AGENDA (FINAL) BMS BOARD MEETING OCTOBER 23, 6:00PM

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1 REGULAR MEETING 1. Call to Order AGENDA (FINAL) BMS BOARD MEETING OCTOBER 23, 6:00PM 2. Additions/ Deletions to the Agenda 4.5 Director Appointments 7.6 Employee Handbook Policy Review Clause Policy FIN-013 Grants to Not-for Profit Community Organizations. 3. Reading and Approval of the Minutes: 3.1 The Minutes of the Regular Meeting of September 11, Regular Reports (Consensus Agenda): 4.1 Strategic Plan Priorities Chart Update 4.2 Follow-up Action List (FUAL) 4.3 Financial Report Third Quarter Jan 1 Sep 30, Policy FIN-013 Grants to Not-for Profit Community Organizations (Advertisement & Application) 5. Conferences/Training: 5.1 Board Events Calendar updated 6. Correspondence: 6.1 n/a 7. Board Matters 7.1 RFD - Scale Improvements Project, Award to Formula Alberta 7.2 RFD - Compactor Purchase 7.3 RFD - Beaver Regional Partnership Funding of Due Diligence Study regarding Organizational Change. 7.4 BDR - Community Impact Study Municipal Member/Public Comments. 7.5 RFD - Beaver Heritage & Agricultural Society Lease 8. In Camera Session: 8.1 FOIP 17 (1), 19 (1) Nora Sargent, invitee from Hay Group 9. Motions Arising From In-Camera Session 9.1 As required AGENDA Beaver Municipal Solutions

2 AGENDA (FINAL) BMS BOARD MEETING OCTOBER 23, 6:00PM 10. Meeting evaluation 10.1 Director Form 11. Adjournment: 11.1 Motion for Adjournment AGENDA Beaver Municipal Solutions

3 BEAVER REGIONAL WASTE MANAGEMENT SERVICES COMMISSION REGULAR MEETING September 11, 2014 Beaver County Council Chambers 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/Chief Administrative Officer Aaron Hills Vice-President, Operations Juvy Ceniza, CMA Director, Finance/Acting Chief Financial Officer Sebastian Rodolfo - Controller Tina Courtney Administration Assistant GUESTS present: Dennis & Elaine Wood Lonnie Lauber and Terry Mangneson 1. Call to Order Chairman Yarham called the meeting to order at 5:50 p.m. 2. Additions/Deletions to the Agenda 7.6 Friends of Holden School Grant application 7.7 Viking Families 4 Fun 7.8 Beaver Heritage & Agricultural Society MOVED by DIR Ducherer that the Agenda be approved as amended. CARRIED 3. Reading and Approval of the Minutes 3.1 The Minutes of the Regular Meeting of July 17, MOVED by DIR Ducherer that the minutes of the Regular Meeting of July 17, 2014 be approved. CARRIED 4. Regular Reports (Consensus Agenda) 4.1 Follow-up Action List (FUAL) updated 4.2 Financial Report 4.3 Strategic Priorities Chart 4.4 FIO Replacement (New) Bins for Municipal Members 4.5 FIO Credit Card Approval Rural Bin Customers MOVED by DIR Marko that the Regular Reports (Consensus Agenda) be accepted as presented For Information Only. CARRIED B.R.W.M.S.C./BMS Regular Meeting September 11,

4 5 Conferences/Training 5.1 Board Events Calendar 6. Correspondence 6.1 Beaver County Bruce Bins and Transfer Station 7. Board Matters 7.1 RFD Mobile Transfer Bin Solution for Bruce and Holden MOVED by DIR Marko for the recommendation preparation and use of a temporary mobile transfer bin solution to service rural residents surrounding the Hamlet of Bruce and Village of Holden. Purchase amount not to exceed $75,000 (trailer, truck, related stairs, equipment, decals) plus the direct cost of labor (attendant) at an approximate cost of $800 / week. Normal operational cost will be absorbed by Beaver Municipal Solutions. CARRIED 7.2 RFD Review of Community Impact Study Request for Proposals MOVED by DIR Ducherer for the recommendation of the draft RFP of a Community Impact Study to be reviewed by Municipal Members - CAO s and direct a revision. Return for Board meeting on October 23 rd, CARRIED 7.3 RFD Landfill Compactor Tender 2015 Pre-Budget Approval MOVED by DIR Conquest for issuance of a tender with the intent to purchase a current model Waste Compactor for delivery in 2015 & authorize $1.25 million of the 2015 Capital Budget. Management will report the final price at a future Board meeting with a second RFD to approve the award to the successful vendor. CARRIED 7.4 RFD Employee Benefit Program Change in Benefit Plan Provider MOVED by DIR Ducherer for the recommendation to change plan provider from Encon to Standard Life. The target effective date is October 1 st, CARRIED 7.5 RFD Purchase of Additional Waste Bins MOVED by DIR Conquest to increase the 2014 budget in the amount of $80,000 to be used to purchase new waste bins or refurbish old waste bins. These bins will be provided to residents currently on the rural waste bin waiting list. CARRIED B.R.W.M.S.C./BMS Regular Meeting September 11,

5 7.6 Friends of Holden School Grant application (See 7.7 below) 7.7 Viking Families 4 Fun MOVED by DIR Ritchie to entertain a 2 nd round of grant applications now until October. Applicants that have previously received a grant for this year are not eligible. Policy review for next year. CARRIED 7.8 Beaver Heritage & Agricultural Society In-Camera. FOIP 27(1) 8. In-Camera Session MOVED by DIR Conquest to go In-Camera at 6:01 p.m. CARRIED MOVED by DIR Duchere to go Out-of-Camera at 6:26 p.m. CARRIED MOVED by DIR Ritchie to go In-Camera at 8:09 p.m. Carried MOVED by DIR Conquest to go Out-of-Camera at 9:21 p.m. CARRIED 10. Meeting Evaluation 10.1 Director Form 11. Adjournment 11.1 Motion for Adjournment MOVED by DIR Marko to adjourn the meeting at 9:22 p.m. CARRIED The next regular meeting of the Board will occur on October 23, 2014 at 6:00 p.m at the Beaver County Council Chambers. _ Chairperson CAO/GM B.R.W.M.S.C./BMS Regular Meeting September 11,

