master shared services agreement

THIS AGREEMENT made this day of e r A.D. 2012.

BETWEEN:

TOWN OF OKOTOKS

a municipal corporation within the meaning of theMunicipal Government Act, R.S.A. 2000, Chapter M -26

the " town ")

and-

MUNICIPAL DISTRICT OF FOOTHILLS NO. 31

a municipal corporation within the meaning of theMunicipal Government Act, R. S.A. 2000, Chapter M -26

the "M. D. ")

MASTER SHARED SERVICES AGREEMENT

WHEREAS pursuant to Section 54 of the Municipal Government Act R. S.A. 2000

Chapter M -26, a municipality may provide any service that it provides within its own boundariesin another municipality with the agreement of that other municipality;

AND WHEREAS the Councils of the Town and the M. D. determined in the Joint

Planning Agreement for the Town and the M. D. that a formula and methodology for the costsharing of soft and hard services be established in a master agreement;

AND WHEREAS the Town and the M. D. wish to share costs relating to the delivery ofagreed upon soft and hard services on a fair and equitable basis;

AND WHEREAS `fair and equitable' will mean that one municipality is not subsidizing theother municipality;

AND WHEREAS this agreement will be based on services provided. and received and

not the ability to pay;

AND WHEREAS this agreement will be based on a solid partnership including opencommunication and no `after the fact' surprises;

AND WHEREAS there will be no discrimination regarding services available and thecost of such services to Town and M. D. residents;

AND WHEREAS this agreement will include collaborative arrangements that will not

have cost sharing implications between the Town and the M.D.;

AND WHEREAS the purpose of future agreement amendments is to enhance thepartnership between the two municipalities;

NOW THEREFORE in consideration of the mutual covenants, terms and conditions

contained herein, the parties hereto agree as follows:

1 DEFINITIONS

1. 1 In this agreement unless the context otherwise requires

a) " Agreement" means this Master Shared Services Agreement.

b) " Chief Administrative Officers" (CAOs) means the Municipal Managers of theTown and the M. D.

c) " Fire Services Agreement" means the separate agreement between the Townand the M. D. for which the Town provides fire services to the M. D.

d) " Inter- Municipal Committee" means the committee of three councillors andthe CAO each from the Town and the M. D.

e) " Joint Planning Agreement" means the agreement adopted by the Town andthe M. D. on January 18, 2010 to create a long term integrated developmentmanagement strategy for the Town and the M. D. and protocols for successfuljoint planning.

f) " Police" means the Royal Canadian Mounted Police assigned to the Townand the M. D. and the Town and M. D. Community Peace Officers.

g) ' Services' means the services provided by the M. D. and the Town to theirresidents as identified and defined in Article 5.

2 SCHEDULES

2. 1 The following Schedules are expressly incorporated into and form part of thisAgreement:

Schedule "A" Master Shared Services Agreement ReportSchedule "B" Fire Services Agreement

3 TERM and AMENDMENT

3. 1 This Agreement shall be binding on the parties on the date that it is signed by bothparties.

3.2 There is no fixed termination date to this Agreement. After December 31, 2012, either

party may provide written notice to the other party of its desire to negotiate and amendthe terms and conditions of this Agreement at any time. Upon issuance and receipt ofthis notice, the parties agree that they will consider and negotiate any such proposed

amendments in good faith and will follow the process set out in Article 19. If a mutuallyagreeable amendment cannot be reached, either party may terminate the Agreement inaccordance with Clause 4. 1.

3.3 Clauses 3. 1 and 3.2 do not apply to the Fire Services Agreement.

4 TERMINATION OF AGREEMENT UPON NOTICE

4. 1 If either the M. D. or the Town wish to terminate this Agreement at any time afterDecember 31, 2012, they may do so by giving the other two year's written notice oftermination or a mutually agreed upon lesser notice period.

4.2 In the event that the Town or the M. D. terminates this Agreement in accordance with this

Article 4, the M. D. will only be obligated to pay the M. D. share of the costs to the Town inaccordance with this Agreement as at the effective date of termination of this

Agreement, calculated on a pro -rated basis.

4.3 Clauses 4. 1 and 4.2 do not apply to the Fire Services Agreement.

5 SERVICES

The Town and the M.D. hereby agree upon the principles that they will employ topartner, collaborate and /or cost share in providing the following services to their

residents. Each service is defined with the shared approaches for each service

identified.

5. 1 Potable water:

Potable water' shall be defined to be potable water services provided by either the Townor the M. D.

a) The cost of exploring other sources of water will be shared equitably by all partiesinvolved.

b) The Town and the MD will determine cost sharing for capital and operating costsprior to providing potable water to either party.

5.2 Sanitary sewer: Sanitary sewer' shall be defined to be domestic or commercial sewer services providedby either the Town or the M. D.

a) The cost of exploring regional or sub - regional sanitary sewer systems will be sharedequitably by all parties involved.

b) The Town and the MD will determine cost sharing for capital and operating costsprior to providing sanitary sewer service to either party.

5.3 Storm water:

Storm water' shall be defined to be storm sewer for domestic or commercial purposes.

a) The Town and the MD shall collaborate regarding future developments upstream ordownstream from the Town in the planning, engineering and design of storm water

systems. This collaboration will address the volume and quality of storm water. Theintent is to ensure that developments are designed to maintain storm ' pre -

development water flows on the property.

5.4 Roads and transit: Roads and transit' shall be defined to include road networks, pathways and trail

systems, and subsidized public transit.

a) Road networks

The MD and Town administration will meet in the spring of each year to review eachmunicipality' s long range transportation plan and address specific projects plannedfor future years that may impact traffic patterns, volumes and types of traffic in bothmunicipalities.

b) Pathways and trail systems

The requirement for pathways and trail systems shall be negotiated on a per

development basis. Cost sharing will depend on the type of development.

c) Public transit

The MD and the Town shall address future changes to public transit together with theunderstanding that, in the event of subsidization, both municipalities will cost share

this program under parameters to be determined at that time.

5.5 Fire:

Fire services' shall be defined to be the provision of firefighting and fire protectionservices including emergency first response and fire prevention.

a) The Town shall continue to provide fire services under a new agreement effectiveJanuary 1, 2011 to December 31, 2017 per Schedule B.

5.6 Police:

Police' shall be defined as the provision of protective services to the Town and the M. D.

by the Royal Canadian Mounted Police and Community Peace Officers, and services

provided by the Community Peace Officers including traffic control, bylaw enforcement,

animal control, safety co- ordination, education for the public and public relations.

a) MD related costs of the RCMP detachment will be recognized as such and will not bepart of the 90% Town funding calculation determined by senior governments.

b) The municipal enforcement departments of the Town and the MD shall determine ifanimal control can be co- ordinated, monitored and controlled more effectivelytogether.

c) The Community Peace Officers for the MD and the Town shall, on an on -going basis, identify and implement opportunities to co- ordinate their services.

d) The Town and MD shall investigate and negotiate, if possible, a joint traffic control

agreement respecting 338 Avenue from Highway 2A east to 32 "d

Street East and on32nd

Street East from 338 Avenue south to Crystal Shores Road.

i .

e) The Town and the MD shall investigate and negotiate, if possible, an agreement that

enables Community Peace Officers from the Town and the MD to conduct theirenforcement activities in a strategic manner.

5.7 Mutual aid:

Mutual aid' shall be defined as a sharing of resources when the resources of amunicipality are not adequate to cope with an emergency or disaster and anothermunicipality provides their resources to assist in addressing the emergency or disaster.

a) Mutual aid will be provided in accordance with the Calgary South

Emergency /Disaster Mutual Assistance Agreement, Fire Suppression /Rescue MutualAid Agreement and Mutual Aid Bylaw 40/89.

b) The rates shall be updated in the Fire Suppression /Rescue Mutual Aid Agreementbetween the Town and the MD.

5. 8 Disaster:

Disaster' shall be defined as an event that results in serious harm to the safety, healthor welfare of people or in widespread damage to property.

a) To improve co- ordination of disaster services, the Town shall invite the MD to be part

of the Town Emergency Operation Center ( EOC) when it activates its EOC. The

Town and the MD shall each amend their Municipal Emergency Plans accordingly.

b) The Town and the MD shall annually confirm to each other by April 30 that theirMunicipal Emergency Plan was updated and provide a summary of the revisions.

5. 9 911 and Dispatch:

911 and Dispatch' shall be defined as the 911 call answer and fire dispatch services

operated by the Foothills Regional Emergency Services Commission.

a) The Town and the MD both contribute to this service. No changes for the future are

recommended.

5. 10 School Sites:

School sites' shall be defined as the land provided by municipalities for construction ofschools as requested by school authorities in the jurisdiction.

a) The Inter - municipal Development Plan shall require the MD and the Town be bothincluded in discussions with the school authorities when future school sites arediscussed and,

b) Community use of facilities and playing fields shall be discussed in the samemanner.

5. 11 Solid Waste Management:

Solid waste management' shall be defined as the collection, processing and storage of

waste materials including garbage collection, transfer stations, landfill site and recyclingdepots.

a) Garbage collection: The MD shall continue to contract third party garbage collection services forsubdivisions, such as Sandstone, where the MD provides other utilities. Upon anyreview of garbage collection services by the MD the MD will notify the Town and theTown may submit a proposal for garbage collection services in the MD.

b) Landfill site:

The Town and the MD shall continue to partner in the Foothills Regional Servicespartnership under the current agreement for landfill services.

c) Recycling depot: The MD shall share the costs of the Town recycling center per Section 4.7 of theMaster Shared Services Agreement Report in Schedule A.

5. 12 Library: Library services' shall be defined as a library facility staffed by personnel trained toprovide services which consist of accessing reading materials, audio, video and

continuing education programs.

a) The MD shall share the costs of operating the Town library per Section 4.8 of theMaster Shared Services Agreement Report in Schedule A.

5. 13 Medical Services: Medical services' shall be defined as providing or assisting in providing facilities and

equipment that will enhance the provision of health care.

a) The Town and the M. D. shall pursue opportunities to enhance health services in theirarea. At a minimum, health services shall be discussed by the IMC once per year aswell as in the annual review of the JPA.

5. 14 Economic Development/Business Services: Economic development' shall be defined as the process that influences growth and

restructuring of a local economy to enhance the economic well being of a community. It

includes the initiatives of industrial development, retention and expansion of businesses, tourism marketing and promotion and community development.

a) The Town and the M. D. shall continue to collaborate informally regarding economicdevelopment in their municipalities and the region and will identify and discusstogether future economic development initiatives.

b) The Town and the M. D. shall continue to pursue the Alberta Foothills Industrial

Corridor Membership Agreement.

5. 15 Cemetery: Cemetery services' shall be defined as services providing traditional forms of intermentand also cremation as an alternative interment option. a) The M. D. shall share the costs of operating the Town cemetery as per Section 4. 11

of the Master Shared Services Agreement Report in Schedule A.

b) The Town and the MD shall cooperate to identify and address Town cemeteryexpansion.

D

5. 16 Recreation:

Recreation services' shall be defined as:

Indoor facilities including aquatic centers, arenas and curling rinks and theprograms provided in these facilities; and

Outdoor facilities including sports fields, campgrounds and parks.

a) The M. D. shall share the costs of operating the Town indoor recreation facilities asper Section 4. 12 of the Master Shared Services Agreement Report in Schedule A.

b) The MD shall replace the current Recreation Cost Sharing Agreement with theMaster Shared Services Agreement.

c) The costs of operating Town outdoor facilities shall not be shared at this time. The

Town and the MD agree to review this issue within the next 3 years to determine ifthis decision should be amended.

5. 17 Family & Community Support Services: Family and Community Support Services' shall be defined as programs and services

that are preventive in nature to promote and enhance well -being among individuals, families and communities.

a) The Town shall continue to administer FCSS programs that can be accessed byM. D. residents.

b) The M. D. shall provide funding to FCSS programs operated by the Town based onM. D. resident usage and, in some cases, more than the M. D. user ratio if Provincial

funding to the M. D. is available as determined by the M. D. FCSS Committee.

5. 18 Social Services:

Social Services' shall be defined as services, other than medical services, that are

intended to assist a person with a disability or social disadvantage in society on a levelcomparable to that of a person who does not have such a disability or disadvantage.

a) The Town and the M. D. will continue to identify and pursue opportunities to enhancesocial services for the municipalities. This initiative fits with the responsibilities of the

Town and M. D. FCSS but, further, at a minimum, social services needs and

opportunities shall be discussed by the IMC once per year as well as in the annualreview of the JPA.

5. 19 Seniors Housing: Senior's Housing' shall be defined as senior citizens' lodge accommodation in

accordance with the Alberta Housing Act.

a) The current funding for senior's housing is determined by the Provincial Governmentand therefore for the purposes of this agreement there are no changes to the current

funding regime.

0* 14")

5.20 Affordable Housing: Affordable Housing' shall be defined as housing provided for low to moderate incomefamilies, individuals, seniors and persons with special needs.

a) The Town and the M. D. shall continue to identify opportunities for affordable housingfor the municipalities.

5.21 Other Cultural and Community Facilities: Cultural and Community Facilities' shall be defined as facilities used to provide cultural, historical and entertainment experiences for the community as well as the ongoingpreservation of historic buildings.

a) Unless otherwise agreed by the Town and the MD, the M. D. shall not share the

operating costs of -the Foothills Centennial Center, Performing Arts Center & Art

Gallery or any other facility or program that - provides cultural, historical and

entertainment experiences.

b) The M. D. agrees to contribute funds towards new capital projects as agreed by theparties.

6 COST SHARING PARAMETERS

6. 1 Fire:

The parameters to cost share fire services provided by the Town to the M. D. are

provided in the Fire Services Agreement in Schedule " B ".

6.2 Recycling Depot: The cost sharing ratio will be based on the average of the cost sharing percentages forfire, recreation and library services. Specifics of sharing the costs to operate theRecycling Depot are in Section 4.7 of the Master Shared Services Agreement Report inSchedule "A ".

6. 3 Library: The cost sharing ratio will be based on the number of library cardholders. Specifics of

sharing the costs to operate the Library are in Section 4.8 of the Master Shared ServicesAgreement Report in Schedule "A ".

6.4 Cemetery: The cost sharing ratio will be based on the average of the cost sharing percentages forfire, recreation and library services. Specifics of sharing the costs to operate theCemetery are in Section 4. 11 of the Master Shared Services Agreement Report inSchedule "A ".

6.5 Recreation:

The cost sharing ratio will be based on the number of users for specific recreationprograms. Specifics of sharing the costs to operate the recreation indoor facilities andprograms are in Section 4.12 of the Master Shared Services Agreement Report in

Schedule "A ".

6.6 Capital Expenditures:

The M. D. shall have input on all major capital decisions of $ 100,000.00 or greater made

by the Town respecting the recycling depot, library, cemetery and recreation servicesand the M. D. may negotiate with the Town a modified cost sharing arrangement of acapital expenditure. This clause will not apply to fire services.

7 TRANSITION

7. 1 The M. D. recognizes that the implementation of the Master Shared Services Agreement

may result in additional revenues to the Town. The M. D. anticipates that these

additional revenues will not result in extraordinary increases to the total costs but ratherthat the Town' s net operating cost of the respective service will be reduced and that thetotal cost will remain consistent with costs prior to the revised cost sharingarrangements.

7.2 The cost sharing of recycling, library and cemetery and additional costs for recreationshall be phased in over a three year period starting in 2012. The new cost sharingarrangement for fire services shall be effective January 1, 2011.

a) 2012

i) Fire

The M. D. shall pay the Service Fee as calculated in the Fire ServicesAgreement.

ii) Recreation

The M. D. shall pay the amount payable under the current cost sharingagreement ($443,500) plus 113 of the costs over $443,500 calculated by usingthe recreation cost sharing formula contained in this Agreement.

iii) Recycling DepotThe M. D. shall pay 113 of the MD share of the eligible costs calculated by usingthe recycling depot cost sharing formula contained in this Agreement.

iv) LibraryThe M. D. shall pay 113 of the MD share of the eligible costs calculated by usingthe library cost sharing formula contained in this Agreement.

v) CemeteryThe M. D. shall pay 113 of the MD share of the eligible costs calculated by usingthe cemetery cost sharing formula contained in this Agreement.

b) 2013

i) Fire

The M. D. shall pay Service Fee as calculated in the Fire Services Agreementusing the revised ( reduced) area due to the Heritage Point Fire Hall becomingoperational. In addition to the above, the M. D. shall contribute to the Town the

difference between the amount for Fire Services as calculated using the currentDistrict Service Area and the amount calculated using the revised DistrictService Area to be determined when the Heritage Pointe Fire Hall isoperational.

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ii) Recreation

The M. D. shall pay the amount payable under the current cost sharingAgreement ($443,500) plus 213 of the costs over $443,500 calculated using therecreation cost sharing formula contained in this Agreement.

iii) Recycling DepotThe M. D. shall pay 213 of the MD share of the-eligible costs calculated usingthe recycling depot cost sharing formula contained in this Agreement.

iv) LibraryThe M. D. shall pay 213 of the MD share of the eligible costs calculated usingthe library cost sharing formula contained in this Agreement.

v) CemeteryThe M. D. shall pay 2/3 of the MD share of the eligible costs calculated by usingthe cemetery cost sharing formula contained in this Agreement.

c) 2014

The M. D. shall pay 100% of the eligible costs calculated using the cost sharingformulas in this Agreement for Recreation, Recycling Depot, Library and Cemeteryand 100% of the Service Fee calculated using the cost sharing formula in the FireServices Agreement with the reduced District Service Area.

I

8 AGREEMENTS BETWEEN THE TOWN AND M. D.

8. 1 The following agreements between the Town and M. D. will continue to remain in force inaddition to this Agreement: a) Calgary South Emergency /Disaster Mutual Assistance Agreement ( 1991)

b) Fire Suppression /Rescue Mutual Aid Agreement (2010)

c) Mutual Aid Bylaw 40/89 ( 1989)

d) Fire Hall Ownership & Management Agreement ( 1992)

e) Highway 2A Industrial Corridor Partnership Agreement (2010)

f) Water & Sanitary Sewer Agreement re Lot 1, Block 1, Plan 0413364 and Lot 1, Block2, Plan 0512700 (2006)

g) Frank Lake Pipeline Maintenance Agreement ( 1998)

h) Sandstones Springs Servicing Agreement (2010)

i) Marigold Library System Agreement (2000)

8.2 The following agreements will be replaced by this Agreement and will be terminatedeffective on the date that this Agreement is signed by both parties:

a) Recreation Cost Sharing Agreement (2005)

8.3 The Fire Services Agreement dated September 30, 2005 will be replaced with a new

agreement effective January 1, 2011 to December 31, 2017 per Schedule A.

8.4 The ' Fire Hall Ownership & Management Agreement' shall be reviewed on or beforeDecember 31, 2012 to determine if it can be included with this Agreement or the FireServices Agreement.

9 AGREEMENT REVIEW

9. 1 This Agreement will be reviewed at the same time as the JPA is reviewed.

9.2 Annual financial and statistical reports for each of the service areas will be provided to

the CAD's of the Town and MD by April 30 of each year this Agreement is in effect.

9.3 The GAO' s will jointly prepare a report to be presented to the IMC by June 30 of eachyear of this Agreement. This report will provide at a minimum the following information:

a) Statistical data from the previous fiscal year and projected statistics for thecurrent and future years.

b) Financial information from the previous fiscal year and the budget for the currentyear.

c) Summary comments by the CAO' s for each service area.

d) Recommendations to the IMC.

9.4 The IMC will approve a summary report for the annual JPA review by both Councils. JPA, Clause 4. 1. 9)

10 PAYMENT OF GST

10. 1 All amounts payable by the M. D. to the Town hereunder shall be exclusive of any goodsand services tax ( "GST ") payable thereon and the M. D. shall, in addition to the amounts

payable hereunder, pay to the Town all amounts of GST applicable thereon.

11 ALLOCATION OF RISK, INSURANCE AND INDEMNITY

11. 1 The parties agree that Services provided under this Agreement by the Town is at therequest of and on behalf of the M. D. and accordingly all risk and liability, of whatever

nature and kind, arising out of the provision of the Services by the Town to the M. D. under this Agreement shall be borne by the M. D..

11. 2 Except for negligence, the M. D. agrees that neither the Town nor any of its officials, officers, employees, volunteers, Members, representatives, contractors or agents or

anyone else engaged by or on behalf of the Town in the delivery or performance of theServices under this Agreement shall be liable for the manner in which the Services areprovided. The M. D. hereby releases the Town, its officials, officers, employees,

volunteers, representatives, contractors and agents and anyone else engaged by or onbehalf of the Town in the delivery of or performance of the Services under thisAgreement from any and all claims, demands, loss, costs, damages, actions, suits or

other proceedings by whomsoever made, brought or prosecuted, in any manner basedupon the provision of, or any failure to provide, the Services under or attributable to thisAgreement, or delay in providing the Services under this Agreement.

11. 3 Except for negligence, the M. D. agrees to indemnify and save harmless the Town, itsofficials, officers, employees, representatives, elected officials or agents from and

against all claims, demands, loss, costs ( including legal fees on a solicitor and his ownclient basis incurred by or awarded against the Town), damages, actions, suits or other

proceedings by whomsoever made, brought or prosecuted, in any manner based upon, occasioned by or attributable to any action resulting from the Town's performance, purported performance or non - performance of its obligations under this Agreement

including but not limited to the unauthorized use or disclosure of any Records orPersonnel Information. The provisions of this indemnification shall survive the expirationor termination of this Agreement.

11. 4 The M. D. shall have the obligation to defend with all due diligence, at its sole cost, all

claims, demands, loss, costs, damages, actions, suits or other proceedings bywhomsoever made, brought or prosecuted, in any manner based upon, occasioned byor attributable to this Agreement or any action taken or not done under this Agreementarising from the provision of the Services by the Town under this Agreement.

11. 5 Notwithstanding any other provision herein, in the event of negligence on the part of the

Town or any of its officials, officers, employees, volunteers, Members, servants, agents,

and contractors and in carrying out the Town's obligations under the provisions of thisAgreement, the Town agrees to indemnify and save harmless the M. D., its officials, officers, employees, representatives, elected officials or agents from and against allclaims, demands, loss, costs ( including legal fees on a solicitor and his own client basisincurred by or awarded against the M. D.), damages, actions, suits or other proceedingsby whomsoever made, brought or prosecuted, in any manner based upon, occasioned

by or attributable to any action resulting from the Town's performance, purported

performance or non - performance of its obligations under this Agreement including butnot limited to the unauthorized use or disclosure of any Records or Personnelinformation. The provisions of this indemnification shall survive the expiration or

termination of this Agreement.

11. 6 The M. D. during the term of this Agreement, including any renewal thereof, at its ownexpense, will maintain or have maintained with insurers allowed by the laws of theProvince of Alberta to issue insurance policies in Alberta and in forms satisfactory to theTown, acting reasonably, a liability insurance policy for bodily injury ( including death),

001, " 1"),

and property damage in an amount of not less than SIXTEEN MILLION $ 16,000,000.00)

DOLLARS for any one occurrence and must include:

a. the Town as an Additional Insured;

b. a Cross Liability Clause;

c. a broad form Contractual Liability Clause;

d. non -owned Automobile Liability extension which incorporates:

i) " Contractual Liability Endorsement S. E. F. 96 "; and

ii) " Legal Liability for Damage to Hired Automobile Endorsement ";

each of which to be suitably amended to meet the obligations of the M. D. to the

Town in terms of this Agreement.

11. 7 Prior to the commencement of this Agreement, and thereafter by January1St

of each

year of this Agreement, the M. D. shall provide to the Town documentary evidence of. such insurance per Clause 11. 6 and any renewal of such insurance. Failure for anyreason of the M. D. to furnish or have furnished such evidence may be considered abreach of this Agreement allowing the Town, at its sole option, the right to terminate theAgreement.

