Table of Contents Beaver Municipal Solutions

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1 Board Meeting September 10, 2015 Tofield Chambers, Tofield, AB Table of Contents Page 1. Call to Order (Preliminary Agenda) Additions/Deletions to the Agenda (If Applicable) 3. Approval of Minutes 3.1 Approval of Minutes of Regular Meeting June 18, Regular Reports (Consensus Agenda) 4.1 Strategic Priorities Chart Updated FUAL Updated Financials Interim Statements 7 months to July 31, Capital Projects Update Operations Update Communications Update Attachment (2014 Annual Report) 5. Board Events Calendar Correspondence Ministerial Letter of Approval for Surplus of Funds MSL:139/15 7. Board Matters 7.1 RFD Auditor Appointment Fiscal Year RFD Additional Release of Surplus Funds RFD Attachment FIN-011 Policy RFD Mobile Transfer Station Suspension of Service RFD Authorization for 2016 Capital Equipment Purchase BDR Future Office Space Requirements 8. In Camera Session Table of Contents Beaver Municipal Solutions

2 AGENDA (PRELIMINARY) REGULAR MEETING SEPTEMBER 10 6:00PM TOFIELD CHAMBERS, TOFIELD, AB REGULAR MEETING 1. Call to Order 2. Additions/ Deletions to the Agenda 3. Approval of Minutes 3.1 The Minutes of the Regular meeting of August 20, Regular Reports ( Consensus Agenda) 4.1 Strategic Priorities Chart Updated 4.2 FUAL Updated 4.3 Financials.1 Interim Statements 8 months to August 31, Capital Projects Update 4.4 Operations Update 4.5 Communications Update 5. Conferences/Training: 5.1 Board Calendar Updated 6. Correspondence 6.1 Ministerial Letter of Approval for Surplus of Funds MSL: 139/15 7. Board Matters: 7.1 RFD - Auditor Appointment Fiscal Year RFD - Additional Release of Surplus Funds RFD - Attachment FIN-011 Policy 7.3 RFD Mobile Transfer Station Suspension of Service 7.4 RFD Authorization for 2016 Capital Equipment Purchase 7.5 BDR Future Office Space Options - TBD AGENDA Beaver Municipal Solutions Page 1 of 42

3 8. In-Camera Session : 8.1 FOIP AGENDA (PRELIMINARY) REGULAR MEETING SEPTEMBER @ 6:00PM TOFIELD CHAMBERS, TOFIELD, AB 9. Motions Arising From In-Camera Session: 10. Meeting Evaluation: 11. Adjournment: AGENDA Beaver Municipal Solutions Page 2 of 42

4 BEAVER REGIONAL WASTE MANAGEMENT SERVICES COMMISSION REGULAR MEETING August 20, 2015 Beaver County Chambers, Ryley AB 6:00 p.m. COMMISSION DIRECTORS present at commencement: Ronald Yarham Chairman Brian Ducherer Vice-Chairman Harold Conquest Director Jason Ritchie - Director Bernie Marko Director ADMINISTRATION present at commencement: Pierre Breau, P. Eng. General Manager Juvy Ceniza, CPA/CMA Chief Financial Officer Aaron Hills, CET VP Operations Sebastian Rodolfo Controller Marilyn Booth Executive Assistant GUESTS present at commencement: Meaghan Colpitts, EIT Assistant Process Engineer Tariq Medina, EIT Assistant Process Engineer Anne Ruzicka Communications Coordinator 1. Call to Order (Regular Meeting) CHAIRMAN Yarham called the meeting to order at 6PM. 2. Additions/Deletions to the Agenda MOVED by CHAIRMAN Yarham that the Agenda be approved with changes as circulated. 3. Reading and Approval of the Minutes 3.1 The Minutes of the Regular Meeting of June 18, 2015 CARRIED MOVED by CHAIRMAN Yarham that the Minutes from June 18, 2015 be approved as circulated. 4. Regular Reports (Consensus Agenda) 4.1 Strategic Plan Priorities Chart Update 4.2 FUAL Updated 4.3 Financials.1 Interim Statements 7 months to July 31, 2015 CARRIED B.R.W.M.S.C./BMS Regular Meeting August 20, Page 3 of 42

5 .2 Capital Projects Update 4.4 Operations Update 4.5 Communications Update 5. Conferences/Training 5.1 Board Events Calendar - Updated 6. Correspondence 6.1 Request for Grant - Viking, Beaver FCSS Holden Office Summer Program Letter 6.2 Request for Support, Stettler Waste Management - Committee Development Letter 6.3 Request for Grant - Fundraising Event Ryley Volunteer Fire Department 6.4 Letter, Municipal Affairs Approval of City of Edmonton Hauling Contract Extentsion 6.5 Support for Release of Additional Unrestricted Surplus Funds Letter Beaver County 6.6 Village of Holden Letter 6.7 Village of Ryley Letter 6.8 Village of Tofield Letter 6.9 Village of Viking Letter 6.10 Request for Grant (Sunshine Villa) 6.11 Request for Grant - BESC Halloween Costume Party Direction was given to Staff that grant requesters be advised of the Community support grant program and that where applicable, requests would be considered in the next round of applications. 7. Board Matters 7.1 FIO Grant for Ol Blue Community Coach The GM reported on the $ operating grant provided to the Ol Blue Community Coach Society per Policy FIN RFD Landfill Capping 2016 Award MOVED by DIR Conquest that the Board award the Contract for Landfill Capping 2016 to BTO Contracting Ltd. for amount of $693, GST CARRIED 7.3 RFD Cuff Governance Report and Recommendations Update on Actions MOVED by DIR Marko that the job description for the Commission CAO be changed to General Manager. CARRIED MOVED by DIR Conquest that the Board approve the draft scope of work for a request for proposal for a Consultant to work with the Commission and the Beaver Regional Partnership to develop a Members Statement of Expectations/Charter, a revised a Commission Strategic Plan and a B.R.W.M.S.C./BMS Regular Meeting August 20, Page 4 of 42

6 Commission Governance Advisory, Committee. CARRIED MOVED by DIR Ritchie that the Board approve a draft methodology for a review of future Commission office renovation and expansion needs. CARRIED 7.4 RFD Authorization for 2016 Capital Equipment Purchases Staff reported that pending price confirmation, this RFD will be brought forward to the September 10, 2015 Regular Board Meeting. 7.5 FIO Update on Release of $2.3 Million in Additional Surplus Funds The CFO updated the Board on the Status of the surplus release request. The request is now at the Ministerial level for approval. 7.6 RFD Changes to Employee Handbook:.1 Employee Time off for Volunteer Fire Fighter/First Responder Duty call MOVED by DIR Marko that the Board approve the Fire Call Policy as presented, with changes to the Employee Handbook.2 Time in Lieu instead of Overtime Payment CARRIED MOVED by DIR Conquest that the Board approve the Time in Lieu Policy as presented, with changes to the Employee Handbook. CARRIED.3 Benefits for Regular Part-time Employees MOVED by DIR Ritchie that the Board approve pro-rated benefits for regular part time employees working less than 20 hours per week, with changes to the Employee Handbook..4 Changes to Vision Care Policy CARRIED MOVED by DIR Ducherer that the Board approve the change in Vision Care Policy as presented, with changes to the Employee Handbook. CARRIED B.R.W.M.S.C./BMS Regular Meeting August 20, Page 5 of 42

