PUBLIC PRIVATE PARTNERSHIPS

(Alternate Financing and Procurement-Ontario)

LARRY J. McCABE, CHIEF ADMINISTRATIVE OFFICER

August 21, 2011

The Square

The Square - Today

GODERICH, ONTARIO

 Population-8,000  Location • • • 230 km west of Toronto on Lake Huron 100 km north of London 100 km west of Walkerton (Brockton)  Major Industry is Sifto Canada Inc. • Largest operating salt mine in the world  Only Seaway Depth port on east side of Lake Huron

PUBLIC PRIVATE PARTNERSHIPS

      Goderich Harbour Acquisition and Improvement-Phase 1 1999 Mind & Body Community Campaign (Maitland Recreational Centre & Goderich Branch Library Water / Sewer Operations In all partnerships, the assets have been retained, taxpayer must benefit financially, efficiencies must be recognized and comprehensive legal agreements are negotiated Maitland Valley Medical Clinic Future Harbour Expansion

PUBLIC 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

Public

• Public access continued • Public asset

GODERICH PORT NOT-FOR-PROFIT CORPORATION 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 • 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

PRIVATE

 

Sifto Canada Inc.

Approve directors Pay user fees

Goderich Elevators Ltd.

• Optional to appoint directors • 5% reduction in fees

Da-Lee Calcium Chloride Ltd.

• Optional to appoint directors • 5% reduction in fees

Other Users

MIND AND BODY COMMUNITY CAMPAIGN COMPONENTS

 $19 million 100,000 sq. ft. facility including indoor pool, NHL ice surface, fitness centre, lounge, gymnasium • Officially opened January 2004  $2.1 million doubling in size of Carnegie Goderich Library • Complete June 2003

MIND AND BODY COMMUNITY CAMPAIGN FUNDING

 Local fundraising $5.7 million on both components  Provincial/Federal infrastructure funding of $3.5 million (component no. 1 only)  Debt retirement in 2010 (2011)

PARTNERS

 Goderich Town Council commitment  YMCA of Sarnia-Lambton  Under agreement assumed all full-time recreational employees of the Town at existing wage rates and benefits, including transfer of OMERS Pension Plan as an associate employer  YMCA of Goderich-Huron currently operate all recreation facilities and programs within the Town effective September 1, 2003

BENEFITS OF THE PARTNERSHIP BETWEEN THE TOWN OF GODERICH AND VEOLIA WATER CANADA  Goderich has transferred significant risk and responsibility to a willing and capable partner wherein Veolia Water Canada guarantees its operating performance and, in the unlikely event of a failure to meet its performance obligations, the company will pay any fines levied by the MOE  Goderich has retained ownership and strategic control of its assets and the rate structure  Veolia Water Canada has structured a partnership format that allows its employees (formerly employees of the Town) to retain their participation (and their accumulated contributions) in the OMERS pension program  Veolia Water Canada provides Goderich with access to the resources, skills and experience of the largest water company in the world

BENEFITS OF THE PARTNERSHIP BETWEEN THE TOWN OF GODERICH AND VEOLIA WATER CANADA

 Veolia Water Canada brings state-of-the-art process control, maintenance management, inventory management system and computerized hydraulic water distribution system analysis to the project  Veolia Water Canada is committed to transfer skills and knowledge to benefit the local community  Veolia Water Canada’s partnership is extended to local businesses with a “buy locally first” policy wherever possible and practical  All employees participate in training programs to enhance their skills and qualifications, and they are being cross-trained in multiple functions

New Wharf North Breakwall South Breakwall North Harbour Road Phase 1 Fiscal 2010-11 Phase 2 Fiscal 2011-12 Phase 3 Fiscal 2012-13 Total Project $100,000 $6,323,081 $3,134,313 $12,000,000 $19,589, 228 $31,689,228 $6,323,081 $3,134,313 $1,429,000 $1,429,000 North Pier South Pier Environmental (Assessment and Compensation) $2,267,000 $881,000 $500,000 $400,000 $600,000 $2,267,000 $881,000 $1,500,000 Total $13, 205, 394 $12,400,000 $21,618,228

Provincial Funding-$15,700,000.00, Balance-Port Users Fees-$31,523,622.00 No tax dollars used

$47,223,622

Phase 1 Phase 2

NEW WHARF

CONCLUSION

Successful Partnerships depend upon:



Political Champion



Administrative Champion

THANK YOU