Page CALL TO ORDER ADOPTION OF AGENDA DELEGATIONS ADOPTION OF MINUTES ADMINISTRATION FINANCE RURAL SERVICES

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1 A G E N D A Municipal District #124 Council Meeting August 26, :00 a.m. - MD Council Chambers Page CALL TO ORDER ADOPTION OF AGENDA DELEGATIONS 3.1 Fire Service Update - Jamie Coutts ADOPTION OF MINUTES 4.1 Adoption of the August 12, 2015 Council Minutes 4.2 Adoption of the August 12, 2015 Community Assistance Board Minutes 4.3 Adoption of the August 12, 2015 Public Hearing Minutes ADMINISTRATION 5.1 CAO Report (Provide via ) 5.2 Fire Service Funding (To Be Presented) Awaiting Information from TOSL 5.3 Shuttle Bus Agreement - Radification FINANCE 6.1 Finance Report 6.2 Resource Road Program Grant (To Be Presented) 6.3 Cheque Registers RURAL SERVICES 7.1 Smith Community Complex Update (To Be Presented) TRANSPORTATION 8.1 Boris Lease (To Be Presented) - Draft Via Prior to Meeting 8.2 Flatbush Drainage Report UTILITIES 9.1 Canyon Creek Raw Water Intake Tender BOARD REPORTS 10.1 Board Reports from August 12th to August 26th IN CAMERA 11.1 First Nations Blockade Page 1 of 53

2 Municipal District of Lesser Slave River #124 Council Meeting Agenda Page ADJOURNMENT Page 2 of 53

3 Agenda Item # 4.1 M I N U T E S Council Meeting Municipal District of Lesser Slave River No. 124 August 12, 2015 MD Council Chambers, Slave Lake, Alberta MEMBERS PRESENT Murray Kerik - Reeve Garry Horton - Division 1 Brad Pearson - Division 2 Robert Esau - Division 1 Brian Rosche - Division 2 MEMBERS ABSENT Darren Fulmore - Division 1 Mike Skrynyk - Division 2 IN ATTENDANCE Allan Winarski - Chief Administrative Officer, MD 124 Lana Spencer - Recording Secretary, MD 124 Jay Warawa - Director of Finance, MD 124 Russ Jassman - Director of Rural Services, MD 124 Lyle Farris - Director of Utilities, MD 124 Maureen Mariampillai - Lakeside Leader CALL TO ORDER Reeve Kerik called the meeting to order at 10:04 a.m. ADOPTION OF AGENDA MOTION Moved by Councillor Pearson to adopt the Agenda with the following additions and deletion: Additions: Canyon Creek Campground Assignment Security Deposit Boil Water Advisory Update In-Camera: o Canyon Creek Raw Water Intake Tender o Postponements of MD Encumbrances Against Title o Mitsue Bypass Funding Guidance Deletions: In-Camera o Strategic Planning CARRIED ADOPTION OF MINUTES MOTION Moved by Councillor Esau to adopt the July 22, 2015 Council Minutes as presented. CARRIED ADMINISTRATION BOIL WATER ADVISORY UPDATE As of Wednesday August 12, 2015 the Boil Water Advisory has been lifted for the area of Poplar Lane Subdivision by Alberta Health Services. Monitoring will continue to be performed daily and the lifting of the order will be communicated to affected residents. MOTION Moved by Councillor Pearson to accept the Boil Water Advisory Update as information. CARRIED Adoption of the August 12, 2015 Council Minutes Page 3 of 53

4 Agenda Item # 4.1 MINUTES Municipal District of Lesser Slave River No Council Meeting August 12, 2015 Page 2 ALBERTA CENTRE FOR SUSTAINABLE RURAL COMMUNITIES REGIONAL COLLABORATION WORKSHOP INTEREST IN ATTENDANCE The Alberta Centre for Sustainable Rural Communities (ACSRC) at the University of Alberta is conducting a series of workshops in 7 different communities dispersed across Alberta over the next 7 months. The purpose of the workshops is to engage around 25 participants in three different exercises to help support and better enable regional collaboration in Alberta. Reeve Kerik has expressed interest in attending the workshop in Grande Prairie. MOTION Moved by Councillor Pearson to approve Reeve Kerik to attend the Alberta Centre for Sustainable Rural Communities (ACSRC) Workshop in Grande Prairie on August 25, CARRIED FCSS FUNDING REQUESTS Council reviewed five applications for 2015 FCSS Grants: o o o o Flatbush Help Service Society: Operational Grant Request of $2,810 Engaging Partnerships in the Community (EPIC) (Facilitated by High Prairie School Division): Operational Grant Request of $10,000 Anger Education (Facilitated by Town of Slave Lake): Special Project Grant Request of $4,500 Outback Power Pack Camp (Facilitated by Town of Slave Lake): Special Project Grant Request of $3,000 o Lesser Slave Forest Education Society Enviro-Quest Camp 2015 : Special Project Grant Request of $500 MOTION Moved by Councillor Rosche to award FCSS Funding as follows: Flatbush Help Service Society: $2,810 Engaging Partnerships in the Community (EPIC) (Facilitated by High Prairie School Division): $800 Anger Education (Facilitated by Town of Slave Lake): $700 Outback Power Pack Camp (Facilitated by Town of Slave Lake): $3,000 Lesser Slave Forest Education Society Enviro-Quest Camp 2015: $500 CARRIED DOMESTIC APPLIANCE FREE DISPOSAL Council discussed the issue of providing domestic appliance free disposal at transfer stations at any time. Currently, it is offered one day/month and on other days, residents are charged a fee ($10-$25/appliance). There is no charge if such items are taken to a regional landfill. To harmonize fee charges with the landfills operated by the waste management commissions in the Municipal District, Policy E.18 Domestic Appliance Free Day needs to be rescinded and fee charges need to be amended on the transfer station fees bylaw (Bylaw ). MOTION Moved by Councillor Pearson to rescind Policy E.18 Domestic Appliance Free Day. CARRIED Adoption of the August 12, 2015 Council Minutes Page 4 of 53

