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Home My WebLink AboutFebruary 05, 2026 - CouncilTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM COUNCIL MEETING AGENDA MUNICIPAL OFFICE 56169 Heritage Line, Straffordville, ON Council Chambers – HYBRID Thursday, February 5, 2026 7:00 p.m. 7:30 p.m. Statutory Planning Meeting – 4 Applications The February 5, 2026 Council Meeting will allow for a hybrid meeting function. You may attend in person or virtually through the live-stream on the Municipality of Bayham’s YouTube Channel 1. CALL TO ORDER 2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF 3. REVIEW OF ITEMS NOT LISTED ON AGENDA 4. ANNOUNCEMENTS 5. PRESENTATIONS 6. DELEGATIONS A. Barry Wade re Unlicensed Tarion Builders 7. ADOPTION OF MINUTES OF PREVIOUS MEETING(S) A. Regular Meeting of Council held January 15, 2026 8. MOTIONS AND NOTICE OF MOTION 9. OPEN FORUM 10. RECREATION, CULTURE, TOURISM AND ECONOMIC DEVELOPMENT 10.1 Correspondence 10.1.1 Receive for Information 10.1.2 Requiring Action 10.2 Reports to Council 11. PHYSICAL SERVICES – EMERGENCY SERVICES 11.1 Correspondence 11.1.1 Receive for Information 11.1.2 Requiring Action 11.2 Reports to Council A. Report BL-01/26 by Mark Russell, By-law Enforcement Officer re Backyard Chickens in Settlement Areas Council Agenda February 5, 2026 2 B. Report BL-02/26 by Mark Russell, By-law Enforcement Officer re 2025 Annual Summary Report 12. DEVELOPMENT SERVICES – SUSTAINABILITY AND CONSERVATION 12.1 Correspondence 12.1.1 Receive for Information A. Notice of Public Meeting re ZBA-20/25 Build Ontario Developments, 11265 Plank Road B. Notice of Public Meeting re ZBA-25/25 Neufeld, 54304 Eden Line C. Notice of Public Meeting re ZBA-01/26 Wall, 23 Oak Street D. Notice of Public Meeting re ZBA-02/26 Guenther, 53900 Heritage Line E. Notice of Public Meeting re Final Draft of Official Plan in the Municipality of Bayham Official Plan Review 12.1.2 Requiring Action 12.2 Reports to Council A. Report DS-02/26 by Scott Sutherland, Chief Building Official re Unlicensed Tarion Builders 13. FINANCE AND ADMINISTRATION 13.1 Correspondence 13.1.1 Receive for Information A. Town of Fort Frances re Call on Province of Ontario to Establish an Ontario Airport Capital Assistance Program B. Township of Southgate re OMERS Bill 68 13.1.2 Requiring Action 13.2 Reports to Council A. Report TR-02/26 by Lorne James, Treasurer re 2027 Budget Schedule B. Report TR-03/26 by Lorne James, Treasurer re 2025 Public Sector Salary Disclosure Act C. Report TR-04/26 by Lorne James, Treasurer re 2025 Council Remuneration and Expenses D. Report CAO-04/26 by Thomas Thayer, CAO re Transfer Payment Agreement – 2026 Fire Protection Grant E. Report CAO-05/26 by Thomas Thayer, CAO re Transfer Payment Agreement – Pothole Prevention and Repair Program F. Report CAO-06/26 by Thomas Thayer, CAO re Bayham Community Strategic Plan Progress – 2025 Council Agenda February 5, 2026 3 BY-LAWS A. By-law No. 2026-003 Being a by-law to authorize the execution of a transfer payment agreement between His Majesty the King in Right of Ontario and the Corporation of the Municipality of Bayham for the Fire Protection Grant Program B. By-law No. 2026-004 Being a by-law to authorize the execution of a transfer payment agreement between His Majesty the King in Right of Ontario and the Corporation of the Municipality of Bayham for the Pothole Prevention and Repair Program C. By-law No. 2026-005 Being a by-law to amend By-law No. 2023-034 being a By- law to appoint committee members 14. UNFINISHED BUSINESS 15. OTHER BUSINESS A. Draft Minutes of the January 12, 2026 Waterfront Advisory Committee Meeting B. Draft Minutes of the January 28, 2026 Museum Advisory Committee Meeting C. Recommendations to Council from the Waterfront Advisory Committee & Museum Advisory Committee 16.1 In Camera 16.2 Out of Camera 16. BY-LAW TO CONFIRM THE PROCEEDINGS OF COUNCIL A. By-law No. 2026-006 Being a by-law to confirm all actions of Council 17. ADJOURNMENT THE CORPORATION OF THE MUNICIPALITY OF BAYHAM COUNCIL MEETING MINUTES MUNICIPAL OFFICE 56169 Heritage Line, Straffordville, ON Council Chambers – HYBRID Thursday, January 15, 2026 7:00 p.m. The January 15, 2026 Council Meeting was held using hybrid technologies via Zoom and livestreamed on YouTube. PRESENT: MAYOR ED KETCHABAW DEPUTY MAYOR RAINEY WEISLER COUNCILLORS TIMOTHY EMERSON DAN FROESE ABSENT: SUSAN CHILCOTT STAFF PRESENT: CAO THOMAS THAYER CLERK MEAGAN ELLIOTT *via Zoom FIRE CHIEF HARRY BARANIK MANAGER OF PUBLIC WORKS / DRAINAGE SUPERINTENDENT STEVE ADAMS 1. CALL TO ORDER Mayor Ketchabaw called the meeting to order at 7:00 pm. 2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF 3. REVIEW OF ITEMS NOT LISTED ON AGENDA 11.2 A Report PS-01/26 by Steve Adams, Manager of Public Works/Drainage Superintendent re Capital Items Nos. PW-25 and PW-29 – Tandem Plow Trucks – Canoe Procurement Group 11.2 B Report FR-01/26 by Harry Baranik, Fire Chief re 2025/2026 Mental Health Supports for Public Safety Personnel (MHS4PSP) Grant 13.2 A Report CAO-02/26 by Thomas Thayer, CAO re Elgin County Transportation Master Plan 4. ANNOUNCEMENTS 5. PRESENTATIONS 6. DELEGATIONS 7. ADOPTION OF MINUTES OF PREVIOUS MEETING(S) A. Regular Meeting of Council held December 18, 2025 Council Minutes January 15, 2026 2 B. Special Meeting of Council held January 6, 2026 Moved by: Councillor Emerson Seconded by: Councillor Froese THAT the minutes from the Regular Meeting of Council held December 18, 2025 and the minutes from the Special Meeting of Council held January 6, 2026 be approved as presented. CARRIED 8. MOTIONS AND NOTICE OF MOTION 9. OPEN FORUM 10. RECREATION, CULTURE, TOURISM AND ECONOMIC DEVELOPMENT 10.1 Correspondence 10.1.1 Receive for Information 10.1.2 Requiring Action 10.2 Reports to Council 11. PHYSICAL SERVICES – EMERGENCY SERVICES 11.1 Correspondence 11.1.1 Receive for Information 11.1.2 Requiring Action 11.2 Reports to Council A. Report PS-01/26 by Steve Adams, Manager of Public Works/Drainage Superintendent re Capital Items Nos. PW-25 and PW-29 – Tandem Plow Trucks – Canoe Procurement Group Moved by: Councillor Emerson Seconded by: Councillor Froese THAT Report PS-01/26 re Capital Items Nos. PW-25 and PW-29 – Tandem Plow Trucks – Canoe Procurement Group be received for information; AND THAT the Council of The Corporation of the Municipality of Bayham approve the procurement of two (2) new Freightliner Tandem Trucks supplied with Viking-Cives equipment, as outlined in the quotation received from Viking-Cives Ltd., for the quoted amount of $918,430.00 + HST. CARRIED B. Report FR-01/26 by Harry Baranik, Fire Chief re 2025/2026 Mental Health Supports for Public Safety Personnel (MHS4PSP) Grant Council Minutes January 15, 2026 3 Moved by: Deputy Mayor Weisler Seconded by: Councillor Emerson THAT Report FR-01/26 re 2025/2026 Mental Health Supports for Public Safety Personnel (MHS4PSP) Grant be received for information. CARRIED 12. DEVELOPMENT SERVICES – SUSTAINABILITY AND CONSERVATION 12.1 Correspondence 12.1.1 Receive for Information 12.1.2 Requiring Action 12.2 Reports to Council A. Report DR-01/26 by Steve Adams, Manager of Public Works/Drainage Superintendent re 4th Quarter Drainage Report Moved by: Deputy Mayor Weisler Seconded by: Councillor Emerson THAT Report DR-01/26 re 2025 4th Quarter Drainage Report be received for information. CARRIED B. Report DS-01/26 by Scott Sutherland, Chief Building Official re 4th Quarter Building Report Moved by: Councillor Emerson Seconded by: Councillor Froese THAT Report DS-01/26 re 4th Quarter Report be received for information. CARRIED 13. FINANCE AND ADMINISTRATION 13.1 Correspondence 13.1.1 Receive for Information A. Township of Nairn and Hyman re Steel and Softwood Lumber Sectors B. Municipality of Huron Shores re Improvements to Highway 11 and 17 C. United Counties of Leeds and Grenville re Municipal Accountability Act D. City of Brantford re Call for Reform and Publication of the Ontario Sex Offender Registry E. Town of Prescott re Waste Incineration F. City of Peterborough re Sustainable Funding for Police Services Request Council Minutes January 15, 2026 4 G. Joint Board of Management re September 17, 2025 Minutes H. Long Point Region Conservation Authority re December 3, 2025 Minutes Moved by: Councillor Froese Seconded by: Councillor Emerson THAT items 13.1.1 A – H be received for information. CARRIED 13.1.2 Requiring Action 13.2 Reports to Council A. Report CAO-02/26 by Thomas Thayer, CAO re Elgin County Transportation Master Plan Moved by: Councillor Emerson Seconded by: Councillor Froese THAT Report CAO-02/26 re Elgin County Transportation Master Plan be received for information. AND THAT staff be directed to submit the comments to Elgin County prior to the closure of the public comment period. CARRIED 14. BY-LAWS 15. UNFINISHED BUSINESS 16. OTHER BUSINESS 16.1 In Camera Moved by: Deputy Mayor Weisler Seconded by: Councillor Emerson THAT the Council do now rise to enter into an “In Camera” Session at 7:36 p.m. to discuss: A. Confidential Item re Personal matters about an identifiable individual (Advisory Committees) B. Confidential Item re Advice that is subject to solicitor-client privilege, including communications necessary for that purpose; a position, plan, procedure, criteria or instruction to be applied to any negotiations on or to be carried on by or on behalf of the Municipality or Local Board (Agreement) CARRIED Council Minutes January 15, 2026 5 16.2 Out of Camera Moved by: Deputy Mayor Weisler Seconded by: Councillor Froese THAT the Council do now rise from the “In Camera” Session at 8:18 pm and report on Confidential Item re Personal matters about an identifiable individual (Advisory Committees) and Confidential Item re Advice that is subject to solicitor-client privilege, including communications necessary for that purpose; a position, plan, procedure, criteria or instruction to be applied to any negotiations on or to be carried on by or on behalf of the Municipality or Local Board (Agreement). CARRIED Moved by: Councillor Emerson Seconded by: Deputy Mayor Weisler THAT Confidential Item re Personal matters about an identifiable individual (Advisory Committees) be received for information; AND THAT the appointment of Ron Bradfield to the Museum Advisory Committee be rescinded; AND THAT the seat remain vacant for the remainder of the term. CARRIED Moved by: Deputy Mayor Weisler Seconded by: Councillor Froese THAT Confidential Item re Advice that is subject to solicitor-client privilege, including communications necessary for that purpose; a position, plan, procedure, criteria or instruction to be applied to any negotiations on or to be carried on by or on behalf of the Municipality or Local Board (Agreement) be received for information; AND THAT staff proceed as directed. CARRIED 17. BY-LAW TO CONFIRM THE PROCEEDINGS OF COUNCIL A. By-law No. 2026-002 Being a by-law to confirm all actions of Council Moved by: Councillor Froese Seconded by: Deputy Mayor Weisler THAT Confirming By-law No. 2026-002 be read a first, second and third time and finally passed. CARRIED Council Minutes January 15, 2026 6 18. ADJOURNMENT Moved by: Councillor Froese Seconded by: Councillor Emerson THAT the Council meeting be adjourned at 8:20 p.m. CARRIED MAYOR CLERK Page 1 of 5 REPORT BY-LAW DEPARTMENT TO: Mayor & Members of Council FROM: Mark Russell, Municipal Law Enforcement Officer DATE: February 5, 2026 REPORT: BL-01/26 SUBJECT: BACKYARD CHICKENS IN SETTLEMENT AREAS BACKGROUND On January 16, 2020, Zoning By-law No. Z698-2020 amended By-law No. Z456-2003 by amending the definition of Livestock and below Section. • LIVESTOCK, shall mean farm animals kept for use, for propagation, or intended for profit and includes dairy and beef cattle, horses, swine, sheep, laying hens, chicken and turkey broilers, turkeys, goats, geese, ducks, mink and rabbit, and all other livestock but excluding animals such as pets raised or housed for recreational or hobby purposes. • 4.8.3 Livestock, including animals such as pets raised or housed for recreational or hobby purposes, shall not be kept in any Village Residential (R1, R2), Hamlet Residential (HR) or Mobile Home Park (MH) Zone. The Municipality’s Prohibited Animal By-law was last reviewed and adopted by the Council in 2021, and at the May 6, 2025, Council meeting the following resolution was passed: Report BL-02/21 re Amendment to By-law 2015-070 – Prohibited Animal By-law Moved by: Deputy Mayor Weisler Seconded by: Councilor Chilcott THAT Report BL-02/21 re Amendment to By-law 2015-070 – Prohibited Animal By-law for the Municipality of Bayham be received for information; AND THAT Section 2.9 be amended to read: 2.9 No person shall keep, own, harbor, or permit to be kept, owned or harboured any livestock within the Municipality of Bayham and furthermore, livestock, including animals such as pets raised or housed for recreational or hobby purposes, shall not be kept in identified areas in accordance with the Municipality of Bayham Zoning By-Law No. Z456- 2003, as amended. Page 2 of 5 Recently, the Municipality of Bayham received multiple complaints regarding backyard chickens in Eden, and notices of non-compliance were sent out. On October 2, 2025, two delegations regarding backyard chickens were received by Council. Council passed the following motion: Moved by: Councillor Froese Seconded by: Councillor Chilcott THAT staff be directed to report back with information and the associated changes to allow Backyard Hens in residential areas. DISCUSSION The By-law and Planning departments have been working together to research the implications of allowing Backyard Hens in residential areas. The Prohibited Animal By-laws Nos. 2015-070 & 2021-026 prohibit chickens & livestock from residing on properties that are not zoned Agricultural. The Municipality consulted with Arcadis. Arcadis advised that backyard chickens are generally categorized as “urban agriculture” and are exempt from MDS I and II requirements within settlement areas under Guideline 36 of Publication 853. This guideline also confirms that nuisance-related matters may be regulated by local councils. However, outside of settlement areas, the Minimum Distance Separation (MDS) requirements continue to apply without exemption. Recently, some municipalities have adopted new regulations regarding the keeping of chickens within urban areas. Staff completed some preliminary research, and the following information has been compiled to summarize the benefits and concerns of amending the current By-laws to allow the keeping of chickens in residential areas. Benefits Concerns Locally produced, better tasting eggs. Potential nuisances such as odor from manure and/or food scraps. Greater ability for individuals to control food sources. Potential source of disease including salmonella and in rare cases spread of avian influenza to humans. Better conditions for hens in comparison to industrial farms. Animal health and humane treatment if chickens are not properly cared for or stop producing. Pest control as hens can consume weeds and bugs. Attraction of predators such as rats, coyotes, raccoons, foxes, skunks, weasels, mice, etc. Provides education to children about where food is sourced. Trespass of chickens on neighboring properties and hazards for motorist when not contained. Compost of manure to create fertilizer. Housing and/or disposal for abandoned and/or seized chickens Page 3 of 5 Benefits Concerns Reduced energy usage and carbon emissions associated with transporting food. Conflict with neighboring pets (dogs and cats) Noise complaints Complaints about smell from chickens, devaluation of property, as Chicken coops and pens are often located along the property line. Increased staffing demands for licensing and administration. Increased complaints & inspections due to complaints. Staff reviewed other municipalities and their associated by-laws. Some of the restrictions for licensing/approval are listed below: • Backyard chickens are only permitted in Residential and Agricultural zoned properties with as specific minimum lot dimensions. • Chicken coops must be registered/licensed with the municipality. • The coop must be weather-protected, ventilated, predator-proof, and maintained clean. • Limited number of chickens. • Roosters are not permitted. • Chickens are only permitted in the rear yard. • The property must be fully fenced. • Chickens must be kept in an enclosed run when outside the coop and always contained on the owner’s property. • Minimum setbacks from property lines. • All food must be stored in rodent proof containers. • Each chicken is banded with such band containing contact information of owner. • No slaughtering or butchering of chickens is done on the property. • No on-site sales of eggs, meat or manure is permitted. • Manure storage is not permitted. • Property owners must be the owner of chickens and reside where the chickens are located. • Renters require written permission from owner to have chicken’s and must provide proof to the municipality. • Other by-laws, such as noise, animal regulations, lot maintenance, and property standards still apply if approval is granted. • Disposal of dead chickens must be done through an approved facility. • Zoning By-Law amendment would be required, which includes a public consultation process. Municipal Comparisons Staff have contacted neighboring municipalities and have conducted a survey to determine if chickens are permitted on residential properties and details regarding their program. Out of the 20 municipalities surveyed, only five municipalities allow backyard chickens on residential properties provided they meet their municipal program requirements. Page 4 of 5 Municipality Urban Chickens Allowed Max # Min Lot Size Permit Fee Coop Setback Rear Line Coop Setback Side Line Coop Size Aylmer No Bayham No Brant Yes 4 Hens & no Rooster N/A $150 2.44 m & 3 m from residential, 15 m from school, 7 m from church & 6 m from well. 2.44 m & 3 m from residential, 15 m from school, 7 m from church & 6 m from well. 10 m 2 & 2 m tall. Brantford Yes 9 Hen + 1 Rooster N/A $100 7.5 m from structures on other lots. 7.5 m from structures on other lots. N/A Central Egin No Collingwood No Cambridge No Ingersoll No Kitchener Yes 4 None $56.24 1.2 m 2.5 m Zoning London No Norfolk Yes 4 None None 3 m 3 m 10 m2 & max 3 m tall. Malahide No Strathroy No St. Mary’s No St. Thomas No Stratford No Tillsonburg No Thames Centre No Woodstock Yes N/A N/A N/A 20 Ft from dwelling & 50 ft. from neighbour’s house. 20 ft from dwelling and 50 ft from neighbour’s dwelling N/A Zorra No Staff have concerns regarding the potential enforcement and licensing of keeping chickens within the non-agricultural zones. Staff note that if chickens are permitted, this may result in further issues of neighbour disputes and general nuisance complaints. Staff are of the opinion Page 5 of 5 that we should maintain our current practice and chickens should remain outside settlement areas where zoning permits. In addition, it is noted that currently many residents are nearby agricultural operations, which offer local agricultural products for sale both on-site and at local markets (i.e. free-range eggs). Should Council wish to allow chickens in settlement areas and in zones where livestock is currently prohibited, amendments will need to be made to the Prohibited Animal By-law and Zoning By-law. A licensing system with enforcement mechanisms will also need to be established to regulate the chickens and pens/enclosures. If approved, staff expect to receive increased complaints about matters associated with this permission, including: roosters, too many chickens, locations of pens, condition of chickens, odours, noise, setbacks, fencing, trespassing, rodents, conditions of coops, people failing to license, and complaints about properties being devalued. Staff have concerns about the current operational capacity to handle increased enforcement and proper licensing practices. Because staff’s recommendation is to maintain the current practice and prohibitions, staff recommend this Report be received for information only. RECOMMENDATION: THAT Report BL-01/26 re Backyard Chickens in Settlement Areas be received for information. Respectfully submitted: Reviewed by: Mark Russell, CMM III Thomas Thayer, CMO, AOMC By-law Enforcement Officer Chief Administrative Officer 1 REPORT MUNICIPAL LAW ENFORCEMENT TO: Mayor & Members of Council FROM: Mark Russell, By-law Enforcement Officer DATE: February 5, 2026 REPORT: BL-02/26 SUBJECT: 2025 BY-LAW ENFORCEMENT SERVICES ANNUAL REPORT BACKGROUND In 2023, Council adopted By-law No. 2023-003, establishing a shared service Memorandum of Understanding (MOU) between the Municipality of Bayham and Township of Malahide for provision of services including By-law Enforcement. Under the MOU, By-law Enforcement services are provided by Bayham to both municipalities. This Report provides a summary of By-law Enforcement statistics for 2025 between January 1st to December 31.. DISCUSSION The responsibilities of the By-law Enforcement Officer include enforcing municipal by-laws, reviewing and updating by-laws, drafting Policies and Procedures related to by-law enforcement, supervising the Seasonal By-law Enforcement Officer, and managing the parking operations for the municipality. By-law enforcement in Bayham is governed by policies, which has a multi-step processes that focus on a customer service-based approach to enforcement. The multi-step process allows three (3) opportunities before the Municipality proceeds to remedial action, and the main goal is to gain voluntary compliance. For most calls for service, the steps outlined in the Municipal Law Enforcement Policy are followed unless there is a risk to public safety, in which case the By-law Enforcement Officer can go directly to an order. It is also important to note that the CAO is normally advised of complex lot maintenance, property standards, and zoning issues as these issues often have the potential to impact residents and businesses or may require a legal opinion. 2 Below are the By-law steps for when dealing with non-compliant properties. Step 1 – 1st Notice of Non-Compliance (Free) Step 2 – Either an Extension ($50) or a 2nd Notice of Non-Compliance ($150). The 2nd Notice of Non-Compliance is required when a re-inspection occurs and less than 75 percent of the work has not been completed without requesting an extension prior to the re-inspection. Step 3 – 3rd and Final Notice of Non-Compliance / Order ($200). Required at this stage if the requested work is still not completed. Step 4 - Remedial Action Remedial action happens after a final notice has not been complied with. Occasionally, charges or fines are required however, issuing fines is rare and often the last course of action as the main objective is on education and obtaining voluntary compliance. Over the past year, staff are pleased to report that only ten (10) fines were issued on five (5) properties. As a result, most of these properties have come into compliance without further action being required. By-Law Related Responses: Calls for Service By-law received 192 total complaints in 2025, which is an increase from last years numbers of 164 complaints. Staff have been tracking the response times between the date when a complaint has been received to initial response. These figures are included below. The following tables are the number of files closed and closure rate comparison. By-law services improved on its response rate for complaints in 2025, despite the 17-percent increase in the volume of complaints. The percentage of complaints actioned within five business days rose form 83 to 96 percent. By-law Complaints Closure Number by Years Complaint Type 2022 2023 2024 2025 Files Closed 87 268 150 189 Percent 50% 95% 92% 90% Bayham’s closure rate for files remains high. The 90-percent closure rate in 2025 is consistent with the previous two years and continues to demonstrate significantly improved levels of Tracking Numbers Category 2024 Numbers 2025 Numbers Number of Complaints Submitted 164 192 Investigated within 5 days 136 185 Percent Investigated within 5 days 83 % 96% 3 service since shared servicing began. Ward 1 received most of the complaints with 60 percent of all complaints coming from Port Burwell and Vienna (116 of 192). Followed by the other settlement areas, such as Straffordville and Eden. The weighting more towards Port Burwell can be attributed somewhat to changes to the Traffic and Parking By-law in 2025, which resulted in three times the number of parking complaints than in 2024. Complaints by Location Location 2024 2025 Calton 0 1 Corinth 5 1 Eden 21 24 North Hall 0 1 Port Burwell 64 71 Richmond N/A 3 Rural Bayham 12 22 Straffordville 27 24 Vienna 32 45 Total Count 164 192 12.5% 37% 23% 1.5% 12.5% 1% 11.5% By-law Complaints by Area Straffordville 24 Port Burwell 71 Vienna 45 Richmond 3 Eden 24 Corinth 1 North Hall 1 Calton 1 Rural Bayham 22 4 The following chart is a comparison of the total number of complaints over the past four years: By-law Complaints Number by Years Complaint Type 2022 2023 2024 2025 Animal Control 16 4 - - Dog – Barking - 12 8 4 Dog Bite - - 3 - Dog Other - - 2 - Dog at Large - 9 7 16 Dog – Number - 1 4 4 Dumping 2 4 1 - Encroachment - 2 1 1 Homeless - - - 1 Livestock at Large - 10 6 3 Lot Maintenance 21 23 36 16 Municipal Right of Way - - - 4 Noise 76 34 11 17 Non-By-law Issue - 5 13 14 Off-Road Vehicle - - 10 12 Open Burning 9 1 1 4 Other 12 6 - 1 Parking 12 30 15 46 Prohibited Animals 9 4 - - Property Standards 7 3 2 6 Roadside Garbage - 3 2 - Several By-law Issues - 7 16 5 Signs - - 1 2 Swimming Pool - - - 2 Zoning 11 26 24 34 Total Count 175 184 163 192 Note: The numbers in the above table, do not include the inquiries to staff which are not recorded by way of complaints such as e-mails, parking permits, or inquiries. 5 Parking and Zoning complaints have risen from the 2024 numbers, and the number of Lot Maintenance complaints have decreased. The method of parking enforcement remains unchanged and has primarily been initiated through a complaint, except in the case of overnight parking, public safety, or during the summer months in Port Burwell. The following table is a comparison of Parking Tickets issued since 2022. Parking Tickets Numbers Issue by Years 2022 2023 2024 2025 96 73 82 526 The table below is the breakdown of the fines issued by location for 2025. Tickets Numbers by Location for 2025 Tickets Numbers Issued in Eden 1 of the 526 tickets Issued in Straffordville 5 of the 526 tickets Issued in Vienna 6 of the 526 tickets Issued in Port Burwell 514 of the 526 tickets Issued in Beach Zone - Port Burwell 499 of the 526 tickets 2%0%0%8% 2%0%1%1%2% 8% 2% 9% 7% 6%2%1% 24% 3%0%3%1%1% 18% By-law Complaints by Type 2025 Dog –Barking 4 Dog Bite 0 Dog Other 0 Dog at Large 16 Dog –Number 4 Dumping 0 Encroachment 1 Homeless 1 Livestock at Large 3 Lot Maintenance 16 Municipal Right of Way 4 Noise 17 Non By-law Issue 14 Off –Road Vehicle 12 Open Burning 4 Other 1 Parking 46 Property Standards 6 Roadside Garbage 0 Several By-law Issues 5 Signs 2 Swimming Pool 2 Zoning 34 6 Issued Outside Beach Zone 27 of the 526 tickets Voided 86 of the 526 tickets Total Issued 526 Note: That most of the fines (523) were issued between the months of May 1st to September 30th, 2025, and were within the beach zone through the paid parking program. CONCLUSION In general, municipal by-laws are challenging as they are the most personal form of law enforcement towards an individual. Federal laws often reflect the moralities of society, which most people respect and agree with the enforcement of the violations. Provincial laws are slightly more invasive and regulatory for the individual, however they deal with restriction for the general safety and protection of society, such as the Highway Traffic Act or the Reopening of Ontario Act. Municipal by-laws are the most personal as they deal with the individual’s personal property including their house, possessions, and activities. As such, there needs to be a balance between the expectation of the complainant and the enforcement of the by-law. As previously stated, the By-law department utilizes a multi-step approach to gain compliance with a key focus on education. By-law enforcement is time-consuming in nature, particularly for a one-person department that serves two municipalities with various pieces of legislation. As education and attempting to work with the violators often leads to compliance, this multi-step approach has proven effective. The By-law department continuously works with other municipal departments, including Planning, Building, Public Works, Legal, and other external agencies such as the OPP, Port Burwell Provincial Park, and Southwestern Public Health Unit to assist in achieving compliance. Staff are pleased with all the accomplishments that have occurred over 2025, which include but are not limited to the following: - Presenting detailed Report on paid parking for the East Beach. - Approval of a new Traffic and Parking By-law - Receiving approval for set fines submitted to the Ministry of Attorney General. - Creating new ticket books. - Hiring, training, and monitoring seasonal by-law staff. - Implementation of paid parking pilot using Honk mobile platform and appropriate signage. - Review of 1495 Seasonal Residential Parking Permit applications, with 1397 permits (93 percent) being issued. - Maintaining existing level of service for both Bayham and Malahide, particularly through the summer months. - Managed parking operations resulting in the municipality receiving $99,806.47 in net revenue from parking. - Council approval of new parking rates and making the paid parking program permanent. - Managing a higher volume of files from both municipalities, while covering days at the beach for parking enforcement. 7 Staff have also started recruitment for the 2026 Seasonal By-law Enforcement Officer to support the paid parking program. STRATEGIC PLAN Not applicable. RECOMMENDATION 1. THAT Report BL-02/26 re 2025 By-law Enforcement Service Annual Report be received for information. Respectfully submitted: Reviewed by: Mark Russell, CMM III Thomas Thayer, CMO, AOMC By-Law Enforcement Officer Chief Administrative Officer ZBA-20/25 NOTICE OF A PUBLIC MEETING CONCERNING A PROPOSED ZONING BY-LAW AMENDMENT IN THE MUNICIPALITY OF BAYHAM APPLICANT: BUILD ONTARIO DEVELOPMENTS LOCATION: 11265 PLANK ROAD, EDEN TAKE NOTICE that the Municipality of Bayham has received a complete application for a proposed Zoning By-law Amendment (ZBA-20/25). AND TAKE NOTICE that the Council of the Corporation of the Municipality of Bayham will hold a public meeting on Thursday, February 5th, 2026 at 7:30 p.m. in the Municipal Council Chambers, 56169 Heritage Line, Straffordville, to consider a proposed Zoning By-law Amendment under Section 34 of the Planning Act. Public Planning Meetings may be viewed virtually through the live-stream on the Municipality of Bayham’s YouTube Channel THE PURPOSE of this By-law Amendment is to rezone the subject property from a ‘Hamlet Residential with Holding (HR(h2)’ Zone to ‘Hamlet Residential with Holding (HR(h2)-XX)’ Zone to permit Site Specific Zoning over the noted proposed Lots as follows: Lot 37 • Section 9.12.XX to permit the Front Lot Line to be deemed the longer boundary line abutting a street along a corner Lot; whereas Section 2 defines the Front Lot Line to be shorter boundary line abutting the street for a corner Lot. Lots 7 – 14 and 33 • Section 9.12-XX to permit a minimum Lot Frontage of 14.6m; whereas Section 9.3 requires a minimum Lot Frontage of 20.0m Lots 22 – 27, 30, 31, 38 & 39 • Section 9.12.XX to permit a maximum Lot Coverage of 35%; whereas Section 9.4 requires a maximum Lot Coverage of 30% The subject property is known as 11265 Plank Road, west side, and south of Eden Line. A future application to remove the Holding Provision (h2) is anticipated after Draft Plan Approval of application 34T-BA2503 is granted and the requirements of the Holding Provision have been fulfilled. THE EFFECT of this By-law is to permit the development of the lands in accordance with draft plan of subdivision application 34T-BA2503, where corner Lot 37 is to be oriented along the longer street line rather than the shorter street line, Lots 7 - 14 and 33 to have a smaller Lot Frontage than required, and Lots 22 – 27, 30 31, 38 & 39 to have a greater Lot Coverage than required under the Hamlet Residential Zone. ANY PERSON may attend the public meeting and/or make a written or verbal representation in support of or in opposition to the proposed amendment. Written comments submitted on or before 12:00 Noon on Wednesday, January 28th, 2026 to munderhill@bayham.on.ca or at the municipal office will be included in the public meeting agenda. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting or make written submissions to the Municipality of Bayham before the by-law is passed, the person or public body is not entitled to appeal the decision of the Council of the Corporation of the Municipality of Bayham to the Ontario Land Tribunal. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting, or make written submissions to the Municipality of Bayham before the by-law is passed, the person or public body may not be added as a party to the hearing of an appeal before the Ontario Land Tribunal unless, in the opinion of the Tribunal, there are reasonable grounds to do so. IF YOU WISH to be notified of the adoption of the proposed amendment, you must make a written request to the undersigned. ADDITIONAL INFORMATION relating to the proposed amendment may be obtained at the Municipal Office. See More Page 2 ZBA-20/25 Dated at the Municipality of Bayham this 16th day of January 2026. Margaret Underhill Planning Coordinator/Deputy Clerk Municipality of Bayham 56169 Heritage Line, P.O. Box 160 Straffordville, ON, N0J 1Y0 T: 519-866-5521 Ext 222 F: 519-866-3884 E: munderhill@bayham.on.ca W: www.bayham.on.ca ZBA-25/25 NOTICE OF A PUBLIC MEETING CONCERNING A PROPOSED ZONING BY-LAW AMENDMENT IN THE MUNICIPALITY OF BAYHAM APPLICANT: PEDRO & ANNA NEUFELD LOCATION: 54304 EDEN LINE, NORTH HALL TAKE NOTICE that the Municipality of Bayham has received a complete application for a proposed Zoning By-law Amendment (ZBA-25/25). AND TAKE NOTICE that the Council of the Corporation of the Municipality of Bayham will hold a public meeting on Thursday, February 5th, 2026 at 7:30 p.m. in the Municipal Council Chambers, 56169 Heritage Line, Straffordville, to consider a proposed Zoning By-law Amendment under Section 34 of the Planning Act. Public Planning Meetings may be viewed virtually through the live-stream on the Municipality of Bayham’s YouTube Channel THE PURPOSE of this By-law Amendment is to rezone the subject property from a dual ‘Hamlet Residential (HR)’ Zone and Urban Industrial (M4) Zone to a Site-Specific dual ‘Hamlet Residential (HR-XX)’ Zone and Urban Industrial (M4-XX) Zone with new zoning boundaries to reflect the uses existing on the property and to permit an addition to the existing residential dwelling, which requires the following provisions: • Section 9.2.XX to permit an ARU with a maximum gross floor area of 46% of the Primary Dwelling Unit; whereas a maximum of 40% is required under Section 4.59(e). • Section 9.2.XX to permit a setback of 24.0 metres to the Centre Line of County Road 44, known as Eden Line; where-as a setback of 26.0 metres is required under Section 4.22.1(b) • Section 23.13.XX to permit a Lot Frontage of 26m in an M4 zone with no municipal water or sanitary services; whereas a minimum of 30m is required under Section 23.4 The subject property is known as 54304 Eden Line, north side, and east of Culloden Road. THE EFFECT of this By-law is to adjust the current boundary between the M4 and HR zones within the subject property to permit an Additional Residential Unit attached to the existing dwelling and recognize the location of the existing industrial business, while also permitting an ARU that exceeds the Maximum Floor Area requirements and recognizing the existing deficient setback to a County Road. ANY PERSON may attend the public meeting and/or make a written or verbal representation in support of or in opposition to the proposed amendment. Written comments submitted on or before 12:00 Noon on Wednesday, January 28th, 2026 to munderhill@bayham.on.ca or at the municipal office will be included in the public meeting agenda. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting or make written submissions to the Municipality of Bayham before the by-law is passed, the person or public body is not entitled to appeal the decision of the Council of the Corporation of the Municipality of Bayham to the Ontario Land Tribunal. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting, or make written submissions to the Municipality of Bayham before the by-law is passed, the person or public body may not be added as a party to the hearing of an appeal before the Ontario Land Tribunal unless, in the opinion of the Tribunal, there are reasonable grounds to do so. IF YOU WISH to be notified of the adoption of the proposed amendment, you must make a written request to the undersigned. ADDITIONAL INFORMATION relating to the proposed amendment may be obtained at the Municipal Office. Dated at the Municipality of Bayham this 16th day of January 2026. Margaret Underhill Planning Coordinator/Deputy Clerk Municipality of Bayham 56169 Heritage Line, P.O. Box 160 Straffordville, ON, N0J 1Y0 T: 519-866-5521 Ext 222 F: 519-866-3884 E: munderhill@bayham.on.ca W: www.bayham.on.ca ZBA-01/26 NOTICE OF A PUBLIC MEETING CONCERNING A PROPOSED ZONING BY-LAW AMENDMENT IN THE MUNICIPALITY OF BAYHAM APPLICANT: FRANK WALL, SAHIYA WALL & CORNELIUS WALL LOCATION: 23 OAK STREET, VIENNA TAKE NOTICE that the Municipality of Bayham has received a complete application for a proposed Zoning By-law Amendment (ZBA-01/26). AND TAKE NOTICE that the Council of the Corporation of the Municipality of Bayham will hold a public meeting on Thursday, February 5th, 2026 at 7:30 p.m. in the Municipal Council Chambers, 56169 Heritage Line, Straffordville, to consider a proposed Zoning By-law Amendment under Section 34 of the Planning Act. Public Planning Meetings may be viewed virtually through the live-stream on the Municipality of Bayham’s YouTube Channel THE PURPOSE of this By-law Amendment is to rezone the subject property from a ‘Residential (R1)’ Zone to a ‘Site Specific Residential (R1-XX)’ Zone to permit a new accessory building, which requires the additional following provisions: • Section 10.12.XX to permit a Maximum Height for an Accessory Building of 7.0m; where a Maximum Height of 4.5m is required under Section 10.11b) • Section 10.12.XX to permit a Maximum Floor Area for an Accessory Building of 149m²; where a Maximum Floor Area of 75m² is required under Section 10.11c) The subject property is known as 23 Oak Street, west side, and south of Ann Street. THE EFFECT of this By-law is to permit the construction of a new accessory building for residential personal use that exceeds the Maximum Height and Floor Area requirements for an Accessory Building. ANY PERSON may attend the public meeting and/or make a written or verbal representation in support of or in opposition to the proposed amendment. Written comments submitted on or before 12:00 Noon on Wednesday, January 28th, 2026 to munderhill@bayham.on.ca or at the municipal office will be included in the public meeting agenda. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting or make written submissions to the Municipality of Bayham before the by-law is passed, the person or public body is not entitled to appeal the decision of the Council of the Corporation of the Municipality of Bayham to the Ontario Land Tribunal. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting, or make written submissions to the Municipality of Bayham before the by-law is passed, the person or public body may not be added as a party to the hearing of an appeal before the Ontario Land Tribunal unless, in the opinion of the Tribunal, there are reasonable grounds to do so. IF YOU WISH to be notified of the adoption of the proposed amendment, you must make a written request to the undersigned. ADDITIONAL INFORMATION relating to the proposed amendment may be obtained at the Municipal Office. Dated at the Municipality of Bayham this 16th day of January 2026. Margaret Underhill Planning Coordinator/Deputy Clerk Municipality of Bayham 56169 Heritage Line, P.O. Box 160 Straffordville, ON, N0J 1Y0 T: 519-866-5521 Ext 222 F: 519-866-3884 E: munderhill@bayham.on.ca W: www.bayham.on.ca ZBA-02/26 NOTICE OF A PUBLIC MEETING CONCERNING A PROPOSED ZONING BY-LAW AMENDMENT IN THE MUNICIPALITY OF BAYHAM APPLICANT: GERHARD GUENTHER LOCATION: 53900 HERITAGE LINE, RICHMOND TAKE NOTICE that the Municipality of Bayham has received a complete application for a proposed Zoning By-law Amendment (ZBA-02/26). AND TAKE NOTICE that the Council of the Corporation of the Municipality of Bayham will hold a public meeting on Thursday, February 5th, 2026, at 7:30 p.m. in the Municipal Council Chambers, 56169 Heritage Line, Straffordville, to consider a proposed Zoning By-law Amendment under Section 34 of the Planning Act. Public Planning Meetings may be viewed virtually through the live-stream on the Municipality of Bayham’s YouTube Channel THE PURPOSE of this By-law Amendment is to rezone the subject property from a ‘Hamlet Residential with Holding Provisions (HR(h2), (h3))’ Zone to a ‘Site Specific Hamlet Residential (RR-XX)’ Zone to permit a new Single Detached Dwelling, which requires the additional following provision: • Section 9.12.XX to permit a Minimum Rear Yard of 8.2m; where a Minimum Rear Yard of 9.0m is required under Section 9.10 The following Holding Provisions are proposed to be removed as part of this application: • Section 3.3b) h2 Purpose: To ensure orderly development, a subdivision agreement with the Municipality, which addresses financial and servicing impacts of new development to the Municipality, will be required prior to the removal of the “h2” zone symbol. • Section 3.3c) h3 Purpose: To ensure the mitigation of impacts to natural heritage features and their ecological functions, an Environmental Impact Study will be required prior to the removal of the “h3” zone symbol. The subject property is known as 53900 Heritage Line, north side, and south of Richmond Road. THE EFFECT of this By-law is to permit the construction of a new single detached dwelling with a reduced rear yard setback within the Hamlet Residential Zone, and to remove holding provisions that are deemed to no longer be required as the site is not suitable for a subdivision and is no longer within the regulated area of the Long Point Regional Conservation Authority (LPRCA). ANY PERSON may attend the public meeting and/or make a written or verbal representation in support of or in opposition to the proposed amendment. Written comments submitted on or before 12:00 Noon on Wednesday, January 28th, 2026 to munderhill@bayham.on.ca or at the municipal office will be included in the public meeting agenda. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting or make written submissions to the Municipality of Bayham before the by-law is passed, the person or public body is not entitled to appeal the decision of the Council of the Corporation of the Municipality of Bayham to the Ontario Land Tribunal. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting, or make written submissions to the Municipality of Bayham before the by-law is passed, the person or public body may not be added as a party to the hearing of an appeal before the Ontario Land Tribunal unless, in the opinion of the Tribunal, there are reasonable grounds to do so. IF YOU WISH to be notified of the adoption of the proposed amendment, you must make a written request to the undersigned. ADDITIONAL INFORMATION relating to the proposed amendment may be obtained at the Municipal Office. Dated at the Municipality of Bayham this 16th day of January 2026. Margaret Underhill Planning Coordinator/Deputy Clerk Municipality of Bayham 56169 Heritage Line, P.O. Box 160 Straffordville, ON, N0J 1Y0 T: 519-866-5521 Ext 222 F: 519-866-3884 E: munderhill@bayham.on.ca W: www.bayham.on.ca NOTICE OF A PUBLIC MEETING CONCERNING THE FINAL DRAFT OFFICIAL PLAN IN THE MUNICIPALITY OF BAYHAM OFFICIAL PLAN REVIEW TAKE NOTICE that the Corporation of the Municipality of Bayham is in the process of conducting an Official Plan Review, and that the County of Elgin is the Approval Authority for Official Plan Amendments. that Council and the Corporation of the Municipality of Bayham will hold a Public Meeting under Section 17(15) and Section 26(3) of the Planning Act, R.S.O. 1990, Chapter P.13. to present the final draft of the new Official Plan of the Municipality of Bayham Official Plan Review project. AND TAKE NOTICE that the Council of the Corporation of the Municipality of Bayham will hold this Public Meeting on Thursday, March 5th, 2026, at 6:00 p.m. in the Municipal Council Chambers, Lower Level, 56169 Heritage Line, Straffordville. The Public Meeting may be viewed virtually through the live-stream on the Municipality of Bayham’s YouTube Channel THE PURPOSE of the Public Meeting is to present the final draft of the new Official Plan. A presentation will be made by the consultant team, Arcadis, to review the key themes of the new Official Plan and the changes since the December 2024 Draft Official Plan based on the approved County of Elgin Official Plan and input received, including from the Open Houses that took place in June 2024 and January 2025. The current Bayham Official Plan was approved in February 2019, and Municipalities are required under Section 26 of the Planning Act to conduct an Official Plan Review every five (5) years to ensure the Official Plan: • Is consistent with the Provincial Policy Statement; • Has regard to the matters of provincial interest, and; • Conforms with the County of Elgin Official Plan. The purpose of an Official Plan Review is to ensure that policies of the Official Plan are in conformity with provincial and County plans and policies and continue to meet the community’s vision for future change and development. This Official Plan Review is a municipal-wide initiative affecting all lands within the jurisdiction of the Municipality of Bayham. THE EFFECT of this will be the preparation of a Final Draft Official Plan to present to the Municipality of Bayham Council for adoption. Following adoption, the adopted Official Plan will be sent to the County of Elgin for approval. ANY PERSON may attend the public meeting and/or make a written or verbal representation in support of or in opposition to the final draft Official Plan. The Municipality encourages your comments throughout the Official Plan Review process. If you have any comments, questions, require further information, or would like to be added to the project mailing list for updates and to be notified of the future decision of the County of Elgin on the proposed Official Plan, please email or mail to: • opreview@bayham.on.ca • Municipal Office: Attention - Official Plan Review (56169 Heritage Line, P.O. Box 160, Straffordville, ON, N0J 1Y0) • Oral submissions may also be expressed at Open Houses or the Statutory Public Meeting. All comments received will form part of the public record and will be circulated to Council, Municipal Staff, and Arcadis. Written comments submitted on or before 12:00 Noon on Wednesday, February 25th , 2026 to munderhill@bayham.on.ca or at the municipal office will be included in the public meeting agenda. IF A PERSON OR PUBLIC BODY OR REGISTERED OWNER of any land to which the plan would apply would otherwise have an ability to appeal the decision of the County of Elgin to the Ontario Land Tribunal but does not make oral submissions at a public meeting or make written submissions to the Municipality of Bayham before the proposed Bayham Official Plan is adopted, the specified person, public body, or registered owner of any land to which the plan would apply is not entitled to appeal the decision to the Ontario Land Tribunal. IF A PERSON OR PUBLIC BODY does not make oral submissions at a public meeting or make written submissions to the Municipality of Bayham before the proposed official plan is adopted, the person or public body may not be added as a party to the hearing of an appeal before the Ontario Land Tribunal unless, in the opinion of the Tribunal, there are reasonable grounds to add the person or public body as a party. IF YOU WISH to be notified of the adoption of the Official Plan, you must make a written request to the undersigned. ADDITIONAL INFORMATION relating to the proposed amendments may be obtained by contacting the Municipal Office. Dated at the Municipality of Bayham this 28th day of January 2026. Margaret Underhill Planning Coordinator/Deputy Clerk Municipality of Bayham P.O. Box 160, 56169 Heritage Line Straffordville, ON, N0J 1Y0 T: 519-866-5521 Ext 222 F: 519-866-3884 E: munderhill@bayham.on.ca W: www.bayham.on.ca REPORT DEVELOPMENT SERVICES TO: Mayor & Members of Council FROM: Scott Sutherland, Chief Building Official DATE: February 5, 2026 REPORT: DS-02/26 SUBJECT: UNLICENSED TARION BUILDERS (FOLLOW-UP TO DECEMBER 18, 2025 ITEM 13.1.2B) BACKGROUND At its Mach 21, 2019 meeting, Council received By-law No. 2019-024 for consideration and adoption. Council passed the following motion: Moved by: Councillor Chilcott Seconded by: Councillor Donnell THAT By-Law No. 2019-010 be read a third time and finally passed; AND THAT By-law No. 2013-023, 2019-024, 2019-025, Z683-2019 and Z684-2019 be read a first, second and third time and finally passed. By-law No. 2019-024 is the Municipality’s current Building By-law. At its December 18, 2025 meeting, Council received correspondence from Barry Wade re Unlicensed Tarion Builders. The Chief Administrative Officer presented information provided by the Chief Building Official on the topic. Council passed the following motion: Moved by: Councillor Chilcott Seconded by: Deputy Mayor Weisler THAT the correspondence from Barry Wade re Unlicensed Tarion Builders be received for information; AND THAT staff be directed to report back with further information. DISCUSSION Municipal building departments in Ontario have long been caught between the issuance of building permits and the enforcement of illegal home building and selling. While municipalities are responsible for issuing building permits under the Building Code Act, they are not the enforcement authority for builder licensing under the New Home Construction Licensing Act, 2017 (NHCLA) or warranty compliance under the Ontario New Home Warranties Plan Act (ONHWPA). Legislative Context Under the ONHWPA, a “home” is defined to include: (a) a self-contained one-family dwelling, detached or attached to one or more others by one or more common walls, (b) a building composed of more than one and not more than two self-contained, one-family dwellings under one ownership, (c) a condominium unit that is a residential dwelling, including the common elements in respect of which the unit has an appurtenant common interest as described in the condominium declaration of the condominium corporation, or (d) any other dwelling of a class prescribed by the regulations as a home to which this Act applies, and includes any structure or appurtenance used in conjunction therewith, but does not include a dwelling built and sold for occupancy for temporary periods or for seasonal purposes; (“logement”) Any person or company that builds or sells new homes is required to: • Be licensed under the NHCLA by the Home Construction Regulatory Authority (HCRA); and • Enroll the home in the New Home Warranty Program with Tarion. Owner-Builder Exception An individual constructing a home for their own use and occupation may be exempt from licensing and warranty requirements. Key implications of the owner-builder exemption: • The home is not eligible for statutory warranty coverage under the ONHWPA. • The owner assumes full responsibility as the builder, including: o Project management; o Workplace safety and insurance; o Hiring and supervising trades and subcontractors; o Obtaining all required municipal permits. Current Permit Application Practice As part of a building permit application, applicants are asked whether the proposed construction is a “new home” under the ONHWPA and whether registration is required. (Note: The application form is out of date and should refer to the HCRA and license number). If registration is not required, no Tarion warranty registration number is provided. In practice, if this is the case, municipalities generally assume the applicant is an owner-builder and the building permit is issued accordingly. Ongoing Issues Problems arise when: • Unlicensed builders operating in the shadows convince homeowners to name themselves as owner-builders on the permit application, even though the builder is doing the actual work. Homeowners may be promised some savings, but they are rarely aware of the risks they are taking on (e.g. WSIB obligations, lack of statutory warranty coverage). • Homes constructed under the owner-builder exemption are sold prior to any significant occupancy, effectively bypassing licensing and warranty requirements. The risk of substandard work by an unlicensed builder, who hasn’t demonstrated competency through HCRA licensing, is now borne by the subsequent purchaser. That subsequent purchaser may also have no statutory warranty to rely on. While many municipalities continue to advocate for legislative changes, municipalities lack authority to enforce HCRA or ONHWPA compliance, therefore illegal building activity is not systematically tracked by municipal building departments. Reporting and Prevention Measures Currently, the most effective tools available are: • Reporting suspected illegal building activity directly to the HCRA through its complaint process, which allows the regulator to investigate and track patterns of non-compliance. • Encouraging the public to verify builders through the HCRA Licensed Builder Directory prior to construction or purchase. Ensuring a builder is properly licensed significantly reduces future risk. The Ministry of Public and Business Service Delivery has promised a public consultation on solutions to illegal building, created with the input and support of the HCRA, building officials across the province, home builders, and consumer advocates. However, there is no specific date for the consultation’s release. Limitations of the Permit Application Form The application form for a permit to construct or demolish a building must be submitted using: • A prescribed form, or • A form approved by the Minister. As a result, municipalities cannot amend the form to request additional information related to owner-builder status or intent to sell. (As noted above, the form is also significantly out of date). Potential Municipal Response Some municipalities have addressed this gap by requiring a letter from the owner confirming owner-builder status when no Tarion registration (HCRA license) number is provided. As noted at the December 18, 2025 meeting, some municipalities such as Tillsonburg currently have this protocol. While this letter does not create enforcement authority, it establishes a written declaration of intent that can be provided to the HCRA as supporting documentation during their investigations. To ensure consistency and authority, should this requirement be the recommended direction of Council, it should be formally established within the municipal Building By-law, rather than applied administratively. STRATEGIC PLAN Not applicable. RECOMMENDATION 1. THAT Report DS-02/26 re Unlicensed Tarion Builders (Follow-up from December 18, 2025 Item 13.1.2B) be received for information. Respectfully Submitted by: Reviewed by: Scott Sutherland, CBCO Thomas Thayer, CMO, AOMC Chief Building Official Chief Administrative Officer OFFICE OF THE C LERK Phone: (807) 274-5323 | Fax: (807) 274-8479 Mailing Address: 320 Portage Avenue Fort Frances, ON P9A 3P9 Email: town@fortfrances.ca Website: www.FortFrances.ca January 26, 2026 Re: Resolution # 2025 - Call on Province of Ontario to Establish an Ontario Airport Capital Assistance Program (OACAP) On January 12, 2026, Council of the Town of Fort Frances passed the following into resolution: Whereas the Fort Frances Municipal Airport serves the Town of Fort Frances, the District of Rainy River, and the First Nation communities of the Southern Treaty #3 region; and Whereas the Fort Frances Municipal Airport plays a vital role in supporting medevac flights, wildfire response operations, business travel, tourism, and the movement of essential goods for the entire region; and Whereas the termination of scheduled passenger air service in May, 2024 resulted in the loss of eligibility to funding through the federal Airport Capital Assistance Program (ACAP); and Whereas other provinces, including British Columbia, Saskatchewan, and Alberta, have recognized the importance of regional airports by establishing dedicated provincial funding programs, and Ontario currently does not; and Whereas maintaining aging airport infrastructure has become increasingly difficult without predictable provincial support; and Whereas regional airports serve broader provincial and regional interests, and municipalities cannot shoulder the financial burden alone. Therefore, be it resolved that the Council of the Town of Fort Frances hereby calls upon the Province of Ontario to: 1. Establish an Ontario Airport Capital Assistance Program (OACAP) to provide dedicated annual funding for small and regional airports; and 2. Ensure eligibility for a broad range of capital projects, including safety upgrades, equipment replacement, and runway maintenance; and 3. Engage municipalities in program design, ensuring local needs and realities are reflected in funding criteria; and 4. Recognize the essential role of airports in medevac and emergency services, especially in remote and northern communities. Moved by Michael Behan, Seconded by Steven Maki, Carried. For more information about this resolution, please contact the Office of the Clerk Chelsea Greig, Municipal Clerk | cgreig@fortfrances.ca Ally Lewis, Communications Coordinator & Deputy Clerk | alewis@fortfrances.ca 1 | P a g e Township of Southgate Phone: 519-923-2110 Administration Office Toll Free: 1-888-560-6607 185667 Grey County Road 9, RR 1 Fax: 519-923-9262 Dundalk, ON N0C 1B0 Web: www.southgate.ca January 21, 2026 Re: Township of Southgate - Notice of Motion – OMERS Bill 68 Municipal Resolution Please be advised that at the January 21, 2026, regular Council meeting, the Council of the Corporation of the Township of Southgate, approved the following: No. 2026-027 Moved By Deputy Mayor Dobreen Seconded By Councillor Shipston WHEREAS the Ontario Municipal Employees Retirement System (OMERS) Pension Fund serves over 1,000 employers and over half a million employees and retirees from diverse groups including: municipal governments, school boards, libraries, police and fire departments, children’s aid societies, and electricity distribution companies; and WHEREAS the long-standing jointly-sponsored governance model with two corporate boards has provided stability, accountability, and fairness for both plan members and employers for more than two decades; and WHEREAS the Government of Ontario has passed legislative changes to OMERS’ governance structure through Bill 68; and WHEREAS these changes would replace the current OMERS Sponsors Corporation with a new Sponsors Council that would lose its corporate status and independent resources; and WHEREAS the proposed model could allow pension decisions affecting municipal employers and employees to be made without meaningful municipal oversight, increasing financial risk for municipalities and local taxpayers; and WHEREAS municipalities are already under significant financial strain and cannot absorb additional pension costs without consequences for property taxes or local services; THEREFORE BE IT RESOLVED THAT the Township of Southgate does not support the legislative changes to the OMERS Act contained in Bill 68 and requests that the Government of Ontario reconsider the advisability of proceeding with these changes; FURTHER BE IT RESOLVED THAT the Council of the Township of Southgate supports the Association of Municipalities of Ontario (AMO) in calling on the Government of Ontario to maintain the current OMERS governance model, with two corporate Boards, as the structure that would best deliver on the long-term interests of municipalities, taxpayers, and employees. BE IT FURTHER RESOLVED THAT this resolution be circulated to The Honourable Rob Flack, Minister of Housing and Municipal Affairs, The Honourable Peter Bethlenfalvy, Minister of Finance, MPP Paul Vickers, The Association of Municipalities of Ontario (AMO), and all Ontario municipalities. 2 | P a g e If you have any questions, please contact our office at (519) 923-2110. Sincerely, Lindsey Green, Clerk Township of Southgate CC: Honourable Rob Flack, Minister of Housing and Municipal Affairs Honourable Peter Bethlenfalvy, Minister of Finance MPP Paul Vickers The Association of Municipalities of Ontario (AMO) Ontario Municipalities REPORT TREASURY DEPARTMENT TO: Mayor & Members of Council FROM: Lorne James, Treasurer DATE: February 5, 2026 REPORT: TR-02/26 SUBJECT: 2027 BUDGET SCHEDULE BACKGROUND Section 290(1) of the Municipal Act requires local municipalities in each year to prepare and adopt a budget. The Municipality currently prepares three budgets: Current year Capital Budget, Rate-supported Operating Budget and the 10-Year Capital Plan. This Report presents the proposed meeting dates for Council review and approval of the above-mentioned 2027 Budgets. The purpose of preparing budgets is to allow Council to develop policy in financial terms and to assist in setting priorities and establishing service levels for the upcoming year before expenditures take place. DISCUSSION In order to begin developing Bayham’s 2027 Operating and Capital Budgets, Council approval of the proposed budget schedule is required. The proposed timelines are similar to many prior years’ timelines to allow for tendering and effective procurement months before 2027 purchases. It is anticipated that the budgets will be published for public consumption approximately one month in advance of the October 6, 2026 and January 5, 2027 meetings. Budget Proposed 2027 Budget Review Dates For Discussion Start Time Budget Public Consultation February 5, 2026 – September 30, 2026 2027 and 10-Year Capital Plan Tuesday, October 6, 2026 (Special Meeting) 6:30 p.m. 2027 Levy Supported Operating Budget Tuesday, January 5, 2027 (Special Meeting) Thursday, January 21, 2027 (Budget Open House) 6:30 p.m. 6:30 p.m. to 7:00 p.m. 2027 BUDGET CONSULTATIONS In 2026, staff will continue the practice of posting budget background information explaining the purpose of the Operating Budget and Capital Budget and the difference between Operating and Capital expenses. This information will continue to be posted on the 2027 Budget Consultations page on the Municipal Website. During the consultation, it will be clear the role of the consultation is to obtain public comment on the budgets and ideas for the upcoming budgets for Council consideration. This consultation is to obtain comments of an advisory nature for Council consideration during budget deliberations. The same comments will be attached to the respective budget reports as an Appendix. Notice of consultation will be posted on the Municipal website and posted on the Municipal Office and Library notice boards. Notice will also be posted on the winter and summer newsletter in the mail out of February and August tax bills. POTENTIAL BASE BUDGET IMPACTS For 2027, the most significant potential base operating budget drivers that may have an impact are as follows: • annualization of initiatives undertaken in 2026 • tariff impacts and supply chain constraints • general inflation • foreign exchange fluctuations • utility cost increases • impact of fluctuating fuel costs and costs of petroleum based products • increased operating charges from approved capital projects • increased transfers to Reserves and Reserve Funds to fund capital programs based on 10-year capital budget from 2026 • provincial funding level changes • Asset Management Planning Annual Funding Increase The actual impacts of these items are unknown at this time and will depend on further information and decisions. GUIDELINES Some of the costs identified above can be avoided and others will be directly related to previous decisions or are uncontrollable. In the interim, staff will be directed to prepare the 2027 Budgets following past practices with the goal to maintain costs at their current level wherever possible. These guidelines are an integral part of the budget process to assist staff when reviewing operational needs and service levels. In order to meet these dates, staff will initiate the 2027 budget process once the 2026 budget has been approved. This will allow staff the time required to present a responsible, complete, comprehensive, and accurate budget for Council review and consideration. STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. RECOMMENDATION 1. THAT Report TR-02/26 re 2027 Budget Schedule be received for information; 2. AND THAT the proposed budget guidelines be approved; 3. AND THAT the following dates be established for the 2027 budget process: • February 5 – September 30, 2026 – Budget Public Consultation Period • Tuesday, October 6, 2026 – 2027-2036 Capital Budget Meeting • Tuesday, January 5, 2027 – 2027 Operating Budget Meeting • Thursday, January 21, 2027 – Budget Open House Respectfully submitted: Reviewed by: Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer REPORT TREASURY DEPARTMENT TO: FROM: DATE: REPORT: Mayor & Members of Council Lorne James, Treasurer February 6, 2026 TR-03/26 SUBJECT: 2025 PUBLIC SECTOR SALARY DISCLOSURE ACT (PSSDA) BACKGROUND The Public Sector Salary Disclosure Act (PSSDA) requires all organizations covered by the Act to prepare a list, each year, of the employees who were paid $100,000 or more the year before, with their names, positions, salaries and the