6 STRATEGIC PRIORITIES CHART Summary Strategic Plan Actions & Timeline ENTERPRISE RISKS STATUS Complete Safety Manual and Certification Dec 2014 In Progress CoR Audit planned Oct 27/2014 Complete environmental audit re-certification Dec 2015 In Progress Pursue additional lines of business to offset reliance on MSW and contaminated soil waste Immediate 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 Sept 2014 Apr 2014 Sept 2014 May 2014 Jun 2014 Dec 2014 STATUS Complete no word from Lac La Biche on future plans In Progress Signed Evergreen in May; Beaver River hauling contract being considered; hauler interest in asbestos disposal options On Hold excess contaminated soil being received directly at this time Complete In Progress CVIP registration is in place, to do more work for CoE and others, need to consider garage expansion BMS Nutrients biosolids to nutrients o Submit CCEMC EOI proposal Feb 2014 May 2014 May 2014 Complete Complete N/A 4.1 RFD Beaver Municipal Solutions

7 STRATEGIC PRIORITIES CHART o o o o Complete existing Lyons application If EOI successful, submit FPP Confirm municipal contracts 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 May 2014 Dec 2014 Apr 2014 Apr 2014 As required Immediately Immediately Mar/Apr/14 Jul/Aug/14 Apr 2014 Complete Pending Funding application with Lystek unsuccessful and CoE and Alberta Capital Region Wastewater not ready at this time for biosolids disposal to BMS; doing conceptual designs for Ryley and Holden sites inhouse with Lystek only at this time to confirm capital costs before any other steps In Progress AITF independent research shows promise, but requires BMS to source large amounts of C & D waste; discussions with haulers for appropriate tipping fees pending Complete Complete In Progress In Progress - Pilot and prototype plants (Apex Oil) can treat silt ponds and sewage lagoons, and leachate (with some add-ons) Will pursue these treatments to meet required needs at landfill site In Progress BMS funding members due diligence study on organizational options 4.1 RFD Beaver Municipal Solutions

8 STRATEGIC PRIORITIES CHART STAKEHOLDER RELATIONS STATUS Receive M.A approval re surplus (dividers) Imminent Complete Declare 2014 dividends Apr 2014 Complete Engage consultant to review dividend distribution policy and good neighbor policy May 2014 In Progress requested member feedback on draft RFP; discussion on Oct 23/2014 Review and recommend policy changes Nov 2014 Nov 20/2014 Implement Public Advisory Committee Apr 2014 On hold contacting candidates who indicated interest Discuss LUB and Centre of Excellence in Environment with Beaver County May 2014 Pending waiting for Beaver Co industrial park committee meeting Expand space for office staff May 2014 Complete office space changes at shop complete MEMBER COLLECTION STATUS SYSTEM & TRANSFER STATIONS Presentations to Councils Apr 2014 Delayed Aaron Hills has met with CAO s regarding collection issues; have placed replacement bins; mobile transfer station being built Public open houses Sept 2014 Pending first with Beaver Co re transfer sites waiting for date Propose solutions to members Nov 2014 Waiting for feedback HUMAN RESOURCES STATUS Engage HR consultant Mar 2014 Complete Hay Group evaluation complete Present Jun 2014 In Progress Oct 23/2014 recommendation Roll-out program Sept 2014 Delayed pending Board approval, likely for 2015 budget 4.1 RFD Beaver Municipal Solutions

9 4.2 FOLLOW-UP ACTION LIST (FUAL) DATE REPORT WHO ACTION (to/via) TARGET (Status) Mar 15/12 RFD Trademark GM To legally register trademark In process registration for Beaver Municipal Solutions name, icon and tag line Beaver Municipal Solutions June 5/12 Risk Management report CFO Per Policy FIN-004, provide Board with report on yearly claims, and recommended risk management procedure improvements Oct Mizera property GM Original agreement under review In Progress for cancellation PAC Membership Confirmation GM Further advertising for the PAC is In Progress required. If Board members are aware of anyone with appropriate expertise, they are to direct all inquiries to the GM for further information Director Remuneration GM Develop a new policy and present to the Board for review and Delayed MOVED by DIR Ritchie that Option 2: Request for more information to be provided on the tractors. Do the area museums want them? Approval of joint venture agreement with Lystek International GM GM approval. Local museums contacted. Pending response. Agreement to be executed by Lystek In Progress COMPLETE Purchase of waste water treatment unit Consulting Report Good Neighbour Grant Policy GM GM Execution of order and financing agreement Community Impact Study sent out to Municipalities for review. In Progress

10 4.2 FOLLOW-UP ACTION LIST (FUAL) DATE REPORT WHO ACTION (to/via) TARGET (Status) 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 Grant in Lieu of Taxes Town of Viking $ CFO Cheque issued COMPLETE Awarded landfill closure cap GM Work in Progress COMPLETE contract to Iron Arm Land Services, Ltd. - $915, GST Mobile Transfer Bin Solution for Bruce VPO Equipment to be purchased; and Holden attendants to be assigned Landfill Compactor Tender 2015 Pre- VPO Tender closed October 2/ Budget Approval Employee Benefit Program Change in CFO Rollout October 1/ Benefit Provider Purchase of Additional Waste Bins VPO Pending evaluation of removal, surplus bins Entertain a 2 nd round of Grant applications GM Accepting applications until the end of November Beaver Heritage & Agricultural Society Lease GM RFD for Board Meeting held to discuss lease extension.

