Regular Meeting of City Council

REGULAR MEETING OF CITY COUNCIL

CITY HALL, 10105 12A STREET, DAWSON CREEK

MONDAY, OCTOBER 4, 2010 AT 8:30 A.M.

AGENDA Page

1. CALL MEETING TO ORDER

2. NEW/COUNCILLOR BUSINESS

5 2.1 Memo from Councillor Belak (September 27, 2010) re: DC Library Board Meeting, September 20, 2010.

6 2.2 Memo from Councillor Belak (September 27, 2010) re: Fringe Area Development.

3. MINUTES

7-18 3.1 Minutes for adoption: 1. Public Consultation Session (September 13, 2010) for Bylaw 4070, 2010. 2. Public Hearing (September 13, 2010) for Bylaws 4070, 2010 and 4071, 2010. 3. Regular Meeting (September 13, 2010). 4. Public Hearing (September 24, 2010) for Bylaw 4078, 2010. 5. Special Meeting (September 24, 2010).

4. BUSINESS ARISING

5. CORRESPONDENCE

19-20 5.1 Letter from Staff Sgt. Darren Traichevich, Dawson Creek RCMP Detachment (September 14, 2010) re: Request to Increase Municipal Policing Resources.

Page 1 of 146 REGULAR MEETING OF CITY COUNCIL MONDAY, OCTOBER 4, 2010 Page

5. CORRESPONDENCE

21-22 5.2 Letter from the Peace Energy Cooperative (September 23, 2010) re: Letter of Interest in the Multiplex Biomass Proposed Project.

23 5.3 Letter from Minister Pat Bell, Ministry of Forests and Range (September 14, 2010) re: Wood Enterprise Coalition and Challenge to adopt a Wood First Resolution.

24-26 5.4 Letter from Premier Gordon Campbell (September 20, 2010) re: BC Achievement Foundation Community Achievement Awards.

6. DELEGATIONS (9:00 A.M.)

27 6.1 Fred Smith and Jessie Herringer, Mental Health & Addictions, in attendance re: Mental Health Awareness Week.

6.2 Ron DeWinter, DeWinter Enterprises (1996) Ltd. in attendance re: Chauffeur Permits. 28 6.3 Shane Carlson, SN Carlson Trucking, in attendance re: Effluent and fresh water contracts.

7. REPORTS

29-98 7.1 Report No. ADM 10-144 from the Director of Corporate Administration (September 28, 2010) re: Water Reclamation Facility Agreement - Elector Approval.

99-101 7.2 Report No. ADM 10-141 from the Director of Corporate Administration (September 20, 2010) re: 2011 Council Meeting Schedule.

102-104 7.3 Report No. ADM 10-143 from the Director of Corporate Administration (October 4, 2010) re: Administration Policy - Employee Retirement.

105-106 7.4 Report No. ADM 10-142 from the Director of Infrastructure and Sustainable Development (September 24, 2010) re: Strata Conversion 716-97th Avenue. 107-111 7.5 Report No. TX 10-224 from the Chief Financial Officer (September 27, 2010) re: 2010 Tax Sale.

112-123 7.6 Report No. ADM 10-146 from the Director of Infrastructure and Sustainable Development (September 24, 2010) re: NEAT Waste and Energy Assessment of City Hall.

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7. REPORTS

124-129 7.7 Report No. ADM 10-147 from the Chief Financial Officer (September 22, 2010) re: August 31, 2010 Operational Budget Variance Report.

8. BYLAWS

8.1 Financial Plan Amendment Bylaw No. 4076, 2010 for adoption.

130-145 8.2 Report No. TX 10-210 from the Chief Financial Officer (September 13, 2010) re: Permissive Tax Exemption Bylaw No. 4077, 2010. 1. Letter from the Dawson Creek Native Housing Society (September 30, 2010) re: Native Housing Society Residential Housing Units (Late Item). 2. Permissive Tax Exemption Bylaw No. 4077, 2010 for first three readings.

9. MAYOR'S BUSINESS

10. DIARY

10.1 Calvin Kruk Centre for the Arts Update.

11. CONSENT CALENDAR

12. STRATEGIC PRIORITIES CHART

146 12.1 Strategic Priorities Chart.

