide additional direction and will allow the two parties to continue discussions if that is determined to be feasible proposition.

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Tires Regulation under the Resource Recovery and Circular Economy Act, 2016 (RRCEA) Regulation (O. Reg. 225/18) was filed on April 9, 2018. To view the Tires Regulation, please visit the MOECC Environmental Registry (link: https://ero.ontario.ca/notice/013-1716). This new regulation makes individual tire producers responsible for the collection and end-of-life management of tires marketed to consumers in Ontario. The regulation also requires that other persons involved in resource recovery activities related to tires meet certain requirements, such as registration, record keeping and reporting.

The current Used Tires Program, operated by Ontario Tire Stewardship (OTS) under the Waste Diversion Transition Act, 2016, is to cease operation on December 31, 2018, followed by the wind up of OTS as a corporation. For information about the wind up plan, which was recently approved by RPRA (the Authority), visit the Authority's website (link: https://rpra.ca/used-tires-program-wind-up/).

WEEE Wind up Direction A notification and direction letter from the Minister of the Environment and Climate Change to Ontario Electronic Stewardship (OES) and RPRA in respect to the wind up of the waste diversion program for waste electrical and electronic equipment (WEEE) has been issued. It was confirmed that the government is intending to issue wind up direction on all WDA programs prior to the upcoming provincial election. Ontario Electronic Stewardship (OES) must submit a wind up plan for the WEEE Program to the Authority no later than December 31, 2018, and the WEEE Program is to cease operation on June 30, 2020. The wind up direction letter to OES and a complementary policy direction to the Authority can be found on the Authority's website (link: https://rpra.ca/weee-program-windup/).

Municipal Hazardous or Special Waste (MHSW) Program Wind Up On Thursday, April 12, 2018, the Minister of the Environment and Climate Change issued direction to Stewardship Ontario (SO) to wind up the Municipal Hazardous or Special Waste Program by December 31, 2020. This wind up will allow the transition of materials collected under the program to individual producer responsibility under the Resource Recovery and Circular Economy Act, 2016.

Information related to the program wind up and future consultations will be posted to the Program Wind Up page when available. Until the wind up date, the Municipal Hazardous or Special Waste Program will continue to operate without disruption. This includes the operation of the Industry Stewardship Plans managed by the Automotive Materials Stewardship, the Product Care Association and SodaStream. Please contact Stewardship Ontario directly for any operational inquiries at [email protected].

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Amendment to Regulation 344/90 (Disposable Containers for Milk) After considering input received from stakeholders on the proposed amendment to Regulation 344 (Disposable Containers for Milk) under the Environmental Protection Act, 1990, a decision was made to implement the amendment. The amending regulation was filed on April 6, 2018 and is now in effect. To view the regulation, please visit the Environmental Registry (link: https://ero.ontario.ca/notice/013-2059).

The amendment to Regulation 344 provides options for milk producers to use containers that are widely accepted in recycling programs or are managed through a deposit return program. This will provide flexibility to milk producers while still protecting the environment.

Waste Export Data A recent report from the State of Michigan indicated that waste export from Ontario had increased significantly in 2017. It was noted that export tonnage has increased by 19% to over 3 .2 million tons.

It was also confirmed that the State of Michigan is considering the implementation of a landfill surcharge that would represent a significant increase in cost for Ontario waste exported to Michigan landfills.

Metro Vancouver initiatives The City of Metro Vancouver has implemented a tonnage levy on waste generated, but not disposed of at Metro Vancouver facilities. The levy is $40 per tonne with provisions to increase over time. It was noted that this directly affects IC&I waste tonnage and that to date there has not been a legal challenge of the levy provision. It was noted that the City has also passed a license bylaw effective January 1, 2018 that allows the city to control the flow of waste and the organizations active in the waste management sector.

County of Oxford Adopts a Controversial Amendment to their Official Plan The amendment has been appealed to the OMB by Walker Environmental Group on a number of grounds including restricting future waste management facilities. There is a potential concern of the precedent that may be created by this amendment to Oxford's Official Plan which could be troubling especially considering the impact it could have if applied more broadly and to other waste management facilities. The waste management sector clearly has an interest as waste moves freely within the province both to private and public facilities.

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Addressing Food and Organic Waste in Ontario Food and organic wastes make up approximately one third of Ontario’s total waste stream. This includes organic waste generated at home, such as food scraps and leaf and yard waste, as well as food waste produced by industrial, commercial and institutional (IC&I) sectors such as food processors, wholesalers, grocery stores and restaurants.

In 2014, Ontarians generated about 3.6 million tonnes of food and organic waste, of which over 60% was sent for disposal, mostly to landfill.

Although food is essential for life and organic materials are critical for healthy soils, significant amounts of organic material end up going to disposal year after year. Reducing the amount of food and organic wastes that end up in the waste stream provides economic benefits in terms of cost savings across the supply chain and new jobs associated with organic waste processing facilities. It also results in environmental benefits in the form of greenhouse gas reductions and less reliance on landfills. Given the right conditions, food and organic waste can be recovered and re-integrated into the economy. Turning food and organic waste into valuable products recognizes the net economic benefit of a circular economy, where nutrients, energy and other resources are recovered and serve as inputs to new products.

The Strategy for a Waste-Free Ontario: Building the Circular Economy, released on February 28, 2017 commits the ministry to a Food and Organic Waste Action Plan with a key action being the possible banning of food waste from disposal. The strategy also proposes that the first policy statement under the Resource Recovery and Circular Economy Act, 2016 will focus on food and organic waste. These actions will also support the waste reduction and resource recovery objectives of the strategy and greenhouse gas reduction objectives of Ontario’s Climate Change Action Plan. The discussion paper, “Addressing Food and Organic Waste in Ontario”, serves as the basis for preliminary discussions with stakeholders to inform the development of the Food and Organic Waste Framework. The Food and Organic Waste Framework will aim to:

• Reduce the amount of food that becomes waste

• Remove food and organic waste from the disposal stream

• Reduce greenhouse gas emissions that result from food and organic waste

• Support and stimulate end markets that recover the value from food and organic wastes

• Increase accountability of responsible parties

• Improve data on food and organic waste

• Enhance promotion and education regarding food and organic waste

The intent of this Discussion Paper is to offer an early opportunity for Ontarians to provide input towards the development of a Food and Organic Waste Framework.

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This Discussion Paper will assist the Ministry of the Environment and Climate Change in gathering information and collating the various opinions of the general public and stakeholders on the following discussion topics:

• The Scope of the Food and Organic Waste Framework

• Actions to reduce food and organic

• Actions to support processing capacity and end-markets for food and organic wastes The development of both the action plan and policy statement will also be informed by a stakeholder working group concurrently. The ministry has invited representatives from key stakeholder groups including municipalities, the waste management industry, producers, non-governmental organizations, the agri-food industry (e.g. farmers, food processors) and generators of organic waste in the IC&I sectors (e.g., food retailers, restaurants , offices, hospitals) to participate in this process wastes.

The discussion paper posted as part of this proposal is intended to offer an opportunity for the public and stakeholders to provide comments towards the development of the Food and Organic Waste Framework. The ministry expects that further public consultations will occur once the draft policy statement and action plan are released.

Current Municipalities with curbside

green bin programs

Southern: 50,000 pop and urban

density greater than

800p/km2

Southern: 20,000 pop and urban density of

greater than 600p/km2

Northern: 50,000 pop and urban density of

greater than 800p/km2

All Others small, rural,

Northern

Target 75% by 2023

75% by 2023

50% by 2023

50% by 2023 Best Effort

Curbside Collection

Yes Yes Preferred Preferred Not Required

Source Separation

Yes Yes Preferred Preferred Not Required

Alternative to preferred

option

Alternatives can be used if it is demonstrated that the targets can be achieved efficiently and effectively

Diversion through home composting, Community composting, or local event

day

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Bill 148, the Fair Workplaces, Better Jobs Act Bill 148, the Fair Workplaces, Better Jobs Act, was introduced by the government in June to make changes to the Employment Standards Act, including raising the minimum wage and changing the nature of temporary and contract work in Ontario. The new law was adopted in the fall.

It is so new that it is still unclear how new scheduling requirements will be applied. In an attempt to make scheduling more consistent and predictable, under the new law employees that have been with a company for more than three months are able to refuse to work a shift if given fewer than four days notice. As well, ‘on-call’ employees would be paid for three hours of work for each day they are listed as on-call and not called in to work. It is unclear if and how this will apply to fleets.

We have also commented on the new minimum wage, saying that it recognizes that a fair minimum wage but deciding what sectors the changes should apply is necessary for a healthy economy, New York State has been an example of this and it hopes that the Ontario government will be to. The current approach being taken in Ontario lacks this regional and economic analysis. We are not asking the Province to reconsider the move to a $15 minimum wage, but instead urging it to reconsider how such a policy is implemented, clarify which sectors and regions the policy will apply to; and how quickly it will be brought in.”

The timeline for the proposed changes will be staggered, with a raised minimum wage scheduled for Jan. 1, 2018 and again a year later. Changes to the definition of casual, temporary, and part-time workers is proposed for April 1, 2018.

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Green Commercial Vehicle Program Ontario is helping businesses buy low-carbon vehicles and technologies that reduce emissions and foster sustainable development. This investment is part of Ontario's Climate Change Action Plan and is funded by proceeds from the province's cap on pollution and carbon market.

The new program provides rebates towards the purchase of alternative-fuel vehicles and fuel-saving technologies, making it more affordable for local businesses to own and operate greener vehicles. Eligible vehicles and devices under the program include electric and natural gas-powered trucks, aerodynamic devices, anti-idling devices and trailer refrigeration units.

The program encourages more businesses to make the switch to low-carbon vehicles to reduce greenhouse gas emissions from transportation, a sector that generates about a third of Ontario's total greenhouse gas emissions.

The Association was able to take advantage of this program with the acquisition of its latest CNG vehicles.

Class D Renewal Requirements To Tighten Ontario is preparing to tighten the requirements to renew Class D licenses, bringing medicals and knowledge and vision tests in line with other commercial classes. The changes are effective July 1, 2018. Formal notice is expected has been issued to license holders .

Class D license holders up to 80 years old will now be subject to a Class D knowledge test and vision test every five years, when they renew their licenses. Air brake knowledge tests for a Z endorsement will occur at the same time. Drivers 65 to 79 years old, with three demerit points or an at-fault collision on their record, will have to take a road test as well.

Medical reports will have to be submitted every five years for those under 46, three years for those 46-64, and annually for those 65 and older. Forms will be mailed to license holders 90 days in advance of the due date.

A Class D license allows someone to drive any truck or vehicle combination exceeding 11,000 kilograms, provided that the towed vehicle weighs less than 4,600 kilograms.

Association Supports Zero-Tolerance For Drivers On Weed During consultations with the provincial government, the Association supported the Canadian Trucking Alliance (CTA) position that the trucking industry should be held to a zero-tolerance policy for being under the influence of marijuana.

Statistically operators of large commercial vehicles are much less likely to be impaired by alcohol or drugs than all other motorists.

The Association will also be working with the province on creating workplace testing policies, including a review of the responsibility of employers to accommodate those with addiction issues. They are also discussing establishing sobriety levels for commercial drivers and passenger vehicles, similar to those policies currently deployed for safety sensitive positions.

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Federal Cannabis Legislation Tabled The federal government tabled legislation to legalize marijuana on April 13. As expected, the Bills leave the bulk of decisions on age of majority, distribution, and retailing of marijuana to the provinces.

The Legislation:

Bill C-45, the Cannabis Act, will amend Canada’s Criminal Code, Controlled Drugs and Substances Act and other current legislation to allow Canadian residents to sell, buy, possess, and grow marijuana before July of 2018. The legislation proposes:

• limits of 30 grams of dried marijuana for individual possession for adults over the age of 18 years unless a higher age is set by a province;

• authorizes the creation of a licensing system for marijuana growers and a tracking system for plants; • establishes penalties for possession of greater amounts of marijuana, trafficking outside of the proposed system, and distribution to minors;

• provinces will have the ability to set their own distribution and other rules, or default to the federal requirements.

Bill C-46 amends the Criminal Code and other legislation to introduce new penalties for drugged driving, streamline drunk driving provisions. This Bill also allows police officers who suspect a person of driving while under the influence of drugs or alcohol to demand a bodily fluid sample.

This one's got legs: the Ontario Climate Change Solutions Deployment Corporation On February 17, 2017, the Ontario Ministry of the Environment and Climate Change (“MOECC”) took another step toward implementing the goals in the Ontario Climate Change Action Plan (“CCAP”). By filing the Ontario Climate Change Solutions Deployment Corporation regulation (the “regulation”), the MOECC created a new non-share capital corporation to stimulate the development of clean technology and assist with reducing barriers that may inhibit the implementation of the CCAP and its goals.

The corporation, called the Ontario Climate Change Solutions Deployment Corporation (“OCCSDC”), was designed to further the provincial deployment of clean technology for reducing greenhouse gas emissions. It is tasked with meeting this broad purpose by:

• providing information;

• engaging in marketing;

• providing services and arranging for others to be provided with services;

• providing incentives and engaging in financing activities;

• stimulating private sector financing; and

• researching market barriers inhibiting the deployment of clean technology.

• Interestingly, research and development are expressly excluded from the scope of the duties of the OCCSDC.

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The regulation places a focus on developing programs that will maximize absolute greenhouse gas reductions and stimulate the use of clean technology by low-income households. Additional programs will be directed at:

• switching from using fossil fuels to other sources of energy;

• energy storage (of various forms);

• renewable energy;

• retrofitting existing structures to reduce or eliminate greenhouse gas emissions;

• stimulating economies of scale in technology;

• stimulating private sector financing; and

• stimulating the construction of buildings that significantly exceed provincial energy efficiency requirements (think net-zero and net-positive construction).

The corporation will be funded in part by the proceeds of Ontario’s cap and trade program, which the Ontario Government estimates to be approximately $2 billion per year.