value of their taxable benefits. Each organization must make the list available for inspection without charge between March 31 and December 31 of the year it disclosed. Employee Position Salary Paid Taxable Benefits Roloson, Edward Manager of Capital ProjectslWater/ Wastewater $213,390.61 $991.12 Thayer, Thomas Chief Administrative Officer $181,504.27 $768.30 Adams, Steve Manager of Public Works|Drainage Superintendent $168,776.43 $490.62 James, Lorne Treasurer $150,357.82 $768.30 Baranik, Harry Fire Chief $124,226.55 $768.30 Elliott, Meagan Clerk $117,843.12 $465.92 Pilkey, James Roads Operations Supervisor $114,684.79 $490.62 Swance, Adam Water/Wastewater Operations Supervisor $109,868.74 $589.68 Underhill, Margaret Deputy Clerk/ Planning Coordinator $108,864.19 $629.46 STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. RECOMMENDATION 1. THAT Report TR-03/26 re 2025 Public Sector Salary Disclosure Act (PSSDA) be received for information. Respectfully submitted by: Reviewed by: Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer REPORT TREASURY DEPARTMENT TO: Mayor & Members of Council FROM: Lorne James, Treasurer DATE: February 5, 2026 REPORT: TR-04/26 FILE NO. F03.03 SUBJECT: 2025 COUNCIL REMUNERATION AND EXPENSES BACKGROUND Pursuant to Section 284(1) of the Municipal Act, 2001, as amended, a Statement of Remuneration and Expenses for all the Members of Council is to be submitted by the Treasurer each year to Council. Itemized below are the remuneration and expenses for each Member of Council for the year 2025. Taxable Expenses Conference & Mileage Reimbursements Ed Ketchabaw 25,484.69 0.00 0.00 Susan Chilcott 16,392.85 0.00 0.00 Tim Emerson 16,392.85 0.00 0.00 Dan Froese 16,392.85 0.00 0.00 Rainey Weisler 19,560.90 0.00 1,154.30 Total $94,224.14 $0.00 $1,154.30 In 2023 and 2024, Deputy Mayor Rainey Weisler received remuneration and claimed expenses through the Association of Municipalities of Ontario (AMO) for her AMO Board work. There was no such remuneration or expense claims in 2025. STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. RECOMMENDATION 1. THAT Report TR-04/26 re 2025 Council Remuneration and Expenses be received for information. Respectfully submitted by: Reviewed by: Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer REPORT CAO TO: Mayor & Members of Council FROM: Thomas Thayer, Chief Administrative Officer DATE: February 5, 2026 REPORT: CAO-04/26 SUBJECT: TRANSFER PAYMENT AGREEMENT – 2026 FIRE PROTECTION GRANT BACKGROUND On August 13, 2025, Ontario’s Solicitor General, The Right Honourable Michael Kerzner, announced the second round for the Fire Protection Grant was open for applications and added the funding for the 2025/2026 grant was doubled from $10,000,000 to $20,000,000. These funds are restricted to: • Equipment, supplies and personal protective equipment that enhance municipal cancer prevention initiatives • Equipment and supplies for lithium-ion battery incident response • Minor infrastructure upgrades and modernization, including enhanced broadband and internet connectivity. DISCUSSION Upon being notified of the Fire Protection Grant program, staff reviewed the Bayham Fire Stations in the context of the grant to determine if an application was suitable. Staff applied for the grant to continue the fight to protect the firefighters against cancer. This year’s application included three portable air purifiers and additional balaclavas for the firefighters. The air purifiers are to be used in the station apparatus bays to help reduce the amount of air-borne cancer elements resulting from exhaust from the vehicles or returning with and cleaning the dirty equipment after a fire. The balaclavas being purchased will be used as replacements at a fire scene. Studies have shown after a fire comes out of the “Hot Zone” and heads to rehabilitation, there is a need for a clean balaclava for the firefighter to use because a large amount of contamination on the firefighter around the neck area caused be continually using the same balaclava. On December 10, 2025, Fire Marshal, John Pegg announced that a total of 380 applications were received for the second year of the grant. On December 22, 2025, Rachel Nichols of the OFM Fire Protection Grant Team advised the Municipality of Bayham was successful and was being allocated $35,144.92 through the grant program. To finalize receipt of the funds and confirm ability to proceed with the identified equipment purchases in accordance with Bayham’s Fire Protection Grant program application, Council is required to enter into a Transfer Payment Agreement (TPA) by by-law, which will then be remitted to the granting agency once authorized. The TPA is attached for Council’s consideration, and the appropriate authorizing by-law is further included later in this Agenda package for approval. STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community Initiative: Actively seek and apply for grants to support operational and capital projects. ATTACHMENTS 1. Transfer Payment Agreement – Fire Protection Grant – Cancer Prevention RECOMMENDATION 1. THAT Report CAO-04/26 re Transfer Payment Agreement – 2026 Fire Protection Grant be received for information; 2. AND THAT Council authorizes the Chief Administrative Officer and Mayor to execute a Transfer Payment Agreement between His Majesty the King, in Right of Ontario, as represented by the Solicitor General and the Municipality of Bayham for the 2026 Fire Protection Grant program. Respectfully Submitted by: Thomas Thayer, CMO, AOMC Chief Administrative Officer Page 1 Transfer Payment Agreement ONTARIO FIRE PROTECTION GRANT TRANSFER PAYMENT AGREEMENT THE AGREEMENT, effective as of the (The “Effective Date”) B E T W E E N: His Majesty the King in right of Ontario as represented by the Solicitor General (referred to as the “Province”) - and - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM (the “Recipient”) CONSIDERATION In consideration of the mutual covenants and agreements contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are expressly acknowledged, the Province and the Recipient agree as follows: 1.0 ENTIRE AGREEMENT 1.1 Schedules to the Agreement. The following schedules form part of the Agreement: Schedule “A” - General Terms and Conditions Schedule “B” - Project Specific Information and Additional Provisions Schedule “C” - Project Schedule “D” - Budget Schedule “E” - Payment Plan Schedule “F” - Reports 1.2 Entire Agreement. The Agreement constitutes the entire agreement between the Parties with respect to the subject matter contained in the Agreement and supersedes all prior oral or written representations and agreements. 2.0 CONFLICT OR INCONSISTENCY 2.1 Conflict or Inconsistency. In the event of a conflict or inconsistency between the Additional Provisions and the provisions in Schedule “A”, the following rules will apply: Page 2 Transfer Payment Agreement (a) the Parties will interpret any Additional Provisions in so far as possible, in a way that preserves the intention of the Parties as expressed in Schedule “A”; and (b) where it is not possible to interpret the Additional Provisions in a way that is consistent with the provisions in Schedule “A”, the Additional Provisions will prevail over the provisions in Schedule “A” to the extent of the inconsistency. 3.0 COUNTERPARTS 3.1 One and the Same Agreement. The Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 4.0 AMENDING THE AGREEMENT 4.1 This Agreement may be amended upon the agreement of all Parties, which shall be executed in writing. 5.0 ACKNOWLEDGEMENT 5.1 The Recipient acknowledges that: (a) by receiving Funds, it may become subject to legislation applicable to organizations that receive funding from the Government of Ontario; (b) His Majesty the King in right of Ontario has issued expenses, perquisites, and procurement directives and guidelines pursuant to the Broader Public Sector Accountability Act, 2010 (Ontario); (c) the Funds are: (i) to assist the Recipient to carry out the Project and not to provide goods or services to the Province; (ii) funding for the purposes of the Public Sector Salary Disclosure Act, 1996 (Ontario); (d) the Province is not responsible for carrying out the Project; (e) the Province is bound by the Freedom of Information and Protection of Privacy Act (Ontario) and that any information provided to the Province in connection with the Project or otherwise in connection with the Agreement may be subject to disclosure in accordance with that Act; and Page 3 Transfer Payment Agreement (f) the Province is bound by the Financial Administration Act (Ontario) (“FAA”) and, pursuant to subsection 11.3(2) of the FAA, payment by the Province of Funds under the Agreement will be subject to, (i) an appropriation, as that term is defined in subsection 1(1) of the FAA, to which that payment can be charged being available in the Funding Year in which the payment becomes due; or (ii) the payment having been charged to an appropriation for a previous fiscal year. SIGNATURE PAGE FOLLOWS Page 4 Transfer Payment Agreement The Parties have executed the Agreement on the dates set out below. HIS MAJESTY THE KING IN RIGHT OF ONTARIO as represented by the Solicitor General ________________________ ____________________________________ Date Name: Carrie Clark Title: Deputy Fire Marshal THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ________________________ ____________________________________ Date Name: ____________________________________ Title: I have authority to bind the Recipient ________________________ ____________________________________ Date Name: ____________________________________ Title: I have authority to bind the Recipient Page 5 Transfer Payment Agreement SCHEDULE “A” GENERAL TERMS AND CONDITIONS A1.0 INTERPRETATION AND DEFINITIONS A1.1 Interpretation. For the purposes of interpretation: (a) words in the singular include the plural and vice-versa; (b) words in one gender include all genders; (c) the headings do not form part of the Agreement; they are for reference only and will not affect the interpretation of the Agreement; (d) any reference to dollars or currency will be in Canadian dollars and currency; and (e) “include”, “includes” and “including” denote that the subsequent list is not exhaustive. A1.2 Definitions. In the Agreement, the following terms will have the following meanings: “Additional Provisions” means terms and conditions set out in Schedule “B”. “Agreement” means this agreement entered into between the Province and the Recipient, all of the schedules listed in section 1.1, and any amending agreement entered into pursuant to section 4.1. “Budget” means the budget attached to the Agreement as Schedule “D”. “Business Day” means any working day, Monday to Friday inclusive, excluding statutory and other holidays, namely: New Year’s Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; Boxing Day and any other day on which the Province has elected to be closed for business. “Effective Date” means the date set out at the top of the Agreement. “Event of Default” has the meaning ascribed to it in section A12.1. “Expiry Date” means the expiry date set out in Schedule “B”. “Funding Year” means. (a) in the case of the first Funding Year, the period commencing on the Effective Date and ending on the following March 31; and (b) in the case of Funding Years subsequent to the first Funding Year, the Page 6 Transfer Payment Agreement period commencing on April 1 following the end of the previous Funding Year and ending on the following March 31 or the Expiry Date, whichever is first. “Funds” means the money the Province provides to the Recipient pursuant to the Agreement. “Indemnified Parties” means His Majesty the King in right of Ontario, His ministers, agents, appointees, and employees. “Loss” means any cause of action, liability, loss, cost, damage, or expense (including legal, expert and consultant fees) that anyone incurs or sustains as a result of or in connection with the Project or any other part of the Agreement. “Maximum Funds” means the maximum set out in Schedule “B”. “Notice” means any communication given or required to be given pursuant to the Agreement. “Notice Period” means the period of time within which the Recipient is required to remedy an Event of Default pursuant to section A12.3(b) and includes any such period or periods of time by which the Province extends that time. “Parties” means the Province and the Recipient. “Party” means either the Province or the Recipient. “Proceeding” means any action, claim, demand, lawsuit, or other proceeding that anyone makes, brings or prosecutes as a result of or in connection with the Project or with any other part of the Agreement. “Project” means the undertaking described in Schedule “C” and as may be amended from time to time. “Records Review” means any assessment the Province conducts pursuant to section A7.4. “Reports” means the reports described in Schedule “F”. A2.0 REPRESENTATIONS, WARRANTIES AND COVENANTS A2.1 General. The Recipient represents, warrants, and covenants that: (a) it is, and will continue to be a validly existing legal entity with full power to fulfill its obligations under the Agreement; (b) it has, and will continue to have, the experience and expertise necessary to carry out the Project; (c) it is in compliance with, and will continue to comply with, all federal and Page 7 Transfer Payment Agreement provincial laws and regulations, all municipal by-laws, and any other orders, rules, and by-laws related to any aspect of the Project, the Funds, or both; and (d) unless otherwise provided for in the Agreement, any information the Recipient provided to the Province in support of its request for funds (including information relating to any eligibility requirements) was true and complete at the time the Recipient provided it and will continue to be true and complete. A2.2 Execution of Agreement. The Recipient represents and warrants that it has: (a) the full power and capacity to enter into the Agreement; and (b) taken all necessary actions to authorize the execution of the Agreement. A2.3 Governance. The Recipient represents, warrants and covenants that it has, will maintain, in writing, and will follow: (a) procedures to enable the Recipient’s ongoing effective functioning; (b) decision-making mechanisms for the Recipient; (c) procedures to enable the Recipient to manage Funds prudently and effectively; (d) procedures to enable the Recipient to complete the Project successfully; (e) procedures to enable the Recipient to identify risks to the completion of the Project and strategies to address the identified risks, all in a timely manner; (f) procedures to enable the preparation and submission of all Reports required pursuant to Article A7.0; and (g) procedures to enable the Recipient to address such other matters as the Recipient considers necessary to enable the Recipient to carry out its obligations under the Agreement. A2.4 Supporting Proof. Upon the request of the Province, the Recipient will provide the Province with proof of the matters referred to in Article A2.0. A3.0 TERM OF THE AGREEMENT A3.1 Term. The term of the Agreement will commence on the Effective Date and will expire on the Expiry Date unless terminated earlier pursuant to Article A11.0 or Article A12.0. Page 8 Transfer Payment Agreement A4.0 FUNDS AND CARRYING OUT THE PROJECT A4.1 Funds Provided. The Province will: (a) provide the Recipient with Funds up to the Maximum Funds for the purpose of carrying out the Project; (b) provide the Funds to the Recipient in accordance with the payment plan attached to the Agreement as Schedule “E”; and (c) deposit the Funds into an account designated by the Recipient provided that the account: (i) resides at a Canadian financial institution; (ii) is in the name of the Recipient; and (iii) is registered in TPON. A4.2 Limitation on Payment of Funds. Despite section A4.1: (a) the Province is not obligated to provide any Funds to the Recipient until the Recipient provides the certificates of insurance or other proof required pursuant to section A10.2; (b) the Province is not obligated to provide instalments of Funds until it is satisfied with the progress of the Project; and (c) the Province may adjust the amount of Funds it provides to the Recipient based upon the Province’s assessment of the information the Recipient provides to the Province pursuant to section A7.2. A4.3 Use of Funds and Carrying Out the Project. The Recipient will do all of the following: (a) carry out the Project in accordance with the Agreement; (b) use the Funds only for the purpose of carrying out the Project; (c) spend the Funds only in accordance with the Budget; (d) not use the Funds to cover any cost that has been or will be funded or reimbursed by one or more of any third party, ministry, agency, or organization of the Government of Ontario. A4.4 Interest-Bearing Account. If the Province provides Funds before the Recipient’s immediate need for the Funds, the Recipient will place the Funds in an interest-bearing account in the name of the Recipient at a Canadian financial institution. Page 9 Transfer Payment Agreement A4.5 Interest. If the Recipient earns any interest on the Funds, the Province may do either or both of the following: (a) deduct an amount equal to the interest from any further instalments of Funds; (b) demand from the Recipient the payment of an amount equal to the interest. A4.6 Interest. Rebates, Credits, and Refunds. The Province will calculate Funds based on the actual costs to the Recipient to carry out the Project, less any costs (including taxes) for which the Recipient has received, will receive, or is eligible to receive, a rebate, credit, or refund. A5.0 RECIPIENT’S ACQUISITION OF GOODS OR SERVICES, AND DISPOSAL OF ASSETS A5.1 Acquisition. If the Recipient acquires goods, services, or both with the Funds, it will do so through a process that promotes the best value for money. A5.2 Disposal. The Recipient will not, without the Province’s prior consent, sell, lease, or otherwise dispose of any asset purchased or created with the Funds or for which Funds were provided, the cost of which exceeded the amount as set out in Schedule “B” at the time of purchase. A6.0 CONFLICT OF INTEREST A6.1 Conflict of Interest Includes. For the purposes of Article A6.0, a conflict of interest includes any circumstances where: (a) the Recipient; or (b) any person who has the capacity to influence the Recipient’s decisions, has outside commitments, relationships, or financial interests that could, or could be seen by a reasonable person to, interfere with the Recipient’s objective, unbiased, and impartial judgment relating to the Project, the use of the Funds, or both. A6.2 No Conflict of Interest. The Recipient will carry out the Project and use the Funds without an actual, potential, or perceived conflict of interest unless: (a) the Recipient: (i) provides Notice to the Province disclosing the details of the actual, potential, or perceived conflict of interest; and (ii) requests the consent of the Province to carry out the Project with Page 10 Transfer Payment Agreement an actual, potential, or perceived conflict of interest; (b) the Province provides its consent to the Recipient carrying out the Project with an actual, potential, or perceived conflict of interest; and (c) the Recipient complies with any terms and conditions the Province may prescribe in its consent. A7.0 REPORTING, ACCOUNTING AND REVIEW A7.1 Province Includes. For the purposes of sections A7.4, A7.5 and A7.6, “Province” includes any auditor or representative the Province may identify. A7.2 Preparation and Submission. The Recipient will: (a) submit to the Province at the address set out in Schedule “B”: (i) all Reports in accordance with the timelines and content requirements set out in Schedule “F”; (ii) any other reports in accordance with any timelines and content requirements the Province may specify from time to time; (b) ensure that all Reports and other reports are: (i) completed to the satisfaction of the Province; and (ii) signed by an authorized signing officer of the Recipient. A7.3 Record Maintenance. The Recipient will keep and maintain for a period of seven years from their creation: (a) all financial records (including invoices and evidence of payment) relating to the Funds or otherwise to the Project in a manner consistent with either international financial reporting standards or generally accepted accounting principles or any comparable accounting standards that apply to the Recipient; and (b) all non-financial records and documents relating to the Funds or otherwise to the Project. A7.4 Records Review. The Province may, at its own expense, upon twenty-four hours’ Notice to the Recipient and during normal business hours, enter upon the Recipient’s premises to conduct an audit or investigation of the Recipient regarding the Recipient’s compliance with the Agreement, including assessing Page 11 Transfer Payment Agreement any of the following: (a) the truth of any of the Recipient’s representations and warranties; (b) the progress of the Project; (c) the Recipient’s allocation and expenditure of the Funds. A7.5 Inspection and Removal. For the purposes of any Records Review, the Province may take one or both of the following actions: (a) inspect and copy any records and documents referred to in section A7.3; and (b) remove any copies the Province makes pursuant to section A7.5(a). A7.6 Cooperation. To assist the Province in respect of its rights provided for in section A7.5, the Recipient will cooperate with the Province by: (a) ensuring that the Province has access to the records and documents wherever they are located; (b) assisting the Province to copy records and documents; (c) providing to the Province, in the form the Province specifies, any information the Province identifies; and (d) carrying out any other activities the Province requests. A7.7 No Control of Records. No provision of the Agreement will be construed to give the Province any control whatsoever over any of the Recipient’s records. A7.8 Auditor General. The Province’s rights under Article A7.0 are in addition to any rights provided to the Auditor General pursuant to section 9.1 of the Auditor General Act (Ontario). A8.0 COMMUNICATIONS REQUIREMENTS A8.1 Acknowledge Support. Unless the Province directs the Recipient to do otherwise, the Recipient will in each of its Project-related publications, whether written, oral, or visual, including public announcements or communications: (a) acknowledge the support of the Province for the Project; (b) ensure that any acknowledgement is in a form and manner as the Province directs; Page 12 Transfer Payment Agreement (c) indicate that the views expressed in the publication are the views of the Recipient and do not necessarily reflect those of the Province; and (d) obtain prior written approval from the Province before using any logo or symbol of the Government of Ontario, the Ministry of the Solicitor General or the Office of the Fire Marshal in any communications including press releases, published reports, radio and television programs and public or private meetings, or in any other type of promotional material, relating to the Project or this Agreement. A8.2 Notice of Project-Related Communications. Unless the Province directs the Recipient to do otherwise, the Recipient will provide written notice to the Province a minimum of 14 Business Days in advance of all Project-related publications, whether written, oral, or visual, including public announcements or communications. A9.0 INDEMNITY A9.1 Indemnify. The Recipient will indemnify and hold harmless the Indemnified Parties from and against any Loss and any Proceeding, unless solely caused by the gross negligence or wilful misconduct of the Indemnified Parties. A10.0 INSURANCE A10.1 Insurance. The Recipient represents, warrants, and covenants that it has, and will maintain, at its own cost and expense, with insurers having a secure A.M. Best rating of B+ or greater, or the equivalent, all the necessary and appropriate insurance that a prudent person carrying out a project similar to the Project would maintain, including commercial general liability insurance on an occurrence basis for third party bodily injury, personal injury, and property damage, to an inclusive limit of not less than the amount set out in Schedule “B” per occurrence, which commercial general liability insurance policy will include the following: (a) the Indemnified Parties as additional insureds with respect to liability arising in the course of performance of the Recipient’s obligations under, or otherwise in connection with, the Agreement; (b) a cross-liability clause; (c) contractual liability coverage; and (d) at least 30 days’ written notice of cancellation. Page 13 Transfer Payment Agreement A10.2 Proof of Insurance. The Recipient will, (a) provide to the Province, either, (i) certificates of insurance that confirm the insurance coverage required by section A10.1; or (ii) other proof that confirms the insurance coverage required by section A10.1; and (b) in the event of a Proceeding, and upon the Province’s request, the Recipient will provide to the Province a copy of any of the Recipient’s insurance policies that relate to the Project or otherwise to the Agreement, or both. A11.0 TERMINATION ON NOTICE A11.1 Termination on Notice. This Agreement may be terminated by the Province at any time without liability, penalty, or costs upon giving at least thirty (30) days prior written Notice to the Recipient. A11.2 When Termination Effective. Termination under Article A11.1 will take effect as provided for in the Notice. A11.3 Consequences of Termination on Notice by the Province. If the Province terminates the Agreement pursuant to section A11.1, the Province may take one or more of the following actions: (a) cancel further installments of Funds; (b) demand from the Recipient the payment of any Funds remaining in the possession or under the control of the Recipient; and (c) determine the reasonable costs for the Recipient to wind down the Project, and do the following: (i) permit the Recipient to offset such costs against the amount the Recipient owes pursuant to section A11.2(b); (ii) subject to section A4.1(a), provide Funds to the Recipient to cover such costs. A12.0 EVENT OF DEFAULT, CORRECTIVE ACTION, AND TERMINATION FOR DEFAULT Page 14 Transfer Payment Agreement A12.1 Events of Default. Each of the following events will constitute an Event of Default: (a) in the opinion of the Province, the Recipient breaches any representation, warranty, covenant, or other term of the Agreement, including failing to do any of the following in accordance with the terms and conditions of the Agreement: (i) carry out the Project; (ii) use or spend Funds; or (iii) provide, in accordance with section A7.2, Reports or such other reports as the Province may have requested pursuant to section A7.2(a)(ii); (b) the Recipient’s operations, its financial condition, its organizational structure or its control changes such that it no longer meets one or more of the eligibility requirements of the program under which the Province provides the Funds; (c) the Recipient makes an assignment, proposal, compromise, or arrangement for the benefit of creditors, or a creditor makes an application for an order adjudging the Recipient bankrupt, or applies for the appointment of a receiver; (d) the Recipient ceases to operate. A12.2 Consequences of Events of Default and Corrective Action. If an Event of Default occurs, the Province may, at any time, take one or more of the following actions: (a) initiate any action the Province considers necessary in order to facilitate the successful continuation or completion of the Project; (b) provide the Recipient with an opportunity to remedy the Event of Default; (c) suspend the payment of Funds for such period as the Province determines appropriate; (d) reduce the amount of the Funds; (e) cancel further instalments of Funds; (f) demand from the Recipient the payment of any Funds remaining in the Page 15 Transfer Payment Agreement possession or under the control of the Recipient; (g) demand from the Recipient the payment of an amount equal to any Funds the Recipient used, but did not use in accordance with the Agreement; (h) demand from the Recipient the payment of an amount equal to any Funds the Province provided to the Recipient; (i) demand from the Recipient the payment of an amount equal to the costs the Province incurred or incurs to enforce its rights under the Agreement, including the costs of any Records Review and the costs it incurs to collect any amounts the Recipient owes to the Province; and (j) upon giving Notice to the Recipient, terminate the Agreement at any time, including immediately, without liability, penalty or costs to the Province. A12.3 Opportunity to Remedy. If, pursuant to section A12.2(b), the Province provides the Recipient with an opportunity to remedy the Event of Default, the Province will give Notice to the Recipient of: (a) the particulars of the Event of Default; and (b) the Notice Period. A12.4 Recipient not Remedying. If the Province provides the Recipient with an opportunity to remedy the Event of Default pursuant to section A12.2(b), and: (a) the Recipient does not remedy the Event of Default within the Notice Period; (b) it becomes apparent to the Province that the Recipient cannot completely remedy the Event of Default within the Notice Period; or (c) the Recipient is not proceeding to remedy the Event of Default in a way that is satisfactory to the Province, the Province may extend the Notice Period, or initiate any one or more of the actions provided for in sections A12.2(a), (c), (d), (e), (f), (g), (h), (i) and (j). A12.5 When Termination Effective. Termination under Article A12.0 will take effect as provided for in the Notice. A13.0 FUNDS AT THE END OF A FUNDING YEAR A13.1 Funds at the End of a Funding Year. Without limiting any rights of the Province under Article A12.0, if, by the end of a Funding Year, the Recipient has not spent all of the Funds allocated for that Funding Year as provided for in Page 16 Transfer Payment Agreement the Budget, the Province may take one or both of the following actions: (a) demand from the Recipient payment of the unspent Funds; (b) adjust the amount of any further instalments of Funds accordingly. A14.0 FUNDS UPON EXPIRY A14.1 Funds Upon Expiry. Upon expiry of the Agreement, the Recipient will pay to the Province any Funds remaining in its possession, under its control, or both. A15.0 DEBT DUE AND PAYMENT A15.1 Payment of Overpayment. If at any time the Province provides Funds in excess of the amount to which the Recipient is entitled under the Agreement, the Province may: (a) deduct an amount equal to the excess Funds from any further instalments of Funds; or (b) demand that the Recipient pay to the Province an amount equal to the excess Funds. A15.2 Debt Due. If, pursuant to the Agreement: (a) the Province demands from the Recipient the payment of any Funds, an amount equal to any Funds or any other amounts owing under the Agreement; or (b) the Recipient owes to the Province any Funds, an amount equal to any Funds or any other amounts owing under the Agreement, whether or not the Province has demanded their payment, such amounts will be deemed to be debts due and owing to the Province by the Recipient, and the Recipient will pay the amounts to the Province immediately, unless the Province directs otherwise. A15.3 Interest Rate. The Province may charge the Recipient interest on any money owing to the Province by the Recipient under the Agreement at the then current interest rate charged by the Province of Ontario on accounts receivable. A15.4 Payment of Money to Province. The Recipient will pay any money owing to the Province by cheque payable to the “Ontario Minister of Finance” and delivered to the Province at the address set out in Schedule “B". Page 17 Transfer Payment Agreement A15.5 Fails to Pay. Without limiting the application of section 43 of the Financial Administration Act (Ontario), if the Recipient fails to pay any amount owing under the Agreement, His Majesty the King in right of Ontario may deduct any unpaid amount from any money payable to the Recipient by His Majesty the King in right of Ontario. A16.0 NOTICE A16.1 Notice in Writing and Addressed. Notice will be: (a) in writing; (b) delivered by email, postage-prepaid mail, personal delivery, courier or fax; and (c) addressed to the Province or the Recipient as set out in Schedule “B”, or as either Party later designates to the other by Notice. A16.2 Notice Given. Notice will be deemed to have been given: (a) in the case of postage-prepaid mail, five Business Days after the Notice is mailed; or (b) in the case of fax, one Business Day after the Notice is delivered; and (c) in the case of email, personal delivery or courier on the date on which the Notice is delivered. A16.3 Postal Disruption. Despite section A16.2(a), in the event of a postal disruption: (a) Notice by postage-prepaid mail will not be deemed to be given; and (b) the Party giving Notice will give Notice by email, personal delivery, courier or fax. A17.0 CONSENT