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HomeMy WebLinkAbout2021-12-23Clar*wo F1 u 0 Vf Me 21 'ki avil co I "m vto a 100 t, 3 DFMD J H 10-1 ' D\Nii ' HFI -P EH ®DEMO❑❑ 7 LP H❑ OD®D[3 0 / Ff DAZQI ( , 31 Z= R P DFM)J H [P H -W ❑ OSCE ll.[I 3 11 M+MFVVUFISDFM HFRQBUUIFR H SRQG-ICFHFIHFHbl-GE 16 \fil I 11' ll Ulf - - DMa A' 1411 H -W LR ■ R CRM ■ " ' M ■ GM CDN) ' P DAU XVL 1111 - - DAUL FIHT LHGMDCfDGMCDRIR - . DAi.1% ■ 1 'Q1r. FFH EMILI RR a M ,_ 11,1 1°i1■■FTI■■■I■■■1; WITIFI■ 0 P EH 1,; ■ - MQ=FFR GDCFHLI [VV[VkML3 WFG Boa E S(D HBat H[VkM[OCLFLSDO c DI r, N FO ■ ,.■KIM ■ - ■ - GP MI[11 • e RC GR 1V RWMFCH WFU 0 DJ M Wr DSS R. D 16 WQM ■ F40 MWMDOU ■ IVVNMIS RSR HGIIH. • M11n- [ - M•11.R V DM Or Inc■ GWr m CXD v CFL9M i; NIL DaL HGLE A a CD ul r4l :RR WH HI -N S LR WMDSS -R► DJVFP H -W ITRVM L HVMAM ■ IMHICFOGiGRaM[DJ H03DIRX 0 HP EH CR 1 1c, I ■. 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FU D GQJ p Kn7 • 11 DID H m ■■■ . 111111111■■■ 1171■ 7 - •.R ■ DO - rf H W 11;- E 115 FU D GQJ 11 -W••,■ J D • ■ ■■■ (101111■1117 - EH 111■1111■■■ 1111 - • �•�1n� a �•� - •- •. ►ur1��� ■ • ■ - -•e • ■1 • ■,0 LCL \N IC+ D 11 • -•- HCM -• H YD\NZ(=:3■ ■■■ e • r • ■ ■ rl• DIr. HSR VVUUlla nMm■■■111■ UIIIIII0 p Dkd 7• •• Irl;, HSR W 3DJHT ❑❑--1 1 H FD \I -R OWHL� R (1911 Dkd VM H ®NM 1 u I -FHP EH ®❑®❑❑❑ FFIFI ❑TI❑ / UME D H E15 HJ D aU :10 ( 6 14 D \H 0:5 HSR X21 FFM7 HFHP EH I[[]» FFIFI ❑❑❑❑ ❑EII❑ : HCG ❑ DFNHQ-_6 HJ D aU ❑ 0 ( 6 A D \N OIL5 HSR \WJ F7 HFHP EH U❑❑ FFIFI ❑❑❑❑ 3 D1 HTm If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2564 The Regional Municipality of Durham Information Report From: Commissioner of Planning and Economic Development Report: #2021 -INFO -132 Date: December 17, 2021 Subject: Monitoring of Growth Trends, File: D01-02-01 Recommendation: Receive for information Report: 1. Purpose 1.1 This report is the second of two biannual reports monitoring growth trends in Durham. It presents historical population and household data for the Region and area municipalities for the 2016 to 2021 period. It also includes short-term forecasts for the 2021 to 2026 period. 1.2 The data is provided for the end of May (to correspond with the timing of the Census) and for December (calendar year-end). Information presented in this report is intended for use in various Regional studies and programs including the Municipal Comprehensive Review (Regional Official Plan Update), Development Charges Studies, and the annual Five-year Servicing and Financing Study. 2. Previous Reports and Decisions 2.1 On October 23, 2020 Commissioners Report #2020 -INFO -98 reported semi-annual population and household estimates, as well as short-term population and household forecasts. 3 T Paae 2 of 4 2.2 On May 7, 2021 Commissioners Report #2021 -INFO -51 reported semi-annual population and household estimates. 3. Historical population and household estimates (2016-2021) 3.1 The population and household estimates presented in Attachments 1 and 2, are based on: a. Statistics Canada Census information for 2011 and 2016 including an estimate for net undercoveragel; and b. Canada Mortgage and Housing Corporation (CMHC) monthly housing completion data for non -Census years. 3.2 The semi-annual population estimates presented in Attachment 1 indicate that the Region's mid -year population growth increased by 9,540 persons from 2020 to 2021, representing a growth rate of 1.35%. The population growth for the five-year period from May 2016 to May 2021 was 6.47%. 3.3 The semi-annual household estimates presented in Attachment 2, indicate that the Region's mid -year household growth increased by 3,605 households from 2020 to 2021, representing a growth rate of 1.50%. The household growth for the five-year period from May 2016 to May 2021 was 7.25%. 4. Short-term growth forecasts (2021-2026) 4.1 The short-term growth forecasts for population and households presented in Attachments 3 and 4 are based on: a. housing production estimates provided by the area municipalities; b. an analysis of past trends; and C. estimates of the timing and anticipated annual housing occupancy across the Region. 4.2 The forecasts make no allowances for unpredictable factors such as changes in economic conditions affecting residential growth (e.g. significant increases in mortgage rates, building trade strikes, etc.). 1 Net undercoverage refers to the net population counts that are missed during the Census enumeration due to persons with no usual residence, incorrect questionnaires, missed dwellings, away from home, etc. 3 1] Paae 3 of 4 4.3 The short-term forecasts indicate that in the next five years Durham's population is projected to increase from 713,680 (2021) to 805,200 in 2026 (refer to Attachment 3). The population growth for the five-year period from May 2021 to May 2026 is expected to be 12.8%. 4.4 Similarly, the current number of households in Durham is projected to increase from 244,385 (2021) to approximately 277,410 in 2026 (refer to Attachment 4). The household growth for the five-year period from May 2020 to May 2025 is expected to be 13.5%. 4.5 These forecasts recognise an increased rate of growth in Pickering towards the end of the period, adding approximately 4,250 households and 11,700 people to the forecast as the Seaton community continues to develop. 5. Relationship to Strategic Plan 5.1 This report aligns with/addresses the following strategic goals and priorities in the Durham Region Strategic Plan: a. Goal 5.3 — Demonstrate commitment to continuous quality improvement and communicating results. 6. Conclusion 6.1 Regional Council will continue to be kept apprised of emerging population and household data and trends through regular updates of this information. 6.2 A copy of this report will be forwarded to the Area Municipalities, the Durham Regional Police Services, the Local Health Integration Network and the School Boards in Durham. 7. Attachments Attachment #1: Semi-annual Population Estimates, 2016-2021 Attachment #2: Semi-annual Household Estimates, 2016-2021 Attachment #3: Semi-annual Population Forecasts, 2016-2021 Attachment #4: Semi-annual Household Forecasts, 2016-2021 3 Ti Respectfully submitted, Original signed by Brian Bridgeman, MCIP, RPP Commissioner of Planning and Economic Development TI Paae 4 of 4 Attachment 1 Semi-annual Population Estimates, 2016-2021 (May and December) Year Ajax Brock Clarington Oshawa Pickering Scugog Uxbridge Whitby Durham 2016 124,810 12,060 96,490 166,530 95,220 22,370 22,040 133,510 673,040 (Dec) 2017 125,510 12,050 97,390 167,430 95,760 22,320 22,260 134,400 677,130 (May) 2017 126,440 12,140 98,550 169,320 96,260 22,240 22,250 135,050 682,250 (Dec) 2018 127,840 12,130 99,220 170,120 96,590 22,190 22,340 135,280 685,710 (May) 2018 128,730 12,260 100,290 172,660 97,430 22,110 22,340 135,760 691,580 (Dec) 2019 129,210 12,310 100,810 174,460 97,950 22,080 22,330 135,960 695,100 (May) 2019 129,960 12,350 102,110 175,030 98,690 22,020 22,320 136,980 699,460 (Dec) 2020 131,400 12,540 102,900 175,190 99,040 21,980 22,310 138,770 704,140 (May) 2020 132,030 12,970 103,610 176,560 101,190 21,930 22,330 140,440 711,060 (Dec) 2021 132,320 12,970 104,210 176,730 101,720 21,920 22,340 141,470 713,680 (May) Note: All figures rounded Source: Statistics Canada Census and gMH"onthly housing completions data. Attachment 2 Semi-annual Household Estimates, 2016-2021 (May and December) Year Ajax Brock Clarington Oshawa Pickering Scugog Uxbridge Whitby Durham 2016 37,655 4,550 33,225 62,990 30,985 8,225 7,705 43,670 229,005 (Dec) 2017 37,815 4,555 33,570 63,340 31,220 8,230 7,795 44,005 230,530 (May) 2017 38,030 4,600 34,020 64,065 31,465 8,235 7,805 44,275 232,495 (Dec) 2018 38,400 4,605 34,290 64,375 31,630 8,240 7,850 44,395 233,785 (May) 2018 38,595 4,670 34,710 65,355 31,990 8,240 7,870 44,615 236,040 (Dec) 2019 38,690 4,695 34,930 66,045 32,220 8,250 7,875 44,720 237,430 (May) 2019 38,845 4,725 35,435 66,270 32,550 8,260 7,890 45,120 239,100 (Dec) 2020 39,225 4,810 35,750 66,345 32,725 8,270 7,905 45,755 240,780 (May) 2020 39,345 4,985 36,050 66,875 33,525 8,280 7,925 46,365 243,355 (Dec) 2021 39,380 4,995 36,295 66,950 33,765 8,305 7,945 46,755 244,385 (May) Note: All figures rounded Source: Statistics Canada Census and QJOHC]Monthly housing completions data. Attachment 3 Semi-annual Population Forecasts, 2021-2026 (May and December) Year Ajax Brock Clarington Oshawa Pickering Scugog Uxbridge Whitby Durham 2021 133,900 13,050 105,800 179,850 103,700 22,300 22,450 146,350 728,100 (Dec) 2022 134,950 13,050 106,750 180,950 104,950 22,350 22,450 147,250 733,900 (May) 2022 136,850 13,150 108,600 183,000 107,400 22,500 22,500 149,050 744,800 (Dec) 2023 137,950 13,150 109,500 184,200 108,750 22,550 22,500 149,900 750,800 (May) 2023 139,950 13,200 111,350 186,450 111,450 22,700 22,550 151,650 762,200 (Dec) 2024 141,150 13,200 112,250 187,650 112,900 22,750 22,550 152,750 768,500 (May) 2024 143,250 13,300 114,050 189,800 115,750 22,900 22,600 154,850 780,500 (Dec) 2025 144,400 13,300 114,950 191,000 117,150 22,900 22,600 156,000 786,900 (May) 2025 146,400 13,350 116,750 193,200 119,950 23,050 22,650 158,350 798,900 (Dec) 2026 147,500 13,350 117,700 194,400 121,250 23,100 22,650 159,500 805,200 (May) Note: All figures rounded Source: Statistics Canada 2016 Census and -/IHC monthly housing completions data. Attachment 4 Semi-annual Household Forecasts, 2021-2026 (May and December) Year Ajax Brock Clarington Oshawa Pickering Scugog Uxbridge Whitby Durham 2021 40,000 5,020 36,850 68,130 34,420 8,450 7,980 48,370 249,230 (Dec) 2022 40,410 5,050 37,240 68,570 34,930 8,500 8,000 48,730 251,410 (May) 2022 41,140 5,080 37,920 69,350 35,820 8,590 8,030 49,370 255,300 (Dec) 2023 41,570 5,100 38,300 69,830 36,370 8,630 8,050 49,730 257,580 (May) 2023 42,340 5,140 38,990 70,670 37,340 8,720 8,080 50,360 261,630 (Dec) 2024 42,800 5,160 39,370 71,140 37,920 8,760 8,100 50,780 264,030 (May) 2024 43,630 5,190 40,040 71,980 38,950 8,850 8,130 51,530 268,300 (Dec) 2025 44,060 5,210 40,420 72,450 39,530 8,890 8,150 52,000 270,710 (May) 2025 44,840 5,250 41,090 73,290 40,550 8,980 8,180 52,820 275,000 (Dec) 2026 45,280 5,270 41,500 73,760 41,100 9,020 8,190 53,280 277,410 (May) Note: All figures rounded Source: Statistics Canada Census and QMHCEMonthly housing completions data. If you require this information in an accessible format, please contact The Regional Municipality of Durham at 1-800-372-1102 ext. 3560. . ) M11 DURHAM REGION Sent via standard mail December 20, 2021 Clerk's Department Municipality of Clarington 40 temperance Street Bowmanville, ON L1 C 3A6 To Whom it may concern: RE: Notice of Completion Durham York Energy Centre Throughput Increase from 140,000 to 160,000 Tonnes per Year The Regional Municipalities of Durham and York (Regions), the Owners of the Durham York Energy Centre (DYEC), have completed the Environmental Screening Process in accordance with Ontario Regulation 101/07: Waste Management Projects of the Environmental Assessment Act for an undertaking to increase the amount of material the facility is permitted to process annually by 20,000 tonnes per year—from 140,000 tonnes per year to 160,000 tonnes per year. Please refer to the attached Notice of Completion. The DYEC site is located at 1835 Energy Drive, in the Municipality of Clarington, Ontario, Canada, and has been in commercial operation since 2016. The DYEC is a waste management facility that produces energy from the combustion of residential garbage that remains after maximizing waste diversion programs in both Regions; Durham Region's portion of DYEC processing capacity is 110,000 tonnes (approx. 80 per cent) and York Region's portion is 30,000 tonnes (approx. 20 per cent). This undertaking is to increase the amount of material the facility is permitted to process annually by 20,000 tonnes per year—from 140,000 tonnes per year to 160,000 tonnes per year (Project). The facility is capable of processing 160,000 tonnes per year without the requirement for additional construction or the installation of additional equipment to accommodate the increase. 3 TFI Notice of Completion Durham York Energy Centre Throughput Increase from 140,000 to 160,000 Tonnes per Year December 20, 2021 Page 2 of 62 As per the environmental screening process requirement, your community/organization has been identified as having a potential interest in the Project, and as such, the DYEC Project Team would like to inform you that the screening process has been completed. Additionally, the Project Team would like to inform you that with the completion and submission of the Environmental Screening Report, the 60 -day review period has commenced. Please refer to the attached Notice of Completion. The Environmental Screening Report, technical reports and other supporting information is available for public review at www.durhamyorkwaste.ca/DYEC160K. Due to the ongoing COVID 19 Pandemic, copies of the Screening Report, technical reports and other supporting documents will not be made available in public spaces. If you require a hard copy of the report and corresponding documents, please contact the Project Manager and a copy will be made available to you. Should you have any questions or concerns, please contact Andrew Evans, Project Manager, Waste Planning and Technical Services at 905-404-0888 extension 4130 or andrew.evans@durham.ca. Sincerely, Gioseph Anello, M.Eng., P.Eng., PMP. Director, Waste Management Services The Regional Municipality of Durham 905-668-7711 extension 3445 Gioseph.Anello@durham.ca Laura McDowell, P.Eng. Director, Environmental Promotion and Protection The Regional Municipality of York 905-830-4444 extension 75077 Laura. McDowel I@york.ca Enclosure (Notice of Completion Public Notice dated December 20, 2021). 3 TF1 Durham York Energy Centre Throughput Increase (From 140,000 to 160,000 tonnes per year) York Region ' Notice of Completion Works Department December 20, 2021 Public Notice The Regional Municipality of Durham and The Regional Municipality of York have completed an Environmental Screening Process in accordance with the Waste Management Projects Regulation (Ontario Regulation 101 /07) of the Environmental Assessment Act to amend the Environmental Compliance Approval for the Durham York Energy Centre (DYEC), located at 1835 Energy Drive, Courtice, Ontario. The Regions will submit an Environmental Screening Report to the Ministry of Environment, Conservation and Parks on December 20, 2021 for review and approval. The Environmental Screening Report has been prepared to increase the annual processing capacity at the DYEC from 140,000 tonnes per year to 160,000 tonnes per year. This additional capacity is needed to accommodate population growth within the two Regions, allow the DYEC to operate more efficiently and produce more energy. This increase in capacity will not require any modifications to existing infrastructure. The Screening process involved identifying and applying criteria for potential environmental effects, public/external agency consultation and the development of measures to mitigate any identified environmental effects. The proposed capacity increase is not expected to have any significant net effects on the environment. The results of the study were documented in an Environmental Screening Report, available for a 60 -calendar day review period from December 20, 2021 to February 18, 2022. The report is available for public review at durhamyorkwaste.ca. If you are unable to access the digital copy of the report posted on this website or require an alternative format, please contact 1-800- 667-5671. If you have concerns or comments, please contact The Regional Municipality of Durham (contact details below) to discuss. If concerns regarding this project cannot be resolved in discussion with The Regional Municipality of Durham or The Regional Municipality of York, a person or party may request that the Minister of the Environment, Conservation and Parks make an order for the project to comply with Part II of the Environmental Assessment Act (referred to as a Part II Order), which would elevate the project to an Individual Environmental Assessment. Requests for a Part II Order must be submitted in writing to the Minister of the Environment at the address listed below no later than 60 - calendar days from the date of this Notice (December 20, 2021). As of July 1, 2018, a Part II Order 3 [Ell] Baseline Rd Comlice' t ---- cP Megewatt 1),DF rc � 18 I o � Crago DURHAM YORK cro ENERGY CENTRE (DYEC) 1 i �. 0". tonnes per year. This additional capacity is needed to accommodate population growth within the two Regions, allow the DYEC to operate more efficiently and produce more energy. This increase in capacity will not require any modifications to existing infrastructure. The Screening process involved identifying and applying criteria for potential environmental effects, public/external agency consultation and the development of measures to mitigate any identified environmental effects. The proposed capacity increase is not expected to have any significant net effects on the environment. The results of the study were documented in an Environmental Screening Report, available for a 60 -calendar day review period from December 20, 2021 to February 18, 2022. The report is available for public review at durhamyorkwaste.ca. If you are unable to access the digital copy of the report posted on this website or require an alternative format, please contact 1-800- 667-5671. If you have concerns or comments, please contact The Regional Municipality of Durham (contact details below) to discuss. If concerns regarding this project cannot be resolved in discussion with The Regional Municipality of Durham or The Regional Municipality of York, a person or party may request that the Minister of the Environment, Conservation and Parks make an order for the project to comply with Part II of the Environmental Assessment Act (referred to as a Part II Order), which would elevate the project to an Individual Environmental Assessment. Requests for a Part II Order must be submitted in writing to the Minister of the Environment at the address listed below no later than 60 - calendar days from the date of this Notice (December 20, 2021). As of July 1, 2018, a Part II Order 3 [Ell] Request Form must be used to request a Part II Order. The Part II Order Request Form is available online at forms. ssb.gov.on. ca. Please submit the completed form to each of the following three individuals. If no Part II Order request are received by 4:30 p.m. on February 18, 2022, The Regional Municipality of Durham and The Regional Municipality of York intends to proceed with the process as scheduled. The Honourable David Piccini, Ministry of the Environment, Conservation and Parks Ferguson Block, 77 Wellesley St. W, 11th Floor Toronto, ON M7A 2T5 Fax: 416-314-8452 minister. mecp(a)-ontario.ca Director, Environmental Assessment and Permissions Branch Ministry of the Environment, Conservation and Parks 135 St. Clair Ave W, 1st Floor Toronto, ON M4V 1 P5 mecppermissions(a)-ontario.ca Andrew Evans, M.A.Sc, P.Eng Project Manager, DYEC Regional Municipality of Durham 605 Rossland Road, East Whitby, ON L1 N 6A3 info(c)-d urhamyorkwaste.ca 905-404-0888 ext. 4130 All personal information included in a submission - such as name, address, telephone number and property location - is collected, maintained, and disclosed by the Ministry of the Environment, Conservation and Parks for the purpose of transparency and consultation. The information is collected under the authority of the Environmental Assessment Act or is collected and maintained for the purpose of creating a record that is available to the general public as described in s.37 of the Freedom of Information and Protection of Privacy Act (FIPPA). Personal information you submit will become part of a public record that is available to the general public unless you request that your personal information remain confidential. For more information, please contact the Ministry of the Environment, Conservation and Park's Freedom of Information and Privacy Coordinator at (416) 327- 1434. 3 [Ell] Patenaude, Lindsey From: infod <info@durhamyorkwaste.ca> Sent: Wednesday, December 22, 2021 10:50 AM To: infod Cc: Angela Porteous; Andrew Evans Subject: Durham York Energy Centre Environmental Screening Process - Revised Noticehah of Completion Attachments: DYEC Public Notice of Completion.WEB POSTING.pdf Some people who received this message don't often get email from info@durhamyorkwaste.ca. Learn why this is important EXTERNAL The Regional Municipalities of Durham and York (Regions), the Owners of the Durham York Energy Centre (DYEC), have completed the Environmental Screening Process in accordance with Ontario Regulation 101/07: Waste Management Projects of the Environmental Assessment Act for an undertaking to increase the amount of material the facility is permitted to process annually by 20,000 tonnes per year—from 140,000 tonnes per year to 160,000 tonnes per year. Further to the Notice of Completion and Letter sent out hard copy mail, please see the revised copy of the Notice of Completion. The Environmental Screening Report, technical reports and other supporting information is available for public review at: durhamyorkwaste.ca/DYEC160K. Due to the ongoing COVID 19 Pandemic, copies of the Screening Report, technical reports and other supporting documents will not be made available in public spaces. If you require a hard copy of the report and corresponding documents, please contact the Project Manager and a copy will be made available to you. Should you have any questions or concerns, please contact Andrew Evans, Project Manager, Waste Planning and Technical Services, at 905-404-0888 extension 4130 or andrew.evans(o)-durham.ca Increasing Capacity to 160,000 THISN ESSAGE3S[FORQH E3JSEEIDFErH EINTENDEDERECI PI ENT(S)MNLY[ANDWAYMONTAI N3NFORMATIONQHAT3SD PRIVILEG ED,[PROPRIETARY,MONFIDE NTIAL,LAND/OR[EXEMPT[FROMMISCLOSURE[UNDEREANYMELEVANT[PRIVACYM LEG ISLATION.1NoCgights1o[bnyq)rivilege[have[Jbeen5valved.3fDkouCbreMot1thelMntendedCiecipie nt,Dkoulbrem erebylbotifiedM thatlbnyCieview,CgeVtransmission,Cdissemination,[distribution,[topying,CConversion[tofhardltopy,[takinglbflbction[Mnm reliance[bn[3br[bther[ase[bf[phis[ltommunicationl@sCgtrictlyl)rohibited.3fWou[breChot[:the3ntendedliecipient[bnd[haveM received[this[gnessage[En[i�rror,q)lease[3botify[Annelylieturnik! nail[bnd[ielete[br[destroylblllkopies[bf[this[inessage.0 3 1❑ Durham York Energy Centre Throughput Increase (From 140,000 to 160,000 tonnes per year) W---:7- YorRegion - : Notice of Completion Works Department December 20, 2021 (revised) Public Notice The Regional Municipality of Durham and The Regional Municipality of York have completed an Environmental Screening Process in accordance with the Waste Management Projects Regulation (Ontario Regulation 101/07) of the Environmental Assessment Act to amend the Environmental Compliance Approval for the Durham York Energy Centre (DYEC), located at 1835 Energy Drive, Courtice, Ontario. The Regions will submit an Environmental Screening Report to the Ministry of Environment, Conservation and Parks on December 20, 2021 for review and approval. The Environmental Screening Report has been prepared to increase the annual processing capacity at the DYEC from 140,000 tonnes per year to 160,000 tonnes per year. This additional capacity is needed to accommodate population growth within the two Regions, allow the DYEC to operate more efficiently and produce more energy. This increase in capacity will not require any modifications to existing infrastructure. 34 a K o W 0 N O � U Baseline Rd Courtice7Ct 4 - GP MagawaftDr 4d1 Crit � o I Crago DURHAM YORK °N ENERGY CENTRE (DY C) Lakv 0"mriU L The Screening process involved identifying and applying criteria for potential environmental effects, public/external agency and Indigenous consultation and the development of measures to mitigate any identified environmental effects. The proposed capacity increase is not expected to have any significant net effects on the environment. The results of the study were documented in an Environmental Screening Report, available for a 60 -calendar day review period from December 20, 2021 to February 18, 2022. The report is available for public review at durhamyorkwaste.ca If you are unable to access the digital copy of the report posted on this website or require an alternative format, please contact 1-800-667-5671. If you have concerns or comments regarding this project, please contact The Regional Municipality of Durham (contact details below) to discuss. If concerns regarding this project cannot be resolved in discussion with The Regional Municipality of Durham or The Regional Municipality of York, a person or party may request that the Ministry of the Environment, Conservation and Parks make an order for the project to comply with Part I I of the Environmental Assessment Act (referred to as a "elevation request"), which would elevate the project to an Individual Environmental Assessment. Requests for an "elevation request" must be submitted in writing to the Director, Environmental Assessment Branch and to the "Proponent" at the address listed below no later than 60 -calendar days from the date of this Notice (December 20, 2021). Elevation request must be made in accordance with the provisions set out in Section B.3. of the "Guide to environmental assessment requirements for waste management projects". The requester must include the following information in a written "elevation request": 3 TFI the name of the project and proponent; x the basis of the request; x that the project be elevated to an individual environmental assessment; x the nature of the specific environmental concerns that remain unresolved; x the benefits of requiring the proponent to undertake an individual environmental assessment; x information about any efforts to discuss/resolve these concerns/environmental effects with the proponent; x details of any correspondence between the person and the proponent; and x any other matters considered relevant by the requesting person. Please submit the elevation request to each of the following two contacts. If submitting a hard copy request, please advise by phone or email as well due to COVID-19 circumstances. If no elevation requests are received by 4:30 p.m. on February 18, 2022, The Regional Municipality of Durham and The Regional Municipality of York intend to proceed with the process as scheduled. Director, Environmental Assessment Branch Ministry of the Environment, Conservation and Parks 135 St. Clair Avenue W, 1St floor Toronto, ON M4V 1 P5 EABDirector(o)_ontario.ca Andrew Evans, M.A.Sc, P.Eng Project Manager, DYEC Regional Municipality of Durham 605 Rossland Road, East Whitby, ON L1 N 6A3 info durhamyorkwaste.ca 905-404-0888 ext. 4130 All personal information included in a submission - such as name, address, telephone number and property location - is collected, maintained, and disclosed by the Ministry of the Environment, Conservation and Parks for the purpose of transparency and consultation. The information is collected under the authority of the Environmental Assessment Act or is collected and maintained for the purpose of creating a record that is available to the general public as described in s.37 of the Freedom of Information and Protection of Privacy Act (FIPPA). Personal information you submit will become part of a public record that is available to the general public unless you request that your personal information remain confidential. For more information, please contact the Ministry of the Environment, Conservation and Park's Freedom of Information and Privacy Coordinator at (416) 327- 1434. 3 TFI Don Beaton, Bcom, M.P.A. B) That a copy of Report #2021 -WR -11 be forwarded to the Commissioner of Corporate Services Municipality of Clarington for information.„ As directed, please find a copy of Report -WR -11 of the Commissioner of Works, for your information. 1z atphl W atty-w Ralph Walton, Regional Clerk/Director of Legislative Services RW/np c: S. Siopis, Commissioner of Works If you require this information in an accessible format, please contact 1-800-372-1102 extension 2097. 3 TF1 December 22, 2021 June Gallagher Clerk Municipality of Clarington 40 Temperance Street Bowmanville ON L1 C 3A6 The Regional Municipality of Durham Dear Ms. Gallagher: Corporate Services Department RE: Energy from Waste -Waste Management Advisory Committee Legislative Services 2021 — 2022 Workplan (2021 -WR -11) Our File: D04 605 Rossland Rd. E. Level 1 Council of the Region of Durham, at its meeting held on December 22, PO Box 623 Whitby, ON L1N 6A3 2021, adopted the following recommendations of the Works Committee: Canada "A) That the Energy from Waste -Waste Management Advisory 905-668-7711 1-800-372-1102 Committee's 2021 — 2022 Workplan, as outlined in Attachment #1 Fax: 905-668-9963 of Report #2021 -WR -11 of the Commissioner of Works, be durham.ca approved; and Don Beaton, Bcom, M.P.A. B) That a copy of Report #2021 -WR -11 be forwarded to the Commissioner of Corporate Services Municipality of Clarington for information.„ As directed, please find a copy of Report -WR -11 of the Commissioner of Works, for your information. 1z atphl W atty-w Ralph Walton, Regional Clerk/Director of Legislative Services RW/np c: S. Siopis, Commissioner of Works If you require this information in an accessible format, please contact 1-800-372-1102 extension 2097. 3 TF1 If this information is required in an accessible format, please contact 1-800-372-1102 ext. 3540. The Regional Municipality of Durham Report To: Works Committee From: Commissioner of Works Report: #2021 -WR -11 Date: December 8, 2021 Subject: Energy from Waste -Waste Management Advisory Committee 2021 — 2022 Workplan Recommendations: That the Works Committee recommends to Regional Council: A) That the Energy from Waste -Waste Management Advisory Committee's 2021 — 2022 Workplan, as outlined in Attachment #1, be approved; and B) That a copy of this report be forwarded to the Municipality of Clarington for information. Report: 1. Purpose 1.1 The Energy from Waste -Waste Management Advisory Committee (EFW-WMAC) has developed a proposed Workplan (Attachment #1) to guide EFW-WMAC activities for the remainder of 2021 and 2022. Details of the proposed workplan are provided herein for approval by Works Committee and Regional Council. 2. Background 2.1 The EFW-WMAC was formed in response to a condition within the Host Community Agreement between the Regional Municipality of Durham (Durham Region) and the Municipality of Clarington (Clarington) and in accordance with Regional Council directives. The Terms of Reference for this committee was approved by both Durham Region and Clarington Councils. 3 TF1 Report #2021 -WR -11 Page 2 of 5 2.2 The Terms of Reference includes the following mandate for the committee: a. The EFW-WMAC will act in an advisory role to the Durham Works Committee on issues or concerns which arise with waste diversion, waste management, environmental performance and monitoring of the EFW facility, including the construction and operational phases. b. The EFW-WMAC will be comprised of volunteers from Durham Region appointed by Durham Regional Council and Clarington Council in accordance with these Terms of Reference. 3. Previous Reports and Decisions 3.1 Report #2021 -WR -2 recommended that five applicants selected by the Works Committee be appointed for a two-year term on the Energy from Waste — Waste Management Advisory Committee. The remaining four Advisory Committee members were appointed by the Municipality of Clarington. This report was approved by Regional Council on February 24, 2021. 3.2 Report #2021 -WR -4 recommended that the Terms of Reference for the Energy from Waste -Waste Management Advisory Committee remain unchanged with recommendations from the Advisory Committee continuing to go to the Durham Region Works Committee. The report was approved by Regional Council on March 24, 2021. 4. 2021 - 2022 Workplan 4.1 The purpose of the EFW-WMAC Workplan is to focus on tasks that will assist with implementation of Waste to Energy and Waste Diversion initiatives and to provide input on innovative approaches to waste reduction. 4.2 The key elements of the Workplan are consistent with the Guiding Principles endorsed by Regional Council for the development of the Long-term Waste Management Plan 2021-2040. EFW-WMAC Workplan elements are: a. Emphasize rethink, reduce, and reuse principles as the first steps in reducing waste generation. b. Deliver cost effective waste management services to a rapidly growing and diverse population. 3 TFI Report #2021 -WR -11 Page 3 of 5 c. Reinforce that producers and importers of designated products and packaging are to implement Extended Producer Responsibility (EPR). This will require adjustment to Durham Region waste programs. d. Apply innovative approaches to Durham Region waste streams to manage them as resources in a circular economy. 4.3 The proposed 2021 — 2022 EFW-WMAC Workplan (Attachment #1) identifies key tasks to be addressed during the current term including: x Research and increase knowledge on Anaerobic Digestion (AD) technologies. Advise on other AD materials and organic wastes that are not currently diverted from disposal X Increase Green Bin usage through promotion of a composting action plan. X Research, review and recommend additional waste/hazardous waste recycling efforts that have value for Durham Region such as propane containers, batteries, spent printer cartridges and other innovative reduce/re-use options. x Increase knowledge on waste pre-sorting including methods, environmental controls and technological advances. Use this knowledge to conduct community outreach for home-based pre-sorting. X Assist with communication on what Extended Producer Responsibility is, what will occur when implemented and why. X Assess optimization of Brock and Scugog/Uxbridge Township waste diversion programs. Transfer stations servicing these townships are examples of optimization opportunities. x Increase EFW-WMAC team member knowledge of the Durham York Energy Centre including current facility status, emissions control and processing capability. 4.4 The EFW-WMAC will also take a supporting role in participating in community outreach programs that support waste reduction and energy from waste awareness in Durham Region. 4.5 The EFW-WMAC will also consider the implementation of a Waste Reduction Achievement Award to be presented to the community on an aspect of recycling, Waste to Energy or waste diversion. 3 TFI Report #2021 -WR -11 5. Relationship to Strategic Plan Page 4 of 5 5.1 This report algins with/addresses the following strategic goals and priorities in the Durham Region Strategic Plan: a. Environmental Sustainability x Goal #1.2 —Increase waste diversion and resource recovery x Goal #1.3 —Protect, preserve and restore the natural environment including greenspaces, waterways, parks, trails, and farmlands. x Goal #1.4 —Demonstrate leadership in sustainability and addressing climate change. b. Service Excellence x Goal #5.3 —Demonstrate commitment to continuous quality improvement and communicating results. 6. Conclusion 6.1 The Energy from Waste -Waste Management Advisory Committee workplan includes tasks to support waste diversion and community education in the Regional Municipality of Durham. These tasks are complementary to the Regional Municipality of Durham's approved objectives in the Long-term Waste Management Plan (Waste Plan) and will support implementation of the Waste Plan and Five -Year Action Plan. 6.2 For additional information, please contact Gioseph Anello, Director, Waste Management Services, at 905-668-7711, extension 3445. 3 TF1 Report #2021 -WR -11 7. Attachments Attachment #1: EFW-WMAC Workplan (2021-2022) Respectfully submitted, Original signed by: Susan Siopis, P.Eng. Commissioner of Works Recommended for Presentation to Committee Original signed by: Elaine Baxter-Trahair Chief Administrative Officer 3 TFI Page 5 of 5 Energy from Waste -Waste Management Advisory Committee (EFW-WMAC) Workplan (2021-2022) 1. Purpose 1.1 The Regional Municipality of Durham's (Region) Energy from Waste -Waste Management Advisory Committee (EFW-WMAC) requires preparation of a Workplan for the coming year (2021-2022). 1.2 The purpose of EFW-WMAC Workplan is to focus on tasks that will assist with cost effective implementation of Waste to Energy and Waste Diversion initiatives and advise on innovative approaches for waste reduction. 2. Vision 2.1 Reduce the amount of waste created in Durham region and manage the generated waste as a resource. Build an innovative waste to energy and waste diversion system, balancing financial needs and environmental sustainability. 3. Previous EFW-WMAC Workplan and Waste Diversion Background 3.1 There was no previous EFW-WMAC Workplan. Background 3.2 The Region provides service to over 237,000 households, 212,000 single-family households, and 25,000 multi -family households according to 2019 records. Durham region is one of the fastest growing regions in Canada. By 2041, Durham region's population is expected to almost double, increasing to approximately 1.2 million people. This also means there will be a need for increased Green Bin and waste collection by 2041. 3.3 To meet the Province of Ontario's organics diversion targets of 70 per cent and 50 per cent respectively, for single family homes and multi residential buildings, a planned Mixed Waste Pre-sort and Anaerobic Digester facility has been approved by Council. If this information is required in an accessible form, please contact 1-800-372-1102 ext. 3560. EFW-WMAC Workplan (2021-2022) Page 2 of 4 3.4 There has been a clear shift towards more medium (townhouse)- and high- density (apartment buildings) forms of housing in recent years. 3.5 Management of Greenhouse Gas (GHG) emissions from legacy closed landfills through innovative approaches is also part of the Waste Management and Waste to Energy Programs. An important prior decision by Region Council is that no new landfills will be created. This prior decision was one of the reasons for establishing the Durham York Energy Centre. 3.6 Also, Extended Producer Responsibility (EPR) continues to be implemented via the Resource Recovery and Circular Economy Act (RRCEA), 2016. The Act, and its regulations are in force to ensure Producers of products become more responsible for managing recycling and minimize product packaging. The Region's transition date for the Blue Box Program to Producers will be July 1, 2024. 3.7 The Hazardous and Special Products (HSP) regulations were released in February 2021 are in effect on October 1, 2021. At that time, most materials (not including refillable propane cylinders and fertilizers) managed in the existing program will be transitioned to the new producer responsibility regime. 4. Workplan Elements Emphasize rethink, reduce, and reuse principles as the first steps in reducing waste generation. x Deliver cost effective waste management services to a rapidly growing and diverse population. x Reinforce that producers and importers of designated products and packaging are to implement Extended Producer Responsibility (EPR). This will then cause adjustment to Region waste programs as required. x Apply innovative approaches to Region waste streams to manage them as resources in a circular economy. 5. EFW-WMAC Workplan 2021-2022 Workplan Overview 5.1 Given the EFW-WMAC committee resources and one year time horizon for the Workplan, tasks are defined below. 3 TFI EFW-WMAC Workplan (2021-2022) Workplan Tasks 1. Anaerobic Digestion (AD): Page 3 of 4 Research and increase knowledge on AD technologies. Advise on other AD materials and organic wastes that are not currently diverted from landfill (examples: pet waste and diapers, which constitute significant volume in mixed waste garbage). 2. Increased Organics Diversion: Increase Green Bin usage - Green Bin usage is currently only 60 per cent, and garbage going to DYEC is approximately 40 to 50 per cent organic material that could go into the Green Bins. ii. Consider promotion of a composting action plan. 3. Research, review and recommend additional waste/hazardous waste recycling efforts that have value for Durham region: Small propane bottle (sent to landfill). ii. Larger propane bottle recycling, 10 -and 20 -pound bottles iii. Batteries (currently two curbside events per year) iv. Spent printer cartridges (value for recycling) V. Other innovative reduce/re-use options (brainstorming) 4. Waste pre-sorting: Increase knowledge on waste pre-sorting including methods, environmental controls, and technological advances. ii. Communication outreach for home-based pre-sorting 5. Extended Producer Responsibility (EPR): Assist with a communication of what EPR is, what will occur, and why. 6. Assess optimization of Brock and Scugog/Uxbridge township waste diversion programs (these areas of Durham region will grow along with Oshawa/Whitby/Ajax/Pickering. There is existing infrastructure for this. Transfer stations are an example of optimization.) 3 1❑ EFW-WMAC Workplan (2021-2022) Page 4 of 4 7. Durham York Energy Centre (DYEC) — EFW-WMAC team to increase knowledge of DYEC, complete a walkthrough detailing current facility status, emissions control, process capability (uptime). 6. EFW-WMAC Supporting Activities 6.1 The Committee also has a role in participating in community outreach programs that support waste reduction and energy from waste awareness and appreciation in Durham region. Consideration of future planned activities is recommended once COVID-19 protocols allow them. Examples are in-person events, education and outreach, combine EFW-WMAC community activities at the same time as other Regional events. 6.2 Expanding knowledge of waste management and waste diversion technologies and principles by reviewing presentations and engaging in discussion on Regional Waste Management Strategies. 7. Community Outreach and Stewardship (potential actions) Promote a Waste Reduction Achievement Award Presentation to community on some aspect of recycling, Waste to Energy, Waste diversion. (example: the source of microplastics and their effect on the environment). x For example - composting, organics diversion, with a requirement to notify Works staff beforehand 3 TFI December 22, 2021 The Right Honourable Justin Trudeau Lil Prime Minister Justin.trudeau(a_parl.gc.ca The Regional Municipality of Durham The Honourable Doug Ford Premier of Ontario Corporate Services premier ontario.ca Department — Legislative Services Honourable and Dear Sirs, 605 Rossland Rd. E. Level 1 RE: Correspondence from the Municipality of Chatham -Kent P.O. Box 623 dated November 10, 2021 regarding: Support Resolution Whitby, ON L1N 6A3 from the Council of Huron County passed October 20th re: Canada Homelessness Task Force Our File: P00 905-668-7711 1-800-372-1102 Council of the Region of Durham, at its meeting held on December 22, Fax: 905-668-9963 2021, adopted the following recommendations of the Health and Social Services Committee: Don Beaton, BCom, M.P.A. Commissioner of Corporate "WHEREAS on November 8, 2021 the Council for the Municipality of Services Chatham -Kent supported the following resolution: "THAT the County of Huron, due to the substantial increase in chronic homelessness not only in Huron County but across Ontario and Canada, requests the Province of Ontario and the Government of Canada to identify Homelessness a "Provincial" and "National Crisis" across the Province of Ontario and Canada. AND FURTHER THAT the Province of Ontario and Government of Canada acknowledge that lack of resources to support addiction and mental health programs to be a leading cause of homelessness. AND FURTHER THAT the County of Huron requests the Province of Ontario and Government of Canada to provide further financial support for housing and homelessness programs as well as increase funding to mental health and addiction services."; And whereas the Region of Durham has seen a significant increase in the incidence of homelessness since 2020 which has been highlighted by the COVID-19 pandemic; If you require this information in an accessible format, please contact 1-800-372-1102 extension 2097. 3 TF1 Page 2of3 And whereas the increase of homelessness is impacting the entire community both socially and economically; And whereas the Region is responding to urgent homelessness issues with a cross -sector task force of key stakeholders that includes: the health sector, social services, law enforcement, community partners, local municipalities, and business groups and those with lived experience; Now therefore be it resolved that the Region of Durham supports and endorses the November 8, 2021 Chatham -Kent resolution; And further that the Province of Ontario and Government of Canada expedite meaningful measures to appropriately support local Service Managers and District Social Services Administration Boards address the immediate homelessness crises; And further that the Province of Ontario create a cross -ministerial task force which would include the Ministry of Housing, Ministry of Health, Ministry of Children, Community and Social Services and Ministry of Finance in partnership with local Service Managers and District Social Services Administration Boards to create a fulsome strategy to address homelessness and the root cause of homelessness, mental health and addictions; And further that the motion be forwarded to all Durham Region municipalities, Ministry of Housing, Ministry of Health, Ministry of Children, Community and Social Services, Ministry of Finance, Ontario Big City Mayors (OBCM), and Association of Municipalities Ontario (AMO)." A copy of the correspondence from the Municipality of Chatham -Kent dated November 10, 2021 is attached. 2apIv W aWa-w Ralph Walton, Regional Clerk/Director of Legislative Services RW/np Attach. 3 TFI Page 3 of 3 c: The Honourable Steve Clark, Minister of Municipal Affairs and Housing The Honourable Christine Elliott, Minister of Health The Honourable Merrilee Fullerton, Minister of Children, Community and Social Services The Honourable Peter Bethlenfalvy, Minister of Finance Mayor Jeff Lehman, Chair, Ontario's Big City Mayors Jamie McGarvey, President, Association of Municipalities of Ontario N. Cooper, Clerk, Town of Ajax J. Gallagher, Clerk, Municipality of Clarington S. Cassel, City Clerk, City of Pickering D. Leroux, Clerk, Township of Uxbridge F. Lamanna, Clerk, Township of Brock Mary Medeiros, Clerk, City of Oshawa B. Jamieson, Clerk, Township of Scugog C. Harris, Clerk, Town of Whitby J. Smith, Clerk, Municipality of Chatham -Kent S. Danos-Papaconstantinou, Commissioner of Social Services 3 1❑ y� Chatham -Kent c ry Guwek, s6b & sou November 10, 2021 The Right Honourable Justin Trudeau, Prime Minster Justin.trudeau(cDparl.gc.ca The Honourable Doug Ford, Premier of Ontario premier(@ontario.ca Honourable and Dear Sirs: Municipality of Chatham -Kent Corporate Services Municipal Governance 315 King Street West, P.O. Box 640 Chatham ON N7M 5K8 Tel: 519.360.1998 Fax: 519.436.3237 Toll Free: 1.800.714.7497 Support Resolution from the Council of Huron County passed October 20th re: Homelessness Task Force Please be advised the Council of the Municipality of Chatham -Kent at its regular meeting held on November 8, 2021 supported the following resolution: "WHEREAS the County of Huron has established a "Huron County Homelessness Task Force" to address the rapidly increasing issue of homelessness in the County. THAT the County of Huron, due to the substantial increase in chronic homelessness not only in Huron County but across Ontario and Canada, requests the Province of Ontario and the Government of Canada to identify Homelessness a "Provincial' and "National Crisis" across the Province of Ontario and Canada. AND FURTHER THAT the Province of Ontario and Government of Canada acknowledge that lack of resources to support addiction and mental health programs to be a leading cause of homelessness. AND FURTHER THAT the County of Huron requests the Province of Ontario and Government of Canada to provide further financial support for housing and homelessness programs as well as increase funding to mental health and addiction services." If you have any questions or comments, please contact Judy Smith at ludys(a)chatham-kent.ca Sincerely, P, Judy Smith, CMO Director Municipal Governance Clerk /Freedom of Information Coordinator 3 �❑ December 23, 2021 Honourable Todd A. Smith Ontario Ministry of Energy 77 Grenville Street, 10th Floor r - Toronto ON M7A 2C1 r Honourable Sir: The Regional Municipality RE: Durham Region Re g. iNuclear Sector Strategy2022-2032 of Durham (2021 -COW -37) Our File: C13 Corporate Services Department Council of the Region of Durham, at its meeting held on December 22, Legislative Services 2021, adopted the following recommendations of the Committee of the 605 Rossland Rd. E. Whole: Level 1 PO Box 623 "A) That Regional Council approve Durham Region's Nuclear Sector Whitby, ON L1N 6A3 Canada Strategy 2022-2032, as the framework to guide and support the Region's role and effective participation in the nuclear sector; 905-668-7711 1-800-372-1102 Fax: 905-668-9963 B) That a copy of Report #2021 -COW -37 of the Chief Administrative Officer and the Durham Region Nuclear Sector Strategy 2022- durham.ca 2032, be sent to local area municipalities, the Mississaugas of Don Beaton, Bcom, M.P.A. Scugog Island First Nation, Curve Lake First Nation, Natural Commissioner of Corporate Resources Canada, Environment and Climate Change Canada, Services the Ontario Ministry of Energy, the Ontario Ministry of Economic Development, Job Creation and Trade, the Canadian Association of Nuclear Host Communities, and Ontario Power Generation (OPG); and C) That Regional staff notify key stakeholders in the community, the nuclear sector, local post -secondary institutions, and other organizations contacted through the engagement process once the strategy has been approved and posted at Durham.ca." Please find enclosed a copy of Report #2021 -COW -37 of the Chief Administrative Officer, for your information. Zaph, W catoTv Ralph Walton, Regional Clerk/Director of Legislative Services RW/np Attach. If you require this information in an accessible format, please contact 1-800-372-1102 extension 2097. 