In Transportation, for instance, we see the combination of the CCAP and the OCCSDC:

• creating support to enhance the availability and use of lower-carbon fuel by funding fuel distributors for high-blend sustainable biofuels and infrastructure upgrades;

• supporting the re-use of agricultural and food waste as a source of methane fuel;

• generally increasing the distribution and use of electric vehicles and increasing charging-station infrastructure in the province;

• supporting expanded cycling infrastructure in urban areas and along roadways;

• incentivizing low-carbon commercial vehicle solutions; and

• accelerating the construction of regional light rail systems. What comes next?

The Board of the OCCSDC is currently being assembled. After this happens, it will take time for programs to be developed and launched. As well, key details on the operation of the new corporation – including reporting obligations, how it will interact with existing and emerging federal and provincial bodies such as the Ontario Energy Board and the emerging federal infrastructure bank – will need to be finalized and revealed. That being said, there is significant pressure on the province to get things underway.

Given the grave, global impact of carbon and other GHG emissions and the very diffuse nature of the GHG problem for Ontario, the OCCSDC and its parent policy, the CCAP, promise to drive gradual and fundamental change and to create substantial economic opportunities across many sectors. As with green banks elsewhere, early renditions are likely to have flaws and there will undoubtedly be missteps. That being said, considering the sums involved and given the experience seen in other jurisdictions, the launch of the OCCSDC will create economic growth and innovation opportunity and, ultimately, should help Ontario meet its GHG objective. This one’s, as the saying goes, got legs.

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China’s Changing Policies on Imported Recyclable China has taken a number of steps this year to restrict recyclable materials imported into China. These measures will have significant impacts to recycling within the U.S., and the rest of the world.

China is the single largest consumer of recyclable materials exported from the United States. In 2016, approximately 41% of paper recovered in the North Americas was exported with about a quarter of recyclable paper exported to Chinese mills. Similarly, over 20% of post-consumer bottles and 33% of non-bottle rigid plastics from the U.S. were exported in 2015. The European Union exports over 95% of its plastic to China. The US and the EU are the largest exporters of paper grades into China.

In February, as part of China’s broader “National Sword” campaign, customs enforcement began a one-year crack down on illegal smuggling of “foreign waste.” On July 18, 2017, China notified the World Trade Organization (WTO) of its intent to ban 24 materials from being imported. These include mixed plastic and mixed paper effective January 1, 2018. Currently, the Chinese recyclables market represents about 25 percent of U.S. recycled paper exports and anywhere from 20 to 33 percent of recycled plastics, depending the type of plastic. ISRI estimates that this is a $5.6 billion export market for the U.S. The objective of this import ban and contamination limit was to minimize “foreign garbage” entering the country and to promote new environmental standards. Pursuant to this “ban” import licenses from China have not been renewed. The result has been a drop in commodity prices worldwide, especially in the U.S. because the flow of commodities into China, one of the largest importers of recyclables, has been disrupted.

Figure 1

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On August 10, 2017, the Chinese announced a new quality standard for material limiting prohibitives to 0.3 percent. This requirement applies to all materials, even those that are not banned (such as ONP or OCC).

The Chinese Government has not issued the necessary import licenses to satisfy the demands of its mills for recycled material. As a result, there has been a reduction of all recyclable tons entering China.

In a series of Nov. 15 filings with the World Trade Organization (WTO), China's Ministry of Environmental Protection (MEP) proposed adopting Environmental Protection Control Standards for Imported Solid Wastes as Raw Materials (GB 16487.2-13) on Dec. 31, 2017 with an "entry into force" on March 1, 2018.

These filings describe a slight relaxation of the previously announced 0.3% carried waste standard for all materials. The new standard for both "waste and scrap of plastics" and "waste and scrap of paper or paperboard" would be 0.5%. All filings list "Protection of human health or safety; Protection of animal or plant life or health; Protection of the environment" as the objective of these proposals.

Depressed commodity prices. Uncertainty in both the short and long-term Chinese export markets is already disrupting the markets for recyclables in some parts of U.S. Due to this uncertainty, we do not know how long or how severe the disruption will be, but we will be monitoring markets closely.

The short-term disruption is caused primarily by a lack of the quotas required by the Chinese Government for Chinese mills to be able import products

Longer term disruptions may be caused by China’s new material ban, and their new 0.5% prohibitives standard. Availability of outlets. If the ban goes into effect, the ability of other markets to absorb all the recyclables will be strained. Some materials may not be able to find an end market.

Regional variations. The impact is expected to vary by region and local markets across the country.

Eventual relaxation of ban. Given the China’s reliance on recyclable raw materials, industry experts predict that the ban may not be enforced against high quality materials. Ensure High Quality Recyclables - High quality material is more likely to find a market. The new 0.5 percent prohibitives limit is far below any existing international standard. However, high quality material will be welcomed by both domestic and international markets.

This is a global and an industry-wide issue, not a local or individual company issue. Our industry will benefit if we work together to develop solutions to volatile recycling market in the near term, and to work together for longer term solutions as necessary.

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Property, Plant and Equipment As of December 31, 2017, the Association owned two facilities totalling approximately 90,000 ft2 and its associated parcels of real estate property used in its operations. The Association owns its corporate headquarters, which also serves as the Material Recovery Facility in Huron Park, Ontario. The second facility is the Association's main repair shop for the fleet, which is located next door to our Material Recovery Facility.

As of December 31, 2017, the Association utilized approximately 43 waste collection vehicles and other support vehicles, all of which are owned. The majority of our vehicles are highly specialized automated co-collection vehicles to collect waste and recyclables at the same time. The Association upgraded its Material Recovery Facility in 2009. It was the most advanced facility in the marketplace at the time and it remains so in our service area. It is a unique facility maximizing the use of technology to minimize manual sorting effectively reducing repetitive strain injuries.

The Material Recovery Facility is able to process single stream materials, which enables us to facilitate changes in our collection procedure and technology used to collect materials. The collection conversion began in 2008 with one vehicle. Most of the fleet has been replaced with the most recent type of automated vehicles.

Employees As of December 31, 2017, the Association employed approximately 81 full-time employees, including 7 persons classified as professionals or managers, 37 employees involved in collection, 29 in the material recovery operations, 6 maintenance staff, and 2 clerical, data processing or other administrative employees. The Teamsters union with which the

Association has a collective bargaining agreement expiring December 1, 2020 represents approximately 72 employees at the Association’s operating facilities. The Association typically negotiates a three to four year collective bargaining agreement in the last year of any current agreement. The Association is not aware of any other organizational efforts among its employees and believes that relations with its employees are very good.

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Operations As of December 31, 2017, the Association served approximately 92,000 customers, comprised of 87,000 residential clients and 5,000 commercial clients. The following table sets forth certain information regarding the Association’s revenues by category of activity for the last three years.

Bluewater Recycling Association Revenue Summary

2017 2016 2015

Residential Collection $8,908,742 $8,410,314 $8,038,024

Material Sales 2,261,751 1,812,206 1,267,971

Processing & Disposal 428,796 380,719 325,204

Commercial Collection 1,146,486 1,042,058 804,224

Other 38,049 58,379 66,484

TOTAL $12,783,824 $11,703,676 $10,501,907

Residential Collection Services The Association’s long-term solid waste collection contracts with municipalities typically contain a formula, generally based on a pre-determined published price index, for automatic adjustment to fees to cover increases in some, but not all, operating costs plus a pass-through of any disposal cost increases. Under the terms of each of these agreements, the Association has exclusive rights to provide certain services to the community. Most of these agreements were bid on a competitive basis, and rates for all services are set forth in the agreement. Fees for recycling collection services are based primarily on a joint cooperative agreement reviewed annually while fees for residential solid waste collection services are based primarily on route density, the frequency and level of service, the distance to the disposal or processing facility, the cost of disposal or processing and prices charged in the Association’s markets for similar services.

Processing and Disposal The Association offers municipal, commercial and industrial customers services for a variety of recyclable materials, including newspaper, mixed paper, cardboard, office paper, plastic containers, glass bottles, and ferrous and aluminum metals. The Association owns and operates a Material Recovery Facility (MRF) in Huron Park, Ontario. The Association believes that recycling will continue to be an important component of local solid waste management plans due to the public’s increasing environmental awareness and regulations that mandate or encourage recycling.

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The Association disposes of the waste it collects in one of two ways: • at municipally owned landfills; or • at privately owned third party landfills.

The Association seeks to secure favourable long-term disposal arrangements with municipalities or private owners of landfills. The Association’s ability to maintain competitive prices for its commercial waste collection services is generally dependent upon its ability to secure favourable disposal pricing.

Commercial Collection The Association’s commercial collection services are performed principally under service agreements. Fees are determined by a variety of factors, including collection frequency, level of service, route density, the type, volume and weight of the waste collected, type of equipment and containers furnished, the distance to the disposal or processing facility, the cost of disposal or processing and prices charged by competitors for similar services. Commercial collection vehicles normally require one operator. The Association provides 2 to 40 cubic yard containers to commercial customers. This area, while secondary to the Association's mandate, remains the fastest growing segment of our business because of the lack of serious competition in the immediate area.

Commodity Sales The Association sells all materials recovered through its operation of the Material Recovery Facility in Huron Park. The sale of those materials is subject to fluctuations in market prices affected by current global events and by the volume of materials that flows through the facility from our own collection operations and that of other collectors. The market prices during 2017 averaged $156 per tonne, which was higher than the previous year at $125 per tonne as a result of a rise in demand globally.

Sales and Marketing The Association has a diverse customer base, with no single contract or customer accounting for more than 10% of revenues during the year ended December 31, 2017.

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Service Area

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Management’s Responsibility for Financial Reporting

Management and the Board of Directors are responsible for the financial statements and all other information presented in this annual report in accordance with the Financial Administration Act and Regulations. The financial statements have been prepared by management in accordance with generally accepted accounting principles and, where appropriate, include amounts based on management's estimates and judgment. Management has developed and maintains books of account, records, financial and management control, and information systems and management practices. These are designed to provide reasonable assurance as to the reliability of financial information, with the Financial Administration Act and Regulations as well as the by-laws of the Corporation.

The Board of Directors ensures that management fulfills its responsibilities for financial reporting and internal control. The Board of Directors meets monthly to oversee the financial activities of the Corporation, and to review the financial statements and the auditors' annual report.

The Corporation's external auditors, Pinder, Taylor, McNeilly, Godkin Licensed Public Accountants examine the financial statements and report to the membership.

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Auditor’s Report

To the Members of the Bluewater Recycling Association

We have audited the accompanying financial statements of Bluewater Recycling Association which comprise the statement of financial position as at December 31, 2017 and the statements of fund operations and changes in fund balances and cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal controls as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, these financial statements present fairly, in all material respects, the financial position of Bluewater Recycling Association as at December 31, 2016 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. March 16, 2018 PTMG LLP Exeter, Ontario Licensed Public Accountants

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Statement of Financial Position

On Behalf of the Board: Chairman President See accompanying notes to the financial statements.

Year ended December 31Operating

FundCapital Asset

FundCapital Reserve

Fund Total 2017 Total 2016

ASSETSCurrent Assets

Cash 1,326,474$ 122,673$ -$ 1,449,147$ 740,739$ Accounts Receivable 1,251,057 - - 1,251,057 1,539,748 Grants receivable - - - - - Inventory (Note 2) 158,980 - - 158,980 132,336 Prepaid expenses & deposits 124,683 - - 124,683 121,516

2,861,194 122,673 - 2,983,867 2,534,339

Capital Assets (Note 3) - 11,706,870 - 11,706,870 10,951,476 2,861,194$ 11,829,543$ -$ 14,690,737$ 13,485,815$

LIABILITIESCurrent Liabilities

Accounts Payable and accrued charges (Note 4) 920,017$ -$ -$ 920,017$ 710,821$ Interfund loans (advances) 1,941,177 - (1,941,177) - - Current portion of long term debt (Note 5) - 4,763,729 - 4,763,729 4,603,351

2,861,194 4,763,729 (1,941,177) 5,683,746 5,314,172 Long Term Debt (Note 5) - 1,112,623 - 1,112,623 836,178

2,861,194 5,876,352 (1,941,177) 6,796,369 6,150,350 Commitments (Note 6)

FUND BALANCESInvested in capital assets -$ 5,953,191$ -$ 5,953,191$ 5,634,434$ Internally restricted - - 1,941,177 1,941,177 1,701,031

- 5,953,191 1,941,177 7,894,368 7,335,465 2,861,194$ 11,829,543$ -$ 14,690,737$ 13,485,815$

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Statement of Fund Operations and Changes in Fund Balances

See accompanying notes to the financial statements

Capital CapitalAsset Reserve Total Total

Year ended December 31 2017 2016 2017 2017 2017 2016Revenue

Municipal levies 6,676,933$ 6,600,290$ -$ -$ -$ -$ Recyclable products 2,261,751 1,812,206 - - - -

Operating FundRestricted Funds

Operating grants 2,231,810 1,810,024 - - - - Front End 1,146,486 1,042,058 - - - - Other Income 454,671 424,491 - - - - Composters and collection supplies 12,173 14,607 - - - -

12,783,824 11,703,676 - - - -

ExpensesCost of Sales - Recyclables & Freight 260,424 137,866 - - - - Composters and Collection Supplies 13,335 17,230 - - - - Disposal Fees 1,216,289 1,133,451 - - - - Administrative Expenses (Schedule) 827,635 843,123 - - - - Collection Expenses (Schedule) 5,127,169 4,772,949 - - - - Processing Expenses (Schedule) 2,231,095 1,792,850 - - - - Interest on long term debt - - 190,861 - 190,861 191,230 Amortization of capital assets - - 2,279,486 - 2,279,486 2,206,617 Loss (Gain) on disposal of capital assets - - 78,627 - 78,627 (6,410)

9,675,947 8,697,469 2,548,974 - 2,548,974 2,391,437 Excess (Deficiency) of Revenue Over Expenses 3,107,877 3,006,207 (2,548,974) - (2,548,974) (2,391,437) Fund Balance, Beginning of Year - - 5,634,434 1,701,031 7,335,465 6,720,695 Interfund transfers (3,107,877) (3,006,207) 2,867,731 240,146 3,107,877 3,006,207 Fund Balance, End of Year -$ -$ 5,953,191$ 1,941,177$ 7,894,368$ 7,335,465$

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Statement of Cash Flow

See accompanying notes to the financial statements

Year ended December 31 2017 2016

Cash Provided by (Used in)OperationsExcess (Deficiency) of revenue over expenses

Operating Fund 3,107,877$ 3,006,207$ Capital Asset Fund (2,548,974) (2,391,437)

558,903 614,770

Items not involving a cash paymentAmortization 2,279,486 2,206,617 Loss (Gain) on disposal of capital assets 78,627 (6,410)

2,917,016 2,814,977

Changes in non-cash working capital items:Decrease (Increase) in accounts receivable 288,691 (712,269) Increase in inventory and prepaid expenses (29,811) (2,726) Increase in accounts payable and accrued charges 209,194 120,323

3,385,090 2,220,305

FinancingAdditional long term debt 2,559,671 2,362,781 Repayment of long term debt (2,122,846) (2,247,152)

436,825 115,629

InvestingPurchase of capital assets (Note 3) (3,212,538) (2,054,141) Proceeds on disposal of capital assets 99,031 6,410

(3,113,507) (2,047,731)

Net Increase (Decrease) in cash 708,408 288,203 Cash, Beginning of Year 740,739 452,536 Cash, End of Year 1,449,147$ 740,739$

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Notes to the Financial Statements (December 31, 2017)

Purpose Of The Organization The Bluewater Recycling Association is a multi-municipal resource management organization providing integrated waste reduction and environmental services including the collection, processing and marketing of resource based products and services. The corporation is a non-profit organization incorporated without share capital under the Laws of Ontario and is exempt from income taxes.

