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Home My WebLink AboutCAO-003-09~at"1~I~OII Leading me way REPORT CHIEF ADMINISTRATIVE OFFICER Meeting: General Purpose and Administration Committee('1 ~ P~ Date: July 6, 2009 !~ Pho~~.~--~ ~ ~ ~~ L ~ ~~ Report #: CAO-003-09 File: By-law #: Zov `I - ~ ~ ~ Subject: HOST MUNICIPAL AGREEMENT BETWEEN ONTARIO POWER GENERATION AND THE MUNICIPALITY OF CLARINGTON WITH RESPECT TO THE TWO-UNIT NEW NUCLEAR NEW BUILD AT DARLINGTON Recommendation: THAT Report CAO-003-09 be received; 2. THAT Council approve the Draft Host Municipal Agreement as negotiated and agreed to by both the Clarington and the OPG Negotiation Teams; 3. THAT Council authorize the Mayor and the Clerk to execute the Host Municipal Agreement with Ontario Power Generation subject to its final review by the Municipal Solicitor. ~~ Submitted b~ Franklin Wu M.A.O.M Nancy .Taylor B.B.A., C.A. Chief Administrative Officer Director of FinancelT'reasurer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET; BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-5717 REPORT NO.: CAO-003-09 1. BACKGROUND PAGE 2 1.1 In December 2008, Council authorized the C.A.O: to commence negotiation with Ontario Power Generation for a Host Municipal Agreement in anticipation of the proposed two-unit New Nuclear New Build at the Darlington site. 1.2 Negotiation commenced in early January and the staff teams from both Clarington and OPG have held many meetings since. The Clarington team consists of the C.A.O., the Director of Finance, and the Director of Planning. Other staff from the Building, Engineering, and Emergency and Fire Services Department has also been involved as required throughout the negotiation process. 1.3 In May 2009, the Clarington team briefed individual Council members advising of the status of the negotiation, detailing the key issues, as well as providing a synopsis of what has been agreed to and what items remained outstanding. 1.4 The C.A.O. is pleased to advise that all outstanding issues have now been resolved and both negotiation teams will recommend to their respective decision maker for approval of the Draft Host Municipal Agreement. 2. SYNOPSIS OF DRAFT HOST MUNICIPAL AGREEMENT 2.1 Monetary Matters a) OPG will pay $750,000 to Clarington as its contribution towards the future development of a new Municipal Emergency Operation Centre. Said payment is due upon the award of a successful bid for the construction of the said facility and is not conditional on New Build proceeding. b) OPG will pay $3 million to Clarington upon issuance of the CNSC Site Preparation Licence. c) OPG will pay $6.25 million to Clarington upon the issuance of the CNSC 6 Construction Licence. REPORT NO.: CAO-003-09 PAGE 3 d) The $9.25 million referenced in 2.2 and 2.~ represents compensation to Clarington for impacts related to: i) loss of waterfront trail ii) potential loss of soccer fields iii) traffic and road impacts iv) socio-economic impacts e) The $9.25 million does not cover the following areas of municipal requirements: road improvements and/or rehabilitation of Holt Road between South Service Road and Highway No. 2 or any municipal road which will be used for haul route for excavated sail ii) road improvements to South Service Road between Holt Road and Maple Grove Road iii) fire/emergency protection services during site preparation and construction 2.2 Municipal Approval Matters a) OPG will be permitted to proceed with buildings and structures within the "protected area" under the National Building code and CNSC requirements and therefore will be exempted from building permit and development charges requirements for that area as it applies to the two new units and the existing "Protected Area" at Darlington. "Protected Area" means an area surrounded by a security barrier that meets the requirements of the Nuclear Security Regulations and will be defined in the legal agreement. b) Clarington reserves full right to exercise all applicable laws for development outside the "protected area" including but not limited to the Ontario Building Code Act and the Development Charges Act. c) Clarington will provide its co-operation in support of the EA approval and any other Federal or Provincial approvals for licenses. REPORT NO.: CAO-003-09 PAGE 4 2.3 Other Matters a) Clarington, through MPAC, can access the site not less than twice per year to monitor building activities. b) On site low and medium radio active waste storage is limited to temporary storage up to a maximum of one (1) year. 3. COMMENTS AND CONCLUSIONS 3.1 The Clarington negotiation team is satisfied that the Draft Host Agreement sufficiently safeguard the Municipality, particularly from the perspective of ensuring our future infrastructure and servicing requirements are met as well as mitigating the socio-economic impact as identified by the Municipality's Peer Review Consultants. 3.2 Staff would like to reiterate that the financial arrangement contained in the Draft Host Agreement primarily applies to development within the defined "protected area". Therefore, developments and activities outside the "protected area" will be subjected to all municipal requirements and applicable laws. At the appropriate time, after the Project CompanyNendor is selected by the Provincial Government, we will be meeting with its representative to ensure that all rmunicipal requirements will be communicated accordingly. 3.3 Upon Council's approval of this Report, the Municipal Solicitor will review the legal agreement to ensure the business arrangements are incorporated and is suitable for execution. 3.4 The C.A.O. would like to take this opportunity to thank the OPG negotiation team for its professionalism, understanding and patience during the entire negotiation process.