5 Agenda Item # 4.1 MINUTES Municipal District of Lesser Slave River No Council Meeting August 12, 2015 Page 3 MOTION Moved by Councillor Rosche to amend Bylaw Schedule A by: removing the fees under Section 4. Appliance Fees and replacing the fees with the text that Domestic appliances are accepted free of charge and No appliances from commercial entities will be accepted and removing the fees under Section 5. Other Household Electronics and replacing the fees with text that Household electronics are accepted free of charge. CARRIED CANYON CREEK CAMPGROUND ASSIGNMENT SECURITY DEPOSIT Previously on March 25, 2015, Council endorsed the assignment of the Alberta Environment and Sustainable Resource Development (AESRD) Canyon Creek Campground lease held by the Widewater Athletic Association (WWAA) to the Municipal District. This is the campground at the west end of Canyon Creek. To effect the change, the security deposit at AESRD placed by the WWAA needs to be replaced by the Municipal District. MOTION Moved by Councillor Pearson to provide the required $5,000 security deposit for the Canyon Creek Campground Assignment to proceed (Recreation Lease - REC ) into the name of the Municipal District of Lesser Slave River No CARRIED FINANCE CHEQUE REGISTERS MOTION Moved by Councillor Rosche to accept the Cheque Registers as presented. CARRIED SURPLUS WATER TRUCK SPRUCE POINT PARK The MD has a surplus 1981 Chevrolet water truck that is not being used by the Transportation Department. Steps are being taken by Administration to have Council declare the item surplus by the fall of A representative from the Spruce Point Park (SPP) operating out of Kinuso has expressed interest in the vehicle and has requested if the truck may be used for a short time this summer as a trial so as to see if it will serve the needs of their organization. Administration advised Council of a discussion with Jubilee Insurance regarding risks and requirements, required commercial inspection, and options of leasing to the SPP. The following issues were discussed by Council: It is nearing the end of the camping season and it may not be prudent to send old equipment on a public roads within SSP. Leasing the truck deviates from the policy recently approved (B.16 Asset Disposal Policy). Perhaps an alternative might be to offer the truck through the tender process (with a minimum black book value) Modifications that may be required for use by SSP may deter from others considering purchase. MOTION Moved by Councillor Pearson to provide a lease of the surplus 1981 water truck to Spruce Point Park (SSP), at no cost, under Municipal District registration and insurance, for the rest of the summer until the truck is put up for public tender, with the costs of repairs to meet provincial road worthiness certification and the costs of such certification to be borne by SSP with the provision that should SSP not purchase the truck, those costs would be reimbursed by the Municipal District to SSP upon the timely return of the truck to the Municipal District. CARRIED Adoption of the August 12, 2015 Council Minutes Page 5 of 53

6 Agenda Item # 4.1 MINUTES Municipal District of Lesser Slave River No Council Meeting August 12, 2015 Page 4 TRANSPORTATION WIDEWATER ROOF REPAIR TENDER RESULTS Council reviewed a report concerning the tender results received wherein two tenders were received: Proponent Combined Bid Flat Roof Bid Mansard Roof Bid Alpha Construction $626,149 $394,540 $230,609 Fraser Bros. Roofing $558,364 $340,897 $228,340 Council only has $152,500 in the 2015 municipal budget for the flat roof repair. MOTION Moved by Councillor Rosche to not award a contract for the Widewater Complex Roof Repairs. CARRIED RURAL SERVICES SMITH COMPLEX UPDATE Administration provided pictures of the Smith Complex site as well as a Site Review Report provided by BR2 on June 30, Progress is being made with the goal of sufficient occupancy for the Smith Fall Fair (the kitchens will not be fully functional for the fair) so the facilities can be used. Power and utilities have been hooked up. MD Administration will work with Smith Hondo Association of Recreation and Agriculture (SHARA) so that a successful fair occurs and will push the project along to meet this end. As well, MD Administration will shift resources to transition from construction project work to work on a draft facility operations agreement for Council consideration, taking into account SHARA s status as an agricultural society and its requirements for qualification to pursue lottery and casino funding. MOTION Moved by Councillor Pearson to accept the Smith Complex Update as information. CARRIED BOARD REPORTS Lesser Slave Lake Economic Alliance (LSLEA) The Municipal District and Town of Slave Lake have resigned from the LSLEA. Darcie Acton has taken the contract for the Economic Development Officer. Lesser Slave Regional Housing Authority The board reviewed the Auditor s Report. The authority has 57 vacant units. The shuttle bus agreement was reviewed with minor revisions suggested. Slave Lake Airport Services Commission The commission reviewed the audited financial statements for A letter was sent to MLA and Province regarding costs/funding to run municipal airports. Northern Alberta Elected Leaders (NAEL) Perhaps the Municipal District should take resolution forward to the Alberta Municipal Districts and Counties (AAMDC) Association with support from Alberta Environment and Parks (Wildfire Operations). A lack of response from the NDP government in meeting with municipalities was reported. Northern leaders are concerned about a lack of primary highway maintenance. Adoption of the August 12, 2015 Council Minutes Page 6 of 53