Accounting Estimates Financial statements are based on representations that often require estimates to be made in anticipation of future transactions and events and include measurements that may, by their nature, be approximations.

Fund Accounting The organization follows the restricted fund method of accounting for contributions. The Operating Fund accounts for the organization's program delivery and administrative costs. This fund reports unrestricted resources and restricted operating grants.

The Capital Asset Fund reports the assets, liabilities, revenues and expenses related to the organization's capital assets.

The Capital Reserve Fund reports the assets, liabilities, revenues and expenses related to the organization's capital asset replacements. The annual Operating Fund surplus or deficit is transferred to this fund. Amounts are transferred from this fund to the Capital Asset Fund as funds are required to purchase capital assets.

Revenue Recognition Restricted contributions related to general operations are recognized as revenue of the Operating Fund in the year in which the related expenses are incurred. All other restricted contributions are recognized as revenue during the course of the year as the budgeted amounts are invoiced. Revenue from recyclable products is recognized when the commodities are shipped. Revenue from services is recognized as the related services are performed.

Inventory Inventory is comprised of recyclable materials and collection supplies. Recyclable materials are stated at their net realizable value. Collection supplies are stated at the lower of cost and replacement value. Cost is determined on a first in, first out basis.

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1. Summary Of Significant Accounting Policies

Capital Assets and Amortization: Capital assets are capitalized for financial statement purposes in the year of acquisition. The cost of repairs and maintenance of a routine nature are charged to operations while those expenditures that improve or extend the useful life of the assets are capitalized. The corporation provides for amortization on its capital assets using the straight-line method at rates set out below, based upon management's estimates of the useful life of the respective assets. Buildings 5% Collection Supplies 10% - 20% Office furniture and equipment 10% - 30% Processing machinery and equipment 10% and 20% Automotive equipment 10% and 30%

Foreign Currency Transactions Transactions which are completed in United States dollars are translated into Canadian dollars by the use of the exchange rate in effect the day of the transaction. At the balance sheet date, monetary items denominated in foreign currency are adjusted to reflect the exchange rate in effect at that date.

2. Inventory

3. Capital Assets

4. Accounts Payable

2017 2016Recyclable Inventory 59,427$ 49,335$ Collection Supplies 99,553 83,001

158,980$ 132,336$

2016

Capital assets are classified as follows: CostAccumulated Depreciation Net Book Value Net Book Value

Land 124,830$ -$ 124,830$ 124,830$ Buildings 2,195,868 1,119,064 1,076,804 1,109,632 Collection Supplies 6,264,713 3,156,719 3,107,994 2,720,213 Office Furniture and Equipment 208,768 188,192 20,576 34,798 Processing machinery and Equipment 6,499,707 4,244,736 2,254,971 1,543,818 Automotive Equipment 13,433,513 8,311,818 5,121,695 5,418,185

28,727,399$ 17,020,529$ 11,706,870$ 10,951,476$

2017

Purchase of capital assets: 2017 2016Land and Buildings 66,614$ 104,306$ Collection supplies 964,171 607,744 Office furniture and equipment 6,803 3,822 Processing machinery and equipment 1,273,743 38,841 Automotive equipment 901,207 1,299,428

3,212,538$ 2,054,141$

2017 2016Accounts Payable 870,087$ 667,038$ Government remittances payable 49,930 43,783

920,017$ 710,821$

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5. Long Term Debt The following table outlines outstanding bank term and equipment loan repayable in monthly installments consisting of the outlined principal plus monthly interest, and are secured by vehicles and a general security agreement or the equipment only.

Long term debt repayments due over the next five years are as follows:

The bank terms loans are secured by a general security agreement covering all of the association's assets, chattel mortgages over equipment financed and a first charge collateral mortgage of $1,000,000 on real estate. The Association has an authorized operating loan line bearing interest at the bank's prime rate with a credit limit of $200,000 and an approved capital expenditure credit facility for equipment purchases of up to $4,500,000 of which $2,418,566 has not been used at December 31, 2017.

Rate Instalments Due Date 2017 2016Prime 9,565$ July 2027 1,090,435$ 3.99% 14,403 April 2022 686,720 Prime 9,621 May 2022 509,907 Prime 4,167 August 2026 433,333 483,334$ Prime 10,250 July 2020 307,500 430,500 5.05% 11,608 April 2020 306,050 426,543 Prime 7,250 May 2021 297,250 384,250 Prime 6,833 February 2021 259,667 341,667 Prime 10,364 September 2019 238,375 362,745 Prime 5,833 February 2021 221,667 291,667 5.09% 8,590 March 2020 218,819 308,321 Prime 4,166 November 2021 195,833 245,834 Prime 3,916 November 2021 184,083 231,084 Prime 9,750 June 2019 165,750 282,750 Prime 8,667 July 2019 164,667 268,667 Prime 5,833 February 2020 151,667 221,667 3.98% 2,835 August 2021 115,871 144,651 4.25% 11,657 October 2018 114,327 246,289 4.25% 8,261 October 2018 81,081 174,595 Prime 4,833 January 2019 62,833 120,833 Prime 883 September 2020 28,267 38,867 Prime 750 October 2020 26,250 34,500 Prime 1,000 May 2019 16,000 28,000 Prime 9,167 December 2017 - 100,833 5.50% 11,253 June 2017 - 66,448 5.50% 11,253 June 2017 - 66,448 5.50% 10,514 June 2017 - 62,087 Prime 7,500 August 2017 - 52,500 6.02% 12,971 February 2017 - 24,449

5,876,352 5,439,529Less amounts due within one year 4,763,729 4,603,351

1,112,623$ 836,178$

2018 4,763,729$ 2019 417,610 2020 264,531 2021 189,264 2022 57,135 2023 184,083

5,876,352$

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6. Commitments Prior to December 31, 2017, the Association entered into an agreement to purchase two fleet trucks with the balance of $780,000 payable upon delivery in 2018, The Association has arranged financing with its existing lenders for this purchase.

7. Pension Agreements The Association participates in the Ontario Municipal Employees Retirement System (OMERS), which is a multi-employer plan, on behalf of its employees. The plan is a contributory defined benefit plan, which specifies the amount of the retirement benefit to be received by employees based on length of service and rates of pay.

The amount contributed to OMERS for 2017 was $289,246 (2016 - $286,306) for current service. These payments are included as expenditure in the financial statements. OMERS sets the pension contribution rate annually to ensure that the plan remains fully funded. The pension contribution rate for 2017 was 9.0% of regular wages.

8. Financial Instruments The company has interest rate risk due to having bank loans subject to floating interest rates and is exposed to fluctuations based on the bank’s prime rate of interest. It is management's opinion that the Association is not exposed to significant currency or credit risks.

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2017 Management

Board of Directors Chairman Todd Case, Warwick

Vice-Chairman Brad Richards, Strathroy Caradoc

Huron Marnie Hill, Bluewater

Tom Tomes, South Huron

Lambton Jason Meyer, Dawn-Euphemia

Todd Case, Warwick

Middlesex Andy Van Geel, Lucan Biddulph

Brad Richards, Strathroy Caradoc

Perth Ken Buchanan, North Perth

Jim Craigmile, St. Marys

Management

President Francis Veilleux, since inception Controller Michelle Courtney, since December 2016

Fleet Manager Doug Tilford, since September 2001

Operations Manager Terry Erb, since February 2001

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Membership Huron County Municipality of Bluewater Municipality of Central Huron Municipality of Huron East Municipality of South Huron Town of Goderich Township of Morris-Turnberry (Associate)

Lambton County Municipality of Lambton Shores Township of Brooke Alvinston Township of Dawn/Euphemia Township of Warwick Village of Oil Springs

Middlesex County Municipality of Middlesex Centre Municipality of North Middlesex Township of Adelaide Metcalfe Township of Lucan-Biddulph Township of Strathroy-Caradoc

Perth County City of Stratford (Associate) Municipality of North Perth Municipality of West Perth Town of St. Marys Township of Perth East (Associate) Township of Perth South The Association also services other communities under contracts and/or through subcontractors. Associate Members have no voting rights.

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Corporate Directory

Head Office Bluewater Recycling Association P.O. Box 547 415 Canada Avenue Huron Park ON N0M 1Y0

Solicitors

McKenzie Lake Barristers & Solicitors 140 Fullarton Street, Suite 1800 London ON N6A 5P2

Auditors

PTMG LLP Chartered Accountants 71 Main Street, North Exeter ON N0M 1S3

Financial Institution

Bank of Montreal 400 Main Street Exeter ON N0M 1S3

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Municipality of Middlesex Centre By-Law 2018-039

A by-law approving and ratifying an agreement with AMO for funding under the Ontario Main Street Revitalization Initiative WHEREAS Middlesex Centre is desirous of entering into an Agreement with AMO to provide for the funding of a grant program under the the Ontario Main Street Revitalization Initiative; THEREFORE the Council of the Municipality of Middlesex Centre enacts as follows: 1. THAT the Agreement with AMO attached hereto as Schedule ‘A’, in substantially

the same form, is hereby approved and ratified. 2. THAT the Mayor and Clerk are hereby authorized to execute the attached

Agreement on behalf of the Municipality of Middlesex Centre. 3. THAT this By-Law come into effect on the day of passing

Passed this 9th day of May, 2018.


_____________________________ Ann Wright, Clerk

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A by-law to appoint a Deputy Treasurer for the municipality of Middlesex Centre (Melissa Kopal)

WHEREAS under Section 286(2) of the Municipal Act, 2001, S.O. 2001, c.25, a municipality may appoint a deputy treasurer; AND WHEREAS the Council of the Municipality of Middlesex Centre considers it desirable and expedient to appoint a Deputy Treasurer; NOW THEREFORE the Council of the Municipality of Middlesex Centre enacts as follows: 1) THAT Melissa Kopal is hereby appointed as Deputy Treasurer for the Municipality

of Middlesex Centre. 2) THAT any other by-laws or resolutions contrary to this by-law are hereby repealed. 3) THAT this by-law shall take effect and come in full force on May 15th, 2018. Passed this 9th of May, 2018.


_____________________________ Ann Wright, Clerk

May 09, 2018 Page 1 of 1


Being a by-law to authorize the execution of a Services Agreement for provision of Information Technology Service between the Municipality of Middlesex Centre and The Corporation of the County of Middlesex

WHEREAS The Municipal Act, 2001, S.O. 2001, c. 25 as amended authorizes a municipal council to enter into agreements; AND WHEREAS the Municipality of Middlesex Centre and the Corporation of the County of Middlesex are desirous to enter into an agreement for the provision of Information Technology Services; THEREFORE the Council of the Municipality of Middlesex Centre enacts as follows:

1) THAT the Agreement attached hereto, in substantially the same form, as Schedule ‘A’ be approved and ratified.

2) THAT the Mayor and Clerk be authorized to execute the attached Agreement on behalf of the Municipality of Middlesex Centre.

Passed this 9th day of May, 2018.


_____________________________ Ann Wright, Clerk

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INFORMATION TECHNOLOGY SERVICES AGREEMENT SERVICE AGREEMENT effective this FIRST day of JANUARY, 2018. BETWEEN:

THE CORPORATION OF THE COUNTY OF MIDDLESEX (hereinafter called the “County”)

- and –

THE MUNICIPALITY OF MIDDLESEX CENTRE

(hereinafter called the “Municipality”)

WHEREAS:

A. The County is a municipality and an upper-tier municipality as defined by the Municipal Act, 2001, S.O. 2001, c. 25, as amended or replaced (hereinafter the “Municipal Act”);

B. The Municipality is a lower-tier municipality and local municipality as defined by the Municipal Act;

C. Local municipalities located within the geography of the County and County Councillors

have expressed interest in having the County provide information technology services to the local municipalities;

D. Section 9 of the Municipal Act provides that municipalities have the capacity, rights,

powers and privileges of natural persons, which includes the power to do things that natural persons can do, such as, inter alia, provide information technology services and enter into agreements;

E. Subsection 11(1-2) of the Municipal Act provides broad authority for upper-tier

municipalities to manage their respective financial affairs and to provide any service the upper-tier municipality considers desirable for the public;

F. County Council considers the County provision of information technology services to the

local municipalities to be desirable, effective and valuable to the community;

G. Subsection 19(2)3 and 20 of the Municipal Act allows an upper-tier municipality to provide a service in a local municipality as long as one of the purposes of its provision is for lower-tier municipal purposes, there is consent from the local municipality, and the municipalities enter into an agreement with respect to the provision of such services;

H. The Municipality desires and consents for Information Technology Services to be provided

by the County and confirms that the purpose of delivery of such service from the County is to pool resources with the County in a cooperative effort to provide local municipalities with high quality information technology services at a cost which is not prohibitive (hereafter referred to as the “Initiative”);

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I. The Municipality acknowledges that, in reliance on the local municipalities’ express and collective desire for the Initiative, the County has hired information technology staff to provide information technology services to the local municipalities and that it would be detrimental to the County in terms of human resources and employment law costs if the Municipality were to terminate this Agreement;

J. Section 8 of the Municipal Act provides that the powers of municipalities shall be

interpreted broadly so as to confer broad authority to enable municipalities to govern their own affairs;

K. This Agreement sets out the conditions upon which the County will provide information

technology services to the Municipality; the requirements of said services; and the methods for requesting said services;

L. The CAO or the CAO’s designate is authorized to administer this Agreement for the Municipality and execute any such further documents as may be necessary to give effect to services herein described;

M. The Director of ITS and his or her designate is authorized to administer this Agreement on behalf of the County and execute any such further documents as may be necessary to give effect to services herein described.