11 REGULAR REPORT SUBJECT: Interim Financial Statements for the 9 Months Ending September 30, 2014 RECOMMENDATION: That the Interim Financial Statements for the 9 Months Ending September 30, 2014 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 $16,876,381, including $12,403,881 in cash and marketable securities, $3,793,206 in accounts receivable (> 91% 30 days or less), $645,826 in inventory (mostly stockpiled soil for future cover) and $33,468 in prepaid expenses (mostly insurance and software subscription). Deposits on property, $66,450, are prior payments toward Mizera property to be acquired in 2016, subject to current negotiations. Property and equipment include land, buildings, plant and equipment, including prior years purchases and the first nine months of This also includes the $775,000 (before GST) deposit for the waste water equipment paid to Oreco Canada. Total assets of BMS are $30,610,793. Current liabilities are $1,823,179 and include $361,283 in accounts payable and accrued liabilities, $695,396 for a demand loan and $766,500 business term loan (ATB Financial). Current assets to current liabilities ratio is favourable at Financial Report

12 REGULAR REPORT The landfill closure obligation of $4,954,963 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 2013 estimates less actual expenditures incurred to date (mainly for capping). The amount is not subject to a restricted reserve at this time. Total liabilities equal $6,778,142. Total assets to total liabilities ratio is favourable at 4.52, and demonstrates BMS s strong financial position. Net assets (equity) equal $23,832,650 including unrestricted accumulated surplus of $12,880,753. This surplus represents the value of accumulated funds and depreciated property and equipment of BMS, after the $1,000,000 distribution made to member municipalities in June. There are internally restricted funds of $456,199 for an equipment reserve and $300,000 distribution of surplus. Expense claimed against Deferred revenue for the biosolids demonstration project has been fully deducted resulting in a variance of $17, This variance will be recognized as an expense in our records. An additional $70,000 for the Willow/Forage Management remains unbilled by our contractor and will be part of BMS operating expenses in Statement of Cash Flows Cash received from operating activities for the nine month period ending September 30, 2014 was $9,876,389 including operating income of $12,561,575 and increase in accounts receivable of $1,136,765, decrease in prepaid expenses of $14,401 and payables payments of $864,248. Cash used for investing activities was $8,306,461, including net purchase of securities (cash management account) of $6,949,282, and purchase of capital equipment of $1,357,179. Cash used for principal repayment of the demand loan was $1,186,138. Accelerated blended monthly payments of $135,000 will continue through to the end of 2014, reducing the amount outstanding on the demand loan to less than $300,000. Resulting cash position was $571,162. Overall cash balances remain positive and virtually all the Cell 5 construction expenses have been paid (except for the $10,500 Howitt holdback). Summary Comparative Income Statement The year-to-date budget plan has been divided by twelve months (payroll over 26 pay periods). 4.3 Financial Report

13 REGULAR REPORT Category revenues to date for Landfill Disposal Contracts are $9,956,884 versus pro-rata 9 month plan of $4,462,124 (above budget 123.1%). Bulk of the revenues came from the City of Edmonton and Evergreen. Forecast by the end of the year expected at $11,799,871 (higher than budget by $5,850,371) due to continued volumes expected from these customers. Category revenues to date for Landfill Disposal Revenue are higher than budget by $2,860,287 (or 60.8%) due primarily to contaminated soil tonnages received from the Chapelle real estate project and the Rogers Arena project. Revenue forecast by year end projected to be $8,219,828 on the continued strength of contaminated soil deliveries. Revenue September 30, 2014 Other Income $162K Landfill Disposal Revenue $7.6M Landfill Disposal Contracts $10M Municipal Contracts $147K Trucking Contracts $1.6M Waste Bin Revenue $238K 4.3 Financial Report

14 REGULAR REPORT REVENUE FROM MAJOR CUSTOMERS IN $ MILLIONS Edmonton, 8.40 Bluebird, 0.73 Total Revenues, Kichton, 2.20 Ever Green, 1.40 DeFord, 1.10 Others, 3.80 Enbridge, 1.30 Tervita, 0.64 Overall, revenue for the nine month period of $19,692,752 is above plan by $8,611,504, or 77.7%. We expect the trend to continue and end the year $8,003,199 higher than the budget to $22,778,199. In total, year-to-date operating expenses of $7,131,177 are over budget by $1,797,074 or 33.7%. Lower repairs, maintenance and insurance costs are partly offset by additional costs in print supplies (scale tickets), telecommunications (portable radios), equipment rentals and contracted services related to the Chapelle and Arena projects. Professional services include $271,646 in bio-solids management $253,955 of which is offset by revenues. Total expenses by year end is expected to reach $9,218,200. Nine month operating income (before amortization) to September 30, 2014 is $12,561,575 which is $6,814,430 or 118.6% above prorated budget. This also exceeds the full year budget of $7,568,000 and as such, yearend forecast has been revised to $13,559,999. This is $5,991,999 above budget due to strong revenues and controlled spending. 4.3 Financial Report

15 REGULAR REPORT SUMMARY COMPARATIVE INCOME STATEMENT IN $ MILLIONS Year to Date Year to Date Projected Year End Projected Year End TOTAL REVENUE TOTAL EXPENSE OPERATING INCOME 4.3 Financial Report