7 7.7 RFD Change to Employee Windshield Replacement Policy HUM MOVED by DIR Conquest that the Board approve the recommended changes to HUM-011 (Windshield Replacement Policy) to all permanent part time employees and the reimbursement of cracked side windows as presented. CARRIED 7.8 RFD Waste Collection Bin Order Policy MOVED by DIR Ritchie that the Board approve Policy FIN-015 Waste Bin Collection Order. 8. In-Camera Session 8.1 FOIP 16(1) and 25(1) CARRIED MOVED by CHAIRMAN Yarham to go in camera at 8:55PM CARRIED MOVED by DIR Marko to go out of camera at 9:16PM 9. Motions Arising from In-Camera Session 9.1 As Required CARRIED MOVED by DIR Ducherer that the Landfill Manager position be created with pay grid classification M Meeting Evaluation 10.1 Director Form 11. Adjournment 11.1 Motion for Adjournment CARRIED MOVED by CHAIRMAN Yarham to adjourn the meeting at 9:17PM. CARRIED The next regular meeting of the Board will occur on September 10, 2015 at 6:00 p.m at the Town of Tofield Chambers. B.R.W.M.S.C./BMS Regular Meeting August 20, Page 6 of 42

8 _ Chairperson CAO/GM B.R.W.M.S.C./BMS Regular Meeting August 20, Page 7 of 42

9 STRATEGIC PRIORITIES CHART UPDATED SEPTEMBER 10, 2015 Summary Strategic Plan Actions & Timeline ENTERPRISE RISKS Complete environmental audit recertification Pursue additional lines of business to offset reliance on MSW and contaminated soil waste - Ever Green Eco contract executed May Other opportunities being pursued Sep 2016 Immediate STATUS In Progress In Progress CORPORATE GROWTH STRATEGY Develop turnkey MSW solutions for municipalities o Lac La Biche presentation o Other Municipalities (AAMDC/AUMA) Pursue contaminated soil trucking o Identify projects o Evaluate need for expanded trucking Mechanical Services o Get CVIP registration o Advertise services o Evaluate need for expansion Mar 2014 On-going Apr 2014 Sept 2014 May 2014 Jun 2014 On-going STATUS Complete Council to re-visit solid waste plans 2015 In Progress Hauler interest in asbestos disposal options; interest in other private MSW disposal. Re-evaluating opportunities Complete In Progress CVIP registration is in place, to do more work for CoE and others, need to consider garage expansion. Will look at for 2016 budget. BMS Nutrients biosolids to nutrients o Submit CCEMC EOI proposal o Complete existing Lyons application o If EOI successful, submit Feb 2014 May 2014 May 2014 May 2014 On-going Complete Complete N/A Complete Pending Pursuing biosolids 4.1 Strategic Priorities Chart Beaver Municipal Solutions Page 8 of 42

10 STRATEGIC PRIORITIES CHART UPDATED SEPTEMBER 10, 2015 o FPP Confirm municipal contracts o If FPP successful, implement project BMS Renewables waste to energy o Develop MOU with Alberta Innovates Technology Futures o Pursue funding for pilot plant o If funding successful, implement project BMS Energy Services o Mobile O & G wastewater treatment, pursue contracts o Test for landfill wastewater treatment applicability o If successful, purchase initial unit o Implement business & set up on-site Require consultation with Alberta Government and municipal members Presentations Apr 2014 Apr 2014 As required Immediately Immediately Mar/Apr/14 Jul/Aug/14 Summer 2015 disposal opportunities. COE, oil sands camps. Signed NDA with clear BAKK In Progress Pursuing waste to-energy technologies to be located at BMS. Complete Complete In Progress In Progress Completed sediment pond testing project. Next project planned is Beaver County lagoon at Bruce. Following will be testing of SAGD waste fluids In Progress Organization options currently under review with municipal members STAKEHOLDER RELATIONS STATUS Declared 2015 dividends - $1 m, asking for additional release $2.3M Released $1M Dec 2015 Received MA approval for additional $2.3 M Engage consultant to review dividend distribution policy and good neighbor policy On-going Delegated to Public Advisory Committee Review and recommend policy changes Nov 2015 Ongoing in 2015 Discuss LUB and Centre of Excellence in Environment with Beaver County May 2014 Pending No action yet from EIP Committee 4.1 Strategic Priorities Chart Beaver Municipal Solutions Page 9 of 42

11 STRATEGIC PRIORITIES CHART UPDATED SEPTEMBER 10, 2015 MEMBER COLLECTION STATUS SYSTEM & TRANSFER STATIONS Presentations to Councils Apr 2014 Bin roll out complete. Meeting held with CAO s for Tofield, Holden & Ryley. Beaver County and Viking to follow in October. Public open houses Sept 2014 Additional open houses to be held fall 2015 winter 2016 Propose solutions to members Nov 2014 Meetings to be scheduled for fall 2015 HUMAN RESOURCES STATUS Roll-out program May 2015 AIP scorecards complete. Discussion with affected staff on-going. 4.1 Strategic Priorities Chart Beaver Municipal Solutions Page 10 of 42

12 4.2 FOLLOW-UP ACTION LIST (FUAL) DATE REPORT WHO ACTION (to/via) TARGET (Status) Director Remuneration GM Develop a new policy and present to the Board for review and approval. Per Cuff report recommendation Consulting Report Good Neighbour Grant Policy GM Municipalities requested Community Impact Study be delayed. See , motion Delayed Letter of support to the Bathgate Water Co-Op with payment of up to $300,000 valid to December 31,2016 GM Letter sent to Bathgate Water Co- Op Pending payment of funds Purchase of Additional Waste Bins VPO In process. Regular updates will be given Recreation Project Conceptual GM Work in Progress, Assigned to PAC In Progress Planning Enter into a land lease GM No further action has been made agreement, in principal, with NuPower on the Proponent s side Energy Corporation subject to legal due diligence, in accordance with the proposal That the Board request Municipal Affairs to release up to $2.3 million That Mobile transfer station service to be extended into October Recommendations of Cuff Governance Report Recommendation to request a meeting with Beaver Regional Partnership to develop an Implementation Plan GM/CFO Information submitted to Municipal Affairs Waiting for approved update to be given Approval received Sept 1, 2015, Cheque s issued VPO Update in Progress GM Update on Progress GM Update on Progress Page 1 of 3 Page 11 of 42