11. 8 The indemnity set out in Clauses 11. 3 and 11. 5 of this Agreement shall include anyclaim, demand, loss, cost, damage, action or suit that is not covered by insurance or, ifinsured, is under insured.

12. CURE

12. 1 Subject to paragraph 14. 1, in the event that one party fails to properly discharge all of itsobligations pursuant to this Agreement (the "Defaulting Party "), the party not in default ofits obligations ( the " Non- Defaulting Party ") may terminate this Agreement by deliveringnotice to that effect to the Defaulting Party. Such termination shall be subject to a sixty60) day cure period during which the Defaulting Party will be given a reasonable

opportunity to cure the default or to provide evidence satisfactory to the Non - DefaultingParty that all reasonable steps have been taken to cure the default. If the default

continues or remains in existence upon the expiry of the cure period, the Non - DefaultingParty may terminate the Agreement in writing effective upon delivery of written notice tothe Defaulting Party.

13. OBLIGATIONS ON TERMINATION OR EXPIRY OF TERM

13. 1 Within ninety ( 90) days of the effective date of termination of this Agreement the Townshall submit to the M. D., a final invoice for all amounts payable to the Town for theprovision of Services contemplated in this Agreement for the period up to and includingthe effective date of termination which has not previously been invoiced.

091 11141")

14. DISPUTE RESOLUTION

14. 1 Unless specifically described herein to the contrary, the following provisions shall applyto the resolution of conflicts between the parties as they arise: a) The M. D. and the Town agree to utilize all reasonable efforts to resolve any dispute,

whether arising during the term of this Agreement or at any time after its terminationpromptly and in an amiable manner by negotiations between the parties;

b) The M. D. and the Town shall continue to perform their respective obligations duringthe resolution of any dispute or disagreement, including during any period of

mediation and arbitration, unless and until this Agreement is lawfully terminatedaccording to its terms;

c) Initially, the dispute shall be referred to the respective Chief Administrative Officers ofthe M. D. and the Town. The Chief Administrative Officers, or their designates, shall

meet as soon as is reasonably possible after the dispute is referred to them, givingdue regard to the nature and the impact of the issue under consideration;

d) If a dispute cannot be resolved by the parties by mutual agreement within a timeperiod that is reasonably satisfactory to the party raising the issue under

consideration, either party may submit the dispute for mediation. Either party may, on notice to the other party, request that mediation take place and the parties shalltogether select a mediator whose qualifications are appropriate to the matter to bemediated. The mediator shall designate a place for a meeting by the mediator withrepresentatives of the parties. During the mediation process, no action will be takenby either party to commence or continue legal or arbitration proceedings under thisAgreement. The cost of the mediator will be equally shared by the parties. Anymediation which takes place will be strictly confidential. No proposal or concession

made by either party in the course of mediation may be used by either party in anysubsequent proceedings. The mediator may not be called by either party as awitness in any subsequent proceedings. Unless otherwise agreed to in writing, mediation will be in accordance with the procedures of the ADR Institute of Canada, Inc.;

e) Should mediation fail to result in a resolution of the dispute between the partieswithin fifteen ( 15) days after the parties initially attempted to mediate the dispute, either party may submit the dispute for arbitration as provided in Subsection ( f) below. The determination arising out of the arbitration process shall be final andbinding upon the parties;

f) Arbitration shall be conducted in accordance with the following terms:

0

i) The arbitration shall be carried out by a single arbitrator pursuant to the

provisions of this Section;

ii) If the parties are unable to agree on a single arbitrator, the party desiringarbitration shall nominate one ( 1) arbitrator and shall notify the other party inwriting of the nomination. The notice shall set forth a brief description of thematter submitted for arbitration. The other party shall, within ten ( 10) days after

receiving such notice, nominate an arbitrator and the two ( 2) arbitrators shall

select a chairman of the arbitration tribunal to act jointly with them. The parties

will act reasonably and in good faith to select arbitrators who are objective andwho are suitably qualified by education or professional experience to deal withthe matters which are the subject of arbitration. If the nominated arbitrators are

unable to agree on the selection of a chairman within ten ( 10) days after the

second arbitrator is nominated, the parties or either one of them may apply to theAlberta Court of Queen' s Bench to have the chairman appointed;

iii) If the party receiving the notice of the nomination of an arbitrator by the partydesiring arbitration fails with ten ( 10) days to nominate an arbitrator, then the

arbitrator nominated by the party desiring arbitration may proceed alone todetermine the dispute in such manner and at such time as he shall think fit andhis decision shall, subject to the provision of this Agreement, be binding upon theparties;

iv) Any arbitration conducted pursuant to this Agreement shall take place in the Cityof Calgary and, subject to the provisions of this Agreement, the decision of the

arbitrator or arbitrators and chairman as the case may be, or any of the two ( 2) ofthem, in writing, shall be binding upon the parties both in respect of procedureand the conduct of the parties during the proceedings and final determination ofthe issue. Any written award or decision of the arbitrator(s) shall not repeat or

recite any evidence which is proprietary or confidential to either party;

v) The costs of arbitration shall be borne by the parties as may be specified in thearbitrator's decision; and

vi) Except as modified herein, the provisions of the Alberta Arbitration Act, as

amended from time to time, shall govern the arbitration process.

14.2 Except for the purposes of preserving a limitation period or obtaining an appropriateinterim order or remedy where reasonably necessary, unless otherwise agreed to by theparties in writing, it is a condition precedent to the bringing of any legal proceedings thatthe means or procedures in this Article have been used and followed in good faith.

15. FORCE MAJEURE

15. 1 Neither the Town nor the M. D. shall be liable to the other for any failure of or delay in theperformance of its obligations hereunder nor be deemed to be in breach of this

Agreement, if such failure or delay has arisen from " Force Majeure ". For the purposes

of this Agreement, " Force Majeure" means any cause not within the control of the Townincluding, without limitation, interruption of telecommunications, gas, electric or other

utility service, acts of God, strikes, lockouts, or other industrial disturbances, acts of the

public enemy, wars, blockades, insurrections, riots, epidemics, landslides, earthquakes,

OM 11 ,I*)

fires, lightning, storms, floods, high water, washouts, inclement weather, orders or acts

of military authorities, civil disturbances and explosions.

Where the Town or the M.D. is prevented from carrying out its obligations hereunder due toForce Majeure, then it shall, as soon as possible, give notice of the occurrence of such

Force Majeure to the other and shall thereupon be excused from the performance of suchobligations for the period of time directly attributable to the effect of the Force Majeure

16. WAIVER

16. 1 No consent or waiver, express or implied, by either party to or of any breach or defaultby the other party in the performance by the other party of its obligations hereunder shallbe deemed or construed to be a consent or waiver to or of any other breach or default inthe performance of obligations hereunder by such party hereunder. Failure on the part ofeither party to complain of any act or failure to act of the other party or to declare theother party in default, irrespective of how long such failure continues, shall not constitutea waiver by such party of its rights hereunder.

17. UNENFORCEABILITY

7. 1 If any term, covenant or condition of this Agreement or the application thereof to anyparty or circumstance shall be invalid or unenforceable to any extent the remainder ofthis Agreement or application of such term, covenant or condition to a party orcircumstance other than those to which it is held invalid or unenforceable shall not beaffected thereby and each remaining term, covenant or condition of this Agreement shallbe valid and shall be enforceable to the fullest extent permitted by law.

18. ENTIRE AGREEMENT

18. 1 This Agreement constitutes the entire agreement between the parties hereto relating tothe subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties andthere are no general or, specific warranties, representations or other agreements by oramong the parties in connection with the entering into of this Agreement or the subjectmatter hereof except as specifically set forth herein.

19. AMENDMENTS

19. 1 No amendment or alteration of any of the provisions of this Agreement shall take effectuntil such changes are reduced to writing and signed by the parties hereto.

19.2 Subject to paragraph 3.2 the process to amend this Agreement will normally be initiatedat the time this Agreement is reviewed during the annual review of the JPA per Article 9.

20. FURTHER ASSURANCES -

20. 1 The parties hereto and each of them do hereby covenant and agree to do such thingsand execute such further documents, agreements and assurances as may be necessaryor advisable from time to time in order to carry out the terms and conditions of this -- Agreement in accordance with their true intent.

0

21. NOTICES

21. 1 Whether or not so stipulated herein, all notices, communication, requests and

statements ( the " Notice ") required or permitted hereunder shall be in writing. Notice

shall be served by one of the following means:

a) Personally, by delivering it to the party on whom it is to be served at the address set outherein, provided such delivery shall be during normal business hours. Personallydelivered Notice shall be deemed received when actually delivered as aforesaid; or

b) By facsimile or by any other electronic method by which a written or recorded messagemay be sent and a copy may be made of the document from the electronic means ofsending the notice, directed to the party on whom it is to be served at that address setout herein. Notice so served shall be deemed received on the earlier of:

i) upon transmission with answer back confirmation if received within the

normal working hours of the business day; or

ii) at the commencement of the next ensuing business day followingtransmission with answer back confirmation thereof, or

c) By mailing via first class registered post, postage prepaid, to the party on whom it isserved. Notice so served shall be deemed to be received seventy -two (72) hours afterthe date it is postmarked. In the event of postal interruption, no notice sent by means ofthe postal system during or within seven ( 7) days prior to the commencement of such

postal interruption or seven ( 7) days after the cessation of such postal interruption shall

be deemed to have been received unless actually received.

21. 2 Except as herein otherwise provided, Notice required to be given pursuant to this

Agreement shall be deemed to have been received by the addressee on the datereceived when served by hand or courier, or five ( 5) days after the same has been

mailed in. a prepaid envelope by single registered mail to:

the M. D.:

Municipal District of Foothills No. 31

309 Macleod Trail, Box 5605

High River, Alberta

T1 V 1M7

Phone: ( 403) 652 -2341

Fax: ( 403) 652 -7880

Attention: Municipal Manager

0

the Town:

Town of OkotoksP. O. Box 20, Station M5 Elizabeth StreetOkotoks, AlbertaT1 S 11< 1

Phone: ( 403) 938 -8900Fax: ( 403) 938 -7387


M

or to such other address as each party may from time to time direct in writing.

22. HEADINGS

22. 1 The headings in this Agreement have been inserted for reference and .as a matter ofconvenience only and in no way define, limit or enlarge the scope or

as

of this

Agreement or any provision hereof.

23. SINGULAR, PLURAL AND GENDER

23. 1 Wherever the singular, plural, masculine, feminine or neuter is used throughout thisAgreement the same shall be construed as meaning the singular, plural, masculine,

feminine, neuter, body politic or body corporate where the fact or context so requires andthe provisions hereof and all covenants herein shall be construed to be joint and severalwhen applicable to more than one party.

24. ASSIGNMENT

24. 1 This Agreement shall not be assignable by either party to any other person, firm or

corporation without the prior written consent of the other party.

25. ' ENUREMENT

25. 1 This Agreement shall enure to the benefit of and be binding upon the parties hereto andtheir respective successors and permitted assigns.

26. GOVERNING LAW AND SUBMISSION TO JURISDICTION

26. 1 This Agreement shall be governed by and construed in accordance with the laws of theProvince of Alberta and the parties hereto hereby submit to the jurisdiction of the Courtsin the Province of Alberta.

27. SURVIVAL

0

27. 1 The parties acknowledge and agree that the provisions of this Agreement which, by theircontext, are meant to survive the termination of this Agreement or expiry of the Termshall survive the termination of this Agreement or expiry of the Term and shall not bemerged therein or therewith.

IN WITNESS WHEREOF the parties have set their seals and hands of their proper officers in thatbehalf on the day and year first above written.

TOWN OF OKOTOKS MUNICIPAL DISTRICT OFFPfO1H1LLS N0. 31

REEVE

n

MONICIPAL MANAGER

r' ON

Schedule A

Municipal District of Foothills No. 31

Town of Okotoks

Master Shared Services Agreement Report

November, 2011

Ak KA::

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Schedule A


Table of Contents

IExecutive Summary ...................................................................... ............................... 3 '-

2 Project Scope and Methodology .................................................... .............................11

2. 1 Project Scope ...................................................................... ............................... 11

2.2 Methodology ....................................................................... ............................... 11

3 Cost Sharing Principles ............................................................... ............................... 12

4 - Services Addressed ..................................................................... ............................... 13

4. 1 Potable Water ...................................................................... ............................... 13

4.2 Sanitary Sewer ...................................................................... ............................. 15

4.3 Storm Water ........................................................................ ............................... 16

4.4 Roads and Transit ............................................................... ............................... 16

4.5 Emergency and Protective Services .................................... ............................... 17

4.6 School Sites ......................................................................... ............................... 27

4.7 Solid Waste Management ................................................... ............................... 29

4. 8 Library .................................... ............................. 34

4.9 Medical Services ................................................................. ............................... 36

4. 10 Economic Development/Business Services ........................ ............................... 36

4. 11 Cemetery ............................................................................. ............................... 38

4. 12 Recreation ........................................................................... ............................... 40

4. 13 Family and Community Support Services .......................... ............................... 48

4. 14 Social Services .................................................................... ............................... 50

4. 15 Seniors Housing .................................................................. ............................... 50

4. 16 Affordable Housing ........................................................... ............................... 52

4. 17 Other Cultural and Community Facilities ........................... ............................... 52 $

4. 18 General .................................................................................. ............................. 541-

5 Master Shared Services Agreement ............................................ ............................... 55

5. 1 Principles ............................................................................... .............................55

5. 2 Schedules ............................................................................ ............................... 56

5. 3 Term ...................................................................................... .............................56

5. 4 Termination of Agreement upon Notice ............................. ............................... 56

5. 5 Services ............................................................................... ............................... 56

5. 6 Cost Sharing Parameters ..................................................... ............................... 57

5. 7 Transition ............................................................................ ............................... 57

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5. 8 Agreements Between the Town and the M. D ..................... ............................... 58

5. 9 Agreement Review .............................................................. ............................... 58

5. 10 Amendments ....................................................................... ............................... 59

5. 11 Standard Articles ................................................................. ............................... 59

6 Appendices .................................................................................... ............................. 60

6. 1 Capital Contribution Options .............................................. ............................... 60

6.2 Fire Services Cost Sharing Example — 2010 Actual ........... ............................... 62

6.3 Recycling Depot Cost Sharing Example — 2010 Actual ..... ............................... 65

6.4 Library Services Cost Sharing Example — 2010 Actual ..... ............................... 66

6. 5 Recreation Indoor Facilities Cost Sharing Example ........... ............................... 68

6.6 Amortization and Capital Grant Credit Schedule ............... ............................... 69

6. 7 Impact on Financial Contributions by the MD to the Town .............................. 70

6. 8 Agreement Annual Timeline ............................................... ............................... 71

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1 Executive SummarySenior administration, referred to as the CSA group, of the Municipal District ofFoothills (MD) and the Town of Okotoks (Town) have prepared this Master

Shared Services Agreement Report in response to the Action Plan approved as

part of the Joint Planning Agreement (JPA). A significant amount of time and

effort has been given to review services provided by the MD and the Town for thepurpose of improving collaboration in delivering these services and identifyingthe costs of these services that should be shared between the MD and the Town.

Both municipalities recognize the importance of sharing services and workingtogether for the benefit of their residents. The cost sharing principles listed inSection 3 were developed before the detailed discussions started. The first eight

8) principles were taken from the JPA; the other eleven ( 11) were developed as

specific to the cost sharing agreement. The following are some of the keyprinciples:

Share costs relating to the delivery of agreed upon soft and hard serviceson a fair and equitable basis.

Fair and equitable' will mean that one municipality is not subsidizing theother municipality. The agreement will be based on services provided and received and not

the ability to pay.

The agreement will be based on a solid partnership including opencommunication and no `after the fact' surprises.

There will be no discrimination regarding services available and the costof such services to Town and MD residents.

The purpose of future agreement amendments is to enhance the

partnership between the two municipalities. These principles are the foundation of this report and the Master Shared ServicesAgreement.

This report addresses more than cost sharing. There are opportunities for both

municipalities to work together that do not have a cost; these have also been

identified and will be included in the Master Shared Services Agreement. Section

4 provides the detail of each service including: The definition of the service,

Information on how the service is being provided by the MD and theTown,

How these services will be provided in the future, and

Future collaborative initiatives and, if applicable, cost sharing parameters.

The Fire Services Agreement was a priority because it expired in December, 2010. The Town continued to provide fire services while a new agreement was

being developed. A fire services report was presented to the Inter - MunicipalCommittee (IMC) in May, 2011 and Councils prior to completing the master costsharing report and agreement.

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This report provides information. for the Master Shared Services Agreement. The

IMC will be provided opportunity to review this report and amend it, if necessary, prior to recommending it to the Councils. Upon approval of the report by bothCouncils, the Master Shared Services Agreement will be prepared for approval.

The MD currently cost shares fire and recreation services provided by the Town. From a financial perspective, this report recommends that a new separate fire

agreement be approved, that the Recreation Cost Sharing Agreement be amendedand included with the Master Shared Services Agreement and that costs of the

recycling depot, cemetery and library also be shared. The specific

recommendations for each service area are noted as follows:

1. Potable water

a. The cost of exploring other sources of water will be shared equitably byall parties involved.

b. ' The Town and the MD will determine cost sharing for capital andoperating costs prior to providing potable water to either party.

2. Sanitary sewera. The cost of exploring regional or sub - regional sanitary sewer systems will

be shared equitably by all parties involved. b. The Town and the MD will determine cost sharing for capital and

operating costs prior to providing sanitary sewer service to either party.

3. Storm water

The Town and the MD shall collaborate regarding future developmentsupstream or downstream from the Town.

4. Roads and transit

a. Road networks

The MD and Town administration will meet in the spring of each year toreview each municipality' s long range transportation plan and addressspecific projects planned for future years that may impact traffic patterns, volumes and types of traffic in both municipalities.

b. Pathways and trail systems

The requirement for pathways and trail systems shall be determined on a

per development basis. Cost sharing will depend on the type ofdevelopment.

c. Public transit

The MD and the Town shall address future changes to public transit

together with the understanding that, in the event of subsidization, bothmunicipalities will cost share this program under parameters to be

determined at that time.

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5. Fire

The Town shall continue to provide fire services under a new agreement

effective January 1, 2011 to December 31, 2017. The new agreement

provides cost sharing of all costs to operate the Town fire services departmenton a population basis. All equipment will be owned by the Town and theamortization expense of equipment and buildings will be included in the

operating costs to be shared. The MD is establishing a fire hall at HeritagePointe. The projected in- service date is January 1, 2013 at which time the MDfire service area for Town coverage will be reduced.

6. Police

The RCMP and Community Peace Officers are included in this service. Funding from senior governments for the costs of the RCMP services aredifferent for urban and rural municipalities; these funding differences are notrelevant to the Master Shared Services Agreement. Future considerations in

police services are:

a. MD related costs of the RCMP detachment will be recognized as such and

will not be part of the 90% Town funding calculation determined by seniorgovernments.

b. The municipal enforcement departments of the Town and the MD shall

determine if animal control can be co- ordinated, monitored and controlled

more effectively together. c. The Community Peace Officers for the MD and the Town shall, on an on-

going basis, identify and implement opportunities to co- ordinate theirservices.

d. The Town and MD shall investigate and negotiate, if possible, a joint

traffic control agreement respecting 338 Avenue from Highway 2A east to32nd

Street East and on 32 "d

Street East from 338 Avenue south to CrystalShores Road.

e. The Town and the MD shall investigate and negotiate, if possible, an

agreement that enables Community Peace Officers from the Town and theMD to conduct their enforcement activities in a strategic manner.

7. Mutual Aid

a. Mutual aid will be provided in accordance with the Calgary SouthEmergency/Disaster Mutual Assistance Agreement, FireSuppression/ Rescue Mutual Aid Agreement and Mutual Aid Bylaw 40/ 89.

b. The rates shall be updated in the Fire Suppression/ Rescue Mutual AidAgreement between the Town and the MD.

8. Disaster

a. To improve co- ordination of disaster services, the Town shall invite the

MD to be part of the Town Emergency Operations Center (EOC) when itactivates its EOC. The Town and the MD shall each amend their

Municipal Emergency Plans accordingly.

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b. The Town and the MD shall annually confirm to each other by April 30that their Municipal Emergency Plan was updated and provide a summaryof the revisions.

9. 911 and Dispatch

The Town and the MD both contribute to this service. No changes for the

future are recommended.

10. School Sites

Long term planning for school sites, recreational facilities and playing fields isessential and should include all of the municipal and education stakeholders.

Therefore,

a. The Inter - municipal Development Plan should include the requirement

that the MD and the Town be both included together in discussions with

the school authorities when future school sites are being discussed and, further,

b. That community use of facilities and playing fields be discussed in thesame manner.

11. Solid Waste Management

a. Garbage collection

The MD will be contracting garbage collection services for subdivisions, such as Sandstone, where it provides other utilities and will consider

contracting these services from the Town if the rates are competitive. b. Landfill site

The Town and the MD shall continue to partner in the Foothills Regional

Services partnership under the current agreement for landfill services. c. Recycling depot

The MD shall share the costs of the Town recycling center. The cost

sharing ratio will be based on the average of the cost sharing percentagesfor fire, recreation and library services.

12. LibraryThe MD shall share the costs of operating the Town library. The cost sharingwill be based on the ratio of library cardholders.

13. Medical Services

The Town and the MD shall pursue opportunities to enhance health services in

their area. At a minimum, health services shall be discussed by the IMC onceper year as well as included in the annual review of the JPA.

14. Economic Development/Business Services

a. The Town and the MD shall continue to collaborate informally regardingeconomic development in their municipalities and the region and will

consider together future economic development initiatives.

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b. The Town and the MD shall formally continue to develop the Highway 2AIndustrial Corridor Partnership including the Town of High River.

15. Cemeterya. The MD shall share the costs of operating the Town cemetery. b. The Town cemetery is running out of space and the Town needs to acquire

land to expand. The Town and the- MD will work together to address the

future needs of the cemetery. c. Cemeteries will be annually discussed by the IMC.

16. Recreation

a. Indoor facilities

The MD will replace the current Recreation Cost Sharing Agreement withclauses in the Master Shared Services Agreement to share the net costs of

operating the indoor recreation facilities. The cost sharing will be basedon the ratio of users for specific recreation programs.

b. Outdoor facilities

The costs of operating Town outdoor facilities will not be shared at thistime. The Town and the MD agree to review this issue within the next 3

years to determine if this decision should be amended.

17. Family & Community Support Services ( FCSS) a. The Town shall continue to administer FCSS programs that can be

accessed by MD residents. b. The MD shall provide funding to these programs based on MD resident

usage and, in some cases, more than the MD user ratio if Provincial

funding to the MD is available.

18. Social Services

The Town and the MD will continue to identify and pursue opportunities toenhance social services in their respective municipalities. This initiative fits

with the responsibilities of the Town and MD FCSS but, further, at a

minimum, social services needs and opportunities shall be discussed by theIMC once per year as well as in the annual review of the JPA.

19. Seniors HousingThe calculation of the requisition to fund seniors housing which is legislatedby the Province does not represent the actual situation. The Town and the

MD have concluded that since these cost sharing decisions are not in theirpower to make, these financial inequities will be noted but will not be

addressed in the Master Shared Services Agreement and the funding statusquo will continue.

20. Affordable HousingThe Town and -the MD will continue to assess opportunities for affordable

housing in their respective municipalities. Affordable housing will be

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discussed by the IMC once per year as well as included in the annual reviewof the JPA.

21. Other Cultural & Community FacilitiesThe MD does not directly provide these ` soft' services and normallycontributes minimally to the operating costs of providing such services. The

MD will occasionally contribute funds towards capital projects as deemednecessary. The Town, on the other hand, contributes significantly to theoperating and capital costs of these services. The Town recognizes this

difference in philosophy on how these services are operated and funded; therefore, the Town does not expect the MD to cost share the operating costs. This decision will be regularly reviewed during the annual review of theMaster Shared Services Agreement.