3 EF1 Page 2 of 2 c: Ontario Ministry of Economic Development, Job Creation and Trade Canadian Association of Nuclear Host Communities Environment and Climate Change Canada Ontario Power Generation Mississaugas of Scugog Island First Nation Curve Lake First Nation Natural Resources Canada N. Cooper, Clerk, Town of Ajax F. Lamanna Clerk, Township of Brock J. Gallagher, Clerk, Municipality of Clarington M. Medeiros, Clerk, City of Oshawa S. Cassel, Clerk, City of Pickering B. Jamieson, Clerk, Township of Scugog D. Leroux, Clerk, Township of Uxbridge C. Harris, Clerk, Town of Whitby E. Baxter-Trahair, Chief Administrative Officer 3 TFI If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2103 The Regional Municipality of Durham Report To: Committee of the Whole From: Chief Administrative Officer Report: #2021 -COW -37 Date: December 15. 2021 Subject: Durham Reaion Nuclear Sector Strateav 2022-2032 Recommendation: That Committee of the Whole recommends to Regional Council: A) That Regional Council approve Durham Region's Nuclear Sector Strategy 2022- 2032, as the framework to guide and support the Region's role and effective participation in the nuclear sector; B) That a copy of this report and the Durham Region Nuclear Sector Strategy 2022- 2032, be sent to local area municipalities, the Mississaugas of Scugog Island First Nation, Curve Lake First Nation, Natural Resources Canada, Environment and Climate Change Canada, the Ontario Ministry of Energy, the Ontario Ministry of Economic Development, Job Creation and Trade, the Canadian Association of Nuclear Host Communities, and Ontario Power Generation (OPG); and C) That Regional staff notify key stakeholders in the community, the nuclear sector, local post -secondary institutions, and other organizations contacted through the engagement process once the strategy has been approved and posted at Durham.ca. Report: Purpose 1.1 This report seeks Regional Council approval of the Durham Region Nuclear Sector Strategy 2022-2032 (Attachment 1) which identifies: 3 TF1 Report #2021 -COW -37 Paae2of9 a. The purpose and context for the Region's participation in the nuclear sector, b. Four key strategic goals, C. Desired outcomes related to each of the four goals, d. Actions to advance the Region toward those outcomes, and e. Mechanisms for governance, implementation, monitoring and evaluation, accountability, and evolution of the strategy. 2. Background 2.1 Early in 2020, Regional staff formed an internal Nuclear Sector Working Group (NSWG) with the intent of building staff capacity to respond to increasing activity in the nuclear sector. Their work pointed to the need for a cross -departmental strategy to support internal work as well as broader outreach to the community and a framework to support collaboration and partnership in the sector. 2.2 Development of the strategy was included as an action in the Region's 2021 business plan and budget. Accordingly, the NSWG created a project charter approved by Department Heads in March 2021. 2.3 An external engagement plan was also approved in Spring 2021. Two streams of engagement were conducted from late June to October 2021: a. Community engagement on the Your Voice Durham platform, and b. Partner, rights holder, and stakeholder engagement via a targeted survey sent directly to 44 organizations. As a follow up to the targeted survey, seven virtual focus groups were held with 24 individuals who had expressed interest in a deeper discussion on the proposed strategy. 2.4 A summary of feedback from the overall engagement process is posted on the Your Voice Durham website. The input we received from the community, partners, rights holders and stakeholders was integrated into the strategy. 2.5 The strategy document was further developed in consultation with the NSWG, Regional CAO, Regional Chair, Mayors of Clarington and Pickering, Mississaugas of Scugog Island First Nation, Curve Lake First Nation, Canadian Nuclear Laboratories, and OPG. 3. Previous Reports and Decisions 3.1 Over the years, Regional Council has received many reports related to the nuclear sector including Regional submissions on licensing applications to the Canadian Nuclear Safety Commission (CNSC) for facilities located in Durham, plans and progress of the Nuclear Waste Management Organization (NWMO). The most recent reports relevant to this strategy include: 3 TF1 Report #2021 -COW -37 Paae 3 of 9 a. 2020 -EDT -9 Natural Resources Canada Small Nuclear Reactor Action Plan b. 2021-A-3 2021 Climate Change Update and Corporate Climate Action Plan, C. 2021 -COW -7 Regional Submission to the Review of Ontario's Long -Term Energy Planning Framework, d. 2021 -COW -8 Region's Submission to the Canadian Nuclear Safety Commission (CNSC) for Ontario Power Generation's (OPG) renewal application for the Power Reactor Site Preparation Licence (PRSL) for the Darlington New Nuclear Project (DNNP) and Council's position on nuclear sector issues, and e. 2021 -COW -9 Response to the Canadian Radioactive Waste Policy Review. 4. Rationale for Developing a Regional Strategy 4.1 As the home of two large nuclear generating stations, a significant low-level radioactive waste remediation project, post -secondary nuclear energy faculty and research facilities, the Canadian Centre for Nuclear Sustainability (CCNS) and many nuclear supply chain companies, Durham Region is Canada's premier nuclear jurisdiction. In addition, OPG is consolidating its head office functions at a campus in Clarington by 2024.The nuclear sector is Durham's largest employer. The large nuclear projects and capital investments underway or planned for Durham provide opportunities and impacts for the community. 4.2 With growing urgency to address climate change, nuclear energy is increasingly seen globally as a critical support to decarbonization. Ontario currently has an electricity supply that is 96 per cent from non -emitting sources, about 60 per cent of which is from nuclear generation.' Thirty percent of Ontario's electricity is produced at the two nuclear generating stations in Durham Region. 4.3 According to analysis by the Canada Energy Regulator in 2020, electricity made up approximately 16 per cent of Canada's end-use energy demand.2 They forecast in their Evolving Scenario, that electricity demand increases at an average annual rate of 1 per cent to 27 per cent by 2050. This represents a 35 per cent increase in end- use demand for electricity. In the earlier part of the projection, renewables and natural gas replace phased -out coal generation. In the longer term, falling costs lead to large growth in non -hydro renewables such as wind and solar. The share of renewable and nuclear generation increases from 81 per cent currently to 90 per cent in 2050.3 1 2017 statistics from https://www.cer-rec.gc.ca/en/data-analysis/energV-markets/provincial-territorial- energv-profiles/provincial-territorial-energv-profiles-ontario. html 2 End use energy is the energy directly consumed by the user, as opposed to primary energy which is the energy that is harvested directly from natural resources. End use energy includes electricity, gasoline, and natural gas. From University of Calgary, Energy Education pages at https://energVeducation.ca/encyclopedia/End use energy . 3 Projection statistics for 2020 to 2050 period are from Canada's Energy Future 2020 published by Canada Energy Regulator accessed at https://www.cer-rec.gc.ca/en/data-analysis/canada-energy- future/2020/index.html 3 EE1❑ Report #2021 -COW -37 Paae 4 of 9 4.4 Electrification of transportation and space heating are identified in the Durham Community Energy Plan 2019 as two key measures to reduce our carbon emissions. In response to Regional Council's declaration of a climate emergency in January 2020, the Region established emission reduction targets for the corporation and the community. The availability of low carbon electricity from nuclear generation will be critical to power the Region's achievement of these targets. Nuclear generation will be a critical factor in retaining and expanding a low -carbon supply mix. 4.5 The urgency to address climate change through low -carbon energy also is fueling renewed federal and provincial support for new nuclear development including the first on -grid small modular reactor (SMR) at Darlington. Expansion of nuclear generation is recognized nationally as a vital step on the path to achieving a net - zero carbon economy. 4.6 As a result, attention to nuclear matters at the federal level has increased over the past couple of years including: a. The development by Natural Resources Canada of the Canada's Small Modular Reactor Action Plan 2020, b. A review of Canada's radioactive waste policy, C. A request for the Nuclear Waste Management Organization to develop an integrated strategy for low and intermediate level radioactive waste, and d. Early engagement by the CNSC in reviewing several proposed SMR designs. 4.7 The Province of Ontario has signed a Memorandum of Understanding with Alberta, Saskatchewan and New Brunswick that supports planning for SMR development and deployment as a way to move away from dependence on fossil fuels, in both on -grid and remote locations. 4.8 Currently, OPG has the only site in Canada licensed for new nuclear development with an accepted Environmental Assessment at Darlington. In fall 2021, the CNSC renewed OPG's licence to the prepare this site for new nuclear generation until 2031. 4.9 In addition, OPG is planning for the end of operations at the Pickering Nuclear Generating Station to occur by the end of 2025. This will launch a process of de - fueling, dewatering, and placement of the plant into safe storage by 2028. Fully decommissioning the station is a multi -decade process. In the interim, OPG is developing plans for beneficial reuse of parts of the Pickering site. 4.10 In Clarington, construction of the Port Granby Low-level Radioactive Waste Storage Facility commenced in 2015 and was capped in October 2021. The next phase of this project involves planning for site naturalization and ongoing monitoring. A CNSC hearing for licensing of this phase will occur in 2022. 3 1❑ Report #2021 -COW -37 Paae5of9 4.11 All of these activities and related decisions will directly affect Durham Region. For example, at least eight regulatory hearings related to licensing of nuclear facilities in Durham are anticipated in the decade ahead. 4.12 Accordingly, the general purposes of the Durham Nuclear Sector Strategy are to ensure that Regional Council and staff: a. Are well -versed on the impacts and opportunities related to the nuclear sector as a key employer in the Region, b. Have the knowledge and capacity to participate effectively in nuclear policy and regulatory matters, C. Have a framework for understanding where Regional efforts will be most effective, and for setting and revising priorities as needed in an evolving sector, and d. Are equipped to manage uncertainty, support and make evidence -based decisions, recognize opportunities, and work collaboratively with partners. 4.13 These points are captured in the mission statement: To empower our community by building understanding of the nuclear sector, working with partners to seize opportunities, and preparing for an evolving future. 5. Content of the Strategy 5.1 The strategy document is organized with the following major sections: a. An introduction that describes Durham's location, history, and nuclear facilities. b. A context section summarizing: x activity, federal and provincial policy directions, planned development and innovation in the nuclear energy sector, and X a chronology of anticipated milestones framed in the context of climate change and economic development opportunities. C. The five guiding principles scoped to reflect the Region's roles and authority: X Aligned with the Region's legislated responsibilities, our strategic plan vision, mission and values, and supportive of our strategic plan objectives. x Future -focused to ensure future generations continue to benefit from nuclear. We are striving to be good ancestors. x Community -centred, putting community safety and well-being first and balancing the impacts and opportunities associated with being a nuclear host community. x Respectful of Indigenous rights and treaties, nurturing the relationship with Indigenous peoples by building trust, reciprocity and respect. 3 TF1 Report #2021 -COW -37 Paae6of9 x Connected, recognizing that Durham Region is one agent in a complex nuclear ecosystem. d. The strategy development process including three phases of activity: x Phase 1: Awareness — a mainly internal process with staff doing research, learning about the sector, taking stock of existing activities related to the sector, assessing internal capacity and brainstorming ways to be more effective. x Phase 2: Listening — an external engagement process with the community, partners, rights holders, and stakeholders to get input on proposed goals and potential new or expanded roles for the Region. x Phase 3: Integrating input and lessons learned — the process of drafting the strategy document, incorporating what was learned from the engagement process and the development of other submissions over the past year. e. The four strategy goals (Grow Understanding, Maximize Prosperity, Sustain and Protect, Develop Partnerships) along with descriptions of the desired outcomes, and actions. f. Descriptions of strategy delivery mechanisms including: x Governance, x Implementation and financial plans, x Monitoring and evaluation plans, and x A commitment to making the strategy open, accountable, and evolving. g. Appendices providing additional detail on topics such as the regulatory system, acronyms used, and references. 5.2 Envisioned as a 10 -year strategy, the document outlines four key goals: x Grow understanding of the nuclear sector among Regional Council, staff, and the community. X Build prosperity by maximizing the benefits of being a nuclear host community and Canada's premier centre of the nuclear industry and innovation. X Protect and sustain the community by addressing impacts and opportunities of being a nuclear host community. x Lead and develop partnerships within the nuclear sector to build leadership capacity and influence decision-making. Under each goal, desired outcomes are identified along with actions intended to advance the Region towards those outcomes. In many cases, actions under one goal also will support progress under other goals. The "develop partnerships" objective, for example is likely to support all the others. Separating this objective 3 TFI Report #2021 -COW -37 Page 7 of 9 creates a focus in the early years of the strategy on the need to build supportive relationships across the sector. 6. Delivering the Strategy 6.1 The strategy as approved by Regional Council will provide the framework to guide and support the Region's effective participation in the nuclear sector. 6.2 Delivery of the strategy actions will be the responsibility of Regional staff in partnership with willing organizations in the sector. The Region's NSWG will lead and coordinate the strategy implementation. For each of the four goals, the Region's interdepartmental NSWG has a Director -level lead. 6.3 The NSWG will prepare an implementation plan identifying priorities for action to achieve the stated desired outcomes in the short (five year), medium (10 year), and long-term future (beyond 10 years). The implementation plan will provide the framework for establishing annual workplans and budgets as part of the Region's regular business planning and budget cycle. 6.4 When the strategy actions are refined for implementation, related baselines, milestones and/or indicators will be developed as mechanisms to measure and report progress. Results from the previous year will inform actions in subsequent years. 6.5 When necessary to establish a Regional position or policy direction on a key nuclear matter (e.g., submissions to the CNSC on licence applications), the NSWG will continue to bring a report to Regional Council for consideration and decision. 6.6 Annual reporting to Council and the community on strategy progress will begin in 2023. The strategy would be reviewed at least once every five years. 6.7 The strategy provided in Attachment 1 represents the substantive content of the document which, once approved, will undergo editorial and accessibility checks and graphic design to make it suitable for display on durham.ca. A communications plan has been prepared to support the launch of the strategy early in 2022. 3 TFI Report #2021 -COW -37 Page 8 of 9 7. 7.1 a b Strategy Governance Model Regional Council Approval of strategy, Regional policy directions, submissions to regulatory processes Office of the Department Heads CAO Approve policy recommendations and Champions the implementation plans and program level actions strategy. Supports NSWG with strategic policy advice, Strategic Goal Leads (Director level) report development, Provide strategic direction, project prioritization delivers J and management, partnership development communications, coordinates — external liaison Nuclear Sector Working Group and administrative Develop implementation, action plans, policy support recommendations, provide technical advice, monitoring and reporting Nuclear Sector Forum Annual or semi-annual gathering of strategy participants to share information, identify potential partnerships, provide key perspectives, support evaluation Relationship to Strategic Plan and Other Regional Plans The Durham Nuclear Sector Strategy 2022-2032 aligns with/addresses the following strategic goals and priorities in the Durham Region Strategic Plan: T& rt m n Under the goal of Environmental Sustainability, Priority 1.1 is to accelerate the adoption of green technologies and clean energy solutions through strategic partnerships and investment. Under the goal of Environmental Sustainability, Priority 1.1 is to demonstrate leadership in sustainability and addressing climate change. 3 1❑ n a Report #2021 -COW -37 Paae 9 of 9 C. Under the goal of Economic Prosperity, Priority 3.4 is to capitalize on Durham's strengths in key economic sectors to attract high-quality jobs. 7.2 The strategy also supports objectives outlined in the Region's declaration of a Climate Emergency in January 2020, the Durham Corporate Climate Change Action Plan 2020, Durham Community Energy Plan 2019, policy development through Envision Durham, and the annual Property Tax Strategy. 8. Conclusion 8.1 This report was prepared in collaboration with staff from Planning and Economic Development, Works, Social Services, Health, Finance and the CAD's Office, and was reviewed by Corporate Services — Legal Services. 8.2 The nuclear sector is currently the Region's largest employer and over the next decade and beyond, significant investment and change in the nuclear sector in Durham are anticipated. This strategy will provide a valuable framework to assist the Region in prioritizing and aligning our actions both internally and with external partners and identifying where to invest our resources. It will enhance our capacity to plan and prepare for developments in the sector, manage uncertainty and identify and seize new opportunities. It will allow us to gauge effectiveness over time and refocus efforts as needed to shape Durham's nuclear future and achieve the strategic plan vision of "a healthy prosperous community for all". 9. Attachments Attachment #1: Durham Region Nuclear Sector Strategy 2022-2032 Prepared by: Caitlin Rochon, Emergency Management Coordinator, at 905-668-7711, extension 6263 and Christine Drimmie, Manager, Corporate Initiatives, at 905-668-7711 extension 2029. Respectfully submitted, Original signed by Elaine C. Baxter-Trahair Chief Administrative Officer 3 1❑ Attachment 1 Empowering the Community: Durham's Nuclear Sector Strategy 2022-2032 3 TFI Acknowledgements Nuclear sector strategy development team Sandra Austin Christine Drimmie Simon Gill Caitlin Rochon James Kilgour Sangeetah Pabla Gary Williams Nuclear sector working group contributors Brian Bridgeman Lisa Fortuna Christopher Norris Mary Simpson Colleen Goodchild Michael Scott Dana Howes Nicole Pincombe Greg Lymer Pamela Khan Jason Hunt Robert Woon Jessica Eng Sendi Struna Joanne Paquette Shannon Keller Jonathan Dixon Sonia Salomone Laura Stephan Vidal Guerreiro Liam Hatch William (Bill) Holmes 3 TFI Rights holders, partners, and stakeholders Durham Region reached out to forty-five organizations and communities with a potential interest in the development of the strategy. In addition to those who responded anonymously to our surveys, we thank the following for participating in focus group sessions and providing us with feedback: Canadian Association of Nuclear Host Ministry of Economic Development, Job Communities Creation and Trade Central Lake Ontario Conservation Mississaugas of Scugog Island First Authority Nation City of Oshawa Municipality of Clarington City of Pickering Natural Resources Canada Clarington Board of Trade & Office of North American Young Generation in Economic Development Nuclear, Durham Chapter Curve Lake First Nation Ontario Power Generation Designer Edward Zucca Ontario Tech University 3 TF1 Table of contents Message from Regional Chair & CAO............................................................................. 1 Summary of Durham's Nuclear Sector Strategy 2022-2032 ............................................ 2 Introduction: Canada's premier nuclear community........................................................ 3 Facilityprofiles.............................................................................................................5 The context for the nuclear sector strategy..................................................................... 7 Powering the future: key milestones for Durham Region .............................................. 12 Developingthe strategy................................................................................................. 13 Guidingprinciples...................................................................................................... 13 Approach................................................................................................................... 14 Ourgoals....................................................................................................................... 17 Growunderstanding.................................................................................................. 18 Maximizeprosperity................................................................................................... 19 Sustainand protect.................................................................................................... 21 Lead and develop partnerships................................................................................. 23 Governance................................................................................................................... 25 Implementation and financial plans............................................................................... 26 Monitoring and evaluation plan..................................................................................... 26 Conclusion.................................................................................................................... 27 Appendices................................................................................................................... 29 AppendixA: acronyms............................................................................................... 29 Appendix B: nuclear sector ecosystem...................................................................... 31 Appendix C: legislative and regulatory framework..................................................... 32 Appendix D: nuclear generating station lifecycle....................................................... 36 Appendix E: radioactive waste stored in Durham Region .......................................... 37 Appendix F: upcoming CNSC licence hearings......................................................... 39 References.................................................................................................................... 40 Notes............................................................................................................................. 44 iv 3 HE❑ Message from Regional Chair & CAO In Durham Region, nuclear energy is a vital part of our story. Since the Region's creation in 1974, we have been a proud nuclear host community at the forefront of nuclear innovation. The nuclear facilities, supply chain, research and development capacity, and academic expertise found within our borders, make Durham Canada's premier nuclear jurisdiction. We are pleased to share with you the Region of Durham's Nuclear Sector Strategy, 2022-2032. Globally, our future depends on decarbonizing our communities and economy. Nuclear energy can play a pivotal role in that transition, and Darlington is the only site in Canada currently licenced for new nuclear development with an accepted Environmental Assessment. Powering our Region (and the province) with clean electricity will spark energy innovation, investment and job creation in Durham while helping to achieve our climate change goals. Durham's nuclear future holds both challenges and opportunities. A key goal of the strategy is to build our capacity to engage effectively and proactively in processes that will frame that future. As a regional municipality, Durham has responsibilities to protect the well-being of our residents and the environment and to sustain our local economy. Staying informed on the changes that leading-edge nuclear projects will bring to our community is a complex, ongoing task for Regional Council, staff, and citizens. Passing on this understanding to future residents will require a multi -generational effort. Collaboration with existing and potential nuclear host communities, Indigenous rights holders, regulatory bodies, industry, and academic partners over the next decade and beyond will be essential. This strategy positions us to partner in developing best practices. We will work diligently to play a leadership role in the nuclear sector and shape our future with a bold, forward -thinking, community-based strategy. Yours truly, John Henry, Durham Regional Chair and CEO Elaine C. Baxter-Trahair, Chief Administrative Officer 1 3 1❑ Vision "a healthy prosperous community for all" Mission To empower our community by building understanding of the nuclear sector, working with partners to seize opportunities, and preparing for an evolving future. Grow Understanding Maximize Awareness Prosperity Evaluate and Listening. Sustain and refine Protect Develop partnerships Delivered by Implement Integration 19 and track Regional staff Actions working with: Research &innovation the community Strategy Delivery Mechanisms Education nuclear industry x Led by Region's Nuclear Sector Convening, sharing, Indigenous Working Group learning rights -holders x Nuclear sector forum for information Capacity Building post -secondary sharing, advice, feedback Engagement institutions x Create 5, 10 and 10+ year action plans Collaboration government x Delivered via annual business planning agencies and budget process Partnerships non- x Policy positions approved by Council Financial arrangements governmental x Research, submissions posted on Supply chain organizations Durham.ca development subject matter x Annual reporting to Council Advocacy experts x 5- year review and update of strategy Measuring &reporting Introduction: Canada's premier nuclear community Our community has been one of Canada's principal nuclear jurisdictions since the 1960s. With two provincially owned nuclear generating stations and a robust local supply chain, Durham Region has become a hub of nuclear academia, engineering, and manufacturing. (note to reader: final image to be revised to include traditional territory/Treaty reference and facility locations) The Region of Durham was established in 1974 as one of several new regional governments in Ontario. What began as 21 local municipalities in the counties of Ontario, Northumberland, and Durham, became known as The Regional Municipality of Durham. Located on the east side of the Greater Toronto Area (GTA), the Region of Durham exists on the lands occupied by the Michi Saagiig Anishinaabeg for thousands of years prior to European colonization. These lands are the treaty and traditional territories of Michi Saagiig and Chippewa nations including the Mississaugas of Scugog Island First Nation, the Mississaugas of the Credit, Alderville First Nation, Hiawatha First 3 3 TFI Nation, Curve Lake First Nation, and the Chippewa Nations of Georgina Island, Beausoleil and Rama. Indigenous communities were progressively forced off these lands, then, in the Williams Treaties of 1923, they received one-time compensation representing a fraction of the estimated value of three tracts of land (more than 52,000 km2) in the area from the Ottawa River, south to Lake Ontario and west to Lake Huron. They also were denied fishing and hunting rights in these territories. After decades of court cases seeking redress for these wrongs, in 2018, the Williams Treaties First Nations and the Governments of Ontario and Canada came to a settlement that included "financial compensation ($666 million by Canada and $444 million by Ontario), recognition of treaty harvesting rights, and the ability for each of the First Nations to add 4,452 ha to their reserve. Additionally, the Governments of Ontario and Canada formally apologized to the Williams Treaties First Nations."' Our collective history shows that policies and strategies can be used to strengthen communities or to erode and eradicate their rights. We honour, recognize, and respect Indigenous Peoples as rights holders and stewards of the lands and waters on which we have the privilege to live. Within this strategy, we seek to learn from their values, knowledge, and stewardship roles. We also hope to create a dialogue with Indigenous communities on nuclear issues and build opportunities for collaboration with First Nations in a true government -to -government relationship. As part of a two-tier regional governance model, Durham Region has strong partnerships with our eight local area municipalities (Brock, Ajax, Clarington, Oshawa, Pickering, Scugog, Whitby and Uxbridge), local post -secondary institutions, and one of North America's largest and most diverse power producers, Ontario Power Generation (OPG).2 These relationships have allowed Durham to develop best practices in emergency management, climate change and innovation. n 3 TF1 Ontario Power Generation OPG is a publicly owned electricity generator with over 100 years of operating experience. OPG produces about half of Ontario's electricity. This legacy of local innovation and expertise continues with isotope production, new nuclear development planned at Darlington Nuclear Generating Station and the world's largest decommissioning project at Pickering Nuclear Generating Station. The newly founded (2020) Centre for Canadian Nuclear Sustainability in Pickering is envisioned as a world-class facility that will attract skilled jobs, innovative businesses, and economic development. Durham Region is positioned to be the centre of excellence in Canada for nuclear generation, research and development, supply chain, deployment of innovative nuclear technology, nuclear waste minimization, decommissioning, and fuel recycling. Working together, we can ensure the health and prosperity of our community, today and in the future. The next generation of nuclear scientists, operators and innovators are being trained here. Durham Region boasts the largest and most skilled talent pool for energy, environment and engineering in Ontario with an existing workforce of over 10,000 and access to a world-class talent pool of more than 400,000 students across the GTA. Ontario Tech University has the only accredited Nuclear Engineering undergraduate program in Canada and the third biggest in North America. Home to the Centre for Small Modular Reactors (SMRs), Ontario Tech is the first institution in Canada to be designated a Collaborating Centre to support the International Atomic Energy Agency (IAEA) activities on advanced nuclear power technology and non -electric applications of nuclear energy. Facility profiles Durham Region is home to five facilities and one proposed facility licensed by the Canadian Nuclear Safety Commission (CNSC): 5 3 TF1 Pickering Nuclear Generating Station facility profile • Owned and operated by OPG • Eight Canada Deuterium Uranium (CANDU) Reactors, one of the world's largest nuclear stations • Capacity: 3,100 Megawatts or about 14% of Ontario's electricity • In service: 1971-73 (Pickering A: Units 1-4), 1983-86 (Pickering B: Units 5-8) • Units 1 and 4 were refurbished between 1997-2005 • CNSC licence renewal: 2024 • The Pickering station employs 2,700 people • As of 2020, 396,935 used fuel bundles were stored in cooling pools at the station • Units 2 and 3 were taken out of service in 1997, the remaining units are scheduled to be taken out of service in 2024 and 2025, pending regulatory approval Pickering Waste Management Facility profile • Owned and operated by OPG • As of 2020, the facility housed 395,494 used fuel bundles and 1,012 m3 of intermediate -level waste from the refurbishment of Unit 1 and 4 • Two additional storage buildings and a processing building are planned by 2028 • CNSC licence renewal: 2027 Darlington Nuclear Generating Station facility profile • Owned and operated by OPG • Four CANDU Reactors • Capacity: 3,500 Megawatts or about 20% of Ontario's electricity • In service: 1990 • Refurbishment: 2016-2026 - $12.8 billion project • CNSC licence renewal: 2025 • The Darlington station employs 2,600 people • As of 2020, 313,853 used fuel bundles were stored in cooling pools at the station • The station is planned to operate until 2055 Darlington Waste Management Facility profile • Owned and operated by OPG • As of 2020, the facility housed 271,015 used fuel bundles stored in dry storage containers and 628 m3 of intermediate -level waste from refurbishment stored in regulated containers • CNSC licence renewal: 2023 Darlington New Nuclear Project profile • The site is owned by OPG • Located at the Darlington site, OPG is planning to construct Canada's first on - grid SMR • Capacity: Anticipated 300 Megawatt (however the site is approved for up to 4,800 Megawatts of generation) L 3 TF1 • CNSC renewed the licence to prepare the site in 2021 for 10 years • In service: planned for 2028 at the earliest Port Granby Waste Management Facility profile • Canadian Nuclear Laboratories (CNL) is implementing the Port Hope Area Initiative (PHAI) on behalf of the owner, Atomic Energy of Canada Limited (AECL), a federal Crown corporation • Permanent storage facility for 1.3 million tonnes of low-level radioactive waste • Waste was generated by radium and uranium refining at the former Crown corporation, Eldorado Nuclear Limited in Port Hope • The facility includes an engineered above ground mound that was capped and closed in October 2021 • $273 million capital project cost • CNSC licence renewal for Phase 3 of the project: 2022 • The site will be naturalized followed by long-term monitoring, water treatment and maintenance • AECL is leading a process to potentially create a nature reserve on the surplus federal lands at the site The context for the nuclear sector strategy Nuclear electricity generation has been a cornerstone of our economy since the Region was established in 1974. Today, over 30 per cent of Ontario's electricity is generated in Durham and the nuclear sector is the largest employer in the Region. Decisions that impact the sector affect us all. With many changes and opportunities expected in the coming decade, the Region must be positioned to make strategic choices to achieve our vision of "a healthy, prosperous community for all". Through this strategy, Durham Region will empower our community by growing understanding of the nuclear sector, working with partners to seize opportunities, and preparing for an evolving future. This vision and mission identify key responsibilities of our Regional Municipality: to pursue the parallel objectives of health and prosperity with balance and equity, today and for the future. The nuclear sector strategy supports several of Durham's strategic plan objectives, including: 1.1 Accelerate the adoption of green technologies and clean energy solutions through strategic partnerships and investment 2.2 Enhance community safety and well-being 3.4 Capitalize on Durham's strengths in key economic sectors to attract high-quality jobs 5.1 Optimize resources and partnerships to deliver exceptional quality services and value 7 UNEWS Durham's nuclear sector strategy also supports the Region's planned actions to implement the low carbon pathway adopted in the Durham Community Energy Plan (2019) and address the climate emergency declared by Regional Council (2020). The availability of low carbon electricity from nuclear generation will be critical to power the Region's achievement of these targets. Durham Region's community greenhouse gas (GHG) emissions reduction target is net zero by 2050. The Region has committed to reducing its corporate GHG emissions to net zero by 2045. The urgency to address climate change through low -carbon energy is also fuelling renewed federal and provincial support for new nuclear development including the first on -grid SMR at Darlington. Expansion of nuclear generation is recognized as a vital step on the path to achieving a net -zero carbon economy. We need every tool in the energy toolkit, including nuclear, renewables, storage, demand management and conservation. Compared to other sources of energy, nuclear generation has a small ecological footprint across its lifecycle. Nuclear energy produces more electricity on less land than any other non -emitting source.3 r a c v ro 4 v a 900 820 740 600 490 300 230 48 41 38 27 24 12 12 11 0 I I I — G°a\ `c° pay ayy 40 A, J a\ yea a�` �eac °1¢ 4 yr Qot° Ge�� �a Figure 1: Average lifecycle carbon dioxide equivalent (CO2e) emissions (including albedo effect) for commercially available electricity technologies." Nuclear electricity generation is safe. The nuclear industry is closely monitored and regulated by the Canadian Nuclear Safety Commission (CNSC). In 2019, the International Atomic Energy Agency (IAEA) conducted an Emergency Preparedness Review (EPREV) mission in response to a request from the Government of Canada. 3 TF1 The IAEA commended Canada for its implementation of the IAEA Safety Standards and for exceeding them in some cases (for example, for the pre -distribution program for potassium iodide). Durham Region works closely with OPG, local area municipalities, the province and the CNSC to ensure that emergency planning, training and co- ordination reflect industry international best practices to protect human health and safety and the environment. More than a million packages carrying a variety of nuclear substances are transported safely in Canada each year.5 With the phase-out of coal-fired electricity generation in Ontario, nuclear has provided a steady supply of baseload electricity to our grid and much -improved air quality to the province. Ontario transformed its energy supply mix and decreased GHG, nitrogen oxides, sulphur dioxide and mercury emissions.6 The Durham Region Health Department has expertise in public health monitoring and undertakes ongoing Population Health Assessments on the local health effects of radiation, specifically concerning cancer, congenital anomalies, and stillbirths.' These studies concluded that there is no indication that the nuclear generating stations cause health effects in the population. While all energy sources create by-products, nuclear is energy -dense, meaning that it creates immense amounts of electricity and minimal amounts of waste when compared to other energy sources. Some nuclear by-products, such as isotopes, are extremely valuable and save lives every day by sterilizing medical equipment and diagnosing and treating deadly diseases or are used for products such as exit signs and tactical devices. Today, almost half of the used nuclear fuel in Canada is safely stored and monitored in highly regulated interim facilities in Durham. In addition, Durham has a permanent engineered above -ground mound in Port Granby containing low-level radioactive waste and marginally contaminated soil from historic radium and uranium refining in Port Hope. As nuclear generation continues in Durham, additional nuclear waste will be produced and stored locally until permanent facilities, such as the used - fuel deep geologic repository (DGR), are operational. The Nuclear Waste Management Organization (NWMO) is a not-for-profit organization established in 2002 by Canada's nuclear electricity producers under the Nuclear Fuel Waste Act. It is mandated to site and develop a DGR for the permanent storage for Canada's used nuclear fuel. The NWMO is investigating two potential locations in Ontario for the DGR, Ignace and South Bruce, and is working with the communities towards site selection in 2023. The selected community must be a willing and informed host. E 3 r❑❑ Canada's deep geologic repository DGRs are considered best practice for permanent disposal of intermediate- and high-level materials, such as used fuel. They have been adopted by other countries with nuclear power programs, such as Finland, France, Sweden, Switzerland, and the United Kingdom. Suitable geology at great depths can contain the materials, using the geosphere to protect the biosphere. The materials are stored in deep rock with no valuable minerals that might interest future generations, and where no seismic activity has occurred for millions of years.$ Used fuel from nuclear generation will be moved to Canada's DGR starting in the mid -2040s. The federal government is leading Canada's SMR Action Plan for the development, demonstration, and deployment of SMRs. The Region has endorsed the principles of the SMR Action Plan and is a participating organization. Several Canadian provinces are also undertaking early planning for SMRs. Provincial -level planning for SMRs Ontario, New Brunswick, Saskatchewan and Alberta envision SMRs as a key mechanism in the transition away from fossil fuels. SMRs are nuclear reactors that produce 300 megawatts of electricity or less. They can support large established grids, small grids, and energy parity in remote off -grid communities and resource projects. The SMR at Darlington is intended to be the first of many in Canada and will create opportunities to support domestic energy needs, curb greenhouse gas emissions, and position Canada as a global leader in this emerging technology.9 Natural Resources Canada (NRCan) is developing just transition legislation to help prepare the Canadian workforce and communities to transition to a low -carbon economy. NRCan is also leading the process of modernizing Canada's Policy framework for managing the radioactive by-products of nuclear energy. Recognizing that Durham Region will be directly affected by the new policy approach, the Region participated in the federal review, meeting with NRCan staff and making a formal submission. Reviews like this are opportunities for Durham, as an experienced nuclear host community, to speak about the effects of the current policy on the 10 3 F❑❑ community and make suggestions for improvement. The time horizon involved in safely managing radioactive materials further highlights the need for the Region to take a strategic approach. Modernizing Canada's radioactive waste policy In late 2020, NRCan launched a process to review and modernize the radioactive waste policy framework. The goals are to ensure that Canada's policy aligns with international practices, is based on the best available science, and reflects the values and principles of Canadians. It will address Indigenous reconciliation in accordance with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), which was introduced in Canada through Bill C-15 the United Nations Declaration on the Rights of Indigenous Peoples Act (2020). It will also elaborate on the existing policy, add direction for the long-term management of low- and intermediate -level radioactive waste and incorporate evolving practices in the sector such as waste minimization. As a regional municipality, the safety and well-being of our community are our top priorities. We are responsible for protecting the environmental, social, and economic sustainability of our Region in the short and longer term. One way that we are doing so is by updating the Region's Official Plan, Envision Durham, which will define how land in our community should be used for years to come. Policy directions proposed for the new Official Plan support energy generation in the Region and will include the Pickering and Darlington station properties as employment areas to recognize and promote job creation. The proposed policy directions also include station planning zones and direct local area municipalities to restrict sensitive uses around the stations. At the Port Granby facility, the Official Plan will recognize the nature reserve recommended as part of site recovery. Over the coming decade, Ontario and Canada will make decisions on our energy supply mix, the site of Canada's DGR, the deployment of SMRs, the management of used nuclear fuel and by-products, and our continued transition to low carbon electricity. As these projects gain momentum, they will create tremendous opportunities for Durham Region. This strategy aims to empower Durham Region as an astute and forward -thinking partner to the nuclear sector. Information, education, and preparation can support Regional Council and residents in understanding the opportunities and effects of the nuclear facilities in the Region across their entire life cycle. We have a vital role to play in creating our future. 11 3 TFI Powering the future: key milestones for Durham Region • 2021 — OPG announces the technology selected for Canada's first planned on - grid SMR at Darlington • 2022 — The Port Granby Project is completed and the naturalized site continues to be monitored • 2022 — Laurentis Energy Partners, a subsidiary of OPG, begins installing tooling for MO -99, an important medical isotope, at Darlington • 2023 — NWMO selects the site for Canada's used fuel DGR • 2024 — OPG seeks a licence to begin construction of the Darlington SMR • 2024 — Pickering reactors begin to be sequentially shut down (units 1 and 4 in 2024 and units 5 and 8 in 2025, pending CNSC approval) • 2024 — OPG's new campus opens in Courtice • 2025 — Durham Region's corporate GHG emissions will be reduced to 20% below 2019 levels and Durham's community emissions will be reduced to 10% below 2019 levels • 2026 — Refurbishment of the reactors at Darlington is completed • 2028 — Pickering Station is put into safe storage and continues to be monitored • 2028 — The SMR at Darlington is planned to enter into service 2030s • By 2030, Durham Region's corporate GHG emissions will be reduced to 40% below 2019 levels and Durham's community emissions will be reduced to 30% below 2019 levels • Construction of Canada's DGR 2040s • By 2040, OPG will be a net zero carbon company • By 2045, Durham Region's corporate GHG emissions will be reduced by 100% below 2019 levels • Canada's DGR begins to accept used fuel from interim storage facilities including Pickering and Darlington 2050s and beyond • By 2050, Durham's community emissions will be 100% below 2019 levels and Canada will achieve net -zero emissions 12 3 TFI • Detailed decommissioning planning and decommissioning activities begin at Pickering • Darlington reaches the end of operations and the reactors are shut down • Detailed decommissioning planning and decommissioning activities begin at Darlington Note: project dates may change. Darlington Refurbishment Project The Darlington Nuclear Generating Station, one of the top performing nuclear generating stations in the world, has been powering Ontario since the early 1990s. The refurbishment project will extend Darlington's operations to 2055. Together with the additional years of operation, the project is expected to generate $89.9 billion in economic benefits for Ontario. The project creates 14,200 jobs per year. Once completed in late 2026, the continued operation of the station will allow Ontario to avoid 297 mega tonnes CO2e compared to carbon -based generation over its lifetime. Developing the strategy Guiding principles The following guiding principles were used to develop Durham's Nuclear Sector Strategy: Aligned The nuclear sector strategy recognizes the Region's legislated responsibilities, will align with our strategic plan vision, mission and values, and support our strategic plan objectives. Future -focused The nuclear sector strategy considers the short, medium and long-term timelines associated with nuclear facilities with the intent of creating positive socio-economic and environmental benefits for seven generations to come. We are striving to be good ancestors by being good stewards of the land and community. Community -centred The nuclear sector strategy puts community safety and well-being first and balances the impacts and opportunities associated with being a nuclear host community. 