SEE FOLLOWING MOTIONS first:

(12)  MOVED by Councillor Nicholson, SECONDED by Councillor Cullen, 
"THAT the foregoing motion (11) of Councillors Trim and
Johnson be amended by adding the following to the end of part
b) i.):
', and that such stack testing be conduced by an independent agent chosen by the Region of Durham, and be conducted at random intervals chosen by the agent without prior notice to the operator'."
MOTION DEFEATED ON THE
FOLLOWING RECORDED VOTE:
 

In response to Councillor Nicholson’s proposed amendment, staff explained that the guidelines for monitoring of the facility will be imposed by the Ministry of the Environment (MOE) and that the Region will recommend that the Certificate of Approval for the project contains a clause stating that the testing will be conducted by an independent third-party deemed acceptable to the owner of the facility. Staff added that to conduct testing without providing prior notification to the facility would be difficult, although periodic, unannounced spot checks will be conducted by the Region.

(13)  MOVED by Councillor Nicholson, SECONDED by Councillor Cullen,
 "THAT the foregoing motion (11) of Councillors Trim and Johnson be amended in part b) iii) by inserting after the word 'exceed' the words 'or approach within 25%', and further that the word 'regularly' be deleted."
MOTION DEFEATED ON THE FOLLOWING RECORDED VOTE:

(14)   MOVED by Councillor Nicholson, SECONDED by Councillor Cullen,
 "THAT the foregoing motion (11) of Councillors Trim and Johnson be divided by separating out part b) iv) so as to vote on separately."
CARRIED ON THE
FOLLOWING RECORDED VOTE:

(15)  MOVED by Councillor Trim, SECONDED by Councillor Johnson,
"THAT part b) iv.) of the foregoing motion (11) of Councillors
Trim and Johnson be adopted."
CARRIED ON THE
FOLLOWING RECORDED VOTE:

The Committee members expressed their opinions with respect to the proposed Energy-From-Waste facility.
The remainder of the main motion (11) of Councillors Trim and Johnson was then put to a vote and CARRIED.

HOST COMMUNITY AGREEMENT – THE REGIONAL MUNICIPALITY
OF DURHAM AND THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (2009-COW-02)

Report #2009-COW-02 of the Chief Administrative Officer was received. Staff responded to questions with respect to the costs incurred as a result of the Host Community agreement and which of these costs would be jointly paid for by Durham and York Regions.

(16)  MOVED by Councillor Abernethy, SECONDED by Councillor Emm,
"THAT we recommend to Council:
a) THAT the Host Community Agreement between the Regional Municipality of Durham and the Corporation of the Municipality of Clarington be approved; and
b) THAT the Regional Chair and Clerk be authorized to execute all required documents."

APPROVALS FOR THE DESIGN, CONSTRUCTION, OPERATION AND
MAINTENANCE OF A NEW DURHAM – YORK ENERGY FROM WASTE (EFW) FACILITY (RFP 604-2008): PROJECT AND RELATED FINANCING (2009-COW-03)

Report #2009-COW-03 of the Commissioners of Works and Finance was received. It was noted that on page 2 of Report #2009-COW-03, Section 7, Project Approval, Cost and Financing Approval, the words "as per recommendation b" should have read "as per recommendation 6". This change has been reflected in the recommendations contained in these minutes.

(17)   MOVED by Councillor Trim, SECONDED by Councillor Johnson,
"THAT we recommend to Council:

Environmental Assessment
1. THAT Council endorse the Durham - York Residual Waste Study Environmental Assessment (EA) as provided in Attachment #7 to Report #2009-COW-03 and the accompanying compact disk (CD), and authorize staff to submit the EA to the Ministry of the Environment by July 31, 2009, subject to such minor adjustments as deemed necessary by the Commissioner of Works, based upon the on-going process, including preliminary review of documentation by the Ministry of the Environment.
2. THAT in accordance with Subsection 6.2(2) of the Environmental Assessment Act, the Commissioner of Works be authorized to amend or withdraw this EA at any time prior to the deadline for completion of the Ministry review in the event that issues have arisen with the EA during the inspection period which are too numerous or complex to resolve within the regulated timelines.

EFW Project Agreements

The Regional Municipality of York

3. THAT authorization be given for the Region of Durham to enter into the Memorandum of Understanding (MOU) with the Region of York, included as Attachment #1 to Report #2009-COW-03, to govern the process and cost sharing arrangement between the Regions during the design, construction, operation and maintenance of the EFW facility;
4. THAT the Regional Chair and Clerk be authorized to sign the documents necessary to give effect to recommendation 3.
5. THAT staff be directed to commence negotiations of a formal co-owners agreement with the Regional Municipality of York based upon the commitments and understandings contained within the Memorandum of Understanding (MOU) with the Region of York, included as Attachment #1 to Report #2009-COW-03.