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT, in consideration of the payment of the sum of TWO DOLLARS ($2.00) from each Party to the other and for other good and valuable consideration, including the covenants herein, the receipt and sufficiency of which is hereby acknowledged, the Parties covenant and agree as follows:

Recitals

1. The above recitals are true and hereby incorporated into this Agreement by reference.

Definitions

2. In this Agreement, in addition to terms defined elsewhere in this Agreement, the following terms have the following meanings:

(a) “Agreement” means this Agreement, including all Schedules, as it may be

confirmed, amended, modified, supplemented or restated by written agreement between the Parties;

(b) “Business Day” means any day excluding a Saturday, Sunday or statutory holiday in the Province of Ontario.

(c) “Change Order(s)” means a Change Order substantially in form of Schedule “C” which adds, removes or modifies a service to be provided to the Municipality by the ITS Department for the duration and at the cost set out in the Change Order. Any duly endorsed Change Order(s) by the Municipality and the Director of ITS shall be an amendment to this Agreement and shall be appended hereto.

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(d) “Communication” means any notice, demand, request, consent, approval or other communication which is required or permitted by this Agreement to be given or made by a Party;

(e) “Consultant(s)” means a third party(ies) whose services are procured by the ITS Department upon the recommendation of the Director of ITS and paid for by the Local Municipalities whether individually or as a cooperative purchasing scenario.

(f) “Director of ITS” means the person appointed to hold the position of the Director of Information Technology Services of the ITS Department.

(g) “IT” means Information Technology.

(h) “ITS” means Information Technology Services.

(i) “ITS Department” means the department of the County having the mandate and responsibility for the provision of Information Technology Services.

(j) “ITS Staff” means employees of or independent contractors contracted with the County ITS Department.

(k) “Local Municipalities” means all of the local municipalities which are located within the geography of the County of Middlesex and, each of which have entered into a Service Agreement with the ITS Department.

(l) “Options Menu” means the services listed in Schedule “B”, which may be provided by the ITS Department in the event of a duly endorsed Change Order(s) by the Municipality and the Director of ITS for the duration and at the cost set out in Change Order(s).

(m) “Parties” means The Corporation of the County of Middlesex and THE MUNICIPALITY OF MIDDLESEX CENTRE collectively and “Party” means one of them.

(n) “Services” means the information technology services list set out in Schedule “A” to be provided for the Term of this Agreement and for the cost set out in section 10(a) of this Agreement, subject to Change Order(s).

Term

3. Subject to the termination and amendment provisions of this Agreement (ss. 22-24 and 27), the term of this Agreement shall be for five (5) years commencing on the effective date noted at the top of page one (1) of this Agreement (hereafter, the “Term”). The Term shall be automatically renewed for two further five (5) year terms commencing on the anniversary date of each five-year term, provided that neither Party terminates this Agreement in accordance with ss. 22-24, on or before the applicable renewal date.

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Information Technology Services

4. The ITS Department shall provide THE MUNICIPALITY OF MIDDLESEX CENTRE with ITS, as set out in the following documents:

(a) Schedule “A” Services List – sets out the services to be provided for the

Term of this Agreement for the cost set out in section 10(a) of this Agreement, subject to Change Order(s).

(b) Schedule “B” Options Menu - sets out services which are not included in

the cost set out in section 10(a) of this Agreement but may be provided by the ITS Department in the event of a duly endorsed Change Order(s) by the Municipality and the Director of ITS for the duration and at the cost set out in Change Order(s).

(c) Schedule “C” Change Order Form – provides a form of Change Order

Form to be used by the Parties. (d) Schedule “D” Regular Service Level Guidelines – a guideline document

which sets out incident response guidelines.

5. The scheduling and delivery times for Services will be discussed between the Director of ITS and the Municipality and the ITS Department shall use reasonable efforts to cooperate with and accommodate the scheduling requests of the Municipality.

6. Any change, modification or addition of a service to the Services, to be effective, must be processed through a Change Order(s) substantially in the form of Schedule “C” and endorsed by the Municipality and the Director of ITS. Change Orders shall generally identify the following:

(a) The nature of the change such as addition, deletion or modification of the

service; (b) The duration of the change; (c) How the Services are affected; (d) The increase or decrease of the cost of the Services as a result of the

Change Order. It is the responsibility of the Municipality to ensure that all Change Orders are compliant with local purchasing by-laws or policies. The County shall be permitted to rely upon the signature of the CAO or his or her designate as confirmation of compliance with any such policy or by-law. Any duly endorsed Change Order(s) by the Municipality and the Director of ITS shall be an amendment to this Agreement and shall be appended hereto.

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Consultants to be Procured by the County ITS Department

7. From time to time, it may be necessary for the ITS Department, on the recommendation of the Director of ITS, to procure Consultant(s) to assist with the provision of IT Services. Consultants may be retained where the ITS Department requires:

(a) specialized expertise; (b) additional support for significant projects; (c) additional support for short deadlines,

or in any other circumstance deemed appropriate by the Director of ITS.

8. Where the Director of ITS recommends the procurement of Consultant(s), he/she

shall notify the Municipality in writing of such recommendation with written reasons why the Consultant is necessary. It shall be the sole responsibility of the ITS Department to procure the Consultant(s) in accordance with the County purchasing policy and pay such Consultant(s) directly.

9. Any amounts due and payable to a Consultant or incurred by the County in procuring the consultant pursuant to section 7 shall be calculated and recovered from the Municipality. Prior to awarding the procurement of a Consultant to a particular individual or entity the ITS Department shall provide the name of a proposed Consultant to the Municipality so that it may advise the ITS Department of any potential conflicts of interest. Where the consultant may be performing services that will benefit more than one of the Local Municipalities, then the cost of the consultant will be divided between the benefitting Local Municipalities on a pro rata basis or as set out by the Director of ITS in writing to the Municipality.


Base Cost + Actual Costs Adjustment 10. The County shall be compensated for the provision of IT Services by the Municipality

in accordance with the Base Cost + Actual Costs Adjustment formula set out below:

(a) The base cost for the Services for the Municipality provided herein shall be $35,000 (hereafter the, “Base Cost”), as set out in Schedule “A”.

(b) The Municipality shall pay to the County the Base Cost in quarterly invoices

produced on or about March 31, June 30, September 30, and December 31 of each year during the Term of this Agreement.

(c) Invoices are payable within 30 days from the date the invoice is issued by

the County.

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(d) An annual costs reconciliation and adjustment (hereafter the “Actual Costs

Adjustment”) will be made in December of each year during the Term of this Agreement to ensure that the Municipality’s annual payment for the Services aligns with the actual cost to ITS of providing the Services. The Actual Costs Adjustment shall take into account the costs associated with any Change Order(s) made during the year and any other consideration deemed relevant by the Director of ITS, including but not limited to:

(i) the impact that the Services for the Municipality has had on the

human resources of the ITS Department; (ii) salary and benefits of ITS Staff; (iii) infrastructure costs; (iv) licensing costs; and (v) software and hardware costs.

The annual Actual Costs Adjustment, if any, will be reflected on the Municipality’s final invoice for the year issued on or around December 31. A report detailing the Actual Costs Adjustment will be provided by the Director of ITS to the CAO of the Municipality or his or her designate.

Annual Review 11. The ITS Department shall perform an annual review (hereafter the “Annual

Review”) in December of each year during the Term of this Agreement, and any renewals thereof, which will take into account both the Actual Costs Adjustment noted above and any anticipated Change Order(s) anticipated for the upcoming year, for the purposes of adjusting the Base Cost of the Services for the upcoming year. In determining the Base Cost for the upcoming year, the ITS Department shall take into account:

(a) any Change Order(s) made during the year; (b) the Municipality’s actual or anticipated ITS needs for the upcoming year; (c) the impact that the Services for the Municipality has had on the human

resources of the ITS Department; (d) salary and benefits of ITS Staff; (e) infrastructure costs; (f) licensing costs; (g) software and hardware costs; and (h) any other consideration deemed relevant by the Director of ITS.

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Without limiting the foregoing, the Parties acknowledge and agree that, subject to any cost adjustment required by any Change Order(s) made during the year and any addition or removal of services based on the anticipated needs of the Municipality for the upcoming year, the Base Cost will increase by a minimum of two percent (2%) each year to account for increased labour and operation costs. Following the Annual Review, the Director of ITS, in consultation with the Municipality, shall amend Schedule “A” to adjust the Base Cost of the Services for the upcoming year. Any Change Order(s) made during the year that are intended to be in effect during the upcoming year shall be incorporated into the amended Schedule “A” at that time. The amended Schedule “A” shall come into effect January 1 of the year following the Annual Review.

Renegotiation Out of Necessity 12. Notwithstanding any the foregoing or any other provision of this Agreement, at any

time during the Term of this Agreement, whether due to an Annual Review or otherwise, the Director of ITS in his or her sole discretion determines that that the Services being provided to the Municipality by the ITS Department are having a significant impact on human resources of the ITS Department which warrants an adjustment to the price, the price of the Services shall be renegotiated as between the Director of ITS and the Municipality’s CAO and this Agreement shall be amended as a result of the renegotiation. In the event that the Director of ITS and the Municipality’s CAO are unable to reach a renegotiated agreement within four (4) weeks from the time the Municipality was notified of the need for a price change, the price shall be considered a dispute and the dispute resolution mechanism provided for in section 29 of this Agreement shall commence.

County Responsibilities

13. The County covenants that it shall be responsible for the following:

(a) the provision of the Services, as defined in this Agreement; (b) providing best efforts to leverage shared services to reduce overall ITS

costs to Local Municipalities located in the geography of Middlesex County; (c) its own employees, Councillors, officers, and agents engaging in the

furtherance of their duties, wherever situate, in relation to the performance of the Services under this Agreement; and

(d) the negligence of its own employees and agents in the furtherance of their

duties under this Agreement.

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County Indemnity

14. The County hereby releases, indemnifies, and holds harmless the Municipality, its

respective employees, directors, officers, and agents from and against any and all claims, causes of action, demands, losses, costs, charges, fees, expenses, duties, dues, accounts, covenants, or other proceeding of every kind or nature whatsoever at law or in equity brought against, suffered by or imposed upon the Municipality which arise out of or are related to any loss, damage or injury to any person or property (including injury resulting in death) which is caused by the negligence of County employees acting in the course of performing their obligations in the furtherance of this Agreement.

County Insurance

15. The County agrees that it shall, at its own expense, obtain and maintain in full force and effect during the Term of this Agreement and any renewal thereof, the following policies of insurance coverage:

(a) Commercial General Liability Insurance (“CGL”) on an occurrence

basis insuring against damages to persons (personal injury, including death) and property, contractual liability, employer’s liability, and employee benefits liability with a limit of not less than five million dollars ($5,000,000.00). The CGL shall include:

(i) the Municipality as an additional insured; (ii) a cross-liability clause; (iii) a severability of interests clause endorsement; (iv) contractual liability coverage arising out of this Agreement;

The above noted CGL shall include a provision that if cancelled or

changed in any manner that would affect the Parties as outlined in the coverage specified, the insurer will endeavor to provide thirty (30) days prior written notice by mail or facsimile transmission to the Parties.

(b) Errors and Omissions coverage for potential errors and omissions arising from the operations of its employees (including employee benefits liability) underwritten by an insurer licensed to conduct business in the Province of Ontario.

(c) If the above noted insurance policy is to be cancelled or non-renewed for

any reason, ninety (90) days’ notice of said cancellation or non-renewal must be provided to the Municipality.

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Responsibilities of the Municipality

16. The Municipality covenants that it shall be fully responsible for the following:

(a) Its own corporate operations and activities; (b) Its own employees, Councillors, officers, and agents engaging in the

furtherance of their duties, wherever situate; (c) Its own negligence or the negligence of its own employees, Councillors,

Mayors, directors, officers, and agents; (d) Without limiting clauses 16(a-c), the operating and capital costs associated

with the IT systems, software, hardware, licensing, warranties, and other related costs of the IT systems, software, and hardware which it owns, maintains or licenses;

(e) Without limiting clauses 16(a-c), appropriately budgeting for its own IT

operating and capital expenditures, as recommended by Director of ITS; (f) Providing best efforts to the Director of ITS notice of upcoming projects,

strategies and objectives that may impact IT resources; (g) Adhering to technology standards as determined by the ITS Department; (h) Without limiting clause 16(a-c), ensuring that third party vendor agreements

(underpinning contracts) are in place for appropriate service coverage; (i) Assigning a knowledgeable primary contact to facilitate IT related inquiries

and approvals; (j) Without limiting clause 16(a-c), adopting and adhering to appropriate ITS

policies; and (k) Providing to the ITS Department any and all relevant information relating

to its: IT systems; the use of its IT systems; software; hardware; licensing; and warranties.