13 4.2 FOLLOW-UP ACTION LIST (FUAL) Where Commission can act independently to implement the recommended action Plan Board award the Contract for Landfill Capping 2016 to BTO The job description for Commission CAO be changed to General Manager Accept proposal for a Consultant to work with Commission & Beaver Regional Partnership to develop a Members Statement of Expectations/Charter, revised Commission Strategic Plan and a Commission Governance Advisory, Committee The Board to approve a draft methodology for a review of future Commission Office renovation and expansion The Board to approve Volunteer Fire fighters that need to respond to fires while working their shift can do so with pay The Board to approve Employees not required to work overtime but need to make up extra hours for days missing are able to use the time in Lieu instead of OT The Board to approve pro-rated benefits for regular/part time employees That the Board approve change in Vision Care. GM Motion carried. Update on Progress GM Motion Carried COMPLETE GM Motion Carried COMPLETE GM Motion Carried. RFP Issued, update in progress GM Motion Carried CFO CFO CFO CFO Motion Carried, Changes to the Policy s in the Employee Handbook are in process Motion Carried, Changes to the Policy s in the Employee Handbook are in process Motion Carried, Changes to the Policy s in the Employee Handbook are in process Motion Carried, Changes to the Policy s in the Employee Handbook are in process Page 2 of 3 Page 12 of 42

14 4.2 FOLLOW-UP ACTION LIST (FUAL) That the Board approve the recommended changes to HUM-011 Windshield Replacement Policy The Board approve Policy FIN-015 Waste Bin Collection Order CFO Motion Carried, Changes to the Policy COMPLETE CFO Motion Carried COMPLETE Page 3 of 3 Page 13 of 42

15 REGULAR REPORT SUBJECT: Interim Financial Statements for the 8 Months Ending August 31, 2015 RECOMMENDATION: That the Interim Financial Statements for the 8 Months Ending August 31, 2015 be accepted for information as circulated. CAO/CFO COMMENTS: The attached financial statements include: Balance Sheet (Statement of Financial Position) Statement of Cash Flows Summary Comparative Income Statement Capital Plan Balance Sheet The balance sheet provides unadjusted results regarding BMS assets and liabilities. Current assets are $21,024,996 including $18,590,428 in cash and marketable securities, $1,786,239 in accounts receivable (> 75% are 30 days or less; 24% are 31 to 60 days), $636,991 in inventory (mostly stockpiled soil for future cover and chemicals for waste water) and $11,339 in prepaid expenses (mostly insurance and software subscription). Net GST collectible of $47, for the period ending August 31, 2015 is included in accounts receivable. As at August 31, 2015, BMS portfolio evaluation report on marketable securities with ATB shows that BMS has $ 4,309, in its Post Closure Liability Account and $ 13,894, in its cash management account. Interest revenue earned from the marketable securities amounted to $79, as at August 31, As per Board Motion, BMS transferred $662,050 from the cash management account to the Post Closure Liability Account in order to fully finance BMS landfill closure liability in the amount of $4,308, Other assets include the Extended Warranty for the new compactor ($39,670) and Deposits on Mizera property ($66,450). 4.3 Financial Report Page 14 of 42

16 REGULAR REPORT Property and equipment include land, buildings and plant and equipment. The property sale to Beaver County was done on July 6, 2015 with proceeds of $302,500. The transaction resulted in a capital gain of $188,100. The Ewerts property deal was done on July 2, 2015 at cost of $316,900. BMS has $35,623,508 in total assets. Current liabilities stand at $191,453 which are mainly accounts payable and accrued liabilities. Bank loans remain none. Accounts payable to various suppliers and service providers amounted to $75, while accrued vacation payable stand at $91, Major suppliers with outstanding accounts include ATB MasterCard $12, for various business expenses, Driven Transport, Inc. for delivery services of waste bins to municipalities, D&D Septic Service $8,988 for portable toilet rentals and septic tank services and Dingman Trucking $5, for Leachate disposal services. Current assets to current liabilities ratio is favorable at times. The landfill closure obligation of $4,265,149 represents the present value of the cost estimate to close the landfill at a future date at the depletion of total landfill capacity. Landfill closure at the end of the landfill s operation is a regulatory requirement. The amount shown is based on 2014 estimates less actual expenditures incurred to date. Total liabilities equal $4,456,602. Total assets to total liabilities ratio is favorable at 7.99 times, and demonstrates BMS s strong financial position. Net assets (equity) equal $31,166,905 including unrestricted accumulated surplus of $8,176,314. This surplus represents the value of accumulated funds and depreciated property and equipment of BMS, after the internally restricted funds of $3,689,460 for the unused capital budget of 2014, $300,000 for member distribution declared in 2013 but remain unpaid and $156,199 that serves as an equipment reserve. A total amount of $1,000,000 was released to members as dividend distribution. No movement in biosolids cost to date. Statement of Cash Flows Cash received from operating activities for the eight month period ending August 31, 2015 was $9,165,580 including operating income of $7,261,588 and decrease in accounts receivable of $2,860,003 decrease in prepaid expenses of $54,424 and payables payments of $807,883. Cash used for investing activities was $8,079,964 including net purchase of securities (cash management account) of $5,252,897 and purchase of capital equipment of $3,406, Financial Report Page 15 of 42

17 Resulting cash position was $481,522. Summary Comparative Income Statement REGULAR REPORT The year-to-date budget has been divided by twelve months (payroll over 26 pay periods). Category revenues to date for Landfill Disposal Contracts are higher than last year by 7.4% or $651,343. This is mainly due to the $1,073, or 16.64% increase in revenue from the City of Edmonton. Landfill Disposal Contracts is above budget by $1,659,878 or 21.3%. However, Landfill Disposal Revenue had decreased by 63.9% as compared to last year. This is mainly because of the continuous decline in revenue from contaminated soil contracts during the first half of the year. Our clients are greatly impacted by the slump in the oil and gas industry. Landfill Disposal Revenue for the eight months is 35.7% lower than budget. Trucking contract revenues are lower in 2015 both as against budget and previous year by 28.3% and 35% respectively. While the City of Edmonton waste volumes are higher, it shows the change in trend moving towards the City hauling the waste rather than BMS. It s a favorable situation for BMS where it continues to receive the waste volume without having to subcontract trucking to AVS. Revenue in $ TOTAL REVENUE 13,217,845 17,450,477 13,400,008 OTHER INCOME 101, , ,336 LANDFILL DISPOSAL REVENUE 2,427,799 6,722,688 3,773,336 MUNICIPAL CONTRACTS 101, , ,664 TRUCKING CONTRACTS 930,784 1,431,816 1,297,336 WASTE BIN REVENUE 193, , ,000 LANDFILL DISPOSAL CONTRACTS 9,463,214 8,811,871 7,803,336 REVENUE 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% YTD Budget 4.3 Financial Report Page 16 of 42

