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 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. Largest operating salt mine in the worldLargest 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  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

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

Phase 1 Fiscal Phase 2 Fiscal Phase 3 Fiscal Total Project New Wharf$100,000$12,000,000$19,589, 228$31,689,228 North Breakwall$6,323,081 South Breakwall$3,134,313 North Harbour Road $1,429,000 North Pier$2,267,000 South Pier$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, No tax dollars used

Phase 1 Phase 2

NEW WHARF

CONCLUSION Successful Partnerships depend upon:  Political Champion  Administrative Champion

THANK YOU