Indemnity from the Municipality

17. The Municipality hereby releases, indemnifies, completely holds harmless and agrees

to defend the County, including the County’s respective employees, Councillors, officers, agents and legal counsel from and against any and all claims, causes of action, demands, losses, costs, charges, fees, expenses, duties, dues, accounts, covenants, or other proceeding of every kind or nature whatsoever at law or in equity brought against, suffered by or imposed which arise out of or are related to any loss, damage or injury to any person or property (including injury resulting in death) which is caused by its operations, activities or the negligence of its employees, directors, or officers.

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18. The Municipality shall, at its own expense, obtain and maintain in full force and effect during the Term of this Agreement and any renewal thereof the following policies of insurance coverage:

(a) Commercial General Liability Insurance (“CGL”) on an occurrence basis insuring against damages to persons (personal injury, including death) and property, contractual liability, employer’s liability, and employee benefits liability with a limit of not less than five million dollars ($5,000,000.00) per occurrence or such greater amount that the County may from time to time reasonably request. The CGL shall:

(i) include the County as additional insured; (ii) contain a cross-liability clause; (iii) contain a severability of interests clause endorsement; (iv) contain a clause including contractual liability coverage arising out of

this Agreement;

The above noted CGL shall include a provision that if cancelled or changed in any manner that would affect the Parties as outlined in the coverage specified, the insurer will endeavor to provide thirty (30) days prior written notice by mail or facsimile transmission to the Parties.

(b) Errors and Omissions coverage for potential errors and omissions arising from the operations of its employees (including employee benefits liability) underwritten by an insurer licensed to conduct business in the Province of Ontario.

(c) If the above noted insurance policy is to be cancelled or non-renewed

for any reason, ninety (90) days’ notice of said cancellation or non-renewal must be provided to the County.

Force Majeure

19. Despite any section of this Agreement, no Party shall be liable for damages caused

by delay or failure to perform its obligations under this Agreement where such delay or failure is caused by an event beyond its reasonable control (hereinafter referred to as a “Force Majeure Event”). The Parties agree that an event shall not be considered a Force Majeure Event if a reasonable person owing duties to others in the same or similar circumstances as provided for under this Agreement would have put in place contingency plans to either materially mitigate or negate the effects of such an event. If a Party seeks to excuse itself from its obligations under this Agreement due to a Force Majeure Event, that Party shall immediately notify the other Party(ies) of the delay or non-performance, the reason for such delay or non-performance, and the anticipated period of delay or non-performance. In addition, the Party excusing itself due to a Force Majeure Event shall use its best efforts to remedy any such non-performance, except that nothing herein contained shall require any such party to make settlement of any labour dispute on terms unacceptable to it.

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Compliance with Law and Confidentiality 20. The Parties agree to treat each other’s information that is not publicly available,

including information relating to the business affairs, operations, human resources and proprietary practices as confidential.

21. Notwithstanding section 20 above, both Parties acknowledge that each of them, being an Ontario municipality, is subject to the Municipal Freedom of Information and Protection of Privacy Act, RSO 1990, c M56 (“MFIPPA”) and as a result, some information may be required to be disclosed by either party as a statutory requirement. The Parties agree that notwithstanding section 20 of this Agreement, either Party shall have no obligation with respect to the disclosure of confidential information and does hereby fully and finally release the other, its respective Warden, Mayor, Councillors, officers, directors, employees, agents, and legal counsel from any liability for disclosing confidential information in the event that the Party that discloses confidential information does so in accordance with a lawful statute applicable in Ontario, including MFIPPA, or PHIPA or is ordered to disclose such information by the Office of the Information and Privacy Commissioner or any court or tribunal of competent jurisdiction.

Termination

By the Municipality

22. The Municipality may terminate this Agreement by providing six (6) months written notice to the County. The effective date of termination by the Municipality shall be exactly six (6) months after notice is effectively received by the County in accordance with section 25 of this Agreement (the “Termination Date”). The Municipality acknowledges that in the event the Municipality terminates this Agreement, it will no longer receive ITS, from the County, but it will remain liable for:

(a) Paying to the County all costs that, but for the termination, would have

been associated with providing the Services for the remainder of the year in which the Termination Date occurs;

(b) Paying the County an amount sufficient to cover the Municipality’s share

of any and all long-term obligations incurred for the benefit of the Municipality by the County in reliance upon the Municipality’s commitments to the Initiative, including but not limited to, the hiring of IT personnel, leasing, licensing, early termination costs, consultants and all other non-avoidable future costs identified, and

(c) The return of any hardware and/or software licenses that is not owned

solely by the Municipality to the County.

By the County

23. The County may terminate this Agreement at any time without cost or penalty upon providing six (6) months written notice to the Municipality.

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Due to Dissolution

24. In the event the Municipality dissolves as a Corporation, this Agreement shall terminate. In the event the County dissolves as a Corporation, this Agreement shall terminate. In either event, termination due to dissolution shall occur as of the date the corporate entity ceases operations. Each of the Parties covenant to inform the other immediately as soon as it has knowledge that the dissolution the cessation of operations is either being considered and/or has any semblance of likelihood.

Notices

25. Acceptable Communications between the Parties shall include communications

which are:

(a) delivered personally or by courier; (b) sent by prepaid registered mail; (c) transmitted by facsimile, e-mail or functionally equivalent electronic

means of transmission, charges (if any) prepaid.

Any Communication must be sent to the intended Party at its address for service listed on the signature pages of this Agreement or to any other address as any Party may at any time advise the other by Communication given or made in accordance with this section. Any Communication delivered to a Party to whom it is addressed will be deemed to have been given or made and received on the day it is delivered at that Party’s address, provided that if that day is not a Business Day then the Communication will be deemed to have been given or made and received on the next Business Day. Any Communication transmitted by facsimile, e-mail or other functionally equivalent electronic means of transmission will be deemed to have been given or made and received on the day on which it is transmitted, but if the Communication is transmitted on a day which is not a Business Day or after 4:00pm (local time of the recipient), the Communication will be deemed to have been given or made and received on the next Business Day.

Further Assurances

26. The Parties warrant that they shall do, execute, acknowledge, deliver and/or cause to be done such other acts, agreements and other documents as may be reasonably required or desirable to give effect to the terms of this Agreement.

Amendment and Waiver

27. No amendment, discharge, modification, restatement, supplement, termination or waiver of this Agreement or any section of this Agreement is binding unless it is in writing and executed by the Parties to be bound. No waiver of, failure to exercise, or delay in exercising, any section of this Agreement constitutes a waiver of any other section (whether or not similar) nor does any waiver constitute a continuing waiver unless otherwise expressly provided.

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Assignment and Enurement

28. Neither this Agreement nor any right or obligation under this Agreement may be assigned by any Party, other than provided for herein, without the prior written consent of the other Parties. This Agreement enures to the benefit of and is binding upon the Parties and their respective heirs, executors, administrators, estate trustees, trustees, personal or legal representatives, successors and permitted assigns.

Dispute Resolution

29. Upon written requests to resolve any disputes arising from this Agreement which are sent by one Party to another, the Parties hereby agree to resolve all disputes pursuant to this section. Upon receipt by the receiving Party of a written request to resolve disputes, the Parties shall first attempt to resolve all disputes by way of formal negotiation between the Parties and their appointed representatives. Generally, at first instance an attempt to resolve any dispute shall be performed by the Municipality’s staff and the Director of ITS. Should the dispute remain unresolved for a period of thirty (30) or more days then the matter may be escalated to the respective CAOs of the County and the Municipality. If the disputes cannot be settled within sixty (60) days from the receipt of the written request to resolve disputes by the receiving Party, then the Parties shall enter into a structured negotiation on a without prejudice basis with the assistance of a mediator appointed by them. If the disputes cannot be settled within ninety (90) days from the receipt of written request to resolve disputes by the receiving Party, or such longer period as may be agreed to by the Parties, the Parties shall, refer the matter forthwith to an arbitration which shall finally resolve the dispute(s). The aforementioned arbitration shall be conducted in accordance with the Ontario Arbitration Act, 1991, c 17, as amended or replaced.

Voluntary Enforceable Agreement

30. The Parties warrant that this Agreement is voluntary, that none of the Parties are under any legal disability and that each Party has had an opportunity to seek the advice of independent legal counsel with respect to this Agreement.

Counterparts

31. This Agreement may be executed and delivered by the parties in one or more

counterparts, each of which will be an original, and each of which may be delivered by facsimile, e-mail or other functionally equivalent electronic means of transmission, and those counterparts will together constitute one and the same instrument.

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Severability

32. Each section of this Agreement is distinct and severable. If any section of this Agreement, in whole or in part, is or becomes illegal, invalid, void, voidable or unenforceable in any jurisdiction by any court of competent jurisdiction, the illegality, invalidity or unenforceability of that section, in whole or in part, will not affect:

(a) the legality, validity or enforceability of the remaining sections of this

Agreement, in whole or in part; or (b) the legality, validity or enforceability of that section, in whole or in part, in

any other jurisdiction. Governing Law

33. This Agreement is governed by, and is to be construed and interpreted in accordance with the laws of the Province of Ontario and the laws of Canada applicable in that Province.

[ONE (1) SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF this Agreement has been executed by the Parties hereto on the date(s) set out below and the Parties agree that this Agreement shall be effective on the date set out at the top of page one (1) of this Agreement.

THE CORPORATION OF THE COUNTY OF MIDDLESEX

Date: ________, 2018 Address for Service: Attn: Clerk 399 Ridout Street N. London, ON N6A 2P1

Per: Marigay Wilkins, Warden

Per: Kathleen Bunting, Clerk


THE MUNICIPALITY OF MIDDLESEX CENTRE

Date: ______________, 2018 Address for Service: Attn: Ann Wright, Clerk 10227 Ilderton Rd. Ilderton, ON N0M 2A0

Per: Al Edmondson, Mayor

Per: Ann Wright, Clerk


Schedules: A = Services List B = Options Menu C = Change Order Form D = Regular Service Level Standards

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SCHEDULE “A”

SERVICES



Service Level

Service Desk January 1, 2018


Regular

Service Description The Service Desk is a customer service focused single point of contact with the ITS Department. It is responsible for the efficient and effective resolution of incidents or service requests. The Service Desk tracks, logs and manages all incidents and service requests using an Information Technology Service Management (ITSM) system to ensure that all Service Level Standards are met.



Service Level

Website / Web Application Hosting

January 1, 2018


Regular

Service Description: Website / Web Application Hosting is the business of housing, serving and maintaining files for one or more websites which are made accessible to the Internet. This service provides adequate storage and bandwidth to ensure the website or web application performs as expected. This service also includes related services such as domain name registration and renewal, DNS management, disaster recovery planning, AODA compliance reporting and availability monitoring. Below is a list of web sites and web applications that the Municipality owns which are hosted using Middlesex County IT infrastructure.

- Learning Management System (https://training.middlesex.ca) - Municipal Website (https://middlesexcentre.on.ca)

May 09, 2018 Page 17 of 29

https://training.middlesex.ca/

https://middlesexcentre.on.ca/

17


Date Duration of


IT Procurement January 1, 2018


Regular

Service Description: IT procurement is the series of activities and procedures necessary to acquire information technology products and services. By consolidating IT procurement, it creates opportunities to leverage economies of scale when purchasing equipment or services. IT procurement also drives technology standards to ensure that overall cost effectiveness and efficiencies are found within the Municipality. Functions of IT Procurement include, but are not limited to:

• Vendor Relationship Management • Equipment Purchasing • Technology Standards • Economies of Scale • Leveraging Vendor of Record Programs • Equipment Research and Recommendations • Procurement Vehicles: Request for Quotes and Request for Proposals



Service Level

IT Asset Management January 1, 2018


Regular

Service Description: IT Asset Management is the set of business practices that join financial, contractual and inventory functions to support life-cycle management and strategic decision making for an IT environment. IT Assets are defined using the ITS Department’s Asset Management policy. For example (without limiting the foregoing), switches, routers and computers are assets. Keyboards and mice are not considered assets.

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Date Duration of


Management of Software Licensing

and Hardware Maintenance Agreements

January 1, 2018


Regular

Service Description: This service ensures the Municipality is in compliance with all software licensing requirements that the ITS Department is responsible for supporting and maintaining. This service also ensures that the appropriate hardware renewal / maintenance agreements of critical IT infrastructure are in place.



Service Level

Application Management and

Support

January 1, 2018


Regular

Service Description: Application Management and Support is a service that manages and maintains software applications throughout their lifecycle. This includes installation, maintenance and upgrades, troubleshooting, end-user support and basic usability assistance. The following is a list of software applications included in this Agreement as of the Effective Date.

• Keystone • Keystone in Motion • Microsoft Office Suite • FirePro • Laserfiche Server • Laserfiche Forms • Laserfiche Client • Laserfiche Web • eGenda • Adobe Acrobat • Veeam Backup and Recovery • Neptune Nsight (Water) • iTron FCS (Water) • WorkTech • Hach JobCal

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Service Level

• Panda Antivirus • ArcMap • CheckPoint Mobile • SQL Server 2008 • Microsoft Exchange • Microsoft Outlook Web Access • Exchange Active Sync • VMWare • Windows IIS



Service Level

Network Monitoring January 1, 2018


Regular

Service Description: This service monitors the performance and availability of critical IT infrastructure and services allowing the ITS Department to proactively respond to service disruptions.



Service Level

IT Security January 1, 2018


Regular

Service Description: IT Security Services are defined as systems or processes which attempt to mitigate or prevent unauthorized access to computers, networks and/or data. This could be in the form of privacy and confidentiality policies, employee education and training or IT systems or services which attempt to limit the exposure to the unauthorized access, use, disclosure, disruption, modification, inspection, recording or destruction of information.

• Email Security Filtering • Network Perimeter Security (Firewall) • Anti-virus Software • Secure Data Destruction and Equipment Recycling • Incident Response • Intrusion Prevention System • Ransomware Early Detection and Notification • Secure Remote Access • Basic URL and Application Filtering

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Service Level

IT Disaster Recovery Plan

January 1, 2018


Regular

Service Description: A disaster recovery plan is a documented process or set of procedures to recover and protect critical IT infrastructure in the event of a failure or a disaster. This is not to be confused with a Business Continuity Plan or a Continuity of Operations Plan. This service is required for the effective management of critical IT infrastructure and services.