18 REGULAR REPORT Tervita, Revenue from Major customers in $ Parkland, Others, Vermillion, Sustainable Development, Edmonton, Beaver River, Kichton, Ever Green, Edmonton Ever Green Kichton Beaver River Sustainable Development Vermillion Tervita Parkland Others Overall, revenue for the eight month period of $13,217,845 is below last year s level by $4,232,633 or 24.3% due to contaminated soil difference. While the economy is not performing well, BMS revenues are only short versus budget by $182,163 or 1.4% mainly due to increased volume from the City of Edmonton offsetting the lack in trucking, contaminated soil and special waste volumes. In total, year-to-date operating expenses reached $5,956,257, which is below budget by $ 650,367 or 9.8%. All expense categories show below budget spending except for Business Development (above budget by $18,447) due to BMS attendance to the Global Petroleum Show in Calgary AB, Advert, Print & Office Supplies (above by $12,926) due to advertising and printing of scale tickets, Supplies and Materials (above budget by $147,390) due to increase in the following; tires 21.43%, oil, grease, lube and filter 16.42%, parts 75.66%, signs 49.93%, aggregate 70%%, safety supplies and PPE %% and Freight 22.68%. Contracted services is below budget by $601,264 (69.5%) due to limited transactions from AVS trucking. Some variances, e.g., salaries, professional services and other expenses (grants), are timing-related. A total of $48, in foreign currency losses were incurred upon settlement of the invoice for the new compactor and other imports. 4.3 Financial Report Page 17 of 42

19 REGULAR REPORT To ensure safety of all employees and visitors at the site, BMS spent a total amount of $53, in safety supplies and PPE during the eight month period. In order to support the North American Occupational Safety and Health Week (NOASH) during the month of May 2015, BMS spent a total amount of approximately $4,000 in its NOASH week promotional campaign. Included in the other expenses account are the grants paid in lieu of taxes and good neighbor grants. Beaver County received $115, and $31, as grants in lieu of taxes and good neighbor grants, respectively. The Village of Ryley received $63, in good neighbor grants and the Town of Viking received $2, as grants in lieu of taxes. A total amount of $8,500 was incurred for the ISO Safety Certification Program. As compared to prior year, total operating expenses are lower by $522,810 or 8.1%. This is mainly due to the lower professional services and contracted services incurred in 2015 in addition to one time gain on sale of property. Eight month operating income (before amortization) is $7,261,588 which is $3,709,823 or 33.8% below 2014 levels but $468,204 or 6.9% above prorated budget. This level is trending higher at 71.3% of the 2015 full year budget eight months into the year. Major Expenses in $ TOTAL EXPENSES 5,956,257 6,479,067 6,606,624 OTHER EXPENSES 379, , ,528 REPAIRS & MAINTENANCE 190, , ,656 IT SYSTEMS 93, , ,336 CONTRACTED SERVICES 183, , ,264 PROFESSIONAL SERVICES 296, , ,328 RENTALS & LEASES 187, , ,328 SUPPLIES & MATERIALS 1,245,508 1,227,493 1,085,192 SALARIES & WAGES 3,379,521 2,739,738 3,533,992 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Budget 4.3 Financial Report Page 18 of 42

20 REGULAR REPORT Summary Comparative Income Statement in $ Millions TOTAL REVENUE TOTAL EXPENSE OPERATING INCOME Year to Date 2015 Year to Date 2014 Year to Date Budget Capital Plan Capital expenses have been $3,406,798 which is mainly for the purchase of Compactor of $1,026,699, Truck type side loader of $582,400, Two Highway tractor of $175,494 and $182,664, Man-lift of $84,500, Light tower of $18,086, Ford Pick-up of $33,241, fall protection of $20,890, Oreco Wastewater project additional progress billing and capitalized testing costs of $979,996, landfill equipment shed project of $58,582 and additional waste bins of $ 234, A total amount of $3,689,460 capital budget in 2014 was carried-over and appropriately restricted in Financial Report Page 19 of 42

21 REGULAR REPORT Others Major Vendors for Capital and Operating Expenditures including disbursement to Members Total Others Dalco Oilfield Services The Cat Rental Store Village of Holden AMEC Foster Wheeler Environment & Infrastructure Standard Life ATB MasterCard Town of Viking Village Of Ryley Iron Arm Land Services Ltd. AAMD&C Town of Tofield UNIVERSAL HANDLING EQUIPMENT COMPANY (RED DEER) Formula Alberta Ltd. Western Star Trucks (North) Ltd. Local Authorities Pension Plan Finning (Canada) Bruce Shell (1990) Ltd. Beaver County Oreco Canada Corp Humdinger Equipment LTD. 1,859, , , , , , , , , , , , , , , , , , , , ,099, ,508, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, Report/Document: Attached X Available NA X Submitted by: Sebastian Rodolfo Endorsed by: PB Reviewed by: Juvy Ceniza, CMA Reviewers JC/PB 4.3 Financial Report Page 20 of 42

22 Beaver Municipal Solutions Summary Comparative Income Statement (unadjusted) Eight months ending August 31, 2015 Year to Date Actual $ Variance % YTD Budget $ Variance % FY 2015 Year End Forecast % to FY Budget Worst Case Best Case REVENUE LANDFILL DISPOSAL CONTRACTS 9,463,214 8,811, , % 7,803,336 1,659, % 11,705, % 11,896,037 12,933,797 WASTE BIN REVENUE 193, ,215-7, % 220,000-26, % 330, % 261, ,010 TRUCKING CONTRACTS 930,784 1,431, , % 1,297, , % 1,946, % 1,454,473 1,454,473 MUNICIPAL CONTRACTS 101, ,464-29, % 144,664-43, % 217, % 217, ,000 LANDFILL DISPOSAL REVENUE 2,427,799 6,722,688-4,294, % 3,773,336-1,345, % 5,660, % 3,625,395 4,148,325 OTHER INCOME 101, ,423-50, % 161,336-60, % 242, % 250, ,000 TOTAL REVENUE 13,217,845 17,450,477-4,232, % 13,400, , % 20,100, % 17,703,916 19,264,606 EXPENSE SALARIES & WAGES 2,753,676 2,238, , % 2,875, , % 4,314, % 4,313,999 4,313,999 EMPLOYEE BENEFITS 527, ,325 96, % 541,336-13, % 812, % 812, ,000 STAFF TRAINING & DEVELOPMENT 98,286 70,208 28, % 116,664-18, % 175, % 175, ,000 COMMISSION BOARD EXPENSES 39,245 34,982 4, % 63,336-24, % 95, % 95,000 95,000 BUSINESS DEVELOPMENT 68,439 21,803 46, % 49,992 18, % 75, % 75,000 75,000 ADVERT, PRINT & OFFICE SUPPLY 71,590 64,671 6, % 58,664 12, % 88, % 88,000 88,000 TELECOMMUNICATIONS 48,367 55,648-7, % 52,800-4, % 79, % 79,200 79,200 IT SYSTEMS 93, ,810-18, % 106,336-12, % 159, % 143, ,000 PROFESSIONAL SERVICES 296, , , % 373,328-76, % 560, % 560, ,000 RENTALS & LEASES 187, , , % 197,328-9, % 296, % 296, ,000 CONTRACTED SERVICES 183, , , % 601, , % 901, % 244, ,210 SUPPLIES & MATERIALS 1,173,918 1,162,822 11, % 1,026, , % 1,539, % 1,551,050 1,551,050 REPAIRS & MAINTENANCE 190, ,670 73, % 194,656-4, % 291, % 217, ,000 INSURANCE 45,618 36,420 9, % 63,072-17, % 94, % 77,600 77,600 UTILITIES 41,148 56,753-15, % 61,336-20, % 92, % 92,000 92,000 INTEREST EXPENSE 0 34,082-34, % % OTHER EXPENSES 276, ,763 22, % 223,992 52, % 336, % 361, ,000 (GAIN)/LOSS -139, , % 0-139, % , ,923 TOTAL EXPENSE 5,956,257 6,479, , % 6,606, , % 9,910, % 9,040,136 9,070,136 OPERATING INCOME 7,261,588 10,971,411-3,709, % 6,793, , % 10,190, % 8,663,780 10,194,470 Budget Page 21 of 42