16 REGULAR REPORT MAJOR EXPENSES IN $ MILLIONS TOTAL EXPENSE OTHER EXPENSES IT SYSTEMS REPAIRS & MAINTENANCE RENTALS & LEASES CONTRACTED SERVICES PROFESSIONAL SERVICES SUPPLIES & MATERIALS SALARIES & WAGES Capital Plan Capital expenses have been $1,357,179, including the Oreco equipment, pickup trucks, office renovation costs, and deposit on scalehouse trailer. Additional forecast expenses on the cell 5 separation berm will be offset by below budget tender results on the track loader replacement (awarded to Finning). Accordingly, we forecast to meet the capital plan target, exclusive of the wastewater equipment project. 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

17 Beaver Municipal Solutions 2014 Capital Plan Nine months ending September 30, Approved Budget 2014 Forecast Year to Date Land Land Purchase 242, ,500 Buildings Office & Scalehouse Renovation 350, , ,000 Landfill Equipment Shed 180, ,000 Transfer Station - solar yard lights 80,000-80,000 Transfer Station - office trailers 90,000 5,199 90,000 Equipment Track-type Loader 750, ,400 Kubota-type Tractor Transport 22,000 19,389 22,000 Pressure Washer with Trailer 21,000-21,000 Highway Tractor 150, ,000 Mechanic Shop - floor jack 2,000-2,000 Mechanic Shop - heavy duty racking 2,000-2,000 Mechanic Shop - tractor ramps 2,000-2,000 Scale (second) 200, ,000 Sanding Unit 7,500-7,500 Hoist for One-tonne 7,500-7,500 Truck Blade (one-tonne) 5,000-5,000 Light Towers (2) 45,000 21,360 45,000 Sale of Track-type Loader (100,000) - (100,000) 2007 GMC Sierra - 9,900 9,900 Ford pickups 103,437 Other Stage 5 Landfill East Separation Berm 250, , ,000 Landfill Capping 1,200,000-1,200,000 CAES - initial set-up and first machine 200, ,000 - Second Maching 80,000-80,000 Server 80,000-70,000 PacWeigh 50,000-50,000 Collection Bins 50,000-50,000 Time Tracking / Staff Time Clock 5,000-5,000 Computers & Office Equipment - 11,679 10,000 Oreco Canada - 775,000 1,900,000 Other 7,912 TOTAL $ 3,971,500 $ 1,357,179 $ 5,783,800

18 Beaver Municipal Solutions Balance Sheet (unadjusted) as at September 30, 2014 ASSETS CURRENT ASSETS: Cash 571, ,872 Marketable Securities 11,832,720 4,883,437 Accounts Receivable 3,793,206 2,649,430 Inventory 645, ,670 Prepaid Expenses 33,468 47,869 TOTAL CURRENT ASSETS 16,876,381 8,616,278 DEPOSITS ON PROPERTY 66,450 66,450 PROPERTY AND EQUIPMENT 13,667,962 12,310,783 TOTAL ASSETS $ 30,610,793 $ 20,993,511 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable and Accrued Liabilities 361,283 1,218,520 Bank Loans 1,461,896 1,881,535 TOTAL CURRENT LIABILITIES 1,823,179 3,100,055 LANDFILL CLOSURE AND POST CLOSURE OBLIGATION 4,954,963 5,243,082 NET ASSETS: Invested in Property and Equipment 10,495,698 10,495,698 Internally Restricted 456, ,199 Unrestricted - Accumulated 319,178 1,319,178 Deferred Revenue - Biosolids - 379,299 Net Operating Income 12,561,575 TOTAL NET ASSETS 23,832,650 12,650,375 TOTAL LIABILITIES AND NET ASSETS $ 30,610,793 $ 20,993,511

19 Beaver Municipal Solutions Statement of Cash Flows (unadjusted) Nine months ending September 30, 2014 OPERATING ACTIVITIES: Net Operating Income (Loss) 12,561,575 Accounts Receivable -1,136,765 Inventory -31,156 Prepaid Expenses 14,401 Accounts Payable and Accrued Liabilities -864,248 Deferred Revenue - biosolids -379,299 Landfill Closure and Post Closure -288,119 Net Cash from (used in) Operating Activities 9,876,389 INVESTING ACTIVITIES: Purchase of Marketable Securities -12,413,746 Proceeds on Sale of Marketable Securities 5,464,464 Purchase of Property and Equipment -1,357,179 Net Cash from (used in) Investing Activities -8,306,461 FINANCING ACTIVITIES: Bank Loans Proceeds 766,500 Repayment of Bank Loans -1,186,138 Member distribution -1,000,000 Net Cash from (used in) Financing Activities -1,419,638 Increase (Decrease) in Cash and Cash Equivalents 150,290 Cash and Cash Equivalents at Beginning of Period 420,872 Cash and Cash Equivalents at End of Period 571,162