Service Level

Server virtualization January 1, 2018


Regular

Service Description: Server virtualization enables more efficient use of IT resources by consolidating the number of physical servers within an organization. It allows physical resources to be better utilized by sharing such resources across multiple virtual server instances based on the performance requirements of each virtual server.



Service Level

User Account Management

January 1, 2018


Regular

Service Description: Add / Modify / Disable / Remove User Accounts across various IT systems to ensure appropriate access to IT systems and services is maintained. This service also ensures accounts are appropriately assigned to employees while ensuring that the necessary security controls are in place.

- User Account Management for up to 90 accounts

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Service Level

Email Account Management

January 1, 2018


Regular

Service Description: Add / Assign / Modify / Disable / Remove Email Accounts as required to support the email communication requirements of the Municipality.

- Email Account Management for up to 110 accounts.



Service Level

File Server / Storage Management

January 1, 2018


Regular

Service Description: File Server / Storage Management is the process of maintaining or increasing the performance of data storage resources and protecting the integrity of data which is stored on the Municipality’s IT data storage infrastructure. This includes capacity planning, performance management, reliability of access to data and data backup.



Service Level

Printer/Scanner/Plotter Support

January 1, 2018


Regular

Service Description: This service includes setup, installation and troubleshooting of the Municipality’s printers, scanners or plotters. Where required, this service will also facilitate the coordination of third parties to ensure printers, scanners and plotters are functioning as expected.

- Unlimited number of Printers/Scanners/Plotters

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Service Level

Desktop Support January 1, 2018


Regular

Service Description: This service is responsible for the setup, installation, maintenance, testing, troubleshooting and overall management of laptop and desktop computers within the Municipality.

- Desktop Support for up to 65 computers.



Service Level

Server Support January 1, 2018


Regular

Service Description: This service is responsible for the setup, installation, maintenance, testing, troubleshooting and overall management of the Municipality’s physical or virtual server infrastructure.

- Server Support for 4 physical servers. - Server Support for 6 virtual servers.



Service Level

Network Support January 1, 2018


Regular

Service Description: This service is responsible for the setup, installation, maintenance, testing, troubleshooting and overall management of the Municipality’s network infrastructure such as routers, switches, firewalls, and wireless access points.

- Network Support for 25 devices.

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Service Level

Voice over IP (VoIP) Telephony Services

January 1, 2018


Regular

Service Description: This service is responsible for the development, application and deployment of network based telecommunication services for the purpose of transmitting voice, video, fax or data. VoIP replaces traditional analog phone systems with digital technologies that leverage existing network infrastructure.

- Voice over IP (VoIP) Telephony Services for 2 phone systems



Service Level

Mobile Device Management /

Cellular Account Management

January 1, 2018


Regular

Service Description: This service is responsible for the overall administration and management of mobile devices and cellular enabled mobile devices such as, tablets, smart phones and mobile internet devices (rocket hubs, cellular enabled Wi-Fi routers).

- Mobile Device Management / Cellular Account Management of up to 45 devices.



Service Level

Remote Access (VPN)

January 1, 2018


Regular

Service Description: A remote access service is any combination of hardware or software to enable users to remotely access internal corporate network or server services in a secure manner. This service allows the ITS Department to enable and support the Municipality in providing its employees remote access to internal IT resources.

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Service Level

After-Hours IT Emergency Support

January 1, 2018


Regular

Service Description: This is a service that provides the Municipality access to IT support outside of regular office hours for IT related emergencies. IT Emergencies are defined as, any IT related failure or disruption to network or servers that causes a significant impact on the work flow of its users.



Service Level

Laserfiche Business Process Automation

(Basic)

January 1, 2018


Regular

Service Description: This service leverages Laserfiche Electronic Document Management software to transform manual processes into automated workflows. ITS will examine and document existing Municipality identified manual processes to then develop an automated workflow within the Laserfiche software platform. This service requires business process analysis, software development and quality assurance testing. The Municipality has requested that some basic tasks be automated:

• Accounts Payable process • Contracts and Agreement tracking and notification process

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SCHEDULE “B”

OPTIONS MENU

This is a list of Services that can be added to the Service Agreement using the Change Order process in section 6 of the Agreement. This list is not meant to be all inclusive of every service the ITS Department can provide. If a service is not listed below, please contact the Director of ITS. This list does not contain a specific description for each Service as it is meant to promote conversation as the requirements and expectations may vary depending on the Municipality. A description will be developed to outline the requirements and expectations of the service.

• Electronic Records Management • Security Cameras • IT Policy Development • Content Management • Application Development • Analytics and Data Management • Report Writing • Technology Training • Intrusion Detection / Prevention • Security Assessments and Audits • Network Design • AODA Compliance Audit and Reporting • Information Architecture • Intranet Services • Consulting • IT Strategic Planning • Audio / Visual Components

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SCHEDULE “C”

CHANGE ORDER

Pursuant to section 6 of the Information Technology Services Agreement (hereinafter, the “Agreement”) entered into and duly executed by the Parties on ____________ the Parties hereby agree to the following Change Order:

1. Schedule “A” of the Agreement is hereby amended to add the following IT services:

a. _____________.

b. _____________.

c. _____________.

2. The provision of the IT services identified in section 1(a) […etc.] shall commence on

________ and continue for the remainder of the Term of the Agreement or until ______________.

3. In addition to the Base Cost set out in section 10(a) of the Agreement, the Municipality

shall pay to the County ____________ for the provision of the services identified in section 1(a) […etc.]. The aforementioned sum shall be added to the Municipality’s December 31, _______, invoice, in accordance with section 10(c) of the Agreement.

THE MUNICIPALITY OF THE CORPORATION OF THE MIDDLESEX CENTRE COUNTY OF MIDDLESEX

____________, Chief Administrative Officer ______________, Director of ITS I have delegated authority to bind the I have delegated authority to bind the Corporation Corporation

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SCHEDULE “D”

REGULAR SERVICE LEVEL GUIDELINES Support Hours

ITS support staff will be available for Service Desk and Emergency inquiries during the following hours:

Classification Hours of Service

Normal Hours Monday through Friday, 8:00 AM to 5:00 PM EST, not including statutory holidays

Afterhours (Emergency) All incidents outside of the above normal hours fall into the afterhours (emergency) category. The availability of afterhours ITS services are outlined in the Middlesex ITS Emergency Support Guidelines

Priority Definitions

Below are guidelines and examples for each priority level. Priority 1 (Urgent) Priority 2 (High) Priority 3 (Medium) Priority 4 (Low)

Mission-critical system or service is down.

Mission-critical secondary system is down.

Non-mission-critical system is down and a workaround is available.

Service request that does not require immediate attention.

Productivity Stopped. Staff can’t perform their work. (e.g. Internet is down, local network is unavailable)

High Impact to Productivity. Staff can perform only a small portion of their work. (e.g. Server failure, primary business software unavailable, ex. financial system unavailable).

Medium Impact to Productivity. Staff can perform most of their work, but some daily tasks are impacted. (e.g. Printer isn’t working, there are other working printers nearby)

Low Impact to Productivity. Staff can perform all of their normal daily tasks. (e.g. Adjusting printer settings)

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Response Times

Response Times by Priority:

Priority Initial Response Resolution Time and

Reporting

Contact Person

Response Time

Resolution Time Reporting

1 – Urgent

Normal Hours

Service Desk 15 Minutes 4 Hours ITS Manager and ITS Director


2 – High

Normal Hours

Service Desk 1 business hour

5 business hours

ITS Manager


3 – Medium

Normal Hours


12 business hours



4 – Low

Normal Hours


24 business hours



May 09, 2018 Page 29 of 29


Being a by-law approving and ratifying a Severance and Development Agreement between Sarah Stevens as the “Owner” and the Municipality of Middlesex Centre as the “Municipality” for land legally described as Lot 46 and Part Lots 45, 61 and 62, PL 55, as in 826891 in the Municipality of Middlesex Centre, County of Middlesex, being the whole of PIN 09660-0130 (LT) (126 Arthur Street, Komoka) WHEREAS The Municipal Act, 2001, S.O. 2001, c. 25 as amended authorizes a municipal council to enter into agreements; AND WHEREAS Sarah Stevens owns certain land that she wishes to develop s described in Schedule “A” of the Severance and Development Agreement hereto attached;

AND WHEREAS the Council of the Municipality of Middlesex Centre deems it necessary to enter into an agreement with Sarah Stevens to specify the provision of the development works; THEREFORE the Council of the Municipality of Middlesex Centre enacts as follows: 1. THAT the Agreement for Severance and Development attached hereto be approved

and ratified; 2. AND THAT the Mayor and Clerk be authorized to execute the attached Agreement

on behalf of the Municipality of Middlesex Centre. Passed this 9th day of May, 2018.


_____________________________ Ann Wright, Clerk

May 09, 2018 Page 1 of 14

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SEVERANCE AND DEVELOPMENT AGREEMENT THIS AGREEMENT made in triplicate this day of , 2018. B E T W E E N:

MUNICIPALITY OF MIDDLESEX CENTRE

(the “Municipality”)

OF THE FIRST PART; -and-

SARAH STEVENS (the “Owner”)

OF THE SECOND PART;

WHEREAS:

A. The Owner warrants that she is the registered Owner of the lands described in Schedule “A” attached hereto (hereinafter the “Lands”);

B. The Owner submitted a Consent Application dated November 13, 2017 (hereinafter the

“Consent Application”) to the Municipality to create two (2) residential lots, legally described as Part of Lots 46 and 62, PL 55, as in 826891, being Part 1 on Reference Plan 33R-20088, in the Municipality of Middlesex Centre, County of Middlesex, being part of PIN 09660-0130 (LT) (hereinafter the “Retained Lot”) and Part of Lots 41, 46, 61 and 62, PL 55, as in 826891, being Part 2 on Reference Plan 33R-20088, in the Municipality of Middlesex Centre, County of Middlesex, being part of PIN 09660-0130 (LT) (hereinafter the “Severed Lot”), respectively, each with a lot frontage of approximately 13.7 metres along Arthur Street, a side yard setback of 1.2 metres, and and a lot area of 800 square metres (0.08 hectares);

C. The Municipality approved the Consent Application on December 20, 2017 (hereinafter

“Consent B-32/17”), subject to a number of conditions to be fulfilled on or before December 20, 2018, including a condition that a Minor Variance be in full force and effect, and that the Owner enter into a Development Agreement with the Municipality, to be registered against the title of the Lands, to address among other matters: all financial, legal, planning and engineering matters including but not limited to payment of the Municipality’s engineering, legal and planning review costs, entrance locations and construction, works within the road allowance, lot grading and drainage, building envelopes, relocation of electrical services as well as any road restoration associated with the development, all to the satisfaction of the Municipality;

D. The Owner applied for and was granted an unconditional Minor Variance (hereinafter “Minor Variance Application A-18/17”) for relief from the Middlesex Centre Comprehensive Zoning By-law 2005-005 in order to recognize an interior side yard setback deficiency and a minimum lot frontage deficiency that would result from Consent B-32/17;

E. When the Owner and the Municipality have entered into this Agreement and subject to the fulfilment of the remainder of the conditions of Consent B-32/17, on or before December 20, 2018, the Municipality shall issue a Certificate of Consent and may at that time issue a building permit subject to approval of building plans; and

F. The registration of this Severance and Development Agreement on title of the Lands, as defined herein, is authorized by subsections 53(12) and 51(25-26) of the Planning Act, RSO 1990, c P 13, as amended or replaced (the “Planning Act”).

NOW THEREFORE THIS INDENTURE WITNESSETH that in consideration of the payment of the sum of TWO DOLLARS ($2.00) from each party to the other and for other good and valuable consideration, including the mutual covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, the parties hereto covenant and agree as follows: Incorporation of Recitals 1. The above recitals are true and are hereby incorporated into this Severance and

Development Agreement (hereafter, this “Agreement”) by reference.

May 09, 2018 Page 2 of 14

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Conditional Approval of Development 2. The Municipality approves the development of the Lands in accordance with plans and

specifications attached hereto as Schedule “B”, subject to the covenants in this Agreement.

Installation of Works and Facilities 3. The Owner covenants to provide, construct, and install, as set out and provided for in

Schedule “B” and to the satisfaction of the Municipality, the works and facilities more particularly described in Schedule “B” (hereinafter, the “Works and Facilities”) which will be constructed, installed and maintained by the Owner at absolutely no expense to the Municipality.

4. For the purposes of sections 5, 7, 12, 17, 18, 19, 20, 21 and 24 of this Agreement the term “Works and Facilities” includes the works described in sub-paragraphs 8(n) and 8(o), in addition to those works described in Schedule “B”.

Responsibility for the Cost of the Works and Facilities 5. For greater certainty, the Owner covenants and agrees to be responsible for one

hundred percent (100%) of the total cost for completion of the Works and Facilities. In the event that the Owner breaches this paragraph 5, or any other provision of this Agreement, in any manner whatsoever, the provisions of the Municipal Act, 2001, S.O. 2001, c. 25, as amended or replaced (hereafter, the “Municipal Act”) apply and, in addition to any other remedy the Municipality may have, the Municipality may recover the costs it incurs as a result of the Owner’ breach, in a like manner as municipal taxes.

Development Charges 6. The Development Charges By-law of the Municipality applies to the development of the

Lands and the Owner shall pay development charges in accordance with Municipality’s By-Law No. 2017-133, as amended or replaced.

Compliance with Law 7. The Owner shall:

(a) Be one hundred percent (100%) responsible for ensuring that the installation and construction of the Works and Facilities complies with all applicable Federal, Provincial and Municipal laws, statutes, regulations, by-laws and codes of conduct; and

(b) Be responsible for obtaining, at one hundred percent (100%) its own risk and cost,

any and all approvals necessary for the installation and construction of the Works and Facilities prior to the commencement of construction, including without limitation, approvals required by the Environment Assessment Act, R.S.O. 1990, c. E.18, as amended or replaced, the Environmental Protection Act, R.S.O. 199, c. E.19, as amended or replaced, and any applicable Conservation Authority.