BY PROVINCE AND COMPLIANCE BY RECIPIENT A17.1 Consent. When the Province provides its consent pursuant to the Agreement: (a) it will do so by Notice; (b) it may attach any terms and conditions to the consent; and (c) the Recipient may rely on the consent only if the Recipient complies with Page 18 Transfer Payment Agreement any terms and conditions the Province may have attached to the consent. A18.0 SEVERABILITY OF PROVISIONS A18.1 Invalidity or Unenforceability of Any Provision. The invalidity or unenforceability of any provision of the Agreement will not affect the validity or enforceability of any other provision of the Agreement. A19.0 WAIVER A19.1 Condonation not a waiver. Failure or delay by the either Party to exercise any of its rights, powers or remedies under the Agreement will not constitute a waiver of those rights, powers or remedies and the obligations of the Parties with respect to such rights, powers or remedies will continue in full force and effect. A19.2 Waiver. Either Party may waive any of its rights, powers or remedies under the Agreement by providing Notice to the other Party. A waiver will apply only to the specific rights, powers or remedies identified in the Notice and the Party providing the waiver may attach terms and conditions to the waiver. A20.0 INDEPENDENT PARTIES A20.1 Parties Independent. The Recipient is not an agent, joint venturer, partner or employee of the Province and the Recipient will not represent itself in any way that might be taken by a reasonable person to suggest that it is or take any actions that could establish or imply such a relationship. A21.0 ASSIGNMENT OF AGREEMENT OR FUNDS A21.1 No Assignment. The Recipient will not, without the prior written consent of the Province, assign any of its rights or obligations under the Agreement. A21.2 Agreement Binding. All rights and obligations contained in the Agreement will extend to and be binding on: (a) the Recipient’s heirs, executors, administrators, successors, and permitted assigns; and (b) the successors to His Majesty the King in right of Ontario. A22.0 GOVERNING LAW A22.1 Governing Law. The Agreement and the rights, obligations and relations of the Page 19 Transfer Payment Agreement Parties will be governed by and construed in accordance with the laws of the Province of Ontario and the applicable federal laws of Canada. Any actions or proceedings arising in connection with the Agreement will be conducted in the courts of Ontario, which will have exclusive jurisdiction over such proceedings. A23.0 FURTHER ASSURANCES A23.1 Agreement into Effect. The Recipient will: (a) provide such further assurances as the Province may request from time to time with respect to any matter to which the Agreement pertains; and (b) do or cause to be done all acts or things necessary to implement and carry into effect the terms and conditions of the Agreement to their full extent. A24.0 JOINT AND SEVERAL LIABILITY A24.1 Joint and Several Liability. Where the Recipient comprises more than one entity, each entity will be jointly and severally liable to the Province for the fulfillment of the obligations of the Recipient under the Agreement. A25.0 RIGHTS AND REMEDIES CUMULATIVE A25.1 Rights and Remedies Cumulative. The rights and remedies of the Province under the Agreement are cumulative and are in addition to, and not in substitution for, any of its rights and remedies provided by law or in equity. A26.0 FAILURE TO COMPLY WITH OTHER AGREEMENTS A26.1 Other Agreements. If the Recipient: (a) has failed to comply with any term, condition, or obligation under any other agreement with His Majesty the King in right of Ontario or one of His agencies (a “Failure”); (b) has been provided with notice of such Failure in accordance with the requirements of such other agreement; (c) has, if applicable, failed to rectify such Failure in accordance with the requirements of such other agreement; and (d) such Failure is continuing, the Province may suspend the payment of Funds for such period as the Province determines appropriate. Page 20 Transfer Payment Agreement A27.0 SURVIVAL A27.1 Survival. The following Articles and sections, and all applicable cross-referenced Articles, sections and schedules, will continue in full force and effect for a period of seven years from the date of expiry or termination of the Agreement: Article 1.0, Article 2.0, Article A1.0 and any other applicable definitions, section A2.1(a), sections A4.4, A4.5, A4.6, section A5.2, section A7.1, section A7.2 (to the extent that the Recipient has not provided the Reports or other reports as the Province may have requested and to the satisfaction of the Province), sections A7.3, A7.4, A7.5, A7.6, A7.7, A.8, Article A8.0, Article A9.0, Article A10.0, section A11.2, sections A12.1, sections A12.2(d), (e), (f), (g), (h), (i), and (j), Article A13.0, Article A14.0, Article A15.0, Article A16.0, Article A18.0, section A21.2, Article A22.0, Article A24.0, Article A25.0, and Article A27.0. -- END OF GENERAL TERMS AND CONDITIONS -- Page 21 Transfer Payment Agreement SCHEDULE “B” PROJECT SPECIFIC INFORMATION AND ADDITIONAL PROVISIONS Maximum Funds $35,145 Expiry Date March 31, 2026 Amount for the purposes of section A5.2 (Disposal) of Schedule “A” $ 5,000 Insurance $ 2,000,000 Contact information for the purposes of Notice to the Province Name: Program Development & Analytics Unit, Office of the Fire Marshal, Public Safety Division Ministry of the Solicitor General Attention: Katrina Nedeljkovich, Operations Manager Address: 2284 Nursery Road, Midhurst, ON L0L 1N0 Fax: (705) 305-4595 Email: Katrina.nedeljkovich@Ontario.ca / OFMGrants@ontario.ca Contact information for the purposes of Notice to the Recipient Name: Harry Baranik Position: Fire Chief Address: , , , Phone: 519-866-5521X255 Email: hbaranik@bayham.on.ca Contact information for the senior financial person in the Recipient organization (e.g., CFO, CAO) – to respond as required to requests from the Province related to the Agreement Name: Thomas Thayer Position: Chief Administrative Officer Address: , , , Phone: 519-866-5521X225 Email: cao@bayham.on.ca Additional Provisions: Page 22 Transfer Payment Agreement None Page 23 Transfer Payment Agreement SCHEDULE “C” PROJECT The Ministry of the Solicitor General, Office of the Fire Marshal received Treasury Board (TB) approval to support the municipal fire service in acquiring critical equipment and other needs (health and safety, minor infrastructure and specialized tools) to improve and enhance the level of fire protection service being provided. These approved funds are provided through what is known as the Fire Protection Grant. Year two of the Fire Protection Grant focuses on firefighter health and safety (specifically, cancer prevention measures) minor infrastructure updates and support for Lithium-Ion Incident Responses. These themes were chosen based on feedback from fire stakeholders across Ontario about the challenges and risks firefighters face in performing their duties. The Ministry has identified five categories of eligibility: • Cancer Prevention – Equipment and Supplies (such as exhaust extraction systems in the fire station or washing machines for firefighting gear to remove contaminants, etc.) • Cancer Prevention - Personal Protective Equipment (such as facepieces, balaclavas, etc.) • Cancer Prevention – Minor Infrastructure (such as showers in the fire station, etc.) • Technology – Minor Infrastructure (such as bringing internet to fire stations that do not currently have access to improve connectivity and training opportunities, etc.) • Lithium-Ion Incident Response – Equipment and Supplies (such as extinguishing agents, fire decontamination systems and safety solutions) The grant application window opened August 13, 2025 and closed September 30, 2025. THE CORPORATION OF THE MUNICIPALITY OF BAYHAM is approved for $35,145 Funding to support the purchase of Purchase of 3 portable air filtration systems and 40 fire fighting hoods.. Page 24 Transfer Payment Agreement SCHEDULE “D” BUDGET Funding will be provided to THE CORPORATION OF THE MUNICIPALITY OF BAYHAM upon execution of this Agreement. Funding will be provided to THE CORPORATION OF THE MUNICIPALITY OF BAYHAM explicitly for the purchase of one, or a combination of, the items prescribed within the listed summary in Schedule “C”. Copies of all invoices and receipts for said items will be provided to the Office of The Fire Marshal as part of the Report Back described in Schedule “F” that forms part of this agreement. The funds must be committed to the project as approved by March 31st, 2026. Subsequently, the funds must be spent by the municipality by the end of Provincial Financial Quarter Three (Q3) (December 31, 2026). Page 25 Transfer Payment Agreement SCHEDULE “E” PAYMENT PLAN E.1 MAXIMUM FUNDS The Maximum Funds to be provided by the Province to the Recipient under this Agreement is set out in Schedule “B”. E.2 PAYMENT SCHEDULE The Funds will be provided to the Recipient for the Funding Year subject to the Agreement having been signed by the Province. Page 26 Transfer Payment Agreement SCHEDULE “F” REPORTS As a condition of the Fire Protection Grant, a report back to the Office of the Fire Marshal must be received, through the Transfer Payment Ontario or as otherwise directed, by the end of Provincial Financial Quarter, Q3, to outline how the grant funding was utilized, and the benefit(s) seen at the department level. As part of the report back, the municipality is required to provide copies of all invoices and receipts for the items purchased for the approved project(s) as noted in Schedule “C”. REPORT CAO TO: Mayor & Members of Council FROM: Thomas Thayer, Chief Administrative Officer DATE: February 5, 2026 REPORT: CAO-05/26 SUBJECT: TRANSFER PAYMENT AGREEMENT – POTHOLE PREVENTION AND REPAIR PROGRAM BACKGROUND On November 10, 2025, the Province announced the launch of the Pothole Prevention and Repair Program (PPRP). The PPRP invested “$10 million to make roads safer by preventing accidents and damage that can occur from potholes. Under the new Pothole Prevention and Repair Program, municipalities with populations of up to 10,000 people can apply for funding to support critical road maintenance and pothole repair. The program is part of the government’s work to protect Ontario by making record investments in infrastructure that will keep communities safe, keep workers on the job and support economic growth.” Eligible municipalities could apply for up to $38,000. Applications to the PPRP were due by December 12, 2025. DISCUSSION In early 2026, the Municipality was advised that it was successful in obtaining grant funds through the PPRP. Bayham will receive a maximum of $38,000 for eligible pothole repair projects up until March 31, 2026. Projects are eligible back to April 1, 2025, so there appears to be the ability to retroactively claim expenditures through the PPRP. To finalize receipt of the funds, Council is required to enter into a Transfer Payment Agreement (TPA) by by-law, which will then be remitted to the granting agency once authorized. The TPA is attached for Council’s consideration, and the appropriate authorizing by-law is further included later in this Agenda package for approval. STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community Initiative: Actively seek and apply for grants to support operational and capital projects. ATTACHMENTS 1. Transfer Payment Agreement – Pothole Prevention and Repair Program RECOMMENDATION 1. THAT Report CAO-05/26 re Transfer Payment Agreement – Pothole Prevention and Repair Program be received for information; 2. AND THAT Council authorizes the Traesurer and Mayor to execute a Transfer Payment Agreement between His Majesty the King, in Right of Ontario, as represented by the Honourable Minster of Transportation and the Municipality of Bayham for the Pothole Prevention and Repair Program. Respectfully Submitted by: Thomas Thayer, CMO, AOMC Chief Administrative Officer ONTARIO TRANSFER PAYMENT AGREEMENT POTHOLE PREVENTION AND REPAIR PROGRAM THE AGREEMENT is effective as of the 30th day of January 2026. BETWEEN: His Majesty the King in right of Ontario as represented by Hon. Minister of Transportation (the “Province”) - and - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM (the “Recipient”) WHEREAS the Recipient has requested funding from the Province for the Project (as defined in section A.1.2) and the Province has agreed to provide such funding to the Recipient subject to certain terms and conditions; AND WHEREAS the Agreement sets out the terms and conditions upon which the Province has agreed to provide funds, up to the Maximum Funds (as defined in section A1.2) to the Recipient for the purpose of carrying out the Project, and upon which the Recipient has agreed to carry out the Project. NOW THEREFORE in consideration of the mutual covenants and agreements contained in the Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are expressly acknowledged, the Province and the Recipient agree as follows: 1.0 ENTIRE AGREEMENT 1.1 Schedules to the Agreement. The following schedules form part of the Agreement: Schedule “A” - General Terms and Conditions Schedule “B” - Project Specific Information Schedule “C” - Project Description and Timelines Schedule “D” - Eligible Expenditures and Ineligible Expenditures Schedule “E” - Payment Plan Schedule “F” - Reporting and Compliance Audit Sub-Schedule F1 - Project Reports 1.2 Entire Agreement. The Agreement constitutes the entire agreement between the Parties with respect to its subject matter and contained in the Agreement and supersedes all prior oral or written representations and agreements. 2.0 CONFLICT OR INCONSISTENCY 2.1 Conflict or Inconsistency. In the event of a conflict or inconsistency between the Additional Provisions, identified in Schedule “B” and the provisions in Schedule “A”, the following rules will apply: (a) the Parties will interpret any Additional Provisions in so far as possible, in a way that preserves the intention of the Parties as expressed in Schedule “A”; and (b) where it is not possible to interpret the Additional Provisions in a way that is consistent with the provisions in Schedule “A”, the Additional Provisions will prevail over the provisions in Schedule “A” to the extent of the inconsistency. 3.0 COUNTERPARTS 3.1 One and the Same Agreement. The Agreement may be executed in any number of counterparts, with the same effect as if the Parties had signed the same document, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 4.0 AMENDING THE AGREEMENT 4.1 Amending the Agreement. The Agreement may only be amended by a written agreement duly executed by the Parties. 5.0 ACKNOWLEDGEMENT 5.1 Acknowledgement. The Recipient acknowledges that: (a) by receiving Funds it may become subject to legislation applicable to organizations that receive funding from the Government of Ontario, including the Broader Public Sector Accountability Act, 2010 (Ontario), the Public Sector Salary Disclosure Act, 1996 (Ontario), and the Auditor General Act (Ontario); (b) His Majesty the King in right of Ontario has issued expenses, perquisites, and procurement directives and guidelines pursuant to the Broader Public Sector Accountability Act, 2010 (Ontario); (c) the Funds are: (i) to assist the Recipient to carry out the Project and not to provide goods or services to the Province; (ii) funding for the purposes of the Public Sector Salary Disclosure Act, 1996 (Ontario); (d) the Province is not responsible for carrying out the Project; (e) the Province is bound by the Freedom of Information and Protection of Privacy Act (Ontario) and that any information provided to the Province in connection with the Project or otherwise in connection with the Agreement may be subject to disclosure in accordance with that Act; and (f) the Province is bound by the Financial Administration Act (Ontario) (“FAA”) and, pursuant to subsection 11.3(2) of the FAA, payment by the Province of Funds under the Agreement will be subject to: (i) an appropriation, as that term is defined in subsection 1(1) of the FAA, to which that payment can be charged being available in the Funding Year in which the payment becomes due; or (ii) the payment having been charged to an appropriation for a previous fiscal year. - SIGNATURE PAGE FOLLOWS - IN WITNESS WHEREOF the Parties have executed the Agreement on the dates set out below. HIS MAJESTY THE KING IN RIGHT OF ONTARIO as represented by the Minister of Transportation Date Name: Prabmeet Sarkaria Title: Minister THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Date Name: Lorne James Title: Treasurer I have authority to bind the Recipient Date Name: Title: I have authority to bind the Recipient Bayham and Ontario Transfer Payment Agreement 2 SCHEDULE “A” GENERAL TERMS AND CONDITIONS A1.0 INTERPRETATION AND DEFINITIONS A1.1 Interpretation. For the purposes of interpretation: (a) words in the singular include the plural and vice-versa; (b) words in one gender include all genders; (c) the headings do not form part of the Agreement; they are for reference only and will not affect the interpretation of the Agreement; (d) any reference to dollars or currency will be in Canadian dollars and currency; and (e) “include”, “includes” and “including” denote that the subsequent list is not exhaustive. (f) all accounting terms not otherwise defined in the Agreement have their ordinary meanings. A1.2 Definitions. In the Agreement, the following terms will have the following meanings: “Additional Provisions” means the terms and conditions set out in Schedule “B”. “Agreement” means this agreement entered into between the Province and the Recipient, all of the schedules listed in section 1.1, and any amending agreement entered into pursuant to section 4.1. “Business Day” means any working day, Monday to Friday inclusive, excluding statutory and other holidays, namely: New Year’s Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; Boxing Day and any other day on which the Province has elected to be closed for business. “Effective Date” means the date set out at the top of the Agreement. “Eligible Expenditures” means the costs of the Project that are eligible for funding by the Province under the Agreement and that are further described in Scheduled D. “Event of Default” has the meaning ascribed to it in section A12.1. Bayham and Ontario Transfer Payment Agreement 3 “Expiry Date” means the expiry date set out in Schedule “B”. “Final Report” means the report described in Schedule “F”. “Funding Year” means in the case, the period commencing on the Effective Date and ending on the following March 31. “Funds” means the money the Province provides to the Recipient pursuant to the Agreement. “Indemnified Parties” means His Majesty the King in right of Ontario, and includes His ministers, agents, appointees, and employees. “Loss” means any cause of action, liability, loss, cost, damage, or expense (including legal, expert and consultant fees) that anyone incurs or sustains as a result of or in connection with the Project or any other part of the Agreement. “Materials” means material, machinery, equipment and fixtures forming part of the Project. “Maximum Funds” means the maximum set out in Schedule “B”. “Notice” means any communication given or required to be given pursuant to the Agreement. “Notice Period” means the period of time within which the Recipient is required to remedy an Event of Default pursuant to section A12.3(b), and includes any such period or periods of time by which the Province extends that time pursuant to section A12.4. “Parties” means the Province and the Recipient. “Party” means either the Province or the Recipient. “Proceeding” means any action, claim, demand, lawsuit, or other proceeding that anyone makes, brings or prosecutes as a result of or in connection with the Project or with any other part of the Agreement. “Project” means the undertaking described in Schedule “C”. “Records Review” means any assessment the Province conducts pursuant to section A7.4. “Reports” means the reports described in Schedule “F” and Sub-schedule “F1. “Requirements of Law” means all applicable requirements, laws, statutes, Bayham and Ontario Transfer Payment Agreement 4 codes, acts, ordinances, approvals, orders, decrees, injunctions, by laws, rules, regulations, official plans, permits, licenses, authorizations, directions and agreements with all authorities. “Substantial Performance” means when the Work or a substantial part thereof has passed inspection and testing and is ready for use or is being used for intended purposes. A1.3 References This Agreement refers to the following standards, specifications or publications: Ontario Provincial Standard Specifications, Construction OPSS PROV 127 OPSS MUNI 301 OPSS MUNI 303 OPSS MUNI 304 OPSS MUNI 310 OPSS MUNI 336 OPSS MUNI 337 OPSS MUNI 341 OPSS MUNI 369 A2.0 REPRESENTATIONS, WARRANTIES, AND COVENANTS A2.1 General. The Recipient represents, warrants, and covenants that: (a) it is, and will continue to be, a validly existing legal entity with full power to fulfill its obligations under the Agreement; (b) it has, and will continue to have, the experience and expertise necessary to carry out the Project; (c) it is in compliance with, and will continue to comply with, all federal and provincial laws and regulations, all municipal by-laws, and any other orders, rules, and by-laws related to any aspect of the Project, the Funds, or both; and (d) that, unless otherwise provided for in the Agreement, any information the Recipient provided to the Province in support of its request for funds (including information relating to any eligibility requirements) was true and complete at the time the Recipient provided it and will continue to be true and complete. A2.2 Execution of Agreement. The Recipient represents and warrants that it has: Bayham and Ontario Transfer Payment Agreement 5 (a) the full power and capacity to enter into the Agreement; and (b) taken all necessary actions to authorize the execution of the Agreement. A2.3 Governance. The Recipient represents, warrants, and covenants that it has, will maintain in writing, and will follow: (a) a code of conduct and ethical responsibilities for all persons at all levels of the Recipient’s organization; (b) procedures to enable the Recipient’s ongoing effective functioning; (c) decision-making mechanisms for the Recipient; (d) procedures to enable the Recipient to manage Funds prudently and effectively; (e) procedures to enable the Recipient to complete the Project successfully; (f) procedures to enable the Recipient to identify risks to the completion of the Project and strategies to address the identified risks, all in a timely manner; (g) procedures to enable the preparation and submission of all Reports required pursuant to Article A7.0; and (h) procedures to enable the Recipient to address such other matters as the Recipient considers necessary to enable the Recipient to carry out its obligations under the Agreement. A2.4 Supporting Proof. Upon the request of the Province, the Recipient will provide the Province with proof of the matters referred to in Article A2.0. A3.0 TERM OF THE AGREEMENT A3.1 Term. The term of the Agreement will commence on the Effective Date and will expire on the Expiry Date unless terminated earlier pursuant to Article A11.0 or Article A12.0. A4.0 FUNDS AND CARRYING OUT THE PROJECT A4.1 Funds Provided. The Province will: (a) provide the Recipient with $38,000 in Funds for the purpose of carrying out the Project; (b) provide the Funds to the Recipient in accordance with the payment plan attached to the Agreement as Schedule “E” ; and Bayham and Ontario Transfer Payment Agreement 6 (c) deposit the Funds into an account the Recipient designates provided that the account: (i) resides at a Canadian financial institution; and (ii) is in the name of the Recipient. A4.2 Limitation on Payment of Funds. Despite section A4.1: (a) the Province is not obligated to provide any Funds to the Recipient until the Recipient provides the certificates of insurance or other proof required pursuant to section A10.2 ; (b) the Province may adjust the amount of Funds it provides to the Recipient for any Funding Year based upon the Province’s assessment of the information the Recipient provides to the Province pursuant to section A7.2. A4.3 Use of Funds and Carry Out the Project. The Recipient will do all of the following: (a) carry out the Project in accordance with the Agreement; (b) use the Funds only for the purpose of carrying out the Project; (c) spend the Funds only in accordance with the maximum funds set out in Schedule B.”; (d) not use the Funds to cover any cost that has been or will be funded or reimbursed by any other funding program or source. . A4.4 Interest-Bearing Account. If the Province provides Funds before the Recipient’s immediate need for the Funds, the Recipient will place the Funds in an interest-bearing account in the name of the Recipient at a Canadian financial institution. A4.5 Interest. If the Recipient earns any interest on the Funds, the Province may do either or both of the following: (a) deduct an amount equal to the interest from any further instalments of Funds; (b) demand from the Recipient the payment of an amount equal to the interest. Bayham and Ontario Transfer Payment Agreement 7 A4.6 Rebates, Credits, and Refunds. The Province will calculate Funds based on the actual costs to the Recipient to carry out the Project, less any costs (including taxes) for which the Recipient has received, will receive, or is eligible to receive, a rebate, credit, or refund. A5.0 RECIPIENT’S ACQUISITION OF GOODS OR SERVICES, AND DISPOSAL OF ASSETS A5.1 Acquisition. If the Recipient acquires goods, services, or both with the Funds, it will do so through a process that promotes the best value for money. A5.2 Disposal. The Recipient will not, without the Province’s prior consent, sell, lease, or otherwise dispose off any asset purchased or created with the Funds or for which the Funds were provided. A6.0 CONFLICT OF INTEREST A6.1 Conflict of Interest Includes. For the purposes of Article A6.0, a conflict of interest includes any circumstances where: (a) the Recipient; or (b) any person who has the capacity to influence the Recipient’s decisions, has outside commitments, relationships, or financial interests that could, or could be seen by a reasonable person to, interfere with the Recipient’s objective, unbiased, and impartial judgment relating to the Project, the use of the Funds, or both. A6.2 No Conflict of Interest. The Recipient will carry out the Project and use the Funds without an actual, potential, or perceived conflict of interest unless: (a) the Recipient: (i) provides Notice to the Province disclosing the details of the actual, potential, or perceived conflict of interest; and (ii) requests the consent of the Province to carry out the Project with an actual, potential, or perceived conflict of interest; (b) the Province provides its consent to the Recipient carrying out the Project with an actual, potential, or perceived conflict of interest; and (c) the Recipient complies with any terms and conditions the Province may prescribe in its consent. Bayham and Ontario Transfer Payment Agreement 8 A7.0 REPORTS, ACCOUNTING, AND REVIEW A7.1 Province Includes. For the purposes of sections A7.4, A7.5 and A7.6, “Province” includes any auditor or representative the Province may identify. A7.2 Preparation and Submission. The Recipient will: (a) submit to the Province at the address set out in Schedule “B”: (i) all Reports in accordance with the timelines and content requirements set out in Schedule “F”; (ii) any other reports in accordance with any timelines and content requirements the Province may specify from time to time; (b) ensure that all Reports and other reports are: (i) completed to the satisfaction of the Province; and (i) signed by an authorized signing officer of the Recipient. A7.3 Record Maintenance. The Recipient will keep and maintain for a period of seven years from their creation: (a) all financial records (including invoices and evidence of payment) relating to the Funds or otherwise to the Project in a manner consistent with either international financial reporting standards or generally accepted accounting principles or any comparable accounting standards that apply to the Recipient; and (b) all non-financial records and documents relating to the Funds or otherwise to the Project. A7.4 Records Review. The Province may, at its own expense, upon twenty-four hours’ Notice to the Recipient and during normal business hours enter upon the Recipient’s premises to conduct an audit or investigation of the Recipient regarding the Recipient’s compliance with the Agreement, including assessing any of the following: (a) the truth of any of the Recipient’s representations and warranties; (b) the progress of the Project; (c) the Recipient’s allocation and expenditure of the Funds. Bayham and Ontario Transfer Payment Agreement 9 A7.5 Inspection and Removal. For the purposes of any Records Review, the Province may take one or both of the following actions: (a) inspect and copy any records and documents referred to in section A7.3; (b) remove any copies the Province makes pursuant to section A7.5(a). A7.6 Cooperation. To assist the Province in respect of its rights provided for in section A7.5, the Recipient will cooperate with the Province by: (a) ensuring that the Province has access to the records and documents wherever they are located; (b) assisting the Province to copy records and documents; (c) providing to the Province, in the form the Province specifies, any information the Province identifies; and (d) carrying out any other activities the Province requests. A7.7 No Control of Records. No provision of the Agreement will be construed to give the Province any control whatsoever over any of the Recipient’s records. A7.8 Auditor General. The Province’s rights under Article A7.0 are in addition to any rights provided to the Auditor General pursuant to section 9.1 of the Auditor General Act (Ontario). A8.0 COMMUNICATIONS REQUIREMENTS A8.1 Acknowledge Support. Unless the Province directs the Recipient to do otherwise, the Recipient will in each of its Project-related publications, whether written, oral, or visual: (a) acknowledge the support of the Province for the Project; (b) ensure that any acknowledgement is in a form and manner as the Province directs; and (c) indicate that the views expressed in the publication are the views of the Recipient and do not necessarily reflect those of the Province. A9.0 INDEMNITY A9.1 Indemnify. The Recipient will indemnify and hold harmless the Indemnified Parties from and against any Loss and any Proceeding, unless solely caused by the gross negligence or wilful misconduct of the Indemnified Parties. Bayham and Ontario Transfer Payment Agreement 10 A10.0 INSURANCE A10.1 Insurance. The Recipient represents, warrants, and covenants that it has, and will maintain, at its own cost and expense, with insurers having a secure A.M. Best rating of B+ or greater, or the equivalent, all the necessary and appropriate insurance that a prudent person carrying out a project similar to the Project would maintain, including commercial general liability insurance on an occurrence basis for third party bodily injury, personal injury, and property damage, to an inclusive limit of not less than the amount set out in Schedule “B” per occurrence, which commercial general liability insurance policy will include the following: (a) the Indemnified Parties as additional insureds with respect to liability arising in the course of performance of the Recipient’s obligations under, or otherwise in connection with, the Agreement; (b) a cross-liability clause; (c) contractual liability coverage; and (d) at least 30 days’ written notice of cancellation. A10.2 Proof of Insurance. The Recipient will: (a) provide to the Province, either: (i) certificates of insurance that confirm the insurance coverage required by section A10.1; or (ii) other proof that confirms the insurance coverage required by section A10.1; and (b) in the event of a Proceeding, and upon the Province’s request, the Recipient will provide to the Province a copy of any of the Recipient’s insurance policies that relate to the Project or otherwise to the Agreement, or both. A10.3 Subcontractor insurance. The Recipient will ensure that any subcontractors retained to perform any part or parts of the Project will obtain and maintain all the necessary and appropriate insurance that a prudent person in the business of the subcontractor would obtain and maintain. A11.0 TERMINATION ON NOTICE A11.1 Termination on Notice. The Province may terminate the Agreement at any time without liability, penalty, or costs upon giving 30 days’ Notice to the Bayham and Ontario Transfer Payment Agreement 11 Recipient. A11.2 Consequences of Termination on Notice by the Province. If the Province terminates the Agreement pursuant to section A11.1, the Province may take one or more of the following actions: (a) cancel further instalments of Funds; (b) demand from the Recipient the payment of any Funds remaining in