13 3 TFI Respects Indigenous rights and treaties The Region is committed to engaging with Indigenous peoples on nuclear matters and nurturing a meaningful relationship by building trust, reciprocity and respect. Connected The nuclear sector strategy recognizes that Durham Region is one agent in a complex nuclear ecosystem (see Appendix B: nuclear sector ecosystem). Approach Phase 1 Phase 2 Phase 3 Awareness Listening Integrating Lessons Learned Jan `19 — May '21 June '21- Oct `21 September'21- November '21 Phase 1: awareness Regional staff formed a Nuclear Sector Working Group with representatives from all departments. We held a series of workshops where we inventoried our mandated and current activities. We recognized the pressing need to improve the knowledge and capacity within the Region to respond on nuclear matters. We knew we needed to organize staff internally to support greater collaboration, and efficient and effective participation in hearings, consultations, and policy reviews and brainstormed ways we might achieve this. We identified Indigenous rights holders, potential partners, and stakeholders, sought out new and renewed relationships and invited virtual presentations from sector experts. Keeping in mind our guiding principles, this working group developed draft goals and preliminary actions to improve the Region's role and performance in the nuclear sector. Throughout 2020 and 2021 the working group collaborated on multiple nuclear initiatives including: x Participating in Natural Resources Canada's (NRCan) SMR Action Plan x Partnering with OPG and the City of Pickering on a study of the socio-economic and fiscal impacts of the retirement of the Pickering Nuclear Generating Station x Submitting an intervention to the CNSC hearing to support the renewal of OPG's licence to prepare the site at Darlington for new nuclear development x Responding with a Regional submission to the NRCan review of Canada's radioactive waste policy x Engaging with the Nuclear Waste Management Organization (NWMO) on their plans for low- and intermediate -level waste and transportation of used fuel x Increased engagement in initiatives led by the Canadian Association of Nuclear Host Communities (CANHC) 14 3 TFI The reviews, research, analysis, and consultation that went into each of these efforts supported the development of the nuclear sector strategy. Phase 2: listening The nuclear sector benefits from cross-pollination that facilitates innovation and partnership. As the Region began to develop this strategy, we recognized the importance of engaging broadly with partners, Indigenous rights holders, stakeholders, and the community. The nuclear sector working group formed a communications subcommittee and developed a consultation and engagement plan to tap into this extensive knowledge and experience as inputs to the strategy. Our consultation aimed to gather feedback on the draft strategy goals and gain insight into how the Region might establish itself as an active, engaged leader in the nuclear sector with the capacity to influence decisions that affect the well-being, economic development, and sustainability of our community. We directly surveyed rights holders, partners, and key stakeholders for their thoughts on the draft goals and potential actions, asking what the Region might do — more of, better, in addition to — the actions we already undertake. We held follow-up discussions with interested groups and two First Nations to get a richer understanding of their perspectives. To reach the community, we also posted the draft goals on Durham's community engagement platform and polled registered users. The community and survey respondents were supportive of the strategy and the four proposed goals. The most often -heard themes and ideas are presented below: x Develop a comprehensive plan to assess the current knowledge base of elected officials and increase their expertise and interest in the nuclear sector. x Strengthen co-operation and alignment among local area municipalities (e.g., by sharing information on employment and supply chain supported by the nuclear industry within each municipality). x Empower representatives from all levels of government to champion shared goals and interests (e.g., net zero carbon future; high quality, well -paying jobs; research and investment attraction). x Continue to educate Regional staff on the nuclear sector, sharing knowledge across departments and ensuring institutional knowledge transfer. Include local area municipal staff (e.g., Pickering and Clarington) who have deep insight and expertise in the nuclear sector built over decades of work. x Generate enthusiasm in our community about the benefits and value of the nuclear sector to Durham Region, Ontario and Canada and foster pride in achievements. x Support more youth engagement on nuclear issues through outreach to local school boards and by leveraging CityStudio Durham. 15 3 [Ell] x Durham Region, OPG, nuclear supply chain companies, and local post -secondary institutions should better educate the community and dispel common myths and misconceptions. x Address gaps in community knowledge with clear, credible, and accessible information using formal and informal approaches. x Convene regional -scale and sector -wide opportunities for sharing information and identifying potential partnership opportunities — leveraging and strengthening existing forums where they exist and addressing gaps where regular dialogue does not occur on nuclear matters. x Continue to participate in nuclear regulatory processes and policy development across all levels of government to stay abreast of impacts to the Durham community and influence decision-making. x Share Durham Region's experience as a nuclear host community with current and future potential nuclear host communities. x Advocate for formal funding agreements for municipal activities required by nuclear host communities using a strong, unified municipal voice. x Seek opportunities for growing the local nuclear supply chain and research sector by creating an economic vision focused on clean energy, a low carbon economy and life-saving medical isotopes. x Advocate that Canada's SMR technology development be rooted in Durham Region. x Seize the opportunity to showcase globally the decommissioning of the Pickering Nuclear Generating Station. Through our engagement with First Nations communities, we understand: x The ongoing impact of colonization, including policies, practices and discriminatory laws that have devalued Indigenous communities and created longstanding negative impacts on Indigenous peoples. The development of settler communities and industries, including nuclear power generation, was part of this process. There are significant treaty rights related to nuclear projects. x Both the Mississaugas of Scugog Island First Nation and Curve Lake First Nation expressed strong interests in the evolution of nuclear projects in the Region from both economic and environmental perspectives and a desire to be engaged as partners. x That co -creating language incorporated in the strategy that goes beyond land acknowledgement is a step forward towards building opportunities for true collaboration. Mutual interests were expressed in the Region establishing ongoing conversations with the Mississaugas of Scugog Island and Curve Lake First Nations communities, and potentially other First Nations communities in the territory on nuclear and other issues. This input from rights holders, partners, stakeholders, and the community helped us identify where investment of time and resources by the Region can make a difference. WT 3 1❑ View the full Enaaaement Summary Report. Phase 3: integrating input and lessons learned Feedback received from the community, rights holders, partners, and stakeholders was incorporated into all areas of the strategy, and particularly influenced the goals, actions and outcomes. In parallel with our work on this strategy, Regional staff responded to several nuclear policy and regulatory consultations. We also participated in studies, conducted research on nuclear decommissioning and responded to requests for Regional staff reviews of plans and documents related to upcoming regulatory processes. This involvement provided opportunities to adopt some ideas suggested during the listening phase. The key goals and areas for action outlined in this strategy focus on the Region being well-informed, prepared, ready to collaborate, and engaged in framing a future that will continue to evolve. There is much uncertainty: the urgency of society's response to climate change, the demand for sustainable energy, the speed of innovation, and public acceptance of science -based solutions, all have the potential to shape and shift our future. Other processes such as reconciliation with Indigenous peoples, federal policy development and international co-operation also will drive change in the nuclear sector. Accordingly, the Region should reconfirm priority actions as part of the annual business planning and budget process and refocus as needed. Implementation plans will need fiscal flexibility to address changing circumstances and emerging opportunities such as new partnerships or the availability of grant funding. Our goals This strategy is our long-range plan to build capacity within our organization and community to understand, anticipate and respond to the evolving nuclear activities in Durham and influence policy and decision-making that affect the Region. Recognizing the importance of the nuclear sector to the Region's residents, businesses and institutions, the nuclear sector strategy has four key goals: x Grow understanding of the nuclear sector among Regional Council, staff, and the community x Build prosperity by maximizing the benefits of being a nuclear host community and Canada's premier centre of the nuclear industry and innovation x Protect and sustain the community by addressing the impacts and opportunities of being a nuclear host community x Lead and develop partnerships within the nuclear sector to build leadership capacity and influence decision-making Listed with each goal are the desired outcomes and actions necessary to achieve them. 17 3 TF1 Grow understanding Whether residents have lived in Durham for many years or are new to the area, an understanding of the nuclear sector and its local significance is important. With a rapidly growing population, keeping the community informed and updated over the decades to come will require an ongoing effort. The Region has mandated education and awareness programs in place, however, communicating technical information produced by nuclear operators and regulators in ways that are clear, meaningful, and credible to residents is a challenge. The Region, with help from post -secondary institutions, Indigenous knowledge holders and subject matter experts, should play an important role as a trusted source of balanced information. The local effects of federal and provincial policy and regulatory processes related to nuclear facilities are complex (see Appendix C: legislative and regulatory framework). Regional Council and staff must be well -versed about this key industry in our community to support proper planning and strategic decision making. Durham Region will grow understanding of the nuclear sector to ensure that our community members, municipal staff and Regional Council are knowledgeable and engaged. Today, just over 700,000 people live in Durham Region. By 2051, the Region's population is expected to be 1.3 million. Maintaining a nuclear - aware community will be an ongoing challenge. Desired outcomes: • Increased understanding by Durham Regional Council, staff and the community of the effects and opportunities associated with being one of Canada's premier nuclear jurisdictions including the role of nuclear in electrifying transportation and heating to reduce greenhouse gas emissions. • Improved intergenerational knowledge transfer among Regional Council, staff, and community members throughout the nuclear lifecycle (see Appendix D: nuclear generating station lifecycle). • Improved alignment and consistency among Regional staff communications. • Increased community engagement and participation in nuclear sector engagement opportunities and planning. To achieve these outcomes, Durham Region will: • Continue and expand the nuclear sector working group to grow understanding of the nuclear sector by educating Regional and municipal staff on nuclear topics and projects, sharing knowledge, and ensuring institutional knowledge transfer. • Engage effectively with Regional Council and other elected officials on topics related to the nuclear sector through presentations, reports for information or endorsement. 3 EF1 • Survey elected officials, staff, and the community regularly to monitor awareness, identify and address knowledge gaps. • Develop and maintain a nuclear education package for Council orientation. • Develop and implement an integrated community awareness program to make accessible and current information available, increase knowledge and promote participation in planning and regulatory processes. • Conduct research on topics related to being a nuclear host community (e.g., decommissioning) and share findings with the community, rights holders, stakeholders and partners. • Use research findings to identify opportunities and best practices to continually improve community outreach and engagement. Maximize prosperity As a premier centre of nuclear industry, academic research and innovation, Durham Region is positioned to be Canada's centre of excellence for nuclear generation and supply chain, research and development, and deployment of innovative nuclear technology, nuclear waste minimization and fuel recycling. Additionally, the retirement of Pickering will be the largest decommissioning project in the world and will create significant economic development opportunities. In 2024, OPG will open its new corporate campus in Clarington. OPG is one of the largest, most diverse clean power producers in North America. In addition to nuclear,'o their energy portfolio includes oil and natural gas, hydroelectricity, biomass and solar." The relocation of their headquarters to the Region will solidify our status as a centre for nuclear expertise and a focal point for sustainable energy in North America. Decommissioning, medical isotope production, the development of Canada's first on - grid SMR and OPG's new headquarters will create direct and indirect jobs in science, technology, engineering, and mathematics (STEM) disciplines but also in a diverse array of professions and trades in Durham. The nuclear industry keeps 76,000 Canadians working.12 We recognize that this economic activity takes place on the traditional lands of Michi Saagiig Anishinaabeg. In the past, generations of Indigenous peoples were systemically excluded from the decision-making processes that created the nuclear industry in this area. The Region is committed to engaging and nurturing the relationship with First Nations to participate in, support and share in the benefits of the nuclear sector in a way that preserves the land and waters for future generations. We will capitalize on our strengths and continue our legacy of facilitating nuclear innovations to accelerate the adoption of non -emitting electricity solutions and maximize the benefits of being a nuclear community. 19 3 E❑ Medical isotopes Nuclear medicine advances human health and saves lives. Canada is a global leader in medical isotope production, used to sterilize medical devices and diagnose and treat deadly diseases such as cancer. The Pickering and Darlington Nuclear Generating Stations currently produce Cobalt -60 and will soon produce Molybdenum -99 making Durham Region a key source and exporter of these important life-saving radioisotopes. 13 The nuclear medicine industry supports 8,500 jobs in Canada. Desired outcomes: • Increased investment, research, and job creation in Durham's nuclear energy sector. • Develop a strong, diverse talent pipeline to support a nuclear energy innovation ecosystem in partnership with industry and post -secondary institutions. • Develop a reputation as a respected, innovative source of medical isotopes. • Increased local manufacturing to support Canada's SMR technology development. • Develop a reputation internationally as the global centre of nuclear expertise. To achieve these outcomes, Durham Region will: • Continue to participate in the pan -Canadian SMR Action Plan and work with other levels of government, Indigenous communities, the nuclear industry, post- secondary partners, and local area municipalities to help energize Canada's low carbon economy. • Advocate for Canada's SMR technology development and manufacturing to be rooted in Durham Region. • Work with OPG and other stakeholders to advance and accelerate repurposing plans for Pickering Nuclear Generating Station such as attracting medical isotope production and processing operation, a research facility, and other innovative low -carbon energy facilities. • Work to attract nuclear sector supply chain companies to relocate to Durham Region. • Continue to foster our partnership with the Canadian Centre for Nuclear Sustainability to realize local investments and nuclear decommissioning research, supply chain and employment opportunities to Durham Region. • Work with industry and post -secondary institutions to support nuclear sector experiential learning through CityStudio Durham. • Support the development of OPG's new headquarters in Clarington. 20 3 EF1 Sustain and protect Durham Region is transforming into a complete community, where residents live, learn, work and play. As a primary nuclear host jurisdiction in Canada, the Region must be well-informed about the sector and participate in policy reviews and regulatory processes that safeguard nuclear operations. The effects of a nuclear generating facility on the host community vary over the potential century -long life cycle of the station (see Appendix D: nuclear generating station lifecycle). It is vital for the Region to understand the implications and plan for the cumulative short and long-term effects (e.g., on employment, regional service demands, property taxation, research, supply chain and broader community economic considerations). In this way, Durham Region will be able to create the conditions for community success and ensure that future generations experience the benefits of being the clean energy capital of Canada. Nuclear emergency preparedness The Region has an established emergency management program. In the unlikely event of a nuclear emergency, Durham Region, the province and OPG have plans in place to respond and keep our community safe. As a key industry in Durham, OPG has supported our quality of life by providing high- quality jobs and property taxes (payments in lieu of taxes) which contribute to the Regional and local property tax base. These contributions vary over the lifespan of each facility. When the stations are operating, these payments help support the provision of Regional and municipal services. Forecasting and planning for the retirement of the Pickering Nuclear Generating Station and changes in related employment and property taxation are important steps toward mitigating impacts and identifying new opportunities. Planning for the future Durham Region, the City of Pickering, and OPG are currently undertaking a Financial, Economic, and Social Impact study on the retirement of the Pickering Nuclear Generating station. The study will provide a thorough understanding of decommissioning impacts and economic opportunities, as well as recommendations for maximizing opportunities with the Canadian Centre for Nuclear Sustainability to stimulate research, technology development, and innovation, while also attracting industry and talent. The study will be completed in 2022. 21 3 EI❑ In Durham, with multiple large nuclear sector facilities and projects, we may experience cumulative and connected effects over their life cycles. The demands on the Region related to tracking changes in policies and projects at several facilities is one reason for developing this strategy. These cumulative effects have a particular impact on the Indigenous rights holders engaged in this strategy. Durham Region will continue to advocate for policies that protect and sustain the environment and quality of life of current and future residents, and the fiscal health of the municipality, and for financial arrangements that ensure the social sustainability of nuclear facilities across their lifecycle. Desired outcomes: • Development of financial arrangements that recognize the responsibilities associated with being a nuclear host community. • Offset municipal and broader community socio-economic impacts associated with the retirement of Pickering Nuclear Generating Station. • Increased capacity for the Region to anticipate and prepare for changes related to nuclear projects in Durham. • Preserve/restore affected lands and waters. To achieve these outcomes, Durham Region will: • Research, plan for and mitigate socio-economic and fiscal impacts (e.g., direct and indirect job loss, loss of property tax, user rate and other municipal revenue) of each phase of the decommissioning process at Pickering Nuclear Generating Station. • Participate in nuclear regulatory processes and policy development across all levels of government to protect Regional interests. • Incorporate Indigenous knowledge into our policies and practices by making decisions with future generations in mind and focusing on principles of environmental stewardship. • Work with federal and provincial ministries and agencies to ensure that community well-being is a key consideration in nuclear policy decisions (e.g., around waste management, transportation, and decommissioning). • Negotiate formal financial arrangements that sustain the fiscal and socio- economic well-being of the Regional community and maintain the social licence for nuclear facilities throughout their life cycle. • Seek federal support in advance of generating station closure, during safe storage and during decommissioning phases to mitigate economic impacts and assist the Region and City of Pickering with economic diversification and renewal. • Apply policy techniques to identify strengths and weaknesses, review trends and future alternatives for the sector to consider how the Region might respond to potential changes and opportunities. 22 3 TFI • Assess the opportunities to engage existing Regional Council advisory committees (e.g., Durham Nuclear Health Committee, Durham Region Roundtable on Climate Change) and Regional engagement in other advisory committees on strategy implementation. Lead and develop partnerships The nuclear sector is broad with many organizations and industry groups each with a unique focus and role. Additionally, several provincial and federal ministries set policies and regulations for the nuclear sector. Durham has an opportunity to leverage our position as a key nuclear jurisdiction to develop new partnerships with these stakeholders to advance the goals of the nuclear sector strategy. The Region will also work to strengthen our partnerships with Indigenous communities, OPG and academia in key areas such as environmental stewardship, climate change and education. As a long-time nuclear community, Durham Region has confidence in the technology and municipal experience and expertise that it can share with other existing or potential host communities in Canada. By increasing our participation in organizations like CANHC, Durham Region will build leadership capacity, influence decision-making, and achieve our vision of a healthy, prosperous community for all. OPG's climate change plan The goals of OPG's climate change plan align with many of Durham Region's climate change objectives. For example, OPG is striving to be a net -zero carbon company by 2040, to lead the decarbonization of Ontario's economy, to ensure their operations are resilient to the impacts of a changing climate and that their host communities are protected. With major nuclear projects underway, new opportunities will arise. The Region will seek out opportunities where collaborative effort can help us meet our targets. CityStudio Durham CityStudio is a proven model of experiential learning and civic engagement focused on developing tomorrow's leaders by bringing municipal government to the classroom. CityStudio Durham is a collaboration between the Region of Durham, Durham Regional Police Services, Durham College, Ontario Tech University and Trent University Durham -GTA. By furthering connections between municipal government, academic institutions, and the community, post -secondary 23 MEEME students in Durham can apply their skills, creativity, and entrepreneurial spirit to real-world challenges facing our community to shape a better future for Durham. CityStudio also presents an opportunity for Indigenous students to become engaged in placemaking in their treaty lands, leading to potential career paths in various disciplines. CityStudio Durham helps to attract students and build the talent pipeline. This partnership has already resulted in studies on nuclear emergency preparedness, decommissioning and international nuclear host communities. Desired outcomes: • Increased knowledge sharing between the Region and other municipalities, Indigenous Nations, and provincial and federal ministries and agencies on the experience of being a nuclear host community. • Improved capacity for Durham Region to engage in and influence nuclear policy and provincial and federal decision making. • Increased collaboration on environmental stewardship and economic opportunities with Indigenous communities, OPG and other stakeholders. • Improved communication, co-operation and alignment with local area municipalities, other nuclear communities, Indigenous rights holders, and local elected officials on matters related to the nuclear sector. • Increased interaction and co-operation with the nuclear industry, academia, and provincial and federal ministries and agencies on nuclear sector matters. To achieve these outcomes, Durham Region will: • Foster relationships with and among Indigenous rights holders and key stakeholders to increase communication and identify partnership opportunities. • Establish formal partnerships with OPG, academia, Indigenous communities, and other nuclear sector organizations (e.g., AECL). • Create regular opportunities to discuss and advocate on nuclear matters with MPs and MPPs. • Actively participate in, and work with other nuclear host communities to build capacity and strengthen the role of CANHC. • Establish a regular information forum to learn from leading nuclear sector experts, local area municipalities, Indigenous rights holders, partners, and stakeholders and engage in discussions, network, and share lessons learned. • Attend and participate in nuclear sector conferences and events. 24 3 TF1 Governance Delivery of the strategy actions will be the responsibility of Regional staff, with endorsement from Regional Council and in partnership with willing organizations in the sector. The Region's internal Nuclear Sector Working Group has representatives from all departments and Director -level leads for each of the four goals in this strategy. This group will develop workplans to support the implementation of the strategy. With support from the CAD's Office, the Director -level strategy leads will be accountable for advancing key actions under their goal, in an integrated manner. Subcommittees of the working group will support key activities such as communications, preparation for CNSC hearings and research projects. The Working Group will bring reports and recommendations on nuclear issues to Regional Council via Committee of the Whole to establish Regional positions and submissions. Recognizing the need for external advice and perspectives on the implementation of the strategy, the Region will explore new and leverage existing mechanisms to support community engagement and awareness, help identify partnership opportunities, and participate in strategy evaluation and renewal. Regional Council CO ZZ Approval of strategy, Regional policy directions, submissions to regulatory m processes J `� Office of the Department Heads CAO Approve policy recommendations and Champions the implementation plans and program level actions strategy. Supports NSWG with strategic policy advice, Strategic Goal Leads {Director level} report development, Provide strategic direction, project prioritization delivers and management, partnership development communications, coordinates external liaison Nuclear Sector Working Group and administrative Develop implementation, action plans, policy > support recommendations, provide technical advice, a monitoring and reporting Nuclear Sector Forum Annual or semi-annual gathering of strategy participants to share information, identify potential partnerships, provide key perspectives, support evaluation 25 3 Ell] Implementation and financial plans The Nuclear Sector Working Group will prepare an implementation plan identifying priorities for action to achieve the stated desired outcomes in the short (5 year), medium (10 year), and long-term future (beyond 10 years). The implementation plan will provide the framework for establishing annual workplans and budgets as part of the Region's regular business planning and budget cycle. However, flexibility to meet emerging opportunities will be essential. While some of the activity, such as community outreach or CNSC hearings, may occur on a predictable timeline, policy reviews, research projects, and grants or intervenor funding opportunities may occur at any time. These allocations will be tracked as investments in the nuclear sector strategy and linked to the goals. The results of the previous year's work plan will inform the development of subsequent work plans. Example of implementation plan chart: Goal Action item Short Longer- Resource Partners term term Required Grow Community 2022- Ongoing $ OnTechU, understandin awareness program 2024 Staff time OPG g Sustain and Advocate for 2022- Ongoing Staff time NRCan, protect funding to support 2023 if CNSC, Regional and host required CANHC, municipal LAMs participation in CNSC hearings and nuclear policy reviews/ development Maximize Support OPG 2022- Staff time Clarington, prosperity headquarters 2024 OPG development Lead Participate in Annually Ongoing $ CANHC, partnerships CANHC and other Staff time sectoral/ nuclear partner organizations, organizations conferences Monitoring and evaluation plan Within the strategy for each of the four major goal areas, we have outlined desired outcomes and actions. An evaluation plan including indicators, milestones and metrics related to the actions will be developed to gauge effectiveness or progress toward the desired outcomes. Where appropriate and meaningful, quantitative data will be tracked (e.g., survey results, Durham's community engagement platform, website and social media analytics, NET 3 TFI number of new supply chain companies moving into the Region, change in employment associated with nuclear projects). Qualitative data will also be gathered such as evaluations of partnerships, forums and outreach efforts, storytelling about new local business development, exports of innovative nuclear technology, and results of research projects. In the early years of the strategy, the establishment of structures to support the program will be reported as milestones. Early milestones will include: • Launching the nuclear sector strategy with a virtual event • Presenting the results of the Pickering fiscal and socioeconomic study to Regional Council • Using the consultation and research findings to identify areas for improved communication in partnership with OPG, post -secondary institutions, rights holders, and other nuclear agencies • Developing orientation materials/sessions for Regional staff and the next Regional Council on the sector and the strategy • Developing outreach tools and surveys to gauge progress in improving levels of nuclear sector awareness among Regional staff, elected officials and the broader community • Establishing a nuclear sector information sharing forum Once these foundational actions are in place and the program evaluation plan is established, results will be tracked. The Nuclear Sector Working Group will provide a short annual report of actions to Regional Council, highlighting early results beginning in 2023. Conclusion With this strategy, the Region has set out actions within the scope of our authority and areas of interest so that our community and partners know how we plan to engage in the sector. Open: The strategy, action plans, associated budgets and progress reporting will be posted on the Region's website. Accountable: We will monitor the impact and effectiveness of our actions in supporting the four goals reporting annually on strategy milestones, progress indicators, research findings, etc. Evolving: We will use the results of previous years' plans and scans/analysis of emerging trends and opportunities in the sector to update and adapt implementation plans and review and update the strategy at least every 5 years. As a nuclear community for more than four decades, Durham Region has developed significant expertise in energy policy, nuclear regulatory processes, and community health and safety. Regional staff and decision -makers will track how this critical sector is 27 3 1❑ evolving in Durham so we can plan and prepare for the changes and help shape decisions by others. The strategy will assist the Region in prioritizing and aligning our actions internally and with external partners. It will enhance our capacity to keep pace with new developments in the sector, manage uncertainty and identify new opportunities. It will allow us to gauge our effectiveness over time and refocus our efforts as needed to shape Durham's nuclear future and achieve our vision of a healthy prosperous community for all. 3 TFI Appendices Appendix A: acronyms AECL Atomic Energy of Canada Limited CANDU Canada deuterium uranium (reactor) CANHC Canadian Association of Nuclear Host Communities CER Canada Energy Regulator CNA Canadian Nuclear Association CNL Canadian Nuclear Laboratories CNS Canadian Nuclear Society CNSC Canadian Nuclear Safety Commission CO2e Carbon dioxide equivalent COG CANDU Owners Group CSA Canadian Safety Association CSA Canadian Standards Association DGR Deep Geologic Repository DNNP Darlington New Nuclear Project EA Environmental Assessment ECCC Environment and Climate Change Canada EPREV Emergency Preparedness Review FNEP Federal Nuclear Emergency Plan GHG Greenhouse Gas IAAC Impact Assessment Agency of Canada IAEA International Atomic Energy Agency IEA International Energy Agency IESO Independent Electricity System Operator ILW Intermediate Level Waste KI Potassium Iodide LAM Local area municipalities 29 3 TFI LLW Low Level Waste MPAC Municipal Property Assessment Corporation NRCan Natural Resources Canada NWMO Nuclear Waste Management Organization OCNI Organization of Canadian Nuclear Industries OEB Ontario Energy Board OFMEM Office of the Fire Marshall and Emergency Management OPG Ontario Power Generation PDP Preliminary Decommissioning Plan PHAI Port Hope Area Initiative PHWR Pressurized Heavy Water Reactor REGDOC Canadian Nuclear Safety Commission Regulatory Documents SMR Small Modular Reactor STEM Science, Technology, Engineering and Mathematics UNDRIP United Nations Declaration on the Rights of Indigenous Peoples UNENE University Network of Excellence in Nuclear Engineering WANO World Association of Nuclear Operators 30 3 TFI Appendix B: nuclear sector ecosystem (note to reader: graphics are all being designed) Nuclear Industry Research Mining Fuel production Generators (OPG, Bruce, NB Power) Engineering Consultants I Supply chain OCNI COG CNL CCNS International energy/nuclear organizations: IEA IAEA WANO Canadian energy agencies and organizations CNSC Health NWMO (Regulatory, policy, services, sectoral) Canada AECL NRCan CER ECCCan CSA CAN CNS Provincial government and energy/ CANHC nuclear bodies (energy policy, supply, services) / Energy ministry OFMEM Indigenous OEB, IESO peoples Host community Nuclear facility 3 Ell[] Academia Research & Development Education OnTechU SMR Centre UNENE 31 Appendix C: legislative and regulatory framework The direction and regulation of the nuclear sector in Canada and Ontario is complex. Provincial framework Ministry of Energy Electricity Act Oversees the energy regulatory framework x Develops broad energy policy guiding generation mix, energy efficiency and conservation through the Long Term Energy Plan x Administers Smart Grid Fund Ministry of Finance Assessment Act Municipal Property Assessment Corporation Act Sets property tax rates on energy facilities through legislation x Oversees assessment system delivery agency, Municipal Property Assessment Corporation (MPAC) (which is funded by municipalities). Ministry of the Solicitor General Emergency Management and Civil Protection Act Responsible for administration of the Provincial Nuclear Emergency Response Plan. Administered by the Office of the Fire Marshall and Emergency Management. Ontario Energy Board Sets rules, establishes rates, licenses energy companies, monitors the wholesale market, develops new rate structure policies and educates consumers. Independent Electricity System Operator Competitively procures power, operates the power system, balances supply and demand, oversees the electricity market, plans for Ontario's future energy needs (i.e. plans resources for supply), promotes energy efficiency (Save ON energy programs) and operates the Smart Meter program. Local Distribution Companies (e.g., Elexicon, Oshawa Power and Utilities Corporation, Hydro One) Distribute Energy to homes and businesses via local energy transmission systems which they own and maintain. 32 3 TFI Ontario Power Generation Primary generator of bulk electricity in Ontario with nuclear, hydro gas fired and renewable generation. Wholly owned by the Province of Ontario. Bruce Power Operates the Bruce Nuclear Generating Station under contract. The station is owned by Ontario Power Generation. Distributed Energy Resources Dispersed capacity for electricity generation (e.g., wind turbines, solar installations) and storage. There are various ownership models (e.g., Indigenous energy projects). Hydro One Owns, plans and operates the bulk electricity transmission system in Ontario. Also acts as a local distribution company in parts of the Province (mainly northern Ontario, but also Brock Township). Majority of shared owned by the Province. OPG is also a shareholder. Municipalities Develop community energy plans, climate change plans, may wholly or partially own a local distribution company. Federal framework Canada Energy Regulator The Canada Energy Regulator (CER) regulates pipelines, energy development and trade in the Canadian public interest. CEB regulates pipeline and power line projects across their lifecycle. Ministry of Natural Resources Nuclear Energy Act Nuclear Safety and Control Act Nuclear Fuel Waste Act Nuclear Liability and Compensation Act Public Safety Canada Emergency Management Act 33 3 TFI Health Canada Health Canada leads the Federal Nuclear Emergency Plan (FNEP) and is responsible for coordinating the nuclear emergency response of more than 18 federal organizations to support affected provinces and territories. Ministry of Environment and Climate Change Environmental Assessment Act 2012 Impact Assessment Act 2019 (administered by Impact Assessment Agency of Canada) Canada Environmental Protection Act Species at Risk Act Minister of Transportation Navigation Protection Act Transportation of Dangerous Goods Act Minister of Fisheries and Oceans Fisheries Act Agencies Canadian Nuclear Safety Commission The Canadian Nuclear Safety Commission (CNSC) regulates the use of nuclear energy and materials to protect health, safety, security and the environment; to implement Canada's international commitments on the peaceful use of nuclear energy; and to disseminate objective scientific, technical and regulatory information to the public. CNSC was established in 2000 under the Nuclear Safety and Control Act and reports to Parliament through the Minister of Natural Resources. CNSC was created to replace the former Atomic Energy Control Board, which was founded in 1946. Regulates nuclear facilities at all life cycle stages from planning to operation to decommissioning through licensing and regulatory processes. The CNSC has up to seven appointed permanent members whose decisions are supported by more than 800 employees. These employees review applications for licences according to regulatory requirements, make recommendations to the Commission, and enforce compliance with the Nuclear Safety and Control Act, regulations, and any licence conditions imposed by the Commission. The CNSC issues regulatory documents (REGDOCs) that outline policies that guide the nuclear sector in Canada and practices required of the sector. For example, REGDOC- 2.11, Framework for Radioactive Waste Management and Decommissioning in Canada provides an overview of the governance and regulatory framework for radioactive waste 34 3 TFI management and decommissioning in Canada. These documents are periodically updated through a process that offers opportunities for public and industry comment. The CNSC regulates operations through monitoring, compliance and enforcement. Impact Assessment Agency of Canada (formerly Canadian Environmental Assessment Agency) Conducts EAs for major infrastructure and energy projects including new nuclear reactors, nuclear refurbishments, and new nuclear storage. Joint Review Panels Formed by the Impact Assessment Agency of Canada (IAAC) for Environmental Assessments (EA) / licencing of major nuclear projects and may include experts from both CNSC and IAAC. Atomic Energy of Canada Limited As a federal Crown corporation, Atomic Energy of Canada Limited's (AECL) mandate is to enable nuclear science and technology and to protect the environment by fulfilling the government of Canada's radioactive waste and decommissioning responsibilities. AECLs mission is to realize value to Canadians by driving nuclear innovation, creating a state -of- the -art nuclear campus, and cleaning up our legacy wastes. AECL receives federal funding to deliver on its mandate and reports to Parliament through the Minister of Natural Resources. It also leverages the unique capabilities at its sites to support industry and other third parties on commercial terms. AECL delivers its mandate through a long-term contract with Canadian Nuclear Laboratories for the management and operation of its sites. Nuclear Waste Management Organization Non-profit agency established in 2002 by the energy generators under the Nuclear Fuel Waste Act. Responsible for designing and implementing Canada's adaptive phased management plan for long-term management of used nuclear fuel. Includes public engagement, site selection (since 2010) and facilities and equipment design. 35 3 TF1 Appendix D: nuclear generating station lifecycle (note to reader: graphics are all being designed) The lifecycle of a nuclear generating station can extend over more than a century. Public engagement and community benefits are highly visible as the station is planned and built. Direct and indirect employment and development of the supply chain are clear benefits during the operational phases and refurbishment. At the end of the facility life cycle, attention turns to declining employment and the need to safely deactivate then dismantle the station, dispose of waste materials and restore the site to new uses. The CNSC issues four types of licences for a nuclear power plant that align with the lifecycle stages: site preparation, construction, operation, and decommissioning. (CNSC, 2021) NET 3 EFI Appendix E: radioactive waste stored in Durham Region A variety of low- and intermediate -level radioactive waste and used nuclear fuel is presently safely stored in Durham Region at facilities licensed by the CNSC. NRCan is in the process of updating the federal policy governing radioactive waste. In 2007, the NWMO was mandated to develop a deep geological repository for used nuclear fuel. The deep geologic repository will begin to accept used fuel from interim storage facilities including Pickering and Darlington in the mid -2040s. In 2021, they were additionally tasked with developing an integrated strategy for the management of low- and intermediate -level wastes. NWMO is continuing to monitor worldwide developments in advanced fuel cycles, including fuel reprocessing and recycling technologies and determine if Canada's used fuel may be partially reused. 14 Port Hope Area Initiative The Port Hope Area Initiative (PHAI) is a federal initiative for the remediation of contaminated sites and safe, long-term management of historic low-level radioactive waste resulting from the operations of Eldorado Nuclear Limited. The site is owned by Atomic Energy of Canada Limited (AECL), a federal crown corporation mandated to enable nuclear science and technology and to fulfil the government of Canada's radioactive waste and decommissioning activities. AECL has a long-term contract with Canadian Nuclear Laboratories to fulfil this mandate. The Eldorado Nuclear Limited uranium refinery operated in Port Hope from the 1930s to the 1980s. The estimated 1.2 million cubic metres of low-level waste in the Port Hope15 area represents 93% of the historic low-level radioactive waste in Canada16 The Port Granby site at the south-eastern boundary of the Municipality of Clarington contained low-level radioactive waste deposited between 1955 and 1988. Approximately 1.3 million tonnes of waste have been relocated from the former Port Granby waste management facility on the shore of Lake Ontario to a new, engineered above ground mound about 750 metres north of the legacy site. The facility includes an engineered aboveground mound and dedicated wastewater treatment facility. This management approach was selected following the Environmental Assessment (EA) for the Port Granby Project, conducted from 2002 to 2008, which included detailed environmental and technical studies and extensive public consultation. It was endorsed by the federal government and the Municipality of Clarington Council. In 2011, the CNSC granted a licence for the Port Granby Project to proceed. In 2012, Canada committed $1.28 billion for the PHAI, including $273 million over 10 years for the Port Granby Project. Site preparation work began in 2015 and the mound was successfully capped in October 2021. It has systems in place to monitor the site for hundreds of years. Clarington has confidence in the Port Granby facility. 37 3 TFI Pickering Nuclear Generating Station The Pickering Nuclear Generating Station began operating in 1971. This station currently houses 396,935 bundles of used nuclear fuel in wet storage (cooling pools) and 395,494 bundles in four dry storage facilities. 17 Two additional waste management buildings and a new processing building are planned by 2028. Low- and intermediate - level waste from Pickering operations has historically been shipped for processing and storage at the OPG Western Waste Management Facility in Kincardine. There is also 1,012 cubic metres of intermediate -level waste from the refurbishment of Pickering A stored in dry storage modules. 