20 Beaver Municipal Solutions Summary Comparative Income Statement (unadjusted) Nine months ending September 30, 2014 Year to Date Projected Year End Actual Budget $ Variance % Budget Forecast $ Variance % REVENUE LANDFILL DISPOSAL CONTRACTS 9,956,884 4,462,124 5,494, % 5,949,500 11,799,871 5,850, % WASTE BIN REVENUE 237, , % 317, , % TRUCKING CONTRACTS 1,619,894 1,404, , % 1,872,000 2,072, , % MUNICIPAL CONTRACTS 147, ,750-14, % 217, , % LANDFILL DISPOSAL REVENUE 7,568,037 4,707,750 2,860, % 6,277,000 8,219,828 1,942, % OTHER INCOME 162, ,500 55, % 142, ,000 10, % TOTAL REVENUE 19,692,752 11,081,248 8,611, % 14,775,000 22,778,199 8,003, % EXPENSE SALARIES & WAGES 2,519,498 2,350, , % 3,216,645 3,420, , % EMPLOYEE BENEFITS 480, ,682-29, % 691, ,000-31, % STAFF TRAINING & DEVELOPMENT 71,286 46,875 24, % 62,500 80,000 17, % COMMISSION BOARD EXPENSES 36,630 42,450-5, % 56,600 56, % BUSINESS DEVELOPMENT 27,318 29,250-1, % 39,000 39, % ADVERT, PRINT & OFFICE SUPPLY 75,485 47,625 27, % 63,500 75,000 11, % TELECOMMUNICATIONS 59,273 40,500 18, % 54,000 75,000 21, % IT SYSTEMS 107,433 93,525 13, % 124, , % PROFESSIONAL SERVICES 838, , , % 365, , , % RENTALS & LEASES 373,338 43, , % 58, , , % CONTRACTED SERVICES 743, , , % 150,300 1,000, , % SUPPLIES & MATERIALS 1,279,733 1,152, , % 1,536,500 1,660, , % REPAIRS & MAINTENANCE 130, , , % 329, ,000-3, % INSURANCE 35,468 60,225-24, % 80,300 80, % UTILITIES 60,195 53,250 6, % 71,000 96,000 25, % INTEREST EXPENSE 37,976 22,500 15, % 30,000 30, % OTHER EXPENSES 255, ,500 47, % 278, ,600 9, % TOTAL EXPENSE 7,131,177 5,334,103 1,797, % 7,207,000 9,218,200 2,011, % OPERATING INCOME 12,561,575 5,747,146 6,814, % 7,568,000 13,559,999 5,991, %

21 FIN-013 Grants to Not-for-Profit Community Organizations About the Organization Title (optional) Last Name First Name Name of Organization Mailing Address Street Town/Village/Hamlet Province Postal Code Telephone Number (daytime) ( ) Address Fax Number ( ) About the Donation Amount of Grant requested: Amount: $ Date donation is needed: Please describe the purpose of the donation: (Append additional information as required) Has BMS provided a donation to your organization in the past? If yes, when? Beaver Municipal Solutions does not include donations to individuals or businesses. Beaver Municipal Solutions recommends that you make the request at least one month in advance of the event or community program. All donations require that the organisation requesting the donation acknowledge the support of Beaver Municipal Solutions in their public communications. The above information is correct to the best of my knowledge. Shall the donation be approved, I will use the donation for the purposes listed above. Signature Date Print Name Title (Relationship to Organization) Personal information on this form is collected under Alberta s Freedom of Information and Protection of Privacy Act and will be used to respond to your request.

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24 5.1 BOARD EVENTS CALENDAR - 10/17/2014 DATE(S) TIME EVENT LOCATION COMMENTS Sep Day AUMA Annual Convention Edmonton 2014 Sept 30, pm BMS Open House BMS Offices Oct Day Recycling Council of Lake Louise Alberta Annual Convention Oct 15-18, Day Remtech Conference Banff 2014 Oct :00 8:00 pm Board meeting Beaver County Chambers Oct 22-23, Day Landfill Operations Basic Red Deer 2014 Nov Day AAMDC Fall Convention Shaw Centre 2014 Edmonton Nov :00 8:00 pm Board meeting Beaver County Chambers Dec :00 BMS Christmas Party Bruce Hotel Dec :00 8:00 pm Board meeting Beaver County Chambers 2014 Q3 Results Organizational Meeting; Various Policies 3 Year Review/Revisions Budget 2015; Approve Member Collection System Agreements

25 REQUEST FOR DECISION (RFD) SUBJECT: Request for Decision Scale Improvements Project, Award to Formula Alberta RECOMMENDATION: That Scale Improvements Project foundation, decking, gravel and grading - be awarded to Formula Alberta, Ltd. of Stony Plain AB for the price of $738,625.00, including $50, contingency, plus GST. CAO COMMENTS: The tender call for the subject project closed September 23, 2014 with only bidder. Upon review, and confirmation of revised work scope, the sole bid was assessed to conform to project requirements. Our capital budget has allocated $600, in funds towards scale and office improvements, including the above project. The second scale and new scale control kiosk building are approximately $130, in value. The project for the foundations, decking and gravel and grading is more expensive than planned because of the addition of decking replacement for $152, and $130,000 mobilization due to extensive traffic control requirements. During the development of the design, safety considerations required we incorporate new decking and extensive traffic control into the project. Given below budget results from other projects, we believe we can absorb the overage into our overall capital budget. Because of time constraints, (i.e. winter approaching) the contract work has started. The Board s motion for the contract award is required. RECOMMENDATION Report/Document: Attached Available X Nil RFD Beaver Municipal Solutions

26 KEY ISSUE(S)/CONCEPTS DEFINED: See CAO comments. RELEVANT POLICIES: Budget 2014; Purchasing Policy STRATEGIC RELEVANCE: Approved budget DESIRED OUTCOME(S): REQUEST FOR DECISION (RFD) 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 CAO comments. ORGANIZATIONAL: See CAO comments FINANCIAL: Budget 2014 FOLLOW UP ACTION: Work in process COMMUNICATION: OTHER COMMENTS: IMPLICATIONS OF RECOMMENDATION: Submitted by: Writer Pierre Breau, P. Eng. Endorsed by: Reviewed by: CAO Reviewers RFD Beaver Municipal Solutions