23 Beaver Municipal Solutions 2015 Capital Plan 2014 Forecast 2015 Carryover Total 2014 & 2015 Carryover 2015 Budget - New 2015 Budget Carry-over and New Land Land Purchase - 242, , ,500 Paid To Date TOTAL LAND - 242, , ,500 - Buildings Office & Scalehouse Renovation 890, ,000 4,208 Landfill Equipment Shed - 180, , , ,000 58,582 Transfer Station - solar yard lights - 80,000 80,000 80,000 Transfer Station - office trailers 35,000 89, ,000 89,000 TOTAL BUILDINGS 925, ,000 1,274, , ,000 62,790 Equipment Track-type Loader - 582, , , ,400 Kubota-type Tractor Transport 19,389 19,389 - Pressure Washer with Trailer 21,000 21,000 21,000 Highway Tractor - 175, , , ,158 Mechanic Shop - floor jack 1,784 1,784 - Mechanic Shop - heavy duty racking 2,693 2,693 - Mechanic Shop - tractor ramps 2,172 2,172 - Scale (second) Sanding Unit - 7,500 7,500 7,500 Hoist for One-tonne Truck Blade (one-tonne) - 5,000 5,000 5,000 Light Towers (2) 21,360 21,360 42,720 21,360 18,086 Sale of Track-type Loader GMC Sierra - - Ford pickups 103, ,437-33,241 New Truck 46,000 46,000 - Generator Set 4,550 4,550 - Mobile lift - fall protection - 100, ,000 84,500 Pick up (1) - 50,000 50,000 Hauling truck/trailer/pacmor - 610, ,000 Water truck - leachate handling - 300, ,000 Rigid lift device/rail - shop 20,890 20,890 20,890 Allowance for equipment replacement 50,000 50,000 Blinker Sign 24 Stop Solar LED TOTAL EQUIPMENT 201, ,760 1,014,145 1,130,890 1,943,650 1,097,275 Other Stage 5 Landfill East Separation Berm 303, ,063 - Landfill Capping 1,093,700 1,093,700 1,200,000 1,200,000 CAES - initial set-up and first machine - 220, , ,000 - Second Maching - 80,000 80,000 80,000 Server 35,320 35,320 - PacWeigh 50,000 50,000 50,000 Collection Bins Time Tracking / Staff Time Clock Computers & Office Equipment 20,000 20,000 50,000 50,000 Other 7,000 7,000 - TAB filing system 34,181 34,181 - Manhole - 750, ,000 5,978 Additional waste bins - new , , ,060 Paving - 500, ,000 Sediment pond improvements - 300, ,000 Stage 8 design and leachate trmt - 200, ,000 Recreational development - 100, ,000 - TOTAL OTHER 1,493, ,000 1,843,264 3,380,000 3,730, ,038 TOTAL 2,619,649 1,754,260 4,373,909 4,760,890 6,515,150 1,400,103 Additional Approved Budget - Motion Oreco Wastewater 775, ,000 1,600, , ,996 Motion Increase Collection Bin Budget to $120,000 from $50, , ,493 - Motion Mobile Transfer Trailer 75,000 75,000 - Motions / Landfill Compactor 1,030,200 1,030,200 1,030,200 1,026,699 Motion Acreage Waste Bins - 80,000 80,000 80,000 REVISED TOTAL $ 3,580,142 $ 3,689,460 $ 7,269,602 $ 4,760,890 $ 8,450,350 3,406,798 Page 22 of 42

24 Beaver Municipal Solutions Statement of Cash Flows (unadjusted) Eight months ending August 31, 2015 OPERATING ACTIVITIES: Net Operating Income (Loss) 7,261,588 Gain on Sale of Land -188,100 Accounts Receivable 2,860,003 Inventory 38,015 Prepaid Expenses 54,424 Accounts Payable and Accrued Liabilities -807,883 Deferred Revenue - biosolids 0 Landfill Closure and Post Closure -52,468 Net Cash from (used in) Operating Activities 9,165,580 INVESTING ACTIVITIES: Purchase of Marketable Securities - net -5,252,897 Other Assets -39,670 Purchase of Property and Equipment -3,406,798 Proceeds on Sale of Land 619,400 Net Cash from (used in) Investing Activities -8,079,964 FINANCING ACTIVITIES: Accumulated Surplus - Member distribution -1,000,000 Net Cash from (used in) Financing Activities -1,000,000 Increase (Decrease) in Cash and Cash Equivalents 85,615 Cash and Cash Equivalents at Beginning of Period 395,906 Cash and Cash Equivalents at End of Period 481,522 Non Cash Activities Restricted - Unused Capital budget ,689,460 Accumulated Surplus -3,689,460 Page 23 of 42

25 Beaver Municipal Solutions Balance Sheet (unadjusted) as at August 31, 2015 Aug 31, 2015 Dec 31, 2014 ASSETS Increase / (Decrease) CURRENT ASSETS: Amount Percentage Cash 481, ,907 85,615 22% Marketable Securities 18,108,906 12,856,010 5,252,896 41% Accounts Receivable 1,786,239 4,604,866 (2,818,627) -61% Inventory 636, ,006 (38,015) -6% Prepaid Expenses 11,339 65,762 (54,423) -83% TOTAL CURRENT ASSETS 21,024,996 18,597,551 2,427,445 13% OTHER ASSETS 106,120 66,450 39,670 60% PROPERTY AND EQUIPMENT 14,492,392 11,516,894 2,975,498 26% TOTAL ASSETS $ 35,623,508 $ 30,180,895 5,442,613 18% LIABILITIES AND NET ASSETS Increase / (Decrease) CURRENT LIABILITIES Amount Percentage Accounts Payable and Accrued Liabilities 191, ,959 (766,506) -80% Bank Loans TOTAL CURRENT LIABILITIES 191, ,959 (766,506) -80% LANDFILL CLOSURE AND POST CLOSURE OBLIGATION 4,265,149 4,317,617 (52,468) -1% NET ASSETS: Invested in Property and Equipment 11,583,344 11,583,344 (0) 0% Internally Restricted 4,145, ,200 3,689, % Unrestricted - Accumulated 8,176,314 12,865,775 (4,689,461) -36% Accumulated Surplus - Net Operating Income 7,261,588-7,261,588 TOTAL NET ASSETS 31,166,905 24,905,319 6,261,586 25% TOTAL LIABILITIES AND NET ASSETS $ 35,623,508 $ 30,180,895 5,442,613 18% Page 24 of 42