Ontario Power Authority (OPA)
6. THAT subject to and conditional upon, (i) the acceptance of the
Durham - York Residual Waste Study EA by the Minister of the Environment; (ii) the execution by York Region of the proposed MOU included as Attachment #1 to Report #2009-COW-03; and (iii) Approval of the execution of the Project Agreement by the Regional Council of the Regional Municipality of York:
a. THAT authorization be granted for the Region to enter into a Power Purchase Agreement (PPA) with the Ontario Power Authority (OPA), substantially on the terms described herein, including an agreed upon price for the net electricity distributed to the grid of eight (8) cents per kilowatt hour (kWh), subject to annual escalation to be applied to 35% of the per kWh price based upon changes in the Consumer Price Index (CPI) as calculated from the first anniversary of facility operations, and for each year of the 20-year term;
b. THAT the Commissioner of Finance be authorized to provide completion and performance security described in the PPA, up to a maximum of $660,000, when required upon execution of said agreement, to the OPA; and,
c. THAT the Regional Chair and Clerk be authorized to sign any and all documents necessary to give effect to this recommendation.

Project Approval, Cost and Financing Approval

7. THAT subject to and conditional upon, (i) the acceptance of the
Durham - York Residual Waste Study EA by the Minister of the Environment; (ii) the execution by York Region of the proposed MOU, included as Attachment #1 to Report #2009-COW-03; (iii) a satisfactory conclusion to the negotiation of the Project Agreement
with Covanta Energy Corporation on terms consistent with the requirements of RFP-604-2008, as determined by the Commissioners of Works and Finance; (iv) approval of the Power Purchase Agreement as per recommendation 6; and, (v) Approval of the execution of the Project Agreement by the Regional Council of the Regional Municipality of York:
a. THAT the Proposal submitted by Covanta Energy
Corporation, in response to RFP-604-2008 to design, build, operate and maintain an Energy From Waste Facility, be accepted at a facility construction price (excludes architectural enhancements) of $235.8 million (Durham’s share $185.3 million) and a total annual operating fee of $14.7 million (Durham’s share $11.5 million), excluding GST and escalation;
b. THAT Durham’s share or $214.7 million of the total project cost of $272.5 million for the Durham – York Energy from Waste facility be financed as follows:
i. Up-front financing of approximately $100.0 million from the Region’s Federal Gas Tax Reserve Fund;
ii. Other Revenue of approximately $1.6 million (sale of surplus land);
iii. Debentures issued for the remaining financing requirements totaling approximately $113.1 million with a term of approximately eight (8) years; and,
iv. The Region apply future Federal Gas Tax revenue estimated at $17.3 million per year to retire the debt related to its share of the project cost as noted above.
c. THAT the Region of Durham or its agents be authorized to
issue debentures in the total amount not to exceed $113.1 million to finance a portion of Durham’s share of the EFW facility;
d. THAT the Commissioner of Finance be authorized to
purchase all or a portion of the required debenture issue in the amount of $113.1 million from the Region’s Reserve Funds; and
e. THAT the Regional Chair and Clerk be authorized to execute
a Project Agreement consistent with the requirements of the RFP 604-2008 and subject to agreement on outstanding contractual issues, as determined by the Commissioners of Works and Finance.

Other

8. THAT Regional Council approval be given to initiate expropriation proceedings with respect to the acquisition of the lands adjacent to the EFW facility in the Municipality of Clarington (see Attachment #2 Site Plan to Report #2009-COW-03) that are not acquired through negotiations, and which will be required to be serviced in accordance with the Host Community Agreement (HCA), as detailed in Report 2009-COW-02.
9. THAT in accordance with the Purchasing By-law 68-2000 as amended, Finance staff be authorized to negotiate a Sole Source Agreement with HDR Corporation for the Regions under a new three-year contract (2010 to 2013), with two optional one-year extension provisions, in order to provide necessary on-going technical expertise and Project Management services and ensure project specifications as developed by HDR, standards and timelines are achieved through design-build and operations start-up protocol and Acceptance Test procedures, at an upset cost not to exceed $5.6 million (excluding applicable taxes) to be cost-shared with York Region, and with Durham’s share ($4.4 million) to be funded through the annual Solid Waste Management Business Plans and Budgets over a three to five year period and the Regional Chair and Clerk be authorized to sign any and all documents necessary to give effect to this recommendation.
10. THAT in response to requests by members of Regional Council, and/or as a supplement to the April 2009 Report 2009-J-18, Regional Council receive for information:
a. Addendum #34 to RFP-604-2008, included as Attachment
#3 to Report #2009-COW-03, as issued in January 2009 to pre-qualified vendors to provide a further breakdown of the technical, project delivery and cost and commercial elements of the evaluation criteria which was utilized by the Evaluation Team to determine the preferred vendor, as recommended to, and approved by, Regional Council in April 2009; and,
b. A final draft report from KPMG, the Regions’ Fairness
Monitor, retained by York and Durham to oversee the two-stage EFW Procurement Process and included as Attachment #4 to Report #2009-COW-03."

CARRIED ON THE FOLLOWING RECORDED VOTE:

The meeting adjourned at 1:34 a.m.