27 REQUEST FOR DECISION (RFD) SUBJECT: Request for Decision Award of Tender BMS , Landfill Waste Compactor. RECOMMENDATION: That the Board approve the purchase of a Tana E520 Landfill Compactor in the amount of $1,005,200 + G.S.T. with a contingency of $25,000 for site specific improvements from Humdinger Equipment Ltd., Lubbock, Texas. VICE PRESIDENT, OPERATIONS COMMENTS: As per Board Motion it was moved to for issue a tender with the intent to purchase a current model Waste Compactor for delivery in 2015 & authorize $1.25 million of the 2015 Capital Budget. Management agreed to report the final price at a future Board meeting with a second RFD to approve the award to the successful vendor. Tender BMS was posted and four submissions were received as follows: Vendor Model Price Aljon Manufacturing LLC Advantage 600 $932,430* Brandt Tractor Bomag BC1172-RB-3 $1,049,000 Finning CAT 836K $1,158,000 Humdinger Equipment Ltd. Tana E520 $1,005,200* Note: * converted from $USD at rate of 1.12 Considering the importance of compaction to the Landfill Operations and profitability, the VP, Operations lead a four-man crew to Kelowna Landfill to inspect, observe and operate the Tana E520 Waste Compactor. It was a consensus among the inspection team that the Tana compactor appears to be the best choice at this time. Information received from references has confirmed these findings. Attached are the following that support the recommendation: General Information Compaction Information Compaction Guarantee Cleaner System Guarantee 7.2 RFD Beaver Municipal Solutions

28 REQUEST FOR DECISION (RFD) RECOMMENDATION Report/Document: Attached Available Nil X KEY ISSUE(S)/CONCEPTS DEFINED: See VP, Operations comments. RELEVANT POLICIES: Board Motion , Five Year Capital Budget Plan/2015 Capital Budget Allocation STRATEGIC RELEVANCE: Landfill operating efficiency and improved compaction. 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 resubmission. 3. Reject recommendation. PREFERED STRATEGY: Response 1. IMPLICATIONS OF RECOMMENDATION: GENERAL: See VP, Operations comments. ORGANIZATIONAL: See VP, Operations comments. FINANCIAL: Budget 2015 FOLLOW UP ACTION: Issue award letter, purchase order and negotiate site specific improvements. COMMUNICATION: OTHER COMMENTS: Submitted by: Aaron Hills, Vice President, Operations Endorsed by: Reviewed by: CAO Reviewers 7.2 RFD Beaver Municipal Solutions

29 BEAVER MUNICIPAL SOLUTIONS Five year plan Operations Revenue $ 12,080, $ 14,774, $ 15,217, $ 15,674, $ 16,144, $ 16,629, Expenses $ 6,810, $ 7,207, $ 7,423, $ 7,646, $ 7,875, $ 8,112, Operating Income (cash generated) $ 5,270, $ 7,567, $ 7,794, $ 8,028, $ 8,268, $ 8,516, Debt repayment consolidated loan, 2012 $ 4,267, $ 1,881, $ $ $ $ Available $ 1,003, $ 5,685, $ 7,794, $ 8,028, $ 8,268, $ 8,516, Capital program Project expenses Land $ $ 242, $ 242, $ 376, $ $ Buildings $ 22, $ 700, $ 50, $ 50, $ 50, $ Equipment $ 1,540, $ 1,114, $ 710, $ 705, $ 705, $ 1,000, Other $ 5,110, $ 1,915, $ 5,472, $ 2,722, $ 5,500, $ 2,000, Total $ 6,672, $ 3,971, $ 6,232, $ 3,477, $ 6,255, $ 3,000, Funding From operations $ 1,003, $ 2,771, $ 5,232, $ 2,477, $ 5,255, $ 2,000, From reserves $ 5,669, $ 1,200, $ 1,000, $ 1,000, $ 1,000, $ 1,000, From debt From grants Total $ 6,672, $ 3,971, $ 6,232, $ 3,477, $ 6,255, $ 3,000, Debt At beginning of year $ 6,148, $ 1,881, $ $ $ $ Debt payments consolidated loan $ 4,267, $ 1,881, $ $ $ $ Other debt payments $ $ $ $ $ $ New debt proceeds $ $ $ $ $ At end of year $ 1,881, $ $ $ $ $ Reserves (marketable securities, cash management) Unrestricted, at beginning of year $ 10,594, $ 4,625, $ 1,596, $ 2,192, $ 5,777, $ 6,858, transfers in $ 2,914, $ 2,561, $ 5,550, $ 3,013, $ 6,516, transfers out $ 5,969, $ 6,000, $ 2,000, $ 2,000, $ 2,000, $ 2,000, interest $ 57, $ 34, $ 35, $ 67, $ 74, net at year end $ 4,625, $ 1,596, $ 2,192, $ 5,777, $ 6,858, $ 11,449, Restricted, landfill closure, at beginning of year $ $ $ 3,825, $ 3,865, $ 3,905, $ 3,946, transfers in $ 5,000, $ 1,000, $ 1,000, $ 1,000, $ 1,000, transfers out $ 1,200, $ 1,000, $ 1,000, $ 1,000, $ 1,000, WORKSHEET BMS Five Year Plan PB V03.xlsx 16/12/2013 Page 1 of 4

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31 REQUEST FOR DECISION (RFD) SUBJECT: Request for Decision Beaver Regional Partnership Funding of Due Diligence Study Regarding Organizational Change RECOMMENDATION: That funding of $50,000 plus GST be accorded to the Beaver Regional Partnership, in order to engage George Cuff and Associates in order to conduct a due diligence review regarding possible organizational change at the Commission. CAO COMMENTS: In late April 2014, the Commission presented its 2014 Strategic Plan to the councils of the five Commission municipal members. Among the matters presented were development of alternative waste processing initiatives to diversify from reliance on landfill disposal revenues and suggested changes to the organizational structure of the Commission to reduce financial risk, and provide greater flexibility for the distribution of additional surplus to municipal members. In May 2014, the Chairman and the GM met with the county Reeve and CAO, representing the Beaver Regional Partnership, to discuss the BRP s reaction to the Commission strategic plan. The BRP wanted to have an independent consultant review the strategic issues raised by the Commission. The cost of the review would be borne by the Commission. The Chair and GM agreed that both the review by the members, and its funding by the Commission, was appropriate given the critical importance of the matters raised. The BRP has hired respected municipal consultant George Cuff and Associates. A series of interviews with Board Directors and member chief elected officials, member CAO s, Commission executives, the Commission s legal counsel and the Commission s financial auditors is scheduled, as well as a tour of the Commission s operational site. An outline of what these Terms of Reference might include (but not limited to) is as follows: RFD Beaver Municipal Solutions