18 The used fuel and intermediate -level wastes are safely stored in interim waste facilities licensed by the CNSC. The current operating licence allows OPG to operate the Pickering Nuclear Generating Station until the end of 2024 and then begin the first steps of decommissioning (defueling, dewatering, preparing for safe storage) until 2028. The total projected used fuel waste by the end of that process would be 781,000 bundles. The Province of Ontario has asked OPG to seek CNSC approval to operate some reactors through 2025. According to OPG's Pickering Preliminary Decommissioning Plan (PDP),19 the used fuel will remain onsite until the NWMO DGR is available. Dismantling and demolition of the station will not begin until all used fuel has been removed. The decommissioning process will produce 62,016 cubic metres of low-level radioactive waste and 6,102 cubic metres of intermediate -level waste.20 According to the PDP, this waste was to be sent to the proposed low- and intermediate -level waste DGR in Kincardine, Ontario. However, OPG withdrew the DGR application in Spring 2020. Restoration of the Pickering site for beneficial reuse occurs after the low- and intermediate -level waste is removed. Darlington Nuclear Generating Station The Darlington Nuclear Generating Station currently houses 313,853 bundles of used nuclear fuel in wet storage and 271,015 bundles in dry storage containers. In addition, 628 cubic metres of intermediate -level retube waste is stored onsite in regulated containers.21 With the refurbishment underway, generation at the site is expected to conclude in 2055, at which point there is expected to be 1.271 million used fuel bundles on site. The refurbishment project produces low- and intermediate -level waste which is also being stored onsite. Used fuel and intermediate -level wastes are safely stored in interim waste facilities licensed by the CNSC. 3 TF1 Appendix F: upcoming CNSC licence hearings Over the next decade, eight licensing hearings are anticipated related to the nuclear facilities in Durham Region. Timeframe Type of CNSC licence application Phase III — Consolidation of waste nuclear substance licence for Port EVHope/Port Granby Facilities — long-term maintenance and monitoring 2022 Expected — Licence to extend Pickering Nuclear Generating Station operations to 2025 Early 2023 Darlington Waste Management Facility — Licence renewal 2024 Darlington New Nuclear Project — Licence to construct a new reactor Fall 2025 Darlington Nuclear Generating Station — Licence renewal Spring Pickering Waste Management Facility — Licence renewal 2027 2028 Darlington New Nuclear Project — Licence to operate a power reactor 2031 Darlington New Nuclear Project — Renewal of licence to prepare the site for potential future reactors 39 �11 References AECON. (2021). Darlington Nuclear Refurbishment: Clarington, Ontario. Retrieved from: https://www.aecon.com/our-projects/current/darlington-nuclear-refurbishment Atomic Energy of Canada Limited. (2018). About AECL. Queens printer for Canada. Retrieved from: https://www.aecl.ca/about-aecl/ Canadian Net -Zero Emissions Accountability Act, Statutes of Canada (2021, c. 22) https:Hlaws-lois.justice.gc.ca/eng/acts/C-19.3/ Canadian Nuclear Association. (2021). Medical Isotopes. Retrieved from: https://cna.ca/nuclear-medicine/medical-isotopes/ Canadian Nuclear Safety Commission. (2014). Joint review panel (JRP): Darlington new nuclear power plant. Queens Printer for Canada. Retrieved from: https://nuclearsafety.gc.ca/eng/the- commission/joint_review panel/darlington/ Canadian Nuclear Safety Commission. (2015). Mythbusters. Queens Printer for Canada. Retrieved from: http://nuclearsafety.gc.ca/eng/resources/mythbusters/index.cfm Canadian Nuclear Safety Commission. (2018). REGDOC-2.11, Framework for Radioactive Waste Management and Decommissioning in Canada. Queens Printer for Canada. Retrieved from: https:Hnuclearsafety.gc.ca/eng/acts- and-regulations/regulatory-documents/published/html/regdoc2-11 /index.cfm Canadian Nuclear Safety Commission. (2020). Seventh Canadian National Report for the Joint Convention. Queens Printer for Canada. Retrieved from: https:Hnuclearsafety.gc.ca/eng/resources/publications/reports/jointconvention/seve nth-report/seventh-report-joint-convention.cfm Canadian Nuclear Safety Commission. (2021). New reactor facility projects. Queens Printer for Canada. Retrieved from: http://nuclearsafety.gc.ca/eng/reactors/power- plants/new-reactor-facilities/index.cfm Canadian Nuclear Safety Commission. (2021). The Commission. Queens Printer for Canada. Retrieved from: http://nuclearsafety.gc.ca/eng/the-commission/index.cfm Canadian Nuclear Safety Commission. (2021). Transport FAQs on used nuclear fuel. Queens Printer for Canada. Retrieved from: http://nuclearsafety.gc.ca/eng/waste/faq/transport-of-used-nuclear-fuel/index.cfm Canadian Nuclear Safety Commission. (2021).CMD21-H102 Canadian Nuclear Laboratories Application to Renew the Licence for the Port Granby Long -Term Low -Level Radioactive Waste Management Project. Retrieved from: .A 3 E❑ https://www.nuclearsafetv.gc.ca/eng/the- commission/hearings/cmd/pdf/CMD21 /CMD21-H 102.pdf Comeau, P., Leombruni, P. and Kelsey, A. (2015). Lifecycle of a Nuclear Power Plant [Conference Presentation]. U.S. Women in Nuclear Conference. Retrieved from: https://slidePlayer.com/slide/l 2675058/ Curve Lake First Nation. (2021). Submission to Canadian Nuclear Safetv Commission CMD 21-H102.4 re: Application from Canadian Nuclear Laboratories (CNL) requesting a one-year licence renewal for the Port Granby Project retrieved from: https://www.nuclearsafety.gc.ca/eng/the- commission/hearings/cmd/pdf/CMD21 /CMD21-H 102-4.pdf Durham Region. (2018). Seizing the opportunity: the clean energy economy for Durham. https://www.durham.ca/en/citystudio/resources/Durham-Community- Energy-Plan-Part-1. pdf Durham Region. (2020). Durham Region Climate Change Emergency Declaration. Retrieved from: https://www.durham.ca/en/living- here/resources/Documents/Environ mental Stab ility/Region al -Council --- Emergency- Declaration.pdf Durham Region. (2020). Durham Region Strategic Plan 2020-2024. Retrieved from: https://www.durham.ca/en/regional- government/resources/Documents/Departments/CAOs-Office/Durham- Reg ion- Strategic-Plan-Accessible-High-Res.pdf Emergency Management and Civil Protection Act, Revised Statutes of Ontario (1990, c. E.9). https://www.ontario.ca/laws/statute/90e09 Gobien, M. and M. Ion (2020). NWMO-TR-2020-06 Nuclear Fuel Waste Projections in Canada — 2020 Update. Nuclear Waste Management Organization. Retrieved from: https://www.nwmo.ca/—/media/Site/Reports/2020/12/03/22/14/NWMOTR202006.a shx?la=en Granville, S. (personal communication, 2017). Submission of Preliminary Decommissioning Plans including P -Plan -00960-0001 R002 — Pickering Generating Stations A & B, CD#N-CORK-00531-18384. Ontario Power Generation. Laurentis Energy Partners. (2021). Nuclear Medicine and Isotopes. Retrieved from: https://Iaurentisenergy.com/our-services/nuclear-medicine-and-isotopes/ Ministry of Community Safety and Correctional Services. (2017). Provincial Nuclear Emergency Response Plan. Queens Printer for Ontario. Retrieved from: 41 3 EH❑ https://www.emergencymanagementontario.ca/english/emcommunity/response_re sources/plans/provincial_nuclear_emergency_response_plan.html Ministry of Energy (2021). The end of Coal. Queens Printer for Ontario. Retrieved from: https://www.ontario.ca/page/end-coal#section-6 Natural Resources Canada. (2016). Inventory of Radioactive Waste in Canada. Queens Printer for Canada. Retrieved from: https://www.nrcan.gc.ca/sites/www. nrcan.gc.ca/files/energy/pdf/uranium- nuclear/17-0467%20Canada%20Radioactive%20Waste%20Report_access_e.pdf Natural Resources Canada. (2021). Small Modular Reactors (SMRs) for Mining. Queens Printer for Canada. Retrieved from: https://www.nrcan.gc.ca/our-natural- resources/energy-sources-distribution/nuclear-energy-uran ium/canadas-small- nuclear-reactor-action-plan/small-modular-reactors-smrs-for-mining/22698 Nuclear Fuel Waste Act, Statutes of Canada (2002, c. 23). https://laws- lois.justice.gc.ca/eng/acts/N-27.7/ Nuclear Safety and Control Act, Statutes of Canada (1997, c. 9). https://laws- lois.justice.gc.ca/eng/acts/n-28.3/ Nuclear Waste Management Organization. (2021). Watching brief on advanced fuel cycles and alternative waste management technology. Retrieved from: https://www.nwmo.ca/—/media/Site/Reports/2021/03/25/15/41 /Watch ing-brief-on- advanced-fuel-cycles-and-alternative-waste-management-technology-2020- update.ashx?la=en Office of Nuclear Energy. (2021). 3 reasons why nuclear is clean and sustainable. U.S. Department of Energy. Retrieved from: https://www.energy.gov/ne/articles/3- reasons-why-nuclear-clean-and-sustainable Office of the Premier. (2021). Statement: Small Nuclear Reactor Study Released, Alberta Signs SMR MOU. Queens Printer for Ontario. Retrieved from: https:Hnews.ontario.ca/en/statement/61131 /small-nuclear-reactor-study-released- alberta-signs-smr-mou Ontario Power Generation. (2015). Repurposing Pickering: Exploring the possibilities for new uses and reuses on the Pickering Nuclear site. Retrieved from: https://www.opg.com/documents/repurposing-pickering-preliminary-assessment- report-pdf/ Ontario Power Generation. (2020). Building a brighter future: Our climate change plan. Retrieved from: https://www.opg.com/documents/opg-climate-change-plan-2020/ W 3 1❑ Ontario Power Generation. (2020). Media Release: Ontario Power Generation launching Centre for Canadian Nuclear Sustainability. Retrieved from: https://www.opg.com/media_releases/ontario-power-generation- launching-centre-for-canadian-nuclear-sustainability/ Ontario Power Generation. (2020). OPG paving the way for small modular reactor deployment. Retrieved from: KWV=RSJFRPPHGLDBUHOHDVHVRSJBYLQJ WKHZ)1 RU\PDOORGODUi.DRVRLMEORPHQW Ontario Power Generation. (2021). About us. Retrieved from: https://www.opg.com/about-us/ Ontario Power Generation. (2021). Darlington Refurbishment. Retrieved from: https://www.opg.com/strengthening-the-economy/our-projects/darlington- refurbishment/ Ontario Power Generation. (2021). The unseen wonders of nuclear power. Retrieved from: https://www.opg.com/innovating-for-tomorrow/medical-isotopes/ Ontario's Nuclear Advantage. (2021). The ONA Playbook: A toolkit for the Nuclear Industry. Retrieved from: https://www.ontariosnuclearadvantage.com/wp- content/uploads/2021/10/ONA Playbook_v7.pdf Port Hope Area Initiative. (2014). Factsheet: Port Granby Project Overview. Canadian Nuclear Laboratories. Retrieved from: https://www.phai.ca/site/media/phai/PGP_Fact%20Sheet_FINAL(l ).pdf Schlomer S., Bruckner, T., Fulton, L., Hertwich, E., McKinnon, A., Perczyk, D., Roy, J., Schaeffer, R., Sims, R., Smith, P. and Wiser, R. (2014). Table A.111.2 Emissions of selected electricity supply technologies (gCO2e/kWh). Annex III: Technology - specific cost and performance parameters. Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. Retrieved from: https://www. i pcc. ch/site/assets/uploads/2018/02/i pcc_wg 3_ar5_a n nex- iii.pdf#page=7 University of Ontario Institute of Technology. (2021). Nuclear Engineering. Retrieved from: https://ontariotechu.ca/programs/undergraduate/engineering/nuclear- engineering/ Wallace, S. I. (2020). Williams Treaties. The Canadian Encyclopedia. Retrieved from: https://www.thecanadianencyclopedia.ca/en/article/williams-treaties 43 3 [Ell] Notes 1 From Wallace, S. I. (2020) in references. 2 Ontario Power Generation is an agency of the province of Ontario. 3 From Office of Nuclear Energy (2021) in references. 4 Adapted from Schlomer S., et al. (2014). See references. 5 From Canadian Nuclear Safety Commission Transport FAQs (2021) in references. 6 From Ministry of Energy, the end of Coal (2021) in references. ' Radiation Health in Durham Region reports available upon request from the Durham Region Health Department. 8 From Ontario's Nuclear Advantage (2021) in references. 9 From Office of the Premier (2021) in references. 10 Ontario Power Generation also owns two nuclear generating stations that are leased to Bruce Power. 11 From Ontario Power Generation, About us (2021) in references. 12 From Ontario Power Generation, OPG paving the way for small modular reactor deployment (2020) in references. 13 From Ontario Power Generation, the unseen wonders of nuclear power (2021) in references. 14 From Nuclear Waste Management Organization, Watching brief on advanced fuel cycles and alternative waste management technology (2021) in references. 15 From the Canadian Nuclear Safety Commission, Seventh Canadian National Report for the Joint Convention (2020) in references. 16 From Natural Resources Canada, Inventory of Radioactive Waste in Canada (2016) in references. 1' From Gobien. M., and Ion, M. (2020) in references. 18 From the Canadian Nuclear Safety Commission Inventory of Radioactive Waste in Canada in the Seventh Canadian National Report for the Joint Convention (2019). See references. 19 From OPG, letter to CNSC, 2017 Submission of Preliminary Decommissioning Plans including P -Plan -00960-0001 R002 — Pickering Generating Stations A & B, CD#N- CORR-00531-18384. 3 1❑ 20 From the Canadian Nuclear Safety Commission Inventory of Radioactive Waste in Canada in the Seventh Canadian National Report for the Joint Convention (2019). See references. 21 Ibid. 3 TFI 45 THIS LETTER HAS BEEN FORWARDED TO THE EIGHT AREA CLERKS December 23, 2021 r N. Cooper, Clerk Town of Ajax 65 Harwood Avenue South The Regional Ajax, ON L1 S 2H9 Municipality of Durham Dear Ms. Cooper: Corporate Services Department Legislative Services RE: Discrimination of Freedom of Religion in Quebec's Bill 21 Our File: C00 605 Rossland Rd. E. Level 1 PO Box 623 Council of the Region of Durham, at its meeting held on December 22, Whitby, ON L1N 6A3 2021, adopted the following resolution: p g Canada 905-668-7711 "Whereas Durham Region consists of a diverse community, many of 1-800-372-1102 whom wear religious symbols including turbans, hi abs Kippa, the Fax: cross and many others; durham.ca And Whereas the fundamental right of religious freedom is protected Don Beaton, of Co M.P.A. Commissioner of Corporate b the Charter of Rights and Freedoms; Y g Services And Whereas Durham Region, as one of Canada's fastest growing and most multicultural and diverse regional municipalities, stands firmly to support religious freedom as this is aligned with our Freedom of Rights under the Canadian Charter of Rights; And Whereas Durham Region stands in solidarity with National Council of Canadian Muslims (NCCM) and the Canadian Civil Liberties Association (CCLA) in their legal challenge against Bill 21 in Quebec; And Whereas Durham Regional Council believes that our region is the cultural centre for diversity and Canadian multiculturalism and Council bears a responsibility to stand up in defence of the Canadian multicultural mosaic; Now therefore be it resolved that the Durham Regional Council support in principle the legal challenge against the discrimination of freedom of religion in Quebec's Bill 21; and If you require this information in an accessible format, please contact 1-800-372-1102 extension 2097. 3 EF1 Page 2 of 2 That staff be directed to report back on ways Durham Region could financially support the legal challenge by providing one-time funding not to exceed $50,000." 2 ciplti W aWo-w Ralph Walton, Regional Clerk/Director of Legislative Services RW/np c: Rod Phillips, MPP (Ajax) Lorne Coe, MPP (Whitby) Lindsay Park, MPP (Durham) Jennifer French, MPP (Oshawa) Laurie Scott, MPP (Haliburton/Kawartha Lakes/Brock) Peter Bethlenfalvy, MPP (Pickering -Uxbridge) David Piccini, MPP (Northumberland -Peterborough South) Mark Holland, MP (Ajax) Erin O'Toole, MP (Durham) Jamie Schmale MP (Haliburton/Kawartha Lakes/Brock) Philip Lawrence, MP (Northumberland/Peterborough South) Colin Carrie MP(Oshawa) Jennifer O'Connell, MP (Pickering/Uxbridge) Ryan Turnbull, MP (Whitby) 3 TFI December 23, 2021 The Honourable Kinga Surma Ontario Ministry of Infrastructure 777 Bay Street 5th Floor Toronto ON M5G 2C8 The Regional Municipality of Durham Honourable ODGDP: Corporate Services Department RE: Establishing a Municipal Services Corporation to Build and Legislative Services Operate the Regional Broadband Network (2021 -COW -32) 605 Rossland Rd. E. Our File: 000 Level 1 PO Box 623 Whitby, ON L1N 6A3 Council of the Region of Durham, at its meeting held on December 22, Canada 2021, adopted the following recommendations of the Committee of the 905-668-7711 Whole: 1-800-372-1102 Fax: 905-668-9963 "A) That the Region establish a Regional Broadband Network (the durham.ca "Network") through developing, constructing, and commercially operating a fibre optic network to provide open access fibre Don Beaton, Bcom, M.P.A. connectivity across Durham Region to deliver Regional services Commissioner of Corporate Services and to enable economic development and innovation across the Durham Region through improved broadband connectivity; B) That staff be authorized the incorporate a wholly-owned Municipal Services Corporation ("MSC', or the "Corporation"), being an Ontario Business Corporation Act ("OBCA") corporation pursuant to Section 203 of the Municipal Act, 2001 to develop, construct, and commercially operate the Network; C) That the following documents, substantially in the form attached to Report #2021 -COW -32 of the Commissioner of Planning and Economic Development, Commissioner of Works, Commissioner of Corporate Services, and Commissioner of Finance, be approved and adopted to incorporate and support the establishment of the MSC: i) MSC Enabling By-law (Attachment #2) ii) Name Consent (Attachment #3) iii) MSC By-law No. 1 (Attachment #4) iv) Organizational Resolutions (Attachment #5) If you require this information in an accessible format, please contact 1-800-372-1102 extension 2097. 3 EF1 Page 2 of 3 v) Consent to Act as First Director (Attachment #6) vi) Authorization to file Articles of Incorporation (Attachment #7) vii) Articles of Incorporation (Attachment #8) viii) Municipal Capital Facilities By-law (Attachment #9) ix) Municipal Capital Facilities Agreement (Attachment #10) x) Asset Transfer Policy (Attachment #11) A) Shareholder's Direction (Attachment #12) xii) Shareholder Resolution for Election of Director (Attachment #13); D) That the Initial Business Plan for the MSC (Confidential Attachment #14 to Report #2021 -COW -32, under separate cover) for the purposes outlined in the Shareholder's Direction be approved; E) That in order to support the establishment and operations of the new MSC, capital expenditures for the planned first-year 60km build of the Network in the estimated amount of $5.1 M and related operating expenditures in the estimated amount of $1.1 M be referred to the 2022 Business Plans and Budgets process; F) That Council authorize expenditures up to $500,000 to support the early establishment and network pre -build activities of the new corporation prior to the approval of the 2022 Business Plan and Budgets process, with financing to be provided at the discretion of the Commissioner of Finance; G) That staff be authorized to negotiate a Municipal Access Agreement with the MSC; H) That staff be authorized to negotiate a Corporate Services Agreement as outlined in Section 6.3 of the Shareholder's Direction with the MSC to the satisfaction of the Regional Solicitor, the Commissioner of Finance, and the Chief Administrative Officer; 1) That the Regional Chair and Clerk be authorized to execute any required documentation to implement the recommendations of Report #2021 -COW -32; and 3 TF1 Page 3 of 3 J) That a copy of Report #2021 -COW -32 be provided to the Area Municipalities, Innovation Science and Economic Development Canada, Ontario Ministry of Infrastructure, and Infrastructure Ontario." Please find enclosed a copy of Report #2021 -COW -32 of the Commissioner of Planning and Economic Development, Commissioner of Works, Commissioner of Corporate Services, and Commissioner of Finance, for your information. Zaph, W catoTv Ralph Walton, Regional Clerk/Director of Legislative Services RW/np Attach. c: Innovation, Science and Economic Development Canada Infrastructure Ontario N. Cooper, Clerk, Town of Ajax F. Lamanna Clerk, Township of Brock J. Gallagher, Clerk, Municipality of Clarington M. Medeiros, Clerk, City of Oshawa S. Cassel, Clerk, City of Pickering B. Jamieson, Clerk, Township of Scugog D. Leroux, Clerk, Township of Uxbridge C. Harris, Clerk, Town of Whitby E. Baxter-Trahair, Chief Administrative Officer B. Bridgeman, Commissioner of Planning and Economic Development S. Siopis, Commissioner of Works D. Beaton, Commissioner of Corporate Services N. Taylor, Commissioner of Finance 3 1❑ If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2564. The Regional Municipality of Durham Report To: Committee of the Whole From: Commissioner of Planning and Economic Development, Commissioner of Works, Commissioner of Corporate Services, and Commissioner of Finance Report: #2021 -COW -32 Date: December 15, 2021 Subject: Establishing a Municipal Services Corporation to build and operate the Regional Broadband Network Recommendation: That the Committee of the Whole recommends to Regional Council: A) That the Region establish a Regional Broadband Network (the "Network") through developing, constructing, and commercially operating a fibre optic network to provide open access fibre connectivity across Durham Region to deliver Regional services and to enable economic development and innovation across the Durham Region through improved broadband connectivity; B) That staff be authorized to incorporate a wholly-owned Municipal Services Corporation ("MSC", or the "Corporation"), being an Ontario Business Corporation Act ("OBCA") corporation pursuant to Section 203 of the Municipal Act, 2001 to develop, construct, and commercially operate the Network; C) That the following documents, substantially in the form attached, be approved and adopted to incorporate and support the establishment of the MSC: i) MSC Enabling By-law (Attachment #2) ii) Name Consent (Attachment #3) 3 1❑ Report #2021 -COW -32 iii) MSC By-law No. 1 (Attachment #4) iv) Organizational Resolutions (Attachment #5) v) Consent to Act as First Director (Attachment # 6) vi) Authorization to file Articles of Incorporation (Attachment #7) vii) Articles of Incorporation (Attachment #8) viii) Municipal Capital Facilities By-law (Attachment #9) ix) Municipal Capital Facilities Agreement (Attachment #10) x) Asset Transfer Policy (Attachment #11) A) Shareholder's Direction (Attachment #12) xii) Shareholder Resolution for Election of Director (Attachment #13) Paae 2 of 18 D) That the Initial Business Plan for the MSC (Confidential Attachment #14 under separate cover) for the purposes outlined in the Shareholder's Direction be approved; E) That in order to support the establishment and operations of the new MSC, capital expenditures for the planned first-year 60km build of the Network in the estimated amount of $5.1 M and related operating expenditures in the estimated amount of $1.1 M be referred to the 2022 Business Plans and Budgets process; F) That Council authorize expenditures up to $500,000 to support the early establishment and network pre -build activities of the new corporation prior to the approval of the 2022 Business Plan and Budgets process, with financing to be provided at the discretion of the Commissioner of Finance; G) That staff be authorized to negotiate a Municipal Access Agreement with the MSC; H) That staff be authorized to negotiate a Corporate Services Agreement as outlined in Section 6.3 of the Shareholder's Direction with the MSC to the satisfaction of the Regional Solicitor, the Commissioner of Finance, and the CAO; 1) That the Regional Chair and Clerk be authorized to execute any required documentation to implement the recommendations of this report; and J) That a copy of this report be provided to the Area Municipalities, Innovation Science and Economic Development Canada, Ontario Ministry of Infrastructure, and Infrastructure Ontario. 3 1❑ Report #2021 -COW -32 Page 3 of 18 Report: 1. Purpose 1.1 The purpose of this report is to: a. Provide an update on the rationale and design of the Network; b. Set out the rationale for the MSC and activities undertaken in support of it; and C. Outline the activities and approvals necessary to establish the MSC to develop, construct, and commercially operate the Network. 2. Background 2.1 Regional staff has been actively pursuing opportunities to achieve the vision of the Broadband Strategy which was approved by Council in 2019. The vision articulates that "Durham's residents, businesses, and institutions will have access to fast, reliable and affordable broadband services so that they may fully participate, compete and thrive in the 21st century." 2.2 Staff have been pursuing several senior government funding opportunities to fund the development and construction of the Network, including: a. Investing in Canada Infrastructure Program — Federal and Provincial Governments; b. Improving Connectivity for Ontario — Provincial Government; and C. Universal Broadband Fund — Federal Government. 2.3 To date, the Region has been successful in being awarded grants from all of the above listed grant programs and is in the process of negotiating or meeting the conditions of the respective funding agreements. 2.4 In January 2021 (#2021 -COW -18), Council directed staff to explore the formation of an MSC for the purpose of operating the Network. 2.5 Staff engaged the support of third party technical and legal subject matter experts and have undertaken a detailed examination of the benefits and considerations of creating an MSC to operate the Network. 2.6 As noted in #2021 -COW -18, one of the legislative requirements to establish an MSC was developing a Business Case Study for a Broadband MSC and conducting public consultation on the matter. This Business Case Study was developed by staff 3 rn Report #2021 -COW -32 Paae 4 of 18 and made available for public consultation on the Regional website and advertised in local media requesting public review and feedback. One comment was received from the Whitby Chamber of Commerce supporting the initiative in contributing to the viability of our communities. This report and its attachments are also available to the public through the Region's broadband web page and members of the public will be afforded the opportunity to make delegations at the meeting of the Regional Council which will consider this report. 3. Previous Reports and Decisions X #2019-P-3 - Connecting Our Communities; A Broadband Strategy for the Region of Durham; x #2020 -INFO -5 - Durham Region Broadband Program Update; x #2020 -EDT -6- Regional Broadband Network Business Case Development and Endorsement of Grant Funding Application; x #2020 -INFO -91 - Durham Region Broadband Program Update — Improving Connectivity for Ontario (ICON) Program, Stage 1 Application Status; x #2020 -COW -29 - Durham Broadband Stage Two Funding Application for the Provincial Improving Connectivity for Ontario (ICON) Program; x #2020 -EDT -11 — Pickering -Uxbridge Broadband Fibre Trunk Project; x #2021 -COW -2 - Regional Broadband Network, Applications for Provincial and Federal Funding; x #2021 -COW -18 — Update on Regional Broadband Program; Authority to Accept Improving Connectivity for Ontario (ICON) or Universal Broadband Fund (UBF) Grant Awards; and Authority to Make Project Commitments During Summer Recess; and x #2021 -COW -23 — CONFIDENTIAL Regional Broadband Program: Grant Application Status Update. 4. Update on the Rationale and Design of the Regional Broadband Network 4.1 In 2017, the Economic Development Strategy and Action Plan was endorsed by Regional Council, recognizing the importance of broadband as an indispensable 3 TFIF] Report #2021 -COW -32 Page 5 of 18 component of infrastructure required to drive economic growth across Durham Region. 4.2 Access to reliable Internet connectivity in underserved areas is critical for achieving most, if not all, of the other policy objectives the Region has outlined in its Strategic Plan (2020-2024). These include environmental sustainability, quality of life, improving health outcomes of vulnerable populations, building an inclusive, age friendly, safe community, leverage Durham Region's location, high-quality jobs, support agriculture, poverty reduction, value for money and quality of public service delivery. 4.3 Since the advent of the COVID 19 pandemic, broadband has become an essential service as it has been the means through which students have been accessing online education, individuals accessing healthcare, employees being able to work remotely, and businesses to service and reach their customers and suppliers. 4.4 The digital divide that exists in Durham Region and across Canada is too large for the private sector to solve on its own. The private sector has been primarily focused on enhancing broadband service availability in densely populated urban areas and communities, where acceptable rates of return can be more readily realized. 4.5 Both federal and provincial governments have recognized this issue and have launched several grant funding programs investing billions of dollars over the past number of years to help address the growing digital divide. 4.6 These programs have begun to show success, especially where regional and municipal governments have gotten involved. Regional initiatives such as SWIFT, and efforts in Peel Region and York Region have successfully leveraged existing network assets, expanded them, and made them available to private -sector internet service providers ("ISPs") to support their communities. 4.7 The needs of the Region are no different than other businesses. Demand for bandwidth continues to increase with the continued advances in efficiency and collaboration tools, remote video meeting applications and other internet accessed applications. It is forecasted that the Region's aggregate need for bandwidth at existing Regional sites is expected to grow by 200+% over the next 5 years. 4.8 The ability to meet the bandwidth needs in rural Region sites is a concern as some of those sites currently rely on more traditional low -speed connectivity solutions at relatively high prices. This is no different from other businesses and residences in those areas as they are currently considered either unserved or underserved by the 3 [[E❑❑ Report #2021 -COW -32 Paae 6 of 18 CRTC with respect to broadband access. Many of these areas and communities have no view or timeframe on when a stainable broadband solution will be available to meet current needs or the increased bandwidth needs in the not -so -distant future. 4.9 The Region's existing fibre network is currently used in urban areas for traffic signal control and monitoring as well as traffic camera surveillance. The expansion of this network into rural areas has begun with the with launch of the Uxbridge -Pickering backbone project. In addition, this backbone is planned to be further extended as part of senior government funding applications awards noted in #2021 -COW -23 in 2022-2023. Evolving into the Network, this backbone is envisioned to grow to approximately 700km to serve the increasing need for more sites to be connected including depots, water and waste treatment plants, transit shelters, emergency and police facilities and provide the foundation for a more intelligent community. 4.10 In addition to connecting the Region's facilities, the Network will bring high-speed fibre connectivity to underserved communities across Durham and be built as an open access network, one that allows multiple service providers to use a common underlying fibre infrastructure. The Network will be made available to ISPs, under commercial agreements, enabling them to accelerate the delivery of retail broadband services to those communities. It should be noted that it is the ISPs that will deliver broadband service to individual homes and businesses, not the MSC. 5. Rationale for a Broadband Municipal Services Corporation 5.1 Staff, with support from third party technical subject matter experts, developed a comprehensive Business Case Study for a Broadband MSC which included a jurisdictional scan and best practices on possible ownership models and governance structures for the Network. 5.2 The Region set the following objectives in establishing possible ownership and governance structures for the Network infrastructure and services: a. Establishing an entity that builds value through collaboration with other levels of government and the private sector, that strengthens the individual and collective position of Region -owned and other assets; b. Establishing a business and governance environment that provides focus and flexibility to react quickly to market needs and attract private sector broadband management expertise at the board and staff levels; C. Providing a mechanism through which to encourage private sector investment and secure senior levels of government funding; and 3 rn Report #2021 -COW -32 Page 7 of 18 d. Delivering transparency and accountability to the Region, as the sole shareholder. 5.3 From the analysis conducted and contained in the Business Case Study, the MSC model was identified as being best aligned with the Region's objectives and guiding principles and is consistent with best practices adopted by many municipalities across Canada. 5.4 The recommended ownership and governance structure to develop, construct, and commercially operate the Network involved establishing the MSC under the Ontario Business Corporations Act (OBCA) with the Region of Durham being the sole shareholder. 6. Legislative Requirements in Support of Establishing the MSC 6.1 The firm of WeirFoulds LLP was been engaged to assist the Region to incorporate a wholly-owned OBCA corporation pursuant to Section 203 of the Municipal Act, 2001 to develop, construct, and commercially operate the Network. The remainder of this section outlines the legislative requirements and highlights select pertinent details of each of the documents that have been produced to establish the MSC. 6.2 Durham Region Business Case Study for a Broadband MSC and Public Consultation (Attachment #1): a. A Durham Region Business Case Study for a Broadband MSC was developed by staff and made available for public consultation on the Regional website and advertised in local media requesting public review and feedback; and b. The posted public consultation period was advertised from September 2, 2021 to September 17, 2021. Staff extended the comment period for an additional two-week period. One comment was received from the Whitby Chamber of Commerce supporting the initiative in contributing to the viability of our communities. 6.3 MSC Enabling By-law (Attachment #2): a. A by-law to establish the MSC for the purposes of establishing, creating, and operating a Regional Telecommunications and Broadband Network in the Regional Municipality of Durham; and b. The Regional Chair John Henry is nominated and authorized to act as the incorporator and initial director and to elect Elaine Baxter-Trahair, Chief 3 rn Report #2021 -COW -32 Page 8 of 18 Administrative Officer, as a second director to serve with the Regional Chair on the board of directors. 6.4 Name Consent (Attachment #3): a. A Name Consent request to the Ministry of Government Services is required to use a specified corporate name. As part of the Name Consent and the Articles of Incorporation process, a newly upgraded automated name search for "Durham OneNet Inc." was completed to investigate if this name can be used as the legal registered name of the Corporation. The search results indicated no reasonable risk of conflict and "Durham OneNet Inc." is recommended and is used in the Name Consent request. 6.5 By -Law No.1 (Attachment #4): a. By-law #1 addresses matters generally pertaining to the transaction of the business and affairs of the Corporation and to establish the duties and powers of the directors and officers of the Corporation. 6.6 Organizational Resolutions (Attachment #5): The following Organizational Resolutions be adopted: a. The Region, as the initial shareholder, be issued one hundred (100) common shares in the capital of the Corporation for the consideration of ten dollars ($10.00), so that the Region is the shareholder of the Corporation. b. Regional Chair John Henry be appointed as the initial director, Chair, and initial President of the Corporation until such time a President is hired by the Board. C. Regional Solicitor Jason Hunt be appointed as the initial Secretary of the Corporation. d. WeirFoulds LLP be appointed solicitors for the Corporation. e. Deloitte Canada is appointed as auditors of the Corporation. 6.7 Consent to Act as First Director (Attachment #6): a. Form 2 of the OBCA that Chair John Henry consents to act as the first director of Durham OneNet Inc. Report #2021 -COW -32 Page 9 of 18 6.8 Authorization to file Articles of Incorporation (Attachment #7): a. Authorization by Regional Chair John Henry to file Articles of Incorporation with the Ministry of Government & Consumer Services. 6.9 Articles of Incorporation (Attachment #8): a. Incorporate "Durham OneNet Inc." as the name of the Corporation located at 605 Rossland Rd East, Whitby, Ontario Canada, L1 N 6A3 with the initial first director as Regional Chair John Henry. 6.10 Municipal Capital Facility By-law and Municipal Capital Facility Agreement (Attachment #9 and Attachment #10): a. The Municipal Act, 2001 prohibits "bonusing" any commercial enterprise through the granting of financial assistance, unless certain circumstances exist. One such circumstance is that the enterprise has entered into an agreement with the municipality to provide "municipal capital facilities"; b. Accordingly, WeirFoulds LLP has prepared a Municipal Capital Facilities Agreement between the Region and the Corporation to allow for the transferring of network facilities in the future and assistance by the Region to the Corporation for items including without limitation: funding of annual capital and operating expenses; support services; office space; and access to Regional rights of way; and C. The Municipal Act, 2001 requires that Council enact a bylaw authorizing that a municipal capital facilities agreement be entered into and requires that the Clerk provide notice of the by-law to the Ontario Minister of Finance and any other party to whom notice is required to be given pursuant to the Act or Regulations. 6.11 Asset Transfer Policy (Attachment #11): a. The applicable Regulation under section 203 of the Municipal Act, 2001 requires the Region to adopt and maintain policies on asset transfers to corporations, and for such a policy to be in place before any assets are transferred to a corporation and only following Council approval. There are no assets being transferred at this time. 3 rn Report #2021 -COW -32 6.12 Shareholder's Direction (Attachment #12): Paae 10 of 18 a. The Shareholder's Direction sets out for the board of directors, the Region's expectations of and objectives for the Corporation and the Corporation's mandate; scope of responsibility and reporting requirements; the relationship between the Corporation and the Region; and constitutes, where applicable, a unanimous shareholder declaration by the Region, as the sole shareholder of the Corporation, pursuant to subsection 108(3) of the OBCA; b. A Corporate Services Agreement between the Region and the Corporation will be created under which Regional employees and/or contractors of the Region will provide the necessary services to the Corporation; C. The board shall be comprised of a maximum of six directors which will consist of up to one elected member of Regional Council and up to one senior management staff of the Regional Municipality of Durham. The remaining board members will be comprised of the President of the Corporation and select independent members with expertise needed on the board; d. Remuneration of the directors of the Corporation will be determined by the Region from time to time and will be initially set as follows: x Board members who are neither members of Council nor Regional staff may receive remuneration of up to $20,000 per annum; X Members of Council will receive additional remuneration for their service on the board in the same amounts as Council members who are Chairs of Standing Committees or members of the Police Services Board (per By - Law # 08-2004), which is currently $6,000 per annum; and X Regional staff who serve as members of the board shall receive no additional remuneration beyond their salaries. 6.13 Shareholder Resolution for Election of Director (Attachment #13): a. Resolution to elect Elaine Baxter-Trahair, Chief Administrative Officer, as a director to serve with John Henry, Regional Chair, as the two (2) initial directors of the Corporation. 7. Financial Implications 7.1 The MSC for the Network will be a wholly owned subsidiary of the Region. This new business entity will be responsible for both the acquisition of capital assets and ongoing operational expenditures for the delivery of new Regional broadband 3 rn Report #2021 -COW -32 Paae 11 of 18 services that will require significant financial resources over the 10 -year forecast period. 7.2 The MSC's funding requirements will eventually be established by the management and board of directors of the new entity and addressed through an annual business plan and budget process which will be subject to the Region's approval as the sole shareholder. These requirements will be revisited on an annual basis, in consideration of senior government funding program opportunities (e.g., Improving Connectivity for Ontario, Universal Broadband Fund Grant Awards), alignment with other Regional capital projects and potential partnerships with the private sector, including arrangements for fibre swaps or joint builds to reduce capital and ongoing operational costs. 7.3 Upon Regional Council approval of the MSC, funds will be required to establish the new Corporation and hire staff. Regional funding in the amount of up to $1.1 M is required to cover the cost of management and staff, incorporating the organization, and developing the tools, processes, and procedures necessary to launch the new entity by January 1, 2022. 7.4 Financing arrangements of MSC expenditures will be defined by the following key principles: a. Continue to pursue and secure senior level government funding from existing and new programs promoting broadband connectivity in unserved and underserved areas. In 2021 the Region: x Secured $2.8M from Invest in Canada Infrastructure Program for the 38km Uxbridge -Pickering build. x Received senior levels of government grant awards for broadband funding that will partially fund the 2022-2023 build program. x Regional staff are currently pursuing ways to participate in the Provincial Government's Accelerated High Speed Internet Program for 2023+ builds. b. Seek partnership opportunities with private sector carriers/ISPs on joint builds to share network construction and operating costs. x Currently working on a joint network build opportunity with an ISP as part of the proposed 2022-2023 build program that could significantly reduce network construction and operating costs. 3 rn Report #2021 -COW -32 Paae 12 of 18 x Continue to engage with all private carriers operating in Durham Region on joint build opportunities to significantly reduce network construction and operating costs. C. Leverage existing and expanded network fibre infrastructure capacity and engage in network fibre swaps with other fibre network operators to eliminate the need for new builds where possible. d. Pursue opportunities to negotiate lower cost construction methods in rural areas (e.g., trenching vs horizontal boring) to reduce overall build costs. e. Seek `Dig Once' opportunities and coordinate fibre deployments with other capital works infrastructure projects led by the Region, Municipalities and Province. 7.5 By pursuing these key principles, it is estimated that approximately $20M to $40M could be realized in potential cost savings to reduce the total estimated cost of the current proposed network build over the 10 -year forecast period, as outlined in the Initial Business Plan. Capital Plan 7.6 Over the first ten years of operation, the primary capital assets to be acquired by the MSC include dark fibre for the backbone network, connections, and networking equipment. Year 1 Year 1 - Year 5 Year 1 -Year 10 2022 2022 to 2026) 2022 to 2031 $6.7M Total $62.OM Total $79.7M Total -$1.6M Grant funded* -$3.6M Grant funded* $58.4M MSC funded -$3.6M Grant funded* $76.1 M MSC funded $5.1 M MSC funded * This is based on the current grant funding that has been awarded and is being negotiated with senior levels of government. No additional grant funding has been factored into the capital forecast. Operating Plan 7.7 Over the ten-year operating plan, the primary expenditures for the MSC will include network operations, leases, insurance, human resource, support services, OSS/BSS, and marketing. Year 1 2022 Year 1 - Year 5 2022 to 2026 Year 1 -Year 10 2022 to 2031 $1.1 M $11.6M $28.5M 3 TFIF] Report #2021 -COW -32 Revenue Projections Paae 13 of 18 7.8 Revenue for the MSC will be generated from leasing connectivity to Regional and other MUSH customers as well as to private sector carriers and ISPs. 7.9 Over the ten-year forecast period, the primary sources of revenue for the MSC will include Regional IT connections, other MUSH circuits, traffic connections, dark fibre to ISPs, conduits, and connection fees. Year 1 2022 Year 1 - Year 5 2022 to 2026 Year 1 -Year 10 2022 to 2031 $0 $8.9M $43.5M 7.10 Based on the current business plan, including the assumptions for capital, operating, and revenue projections, it is anticipated that by year 5 the MSC revenues will cover the operating expenses and the MSC will be cash flow positive position by year 8. Total Costs 7.11 As outlined in the Initial Business Plan, the estimated total costs (excluding grants) of the proposed RBN and MSC will be the sum of the estimated capital and operating expenses less anticipated revenues. Year 1 (2022) Year 1 - Year 5 (2022 to 2026) Year 1 - Year 10 (2022 to 2031) $7.8M $64.7M $64.7M 7.12 It is recommended that in order to support the establishment and operation of the new MSC, capital infrastructure for the planned Network in the estimated amount of $5.1 M and related operating expenditures in the estimated amount of $1.1 M be referred to the 2022 Business Plans and Budgets process. Companion Report #2021 -COW -36 provides a recommended application for the 2021 federal gas tax allocation to broadband initiatives. 7.13 In order to support the early establishment and network pre -build activities of the new corporation prior to the approval of the 2022 Business Plan and Budgets process, it is recommended that authorization be granted to incur expenditures up to $500,000 with financing to be provided at the discretion of the Commissioner of Finance. 3 rn Report #2021 -COW -32 8. Risks Paae 14 of 18 8.1 A comprehensive risk analysis exercise has been conducted and a list of the most common risks along with their likelihood of occurrence and severity is included in the Initial Business Plan. 8.2 For each risk identified, a risk mitigation strategy has been developed to reduce the likelihood of occurrence or the severity of its impact in the case of occurrence. 8.3 The high -impact risks to consider fall under the following categories and include the following: a. Financial and Funding Risks x The current cost modeling is based on preliminary designs. As more detailed designs evolve there is a risk that project costs may increase. To mitigate this risk, staff have engaged professional services providers to provide advice and market information to build a robust financial model. The expertise of these consultants will continue to enable staff to update the financial model as the detailed design is completed. Additionally, lessons learned from the Region's ongoing Uxbridge -Pickering fibre backbone project will be applied to the model to increase the confidence in our estimates. x General economic conditions and competing priorities can limit access to Regional funding causing a slowdown in construction activity. To address this risk the MSC will have to adopt a conservative business plan for initial years and maintain accurate long-term forecasts. x Due to the extensive competition for broadband funding, there is a risk that the MSC may be unsuccessful in securing significant external funding through future grant programs, and as such there has not been any new grant funding factored into the 10 -year capital plan forecast. Without additional grant funding, the Region will need to be willing to self -fund the capital outlined in the capital plan and rely on the other financing key principles outlined in Section 7.4 to reduce the amount of required capital to build the target Network. x There is also the risk that the MSC may need ongoing operating subsidies, if there is not a strong uptake within the current proposed network, or the related services fails to be competitive with existing carriers or ISP offers in the market. 3 TFIF] Report #2021 -COW -32 b. Construction Risks Paae 15 of 18 x Due to increased government funding of broadband projects, it is expected that there will be a high volume of broadband construction activity nationally and specifically across Ontario over the next 3 years. This increase in demand may impact the availability of material and/or resources which may adversely impact the project schedule and/or impact the construction cost. To mitigate this risk, the MSC will seek to accelerate design activities and place early orders for some long -lead time material and plan out network builds well in advance to allow greater participation in contractor bidding and securing contractor resources. C. Business and Market Risks X There is a risk of overbuilding where areas in which the MSC had planned a build may already be served by a carrier/ISP or situations where a carrier/ISP may start building in response to the MSC's plans. The MSC is open to partnering with interested carriers/ISPs to carry out joint builds or negotiate network fibre swaps. This will further reduce the MSC's capital build costs. x There is a risk that the proposed network will not cover all areas leading to a negative public sentiment from residents who are left unserved. It should be noted that the MSC is only building a backbone network and the building of the last -mile network that services homes and businesses is left to ISPs. As one of the MSC's mandates, it will collaboratively work with both carriers and ISPs to maximize their reach to all underserved premises across Durham Region. x There is a risk that due to increased competition, the revenues forecasted may not be realized. The MSC will actively monitor the competitive landscape and the pricing strategies employed by other carriers and ISPs. x There is the risk that as the Network buildout may be viewed as competitive threat by private ISPs. To mitigate this risk, the MSC has positioned its buildout primarily to serve Regional requirements and providing the backbone into communities. The delivery of Internet services to the end customer will be left to the retail ISPs. Report #2021 -COW -32 d. Operational Risks Paae 16 of 18 x There is a risk that the MSC may not have the appropriate experience to enable it to operate the Network assets in a manner that is satisfactory to paying customers. To mitigate against this risk the MSC intends to hire qualified staff with prior telecommunications experience and leverage best practice operational processes. X In light of the impacts of climate change, there is an additional risk of service impact caused by Network outages due to weather events. These risks can be mitigated by adopting an underground design that is less prone to wind and ice storm events. Additionally, by keeping accurate as - built records of installed infrastructure and providing precise locate services, the MSC aims to reduce the chances of accidental damage by other parties. 