13. QUESTION AND ANSWER PERIOD

14. COMMITTEE OF THE WHOLE (11:00 A.M.)

15. MEDIA QUESTION PERIOD

16. RECESS TO CLOSED MEETING

16.1 Resolution to move into the Meeting of Council Closed to the Public.

Agenda Item 2.1 - Section 90 (1) (d) the security of the property of the municipality and Section 90 (2) (b) the consideration of information relating to negotiations between the municipality and the provincial or federal

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16. RECESS TO CLOSED MEETING

government. Agenda Items 3.1 & 3.2 - Section 97 (1) (b) ‘Minutes’ - as previously noted.

Further, that Council authorize the following municipal staff to attend for all agenda items: Chief Administrative Officer, Jim Chute Deputy Chief Administrative Officer, Greg Dobrowolski Chief Financial Officer, Shelly Woolf Director of Corporate Administration, Brenda Ginter Chief Confidential Secretary, Tyra Henderson

Further, that Peter Moore, Bruce Haden, Gerry Longson, Terri Hanen and Wayne Hiebert be authorized to attend for item 2.1.

17. RECONVENE TO OPEN MEETING TO ADJOURN

Page 4 of 146 Item 2.1

MEMO

TO: Mayor and Council DATE: September 27, 2010

FROM: Councillor Belak

SUBJECT: DC Library Board Meeting , September 20, 2010

Programming for the fall and winter includes a Local Published Writer’s event for November. Published local authors should contact Jenny to discuss the event and secure a spot to sell their work and to speak for up to 10 minutes about how they got published.

* The Library Board discussed the condition of the Library Building and the need for a sustainability plan for the library. Jenny has been in conversation with Duncan Redfearn about the aging building and concerns of the Friends of the Library, Staff and Library Board. It is becoming difficult to decide spending priorities without knowing the strengths and deficits of this building and its capacity to handle increased use and collection resources.

Therefore: Be it resolved that a public process to discuss the future of our library and creation of a long term sustainability plan for the Library be added for consideration at the 2011 strategic planning sessions.

Respectfully submitted Councillor Marilyn Belak

Regular Council 04 Oct 2010 Page 5 of 146 Item 2.2

MEMO

TO: Mayor and Council DATE: September 27, 2010

FROM: Councillor Belak

SUBJECT: Fringe Area Development

I have received more phone calls expressing concern about some of our fringe area developments including the one known as Chilton Subdivision. Last meeting bylaws sent us photographs of the unlicensed ‘motocross’ track in that area and many people are concerned about the safety of users who loop out onto the public street while using it. Along with that concern has come a couple of other unsightly property concerns including construction refuse, in what is otherwise a residential semi-rural development and those concerns mention the fringe area in general.

I request that staff and Mayor Bernier bring these concerns to the Regional District for their bylaw enforcement as many of the issues around traffic safety, fire issues, health and quality of life are addressed by the City when a crisis situation arises.

Respectfully submitted Councillor Marilyn Belak

Regular Council 04 Oct 2010 Page 6 of 146 Item 3.1

MINUTES OF THE PUBLIC CONSULTATION SESSION, City Hall, 10105 – 12A Street, Dawson Creek, BC on MONDAY, SEPTEMBER 13, 2010 AT 8:30 A.M. OFFICIAL COMMUNITY PLAN AMENDMENT (10-05) NO. 4070, 2010

COUNCIL PRESENT STAFF PRESENT Mayor Mike Bernier - Chair Jim Chute, Chief Administrative Officer Councillor Marilyn Belak Shelly Woolf, Chief Financial Officer Councillor Theresa Gladue Brenda Ginter, Director of Corporate Administration Councillor Terry McFadyen Kevin Henderson, Director of Infrastructure & Councillor Bud Powell Sustainable Development Councillor Cheryl Shuman Tyra Henderson, Recording Secretary

ABSENT Councillor Sue Kenny

ALSO IN ATTENDANCE Jamie Woodford, Dawson Creek Daily News

1. CALL TO ORDER Call to order The Chair called the Public Hearing to order at 8:30 am.

2. NOTICE OF PUBLIC CONSULTATION Notice of Public 2.1 Consultation Session The Director of Corporate Administration read aloud the Notice of Public Consultation regarding the City of Dawson Creek Official Community Plan Amendment (10-05) Bylaw No. 4070, 2010. The bylaw amends the City of Dawson Creek Official Community Plan Bylaw No. 4042, 2009 by re-designating the NW ¼ of Section 16 from Agricultural to Commercial and Industrial to conform to the land use designations contained in the South Peace Comprehensive Development Plan.