Capital Expenditures

Capital expenditures for buildings and equipment are necessary for most of theservices reviewed. The CSA group considered the following options on howthese expenditures would be funded by the MD in a cost sharing agreementAppendix 6. 1):

capital grants from the MD

sharing annual debt paymentsincluding amortization as an operating expense

The decision was to include, in most situations, the amortization expense and longterm debt interest as an eligible expense for cost sharing.

There is also a proviso that the 1ViD will require input into major capital decisionsof $100, 000 or greater and may have the option to negotiate a modified costsharing arrangement of a capital expenditure. With the exception of fire services,

this approach will be used for the recycling depot, library, cemetery andrecreation.

Financial impact

The financial impact of this proposed cost sharing agreement will be an annualpayment from the MD to the Town of $1, 418, 195 using 2010 data; an increase of

511, 305.

Service Provided 2009 2010

Proposed

using 2010data

Emergency & Protective

Fire 364,015 463,390 463,264

Solid waste management

Recycling depots 0 0 117, 198

Library* ** 0 0 131,099

Cemetery 0 0 15, 124

Recreation 443,500 443,500 691,510

Family & community support services

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The fire district service area will be reduced when the Heritage Pointe fire hall

is put into service in 2013 resulting in a reduction in the payment for fire services; a decrease of approximately $ 133, 000 using 2010 data.

2010 data was not analyzed due to immateriality with no change anticipated. The MD pays requisitions to the Marigold Library System, Foothills Regional

Emergency Services Commission, Foothills Regional Services Commission andthe Foothills Foundation which are not included in this table.

Implementation of the Master Shared Services Agreement may result in additionalrevenues to the Town. The MD anticipates that these additional revenues will not

result in extraordinary increases to the total costs but rather that the Town' s netoperating cost of the respective service will be reduced and that the total cost willremain consistent with costs prior to the revised cost sharing arrangements.

Timing of Payments and Transition PeriodCost sharing payments made by the MD to the Town will be paid on a quarterlybasis. Payments for the first three quarters will be based on the current year' s

budget and the final payment will be based on the actual financial information.

The new Fire Agreement, when it is officially approved, will be effective January1, 2011 with full cost sharing effective for 2011. Full cost sharing of the otherservices recommended to be cost shared may not be achieved in the first year ofthe Master Shared Services Agreement. This report does not address a transition

period to full cost sharing. The CSA group is proposing that the Town Mayor, MD Reeve and the CSA group meet to prepare a recommendation for bothCouncils regarding this matter by the tentative deadline of November 14, 2011.

Impact on existing agreementsThe following agreements exist between the MD and the Town:

Calgary South Emergency/ Disaster Mutual Assistance AgreementFire Suppression/ Rescue Mutual Aid Agreement

Highway 2A Industrial Corridor Partnership AgreementRecreation Cost Sharing AgreementWater & Sanitary Sewer Agreement re Lot 1, Block 1, Plan 0413364 andLot 1, Block 2, Plan 0512700

Mutual Aid Bylaw 40/ 89

Fire Hall Ownership & Management Agreement

Fire Services Agreement

Marigold Library System AgreementFrank Lake Pipeline Maintenance Agreement

Sandstones Springs Servicing Agreement

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Total 807, 515 906,890 1,418, 195

Increase compared to 2010 511,305





Implementation of the Master Shared Services Agreement may result in additionalrevenues to the Town. The MD anticipates that these additional revenues will not

result in extraordinary increases to the total costs but rather that the Town' s netoperating cost of the respective service will be reduced and that the total cost will

remain consistent with costs prior to the revised cost sharing arrangements.

Timing of Payments and Transition PeriodCost sharing payments made by the MD to the Town will be paid on a quarterlybasis. Payments for the first three quarters will be based on the current year' s

budget and the final payment will be based on the actual financial information.

The new Fire Agreement, when it is officially approved, will be effective January1, 2011 with full cost sharing effective for 2011. Full cost sharing of the other

services recommended to be cost shared may not be achieved in the first year ofthe Master Shared Services Agreement. This report does not address a transition

period to full cost sharing. The CSA group is proposing that the Town Mayor, MD Reeve and the CSA group meet to prepare a recommendation for both

Councils regarding this matter by the tentative deadline of November 14, 2011.

Impact on existing agreementsThe following agreements exist between the MD and the Town:

Calgary South Emergency/ Disaster Mutual Assistance AgreementFire Suppression/ Rescue Mutual Aid Agreement

Highway 2A Industrial Corridor Partnership AgreementRecreation Cost Sharing Agreement

Water & Sanitary Sewer Agreement re Lot 1, Block 1, Plan 0413364 andLot 1, Block 2, Plan 0512700

Mutual Aid Bylaw 40/ 89



Marigold Library System AgreementFrank Lake Pipeline Maintenance Agreement

Sandstones Springs Servicing Agreement

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The following agreements will be impacted: The Fire Services Agreement has expired and will be replaced with a new

agreement to be effective January 1, 2011 and will be separate from theMaster Shared Services Agreement.

The Fire Hall & Ownership Agreement may continue in its present formbut it should be reviewed at a later date and either referenced in the new

Fire Services Agreement or replaced with respective clauses in the new

Fire Services Agreement.

The Recreation Cost Sharing Agreement will need to be terminated if therecommended cost sharing approach to recreation services is accepted andwill become part of the Master Shared Services Agreement.

Review process

Clause 4. 1. 9 of the JPA states that the JPA is to be reviewed annually at a meetingof the Councils, staff and the IMC. It would be appropriate to review the Master

Shared Services Agreement at this time as well. The CAO' s will jointly prepare areport to be presented to the I1VIC by June 30. The IMC will approve a summaryreport for the annual Joint Planning Agreement review by both Councils.

Recommendations

In conclusion, Section 5 provides a draft of the Master Shared Services

Agreement. The administrations of the MD and the Town recommend that the

Council grant approval to:

a. Proceed to develop the Master Shared Services Agreement as outlined inSection 5 and in accordance with the information presented in this report, and, upon approval,

b. Terminate the Recreation Cost Sharing Agreement between the MD andthe Town dated April, 2005.

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2 Project Scope and Methodology

2. 1 Project Scope

The MD and the Town approved the JPA on January 18, 2010. The followingdirective in that agreement is the focus of this report:

That aformula and methodologyfor the cost sharing ofsoft and hard services beestablished in a master agreement with planned implementation commencingJanuary 1, 2011. Previous development such as Sandstone will have developmentspecific agreements.

Clause 4. 1. 5, JPA

Soft' and ' hard' services are not addressed in the JPA. Clause 2. 1. 9 of the JPA

was used to address the scope of the Master Shared Services Agreement:

The following services may require cost and/ or revenue sharing arrangements tobe determined on a service area basis:

a. Potable water

b. Sanitary sewerc. Storm water

d. Roads and transit

e. Emergency and protective servicesf. School sites

g. Solid waste managementh. Libraryi. Medical services

j. Economic development/business services

k. Cemetery1. Recreation

m. Family and community support servicesn. Social services

o. Seniors housingp. Affordable housing andq. Other cultural and community facilities.'

2.2 MethodologySenior administration from the MD and the Town were given the task of

developing the Master Shared Services Agreement to recommend to the MD andTown Councils for approval. The administrators who participated in this task,

referred to as the Cost Sharing Agreement (CSA) Group were: Harry Riva Cambrin, Municipal Manager, MDRichard Quail, Municipal Manager, Town

Bill Robinson, Municipal Treasurer, MD

Louise Wasylenko, Municipal Treasurer, Town

Harold Johnsrude of Harold Johnsrude Consulting Inc. facilitated the meetings ofthe CSA group. The first meeting of the CSA group was held in June, 2010 with18 meetings held to date.

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Each of the services identified in the scope were discussed by: defining the service, determining how the service is being provided by the MD and the Townand

identifying how these services will be provided in the future.

The Fire Services Agreement was a priority because it expired in December, 2010. The Town continued to provide fire services while a new agreement was

being developed. A fire services report was presented to the IMC and Councils

prior to completing the master cost sharing report and agreement.

The CSA group developed the following process to reach approval of the MasterShared Services Agreement:

a. The MD and Town Administration will prepare a Master Shared Services

Agreement Report (Report).

b. The Report will be presented to the IMC. c. The Report will be amended, if necessary. d. The Report and IMC recommendations will be presented at a joint meeting of

the Councils of each municipality. e. The Report will be reviewed individually by each Council to provide for each

municipality to approve the Report or to request further amendments. f. Legal documents will be prepared to implement the agreement(s) resulting

from the Report when the Report has been accepted by both Councils.

3 Cost Sharing PrinciplesThe following principles were used to develop the Master Shared ServicesAgreement:

Principles from the JPA, Section 13:

a. Understand each other' s growth aspirations by providing full disclosure andfactual information;

b. Respect each other' s point of view and have honest interaction and realistic

expectations;

c. Respect which aspects of development planning and growth are of mutualinterest and which areas are of single jurisdictional interest;

d. Share costs relating to the delivery of agreed upon soft and hard services on aFair and Equitable basis;

e. Support each other in finding mutually beneficial solutions; f. Serve the constituents while respecting the social, economic and infrastructure

capacities of the municipalities;

g. Communicate effectively to clarify any challenges and provide a clear andmutually supportive message to the public and media; and

h. Live within the Carrying Capacity of the landscape.

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Additional principles were developed by the CSA Group specific to the costsharing agreement: i. ` Fair and equitable' will mean that one municipality is not subsidizing the

other municipality.

j. The collective agreement will be ` fair and equitable' but individual services

within the agreement may not necessarily achieve the ' fair and equitable' definition.

k. The agreement will provide sufficient guidance for proper implementation and

consistent interpretation.

1. The agreement will have the ability to evolve over time and to adjust tochange.

m. The process to amend the agreement will be more administrative than

political.

n. The purpose of future agreement amendments is to enhance the partnershipbetween the two municipalities.

o. The agreement will include a mechanism for review and refinement.

p. The agreement will be reviewed periodically to ensure that the goals andprinciples are being achieved.

q. The agreement will be based on services provided and received and not the

ability to pay. r. The agreement will be based on a solid partnership including open

communication and no ` after the fact' surprises.

s. There will be no discrimination regarding services available and the cost ofsuch services to Town and MD residents.

4 Services Addressed

4. 1 Potable Water

4. 1. 1 Definition

Potable water' shall be defined to be potable water services provided by eitherthe Town or the MD.

4. 1. 2 Current Status

a. Metered water

The Town has three potable water agreements; one with the MD, one with

Foothills School Division and one with Christ the Redeemer Catholic Schools.

The agreement with the MD grants the MD permission for potable water to be

provided to the St. James Catholic Church and Holy Trinity Academy andstates the cost sharing arrangement for the provision of these services. Specifics of this agreement are:

Services are restricted to specific properties which are institutional.

These properties are billed directly by the Town. The water rate structure is the same as for similar properties in the

Town.

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b. Bulk water

Bulk water is provided by the Town at a rate /gallon that is the same for allusers. There is no agreement with the MD to provide this service.

4. 1. 3 Future

Both the Town and the MD share the common interest to ' protect the area' s water

supply from a quantity and quality perspective'. ( Clause 1. 4.2, JPA)

a. Exploration

The MD, Town and Town of High River are investigating joint developmentof a sub - regional water system. Phase 1 of this study, Highwood ManagementPlan, is completed to the extent that there is an operational plan approved for

the diversions on the Highwood River. The remaining outstanding item isdefining a monitoring system. Phase 2 is also underway which includes anaudit of the Sheep River and a Groundwater Study of the MD. The MD and

the Town of High River have also agreed in principle to conduct a study of theTown of High River aquifers to determine whether capacity can be increasedthrough storage. The cost of this study will determine if it proceeds.

Other water sources to consider are:

Pipeline from the Bow River utilizing a City of Calgary license to acentral sub - regional water treatment plant.

Pipeline from the City of Calgary. Utilizing recycled water from the Town, Town of High River orCargill.

Explore conjunctive water management strategies

The cost of exploring the above initiatives will be shared equitably by allparties involved.

b. Usage

The Town and the MD will determine cost sharing for capital and operatingcosts prior to providing potable water to either party. The followingsummarizes Town policies and principles regarding utilities:

Per the 2030 plan, the Town is not anticipating to extend servicesoutside of Town boundaries beyond existing agreements. Utilities will be self supporting; i. e. full cost recovery. The utility rate structure will be

primarily demand based, 10% flat rate and 90% consumption is the long term goalpresently it is a 20/80 ratio)

different rates for residential and commercial

15% of service revenues ( Net Operating Income) from water and

sewer utilities will be general revenues to the Town.

The number of utility accounts will increase to 9, 810 in 2017 andremain constant to 2030.

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The Net Operating Income will be increased 5. 5% to $ 1. 19 million in

2017 and remain at that level to 2030.

The EPCOR Operating Contract will be in effect to 2030. The annual contribution to the capital reserve will increase to $2. 85

million in 2017 and remain at that level through to 2030.

The bulk water rate will be slightly higher than bulk water rates in thearea; this will still provide service but may reduce usage.

4.2 Sanitary Sewer

4.2. 1 Definition

Sanitary sewer' shall be defined to be domestic or commercial sewer servicesprovided by either the Town or the MD.

4.2.2 Current Status

The Town provides sanitary sewer services to one area of the MD with anagreement in place for future services to the Sandstone Springs subdivision. The

St. James Catholic Church and Holy Trinity Academy currently receive sanitaryservices. Specifics of this agreement are:

Services are restricted to specific properties which are institutional.

These properties are billed directly by the Town. The sewer rate structure is the same as for similar properties in the Town.

Specifics of the Sandstone Springs subdivision agreement are:

The area is 170 hectares with a maximum of 300 dwellings and a public

school.

The MD is responsible for construction and installation of services from

the service connection to the private property lines. The MD retains ownership and responsibility for repairs and maintenancewithin the MD.

The MD will pay a sanitary sewer connection fee for each subdivisionphase.

The MD will pay the Town a monthly utility charge based on the samerate structure used for Town residents. The volume is measured by ameter specific for the MD.

The MD will bill the MD residents for the sanitary sewer services.

4.2.3 Future

a. Exploration

Sub - regional or regional sanitary sewer systems have been investigated by theCalgary Regional Partnership. These systems would be pipelines from each

of the communities to a central processing facility. The cost of exploring theabove initiatives will be shared equitably by all parties involved.

b. Usage

The Town and the MD will determine cost sharing for capital and operatingcosts prior to providing sanitary sewer to either party. The general Town

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utility policies and principles noted in 4. 1. 3. b. apply to sanitary sewer with theadditional principle:

Sanitary sewer rates for all accounts will be directly linked to waterconsumption.

4.3 Storm Water

4.3. 1 Definition

Storm water' shall be defined to be storm sewer for domestic or commercialpurposes.


There are no existing agreements or collaborative endeavours regarding stormwater.

4.3. 3 Future

Storm water' is not likely a service that will be provided by one municipality tothe other but there will be collaboration between the Town and the MD regardingfuture developments upstream or downstream from the Town. This collaboration

will address the volume and quality of storm water. The intent is to ensure that

developments are designed to maintain storm pre- development water flows on the

property. Currently there is nothing projected for the immediate future butinitiatives may be established to explore sub - regional storm sewer options due toproposed developments with related exploration costs shared equitably by allparties involved.

4.4 Roads and Transit

4.4. 1 Definition

Roads and transit' shall be defined to include:

Road networks

Pathways and trail systems

Subsidized public transit


a. Road networks

i. In the late 90' s, the MD and the Town participated in a joint project to

develop a paved truck route. ii. The Sandstones Springs Servicing agreement requires the MD to pay

4,000 per subdivided lot to the Big Rock Trail fund. b. Pathways and trail systems

Under the Sandstone Springs Servicing agreement, the MD is required toinstall a pathway that will connect to the Town pathway system.

c. Public transit

Public transit is currently provided by the private sector which is notsubsidized by either municipality with the exception of services for senior andspecial needs residents.

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4.4.3 Future

a. Road networks

The MD and Town administration will meet in the spring of each year toreview each municipality' s long range transportation plan and address specificprojects planned for future years that may impact traffic patterns, volumes andtypes of traffic in both municipalities. It will be determined at that time if a

Traffic Impact Study and /or Traffic Modelling will be required before anychanges are finalized and implemented. Changes will include road geometry, road surface and traffic control. The municipality responsible for initiatingand implementing the change will conduct and pay for the traffic modelling. It will be important to determine the long term cost impact of road networkprojects on each municipality but cost sharing decisions will be made on anindividual project basis.

b. Pathways and trail systems

The requirement for pathways and trail systems will be determined on a per

development basis. Cost sharing will depend on the type of development.

c. Public transit

Public transit may be revised in the future to enhance access to the City ofCalgary. This transit may require local government' subsidization. It is

anticipated that MD residents will use this mode of transportation. Therefore,

the MD and the Town will address future changes to public transit together

with the understanding that, in the event of subsidization, both municipalitieswill cost share this program under parameters to be determined at that time.

4.5 Emergency and Protective Services

4.5. 1 Fire

1. Definition

a. Current

Fire Call" means each occasion on which the Town responds to a request

within the District Service Area to provide firefighting and fire protectionservices.

Services" means the provision of prompt, modern and efficient

firefighting and fire protection services available from the Town takinginto account the equipment available to the Town and the level of trainingof the Members at the time the firefighting and fire protection services areprovided; and shall include but not necessarily be limited to, all servicesnormally provided within the municipal boundaries of the Town.

b. Future

Fire Services" means the provision of prompt, modern and efficient

firefighting and fire protection services including emergency first responseand fire prevention services available from the Town taking into accountthe equipment available to the Town and the level of training of theMembers at the time the firefighting and fire protection services are

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provided and shall include, but not necessarily be limited to, all fireprotection services normally provided within the municipal boundaries ofthe Town.

Fire Call" means a call requesting Fire Services within the DistrictService Area made by the 911 call dispatcher.

2. Current Status

The Town provides fire protection to the MD in accordance with a Fire

Services Agreement for the period starting January 1, 2005 to December 31, 2010 with automatic renewal to December 31, 2012 unless notice is given.

Specifics of this agreement are summarized as follows:

All reasonable steps will be taken to control or extinguish fires, handle or

participate in handling any other hazard or emergency normally handledby the Town Fire Services Department. Provision of services is subject to the condition that the Town must be in a

position to provide services without jeopardizing or removing theprovision of services from within the Town.

Adequate levels of skilled personnel are to be maintained.

The Town will assure each firefighting vehicle is properly staffed. The Town will keep and maintain firefighting equipment and replaceequipment as necessary.

MD approval is required for repair costs in excess of $3, 000 except for

emergency repairs.

The cost share of repair costs equal to or greater than $ 10, 000 is to be

negotiated between the Town and the MD.

The cost share of repair costs less than $ 10, 000 is based on the percentage

share of ownership in the respective piece of equipment. The MD pays for costs incurred for contracting or providing specialequipment within the MD service area that is not available to the Town.

Operating costs are shared as follows: 55% of the costs are shared on a

population ratio, 45% of the costs are shared on a three year fire call

rolling average ratio.

Fire fighting equipment is identified in the agreement with the cost sharebetween the Town and the MD identified for each piece of equipment.

There are four equipment items; specifically, aerial truck, pumper, tankerand bush buggy. The Town invoices the MD annually for these services.

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Master Shared Services Agreement Deport

The MD costs for fire services in the Town fire services area for 2007 — 20 10 were:

3. Future

Services will continue to be the same for both the Town and MD.

Service levels will also be similar but, for example, response times mayvary in the MD due to location. The term for the future agreement will be January 1, 2011 to December31, 2017.

The Town will invoice the MD quarterly at the end of each quarter. The

payments for March 31, June 30 and September 30 will each be 25% of

the projected annual service fee based on the fire services budget approved

by the Town. The final payment will be made upon receipt from the

Town with the calculation based on actual per the cost sharing formulaless payments to date.

Service delivery methods will be determined by the Town. The Town or

MD will provide opportunity for discussion of service levels and deliverymethods with the MD prior to implementing changes. The Town will provide the MD all related long range plans, informationon major expenses planned for the future and information on

modifications to services. The MD will provide the Town all related longrange plans.

Two years notice or a mutually agreed lesser period will be provided bythe Town prior to terminating services. The MD will give two years notice or a mutually agreed lesser periodprior to terminating the agreement with the Town to provide fire servicesor amend the service area.

This Fire Services Agreement will be reviewed by the Town and MDadministration in March, 2012 and thereafter no later than January 31 inthe year following a municipal election. Review of fire services in general will be part of the Master Shared

Services Agreement review during the annual Joint Planning Agreementreview by both Councils. ( JPA, Clause 4. 1. 9)

Fire service boundaries will be determined by the most efficient andfastest response time by the Town and Heritage Pointe fire departments. Heritage Pointe fire department response times will be projected on the

assumption that there will be 2417 staffing of four FTE.

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2007 2008 2009 2010

Payments to the Town

Shared operating costs 255,761 284,550 317, 937 401,585

MD specific costs 19, 296 8,317 46,078 61,805

Shared capital costs 18,814 1,140,259 33, 046 0

Total payments to the Town 293, 871 1,433, 126 397,061 463,390

MD debt payments 28, 135 28, 106 28,074 28,038

Total Fire costs in Town area 322,006 1,461,232 425, 135 491,428

3. Future

Services will continue to be the same for both the Town and MD.

Service levels will also be similar but, for example, response times mayvary in the MD due to location.

The term for the future agreement will be January 1, 2011 to December31, 2017.

The Town will invoice the MD quarterly at the end of each quarter. The

payments for March 31, June 30 and September 30 will each be 25% of

the projected annual service fee based on the fire services budget approved

by the Town. The final payment will be made upon receipt from the

Town with the calculation based on actual per the cost sharing formulaless payments to date.

Service delivery methods will be determined by the Town. The Town or

MD will provide opportunity for discussion of service levels and deliverymethods with the MD prior to implementing changes.

The Town will provide the MD all related long range plans, informationon major expenses planned for the future and information on

modifications to services. The MD will provide the Town all related longrange plans.

Two years notice or a mutually agreed lesser period will be provided bythe Town prior to terminating services. The MD will give two years notice or a mutually agreed lesser periodprior to terminating the agreement with the Town to provide fire services

or amend the service area.

This Fire Services Agreement will be reviewed by the Town and MDadministration in March, 2012 and thereafter no later than January 31 in

the year following a municipal election. Review of fire services in general will be part of the Master Shared

Services Agreement review during the annual Joint Planning Agreementreview by both Councils. ( JPA, Clause 4. 1. 9)

Fire service boundaries will be determined by the most efficient andfastest response time by the Town and Heritage Pointe fire departments.

Heritage Pointe fire department response times will be projected on the

assumption that there will be 2417 staffing of four FTE.

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Schedule A


The proposed fire boundary for when the Heritage Pointe fire hall isoperating will be considered conceptual and will be finalized in the fall of2012. The agreement on fire boundaries needs to be finalized byDecember 31, 2012. The population impact on cost sharing will beeffective January 1, 2013 even if the Heritage Pointe fire hall is inoperation prior to January 1, 2013. The Town will need to provide the MD with the necessary fire callinformation for billings to MD residents.

Cost sharing formulaThe operating net cost will be shared on a population basis. The population will be revised annually using the most recent Federalcensus for the MD and the annual Town census as at April 30. The

District Service Area population will be revised by the number ofhousing units as at April 30 times the average occupancy rate perdwelling in the most recent Federal census. The Town population will be updated on the same basis as the District

Service Area in years when the Town does not take a census.

The updated census will be used for the following fiscal year. Operations include fire and motor vehicle responses.