7 Agenda Item # 4.1 MINUTES Municipal District of Lesser Slave River No Council Meeting August 12, 2015 Page 5 MOTION Moved by Councillor Rosche to submit a resolution to Alberta Municipal Districts and Counties (AAMDC) Association regarding the lack of airport funding. CARRIED MOTION Moved by Councillor Pearson to accept the Board Reports as information. CARRIED RECESS RECONVENE PLANNING & DEVELOPMENT 12:20 p.m. 1:12 p.m. SMITH AREA STRUCTURE PLAN BYLAW AMENDMENT NO. 1 Bylaw proposes to amend the Hamlet of Smith Area Structure Plan (ASP) to change a +/- 1 acre (0.4 ha) portion of the Plan 4970MC Lot 1R from the Downtown Commercial designation to Parks and Open Space, as shown on Schedule A of the bylaw: This parcel is 3.32 acres, and is zoned Hamlet General (HG). The proposed intent of this ASP amendment is to accommodate the development of a public day park, as shown on Schedule B of the bylaw. This land belongs to the Municipal District (M.D.) and a development permit has been applied for the construction of a day park. Before this development can take place, an amendment to the Hamlet of Smith ASP is required. MOTION Moved by Councillor Pearson to give 2 nd reading to Smith Area Structure Plan Bylaw Amendment No. 1. CARRIED MOTION Moved by Councillor Rosche to give 3 rd reading to Smith Area Structure Plan Bylaw Amendment No. 1. CARRIED MARTEN BEACH ENCROACHMENT UPDATE At the June 24, 2015 Council meeting, Council made a motion for the landowner of Plan 6023RS, Block 5, Lot 7 with a retaining wall encroaching on a municipal walkway to provide an engineered remediation report for the issues regarding the retaining wall to Council within 30 days. A report presented to Council at this meeting advised: The public walkway was closed as of June 25, July 31 st, 2015 Administration received the engineered drawings of the retaining wall (which were reviewed by Council at this meeting). MD legislation (e.g. bylaws) is light on aesthetics requirements. The landowner plans to start construction by the 3 rd week of August and intends to have the relocation and reconstruction of the wall completed by the second week of September. MOTION Moved by Councillor Pearson to accept the Marten Beach Encroachment Update as information and advise the landowner to proceed to build the retaining wall according to the engineered plans on his property. CARRIED Adoption of the August 12, 2015 Council Minutes Page 7 of 53

8 Agenda Item # 4.1 MINUTES Municipal District of Lesser Slave River No Council Meeting August 12, 2015 Page 6 IN-CAMERA MOTION Moved by Councillor Pearson to go In-Camera at 1:20 p.m. to discuss Canyon Creek Raw Water Intake Tender issues. CARRIED OUT-OF-CAMERA MOTION Moved by Councillor Esau to come Out-of-Camera at 1:50 p.m. CARRIED RECESS RECONVENE 1:51 p.m. 2:10 p.m. IN-CAMERA MOTION Moved by Councillor Esau to go In-Camera at 2:11 p.m. to discuss: Postponements of MD Encumbrances Against Title Mitsue Bypass Funding Guidance Fire Services Agreement OUT-OF-CAMERA MOTION Moved by Councillor Esau to come Out-of-Camera at 4:00 p.m. ADJOURNMENT MOTION Moved by Councillor Horton to adjourn the meeting at 4:01 p.m. CARRIED CARRIED CARRIED Chief Administrative Officer Reeve Adoption of the August 12, 2015 Council Minutes Page 8 of 53

9 Agenda Item # 4.2 M I N U T E S Community Assistance Board Meeting August 12, 2015 M.D. Council Chambers, Slave Lake MEMBERS PRESENT Brad Pearson - Division 2 (Chairman) Murray Kerik - Reeve Garry Horton - Division 1 Robert Esau - Division 1 Brian Rosche - Division 2 MEMBERS ABSENT Darren Fulmore - Division 1 Mike Skrynyk - Division 2 IN ATTENDANCE Russ Jassman - Director of Rural Services, M.D. 124 Lana Spencer - Recording Secretary, M.D. 124 Maureen Mariampillai - Lakeside Leader CALL TO ORDER ADOPTION OF AGENDA B. Pearson called the meeting to order at 1:53 p.m. MOTION CAB Moved by Reeve Kerik to adopt the agenda with the following addition: 3.0 Final Reports as per Community Assistance Board Policy CARRIED FINAL REPORTS Reports are due on December 31 st of each year. Administration advised that reporting is flexible dependent on time of application. BUDGET Balance Remaining $27,086 APPLICATIONS FLATBUSH HELP SERVICES SOCIETY Project Description: Transportation (mileage) of Seniors and Incapacitated Persons Request: $ CANYON CREEK RECREATION ASSOCIATION Project Description: Feeding the Community Request: $ FLATBUSH COMMUNITY ASSOCIATION Project Description: Purchase Inflated Bouncy Castle Request: $ SOUTHSHORE CHILDREN S ASSOCIATION Project Description: New Equipment Request: $ WIDEWATER ATHLETIC ASSOCIATION Project Description: Public Washroom/Widewater Annual Sports Days Request: $ Adoption of the August 12, 2015 Community Assistance Board Minutes Page 9 of 53

10 Agenda Item # 4.2 MINUTES Community Assistance Board Meeting August 12, 2015 Page 2 MOTION CAB Moved by Reeve Kerik to approve funding of: $1600 to the Flatbush Help Services Society for Seniors Transportation $1000 to the Flatbush Community Association to Purchase Inflated Bouncy Castle $1000 to the Southshore Children s Association for New Equipment $ to the Widewater Athletic Association for Public Washrooms/Widewater Annual Sports Days Decline funding of: $ to the Canyon Creek Recreation Association for Feeding the Community Project CARRIED ADJOURNMENT MOTION CAB Moved by Councillor Esau to adjourn the meeting at 2:10 p.m. CARRIED Administration Reeve Adoption of the August 12, 2015 Community Assistance Board Minutes Page 10 of 53