32 REQUEST FOR DECISION (RFD) To work with the Partnership to determine what expectations the Partnership has with respect to the future of the Beaver Regional Waste Management Services Commission (the Commission); To analyze and provide advice regarding the Commission s Strategic Plan; To analyze and provide advice regarding the Commission s request for alternate corporate structure (Limited Partnership); To provide advice to the Partnership about appropriate corporate structures to consider, if an alternate to a Regional Service Commission is desired; To provide some advice for the Partnership on how to deal with future strategic plan initiatives. What should we be asking for each new initiative: enterprise risk analysis, business plan, etc.? All of these initiatives would include comparison of the objectives of the Board against their own Ministerial Order, the Municipal Government Act, any other provincial legislation and current Intermunicipal agreements. The consultant is expected to provide a report to the BRP in late October/early November. RECOMMENDATION Report/Document: Attached Available Nil X KEY ISSUE(S)/CONCEPTS DEFINED: See CAO comments. RELEVANT POLICIES: Strategic Plan; Municipal Government Act STRATEGIC RELEVANCE: Member engagement and Board member alignment of goals DESIRED OUTCOME(S): Approval of the recommendation as presented RFD Beaver Municipal Solutions

33 REQUEST FOR DECISION (RFD) RESPONSE OPTIONS: 1. Accept recommendation 2. Request more information, if questions arise in presentation, and request resubmission. 3. Reject recommendation. PREFERED STRATEGY: Response 1. GENERAL: See CAO comments. ORGANIZATIONAL: See CAO comments FINANCIAL: Budget 2014 FOLLOW UP ACTION: Work in process COMMUNICATION: OTHER COMMENTS: IMPLICATIONS OF RECOMMENDATION: Submitted by: Writer Pierre Breau, P. Eng. Endorsed by: Reviewed by: CAO Reviewers RFD Beaver Municipal Solutions

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56 BOARD DIRECTION REQUEST (BDR) SUBJECT: Community Impact Study Request for Proposals SUGGESTED FOLLOW UP ACTION: Instruct the GM to send out the draft Community Impact Study Request for Proposals (RFP) to the BMS municipal members through their CAO s for review and feedback. Feedback will be presented to the Board at a future meeting, and suggested revisions incorporated into the RFP, prior to its issuance. BACKGROUND: Report/Document: Attached X Available Nil 1. Draft Request for Proposals for a Community Impact Study DEFINE THE TOPIC KEY INFORMATION: According to the 2014 Strategic Plan, a consultant is to be engaged to review the Grants to Municipal Members in Lieu of Taxes policy and the Good Neighbour Grants policy approved by the Board on November 28, The rationale for the Community Impact Study (CIS) is to engage a qualified, independent consultant in order to recommend if the current policies properly consider the positive and negative socioeconomic impacts of the Commission s operations on member municipalities. Of particular importance, is the impact of the Commission s landfill operations on nearby residents living in the village of Ryley and Beaver County. RELEVANT OBSERVATIONS: Three distribution policies were developed by the Board in 2013 to provide for disbursement of funds from the Commission to the municipal members: FIN 011 Distribution of Surplus Funds to Municipal Members FIN 012 Grants in Lieu of Taxes FIN 014 Good Neighbour Grants Development of these policies was done in conjunction with the municipal members and considered the combined regional service expenses of the members and the apportionment of these for funding 1 BDR Beaver Municipal Solutions BDR

57 BOARD DIRECTION REQUEST (BDR) by the members. The Board, accordingly approved these policies in late There is, however, a concern that the distribution policies, may not fully consider potential negative land valuation impacts of the landfill operation on lands in the vicinity of the landfill, including within the village of Ryley. While the Board felt that policies FIN 011 and FIN 012 represented an equitable distribution of funds, it also felt that the question of community impacts, both positive and negative, could be revisited by engaging an independent consultant. The consultant s recommendations to changes, if any, to policies FIN 012 and FIN 014 would be subsequently reviewed by the Board. Since changes to any Commission fund distribution policy could affect other regional service funding agreements between the municipal members, it is recommended that the draft RFP of a Community Impact Study be reviewed by the municipal members, in order to provide the Board with valuable feedback, prior to issuing the RFP. A local advisory group, the Ryley Public Advisory Group, (RyPAC) has indicated, through the GM, a desire to review the draft RFP, and provide feedback to the Board. RyPAC is independent of any municipal member. STRATEGIC QUESTIONS: Is soliciting feedback from municipal members on the CIS representative of the Board s desire to promote positive stakeholder relations? Should the Board equally seek advice from non member groups regarding commissioned studies. ESSENTIAL QUESTION: What constitutes the development of positive stakeholder relations? 2 BDR Beaver Municipal Solutions BDR

58 BOARD DIRECTION REQUEST (BDR) 1. DETERMINE DESIRED OUTCOMES if the essential question is addressed KEY RESULT ** The Board will identify its key stakeholders and develop key goals for positive stakeholder relations. DESIRED BENEFITS OF KEY RESULT: See above. REQUISITES: Issue a RFP for the CIS with stakeholder feedback. UNINTENDED OUTCOMES: The Board must be clear that it is not delegating its governance of the Commission s strategy nor operations. 2. EXPLORE RESPONSE OPTIONS to achieve the key result (Pros & Cons) 1. The Board reviews the draft presented and directs the CAO/GM to revise, if directed, and present at a future meeting. Recommended response. 2. The Board decides to not issue the CIS. This is not recommended. Submitted by: Writer Pierre Breau, P. Eng. 2 BDR Beaver Municipal Solutions