9. Relationship to Strategic Plan 9.1 This report aligns with/addresses the following strategic goals and priorities in the Durham Region Strategic Plan: a. Economic Prosperity x Section 3.1 Position Durham Region as the location of choice for business; and x Section 3.3 Enhance communication and transportation networks to better connect people and move goods more effectively, supporting a full-service broadband network across the region. b. Service Excellence x Section 5.1 Optimize resources and partnerships to deliver exceptional quality services and value; and x Section 5.4 Drive organizational success though innovation, a skilled workforce, and modernized services. 10. Conclusion 10.1 The establishment of the MSC and the implementation of the Network is expected to deliver numerous economic and social benefits to Durham Region which includes bridging the digital divide by connecting Durham's underserved communities with 3 rn Report #2021 -COW -32 Page 17 of 18 high-speed fibre optic backbone and setting the stage for ISPs to build superior services to both residents and businesses. 10.2 Building and operating the Network will be most effectively achieved by the MSC that is wholly owned by the Region as it enables flexible partnerships in a competitive landscape. 10.3 The MSC will provide the necessary agility to make decisions quickly to grow the business within the defined strategy and defined budgets while allowing for future joint ventures, strategic partnerships, and pilot projects. 10.4 Through this work, the Region can achieve its broadband vision where Durham Region's residents, businesses and institutions will have access to fast, reliable, and affordable broadband services so that they may fully participate, compete, and thrive in the 21st century. 11. Attachments Attachment #1: Durham Region Business Case Study for a Broadband MSC Attachment #2: MSC Enabling By-law Attachment #3: Name Consent Attachment #4: By-law No. 1 Attachment #5: Organizational Resolutions Attachment #6: Consent to Act as First Director Attachment #7: Authorization to file Articles of Incorporation Attachment #8: Articles of Incorporation Attachment #9: Municipal Capital Facilities By-law Attachment #10: Municipal Capital Facilities Agreement Attachment #11: Asset Transfer Policy Attachment #12: Shareholder's Direction Attachment #13: Shareholder Resolution for Election of Director 3 TFIF] Report #2021 -COW -32 Paae 18 of 18 Attachment #14: Initial Business Plan (Confidential under separate cover) Respectfully submitted, Original signed by Brian Bridgeman, MCIP, RPP Commissioner of Planning and Economic Development Original signed by Susan Siopis, P. Eng. Commissioner of Works Original signed by Don Beaton, BCom, M.P.A. Commissioner of Corporate Services Original signed by Nancy Taylor, BBA, CPA, CA Commissioner of Finance/Treasurer Recommended for Presentation to Committee Original signed by Elaine C. Baxter-Trahair Chief Administrative Officer 3 rn Invest Durham Durham Region Business Case Study for Broadband Municipal Services Corporation (MSC) September 2, 2021 3 111]❑❑ Table of Contents 1 Introduction.......................................................................................................................... 2 2 Purpose.................................................................................................................................2 3 Objectives.............................................................................................................................3 4 Guiding principles............................................................................................................... 3 5 Alternatives.......................................................................................................................... 5 5.1 Potential Models....................................................................................................... 5 5.2 Best Practice Summary............................................................................................ 8 6 Proposed Structure...........................................................................................................12 6.1 Legal Entity............................................................................................................. 14 6.2 Entity Ownership..................................................................................................... 14 7 Governance........................................................................................................................14 7.1 Organizational Structure......................................................................................... 14 7.2 Board of Directors and Staff.................................................................................... 14 7.3 Strategic Governance Considerations.................................................................... 15 8 Conclusions.......................................................................................................................15 3 EI1❑❑ 1 Introduction In 2017, the Economic Development Strategy and Action Plan was endorsed by Regional Council, recognizing the importance of broadband as an indispensable component of infrastructure required to drive economic growth across the region. Stakeholder consultations highlighted the exponential growth of demand across the Region, as well as the state of penetration of broadband services, which were focused primarily within urban areas. With the reluctance of internet service providers to upgrade infrastructure to deliver broadband services to more rural areas of the region, the viability of businesses in those areas, over the long-term, was noted to be hindered due to the inability to leverage new and innovative internet-based technologies. The Region has identified the first steps for the delivery of a Regional Broadband Network and services. In an effort to ensure that strong governance practices are adopted to guide the development and oversight of the Regional Broadband Network, the Region proposes establishing a Municipal Services Corporation (MSC) that is intended to serve as a governance vehicle to support the Region's plans for a broadband network. The development of such an entity is permitted under the 2001 Municipal Act Legislation and has become a common best practice for many municipalities as a preferred governance vehicle for municipal broadband networks. Throughout the remainder of this document, the proposed Durham Regional Broadband MSC will be referred to as DRB- MSC. 2 Purpose This document provides additional information on the proposed new governance model, setting out the objectives, mandate, and guiding principles of DRB -MSC. It further discusses governance options, structure, required support, relationship to the Region, and reporting activities; constituting the provincially required business case study for a proposed Municipal Services Corporation. 3 rn 2 Further details regarding the specific role of the Region, DRB -MSC and other entities including private sector participants, will be developed and brought back to Council for decisions and direction at a later time. 3 Objectives The Region's objectives in establishing the DRB -MSC for broadband infrastructure and services are as follows: x Establish an entity that builds value for the Region through collaboration with other levels of government and the private sector, that strengthens the individual and collective position of Region -owned and other assets. x Establishing a business and governance environment that provides flexibility to react quickly to market needs and attract private sector broadband management expertise at the board and staff levels. x Provide a mechanism through which to encourage private sector investment. x Provide a mechanism through which to secure senior government funding. x Provide transparency and accountability to the Region, as the sole shareholder. 4 Guiding principles The Directors and Officers of all Ontario Business Corporations Act (OBCA) corporations have a duty to act honestly, in good faith and in the best interests of the corporation. DRB -MSC will be wholly owned by the Region of Durham and will be subject to established objectives aligned with the Region's interests. The following six (6) principles will govern the operations, services, and activities of DRB -MSC in that context: 3 rn s 1. Ubiquitous: Encouraging Internet Service Providers (ISPs) to be in rural areas and assessing opportunities to provide "last mile" connectivity where ISPs do not see opportunities. 2. Affordable and Inclusive: Broadband should be available at affordable rates, and the DRB -MSC should seek opportunities to influence and offer affordable services. 3. Open Access: The network should be open for all ISPs to deliver services, and foster competition with the private sector. 4. Fast and Reliable: Design a future -proof, scalable and resilient network to cater to future demand. 5. Improve Service Delivery: Leverage the network as a Regional Asset to enable more impactful services for residents. 6. Collaborative: Achieving the ambitious outcome requires private and public partnership(s) aligned to the vision of a Regional Broadband Network connecting our communities. The DRB -MSC will advocate other levels of government for funding. The Region will support the DRB -MSC in achieving its objectives and adhering to the guiding principles delineated above. It will: x Make available its existing fibre optic infrastructure assets, in part or in whole, (while maintaining control of those assets for which it has incurred debt), to the DRB -MSC to influence the development of a broadband network across the region. x Consider lowest lifecycle cost of capital in acquisition of assets. x Provide support to the DRB -MSC on a full cost -recovery basis. As a corporation established under the OBCA, the DRB -MSC will have a full business and financial plan, and experienced board of directors. The Region will provide funding during the setup and early subscription phase. 3 rn 4 5 Alternatives 5.1 Potential Models To accomplish the objectives set forth for Durham Region, several structures and governance models were explored, including Region -only, Region and public sector partnerships, and several options for public/private collaboration/partnerships. In general, the required level of governance varies with the complexity of services delivered, requiring some form of public/private partnership to successfully deliver internet broadband services to the retail market, as depicted below: Level of Governance Public/Private Partnership A000011 VI SC Region + Public Sector Region Only Not in The Dark Fibre Lit Services Public %?ViFi Internet Business Met;4,ork Active Network Service Provrder Level of Service Several governance models exist that would provide the Region with the ability to influence broadband rollout, including: x Region -only o The Region builds fibre infrastructure and operates the network for its own use, and leases some spare capacity to the wholesale service providers and Municipality, Universities, School boards, Health (MUSH) customers. o Budgets and business plans are set and approved by Council. o Assets are held by the Region. o The organization is accountable to the Region. o This structure does not permit private equity ownership and therefore largely prevents private co -investment. x Region -Public Sector Partnership (Not for Profit) o This option would most likely be structured as a not-for-profit corporation, jointly owned by the Region and other public sector entities such as lower -tier MUSH entities, and is focused on providing benefits to the MUSH sector only. o Assets are held by the not-for-profit corporation, but a third neutral party could be contracted to manage and maintain the network. o The organization is accountable to the multiple shareholders. o This structure does not allow for private equity ownership and therefore largely prevents private co -investment. x Municipal Services Corporation o The Region establishes a Municipal Services Corporation under OBCA to collaborate with private sector ISP(s) (through project agreements), to build and manage a network, focused on a variety of markets (MUSH, Commercial, Residential) throughout the region. o The Region maintains control of its assets and may license or transfer assets to the MSC to use them for various projects. o The ISP(s) maintain control of their assets related to the project but licence the project to use them. o Ability to partner with private sector in many grant funding programs. 3 [[E❑❑ s o The MSC provides some insulation for the Municipality with respect to project/ business risk, as well as on telecommunications regulatory compliance. x Public -Private Partnership rns COMFORT LETTER LENDING BANKS BANK FACILITIES SECURITY COMFORT LETTER V CONCESSIONS PERMITS PROJECT SPONSORS EQUITY SUBSCRIPTION SALES AGREEMENT '��p CUSTOMERS Source: Universita Bocconi — Financing and Investing in Infrastructure o A Public -Private Partnership (P3) is defined as a contractual partnership agreement that is formed between private and public partners. P3s are a structure commonly found in project finance deals, whereas the public sector partner, in this case the Region of Durham, as the host government and major project stakeholder, and would provide concessions, permissions to construct and potentially become a financial sponsor of the project (equity, debt, grants). The private sector partners include industry sponsors who would provide operational knowledge and expertise to design, build and operate the project assets, along with possibly contributing financial support to alleviate the public sector partner from bearing all of the financial risk of the project. 3 Tnn ' INFRASTRUCTURE MATERIALS NETWORK NETWORK OPERATOR CONSTRUCTOR Source: Universita Bocconi — Financing and Investing in Infrastructure o A Public -Private Partnership (P3) is defined as a contractual partnership agreement that is formed between private and public partners. P3s are a structure commonly found in project finance deals, whereas the public sector partner, in this case the Region of Durham, as the host government and major project stakeholder, and would provide concessions, permissions to construct and potentially become a financial sponsor of the project (equity, debt, grants). The private sector partners include industry sponsors who would provide operational knowledge and expertise to design, build and operate the project assets, along with possibly contributing financial support to alleviate the public sector partner from bearing all of the financial risk of the project. 3 Tnn ' o If we consider the diagram above, the project company or what is often referred to as a Special Purpose Vehicle (SPV), is a separate legal entity and commonly structured as a partnership. o This SPV would be formed to own the infrastructure, and have the benefit of non-recourse financing, as the credit risk (risk of default) is specific to the project and its assets, and is not secured to the assets on the balance sheet of the sponsor. Therefore, if the project fails, the sponsor's other assets are insulated. This does not apply if the sponsor provides guarantees, and if the value of the debt exceeds the value of the collateral assets. o As this applies to Durham Region, the Region would need to establish an MSC as a contracting vehicle to sponsor the Broadband Service Company as financial sponsor (debt, equity and grant), along with providing the necessary permits to build the infrastructure. The Region would establish contracts with industrial sponsors to provide the design, build and operate elements of the project. The Region can be a co -financial sponsor with an industrial sponsor (likely Telecom/ISP providers) and leverage external financing from other financial sponsors, such as Infrastructure Ontario, Canada Infrastructure Bank etc. as needed. o The creation of an MSC is an important prerequisite for the Region to participate in a future P3 project structure and carries benefits of some insulation for the Municipality with respect to project/ business risk, as well as on telecommunications regulatory compliance. 5.2 Best Practice Summary Several reference organizations have been observed, providing beneficial insight to current industry best practices. There are several key themes that can be taken from these and others within the industry. Below is a summary of these key themes, the associated best practice, and related references. 3 rn a Although it is understood that these entities are not identical to Durham, these themes and best practices provide a good sense on how the Region could foster the development of network connectivity and increase bandwidth to meet the needs of the region moving forward. • : • :4 IRS] Best Practice: Board approves strategy, evaluates, and mitigates risk, and approves annual business plan, operating budgets, and large opportunities not foreseen in the annual budget. Board appoints Officer(s) of the Corporation (President/CEO/Secretary/General Manager). Reference Entity: rhyz me SWIFT Reference Entity: Utilities Kingston Best Practice: Board is comprised of the Corporate Officer(s), representation from elected officials*, private sector industry members with industry expertise, and the MUSH sector. *Note: QNet and Kingston do not have elected officials on their respective Board of Directors. Reference Entity: rhyz me Ik SWI R utilities QNET Kingston 1r TERM OF BOARD OF - • - Best Practice: Corporate Officer(s) with role/position(s) appointed by For profit corporation under OBCA to provide for the Board. Staggered terms of no less than two (2) maximum flexibility in future mandate. Owned by the years for elected officials, members of the public and Region as a sole shareholder. MUSH sector.* rh Z me �rc1—ks *Note: QNet and Kingston do not have elected officials .• li•.i I; for col rnitles on their respective Board of Directors. Reference Entity: rhyz me Kingston ��- CUiln•[Lnly lug Cu::wriw•5 Utilities QNET Kingston �01ftftft�- LEGALSTRUCTURE Best Practice: For profit corporation under OBCA to provide for maximum flexibility in future mandate. Owned by the Region as a sole shareholder. Reference Entity: rh Z me �rc1—ks .• li•.i I; for col rnitles Utilities QNET Kingston ��- [H1❑❑ 10 ROLE OF •ACOUNCIL Best Practice: Informed of strategy, and business plan and operating Corporation holds the assets (fibre optic cable and budget, as recommended by the Board of Directors. duct). Receive regular updates from Corporate Officer(s) on r��zome SWIFT networks progress towards plan. Reference Entity: rh9zom . k' 'i Utillties QNET connwLvlty for Co jnitles Kingston _ r Utilities NET -)�- SWIFT Kingston _ r • Best Practice: Corporation holds the assets (fibre optic cable and duct). Reference Entity: r��zome SWIFT networks cowwvlty for Co nitles Utillties QNET Kingston _ r 6 Proposed Structure The four representative models were assessed to identify the level to which each model meets the stated objectives and aligns with the guiding principles, as exhibited below. Objective/Guiding Principal Region- RegionAMMMINunicipal Publi only Public Services Priva Sector Corporation nershii Partnership (MSC) (P3) (Not for Profit) Ubiquitous: Improve broadband coverage C to unserved/underserved areas Influence delivery of retail services but not necessarily be a retail service provider Leverage existing relationships with MUSH sector, establishing anchor clients to provide a stable revenue stream Collaborative: Leverage funds from higher C levels of government to improve broadband coverage to unserved/underserved areas Partner with experienced private sector parties to operate network C Joint applications with ISP(s) for senior government grants Affordable and Inclusive: Enable delivery of affordable C C services to all market segments Consider lowest cost of D capital in acquisition of assets 3 IT❑n 12 Objective/Guiding Principal Region- Region- Municipal Public Public CorporationSector Partnership (Not for Entity to have an C independent, transparent, and sustainable financial plan D Provide mechanism to influence private -sector investment Region to provide support on cost -recovery basis Maintain control of existing D D assets Im rove Service Delivery: Improve connectivity to municipally -owned assets to enable improved delivery of public services _ O en Access: Encourage ISP(s) to use the network where possible Fast and Reliable: Attract private sector C broadband management expertise Flexibility to react quickly to C market needs 0 3 a 40 Does Not Meet Partially Me 4Fully Meets From the analysis, the model most closely aligned with the stated objectives and guiding principles is one of an MSC. 3 FT1 13 6.1 Legal Entity The proposed structure would involve establishing the MSC under the OBCA, that would have access to Region -owned fibre assets and would be charged with influencing the rollout of broadband infrastructure across the region, especially to unserved and underserved rural areas. The resulting network could be operated under contract by a qualified network operator. The MSC would also be charged with collaborating with one or more ISP(s) to deliver retail services to public sector, residential and commercial customers. 6.2 Entity Ownership The Region of Durham would be the sole shareholder of the DRB -MSC. 7 Governance 7.1 Organizational Structure The proposed organizational structure of DRB -MSC should factor in the creation of a Board of Directors, Officer and management of the DRB -MSC The following exhibit provides a high-level functional organizational structure for the DRB -MSC. Board of Directors Officer Chief Financial Officerj � Marketing & Business Networks Corporate Support Development 7.2 Board of Directors For purposes of establishing the DRB -MSC, it is recommended to appoint an inaugural board to establish the DRB -MSC and utilize the board nomination committee to attract and nominate the remaining board positions. 3 rn 14 7.3 Strategic Governance Considerations To conclude the governance discussion, the Region is focused on the following key strategic considerations when ultimately deciding to proceed with the DRB - MSC for broadband infrastructure and services. 1. Create the ability to attract private sector industry specific management, and governance expertise to an independent and skills -based board of directors and management team. 2. Enable agility to make decisions quickly to grow the business within the defined strategy and to -be -defined budgets. 3. Keep council and public informed, providing public transparency without allowing special interests to derail the corporation's mandate/ strategy. 4. Allow for future joint ventures, strategic partnerships and pilot projects. 5. Create future exit strategy for Council (leave options open to sell/ divest). 8 Conclusions Risks associated with the approach to establish a DRB -MSC are low. In fact, most other regions across the province have proceeded in the same manner to address broadband demand and improve management of Regional assets. Approval to proceed does not imply that the Region is going to spend Regional funds on broadband. It does not imply that the Region will partner with any specific service provider(s), nor market services to specific market sectors. It simply acknowledges that an MSC is the preferred vehicle through which to execute the Region's plan for the deployment of broadband infrastructure and services, and authorizes staff to take the necessary preliminary steps to set up that vehicle. 3 Fn 15 It is therefore recommended that the Region: x Secure approval for staff to establish a DRB -MSC, with the Region as the sole shareholder. x Appoint the inaugural board of the corporation; and x Provide direction to staff to complete due diligence and return to Council with a detailed recommendation report. 3 rn 16 Attachment 2 By-law Number **-2021 of The Regional Municipality of Durham Being a by-law to establish a Municipal Services Corporation for the purposes of establishing, creating, and operating a Regional Telecommunications and Broadband Network in the Regional Municipality of Durham. Whereas under subsection 203 of the Municipal Act, 2001, S.O. 2001, c.25 a municipality may establish a municipal services corporation for the purpose of providing a municipal service and may nominate and authorize a person to act as an incorporator, director, officer or member of a municipal services corporation and may acquire securities in such municipal service corporation and exercise powers as the holder of such securities. And Whereas under Regulation 599/06, a municipality may establish and create a municipal service corporation by following the requirements under Regulation 599/06 including the requirement to pass an enabling by-law for the municipal service corporation. Now therefore, the Council of The Regional Municipality of Durham hereby enacts as follows: Municipal Services Corporation That Regional Municipality of Durham be authorized to establish, incorporate and create a municipal services corporation for the purpose of providing a telecommunications and broadband service and network, including the service of installing, maintaining and operating all required infrastructure to operate a telecommunications and broadband network in the Regional Municipality of Durham, and to acquire and hold shares in the capital of the municipal services corporation as the sole shareholder thereof. 2. That Regional Municipality of Durham staff be authorized to prepare all materials and corporate documents and minutes and take all steps necessary to establish a municipal services corporation for the purpose of providing a telecommunications and broadband service and network in the Regional Municipality of Durham, including, without limitation, the completion and filing of Articles of Incorporation for the municipal services corporation, the corporate by laws of the municipal services corporation and the documents necessary or desirable to organize the municipal services corporation to give effect to paragraph 1 above. 3 TFIF] Attachment 2 3. The Regional Chair is nominated and authorized to act as the incorporator and initial director of the municipal services corporation and to sign (both in the Regional Chair's capacity as the incorporator and initial director of the municipal services corporation and on behalf of Regional Municipality of Durham as shareholder, as required) the Articles of Incorporation of the municipal services corporation, the corporate by laws of the municipal services corporation and initial organizational minutes and proceedings required or desirable to give effect to paragraph 1 above (including those set out in paragraph 2 above) and to elect Elaine Baxter-Trahair, Chief Administrative Officer, as a second director to serve with the Regional Chair on the board of directors of the MSC pending the further constitution of the Board. 4. The Regional Municipality of Durham is authorized to execute and deliver a Shareholder's Direction to the MSC which is to take effect in accordance with and subject to the terms and conditions of the Shareholder's Direction. This By-law Read and Passed on the ---t" day of -----------, 2021. J. Henry, Regional Chair and CEO R. Walton, Regional Clerk 3 T❑❑ Attachment 3 CONSENT TO: MINISTRY OF GOVERNMENT & CONSUMER SERVICES Re: Articles of Incorporation under the Business Corporations Act (Ontario) for DURHAM ONENET INC. The undersigned hereby consents to the following name for use by a corporation, pursuant to the Business Corporations Act (Ontario): DURHAM ONENET INC. DATED the day of , 2021. THE REGIONAL MUNICIPALITY OF DURHAM Per: Name: Title: I have authority to bind the Municipality Attachment 4 BY-LAW NO. 1 A by-law relating generally to the transaction of the business and affairs of DURHAM ONENET INC. (herein called the "Corporation") CONTENTS One Interpretation Two Directors Three Committees Four Officers Five Protection of Directors, Officers and Others Six Meetings of Shareholders Seven Securities Eight Dividends and Rights Nine Notices Ten Borrowing Powers of the Directors Eleven Business of the Corporation BE IT ENACTED as a by-law of the Corporation as follows: ARTICLE 1 INTERPRETATION 1.1 Definitions. In this by-law, unless the context otherwise requires: (a) "Act" means the Business Corporations Act (Ontario), and includes the regulations made pursuant thereto, and every other act or statute incorporated therewith or amending the same, or any act or statute substituted therefor, and in the case of such substitution the reference in the by-laws of the Corporation to non -existing acts or statutes shall be read as referring to the substituted provisions in the new act or statute; (b) "board" means the board of directors of the Corporation; (c) words and expressions defined in the Act shall have the applicable definitions when used herein; and (d) in all by-laws of the Corporation where the context so requires or permits, the singular shall include the plural and the plural shall include the singular. The word "person" shall include firms and corporations, and the masculine gender shall include the feminine and neuter genders. 16198773.1 -2 - ARTICLE 2 DIRECTORS 2.1 Powers. Subject to any unanimous shareholder agreement, the board shall manage or supervise the management of the affairs and business of the Corporation. So long as a quorum of directors remains in office no vacancy or vacancies in the board shall affect the power of the continuing directors to act. 2.2 Number and Quorum. The board of directors shall consist of such number of persons as are from time to time determined by special resolution or, if the special resolution empowers the board to determine the number, by resolution of the board The board of directors shall determine the quorum, provided in no event shall a quorum be less than 2/5 of the number of directors or minimum number of directors, as the case may be, subject to the limitations contained in the Act including the limitation that, if the Corporation has fewer than three (3) directors, the quorum shall consist of all directors. 2.3 Qualification. No person shall be qualified for election as a director if he: (i) is less than eighteen years of age; (ii) is of unsound mind and has been so found by a court in Canada or elsewhere; (iii) is not an individual; or (iv) has the status of a bankrupt. A director need not be a shareholder. At least 25 per cent of the directors of the Corporation shall be resident Canadians provided that if the number of directors is less than four at least one director shall be a resident Canadian. 2.4 Election and Term of Office. Unless the Articles otherwise provide, the directors shall be elected yearly at the annual meeting of the shareholders and shall hold office until the annual meeting next following. The whole board shall be elected at each annual meeting and all the directors then in office shall retire, but, if qualified, shall be eligible for re-election. The election may be by a show of hands or by resolution of the shareholders unless a ballot be demanded by any shareholder. If after nomination there is no contest for election, the persons nominated may be elected by declaration of the chairman to that effect. If an election of directors is not held at the proper time, the directors then in office shall continue in office until their successors are elected or appointed. 2.5 Vacancies. Subject to the Act, a quorum of the board may fill a vacancy in the board, except a vacancy resulting from an increase in the number of directors or in the maximum number of directors or from a failure of the shareholders to elect the number of directors required to be elected at any meeting of shareholders. In the absence of a quorum of the board, or if the vacancy has arisen from the failure of the shareholders to elect the number of directors required by the Articles, or if the vacancy has resulted from an increase in the number of directors or in the maximum number of directors, the board shall forthwith call a special meeting of shareholders to fill the vacancy. If the board fails to call such a meeting or if there are no such directors, then in office, any shareholder may call such meeting. A director appointed or elected to fill a vacancy holds office for the unexpired term of his predecessor. 2.6 Vacation of Office. A director ceases to hold office when: (i) he dies; (ii) he is removed from office by the shareholders; (iii) he ceases to be qualified for election as a director; or (iv) his written resignation is received by the Corporation provided if a time subsequent to its date of receipt by the Corporation is specified in such written resignation the resignation shall become effective at the time so specified. Until the first meeting of shareholders, no director named in the Articles shall be permitted to resign his office unless at the time the resignation is to become effective a successor is elected or appointed. 2.7 Removal of Directors. Subject to the provisions of the Act, the shareholders may by resolution passed at an annual or special meeting remove any director before the expiration of his term of office and the vacancy created by such removal may be filled at the same meeting failing which it may be filled by the directors pursuant to Section 2.5 of this By-law. 2.8 Place of Meetings. Meetings of the board may be held at any place within or outside Ontario. The board need not hold any meetings within Canada. 2.9 Calling of Meetings. Meetings of the board may be held at any time without formal notice being given if all the directors are present, or if a quorum is present and those directors who are absent signify their consent to the holding of the meeting in their absence. Any resolution passed, or proceeding had, or action taken at such meeting shall be as valid and effectual as if it had been passed at or had been taken at a meeting duly called and constituted. Subject to the Act, no notice of a meeting of the board shall be necessary if the meeting is the first meeting of the board held immediately following a meeting of shareholders at which such board was elected or if the meeting of the board is a meeting which follows immediately upon a meeting of shareholders at which a director was appointed to fill a vacancy on the board, provided at any such meeting of the board a quorum of directors is present. 2.10 Notice of Meeting. The Chairman, the President or a Vice -President who is a director or any two directors may at any time by notice call a meeting of the board. Such notice shall be given in the manner provided in Section 9.1 to each director not less than forty-eight (48) hours before the time when the meeting is to be held. A notice of a meeting of directors need not specify the purpose of or the business to be transacted at the meeting except where the Act requires such purpose or business to be specified. A director may in any manner and at any time waive notice of or otherwise consent to a meeting of the board. Attendance of a director at such a meeting is a waiver of notice of meeting except where the attendance is for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called. 2.11 Adjourned Meeting. Notice of an adjourned meeting of the board is not required if the time and place of the adjourned meeting is announced at the original meeting or the adjourned meeting preceding the applicable adjourned meeting, if the original meeting is adjourned on more than one occasion. 2.12 Regular Meetings. The board may appoint a day or days in any month or months for regular meetings of the board at a place and hour to be named. A copy of any resolution of the board fixing the place and time of such regular meetings shall be sent to each director forthwith after being passed, but no other notice shall be required for any such regular meeting except where the Act requires the purpose thereof or the business to be transacted thereat to be specified. 2.13 Absent Directors. Any director of the Corporation may file with the Secretary of the Corporation a written waiver of notice of any meetings of the directors and may at any time withdraw such waiver, and until such waiver is withdrawn, no notice of meetings of directors need be sent to such director, and any and all meetings of the directors of the Corporation shall (provided a quorum is present) be validly constituted notwithstanding that notice shall not have been given to such director. 2.14 Chairman. Subject to Section 4.7 hereof, the chairman of any meeting of the board shall be the President and, in his absence, a director who is a Vice -President present at the meeting. If no such officer is present, the directors present shall choose one of their number to be chairman. 2.15 Voting at Meetings. Questions arising at any meeting of directors shall be decided by a majority of votes. In the case of an equality of votes, the chairman of the meeting, in addition to his original vote, shall not have a second or casting vote. 2.16 Resolution in Writing. A resolution in writing, signed by all the directors entitled to vote on that resolution at a meeting of directors or a committee of directors, is as valid as if it had been passed at a meeting of directors or a committee of directors. 2.17 Meetings by Telephone. If all the directors present at or participating in a meeting consent, a meeting of the board or of a committee of the board may be held by means of such telephone, electronic or other communication facilities as permit all persons participating in the meeting to communicate with each other simultaneously and instantaneously, and a director participating in such a meeting by such means is deemed to be present at the meeting. Any such consent shall be effective whether given before or after the meeting to which it relates and may be given with respect to all meetings of the board and of committees of the board held while a director holds office. 2.18 Interest of Directors and Officers in Contracts. Provided the applicable director or officer shall have complied with the applicable requirements of the Act in respect of disclosure of interest and otherwise, no director or officer shall be disqualified by his office from contracting with the Corporation nor shall any contract or arrangement entered into by or on behalf of the Corporation with any director or officer or in which any director or officer is in any way interested be liable to be voided nor shall any director or officer so contracting or being so interested be liable to account to the Corporation for any profit realized by any such contract or arrangement by reason of such director's or officer's holding that office or of the fiduciary relationship thereby established. ARTICLE 3 COMMITTEES 3.1 Managing Director and Committee of Directors. The board may in its discretion appoint a managing director and such committees of the board as it deems appropriate, and delegate to such managing director and committees any of the powers of the board except those which the board is prohibited by the Act from delegating. 3.2 "Transaction of Business. The powers of a committee of directors may be exercised by a meeting at which a quorum is present or by resolution in writing signed by all the members of such committee who would have been entitled to vote on that resolution at a meeting of the committee. Meetings of such committee may be held at any place within or outside Ontario. 3.3 Procedure. Unless otherwise determined by the board, each committee shall have the power to fix its quorum at not less than a majority of its members, to elect its chairman and to regulate its procedure. -5 - ARTICLE 4 OFFICERS 4.1 Appointment. Subject to the Act, this by-law and any other applicable by-laws of the Corporation and any unanimous shareholder agreement: (a) the directors may designate the offices of the Corporation, appoint officers, specify their duties and delegate to them powers to manage the business and affairs of the Corporation; (b) a director may be appointed to any office of the Corporation; and (c) two or more offices of the Corporation may be held by the same person. 4.2 The President, The President shall be the chief executive officer of the Corporation and, subject to the authority of the board, shall be charged with the general supervision of the business and affairs of the Corporation. He shall be ex officio a member of all standing committees and, if no chairman of the board has been appointed, or if appointed is not present, chairman of all meetings of shareholders and of all meetings of directors of the Corporation, if a director. The President shall perform all duties incident to his office and shall have such other powers and duties as may from time to time be assigned to him by the board of directors. 4.3 Vice -President. During the absence or disability of the President his duties may be performed and his powers may be exercised by the Vice -President, or if there are more than one, by the Vice -Presidents in order of seniority (as determined by the board), save that no Vice - President shall preside at a meeting of the board or at a meeting of shareholders who is not qualified to attend the meeting as a director or shareholder, as the case may be. If a Vice -President exercises any such duty or power, the absence or disability of the President shall be presumed with reference thereto. A Vice -President shall also perform such duties and exercise such powers as the President may from time to time delegate to him or the board may prescribe. 4.4 Secretary. The Secretary shall give, or cause to be given, all notices required to be given to shareholders, directors, auditors and members of committees provided that the validity of any notice shall not be affected by reason only of the fact that it is sent by some person other than the Secretary. He shall attend all meetings of the directors and of the shareholders and shall enter or cause to be entered in books kept for that purpose minutes of all proceedings at such meetings. I -Ie shall, subject to any specific appointment to the contrary, be the custodian of the stamp or mechanical device generally used for affixing the corporate seal of the Corporation, if any, and of all books, papers, records, documents and other instruments belonging to the Corporation, and he shall perform such other duties as may from time to time be prescribed by the board. 4.5 Treasurer, The Treasurer shall keep or cause to be kept proper books of account and accounting records with respect to all financial and other transactions of the Corporation and, under the direction of the board, shall control the deposit of money, the safekeeping of securities and the disbursement of the funds of the Corporation. He shall render to the board at the meetings thereof, or whenever required of him, an account of all his transactions as Treasurer and of the financial position of the Corporation and he shall perform such other duties as may from time to time be prescribed by the board. I MO 4.6 Assistant -Secretary and Assistant -Treasurer. The Assistant -Secretary and the Assistant -Treasurer or, if more than one, the Assistant -Secretaries and the Assistant -Treasurers, shall respectively perform all the duties of the Secretary and Treasurer in the absence or disability of the Secretary or Treasurer, as the case may be. The Assistant -Secretary and the Assistant - Treasurer shall also have such powers and duties as may from time to time be assigned to them by the board. 4.7 Chairman of the Board. The directors may from time to time appoint a Chairman of the Board who shall be a director. If appointed, the board may assign to him any of the powers and duties that are by any provisions of this by-law assigned to the President, and he shall, subject to the provisions of the Act, have such other powers and duties as the board may specify. The Chairman of the Board shall act as chairman of all directors and shareholders meetings at which he is present. During the absence or disability of the Chairman of the Board, his duties shall be performed and his powers exercised by the managing director, if any, or by the President. 4.8 Power and Duties of Other Officers. The powers and duties of all other officers shall be such as the terms of their engagement call for or as the board may specify. Any of the powers and duties of an officer to whom an assistant has been appointed may be exercised and performed by such assistant, unless the board otherwise directs. 4.9 Duties may be Delegated. In case of the absence or inability to act of the President, a Vice -President or any other officer of the Corporation or for any other reason that the board may deem sufficient, the board may delegate all or any of the powers of such officer to any other- officer or to any director for the time being. 4.10 Remuneration and Removal. The board may determine the remuneration to be paid to the directors, officers, agents and employees of the Corporation. Any officer, agent or employee of the Corporation may receive such remuneration as may be determined notwithstanding the fact that he is a director or shareholder of the Corporation. The board may by resolution award special remuneration to any officer of the Corporation undertaking any special work or service for, or undertaking any special mission on behalf of the Corporation other than routine work ordinarily required of such office. If any director or officer of the Corporation shall be employed by or shall perform services for the Corporation otherwise than as a director or officer or shall be a member of a firm or a shareholder, director or officer of a corporation which is employed by or performs services for the Corporation, the fact of his being a director or officer of the Corporation shall not disentitle such director or officer or such firm or corporation, as the case may be, from receiving proper remuneration for such services. All officers, in the absence of written agreement to the contrary, shall be subject to removal by resolution of the board at any time with or without cause. Until such removal each officer shall hold office until his successor is elected or appointed or until his earlier resignation. 4.11 Agents and Attorneys. The board shall have power to appoint, from time to time, agents or attorneys for the Corporation in or out of Canada with such powers of management or otherwise (including the power to sub -delegate) as may be thought fit. 4.12 Fidelity Bonds. The board may require such officers, employees and agents of the Corporation as the board deems advisable to furnish bonds for the faithful discharge of their duties, in such form and with such surety as the board may from time to time prescribe, but no director -7 - shall be liable for failure to require any bond or for the insufficiency of any bond or for any loss by reason of the failure of the Corporation to receive any indemnity thereby provided. ARTICLE 5 PROTECTION OF DIRECTORS, OFFICERS AND OTHERS 5.1 Protection of Directors and Officers. Except as otherwise specifically provided in the Act, no director or officer of the Corporation shall be liable for the acts, receipts, neglects or defaults of any other director or officer or employee, or for joining in any receipt or other act for conformity, or for any loss, damage or expense happening to the Corporation through the insufficiency or deficiency of title to any property acquired by order of the board of directors for or on behalf of the Corporation or for the insufficiency or deficiency of any security in or upon which any of the monies of the Corporation shall be invested or for any loss or damage arising from the bankruptcy, insolvency or tortious act of any person, firm or corporation with whom any monies, securities or effects of the Corporation shall be deposited, or for any loss, conversion, misapplication or misappropriation of or damage resulting from any dealings with any monies, securities or other assets belonging to the Corporation or for any loss occasioned by any error of judgment or oversight on his part or for any other loss, damage or misfortune whatever which may happen in the execution of the duties of his office or in relation thereto unless the same shall happen by failure to exercise the powers and to discharge the duties of his office honestly and in good faith with a view to the best interests of the Corporation and in connection therewith to exercise that degree of care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Subject to the foregoing, the directors may rely upon the accuracy of any statement or report prepared by the Corporation's auditors or accountants and shall not be responsible or held liable for any loss or damage resulting from the payment of any dividends or otherwise acting upon such statement or report. The directors of the Corporation are hereby authorized from time to time to cause the Corporation to give indemnities to any director or other person who has undertaken or is about to undertake any liability on behalf of the Corporation and to secure such director or other person against loss by mortgage and charge upon the whole or any part of the real and personal property of the Corporation by way of security. Any action from time to time taken by the directors under this paragraph shall not require approval or confirmation by the shareholders. 