3. CORRESPONDENCE AND DELEGATIONS Correspondence and 3.1 delegations The Director of Corporate Administration advised that one letter from the Ministry of Transportation was received re-affirming their response provided following the original notice. The Agricultural Land Commission is aware of the change and the pending request for exclusion from the Agricultural Land Reserve and has asked that adoption of the bylaw be deferred until that request has been processed.

Call for comments 4. COMMENTS FROM THE GALLERY Mayor Bernier called for comments from the gallery.

Mayor Bernier called a second and third time for comments from the gallery. None were forthcoming.

5. ADJOURN Adjourn Mayor Bernier adjourned the Public Consultation at 8:33 am.

CERTIFIED A TRUE AND CORRECT COPY OF THE MINUTES OF THE PUBLIC CONSULTATION OF COUNCIL RE: OFFICIAL COMMUNITY PLAN AMENDMENT (10-05) Mayor Bernier – Chair BYLAW NO. 4070 HELD MONDAY, SEPTEMBER 13, 2010.

BRENDA GINTER Brenda Ginter – Director of Corporate Administration DIRECTOR OF CORPORATE ADMINISTRATION

Regular Council 04 Oct 2010 Page 7 of 146 Item 3.1

MINUTES OF THE PUBLIC HEARING, City Hall, 10105 – 12A Street, Dawson Creek, BC on MONDAY, SEPTEMBER 13, 2010 AT 8:30 A.M. OFFICIAL COMMUNITY PLAN AMENDMENT (10-05) NO. 4070, 2010 ZONING AMENDMENT (10-09) BYLAW NO. 4071, 2010

ABSENT Councillor Sue Kenny

ALSO IN ATTENDANCE Jamie Woodford, Dawson Creek Daily News

1. CALL TO ORDER Call to order The Chair called the Public Hearing to order at 8:33 am.

2. NOTICE OF PUBLIC HEARING Notice of Public 2.1 Consultation Session The Director of Corporate Administration read aloud the Notice of Public Hearing regarding the City of Dawson Creek Official Community Plan Amendment (10-05) Bylaw No. 4070, 2010 and Zoning Amendment (10-09) Bylaw No. 4071, 2010; a bylaw amending City of Dawson Creek Official Community Plan Bylaw No. 4042, 2009 by re-designating the NW ¼ of Section 16 from Agricultural to Commercial and Industrial. The City of Dawson Creek Zoning Bylaw No. 3662, 1998 is to be amended by re- zoning an approximately 40 ha parcel at the northwest corner of the quarter section, fronting the Dangerous Goods Route and Hwy 97 from Agricultural to C-2 Commercial – General Zone and the remainder of the property from Agricultural to M-2 Industrial Light Zone.

3. CORRESPONDENCE AND DELEGATIONS Correspondence and 3.1 delegations The Director of Corporate Administration advised that one letter was received from the Ministry of Transportation stating they are in support of the OCP amendment, but require more information before the re-zoning can be approved. The Ministry has requested a site plan for the entire quarter section be submitted and ‘approved in principle’ by the City, showing the proposed lot layouts, lot sizes, internal subdivision roads, and proposed connections to their infrastructure. Also requested is a traffic study. The Director of Corporate Administration also noted that the Agricultural Land Commission has requested that Council defer consideration of adoption of both the OCP and Zoning bylaws until a decision has been made by the Commission regarding the exclusion of the property from the Agricultural Land Reserve.

Call for comments 4. COMMENTS FROM THE GALLERY Mayor Bernier called for comments from the gallery.

Mayor Bernier called a second and third time for comments from the gallery. None were forthcoming.

5. ADJOURN Adjourn Mayor Bernier adjourned the Public Hearing at 8:36 am.

Regular Council 04 Oct 2010 Page 8 of 146 Item 3.1

Minutes of the Public Hearing Monday September 13, 2010 Page 2 of 2

CERTIFIED A TRUE AND CORRECT COPY OF THE MINUTES OF THE PUBLIC HEARING OF COUNCIL RE: OFFICIAL COMMUNITY PLAN AMENDMENT (10-05) Mayor Bernier – Chair BYLAW NO. 4070 AND ZONING AMENDMENT (10-09) BYLAW NO. 4071 HELD MONDAY, SEPTEMBER 13, 2010.