Operations will not include highway emergencies. The Town and the MD will co- ordinate and plan fire services in a pro-

active manner. It is important that personnel providing fire fightingservices are familiar with the facilities; therefore, fire protection

services provided in the future will include inspecting institutional andcommercial properties in the MD similar to such site inspections in theTown.

Operation expenses include personnel, equipment and buildingmaintenance and operating costs. Operation expenses will no longer be identified for Town or MD

specific calls.

The payment to the Foothills Regional Emergency ServicesCommission for 911 and dispatch services will not be included in the

operating expenses because the MD makes a similar per capitapayment for MD residents.

Equipment will no longer be identified as Town or MD owned; all

equipment will be owned by the Town. The capital cost of buildings will be shared in the same manner asequipment capital costs are shared.

The annual amortization expense of equipment and buildings will be

included in the costs for cost sharing. Land that is purchased by the Town for fire services purposes will beamortized for cost sharing over the useful life of the building situatedon such land. The cost sharing will be based on the percentage of thebuilding used for fire services.

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Amortization for equipment and buildings to which the MD previouslyprovided capital contributions will be excluded. These items are:

Pumper 83 ( 1989)

Station # I ( 1990)

Station # 1 addition (2008)

Interest on long term debt will be shared for future purchases financedwith debt.

Donations will normally be included as shared revenue because theresulting expenses will be shared. Grants specific to fire services will be shared.

Capital grants specific to fire services greater than $ 100,000 will be

credited to the MD over the useful life of the asset purchased by thecapital grant with the annual credit determined by the current yearpopulation ratio.

Grants that the Town could have used for other purposes than fire will

not be shared.

The following equipment owned by the MD but used by the Town willbe purchased by the Town in 2011 in the amount of $4, 234:

Bush buggy, $39,234; Tanker, $6, 000

This purchase transaction will be part of the agreement but will be

transacted separately from the cost sharing formula. The Town will

determine the remaining useful life of this equipment and the annualamortization expense will be cost shared.

Fire Station # 1 rental revenues and cost recovery will be shared withthe MD as follows:

Basic rent (defined as rent on the capital cost of the building) will beshared on the basis of the MD' s 31% ownership of the building. Operating cost recovery revenue will be shared using the currentyear population ratio.

Gains and losses from disposal of tangible capital assets will be shared

with the MD using the year of sale population ratio.

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The following schedule is the fire services cost sharing formula and costseligible for cost sharing. An example using 2010 actual data is provided inAppendix 6. 2.

Expenses

Operating expenses (Schedule 1)

Amortization expense (Schedule 2)

Total operating expenses plus debt principalLess: Amortization on assets funded by MDLess: Long term debt interest on assets funded by MD

Total revised operating expenses

Revenue

User charges & sale of goods

Operating grantsOther revenue

Cost recovery — Station 1

Capital grants 100% credit

Capital grants credit amortized (Schedule 2)

Total revenue

Net Cost

Population

Town

MD

Total

MD Share of Net Costs based on population

Less: MD share of Station 1 basic rent (31 %)

MD Cost Share of Fire Services

Total

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Schedule 1- Operating Expense DetailPersonnel

Salaries & wages

Non - permanent

Overtime

Other

Benefits

Service awards

Total Personnel

Purchased services

Travel

TrainingMemberships

Freight

Postage

Telephone

Cell phone

AdvertisingSubscriptions

Public relations

Contracts - Janitor

Contracts - Building maintenanceContracts - Equipment maintenance

Contracts - Other

Insurance

Total Purchased Services

Good & materials

Stationery

ClothingJanitor

Food

First aid

Other

Fuel & oil

Parts

Small tools /equipment

Total Goods & Materials

Building costs - utilities, maintenance

Salaries & wages

Benefits

Contracts

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Insurance

Supplies

Water

Sewer

Natural gas

ElectricityRefuse

Overhead from building administration

Total Building Costs

Sundry expense

Long term debt interestTransfers to other departments

Administering volunteer fire fighter payrollMappingSnow removal

Southside fire station maintenance

Total Operating Expenses excluding amortization

4.5.2 Police

1. Definition

The Royal Canadian Mounted Police ( under contract through the Provincial

Government) and Community Peace Officers ( municipal employees) provide

protective services to the Town and the MD. Services provided by theCommunity Peace Officers include traffic control, bylaw enforcement, animalcontrol, safety co- ordination, education for the public and public relations.

2. Current Status

The Community Peace Officers generally operate within the boundaries oftheir respective municipality but there is a good working relationship betweeneach municipality. This results in partnerships and co- operation in trainingand assistance with specific events and tasks. These are informal

arrangements without an agreement other than the letters of permission

required by the Solicitor General for events such as traffic control in anotherjurisdiction.

The RCMP detachment is located in the Town which includes personnel

responsible for the MD. Funding of the RCMP detachment is determined bythe senior governments. The Town currently funds 90% of the RCMP

personnel and related costs specific to Town services; this is the funding ratiofor urban municipalities with a population greater than 15, 000. The MD does

not provide any funding for RCMP services; the provincial /federalgovernments fully fund RCMP services for rural municipalities.

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3. Future

There may be inequities created due to the ratios of funding the RCMP forurban and rural municipalities but these funding ratios are not relevant to thecost sharing agreement. It is important that MD related costs in the RCMP

detachment are recognized as such and are not part of the 90% Town fundingcalculation determined by the senior governments.

Animal control is a problem for both the Town and the MD. This may be anarea that the municipal enforcement departments of the Town and the MD

should review to determine if animal control can be co- ordinated, monitored

and controlled more effectively together.

The Community Peace Officers for the MD and the Town should, on an ongoing basis, identify and implement opportunities to co- ordinate theirservices. More specifically, there should be a permanent agreement for Townand MD joint traffic control on 338 Avenue from Highway 2A east to

32nd

Street East and on32nd

Street East from 338 Avenue south to Crystal Shores

Road. A broader consideration is to have an ongoing agreement that enablesCommunity Peace Officers from the Town and the MD to conduct theirenforcement activities in a strategic manner.

4.5.3 Mutual Aid

1. Definition

Mutual aid" is when the resources of a municipality are not adequate to copewith an emergency or disaster and another municipality provides theirresources to assist in addressing the emergency or disaster.

2. Current Status

Mutual aid agreements /bylaws:

Calgary South Emergency /Disaster Mutual Assistance agreementIncludes the MD and the Town.

1991 is the date of this ongoing agreement. Cost sharing agreement for insurance for mutual aid agreements

Includes City of Airdrie and various towns and villages in the area. The Town is included but not the MD. The MD does not need to

participate in the CSA for insurance for mutual aid agreements

because the MD insurance carrier, Jubilee Insurance, provides this

insurance coverage.

1996 is the date of this ongoing agreement. Fire Suppression/ Rescue Mutual Aid agreement

This is an agreement between the Town and the MD to address

situations when fire emergency mutual aid is provided to eitherparty. 2010 is the date of the agreement.

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Town Bylaw 40/ 89 — Mutual Aid in the event of a peacetime disaster

This bylaw includes the MD.

3. Future

No changes are required in the future that will impact the cost sharingagreement between the MD and the Town. It was determined during this costsharing agreement study that the Schedule B rates in the FireSuppression/ Rescue Mutual Aid Agreement signed in 2010 between the Townand the MD need to be updated. These rates will be revised in the future but

this task is outside of this Master Shared Services Agreement.

4.5.4 Disaster

1. Definition

Disaster' means an event that results in serious harm to the safety, health orwelfare of people or in widespread damage to property.

2. Current Status

The MD Emergency Operations Center (EOC) is located in the MD office andthe Town EOC is located in Fire Station # 1. Each municipality has a Directorof Disaster Services and a Municipal Emergency Plan with references andcontacts for co- ordination. The Town and the MD participate together in

training exercises such as mock disasters.

3. Future

To improve co- ordination of disaster services, the Town will invite the

MD to be part of the Town EOC when they activate their EOC. The Town

and the MD will amend their Municipal Emergency Plans accordingly. The Town and the MD should annually confirm to each other by April 30that their Municipal Emergency Plan was updated and provide a summaryof the revisions.

4.5.5 911 and Dispatch1. Definition

The Foothills Regional Emergency Services Commission ( FRESC) operates a911 call answer and fire dispatch service. The call center answers 911 callsand forwards police related calls to the Red Deer RCMP dispatch and

ambulance calls to the Calgary EMS dispatch. Calls requiring fire departmentservices are dispatched by FRESC.

2. Current Status

The FRESC provides 911 and fire dispatch services to the MD and the Townas described above. The cost for these services is a per capita charge similarfor the both municipalities; the 2010 rate was $ 5. 55 ( 2009 - $ 5. 75). MD and

Town residents are served equitably.

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3. Future

This service is acceptable for the foreseeable future.

4.6 School Sites1. Definition

Municipalities provide land for construction of schools as requested by schoolauthorities in the jurisdiction. The school authorities are the Foothills School

Division, Christ the Redeemer Catholic Schools and Le Conseil Scolaire duS ud de 1' Alberta.

2. Current Status

All of the schools in the Town are at or exceeding the school occupancyrating. The Town has one future school site available, D' Arcy Ranch, and, apotential site if the land use is changed, Air Ranch, but these sites alone are

not sufficient to serve future school needs and the increasing studentpopulation.

The MD has an agreement with two school divisions to provide sites for rural

schools; it does not normally provide developed sites for schools but insteadprovides funding for the school division to purchase and develop thenecessary land. Where a School Authority requires a school site in the 1Lltcnicipality andsufficient Municipal Reserve Land in the location required by the SchoolAuthority is not available, the Municipality shall make alternativearrangements to provide a school site with the appropriate site development

to meet the needs ofthe School Authority and the purchase ofthe site shall befunded equallyfrom the Municipal Reserve Fund andfrom the School ReserveFund.

Clause 3. 4.2, School Reserves Agreement

Historically, the MD has endeavoured to follow this agreement and work withthe school divisions to ensure that school sites are provided. Examples are

two high schools; Highwood High School which has since been included in

the Town of High River boundaries and Holy Trinity Academy built in 2008in the MD on the Town boundary.

The Town has a Reciprocal Use of Indoor Facilities agreement with the two

school divisions that provides opportunity for the Town and the schools to useeach others facilities during prescribed time periods at prescribed rental rates.

3. Future

A key challenge in providing educational services from a municipalperspective is matching supply of school sites with demand for school sitesfrom several school authorities across multiple boundaries.

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Supply of school sites occurs almost exclusively through school land reservededication by developers from a specific development area. This system has

several limitations and challenges:

Land for schools and other recreational and open spaces comes from the

same pool of limited land supply which is legislated to be a maximum of10% of developable land.

Sites for schools are designed to be multi -use to meet both educational and

recreational needs of the community. Size and configuration of development land is not always conducive to

providing suitable school sites.

Integrating schools, which generate high peak hour traffic and pedestrianmovements, with surrounding land uses can be challenging. The time period between the initial identification of a school site in a

municipal plan and making such a site available for school use can bedecades because timing of development is in large part under the controlof the land owner and /or developer.

Every planned school site has a capacity limit based on parcel size, surrounding road networks, on -site recreational facilities and adjacent landuses.

Demand for school sites is managed for multiple municipalities throughseveral school authorities which have a range of challenges and limitationssuch as:

In the short term, new developments and high growth areas generate

disproportionately high numbers of school age children and, in the longterm, school age populations decline as neighbourhoods age.

Timing of school site dedication rarely matches demand for schools. The Province tends to advocate short term, stop -gap solutions on existingschool sites as opposed to capital intensive development of new schools.

This inevitably leads to over - developing existing sites and negativelyimpacting on -site recreational facilities and adjacent roads.

Historically, most schools throughout the Province have been located in theurban areas and students in these schools come from both urban and rural

locations. This trend is changing as residential development increases in ruralmunicipalities and significantly impacts how the education, recreation andcommunity needs will be addressed. Long term planning for school sites, recreational facilities and playing fields is essential and should include all ofthe municipal and education stakeholders.

Therefore, the Inter - municipal Development Plan should include the

requirement that the MD and the Town be both included together in

discussions with the school authorities when future school sites are beingdiscussed and, further, that community use of facilities and playing fields bediscussed in the same manner.

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4.7 Solid Waste Management1. Definition

Solid waste management includes garbage collection, transfer stations, landfill

sites and recycling depots.

2. Current Status


The Town provides residential solid waste collection on a weekly basis ata cost of $9. 09 per month. Commercial properties are responsible to

arrange solid waste collection from the private sector. The Town' s 2010

actual financial information:

Net operating revenue before amortization $64,627

Net operating revenue including amortization $44,099

Net revenue including capital but not amortization $33, 076

The MD contracts solid waste collection for Blackie, Cayley and theSilvertip subdivision at full cost recovery.

b. Transfer stations

The MD operates a transfer site at Priddis which solely serves MDresidents. A second transfer site is at Black Diamond/Turner Valleywhich includes urban residents. Both transfer sites do not operate at full

cost recovery.

c. Landfill sites

The Foothills Regional Services Commission is a partnership of areamunicipalities to provide and manage waste water and landfill operations.

The waste water partners are the MD and the Towns of High River and

Okotoks and the land fill partnership also includes the Towns of BlackDiamond, Turner Valley and Nanton. The MD operates the landfill for the

Commission as well as providing administrative services for bothoperations. Each partner providing services to the Commission arereimbursed for the direct costs.

The administrative services provided by the Mm includes CommissionCAO provided by the MD Treasurer, part-time clerical, accountingsupervision, budget development and financial reporting, financialsoftware and meeting space. The actual annual operating costs for theseadministrative services provided by the MID with full cost recovery are:

2008 $ 35, 825

2009 $ 38,390

2010 $ 40, 821

Revenues provided by the member municipalities to the Commission arebased on usage volumes; the amounts for the last 3 years are in the

following table:

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Schedule A


Municipality 2008 2009 2010

Landfill

MD 28,022 20,442 28,719

Black Diamond 29,297 31, 649 39,281

High River 124,383 188, 563 160,170

Nanton 17,459 16,254 17, 796

Okotoks 185,040 184,583 187,246

Turner Valley 28,467 30,443 32,376

Total Landfill 1 412,668 471,934 462,588

d. Recycling depotsThe Town operates a recycling and processing center which is available toMD residents. In 2009, the Town identified a mandatory recycling costrecovery fee of $3. 69 in the monthly garbage collection fee. The total

garbage collection fee was $ 12. 78 in 2009 and 2010. The Town

introduced a voluntary curb -side recycle collection fee of $9 in 2011; the

mandatory recycling center fee continued at the rate of $3. 69 per month.

The MD has provided capital grants upon request but does not contribute

to the operating costs. Regarding hazardous materials, the Town recyclingcentre handles paint only; whereas electronics, paint and householdhazardous waste are handled by the Foothills Regional ServicesCommission.

The Town' s 2010 actual financial information:

Net operating cost before amortization $ 113, 329

Net operating cost including amortization $ 151, 443

Net costs including capital but not amortization $ 113, 329

3. Future


The MID will be contracting garbage collection services for subdivisionswhere it provides other utilities. The MD will consider contracting theseservices from the Town if the rates are competitive. Future areas in the

MD could be Sandstone and other subdivisions.

The Town is planning to implement automated waste collection in 2011and expanding to curb -side collection of organic waste in 2012.

b. Transfer stations

The MD is not planning to make any changes to existing transfer stationsor add transfer stations.

7V'aroCdlohnsrude Consurting Inc. 30

Schedule A


c. Landfill sites

The Foothills Regional Services partnership will continue under thecurrent agreement for landfill services. This agreement is the MD

recovers all of their direct administration and operating costs and thelandfill revenue is based on volume from each municipal partner.

d. Recycling depotsThe MD is willing to contribute towards the Town recycling centercosts.

Cost sharing will not be based on recycling depot usage because thismethod will be too cumbersome with additional administration costs.

The cost sharing ratio used will be a representative percentage fromother services received from the Town that are cost shared.

2010 Total MD MD % Share

Fire population 30,787 7,586 24.64%

Indoor Recreation users 20,885 3, 602 17. 25%

Library cardholders 17,079 3, 579 20.96%

Total 68,751 14,767 21.48%

Rounded 21%

Note: The fire population will include Heritage Pointe.

This average cost ratio of 21 % will be for the term of the agreement.

The Town has a long range capital plan for upgrading and expandingthe recycling center.

The MD recognizes that capital will be cost shared ( long term debtinterest and amortization expense) but the MD will require input intomajor capital decisions of $100,000 or greater and may have the optionto negotiate a modified cost share arrangement of a capital

expenditure.

Grants specific to the recycling depot will be shared. Capital grants specific to library services greater than $ 100, 000 will be

credited to the MD over the useful life of the asset purchased by thecapital grant with the annual credit determined by the current year costshare ratio. ( Appendix 6. 6 — Amortization and Capital Grant CreditSchedule)

Grants that the Town could have used for other purposes than librarywill not be shared.

A separate agreement is not required; the parameters of the cost

sharing will be included in the Master Shared Services Agreement.

Zarofdlohnsrude Consulting Inc. 31

MIMI

Schedule A


The following table summarizes the total 2011 Town budget forrecycling and notes the net cost for cost sharing purposes:

9faroff Johnsrude Consufting Inc. 32

2011 Budget

Total BudgetShareable

Budget

Operating ExpensesPersonnel 445,108 445,108

Contracted services 20,850 20,850

Recycling collection contractfor "Curb It" program

152,360

Materials & supplies 60,300 60,300

Transfers from other functions 62,741 62, 741

Internal equipment rent 19, 852 19, 852

Amortization 30,399 30,399

Total operating expenses 791,610 639,250

Operating revenuesRecycling sales 186,450 186,450

Customer billing 415,447

Curb It' 151,200

Total operating revenues 753,097 186,450

Net operating cost 38,513 452,800

9faroff Johnsrude Consufting Inc. 32

Schedule A


The following schedule is the recycling depot cost sharing formula and costseligible for cost sharing. An example using 2010 actual data is provided inAppendix 6. 3.

Cost Sharing Ratio based on population using average from other servicesTown 79%

MD average 21%

100%

Sharable Net Cost

glarold7ohnsrude Consulting Inc. 33

2011 Budget

Total Shareable

Budget Budget

Operating ExpensesPersonnel XXX XXX

Contracted services XXX XXX

Recycling collection contract -' Curb It' program XXX

Materials & supplies XXX XXX

Transfers from other functions XXX XXX

Internal equipment rent XXX XXX

Amortization XXX XXX

Total operating expenses

Operating Revenues

Recycling sales XXX XXX

Customer billing XXX

Curb It' program XXX

Total operating revenues

Net operating cost

Share of Net Cost

Town

MD

Total

glarold7ohnsrude Consulting Inc. 33

id NSchedule A


4.8 Library1. Definition

Library services is a library facility staffed by personnel trained to provideservices which consist of accessing reading materials, audio, video, andcontinuing education programs.

2. Current Status

The Town has a library board which is responsible for all aspects of the Townlibrary operations. The Town provides funding to the library in the form of anannual requisition which is based on an approved budget. The Town and the

MD are members of the Marigold Library System and each make an annualper capita payment to the Marigold Library System. The Town' s 2010 per

capita payment was $4.70 ($ 101, 943). The MD' s per capita payment was

7. 04 because the MD does not have a library board ($ 138, 941). The

Marigold Library System receives a provincial Library Services Grant basedon the MD residents (2010 - $ 106,574, $5. 40 per capita). The Town LibraryBoard also pays a requisition to the Marigold Library System ( 2010 - $ 4.50

per capita, $97,605). This amount is included in the Library Board requisitionto the Town.

3. Future

The NO will contribute to the costs of operating the Town library. Cost sharing will be based on the ratio of library cardholders. The Town library will provide the total cardholders and the MarigoldLibrary System will provide the number of MD cardholders who normallyaccess the Town library. The cardholders will be determined as at December 31 to be used for thenext fiscal year.

The requisition paid by the Town library to the Marigold Library Systemwill be an eligible cost for cost sharing. Capital debt interest and amortization expense will be an eligible cost.

The MD cost sharing rate will be the cost per cardholder reduced by thedifference between the Town and MD requisition rates paid to the

Marigold Library System. ( Note: The reverse will be applied when theTown rate is higher than the MD rate.)

The MD recognizes that capital will be cost shared ( long term debt interestand amortization expense) but the MD will require input into major capitaldecisions of $100,000 or greater and may have the option to negotiate amodified cost share arrangement of a capital expenditure.

Grants specific to library services will be shared. Capital grants specific to library services greater than $ 100, 000 will be

credited to the MD over the useful life of the asset purchased by thecapital grant with the annual credit determined by the current year costshare ratio. ( Appendix 6.6 — Amortization and Capital Grants CreditSchedule)

Ifaroldyohnsmde Consufting Inc. 34

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Schedule A


Grants that the Town could have used for other purposes than library willnot be shared.

A separate agreement is not required; the parameters of the cost sharingwill be included in the Master Shared Services Agreement.

The following schedule is the library cost sharing formula and costs eligiblefor cost sharing. An example using 2010 actual data is provided in Appendix6.4.

Expenses

Operating expenses (Schedule 1)

Requisition paid by Library Board to Marigold Library SystemCapital debt interest

Amortization expense (Schedule 2)

Total operating expensesLess: Amortization on assets funded by MDLess: Long term debt interest on assets funded by MD


Revenue

Membership fees

Operating grantsDonations

Other revenue



Total revenue

Net Cost (Cost Share Base)

Library Cardholders as at December 31 of previous yearTown

MD

Total

Marofdjohnsmde Consufting Inc.

Total

35

Schedule A


Cost per cardholder

Less: Marigold Town /MD rate differential adjustment

Adjusted cost per shareholder

Cost Share with Rate Adjustment

Town

MD

Total

Schedule 1- Operating ExpensesPersonnel

Purchased services

Good & materials


4.9 Medical Services1. Definition

Medical services are defined as providing or assisting in providing facilitiesand equipment that will enhance the provision of health care.

2. Current Status

The Town and the MD do not provide any medical services. The MD

annually contributes to STARS and has partnered with another community toprovide office facilities for family doctors as well as a mammogram machine. The Town provides first medical response services through the fire

department with no compensation in addition to ancillary services for theprovincial ambulance service. The Town and the MD participate in a ' doctorrecruitment campaign'.

3. Future

The Town and the MD will pursue opportunities to enhance health services intheir area. At a minimum, health services will be discussed by the IMC onceper year as well as included in the annual review of the JPA.

4.10 Economic Development/Business Services1. Definition

Economic development is the process that influences growth and restructuringof a local economy to enhance the economic well being of a community. It

includes the initiatives of industrial development, retention and expansion of

businesses, tourism marketing and promotion and community development.

Ifarofflohnsrurfe Consulting Inc. 36

rl.1_124

Schedule A


2. Current Status

The Town actively promotes and markets the Town to benefit existingbusinesses and to attract non - residential development. This includes

facilitating new development and tourism marketing.

The MD does not actively market the MD but instead responds to inquiriesregarding development opportunities. New businesses that cannot be

accommodated by the MD are referred to the Foothills region urban centers; conversely, similar referrals are made by the towns to the MD.

The MD, Town and other urban municipalities in the Foothills region

collaborate and partner to promote development. Two partnership projectsare:

RISE Initiative which is a partnership to attract commercial andindustrial investment to the Foothills Region with a common regional

perspective and co- operative marketing activity. r Tri- Municipal Industrial Lands Project in which the MD and the Towns

of Okotoks and High River have formed a strategic alliance to develop aplan that will ensure that the Highway 2A Industrial Corridor ismarketed and developed in a way that benefits the whole region.

3. Future

The Town and the MD each plan to continue their current approach; the Town

will actively promote development whereas the MD will endeavour toaccommodate new development with minimal promotion. Each will continue

to collaborate informally with the exception of development of the Highway2A Industrial Corridor and both are willing to consider future economicdevelopment initiatives.

