HomeMy WebLinkAboutBy-law No. 2004-085 THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM A
,
BY-LAW NO. 2004-085
A BY-LAW TO AUTHORIZE THE EXECUTION OF A
MEMORANDUM OF UNDERSTANDING BETWEEN
BENEFITING MUNCIPALITIES OF THE ELGIN AREA
PRIMARY WATER SUPPLY SYSTEM FOR THE
DEVELOPMENT AND IMPLEMENTATION OF A
COMMON CONNECTION CHARGE
WHEREAS Section 11 of the Municipal Act, 2001, S.O. 2001, c. 25 as amended provides that a
lower tier municipality may pass by-laws respecting public utilities,including water distribution.
AND WHEREAS the Municipality of Bayham, as a participating municipality of the Elgin Area
Primary Water Supply System, has determined to pursue a study to develop a common connection
charge for new connections to water services supplied by the Elgin Area Primary Water Supply
System.
AND WHEREAS the Council of the Municipality of Bayham deems it necessary to approve
execution of a Memorandum of Understanding with other participating Elgin municipalities to
undertake such a study.
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE
MUNICPALITY OF BAYHAM ENACTS AS FOLLOWS:
1. THAT the Mayor and Clerk be and they are hereby authorized and directed to execute the
Memorandum of Understanding with benefiting municipalities of the Elgin Area Water
Supply System affixed hereto and forming part of this By-law and marked as Schedule"A".
READ A FIRST, SECOND AND THIRD TIME AM) FINALLY PASSED THIS 7TH DAY
OF OCTOBER,2004.
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Memorandum of Understanding
between
participating benefiting municipalities of the
Elgin Area Primary Water Supply System
for the development and implementation of a common
Connection Charge
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Purpose
The purpose of this memorandum of understanding is to document certain arrangements and
understandings for the development of a common connection charge in advance of the
formation and executed agreement between the participating benefiting municipalities of the
Elgin Area Primary Water Supply System. A common connection charge may be charged and
collected by each participating municipality for each new water service or an existing service
formerly supplied by a private or communal water supply system to a distribution system
supplied by the Elgin Area Primary Water Supply System.
This memorandum of understanding and the development of an agreement for a common
connection charge are facilitated by the Elgin Area Primary Water Supply System at the request
of the benefiting municipalities of the Elgin Area Primary Water Supply System.
Scope
The Transfer Order for the Elgin Area Primary Water Supply System from the Ministry of the
Environment established the Joint Board of Management for the Elgin Area Primary Water
Supply System and the terms and conditions for the management and administration of the area
water system. Specifically, Section 34 of the Transfer Order states:
"Where the Joint Board determines what money will be required for capital
expenditures, the Administering Municipality shall raise the money so required by
the issue of debentures or otherwise and the money so required shall be
apportioned amongst the Municipalities and collected through the System Rate,
and so much of each Municipality's portion that remains unpaid is a debt due by
the Municipality to the Administering Municipality. Any Municipality may prepay
its share, in whole or in part, of any money raised under this provision, this
prepayment provision shall not apply where the terms of borrowing by the
Administering Municipality prevent early repayment by the Administering
Municipality, unless the Administering Municipality agrees to accept such early
prepayment. If a Municipality prepays its share, in whole or in part, of any money
raised under this provision, the System Rate would be reduced accordingly for
that Municipality."
Page 1 of 4 Printed:2004-08-16
Memorandum of Understanding: Elgin Area Water System Connection Charge
This Memorandum of Understanding is limited in scope to the establishment of a common
charge by the participating benefiting municipalities for a connection (residential, commercial,
industrial or institutional)to a distribution system supplied by the Elgin Area Primary Water
Supply System, including new development(s)within the respective municipality. The monies
collected by each participating benefiting municipality shall be used for the participating
municipality's proportionate payment of growth-related capital works of the Elgin Area Primary
Water Supply System in accordance with Section 34 of the Transfer Order.