Brenda Ginter – Director of Corporate Administration BRENDA GINTER DIRECTOR OF CORPORATE ADMINISTRATION

Regular Council 04 Oct 2010 Page 9 of 146 Item 3.1

MINUTES OF THE REGULAR MEETING OF CITY COUNCIL, City Hall, 10105 – 12A Street, Dawson Creek, BC on MONDAY, SEPTEMBER 13 , 2010

ALSO IN ATTENDANCE Jamie Woodford, Dawson Creek Daily News Matthew Bains (9:10 am)

1. CALL TO ORDER Call to order The Chair called the meeting to order at 8:35 a.m.

2. NEW AND COUNCILLOR BUSINESS Council updates 2.1 Members of Council provided updates on their respective activities over the past two weeks.

3. MINUTES 1. Minutes of August 3.1 30, 2010 SHUMAN/MCFADYEN, THAT the Minutes of the Regular Meeting of City Council (August 30, 2010) be adopted. CARRIED 4. BUSINESS ARISING

5. CORRESPONDENCE 2. NLC 35th 5.1 Anniversary time SHUMAN/BELAK, capsule THAT the letter from Turid Giovannini, Chair, Northern Lights College Time Capsule Committee (August 20, 2010) re: Northern Lights College 35th Anniversary Time Capsule be received; further, that staff be directed to forward a City memento for inclusion in the time capsule. CARRIED 3. BC Coalition on 5.2 Alcohol Reform BELAK/GLADUE THAT the letter from the BC Coalition for Action on Alcohol Reform (August 25, 2010) re: Request for support of the City of Victoria's Resolution to Reduce Alcohol-related Harms in our Province at the Upcoming Union of British Columbia Municipalities' Conference this September be received for information. CARRIED

Regular Council 04 Oct 2010 Page 10 of 146 Item 3.1

Minutes of the Regular Meeting of City Council – September 13, 2010 Page 2 of 6

4. NCDC AGM & 5.3 Conference GLADUE/SHUMAN, THAT the letter from Mary Joan Aylward, Operational Manager, Northwest Corridor Development Corporation (August 26, 2010) re: NCDC Annual General Meeting and Conference and Membership Dues Invoice 2010-2011 be received; further, that staff be authorized to pay the membership dues invoice in the amount of $2,500.00 excluding taxes. CARRIED 5. Northern BC 5.4 Tourism AGM POWELL/BELAK, THAT the letter from Anthony Everett, CEO, Northern BC Tourism (August 26, 2010) re: Northern British Columbia Tourism Association, Annual General Meeting, October 4 & 5, 2010 be received for information.

Councillor Powell advised that he will be attending as a board member and that his position is up for re-election. CARRIED 6. Youth Awareness 5.5 Project BELAK/GLADUE, THAT the letter from the Kiwanis Enterprise Centre (September 8, 2010) re: Youth Awareness Project request for support be received; further, that staff be directed to provide a letter of support for the project. CARRIED Vary agenda Mayor Bernier varied the agenda to bring forward Item 7.1 prior to scheduled delegations.

7. REPORTS 7. ALR Exclusion – 7.1 Hansen/Martin MCFADYEN/SHUMAN, THAT Report No. ADM 10-120 from the Director of Corporate Administration (September 1, 2010) re: ALR Exclusion Request for NW 1/4, Section 16, T 78, R 15, W6M, PRD Except Portions in Plan PGP36247, Plan A1442 and Plan BCP19115 - Wayne Hansen and Kerry Martin be received; further, that Council support the ALR Exclusion Application from Mr. Wayne Hansen and Ms. Kerry Martin for the NW ¼ of Section 16, Township 78, Range 15, W6M, Peace River District, except portions in Plan PGP36247, Plan A1442 and Plan BCP19115 and approve the application to proceed to the Agricultural Land Commission. CARRIED 8. DC Rage Ticket 7.2 Distribution Policy SHUMAN/MCFADYEN, THAT Report No. ADM 10-135 from the Director of Corporate Administration (September 7, 2010) re: DC Rage Ticket Distribution Policy be received; further, that the DC Rage Ticket Distribution Policy be adopted as follows:

The Council of the City of Dawson Creek directs that: The use of 10 season tickets for the DC Rage Junior “A” Hockey Team is an opportunity for the City of Dawson Creek to maintain and create positive relationships internationally, nationally, provincially, regionally, locally, and internally. The season tickets can assist the City of Dawson Creek to take advantage of promotional, outreach, and business opportunities. More specifically, usage of the season tickets is an opportunity to further make Dawson Creek a visionary community that works together for innovative, social, cultural, economic, and environmental vitality.