The MD, Town and Town of High River agreed to the principles of a

Highway 2A Industrial Corridor Partnership in July, 2010. The Councils of

these municipal partners renewed their commitment to this initiative in

January, 2011. The purpose of this partnership is to share all developmentcosts and benefits associated with future development of the industrial lands

located between the Town and the Town of High River straddling Highway2A and west of Highway 2. Each municipality is an equal partner. The MD

Director of Community Services is the interim project coordinator who isresponsible to move the project forward under the direction of the senior

administrators of each of the three partner municipalities. The immediate

initiatives as at October, 2011 are:

Register a Society as the governance model for the project. Implement the partnership agreement including servicing andinfrastructure requirements, development phasing, related AreaStructure Plan amendments, business plan and sharing of costs andbenefits.

Hire a permanent part-time project administrator.

Maroh( johnsrude Consulting Inc. 37

Schedule A


The next stage strategy is to: Appoint a board of directors

4. 11 Cemetery1. Definition

Cemetery services provide traditional forms of interment and also cremationas an alternative interment option. These services include:

Inventory of sales of burial and cremation plots and columbariumniches,

Interment services,

Maintenance of cemetery facilities and columbarium structure, andManagement of cemetery upgrades and expansion projects.

2. Current status

Town

The Town cemetery is used by Town and area residents. The Town operates

the cemetery and revenues are activity based; the sale of lots and columbariumniches and interment fees. There is a 3- tiered cemetery fee system:

Resident — property owner in the Town or within 3 miles of the Townboundary or lived in this area for 10 years and now lives elsewhere. Non -local resident — resident of the MD outside of the ` resident' area

and urban centers in the MD or met the definition of a non -local for 10years and now resides elsewhere.

Non- resident — any other person who resides beyond the boundariesof the MD.

Sales and Interment Services

Net Operating Costs

Sales

2010

Fees Services Fees

Equipment rental

2009 2010

Amortization

2009 2010

Total Operating Expenses

Resident 24 16

60, 791

22 15

1 $ 54,350

Non -local 7 4165-

175% 6 8 Same

Non - resident 12 6215

661% 24 13 Same

Total j 43 j 26 j j 52 36

Net Operating Costs

Yfarofdgohnsmde Consufting Inc. 38

2009 2010

Operating expenses 98,437 86, 140

Equipment rental 16,322 16,814

Amortization 382 13, 000

Total Operating Expenses 115, 141 115,954

Revenues 60, 791 43, 934

Net Operating Cost 1 $ 54, 350 1 $ 72,020

Yfarofdgohnsmde Consufting Inc. 38

ka

Schedule A


Canital Rud¢etc

MD

Operates the Foothills cemetery on land owned by Black Diamond/ TurnerValley under the Cemetery Foothills Agreement. Has two other cemeteries located in Blackie and Cayley which werepreviously maintained by community associations. Effective in 2009, maintenance of all three cemeteries were contracted out

by the MD. Revenues are activity based from plot sales to both NID residents and non- residents.

The MD and Towns of Black Diamond and Turner Valley each pay one- third of the net operating cost of the Foothills cemetery.

3. Future

The Town cemetery is running out of space and the Town needs to acquireland to expand.

The Town and the MD will work together to address the future needs of

the cemetery. Cemeteries will be annually discussed by the IMC. The MD will share the costs of the Town cemetery.


2007 2008 2009 2010 2011

RFP for upgrade plan &

water services

20,000 25,000

Site survey & design 125,000

Shed removal, site clean-

up, site prep for HistoricalSociety Monument

30,000

Widen roadways,

remove /replant trees

54,000

Cremation gardens 189, 510 24,000

Concrete bases 21,500

Road to Big Rock Trail 25, 000

South half loop road 26,775 29,500

Contingency 126,715 46,000

Pave new roads & entries 236,000

Historical monument

landscaping

20,000

Signage 8,000

Main entrance feature 96,000

Consultant 22,000

Paving, fencing, concrete 110,000

Total 20,000 155, 000 443,500 1 506,500 110,000

MD

Operates the Foothills cemetery on land owned by Black Diamond/ TurnerValley under the Cemetery Foothills Agreement.

Has two other cemeteries located in Blackie and Cayley which werepreviously maintained by community associations.

Effective in 2009, maintenance of all three cemeteries were contracted out

by the MD. Revenues are activity based from plot sales to both NID residents and non-

residents.

The MD and Towns of Black Diamond and Turner Valley each pay one- third of the net operating cost of the Foothills cemetery.

3. Future

The Town cemetery is running out of space and the Town needs to acquireland to expand.

The Town and the MD will work together to address the future needs of

the cemetery. Cemeteries will be annually discussed by the IMC. The MD will share the costs of the Town cemetery.


Schedule A


If cost sharing is based on the ratio of the MD population to the totalpopulation of the MD and the five urban centers, the 2010 MD cost share

percentage would be 33% ( 19, 736/59,384).

The cost sharing ratio used will be a representative percentage from otherservices received from the Town that are cost shared. This cost sharingpercentage will be 21 % for the term of the Master Shared Services

Agreement. ( See Section 4. 7, page 30)

The MD' s 21 % share of the 2010 net operating costs would have been15, 124.

Capital debt interest and amortization expense will be an eligible cost.

Grants specific to cemetery services will be shared. Capital grants specific to cemetery services greater than $ 100, 000 will be

credited to the MD over the useful life of the asset purchased by thecapital grant with the annual credit determined by the current year costshare ratio. ( Appendix 6. 6 — Amortization and Capital Grants Credit

Schedule)

The MID recognizes that capital will be cost shared ( long term debt interestand amortization expense) but the MD will require input into major capital

decisions of $ 100, 000 or greater and may have the option to negotiate amodified cost share arrangement of a capital expenditure.

The M1D agrees that all of the projects in the Capital Budget table wouldbe eligible to be cost shared.


4. 12 Recreation

4. 12. 1 Indoor Facilities

1. Definition

Recreation indoor facilities are aquatic centers, arenas, and curling rinksincluding the programs provided in these facilities.

Maroidlofiinsrude Consulting Inc. 40

2010

Population

MD of Foothills 19,736

Town of Okotoks 23,201

Town of High River 11,783

Town of Black Diamond 2,308

Town of Turner Valley 2, 022

Village of Longview 334

Total 59,384

The cost sharing ratio used will be a representative percentage from otherservices received from the Town that are cost shared. This cost sharing

percentage will be 21 % for the term of the Master Shared Services

Agreement. ( See Section 4. 7, page 30)

The MD' s 21 % share of the 2010 net operating costs would have been15, 124.


Grants specific to cemetery services will be shared. Capital grants specific to cemetery services greater than $ 100, 000 will be

credited to the MD over the useful life of the asset purchased by thecapital grant with the annual credit determined by the current year cost

share ratio. ( Appendix 6. 6 — Amortization and Capital Grants Credit

Schedule)

The MID recognizes that capital will be cost shared ( long term debt interestand amortization expense) but the MD will require input into major capital

decisions of $ 100, 000 or greater and may have the option to negotiate amodified cost share arrangement of a capital expenditure.

The M1D agrees that all of the projects in the Capital Budget table wouldbe eligible to be cost shared.


4. 12 Recreation

4. 12. 1 Indoor Facilities

1. Definition

Recreation indoor facilities are aquatic centers, arenas, and curling rinksincluding the programs provided in these facilities.

Maroidlofiinsrude Consulting Inc. 40

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Schedule A


2. Current Status

Town

Operates an aquatic center, three arenas and a curling rink. Administers recreation programs through a client services center which

provides a ` one -stop shopping' service to everyone who uses Townfacilities or participate in Town recreation and community programs. Revenue sources are user fees and rentals.

MD contributes $443, 500 per year from 2006 to 2020 in accordance with

the Recreation Cost Sharing Agreement. This amount is the annual

principal and debt payment for $5 million of the debt incurred for the

recreation centre.

Town recreation business centres are defined as follows:

i. Client Services:

The Client Services business centre provides a ' one -stop shopping' service to all who use Town facilities or participate in Town recreation

and community programs. Information on Town and communityservices and programs is provided and a Recreation Centre Pro Shop ismanaged and operated.

ii. Aquatics

The Aquatics business centre manages and operates the aquatics centre

and provides swim, health and lifestyle programs.

iii. Indoor Facilities

The Indoor Facilities business centre is responsible for three arenas

Murray, Piper, Centennial), the common areas of the Recreation

Centre and the curling rink. iv. Community Programs

The Community Programs business centre delivers or facilitates thedelivery of lifelong learning and skill development opportunities forchildren, youth, adults and seniors.

Maroldjohnsmde Consulting Inc. 41

W baSchedule A


The 2009 and 2010 financial information for these Town recreation

business centres is summarized in the following table:

Note: This report does not include transfers to / from operating and capitalreserves.

The Town incurred $ 20 million of long term debt to expand the RecreationCentre to which the MD annually contributes $ 443, 500:

Client

Term

years)

Indoor Community

2004

2010 Services Aquatics Facilities Programs Total

15 4. 422% 459, 557

Total 20, 000, 000

Operating expensesexcluding debtinterest

570,232 1, 182, 691 1, 896,434 782,211 4,431,568

Operating revenueexcluding MDcontribution

122, 718 618,360 1, 288,956 790,220 2, 820,254

Net operating costexcluding amortization

447,514 564,331 607,478 8,009) 1, 611,314

Amortization expense 198,704 682,271 880,975

Net operating cost 447,514 763,035 1, 289,749 8,009) 2, 492,289

Debt Payments

Principal 1, 778 1, 131,640 1, 133, 418

Interest 720 799,898 800,618

Total Debt Payments 2, 498 1, 931,538 1, 934,036

2009 Net operating

cost excluding debtand amortization

408, 170 601,280 669,324 9, 285 1, 688,059

Note: This report does not include transfers to / from operating and capitalreserves.

The Town incurred $ 20 million of long term debt to expand the RecreationCentre to which the MD annually contributes $ 443, 500:

This annual payment is per the Recreation Agreement between the Townand the MD for 2006 to 2020.

faroCdlohnsrude Consulting Inc. 42

PrincipalTerm

years)

Interest

Rate

Annual

Payment

2004 15,000,000 15 5. 259% 1,458, 193

2005 5, 000,000 15 4. 422% 459, 557

Total 20, 000, 000 1, 917,750

MD Contribution 443,500

of total 23%

This annual payment is per the Recreation Agreement between the Townand the MD for 2006 to 2020.

faroCdlohnsrude Consulting Inc. 42

W

Schedule A


Town Indoor Recreation Facilitv User Statistics

General admissions are public swimming, public skating, gymnasium andyouth centre; the residence of general admissions is unknown. There were

116, 469 general admissions in 2009; 115, 634 in 2010.

Calculation to determine blended ratio usino average use % and financial data:

Aquatic

Programs

CommunityPrograms

ArenasFacilityPasses

Client

Services

2009 2010 2009 2010 2010 2010

Town 4,626 4,398 5, 913 5, 708 1, 274 3, 579

MD 1,015 1, 110 1, 516 1, 357 558 577

Calgary 899 753 449 309 271

Debt interest

Regional

towns256 386 406 302

795, 923 800, 618

Other 18 66 173 102 135

1, 377, 117

Total 6,814 6,713 8, 457 7, 778 2, 238 4, 156

MD % 1 15% 17% 18% 17% 1 25% 1 14%

General admissions are public swimming, public skating, gymnasium andyouth centre; the residence of general admissions is unknown. There were

116, 469 general admissions in 2009; 115, 634 in 2010.

Calculation to determine blended ratio usino average use % and financial data:

Percentage is a result of percentage calculations to obtain subtotal and total.

MD

The MD does not have anythe following facilities:

Black Diamond

High River

Okotoks

Turner Valley

recreation facilities but participates in cost sharing

Arena

Bob Snodgrass Recreation Complex

Recreation Centre & Centennial Ice Arena

Dr. Lander Memorial Swimming Pool

4. 12. 2 Outdoor Facilities

1. Definition

Recreation outdoor facilities are sports fields, campgrounds and parks.

Playgrounds and pathways are not included.

Maro( dyohnsrude Consufting Inc. 43

Aquatics ArenasCommunityPrograms

SubtotalClient

Services

Recreation

CentreTotal

Net operatingcost

564,331 380,615 8,009) 936,937 447,514 226,863 1, 611,314

Amortization 198,704 327,940 526,644 354,331 880,975

Debt interest 720 3,975 4,695 795, 923 800, 618

Total costs 763, 755 712,530 8,009) 1, 468,276 447,514 1, 377, 117 3, 292, 907

MD % 17% 25% 17% 20.88 %* 20.88% 20.88% 20.88 %*

MD Share 129,838 178, 133 1, 362) 306,609 93, 441 287,542 687,592

Rounded % 21%

MD Share 1 $ 691,510

Percentage is a result of percentage calculations to obtain subtotal and total.

MD

The MD does not have anythe following facilities:

Black Diamond

High River

Okotoks

Turner Valley

recreation facilities but participates in cost sharing

Arena

Bob Snodgrass Recreation Complex

Recreation Centre & Centennial Ice Arena

Dr. Lander Memorial Swimming Pool

4. 12. 2 Outdoor Facilities

1. Definition

Recreation outdoor facilities are sports fields, campgrounds and parks.

Playgrounds and pathways are not included.

Maro( dyohnsrude Consufting Inc. 43

idSchedule A


2. Current Status

Town

The Town has the following sports fields as at 2010 with a total historical costof $17 million ( includes Seamans Stadium/ Dawgs Fieldhouse - $ 9. 6 million):

Baseball diamonds

Big RockGood Shephard/Tower Hill

Howard

JP II

Junior High

Riverside

Spoiler field

St Marys

Wylie Park

Seamans Stadium

Nexen land

Soccer pitches

Big RockDr. Morris Gibson

Good Shephard /Tower Hill

Howard

JP II

Kinsmen

Riverside

St Marys

Westmont

Wylie Park

Basketball courts

Hughes Park

Tower Hill

Wilson Park

Skateboard park — Wylie Park

Off leash dog parkWater spray park

Town Field .,User Statistics — 2009/ 10

Y arofcfjohnsrude Consulting Inc. 44

Hours Users Revenue MD% MD

Town minor ball 913 15, 676 17% 155

Town minor soccer 645 6, 636 17% 110

Mixed slowpitch 161 4,521 13% 21

Men' s slowpitch 98 2, 734 7% 7

Rugby 137 1,467 6% 8

Football 119 1, 173 29% 35

Total Outdoor 2, 073 32, 207 16% 335

Total Indoor 20,885 17% 3, 602

Total Recreation 2, 073 1 20,885 1 1 17% 1 3, 937

Y arofcfjohnsrude Consulting Inc. 44

Schedule A


Operating Costs 2009 2010

Contracted services* 72,196 138,037

Other operating costs ** 89,646 83, 548

Subtotal 161, 842 221,585

Dan's Stadium * ** 103, 704 84,335

Total 265,546 305,920

Note: Amortization expense is not included in these costs.

30% of contracted services of the Open Spaces cost center are to

maintain sports fields.

43% of all gxher operating costs of the Open Spaces cost center are tomaintain sports fields.

Town' s commitment for Dawg' s Stadium maintenance costs is up to125, 000 annually.

MD

Maintains parks in Blackie and CayleyOperates Hogg Park campground at a net operating cost.

4. 12.3 Future

a. Regional field house: ,

The MD and the Town are constructing an indoor soccer field housefacility with 3 or 4 indoor soccer pitches, running track, training andfitness areas with associated change /storage /meeting rooms. The Town

and the MD will share the capital costs. The Towns of Black Diamond,

Turner Valley and High River may contribute to the future operating costs.

b. Town

The Town annually upgrades facilities on a rotating basis. These upgrades

are included in the Town' s long term capital plan. Regarding newfacilities, in addition to the regional indoor field house, an expansion to

the Centennial Arena is planned. For outdoor facilities, two ball diamonds

and one soccer pitch are planned in 2011 with upgrades and/or an

additional field planned for each year thereafter.

Yfaroldjohnsrude Consulting Inc. 45 -

Schedule A


The following table is the Town' s long term capital plan for recreationfacilities:

Year Description Budget

2011 Murray Arena improvements 120,000

Open spaces amenities & bleachers 105,000

Pathways /fitness trail 175,000

Irrigation system upgrade 70,000

Outdoor facilities per Master Plan 300,000

Off -leash dog park improvements 30,000

2 ball diamonds & 1 soccer pitch 2,035, 000

Total 2011 2,835,000

2012 Piper Arena improvements 90,000

Regional indoor field house 10,000,000

Total 2012 10,090,000

2013 Outdoor facilities per Master Plan 415,000

2014 Water spray park phase 2 550,000


Total 2014 1,040,000

2015 Outdoor facilities per Master Plan 1,080,000

2016 Centennial arena expansion 6,000,000


Total 2016 6,490,000

Total long term capital plan 21,9501000

6.725 million of the long term capital plan pertains to indoor facilities, excluding the regional indoor field house. The Town estimates the

average annual amortization rate to be 2. 6 %. The MD share of the annual

amortization of these additions or enhancements to indoor facilities would

be $ 36,700 by 2016.

c. MD

As services reach capacity and growth occurs in the MD, there may be adesire to locate new facilities outside of the boundaries of the urbancenters. This could potentially reverse the present situation and the urbancenters may be purchasing services from the MD. For example, the MD is

in the process of building two arenas, two soccer pitches and two baseballdiamonds to service demands from both urban and rural residents.

gfarofrfJohnsrude Consufting Inc. 46

W baSchedule A


d. Future cost sharingThe MD will replace the current Recreation Cost Sharing Agreement withclauses in the Master Shared Services Agreement to share the net costs of

operating the indoor recreation facilities. The parameters for sharing thesecosts are:

The cost sharing will be based on the ratio of users for specificrecreation programs.

The cost sharing ratio will be calculated annually using the userstatistics for the program year ending April 30 for cost sharing the nextfiscal year.

The facilities for cost sharing, including the recreation programs andservices provided in them, will be:

Aquatic center

Murray, Piper and Centennial arenasRecreation Center common areas

Curling rinkThe Client Services business center and Community Programs willalso be included.

Legal residence information will be collected by the Town as part ofthe registration process to determine the user ratio.

All direct operating costs of these programs will be eligible. All recreation related revenues will be deducted from the eligible costs

to determine the cost share base.

Indirect administrative overhead is not an eligible cost.


Grants specific to recreation services will be shared.

Capital grants specific to recreation services greater than $ 100,000 will

be credited to the MD over the useful life of the asset purchased by thecapital grant with the annual credit determined by the current year costshare ratio. ( Appendix 6. 6 — Amortization and Capital Grants Credit

Schedule)

Grants that the Town could have used for purposes other thanrecreation will not be shared.

The MD recognizes that capital will be cost shared ( long term debtinterest and amortization expense) but the MD will require input intomajor capital decisions of $100, 000 or greater and may have the optionto negotiate a modified cost share arrangement of a capital

expenditure.

The costs of operating Town outdoor facilities will not be shared atthis time. The Town and the MD agree to review this issue within the

next 3 years to determine if this decision should be amended.

MaroffJohnsrude Consulting Inc. 47

baSchedule A


The following schedule is the recreation indoor facilities cost sharing formula. An

example using 2010 actual data is provided in Appendix 6. 5.

Step 1: Determine the ratio of MD users by program.

Step 2: Apply the MD percentages to the net costs of the specific recreation programs.

Aquatic

Programs

CommunityPrograms

Arenas

SubtotalClient

Services

Recreation

CentreTotal

Town

MD

CalgaryRegional

towns

Other

Total

MD % A B C


4. 13 Family and Community Support Services1. Definition

Family and Community Support Services design and provide programs thatare preventive in nature to promote and enhance well - being amongindividuals, families and communities.

2. Current Status

Town

The FCSS business center administers the preventive programs and operates

the Okotoks Health Family Resource Centre which is a program that providescomprehensive referrals to support services. Non - residents access these

Yfaroff johnsrude Consufting Inc. 48

Aquatics ArenasCommunityprograms

SubtotalClient

Services

Recreation

CentreTotal

Net operatingcost

Amortization

Debt interest

Total costs

MD % A B C

MD Share

MD % rounded

MD Share

4. 13 Family and Community Support Services1. Definition

Family and Community Support Services design and provide programs thatare preventive in nature to promote and enhance well - being among

individuals, families and communities.

2. Current Status

Town

The FCSS business center administers the preventive programs and operates

the Okotoks Health Family Resource Centre which is a program that providescomprehensive referrals to support services. Non - residents access these

Yfaroff johnsrude Consufting Inc. 48

W ailk

Schedule A


programs including MD residents. The Municipal District of Foothills FCSS

Committee provides annual funding based on the percentage of MD residentsusing these services.

Actual 2010 2009

MD Urban

Operating expenses excluding debt interest 539, 657 576,924

Operating revenue excluding MD contribution 472, 173 462,135

Net operating cost excluding amortization 67,484 114,789

Amortization expense 0 0


7, 219 10, 545 2, 869

Debt. 0 0

MD

Provides funds to programs that are either used solely by MID residents ora combination of MD and urban residents.

Programs are funded either solely by the MD or the MID and other urbanmunicipalities.

Relies on urban centers to monitor programs that are funded jointly. Provides funds, in some cases, at a higher percentage than the MID user

ratio because of the availability ofprovincial funding. The following tableindicates that in 2009 the MD provided $241, 000 in grants of which

169,000 was used for non - residents. The portion of this amount that is

funded by MD property taxes would be $ 34,000 ( 20 %).

Maro( johnsrude Consulting Inc. 49

2008 2009

MD Urban MD Urban

Organizations funded by MD only used solely by MD residents or with nousage statistics

Grants 51,011 1 $ 24,179

Organizations funded by MD only with non - resident useGrants 36, 955 31,081

Program use 7, 219 10, 545 2, 869 3,303

Program use percentage 41% 59% 47% 53%

Organizations funded by MD and urban municipalitiesGrants 154,223 163, 059 185, 912 235, 298

Grants ratio 49% 51% 44% 56%

Program use 2, 439 9, 191 2, 813 13,027

Program use percentage 21% 79% 18% 82%

Total grants provided 242, 189 241,172

Maro( johnsrude Consulting Inc. 49

0Schedule A


3. Future

The current approach of the MD providing funding to Town administeredFCSS programs based on usage should continue because the Town' s costs are

being covered and the MD residents are being served. The MD normallyprovides additional funding from Provincial FCSS grants but these amountsare minor when compared to the overall cost sharing of services; therefore, theimpact will not be formally tracked in the future.

4. 14 Social ServicesI. Definition

A service, other than a medical service, that is intended to assist a person with

a disability or social disadvantage to function in society on a level comparableto that of a person who does not have such a disability or disadvantage.

2. Current Status

Town

The Town provides services to Town and MD residents through the

Okotoks Healthy Family Resource Center in addition to services providedthrough FCSS. They include individual support to low income families, seniors and pregnant women; e.g. gas coupons, income tax returnpreparation.

The Town provides direct grants to organizations providing social servicessuch as the Food Bank, Calgary Catholic Social Services and FetalAlcohol Syndrome Society.

MD

The Foothills Country Hospice, Rowan House ( women' s shelter) and AbbeyField House (single seniors) receive financial support from the MD in theform of direct grants.

3. Future

The Town and the MD will continue to pursue opportunities to enhance socialservices in their area. This initiative fits with the responsibilities of the Town

and MD FCSS but, further, at a minimum, social services will be discussed bythe IMC once per year as well as included in the annual review of the JPA.

4. 15 Seniors Housing1. Definition

Seniors housing provides senior citizens with lodge accommodation inaccordance with the Alberta Housing Act.