11 Agenda Item # 4.3 M I N U T E S Public Hearing August 12, 2015 Bylaw Hamlet of Smith Area Structure Plan Amendment No. 1 M.D. Council Chambers, Slave Lake MEMBERS PRESENT Murray Kerik - Reeve Robert Esau - Division 1 Brad Pearson - Division 2 Brian Rosche - Division 2 Garry Horton - Division 1 MEMBERS ABSENT Mike Skrynyk - Division 2 Darren Fulmore - Division 1 IN ATTENDANCE Allan Winarski - CAO, M.D. 124 Jill Tapp - Planning & Development Officer, M.D. 124 Lana Spencer - Recording Secretary, M.D. 124 Maureen Mariampillai - Lakeside Leader CALL TO ORDER Reeve Kerik called the meeting to order at 1:05 p.m. BACKGROUND Purpose of Bylaw is to re-designate a +/- 1 acre portion from a 3.32 acre parcel, Plan 4970MC Lot 1R, from its existing designation of Downtown Commercial to Parks and Open Space. The proposed intent of this ASP amendment is to allow for the development of a public park. This land is owned by the Municipal District. The parcel is zoned as Hamlet General (HG) and a public park is a permitted use in this district. The remaining +/ acres will continue to be designated as Downtown Commercial and will maintain the ability to support future commercial developments. The +/-1 acre portion of Plan 4970MC Lot 1R has a small cottage located on it (the old Junior Forest Warden Site). This parcel is largely forested and undeveloped. This ASP promotes increasing recreational areas and facilities. Although commercial land is considered limited and valuable in the Hamlet of Smith ASP, the construction of a public park will not dissolve all future commercial developments. Public notification was completed in the Lakeside Leader for 2 consecutive weeks, July 22 and 29, Adjacent landowners were notified in writing of the public hearing date and time. COMMENTS AGAINST COMMENTS IN FAVOUR Against Proposed Bylaw: No one was in attendance that spoke against the proposed bylaw. No letters were received against the proposed bylaw by the Municipal District. In Favour of Proposed Bylaw: No one was in attendance that spoke in favour of the proposed bylaw. No letters were received in favour of the proposed bylaw by the Municipal District. Adoption of the August 12, 2015 Public Hearing Minutes Page 11 of 53

12 Agenda Item # 4.3 MINUTES Municipal District #124 Public Hearing August 12, 2015 Page 2 ADJOURNMENT MOTION: Moved by Councillor Rosche to adjourn the Public Hearing at 1:12 p.m. CARRIED Chief Administrative Officer Reeve Adoption of the August 12, 2015 Public Hearing Minutes Page 12 of 53

13 Agenda Item # 5.3 Date: August 26, 2015 Department: Subject: Prepared By: Administration Shuttle Bus Agreement Allan Winarski Background: As Council is aware, the Municipal District received grant funding under the Lesser Slave Lake Recovery Plan for a seniors shuttle bus. The Municipal District then made arrangements with the Lesser Slave Lake Regional Housing Authority (LSLRHA) for custody and service provision. Basically, an arrangement wherein the bus was purchased with grant funds by the Municipal District based on requirements identified by the housing authority with annual operating funds being provided until 2019 has been worked out. For Council reference, a copy of the agreement is provided (Note: The LSLRHA signed a version with a Draft watermark so a clean version for execution will be provided.) Issues: Now that the LSLRHA has endorsed the agreement provided by the Municipal District, subject to a minor change in the timing of the annual funding provision, a formal endorsement of the agreement is required by Municipal District Council. Conclusions & Recommendations: The recommendation from MD Administration is endorse the agreement. Shuttle Bus Agreement - Radification Page 13 of 53

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20 Agenda Item # 6.1 Date: August 21, 2015 Subject: Financial Report to July 31, 2015 Prepared By: Jason Warawa The financial report presented takes into account transactions up to and including July 31, Operational Summary With the large majority of the revenue already recognized for the year (90.6%) and the majority of the balance expected to come in as the year progresses, the focus of the operational summary shifts to expenses. At the end of July, the expenses are sitting at just over $ million which represents 45.7% of the approved budget. While this compares favourably with the July 2014 budget where only 42.1% ($8.1M) of the budget was spent, it still falls short of the 58% budget utilization rate that would be expected at this time of the year. Notable areas that are contributing to this variance include: Tax Transfer Outstanding Payment related to the Inter-municipal Agreement (Approx. $275k) Fire Services Outstanding payment under the Fire Services Agreement (Approx. $400k) Disaster Services The advancement of some significant recovery projects slower than anticipated (primarily Fire Smart projects) Common Services identified repairs and projects proceeding more slowly than expected Fleet Heavy equipment repairs significantly below budget ($115k), equipment leases that were budgeted did not materialize as planned (savings of $66k) Sewer delay in some maintenance projects and a lower than expected use of odour control chemicals both contributed to the less than expected expenditure level. Libraries & Culture MD additional contribution for the Legacy Centre not yet advanced ($400k) Capital Summary Capital expenditures increased by approximately $800k to $4.9 million by the end of July. The two main projects contributing to the increase were the regional water reservoir project ($394k) and the Smith Complex ($346k). Other expenses included the receipt of the final pickup truck ($35k), ongoing design work at the Smith Lagoon as well as for the Canyon Creek Water line project. Finance Report Page 20 of 53