In fulfilling these goals, the following purposes are deemed to have the highest priority (in descending order) when determining appropriate ticket distribution usage:

Regular Council 04 Oct 2010 Page 11 of 146 Item 3.1

Minutes of the Regular Meeting of City Council – September 13, 2010 Page 3 of 6

Rage Ticket Item 7.2 (continued) Distribution Policy 1. Marketing the City of Dawson Creek • By providing a hospitable environment, the City can create and maintain positive relationships with individuals, groups, governments, businesses, organizations, and corporations that could, potentially, bring new opportunities to the City.

2. Marketing Civic Facilities • Establishing and maintaining good business relationships. • Attracting new businesses into the facility and/or maintaining existing businesses involved in the facility. • Working cooperatively with business partners 3. Recognition • An opportunity to recognize business, groups, and individuals for their contribution to the City as a corporation, its facilities, and/or the community in general.

In addition to these purposes, the following user groups may be incorporated into the process of classifying the degree of importance or priority in extending an invitation to be a guest for a DC Rage season game.

1. New Clients/customers. 2. Partners directly related to operations/marketing. 3. Existing clients/customers. 4. Groups, individuals, and organizations who contribute to the betterment of the City and the community. 5. Prizes at special functions with a highly visible profile to the public or potential clients. 6. Internal City purposes.

In instances where more than one user group is identified as a potential guest for one game, the Ticket Coordinator will determine which group has priority based on the preceding criteria. The Coordinator will evaluate requests that do not fall into the above criteria on an individual basis. The Coordinator will attempt in all cases to work with the Mayor (in his/her economic development role) to identify existing, new, and/or potential ticket uses. The Director of Corporate Administration will be the Ticket Coordinator.

Those wishing to be invited to use the Season Tickets must first contact the Coordinator at City Hall. The Coordinator maintains the responsibility for prioritizing the usage of the tickets in accordance with this policy, and will coordinate notification of the user groups and the distribution of tickets to the host. Those persons making inquiries should be prepared to provide justification as to how the goals of this policy and Council’s vision are fulfilled by having said groups in attendance at the DC Rage game.

Once a user group has been identified, the Coordinator will ensure that the group is provided with a copy of the Rules and Guidelines for the EnCana Event Centre in advance of the event. CARRIED

Regular Council 04 Oct 2010 Page 12 of 146 Item 3.1

Minutes of the Regular Meeting of City Council – September 13, 2010 Page 4 of 6

9. DC Golf & 7.3 Country Club Liquor POWELL/SHUMAN, License application THAT Report No. ADM 10-136 from the Director of Corporate Administration (September 7, 2010) re: Dawson Creek Golf & Country Club Application for Change of Hours of Liquor Sale - Request for Additional Comments be received; further that the Liquor Control and Licensing Branch be advised that Council considers the potential for noise and the impact on the community is not expected to be an issue by opening at 9:00 am instead of 11:00 am; further, that Council reaffirm the recommendation that the application for the permanent change in hours be approved. CARRIED OPPOSED: COUNCILLORS BELAK & GLADUE 10. DP 10-19 – 7.4 Dufour Ent. @ GLADUE/BELAK, 1101 -97 Ave THAT the Report No. ADM 10-134 from the Director of Infrastructure and Sustainable Development (September 7, 2010) re: Development Permit Application for 1101 97 Avenue – R. Dufour Enterprises Ltd. be received; further, that staff be directed to proceed with the required notification process for Development Permit 10-19; further, that Council approve Development Permit 10-19 for R. Dufour Enterprises Ltd. for 1101 97 Avenue, subject to the successful completion of the required notification period and receipt of the required financial security in the amount of $10,000.00. CARRIED Recess RECESS Mayor Bernier recessed the meeting at 9:00 am prior to scheduled delegations.

Reconvene RECONVENE Mayor Bernier reconvened the meeting at 9:10 am.

Matthew Bains, Dustin Bodnaryk, Tourism Development Coordinator and Shorty Smith, Fire Chief, in attendance.

6. DELEGATIONS (9:00 A.M.) Terry Fox Run 6.1 proclamation Erin Oliver, Recreation Programmer, and Tara Mayoros, Recreation Coordinator, accepted the proclamation of Sunday, September 19th as Terry Fox Run Day in Dawson Creek from Mayor Bernier. Ms. Oliver encouraged everyone to get out and get some exercise while fundraising for a great cause. The registration starts at 1:00 pm and the run starts at 2:00 pm. Organizers are hoping for a great turnout for the 30th Anniversary Year and thanked the many community sponsors who support the event with food and prizes.