5.2 Indemnity. Subject to the limitations contained in the Act, the Corporation hereby indemnifies each past, present and future director and officer of the Corporation, and each individual who is now or may hereafter be, acting or have heretofore acted, at the Corporation's request, as a director or officer or in a similar capacity of another entity and his heirs and legal representatives (each an "Indemnified Person"), against all costs, charges and expenses, including any amount paid to settle an action or satisfy a judgment, reasonably incurred by him in respect of any civil, criminal, administrative, investigative or other proceeding in which he is involved because of that association with the Corporation or entity, if; (a) he acted honestly and in good faith with a view to the best interests of the Corporation or, as the case may be, to the best interests of the other entity for which he acted as a director or officer or in a similar capacity at the Corporation's request; and (b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, he had reasonable grounds for believing that his conduct was lawful. Subject to the limitations contained in the Act, if any, the Corporation may advance money to each Indemnified Person for the reasonable costs, charges and expenses of any civil, criminal, administrative, investigative or other proceeding in which he is involved because of his association with the Corporation or other entity, provided that such director, officer or other individual shall repay the money if he did not act honestly and in good faith with a view to the best interests of the Corporation or, as the case may be, to the best interests of the other entity for which he acted as a director or officer or in a similar capacity at the Corporation's request. 5.3 Insurance. Subject to the limitations contained in the Act, the Corporation may purchase and maintain such insurance for the benefit of each Indemnified Person against any liability incurred by him in his capacity as a director or officer of the Corporation, or in his capacity as a director or officer, or a similar capacity, of any other entity, if he acts or acted in that capacity at the Corporation's request, as the board may from time to time determine. ARTICLE 6 MEETINGS OF SHAREHOLDERS 6.1 Annual Meeting. Subject to the Articles and any unanimous shareholder agreement, the annual meeting of the shareholders shall be held at any place within or outside Ontario on such day and at such time as the board, may from time to time determine, for the purpose of hearing and receiving the reports and statements required by the Act to be read to and laid before shareholders at an annual meeting, electing directors, appointing the auditor and fixing or authorizing the board to fix the auditor's remuneration, and for the transaction of such other business as may properly be brought before the meeting. 6.2 Special Meetings. Subject to the Articles and any unanimous shareholder agreement, the board shall have the power at any time to call a special meeting of shareholders to be held at such time on such day and at any place within or outside Ontario as may be determined by the board. The phrase "special meeting of the shareholders" wherever it occurs in this by-law shall include a meeting of any class or classes of shareholders, and the phrase "meeting of shareholders" wherever it occurs in this by-law shall mean and include an annual meeting of shareholders and a special meeting of shareholders. 6.3 Notice of Meetings. Notice of the time and place of each meeting of shareholders shall be given in the manner provided in Section 9. 1, and (a) if the Corporation is at the time of such notice offering any of its securities to the public, not less than twenty-one (2 1) days, and (b) if the Corporation is at the time of such notice not offering any of its securities to the public, not less than ten (10) days, and in any event, not more than fifty (50) days before the date on which the meeting is to be held, to the auditor of the Corporation, to the directors of the Corporation and to each shareholder of record at the close of business on the day on which the notice is given who is entered on the securities register of the Corporation as the holder of one or more shares carrying the right to vote at the meeting. Notice of a meeting of shareholders called for any purpose other than consideration of the financial statements and auditor's report, election of directors and reappointment of the incumbent auditor shall state the nature of such business in sufficient detail to permit the shareholder to form a reasoned judgment thereon and shall state the text of any special resolution to be submitted to the meeting. 6.4 List of Shareholders Entitled to Notice. For every meeting of shareholders, the Corporation shall prepare a list of shareholders entitled to receive notice of the meeting, arranged in alphabetical order and showing the number of shares held by each shareholder. If a record date for the meeting is fixed pursuant to Section 6.5, the shareholders listed shall be those registered at the close of business on a day not later than ten (10) days after such record date. If no record date is fixed, the shareholders listed shall be those registered at the close of business on the day immediately preceding the day on which notice of the meeting is given, or where no such notice is given, the day on which the meeting is held. The list shall be available for examination by any shareholder during usual business hours at the registered office of the Corporation or at the place where the securities register is kept and at the place where the meeting is held. 6.5 Record Date for Notice. The board may fix in advance a record date, preceding the date of any meeting of shareholders by not more than fifty (50) days and not less than twenty-one (2 1 ) days, for the determination of the shareholders entitled to notice of the meeting, provided that notice of any such record date is given not less than seven (7) days before such record date, by newspaper advertisement in the manner provided in the Act. If no record date is so fixed, the record date for the determination of the shareholders entitled to notice of the meeting shall be the close of business on the day immediately preceding the day on which the notice is given. 6.6 Waiving Notice. A shareholder and any other person entitled to attend a meeting of shareholders may in any manner and at any time waive notice of a meeting of shareholders, and attendance of any such person at a meeting of shareholders is a waiver of notice of the meeting, except where such person attends a meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. 6.7 Persons Entitled to be Present. The only persons entitled to be present at a meeting of the shareholders shall be those entitled to vote thereat, the directors and auditors of the Corporation and others who, although not entitled to, vote, are entitled or required under any provision of the Act or the Articles or by-laws to be present at the meeting. Any other person may be admitted only on the invitation of the chairman of the meeting or with the consent of the meeting, 6.8 Quorum. Two persons entitled to vote at a meeting of shareholders present in person constitute a quorum. 6.9 Right to Vote. Subject to the Act, the articles and Section 6.5 hereof, each person registered as a shareholder of the Corporation at the date of any meeting of shareholders shall be entitled to one vote for each share held. 6.10 Representatives. An executor, administrator, committee of a mentally incompetent person, guardian or trustee and where a body corporate is such executor, administrator, committee, guardian or trustee, any person duly appointed by proxy for such body corporate, upon filing with -10 - the secretary of the meeting sufficient proof of his appointment, shall represent the shares of the testator, intestate, mentally incompetent person, ward or cestui que trust in his or its stead at all meetings of the shareholders of the Corporation and may vote accordingly as a shareholder in the same manner and to the same extent as the shareholder of record. If there be more than one executor, administrator, committee, guardian or trustee, the provisions of clause 6.12 shall apply. 6.11 Proxies. Every shareholder, including a shareholder that is a body corporate, entitled to vote at a meeting of shareholders may by means of a proxy appoint a person, who need not be a shareholder, as his nominee to attend and act at the meeting in the manner, to the extent and with the power conferred by the proxy. Subject to the Act, a proxy shall be executed by the shareholder or his attorney authorized in writing or, if the shareholder is a body corporate, under its corporate seal, if any, or by an officer or attorney thereof duly authorized. A proxy may be in any form which may be prescribed from time to time by the board of directors or which the chairman of the meeting may accept as sufficient, provided that such form complies with the provisions of the Act. Proxies shall be deposited with the secretary of the meeting before any vote is cast under the authority thereof or at such earlier time and in such manner as the board may prescribe in accordance with the provisions of the Act. A proxy in the form of a facsimile transmission may also be so deposited. 6.12 Joint Shareholders. Where two or more persons hold the same share or shares jointly, any one of such persons present at a meeting of shareholders has the right in the absence of the other or others to vote in respect of such share or shares, but, if more than one of such persons are present or represented by proxy and vote, they shall vote together as one on the share or shares jointly held by them. 6.13 Scrutineer. At each meeting of shareholders one or more scrutineers may be appointed by a resolution of the meeting or by the chairman with the consent of the meeting to serve at the meeting. Such scrutineers need not be shareholders of the Corporation. 6.14 Votes to Govern. Unless otherwise required by the provisions of the Act, the Articles or by-laws of the Corporation, at all meetings of shareholders every question shall be decided by the majority of the votes duly cast on the question. 6.15 Show of Hands. At all meetings of shareholders every question shall be decided by a show of hands unless a poll thereon is required by the chairman or be demanded by a shareholder present in person or represented by proxy and entitled to vote or unless a poll is required under the provisions of the Act. Upon a show of hands every shareholder present in person or represented by proxy and entitled to vote shall have one vote. After a show of hands has been taken upon any question the chairman may require or any shareholder present in person or represented by proxy and entitled to vote may demand a poll thereon. Whenever a vote by show of hands has been taken upon a question, unless a poll thereon is demanded, a declaration by the chairman of the meeting that the vote upon the question has been carried or carried by a particular majority or not carried and an entry to that effect in the minutes of the proceedings at the meeting shall be prima facie evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against any resolution or other proceedings in respect of the said question, and the result of the vote so taken shall be the decision of the Corporation in annual or general meeting, as the case may be, upon the question. A demand for a poll may be withdrawn at any time prior to the taking of the poll. 6.16 Polls. If a poll is required by the chairman of the meeting or under the provisions of the Act or is demanded by any shareholder present in person or represented by proxy and entitled to vote and the demand be not withdrawn, a poll upon the question shall be taken in such manner as the chairman of the meeting directs. Upon a poll each shareholder who is present in person or represented by proxy shall, unless the Articles otherwise provide, be entitled to one vote for each share in respect of which he is entitled to vote at the meeting and the result of the poll shall be the decision of the Corporation in annual or general meeting, as the case may be, upon the question. 6.17 Casting Vote. In case of an equality of votes at any meeting of shareholders either upon a show of hands or upon a poll the chairman of the meeting shall not be entitled to a second or casting vote. 6.18 Chairman. Subject to Section 4.7 hereof, the President or, in his absence, a Vice - President who is a director shall preside as Chairman at a meeting of shareholders. If there is no President or such a Vice -President, or if at a meeting, none of them is present within fifteen minutes after the time appointed for holding of the meeting, the shareholders present shall choose a person from their number to be the Chairman. 6.19 Adjournment of Meetings. The Chairman of any meeting of shareholders may, with the consent of the meeting and subject to such conditions as the meeting may decide, adjourn the same from time to time and from place to place, and no notice of such adjournment need be given to the shareholders except as required by the Act. Any business may be brought before or dealt with at an adjourned meeting which might have been brought before or dealt with at the original meeting in accordance with the notice calling such original meeting. 6.20 Resolution in Writing. A resolution in writing signed by all of the shareholders entitled to vote on that resolution at a meeting of shareholders is as valid as if it had been passed at a meeting of the shareholders unless a written statement with respect to the subject matter of the resolution is submitted by a director or the auditors in accordance with the Act. 6,21 Only One Shareholder. Where the Corporation has only one shareholder or only one holder of any class or series of shares, the shareholder present in person or by proxy constitutes a meeting. 6.22 Procedure. At all meetings of shareholders questions of procedure shall be settled by reference to such publication relating to the conduct of company meetings as shall be acceptable to the chairman of the meeting. ARTICLE 7 SECURITIES 7.1 Registers. The Corporation shall keep or cause to be kept such registers of security holders and of transfers as required by the Act. -12- 7.2 Allotment. Subject to the provisions, if any, of the Articles, the board may from time to time allot or grant options to purchase the whole or any part of the authorized and unissued shares in the capital of the Corporation to such person or persons or class of persons as the board determines by resolution provided that no share shall be issued until it is fully paid as prescribed by the Act. 7.3 Commissions. The board may from time to time authorize the Corporation to pay a reasonable commission to any person in consideration of his purchasing or agreeing to purchase shares of the Corporation, whether from the corporation or from any other person, or procuring or agreeing to procure purchasers for any such shares. 7.4 Share Certificates. Every holder of one or more shares of the Corporation shall be entitled, at his option, to a share certificate, or to a non -transferable written acknowledgement of his right to obtain a share certificate, stating the number and class or series of shares held by him as shown on the securities register. Share certificates and acknowledgements of a shareholder's right to a share certificate, respectively, shall be in such form as the board shall from time to time approve. Any share certificate shall be signed in accordance with Section 11.4 hereof, provided that, unless the board otherwise determines, certificates representing shares in respect of which a transfer agent or registrar has been appointed shall not be valid unless countersigned by or on behalf of such transfer agent or registrar. A share certificate shall be signed manually by at least one director or officer of the Corporation or by or on behalf of the transfer agent or registrar if there is one. Any additional signatures required may be printed or otherwise mechanically reproduced. A share certificate executed as aforesaid shall be valid notwithstanding that one of the directors or officers whose facsimile signature appears thereon no longer holds office at the date of issue of the certificate. 7.5 Replacement of Security Certificates. The board or any person designated by the board shall direct the issue of a new security certificate in lieu of and upon cancellation of a security certificate that has been mutilated or in substitution for a security certificate claimed to have been lost, apparently destroyed or wrongfully taken on payment of such fee and on such terms as to indemnity, reimbursement of expenses and evidence of loss and of title as the board may from time to time prescribe, whether generally or in any particular case. 7.6 Transfer Agent and Registrar. The directors may from time to time by resolution appoint or remove a transfer agent and a registrar (who may, but need not be the same individual or body corporate) and one or more branch transfer agents and registrars (who may, but need not be the same individual or body corporate) for the securities of the Corporation and may provide for the transfer of securities in one or more places and may provide that securities will be interchangeably transferable or otherwise. 7.7 Transfer of Securities. Securities in the capital of the Corporation shall be transferable only on the register of transfers or on one of the branch registers of transfers (if any) kept by or for the Corporation in respect thereof by the registered holder of such securities in person or by attorney duly authorized in writing upon surrender for cancellation of the certificate representing such securities properly endorsed or accompanied, by a properly executed transfer, subject to the provisions of the Act and subject to the restrictions on transfer (if any) set forth in the Articles. -13- 7.8 Corporation's Lien on Shares. The Corporation shall have a first and paramount lien upon all the shares registered in the names of each shareholder whether solely or jointly with others for his debts, liabilities and engagements solely or jointly with any other person, to or with the Corporation, whether the periods for payment, fulfillment or discharge thereof have actually arrived or not. Any such lien shall extend to all dividends from time to time declared in respect of such shares. Unless otherwise agreed the registration of a transfer of shares shall operate as a waiver of the Corporation's lien, if any, on such shares. However, the Corporation shall not be entitled to enforce such lien against a transferee of the share who has no actual knowledge of it, unless such lien is noted conspicuously on such share certificate. For the purpose of enforcing such lien, the board may sell the shares subject thereto in such manner as it thinks fit; but no sale shall be made until notice in writing of the intention to sell has been served on such shareholder, his executors or administrators, and default has been made by him or them, in payment, fulfillment or discharge of such debts, liabilities or engagements for ten days after the date of mailing of such notice. The net proceeds of any such sale shall be applied in or towards satisfaction of the debts, liabilities or engagements, and the residue, if any, paid to such shareholder, his executors or administrators or assigns. Upon any such sale in purported exercise of the powers hereinbefore given, the directors may cause the purchaser's name to be entered in the register in respect of the shares sold and the purchaser shall not be bound to see to the regularity of the proceedings or to the application of the purchase money, and after his name has been entered in the register in respect of such shares, the validity of the sale shall not be impeached by any person and the remedy of any person aggrieved by the sale shall be in damages only and against the Corporation exclusively. 7.9 Refusal to Register Transfer. Except in the case of shares listed on a stock exchange recognized by the Ontario Securities Commission, the board may refuse to permit the registration of a transfer of shares in the capital of the Corporation against which the Corporation has a lien until all of the debt represented by that lien has been paid to the Corporation. 7.10 Joint Shareholders, If two or more persons are registered as joint holders of any share, any one of such persons may give effectual receipts for the certificate issued in respect thereof', and for any dividend, bonus, return of capital or other money payable or warrant issuable in respect of such share, but all the joint holders of a share shall be severally as well as jointly liable for the payment of all demands payable in respect thereof. ARTICLE 8 DIVIDENDS AND RIGHTS 8.1 Dividends. Subject to the provisions of the Act, the board may from time to time declare dividends payable to the shareholders according to their respective rights and interests in the Corporation. Dividends may be paid in money or property or by issuing fully paid shares of the Corporation. 8.2 Dividend Cheques. A dividend payable in cash shall be paid by cheque drawn on the Corporation's bankers or one of them to the order of each registered holder of shares of the class or series in respect of which it has been declared and mailed by prepaid ordinary mail to such 3 Ell[][] -14 - registered holder at his last recorded address, unless such holder otherwise directs. In the case of joint holders the cheque shall, unless such joint holders otherwise direct, be made payable to the order of all of such joint holders and mailed to them at their recorded address and if more than one address appears on the books of the Corporation in respect of such joint holding the cheque shall be mailed to such of those addresses as is selected by the person mailing such cheque. The mailing of such cheque as aforesaid, unless the same is not paid on due presentation, shall satisfy and discharge all liability for the dividend to the extent of the sum represented thereby plus the amount of any tax which the Corporation is required to and does withhold. 8.3 Non -receipt of Cheques. In the event of non -receipt of any dividend cheque by the person to whom it is sent as aforesaid, the Corporation on proof of such non -receipt and upon satisfactory indemnity being given to it, shall issue to such person a replacement cheque for a like amount. 8.4 Record Date. The board may fix in advance a date preceding by not more than fifty days the date for the payment of any dividend or the date for the issue of any warrant or other evidence of right to subscribe for shares in the capital or securities of the Corporation as a record date for the determination of the persons entitled to receive payment of such dividend or to exercise the right to subscribe for such securities, as the case may be, and in every such case only such persons as shall be security holders of record at the close of business on the date so fixed shall be entitled to receive payment of such dividend or to exercise the right to subscribe for securities and to receive the warrant or other evidence in respect of such right, as the case may be, notwithstanding the transfer of any securities after any such record date fixed as aforesaid. Where no record date is fixed in advance as aforesaid, the record date for the determination of the persons entitled to receive payment of such dividend or to exercise the right to subscribe for such securities of the Corporation shall be at the close of business on the day on which the resolution relating to such dividend or right to subscribe is passed by the board. 8.5 Unclaimed Dividends. Any dividend unclaimed after a period of six (6) years from the date on which the same was declared to be payable shall be forfeited and shall revert to the Corporation. ARTICLE 9 NOTICES 9.1 Method of Giving. Any notice, communication or other document to be given by the Corporation to a shareholder, director, officer or auditor of the Corporation shall be sufficiently given if: (a) delivered personally to the person to whom it is to be given to the latest address of such person as shown in the records of the Corporation or its transfer agent; or (b) if sent by prepaid mail addressed to such address; or (c) if sent to such address by any means of transmitted or recorded Communication; or -15- (d) if sent by facsimile, to the latest facsimile number of the person to whom it is to be given, as shown in the records of the Corporation. The Secretary or any person authorized by him may change the address or telecopier number on the books of the Corporation of any shareholder in accordance with any information believed by him to be reliable. A notice, communication or document so delivered shall be deemed to have been received by the addressee when it is delivered personally to the address aforesaid; and a notice, communication or document so mailed shall be deemed to have been received by the addressee on the fifth day after mailing; and a notice sent by any means of transmitted or recorded communication shall be deemed to have been received by the addressee when delivered to the appropriate communication company or agency or its representative for dispatch; and a notice sent by facsimile shall be deemed to have been received at the time of transmission; provided however that, notwithstanding the foregoing, in the case of any meeting of directors, verbal notice thereof shall be sufficient notice. 9.2 Computation of Time. In computing the date when notice must be given under any provision of the Articles or by-laws requiring a specified number of days' notice of any meeting or other event, the period of days shall be deemed to commence the day following the date the notice was given and shall be deemed to terminate at midnight of the last day of the period, except that if the last day of the period falls on a Sunday or holiday the period shall terminate at midnight of the day next following that is not a Sunday or holiday. 9.3 Omissions and Errors. The accidental omission to give any notice to any shareholder, director, officer or auditor or the non -receipt of any notice by any shareholder, director, officer or auditor or any error in any notice not affecting the substance thereof shall not invalidate any action taken at any meeting held pursuant to such notice or otherwise founded thereon. 9.4 Notice to Joint Shareholders. All notices with respect to any shares registered in more than one name may, if more than one address appears on the books of the Corporation in respect of such joint holding, be given to such joint shareholders at such address so appearing as is selected by the person giving such notice, and notice so given shall be sufficient notice to all the holders of such shares. 9.5 Persons Becoming Entitled by Death or Operation of Law. Every person who by operation of law, transfer, death of a security holder or by any other means whatsoever, becomes entitled to any security, shall be bound by every notice in respect of such security which prior to his name and address being entered on the books of the Corporation was duly given to the person from whom he derives his title to such security. On the death of any security holder (not being one of several joint holders of a security) the executors or administrators of such deceased security holder shall be the only persons recognized by the Corporation as having any title to such security. Any person becoming entitled to a security in consequence of the death, bankruptcy or insolvency of any shareholder (herein referred to as a person entitled by transmission) shall produce to the Corporation such evidence as may be reasonably required by the board to prove his title and declare in writing his election either to be himself registered as a security holder in respect -16 - of the security, or instead of being registered himself, to make such transfer as the deceased or bankrupt person could have made. Until any person becoming entitled to any security by transmission has complied with the terms aforesaid, the Corporation may retain any dividend or other payment declared or payable upon such security, and shall not be bound to recognize the title of the person claiming under such transmission. 9.6 Proof of Service. A certificate of the Secretary or other duly authorized officer of the Corporation in office at the time of the making of the certificate, or of any agent of the Corporation as to facts in relation to the mailing or delivery or sending of any notice to any shareholder, director, officer or auditor shall be conclusive evidence thereof and shall be binding on every shareholder, director, officer or auditor of the Corporation, as the case may be. 9.7 Waiver of Notice. Any shareholder (or his duly appointed proxy) director, officer or auditor may waive any notice required to be given under any provision of the articles or by- laws of the Corporation or of the Act, and such waiver, whether given before or after the meeting or other event of which notice is required to be given, shall cure any default in giving such notice. Any shareholder (or his duly appointed proxy) may waive any irregularity in any meeting of shareholders. ARTICLE 10 BORROWING POWERS OF THE DIRECTORS 10.1 Borrowing Power. Without limiting the borrowing powers of the Corporation as set forth in the Act, but subject to the provisions of the Act, the board may from time to time, without authorization of the shareholders: (a) borrow money on the credit of the Corporation; (b) issue, reissue, sell or pledge debt obligations of the Corporation; (c) give guarantees on behalf of the Corporation to secure performance of an obligation of any person; and (d) mortgage, hypothecate, pledge or otherwise create a security interest in all or any property of the Corporation owned or subsequently acquired, to secure any obligation of the Corporation. 10.2 The directors may from time to time authorize any director or directors, officer or officers, employee of the Corporation or other person or persons, whether connected with the Corporation or not, to make arrangements with reference to the monies borrowed or to be borrowed as aforesaid and as to the terms and conditions of the loan thereof and as to the securities to be given therefor, with power to vary or modify such arrangements, terms and conditions and to give such additional debt obligations for any monies borrowed or remaining due by the Corporation as the directors of the Corporation may authorize and generally to manage, transact and settle the borrowing of money by the Corporation. -17- 10.3 The directors may from time to time authorize any director or directors, officer or officers, employee of the Corporation or other person or persons, whether connected with the Corporation or not, to sign, execute and give on behalf of the Corporation all documents, agreements and promises necessary or desirable for the purposes aforesaid and to draw, make, accept, endorse, execute and issue cheques, promissory notes, bills of exchange, bills of lading and other negotiable or transferable instruments and the same and all renewals thereof or substitutions therefor so signed shall be binding upon the Corporation. 10.4 The words "debt obligations" as used in this Section 10 mean bonds, debentures, notes or other similar obligations or guarantees of such an obligation, whether secured or unsecured. ARTICLE 11 BUSINESS OF THE CORPORATION 11.1 Registered Office. The registered office of the Corporation shall be in the municipality or geographic township within Ontario specified in its Articles, and at such place therein as the directors of the Corporation may from time to time by resolution determine. 11.2 Corporate Seal. The corporate seal of the Corporation, if any, shall be such seal as the directors of the Corporation may from time to time by resolution adopt. 11.3 Banking Arrangements. The banking business of the Corporation or any part thereof shall be transacted with such chartered banks, trust companies or other financial institutions as the board may by resolution from time to time determine. Cheques on the bank accounts, drafts drawn or accepted by the Corporation, promissory notes given by it, acceptances, bills of exchange, orders for the payment of money and other instruments of a like nature may be made, signed, drawn, accepted or endorsed, as the case may be, by such officer or officers, person or persons as the board of directors may by resolution from time to time name for that purpose. Cheques, promissory notes, bills of exchange, orders for the payment of money and other negotiable paper may be endorsed for deposit to the credit of the Corporation's bank account by such officer or officers, person or persons, as the board of directors may by resolution from time to time name for that purpose, or they may be endorsed for such deposit by means of a stamp bearing the Corporation's name. 11.4 Execution of Instruments. Any instruments in writing may be signed in the name of and on behalf of the Corporation by the President and Secretary and any instrument in writing so signed shall be binding upon the Corporation without any further authorization or formality. In the event that the Corporation has only one officer and director, that person alone may sign any instruments in writing in the name of and on behalf of the Corporation. The board of directors shall have power from time to time by resolution to appoint any other officer or officers or any person or persons on behalf of the Corporation either to sign instruments in writing generally or to sign specific instruments in writing. The corporate seal, if any, may be affixed to any instruments in writing on the authority of any of the persons named in this section. The term "instruments in writing" as used herein shall, without limiting the generality thereof, include contracts, documents, deeds, mortgages, hypothecs, charges, security interests, conveyances, transfers and assignments of property (real or personal, immovable or movable), agreements, tenders, releases, proxies, receipts and discharges for the payment of money or other obligations, conveyances, transfers and assignments of shares, stocks, bonds, debentures or other securities and all paper writings. 11.5 Investments. In particular, without limiting the generality of the foregoing, execution as provided in Section 11.4 hereof shall be adequate to sell, assign, transfer, exchange, convert or convey any securities, rights and warrants. 11.6 Voting Securities in Other Companies. All securities carrying voting rights in any other body corporate held from time to time by the Corporation may be voted at all meetings of holders of such securities in such manner and by such person or persons as the board of the Corporation from time to time determines. In the absence of action by the board, the proper signing officers of the Corporation may also from time to time execute and deliver for and on behalf of the Corporation instruments of proxy and arrange for the issuance of voting certificates and other evidence of right to vote in such naives as they may determine. 11.7 Solicitors. Either the President or the Secretary shall have power from time to time to instruct solicitors to institute or defend actions or other legal proceedings for the Corporation without any specific resolution or retainer or instructions from the board provided, however, that the board may give instructions superseding or varying such instructions. 11.8 Custody of Securities. The directors may from time to time by resolution provide for the deposit and custody of securities of the Corporation. All share certificates, bonds, debentures, debenture stock certificates, notes or other obligations or securities belonging to the Corporation, may be issued or held in the name of a nominee or nominees of the Corporation (and if issued or held in the name of more than one nominee shall be held in the names of the nominees jointly with right of survivorship) and may be endorsed in blank with endorsement guaranteed in order to enable transfers to be completed and registration to be effected. 11.9 ChargingAssets. The board may from time to time charge, hypothecate, mortgage or pledge any or all of the assets of the Corporation not only by means of bonds and debentures by way of fixed charge or charges or by way of floating charge or charges, but also by any other instrument or instruments for the purposes of securing any past or existing or new or future liability direct or indirect of the Corporation or for the purpose of securing any bonds, debentures or other securities or liabilities of the Corporation or of any other body corporate. 11.10 Invalidit of f Any Provisions of this By -Law. The invalidity or unenforceability of any provision of this by-law shall not affect the validity or enforceability of the remaining provisions of this by-law. 11.11 Fiscal Year. The fiscal year of the Corporation shall terminate on such day in each year as is from time to time established by the board of directors. -19 - The undersigned, being the sole director of the Corporation, by his signature below resolves pursuant to Section 129(1) of the Business Corporations Act that the foregoing by-law shall be and it is hereby made a by-law of the Corporation. DATED the day of , 2021. John henry The undersigned, being the sole shareholder of the Corporation entitled to vote in respect of the foregoing by-law, by his signature below resolves pursuant to Section 104(1) (a) and (b) of the Business Corporations Act that the foregoing by-law shall be and it is hereby confirmed as a by-law of the Corporation. DATED the day of , 2021. THE REGIONAL MUNICIPALITY OF DURHAM PER 3 T❑❑ Attachment 5 SUBSCRIPTION FOR SHARES TO: DURHAM ONENET INC. (the "Corporation") AND TO: THE BOARD OF DIRECTORS THEREOF The undersigned hereby subscribes for and agrees to take up One Hundred (100) common shares (the "Shares") of the Corporation and tenders herewith the sum of Ten Dollars ($10.00) in full payment of the subscription price for the Shares. The undersigned hereby requests that the Shares be allotted to the undersigned, that such Shares be issued as fully paid and non -assessable and that a certificate for the said Shares be issued to the undersigned. The undersigned hereby represents and warrants that the undersigned is subscribing for the Shares as principal and by initialling where indicated below, the undersigned fits within one of the following categories: ❑ (a) a director, officer, employee, founder' or control person'- of the Corporation; (b) a spouse, parent, grandparent, sibling or child of a director, executive officer, founder or control person of the Corporation; F-1 (c) a parent, grandparent, sibling or child of the spouse of a director, executive officer, founder or control person of the Corporation; L] (d) a close personal friend' or a close business associate' of a director, executive officer, founder or control person of the issuer; - (e) a current shareholder of the Corporation; - M an "accredited investor" (if this category is applicable, please complete and submit the Accredited Investor Certificate to be provided by the Corporation in addition to this subscription form); (g) a person of which a majority of the voting securities are beneficially owned by, or a majority of the directors are, persons described in categories (a) to (f) above; or [J (h) a trust or estate of which all of the beneficiaries or a majority of the trustees or executors are persons described in categories (a) to (f) above. DATED as of the day of 2021. THE REGIONAL MUNICIPALITY OF DURHAM PER I The term "founder" means a person who takes the initiative in founding, organizing or substantially reorganizing the business of the Corporation and is actively involved in the business of the Corporation as at the date hereof. 2 "control person" means a person that holds more than 20% of the outstanding voting securities of the Corporation. ' A "close personal friend" is an individual who knows the director, executive officer, founder or control person of the Corporation well enough and has known them for a sufficient period of time to be in a position to assess their capabilities and trustworthiness. 4 A "close business associate" is an individual who has had sufficient prior business dealings with a director, executive officer, founder or control person of the Corporation to be in a position to assess their capabilities and trustworthiness. RESOLUTIONS OF THE BOARD OF DIRECTORS OF DURHAM ONENET INC. (the "Corporation") APPOINTMENT OF OFFICERS RESOLVED THAT the offices of the Corporation and the individual or individuals appointed to such offices shall be as follows: Name Office John Henry President .Jason Hunt Secretary FORM OF COMMON SHARE CERTIFICATE RESOLVED THAT the form of common share certificate annexed hereto is hereby approved and adopted as the form of common share certificate of the Corporation. REGISTERED OFFICE RESOLVED THAT the location of the registered office of the Corporation shall be at 605 Rossland Road E. Whitby Ontario, LIN 6A3, FINANCIAL YEAR END RESOLVED THAT the financial year end of the Corporation shall be on the 31 st day of December in each year or on such other date as the Board of Directors may by resolution determine, the first financial year end to terminate on December 31, 2021. ISSUANCE OF COMMON SHARES WHEREAS the Corporation has received the following subscription for common shares, together with the aggregate subscription price therefor in the amount of Ten Dollars in the aggregate ($10.00); Name Number of Shares 3 TFIF] The Regional Municipality of Durham 100 common NOW THEREFORE BE IT RESOLVED THAT: Such subscription is hereby accepted. 2. The Corporation, having received payment in full for such common shares, hereby issues such common shares as fully paid and non -assessable shares in the capital of the Corporation at a price hereby fixed by the Board of Directors of $10.00 in the aggregate. SOLICITORS AND AUTHORITY TO SIGN NOTICES RESOLVED THAT WeirFoulds LLP (the "Corporation's Solicitors") are hereby appointed solicitors for the Corporation and any partner, associate or corporate law clerk of the Corporation's Solicitors who has the relevant knowledge of the affairs of the Corporation is authorized to sign and file (electronically or otherwise): (i) any initial return; (ii) any notice of change; and (iii) any annual return, as required by the Corporations Information Act (Ontario). LOCATION OF MINUTE BOOK RESOLVED THAT the minute book of the Corporation be maintained at either the Corporation's registered office or at the offices of the Corporation's Solicitors. The foregoing resolutions are, by the signature below of the sole director of the Corporation, each passed by the Board of Directors of the Corporation pursuant to the provisions of Section 129(1) of the Business Corporations Act (Ontario). DATED as of the day of 52021. John Henry 3 []1]❑❑ RESOLUTIONS OF THE SHAREHOLDER OF DURHAM ONENET INC. (the "Corporation") NUMBER OF DIRECTORS WHEREAS the articles of incorporation of the Corporation provide that the Board of Directors shall consist of a minimum of one (1) and a maximum of fifteen (15) directors; AND WHEREAS Section 125(3) of the Business Corporations Act (Ontario) provides that the number of directors shall be determined from time to time by special resolution of the shareholders; AND WHEREAS the directors, if so empowered by special resolution of the shareholders, may thereafter determine the number of directors of the Corporation by resolution of the board of directors; RESOLVED, AS A SPECIAL RESOLUTION, THAT: 1. Until otherwise determined, the number of directors of the Corporation shall be one (1); and 2. The directors of the Corporation are hereby empowered to determine the number of directors of the Corporation hereafter from time to time. ELECTION OF DIRECTOR RESOLVED THAT John Henry, Regional Chair, is hereby elected as the sole director of the Corporation, to serve until the first annual meeting of shareholders of the Corporation or until his successor is duly elected or appointed in accordance with the Business Corporations Act (Ontario) and the Corporation's bylaws. AUDITORS RESOLVED THAT Deloitte Canada are appointed as Auditors of the Corporation. The foregoing resolutions are, by the signature below of the sole shareholder of the Corporation entitled to vote on such resolutions, passed pursuant to the provisions of Section 104(1) of the Business Corporations Act (Ontario). DATED as of the day of , 2021. THE REGIONAL MUNICIPALITY OF DURHAM PER CONSENT TO ACT AS A DIRECTOR TO: DURHAM ONENET INC. (the "Corporation") I, John Henry: 1. consent to act as a director of the Corporation, such consent to continue in effect from time to time until a date upon which I give written notice to the Corporation revoking such consent or cease to be a director of the Corporation; 2. consent to the holding of meetings of directors or of committees of directors by means of such telephone, electronic or other communication facilities as permit all persons participating in the meetings to communicate with each other simultaneously and instantaneously; 3. acknowledge and declare that I am at least 18 years of age and am, [ X ] a Canadian citizen ordinarily resident in Canada or a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada) and ordinarily resident in Canada; or [ ] a Canadian citizen not ordinarily resident in Canada; or [ ] none of the above; 4. undertake to advise the Corporation in writing of any change in my citizenship or residence forthwith after such change; 5. acknowledge that persons who have been found under the Substitute Decisions Act, 1992 (Ontario) or under the Mental Health Act (Ontario) to be incapable of managing property or who have been found to be incapable by a court in Canada or elsewhere, and persons with the status of a bankrupt, are disqualified from being directors of a corporation and declare that I am not so disqualified; 6. undertake to advise the Corporation in writing forthwith if I become disqualified to act as a director; and 7. acknowledge that the Corporation will rely upon the foregoing information DATED as of the day of , 2021. John Henry 3 CF] Form 2 Business Corporations Act Formula 2 Loi sur les socieles par actions CONSENT TO ACT AS A FIRST DIRECTOR CONSENTEMENT DU PREMIER ADMINISTRATEUR I,IJe soussigne(e), _.. address for service domicile elu John Henry (First name, middle names and surname) (Prenom, autres Prenoms at nom de famille) Attachment 6 605 Rossland Road East, Whitby, ON L1 N 6A3 (Street & No. or R.R. No., Municipality, Province, Country & Postal Code) (Rue at humero, ou oumero de la R.R., nom de la municipatiO, province, pays at code postal) hereby consent to act as a first director of accepte par la presente de devenir premier administrateur de Durham OneNet Inc. (Name of Corporation) (Denomination sociale de la societe) (Signature of the Consenting Person) (Signature de Pacceptant) 07117 (06/01) 3 E1❑❑ W W John Henry, Regional Chair, by his signature hereto is hereby authorizing the filing of the attached Articles of Incorporation with the Ministry of Government & Consumer Services. Dated the day of , 2021. John Henry, Regional Chair Attachment 8 core Poi —d by oncoq: Reference Info: 18113.00089 Printed on October 21, 2021 14:31 Docket Info: DRC Requested Incorporation Date: ASAP Articles of Incorporation Business Corporations Act 1. Corporation Name DURHAM ONENET INC. 2. Registered Office Address 605 ROSSLAND ROAD EAST, WHITBY, ONTARIO, CANADA, L1N 6A3 3. Number of Directors Minimum Maximum 4. The first director(s) is/are: . Full Name JOHN HENRY Resident Canadian? Yes Address for Service 605 ROSSLAND ROAD EAST, WHITBY, ONTARIO, CANADA L1N 6A3 S. Restrictions, If any, on business the corporation may carry on or on powers the corporation may exercise: The purpose of the Corporation is to provide.a telecommunications system and telecommunications service, including, without limitation, a highspeed broadband internet network and sgrvice.'The Corporation may exercise all rights, powers and privileges of a natural person in relation to the Corporation's purpose and all matters incidental thereto, including, without limitation, carryingonbusiness and engaging in activities in relation to the provision of a telecommunications system and telecommunications service, including, without limitation, a high speed broadband internet network and service, the acquisition, divestiture and charging of or granting a security Interest In real or personal property, the development, design, construclionj acquisition, operation, repair, replacement, maintenance and divestiture of the whole or any part of a telecommunications system or telecommunications service, including, without limitation, a high speed broadband internet network and service; conducting business and entering into obligations of any nature (including, without limitation, the borrowing of money or the incurring of debt) and entering into contracts of any nature in relation thereto; provided that, notwithstanding the foregoing, the Corporation may not pursue any purpose or exercise any right, power or privilege in contravention of or inconsistent with the Municipal Act, 2001, S.O. 2001, c. 25 (the "Municipal Act"), as amended from time to time, or its successor or replacement, or any regulations now or hereafter from time to time passed pursuant thereto. 6. The classes and any maximum number of shares that the corporation is authorized to issue: The Corporation is authorized to issue an unlimited number of common shares. 7. Rights, privileges, restrictions and conditions (If any) attaching to each class of shares and directors' authority with respect to any class of shares which may be issued in series: COMMON SHARES (a) The holders of the common shares shall be entitled to vote at all meetings of shareholders, except meetings at which only holders of a specified class of shares other than common shares are entitled to vote. (b) The holders of the common shares shall be entitled to receive dividends as may be declared from time to time by the Board of Directors. (c) The holders of the common shares shall be entitled to receive the remaining property of the Corporation upon the liquidation or dissolution of the Corporation or upon the distribution of assets for the purpose of winding up Its affairs. 