21 Agenda Item # 6.1 Statement of Financial Position At the end of July, The cash position of the MD remained strong with over $23M in the bank and $20M in investments with the ATB. Long term receivables are shown to be decreasing since 2013 as residents continue to apply payments against their loans for the sewer installation along the south shore. Similarly, longterm debt is also decreasing as the MD continues to make payments against its outstanding debentures. Accounts Payable/Receivable are fluid as many transactions are put thru these accounts on a monthly basis The balance of accounts are primarily adjusted at the end of the year and will not see significant change until then. Reporting of Key Initiatives Collection of Taxes Given the economic downturn with respect to Oil and Gas, some consideration was given to looking at the collection rate for property taxes to see if there was a noticeable change between 2014 and If the impact of the economic conditions is negatively impacting our businesses and residents, it would be expected that payments would be lower and as a result the MD would be carrying a higher level of receivable. Below is a simple table that reflects the differences in taxes receivable at the end of July 2015 and 2014, respectively: Difference Balance Owing 841, , ,828 Number of Tax Accounts Given the information above, there are two items worth noting: There are three small energy companies that have not paid their taxes which combined total just over $68,000. With the low energy prices there is a concern that these companies may become insolvent, thus leaving the accounts unpaid with little or no recourse by the MD. Another large property tax payer in the MD chose to pay their taxes through installments and at the end of July $93,000 was yet to be collected While these four companies account for the majority of the difference between the balances owing, it does not fully account for the 13.5% increase in the number of tax accounts that are delinquent. While a thorough analysis was not done on the outstanding tax accounts, the increase does suggest that the economic downturn may be negatively impacting the ability of Finance Report Page 21 of 53

22 Agenda Item # 6.1 some of our residents to meet their financial obligations. While the municipality does have recourse in terms of collection, ongoing monitoring of the situation will be necessary going into 2016 to see if or how the economy will impact assessments. Recommendation: That Council accept the Financial Report to July 31, 2015 as information. Finance Report Page 22 of 53

23 Agenda Item # 6.1 MUNICIPAL DISTRICT OF LESSER SLAVE RIVER NO.124 STATEMENT OF OPERATIONS For the Period Ending July 31, 2015 OPERATING FUND Budget Utilization Year to Date Budget % Revenues Taxation revenues $ 19,252,576 $ 19,240, % Sales of goods & services $ 590,354 $ 1,199, % Penalties $ 84,874 $ 140, % Interest $ 208,923 $ 501, % Lease and rental revenue $ 54,064 $ 90, % Development and connection fees $ 8,228 $ 144, % Miscellaneous revenues $ 104,442 $ 12, % Gain on Sale of Assets $ - $ - #DIV/0! Grants $ 234,968 $ 1,350, % Total Revenue $ 20,538,428 $ 22,678, % Expenses General Government $ - $ - 0.0% Council $ 158,242 $ 308, % Administration $ 878,520 $ 1,700, % Safety $ 65,855 $ 122, % IT $ 231,325 $ 336, % Tax Transfers $ (0) $ 275, % Communications $ 71,896 $ 111, % Human Resources $ 8,712 $ 31, % Fire Services $ 117,667 $ 729, % Disaster Services $ 227,127 $ 979, % Ambulance $ - $ - 0.0% Bylaw Services $ 157,243 $ 297, % Common Services $ 177,943 $ 406, % Transportation $ 1,754,739 $ 3,486, % Fleet $ 414,115 $ 1,048, % Drainage $ - $ 5, % Water Services $ 641,968 $ 1,306, % Sewer & Waste Water $ 438,663 $ 1,177, % Garbage $ 129,449 $ 322, % FCSS $ 38,861 $ 91, % Cemeteries $ - $ - 0.0% Planning & Development $ 185,451 $ 332, % Agriculture $ 198,208 $ 362, % Land Development $ - $ - 0.0% Economic & Regional Development $ 36,848 $ 145, % Recreation Boards $ 5,014 $ 40, % Recreation & Parks $ 133,193 $ 222, % Libraries and Culture $ 134,951 $ 538, % Municipal Requisitions - Seniors $ 588,575 $ 588, % Non-Municipal Requisitions - Educa $ 2,025,806 $ 4,161, % Contingencies $ - $ 175, % Total Expenses $ 8,820,370 $ 19,303, % Net Operating Fund $ 11,718,058 $ 3,374,730 Amortization (not included) $ - $ 6,634,666 Finance Report Page 23 of 53

24 Agenda Item # 6.1 MUNICIPAL DISTRICT OF LESSER SLAVE RIVER NO.124 STATEMENT OF OPERATIONS For the Period Ending July 31, 2015 OPERATIONAL INTERFUND TRANSFERS Budget Utilization Year to Date Budget % Transfers in-operating $ 1,958 $ 402, % Transfers out-operating $ - $ 1,321, % Net Operating Transfers $ 1,958 $ (919,341) Cash Required for Balance Sheet Items (342,180) CAPITAL FUND Revenues Debenture proceeds $ - $ - Interest $ - $ - Sale of assets $ 121,108 $ 36,800 Grants - federal $ - $ - Grants - provincial $ - $ 20,120,799 Total Capital Revenues $ 121,108 $ 20,157,599 Expenses Infrastructure and roads $ 2,598,754 $ 25,410,302 Engineering $ - $ - Buildings $ 1,682,075 $ 2,956,610 Equipment $ 569,464 $ 1,571,953 Land $ 10,183 $ 64,300 Vehicles $ 433,569 $ 643,454 IT Equipment $ - $ - Total Capital Expenses $ 5,294,046 $ 30,646,619 Net Capital Fund $ (5,172,938) $ (10,489,020) CAPITAL INTERFUND TRANSFERS Transfers in-capital $ - $ 8,437,775 Transfers out-capital $ - $ 36,800 Net Capital Transfers $ - $ 8,400,975 Net Overall Surplus (Deficit) $ 6,547,079 $ 25,164 Finance Report Page 24 of 53