the possession or under the control of the Recipient; and (c) determine the reasonable costs for the Recipient to wind down the Project, and do either or both of the following: (i) permit the Recipient to offset such costs against the amount the Recipient owes pursuant to section A11.2(b); and (ii) subject to section A4.1(a), provide Funds to the Recipient to cover such costs. A12.0 EVENT OF DEFAULT, CORRECTIVE ACTION, AND TERMINATION FOR DEFAULT A12.1 Events of Default. Each of the following events will constitute an Event of Default: (a) in the opinion of the Province, the Recipient breaches any representation, warranty, covenant, or other term of the Agreement, including failing to do any of the following in accordance with the terms and conditions of the Agreement: (i) carry out the Project; (ii) use or spend Funds; or (iii) provide, in accordance with section A7.2, Reports or such other reports as the Province may have requested pursuant to section A7.2(a)(ii); (b) the Recipient’s operations, its financial condition, its organizational structure or its control changes such that it no longer meets one or more of the eligibility requirements of the program under which the Province provides the Funds; (c) the Recipient makes an assignment, proposal, compromise, or arrangement for the benefit of creditors, or a creditor makes an application for an order adjudging the Recipient bankrupt, or applies for the appointment of a receiver; Bayham and Ontario Transfer Payment Agreement 12 (d) the Recipient ceases to operate. A12.2 Consequences of Events of Default and Corrective Action. If an Event of Default occurs, the Province may, at any time, take one or more of the following actions: (a) initiate any action the Province considers necessary in order to facilitate the successful continuation or completion of the Project; (b) provide the Recipient with an opportunity to remedy the Event of Default; (c) suspend the payment of Funds for such period as the Province determines appropriate; (d) reduce the amount of the Funds; (e) cancel further instalments of Funds; (f) demand from the Recipient the payment of any Funds remaining in the possession or under the control of the Recipient; (g) demand from the Recipient the payment of an amount equal to any Funds the Recipient used, but did not use in accordance with the Agreement; (h) demand from the Recipient the payment of an amount equal to any Funds the Province provided to the Recipient; (i) demand from the Recipient the payment of an amount equal to the costs the Province incurred or incurs to enforce its rights under the Agreement, including the costs of any Records Review and the costs it incurs to collect any amounts the Recipient owes to the Province; and (j) upon giving Notice to the Recipient, terminate the Agreement at any time, including immediately, without liability, penalty or costs to the Province. A12.3 Opportunity to Remedy. If, pursuant to section A12.2(b), the Province provides the Recipient with an opportunity to remedy the Event of Default, the Province will give Notice to the Recipient of: (a) the particulars of the Event of Default; and (b) the Notice Period. A12.4 Recipient not Remedying. If the Province provides the Recipient with an Bayham and Ontario Transfer Payment Agreement 13 opportunity to remedy the Event of Default pursuant to section A12.2(b), and: (a) the Recipient does not remedy the Event of Default within the Notice Period; (b) it becomes apparent to the Province that the Recipient cannot completely remedy the Event of Default within the Notice Period; or (c) the Recipient is not proceeding to remedy the Event of Default in a way that is satisfactory to the Province, the Province may extend the Notice Period or initiate any one or more of the actions provided for in sections A12.2(a), (c), (d), (e), (f), (g), (h), (i) and (j). A12.5 When Termination Effective. Termination under Article A12.0 will take effect as provided for in the Notice. A13.0 FUNDS AT THE END OF A FUNDING YEAR A13.1 Funds at the End of a Funding Year. Without limiting any rights of the Province under Article A12.0, if, by the end of a Funding Year, the Recipient has not spent all of the Funds allocated for that Funding Year as provided for in the maximum funds set out in Schedule B.” , the Province may take one or both of the following actions: (a) demand from the Recipient payment of the unspent Funds; (b) adjust the amount of any further instalments of Funds accordingly. A14.0 FUNDS UPON EXPIRY A14.1 Funds Upon Expiry. Upon expiry of the Agreement, the Recipient will pay to the Province any Funds remaining in its possession, under its control, or both. A15.0 DEBT DUE AND PAYMENT A15.1 Payment of Overpayment. If at any time the Province provides Funds in excess of the amount to which the Recipient is entitled under the Agreement, the Province may: (a) deduct an amount equal to the excess Funds from any further instalments of Funds; or (b) demand that the Recipient pay to the Province an amount equal to the excess Funds. A15.2 Debt Due. If, pursuant to the Agreement: Bayham and Ontario Transfer Payment Agreement 14 (a) the Province demands from the Recipient the payment of any Funds, an amount equal to any Funds or any other amounts owing under the Agreement; or (b) the Recipient owes to the Province any Funds, an amount equal to any Funds or any other amounts owing under the Agreement, whether or not the Province has demanded their payment, such amounts will be deemed to be debts due and owing to the Province by the Recipient, and the Recipient will pay the amounts to the Province immediately, unless the Province directs otherwise. A15.3 Interest Rate. The Province may charge the Recipient interest on any money owing to the Province by the Recipient under the Agreement at the then current interest rate charged by the Province of Ontario on accounts receivable. A15.4 Payment of Money to Province. The Recipient will pay any money owing to the Province by cheque payable to the “Ontario Minister of Finance” and delivered to the Province at the address set out in Schedule “B". A15.5 Fails to Pay. Without limiting the application of section 43 of the Financial Administration Act (Ontario), if the Recipient fails to pay any amount owing under the Agreement, His Majesty the King in right of Ontario may deduct any unpaid amount from any money payable to the Recipient by His Majesty the King in right of Ontario. A16.0 NOTICE A16.1 Notice in Writing and Addressed. Notice will be: (a) in writing; (b) delivered by email, postage-prepaid mail, personal delivery, or courier; and (c) addressed to the Province or the Recipient as set out in Schedule “B”, or as either Party later designates to the other by Notice. A16.2 Notice Given. Notice will be deemed to have been given: (a) in the case of postage-prepaid mail, five Business Days after the Notice is mailed; or (b) in the case of email, personal delivery or courier on the date on which the Notice is delivered. Bayham and Ontario Transfer Payment Agreement 15 A16.3 Postal Disruption. Despite section A16.2(a), in the event of a postal disruption: (a) Notice by postage-prepaid mail will not be deemed to be given; and (b) the Party giving Notice will give Notice by email, personal delivery, or courier. A17.0 CONSENT BY PROVINCE AND COMPLIANCE BY RECIPIENT A17.1 Consent. When the Province provides its consent pursuant to the Agreement: (a) it will do so by Notice; (b) it may attach any terms and conditions to the consent; and (c) the Recipient may rely on the consent only if the Recipient complies with any terms and conditions the Province may have attached to the consent. A18.0 SEVERABILITY OF PROVISIONS A18.1 Invalidity or Unenforceability of Any Provision. The invalidity or unenforceability of any provision of the Agreement will not affect the validity or enforceability of any other provision of the Agreement. A19.0 WAIVER A19.1 Condonation not a waiver. Failure or delay by the either Party to exercise any of its rights, powers or remedies under the Agreement will not constitute a waiver of those rights, powers or remedies and the obligations of the Parties with respect to such rights, powers or remedies will continue in full force and effect. A19.2 Waiver. Either Party may waive any of its rights, powers or remedies under the Agreement by providing Notice to the other Party. A waiver will apply only to the specific rights, powers or remedies identified in the Notice and the Party providing the waiver may attach terms and conditions to the waiver. A20.0 INDEPENDENT PARTIES A20.1 Parties Independent. The Recipient is not an agent, joint venturer, partner, or employee of the Province, and the Recipient will not represent itself in any way that might be taken by a reasonable person to suggest that it is or take any actions that could establish or imply such a relationship. Bayham and Ontario Transfer Payment Agreement 16 A21.0 ASSIGNMENT OF AGREEMENT OR FUNDS A21.1 No Assignment. The Recipient will not, without the prior written consent of the Province, assign any of its rights or obligations under the Agreement. A21.2 Agreement Binding. All rights and obligations contained in the Agreement will extend to and be binding on: (a) the Recipient’s heirs, executors, administrators, successors, and permitted assigns; and (b) the successors to His Majesty the King in right of Ontario. A22.0 GOVERNING LAW A22.1 Governing Law. The Agreement and the rights, obligations, and relations of the Parties will be governed by and construed in accordance with the laws of the Province of Ontario and the applicable federal laws of Canada. Any actions or proceedings arising in connection with the Agreement will be conducted in the courts of Ontario, which will have exclusive jurisdiction over such proceedings. A23.0 FURTHER ASSURANCES A23.1 Agreement into Effect. The Recipient will: (a) provide such further assurances as the Province may request from time to time with respect to any matter to which the Agreement pertains; and (b) do or cause to be done all acts or things necessary to implement and carry into effect the terms and conditions of the Agreement to their full extent. A24.0 JOINT AND SEVERAL LIABILITY A24.1 Joint and Several Liability. Where the Recipient comprises more than one entity, each entity will be jointly and severally liable to the Province for the fulfillment of the obligations of the Recipient under the Agreement. A25.0 RIGHTS AND REMEDIES CUMULATIVE A25.1 Rights and Remedies Cumulative. The rights and remedies of the Province under the Agreement are cumulative and are in addition to, and not in substitution for, any of its rights and remedies provided by law or in equity. Bayham and Ontario Transfer Payment Agreement 17 A26.0 FAILURE TO COMPLY WITH OTHER AGREEMENTS A26.1 Other Agreements. If the Recipient: (a) has failed to comply with any term, condition, or obligation under any other agreement with His Majesty the King in right of Ontario or one of His agencies (a “Failure”); (b) has been provided with notice of such Failure in accordance with the requirements of such other agreement; (c) has, if applicable, failed to rectify such Failure in accordance with the requirements of such other agreement; and (d) such Failure is continuing, the Province may suspend the payment of Funds for such period as the Province determines appropriate. A27.0 SURVIVAL A27.1 Survival. The following Articles and sections, and all applicable cross-referenced Articles, sections and schedules, will continue in full force and effect for a period of seven years from the date of expiry or termination of the Agreement: Article 1.0, Article 2.0, Article A1.0 and any other applicable definitions, section A2.1(a), sections A4.4, A4.5, A4.6, section A5.2, section A7.1, section A7.2 (to the extent that the Recipient has not provided the Reports or other reports as the Province may have requested and to the satisfaction of the Province), sections A7.3, A7.4, A7.5, A7.6, A7.7, A7.8, Article A8.0, Article A9.0, section A11.2, section A12.1, sections A12.2(d), (e), (f), (g), (h), (i) and (j), Article A13.0, Article A14.0, Article A15.0, Article A16.0, Article A18.0, section A21.2, Article A22.0, Article A24.0, Article A25.0 and Article A27.0. A28.0 ELECTRONIC SIGNATURE A28.1 Electronic Signature. The Province and the Recipient agree that the Agreement may be validly executed electronically, and that their respective electronic signature is the legal equivalent of a manual signature. An electronic signature of an authorized signing representative may be evidenced by (i) a manual signature, (ii) a digital signature including the name of the authorized signing representative in the respective signature line of the Agreement, (iii) an image of a manual signature, (iv) an Adobe signature, or (v) any other digital signature with the prior written consent of both Parties, placed in the respective signature line of the Agreement and the Agreement delivered by electronic means to the other Party, Bayham and Ontario Transfer Payment Agreement 18 including by email. END OF GENERAL TERMS AND CONDITIONS Bayham and Ontario Transfer Payment Agreement 19 SCHEDULE “B” PROJECT SPECIFIC INFORMATION Maximum Funds $38,000 Program Title Pothole Prevention and Repair Program Expiry Date June 30, 2026 Insurance $ 5,000,000 Contact information for the purposes of Notice to the Province Position: James Flanders, Team Lead, Special Highway Operations Initiatives Highway Operations Management Branch, Operations Division Address: 2nd Floor 301 St. Paul Street St. Catharines, Ontario L2R 7R4 Email: PPRP@ontario.ca Contact information for the purposes of Notice to the Recipient Position: Address: Fax: Email: Contact information for the senior financial person in the Recipient organization (e.g., CFO, CAO) – to respond as required to requests from the Province related to the Agreement Position: Address: Fax: Email: Additional Provisions: None Bayham and Ontario Transfer Payment Agreement 20 SCHEDULE “C” PROJECT DESCRIPTION AND TIMELINES C1.0 PROJECT DESCRIPTION C1.1 Project Details. The Project will use the pothole prevention and repair measures set out in section C1.2, C1.3 and C1.4 on road(s) under the jurisdiction of the Recipient. The Project will deploy one or a combination of the methods set out in this Schedule “C”. C1.2 Pothole Prevention Strategies (a) Rout and Seal, means routing, cleaning and sealing cracks using hot poured rubberized asphalt sealant compound as per OPSS MUNI 341. (b) Microsurfacing means applying a thin lift of polymer modified asphalt emulsion mix to distressed pavement.as per OPSS MUNI 336. (c) Slurry Seal means applying a homogeneous mixture of emulsified asphalt, fine aggregates, water, mineral filler, and, if required, additive in a cold fluid state on a prepared bituminous surface as per OPSS.MUNI 337. (d) Single Surface Treatment means a single application of bituminous binder followed by a single application of Class 1, Class 2, Class 3, Class 4, Class 5, or Class 6 aggregate as per OPSS.MUNI 304 (e) Double Chip Seal means two successive single chip seals with different aggregate gradations as per OPSS.MUNI 303.and (f) Granular In-Fill and Grading, Drainage and Stabilization of Unpaved Roadways means surfaces that are typically existing granular but may include sub grade soil surfaces as per OPSS.MUNI 301. C1.3 Pothole Repair Strategies (a) Hot Mix Asphalt (HMA) Patching of Flexible Pavement means resurfacing localized areas of distressed pavement using Hot Mix Asphalt as per OPSS MUNI 310. (b) Scarification and Grading of Unpaved Roadways means uniform loosening of the roadway surface to remove damaged areas such as raveling and potholes as per OPSS.MUNI 301. (c) Concrete – Pavement and Joint Seal Repairs means sawcutting, cleaning and sealing or resealing cracks in concrete pavement and concrete base as per OPSS MUNI 369. C1.4 Other (a) Project design works related to pothole preservation and repair works that will be completed between April 1, 2025 and March 31, 2026. Bayham and Ontario Transfer Payment Agreement 21 C2.0 PROJECT TIMELINES C2.1 Project Timelines. The Recipient will begin the Project by April 1, 2025, and will achieve Substantial Performance of the Project by March 31, 2026. Bayham and Ontario Transfer Payment Agreement 22 SCHEDULE “D” ELIGIBLE AND INELIGIBLE EXPENDITURES D1.0 ELIGIBLE EXPENDITURES D1.1 Eligible Expenditures. Subject to Article D2.0, Eligible Expenditures include the direct costs incurred and paid by the Recipient between April 1, 2025, and March 31, 2026 and that, in the opinion and at the sole discretion of the Province, are considered to have been properly and reasonably incurred and are necessary for the successful implementation of the Project, and include: (a) Purchase and delivery of materials required for the Project; (b) Project design related to preservation and repair works that will be completed between the period of April 1, 2025, and March 31, 2026; (c) Labour for contracted construction and repairs if used for Eligible Expenditures; (d) Recipient-owned equipment to be reimbursed at OPSS 127 Rates if used for Eligible Expenditures; (e) Updating Road Condition Reports if prepared by an external consultant; (f) Any other costs, as determined by the Province from time to time and at its sole discretion. D1.2 Required Documentation. Eligible Expenditures must be documented through paid invoices or original receipts, or both, satisfactory to the Province. D2.0 INELIGIBLE EXPENDITURES D2.1 Ineligible Expenditures. Without limitation, the following costs, unless they have received the prior written approval of the Province, will be considered Ineligible Expenditures: (a) Costs not associated with the Project; (b) Costs incurred before April 1, 2025, or after March 31, 2026; (c) Costs associated with feasibility studies and design work that will not be completed between April 1, 2025 and March 31, 2026; (d) Any costs related to a project that has already received funding for eligible expenses from another funding source; (e) Administrative costs; (f) Audit and financial reporting costs; (g) Any other costs, as determined by the Province from time to time and at its sole discretion. Bayham and Ontario Transfer Payment Agreement 23 SCHEDULE “E” PAYMENT PLAN Project Milestones Required Reports/ Documents Date Payment # 1 TPA Dually Executed January 30, 2026 to February 27, 2026 100% of Maximum Funds # 2 Compliance Reporting • As per F1.1 January 30, 2026 # 3 Final Reporting • As per F2.1 April 17, 2026 Bayham and Ontario Transfer Payment Agreement 24 SCHEDULE “F” REPORTING AND COMPLIANCE AUDIT F1.0 DEFINITION F1.1 Definition. In this Schedule “F”: “Generally Accepted Auditing Standards” means Canadian Generally Accepted Auditing Standards as adopted by the Chartered Professional Accountants of Canada or the Public Sector Accounting Board applicable as of the date on which such a record is kept or required to be kept in accordance with such standards. F2.0 REPORTS, DOCUMENTS AND SUBMISSION DATES F2.1 Description and Submission Dates The Recipient will submit to the Province, at the email address pprp@ontario.ca, the Reports and other documents described as requested that are further described in Sub-schedule “F1” and section A.10.2 by their respective submission dates. F3.0 COMPLIANCE AUDIT F3.1 Compliance Audit. The Province may, at its sole discretion and within timelines set out by the Province, request that the Recipient carry out a Project compliance audit in accordance with Generally Accepted Auditing Standards and delivers the corresponding compliance audit report(s) within the timelines set out by the Province. F3.2 Compliance Audit Requirements. If the Province requests a Project compliance audit pursuant to section F3.1, the Recipient will retain at the Recipient’s expense and within the timelines set out by the Province, an accredited external independent auditor(s) to carry out the audit and will deliver any compliance audit reports(s) from such audit to the province within seven Business Days of the Recipient’s receipt of the report. F3.3 Compliance Audit Objectives. The key objectives of the compliance audit(s) are to: (a) determine whether Funds were expended for the purposes intended and with due regard to the economy, efficiency and effectiveness; (b) determine compliance with the Agreement; Bayham and Ontario Transfer Payment Agreement 25 (c) ensure that the Project, Reports and other reports, and financial information are complete, timely, accurate, in accordance with the terms and conditions of the Agreement; (d) ensure that information and monitoring processes and systems are sufficient for the identification, capture, validation and monitoring of the service performance measures; (e) assess the overall management and administration of the Project; (f) provide recommendations for improvement or redress; and (g) ensure that prompt and timely corrective action is taken on audit findings. Bayham and Ontario Transfer Payment Agreement 26 SUB SCHEDULE “F1” PROJECT REPORTS F1.0. COMPLIANCE REPORT F1.1. The Recipient shall submit the following to the Province by January 30th, 2026: (a) a copy of the Recipient’s 2022 Asset Management Plan or current; (b) a copy of the Recipient’s most recent Pavement/Road Condition Reports; (c) a confirmation of submission of the Recipient’s 2024 Financial Information Return to Ministry of Municipal Affairs and Housing; (d) the number of pothole complaints received by the Recipient in the 2024 and 2025 calendar years, as available; (e) additional information requested by the Province. F1.2.0 FINAL REPORT F1.2.1 Description and Submission Date. The Recipient shall submit to the Province a description of the activities completed and certify the completion of the Project as per the Agreement. The reporting period for the Projects and information that pertains to them is April 1, 2025 to March 31, 2026. The deadline to submit required reporting is April 17, 2026. The final report will include the following: (a) Quantitative data on road maintenance supported by the Program, that the Recipient carried out, including the number of kilometres maintained; (b) Project details of activities and/or materials related to the use of the Funds. Examples of accepted documentation include: invoices and payment certificates, post construction report, purchase and delivery of assets or supplies; (c) Other activities that achieved the Project’s objectives. F1.2.2 Reporting Failure. The Province requires submission of the program reports to inform future development of the Program, ensure effective administration and monitor performance of the Program. Any failure by the Recipient to provide Reports to the Province as set out in this Agreement may result in an Event of Default by the Recipient under Section A12.1. REPORT CAO TO: Mayor & Members of Council FROM: Thomas Thayer, Chief Administrative Officer DATE: February 5, 2026 REPORT: CAO-06/26 SUBJECT: BAYHAM COMMUNITY STRATEGIC PLAN PROGRESS – 2025 BACKGROUND At its July 6, 2023 Special meeting, Council received Report CAO-38/23 re 2023-2026 Bayham Community Strategic Plan Adoption. The Strategic Plan was presented to Council in draft format, and included previously-adopted proposed initiatives to be included in the Community Strategic Plan. Key Initiatives included: • Improving communication • Encouraging strategic development • Encouraging a mix of housing types • Enhancing the Port Burwell East Beach • Rehabilitating the Port Burwell Lighthouse • Focusing investment on core infrastructure • Retiring the debt associated with the HMCS Ojibwa Council passed the following motion: Moved by: Councillor Chilcott Seconded by: Councillor Emerson THAT Report CAO-38/23 re 2023-2026 Bayham Community Strategic Plan Adoption received for information; AND THAT Council adopt the 2023-2026 Bayham Community Strategic Plan. The intent of Initiatives is that staff will be able to specifically identify in a Report to which Initiative(s) an item applies, which will give Council and residents more information regarding how the Municipality is adhering to and implementing its Strategic Plan during the current Council term. Since adoption, the Strategic Plan has been available on the Municipal website, and has been integrated into Reports to Council via a new section that identifies the specific Goal(s), Objective(s), and Initiative(s) to which the Report applies. At its August 21, 2025 meeting, Council received Report CAO-33/25 re Bayham Community Strategic Plan Progress – 2025 Mid-Year Report. The Report presented approximately twenty initiatives actioned in the first half of 2025 aligned with the 2023-2026 Bayham Community Strategic Plan Council passed the following motion: Moved by: Councillor Chilcott Seconded by: Deputy Mayor Weisler THAT Report CAO-33/25 re Bayham Community Strategic Plan Progress – 2025 Mid-Year Report be received for information. This Report provides further information on 2025’s strategic plan initiatives, with a focus on the latter half of the year. DISCUSSION The goal of this Report is to provide a summary to Council of progress made in the back half of 2025 on some key Initiatives identified in the 2023-2026 Community Strategic Plan. This is intended to demonstrate staff’s alignment with Council’s priorities and execution of same as we enter the final year of the four-year Plan. Quality of Place Quality of Place Initiatives focus on key areas such as core infrastructure investment, an improved tourism experience, and strategies to attract and retain businesses to reinforce Bayham’s economy. Bayham focuses heavily on core infrastructure renewal in accordance with the Municipality’s Asset Management Plan. Ontario Regulation (O.Reg) 588/17 requires each municipality adopted an asset management plan (AMP) and ensure that certain deadlines are met for compliance. As of July 1, 2025, AMPs were required to include service levels and costs for all core and non-core infrastructure, and a financial strategy to ensure that municipalities are fully funding their respective capital programs. In July1 and again in September 20252, Council considered the financial strategy for Bayham’s AMP, and ultimately adopted a financial strategy that brings Bayham to fully funded levels in 25 years. This requires 4.9 percent increases year-over-year to the capital program, based on 1.3 percent in assumed annual assessment growth and 3.6 percent funded by existing taxpayers3. Bayham also approved general development charges for services related to roads, fire, and parks and recreation4. The intent of development charges is to fund growth-related infrastructure needs in Bayham related to these areas. These development charges apply 1 Item 3A – Presentation – Watson & Associates Economists Ltd. Re Asset Management Plan – Financial Strategy (July 30, 2025 Special meeting). 2 Report CAO-36/25 (September 4, 2025 meeting). 3 Bayham AMP Financial Strategy. https://laserfiche.bayham.on.ca/WebLink/DocView.aspx?id=566537&dbid=0&repo=BAYHAM 4 By-law No. 2025-051. across the municipality rather than focusing specifically on serviced areas. The annual development charge Report comes to Council in February of a given calendar year to report on the previous years’ development charge revenues and expenditures5. In collaboration with Malahide and Central Elgin, staff made a pair of large grant joint applications to support core regional water infrastructure. Applications were made to the Canada Housing Infrastructure Fund (CHIF) and the Municipal Housing Infrastructure Program – Health and Safety Water Stream (MHIP-HSWS) for the seven-kilometre stretch of the Nova Scotia Line transmission main. The costs for Bayham are estimated at $12.6 million (2025 dollars). This Capital Item is included in the 2026-2035 Capital Budget. The CHIF offered up to 40 percent funding for eligible costs, while the MHIP-HSWS offered up to 73 percent. Both grants would have significant positive impacts on ultimate costs of rehabilitating the transmission main. Staff at the three municipalities were confidentially advised in November 2025 of an impending MHIP-HSWS funding announcement, which was made public in January 20266. Malahide, Bayham, and Central Elgin will benefit from $15,330,000 in provincial contributions towards this $21 million project. Bayham, as the largest purchaser of water from the Port Burwell Area Secondary Water Supply System (PBASWSS), will receive the greatest benefit. This benefit does not impact current water rates, but will have a positive impact on future water rates as provincial funding offsets Bayham’s required contributions to works on the PBASWSS transmission main. As a partnership with Elgin County, Elgincentives continued in 2025 as a Community Improvement Program to provide opportunities for local businesses to seek out external funding for capital upgrades in support of their operations. Elgincentives was also under regional review in 2025 with staff input from Bayham. Elgin County will be seeking support in 2026 for an updated Elgincentives program to act as Bayham’s Community Improvement Program (CIP). The Municipality has been in negotiations throughout 2025 with an external organization on the rehabilitation of the Port Burwell Lighthouse and is close to being in a position to make public the results, including any proposed agreement(s) and/or potential transfer. The Municipality has also been in discussions with the abutting landowner regarding the Licence Agreement over the lands and either an extension of the previous terms, or new terms on which to base the licensing arrangement. Quality of Life Quality of Life Initiatives focus on key areas such as a diversity of passive and active services to the community, strategic growth in accordance with resident needs, and being environmentally-conscious. Bayham staff continued its non-core portfolio work in 2025. Staff completed the canoe/kayak launch in Vienna under budget. Staff worked with PK Construction to complete the accessibility upgrades at the Marine Museum, including a new barrier-free washroom and accessible entrance. These works were supported by an Enabling Accessibility Fund (EAF) grant, received 5 Anticipated February 19, 2026. 6 https://www.bayham.on.ca/news/posts/receipt-of-funding-joint-grant-application-for-port-burwell-area- secondary-water-supply-system-pbaswss-rehabilitation-project/ in 2023. Bayham also completed upgrades to various outbuildings in the Straffordville Community Park7. Staff made significant progress in 2025 on the Straffordville Community Centre (SCC) expansion project. The expansion is supported by the ICIP Community, Culture and Recreation program, Community, Culture and Recreation stream (ICIP-CCR) with approximately $1.47 million in upper-level government funding. Public Works staff coordinated a new well for the SCC to support greater water demands8. The tender for the project was issued in August 2025. Staff and representatives of a+LINK architecture Inc. (a+LINK) conducted a public tender opening on September 16, 20259. Council awarded the works to PK Construction at a Special Meeting on October 9, 202510, which proposes to use some of Bayham’s debt capacity to fund the increased costs associated with the project. Since then, a CCDC2 agreement has been authorized between Bayham and PK Construction for the project11, mandatory signage has been erected, demolition of the concession booth has been completed, and the expansion portion has begun. The East Beach had a very successful year. The Municipality was successful in its 2025 Blue Flag application an conducted a formal Blue Flag raising in June. Staff noted high overall usership, consistent with 2024’s levels. Council was supportive a paid parking pilot at the East Beach12 and associated changes to the Traffic and Parking By-law13. The pilot implementation involved numerous staff working with HONK Mobile, and the recruitment of seasonal staff to support enforcement and customer service for the program. The program generated $99,806.47 in net revenues14 has been included in the 2026 Operating Budget, including a $65,000 reserve transfer to support Beach-related capital funding in future years. The 2026 Blue Flag application was formally submitted in December. As a part of the 2026 East Beach season, staff are investigating educational opportunities under the Blue Flag program, including agencies such as Elgin Libraries, and the East Elgin Secondary School ELP. The WAC will be involved with staff regarding a Make-a-Pledge Campaign, Photography Contest, and environmental reading series with Elgin Libraries. The Photography Contest was successful in 2025 as a partnership with the Photographers of the Otter Valley. Prizes for the top four photographs were awarded at the November 6, 2025 Council meeting15. The Municipality continues with its Official Plan Conformity Review16. The public meeting for adoption of the Official Plan Conformity Review will be later in Q1 2026. Quality of Governance 7 Report PS-08/25 (August 21, 2025 meeting) 8 Report PS-05/25 (May 1, 2025 meeting). 9 Livestreamed on Bayham’s Youtube Channel. 10 Report CAO-41/25 (October 9, 2025 Special meeting). 11 By-law No. 2025-068. 