8. The Issue, transfer or ownership of shares Is/Is not restricted and the restrictions (if any) are as follows: The right to transfer shares of the Corporation shall be restricted in that no shareholder shall be entitled to transfer any share or shares of the Corporation without the approval of: (a) the directors of the Corporation expressed by resolution passed by the votes cast by a majority of the directors of the Corporation at a meeting of the board of directors or signed by all of the directors of the Corporation; or (b) the shareholders of the Corporation expressed by resolution passed by the votes cast by a majority of the shareholders who voted in respect of the resolution or signed by all shareholders entitled to vote on that resolution. 9. Other Provisions, if any: Reference Info: 19113.00009 Docket Info: DRC Printed on October 21, 2021 14:31 Requested Incorporation Date: ASAP (a) The number of security holders that beneficially own, directly or indirectly, securities of the Corporation, other than non. convertible debt securities, is limited to 50, not including employees or former employees of the Corporation or its affiliates, provided that each person is counted as one beneficial owner unless the person is created or used solely to purchase or hold securities of the Corporation in which case each beneficial owner or each beneficiary of the person, as the case may be, must be counted as a separate beneficial owner. (b) The securities of the Corporation, other than non - convertible debt securities, may be distributed only to persons described in Section 2.4 of National Instrument 45 -106 - Prospectus and Registration Exemptions, as promulgated by the Canadian Securities Administrators, as the same may be amended, replaced or substituted for from time to time. 10. The namo(s) and addross(os) of incorporator(s) aro: Full Name JOHN HENRY Address for Service 605 ROSSLAND ROAD EAST, WHITBY, ONTARIO, CANADA, LIN 6A3 The articles have been properly executed by the required person(s). 3 TFIF] Attachment 9 By-law Number **-2021 of The Regional Municipality of Durham Being a by-law to authorize a Municipal Capital Facilities Agreement between The Regional Municipality of Durham and Durham OneNet Inc. Whereas section 110(1) of the Municipal Act, 2001, SO 2001, c. 25, as amended (the "Act"), provides that the council of a municipality may enter into an agreement for the provision of municipal capital facilities by any person. And Whereas paragraph 5 of section 2 of Ontario Regulation 603/06, as amended (the "Regulation"), provides that such an agreement can be entered into with respect to municipal facilities for the provision of telecommunications systems. And Whereas The Regional Municipality of Durham (the "Region") owns certain telecommunications facilities, including, without limitation, broadband fibre facilities (the "Facilities") through which the Region utilizes for internal broadband connectivity within the Region. And Whereas the Region has determined that it is in the public interest for the Facilities, in whole or in part, to be owned, operated, maintained, and expanded by Durham OneNet Inc. ("DON"). And Whereas WHEREAS the Region intends to transfer the Facilities, in whole or in part, to DON and to provide certain financial and other assistance to DON to assist DON to own, operate, maintain, and expand the Facilities. And Whereas it is the intention of both the Region and DON that the financial and other assistance to be provided by the Region to DON under this Agreement be for the provision of municipal capital facilities under section 110 of the Act and the Regulation. Now therefore, the Council of The Regional Municipality of Durham hereby enacts as follows: 1. The Council hereby designates the Facilities as municipal capital facilities for telecommunications purposes. 2. The Region is authorized to enter into a Municipal Capital Facilities Agreement with DON in the form attached as Schedule "A" to this Bylaw (the "Agreement"). 3 rn Attachment 9 3. The Regional Clerk and Regional Chair are hereby authorized to execute the Agreement on behalf of the Region. 4. In accordance with section 110(5) of the Act, the Clerk is hereby directed to give written notice of this Bylaw to the Minister of Finance and any other party to whom notice is required to be given pursuant to the Act or Regulations. 5. Schedule "A" attached is incorporated into and shall form part of this Bylaw. This By-law Read and Passed on the ---t" day of -----------, 2021. J. Henry, Regional Chair and CEO R. Walton, Regional Clerk 3 rn BETWEEN: SCHEDULE "A" THIS AGREEMENT made this XX day of XX, 2021. THE REGIONAL MUNICIPALITY OF DURHAM (hereinafter referred to as the "Region") - and - DURHAM ONENET INC. (hereinafter referred to as "DON") OF THE FIRST PART OF THE SECOND PART MUNICIPAL CAPITAL FACILITIES AGREEMENT WHEREAS the Region owns certain telecommunications, facilities, including, without limitation, broadband fibre facilities, (defined in this Agreement as the "Facilities") through which the Region utilizes for internal broadband connectivity within the Region; AND WHEREAS the Region has determined that it is in the public interest for the Facilities to, in whole or in part, be owned, operated, maintained and expanded by DON; AND WHEREAS the Region intends to transfer, in whole or in part, the Facilities to DON and to provide certain financial and other assistance to DON to assist DON to own, operate, maintain and expand the Facilities; AND WHEREAS it is the intention of both the Region and DON that the financial and other assistance to be provided by the Region to DON under this Agreement be for the provision of municipal capital facilities under Section 110 of the Act and the Regulations thereunder pursuant to Regional By-law No. XXXXX designating the Facilities as such and authorizing this Municipal Capital Facilities Agreement; NOW THEREFORE in consideration of the mutual covenants and agreements contained in this Agreement and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto covenant and agree as follows: 3 rn Attachment 10 INTERPRETATION In this Agreement, "Act" means the Municipal Act, 2001, SO 2001, c. 25, as amended; "Council" means the Council of the Region as composed from time to time; "Facilities" means the telecommunications network constructed by and currently operated by the Region and which enables broadband connectivity throughout the Region; "Municipal Capital Facilities" means municipal capital facilities that meet the requirements of section 110 of the Act and the Regulations; "Regulations" means the regulations made under the Act; and "Rights -of -Way" means highways, streets, road allowances, lanes, bridges or viaducts which are under the jurisdiction of the Region. In this Agreement, unless the context requires otherwise, words importing the singular include the plural, and vice versa, and words importing gender include all genders. Except where other expressly provided, all amounts in this Agreement are stated in and shall be paid in Canadian currency. In the event that one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect under any application law, the validity, legality or enforceability of the remaining provisions hereof shall not be affected or impaired thereby. Each of the provisions of this Agreement is hereby declared to be separate and distinct. This agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein. ACKNOWLEDGEMENTS AND COVENANTS The Region and DON agree and acknowledge that the Region intends to transfer ownership of the whole or part of the Facilities to DON by way of gift or sale, including a sale for nominal less than fair market consideration or no consideration, or to otherwise lease, licence or lend the use of the whole or part of the Facilities to DON. Such transactions and/or assistance shall be at the discretion of the Region as from time to time approved by Council. The Region covenants and agrees that it will consent to DON's use of and access to the Regional Rights -of -Way as may be required in order to construct, operate, maintain and expand the Facilities. The Region and DON covenant and agree that they will execute such further agreements as are necessary for this purpose. 3 TFIF] Attachment 10 The Region and DON acknowledge and agree that the Region may, at its discretion from time to time as approved by a by-law enacted by Council, provide financial or other assistance as prescribed by the Act and the Regulations thereunder to DON for the purpose of DON's ownership and operation of the Facilities. Without limiting the generality of the foregoing, the assistance provided by the Region to DON may include any or all of the following or any other financial assistance from time to time prescribed by the Act or Regulations for Municipal Capital Facilities: funding of DON's annual capital and operating expenses; guaranteeing borrowing by DON; the use of services of employees of the Region at less than fair market value; the use of office space and equipment owned by the Region at less than fair market value; exemption of the land on which the Facilities are located from taxation for municipal and school purposes; and exemption of the land on which the Facilities are located from the payment of development charges. The Region and DON acknowledge and agree that it is their common intention that the financial and other assistance being provided by the Region to DON for the purpose of owning, operating, maintaining and expanding the Facilities, is being provided by the Region pursuant to section 110 of the Act and the Regulations thereunder in order that DON provide Municipal Capital Facilities. Except for the specific assistance set forth herein, the Region is not obligated in any manner with respect to the Facilities or to provide any additional financial assistance in connection therewith. DON shall operate, maintain and expand the Facilities so that the Facilities satisfy the requirements applicable to Municipal Capital Facilities under the Act and the Regulations. If any amendments are made to Section 110 of the Act or the Regulations thereunder after the date of this Agreement, DON and the Region covenant and agree to cooperate reasonably to try to achieve their mutual common intention that the Facilities be Municipal Capital Facilities throughout the time that this Agreement is in force. The Region and DON covenant and agree that they will not, while this Agreement is in force, do any act or thing, or omit to do any act or thing if doing so or omitting to do so, as the case may be, that would result in the Facilities ceasing to satisfy all statutory or regulatory requirements applicable to a Municipal Capital Facility pursuant to the Act and the Regulations. 3 [[E❑❑ Attachment 10 MISCELLANEOUS No provision of this Agreement may be changed, modified or amended, other than by an agreement in writing signed by DON and the Region, and duly approved by Council of the Region. Time is of the essence of this Agreement. From time to time, DON or the Region, as the case may be, will execute and deliver to the other such additional documentation, and will provide such additional information, as the other may reasonably require, in order to carry out the intention and terms of this Agreement. This Agreement shall be binding upon both the Region and DON and their respective successors and permitted assigns. This Agreement may not be assigned by DON without the prior written consent of the Region, which consent may be unreasonably withheld. IN WITNESS WHEREOF the parties have caused this Agreement to be executed on the date first above written. THE REGIONAL MUNICIPALITY OF DURHAM Per: Name: John Henry Title: Regional Chair Per: Name: Ralph Walton Title: Regional Clerk We have the authority to bind the Region. DURHAM ONE NET INC. Per: _ Name: Title: Chief Executive Officer Per: Name: Title: Secretary We have the authority to bind the Corporation. 3 TFIF] Attachment 11 THE REGIONAL MUNICIPALITY OF DURHAM ASSET TRANSFER POLICY Purpose The purpose of this policy is to permit transfers of Regional assets to corporations owned by the Region in accordance with the requirements of applicable legislation. Definitions Act means the Municipal Act, 2001, SO 2001, c 25, including Regulations made under it, as amended. Asset or Assets means real property and personal property of the Region and its agencies, boards, commissions and corporations. Corporation means a corporation incorporated in accordance with section 203 of the Act and Ontario Regulation 599/06 made under the Act, as amended. Policy Assets may be transferred to a Corporation at any time, and from time to time, as authorized by Council, on such terms as Council may determine. 2. Any transfer of Assets must be approved by Council in advance of the transfer, based on consultation with the Regional Solicitor and the Commissioner of Finance/Treasurer, to ensure compliance with prevailing legislation, including but not limited to the Act, and municipal reporting requirements. 3. In determining whether to authorize a transfer of Assets to a Corporation, Council may have regard to the extent to which the transfer is in keeping with existing Regional financial policies and will achieve one or more of the objectives of the Region's Strategic Plan such as: (a) optimizing the use and value of the Assets; (b) advancing the Region's economic development, vitality and competitiveness; (c) supporting community health and well-being; (d) managing environmentally sustainable growth; (e) providing responsive and efficient public service; and (f) enhancing the quality of life for the Region's citizens. 4. Council may impose such terms and conditions on the transfer of Assets as it deems necessary, including but not limited to: (a) specifying the permitted use of the Assets; (b) requiring the Corporation to transfer the Assets back to the Region upon the happening of an event or events as determined by Council; (c) restricting or prohibiting further transfer of the Assets; 3 TFIF] Attachment 11 (d) attaching a purchase price to the Asset(s), to be paid or owed to the Region by the Corporation; and (e) such other terms or conditions as Council deems advisable and appropriate. 5. Prior to the transfer of assets, asset valuations will be determined and set in accordance with the Region's Tangible Capital Asset Policy. 6. Before any transfer of Assets, Regional staff shall determine the current fair market value of the Assets. This determination may be made using an appraiser, but such an appraisal shall not necessarily be required where staff is of the opinion that the fair market value can otherwise be accurately determined. 7. Where any Asset is transferred at less than fair market value, the Treasurer shall prepare a statement of the estimated fair market value of the Asset. 8. The Treasurer shall record all transfers of Assets in accordance with Public Sector Accounting Board financial reporting standards and the Region's accounting policies. 3 TFIFI Shareholder's Direction for Durham OneNet Inc. (the "Corporation") WHEREAS: Attachment 12 A. The Regional Municipality of Durham (the "Region") has established the Corporation as a Municipal Services Corporation pursuant to the provisions of the Municipal Act and the OBCA and is the sole shareholder of the Corporation; B. The Region incorporated the Corporation for the purpose of providing a telecommunications and high-speed broadband internet network in Durham Region. The Corporation will register with the Canadian Radio -television and Telecommunications Commission as a non-dominant carrier; C. The Region as the sole shareholder of the Corporation has developed a detailed initial business plan for establishing the Corporation's business and undertaking as more particularly described below which will be brought to Regional Council ("Council") for approval (the initial business plan once approved by Council herein called the "Initial Plan"); and D. The Region, in this Shareholder's Direction, wishes to set out for the Board, the Region's expectations of, and objectives for, the Corporation's mandate, scope of responsibility, and reporting requirements in respect of its business and operations. NOW THEREFORE it is hereby agreed and declared as follows.- 1. ollows:1. INITIAL PLAN 1.1 The Initial Plan shall include the following, together with anything else that the Corporation or the Board may consider necessary or advisable (or that Council may require once a proposed Initial Plan is placed before Council for approval), in relation to the following: (a) an initial strategic plan, business and financial plan and budget (including a capital and operating budgets), including, without limitation, any transfer of assets and financial assistance that may be required in relation thereto; (b) a proposal for pursuing existing and future grant applications in relation to the Corporation's pursuit of its objects; and (c) any plan for pursuing arrangements with any third -party entity in relation to the Corporation's undertaking as a telecommunications and high-speed broadband internet network serving Durham Region. Once the proposed Initial Plan (with any such amendments as required by Council) is approved by Council it shall constitute the Initial Plan for the purposes of this Shareholder's Direction. Attachment 12 2. LIMITATIONS 2.1 The Corporation and the Board shall not, without further approval of Council, undertake any activities beyond what they are expressly empowered to proceed with in this Shareholder's Direction, but are empowered to do all things necessary or advisable in pursuit of those activities. 2.2 The provisions in this Shareholder's Direction following this Section 2.2 are not effective until the Initial Plan has undergone the necessary Council procedure and has been approved by Council. Upon such approval having been obtained from Council the proposed Initial Plan (with such amendments as required by Council) shall be considered the Initial Plan for the purposes of this Shareholder's Direction, and the provisions of this Shareholder's Direction immediately following this Section 2.2 shall become effective without further action being required. 3. DEFINITIONS AND INTERPRETATION 3.1 In this Shareholder's Direction, the following definitions apply: (a) "Annual Business Plan" means the annual business plan presented by the President, approved by the Board and approved by Council which is from time to time in effect, and which includes any updates to the Corporation's strategic plan, the Corporation's business and financial plan and budgets for the Corporation (including capital and operating budgets) and such other information for the applicable period covered by such Annual Business Plan as set out in Section 9.1, required by this Shareholder's Direction or otherwise required by Council. (b) "Annual Report" means the Corporation's annual report to its shareholder, the Region, as more particularly described in Section 9.6. (c) "Applicable Law" means any federal, provincial or municipal statute, regulation, regulatory policy or order of any Government Authority, including all applicable by-laws, as same may be amended from time to time (including federal, provincial, or municipal government, or any entity, person, court or other body or organization exercising one more executive, legislative, judicial or regulatory functions, having jurisdiction over the matter). (d) "Articles" means the Articles of Incorporation of the Corporation issued by the Province of Ontario's Ministry of Government Services on *** , 2021. (e) "Authorized Region Signatory" means the individual or individuals who are authorized by Council to sign written approvals or other documents relating to the Corporation on behalf of the Region. (f) "Corporate Employees" has the meaning set out in Section 6.2. "Corporate Employees" does not include Regional Staff. Attachment 12 (g) "Durham Region" means the geographical area of the Regional Municipality of Durham. (h) "Financial Statements" means, for any particular period, audited and/or (if the requisite legal exemptions are available at law and have been validly authorized and pursued) unaudited comprehensive financial statements of the Corporation consisting of not less than a balance sheet, a statement of income and retained earnings, a statement of changes in financial position, a report or opinion of the Corporation's auditor, and such other statements reports, notes and information as are required in accordance with any Applicable Law, all prepared in accordance with GAAP (meaning Canadian generally accepted accounting principles applied on a consistent basis and which are in accordance with recommendations from time to time of the Chartered Professional Accountants of Canada, at the date on which such generally accepted accounting principles are applied). (i) "Fiscal Year" means the twelve (12) month period commencing on January 1 st and ending on December 31 st. (j) "Municipal Act" means the Municipal Act, 2001, S.O. 2001 c.25, as may be amended, replaced and/or re-enacted from time to time. (k) "Network" means the telecommunications and highspeed broadband networks in Durham Region being a dark fibre telecommunications network consisting of fibre optic cables and other means of transmission facilities, appurtenances, and related equipment, including conduit, but excluding real property upon which the facilities are situated. (1) "OBCA" means the Business Corporations Act (Ontario), as may be amended, replaced and/or re-enacted from time to time. (m) "President" means the President of the Corporation. (n) "Regional" when used in relation to a facility, means a facility owned, operated or managed by the Region, and when used in relation to a branch or department, means a Regional branch or department of the Region. (o) "Regional Auditor" means the Internal Auditor of the Region. (p) "Regional CAO" means the Chief Administrative Officer of the Region. (q) "Regional Treasurer" means the Commissioner of Finance and Treasurer of the Region. (r) The necessary grammatical changes required to make the provisions of this Shareholder's Direction apply in the plural sense where the context comprises more than one entity and to corporations, associations, partnerships or individuals, males or females, in all cases will be assumed Attachment 12 as though in each case fully expressed. References to any individual shall be read with such changes in number and gender as may be appropriate. (s) The captions for sections of this Shareholder's Direction are for convenience only and are not to be considered a part of this Shareholder's Direction and do not, in any way, limit or amplify the terms and provisions of this Shareholder's Direction. (t) Where there is a reference to a director, officer or employee performing duties in respect of this Shareholder's Direction, this shall also include the individual acting in that capacity or his or her designate. (u) In the event of any conflict between any approval or direction given or action taken pursuant hereto or any provision of this Shareholder's Direction and any Applicable Law, the Applicable Law shall govern. 4. MISSION AND GUIDING PRINCIPLES 4.1 Mission and Guiding Principles of the Corporation The Corporation's mission is to maintain and expand the Network, to provide open access fibre connectivity across Durham Region, to deliver Regional services and to enable economic development and innovation across Durham Region through improved broadband connectivity. 4.2 The Corporation's mission is supported by these guiding principles: (a) Improve Service Delivery: Leverage the Network to expand and enable more impactful Regional services to its residents through the use of network fibre to connect Regional facilities, assets and operations. (b) Fast and Reliable: Design and build a fibre based, future -proof, scalable and resilient network to meet current to future needs. (c) Ubiquitous: Expand the Network across Durham Region to encourage and enable service providers to deliver ubiquitous broadband services across Durham Region. (d) Collaborative: Leverage private and public partnerships aligned to the vision of a Regional Broadband Network connecting our communities. (e) Open Access: The Network should be open for all service providers to deliver a vast array of broadband services and foster competitive choice across Durham Region. (f) Affordable and Inclusive: The Corporation should seek opportunities to influence and offer affordable services across Durham Region. Attachment 12 5. OBJECTIVES AND PRINCIPLES 5.1 Purpose of this Shareholder's Direction This Shareholder's Direction: (a) Sets out for the Board the Region's expectations of and objectives for the Corporation and the Corporation's mandate, scope of responsibility, and reporting requirements; (b) Sets out the relationship between the Corporation and the Region, and (c) Constitutes, where applicable, a declaration by the Region, as the sole shareholder of the Corporation, pursuant to subsection 108(3) of the OBCA. 5.2 Regional Objectives The Region has the following objectives in its decision to incorporate the Corporation as a wholly-owned subsidiary of the Region under the OBCA: (a) As an OBCA corporation governed by a board of directors, the Corporation will have greater agility to make and implement decisions quickly.within the defined strategy and budgets and defined reporting requirements. Through delegation from the Board to the President, the President can execute agreements that are in conformance with the approved Annual Business Plan. (b) As a for-profit corporation under the OBCA, the Corporation will have greater ability to enter into strategic partnerships, pilot projects and other business arrangements. (c) In time, the Corporation will be financially sustainable on an operating basis. 5.3 Mandate of the Corporation The Corporation will strive to achieve the Region's objectives set forth in Section 5.2 (Regional Objectives) when carrying out the following mandates. Specifically: (a) The Corporation shall ensure that the connectivity requirements of Regional departments for service delivery continue to be addressed to enhance operational efficiencies and use of applications. (b) The Corporation shall assist municipalities, universities, schools and hospitals sector entitles within Durham Region in meeting and/or optimizing their connectivity levels to foster better communications. Attachment 12 (c) The Corporation shall develop a telecommunications system that provides open access fibre infrastructure across Durham Region to public and private sector entities. (d) Subject to the terms and conditions of this Shareholder's Direction, the Corporation shall assume responsibility for strategic planning, management and development of the Network, including without limiting the generality of the foregoing, the Network design, preliminary design, construction, maintenance, operation, capital delivery, funding, financing, and procurement in respect of the Network. The Corporation's responsibilities in this respect will include but not be limited to pursuing funding opportunities, negotiating contracts, structuring business and commercial arrangements, including pricing and fees structure, and entering into contracts to give effect thereto. 5.4 Agreements and Ownership of Assets (a) The Corporation will own or have such ownership interests in the assets and infrastructure of the Network as acquired by it in conformance with the Annual Business Plan and as transferred to it by the Region pursuant to transfers entered into by the Region in conformance with any applicable Asset Transfer Policy, with the exception of assets and infrastructure that may be owned by any third -party entity also involved in developing and operating the Network. (b) The majority of such infrastructure is affixed to and/or situated in a Regional rights-of-way, under the legal jurisdiction of the Region, as the road authority. The Corporation shall enter into a municipal access agreement with the Region under which the Corporation will be granted such rights to the Regional right-of-way that are necessary for the Corporation to construct, maintain and operate the current and future Network. (c) Any business agreements and other Network related operational agreements that are currently in place between the Region and a third party shall be assigned by the Region to the Corporation upon the Region entering into an assignment agreement in conformance with any Annual Business Plan acceptable to the Region and the Corporation. All future access and other Network related operational agreements shall be entered into in the Corporation's name, provided that they are provided for and contemplated in an Annual Business Plan. (d) All rights in intellectual property created by the Corporation regarding or in respect of the Network including but not limited to copyrights, trademarks, trade secrets, patents and industrial designs shall be owned by the Corporation. The Region may request a licence from the Corporation to use the Corporation's intellectual property, in whole or in part, such request not 3 [[E❑❑ Attachment 12 to be unreasonably denied. Any such licence granted will be irrevocable. perpetual, and royalty -free. 5.5 Operating Principles The directors and officers of all OBCA corporations have a duty to act honestly, in good faith, and in the corporation's best interests. The Corporation is wholly owned by the Region and the Region has established the objectives for the Corporation that are aligned with the Region's interests. In this context, the Corporation, acknowledges and agrees, that in delivering its mandate, the following principles will govern the operations, services and activities of the Corporation: (a) The Corporation will conduct its business in a socially responsible manner that respects the public nature of its shareholder and the importance of the Region's accountability to the general public. (b) The Corporation will operate in a manner to enable the Corporation to become financially sustainable on an operating basis over time. (c) The Corporation will initially operate as a fibre provider that is effectively providing connection infrastructure. This could include any networking and management equipment to operate and manage services provided. (d) The Corporation will conduct its affairs in a manner that supports the Region's goals and priorities and is not in conflict with them. (e) The Corporation will act in accordance with and be accountable for the financial performance and strategic objectives as set out in the Corporation's Annual Business Plans. (f) The Corporation will act reasonably to mitigate financial risks to the Region. 5.6 Municipal Services Corporation Requirements under the Municipal Act The Board shall ensure that the Corporation fulfills its legal obligations under the Municipal Act as a municipal services corporation incorporated pursuant to the Municipal Act. The following highlights sections of O. Reg . 599/06 (the "Regulation") under the Municipal Act that are most relevant to the corporation: (a) Section 18(1) of the Regulation prohibits the Corporation from incorporating another corporation. (b) Section 18(2) of the Regulation provides that the Corporation may only invest in securities that are prescribed under section 418 of the Municipal Act and any Regulation made under section 418 applies to the Corporation. (c) Section 19 of the Regulation provides that the directors and officers of the Corporation are deemed to be members for the purposes of the Municipal Attachment 12 Conflict of Interest Act which imposes certain obligations relating to declaring interests and avoiding conflicts of interest and establishes consequences for failing to comply with those obligations. In addition, as an OBCA corporation, the directors and officers of the Corporation are required to comply with the conflict of interest requirements set out in the OBCA. (d) Section 20 of the Regulation provides that a wholly owned municipal services corporation is deemed to be an institution for purposes of the Municipal Freedom of Information and Protection of Privacy Act. (e) Section 21(2) of the Regulation provides that the Corporation shall be deemed to be a local board for the purposes of subsection 270(2) of the Municipal Act, that requires the Corporation adopt and maintain policies with respect to the following matters: (i) sale and other disposition of land; (ii) hiring of employees; and (iii) procurement of goods and services. 5.7 Confidentiality The Corporation shall use its best efforts to ensure that no confidential information of the Region or the Corporation Js disclosed or otherwise made available by the Corporation or any of its directors, officers and employees to any individual, except to the extent that: (a) Disclosure to the Region's or the Corporation's officers, employees or agents is necessary for the performance of any of their duties or obligations under this Shareholder's Direction, or in their jobs at the Region, or for the performance of duties by third parties receiving confidential information; or (b) Disclosure is required in the course of any legal or regulatory proceedings or actions or pursuant to an Applicable Law; or (c) The confidential information becomes part of the public domain (other than through unauthorized disclosure by the Corporation); or (d) Disclosure is made in full compliance with and as required by the Municipal Freedom of Information and Protection of Privacy Act and the conflict of interest provisions in the OBCA or other applicable law or regulation or by court order. Attachment 12 6. RELATIONSHIP TO THE REGION 6.1 Relationship of the Corporation to the Region (a) The Region is the sole shareholder of the Corporation and requires that the Corporation take responsibility for designing, constructing, maintaining, operating and developing the Network in accordance with the mandate set out 'in Section 5.3, subject to the terms, conditions and provisions of this Shareholder's Direction and Applicable Law. To this end and subject to the express terms and conditions of this Shareholder's Direction, the Region hereby directs and authorizes the Corporation to undertake any and all steps necessary to carry out these responsibilities in conformance with the Corporation's Annual Business Plans, including without limitation, procuring, awarding, executing, project managing, and awarding contracts. (b) Under the Municipal Act, the Region has, and will continue to have, legal jurisdiction of the Regional rights-of-way upon which the Network is situated. (c) The Corporation shall be entitled to receive all fees and other revenue arising from the Network operations and be responsible for paying its operating costs. 6.2 Corporation's Employees (a) All staff of the Corporation including the President (collectively "Corporate Employees") shall be hired as employees of the Corporation. Initial Corporate Employees shall include the President and Chief Financial Officer. A performance appraisal process applicable to Corporate Employees will be developed considering best practices utilized in the Region. The salaries and benefits and other employment-related costs of Corporate Employees shall be the responsibility of the Corporation. (b) Subject to the provisions set out in Subsection 7.10) and compliance with the policies applying to the hiring of Corporate Employees, the Corporation, through delegation to the President, is responsible for establishing the duties and responsibilities of each Corporate Employee's job description. When carrying out their duties and responsibilities, Corporate Employees carry out same for and on behalf of the Corporation. 6.3 Services Agreement between the Region and the Corporation In order for the Corporation to carry out its business and affairs, the Corporation will require the Region to provide certain services to the Corporation. To this end, the Corporation and the Region will negotiate and execute a services agreement (the "Corporate Services Agreement") under which Regional employees and/or contractors of the Region (collectively "Regional Staff') will provide the necessary Attachment 12 services to the Corporation. The Corporate Services Agreement shall include, but not be limited to, the following terms and conditions: (a) A description of (i) the services to be provided by a Regional department and/or Regional branch; (ii) the fees and/or allocations of Regional Staff attributable to the Corporation for such services; and (iii) the working relationship between Corporate Employees and Regional Staff; and (b) The authorized signatories in respect of the Corporate Services Agreement. 6.4 President and Secretary (a) The President will be a full time position with the Corporation. (b) The role of the President will be to lead the Corporation, provide leadership on strategic and tactical business objectives, develop on an annual basis a proposed annual business plan (including updating the strategic plan, a business and financial plan and budget (including capital and operating budgets) and, when it is anticipated that there will be funds available for distribution through dividends, a dividend policy) and prepare the Annual Report (in each case for presentation to the Board and consideration and approval by the Board for presentation to the Region by the Board), and hire and manage Corporate Employees. The President will provide regular reports to the Board regarding actual performance in comparison to the Annual Business Plan and any other matters of strategic or business importance coming to his attention and work priorities under the Corporation's Annual Business Plan. (c) The President will develop the Corporation's operating and capital budgets to be included in his proposed Annual Business Plan based upon the Corporation's forecasted work priorities and objectives. (d) Subject to any conditions or restrictions imposed upon the President by the Board or in this Shareholder's Direction, the President will be responsible for all of the following in accordance with and in compliance with the Corporation's Annual Business Plan: (i) negotiating business and commercial arrangements, including but not limited to agreements to co -build with external internet service providers, indefeasible rights of use agreements, construction and/or design -build agreements based on forecasted build requirements; (ii) establishing fee structures; (iii) negotiating individualized pricing options, discounts and/or tariffs with third parties; Attachment 12 (iv) pursuing senior government funding and preparing and submitting funding applications; and (v) hiring and managing the Chief Financial Officer and other Corporate Employees. (vi) The President shall have a signing authority limit to be established by the Board and in any event the President shall have signing authority for items already approved in the Annual Business Plan (as defined below). The President has the authority to establish signing authority limits (within the limits imposed upon the President to conform to the Annual Business Plan) for Corporate Employees. (e) The Secretary of the Corporation should initially be the Regional Solicitor. A replacement Secretary may be elected by the Board following the initial constitution of the full Board. FI1111111 .1 _ of a Q I V 2101M 7.1 Responsibilities of the Board of Directors Subject to this Shareholder's Direction and the OBCA, the Board shall supervise the management of the business and affairs of the Corporation. The Board shall supervise and manage the business and affairs of the Corporation in compliance with and conformance to the Corporation's Annual Business Plan. In particular, the Board, or where delegation is permitted and deemed appropriate by the Board, a committee of the Board, shall: (a) Receive the Corporation's proposed Annual Business Plan, as developed and presented to it by the President, and approve the proposed Annual Business Plan in such form and with such amendments as they determine in accordance with their responsibilities as directors, so long as it is in accordance with the Corporation's mandate and the requirements of this Shareholder's Direction, and provided that it is in accordance with the operating and/or capital budgets and capital and operating spending authority approved by Council in the Region's annual budget process for that Fiscal Year. (b) Present for approval by Council on an annual basis the proposed Annual Business Plan, which must be in conformance with and comply with the requirements of the Corporation's mandate, this Shareholder's Direction, the Region's operating and/or capital budgets and capital and operating spending authorities approved by Council as part of the Region's annual budget process. Once a proposed Annual Business Plan (with such amendments as required by Council) is approved by Council, it shall constitute an Annual Business Plan for the purposes of this Shareholder's Direction. Attachment 12 (c) Appoint the President, approve the President's term of employment, establish performance objectives for the President, monitor the President's success in meeting those objectives, and hold the President accountable for meeting those objectives. (d) In addition to the President, appoint the executive officers of the Corporation. (e) Receive annual updates from the President regarding achievement of goals and objectives in the Corporation's Annual Business Plan based upon performance metrics and whether there are budget variances and/or budget pressures. The Board will ensure that the Corporation acts in accordance with the Corporation's Annual Business Plan. (f) Receive the proposed strategic and financial plans forming part of the proposed Annual Business Plan as developed and presented to it by the President, and approve such plans for presentation to Council, so long as they are in accordance with the Corporation' s mandate and provided that it is in accordance with this Shareholder's Direction and the operation and/or capital budgets and capital and operation spending authority approved by Council in the Region's annual budget process for that Fiscal Year. (g) Review annually the Corporation's mandate and recommendations to changes to the mandate for consideration by Council so long as amendments do not contravene the operating principles set forth in Section 5.5 or the Corporation's Annual Business Plan. (h) Upon the President's recommendation, approve in -year changes to work priorities in the business plan including budget re -profiling, provided that any such approval does not impact the Region' s financial position in a material way and such changes are in conformance with the Corporation's Annual Business Plan. (i) Adopt and maintain a policy with regard to the sale and other disposition of land in conformance with the Annual Business Plan. Q) Adopt and maintain policies with regard to the hiring of Corporate Employees. (k) Develop and approve human resources policies and procedures for the Corporation considering applicable best practices of the Region's policies and procedures with the intention that Corporate Employees are treated in a comparable manner to Regional jobs, in respect of their employment terms and conditions. (1) Develop and approve procurement policies for goods and services designed with the objective of providing good value while providing sufficient flexibility to the Corporation to conduct its business and affairs. Attachment 12 (m) Develop and approve signing authority policies for the President and any other executive officer of the Corporation in conformance with the Annual Business Plan. (n) Adopt financial and risk management strategies for the Corporation. (o) Approve the Audited Financial Statements, the Annual Report and submit the Audited Financial Statements and Annual Report to the Region, as shareholder. (p) Maintain appropriate insurance coverage for the Corporation's business and activities. (q) Ensure that the Corporation's officers and employees act in accordance with this Shareholder's Direction. (r) Provide such annual or special reports to Council as Council may from time to time determine it requires. 7.2 Composition of the Board of Directors (a) The Region has the sole authority to determine and amend the composition of the Board, subject to the provisions in the Corporation's Articles and any articles of amendment or any corporate by-law, or shareholder proceedings executed by the Region. (b) The Board shall be comprised of: (i) A maximum of six board members; (ii) One or two additional initial board members (in addition to the Regional Chair who is serving as incorporator and initial director of the Corporation) will be elected by the Region (as sole shareholder). The two or three initial board members will act as a nomination committee to recommend within 3 months of the date of incorporation of the Corporation a slate of up to six board members (total) for the consideration of the Shareholder, and the slate of six shall include the President of the Corporation; (iii) Of the six nominees to be presented by the nomination committee to the Shareholder for its consideration in connection with the Shareholder's election of the Board of Directors of the Corporation, up to one nominee may be an elected member of Regional Council and up to one nominee may be a member of senior management staff of the Regional Municipality of Durham; (iv) After a review of industry best practices, a skills matrix will be used to target and select the expertise needed on the board. The matrix Attachment 12 would contain expertise for finance/trustee with private CFO experience, legal, telecom industry experience (operator and/or vendor), MUSH sector experience (customer or client experience), and diversity; and (v) Board members must be Canadian citizens and must meet statutory requirements required for qualification as a member of the Board. 7.3 Term of a Member on the Board of Directors (a) For Board members who are Corporate officers: the term will align with the role/position appointed by the Board. (eg. the President will remain a Board member until such time as the Board replaces that President) unless otherwise decided by the Shareholder at any time. (b) For Board members who are elected officials: the term will align with the term of the elected official unless otherwise decided by the Shareholder at any time. (c) For non -elected Region senior management staff (Commissioner or CAO): the term will align with the role/position as designated by the Region unless otherwise decided by the Shareholder at any time. (d) For independent Board members: Staggered terms of no less than two years unless otherwise decided by the Shareholder at any time. 7.4 Vacancies on the Board of Directors The Board shall declare a vacancy if a director is absent from three (3) consecutive board meetings without the approval of the Board as recorded in the minutes of the meetings. 7.5 Conflict of Interest Each director and officer of the Corporation shall inform the Board immediately when he or she has an interest in a matter to be considered by the Board or a committee of the Board and take appropriate action in accordance with the provisions of the Municipal Conflict of Interest Act and the OBCA, and any other Applicable Law or Board policies. 7.6 Remuneration of Directors (a) The remuneration of the directors of the Corporation will be determined by the Region from time to time. The Board has no authority to alter the remuneration or provide any additional remuneration to directors. However, a director may elect to receive no or a reduced remuneration. Attachment 12 (b) Board members who are neither Members of Council nor Regional Staff may receive remuneration of up to $20,000 per annum but remuneration for such Board members cannot exceed this maximum aggregate amount per annum. (c) Members of Council will receive additional remuneration for their service on the Board in the same amounts as Council members who are Chairs of Standing Committees or members of the Police Services Board (per By - Law # 08-2004), which is currently $6,000 per annum. (d) Regional Staff who serve as members of the Board shall receive no additional remuneration beyond their salaries. (e) The Board shall establish an expense reimbursement policy for all Board members that Is consistent with the Region's expense reimbursement policy pertaining to Councillors to provide for the reimbursement of out-of- pocket expenses incurred by Board members while conducting Board business. (f) The Board shall report to the Region the total remuneration and expenses paid for each member of the Board on an annual basis and the Region shall determine whether specific Regional by-laws need to be passed or amended in order to provide for the foregoing remuneration and reimbursement, and, if such by-law or amendments for remuneration or reimbursement policies acceptable to the Region are required, shall promptly pursue to same. 7.7 Meetings of the Board of Directors (a) Meetings of the Board and its committees may be held in camera, at the Board's sole discretion. The Board shall meet at least four (4) times per year. (b) The Board may engage recording clerk services of an outside party which initially will be the Regional Clerk or Regional Solicitor. The recording clerk shall attend all public and in camera portions of meetings. For clarity, the recording clerk is not required to attend briefings, orientation or other training sessions, or team building and planning meetings where no Board decisions are made. (c) Matters requiring the Region' s approval under Sections 8.4 and 8.5 that require a council report shall adhere to the Region's scheduling process and Committee of the Whole and Council meetings schedule. If, in the opinion of the Board, a matter under Sections 8.4 or 8.5 urgently requires Council approval and the matter cannot be delayed by proceeding through the normal scheduling process and committee hearings, then the Board may instruct the President to contact the Regional liaison in order to request an urgent meeting with Council to obtain instructions from the shareholder Attachment 12 without going through the normal scheduling process and committee hearings. The Chair of the Board may, at his discretion, require Corporate Employees who are not members of the Board, other than the recording clerk, in attendance during the in camera portion of the meeting, to leave the meeting during discussion of sensitive personnel issues. Members of the Board who are Corporate Employees may be required to leave the in camera portion of the meeting if they personally are the personnel to be discussed. (d) The Board may establish committees of the Board for any purpose and delegate decision-making to those committees as permitted by Applicable Law except: (i) The Board shall not delegate decision-making to any committee unless all members of that committee are current Board members; and (ii) The Board shall not delegate to a committee the power to commit the Corporation's resources unless the Board has stipulated in its by- laws monetary limits on the corporate resources that may be committed by the committee. 