25 Finance Report 2015 Capital Projects - Budget Report For Period Ending July 31, 2015 Department 2014 Expenditures 2014 Carryover Amount 2015 Adjustments 2015 Budget New Capital 2015 Expenditures to Date Comments Engineering Structures Regional Water Line - Poplar Lane Water $ 10,031,821 $ 9,244,877 $ 10,410,540 $ - $ 2,165,950 Currently working on reservoir and metering stations Canyon Creek Raw Water Intake Water $ 256,864 $ 454,635 $ (454,635) $ - $ - Second Phase Cancelled in favour of water lines (below) Widewater Lift Station Scrubber Sewer $ 31,779 $ 218,221 $ (200,000) $ - Complete, no 2015 capital expenditures expected Flatbush Autoclorination Water $ - $ 10,000 $ - $ - $ - No Action Dry Hydrants Various Sites Water $ 22,500 $ 451,241 $ - $ - $ 7,675 RDS - Construction Started August 2015 Tollenaar Bridge Transportation $ - $ 385,878 $ - $ - $ 4,000 Over Budget, Rescope, Project Deferred until 2016 Old Smith Hwy Transportation $ 115,197 $ 74,803 $ - $ - $ 452 Design complete - awaiting direction on next steps Poplar Road Paving Project Transportation $ 89,303 $ 60,697 $ - $ 3,200,000 $ 102,557 Martushev Logging - Construction started July 2015 Smith Lagoon Relining - Design Sewer $ - $ - $ - $ 100,000 $ 23,850 Preliminary Design work Smith Lift Station Replacement Sewer $ - $ - $ - $ 110,000 Awaiting engineering proposals Smith Lift Stn Emergency Generator Sewer $ - $ - $ - $ 80,000 Awaiting engineering proposals Smith Raw Water Intake - Design & Cons Water $ - $ - $ - $ 225,000 Project halted, may not need replacing Canyon Creek Raw Water Line Water $ - $ - $ 450,000 $ 20,370 Tendered, Awaiting Tender Recommendation Review Bayer Road Water Line - Preliminary Water $ - $ - $ - $ 50,000 $ - No action $ 10,547,465 $ 10,900,352 $ 9,755,905 $ 4,215,000 $ 2,324,854 Buildings Widewater Complex Roof Recreation $ - $ 200,000 $ - $ - Bis Over Budget, Project Cancelled for 2015 Canyon Creek - Generator/Lab Bldg Water $ 59,890 $ 143,424 $ - $ - Seeking less expensive alternatives Flatbush Hall Renovations Recreation $ - $ 65,000 $ - $ - No further action until budget/design discussions Smith Complex Recreation $ 1,396,814 $ 1,678,186 $ 870,000 $ - $ 1,555,895 Completion scheduled for end of July 2015 $ 1,456,704 $ 2,086,610 $ 870,000 $ - $ 1,555, Page 25 of 53 Machinery & Equipment Replace - Skid Mounted Sprayer ASB $ 3,570 $ 16,430 $ - $ - $ 11,738 Sprayer purchased and in service Large Format Printer IT $ - $ - $ - $ 9,500 $ 9,500 Printer rec'd and has been networked Grader GR11 Replacement Fleet $ - $ - $ - $ 403,000 $ 389,753 Grader rec'd and put into service Utility Tractor LT3 Replacement Fleet $ - $ - $ - $ 33,000 $ 23,549 Tractor delivered and in service Mower Tractor T3 Replacement Fleet $ - $ - $ - $ 119,500 Ordered, awaiting delivery New Cross Dump Trailer Fleet $ - $ - $ - $ 54,200 $ 53,308 Trailer rec'd and put into service Amkus Hydraulic Pump Fire $ - $ - $ 15,000 Being investigated Chlorine Analyzers Water $ - $ - $ 6,524 $ 6,524 Purchased and in use Emergency Generators Emergency $ 34,701 $ 581,299 $ 81,500 $ - $ 19,842 Setanta Contracting - Work Commenced August 2015/Aw $ 38,271 $ 597,729 $ 81,500 $ 640,724 $ 514,214 Vehicles Light Vehicle Replacements Fleet $ - $ - $ - $ 125,700 $ 125,700 4 of 4 vehicles have been delivered FB Fire Tanker 451 Replacement Fire $ - $ - $ - $ 300,000 $ 242,703 Pumper Truck delivered, currently being rigged up Senior's Bus Recreation $ 11,488 $ - $ 67,754 $ - $ 67,574 Bus rec'd, ownership/operation TBD Tandem Truck TR507 Replacement Fleet $ - $ - $ - $ 150,000 $ - Deferred to later in 2015 $ 11,488 $ - $ 67,754 $ 575,700 $ 435,977 Agenda Item # 6.1