2. Current Status

The Foothills Foundation is represented by the MD and the Towns ofOkotoks, High River, Turner Valley, Black Diamond and the Village of

YfarofdJohnsrude Consufting Inc. 50

Schedule A


Longview. Each municipality pays an annual requisition based on theequalized assessment of each municipality. In 2011, the MD and the Town

contributed 52. 7% ($ 764,000) and 28.2% ($ 409,000), respectively. Foothills Foundation Requisition

3. Future

Revenue shortfalls of seniors lodges are funded by the municipal members. The Province has legislated that the equalized assessment of each municipalityis the basis used to determine each member' s share of the annual requisition. The MD contributes 53% of the requisition and the Town contributes 28 %.

Residency information is not available but the MD believes that the number ofMD residents served by the Foothills Foundation represents a much smallerpercentage than 53 %. The Town experiences a similar perceived cost sharinginequity for police services. The Town experienced a $ 1. 7 million net cost for

RCMP services as indicated in the following table. The MD also receives

services from the RCMP but the Province pays for these services on the MD' sbehalf.

Policing Net Costs

2010 2011

Requisition of Total Requisition of Total

MD of Foothills 551,716 52. 5 764,432 52. 7

Okotoks 298,597 28.4 409, 188 28.2

High River 149,863 14.3 200,713 13. 8

Turner Valley 23, 567 2. 3 36,230 2. 5

Black Diamond 23, 167 2.2 34,397 2. 4

Longview 3, 365 0.3 5, 040 0.4

139, 068

Total 1,050,275 100.0 1,450,000 100.0

3. Future

Revenue shortfalls of seniors lodges are funded by the municipal members. The Province has legislated that the equalized assessment of each municipality

is the basis used to determine each member' s share of the annual requisition. The MD contributes 53% of the requisition and the Town contributes 28 %.

Residency information is not available but the MD believes that the number ofMD residents served by the Foothills Foundation represents a much smaller

percentage than 53 %. The Town experiences a similar perceived cost sharinginequity for police services. The Town experienced a $ 1. 7 million net cost for

RCMP services as indicated in the following table. The MD also receives

services from the RCMP but the Province pays for these services on the MD' sbehalf.

Policing Net Costs Town MD

2009 2010 2009 2010

Revenue

Municipal enforcement 462,733 468,609 143, 690 139,068

RCMP 633, 878 686,993

Total Revenue 1,096,611 1,155, 602 143, 690 139, 068

Expenses

Municipal enforcement 668, 154 720,765 581, 608 597,423

RCMP 2, 106,595 2,399,487

Total Expenses 2,774,749 3, 120,252 581,608 5970423

Net Cost

Municipal enforcement 205,421 252, 156 437,918 458,355

RCMP 1,472,717 1,712, 494

Total Net Cost 1, 678, 138 1,964,650 437,918 458,355

Yfarofdjohnsrude Consufting Inc. 51

Nil

Schedule A


The Town and the MD have concluded that since these cost sharing decisionsare not in their power to make, these financial inequities will be noted but will

not be addressed in this agreement and the funding status quo will continue.

4. 16 Affordable Housing1. Definition

Affordable housing is housing provided for low to moderate income families, individuals, seniors and persons with special needs.

2. Current Status

Town

The Town has partnered with the Foothills Foundation by accessingprovincial affordable housing grants for the Foundation. The Town

administered the grant application and reporting process and absorbed thebuilding permit costs. Block funding received by the Town from the Province was:

2007/08 — Nil

2008/09 - $ 805, 581

2009/ 10 - $ 797,989

Provincial block funding was replaced after 2009/ 10 with fundingprovided on a ' Request for Proposal' approach.

MD

The 1VID has not participated in affordable housing projects.

3. Future

The Town and the MD will continue to assess opportunities for affordable

housing in their area. This topic will be discussed by the IMC once per yearas well as included in the annual review of the JPA.

4. 17 Other Cultural and Community Facilities1. Definition

Cultural and community facilities are used to provide cultural, historical andentertainment experiences for the community as well as the ongoingpreservation of historic buildings.

Marofiflofiinsrude Consufting Inc. 52

aa

Schedule A


2. Current Status

Town

Foothills Centennial Center

The Town owns the Foothills Centennial Center and has an operatingagreement with a community group to administer it. The Town costs are:

In 2011, $ 60, 000 will be- placed into reserve as an operating contingencyplus $ 20, 000 for operating expenses and $ 65, 000 for an operating reserve. The MD contributed a $ 200, 000 capital grant to the Foothills CentennialCenter.

Performing Arts Center and Art GalleryThe Town operates the Performing Arts Center and the Art Gallery. The

following table provides the net operating cost information:

2010 2009

Insurance 3, 840 3, 333

Repairs

486, 312

3, 049

Contribution to operating reserve 65,591 62,542

Net operating cost excluding amortization 391, 079 424, 885

Total 69,431 68,924

In 2011, $ 60, 000 will be- placed into reserve as an operating contingencyplus $ 20, 000 for operating expenses and $ 65, 000 for an operating reserve. The MD contributed a $ 200, 000 capital grant to the Foothills Centennial

Center.

Performing Arts Center and Art GalleryThe Town operates the Performing Arts Center and the Art Gallery. The

following table provides the net operating cost information:

MD

The MD operates the Aldersyde Community Hall with the net cost rangingfrom $ 2, 000 to $ 4, 000 from 2007 — 2009. V

f

Other community buildings in the MD are operated by communityassociations with costs such as winter and summer parking lotmaintenance:

Blackie Community CenterBurby HallCayley Fire HallCayley IOOF HallDavisburg HallDeWinton Community HallDinton Park _

East Longview Community HallGladys Ridge

Meadowbank Hall

Marofdjofinsmde Consufting Inc. 53

2010 2009

Operating expenses excluding debt interest 486, 312 530,111

Operating revenue 95,233 105,226

Net operating cost excluding amortization 391, 079 424, 885

Amortization expense 55,841 43,388


Debt 0 0

MD

The MD operates the Aldersyde Community Hall with the net cost rangingfrom $ 2, 000 to $ 4, 000 from 2007 — 2009. V

f

Other community buildings in the MD are operated by communityassociations with costs such as winter and summer parking lotmaintenance:

Blackie Community CenterBurby HallCayley Fire HallCayley IOOF Hall

Davisburg HallDeWinton Community Hall

Dinton Park _

East Longview Community HallGladys Ridge

Meadowbank Hall

Marofdjofinsmde Consufting Inc. 53

firSchedule A


Millarville Race Track

Priddis Community HallRanchers' Hall Millarville

Red Deer Lake

Square Butte

3. Future

The Town will continue the ongoing preservation of historic buildings, operation of current facilities and sustain an annual arts festival. Their longrange plans include:

A 2011 feasibility study regarding a multi -use cultural center withconstruction in 2014 -2016.

Retrofitting the Centennial Arena as a concert venue. Establishing a post- secondary institution campus in 2014 -2016.

The MD does not anticipate any major cultural or historical projects in thenear future but will continue to financially assist the rural communityorganizations.

The MD does not directly provide these ` soft' services and normallycontributes minimally to the operating costs of providing such services. The

MD will occasionally contribute funds towards capital projects as deemednecessary. The Town, on the other hand, contributes significantly to theoperating and capital costs of these services. The Town recognizes this

difference in philosophy on how these services are operated and funded; therefore, the Town does not expect the MD to cost share the operating costs. This decision will be regularly reviewed during the annual review of theMaster Shared Services Agreement.

4. 18 General1. Review of the Master Shared Services Agreement

The Master Shared Services Agreement will be reviewed at the same time as

the JPA is reviewed. Annual financial and statistical reports for each of the

service areas will be provided to the CAO' s of the Town and MD by April 30of the following year. The CAO' s will jointly prepare a report to be presentedto the IMC by June 30. This report will provide at a minimum the followinginformation:

Statistical data from the previous fiscal year and projected statistics for

the current and future years.

Financial information from the previous fiscal year and the budget for

the current year.

Summary comments by the CAO' s for each service areaRecommendations to the IMC

The IMC will approve a summary report for the annual Joint PlanningAgreement review by both Councils. (JPA, Clause 4. 1. 9)

7faroldJohnsrude Consulting Inc. 54

W W

Schedule A


2. Extraordinary increases in annual total costsImplementation of the Master Shared Services Agreement may result inadditional revenues to the Town. The MD anticipates that these additional

revenues will not result in extraordinary increases to the total costs but ratherthat the Town' s net operating cost of the respective service will be reducedand that the total cost will remain consistent with costs prior to the revised

cost sharing arrangements.

5 Master Shared Services AgreementThe CSA group is planning to include all of the content of this report as part ofthe Master Shared Services Agreement. It is still to be determined what

information and decisions will be part of the Agreement and what informationwill be included as schedules to the Agreement. The approach will be to ensure

that key statements and decisions included in the Report will be easy to identifyand supporting information referenced appropriately. The purpose of this section

is to summarize the content of the Agreement.

It should be noted that that the Fire Services Agreement is referenced in theMaster Shared Services Agreement but it stands on its own. For example, the

term, amendments process, and termination process regarding the Master SharedServices Agreement do not apply to the Fire Services Agreement. Therefore,

there will be clauses throughout the Master Shared Services Agreement statingthat such clauses do not apply to the Fire Services Agreement.

5. 1 Principles

The following authoritative statements and key principles will preface theAgreement:

WHEREAS pursuant to Section 54 of the jVunicipal Government Act R.S.A.

2000 Chapter M -26, a municipality may provide any service that it provideswithin its own boundaries in another municipality with the agreement of that othermunicipality;

AND WHEREAS the Councils of the Town and the M.D. determined in the Joint

Planning Agreement for the Town and the M.D. that a formula and methodologyfor the cost sharing of soft and hard services be established in a master agreement;

AND WHEREAS the Town and the M.D. wish to share costs relating to thedelivery of agreed upon soft and hard services on a fair and equitable basis;

AND WHEREAS ' fair and equitable' will mean that one municipality is notsubsidizing the other municipality;

AND WHEREAS this agreement will be based on services provided and

received and not the ability to pay;

Maroldjohnsrude Consulting Inc. 55

Schedule A


AND WHEREAS this agreement will be based on a solid partnership includingopen communication and no ' after the fact' surprises;

AND WHEREAS there will be no discrimination regarding services availableand the cost of such services to Town and M.D. residents;

AND WHEREAS this agreement will include collaborative arrangements that

will not have cost sharing implications between the Town and the M.D.;

AND WHEREAS the purpose of future agreement amendments is to enhance the

partnership between the two municipalities;

5.2 Schedules

The following schedules will be at least part of the Agreement:

Schedule " A" Master Shared Services Agreement Report

Schedule " B" Fire Services Agreement

A schedule for each service may be developed to improve the ease of referencerather than having to locate it in the Report.

5.3 Term1. There is no termination date to this Agreement.

2. After December 31, 2012, either party may provide written notice to the otherparty of its desire to negotiate and amend the terms and conditions of thisAgreement at any time. Upon issuance and receipt of this notice, the parties

agree that they will consider and negotiate any such proposed amendments ingood faith and will follow the process set out in the Article addressing disputeresolution.

3. If a mutually agreeable amendment cannot be reached, either party mayterminate the Agreement in accordance with the Article addressingtermination.

5.4 Termination of Agreement upon Notice1. If the M.D. or the Town wish to terminate this agreement at any time after

December 31, 2012, they may do so by giving two year' s written notice oftermination or a mutually agreed upon lesser notice period.

2. In the event that the Town or the M.D. terminates this Agreement, the M.D.

will only be obligated to pay the M.D. share of the costs to the Town inaccordance with this Agreement as at the effective date of termination of this

Agreement, calculated on a pro -rated basis.

5.5 Services

This section will identify each type of service and state each decision pertainingto the specific service. The directive statements in the Executive Summary for


baSchedule A


each service will be included in this section. A schedule providing thebackground information from the report may be developed for each service.

5. 6 Cost Sharing ParametersMany of the services will not be cost shared; therefore, this section will identifythose services that are cost shared providing a brief summary of the approach tocost sharing and referencing a schedule that will provide the detail parameters. 1. Fire

The parameters to cost share fire services provided by the Town to the M.D. are provided in the Fire Services Agreement in Schedule " B ".

2. Recycling DepotThe cost sharing ratio will be based on the average of the cost sharingpercentages for fire, recreation and library services. Specifics of sharing thecosts to operate the Recycling Depot are in Section 4.7 of the Master SharedServices Agreement Report in Schedule " A" (or there may be a schedulespecific to the recycling depot).

3. LibraryThe cost sharing ratio will be based on the number of library cardholders. Specifics of sharing the costs to operate the Library are in Section 4.8 of theMaster Shared Services Agreement Report in Schedule " A" ( or there may be aschedule specific to the library).

4. CemeteryThe cost sharing ratio will be based on the average of the cost sharingpercentages for fire, recreation and library services. Specifics of sharing thecosts to operate the Cemetery are in Section 4. 11 of the Master SharedServices Agreement Report in Schedule " A" (or there may be a schedulespecific to the cemetery).

5. Recreation

The cost sharing ratio will be based on the number of users for specificrecreation programs. Specifics of sharing the costs to operate the recreationindoor facilities and programs are in Section 4. 12 of the Master Shared

Services Agreement Report in Schedule " A" (or there may be a schedulespecific to recreation).

6. Capital Expenditures

For the recycling depot, library, cemetery and recreation services, the M.D. will require input into major capital decisions of $100, 000 or greater and mayhave the option to negotiate a modified cost sharing arrangement of a capitalexpenditure. This clause will not apply to fire services.

5.7 Transition

This section will state:

1. The approved method and time period over which the MD will make the cost

sharing payments if a transition period of several years is used to achieve fullcost sharing.

2. Implementation of the Master Shared Services Agreement may result inadditional revenues to the Town. The MD anticipates that these additional


0Schedule A


revenues will not result in extraordinary increases to the total costs but ratherthat the Town' s net operating cost of the respective service will be reducedand that the total cost will remain consistent with costs prior to the revised

cost sharing arrangements.

5.8 Agreements Between the Town and the M.D. 1. The following agreements between the Town and M.D. will continue to

remain in force in addition to this Agreement: a) Calgary South Emergency /Disaster Mutual Assistance Agreementb) Fire Suppression/ Rescue Mutual Aid Agreementc) Mutual Aid Bylaw 40/ 89

d) Fire Hall Ownership & Management Agreement

e) Highway 2A Industrial Corridor Partnership Agreementf) Water & Sanitary Sewer Agreement re Lot 1, Block 1, Plan 0413364 and

Lot 1, Block 2, Plan 0512700

g) Frank Lake Pipeline Maintenance Agreement

h) Sandstones Springs Servicing Agreementi) Marigold Library System Agreement

2. The following agreements will be replaced by this Agreement and will beterminated effective on the date that this Agreement is signed by both parties: a) Recreation Cost Sharing Agreement

3. The Fire Services Agreement dated September 30, 2005 will be replaced with

a new agreement effective January 1, 2011 to December 31, 2017 perSchedule A.

4. The `Fire Hall Ownership & Management Agreement' shall be reviewed at a

later date ( or by a specified date) to determine if it can be included with thisAgreement or the Fire Services Agreement.

5.9 Agreement Review

1. The Agreement will be reviewed at the same time as the JPA is reviewed.

2. Annual financial and statistical reports for each of the service areas will be

provided to the CAD' s of the Town and MD by April 30 of the followingyear.

3. The GAO' s will jointly prepare a report to be presented to the IMC by June 30of each year of this Agreement. This report will provide at a minimum the

following information: a) Statistical data from the previous fiscal year and projected statistics for the

current and future years.

b) Financial information from the previous fiscal year and the budget for the

current year.

c) Summary comments by the CAD' s for each service area. d) Recommendations to the IMC.

4. The IMC will approve a summary report for the annual Joint PlanningAgreement review by both Councils. (JPA, Clause 4. 1. 9)

faroldjohnsrude Consufting Inc. 58

kaSchedule A

Master Shared Services Agreement Deport

5. 10 Amendments1. This Agreement may be altered or amended in any of its provisions when any

such changes are reduced to writing and signed by the parties hereto but nototherwise.

2. The process to amend this Agreement will normally be initiated at the timethis Agreement is reviewed during the annual review of the JPA.

3. Either party may provide written notice to the other party of its desire tonegotiate and amend the terms and conditions of this Agreement at any time. Upon issuance and receipt of this notice, the parties agree that they willconsider and negotiate any such proposed amendments in good faith and willfollow the process set out in the section addressing dispute resolution. If a

mutually agreeable amendment cannot be reached, either party may terminatethe Agreement with two years notice.

5.11 Standard Articles

The Master Shared Services Agreement will include the following articles that areeither standard to agreements or standard to agreements between the Town and

the MD:

Payment of GST

Allocation of risk, insurance and indemnityCure

Obligations on termination or expiry of termDispute resolution

Force majeure

Waiver

UnenforceabilityEntire agreement

Further assurances

Notices

Headings

Singular, plural and gender

Assignment

Enurement

Governing law and submission to jurisdictionSurvival


Schedule A


6 Appendices

6. 1 Capital Contribution OptionsOptions Considered:

1. Grants

Contributions are made to specific capital projects.

a. Advantages

The contributing municipality may have more control over the capitalexpenditures to which it contributes.

Provincial funding can be accessed for special projects. b. Disadvantages

May result in extraordinary cash requirements that vary from year toyear.

One -time cash requirements are not spread over time.

Note: Placing funds annually into a reserve will reduce the one -timeimpact but projects would need to be planned well in advance. Also, a

grant could be paid out over a period of years which would also reduce

the one -time impact but this would require the funded municipality tofinance the project until the funds have been received.

Municipalities will have different capitalization thresholds; therefore,

what one municipality may define and record as capital, anothermunicipality may record as an operating expense. This will potentiallyresult in the need to amend financial reports.

2. Debt Payments

Capital projects are financed with debt and annual contributions are made

towards paying the debt. a. Advantages

Provides a consistent annual payment that is easier to budget.

b. Disadvantages

Projects may end up being financed even if financing was not required.

3. Amortization

The amortization expense is included in the annual operating expensesresulting in capital expenditures funded using the annual cost sharing formula. a. Advantages

Consistent annual payments that are part of the operating cost sharingformula.

Consistent annual payment for capital is easier to budget.

Tangible capital assets are a necessary requirement to the serviceprovided and, therefore, are included with the total operating costs.

YfaroffJohnsrude Consulting Inc. 60

Schedule A


b. Disadvantages

Tangible capital assets are recorded at the full cost and not in theamount of the net cost. Therefore, if the capital expenditure was _

partially funded with external funds such as senior government grants, the annual amortization expense would need to be amended for the

specific asset.

Transition to this approach may be difficult if the municipality haspreviously provided capital grants for the purchase of tangible capitalassets that are being amortized.

Capitalization Thresholds: MD $ 5, 000 for all tangible capital assets

Town Equipment- $ 10, 000; Buildings - $ 100,000



6.2 Fire Services Cost Sharing Example — 2010 Actual

Expenses

Operating expenses (Schedule 1) 1, 996,585

Amortization expense (Schedule 2) 180,989

Total operating expenses plus debt principal 2, 177,574

Less: Amortization on assets funded by MD 110,549

Less: Long term debt interest on assets funded by MD 109,933

Total revised operating expenses 1, 957,092

Revenue

User charges & sale of goods 27,851

Operating grants 0

Other revenue 6,335

Cost recovery - Station #1 16,284

Capital grants 100% credit 0

Capital grants credit amortized (Schedule 2) 0

Total revenue

Net Cost

Population

Town

MD

Total

e


Less: MD share of Station #1 basic rent (31%)


50,470

1, 906,622

23,201 75%

30,787 100%

476,656

463,264

Schedule A

Zarofdjohnsrude Consufting Inc. 62

W



Salaries & wages

Non - permanent

Overtime

Other

Benefits

Service awards

Total Personnel

Purchased services

Travel

TrainingMemberships

Freight

Postage

Telephone

Cell phone


Public relations

Profession fees - Legal

Contracts - Janitor


Contracts - Other

Insurance


Good & materials

StationeryClothingJanitor

Food

First aid

Other

Fuel & oil

Parts



1, 066,250

52,814

89,526

21, 187

231,490

3, 071

1, 464,338

6, 615

20,048

11,671

988

15

6,210

1,471

0

1, 714

1, 114

2, 194

987

5, 014

17,978

12, 745

9, 819

AA rAA

2, 167

41,914

1, 888

1, 539

2,477

4, 183

18,828

3, 757

131,349

208, 102

Schedule A

Maroldlohnsrude Consulting Inc. 63

0

NSchedule A



Salaries & wages 9, 687

Benefits 463

Contracts 6, 193

Insurance 2, 575

Supplies 2, 365

Water 602

Sewer 708

Natural gas 19,095

Electricity 26,648

Refuse 418

Overhead from Building Administration 6,532

Total Building Costs 75,286

Sundry expense 6, 085

Long term debt interest 129,904

Transfers to other departments

Administering volunteer fire fighter payroll 2, 200

Mapping 681

Snow removal 2, 000

Southside fire station maintenance 9,406

Total Operating Expenses excluding amortization 1, 996,585

Zarofdjohnsrude Consulting Inc. 64

Schedule A


6.3 Recycling Depot Cost Sharing Example — 2010 Actual

Cost Sharing Ratio based on population using average from other services2010

Town 79%

MD average 21%

100%

Sharable Net Cost

glaroldJohnsrude Consulting Inc. 65

2010 Actual

Total Shareable

Actual Actual

Operating ExpensesPersonnel 567,548 567,548

Contracted services 14,021 14,021

Recycling collection contract -' Curb It' program 125,421

Materials & supplies 44,754 44,754

Transfers from other functions 59,414 59,414

Internal equipment rent 15,611 15, 611

Amortization 38,114 38,114

Total operating expenses 864,883 739,462

Operating Revenues

Recycling sales 181,378 181,378

Customer billing 404,545

Curb It' program 116,296

Grant —Provincial MSI Program 8, 261

Grant — Federal NDCC Program 2, 960

Total operating revenues 713,440 181,378


Share of Net Cost

Town 440,886

MD 117, 198

Total 558,084

glaroldJohnsrude Consulting Inc. 65

0Schedule A


6.4 Library Services Cost Sharing Example — 2010 Actual

Expenses $

Operating expenses ( Schedule 1) 711,299

Requisition paid by Library Board to Marigold Library System 97,605

Capital debt interest 64,468

Amortization expense (Schedule 2) 90,834

Total operating expenses 964,206

Less: Amortization on assets funded by MDLess: Long term debt interest on assets funded by MD

Total revised operating expenses 964,206

Revenue

665, 653

Membership fees 45,311

Operating grants 171,291

Donations 6,540

Other revenue 75,411



Total revenue 298,553

Net Cost (Cost Share Base) 665, 653

Library Cardholders as at December 31 of previous yearTown 13, 500 79%

MD 3, 579 21%

Total 17,079 100%

Cost per cardholder 38.97

Less: Marigold Town /MD rate differential adjustment 2.34

Adjusted cost per shareholder 36. 63

Cost Share with Rate Adjustment

Town 534,554

MD 131,099

Total 665, 653

Caroldlohnsrude Consufting Inc. 66

INSchedule A


Schedule 1- Operating Expenses $ Personnel 529,685

Purchased services 106,319

Good & materials 75.295

Total Operating Expenses excluding amortization 711,299

MaroldJohnsrude Consufting Inc. 67

Schedule A


6.5 Recreation Indoor Facilities Cost Sharing Example

Step 1: Determine the ratio of MD users.