8. SHAREHOLDER MATTERS (WHEN REGIONAL COUNCIL APPROVAL IS REQUIRED) 8.1 Decisions of the Region Each time the Corporation wishes to seek an approval or decision from the Region, as the shareholder of the Corporation, the Corporation shall make a written request for the approval which includes all information necessary for the Region to make an informed decision. The Corporation shall submit its request and supporting Information in a timely manner to the appropriate Regional liaison. Depending upon the nature of the approval sought the Corporation may need to prepare a council report for submission to Council. 8.2 Governance Liaison For matters requiring the Region's approval or other action regarding governance matters set out in Article 7 (Board of Directors), Sections 8.4 and 8.5 (Matters Requiring Shareholder Approval), and Section 11.2 (Amendments), the designated Regional liaison is the Regional CAO. 8.3 Financial Liaison For matters set out in Article 9 (Reporting) and Article 10 (Financial Performance), the designated Regional liaison is the Regional Treasurer, who is also the Authorized Region Signatory for matters set out in Subsections 8.5 (d), (e) and (f) which have obtained the required Region approval. Attachment 12 8.4 Matters Requiring Shareholder Approval under the OBCA or Otherwise The Corporation shall not take any of the following actions without the prior written approval of its shareholder, the Region: (a) amend its Articles; (b) amalgamate with another corporation, apply to continue as a body corporate under the laws of another jurisdiction, merge, consolidate or reorganize, or approve or effect any plan of arrangement, in each case whether statutory or otherwise; (c) take or institute proceedings for any winding up, arrangement, reorganization or dissolution; (d) create new classes of shares or reorganize, consolidate, subdivide or otherwise change its outstanding securities or issue common shares and/or preference shares; (e) sell or otherwise dispose of, by conveyance, transfer, lease, sale or leaseback, or other transaction, or grant security, charges or mortgages upon the assets of the Corporation in respect of all, substantially all or a material amount or value of its assets or undertaking or in any transaction or series of transactions at variance with or not provided for in the Corporation's Annual Business Plan; (f) enter into any other transaction or take any other action that requires shareholder approval pursuant to the OBCA; or (g) take any action or make any decision which is at variance with or does not comply with the Corporation's Annual Business Plan. The Board may recommend to Council the making, amendment, or repeal any of its by-laws and the changes take effect at such time of the Region's approval as Shareholder. Such changes shall be submitted to the Region, as Shareholder, for Council's approval. 8.5 Other Matters Requiring the Region's Approval In addition to the matters set out in Section 8.4, the Corporation shall not, without the prior approval of Council: (a) Exceed the Corporation's capital or operating spending authority that was approved by Council in the Corporation's Annual Business Plan; (b) Sell, transfer or otherwise dispose or encumber all, substantially all or a material amount or value of the Corporation's assets or undertaking or Attachment 12 undertake any transaction or series of transactions which are at variance with or are not provided for in the Corporation's Annual Business Plan; (c) Issue or transfer shares to a third party entity; (d) Enter into any business arrangements which impose financial obligations on the Region or which are at variance with or are not provided for in the Corporation's Annual Business Plan; (e) Make representations or promises of any financial incentives or similar inducements that are binding on the Region; (f) Enter into a loan arrangement that may have a negative impact on the Region's credit rating in the opinion of the Regional Treasurer or which are at variance with or not provided for in the Corporation's Annual Business Plan; (g) Enter into any loan agreement, guarantee or grant any security or convey any assets that are not provided for in or do not conform to the Corporation's Annual Business Plan; (h) Enter into any contract or commitment involving monetary obligations which may exceed the overall amount provided or in the Corporation's Annual Business Plan; or (i) Acquire or invest in a business not provided for in or at variance with the Corporation's Annual Business Plan. 9. REPORTING 9.1 Business Plan The Board shall annually approve Corporation's proposed Annual Business Plan to be presented to Council for approval by Council which will include, in respect of the period covered by such business plan the following. Once approved by Council the proposed Annual Business Plan shall constitute the Annual Business Plan for the period covered thereby: (a) The key objectives, priorities, and business initiatives that the Corporation will undertake over the next three (3) year period and any amendments to the strategic plan; (b) A financial and business plan and the metrics for monitoring accomplishments and financial performance including liquidity and debt coverage; (c) Operating and capital budgets in conformance with the Region -approved operating and capital budget for the next Fiscal Year and an operating and Attachment 12 capital budget projection for each subsequent Fiscal Year covered by the Corporation's Annual Business Plan, including the resources necessary to implement the Corporation's Annual Business Plans and any financial impact to the Region; (d) Pro forma Financial Statements; (e) Any material variances in the projected ability of any business activity to meet or continue to meet the Corporation's objectives; (f) Any material variances from the previous Annual Business Plans; and (g) Any additional information that the Regional Treasurer may reasonably specify from time to time. 9.2 Region's Annual Budget Process In accordance with the Region's annual budget process, the Corporation shall prepare and deliver to the Region the Corporation's annual operating and capital budgets for that Fiscal Year and the proposed Annual Business Plan for the Region's approval. The Corporation shall not exceed, in any Fiscal Year, the Corporation's capital or operating spending authority that was approved by the Region in the annual budget process for that Fiscal Year and in the Annual Business Plan. 9.3 Financial Impact on the Region Prior to consideration of the proposed Annual Business Plan by the Board, the President shall brief the Regional Treasurer on the draft proposed Annual Business Plan and any potential financial consequences for the Region. 9.4 Access to Records The duly appointed representatives of the Region (as approved by Council from time to time) may make reasonable requests to the Board for access to the Corporation's books and records during normal business hours. Such representatives shall treat all information of the Corporation with the same level of care and confidentiality as any confidential information of the Region. The Regional CAO, the Regional Treasurer, the Regional Solicitor and the Regional Auditor are deemed duly appointed representatives of the Region for matters in respect of this Section 9.4. 9.5 Audit The Corporation shall be subject to internal audits/reviews at the request of the President, the Board or the Shareholder. Attachment 12 The Corporation's consolidated and unconsolidated Financial Statements shall be audited annually. The initial auditor of the Corporation is Deloitte Canada. In addition to the foregoing: (a) The Corporation shall establish and maintain a reasonable accounting system that enables the Corporation to readily identify its assets, expenses, costs of goods, and use of funds. (b) The Region's Internal Audit Division (IAD) will provide the audit and consulting services to the Corporation at the Corporation's discretion in accordance with the Internal Audit policy of the Region, subject to policy changes by the Board. 9.6 Annual Report The Board shall approve the audited Financial Statements and submit an Annual Report to the Regional Treasurer as the designated representative of the Region within 6 months after the end of each Fiscal Year. The Annual Report shall include.- (a) nclude:(a) Audited Financial Statements; (b) Accomplishments during the Fiscal Year together with a review and report of actual performance measured against the Annual Business Plan along with explanations, notes and information as is required to explain and account for any variances between the actual results and the Corporation's Annual Business Plan in effect for that Fiscal Year; (c) The proposed Annual Business Plan approved by the Board for presentation to Council for Council's consideration and approval for the next period; and (d) If there is to be a proposed change to any part of the Corporation's strategic plan or dividend policy as part of any proposed Annual Business Plan, the report will include an analysis supporting such proposed change. 9.7 Annual and Special Update for Council In addition to the requirement of the OBCA to hold an annual general meeting, the Corporation shall provide an annual update and report for Council of its activities for the previous Fiscal Year. The Corporation shall also update and report to Council promptly on any issue or occurrence which could give rise to a material adverse impact on the Corporation and on the commencement of any significant litigation or proceedings for or against the Corporation that could materially impact the financial status of the Corporation, and shall otherwise provide such annual or special reports from time to time as are required by the Region or Council. Attachment 12 10. FINANCIAL PERFORMANCE 10.1 Debt Financing The Corporation shall manage its corporate financing in a prudent manner, consistent with best practices for comparable telecommunications businesses, with due regard for liquidity and protection of the Region's investment and always in conformance with the Annual Business Plan. 10.2 Dividend Policy The Board will exercise its discretion in declaring dividends consistent with any dividend policy for the Corporation in effect from time to time which has been approved by the Region as part of an Annual Business Plan. 11. GENERAL 11.1 Interpretation Wherever there is a reference to a Regional official, that reference includes any individual acting in that capacity, or any successor official appointed or designated as being responsible for the service area included in that office. 11.2 Amendments The Region, in its sole discretion, may amend this Shareholder's Direction from time to time. The Region will provide a written amendment or the amended Shareholder's Direction, as the case may be, to the Board. The amendment will come into effect on a date specified by the Region. 11.3 Time of the Essence Time shall be of the essence in this Shareholder's Direction. 11.4 This agreement is intended to be a Unanimous Shareholders Declaration under Section 108 of the Business Corporations Act (Ontario) to the extent that it restricts in whole or in part the powers of the directors of the Corporation, including, without limitation, its restrictions on the management or supervising the management of the business and affairs of the Corporation. DATED the day of 2021. THE REGIONAL MUNICIPALITY OF DURHAM Per: Attachment 12 Name: Title: Attachment 13 RESOLUTION OF THE SHAREHOLDER OF DURHAM ONENET INC. (the "Corporation") RESOLVED that the Board of Directors of the Corporation is increased from one (1) to two (2) directors and Elaine Baxter-Trahair, Chief Administrative Officer, is elected as a director to serve with John Henry, Regional Chair, as the two (2) directors of the Corporation. The foregoing resolution is, by the signature below of the sole shareholder of the Corporation entitled to vote on such resolution, passed pursuant to the provisions of Section 104(1) of the Business Corporations Act (Ontario). DATED as of the day of , 2021. THE REGIONAL MUNICIPALITY OF DURHAM Per: Office of the Clerk 4432 George St, Box 100 SOUTH Sydenham ON KOH 2T0 %0%1441 F R Q N T E N AC 613-376-3027 Ext 2222 amaddocks .southfrontenac.net December 20, 2021 Honourable Doug Ford Premier of Ontario Legislative Building, Queen's Park Toronto ON M7A 1A1 Dear Premier: Re: Joint & Several Liability Please be advised that the Council of the Corporation of the Township of South Frontenac passed the following resolution at their regular meeting held December 7, 2021. Moved by Councillor Sutherland Seconded by Councillor McDougall That the Council of the Corporation of the Township of South Frontenac reaffirm its concern from October 2019 regarding joint and several liability and again request a review of the law to ensure a fair and reasonable way to ensure those who suffer losses are made whole while preventing the further scaling back of public services owing to the excessive insurance costs that result from joint and several liability. And that this resolution be circulated to AMO and all other Ontario Municipalities. Carried. South Frontenac along with other municipalities and the Association of Municipalities of Ontario (AMO) have lobbied for a fair, reasonable and responsible way to ensure those who suffer losses are made whole again without asking municipalities to bear that burden alone. We understand that this mat\H LT -I Q3HEE IYLH❑ DM ❑I+Q]H3 DXE H YH concerns about the inequity of the current system. We look forward to any updates on this issue. Yours truly Angela Maddocks Clerk c.c. AMO Ontario Municipalities www.southfrontenac.net Natural, Vibrant and GroAng 4rogressive Rural Leader. SOUTH %0%0* \,%7%L FRONTENAC December 20, 2021 Honourable Doug Ford Premier of Ontario Legislative Building, Queen's Park Toronto ON M7A 1A1 Dear Premier: Re: Daylight Savings Time Office of the Clerk 4432 George St, Box 100 Sydenham ON, KOH 2T0 613-376-3027 Ext 2222 amaddocks(a-).southfrontenac. net Please be advised that the Council of the Corporation of the Township of South Frontenac passed the following resolution at their regular meeting held November 16, 2021. Moved by Mayor Vandewal Seconded by Councillor Sleeth That the Council of the Corporation of the Township of South Frontenac support Bill 214 passed by the Legislative Assembly of Ontario in 2020 to make Daylight Saving Time standard time. And that this resolution be forwarded to the Premier of Ontario, the Premier of Quebec, and all Ontario Municipalities, asking that further discussions with Quebec and New York State take place in order for the Eastern Time Zone to remain at standard time and to discontinue Daylight Savings Time in this zone. Carried. South Frontenac Council is aware that the Attorney General will only enact the bill in coordination with the Province of Quebec and New York State. We strongly encourage other Ontario municipalities to support this initiative to discontinue the changing of the clocks twice a year. We look forward to receiving any updates on this matter. Yours truly Angela Maddocks Clerk c.c. Francois Legault, Premier of Quebec www.southfrontenac.net Natural, Vibrant and GroAng 4rogressive Rural Leader. Patenaude, Lindsey From: Julie Reid <deputyclerk@arran-elderslie.ca> Sent: Thursday, December 23, 2021 7:47 AM To: ClerksExternal Email Cc: david.piccinico@pc.ola.org Subject: Letter from the MMWTWG regarding Wind Turbine Failures Attachments: Attachement_Details on Wind Turbine Failures.pdf You don't often get email from deputyclerk@arran-elderslie.ca. Learn why this is important EXTERNAL MultilfMunicipaMindLTurbine3Norking3l3roupo TOMCALLWOOD,[EOUNOLLOR,136REYNHIGHLAN DS,K:HAIRM STEVE ADAMS, COUNCILLOR, BROCKTON, VICE -CHAIR 1925 BRUCE ROAD 10, Box 70, CHESLEY, ON NOG 1 LO 519-363-3039 FAX: 519-363-2203 deputyclerk@arran-elderslie.ca December 14, 2021 Town of Clarington June Gallagher clerks@clarington. net RE: Wind Turbine Failures Dear Mayor and Council: I am writing to share information compiled by the Multi -Municipal Wind Turbine Group (MMWTWG) on some recent catastrophic failures of wind turbines. Because you are a municipality with an operating wind turbine project, we expect this information will be of interest to you. The MMWTWG was initially created in 2009 by municipalities in Bruce, Grey and Huron Counties to share information on wind turbine projects being proposed or operating in our municipalities. The organization is a joint committee with elected and citizen representatives from the member municipalities. Since its formation, we have been monitoring the operation of wind turbines and advocating on behalf of our residents adversely affected by the wind turbines. 3 [[E❑❑ The group has seen the number of catastrophic wind turbine failures increase, and is deeply concerned about the associated implications. At the same time, there has been no public response from the provincial government that indicates these potentially serious incidents are being investigated either in the context of public and/or workplace safety. As a result, we have compiled the attached overview of a range of failures based on statements from project operators, pictures and other available information. This assessment of these events points to a variety of causes. Based on these observations, the attached document also outlines a list of recommendations for action by the provincial government. We suggest that your Council review these attached summaries to see how they might apply to the wind turbine project(s) in your municipality. It may be possible for the municipality to review the situations with the owner of each project to confirm that appropriate activities are underway to ensure public safety. If you agree with the recommendations for action by the provincial government, we ask that you communicate your support to David Piccini, Ontario Minister of Environment, Conservation and Parks. When these projects were approved and built, provincial regulations limited municipal input into the projects and the supervision of their construction. This self-regulation process led to some serious problems for the municipalities in our role of protecting the health of our citizens. Now that further gaps in this process are becoming evident, the province needs to take responsibility for addressing the mistakes that were made. Yours truly, Tom Allwood, Chair, Multi -Municipal Wind Turbine Working Group Councillor, Municipality of Grey Highlands C.C. Honourable David Piccini, Minister of Environment, Conservation and Parks, minister. mecp@ontario.ca Honourable Monte McNaughton, Minister of Labour, Training and Skills Development, minister. mltsd@ontario.ca Hon. David Piccini, MPP, Durham - david.piccinico@pc.ola.org Wind Turbine Failures Based on the number of catastrophic wind turbine failures, the Multi Municipal Wind Turbine Working Group (MMWTWG)l is deeply concerned about the associated implications. While the wind power industry reports that each is an isolated incident, there are now too many incidents for this response to be credible. At least 10 known turbines failures have happened in Ontario since 2007. Each of these resulted in significant portions of blades or the tower hitting the ground at some distance from the turbine base. At the same time, there has been no public response from the provincial government that indicates these potentially serious incidents are being investigated either in the context of public and/or workplace safety. To date, there has been no information shared with MMWTWG member municipalities. As a result, we have been working with several people that have technical experience with industrial applications of power and rotating equipment. We have developed our own assessment of the failures based on statements from project operators, pictures and other available information. This assessment of the following events points to a number of different causes: • Bow River 1. Establish a formal public process for investigations of wind turbine failures so that the cause can be firmly determined. These would involve third -party independent engineers starting with initial inspection procedures through to the public release of the final report; 2. Complete comprehensive inspections of existing projects to identify any project that shows signs of similar weaknesses; 3. Establish requirements for on -board predictive maintenance equipment for operating wind turbines to allow early identification of problems and establish protocols for information transfer to the MECP for review and sharing with the host municipality. 4. Review the emergency response procedures submitted by the proponents of wind turbine projects as part of the approval process to ensure that the plans are current and responsive to the types of failures being experienced; and 5. Increase the setbacks from property lines to a minimum of tower height plus blade length for new towers or repowering of existing sites to at least reflect the impact of a tower collapse while recognizing additional distances would be required to protect against ice throw and debris scatter like that seen in the Huron Wind failure where debris with the dimensions of a car were found 2.5 times the height of the tower plus blade length. We suggest that Councils review these attached summaries to consider how they apply to the wind turbine project(s) in your municipality. It may be possible for the municipality to review the situations with the owner of each project to confirm that appropriate activities are underway to ensure public safety. If you agree with the recommendations for action by the provincial government we ask that you communicate your support to David Piccini, Ontario Minister of Environment, Conservation and Parks. When these projects were approved and built, provincial regulations limited municipal input into the projects and the supervision of their construction. This self-regulation process led to some serious problems for the municipalities. Now that further gaps in this process are becoming evident, the province needs to take responsibility for addressing the mistakes that were made. 3 [[E❑❑ Attachment 1: Bow Lake, Algoma Region, Ontario Project Details: Owners: Batchewana First Nation `p •� 7i r} '•,. yr - r y ti - Attachment 2: Skyway 8, Grey County, Ontario Project Details: Owner: Capstone Infrastructure Location: South west of Dundalk Capacity: 9.5 MW Commissioned: August 2014 Equipment 3 - Vestas V100- 1.8 MW 2 - Vestas V100- 2.0 MW Height Assessment of Failure: This turbine was retrofitted approximately 3 months prior to the failure with a secondary rotor of three curved blades that fastened to the hub between the existing blades. This experimental device was not part of the original design and was added to increase power output. The failure resulted in the separation of one of the secondary blades and one of the existing blades. Although the exact sequence of the failure is not known, the most likely scenario is that the experimental blade partly separated, impacting the main blade which then failed. MECP approved the change but there is no public information confirming that the turbine could handle the additional static and dynamic loads imposed by the secondary rotor. 7 Learnings: This turbine was located only 195m from the road, Grey Rd. 8. The road closure that was immediately put in place for public safety confirms that existing setback requirements are insufficient. The failure raises many questions concerning how this project was executed and the engineering safety margins for the original wind turbine design. Attachment 3: Raleigh Wind, Chatham -Kent Project Details: Owner: 2018 v r Attachment 4: Sumac Ridge, Kawartha Lakes Project Details: Owner: 2016: wpd 2021: Capstone Infrastructure Location: Southwest of Peterborough Capacity: 10.5 MW Commissioned: November, 2017 Equipment: 5 - Senvion MM92 2.05 MW Height Attachment 5: Kingsbridge 1, Ashfield-Colborne-Wawanosh Project Details: Owner: Capital Power Location: North of Goderich Capacity: 40 MW Commissioned: 2006 Equipment: Initially 21 Attachment 6: Huron Wind, Bruce County Project Details: Owners: TC Energy OMERS Location: North of Kincardine Capacity: 9.0 MW Operational: November 2002 Equipment Attachment 7: Kent Hills, New Brunswick Project Details: Owner: Trans Alta Renewables Location: Southwest of Moncton, NB Site shared with ATV/snowmobile trails Capacity: 167 MW Commissioned in Phases: Dec 2008 Attachment 8: History of Turbine Failures in Ontario The following table documents the known equipment failures at Ontario wind turbine projects. that resulted in wind turbine blades hitting the ground so that members of the public may have been harmed if present in locations outside any protective exclusion zone. While the industry response to each failure is that the situation is unique and an exception, the table confirms that this is not the case. # Date Project Type Equipment Age at Failure 1 April 2007 Port Burwell Blade Failure GE 1.5 11 months 2 January 2008 Prince Wind Blade Failure GE 1.5 2.1 years 3 April 2013 Kingsbridge 1 Fire Vestas V80 7 years 4 August 2015 Goshen Blade Failure GE 1.62 6 months 5 April 2017 Bornish Blade Failure GE 1.62 3 years 6 January 2018 Raleigh Tower Collapse GE 1.62 7 years 7 May 2018 Huron Wind Blade Failure Vestas V80 15.4 years 8 April 2019 Sumac Ridge Blade Failure Senvion MM92 1.3 years 9 June 2021 Skyway 8 Blade Failure Vestas V100 6.9 years* 10 August 2021 Bow Lake Tower Collapse GE 1.62 6 years *100 days after secondary blades installed. These situations are similar to the operating experience with wind turbines in other jurisdictions. It suggests that the positioning of wind turbines relative to other adjacent activities needs to anticipate the potential for failure either the blades or the tower and other dangers such as ice throws or fires. Analysis of these failures indicates that the current Ontario setback of blade length plus 10 metres is not sufficient to protect the wider public. The failures also indicate that there needs to be a program of ongoing monitoring of operation of these wind turbines with public reporting of the results of inspections and remedial actions ordered to address faults identified. 3 rn Bradford Gwillimbury �� A Growing Tradition December 22, 2021 Town of Bradford West Gwillimbury 100 Dissette St., Unit 4 P.O. Box 100, Bradford, Ontario, L3Z 2A7 Telephone: 905-775-5366 Fax: 905-775-0153 Honourable Doug Ford, Premier of Ontario Legislative Building Queen's Park Toronto, ON M7A 1A1 Dear Honourable Doug Ford, Re: Motion Against Quebeclig Bill 21 VIA EMAIL At its Regular Meeting of Council held on December 21St, 2021, the Town of Bradford West Gwillimbury Council approved the following resolution regarding the Province of Quebecig Bill 21. Resolution 2021-424 Scott/Sandhu ❑❑❑F--i❑iiiiXFEhFA/7L(CD-XQ'DLCOrGIfrLPLQD /1-D DQvl;6)EQEsector workers by directly infringing on their freedom of religion and freedom of expression rights as enshrined into law by the Canadian Charter of Rights and Freedoms,- WHEREAS reedoms, WHEREAS Bradford West Gwillimbury is a growing community that is proud of its diversity and diligently working to tear down barriers, advance anti -racism work and foster an inclusive community; WHEREAS municipalities across Ontario are passing motions condemning Bill 211- AND 1; AND WHEREAS the Ontario Legislature unanimously passed a motion in 2019 stating.- -2 tating.2 QI&1RDQG_LWgovernment shall oppose any law that would seek to restrict or limit the religious freedoms of our citizens, and, that Ontario's Legislature affirms that we value our diversity and assert that we shall promote and protect free expression and the rights of +Q VPMP LQR1W1V- FRQ _V KD -VV IR'[III L❑KVVDGX3I[i VT - THEREFORE BE IT RESOLVED that the Town of Bradford West Gwillimbury Council declares its opposition to Bill 21 and supports efforts to see this discriminatory law overturned, and 3 rn THAT a copy of this resolution be forwarded to the Honourable Doug Ford, Premier of Ontario, the Honourable Francois Legault, Premier of Quebec, the Honourable Caroline Mulroney, MPP York-Simcoe, Scot Davidson, MP York-Simcoe, the Association of Municipalities of Ontario, and all other municipalities in Ontario. CARRIED. Thank you for your consideration of this request. Regards, Tara Reynolds Deputy Clerk, Town of Bradford West Gwillimbury (905) 775-5366 Ext 1104 treynolds(a-)-townofbwg.com CC: Hon. Francois Legault, Premier of Quebec Hon. Caroline Mulroney, MPP York-Simcoe Scot Davidson, MP York-Simcoe The Association of Municipalities of Ontario All Municipalities in Ontario 3 Ell[][] Patenaude, Lindsey From: Minister, MECP (MECP) <Minister.MECP@ontario.ca> Sent: Thursday, December 23, 2021 1:42 PM To: Gallagher, June Subject: Minister's Annual Report on Drinking Water 2021 and 2020-21 Chief Drinking Water Inspector Annual Report / Le rapport annuel 2021 du ministre sur 1'eau potable et le rapport annuel 2020-21 de l'inspectrice en chef de 1'eau potable You don't often get email from minister.mecp@ontario.ca. Learn why this is important EXTERNAL As Minister of the Environment, Conservation and Parks, I'm pleased to release my annual report on drinking water and confirm that Ontario's drinking water continues to be among the best protected in the world. The 2020-21 data shows that 99.9 per cent of more than 505,000 test results from municipal residential drinking water systems met Ontario's stringent drinking water quality standards. Today, the ministry also released the Chief Drinking Water Inspector's Annual Report, which provides an overview of the ministry's progress during 2020-21 and includes in-depth information on the performance of Ontario's drinking water systems and licensed laboratories. You can also visit ontario.ca to see the supporting drinking water quality and enforcement data. These reports demonstrate the positive results of Ontario's ongoing actions to help ensure drinking water sources remain secure and reliable. Effective drinking water protection in all jurisdictions and corners of the province is only possible through collaborative effort. I am very proud of all the work the Ministry of the Environment, Conservation and Parks staff are doing with conservation authorities, municipalities, Indigenous communities, the Ontario Clean Water Agency, water associations and the Walkerton Clean Water Centre to keep our drinking water clean and safe, and I thank our partners for their many efforts. The people of Ontario value safe water to drink, clean air to breathe and well -protected lands and greenspaces. The Government of Ontario is committed to protecting these important environmental resources today and for generations to come. Sincerely, David Piccini Minister of the Environment, Conservation and Parks En tant que ministre de I'Environnement, de la Protection de la nature et des Pares, f ai le plaisir de publier mon rapport annuel sur I'eau potable et de confirmer que 1'eau potable de I'Ontario continue d'etre I'une des mieux protegees au monde. Les donnees de 2020-2021 montrent que 99,9 pour cent des quelque 505 000 resultats d'analyse de I'eau potable provenant des reseaux d'eau potable residentiels municipaux repondaient aux normes strictes de I'Ontario en matiere de qualite de 1'eau potable. 3 [[E❑❑ Aujourd'hui, le ministere a egalement publie le rapport annuel de I'inspectrice en chef de I'eau potable, qui donne un aperqu des progres realises par le ministere en 2020-2021 et contient des renseignements detailles sur les resultats d'analyse obtenus par les reseaux d'eau potable de I'Ontario et les laboratoires autorises. Vous pouvez egalement visiter ontario.ca pour prendre connaissance des donnees iustificatives concernant la gualite de I'eau potable et I'application des reglements. Ces rapports demontrent les resultats positifs decoulant des mesures continues prises par I'Ontario pour veiller a ce que les sources d'eau potable demeurent sures et fiables. Une protection efficace de I'eau potable dans toutes les juridictions et 1'ensemble de la province n'est possible que grace a un effort de collaboration. Je suis tres fier de tout Ie travail que le personnel du ministere de I'Environnement, de la Protection de la nature et des Pares a realise de concert avec les offices de protection de la nature, les municipalites, les collectivites autochtones, I'Agence ontarienne des eaux, les associations de I'eau et le Centre de Walkerton pour I'assainissement de I'eau pour maintenir notre eau potable saine et salubre, et je remercie egalement nos partenaires pour leurs nombreux efforts. La population de I'Ontario accorde de ('importance a I'eau potable qu'elle consomme, a I'air pur qu'elle respire et aux terres et espaces verts bien proteges. Le gouvernement de I'Ontario s'est engage a proteger ces importantes ressources environnementales aujourd'hui et pour les generations a venir. Cordialement, David Piccini Ministre de I'Environnement, de la Protection de la nature et des Pares Patenaude, Lindsey From: Newcastles Of The World <newcastlesoftheworld@gmail.com> Sent: Monday, December 20, 2021 9:03 AM To: Newcastles Of The World Subject: NEWCASTLES OF THE WORLD EXTERNAL Dear friends in Newcastle, Ontario Greetings from Newcastles of the World. On the link below you can see our latest newsletter, which we hope you will enjoy — 14 pages of news, features and photos from "Newcastles" around the world. Best wishes to you all for Christmas and for 2022. https://newcastlesoftheworld.com/2021/12/18/latest-news-from-newcastles-of-the-world/ https://I n kd . i n/dv-D ET4Z David Faulkner and Zelie Guerin Newcastles of the World Secretariat, Newcastle upon Kingdom newcastlesoftheworld@clmail.com https://newcastlesoftheworld.com/ 3 CTI Tyne, United Patenaude, Lindsey From: Linda Gasser <gasserlinda@gmail.com> Sent: Wednesday, December 22, 2021 9:03 AM To: ClerksExternal Email Subject: Fwd: Copy of my PowerPoint to Durham Council, Agenda Item 6.3 re Dec. & staff memo re Q 1 and Q 2 Durham Memos re Dioxins & Furans sampling reporting Attachments: 2021 Dec 22 Delegation to Durham Council AMESA Quarterly Reporting.pdf EXTERNAL Good[@nnorning:E IC4vouldlbppreciateUfWoul tould3)leasel@ncluded[InyMelegation[IoMurham[Eouncil3oday,lbn[the3opiclbf[AMESA,EbnlyourM next[:Eouncil[Mnformation[Fackage.0 Thanks1bndRegards.0 LindaMasserM rwardedHMessage Subject:Eopynbfgny[)owerPoint3oMurhamMouncil,[Agenda3tem[E.3MeMec.[&Igtaff2nemoCgeMlElInd[l[2Murham[d MemosCge[Dioxinsl&[Furans[gampling[geporting0 Date:M/ed,[22Mec[2021®8:40:541M0500M From:Elinda[GasserRgasserlinda@gmail.com>0 To:Nfoster,Rafoster@clarington.net>,[ganderson[?Xganderson@clarington.net>,3neal@clarington.net,[Ucarter0 <dcarter@oshawa.ca>,[bchapman,Rbchapman@oshawa.ca>,Igkerr[?Xrkerr@oshawa.ca>,©ohn[Nea10 <ineaI@oshawa.ca>,[1marim pietriRtmarimpietri@oshawa.ca>,[bnicholsonabnicholson@oshawa.ca>,Mnnayor0 <mayor@whitby.ca>,[MeahycR lea hyc@whitby.ca>,MnuIca hyr,Rmu Ica hyr@whitby.ca>,MoyeRroye@whitby.ca>,M yamadas[R�yamadas@whitby.ca>,Cghaun.collierRshaun.collier@aiax.ca>,E'marilyn.crawford",[N <marilyn.crawford@aiax.ca>,4oanne.dies[:Nloanne.dies@alax.ca>,C terling.lee[Nksterling. lee@aiax.ca>,RnayorE <mayor@pickering.ca>,[kashe,[Nkkashe@pickering.ca>,[lbmcleanRbmclean@pickering.ca>,Ripickles,ld <dpickles@pickering.ca>'MbartonRdbarton@town.uxbridge.on.ca>,[ghighet,[:�ghighet@town. uxbridge.on.ca>11N tsmith[Nasmith@townshipofbrock. ca>,[bdrew[R�bdrew@scugog.ca>,[9vwotten,Rwwotten@scugog.ca>,Dohn1d Henry1NJohn.henry@durham.ca>'MegionalAVRRegionalAV@durham.ca>,Dohn.Grant@Brock.cald CC:®usan15iopisRsusan.siopis@durham.ca>,Mioseph[Anello,[&gioseph.aneIIo@durham.ca>,19hooperM <rhooper@clarington.net>,4iones,Riiones@clarington.net>,Ettraill[&ctraill@clarington.net>,[gnzwart,[N <mzwart@clarington.net>,4omeara,Riomeara@durham region .com>,[bditor[&editor@oshawaexpress.ca>,[N rszekely,[&rszekely@durhamregion.com>,[kgilliganRkgilligan@durhamregion.com>,[lkelly,M <tkelly@durhamregion.com>,gnfo[ info@oronoweeklytimes.com>,Murke,[AmyRaburke@clarington.net>,M Langmaid,[FayeRflangmaid@clarington.net>,[�Nindle,[RyanRRWindle@clarington.net>,3ason.hunt@durham.ca,ld E. BaxterffrahairRElaine.BaxterH7frahair@durham.ca> GoodPhorning: 0 AttachedR gibopyEflffiyidelegationoresentationfemE.3Entbday'sRegional Eouncillgenda. ED 3 [[E❑❑ ®® 21 Delegation to Durham Council Dec.8 Siopis/Anello Memo re DYEC AMESA LTSS quarterly Reporting -Dioxins & Furans Linda Gasser December 22, 2021 C � Six years after start up Inconsistent and evolving staff narrative ❑Works Comm indicated reports not intended to be technical, yet described in Sept. 17. 2021 CIP as: Memorandum and Quarterly Technical Report from S. Siopis, Commissioner, Works MECP is the regulator focused on compliance, From: Robert Kyle Sent: May -24-16 5:56 PM To: Gioseph Anello Cc: Garry Cubitt; Cliff Curtis; Ken Gorman; Mirka Januszkiewicz Subject: DYEC Importance: High - ■,�: �: �:�■111111111: Bill 559oil 11mill :191 111 ■I1. III1; 1[e I:�■I�II11� ❑ Hi GiO. Thx for sharing with me the alarming news that the recent stack emission test results for dioxins and furans of boiler 1 of DYEC exceeds the acceptable level by a factor of almost 12 (assuming I heard you correctly). As you know, this is not an isolated incident. Moreover, sustained excessive emissions of dioxins and furans are a potential human health hazard, primarily by entering the food chain. I am surprised that the MOECC does not intend to take any regulatory action at this time and otherwise the affected boiler is not shut down until a root cause analysis is performed and corrective action taken to prevent this from re -occurring. I would appreciate receiving in writing what course of action the main actors i.e., Covanta, MOECC, yourselves plan to take to address this very concerning situation. As these actions are carried out, I recommend that you be as open, inclusive, and transparent as possible. C � Swiss citizens learning about dioxins contamination ZOct. 2021 https://www.eu ronews.com/green/2021/10/17/la usa n n e -d iscovers-soi 1 -has - bee n-pol I ute -wit - angerous-c emica s- or -more -t an -years ❑the earth waspolluted with dioxins from a waste incinerator from 1958 to 1982, when new environmental norms were introduced. [I [I IIIIEIIIIEUIEEII Ell OM00 11 [IM0000EKDEEIII [H111001111 https://lenews.ch/2021/10/14/dioxin-pollution-in-lausanne-sparks- concerns-in-ot' ' er-swiss-regions ❑Based on investigations so far it appears that the pollution in Lausanne camefrom the exhaust of the old Vallon waste incineration plant situated east of Lausanne. The plant was om0001:Lom00000 ❑Will Chair Henry and Council doom Durham to the same fate? ❑There is NO safe level of dioxins. They are toxic and persistent. 3 ®❑❑ 8 Evidence about health effects of dioxins brought to you over years - below see more recent examples ❑ 0 X6U HCHDBZmCU 7 EDIA/J HCHEDBRCDCU I I FFWR EEII LRdLLAPln addition to health effects of direct parental exposures on the offspring, more data are accumulating on health consequences of ancestral exposures in future generations. Understanding of the biolo 'cal mechanism underlying non -genetic transgenerational inheritance of toxic ef�ects have promoted the research of Durham needs a Chief Empathy Officer. Council must act NOW to protect Durham families ❑ Your staff focused on compliance. YOUR job is to protect people. ❑ YOU have an obligation to ensure your staff report ALL monitoring data, including elevated results promptly. ❑ Five years ago former Works Comm. Wrote in June 2016 in Report WR -8 ❑❑ .the Owners expect that after further investigation the AMESA system will be used to monitor Dioxins and Furans between the scheduled stack tests. This will provide for an additional mechanism to better protect IHSH❑(F= ❑ Council must direct staff to provide a copy of any contract with Covanta around any aspect of AMESA sampling program. Review ASAP and determine options going forward. ❑ Council must require staff to produce copy of AMESA Monitoring Plan and Patenaude, Lindsey From: wendy-ron wendy-ron <wendy-ron@sympatico.ca> Sent: Thursday, December 23, 2021 11:15 AM To: ClerksExternal Email Subject: For Clarington CIP: Delegation PowerPoint from W Bracken to Regional Council December 22 2021 Attached Attachments: 2021 Dec 22 Delegation of W Bracken to Durham Regional Council on Works Memorandum dated December 16 2021.pdf; 2021 Dec 22 Delegation of W Bracken to Durham Regional Council on Works Memorandum dated December 16 2021.pptx EXTERNAL Good morning, Please find the PowerPoint attached (in two formats) for the delegation I did at Durham Regional Council yesterday afternoon. Please include it in the Clarington CIP for today. Thank you and wishing you a nice holiday, Wendy Bracken 1 3 [[E❑❑ Delegation of W Bracken to Durham Regional Council December 22nd, 2021 December 8th Works Department Memorandum Re Works Committee AMESA Sampling/Reporting issues must be fixed. C Underlying monthly AMESA monitoring documents, including laboratory reports and AMESA flow document (sample volume) reports, signed by experts with necessary credentials must be provided. EASY FIX: Attach these documents (which Durham can access) to the quarterly reports. C Data validation protocol must be provided. EASY FIX: Provide the data validation protocol to the public. Any invalidation of data must be accounted for. C Samplin.& methodology, including what parts recovered for dioxins/furans, needs to be clearly specified for the public. Reference documents must be provided (AMESA Technical Manual, AMESA Trap Replacement SOP, AMESA workplan(s) and Ministry approval of such plans must be provided. EASY FIX: Information Durham should already have. Simply provide it. C AMESA monthly data for years 2015 to 2019 exists and must be made available to the public. EASY FIX: Durham can access this information and provide it. The data is the data. C Durham should be receiving AMESA monthly lab results directly from lab for proper oversight instead of reports only going to operator Covanta. EASY FIX: Request to Operator Covanta to simply be copied on email from lab containing monthly lab results C Rolling average is inappropriate for reporting monthly AMESA data and as parameter to trigger review. It defeats purpose of AMESA for more timely and accurate reporting, intervention and correction. L Independent and expert review of all AMESA decisions around sampling and reporting is necessary as is a thorough review of all the monthly data. Staff responses have been inconsistent. Independent opinion is needed as operator has conflicting interests and 4as 4pen very involved in decision making around AMESA. Underlying monthly AMESA monitoring documents have not been provided to the public. Quarterly Reports are not traceable nor verifiable. SOLUTION: Attach the following monthly monitoring documents to the quarterly reports (These documents are completed every month and Durham has access to them): o Signed Lab Report for each month o AMESA Measurement/Flow Report signed by expert with appropriate credentials o TEQ Calculation completed and signed by official with appropriate credentials o Report as a whole should be signed off by official with appropriate credentials o Note: The above AMESA monthly reports (lab, flow, TEQ talc) are NOT in the Annual Report or any other public reports. C � Durham is Not Providing Underlying AMESA Monthly Dioxin/Furan Monitoring Documents (Lab, Flow, TEQ Calc) To the Public ❑WHY? If everything is legitimate and open and transparent, then why withhold these underlying dioxin/furan monitoring documents? Staff Rationale for Not Providing Underlying Raw Data (Lab, Flow, TEQ): Public Will Misconstrue/Misunderstand The public asked forth is AMESA monitoring, pays forth is AMESA monitoring, and deserves to see this AMESA monitoring data, including the underlying reports for transparency. If the public has questions about it, they have a right to ask. ❑It is the present situation of not providing underlying AMESA dioxin/furan monthly data and adequate explanations to the public that results in misunderstanding and mistrust. ❑Dioxin/furan stack testing and ambient air monitoring cover less than 5% of the year; the remaining 95% of the year the public relies on AMESA monitoring and should be able to see those lab results. ❑AMEBA data is provided to the public in other jurisdictions. C � AMESA monthly data for years 2015 to 2019 exists but has not been made available to the public. ❑This was a CRITICAL PERIOD when changes were made to the sampling system. ❑This was not a design period; it was an operational period Sampling methodology, including what parts recovered for dioxins/furans, needs to be clearly specified for the public and needs to be reviewed by independent expert. ❑Reference documents must be provided (AMEBA Technical Manual, AMEBA Trap Replacement SOP, AMEBA workplan(s) and Ministry approval of such plans must be provided. ❑Independent and expert review of all AMEBA decisions around sampling, reporting, workplans, protocol changes, equipment changes, Ministry input etc. is necessary as is a thorough review of all the monthly data. ❑Independent opinion is needed as operator has conflicting interests and has been very involved in decision making around AMEBA ❑Staff and Cova nta set protocols Works Memorandum Dec 8 only says that Durham and Covanta M ECP Directs Use of WHO TEQ factors that include dioxin -like PCBs instead of older NATO factors ovanta indicates the continuation of the use of NATO/CCME 1988 as the source of toxic equivalent (TECH) factors. In April 2012, Ontario Regulation 419/05, was amended to reflect that the NAT /COME 1958 TECH factors were no longer reflecting the expected impact from P DDs1PGDFs; and as SLIch, the World Health Organization (WHO)TEQ factors were to be used at once to for such impact determination (this is also highlighted in the MOECC Summary of Standards and Guidelines to Support Ontario Regulation 419105 - Air Pollution — Local Air Quality). The PDDs/PRFs in -stank TECH concentrations are to be based on WHO TECH factors, that includes the dioxin -like PCBs. But Works Memorandum Dec 8th confirms Durham still using NATO factors Works Committee Members Work Com mittae — November 3, 2021 Motion Related to AM ESA 02 Quarterly Report December 8, 2021 Page 4 of 7 The laboratory data provides values for each of the 17 dioxin and furan -congeners. The respective toxi-c -equivalency factor (TE F) for each dioxin and furan co n game r is applied to each value to obtai n a total dioxin a nd furan tots toxi c oqu i valo n co (T E0.) . Th a ECA [Environmo me I C o i pli ante ,gyp p royal] for the DY EC specifies the use of the NATO c lass ifi cation s ch a me a nd the refore the N ATC) T EF factors a re a pp li ed to the TE 0 calculation. m■■ Final Comment from S Thomas (MECP) Please revise the Vllark Plan accordingly. Regards, Sandra But at recent EFW -AC meeting, Senior Works staff advised that only the XAD-trap in the sampling system is recovered for dioxins/furans ❑This was also in conflict with previous statements same staff made at latest EFW-WMAC meeting when it was stated that both the probe and XAD-trap were recovered for dioxins/furans C � AMESA Sampling/Reporting issues must be fixed. C Underlying monthly AMESA monitoring documents, including laboratory reports and AMESA flow document (sample volume) reports, signed by experts with necessary credentials must be provided. EASY FIX: Attach these documents (which Durham can access) to the quarterly reports. C Data validation protocol must be provided. EASY FIX: Provide the data validation protocol to the public. Any invalidation of data must be accounted for. C Samplin.& methodology, including what parts recovered for dioxins/furans, needs to be clearly specified for the public. Reference documents must be provided (AMESA Technical Manual, AMESA Trap Replacement SOP, AMESA workplan(s) and Ministry approval of such plans must be provided. EASY FIX: Information Durham should already have. Simply provide it. C AMESA monthly data for years 2015 to 2019 exists and must be made available to the public. EASY FIX: Durham can access this information and provide it. The data is the data. C Durham should be receiving AMESA monthly lab results directly from lab for proper oversight instead of reports only going to operator Covanta. EASY FIX: Request to Operator Covanta to simply be copied on email from lab containing monthly lab results C Rolling average is inappropriate for reporting monthly AMESA data and as parameter to trigger review. It defeats purpose of AMESA for more timely and accurate reporting, intervention and correction. L Independent and expert review of all AMESA decisions around sampling and reporting is necessary as is a thorough review of all the monthly data. Staff responses have been inconsistent. Independent opinion is needed as operator has conflicting interests and 4as 4pen very involved in decision making around AMESA.