59 DRAFT FOR DISCUSSION ONLY NOT FOR ISSUE v.01 Request for Proposals Community Impact Study, Beaver Regional Waste Management Services Commission/Beaver Municipal Solutions Introduction The Beaver Regional Waste Management Services Commission wishes to engage a qualified, independent consultant to conduct a Community Impact Study of the Commission s landfill operations on the communities within Beaver County. In general, the Community Impact Study will examine the positive and negative socio economic impacts on these communities of the large regional landfill located near Ryley Alberta, and its associated waste collection and transportation operations. This Request for Proposals (RFP) will describe background information regarding the Commission s operations, the scope of work and deliverables requested, the qualifications required of the consultant and proposal submission and evaluation criteria. Background The Beaver Regional Waste Management Services Commission, also called Beaver Municipal Solutions, is a regional services commission that provides waste management services for Alberta s capital region, and neighbouring municipalities, ranging from Parkland County in the west, to Vermillion in the east. The Commission operates one of western Canada s largest municipal solid waste disposal landfills located approximately 1 hour east of Edmonton, in Beaver County. In 2014, expected disposal tonnages at the landfill will approach 1 million metric tonnes (2.2 billion pounds) truck load traffic is expected to exceed 49,000. (average of 158 trucks per day, 6 days per week) 2014 tonnages are high because of real estate development work in Edmonton related to the Edmonton Arena District project. Prior waste tonnages in 2012, and 2013, were 560,000 and 390,000 tonnes, respectively. Future waste tonnages are expected to continue in the 600, ,000 tonne per year range. The municipal landfill has been in operation since the 1980 s. The Commission was created through the Municipal Government Act in The Commission is governed by a Board of Directors consisting of municipal councillors from the five municipal units of Beaver County: the towns of Tofield and Viking, the villages of Ryley and Holden, and Beaver County. Under provincial legislation, each of these municipalities are recognized as members of the Commission, and have the right to appoint one sitting municipal councillor to the Board. The Board, however, reports to the provincial government cabinet through the Minister of Municipal Affairs. The landfill site is located within the jurisdiction of Beaver County approximately 3 kilometres north of the village of Ryley, off of secondary Highway 854 North. (nearest intersection is with Alberta Highway 14) The landfill site s expected remaining future life span is over 90 years. Because of the natural geotechnical characteristics of the surrounding area s soil and underlying geology, the Commission s municipal waste landfill neighbours a hazardous waste landfill owned and operated by US based Clean Harbors Canada, Inc. The hazardous waste landfill is situated immediately Request for Proposals Community Impact Study Beaver Regional Waste Management Services Commission/Beaver Municipal Solutions Page 1 of 9

60 DRAFT FOR DISCUSSION ONLY NOT FOR ISSUE v.01 across Highway 854 from the Commission s site. The hazardous waste landfill disposes over 150,000 tonnes per year of hazardous wastes generated from the western Canadian provinces. The hazardous waste landfill has also been in operation since the 1980 s. Clean Harbors Canada began a voluntary community funding program with the village of Ryley in 2013, and pays property taxes to the village of Ryley. The Clean Harbors landfill is within the jurisdiction of the village. Both landfills are in good standing with the provincial regulator, Alberta Environment and Sustainable Resource Development. In 2013, the Commission built a large landfill cell for its current operations. It is expected to build a second expansion cell in The Commission s current operating approval is set to expire in Clean Harbors Canada is in the process of undergoing an Environmental Impact Assessment for a required expansion of its current landfill. The proposed expansion is on a site within Beaver County immediately to the north of its current site. The proposed site is expected to be transferred to the jurisdiction of the village of Ryley, pending Alberta Municipal Affairs approval. Ryley has a population of approximately 500 residents. The total population of all municipalities in Beaver County is approximately 10,000. Wastes generated from Beaver County municipalities are a small part of the total waste disposed at the Commission landfill, with approximately 6,600 metric tonnes of waste disposed of in Accordingly, the Commission receives significant income from disposal of outside wastes. In 2012 and 2013, the Commission received revenues from all sources, including waste collection and transportation operations, of $14.6 and $12.8 million respectively. In 2014, revenues are expected to exceed $20 million. The Commission has approximately $1 million in outstanding debt, and is in a strong financial position with respect to funding its future environmental liabilities. The Commission is one of the largest employers in Beaver County with over 70 full time and part time employees, at a payroll cost of over $4 million. Most of the employees reside within Beaver County. Because of the significant outside revenues, Beaver County municipal units waste management costs are subsidized. In 2013, the municipal units paid $217,000 towards waste management costs, primarily collection and transportation services, for the County s towns, villages and hamlets. A system of four waste transfer stations are operated free of charge for County residents. Residents living in rural acreages, however, have to pay for collection pick up service, though they are not obligated to participate in the service. In 2013, wastes from the municipal units were approximately 5,200 tonnes of the 6,600 tonnes previously reported. The remaining 1,400 tonnes mostly came from the rural residential pick up service, as well as some oversize and construction and demolition debris generated locally, and collected via the Commission s fee for service roll off container service. The Commission recently received (May 2014) authority from the government of Alberta to release up to $1 million in surplus funds (monies not needed to fund future operations and landfill environmental closure liabilities) per year for the next three years (to December 2016). Combined with other grant programs, the Commission has released approximately $1.4 million in funds in 2013 and 2014 to Beaver Request for Proposals Community Impact Study Beaver Regional Waste Management Services Commission/Beaver Municipal Solutions Page 2 of 9