Additional Specific Covenants 8. Without limiting the covenants and obligations set out elsewhere in this Agreement, the

Owner covenants: Contractors and Agents (a) To be responsible for the oversight, supervision, direction, work and service of all

contractors and/or agents of the Owner which perform work or services on behalf of the Owner in furtherance of this Agreement and to ensure that all work and services performed by their respective contractors and/or agents conforms to the requirements of this Agreement. Any failure by any contractor and/or agent of the Owner to perform work or services to the standard required for the Owner by this Agreement shall constitute a breach of this Agreement by the Owner.

Engineering Drawings (b) To provide engineering drawings for approval by the Municipal Engineer,

inclusive of detailed designs and specifications demonstrating details of all the Works and Facilities to be constructed, including without limitation, all grading,

May 09, 2018 Page 3 of 14

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stormwater management, sediment erosion control, easements, servicing, entrance details, road allowance widening, pavement widening, utility construction and any other work required by this Agreement.

Water Service Works (c) To extend, construct and connect water service laterals and appurtenances

(including without limitation, valves, valve chambers, service connections) from the existing municipal watermain on or under Arthur Street to the easterly limit of the Retained Lot, as provided for and set out in Schedule “B”.

(d) To cut and cap at the watermain the existing water service extending from the municipal watermain on or under Arthur Street to the easterly limits of the Severed Lot, as provided for and set out in Schedule “B”.

(e) To extend, construct and connect water service laterals and appurtenances (including without limitation, valves, valve chambers, service connections) from the existing municipal watermain on or under Arthur Street to the easterly limit of the Severed Lot, as provided for and set out in Schedule “B”.

(f) The Owner’s retained engineer shall provide to the satisfaction of the Municipal

Engineer all applicable updated as-constructed engineering drawings detailing the construction of the water service from the existing municipal watermain on or under Arthur Street to the easterly limit of the Retained Lot, the removal of the existing water service extending from the municipal watermain on or under Arthur Street to the easterly limit of the Severed Lot, and the construction of the water service from the existing municipal watermain on or under Arthur Street to the easterly limit of the Severed Lot, which shall form part of Schedule “B” of this Agreement.

(g) The Owner agrees to be responsible for one hundred percent (100%) of the total

cost for completion of the Works and Facilities referred to in sub-paragraphs 8(c), (d) and (e), failing which, the provisions of the Municipal Act apply, and in addition to any other remedy the Municipality may have, the Municipality may recover the costs it incurs as a result of the Owner’s breach in a like manner as municipal taxes, as confirmed by section 5 of this Agreement The parties acknowledge and agree that the following additional provisions apply to the completion of the Works and Facilities described in sub-paragraphs 8(c), (d) and (e):

i. The Municipality’s Water By-law 2018-028, as amended or replaced

(“Water By-law”), and the in force Ontario Building Code Act, 1992, S.O 1992, c. 23, as amended or replaced, including all in force regulations thereto (collectively, the “Ontario Building Code”), apply to the Owner’s completion of the Works and Facilities and the Owner warrants to adhere to each of their respective provisions when installing the Works and Facilities.

ii. The water service laterals and appurtenances (including without

limitation, valves, valve chambers, service connections) constructed on or under Arthur Street, once approved by the Municipal Engineer, may be assumed by the Municipality, at the discretion of the Municipal Engineer, by written notice and shall become infrastructure of the Municipality following formal assumption by the Municipality.

iii. All water service laterals and appurtenances (including without

limitation, valves, valve chambers, service connections) installed in accordance with Schedule “B”, shall be installed to the satisfaction of the Owner’s retained engineer, and the Municipal Engineer, provided however, that approval by the Municipal Engineer does not relieve the Owner and the Owner’s retained engineer from their responsibility for any errors or omissions in engineering specifications or installation/construction of the Works and Facilities. The Owner’s retained engineer shall provide a certificate, signed and stamped, to the Municipal Engineer confirming his or her engineering approval of all as constructed Works and Facilities. The Municipal Engineer may rely on the stamped certificate of the Owner’s retained engineer in determining satisfaction with the works. The Owner’s engineer shall be responsible for the engineering of the works referred to in sub-paragraphs 8(c), (d) and (e), and the Owner remains responsible for construction and maintenance of said works.

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iv. No connection of any water service laterals and appurtenances may be made to a pre-existing Municipal water distribution system without the prior written approval of the Municipal Engineer, which approval shall not be given unless and until the Owner’s retained engineer has provided to the Municipal Engineer:

1. a certification report to the effect that all new water service

laterals and appurtenances, private watermains, service extensions and appurtenances thereto, have been tested in accordance with all applicable current Standards including but not limited to Middlesex Centre’s Infrastructure Design Standards, American Waterworks Association, etc., and are ready for operation;

2. a certification report to the effect that all new water service laterals and appurtenances, private watermains, service extensions and appurtenances thereto, have been disinfected and that chlorine residuals are all in accordance with all applicable current Standards including but not limited to Middlesex Centre’s Infrastructure Design Standards, American Waterworks Association, etc. Such certification is to be accompanied by bacteria and chlorine residual test results from a qualified laboratory which are satisfactory to the Municipal Engineer; and,

3. certification that all new water service laterals and

appurtenances, private watermains, service extensions and appurtenances thereto, are ready for operation.

v. All water service and watermain testing and procedures for testing of

chlorine residual and pressure tests shall be witnessed by the Municipal Operating Authority (presently the Municipality) or it’s designate. The Owner shall reimburse the Municipality for all costs associated with the Municipality’s attendance and witnessing of the above noted testing.

Sanitary Sewer Works

(h) To extend, construct and connect sanitary sewers from the existing sanitary sewers under Arthur Street to the easterly limit of the Retained Lot, as provided for and set out in Schedule “B”.

(i) The Owner’s retained engineer shall provide to the satisfaction of the Municipal Engineer all applicable updated as-constructed engineering drawings detailing the construction of sanitary sewer works from the existing sanitary sewers under Arthur Street to the easterly limit of the Retained Lot, which shall form part of Schedule “B” of this Agreement.

(j) To inspect via CCTV, the existing sanitary sewer works to the Severed Lot to

ensure that the existing sanitary sewer connection is fit for use and can accommodate the construction of a single-detached dwelling on the Severed Lot, to the satisfaction of the Owner’s retained Engineer and the Municipal Engineer. The Owner’s retained engineer shall provide a certificate, signed and stamped, to the Municipal Engineer confirming that the existing sanitary private drain connection to the Severed Lot is fit for use and can accommodate the construction of a single-detached dwelling on the Severed Lot. The Municipal Engineer may rely on the stamped certificate of the Owner’s retained engineer in determining fitness of the sanitary private drain connection to the Severed Lot and its ability to accommodate the construction of a single-detached dwelling on the Severed Lot.

(k) The Owner agrees to be responsible for one hundred percent (100%) of the total

cost for completion of the Works and Facilities referred to in sub-paragraphs 8(h) and (j), failing which, the provisions of the Municipal Act apply, and in addition to any other remedy the Municipality may have, the Municipality may recover the costs it incurs as a result of the Owner’s breach in a like manner as municipal taxes, as confirmed by section 5 of this Agreement The parties acknowledge and agree that the following additional provisions apply to the Works and Facilities described in sub-paragraphs 8(h) and (j):

i. The Municipality’s Discharge of Waste into the Public Sewage Works

By-law 2017-060, as amended or replaced (“Wastewater By-law”),

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the Municipality’s Infrastructure Design Standards, and the Ontario Building Code, apply to the Owner’s installation to the Works and Facilitates and the Owner warrants to adhere to each of their respective provisions when installing the Works and Facilities.

ii. The sanitary sewer works constructed on or under Arthur Street, once approved by the Municipal Engineer, may be assumed by the Municipality, at the discretion of the Municipal Engineer, by written notice and shall become infrastructure of the Municipality following formal assumption by the Municipality.

iii. All sanitary sewers installed in accordance with Schedule “B” shall be

installed to the satisfaction of the Owner’s retained engineer, and the Municipal Engineer, provided however, that approval by the Municipal Engineer does not relieve the Owner and/or Owner’s retained engineer responsibility for any errors or omissions in engineering specifications and construction/installation of the Works and Facilities. The Owner’s retained engineer shall provide a certificate, signed and stamped, to the Municipal Engineer confirming his or her engineering approval of the as constructed works. The Municipal Engineer may rely on the stamped certificate of the Owner’s engineer in determining satisfaction with the works. The Owner’s engineer shall be responsible for the engineering of the works referred to in sub-paragraphs 8(h) and (j) and the Owner remains responsible for construction and maintenance of said works.

iv. No connection of any sanitary sewer works may be made to pre-

existing Municipal sanitary sewer systems without the prior written approval of the Municipal Engineer, which approval shall not be given unless and until the Owner’s retained engineer has:

1. provided to the Municipal Engineer a certification report to the

effect that all new sanitary service works have been tested in accordance with current Middlesex Centre Infrastructure Design Standards and are ready for operation;

2. provided to the Municipal Engineer a sewer video inspection report and disk (DVD) for all sanitary sewers accompanied by a written report from the inspection company following connection of all new private drain connections;

3. confirmed to the Municipal Engineer that all new sanitary

sewer works have been flushed and cleaned and if deemed necessary by the Municipal Engineer in his/her discretion, has undertaken further video inspection following connection of all new private drain connections;

4. confirmed to the Municipal Engineer that the new sanitary

sewer works are in compliance with the current Municipal Infrastructure Design Standards; and

5. certified to the Municipal Engineer that all new sanitary service

works are ready for operation following connection of all new private drain connections.

v. All sanitary sewer testing and procedures shall be witnessed by the

Municipal Operating Authority (presently the Municipality) or its designate. The Owner shall reimburse the Municipality for all costs associated with the Municipal Engineer’s attendance and witnessing of the above noted testing.

Grading and Restoration of Highways

(l) To ensure that all highways of the Municipality affected by works installed or

constructed on or under highways of the Municipality are restored to their original state and graded to permit surface water to run off from all areas and from adjoining properties so as to reach either road gutters, municipal drains, ditches or natural water courses in accordance with Schedule “B”, as approved by the Owner’s retained engineer and the Municipal Engineer. The Owner’s retained engineer shall provide a certificate, signed and stamped, to the Municipal Engineer, certifying that the final grading and restoration of the highway conforms with Schedule “B” and the current Municipality Infrastructure Design Standards.

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The Owner shall be responsible for one hundred percent (100%) of the cost of the work described in this sub-paragraph 8(l), failing which, the provisions of the Municipal Act apply, and in addition to any other remedy the Municipality may have, the Municipality may recover the costs it incurs as a result of the Owner’s breach in a like manner as municipal taxes, as confirmed by section 5 of this Agreement

Utilities

(m) To arrange to have all necessary electrical, telephone, natural gas, and other

utilities, public or private authorities having jurisdiction, design and install in locations approved by the Municipality and at no expense to the Municipality, all necessary electrical, telephone, natural gas, and other utilities all of which are to be installed underground. The Owner acknowledges and agrees that their obligations pursuant to this Agreement to construct, install and maintain the Works and Facilities includes the replacement or repair of any Works and Facilities that are damaged or altered in connection with the installations pursuant to this sub-paragraph 8(m). In addition, the Owner acknowledges and agrees to enter into any additional or other agreements necessary in order to give effect to this sub-paragraph.

Future Development of the Lands

(n) To, following the issuance of the Certificate of Consent, and as a condition of

obtaining a building permit by the Municipality for the development of the Retained Lot,

i. install and connect a private watermain and/or service extension on or

under the Retained Lot;

ii. install and connect a private sanitary sewer system on or under the Retained Lot;

iii. grade the Retained Lot upon completion of development the Retained

Lot; and

iv. construct a road entrance off of Arthur Street to the Retained Lot, in accordance with plans and drawings to be submitted and approved by the Municipality, in its sole and absolute discretion, prior to the issuance of a building permit for the construction of said works. The Owner agrees to be responsible for one hundred percent (100%) of the total cost for completion of the work referred to in this sub-paragraph 8(n), failing which, the provisions of the Municipal Act apply, and in addition to any other remedy the Municipality may have, the Municipality may recover the costs it incurs as a result of the Owner’s breach in a like manner as municipal taxes, as confirmed by section 5 of this Agreement.

(o) To, following the issuance of the Certificate of Consent, and as a condition of obtaining a building permit by the Municipality for the development of the Severed Lot,

i. install and connect a private watermain and/or service extension on or under the Severed Lot;

ii. install and connect a private sanitary sewer system on or under the Severed Lot;

iii. grade the Severed Lot upon completion of development of the

Severed Lot; and

iv. upgrade or relocate, if necessary, the road entrance off of Arthur Street to the Severed Lot, to the satisfaction of the Municipality,

in accordance with plans and drawings to be submitted and approved by the Municipality, in its sole and absolute discretion, prior to the issuance of a building permit for the construction of said works. The Owner agrees to be responsible for one hundred percent (100%) of the total cost for completion of the work referred to in this sub-paragraph 8(o), failing which, the provisions of the Municipal Act apply, and in addition to any other remedy the Municipality may have, the Municipality may recover the costs it incurs as a result of the Owner’s breach in a like manner as municipal taxes, as confirmed by section 5 of this Agreement

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Mud and Debris Clean-up; Dust Suppression

9. The Owner covenants and agrees that it is responsible for all mud and debris tracked onto roadways from vehicles entering or leaving construction sites and for all dust generated during construction. The Owner shall, upon verbal and/or written request by the Municipality immediately proceed with clean-up operations at their expense. Should the Owner fail to clean-up as directed, the Municipality will complete the cleaning at the Owner’ expense by drawing on the security set out in paragraph 10 below. In addition or in the alternative, the Municipality may add the full cost or any part of the cost incurred by the Municipality or its authorized agents to perform or complete the clean up to the tax roll of the lands and collects the expense in like manner as municipal taxes. To eliminate dust, the Owner may be required to apply dust suppressants, covering stock piles of top soil with tarps or applying ground cover to the areas that have been stripped and left undeveloped at the direction of the Municipal Engineer or his/her designate.