26 Capital Project Update Sept 4, 2015 Reference Project Budget Spent/Committed To Date Project Manager Expected Completion Actual Completion BMS-2015-A CAES $ 300,000 $ 306,408 Tariq July 1, on track Pre-install $18, January 16, 2015 Installation $273, March 16, 2015 Training $8, March 23, 2015 Post install $ March 30, 2015 Secondary Training $ June 1, 2015 Miscellanious $5, BMS-2015-B Leachate Access Manhole $ 750,000 $ 114,282 Meaghan June Investigation and Strategy Report March 4, 2015 February 24, 2015 Specification and Tendering April 7, 2015 April 27, 2015 Award April 30, 2015 May 1, 2015 Construction June 30, 2015 August 19, 2015 BMS-2015-C Equipment Sheds $ 430,000 $ 519,934 Meaghan August Specification and Tendering May 21, 2015 Award May 22, 2015 June 3, 2015 Construction September 21, 2015 BMS-2015-D Transfer Station - Solar Yard Lights $ 80,000 $ - Meaghan June Specification and Tendering March 26, 2015 Delayed Award April 9, 2015 Installation May 5, 2015 BMS-2015-E Transfer Station - Office Trailers $ 89,000 $ - Meaghan July Specification and Tendering May 1, 2015 Delayed Award May 19, 2015 Installation July 10, 2015 BMS-2015-G Sanding Unit $ 7,500 $ - Tariq March 11, 2015 Specification and Tendering February 23, 2015 March 1, 2025 Tender Closing March 2, 2015 March 9, 2015 Award June 19, Delayed Procurement June 22, 2015 BMS-2015-H Truck Blade (1 Ton) $ 5,000 $ - Tariq March 11, 2015 Specification and Tendering February 23, 2015 March 1, 2025 Tender Closing March 2, 2015 March 6, 2015 Award June 19, Delayed Procurement June 22, 2015 BMS-2015-J Mobile lift - fall protection $ 100,000 $ 84,500 Tariq April 30, 2015 Specification and Tendering March 6, 2015 March 6, 2015 Tender Closing March 20, 2015 March 20, 2015 Award March 25, 2015 April 1, 2015 Procurement April 15, completed BMS-2015-K Pick-up $ 50,000 $ 33,241 Tariq March 11, 2015 Specification and Tendering February 23, 2015 March 13, 2015 Tender Closing March 2, 2015 March 27, 2015 Award $33, April 20, 2015 April 21, 2015 Procurement April 28, 2015 Logos, toolbox etc May 5, Completed BMS-2015-L Hauling Truck $ 180,000 $179, Tariq July 31, 2015 *5 month delivery Specification and Tendering $175, January 12, 2015 January 12, 2015 Tender Closing $3, January 26, 2015 January 26, 2015 Award February 4, 2015 February 4, 2015 Procurement May 1, Completed Page 25 of 42

27 Reference Project Budget Spent/Committed To Date Project Manager Expected Completion Actual Completion BMS-2015-M Trailer $ 120,000 $ 114,694 Tariq April 30, 2015 Specification and Tendering March 20, 2015 April 14, 2015 Tender Closing April 3, 2015 April 27, 2015 Award April 17, 2015 August 11, 2015 Procurement BMS-2015-N PacMor $ 310,000 $ 319,448 Tariq December 25, 2015 *7-9 month delivery Research March 13, 2015 Specification and Tendering April 24, delayed Tender Closing May 7, 2015 Award $319, May 10, 2015 August 4, 2015 Procurement 4 months Retender August 27, 2015 Tender Closing September 8, 2015 Award 2 September 11, 2015 Procurement 6 months BMS-2015-O Leachate Handling Truck $ 300,000 $ - Meaghan December Specification and Tendering May 1, 2015 Delayed Award May 29, 2015 Procurement December 11, 2015 BMS-2015-P Landfill Capping $ 1,200,000 $ 738,439 Tariq September 1, Landfill Capping $ 8,990 Conceptual Design $ March 31, 2015 Design and Specification $35, April 15, 2015 Tendering June 16, delayed Award $693, July 5, on track Project Start July 30, delayed Close-out October 10, 2015 Reporting December 1, 2015 BMS-2015-R Waste Collection Bins $ 360,000 $ 344,300 Tariq April 1, 2015 Research: Bin Roll-out plan January 14, 2015 February 1, 2015 Specification and Tendering January 30, 2015 February 2, 2015 Tender Closing February 20, 2015 February 20, 2015 Award March 16, 2015 April 22, 2015 Follow-up Ongoing Procurement August 10, 2015 *staggered delivery BMS-2015-S Paving & Improvments $ 500,000 $ 137 Meaghan July Specification and Tendering May 8, 2015 August 26, 2015 Award June 15, 2015 Construction July 31, 2015 Delayed BMS-2015-T Sediment Ponds Improvements $ 300,000 $ 2,021 Meaghan/Tariq August Tender and Construction NE Pond March 31, 2015 Training/Consulting/Meetings August 13, 2015 Scope of Work Development August 27, 2015 BMS-2015-U Stage 8 Design $ 100,000 $ - Tariq/Meaghan September RFP Proposal development April 8, 2015 RFP Proposal tendering July 21, 2015 RFP Closing August 18, 2015 Award August 21, 2015 Construction December 1, 2015 Complete cell June 1, 2016 BMS-2015-V Leachate Treatment $ 100,000 $ - Meaghan/Tariq April Training/Consulting/Meetings March 31, 2015 Data Collection (Annual Report) February 13, 2015 March 23, 2015 Scope of Work Development April 20, 2015 BMS-2015-W Greenhouse Gas Report $ - $ - Meaghan June 1, 2015 May 29, 2015 Page 26 of 42

28 Reference Project Budget Spent/Committed To Date Project Manager Expected Completion Actual Completion BMS-2015-Z ISO 14001:2015 $8, Tariq -Start: March 29th Training $8, May 20, 2015 List of Aspects and impacts July 31, 2016 EMS Draft manual October 30, 2015 Expected recertification August 8, 2016 BMS-2015-AA Closure Liability Calculations $ - $ - Tariq February 23, completed Oreco $ 825,000 $ 196,852 Meaghan/Tariq December Factory Acceptance Testing March 4, 2015 March 4, 2015 Site Acceptance Testing April 8, 2015 April 16, Day Training Period July 8, 2015 BMS-2015-AC Landfill office Internet $ - $ 400 Tariq May-15 Rogers Cellular Internet $ 400 February 23, 2015 February 23, 2015 Local Wireless Internet $ 3,234 May 20, 2015 June 24, 2015 BMS-2015-AE Landfill Storage Container $ - $ 86,291 Tariq October 31, 1931 Research August 10, 2015 Award $ 86,291 August 19, 2015 Electrical and other prep October 15, 2015 Procurement October 20, 2015 Total: $ 5,281,500 $ 3,048,738 Page 27 of 42