12 Report BL-01/25 (January 16, 2025 meeting). 13 Report BL-02/25 (February 20, 2025 meeting). 14 Report BL-05/25 (November 20, 2025 meeting). 15 Item No. 5A (November 6, 2025 meeting). 16 Report DS-39/24. Kick-off meeting was May 23, 2024. Quality of Governance Initiatives focus on key areas such developing and retaining knowledge within the Municipality to improve services, demonstrating financial responsibility, and taking advantage of partnerships and joint ventures to the betterment of the community. Council and staff continue to work on the Municipality’s communications approach. Council approved a Social Media Policy in 202517, but agreed to suspend the venture due to issues establishing a presence under Meta’s new AI and screening regime18. Staff will be relying heavily upon the website and Voyent Alert! in 2026. The Municipality experienced significant turnover in 2025, highlighted by two retirements of long-time staff members, the impending retirement of a third, and an approved leave of absence for a fourth. The Municipality also formally transitioned its water and wastewater operations and maintenance portfolio to the Ontario Clean Water Agency (OCWA)19. In total, seven of Bayham’s approximately 24 staff positions experienced turnover in some capacity, which placed significant strain on the administration in the latter half of 2025, particularly in respect of reorganization and recruitment while maintaining levels of service. Currently, staff continue the recruitment for two positions. An interim Clerk to cover the Clerk’s approved leave of absence has been confirmed and will be joining Bayham on February 17, 2026. Bayham received a Fire Protection Grant20 and Community Emergency Preparedness Grant (CEPG)21 in 2025. These grants supported the expansion of the emergency management and response capacity of Bayham, and added supports for both fire stations to protect firefighters. Staff also made another Fire Protection Grant application, and submission to the Pothole Prevention and Repair Program (PPRP). Both of these were successful. Council is aware of the MHIP-HSWS success discussed earlier in this Report. Bayham was successful in retiring the Ojibwa debt 15 years early, conducting the surplus report22 and retirement23 in Q1 2025 before approval of the 2025 Operating Budget. Bayham is now debt-free and can use its full debt carrying capacity to fund core and non-core infrastructure needs in accordance with the AMP and/or Council’s direction, where applicable. Internally, staff continue to cross-train and seek out ways within the existing organizational structure to provide for built-in back-ups and potential for internal succession and advancement, where possible. Bayham staff continue to work towards service efficiencies in areas of shared services and information technology (IT). Bayham and Malahide are 2.5 years into a shared building and by-law service, which has won an EA Danby Award24 and continues to demonstrate benefits to Bayham. Staff expect an annual shared service report before Council after year-end has been completed. Bayham also transitioned its IT managed service provider support away from Elgin 17 By-law No. 2025-002. 18 Report CL-07/25 (November 20, 2025 meeting). 19 Report CAO-43/25 (November 6, 2025 meeting). 20 Reports CAO-01/25 (January 16, 2025 meeting), and Report CAO-24/25 (May 1, 2025 meeting). 21 Report CAO-10/25 (February 6, 2025 meeting). 22 Report TR-07/25 (February 27, 2025 Special meeting). 23 Report TR-09/25 (March 6, 2025 meeting). 24 Report CAO-28/24 (July 18, 2024 meeting) County and Stronghold in 2025 to Zouling Technologies25 on a two-year term26. Since this transition, Bayham has experienced a significant increase in responsiveness and capacity to support its operational needs, which has led to technology and security upgrades and a leaner municipal IT portfolio27. The Municipality continues to use shared services in areas of legal service, human resources, and GIS through Malahide and Elgin County to complement its operational needs. In light of the Planning Coordinator/Deputy Clerk’s upcoming retirement, discussion recommenced in Q3 2025 regarding a centralized planning service, housed at Elgin County, which would support Bayham’s core planning requirements. Bayham Council has since authorized the transition, effective February 2, 202628, and new land use planning applications are now to be received and processed through Elgin County. Bayham joins Southwold, Dutton Dunwich, and West Elgin in this planning services model. Staff will continue to provide updates to Council on a regular basis regarding Strategic Plan matters, both through individual Reports and planned updates to Council on progress on key projects and Initiatives to ensure accountability to both Council and the public regarding Council’s strategic goals. Looking Forward 2026 will be the final year of the current Strategic Plan. When it was adopted in 2023, it was meant to be a document that generally guided the focal points for Council and the Municipality for the term. Staff will return to Council in the summer with a mid-year update, and will provide the final Report for the current Strategic Plan Q1 2027. At that time or in Q4 2026 and after Inauguration, the new Council will be asked to give some thought to what they would like their Strategic Plan to look like, and the process of developing a new Strategic Plan will begin. The 2026-2035 Capital Budget includes in 2027 Capital Item No. GG-02 – Strategic Plan Update – with an allocation of $30,000. STRATEGIC PLAN As this Report is a summary of Strategic Plan progress over 2025, the Strategic Plan is deemed to apply in general to this Report and further applies to Quality of Governance through clear communication of how Council and staff work together to execute Council’s priorities. RECOMMENDATION 1. THAT Report CAO-06/26 re Bayham Community Strategic Plan Progress – 2025 be received for information. Respectfully Submitted by: Thomas Thayer, CMO, AOMC Chief Administrative Officer 25 Report CL-03/25 (May 1, 2025 meeting). 26 By-law No. 2025-038. 27 Report CL-06/25 (September 18, 2025 meeting). 28 Report CAO-43/25 (November 6, 2025). THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO. 2026-003 A BY-LAW TO AUTHORIZE THE EXECUTION OF A TRANSFER PAYMENT AGREEMENT BETWEEN HIS MAJESTY THE KING IN RIGHT OF ONTARIO AND THE CORPORATION OF THE MUNICIPALITY OF BAYHAM FOR THE FIRE PROTECTION GRANT PROGRAM WHEREAS section 8(1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, grants a broad scope of powers to municipalities to govern their affairs as they consider appropriate; AND WHEREAS the Municipality of Bayham was notified on December 22, 2025 that its application to the Fire Protection Grant program was successful in the amount of $35,144.92; AND WHEREAS Council of the Municipality of Bayham is desirous of entering into a Transfer Payment Agreement for receipt of the funds and confirm ability to proceed with the identified work within the grant application; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: 1. THAT the Mayor and Chief Administrative Officer be and are hereby authorized to execute the Transfer Payment Agreement attached hereto as Schedule “A” and forming part of this by-law; 2. AND THAT this by-law shall come into full force and effect upon final passing. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 5th DAY OF FEBRUARY, 2026. ___________________________ _____________________________ MAYOR CLERK Page 1 Transfer Payment Agreement ONTARIO FIRE PROTECTION GRANT TRANSFER PAYMENT AGREEMENT THE AGREEMENT, effective as of the (The “Effective Date”) B E T W E E N: His Majesty the King in right of Ontario as represented by the Solicitor General (referred to as the “Province”) - and - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM (the “Recipient”) CONSIDERATION In consideration of the mutual covenants and agreements contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are expressly acknowledged, the Province and the Recipient agree as follows: 1.0 ENTIRE AGREEMENT 1.1 Schedules to the Agreement. The following schedules form part of the Agreement: Schedule “A” - General Terms and Conditions Schedule “B” - Project Specific Information and Additional Provisions Schedule “C” - Project Schedule “D” - Budget Schedule “E” - Payment Plan Schedule “F” - Reports 1.2 Entire Agreement. The Agreement constitutes the entire agreement between the Parties with respect to the subject matter contained in the Agreement and supersedes all prior oral or written representations and agreements. 2.0 CONFLICT OR INCONSISTENCY 2.1 Conflict or Inconsistency. In the event of a conflict or inconsistency between the Additional Provisions and the provisions in Schedule “A”, the following rules will apply: Page 2 Transfer Payment Agreement (a) the Parties will interpret any Additional Provisions in so far as possible, in a way that preserves the intention of the Parties as expressed in Schedule “A”; and (b) where it is not possible to interpret the Additional Provisions in a way that is consistent with the provisions in Schedule “A”, the Additional Provisions will prevail over the provisions in Schedule “A” to the extent of the inconsistency. 3.0 COUNTERPARTS 3.1 One and the Same Agreement. The Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 4.0 AMENDING THE AGREEMENT 4.1 This Agreement may be amended upon the agreement of all Parties, which shall be executed in writing. 5.0 ACKNOWLEDGEMENT 5.1 The Recipient acknowledges that: (a) by receiving Funds, it may become subject to legislation applicable to organizations that receive funding from the Government of Ontario; (b) His Majesty the King in right of Ontario has issued expenses, perquisites, and procurement directives and guidelines pursuant to the Broader Public Sector Accountability Act, 2010 (Ontario); (c) the Funds are: (i) to assist the Recipient to carry out the Project and not to provide goods or services to the Province; (ii) funding for the purposes of the Public Sector Salary Disclosure Act, 1996 (Ontario); (d) the Province is not responsible for carrying out the Project; (e) the Province is bound by the Freedom of Information and Protection of Privacy Act (Ontario) and that any information provided to the Province in connection with the Project or otherwise in connection with the Agreement may be subject to disclosure in accordance with that Act; and Page 3 Transfer Payment Agreement (f) the Province is bound by the Financial Administration Act (Ontario) (“FAA”) and, pursuant to subsection 11.3(2) of the FAA, payment by the Province of Funds under the Agreement will be subject to, (i) an appropriation, as that term is defined in subsection 1(1) of the FAA, to which that payment can be charged being available in the Funding Year in which the payment becomes due; or (ii) the payment having been charged to an appropriation for a previous fiscal year. SIGNATURE PAGE FOLLOWS Page 4 Transfer Payment Agreement The Parties have executed the Agreement on the dates set out below. HIS MAJESTY THE KING IN RIGHT OF ONTARIO as represented by the Solicitor General ________________________ ____________________________________ Date Name: Carrie Clark Title: Deputy Fire Marshal THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ________________________ ____________________________________ Date Name: ____________________________________ Title: I have authority to bind the Recipient ________________________ ____________________________________ Date Name: ____________________________________ Title: I have authority to bind the Recipient Page 5 Transfer Payment Agreement SCHEDULE “A” GENERAL TERMS AND CONDITIONS A1.0 INTERPRETATION AND DEFINITIONS A1.1 Interpretation. For the purposes of interpretation: (a) words in the singular include the plural and vice-versa; (b) words in one gender include all genders; (c) the headings do not form part of the Agreement; they are for reference only and will not affect the interpretation of the Agreement; (d) any reference to dollars or currency will be in Canadian dollars and currency; and (e) “include”, “includes” and “including” denote that the subsequent list is not exhaustive. A1.2 Definitions. In the Agreement, the following terms will have the following meanings: “Additional Provisions” means terms and conditions set out in Schedule “B”. “Agreement” means this agreement entered into between the Province and the Recipient, all of the schedules listed in section 1.1, and any amending agreement entered into pursuant to section 4.1. “Budget” means the budget attached to the Agreement as Schedule “D”. “Business Day” means any working day, Monday to Friday inclusive, excluding statutory and other holidays, namely: New Year’s Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; Boxing Day and any other day on which the Province has elected to be closed for business. “Effective Date” means the date set out at the top of the Agreement. “Event of Default” has the meaning ascribed to it in section A12.1. “Expiry Date” means the expiry date set out in Schedule “B”. “Funding Year” means. (a) in the case of the first Funding Year, the period commencing on the Effective Date and ending on the following March 31; and (b) in the case of Funding Years subsequent to the first Funding Year, the Page 6 Transfer Payment Agreement period commencing on April 1 following the end of the previous Funding Year and ending on the following March 31 or the Expiry Date, whichever is first. “Funds” means the money the Province provides to the Recipient pursuant to the Agreement. “Indemnified Parties” means His Majesty the King in right of Ontario, His ministers, agents, appointees, and employees. “Loss” means any cause of action, liability, loss, cost, damage, or expense (including legal, expert and consultant fees) that anyone incurs or sustains as a result of or in connection with the Project or any other part of the Agreement. “Maximum Funds” means the maximum set out in Schedule “B”. “Notice” means any communication given or required to be given pursuant to the Agreement. “Notice Period” means the period of time within which the Recipient is required to remedy an Event of Default pursuant to section A12.3(b) and includes any such period or periods of time by which the Province extends that time. “Parties” means the Province and the Recipient. “Party” means either the Province or the Recipient. “Proceeding” means any action, claim, demand, lawsuit, or other proceeding that anyone makes, brings or prosecutes as a result of or in connection with the Project or with any other part of the Agreement. “Project” means the undertaking described in Schedule “C” and as may be amended from time to time. “Records Review” means any assessment the Province conducts pursuant to section A7.4. “Reports” means the reports described in Schedule “F”. A2.0 REPRESENTATIONS, WARRANTIES AND COVENANTS A2.1 General. The Recipient represents, warrants, and covenants that: (a) it is, and will continue to be a validly existing legal entity with full power to fulfill its obligations under the Agreement; (b) it has, and will continue to have, the experience and expertise necessary to carry out the Project; (c) it is in compliance with, and will continue to comply with, all federal and Page 7 Transfer Payment Agreement provincial laws and regulations, all municipal by-laws, and any other orders, rules, and by-laws related to any aspect of the Project, the Funds, or both; and (d) unless otherwise provided for in the Agreement, any information the Recipient provided to the Province in support of its request for funds (including information relating to any eligibility requirements) was true and complete at the time the Recipient provided it and will continue to be true and complete. A2.2 Execution of Agreement. The Recipient represents and warrants that it has: (a) the full power and capacity to enter into the Agreement; and (b) taken all necessary actions to authorize the execution of the Agreement. A2.3 Governance. The Recipient represents, warrants and covenants that it has, will maintain, in writing, and will follow: (a) procedures to enable the Recipient’s ongoing effective functioning; (b) decision-making mechanisms for the Recipient; (c) procedures to enable the Recipient to manage Funds prudently and effectively; (d) procedures to enable the Recipient to complete the Project successfully; (e) procedures to enable the Recipient to identify risks to the completion of the Project and strategies to address the identified risks, all in a timely manner; (f) procedures to enable the preparation and submission of all Reports required pursuant to Article A7.0; and (g) procedures to enable the Recipient to address such other matters as the Recipient considers necessary to enable the Recipient to carry out its obligations under the Agreement. A2.4 Supporting Proof. Upon the request of the Province, the Recipient will provide the Province with proof of the matters referred to in Article A2.0. A3.0 TERM OF THE AGREEMENT A3.1 Term. The term of the Agreement will commence on the Effective Date and will expire on the Expiry Date unless terminated earlier pursuant to Article A11.0 or Article A12.0. Page 8 Transfer Payment Agreement A4.0 FUNDS AND CARRYING OUT THE PROJECT A4.1 Funds Provided. The Province will: (a) provide the Recipient with Funds up to the Maximum Funds for the purpose of carrying out the Project; (b) provide the Funds to the Recipient in accordance with the payment plan attached to the Agreement as Schedule “E”; and (c) deposit the Funds into an account designated by the Recipient provided that the account: (i) resides at a Canadian financial institution; (ii) is in the name of the Recipient; and (iii) is registered in TPON. A4.2 Limitation on Payment of Funds. Despite section A4.1: (a) the Province is not obligated to provide any Funds to the Recipient until the Recipient provides the certificates of insurance or other proof required pursuant to section A10.2; (b) the Province is not obligated to provide instalments of Funds until it is satisfied with the progress of the Project; and (c) the Province may adjust the amount of Funds it provides to the Recipient based upon the Province’s assessment of the information the Recipient provides to the Province pursuant to section A7.2. A4.3 Use of Funds and Carrying Out the Project. The Recipient will do all of the following: (a) carry out the Project in accordance with the Agreement; (b) use the Funds only for the purpose of carrying out the Project; (c) spend the Funds only in accordance with the Budget; (d) not use the Funds to cover any cost that has been or will be funded or reimbursed by one or more of any third party, ministry, agency, or organization of the Government of Ontario. A4.4 Interest-Bearing Account. If the Province provides Funds before the Recipient’s immediate need for the Funds, the Recipient will place the Funds in an interest-bearing account in the name of the Recipient at a Canadian financial institution. Page 9 Transfer Payment Agreement A4.5 Interest. If the Recipient earns any interest on the Funds, the Province may do either or both of the following: (a) deduct an amount equal to the interest from any further instalments of Funds; (b) demand from the Recipient the payment of an amount equal to the interest. A4.6 Interest. Rebates, Credits, and Refunds. The Province will calculate Funds based on the actual costs to the Recipient to carry out the Project, less any costs (including taxes) for which the Recipient has received, will receive, or is eligible to receive, a rebate, credit, or refund. A5.0 RECIPIENT’S ACQUISITION OF GOODS OR SERVICES, AND DISPOSAL OF ASSETS A5.1 Acquisition. If the Recipient acquires goods, services, or both with the Funds, it will do so through a process that promotes the best value for money. A5.2 Disposal. The Recipient will not, without the Province’s prior consent, sell, lease, or otherwise dispose of any asset purchased or created with the Funds or for which Funds were provided, the cost of which exceeded the amount as set out in Schedule “B” at the time of purchase. A6.0 CONFLICT OF INTEREST A6.1 Conflict of Interest Includes. For the purposes of Article A6.0, a conflict of interest includes any circumstances where: (a) the Recipient; or (b) any person who has the capacity to influence the Recipient’s decisions, has outside commitments, relationships, or financial interests that could, or could be seen by a reasonable person to, interfere with the Recipient’s objective, unbiased, and impartial judgment relating to the Project, the use of the Funds, or both. A6.2 No Conflict of Interest. The Recipient will carry out the Project and use the Funds without an actual, potential, or perceived conflict of interest unless: (a) the Recipient: (i) provides Notice to the Province disclosing the details of the actual, potential, or perceived conflict of interest; and (ii) requests the consent of the Province to carry out the Project with Page 10 Transfer Payment Agreement an actual, potential, or perceived conflict of interest; (b) the Province provides its consent to the Recipient carrying out the Project with an actual, potential, or perceived conflict of interest; and (c) the Recipient complies with any terms and conditions the Province may prescribe in its consent. A7.0 REPORTING, ACCOUNTING AND REVIEW A7.1 Province Includes. For the purposes of sections A7.4, A7.5 and A7.6, “Province” includes any auditor or representative the Province may identify. A7.2 Preparation and Submission. The Recipient will: (a) submit to the Province at the address set out in Schedule “B”: (i) all Reports in accordance with the timelines and content requirements set out in Schedule “F”; (ii) any other reports in accordance with any timelines and content requirements the Province may specify from time to time; (b) ensure that all Reports and other reports are: (i) completed to the satisfaction of the Province; and (ii) signed by an authorized signing officer of the Recipient. A7.3 Record Maintenance. The Recipient will keep and maintain for a period of seven years from their creation: (a) all financial records (including invoices and evidence of payment) relating to the Funds or otherwise to the Project in a manner consistent with either international financial reporting standards or generally accepted accounting principles or any comparable accounting standards that apply to the Recipient; and (b) all non-financial records and documents relating to the Funds or otherwise to the Project. A7.4 Records Review. The Province may, at its own expense, upon twenty-four hours’ Notice to the Recipient and during normal business hours, enter upon the Recipient’s premises to conduct an audit or investigation of the Recipient regarding the Recipient’s compliance with the Agreement, including assessing Page 11 Transfer Payment Agreement any of the following: (a) the truth of any of the Recipient’s representations and warranties; (b) the progress of the Project; (c) the Recipient’s allocation and expenditure of the Funds. A7.5 Inspection and Removal. For the purposes of any Records Review, the Province may take one or both of the following actions: (a) inspect and copy any records and documents referred to in section A7.3; and (b) remove any copies the Province makes pursuant to section A7.5(a). A7.6 Cooperation. To assist the Province in respect of its rights provided for in section A7.5, the Recipient will cooperate with the Province by: (a) ensuring that the Province has access to the records and documents wherever they are located; (b) assisting the Province to copy records and documents; (c) providing to the Province, in the form the Province specifies, any information the Province identifies; and (d) carrying out any other activities the Province requests. A7.7 No Control of Records. No provision of the Agreement will be construed to give the Province any control whatsoever over any of the Recipient’s records. A7.8 Auditor General. The Province’s rights under Article A7.0 are in addition to any rights provided to the Auditor General pursuant to section 9.1 of the Auditor General Act (Ontario). A8.0 COMMUNICATIONS REQUIREMENTS A8.1 Acknowledge Support. Unless the Province directs the Recipient to do otherwise, the Recipient will in each of its Project-related publications, whether written, oral, or visual, including public announcements or communications: (a) acknowledge the support of the Province for the Project; (b) ensure that any acknowledgement is in a form and manner as the Province directs; Page 12 Transfer Payment Agreement (c) indicate that the views expressed in the publication are the views of the Recipient and do not necessarily reflect those of the Province; and (d) obtain prior written approval from the Province before using any logo or symbol of the Government of Ontario, the Ministry of the Solicitor General or the Office of the Fire Marshal in any communications including press releases, published reports, radio and television programs and public or private meetings, or in any other type of promotional material, relating to the Project or this Agreement. A8.2 Notice of Project-Related Communications. Unless the Province directs the Recipient to do otherwise, the Recipient will provide written notice to the Province a minimum of 14 Business Days in advance of all Project-related publications, whether written, oral, or visual, including public announcements or communications. A9.0 INDEMNITY A9.1 Indemnify. The Recipient will indemnify and hold harmless the Indemnified Parties from and against any Loss and any Proceeding, unless solely caused by the gross negligence or wilful misconduct of the Indemnified Parties. A10.0 INSURANCE A10.1 Insurance. The Recipient represents, warrants, and covenants that it has, and will maintain, at its own cost and expense, with insurers having a secure A.M. Best rating of B+ or greater, or the equivalent, all the necessary and appropriate insurance that a prudent person carrying out a project similar to the Project would maintain, including commercial general liability insurance on an occurrence basis for third party bodily injury, personal injury, and property damage, to an inclusive limit of not less than the amount set out in Schedule “B” per occurrence, which commercial general liability insurance policy will include the following: (a) the Indemnified Parties as additional insureds with respect to liability arising in the course of performance of the Recipient’s obligations under, or otherwise in connection with, the Agreement; (b) a cross-liability clause; (c) contractual liability coverage; and (d) at least 30 days’ written notice of cancellation. Page 13 Transfer Payment Agreement A10.2 Proof of Insurance. The Recipient will, (a) provide to the Province, either, (i) certificates of insurance that confirm the insurance coverage required by section A10.1; or (ii) other proof that confirms the insurance coverage required by section A10.1; and (b) in the event of a Proceeding, and upon the Province’s request, the Recipient will provide to the Province a copy of any of the Recipient’s insurance policies that relate to the Project or otherwise to the Agreement, or both. A11.0 TERMINATION ON NOTICE A11.1 Termination on Notice. This Agreement may be terminated by the Province at any time without liability, penalty, or costs upon giving at least thirty (30) days prior written Notice to the Recipient. A11.2 When Termination Effective. Termination under Article A11.1 will take effect as provided for in the Notice. A11.3 Consequences of Termination on Notice by the Province. If the Province terminates the Agreement pursuant to section A11.1, the Province may take one or more of the following actions: (a) cancel further installments of Funds; (b) demand from the Recipient the payment of any Funds remaining in the possession or under the control of the Recipient; and (c) determine the reasonable costs for the Recipient to wind down the Project, and do the following: (i) permit the Recipient to offset such costs against the amount the Recipient owes pursuant to section A11.2(b); (ii) subject to section A4.1(a), provide Funds to the Recipient to cover such costs. A12.0 EVENT OF DEFAULT, CORRECTIVE ACTION, AND TERMINATION FOR DEFAULT Page 14 Transfer Payment Agreement A12.1 Events of Default. Each of the following events will constitute an Event of Default: (a) in the opinion of the Province, the Recipient breaches any representation, warranty, covenant, or other term of the Agreement, including failing to do any of the following in accordance with the terms and conditions of the Agreement: (i) carry out the Project; (ii) use or spend Funds; or (iii) provide, in accordance with section A7.2, Reports or such other reports as the Province may have requested pursuant to section A7.2(a)(ii); (b) the Recipient’s operations, its financial condition, its organizational structure or its control changes such that it no longer meets one or more of the eligibility requirements of the program under which the Province provides the Funds; (c) the Recipient makes an assignment, proposal, compromise, or arrangement for the benefit of creditors, or a creditor makes an application for an order adjudging the Recipient bankrupt, or applies for the appointment of a receiver; (d) the Recipient ceases to operate. A12.2 Consequences of Events of Default and Corrective Action. If an Event of Default occurs, the Province may, at any time, take one or more of the following actions: (a) initiate any action the Province considers necessary in order to facilitate the successful continuation or completion of the Project; (b) provide the Recipient with an opportunity to remedy the Event of Default; (c) suspend the payment of Funds for such period as the Province determines appropriate; (d) reduce the amount of the Funds; (e) cancel further instalments of Funds; (f) demand from the Recipient the payment of any Funds remaining in the Page 15 Transfer Payment Agreement possession or under the control of the Recipient; (g) demand from the Recipient the payment of an amount equal to any Funds the Recipient used, but did not use in accordance with the Agreement; (h) demand from the Recipient the payment of an amount equal to any Funds the Province provided to the Recipient; (i) demand from the Recipient the payment of an amount equal to the costs the Province incurred or incurs to enforce its rights under the Agreement, including the costs of any Records Review and the costs it incurs to collect any amounts the Recipient owes to the Province; and (j) upon giving Notice to the Recipient, terminate the Agreement at any time, including immediately, without liability, penalty or costs to the Province. A12.3 Opportunity to Remedy. If, pursuant to section A12.2(b), the Province provides the Recipient with an opportunity to remedy the Event of Default, the Province will give Notice to the Recipient of: (a) the particulars of the Event of Default; and (b) the Notice Period. A12.4 Recipient not Remedying. If the Province provides the Recipient with an opportunity to remedy the Event of Default pursuant to section A12.2(b), and: (a) the Recipient does not remedy the Event of Default within the Notice Period; (b) it becomes apparent to the Province that the Recipient cannot completely remedy the Event of Default within the Notice Period; or (c) the Recipient is not proceeding to remedy the Event of Default in a way that is satisfactory to the Province, the Province may extend the Notice Period, or initiate any one or more of the actions provided for in sections A12.2(a), (c), (d), (e), (f), (g), (h), (i) and (j). A12.5 When Termination Effective. Termination under Article A12.0 will take effect as provided for in the Notice. A13.0 FUNDS AT THE END OF A FUNDING YEAR A13.1 Funds at the End of a Funding Year. Without limiting any rights of the Province under Article A12.0, if, by the end of a Funding Year, the Recipient has not spent all of the Funds allocated for that Funding Year as provided for in Page 16 Transfer Payment Agreement the Budget, the Province may take one or both of the following actions: (a) demand from the Recipient payment of the unspent Funds; (b) adjust the amount of any further instalments of Funds accordingly. A14.0 FUNDS UPON EXPIRY A14.1 Funds Upon Expiry. Upon expiry of the Agreement, the Recipient will pay to the Province any Funds remaining in its possession, under its control, or both. A15.0 DEBT DUE AND PAYMENT A15.1 Payment of Overpayment. If at any time the Province provides Funds in excess of the amount to which the Recipient is entitled under the Agreement, the Province may: (a) deduct an amount equal to the excess Funds from any further instalments of Funds; or (b) demand that the Recipient pay to the Province an amount equal to the excess Funds. A15.2 Debt Due. If, pursuant to the Agreement: (a) the Province demands from the Recipient the payment of any Funds, an amount equal to any Funds or any other amounts owing under the Agreement; or (b) the Recipient owes to the Province any Funds, an amount equal to any Funds or any other amounts owing under the Agreement, whether