Community

faroffjohnsrude Consufting Inc. 68

Aquatics Arenas Programs

Town 4,398 1, 274 5, 708

MD 1, 110 558 1, 357

Calgary 753 271 309

Regional towns 386 302

Other 66 135 102

Total 6, 713 2, 238 7, 778

M D% of Total 16. 54% 24.93% 17. 45%

Rounded 17% 25% 17%


Community Client Recreation

Aquatics Arenas Programs Subtotal Services Centre Total

Net operatingcost 564,331 380, 615 8,009) 936,937 447,514 226,863 1, 611,314

Amortization 198,704 327, 940 526,644 354,331 880,975

Debt interest 720 3, 975 4, 695 795,923 800,618

Total Costs 763,755 712, 530 8,009) 1,468,276 447,514 1, 377,117 3, 292,907

MD% 17% 25% 17% 20.88% 20. 88% 20.88% 20.88%

MD share 129,838 178, 133 1,362) 306, 609 93,441 287,542 687,592

Rounded % 21%

MD share 691,510

faroffjohnsrude Consufting Inc. 68

Master Shared Services Agreement ReportSchedule A

6.6 Amortization and Capital Grant Credit Schedule

Town of Okotoks — Name of Service

Assets as at December 31, 20XX

TCA and Capital Grant Amortization and Capital Grant Credit

Capital GrantUseful Historical Annual Accumulated Net Book Capital Revenue Credit to

Description Acquired life cost Amortization Amortization Value Grant Credit DateAssets MD contributed towards purchase $ $ $ $ $ $ $

Current year average interest rate

TCA Purchased by TownMachinery & Equipment

Total Machinery & Equipment 0 0 0 0

Vehicles

Total Vehicles 0 0 0 0

Buildings

Subtotal 0 0 0 0

TCA funded by MD prior to this agreement

Subtotal 0 0 0 0

Total TCA Amortized 0 0 0 0

In- service

Land Year

0 0 0 0

Total TCA and Land 0 0 0 0 0 0 0

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6.7 Impact on Financial Contributions by the 1MID to the Town

Service Provided 2009 2010

Proposed

using 2010data

Potable water N/ A

Sanitary sewer N/ A

Storm water N/ A

Roads & transit N/ A

Emergency & Protective

Fire 364,015 463,390 463,264

Police N/ A

Mutual aid N/ A

Disaster N/ A

911 & dispatch * ** N/ A

School sites N/ A

Solid waste management

Garbage collection N/ A

Transfer stations N/ A

Landfill sites * ** N/ A

Recycling depots 0 0 117, 198

Library* ** 0 0 131,099

Medical services N/ A

Economic development N/ A

Cemetery 0 0 15, 124

Recreation 443,500 443,500 691,510

Family & community support services

Social services N/ A

Seniors housing * ** N/ A

Affordable housing N/ A

Cultural & community facilities N/ A

Total 807,515 906,890 1,418,195

Increase compared to 2010 1 511,305





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Schedule A


6.8 Agreement Annual Timeline and Specific Deadlines

Master Shared Services Agreement

Annual Review

April 30 Data provided to CAO' s

June 30 CAO' s provide written report to IMC

September 30 Annual review of JPA

Invoices for Cost Shared Services

April 1, July 1, October 1 Town invoices MD for current year

May 31 Final invoice for prior year

Budget for Cost Shared Services

December 1 Town provides MD draft fire services budget for

next fiscal year


Review Agreement

March, 2012 1" review by Town and MD administrationJanuary 31 followingmunicipal election

Review by Town and MD administration

Population Amendment

April 30 Revise population census for Town and MD

January 1, 2013 Revise MD Fire District Service Area population

Invoices for Service Fees

April 1, July 1, October 1 Town invoices MD for current year

May 31 Final invoice for prior year

Budget

December 1 Town provides MD draft fire services budget for

next fiscal year

Agreement amendment or termination

December 31, 2015 Notices of intent to renew or terminate

December 31, 2016 New agreement completed


Review agreement

December 31, 2012 Determine if it conflicts with Fire Services

Agreement and whether it should be included with

Fire Services Agreement or with Master Shared

Services Agreement

Roads and Transit

Road Networks

Spring of each year Review long range transportation plans


NSchedule A


Disaster Services

Municipal Emergency PlanApril 30 Confirm the plan has been updated and provide

summary of revisions

Recreation

Outdoor facilities

December 1, 2014 Determine if outdoor facilities should be cost

shared

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Schedule B to Master Shared Services Agreement

THIS AGREEMENT made this (,' 4"'- day of 1 - w`,. e. K1 A.D. 2011.

BETWEEN:

TOWN OF OKOTOKS

a municipal corporation within the meaning of theMunicipal Govemment Act, R.S.A. 2000, Chapter M -26

the "Town ")

and -

MUNICIPAL DISTRICT OF FOOTHILLS NO. 31

a municipal corporation within the meaning of theMunicipal Govemment Act, R.S.A. 2000, Chapter M -26

the "M.D. ")

FIRE SERVICES AGREEMENT

WHEREAS pursuant to Section 54 of the Municipal Govemment Act R. S.A. 2000

Chapter M -26, a municipality may provide any service that it provides within its own boundariesin another municipality with the agreement of that other municipality;

AND WHEREAS the Town provides fire services within its boundaries;

AND WHEREAS the M. D. is desirous to have the Town provide fire services, to the extentpossible, in a certain designated area within the M. D.;

AND WHEREAS the Town is willing to provide the M. D. with such fire services in sucharea within the M. D. boundaries under such terms and conditions contained herein;

NOW THEREFORE . in consideration of the mutual covenants, terms and conditionscontained herein, the parties hereto agree as follows:

1 DEFINITIONS

1. 1 In this agreement unless the context otherwise requires

a) " District Service Area" means the area as illustrated in Schedule " B"

attached hereto;

b) " Fire Chief' means the Fire Chief of the Town;

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2. 1

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c) " Fire Services" means the provision of prompt, modern and efficientfirefighting and fire protection services including emergency first responseand fire prevention services available from the Town taking into account theequipment available to the Town and the level of training of the Members atthe time the firefighting and fire protection services are provided and shallinclude, but not necessarily be limited to, all fire protection servicesnormally provided within the municipal boundaries of the Town;

d) " Fire Call" means a call requesting Fire Services within the District ServiceArea made by the 911 call dispatcher;

e) " Fire Services Department" means the Town' s Fire Services Departmentand its Members;

M " FOIP" means the Freedom of Information and Protection of PrivacyAct, R. S.A. 2000, Chapter F -2.5 and its regulations, all as may beamended or replaced from time to time;

g) " Incident Report" means a written report setting out the particulars ofresponse to a Fire Call including the information contained in Schedule "D ", signed by the Fire Chief or his designate;

h) " Member" means a person employed or otherwise retained by the Town as amember of its Fire Services Department to provide or facilitate the provision ofFire Services on behalf of the Town, and any person performing the duties ofa Member for the Town on a volunteer basis;

i) " Records" means records as that term is defined in FOIP;

0) " Service Fee" means that amount set forth in Schedule "A" hereto;

k) " Standard Operating Procedures ( SOP)" means those operating proceduresset out in the documents described as the Town of Okotoks Fire ServicesDepartment Standard Operating Procedures as may be amended from timeto time; and

1) " Term" means the term of this Agreement pursuant to Article 3.

SCHEDULES

The following Schedules are expressly incorporated into and form part of thisAgreement:

Schedule "A" Service FeeSchedule "B" District Service AreaSchedule "C" Proposed District Service AreaSchedule "D" Fire Response InformationSchedule "E" Records and Personal Information Protocols

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3 TERM

3. 1 This Agreement shall be binding on the parties on the date that it is signed by bothparties. Notwithstanding the actual date of execution of this Agreement, the partiesacknowledge and agree that the provision of Fire Services and payment of the Service

Fees in relation thereto commenced on January 1, 2011. This Agreement shall remain

in effect until December 31, 2017 (the "Termination Date ") or until otherwise terminated

pursuant to this Agreement (the "Term ").

3.2 After December 31, 2011, either party may provide written notice to the other party of itsdesire to' negotiate and amend the terms and conditions of this Agreement at any time. Upon issuance and receipt of this notice, the parties agree that they will consider andnegotiate any such proposed amendments in good faith and will follow the process setout in Article 14. If a mutually agreeable amendment cannot be reached, either party. may terminate the Agreement in accordance with Clause 4. 1.

3.3 This Agreement may be renewed in its current form or with amendments to be effectiveJanuary 1, 2018, as agreed upon by the parties. Unless earlier terminated pursuant to

the terms of this Agreement, the MD and the Town will provide written notice to eachother by December 31, 2015 of their intent to renew or terminate this agreement. In the

event of renewal, both parties will determine what amendments, if any, will be requiredwith the new agreement completed prior to December 31, 2016, to be effective January1, 2018. In the event a significant change in circumstances of one or both parties, whichwas not previously contemplated, occurs after signing the new agreement but before itcomes into effect on January , 1, 2018, then the parties, upon written notice to the other,

agree to review, and if necessary, amend, the new agreement having regard to thechange in circumstances. In the event that notice of intent to terminate is given byDecember 31, 2015 or a new agreement is not completed prior to December 31, 2016,

this Agreement will be terminated December 31, 2017.

4 TERMINATION OF AGREEMENT UPON NOVICE

4. 1 Notwithstanding paragraph 3. 3, the M. D. or the Town may terminate this Agreement atany time after December 31, 2011, by giving two ( 2) year's written notice of termination

or a mutually agreed upon lesser notice period.

4.2 In the event that the Town or the M. D. terminates this Agreement in accordance with thisArticle 4, the M. D. will only be obligated to pay Service Fees owing to the Town as at theeffective date of termination of this Agreement, calculated on a pro -rated basis.

4.3 Upon issuance by either party of notice of termination under this Article, the M. D. shallforthwith give notice of termination of this Agreement and the provision of services by theTown and the effective date of termination of services to all persons affected in theDistrict Service Area. This will be accomplished by posting at least one ( 1) public notice

regarding the termination of services in the local newspaper.

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5 OBLIGATIONS OF THE TOWN

5. 1 The Town shall:

a) Subject to Clause 5.2,

i. Provide Fire Services to the M. D. within the District Service Area on

a year round, 24 hours per day, seven (7) days per week basis;

ii. Respond to Fire Calls;

Respond to and attend at the location which is the subject of the Fire

Call as soon as reasonably possible;

iv. Take all reasonable steps to control or extinguish fires, handle or

participate in the response or handling of any other hazard oremergency of a type normally responded to or handled by the FireServices Department to the level established by the StandardOperating Procedures;

b) In accordance with its means and available resources:

L Determine appropriate Fire Service levels and delivery methods anddiscuss any proposed changes to Fire Service levels and deliverymethods with the M. D. prior to implementing changes within theDistrict Service Area;

ii. Maintain adequate levels of properly trained and skilled personnel toprovide the Fire Services in accordance with the Standard OperatingProcedures;

iii. Provide, own, lease and properly maintain all of the firefightingequipment necessary to fulfill the Town' s obligations under thisAgreement;

iv. Provide all of the necessary firefighting facilities and lands uponwhich these facilities are situated to fulfill its obligations under thisAgreement and recognize the MD's 31% ownership of Fire Station

1;

V. Keep and maintain in readiness all required firefighting equipmentand replace firefighting equipment as necessary to fulfill itsobligations under this Agreement;

vi. Ensure that each firefighting vehicle attending an incident within theDistrict Service Area is properly staffed with the appropriate numberof properly trained Members as required by the Standard Operating — Procedures;

c) Provide coverage under the Workers' Compensation Act for all Members;

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d) Obtain and maintain in good standing all necessary licenses, permits,

insurance coverage and other authorizations in order to permit it to cant' outits obligations under this Agreement;

e) At all times comply with all statutes, regulations and by -laws applicable tothe operations of the Fire Services Department and the provision of Fire

Services pursuant to this Agreement including, but not limited to, the

Standard Operating Procedures;

f) Perform all administrative, accounting and record keeping functions inrelation to the proper discharge of its obligations pursuant to this

Agreement;

g) Keep and maintain proper records with respect to the provision of the FireServices including, Incident Reports, investigation reports, total Fire Calls

received, services provided, and any other information which the partiesmay jointly determine;

h) Provide the MD the necessary Incident Reports including the Fire Callinformation for billings to MD residents in accordance with Schedule "D";

i) Inspect institutional and commercial properties in the District Service Areasimilar to such site inspections in the Town and attend to other fire

prevention matters as deemed necessary by the Fire Chief;

j) Provide the M. D. with all fire related long range plans, information on majorexpenditures planned for the future, and information on modification to

services;

k) Provide the M.D. with current copy of the Standard Operating Proceduresand thereafter as they are amended during the Term;

I) Keep and cause all Members and employees to keep confidential anyinformation protected under FOIPPA arising out of the provision of FireServices pursuant to the terms of this Agreement;

m) Observe and perform all of the terms relating to Records and PersonalInformation set out in Schedule "E ";

n) Not make any public statements or communicate with the media withrespect to the provision of Fire Services within the District Service Area

without first discussing the information to be made public with the M. D.

Limitation of Fire Services

5.2 Notwithstanding Paragraph 5. 1, the Town shall not be required to respond to a Fire Call

in the District Service Area if:

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a) the Fire Services Department's emergency personnel or equipment are involved inanother call;

b) in the reasonable opinion of the Fire Chief or his designate, the circumstances or

conditions would compromise the safety of the Members or involve risk to theMembers beyond the risk level set out in the Standard Operating Procedures,

c) in the reasonable opinion of the Fire Chief or his designate, the infrastructure in theDistrict Service Area is inadequate in order for the Fire Services Department tosafely provide Fire Services at the site of the Fire Call, or

d) in the reasonable opinion of the Fire Chief or his designate, the Fire ServicesDepartment does not have the ability to provide the necessary resources tc

effectively and safely deal with the Fire Call in accordance with Standard OperatingProcedures.

5. 3 In the event that the Fire Services Department does not respond to a Fire Call, the FireChief or his designate shall immediately notify the 911 call dispatcher and the M.D..

5.4 The M. D. shall have no claim for damages or compensation arising out of the failure orrefusal of the Town to provide the Fire Services under Clause 5.2.

General

5.5 The Fire Chief or his designate shall have the authority to determine how Fire ServicesDepartment resources are deployed in the District Service Area and shall be responsiblefor overall incident command, all in accordance with the Standard Operating Procedures.

5. 6 Unless otherwise designated by the 911 call dispatcher. the Fire Services Departmentwill be the primary responder to a Fire Call within the District Service Area.'

5. 7 During each year of the Term, the Town shall submit an invoice to the M. D. at the end of

each of the first three quarters of the year (approximately April 1, July 1, and October 1). Each quarterly invoice will be in the amount of 25% of the annual Service Fee. The

Town shall submit a final invoice to the M.D. not later than May 31 of the subsequentyear following the service year in the amount based on the actual cost of providing FireServices under this Agreement as per the cost sharing formula in Schedule "A" less thepayments previously made by the M. D. for that service year.

5.8 The Town will endeavour to informally provide the M. D. by December 1 a draft budgetfor the Fire Services Department for the next fiscal year and will provide the approvedbudget to the M. D. immediately following approval by the Town Council.

5.9 The Town shall purchase the following equipment from the MD in 2011:

Bush buggy (VIN 1 FDAW57S74EC13152) $ 39,234Tender(VIN 2NKDLR9X9PM929693) $ 6,000

The Town will determine the remaining useful life of this equipment and the annualamortization expense will be cost shared.

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OBLIGATIONS OF THE mb

6. 1 The M. D, shall:

a) Pay the Service Fee to the Town within thirty (30) days following the M. D.' s receipt ofan invoice issued by the Town;

b) Provide the Town all M. D. Fire Service related long range plans;

c) Sell the bush buggy and tender referenced in Clause 5. 8 to the Town for the totalamount $45,234 and invoice the Town in 2011;

d) Provide the Town with copies of all applicable bylaws and policies and all future

amendments during the Term;

e) Design and maintain a comprehensive map system including a location codereference system applicable to the District Service Area acceptable to the Town

acting reasonably. The M. D. shall use best efforts to keep the Town informedregarding any new developments affecting the District Service Area;

f) Use best efforts to educate its residents in the District Service Area as to the

appropriate manner of making a Fire Call, including name, location code reference, and any other information appropriate to the circumstances or request;

g) Use all reasonable efforts to ensure that proper road signage is in place andmaintained within the District Service Area from which the Fire Services Departmentcan take direction enroute to a Fire Call;

h) Provide the Town with the following detailed information, to the extent that the M.D. has actual knowledge of such information:

i. suitability of the water supply for firefighting services within the DistrictService Area having regard to the Fire Services Department's equipmentand requirements and the level of risk in the District Service Area;

ii. access routes to and within the District Service Area;

iii. location of residences or other buildings occupied by persons withmobility restrictions;

iv. location of buildings or other structures on or at which hazardous

substances are used or stored including the nature of the hazardoussubstances;

V. any other land use or occupancy information in the District Service Areathat may increase the demand for Fire Services or level of risk in theprovision of Fire Services

vi. any changes in land use, occupancy or Area Structure Plans or proposedArea Structure Plans in the District Service Area during the Term of this

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Agreement which may increase the demand for Fire Services or level ofrisk in the provision of Fire Services; and

vii. applications for development or subdivision approval within the District

Service Area, including residential, commercial and industrial, that mayincrease the demand for Fire Services or level of risk in the provision ofFire Services.

6.2 The M. D. shall notify the Fire Chief, on a monthly basis, of all new construction anddevelopment in the District Service Area in order to allow the Fire Services Departmentto assess risk, safety, required resources, supply of water, and access.

6.3 In the event that, and as a result of information provided by the M. D. as set out in Clause6.2 above, in the reasonable opinion of the Fire Chief, any new occupancy, constructionor development materially affects, or has the potential to materially affect, the ability ofthe Fire Services Department to provide Fire Services to the new occupation,

construction or development, the Fire Chief shall notify the M. D. in writing and, at alltimes acting reasonably, the Town may withhold Fire Services to the new occupancy, construction or development until the M. D. is able to satisfactorily address the issuesand concerns identified by the Fire Chief.

7 DISTRICT SERVICE AREA

7. 1 Notwithstanding Clause 7.2, the intent of this Agreement is that the District Service Areawill remain the same throughout the term of this Agreement. Amendments may bemade to the District Service Area in accordance with Clause 3.2.

7.2 Notwithstanding Clause 7. 1, the parties acknowledge that the District Service Area inSchedule " B" will be amended when the Heritage Pointe fire station in the M. D. isoperating. Clause 3. 2 will not apply to the District Service Area amendment stated inthis clause.

7.3 The proposed District Service Area in Schedule "C" is conceptual only. The actual areaof the District Service Area shown in Schedule " C" will be reviewed at least annually anddetermined by the parties' with consideration to the following factors:

a) the most efficient and rapid response time by the Town and the Heritage Pointe firedepartments; and

b) the actual staffing complement at the Heritage Pointe fire station.

7.4 The population impact on cost sharing will be effective January 1, 2013 even if the

District Service Area is amended prior to January 1, 2013.

8. SERVICE FEE

8. 1 The annual Service Fee paid by the MD to the Town will be the net operating cost tooperate the Fire Services Department based on the percentage of population of theMunicipal District Service Area to the population of the Town.

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8. 2 The population used to calculate the allocation of the net operating cost will be revisedannually using the most recent Federal census for the M. D. and the annual Town censusas at April 30. The District Service Area population will be revised by the number ofhousing units as at April 30 times the average occupancy rate per dwelling in the mostrecent Federal census.

8. 3 The Town population will be updated on the same basis as the District Service Areapopulation in the years when the Town does not take a census.

8.4 In each year of this Agreement, the updated population of the District Service Area and

the Town will be used to calculate the appropriate cost sharing percentage for thefollowing fiscal year in the Term.

8. 5 The Fire Services Department costs will include all costs related to Fire Services in the

Town and the M. D. but will not include responses to Provincial highway emergencies.

8. 6 Fire Services Department operating expenses include costs related to personnel, equipment and building operations as identified in Schedule 1 of Schedule "A ". Schedule 1 may be amended from time to time upon mutual agreement by the Town andMD administration.

8. 7 The annual requisition paid by the Town to the Foothills Rzgional Fire ServicesCommission for 911 and dispatch services will not be included in the eligible operatingexpenses for cost sharing.

8.8 The annual amortization expense of equipment and buildings will be included in the Fire

Services Department operating costs for cost sharing calculations.

8.9 The cost of Land that is purchased by the Town for Fire Services Department purposeswill be amortized for cost sharing over the useful life of the building situated on suchland. The cost sharing will be based on the percentage of the building used for fireservices.

8. 10 Amortization for equipment and buildings to which the M. D. previously provided capitalcontributions will be excluded from the Fire Services Department cost calculations:

specifically, Engine 83 ( 1989), Station # 1 ( 1990) and Station # 1 addition (2008).

8. 11 Interest on long term debt for future Fire Services Department purchases will be costshared.

8. 12 Donations and grants specific to fire services will reduce the shared net operating cost.

8. 13 Capital grants specific to fire services greater than $ 100,000 will be credited to the M. D.

over the useful life of the asset purchased by the capital grant with the annual creditdetermined by the current year population ratio.

8. 14 Grants used by the Town for fire services purposes that could have been used forpurposes other than fire services will not be included to determine the shared net

operating cost.

8. 15 Fire Station # 1 rental revenues and cost recovery will be shared with the M. D. asfollows:

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a) Basic rent (defined as rent on the capital cost of the building) will beshared on the basis of the MD's 31 % ownership of the building.

b) Operating cost recovery revenue will be shared using the current yearpopulation ratio.

8. 16 Gains and losses from disposal of tangible capital assets will be shared with the MDusing the year of sale population ratio.

9. AGREEMENT AND SERVICES REVIEW

9. 1 This Agreement will be reviewed by the Town and the MD Administration in March, 2012and thereafter no later than January 31 in the year following a municipal election.

9. 2 Delivery of Fire Services provided by the Town to the M.D. will be reviewed as part ofthe annual Joint Planning Agreement review by the Councils of the Town and the MD.

9. 3 Amendments arising from the reviews in Clauses 9. 1 and 9.2 will be done in accordancewith Clause 3.2.

10. PAYMENT OF GST

10. 1 All amounts payable by the M. D. to the Town hereunder shall be exclusive of any goodsand services tax ( "GST ") payable thereon and the M.D. shall, in addition to the amounts

payable hereunder, pay to the Town all amounts of GST applicable thereon.

11. ALLOCATION OF RISC, INSURANCE AND INDEMNITY

11. 1 The parties agree that Fire Services provided under this Agreement by the Town is atthe request of and on behalf of the M. D. and accordingly all risk and liability, of whatevernature and kind, arising out of the provision of Fire Services by the Town to the M. D. under this Agreement shall be borne by the M. D..

11. 2 Except for negligence, the M. D. agrees that neither the Town nor any of its officials, officers, employees, volunteers, Members, *representatives, contractors or agents oranyone else engaged by or on behalf of the Town in the delivery or performance of FireServices under this Agreement shall be liable for failing to respond to any Fire Call or forany delay in responding to any Fire Call or for any failure of any apparatus or equipmentin responding to any Fire Call-or for the manner in which the Fire Services wereprovided. The M. D. hereby releases the Town, its officials, officers, employees, volunteers, representatives, contractors and agents and anyone else engaged by or onbehalf of the Town in the delivery of or performance.of Fire Services under thisAgreement from any and all claims, demands, loss, costs, damages, actions, suits orother proceedings by whomsoever made, brought or prosecuted, in any manner basedupon the provision of, or any failure to provide, Fire Services under or attributable to thisAgreement; or delay in providing Fire Services under this Agreement.

11. 3 Except for negligence, the M. D. agrees to indemnify and save harmless the Town, itsofficials, officers, employees, volunteers, Members, representatives, contractors or

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agents and anyone else engaged by or on behalf of the Town in the performance of FireServices under this Agreement from and against all claims, demands, loss,. costs,

damages, actions, suits or other proceedings by whomsoever made, brought orprosecuted, in any manner based upon, occasioned by or attributable to this Agreementor any action taken or not done under this Agreement or any loss or damage to any ofTown's equipment or apparatus resulting from the provision of Fire Services under thisAgreement.