29 4.4 OPERATIONS UPDATE Landfill Capacity Landfill GPS Fall groundwater monitoring Collection New Bin Delivery 2015 Litter Crew progress Safety August Safety Update Air Quality Study COR Audit scheduled for October Page 28 of 42

30 Communications September 2015 Internal Communications Digital screen update Intranet update City of Edmonton Tour Radio Communication Course Events: o Fall Staff Event o Christmas Party External Communications 2014 Annual Report CAO meetings Phone changes Arranging for photo ops Page 29 of 42

31 5.1 BOARD EVENTS CALENDAR DATE(S) TIME EVENT LOCATION COMMENTS Aug :00 8:00 pm Board Meeting Beaver County Regular Meeting Chambers Sept th Annual Alberta Recycling Conference Whitecourt, AB If interested in attending this conference please contact Marilyn at B.M.S Ext: 117 Sep :00 8:00 pm Board Meeting Tofield Chambers Regular Meeting Sep 30 Oct Recycling Council of Alberta 2015 Annual Waste Reduction Conference Banff, AB Oct :00 8:00 pm Board Meeting Beaver County Chambers Oct :00 7:00 pm PAC Meeting Beaver County Chambers Nov Director s Education Program 2015 RCA Waste Reduction Conference, held jointly with the Conference on Canadian Stewardship. Regular Meeting ICD, Edmonton Application Deadline Oct 2, 2015 Mod 1 Nov 6-8, Mod 2 Jan 15 17, 2016, Mod 3 Mar , Mod 4 June 3 5, 2016 Nov :00 8:00 pm Board Meeting Holden Chambers Regular Meeting Nov :00 7:00 pm PAC Meeting Holden Chambers Dec 5, 2015 TBD BMS Annual Christmas Party Ryley Community Hall If you wish to attend please contact Anne Ruzicka Dec :00 8:00 pm Board Meeting Beaver County Regular Meeting Page 30 of 42

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34 REQUEST FOR DECISION (RFD) SUBJECT: Appointment of Financial Auditors to the Commission for Fiscal Year 2015 RECOMMENDATION: That Yaremchuk and Annichiaricco Chartered Accountants be appointed as external financial auditors to the Board of Directors of the Beaver Regional Waste Management Services Commission for the 2015 fiscal year to conduct such audit services as required to comply with the requirements of the Municipal Government Act. CFO COMMENTS: Yaremchuk and Annicchiarico Chartered Accountants (Y & A) have prepared the audit for the Commission for several years. Given the many changes the Commission is undergoing, an auditor s familiarity with the Commission s operations and historical financial performance is crucial. Management has cooperated closely with Y & A over the past two years and is confident in the abilities of this firm. Accordingly, we recommend their engagement by the Board for the work of the 2015 audit. RECOMMENDATION Report/Document: Attached Available Nil KEY ISSUE(S)/CONCEPTS DEFINED: See CFO comments. X RELEVANT POLICIES: Budget 2015 STRATEGIC RELEVANCE: Compliance to legislation. DESIRED OUTCOME(S): Approval of the recommendation as presented. RESPONSE OPTIONS: 1. Accept recommendation 2. Request more information, if questions arise in presentation, and request re-submission. 3. Reject recommendation. RFD Beaver Municipal Solutions Page 33 of 42

35 REQUEST FOR DECISION (RFD) PREFERED STRATEGY: Response 1. GENERAL: See CFO comments. ORGANIZATIONAL: See GM/CAO comments. FINANCIAL: Budget 2015 FOLLOW UP ACTION: Issue letter of appointment COMMUNICATION: See above OTHER COMMENTS: IMPLICATIONS OF RECOMMENDATION: Submitted by: Juvy Ceniza, CPA, CMA Endorsed by: Reviewed by: Pierre Breau, P.Eng Reviewers RFD Beaver Municipal Solutions Page 34 of 42

36 REQUEST FOR DECISION (RFD) SUBJECT: Additional Release of Surplus Funds in 2015 RECOMMENDATION: 1. That Board approve the release of $300,000 dividend in the restricted account to unrestricted surplus. 2. That the Board approve the release of an additional $2.3 million surplus for 2015 in accordance with Ministerial Order No. L:139/15 and BMS Policy FIN-011. CFO COMMENTS: With the recent approval of Municipal affairs, BMS can now release an additional $2.3 million of surplus funds for This covers $2 million from 2014 operations and the $300,000 declared in 2013 but never released. The $300,000 dividend has been transferred to restricted account per motion and needs to be put back to unrestricted for inclusion in the additional release. Amounts to be released to each member municipality will be determined as per BMS Policy FIN- 011 Distribution of Surplus Funds to Municipal Members (attached). The computation below is based on 2011 Census data available: 1/3 Equally 2/3 based on Population Cheque Amount Beaver Co $ 153, $ 891, $ 1,044, Ryley $ 153, $ 77, $ 231, Holden $ 153, $ 59, $ 213, Viking $ 153, $ 163, $ 316, Tofield $ 153, $ 341, $ 495, $ 766, $ 1,533, $ 2,300, RFD Beaver Municipal Solutions Page 35 of 42

37 REQUEST FOR DECISION (RFD) 2011 Census Population % Beaver Co % Ryley % Holden % Viking % Tofield % All % RECOMMENDATION Report/Document: Attached Available Nil KEY ISSUE(S)/CONCEPTS DEFINED: See CFO comments. X RELEVANT POLICIES: FIN-011 STRATEGIC RELEVANCE: Compliance to legislation. DESIRED OUTCOME(S): Approval of the recommendation as presented. RESPONSE OPTIONS: 1. Accept recommendation 2. Request more information, if questions arise in presentation, and request re-submission. 3. Reject recommendation. PREFERED STRATEGY: Response 1. GENERAL: See CFO comments. ORGANIZATIONAL: See GM/CAO comments. FINANCIAL: Budget 2015 FOLLOW UP ACTION: Issue letter of appointment COMMUNICATION: See above OTHER COMMENTS: IMPLICATIONS OF RECOMMENDATION: RFD Beaver Municipal Solutions Page 36 of 42

38 REQUEST FOR DECISION (RFD) Submitted by: Juvy Ceniza, CPA, CMA Endorsed by: Reviewed by: Pierre Breau, P.Eng Reviewers RFD Beaver Municipal Solutions Page 37 of 42