or not the Province has demanded their payment, such amounts will be deemed to be debts due and owing to the Province by the Recipient, and the Recipient will pay the amounts to the Province immediately, unless the Province directs otherwise. A15.3 Interest Rate. The Province may charge the Recipient interest on any money owing to the Province by the Recipient under the Agreement at the then current interest rate charged by the Province of Ontario on accounts receivable. A15.4 Payment of Money to Province. The Recipient will pay any money owing to the Province by cheque payable to the “Ontario Minister of Finance” and delivered to the Province at the address set out in Schedule “B". Page 17 Transfer Payment Agreement A15.5 Fails to Pay. Without limiting the application of section 43 of the Financial Administration Act (Ontario), if the Recipient fails to pay any amount owing under the Agreement, His Majesty the King in right of Ontario may deduct any unpaid amount from any money payable to the Recipient by His Majesty the King in right of Ontario. A16.0 NOTICE A16.1 Notice in Writing and Addressed. Notice will be: (a) in writing; (b) delivered by email, postage-prepaid mail, personal delivery, courier or fax; and (c) addressed to the Province or the Recipient as set out in Schedule “B”, or as either Party later designates to the other by Notice. A16.2 Notice Given. Notice will be deemed to have been given: (a) in the case of postage-prepaid mail, five Business Days after the Notice is mailed; or (b) in the case of fax, one Business Day after the Notice is delivered; and (c) in the case of email, personal delivery or courier on the date on which the Notice is delivered. A16.3 Postal Disruption. Despite section A16.2(a), in the event of a postal disruption: (a) Notice by postage-prepaid mail will not be deemed to be given; and (b) the Party giving Notice will give Notice by email, personal delivery, courier or fax. A17.0 CONSENT BY PROVINCE AND COMPLIANCE BY RECIPIENT A17.1 Consent. When the Province provides its consent pursuant to the Agreement: (a) it will do so by Notice; (b) it may attach any terms and conditions to the consent; and (c) the Recipient may rely on the consent only if the Recipient complies with Page 18 Transfer Payment Agreement any terms and conditions the Province may have attached to the consent. A18.0 SEVERABILITY OF PROVISIONS A18.1 Invalidity or Unenforceability of Any Provision. The invalidity or unenforceability of any provision of the Agreement will not affect the validity or enforceability of any other provision of the Agreement. A19.0 WAIVER A19.1 Condonation not a waiver. Failure or delay by the either Party to exercise any of its rights, powers or remedies under the Agreement will not constitute a waiver of those rights, powers or remedies and the obligations of the Parties with respect to such rights, powers or remedies will continue in full force and effect. A19.2 Waiver. Either Party may waive any of its rights, powers or remedies under the Agreement by providing Notice to the other Party. A waiver will apply only to the specific rights, powers or remedies identified in the Notice and the Party providing the waiver may attach terms and conditions to the waiver. A20.0 INDEPENDENT PARTIES A20.1 Parties Independent. The Recipient is not an agent, joint venturer, partner or employee of the Province and the Recipient will not represent itself in any way that might be taken by a reasonable person to suggest that it is or take any actions that could establish or imply such a relationship. A21.0 ASSIGNMENT OF AGREEMENT OR FUNDS A21.1 No Assignment. The Recipient will not, without the prior written consent of the Province, assign any of its rights or obligations under the Agreement. A21.2 Agreement Binding. All rights and obligations contained in the Agreement will extend to and be binding on: (a) the Recipient’s heirs, executors, administrators, successors, and permitted assigns; and (b) the successors to His Majesty the King in right of Ontario. A22.0 GOVERNING LAW A22.1 Governing Law. The Agreement and the rights, obligations and relations of the Page 19 Transfer Payment Agreement Parties will be governed by and construed in accordance with the laws of the Province of Ontario and the applicable federal laws of Canada. Any actions or proceedings arising in connection with the Agreement will be conducted in the courts of Ontario, which will have exclusive jurisdiction over such proceedings. A23.0 FURTHER ASSURANCES A23.1 Agreement into Effect. The Recipient will: (a) provide such further assurances as the Province may request from time to time with respect to any matter to which the Agreement pertains; and (b) do or cause to be done all acts or things necessary to implement and carry into effect the terms and conditions of the Agreement to their full extent. A24.0 JOINT AND SEVERAL LIABILITY A24.1 Joint and Several Liability. Where the Recipient comprises more than one entity, each entity will be jointly and severally liable to the Province for the fulfillment of the obligations of the Recipient under the Agreement. A25.0 RIGHTS AND REMEDIES CUMULATIVE A25.1 Rights and Remedies Cumulative. The rights and remedies of the Province under the Agreement are cumulative and are in addition to, and not in substitution for, any of its rights and remedies provided by law or in equity. A26.0 FAILURE TO COMPLY WITH OTHER AGREEMENTS A26.1 Other Agreements. If the Recipient: (a) has failed to comply with any term, condition, or obligation under any other agreement with His Majesty the King in right of Ontario or one of His agencies (a “Failure”); (b) has been provided with notice of such Failure in accordance with the requirements of such other agreement; (c) has, if applicable, failed to rectify such Failure in accordance with the requirements of such other agreement; and (d) such Failure is continuing, the Province may suspend the payment of Funds for such period as the Province determines appropriate. Page 20 Transfer Payment Agreement A27.0 SURVIVAL A27.1 Survival. The following Articles and sections, and all applicable cross-referenced Articles, sections and schedules, will continue in full force and effect for a period of seven years from the date of expiry or termination of the Agreement: Article 1.0, Article 2.0, Article A1.0 and any other applicable definitions, section A2.1(a), sections A4.4, A4.5, A4.6, section A5.2, section A7.1, section A7.2 (to the extent that the Recipient has not provided the Reports or other reports as the Province may have requested and to the satisfaction of the Province), sections A7.3, A7.4, A7.5, A7.6, A7.7, A.8, Article A8.0, Article A9.0, Article A10.0, section A11.2, sections A12.1, sections A12.2(d), (e), (f), (g), (h), (i), and (j), Article A13.0, Article A14.0, Article A15.0, Article A16.0, Article A18.0, section A21.2, Article A22.0, Article A24.0, Article A25.0, and Article A27.0. -- END OF GENERAL TERMS AND CONDITIONS -- Page 21 Transfer Payment Agreement SCHEDULE “B” PROJECT SPECIFIC INFORMATION AND ADDITIONAL PROVISIONS Maximum Funds $35,145 Expiry Date March 31, 2026 Amount for the purposes of section A5.2 (Disposal) of Schedule “A” $ 5,000 Insurance $ 2,000,000 Contact information for the purposes of Notice to the Province Name: Program Development & Analytics Unit, Office of the Fire Marshal, Public Safety Division Ministry of the Solicitor General Attention: Katrina Nedeljkovich, Operations Manager Address: 2284 Nursery Road, Midhurst, ON L0L 1N0 Fax: (705) 305-4595 Email: Katrina.nedeljkovich@Ontario.ca / OFMGrants@ontario.ca Contact information for the purposes of Notice to the Recipient Name: Harry Baranik Position: Fire Chief Address: , , , Phone: 519-866-5521X255 Email: hbaranik@bayham.on.ca Contact information for the senior financial person in the Recipient organization (e.g., CFO, CAO) – to respond as required to requests from the Province related to the Agreement Name: Thomas Thayer Position: Chief Administrative Officer Address: , , , Phone: 519-866-5521X225 Email: cao@bayham.on.ca Additional Provisions: Page 22 Transfer Payment Agreement None Page 23 Transfer Payment Agreement SCHEDULE “C” PROJECT The Ministry of the Solicitor General, Office of the Fire Marshal received Treasury Board (TB) approval to support the municipal fire service in acquiring critical equipment and other needs (health and safety, minor infrastructure and specialized tools) to improve and enhance the level of fire protection service being provided. These approved funds are provided through what is known as the Fire Protection Grant. Year two of the Fire Protection Grant focuses on firefighter health and safety (specifically, cancer prevention measures) minor infrastructure updates and support for Lithium-Ion Incident Responses. These themes were chosen based on feedback from fire stakeholders across Ontario about the challenges and risks firefighters face in performing their duties. The Ministry has identified five categories of eligibility: • Cancer Prevention – Equipment and Supplies (such as exhaust extraction systems in the fire station or washing machines for firefighting gear to remove contaminants, etc.) • Cancer Prevention - Personal Protective Equipment (such as facepieces, balaclavas, etc.) • Cancer Prevention – Minor Infrastructure (such as showers in the fire station, etc.) • Technology – Minor Infrastructure (such as bringing internet to fire stations that do not currently have access to improve connectivity and training opportunities, etc.) • Lithium-Ion Incident Response – Equipment and Supplies (such as extinguishing agents, fire decontamination systems and safety solutions) The grant application window opened August 13, 2025 and closed September 30, 2025. THE CORPORATION OF THE MUNICIPALITY OF BAYHAM is approved for $35,145 Funding to support the purchase of Purchase of 3 portable air filtration systems and 40 fire fighting hoods.. Page 24 Transfer Payment Agreement SCHEDULE “D” BUDGET Funding will be provided to THE CORPORATION OF THE MUNICIPALITY OF BAYHAM upon execution of this Agreement. Funding will be provided to THE CORPORATION OF THE MUNICIPALITY OF BAYHAM explicitly for the purchase of one, or a combination of, the items prescribed within the listed summary in Schedule “C”. Copies of all invoices and receipts for said items will be provided to the Office of The Fire Marshal as part of the Report Back described in Schedule “F” that forms part of this agreement. The funds must be committed to the project as approved by March 31st, 2026. Subsequently, the funds must be spent by the municipality by the end of Provincial Financial Quarter Three (Q3) (December 31, 2026). Page 25 Transfer Payment Agreement SCHEDULE “E” PAYMENT PLAN E.1 MAXIMUM FUNDS The Maximum Funds to be provided by the Province to the Recipient under this Agreement is set out in Schedule “B”. E.2 PAYMENT SCHEDULE The Funds will be provided to the Recipient for the Funding Year subject to the Agreement having been signed by the Province. Page 26 Transfer Payment Agreement SCHEDULE “F” REPORTS As a condition of the Fire Protection Grant, a report back to the Office of the Fire Marshal must be received, through the Transfer Payment Ontario or as otherwise directed, by the end of Provincial Financial Quarter, Q3, to outline how the grant funding was utilized, and the benefit(s) seen at the department level. As part of the report back, the municipality is required to provide copies of all invoices and receipts for the items purchased for the approved project(s) as noted in Schedule “C”. THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO. 2026-004 A BY-LAW TO AUTHORIZE THE EXECUTION OF A TRANSFER PAYMENT AGREEMENT BETWEEN HIS MAJESTY THE KING IN RIGHT OF ONTARIO AND THE CORPORATION OF THE MUNICIPALITY OF BAYHAM FOR THE POTHOLE PREVENTION AND REPAIR PROGRAM WHEREAS section 8(1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, grants a broad scope of powers to municipalities to govern their affairs as they consider appropriate; AND WHEREAS the Municipality of Bayham was notified that its application to the Pothole Prevention and Repair Program was successful in the amount of $38,000; AND WHEREAS Council of the Municipality of Bayham is desirous of entering into a Transfer Payment Agreement for receipt of the funds; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: 1. THAT the Mayor and Chief Administrative Officer be and are hereby authorized to execute the Transfer Payment Agreement attached hereto as Schedule “A” and forming part of this by-law; 2. AND THAT this by-law shall come into full force and effect upon final passing. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 5th DAY OF FEBRUARY, 2026. ___________________________ _____________________________ MAYOR CLERK ONTARIO TRANSFER PAYMENT AGREEMENT POTHOLE PREVENTION AND REPAIR PROGRAM THE AGREEMENT is effective as of the 30th day of January 2026. BETWEEN: His Majesty the King in right of Ontario as represented by Hon. Minister of Transportation (the “Province”) - and - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM (the “Recipient”) WHEREAS the Recipient has requested funding from the Province for the Project (as defined in section A.1.2) and the Province has agreed to provide such funding to the Recipient subject to certain terms and conditions; AND WHEREAS the Agreement sets out the terms and conditions upon which the Province has agreed to provide funds, up to the Maximum Funds (as defined in section A1.2) to the Recipient for the purpose of carrying out the Project, and upon which the Recipient has agreed to carry out the Project. NOW THEREFORE in consideration of the mutual covenants and agreements contained in the Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are expressly acknowledged, the Province and the Recipient agree as follows: 1.0 ENTIRE AGREEMENT 1.1 Schedules to the Agreement. The following schedules form part of the Agreement: Schedule “A” - General Terms and Conditions Schedule “B” - Project Specific Information Schedule “C” - Project Description and Timelines Schedule “D” - Eligible Expenditures and Ineligible Expenditures Schedule “E” - Payment Plan Schedule “F” - Reporting and Compliance Audit Sub-Schedule F1 - Project Reports 1.2 Entire Agreement. The Agreement constitutes the entire agreement between the Parties with respect to its subject matter and contained in the Agreement and supersedes all prior oral or written representations and agreements. 2.0 CONFLICT OR INCONSISTENCY 2.1 Conflict or Inconsistency. In the event of a conflict or inconsistency between the Additional Provisions, identified in Schedule “B” and the provisions in Schedule “A”, the following rules will apply: (a) the Parties will interpret any Additional Provisions in so far as possible, in a way that preserves the intention of the Parties as expressed in Schedule “A”; and (b) where it is not possible to interpret the Additional Provisions in a way that is consistent with the provisions in Schedule “A”, the Additional Provisions will prevail over the provisions in Schedule “A” to the extent of the inconsistency. 3.0 COUNTERPARTS 3.1 One and the Same Agreement. The Agreement may be executed in any number of counterparts, with the same effect as if the Parties had signed the same document, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 4.0 AMENDING THE AGREEMENT 4.1 Amending the Agreement. The Agreement may only be amended by a written agreement duly executed by the Parties. 5.0 ACKNOWLEDGEMENT 5.1 Acknowledgement. The Recipient acknowledges that: (a) by receiving Funds it may become subject to legislation applicable to organizations that receive funding from the Government of Ontario, including the Broader Public Sector Accountability Act, 2010 (Ontario), the Public Sector Salary Disclosure Act, 1996 (Ontario), and the Auditor General Act (Ontario); (b) His Majesty the King in right of Ontario has issued expenses, perquisites, and procurement directives and guidelines pursuant to the Broader Public Sector Accountability Act, 2010 (Ontario); (c) the Funds are: (i) to assist the Recipient to carry out the Project and not to provide goods or services to the Province; (ii) funding for the purposes of the Public Sector Salary Disclosure Act, 1996 (Ontario); (d) the Province is not responsible for carrying out the Project; (e) the Province is bound by the Freedom of Information and Protection of Privacy Act (Ontario) and that any information provided to the Province in connection with the Project or otherwise in connection with the Agreement may be subject to disclosure in accordance with that Act; and (f) the Province is bound by the Financial Administration Act (Ontario) (“FAA”) and, pursuant to subsection 11.3(2) of the FAA, payment by the Province of Funds under the Agreement will be subject to: (i) an appropriation, as that term is defined in subsection 1(1) of the FAA, to which that payment can be charged being available in the Funding Year in which the payment becomes due; or (ii) the payment having been charged to an appropriation for a previous fiscal year. - SIGNATURE PAGE FOLLOWS - IN WITNESS WHEREOF the Parties have executed the Agreement on the dates set out below. HIS MAJESTY THE KING IN RIGHT OF ONTARIO as represented by the Minister of Transportation Date Name: Prabmeet Sarkaria Title: Minister THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Date Name: Lorne James Title: Treasurer I have authority to bind the Recipient Date Name: Title: I have authority to bind the Recipient Bayham and Ontario Transfer Payment Agreement 2 SCHEDULE “A” GENERAL TERMS AND CONDITIONS A1.0 INTERPRETATION AND DEFINITIONS A1.1 Interpretation. For the purposes of interpretation: (a) words in the singular include the plural and vice-versa; (b) words in one gender include all genders; (c) the headings do not form part of the Agreement; they are for reference only and will not affect the interpretation of the Agreement; (d) any reference to dollars or currency will be in Canadian dollars and currency; and (e) “include”, “includes” and “including” denote that the subsequent list is not exhaustive. (f) all accounting terms not otherwise defined in the Agreement have their ordinary meanings. A1.2 Definitions. In the Agreement, the following terms will have the following meanings: “Additional Provisions” means the terms and conditions set out in Schedule “B”. “Agreement” means this agreement entered into between the Province and the Recipient, all of the schedules listed in section 1.1, and any amending agreement entered into pursuant to section 4.1. “Business Day” means any working day, Monday to Friday inclusive, excluding statutory and other holidays, namely: New Year’s Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; Boxing Day and any other day on which the Province has elected to be closed for business. “Effective Date” means the date set out at the top of the Agreement. “Eligible Expenditures” means the costs of the Project that are eligible for funding by the Province under the Agreement and that are further described in Scheduled D. “Event of Default” has the meaning ascribed to it in section A12.1. Bayham and Ontario Transfer Payment Agreement 3 “Expiry Date” means the expiry date set out in Schedule “B”. “Final Report” means the report described in Schedule “F”. “Funding Year” means in the case, the period commencing on the Effective Date and ending on the following March 31. “Funds” means the money the Province provides to the Recipient pursuant to the Agreement. “Indemnified Parties” means His Majesty the King in right of Ontario, and includes His ministers, agents, appointees, and employees. “Loss” means any cause of action, liability, loss, cost, damage, or expense (including legal, expert and consultant fees) that anyone incurs or sustains as a result of or in connection with the Project or any other part of the Agreement. “Materials” means material, machinery, equipment and fixtures forming part of the Project. “Maximum Funds” means the maximum set out in Schedule “B”. “Notice” means any communication given or required to be given pursuant to the Agreement. “Notice Period” means the period of time within which the Recipient is required to remedy an Event of Default pursuant to section A12.3(b), and includes any such period or periods of time by which the Province extends that time pursuant to section A12.4. “Parties” means the Province and the Recipient. “Party” means either the Province or the Recipient. “Proceeding” means any action, claim, demand, lawsuit, or other proceeding that anyone makes, brings or prosecutes as a result of or in connection with the Project or with any other part of the Agreement. “Project” means the undertaking described in Schedule “C”. “Records Review” means any assessment the Province conducts pursuant to section A7.4. “Reports” means the reports described in Schedule “F” and Sub-schedule “F1. “Requirements of Law” means all applicable requirements, laws, statutes, Bayham and Ontario Transfer Payment Agreement 4 codes, acts, ordinances, approvals, orders, decrees, injunctions, by laws, rules, regulations, official plans, permits, licenses, authorizations, directions and agreements with all authorities. “Substantial Performance” means when the Work or a substantial part thereof has passed inspection and testing and is ready for use or is being used for intended purposes. A1.3 References This Agreement refers to the following standards, specifications or publications: Ontario Provincial Standard Specifications, Construction OPSS PROV 127 OPSS MUNI 301 OPSS MUNI 303 OPSS MUNI 304 OPSS MUNI 310 OPSS MUNI 336 OPSS MUNI 337 OPSS MUNI 341 OPSS MUNI 369 A2.0 REPRESENTATIONS, WARRANTIES, AND COVENANTS A2.1 General. The Recipient represents, warrants, and covenants that: (a) it is, and will continue to be, a validly existing legal entity with full power to fulfill its obligations under the Agreement; (b) it has, and will continue to have, the experience and expertise necessary to carry out the Project; (c) it is in compliance with, and will continue to comply with, all federal and provincial laws and regulations, all municipal by-laws, and any other orders, rules, and by-laws related to any aspect of the Project, the Funds, or both; and (d) that, unless otherwise provided for in the Agreement, any information the Recipient provided to the Province in support of its request for funds (including information relating to any eligibility requirements) was true and complete at the time the Recipient provided it and will continue to be true and complete. A2.2 Execution of Agreement. The Recipient represents and warrants that it has: Bayham and Ontario Transfer Payment Agreement 5 (a) the full power and capacity to enter into the Agreement; and (b) taken all necessary actions to authorize the execution of the Agreement. A2.3 Governance. The Recipient represents, warrants, and covenants that it has, will maintain in writing, and will follow: (a) a code of conduct and ethical responsibilities for all persons at all levels of the Recipient’s organization; (b) procedures to enable the Recipient’s ongoing effective functioning; (c) decision-making mechanisms for the Recipient; (d) procedures to enable the Recipient to manage Funds prudently and effectively; (e) procedures to enable the Recipient to complete the Project successfully; (f) procedures to enable the Recipient to identify risks to the completion of the Project and strategies to address the identified risks, all in a timely manner; (g) procedures to enable the preparation and submission of all Reports required pursuant to Article A7.0; and (h) procedures to enable the Recipient to address such other matters as the Recipient considers necessary to enable the Recipient to carry out its obligations under the Agreement. A2.4 Supporting Proof. Upon the request of the Province, the Recipient will provide the Province with proof of the matters referred to in Article A2.0. A3.0 TERM OF THE AGREEMENT A3.1 Term. The term of the Agreement will commence on the Effective Date and will expire on the Expiry Date unless terminated earlier pursuant to Article A11.0 or Article A12.0. A4.0 FUNDS AND CARRYING OUT THE PROJECT A4.1 Funds Provided. The Province will: (a) provide the Recipient with $38,000 in Funds for the purpose of carrying out the Project; (b) provide the Funds to the Recipient in accordance with the payment plan attached to the Agreement as Schedule “E” ; and Bayham and Ontario Transfer Payment Agreement 6 (c) deposit the Funds into an account the Recipient designates provided that the account: (i) resides at a Canadian financial institution; and (ii) is in the name of the Recipient. A4.2 Limitation on Payment of Funds. Despite section A4.1: (a) the Province is not obligated to provide any Funds to the Recipient until the Recipient provides the certificates of insurance or other proof required pursuant to section A10.2 ; (b) the Province may adjust the amount of Funds it provides to the Recipient for any Funding Year based upon the Province’s assessment of the information the Recipient provides to the Province pursuant to section A7.2. A4.3 Use of Funds and Carry Out the Project. The Recipient will do all of the following: (a) carry out the Project in accordance with the Agreement; (b) use the Funds only for the purpose of carrying out the Project; (c) spend the Funds only in accordance with the maximum funds set out in Schedule B.”; (d) not use the Funds to cover any cost that has been or will be funded or reimbursed by any other funding program or source. . A4.4 Interest-Bearing Account. If the Province provides Funds before the Recipient’s immediate need for the Funds, the Recipient will place the Funds in an interest-bearing account in the name of the Recipient at a Canadian financial institution. A4.5 Interest. If the Recipient earns any interest on the Funds, the Province may do either or both of the following: (a) deduct an amount equal to the interest from any further instalments of Funds; (b) demand from the Recipient the payment of an amount equal to the interest. Bayham and Ontario Transfer Payment Agreement 7 A4.6 Rebates, Credits, and Refunds. The Province will calculate Funds based on the actual costs to the Recipient to carry out the Project, less any costs (including taxes) for which the Recipient has received, will receive, or is eligible to receive, a rebate, credit, or refund. A5.0 RECIPIENT’S ACQUISITION OF GOODS OR SERVICES, AND DISPOSAL OF ASSETS A5.1 Acquisition. If the Recipient acquires goods, services, or both with the Funds, it will do so through a process that promotes the best value for money. A5.2 Disposal. The Recipient will not, without the Province’s prior consent, sell, lease, or otherwise dispose off any asset purchased or created with the Funds or for which the Funds were provided. A6.0 CONFLICT OF INTEREST A6.1 Conflict of Interest Includes. For the purposes of Article A6.0, a conflict of interest includes any circumstances where: (a) the Recipient; or (b) any person who has the capacity to influence the Recipient’s decisions, has outside commitments, relationships, or financial interests that could, or could be seen by a reasonable person to, interfere with the Recipient’s objective, unbiased, and impartial judgment relating to the Project, the use of the Funds, or both. A6.2 No Conflict of Interest. The Recipient will carry out the Project and use the Funds without an actual, potential, or perceived conflict of interest unless: (a) the Recipient: (i) provides Notice to the Province disclosing the details of the actual, potential, or perceived conflict of interest; and (ii) requests the consent of the Province to carry out the Project with an actual, potential, or perceived conflict of interest; (b) the Province provides its consent to the Recipient carrying out the Project with an actual, potential, or perceived conflict of interest; and (c) the Recipient complies with any terms and conditions the Province may prescribe in its consent. Bayham and Ontario Transfer Payment Agreement 8 A7.0 REPORTS, ACCOUNTING, AND REVIEW A7.1 Province Includes. For the purposes of sections A7.4, A7.5 and A7.6, “Province” includes any auditor or representative the Province may identify. A7.2 Preparation and Submission. The Recipient will: (a) submit to the Province at the address set out in Schedule “B”: (i) all Reports in accordance with the timelines and content requirements set out in Schedule “F”; (ii) any other reports in accordance with any timelines and content requirements the Province may specify from time to time; (b) ensure that all Reports and other reports are: (i) completed to the satisfaction of the Province; and (i) signed by an authorized signing officer of the Recipient. A7.3 Record Maintenance. The Recipient will keep and maintain for a period of seven years from their creation: (a) all financial records (including invoices and evidence of payment) relating to the Funds or otherwise to the Project in a manner consistent with either international financial reporting standards or generally accepted accounting principles or any comparable accounting standards that apply to the Recipient; and (b) all non-financial records and documents relating to the Funds or otherwise to the Project. A7.4 Records Review. The Province may, at its own expense, upon twenty-four hours’ Notice to the Recipient and during normal business hours enter upon the Recipient’s premises to conduct an audit or investigation of the Recipient regarding the Recipient’s compliance with the Agreement, including assessing any of the following: (a) the truth of any of the Recipient’s representations and warranties; (b) the progress of the Project; (c) the Recipient’s allocation and expenditure of the Funds. Bayham and Ontario Transfer Payment Agreement 9 A7.5 Inspection and Removal. For the purposes of any Records Review, the Province may take one or both of the following actions: (a) inspect and copy any records and documents referred to in section A7.3; (b) remove any copies the Province makes pursuant to section A7.5(a). A7.6 Cooperation. To assist the Province in respect of its rights provided for in section A7.5, the Recipient will cooperate with the Province by: (a) ensuring that the Province has access to the records and documents wherever they are located; (b) assisting the Province to copy records and documents; (c) providing to the Province, in the form the Province specifies, any information the Province identifies; and (d) carrying out any other activities the Province requests. A7.7 No Control of Records. No provision of the Agreement will be construed to give the Province any control whatsoever over any of the Recipient’s records. A7.8 Auditor General. The Province’s rights under Article A7.0 are in addition to any rights provided to the Auditor General pursuant to section 9.1 of the Auditor General Act (Ontario). A8.0 COMMUNICATIONS REQUIREMENTS A8.1 Acknowledge Support. Unless the Province directs the Recipient to do otherwise, the Recipient will in each of its Project-related publications, whether written, oral, or visual: (a) acknowledge the support of the Province for the Project; (b) ensure that any acknowledgement is in a form and manner as the Province directs; and (c) indicate that the views expressed in the publication are the views of the Recipient and do not necessarily reflect those of the Province. A9.0 INDEMNITY A9.1 Indemnify. The Recipient will indemnify and hold harmless the Indemnified Parties from and against any Loss and any Proceeding, unless solely caused by the gross negligence or wilful misconduct of the Indemnified Parties. Bayham and Ontario Transfer Payment Agreement 10 A10.0 INSURANCE A10.1 Insurance. The Recipient represents, warrants, and covenants that it has, and will maintain, at its own cost and expense, with insurers having a secure A.M. Best rating of B+ or greater, or the equivalent, all the necessary and appropriate insurance that a prudent person carrying out a project similar to the Project would maintain, including commercial general liability insurance on an occurrence basis for third party bodily injury, personal injury, and property damage, to an inclusive limit of not less than the amount set out in Schedule “B” per occurrence, which commercial general liability insurance policy will include the following: (a) the Indemnified Parties as additional insureds with respect to liability arising in the course of performance of the Recipient’s obligations under, or otherwise in connection with, the Agreement; (b) a cross-liability clause; (c) contractual liability coverage; and (d) at least 30 days’ written notice of cancellation. A10.2 Proof of Insurance. The Recipient will: (a) provide to the Province, either: (i) certificates of insurance that confirm the insurance coverage required by section A10.1; or (ii) other proof that confirms the insurance coverage required by section A10.1; and (b) in the event of a Proceeding, and upon the Province’s request, the Recipient will provide to the Province a copy of any of the Recipient’s insurance policies that relate to the Project or otherwise to the Agreement, or both. A10.3 Subcontractor