PUBLIC PRIVATE PUBLIC PRIVATE PARTNERSHIPSPARTNERSHIPS (Alternate Financing and (Alternate Financing and

Procurement-Ontario)Procurement-Ontario)

LARRY J. McCABE, LARRY J. McCABE, CHIEF ADMINISTRATIVE OFFICERCHIEF ADMINISTRATIVE OFFICER

August 21, 2011August 21, 2011

The SquareThe Square

The Square - TodayThe Square - Today

GODERICH, ONTARIOGODERICH, ONTARIO

Population-8,000Population-8,000 LocationLocation

• 230 km west of Toronto on Lake Huron230 km west of Toronto on Lake Huron• 100 km north of London100 km north of London• 100 km west of Walkerton (Brockton)100 km west of Walkerton (Brockton)

Major Industry is Sifto Canada Inc. Major Industry is Sifto Canada Inc. • Largest operating salt mine in the worldLargest operating salt mine in the world

Only Seaway Depth port on east side of Lake Only Seaway Depth port on east side of Lake HuronHuron

PUBLIC PRIVATE PUBLIC PRIVATE PARTNERSHIPSPARTNERSHIPS

Goderich Harbour Acquisition and Improvement-Phase 1 Goderich Harbour Acquisition and Improvement-Phase 1 19991999

Mind & Body Community Campaign (Maitland Mind & Body Community Campaign (Maitland Recreational Centre & Goderich Branch LibraryRecreational Centre & Goderich Branch Library

Water / Sewer OperationsWater / Sewer Operations In all partnerships, the assets have been retained, In all partnerships, the assets have been retained,

taxpayer must benefit financially, efficiencies must be taxpayer must benefit financially, efficiencies must be recognized and comprehensive legal agreements are recognized and comprehensive legal agreements are negotiatednegotiated

Maitland Valley Medical ClinicMaitland Valley Medical Clinic Future Harbour ExpansionFuture Harbour Expansion

GODERICH PORT

PUBLIC NOT-FOR-PROFIT CORPORATION

PRIVATE

Goderich Port Management Corp. (GPMC)

Responsible for:• Port operations and maintenance• Capital – 15 year program - $29M

(paid for through 100% user fees)•Breakwalls•Riverwall•Piers•Dredging•other capital improvements

Town of Goderich (owner)• Agreement for infrastructure

improvements• Retain ownership of asset• $175,000/year to the Town

reserve from user fees for waterfront improvements

Sifto Canada Inc. Approve directors Pay user fees

Da-Lee Calcium Chloride Ltd.

• Optional to appoint directors

• 5% reduction in fees

Other Users

Public• Public access

continued• Public asset

•Operation and capital paid 100% by user fees•$1.4M per year for 15 years deposited to major infrastructure improvements trust fund•Council must approve annually major infrastructure schedule•Council must approve projects and timing schedule of construction •GPMC pays $175,000 (including leases) to Town for waterfront improvement from user fees

Goderich Elevators Ltd.• Optional to appoint

directors• 5% reduction in fees

MIND AND BODY COMMUNITY MIND AND BODY COMMUNITY CAMPAIGN COMPONENTSCAMPAIGN COMPONENTS

$19 million 100,000 sq. ft. facility including $19 million 100,000 sq. ft. facility including indoor pool, NHL ice surface, fitness indoor pool, NHL ice surface, fitness centre, lounge, gymnasiumcentre, lounge, gymnasium

• Officially opened January 2004Officially opened January 2004

$2.1 million doubling in size of Carnegie $2.1 million doubling in size of Carnegie Goderich LibraryGoderich Library

• Complete June 2003Complete June 2003

MIND AND BODY COMMUNITY MIND AND BODY COMMUNITY CAMPAIGN FUNDINGCAMPAIGN FUNDING

Local fundraising $5.7 million on both Local fundraising $5.7 million on both componentscomponents

Provincial/Federal infrastructure funding of Provincial/Federal infrastructure funding of $3.5 million (component no. 1 only)$3.5 million (component no. 1 only)

Debt retirement in 2010 (2011)Debt retirement in 2010 (2011)