39 FIN-011 Beaver Municipal Solutions (BMS/BRWMSC) Commission Policy Distribution of Surplus Funds to Municipal Members: Date Approved by Board: October 15, 2013 Lead Role: CAO/GM Resolution No.: Replaces: N/A Last Review Date: N/A Next Review Date: October 2016 Administrative Responsibility: CAO/GM Revision Date: September 3, 2015 Policy Statement Beaver Municipal Solutions (BMS) establishes the following policy regarding the distribution of Commission surplus funds to the Commission s municipal members: Policy Guidelines Guidelines 1. Commission surplus funds available for distribution to the Commission municipal members will be declared, from time to time, by the Board upon recommendation of the General Manager/Chief Administrative Officer. 2. Surplus funds available for distribution to the Commission municipal members will only be released to the municipal members upon approval by the Minister of Municipal Affairs in accordance with the Commission s founding regulation. 3. Declared surplus funds available for distribution to the municipal members will be placed in a restricted surplus fund for the purpose of distribution pending approval from the Minister of Municipal Affairs. 4. Upon approval of the Minister of Municipal Affairs, surplus funds will be released to the municipal members within thirty (30) days. 5. One-third (1/3) of the declared surplus funds will be divided equally among the municipal members of the Commission. 6. Two-thirds (2/3) of the declared surplus funds will be divided based on the population distribution of the municipal members within the Beaver region as presented by the latest Statistics Canada census report. 7. Surplus funds that are not accepted by a municipal member will be returned to the restricted surplus fund for later distribution in accordance with this Policy. FIN-011 Beaver Municipal Solutions Page 1 of 1 Page 38 of 42

40 REQUEST FOR DECISION SUBJECT: Mobile Transfer Station Suspension of Service RECOMMENDATION: Management recommends that mobile transfer station service to Bruce and Holden be suspended effective October 2, COMMENTS - VICE PRESIDENT, OPERATIONS: As part of BMS s long-term community benefit program, waste services for rural residents in the areas surrounding Bruce and Holden have been offered through a mobile transfer trailer. The trailer accepts normal household garbage. Special or bulky wastes (construction and demolition waste, used paint, tires, white goods, etc.) will still need to be hauled to the Ryley Landfill for recycling or disposal as per current waste guidelines. The trailer is supervised by an attendant to provide opportunity to collect feedback from users, educate residents on the waste disposal options currently available and assist them with waste questions. During the June Board meeting, Operations recommended the term of service be extended to October 1, 2015 to ensure BMS provides more than sufficient opportunity for stakeholders to use, evaluate and comment on the temporary service. Further, it would provide confidence to the Board that more than adequate opportunity was provided with respect to the mobile station. According to the station attendant, less than 5 people use the station while it is located in Holden while 1 2 people use it while located in Bruce. Further, only 5.1 tonnes of waste have been collected by the station in approximately 10 months of service. In consideration of the very low level of use for the mobile station, management is recommending the mobile transfer station schedule not be continued past October 1, RFD Page 39 of 42

41 REQUEST FOR DECISION RECOMMENDATION Report/Document: Attached Available Nil X KEY ISSUE(S)/CONCEPTS DEFINED: See Vice President, Operations comments. RELEVANT POLICIES: Budget 2015; STRATEGIC RELEVANCE: Stakeholder Consultation DESIRED OUTCOME(S): Approval of the recommendation as presented. RESPONSE OPTIONS: 1. Accept recommendation 2. Request more information, if questions arise in presentation, request re-submission. 3. Reject recommendation. PREFERED STRATEGY: Response 1. IMPLICATIONS OF RECOMMENDATION: GENERAL: See Vice President, Operations comments. ORGANIZATIONAL: See Vice President, Operations comments FINANCIAL: FOLLOW UP ACTION: Suspend service. COMMUNICATION: To be determined in consultation with affected stakeholder groups. OTHER COMMENTS: Submitted by: Aaron Hills, VP - Operations Endorsed by: Reviewed by: Pierre Breau, P. Eng., CAO Reviewers: 7.3 RFD Page 40 of 42

42 REQUEST FOR DECISION SUBJECT: Authorization for 2016 Capital Equipment Purchase RECOMMENDATION: It is recommended that authorization for 2016 capital equipment purchases be granted as follows: One (1) Pakmor HLR 33 collection body $140, Two (2) 2016 Autocar ACX64 chassis $423, Larger Side Door $3, Liquid Clean Out Contingency $1, $31, Subtotal $600, All items to be purchased from Superior Truck Equipment Ltd. located in Calgary. Delivery and expense of these items would be in GST to be added at time of purchase. COMMENTS - VICE PRESIDENT, OPERATIONS: The poor condition of the collection fleet has negatively impacted our service levels provided to residents of Beaver County. On four occasions in 2015, all three trucks have been parked in the mechanics shop for repair at the same time. To address these service interruptions and to ensure collection staff can consistently remove garbage from residents, reliable equipment is required. To address this equipment issue, as part of the 2015 capital equipment purchase budget, one new collection truck (Pakmor HLR 33 body with 2016 Autocar ACX64 chassis) has been ordered from Superior Truck Equipment Ltd. for a price of approximately $319,448 plus contingency of $5,000 (GST not included). Considering the delivery time for a new collection truck is approximately 9 months, Operations is recommending to place an immediate order for a second new collection truck (same model as noted above) so it can be received in April May Delivery time for a chassis is approximately 6 months meaning receipt could be made in January February 2016 with an order being placed (same model chassis as noted above) in September The contingency is required to cover items during assembly of collection body and chassis including hydraulic hose placement, ladder installation, wiring and other miscellaneous items that the vendor is not able to provide a cost for until the collection body and chassis are being assembled. This request does not include cost to install the used Pakmor body onto the new chassis. This cost will be included in the 2016 capital budget. 7.4 RFD

43 REQUEST FOR DECISION A DRAFT 5-year equipment replacement plan has been developed and is attached to this RFD to illustrate the impact on the 2016 capital equipment purchase plan. Also attached is the Recommendation to Purchase prepared by Tariq Medina, Assistant Process Engineer. RECOMMENDATION Report/Document: Attached Available Nil X KEY ISSUE(S)/CONCEPTS DEFINED: See Vice President, Operations comments. RELEVANT POLICIES: Budget 2016; STRATEGIC RELEVANCE: Stakeholder Collection service improvements DESIRED OUTCOME(S): Approval of the recommendation as presented. RESPONSE OPTIONS: 1. Accept recommendation 2. Request more information, if questions arise in presentation, request re-submission. 3. Reject recommendation. PREFERED STRATEGY: Response 1. IMPLICATIONS OF RECOMMENDATION: GENERAL: See Vice President, Operations comments. ORGANIZATIONAL: See Vice President, Operations comments FINANCIAL: Budget 2016 FOLLOW UP ACTION: Place order with successful vendor. COMMUNICATION: OTHER COMMENTS: Submitted by: Aaron Hills, C.E.T., VP - Operations Endorsed by: Reviewed by: Pierre Breau, P. Eng., CAO Reviewers: 7.4 RFD