26 Finance Report 2015 Capital Projects - Budget Report For Period Ending July 31, Department 2014 Expenditures 2014 Carryover Amount 2015 Adjustments 2015 Budget New Capital 2015 Expenditures to Date Comments Land Smith Subdivision Plans Development $ 61,700 $ 29,300 $ - $ - $ 10,183 Project ongoing Road Right of Way Registrations Development $ - $ - $ - $ 35,000 $ - No action $ 61,700 $ 29,300 $ - $ 35,000 $ 10,183 Other Projects Fuel Dispensing Sites Infrastructure $ - $ 60,000 $ - $ - $ 40,842 Final issues appear to be resolved, working Mass Notification System Planning IT $ 13,000 $ 37,000 $ - $ - Ongoing work Cambridge Firehall Park Recreation $ - $ 75,000 $ - $ - Working with community reps CCLP - Additions Recreation $ - $ - $ - $ 40,000 Washroom facilities installed early July Widewater Park Washroom Addition Recreation $ - $ - $ - $ 40,000 Washroom facilities installed early July MD Gateway Signage Administration $ - $ - $ 75,000 3 signs approved - to be installed summer 2015 East Fawcett Boat Launch Repair Recreation $ - $ - $ - $ 15,000 $ 1,955 Supplies purchased DRP - Muskeg Road Road Repairs Transportation $ - $ 449,045 $ - $ - $ - $ 13,000 $ 621,044 $ - $ 170,000 $ 42,797 (shaded - carry over projects) TOTAL $ 12,128,628 $ 14,235,035 $ 10,775,159 $ 5,636,424 $ 4,883,920 Capital Budget $ 30,646,618 Agenda Item # 6.1 Page 26 of 53

27 Agenda Item # 6.1 MUNICIPAL DISTRICT OF LESSER SLAVE RIVER NO. 124 Statement of Financial Position As at July 31, Actual Actual Actual FINANCIAL ASSETS Cash $ 24,231,952 $ 27,972,829 $ 23,513,498 Receivables Taxes and grants in lieu of taxes 321, , ,019 Trade and other receivables 2,975,862 2,108,994 1,467,435 Other long-term receivables 1,923,104 1,743,966 1,656,929 Land held for resale Investments 178,755 10,211,405 20,288,743 29,631,097 42,303,892 47,752,624 LIABILITIES Accounts payable and accrued liabilities 2,314,076 4,092,175 2,890,286 Deposit liabilities 515,553 1,439,179 1,108,392 Deferred revenue 5,522,167 14,403,048 14,988,441 Employee benefit obligations 266, ,389 - Reclamation liabilities 253,280 73,400 73,400 Long-term debt 3,988,207 3,712,297 3,602,027 12,859,655 23,923,489 22,662,546 NET FINANCIAL ASSETS 16,771,441 18,380,403 25,090,078 NON-FINANCIAL ASSETS Capital assets 88,322,009 98,065,599 98,065,599 Inventory for consumption 949,344 1,628,883 1,648,408 Prepaid expense 205, ,580 2,459 89,476,417 99,879,061 99,716,465 ACCUMULATED SURPLUS 106,247, ,259, ,806,543 Difference: 12,011,606 6,547,079 Finance Report Page 27 of 53

28 Agenda Item # 6.3 Cheque Registers Page 28 of 53

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38 Agenda Item # 8.2 Flatbush Drainage Report Page 38 of 53

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44 Agenda Item # 8.2 Date: August 26, 2015 Department: Subject: Prepared By: Transportation Flatbush Drainage Improvements Allan Winarski Background: So that the Municipal District can pursue drainage improvements in the Flatbush vicinity, efforts have been undertaken to pursue the right-of-way that would be necessary to facilitate those improvements. To do this, the end in mind has to be defined as it affects where the right of way should be and where the water goes. It also affects the degree of involvement with respect to wetland and water policy/regulations under the jurisdiction of the Alberta Government. Issues: Two recent site visits have been conducted with the owners from which a right of way would be necessary. The owners have suggested amendments to the original easement documents presented to them. Analysis: Given the interest in this topic and given that the report from AMEC has just come in this afternoon, the report is being provided to Council for initial information. Conclusions & Recommendations: Table the document to the next meeting in September. Flatbush Drainage Report Page 44 of 53

45 Agenda Item # 9.1 Date: August 26, 2015 Department: Subject: Prepared By: Utilities Canyon Creek Raw Waterline Project Allan Winarski Background: In the 2015 Municipal District (MD) Budget Council set aside $450,000 for this project. Three bids were received on August 6, 2015 with Good Brothers Construction as the low bid (See attached letter from Associated Engineering, the project engineer, dated August 11, 2015, for $259,820. To complete the project, all in, requires a budget of $387,280. The MD has budget for the tender result received. Issues: 1. As a result of past experiences with Good Brothers and reference checks, there is a concern identified as to whether the work will be completed in good workmanship manner. Alternatives: 1. Select the next lowest bid 2. Accept the lowest tender and provide appropriate supervision. 3. Re-tender Analysis: The predominant concern Council for to consider is whether there is value for money pursuing the project with Good Brothers Construction and whether the project will be completed in good workmanship manner. Select the Next Lowest Bid: Given some unflattering information with respect to Good Brothers Construction performance on other projects, time was taken to solicit legal advice as to whether the Municipal District has the flexibility to select the next tenderer. Despite the following term in the bid documents: The lowest or any bid will not necessarily be accepted, under the common law, in the absence Canyon Creek Raw Water Intake Tender Page 45 of 53