Rationale
The participating benefiting municipalities agree to jointly develop the terms and conditions for
an agreement in order to establish a connection charge for water services connecting to a
distribution system supplied by the Elgin Area Primary Water Supply System. The connection
charge shall be common among all participating benefiting municipalities of the Elgin Area
Primary Water Supply System. Each benefiting municipality of the Elgin Area Primary Water
Supply System may choose to participate in the development of an agreement and connection
charge, and subsequently may choose to execute the established connection charge
agreement. Participation in the development of the agreement and connection charge shall not
be construed as presupposed authorization to enter into the proposed connection charge
agreement.
Participating and Benefiting Municipalities
For the purpose of this Memorandum of Understanding, "benefiting municipalities" shall be
defined as those municipalities identified in the Transfer Order which draw water from the Elgin
Area Primary Water Supply System and are represented, either directly or indirectly, on the
Joint Board of Management for the Elgin Area Primary Water Supply System. This term and its
use are consistent with the use and intent as outlined in the Transfer Order and the Municipal
Water and Sewage Systems Transfer Act, 1997.
For the purpose of this Memorandum of Understanding, "participating benefiting
municipalities" shall be defined as those benefiting municipalities of the Elgin Area Primary
Water Supply System which have signed this Memorandum of Understanding.
Undertakings
1. At the request of the participating benefiting municipalities, the Joint Board of
Management for the Elgin Area Primary Water Supply System shall undertake a study to
establish a suggested common connection charge which may be implemented by the
participating benefiting municipalities for the growth-related projects of the Elgin Area
Primary Water Supply System, or portion thereof, as identified by the Elgin Area Primary
Water Supply System draft Master Water Plan (draft issued for discussion by the Joint
Board June 10, 2004). The costs incurred by the Joint Board of Management shall be
reimbursed by the participating benefiting municipalities.
2. At the request of the participating benefiting municipalities, the Joint Board of
Management for the Elgin Area Primary Water Supply System shall draft an agreement
for the establishment of a common connection charge with the participation of the
participating benefiting municipalities. The costs incurred by the Joint Board of
Management shall be reimbursed by the participating benefiting municipalities.
3. The participating benefiting municipalities shall each consider the implementation of the
suggested connection charge and the draft connection charge agreement.
Page 2 of 4 Printed:2004-08-16
Memorandum of Understanding: Elgin Area Water System Connection Charge
Terms, Amendments and Termination
This Memorandum of Understanding shall have an effective date of xxxx, 2004 and shall have
an initial period of one (1)year and renewal for a further term may be enacted by mutual
consent of the participating benefiting municipalities and the Joint Board of Management for the
Elgin Area Primary Water Supply System.
Any benefiting municipality may terminate participation in this memorandum of understanding
for any reason by giving ninety(90) days written notice. Any sub-agreements or specific
assignments being provided within the framework of this memorandum will continue to their
expiry unless included in the termination notice. Any costs incurred by the Joint Board of
Management prior to the termination date shall be paid by the terminating municipality on a
proportionate basis.
Indemnification
The participating benefiting municipalities shall indemnify, defend and save the Elgin Area
Primary Water Supply System Joint Board of Management harmless from and against all
claims, actions, losses, expenses, costs, damages, liability and costs of defence of every nature
and kind whatsoever which the Joint Board of Management, its officers, employees, servants, or
agents may suffer as a result of the participating benefiting municipalities in the performance of
this Memorandum of Understanding.
Page 3 of 4 Printed:2004-08-16
Memorandum of Understanding: Elgin Area Water System Connection Charge
Signatures
For the Township of Southwold:
Mayor Clerk
For the Municipality of Central Elgin:
Mayor Clerk
For the City of St. Thomas:
Mayor Clerk
For the Township of Malahide:
Mayor Clerk
For the Township of Bayham:
Mayor Clerk
For the Town of Aylmer:
Mayor Clerk
For the Elgin Area Primary Water Supply System:
Chair Chief Administrative Officer
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