11. 4 The M. D. shall have the obligation to defend with all due diligence, at its sole cost, all

claims, 'demands, loss, costs, damages, actions, suits or other proceedings bywhomsoever made, brought or prosecuted, in any manner based upon, occasioned byor attributable to this Agreement or any action taken or not done under this Agreementarising from the provision of Fire Services by the Town under this Agreement.

11. 5 Notwithstanding any other provision herein, in the event of negligence on. the part of the

Town or any of its directors, officers, employees, volunteers, Members, servants, agents, and contractors and in carrying out the Town' s obligations under the provisions of thisAgreement, the Town agrees to indemnify and save harmless the M. D., its officials,

officers, employees, representatives, elected officials or agents from and against allclaims, demands, loss, costs ( including legal fees on a solicitor and his own client basisincurred by or awarded against the M. D.), damages, actions, suits or other proceedings

by whomsoever made, brought or prosecuted, in any manner based upon, occasionedby or attributable to any action resulting from the Town' s performance, purported

performance or non - performance of its obligations under this Agreement including butnot limited to the unauthorized use or disclosure of any Records or PersonnelInformation. The provisions of this indemnification shall survive the expiration ortermination of this Agreement.

11. 6 The M. D. during the term of this Agreement, including any renewal thereof, at its ownexpense, will maintain or have maintained with insurers allowed by the laws of theProvince of Alberta to issue insurance policies in Alberta and in forms satisfactory to theTown, acting reasonably, a liability insurance policy for bodily injury ( including death), and property damage in an amount of not less than SIXTEEN MILLION

16,000,000.00) DOLLARS for any one occurrence and must include:

a. the Town as an Additional Insured;

b. a Cross Liability Clause;

c. a broad form Contractual Liability Clause;

d. non -owned Automobile Liability extension which incorporates:

i) " Contractual Liability Endorsement S. E. F.96 "; and

ii) " Legal Liability for Damage to Hired Automobile Endorsement ";

each of which to be suitably amended to meet the obligations of the M. D. to the

Town in terms of this Agreement.

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11. 7 Prior to the commencement of this Agreement, and thereafter by January 1t

of each

year of this Agreement, the M. D. shall provide to the Town documentary evidence ofsuch insurance per Clause 11. 6 and any renewal of such insurance. Failure for anyreason of the M. D. to furnish or have furnished such evidence may be considered abreach of this Agreement allowing the Town, at its sole option, the right to terminate theAgreement.

11. 8 The indemnity set out in Clauses 11. 3 and 11. 5 of this Agreement shall include anyclaim, demand, loss, cost, damage, action or suit that is not covered by insurance or, ifinsured,. is under insured.

12. CURE

12. 1 Subject to paragraph 14. 1, in the event that one party fails to properly discharge all of itsobligations pursuant to this Agreement ( the "Defaulting Party "), the party not in default ofits obligations (the "Non - Defaulting Party ") may terminate this Agreement by deliveringnotice to that effect to the Defaulting Party. Such termination shall be subject to a sixty60) day cure period during which the Defaulting Party will be given a reasonable

opportunity to cure the default or to provide evidence satisfactory to the Non - DefaultingParty that all reasonable steps have been taken to cure the default. If the default

continues or remains in existence upon the expiry of the cure period, the Non- DefaultingParty may terminate the Agreement in writing effective upon delivery of written notice tothe Defaulting Party.

13. OBLIGATIONS ON TERMINATION OR EXPIRY OF TERM

13. 1 Within ninety (90) days of the effective date of termination or the Termination Date, theTown shall submit to the M. D., a final invoice for all amounts payable to the Town for theprovision of Fire Services contemplated in this Agreement for the period up to andincluding the effective date of termination or Termination Date which has not previouslybeen invoiced.

14. DISPUTE RESOLUTION

14. 1 Unless specifically described herein to the contrary, the following provisions shall applyto the resolution of conflicts between the parties as they arise:

a) The M. D. and the Town agree to utilize all reasonable efforts to resolve any dispute, whether arising during the Term or at any time after its expiration promptly and in anamiable manner by negotiations between the parties;

b) The M. D. and the Town shall continue to perform their respective obligations duringthe resolution of any dispute or disagreement, including during any period ofmediation and arbitration, unless and until this Agreement is lawfully terminatedaccording to its terms;

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c) Initially, the dispute shall be referred to the respective Chief Administrative Officer ofthe M. D. and the Town. The Chief Administrative Officers, or their designates, shall

meet as soon as is reasonably possible after the dispute is referred to them, givingdue regard to the nature and the impact of the issue under consideration;

d) If a dispute cannot be resolved by the parties by mutual agreement within a timeperiod that is reasonably satisfactory to the party raising the issue underconsideration, either party may submit the dispute for mediation. Either party may, on notice to the other party, request that mediation take place and the parties shallselect a mediator whose qualifications are appropriate to the matter to be mediated.

The mediator shall designate a place for a meeting of the mediator withrepresentatives of the parties. During the mediation process, no action will be takenby either party to commence or continue arbitration proceedings under thisAgreement. The cost of the mediator will be equally shared by the parties. Anymediation which takes place will be strictly confidential. No proposal or concession

made by either party in the course of mediation may be used by either party in anysubsequent proceedings. The mediator may not be, called by either party as awitness in any subsequent proceedings. Unless otherwise agreed to in writing, mediation will be in accordance with the procedures: of the ADR Institute of Canada,

Inc.;

e) Should mediation fail to result in a resolution of the dispute between the parties

within fifteen ( 15) days after the parties initially attempted to mediate the dispute, either party may submit the dispute for arbitration as provided in Subsection ( f) below. The determination arising out of the arbitration process shall be final andbinding upon the parties;

f) Arbitration shall be conducted in accordance with the following terms:

i) The arbitration shall be carried out by a single arbitrator pursuant to theprovisions of this Section;

ii) If the parties are unable, to agree on a single arbitrator, the party desiringarbitration shall nominate one ( 1) arbitrator and shall notify the other party inwriting of the nomination. The notice shall set forth a brief description of thematter submitted for arbitration. The other party shall, within ten ( 10) days after

receiving such notice, nominate an arbitrator and the two ( 2) arbitrators shall

select a chairman of the arbitration tribunal to act jointly with them. The parties

will act reasonably and in good faith to select arbitrators who are objective andwho are suitably qualified by education or professional experience to deal withthe matters which are the subject of arbitration. of the nominated arbitrators are

unable to agree on the selection of a chairman within ten ( 10) days after the

second arbitrator is nominated, the parties or either one of them may apply to theAlberta Court of Queen' s Bench to have the chairman appointed;

iii) If the party receiving the notice of the nomination of an arbitrator by the partydesiring arbitration fails with ten ( 10) days to nominate an arbitrator, then the

arbitrator nominated by the party desiring arbitration may proceed alone todetermine the dispute in such manner and at such time as he shall think fit and

his decision shall, subject to the provision of this Agreement, be binding upon theparties;

I I' ol /?o11 ; Fire : agreement - NlD or Foothills & Town ofOkotoks

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14

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iv) Any arbitration conducted pursuant to this Agreement shall take place in the Cityof Calgary and, subject to the provisions of this Agreement, the decision of thearbitrators and chairman, or any of the two (2) of them, in writing, shall be bindingupon the parties both in respect of procedure and the conduct of the partiesduring the proceedings and final determination of the issue. Any written award ordecision of the arbitrators shall not repeat or recite any evidence which isproprietary or confidential to either party;

v) The costs of arbitration shall be borne by the parties as may be specified in thearbitrator's decision; and

vi) Except as modified herein, the provisions of the Alberta Arbitration Act, asamended from time to time, shall govern the arbitration process.

14.2 Except for the purposes of preserving a limitation period or obtaining an appropriateinterim order or remedy where reasonably necessary, unless otherwise agreed to by theparties in writing, it is a condition precedent to the bringing of any legal proceedings thatthe means or procedures in this Article have been used and followed in good faith.

15. FORCE MAJEURE

16. 1 The Town shall not be liable to the M. D. for any failure of or delay in the performance ofits obligations hereunder nor be deemed to be in breach of this Agreement, if suchfailure or delay has arisen from " Force Majeure ". For the purposes of this Agreement,

Force Majeure" means any cause not within the control of the Town including, withoutlimitation, interruption of telecommunications, gas, electric or other utility service, acts ofGod, strikes, lockouts, or other industrial disturbances, acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides, earthquakes, fires, lightning, storms, floods, high water, washouts, inclement weather, orders or acts of militaryauthorities, civil disturbances and explosions.

Where the Town is prevented from carrying out its obligations hereunder due to ForceMajeure, the Town shall, as soon as possible, give notice of the occurrence of such ForceMajeure to the M.D. and the Town shall thereupon be excused from the performance ofsuch obligations for the period of time directly attributable to the effect of the Force Majeure

16. WAIVER

16. 1 No consent or waiver, express or implied, by either party to or of any breach or defaultby the other party in the performance by the other party of its obligations hereunder shallbe deemed or construed to be a consent or waiver to or of any other breach or default inthe performance of obligations hereunder by such party hereunder. Failure on the part ofeither party to complain of any act or failure to act of the other party or to declare theother party in default, irrespective of how long such failure continues, shall not constitutea waiver by such party of its rights hereunder.

11 il01 /201 1; Fire , lareemat - 41D of Foothills & To%%n ofOkotoks

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17. UNENFORCEABILITY

17. 1 If any term, covenant or condition of this Agreement or the application thereof to anyparty or circumstance shall be invalid or unenforceable to any extent the remainder ofthis Agreement or application of such term, covenant or condition to a party orcircumstance other than those to which it is held invalid or unenforceable shall not be

affected thereby and each remaining term, covenant or condition of this - Agreement shallbe valid and shall be enforceable to the fullest extent permitted by law.

18. NrIRE AGREEMENT

18. 1 This Agreement constitutes the entire agreement between the parties hereto relating tothe subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and

there are no general or specific warranties, representations or other agreements by oramong the parties in connection with the entering into of this Agreement or the subjectmatter hereof except as specifically set forth herein.

19. AMENDMENTS

19. 1 This Agreement may be altered or amended in any of its provisions when any suchchanges are reduced to writing and signed by the parties hereto but not otherwise.

20. FURTHER ASSURANCES

20. 1 The parties hereto and each of them do hereby covenant and agree to do such thingsand execute such further documents, agreements and assurances as may be necessaryor advisable from time to time in order to carry out the terms and conditions of thisAgreement in accordance with their true intent.

21. NOTICES

21. 1 Whether or not so stipulated herein, all notices, communication, requests and

statements (the "Notice ") required or permitted hereunder shall be in writing. Notice

shall be served by one of the following means:

a) Personally, by delivering it to the party on whom it is to be served at the address set outherein, provided such delivery shall be during normal business hours. Personallydelivered Notice shall be deemed received when actually delivered as aforesaid; or

b) By facsimile or by any other electronic method by which a written or recorded messagemay be sent and a copy may be made of the document from the electronic means ofsending the notice, directed to the party on whom it is to be served at that address setout herein. Notice so served shall be deemed received on the earlier of:

i) upon transmission with answer back confirmation if received within the

normal working hours of the business day; or

11i01; 201 l ; Fire 1greement - SID or Foothills & Town of Okotoks

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W

at the commencement of the next ensuing business day followingtransmission with answer back confirmation thereof; or

c) By mailing via first class registered post, postage prepaid, to the party on whom it isserved. Notice so served shall be deemed to be received seventy -two (72) hours afterthe date it is postmarked. In the event of postal interruption, no notice sent by means ofthe postal system during or within seven ( 7) days prior to the commencement of such

postal interruption or seven ( 7) days after the cessation of such postal interruption shall

be deemed to have been received unless actually received.

21. 2 Except as herein otherwise provided, Notice required to be given pursuant to this

Agreement shall be deemed to have been received by the addressee on the datereceived when served by hand or courier, or five ( 5) days after the same has beenmailed in a prepaid envelope by single registered mail to:

the M. D.:

the Town:

Municipal District of Foothills No. 31309 Macleod Trail, Box 5605

High River', Alberta

T1V 1M7

Phone: ( 403) 652 -2341

Fax: ( 403) 652 -7880


Town of Okotoks

P.O. Box 20, Station M

5 Elizabeth Street

Okotoks, Alberta

T1 S 1K1

Phone: ( 403) 938 -8900Fax: ( 403) 938 -7387


or to such other address as each party may from time to time direct in writing.

22. HEADINGS

22. 1 The headings in this Agreement have been inserted for reference and as a matter of

convenience only and in no way define, limit or enlarge the scope or meaning of thisAgreement or any provision hereof.

11/ 01; 2011; Fire agreement - SID of Foothills & Town of Okotoks

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23. SINGULAR, PLURAL AND GENDER

23. 1 Wherever the singular, plural, masculine, feminine or neuter is used throughout this

Agreement the same shall be construed as meaning the singular, plural, masculine, feminine, neuter, body politic or body corporate where the fact or context so requires andthe provisions hereof and all covenants herein shall be construed to be joint and several

when applicable to more than one party.

24. ASSIGNMENT

24. 1 This Agreement shall not be assignable by either party to any other person, firm orcorporation without the prior written consent of the other party.

25. ENUREMENT

25. 1 This Agreement shall enure to the benefit of and be binding upon the parties hereto andtheir respective successors and permitted assigns.

26. GOVERNING LAIN AND SUBMISSION TO JURISDICTION

26. 1 This Agreement shall be governed by and construed in accordance with the laws of theProvince of Alberta and the parties hereto hereby submit to the jurisdiction of the Courtsin the Province of Alberta.

27. SURVIVAL

27. 1 The parties acknowledge and agree that the provisions of this Agreement which, by theircontext, are meant to survive the termination of this Agreement or expiry of the Termshall survive the termination of this Agreement or expiry of the Term and shall not bemerged therein or therewith.

1 1; 01' 2011; Fire agreement - NID of Foothills & Toun of Okotoks

18

IN WITNESS WHEREOF the parties have set their seals and, hands of their proper officers in thatbehalf on the day and year first above written.

TOWN OF OKOTOKS

MUNICIPAL MANAGER

MUNICIPAL DDS T-OF FOOTHILLS NO. 31

9. A" _* Ln_ - MUNICIPAL MANAGER

R_.

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I 1 rQ I, 201 1 ; Fire .agreement - X117 of Foothills & Town of Okotoks

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SCHEDULE "A" - Service Fee

Expenses

Operating expenses (Schedule 1) Amortization expense (Schedule 2)

Total operating expenses plus debt principalLess: Amortization on assets funded by MDLess: Long term debt interest on assets funded by MD


Revenue

User charges & sale of goods

Operating grantsOther revenue

Cost recovery —Station 1



Total revenue

Net Cost

Population

Town

District Service Area ( MD)

Total


Less: MD share of Station 1 basic rent (31%)



Salaries & wages

Non - permanent

Overtime

Other

Total

1 1.' 01 / 20111 Fire Agreement - ' ID of Foothills & Town of Okotoks

Benefits

Service awards

Total Personnel

Purchased services

Travel

TrainingMemberships

Freight

Postage

Telephone

Cell phone


Public relations

Professional fees - Legal

Contracts - Janitor


Contracts - Other

Insurance


Good & materials

Stationery

ClothingJanitor

Food

First aid

Other

Fuel & oil

Parts




Salaries & wages

Benefits

Contracts

Insurance

Supplies

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20

11: 01/ 201 11 Fire .agreement - SID of Foothills & Town or Okotoks

21

Water

Sewer

Natural gas

ElectricityRefuse

Overhead from Building Administration

Total Building Costs

Sundry expense

Long term debt interestTransfers to other departments

Administering volunteer fire fighter payroll

MappingSnow removal

Southside fire station maintenance


l 1 ? 01 ' 201 l } Fire agreement -. MD of Foothills & Town of Okutoks

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SCHEDULE "A" - Service Fee (continued) Schedule 2 — Amortization and Capital Grant Credit

Town of Okotoks - Fire Services

Assets as at December 31, 20XX

TCA and Capital Grant Amortization and Capital Grant Credit

Capital GrantUseful Historical Annual Accumulated Net Book Capital Revenue Credit toDescription Acquired life cost Amortization Amortization Value Grant Credit DateAssets MD contributed towards purchase $ $ $ $ $ $ $

Current year average interest rate

TCA Purchased by TownMachinery & Equipment

Total Machinery & Equipment 0 0 0 0Vehicles

Total Vehicles 0 0 0 0

Buildings

Subtotal 0 0 0 0

TCA funded by MD prior to this agreement

Subtotal 0 00 0

Total TCA Amortized 0 0 0 0

In- service

Land Year

0 0 0 0

Total TCA and Land 0 0 0 0 0 0 0

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Current District Service Area:

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Commencing at the north west sec. 4- 22 -29 -W4 (Bow River) along the Bow River east to thesouth sec. 25- 21- 28 -W4.

South along 176 Street E. to the south east sec. 13- 20 -28 -W4 then west along 402 Avenue tothe corner of 402 Avenues and 112 Street.E. ( corner of south east sec. 17- 20- 28 -W4)

South along 112 Street E. to the south east sec. 5- 20 -28 -W4 then west to 434 Avenue and 80Street E. ( comer of south east sec. 1- 20- 29 -W4)

South on 80 Street E. to 450 Avenue (south east sec. 36- 19- 29 -W4) then west along 450Avenue to 16 Street W (corner of south east sec. 35- 19 -1 - W5)

South on 16 Street W. to 466 Avenue (south east sec. 26- 19 -1 - W5) then west along 466Avenue to 64 Street W. (comer of south west sec. 28- 19 -1 - W5)

North along 64 Street W. to 370 Avenue (corner of south west sec 28- 20 -1 - W5) then west to 96Street W. (comer of south west sec. 30 -20 -1 W5)

North along 96 Street W. to 290 Avenue (corner of north west sec. 18- 21 -1 - W5) then east onemile and north along 80 Street W to 274 Avenue (corner of north west sec. 20 -21 - 1 M!5) East along 274 Avenue to 32 Street W. (known as Highway 552) and north along Highway 552to 242 Avenue (corner of north west sec. 35- 21 -1 - W5)

East on 242 Avenue to the service road adjacent to Highway 2A then south easterly along theservice road adjacent to Highway 2A to the center of sec. 29- 21 -29 -W4 ( Deerfoot extension) North easterly along the Deerfoot extension to the point of commencement.

11/ 01/ 20111 Fire agreement -, MD of Foothills & Town of Okotoks

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Proposed District Service Area

Commencing at the north east sec. 13- 21 -28 -W4 South along 176 Street E. to the south eastsec. 13- 20 -28 -W4 then west along 402 Avenue to the corner of 402 Avenues and 112 Street E. corner of south east sec. 17- 20- 28 -W4)

South along 112 Street E. to the south east sec. 5- 20 -28 -W4 then west to 434 Avenue and 80Street E. (comer of south east sec. 1- 20- 29 -W4)

0 South on 80 Street E. to 450 Avenue (south east sec. 36- 19- 29 -W4) then west along 450Avenue to 16 Street W (comer of south east sec. 35- 19 -1 - W5)

O South on 16 Street W. to 466 Avenue (south east sec. 26- 19 -1 - W5) then west along 466Avenue to 64 Street W. (corner of south west sec. 28- 19 -1 - W5)

North along 64 Street W. to 370 Avenue (corner of south west sec 28- 20 -1 - W5) then west to 96Street W. (corner of south west sec. 30- 20 -1 - W5)

North along 96 Street W. to 290 Avenue (corner of north west sec. 18- 21 - 1 - W5) then eastseventeen miles to north east 13 -21 -28 W4 (point of commencement)

111/ 01/ 2011) Fire Agreement - MD of Foothills & Town of Okotoks

27

SCHEDULE " D" — Fire Response Information

For billing and statistical purposes the M. D. requires information regarding Fire Calls servicedby the Town on behalf of the M. D. For all calls as much of the following information that can becollected should be forwarded to the M. D. within fourteen days of the incident:

Detailed report of the services provided including:

1. Location of the incident such as 911 address (blue sign address), legal land description or

printed map with location of incident marked. 2. Name of owner or occupant of the property. 3. Name( s) of persons on the property when fire service arrived, including names of persons

interviewed at the scene by fire personnel. 4. Probable cause and origin of the fire, no matter how minor.

5. Burning Permit information if valid permit in effect. 6. Vehicle VIN, make, year, insurance information, driver name address, owner name address

where applicable).

7. RCMP member and detachment if in attendance.

8. Date and time of call and when back in service.

9. List of units and how long each unit on scene. 10. Number of responding personnel and how long each Member was on scene. 11. Foothills Regional Emergency Services Commission alarm number. 12. Copy of MAPP 1244 when a dollar loss fire. 13. If a Provincial highway call will not be billed to the Province by the Town the M. D. will also

require the* name and contact information of the RCMP member or the Alberta

Transportation officer that requested attendance of the Fire Services Department.

111/ 01/ 20111 Fire Agreement - NO of Foothills & Town of Okotoks

28

SCHEDULE " E"

RECORDS AND PERSONAL INFORMATION

All the terms set forth in this Schedule are subject to the provisions of the Freedom ofInformation and Protection of Privacy Act, R.S.A. 2000, Chapter F -2.5 ( "FOIPPA ").

1. Ownership and Control

All Records and Personal Information related to this Agreement and created, compiled, collected, maintained, or obtained by the Town while performing its obligations identifiedin this Agreement are the property of the M. D. and are subject to the complete control ofthe M. D. irrespective of custody.

2. Access by the M. D.

The Town will provide to the M. D., at the Town's expense, any and all Records within 15calendar days of notification by the Municipality.

3 Records Surrender /Delivery

3. 1 All Records will be provided to the M. D. at the expiration of the Term or termination ofthe Agreement at the Town' s expense.

3.2 As soon as reasonably practicable after the expiration or termination of this Agreement, the Town will provide the M. D. with a written confirmation that it has returned all Recordsand Personal Information to the M. D.

4. General Clauses

4. 1 The Town acknowledges and agrees that FOIPPA, subject to legislation to the contrary, applies to all Records and Personal Information relating to, or obtained, generated, compiled, collected or provided under or pursuant to this Agreement.

4.2 The Town recognizes the responsibility of the M. D. in relation to FOIPPA and will nothandle any Records or Personal Information except in accordance with the M. D.' s dutyunder FOIPPA.

4.3 The Town will ensure complete compliance of any of those persons for whom the Townis responsible at law (including, without limitation, any of its employees, volunteers, officers, directors, councillors, subcontractors, agents, and representatives) with all

terms and conditions related to FOIPPA, without limiting the generality of the foregoing, protection of privacy. Further, the Town will advise all persons for whom it is responsibleat law of the requirements of FOIPPA in discharge of the! Agreement. In the event that

the Town becomes aware of a breach of any of these terms or conditions, it shall notifythe M. D. immediately in writing.

11/ 01/ 2011) Fire Acreement - NO of Foothills & Town ofOkotoks

5. Collection

29

5. 1 The Town will collect no Personal Information unless the collection is authorized under

this Agreement or the collection is expressly authorized by the M. D. in writing in advanceof any collection taking place.

5.2 The Town will collect all Records and Personal Information in accordance with FOIPPA.

6. Use

6. 1 The Town will not use, either directly or indirectly, Records or Personal Informationexcept for the express purpose of performing its obligations in the Agreement. After the

termination or expiry of this Agreement, the Town shall not use any Records or PersonalInformation in relation to this Agreement for any purpose.

11/ 01/ 2011 f Fire Agreement - MD of Foothills & Town of Okotoks

master shared services agreement

Documents

master agreement

requiresa agreement

separate agreement

jointplanning agreement

hard services

town andthe

services available

g services