46 Agenda Item # 9.1 of other conditions that offer specific ways of not accepting a tender, the principle of Duty of Fairness applies and the Municipal District would expose itself to liability and with the contract documentation, as it is, would lose in court. Accept the Lowest Tender and Provide Supervision: Council will observe that the option of just accepting the lowest tender is not presented. Warnings with respect to the possible quality of work have emerged. Since the next lowest tender cannot be entertained, it is in the Municipal District interest to heed warnings and take measures to insure that the work gets completed according to design in a satisfactory manner. So, the project engineer has made the recommendation that Good Brothers Construction be awarded the tender and recommends a provision for supervision at a cost of $17,600. As frustrating as it is to not be able to have confidence in seeing project proceed without the extra inspection, the additional cost added to the Good Brothers Construction tender is still less than the second tender by $18,597. Re-tender: There is not a shortage of budget and a re-tendering next year could again see a vendor with challenges similar to those of concern here. The work needs to be done. Conclusions & Recommendations: The recommendation from MD Administration is to award the tender to Good Brothers Construction for the amount of $259,820 with additional funds to be provided for supervision/inspection in the amount up to $17,600 for the project engineer so the project proceed with an overall budget, net of GST, for $387,280. Canyon Creek Raw Water Intake Tender Page 46 of 53

47 Summa... Agenda Item # 9.1 Associated Engineering Alberta Ltd AssociatedEngineering Plaza Associated GLOBA PERSPECTIVE Jasper Avenue E"8l"e 'i E F0CU5~ Edmonton,Alberta, Canada, T5]5B9 August 11, 2015 File: O-C-O1.03 TEL: FAX: Allan Winarski Chief AdministrativeOf?cer MDof Lesser Slave River No 124 P.O Box 722 Slave Lake, Alberta TOG 2A0 Re: HAMLET OF CANYON CREEK - RAW WATERLINE TENDER EVALUATION Dear Sir: Bids were received for the above project and opened at 2:00pm on August 6, 2015 in the Associated Engineering Edmonton office. A summary of bids received is shown in Table 1 below. Alltenders have been checked and the amounts shown in the summary have been found to be correct. Table 1 of Bid Table 2 attached presents a summary of the bid submission requirements which accompany the Bid Form. Allbidders had the required documents attached to their bid and are considered compliant. Table 3 shows the detailed breakdown of costs. The lowest bid was submitted by Good Brothers. Associated Engineering has worked withgood Brothers Construction previously, most recently the HWY 28/63 Phase 3 Regional Waterline for The County of Thorhildfrom Bellisto Spedden. Good Brothers Construction was a sub contractorto Westcan Tel on that project. P:\2Cl153402\OO_Rsw_Waterline_Upg\Conslruction\01.03_Bids_Received_Evaluatlon \Lu Wlnsarskl_AM.A_Canyoncreek_Rawwaterline_Rec_Award.Docx " BEST vl MA~A * COMPANIES Pbihm member Canyon Creek Raw Water Intake Tender Page 47 of 53

48 Agenda Item # 9.1 Associated Engineering GLOBALPERSPECTIVE. LOCALFOCUS. August 11, 2015 Allan Winarski _ 2 - Good Brothers has completed private development projects (Broadhead and Legacy Highway Commercial) within the Town of Slave Lake. in both instances Good Brothers had dif?cultyfinishing the projects and obtaining the required completion certificates. In summary, Good Brothers is capable of completing this project, but past experiences have raised concerns regarding workmanship and managing project completion and turn-over. We would recommend increasing our site presence to fulltime inspection to monitor all the work and check connections prior to back?ll. We anticipate the additional inspection willcost $17,600. On the basis of the lowest bid received, the complete project cost is summarized in Table 4 attached. The Canyon Creek Raw Waterline Replacement construction is anticipated to cost $309, (excluding GST). The total project is estimated to cost $387, (exluding GST) We are awaiting approval for a crossing agreement from CN Rail. We expect to receive a response from CN by August 15, We recommend award of the project be subject to receipt of the crossing approval. Yours truly, C ad Maki, P. Eng. Project Manager CM/jfm Enclosures cc: Allan Winarski ~ MD of Lesser Slave River No. 124 Lyle Farris - MDof Lesser Slave River No. 124 Blaine Sherman Associated Engineering P:\ \D0_Raw Wateriine_Upg\Construction\01.03_Bids_Received_Eval uation\lir_winsarsid_a!vta_canyoncreek_rawwetenine_rec_award.docx Canyon Creek Raw Water Intake Tender Page 48 of 53

49 Agenda Item # 9.1 Date: File: Good Brothers Construction 2002 Ltd. P.O. Box 3689 High Level, AB TOH 1Z0 Re: M.D. OF LESSER SLAVE RIVER NO. 124 HAMLET OF CANYON CREEK RAW WATERLINE UPGRADE Dear Sir/Madam: We are pleased to inform you that this contract has been awarded to yourfirm. You should now comply with the requirements of GC 9 INSURANCE, GC 11 BONDS, GC 12EXECUTIONOF THE CONTRACT AGREEMENT and GC 25 CONSTRUCTION SCHEDULE of the GeneralConditions, and Section 710 INSURANCE of the contract. The requireddocuments must be deliveredto the Engineer within ten (10) business days. Upon receipt, Contract Documentis willbe provided to you for execution. Note that the signature andsealofyour firm as required on the bonds}, as those of your bonding company. Please ensurethe value ofthebonds is correct, and the full name of the Owner and the Project, as shown of the cover of the Contract Documents, is correctly shown on both bonds. The date of this Notice of Award may be taken asthe date of the Contract and should be included on both bonds. as well This is not the Noticeto Proceed with thework. The Notice to Proceed willbe issued following execution of the contractidocuments. Yours truly, Allan Winarski Chief Administrative Officer AW/xx cc: Chad Maki - Associated Engineering P.\ \O0_Raw_Waterline_Upg\Construction\O1.03_Bids_Received_Evaluation\Ltr_Notice_Of_Award_GoodbrothersDocx Canyon Creek Raw Water Intake Tender Page 49 of 53