insurance. The Recipient will ensure that any subcontractors retained to perform any part or parts of the Project will obtain and maintain all the necessary and appropriate insurance that a prudent person in the business of the subcontractor would obtain and maintain. A11.0 TERMINATION ON NOTICE A11.1 Termination on Notice. The Province may terminate the Agreement at any time without liability, penalty, or costs upon giving 30 days’ Notice to the Bayham and Ontario Transfer Payment Agreement 11 Recipient. A11.2 Consequences of Termination on Notice by the Province. If the Province terminates the Agreement pursuant to section A11.1, the Province may take one or more of the following actions: (a) cancel further instalments of Funds; (b) demand from the Recipient the payment of any Funds remaining in the possession or under the control of the Recipient; and (c) determine the reasonable costs for the Recipient to wind down the Project, and do either or both of the following: (i) permit the Recipient to offset such costs against the amount the Recipient owes pursuant to section A11.2(b); and (ii) subject to section A4.1(a), provide Funds to the Recipient to cover such costs. A12.0 EVENT OF DEFAULT, CORRECTIVE ACTION, AND TERMINATION FOR DEFAULT A12.1 Events of Default. Each of the following events will constitute an Event of Default: (a) in the opinion of the Province, the Recipient breaches any representation, warranty, covenant, or other term of the Agreement, including failing to do any of the following in accordance with the terms and conditions of the Agreement: (i) carry out the Project; (ii) use or spend Funds; or (iii) provide, in accordance with section A7.2, Reports or such other reports as the Province may have requested pursuant to section A7.2(a)(ii); (b) the Recipient’s operations, its financial condition, its organizational structure or its control changes such that it no longer meets one or more of the eligibility requirements of the program under which the Province provides the Funds; (c) the Recipient makes an assignment, proposal, compromise, or arrangement for the benefit of creditors, or a creditor makes an application for an order adjudging the Recipient bankrupt, or applies for the appointment of a receiver; Bayham and Ontario Transfer Payment Agreement 12 (d) the Recipient ceases to operate. A12.2 Consequences of Events of Default and Corrective Action. If an Event of Default occurs, the Province may, at any time, take one or more of the following actions: (a) initiate any action the Province considers necessary in order to facilitate the successful continuation or completion of the Project; (b) provide the Recipient with an opportunity to remedy the Event of Default; (c) suspend the payment of Funds for such period as the Province determines appropriate; (d) reduce the amount of the Funds; (e) cancel further instalments of Funds; (f) demand from the Recipient the payment of any Funds remaining in the possession or under the control of the Recipient; (g) demand from the Recipient the payment of an amount equal to any Funds the Recipient used, but did not use in accordance with the Agreement; (h) demand from the Recipient the payment of an amount equal to any Funds the Province provided to the Recipient; (i) demand from the Recipient the payment of an amount equal to the costs the Province incurred or incurs to enforce its rights under the Agreement, including the costs of any Records Review and the costs it incurs to collect any amounts the Recipient owes to the Province; and (j) upon giving Notice to the Recipient, terminate the Agreement at any time, including immediately, without liability, penalty or costs to the Province. A12.3 Opportunity to Remedy. If, pursuant to section A12.2(b), the Province provides the Recipient with an opportunity to remedy the Event of Default, the Province will give Notice to the Recipient of: (a) the particulars of the Event of Default; and (b) the Notice Period. A12.4 Recipient not Remedying. If the Province provides the Recipient with an Bayham and Ontario Transfer Payment Agreement 13 opportunity to remedy the Event of Default pursuant to section A12.2(b), and: (a) the Recipient does not remedy the Event of Default within the Notice Period; (b) it becomes apparent to the Province that the Recipient cannot completely remedy the Event of Default within the Notice Period; or (c) the Recipient is not proceeding to remedy the Event of Default in a way that is satisfactory to the Province, the Province may extend the Notice Period or initiate any one or more of the actions provided for in sections A12.2(a), (c), (d), (e), (f), (g), (h), (i) and (j). A12.5 When Termination Effective. Termination under Article A12.0 will take effect as provided for in the Notice. A13.0 FUNDS AT THE END OF A FUNDING YEAR A13.1 Funds at the End of a Funding Year. Without limiting any rights of the Province under Article A12.0, if, by the end of a Funding Year, the Recipient has not spent all of the Funds allocated for that Funding Year as provided for in the maximum funds set out in Schedule B.” , the Province may take one or both of the following actions: (a) demand from the Recipient payment of the unspent Funds; (b) adjust the amount of any further instalments of Funds accordingly. A14.0 FUNDS UPON EXPIRY A14.1 Funds Upon Expiry. Upon expiry of the Agreement, the Recipient will pay to the Province any Funds remaining in its possession, under its control, or both. A15.0 DEBT DUE AND PAYMENT A15.1 Payment of Overpayment. If at any time the Province provides Funds in excess of the amount to which the Recipient is entitled under the Agreement, the Province may: (a) deduct an amount equal to the excess Funds from any further instalments of Funds; or (b) demand that the Recipient pay to the Province an amount equal to the excess Funds. A15.2 Debt Due. If, pursuant to the Agreement: Bayham and Ontario Transfer Payment Agreement 14 (a) the Province demands from the Recipient the payment of any Funds, an amount equal to any Funds or any other amounts owing under the Agreement; or (b) the Recipient owes to the Province any Funds, an amount equal to any Funds or any other amounts owing under the Agreement, whether or not the Province has demanded their payment, such amounts will be deemed to be debts due and owing to the Province by the Recipient, and the Recipient will pay the amounts to the Province immediately, unless the Province directs otherwise. A15.3 Interest Rate. The Province may charge the Recipient interest on any money owing to the Province by the Recipient under the Agreement at the then current interest rate charged by the Province of Ontario on accounts receivable. A15.4 Payment of Money to Province. The Recipient will pay any money owing to the Province by cheque payable to the “Ontario Minister of Finance” and delivered to the Province at the address set out in Schedule “B". A15.5 Fails to Pay. Without limiting the application of section 43 of the Financial Administration Act (Ontario), if the Recipient fails to pay any amount owing under the Agreement, His Majesty the King in right of Ontario may deduct any unpaid amount from any money payable to the Recipient by His Majesty the King in right of Ontario. A16.0 NOTICE A16.1 Notice in Writing and Addressed. Notice will be: (a) in writing; (b) delivered by email, postage-prepaid mail, personal delivery, or courier; and (c) addressed to the Province or the Recipient as set out in Schedule “B”, or as either Party later designates to the other by Notice. A16.2 Notice Given. Notice will be deemed to have been given: (a) in the case of postage-prepaid mail, five Business Days after the Notice is mailed; or (b) in the case of email, personal delivery or courier on the date on which the Notice is delivered. Bayham and Ontario Transfer Payment Agreement 15 A16.3 Postal Disruption. Despite section A16.2(a), in the event of a postal disruption: (a) Notice by postage-prepaid mail will not be deemed to be given; and (b) the Party giving Notice will give Notice by email, personal delivery, or courier. A17.0 CONSENT BY PROVINCE AND COMPLIANCE BY RECIPIENT A17.1 Consent. When the Province provides its consent pursuant to the Agreement: (a) it will do so by Notice; (b) it may attach any terms and conditions to the consent; and (c) the Recipient may rely on the consent only if the Recipient complies with any terms and conditions the Province may have attached to the consent. A18.0 SEVERABILITY OF PROVISIONS A18.1 Invalidity or Unenforceability of Any Provision. The invalidity or unenforceability of any provision of the Agreement will not affect the validity or enforceability of any other provision of the Agreement. A19.0 WAIVER A19.1 Condonation not a waiver. Failure or delay by the either Party to exercise any of its rights, powers or remedies under the Agreement will not constitute a waiver of those rights, powers or remedies and the obligations of the Parties with respect to such rights, powers or remedies will continue in full force and effect. A19.2 Waiver. Either Party may waive any of its rights, powers or remedies under the Agreement by providing Notice to the other Party. A waiver will apply only to the specific rights, powers or remedies identified in the Notice and the Party providing the waiver may attach terms and conditions to the waiver. A20.0 INDEPENDENT PARTIES A20.1 Parties Independent. The Recipient is not an agent, joint venturer, partner, or employee of the Province, and the Recipient will not represent itself in any way that might be taken by a reasonable person to suggest that it is or take any actions that could establish or imply such a relationship. Bayham and Ontario Transfer Payment Agreement 16 A21.0 ASSIGNMENT OF AGREEMENT OR FUNDS A21.1 No Assignment. The Recipient will not, without the prior written consent of the Province, assign any of its rights or obligations under the Agreement. A21.2 Agreement Binding. All rights and obligations contained in the Agreement will extend to and be binding on: (a) the Recipient’s heirs, executors, administrators, successors, and permitted assigns; and (b) the successors to His Majesty the King in right of Ontario. A22.0 GOVERNING LAW A22.1 Governing Law. The Agreement and the rights, obligations, and relations of the Parties will be governed by and construed in accordance with the laws of the Province of Ontario and the applicable federal laws of Canada. Any actions or proceedings arising in connection with the Agreement will be conducted in the courts of Ontario, which will have exclusive jurisdiction over such proceedings. A23.0 FURTHER ASSURANCES A23.1 Agreement into Effect. The Recipient will: (a) provide such further assurances as the Province may request from time to time with respect to any matter to which the Agreement pertains; and (b) do or cause to be done all acts or things necessary to implement and carry into effect the terms and conditions of the Agreement to their full extent. A24.0 JOINT AND SEVERAL LIABILITY A24.1 Joint and Several Liability. Where the Recipient comprises more than one entity, each entity will be jointly and severally liable to the Province for the fulfillment of the obligations of the Recipient under the Agreement. A25.0 RIGHTS AND REMEDIES CUMULATIVE A25.1 Rights and Remedies Cumulative. The rights and remedies of the Province under the Agreement are cumulative and are in addition to, and not in substitution for, any of its rights and remedies provided by law or in equity. Bayham and Ontario Transfer Payment Agreement 17 A26.0 FAILURE TO COMPLY WITH OTHER AGREEMENTS A26.1 Other Agreements. If the Recipient: (a) has failed to comply with any term, condition, or obligation under any other agreement with His Majesty the King in right of Ontario or one of His agencies (a “Failure”); (b) has been provided with notice of such Failure in accordance with the requirements of such other agreement; (c) has, if applicable, failed to rectify such Failure in accordance with the requirements of such other agreement; and (d) such Failure is continuing, the Province may suspend the payment of Funds for such period as the Province determines appropriate. A27.0 SURVIVAL A27.1 Survival. The following Articles and sections, and all applicable cross-referenced Articles, sections and schedules, will continue in full force and effect for a period of seven years from the date of expiry or termination of the Agreement: Article 1.0, Article 2.0, Article A1.0 and any other applicable definitions, section A2.1(a), sections A4.4, A4.5, A4.6, section A5.2, section A7.1, section A7.2 (to the extent that the Recipient has not provided the Reports or other reports as the Province may have requested and to the satisfaction of the Province), sections A7.3, A7.4, A7.5, A7.6, A7.7, A7.8, Article A8.0, Article A9.0, section A11.2, section A12.1, sections A12.2(d), (e), (f), (g), (h), (i) and (j), Article A13.0, Article A14.0, Article A15.0, Article A16.0, Article A18.0, section A21.2, Article A22.0, Article A24.0, Article A25.0 and Article A27.0. A28.0 ELECTRONIC SIGNATURE A28.1 Electronic Signature. The Province and the Recipient agree that the Agreement may be validly executed electronically, and that their respective electronic signature is the legal equivalent of a manual signature. An electronic signature of an authorized signing representative may be evidenced by (i) a manual signature, (ii) a digital signature including the name of the authorized signing representative in the respective signature line of the Agreement, (iii) an image of a manual signature, (iv) an Adobe signature, or (v) any other digital signature with the prior written consent of both Parties, placed in the respective signature line of the Agreement and the Agreement delivered by electronic means to the other Party, Bayham and Ontario Transfer Payment Agreement 18 including by email. END OF GENERAL TERMS AND CONDITIONS Bayham and Ontario Transfer Payment Agreement 19 SCHEDULE “B” PROJECT SPECIFIC INFORMATION Maximum Funds $38,000 Program Title Pothole Prevention and Repair Program Expiry Date June 30, 2026 Insurance $ 5,000,000 Contact information for the purposes of Notice to the Province Position: James Flanders, Team Lead, Special Highway Operations Initiatives Highway Operations Management Branch, Operations Division Address: 2nd Floor 301 St. Paul Street St. Catharines, Ontario L2R 7R4 Email: PPRP@ontario.ca Contact information for the purposes of Notice to the Recipient Position: Address: Fax: Email: Contact information for the senior financial person in the Recipient organization (e.g., CFO, CAO) – to respond as required to requests from the Province related to the Agreement Position: Address: Fax: Email: Additional Provisions: None Bayham and Ontario Transfer Payment Agreement 20 SCHEDULE “C” PROJECT DESCRIPTION AND TIMELINES C1.0 PROJECT DESCRIPTION C1.1 Project Details. The Project will use the pothole prevention and repair measures set out in section C1.2, C1.3 and C1.4 on road(s) under the jurisdiction of the Recipient. The Project will deploy one or a combination of the methods set out in this Schedule “C”. C1.2 Pothole Prevention Strategies (a) Rout and Seal, means routing, cleaning and sealing cracks using hot poured rubberized asphalt sealant compound as per OPSS MUNI 341. (b) Microsurfacing means applying a thin lift of polymer modified asphalt emulsion mix to distressed pavement.as per OPSS MUNI 336. (c) Slurry Seal means applying a homogeneous mixture of emulsified asphalt, fine aggregates, water, mineral filler, and, if required, additive in a cold fluid state on a prepared bituminous surface as per OPSS.MUNI 337. (d) Single Surface Treatment means a single application of bituminous binder followed by a single application of Class 1, Class 2, Class 3, Class 4, Class 5, or Class 6 aggregate as per OPSS.MUNI 304 (e) Double Chip Seal means two successive single chip seals with different aggregate gradations as per OPSS.MUNI 303.and (f) Granular In-Fill and Grading, Drainage and Stabilization of Unpaved Roadways means surfaces that are typically existing granular but may include sub grade soil surfaces as per OPSS.MUNI 301. C1.3 Pothole Repair Strategies (a) Hot Mix Asphalt (HMA) Patching of Flexible Pavement means resurfacing localized areas of distressed pavement using Hot Mix Asphalt as per OPSS MUNI 310. (b) Scarification and Grading of Unpaved Roadways means uniform loosening of the roadway surface to remove damaged areas such as raveling and potholes as per OPSS.MUNI 301. (c) Concrete – Pavement and Joint Seal Repairs means sawcutting, cleaning and sealing or resealing cracks in concrete pavement and concrete base as per OPSS MUNI 369. C1.4 Other (a) Project design works related to pothole preservation and repair works that will be completed between April 1, 2025 and March 31, 2026. Bayham and Ontario Transfer Payment Agreement 21 C2.0 PROJECT TIMELINES C2.1 Project Timelines. The Recipient will begin the Project by April 1, 2025, and will achieve Substantial Performance of the Project by March 31, 2026. Bayham and Ontario Transfer Payment Agreement 22 SCHEDULE “D” ELIGIBLE AND INELIGIBLE EXPENDITURES D1.0 ELIGIBLE EXPENDITURES D1.1 Eligible Expenditures. Subject to Article D2.0, Eligible Expenditures include the direct costs incurred and paid by the Recipient between April 1, 2025, and March 31, 2026 and that, in the opinion and at the sole discretion of the Province, are considered to have been properly and reasonably incurred and are necessary for the successful implementation of the Project, and include: (a) Purchase and delivery of materials required for the Project; (b) Project design related to preservation and repair works that will be completed between the period of April 1, 2025, and March 31, 2026; (c) Labour for contracted construction and repairs if used for Eligible Expenditures; (d) Recipient-owned equipment to be reimbursed at OPSS 127 Rates if used for Eligible Expenditures; (e) Updating Road Condition Reports if prepared by an external consultant; (f) Any other costs, as determined by the Province from time to time and at its sole discretion. D1.2 Required Documentation. Eligible Expenditures must be documented through paid invoices or original receipts, or both, satisfactory to the Province. D2.0 INELIGIBLE EXPENDITURES D2.1 Ineligible Expenditures. Without limitation, the following costs, unless they have received the prior written approval of the Province, will be considered Ineligible Expenditures: (a) Costs not associated with the Project; (b) Costs incurred before April 1, 2025, or after March 31, 2026; (c) Costs associated with feasibility studies and design work that will not be completed between April 1, 2025 and March 31, 2026; (d) Any costs related to a project that has already received funding for eligible expenses from another funding source; (e) Administrative costs; (f) Audit and financial reporting costs; (g) Any other costs, as determined by the Province from time to time and at its sole discretion. Bayham and Ontario Transfer Payment Agreement 23 SCHEDULE “E” PAYMENT PLAN Project Milestones Required Reports/ Documents Date Payment # 1 TPA Dually Executed January 30, 2026 to February 27, 2026 100% of Maximum Funds # 2 Compliance Reporting • As per F1.1 January 30, 2026 # 3 Final Reporting • As per F2.1 April 17, 2026 Bayham and Ontario Transfer Payment Agreement 24 SCHEDULE “F” REPORTING AND COMPLIANCE AUDIT F1.0 DEFINITION F1.1 Definition. In this Schedule “F”: “Generally Accepted Auditing Standards” means Canadian Generally Accepted Auditing Standards as adopted by the Chartered Professional Accountants of Canada or the Public Sector Accounting Board applicable as of the date on which such a record is kept or required to be kept in accordance with such standards. F2.0 REPORTS, DOCUMENTS AND SUBMISSION DATES F2.1 Description and Submission Dates The Recipient will submit to the Province, at the email address pprp@ontario.ca, the Reports and other documents described as requested that are further described in Sub-schedule “F1” and section A.10.2 by their respective submission dates. F3.0 COMPLIANCE AUDIT F3.1 Compliance Audit. The Province may, at its sole discretion and within timelines set out by the Province, request that the Recipient carry out a Project compliance audit in accordance with Generally Accepted Auditing Standards and delivers the corresponding compliance audit report(s) within the timelines set out by the Province. F3.2 Compliance Audit Requirements. If the Province requests a Project compliance audit pursuant to section F3.1, the Recipient will retain at the Recipient’s expense and within the timelines set out by the Province, an accredited external independent auditor(s) to carry out the audit and will deliver any compliance audit reports(s) from such audit to the province within seven Business Days of the Recipient’s receipt of the report. F3.3 Compliance Audit Objectives. The key objectives of the compliance audit(s) are to: (a) determine whether Funds were expended for the purposes intended and with due regard to the economy, efficiency and effectiveness; (b) determine compliance with the Agreement; Bayham and Ontario Transfer Payment Agreement 25 (c) ensure that the Project, Reports and other reports, and financial information are complete, timely, accurate, in accordance with the terms and conditions of the Agreement; (d) ensure that information and monitoring processes and systems are sufficient for the identification, capture, validation and monitoring of the service performance measures; (e) assess the overall management and administration of the Project; (f) provide recommendations for improvement or redress; and (g) ensure that prompt and timely corrective action is taken on audit findings. Bayham and Ontario Transfer Payment Agreement 26 SUB SCHEDULE “F1” PROJECT REPORTS F1.0. COMPLIANCE REPORT F1.1. The Recipient shall submit the following to the Province by January 30th, 2026: (a) a copy of the Recipient’s 2022 Asset Management Plan or current; (b) a copy of the Recipient’s most recent Pavement/Road Condition Reports; (c) a confirmation of submission of the Recipient’s 2024 Financial Information Return to Ministry of Municipal Affairs and Housing; (d) the number of pothole complaints received by the Recipient in the 2024 and 2025 calendar years, as available; (e) additional information requested by the Province. F1.2.0 FINAL REPORT F1.2.1 Description and Submission Date. The Recipient shall submit to the Province a description of the activities completed and certify the completion of the Project as per the Agreement. The reporting period for the Projects and information that pertains to them is April 1, 2025 to March 31, 2026. The deadline to submit required reporting is April 17, 2026. The final report will include the following: (a) Quantitative data on road maintenance supported by the Program, that the Recipient carried out, including the number of kilometres maintained; (b) Project details of activities and/or materials related to the use of the Funds. Examples of accepted documentation include: invoices and payment certificates, post construction report, purchase and delivery of assets or supplies; (c) Other activities that achieved the Project’s objectives. F1.2.2 Reporting Failure. The Province requires submission of the program reports to inform future development of the Program, ensure effective administration and monitor performance of the Program. Any failure by the Recipient to provide Reports to the Province as set out in this Agreement may result in an Event of Default by the Recipient under Section A12.1. THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO. 2026-005 A BY-LAW TO AMEND BY-LAW 2023-034 BEING A BY-LAW TO APPOINT COMMITTEE MEMBERS WHEREAS the Municipal Act, S.O. 2001, Chapter 25, S.11(1), as amended, confers broad authority to municipalities to enable them to govern their affairs as they consider appropriate and to enhance their ability to respond to municipal issues; AND WHEREAS, the Council of the Municipality of Bayham deems it necessary to amend By-law No. 2023-034, being a by-law to appoint committee members; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: 1. THAT Mayor Ed Ketchabaw be appointed to the Long Point Region Conservation Authority Board in place of Deputy Mayor Weisler; 2. AND THAT Dennis Ball be appointed to the Straffordville Cemetery Board; 3. AND THAT Al Steward be removed from the Straffordville Cemetery Board; 4. AND THAT George Klassen be appointed to the Calton Cemetery Board; 5. AND THAT Dennis Klassen be appointed to the Calton Cemetery Board; 6. AND THAT Lynda Millard be removed from Calton Cemetery Board; 7. AND THAT Kelly Brackenbury be appointed to the Bayham West Cemetery Board; 8. AND THAT Edward Carter be removed from the Bayham West Cemetery Board; 9. AND THAT Dean Franklin be appointed to the Waterfront Advisory Committee in place of Serge Pieters; 10. AND THAT Ron Bradfield be removed the Museum Advisory Committee. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 5th DAY OF FEBRUARY, 2026. ______________________________ _____________________________ MAYOR CLERK THE CORPORATION OF THE MUNICIPALITY OF BAYHAM WATERFRONT ADVISORY COMMITTEE MINUTES TRACKLESS LOUNGE 56169 Heritage Line, Straffordville, ON Monday, January 12, 2026 5:00 p.m. PRESENT: CHAIR RAINEY WEISLER COMMITTEE MEMBERS MARNI WOLFE VAL DONNELL ASHLEY CARDINAL DEAN FRANKLIN ED KETCHABAW *Ex-Officio STAFF ATTENDANCE: CAO / DEPUTY CLERK THOMAS THAYER MANAGER OF PUBLIC WORKS / DRAINAGE SUPERINTENDENT STEVE ADAMS 1. CALL TO ORDER Committee Chair Weisler called the meeting to order at 5:00 p.m. 2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF No disclosures of pecuniary interest were declared. 3. DELEGATIONS 4. ADOPTION OF MINUTES FROM PREVIOUS MEETING(S) A. Minutes of the Waterfront Advisory Committee Meeting held October 20, 2025 Moved by: Committee Member Donnell Seconded by: Committee Member Cardinal THAT the minutes of the Waterfront Advisory Committee Meeting held October 20, 2025 be approved as presented. CARRIED 5. MATTERS OF BUSINESS A. Memo WAC-01/26 2026 Budget Update Moved by: Committee Member Wolfe Seconded by: Committee Member Cardinal THAT Memo WAC-01/26 re Budget Update – Operating and Capital be received for information. CARRIED 2 B. Memo WAC-02/26 Waterfront Advisory Committee-led Education Events for 2026 Moved by: Committee Member Cardinal Seconded by: Committee Member Donnell THAT Memo WAC-02/26 re Waterfront Advisory Committee-led Education Events for 2026 be received for information; AND THAT the Waterfront Advisory Committee appoint the following: • Committee Members Donnell and Cardinal to work with staff on the library environmental reading series in partnership with Elgin County Libraries. • Committee Members Donnell and Cardinal to work with staff on a junior stewardship/eco-scavenger hunt. • Committee Member Wolfe to work with staff for the make-a-pledge campaign. CARRIED C. Memo WAC-03/26 Waterfront Advisory Committee 2026 Meeting Schedule Moved by: Committee Member Franklin Seconded by: Committee Member Donnell THAT Memo WAC-03/26 re Waterfront Advisory Committee 2026 Meeting Schedule be received for information; AND THAT the following meeting dates be the Regular Meetings for the Waterfront Advisory Committee for 2026: • Monday, April 20, 2026 at 5:00 pm (Trackless) • Monday, July 20, 2026 at 5:00 pm (Beach, weather-dependent) AND THAT it be recommended to Council to permit the Waterfront Advisory Committee to remove the October 2026 meeting from its schedule due to proximity to the 2026 Municipal and School Board Elections. CARRIED 6. ADJOURNMENT Moved by: Committee Member Wolfe Seconded by: Committee Member Donnell THAT the Waterfront Advisory Committee Meeting be adjourned at 5:30 p.m. CARRIED 3 CHAIR DEPUTY CLERK THE CORPORATION OF THE MUNICIPALITY OF BAYHAM MUSEUM ADVISORY COMMITTEE MINUTES TRACKLESS LOUNGE 56169 Heritage Line, Straffordville Wednesday, January 28, 2026 (rescheduled from January 21, 2026) 5:00 p.m. PRESENT: CHAIR SUSAN CHILCOTT COMMITTEE MEMBERS ROY SULLIVAN DIANE SOPER ROBERT PONZIO ED KETCHABAW *Ex-Officio STAFF ATTENDANCE: PLANNING COORDINATOR/DEPUTY CLERK MARGARET UNDERHILL 1. CALL TO ORDER Chair Chilcott called the meeting to order at 5:00 pm. 2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF No disclosures of pecuniary interest were declared. 3. DELEGATIONS A. Port Burwell Historical Society re Wheelhouse This item was removed from the agenda – planned for meeting in April 2026. 4. ADOPTION OF MINUTES FROM PREVIOUS MEETING(S) A. Minutes of the Museum Advisory Committee Meeting held October 22, 2025 Moved by: Committee Member Ponzio Seconded by: Committee Member Sullivan THAT the minutes from the Museum Advisory Committee Meeting held October 22, 2025 be approved as presented. CARRIED 5. MATTERS OF BUSINESS A. Curator Monthly Reports: November & December 2025 Moved by: Committee Member Soper Seconded by: Committee Member Ponzio MAC Minutes January 28, 2026 2 2 THAT the Curator Monthly reports: November & December 2025 be received for information. CARRIED B. Memo MAC-01/26 re Museum Summer Students Moved by: Committee Member Sullivan Seconded by: Committee Member Ponzio THAT Memo MAC-01/26 re Museum Summer Students be received for information. CARRIED C. Memo MAC-02/26 re MAC Meeting Schedule Moved by: Committee Member Soper Seconded by: Committee Member Sullivan THAT Memo MAC-02/26 re Museum Advisory Committee 2026 Meeting Schedule be received for information; AND THAT the following meeting dates are the Regular Meetings for the Museum Advisory Committee for 2026: • Wednesday, April 22, 2026 at 5:00 pm (Trackless Lounge) • Wednesday, July 22, 2026 at 5:00 pm (Museum) AND THAT it be recommended to Council to permit the Museum Advisory Committee to remove the October 2026 meeting from its schedule due to proximity to the 2026 Municipal and School Board Elections. CARRIED 6. ADJOURNMENT Moved by: Committee Member Soper Seconded by: Committee Member Ponzio THAT the Museum Advisory Committee Meeting be adjourned at 5:17 p.m. CARRIED CHAIR CLERK ADVISORY BOARD & COMMITTEE RESOLUTION Date: February 5, 2026 To: Mayor & Members of Council From: Waterfront Advisory Committee & Museum Advisory Committee Subject: Recommendations from January WAC and MAC Meetings Both the Waterfront Advisory Committee and the Museum Advisory Committee respectfully requests the following motions to be considered by the Council of the Municipality of Bayham at the Regular Meeting of Council of February 5, 2026; Moved by: Committee Member Franklin Seconded by: Committee Member Donnell THAT Memo WAC-03/26 re Waterfront Advisory Committee 2026 Meeting Schedule be received for information; AND THAT the following meeting dates be the Regular Meetings for the Waterfront Advisory Committee for 2026: • Monday, April 20, 2026 at 5:00 pm (Trackless) • Monday, July 20, 2026 at 5:00 pm (Beach, weather-dependent) AND THAT it be recommended to Council to permit the Waterfront Advisory Committee to remove the October 2026 meeting from its schedule due to proximity to the 2026 Municipal and School Board Elections. CARRIED Moved by: Committee Member Soper Seconded by: Committee Member Sullivan THAT Memo MAC-02/26 re Museum Advisory Committee 2026 Meeting Schedule be received for information; AND THAT the following meeting dates are the Regular Meetings for the Museum Advisory Committee for 2026: • Wednesday, April 22, 2026 at 5:00 pm (Trackless Lounge) • Wednesday, July 22, 2026 at 5:00 pm (Museum) AND THAT it be recommended to Council to permit the Museum Advisory Committee to remove the October 2026 meeting from its schedule due to proximity to the 2026 Municipal and School Board Elections. CARRIED THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO. 2026-006 A BY-LAW TO CONFIRM ALL ACTIONS OF THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM FOR THE COUNCIL MEETING HELD FEBRUARY 5, 2026 WHEREAS under Section 5 (1) of the Municipal Act, 2001 S.O. 2001, Chapter 25, the powers of a municipal corporation are to be exercised by the Council of the municipality; AND WHEREAS under Section 5 (3) of the Municipal Act, 2001, the powers of Council are to be exercised by by-law; AND WHEREAS the Council of The Corporation of the Municipality of Bayham deems it advisable that the proceedings of the meeting be confirmed and adopted by by-law. THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: 1. THAT the actions of the Council of The Corporation of the Municipality of Bayham in respect of each recommendation and each motion and resolution passed and other action by the Council at the Council meeting held February 5, 2026 is hereby adopted and confirmed as if all proceedings were expressly embodied in this by-law. 2. THAT the Mayor and Clerk of The Corporation of the Municipality of Bayham are hereby authorized and directed to do all things necessary to give effect to the action of the Council including executing all documents and affixing the Corporate Seal. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 5th DAY OF FEBRUARY, 2026. ____________________________ _____________________________ MAYOR CLERK