Security 10. The Owner covenants and agrees to provide to the Municipality, prior to the execution of

this Agreement by the Municipality, an unconditional and irrevocable letter of credit (hereinafter the “Letter of Credit”) in favour of the Municipality from a financial institution approved by the Municipality in the amount of eight thousand and eighty-one dollars and thirty-two cents ($8,081.32) such amount being one hundred percent (100%) of the cost of the works and facilities on Lands owned by the Municipality. The Owner shall ensure that the aforementioned Letter of Credit is kept in full force and effect and that it will pay all premiums for the said letter of credit as they become due. The Letter of Credit may be drawn upon by the Municipality at its discretion to repair or address any deficiency or breach of the Owner related to this Agreement and will only be released upon one hundred percent (100%) of the Works and Facilities being completed by the Owner to the satisfaction of the Municipality.

Time for Completion 11. The Owner covenants and agrees to complete the Works and Facilities required to be

completed herein on or before December 20, 2018, and to provide proof of completion of the said Works and Facilities to the satisfaction of the Municipality in its sole discretion. Without limiting the foregoing, the proof required shall include but is not limited to a survey, engineering certification, architectural (including landscape architectural) certification and/or any other type of certification.

Maintenance of Works and Facilities

12. The Owner covenants to maintain to the satisfaction of the Municipality and at the sole

risk and expense of the Owner any and all of the Works and Facilities. Such obligation does not apply to any Works and Facilities which have been formally assumed by the Municipality by written notice. In the event that the Owner fails or neglect to provide such maintenance to the satisfaction of the Municipality, or in the event of any failure, malfunction or unauthorized alteration to the Works and Facilities, the Municipality is hereby authorized to enter upon the Lands without notice to the Owner in order to make all necessary repairs and perform all necessary maintenance, the cost of which shall be borne and paid by the Owner, failing which the provisions of the Municipal Act shall apply and the Municipality may recover the expense incurred in so doing by action or by adding the expense to the tax roll of the lands and collecting the expense in like manner as municipal taxes.

Registration of Agreement 13. The Parties acknowledge and agree that, following execution by the Parties, this

Agreement shall forthwith be electronically registered on the title to the Lands by the Owner, at the sole risk and expense of the Owner, and that the Owner hereby charges the Lands with the performance of this Agreement. The Owner shall provide the Municipality with proof of registration.

14. The Parties acknowledge and agree that, following the issuance of the Certificate of Consent, the Owner shall ensure that this Agreement is registered on title to the Severed Lot and the Retained Lot, at the sole risk and expense of the Owner. The Owner shall provide the Municipality with proof of registration.

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Priority of Agreement

15. The Owner hereby agrees that if at the time of registration of this Agreement there are any encumbrances on the title to the Lands held by any party other than the Municipality, then the Owner shall arrange for the discharge of such encumbrances from title. In the alternative, the Owner shall, prior to the registration of this Agreement, obtain a postponement and consent in favour of the Municipality for each encumbrance to this Agreement’s priority on title of the Lands.

Future Owners 16. In the event that the Owner sells the Lands, or following the issuance of the Certificate of

Consent, sells either the Severed Lot or the Retained Lot, the Owner shall include in any Agreement of Purchase and Sale a requirement that the buyer of the Lands, the Severed Lot or the Retained Lot, as the case may be, sign an Acknowledgement, to the satisfaction of the Municipality, acknowledging that the obligations of the Owner under this Agreement run with the Lands, the Severed Lot or the Retained Lot, as the case may be, and that the buyer, in signing the Agreement of Purchase and Sale, agrees to be bound by the continuing obligations of the Owner under this Agreement with respect to the lands purchased.

Responsibility and Indemnity 17. The Owner expressly acknowledges and agrees that the development of the Lands, the

Severed Lot and/or the Retained Lot, as the case may be, including but not limited to the installation and construction of the Works and Facilities, which for the purposes of this section includes the installation and construction of the works described in sub-paragraphs 8(n) and 8(o) as confirmed by section 4 of this Agreement, is entirely and solely at her own risk without liability or responsibility of the Municipality.

18. Without limiting the foregoing, the Owner expressly agrees to release and the Owner

expressly agrees to indemnify, defend and completely hold harmless the Municipality, its Councillors, officers, employees, legal counsel, agents and contractors from and against any and all suits, judgments, claims, demands, expenses, actions, causes of action, duties, assessments, fees, penalties, liabilities, losses and costs (including without limitation, legal expenses on a solicitor-client basis and for any claim for lien made pursuant to the Construction Lien Act (Ontario)) and for any and all liability for:

(a) damages to any property, including property other than the Lands;

(b) any direct, indirect, special or consequential damages; and

(c) any injury to any person (including death) however caused; which in any manner arise out of or are in any manner related to this Agreement, the development of the Lands, the Severed Lot and/or the Retained Lot, as the case may be, and/or the installation and construction of the Works and Facilities, which for the purposes of this section includes the installation and construction of the works described in sub-paragraphs 8(n) and 8(o), as confirmed by section 4 of this Agreement.

Insurance Owner Insurance 19. Forthwith upon execution of this Agreement, the Owner shall provide the Municipality

with insurance policies from the Owner supplied by an insurance broker/provider licenced to provide insurance in Ontario, which provides coverage limits of not less than Five Million Dollars ($5,000,000.00) and names the Municipality as an additional insured from and against personal injury/bodily harm (including death), property damage, errors and omissions, and contractual liability arising from this Agreement, which arise out of the installation/construction and maintenance of the Works and Facilities to be performed pursuant to this Agreement. In addition, such insurance policies shall contain a cross liability and severability of interest clause, and endeavor to provide for a minimum of thirty (30) days written notice of cancellation. The Owner shall upon the request of the Municipality, and in any event, prior to the commencement of any work, provide a copy of the certificate of insurance and other documentation confirming that the premiums for the above mentioned insurance policies of the Owner shall continue indefinitely and shall be renewed year on year thereafter to provide coverage for the Owner’ continued maintenance obligation with respect to the Works and Facilities.

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Contractor/Agent Insurance 20. Forthwith upon execution of this Agreement, the Owner shall require any contractor

and/or agent providing services or work in relation to the Works and Facilities to provide the Municipality with an insurance policy supplied by an insurance broker/provider licenced to provide insurance in Ontario, which provides coverage limits of not be less than Five Million Dollars ($5,000,000.00) for each of the contractor(s) and/or agent(s) and names the Municipality as additional insureds from and against personal injury/bodily harm (including death), property damage, errors and omissions, contractual liability (from this Agreement), employer’s liability, employee benefits liability and non-owned auto liability which arise out of the installation and construction of the Works and Facilities to be performed pursuant to this Agreement. In addition, such insurance policies shall contain a cross liability and severability of interest clause, and endeavor to provide for a minimum of thirty (30) days written notice of cancellation. The contractor(s) and/or agent(s) shall upon the request of the Municipality, and in any event, prior to the commencement of any work, provide a copy of the certificate of insurance and other documentation confirming that the premiums for the abovementioned insurance policies have been paid and that such policies are in full force and effect. Such insurance policies of contractors and/or agents of the Owner retained for construction of the Works and Facilities shall continue until all of the Works and Facilities are constructed to the satisfaction of the Municipality.

Retained Engineer Insurance 21. The Owner further warrants that their respective retained engineer carries Professional

Liability Insurance in the amount of at least one million dollars ($1,000,000.00) and that it will require its retained engineer to provide a copy of the certificate of insurance and other documentation to the Municipality confirming that the premiums for the above mentioned insurance has been paid and that such policy is in full force and effect with respect to coverage for the engineering work related to the Works and Facilities addressed in this Agreement.

WSIB Clearance

22. Upon execution of this Agreement, the Owner shall arrange for a Certificate of

Clearance from the Workplace Safety and Insurance Board (“WSIB”) for any contractor and/or agent stating that all assessments or compensations payable have been paid and all the requirements of the WSIB have been complied with. From time to time and when requested, the Owner will be required to provide a certificate of clearance from the WSIB to the Corporation from any contractor and/or agent. Such Certificate of Clearance shall indicate that the contractor and/or agent and any subcontractors have complied with the requirements of the WSIB and are in good standing in the books of the WSIB.

Work Standards and Compliance with Laws 23. The Owner shall ensure that all work and maintenance completed on property owned by

the Municipality is carried out in a manner that is in conformity with the Occupational Health and Safety Act, R.S.O. 1990, Ch. O.1, as amended or replaced, and other legislation or requirements. The Municipal Engineer shall provide an “Authorization to Proceed with Construction” and give the Owner a copy that must be on site at all times and available upon request. The Owner shall require that the any contractor and/or agent must complete the form “Registration of Constructors and Employers Engaged in Construction” and it must be on site and available upon request.

24. The Owner shall ensure that the contractor(s)’ and/or agent(s)’ employees and subcontractors perform the work and services required to complete the Works and Facilities to the degree of care, skill and diligence of a professional contractor as defined by normal industry practice and further, that at all times the contractor(s) and/or agent(s) as well as their subcontractors and employees are in compliance with all Federal, Provincial and Municipal laws, statutes, regulations and by-laws. All certificates of training must be available upon request of the Municipality.

Entire Agreement 25. This Agreement, including its schedules, constitutes the entire agreement between the

Parties with respect to the development of the Lands, including any and all other Site Plan Control Agreements which may have been registered against title to the Lands. This Agreement, inclusive of its schedules, replaces and/or supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, between the Parties concerning the development of the Lands and the Parties hereby acknowledge that there are no representations, warranties or other agreements between the Parties in connection with the subject matter of this Agreement except as specifically set out in this Agreement and its schedules. No Party has been induced to enter into this

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Agreement in reliance on, and there will be no liability assessed, either in tort or contract, with respect to, any warranty, representation, opinion, advice or assertion of fact, except to the extent it has been reduced to writing and included as a term in this Agreement. Except as amended herein, the terms of this Agreement shall remain in full force and effect.

Amendment and Waiver 26. No amendment, discharge, modification, restatement, supplement, termination or waiver

of this Agreement or any section of this Agreement is binding unless it is in writing and executed by the Parties to be bound. No waiver of, failure to exercise, or delay in exercising, any section of this Agreement constitutes a waiver of any other section (whether or not similar) nor does any waiver constitute a continuing waiver unless otherwise expressly provided.

Enurement

27. This Agreement shall enure to the benefit of and is binding upon the Parties and their

respective heirs, executors, administrators, estate trustees, trustees, personal or legal representatives, successors and assigns.

Severability 28. Each section of this Agreement is distinct and severable. If any Section of this

Agreement, in whole or in part, is or becomes illegal, invalid, void, voidable or unenforceable in any jurisdiction by any court of competent jurisdiction, the illegality, invalidity or unenforceability of that Section, in whole or in part, will not affect: (a) the legality, validity or enforceability of the remaining Sections of this Agreement,

in whole or in part; or

(b) the legality, validity or enforceability of that Section, in whole or in part, in any other jurisdiction.

Voluntary Agreement

29. The Parties warrant that this Agreement is voluntary, that none of the Parties are under any legal disability and that each Party has had an opportunity to seek the advice of independent legal counsel with respect to this Agreement.

Governing Law

30. This Agreement is governed by and is to be construed and interpreted in accordance with the laws of the Province of Ontario and the laws of Canada applicable in that Province.

Counterparts and Electronic Endorsement

31. This Agreement may be executed and delivered by the Parties in one or more counterparts, each of which will be an original and each of which may be delivered by facsimile, e-mail or other functionally equivalent electronic means of transmission, and those counterparts will together constitute one and the same instrument.

[ONE (1) ENDORSEMENT PAGE FOLLOWS]

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IN WITNESS WHEREOF the Parties have hereunto set their hands and seals or caused to be affixed their corporate seals under the hands of their duly authorized officers, as the case may be.

SARAH STEVENS

Address for Service: Per: _____________________________________ 126 Arthur Street Sarah Stevens Komoka, ON N0L 1R0

MUNICIPALITY OF MIDDLESEX CENTRE Per: _____________________________________ Address for Service: Al Edmondson, Mayor Municipality of Middlesex Centre Municipal Offices Per: _____________________________________ 10227 Ilderton Road Ann Wright, Clerk R.R. #2 Ilderton, ON N0M 2A0 We have authority to bind the Corporation.

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SCHEDULE “A”

Lot 46 and Part Lots 45, 61 and 62, PL 55, as in 826891 in the Municipality of Middlesex Centre, County of Middlesex, being the whole of PIN 09660-0130 (LT).

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SCHEDULE “B” No. Drawing Name & No. Prepared By: Date: 1 Water Servicing Plan Driven Engineering Inc. March 26, 2018

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A bylaw to adopt and confirm all actions and proceedings of the Council of the

Municipality of Middlesex Centre at the Council meeting held on May 9, 2018 WHEREAS Section 5 (3) of The Municipal Act, Chapter, S.O. 2001, c. M.25 as amended, states that a municipal power, including a municipality’s capacity, rights, powers and privileges under section 9, shall be exercised by by-law unless the municipality is specifically authorized to do otherwise;

NOW THEREFORE the Council of the Municipality of Middlesex Centre enacts as follows: 1) THAT the actions of the Council of the Municipality of Middlesex Centre at its

meeting held on May 9, 2018, in respect to each report, motion, resolution or other action passed and taken by the Council at its meeting is hereby adopted, ratified and confirmed, as if each resolution or other action was adopted, ratified and confirmed by its separation by-law.

2) THAT the Mayor and proper officers of the Municipality of Middlesex Centre are

hereby authorized and directed to do all things necessary to give effect to the said action, or obtain approvals, where required, and, except where otherwise provided, the Mayor and the Clerk are hereby directed to execute all documents necessary in that behalf and to affix the Corporate Seal of the municipality to all such documents.

3) AND FURTHER THAT this by-law shall become effective and shall come into force

at the time of passing. Passed this 9th day of May, 2018.


_____________________________ Ann Wright, Clerk

May 09, 2018 Page 1 of 1

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