PARTNERSPARTNERS

Goderich Town Council commitmentGoderich Town Council commitment YMCA of Sarnia-LambtonYMCA of Sarnia-Lambton Under agreement assumed all full-time Under agreement assumed all full-time

recreational employees of the Town at existing recreational employees of the Town at existing wage rates and benefits, including transfer of wage rates and benefits, including transfer of OMERS Pension Plan as an associate employerOMERS Pension Plan as an associate employer

YMCA of Goderich-Huron currently operate all YMCA of Goderich-Huron currently operate all recreation facilities and programs within the recreation facilities and programs within the Town effective September 1, 2003Town effective September 1, 2003

BENEFITS OF THE PARTNERSHIP BETWEEN BENEFITS OF THE PARTNERSHIP BETWEEN THE TOWN OF GODERICH AND THE TOWN OF GODERICH AND

VEOLIA WATER CANADAVEOLIA WATER CANADA

Goderich has transferred significant risk and responsibility to a Goderich has transferred significant risk and responsibility to a willing and capable partner wherein Veolia Water Canada willing and capable partner wherein Veolia Water Canada guarantees its operating performance and, in the unlikely event of a guarantees its operating performance and, in the unlikely event of a failure to meet its performance obligations, the company will pay failure to meet its performance obligations, the company will pay any fines levied by the MOEany fines levied by the MOE

Goderich has retained ownership and strategic control of its assets Goderich has retained ownership and strategic control of its assets and the rate structureand the rate structure

Veolia Water Canada has structured a partnership format that Veolia Water Canada has structured a partnership format that allows its employees (formerly employees of the Town) to retain allows its employees (formerly employees of the Town) to retain their participation (and their accumulated contributions) in the their participation (and their accumulated contributions) in the OMERS pension programOMERS pension program

Veolia Water Canada provides Goderich with access to the Veolia Water Canada provides Goderich with access to the resources, skills and experience of the largest water company in the resources, skills and experience of the largest water company in the worldworld

BENEFITS OF THE PARTNERSHIP BENEFITS OF THE PARTNERSHIP BETWEEN THE TOWN OF GODERICH BETWEEN THE TOWN OF GODERICH

AND VEOLIA WATER CANADAAND VEOLIA WATER CANADA

Veolia Water Canada brings state-of-the-art process control, Veolia Water Canada brings state-of-the-art process control, maintenance management, inventory management system and maintenance management, inventory management system and computerized hydraulic water distribution system analysis to the computerized hydraulic water distribution system analysis to the projectproject

Veolia Water Canada is committed to transfer skills and knowledge Veolia Water Canada is committed to transfer skills and knowledge to benefit the local communityto benefit the local community

Veolia Water Canada’s partnership is extended to local businesses Veolia Water Canada’s partnership is extended to local businesses with a “buy locally first” policy wherever possible and practicalwith a “buy locally first” policy wherever possible and practical

All employees participate in training programs to enhance their skills All employees participate in training programs to enhance their skills and qualifications, and they are being cross-trained in multiple and qualifications, and they are being cross-trained in multiple functionsfunctions

Phase 1 Fiscal 2010-11

Phase 2Fiscal 2011-12

Phase 3 Fiscal 2012-13

Total Project

New Wharf $100,000 $12,000,000 $19,589, 228 $31,689,228

North Breakwall $6,323,081

$6,323,081

South Breakwall $3,134,313 $3,134,313

North Harbour Road $1,429,000 $1,429,000

North Pier $2,267,000 $2,267,000

South Pier $881,000 $881,000

Environmental(Assessment and Compensation)

$500,000 $400,000 $600,000 $1,500,000

Total $13, 205, 394 $12,400,000 $21,618,228 $47,223,622

Provincial Funding-$15,700,000.00, Balance-Port Users Fees-$31,523,622.00

No tax dollars used

NEW WHARFNEW WHARF

CONCLUSIONCONCLUSION

Successful Partnerships depend upon:Successful Partnerships depend upon:

Political ChampionPolitical Champion

Administrative ChampionAdministrative Champion

THANK YOUTHANK YOU