Resume agenda Mayor Bernier resumed the regular agenda following delegations starting at Item 8.1

8. BYLAWS 11. Bylaw 4076 8.1 SHUMAN/POWELL, THAT Report No. ADM 10-130 from the Chief Financial Officer (August 20, 2010) re: Financial Plan Amendment Bylaw No. 4076 be received; further, that Financial Plan Amendment Bylaw No. 4076, 2010 be given first three readings. CARRIED 12. Bylaw 4078 8.2 BELAK/POWELL, THAT Report No. ADM 10-131 from the Director of Infrastructure & Sustainable Development (September 4, 2010) re: Zoning Amendment Bylaw 4078 - Secondary Suites & Tattoo Parlours be received; further, that Zoning Amendment Bylaw No. 4078, 2010 be given first two readings and staff be directed to advertise the required public hearing. CARRIED

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Minutes of the Regular Meeting of City Council – September 13, 2010 Page 5 of 6

9. MAYOR’S BUSINESS 13. Water 9.1 Conservation MCFADYEN/SHUMAN, Measures THAT Report No. ADM 10-139 from the Director of Infrastructure & Sustainable Development (September 13, 2010) re: Water Conservation Measures be received; further, that Council direct staff to move to Stage 3 Water Conservation Measures effective immediately. CARRIED 14. UBCM 9.2 Excellence Awards BELAK/SHUMAN, Breakfast THAT the Letter from Joslyn Young, Executive Coordinator, UBCM re: Invitation to Attend Excellence Awards Breakfast and Report No. ADM 10-138 from the Chief Confidential Secretary be received; further, that a draw by lot be held to determine the attendees representing the City of Dawson Creek. CARRIED

Councillor McFadyen, Councillor Shuman, Councilor Gladue, and Councillor Belak were selected to attend on behalf of the City.

Notice of Special 9.3 Meeting Mayor Bernier noted the Notice of Special Meeting of Council September 24, 2010 at 8:30 am where Council will be asked to award the construction tender for the Calvin Kruk Centre for the Arts project.

China Trip De- 9.4 Briefing Mayor Bernier noted that a de-briefing session regarding his recent trip to China as a member of Team Northern BC has been scheduled for Wednesday, September 15, 2010 at 1:30 pm at City Hall. Media and members of Council are invited.

Mayor Bernier stated that he made contact with literally hundreds of business people interested in large scale investment opportunities.

10. DIARY Calvin Kruk Centre The Chief Administrative Officer advised the following regarding the Calvin Kruk Centre for the Arts update for the Arts project: • Tender deadline extended to Sept 20th – Special Meeting scheduled for September 24th to award tender. • All prequalified bidders and sub trades have been toured through building. • WL Construction, one of the pre-qualified bidders, has advised that they will not bid due to other projects they have secured. • Federal and provincial government representatives (project funding partners) must be involved in the “brick-smashing” ceremony and Council will be advised once further information is known regarding a date for such an event.

11. CONSENT CALENDAR 15. Consent Calendar 11-1 items GLADUE/SHUMAN, THAT the following items be received for information: 1. Report No. ADM 10-119 from the Director of Corporate Administration (August 23, 2010) re: Items to be released from previous In-Camera minutes. 2. Letter from the Union of British Columbia Municipalities (August 23, 2010) re: 2010 Resolutions. 3. Letter from the Dawson Creek Municipal Public Library (August 23, 2010) re: Summer Reading Club Sponsors. CARRIED

Regular Council 04 Oct 2010 Page 14 of 146 Item 3.1

Minutes of the Regular Meeting of City Council – September 13, 2010 Page 6 of 6

12. STRATEGIC PRIORITIES CHART

13. QUESTION & ANSWER PERIOD

14. COMMITTEE OF THE WHOLE

15. MEDIA QUESTION PERIOD

16. Authorization to 16. RECESS TO CLOSED move into Closed 16.1 Mtg. BELAK/MCFADYEN THAT Council move into the Closed Meeting of Council at 9:55 am, pursuant to Sections 90 and 97 of the Community Charter for the purpose of discussing the following items, as indicated below:

Agenda Items 3.1 - Section 97 (1) (b) ‘Minutes’ - as previously noted. Agenda Item 9.1 - Section 90 (1) (d) the security of the property of the municipality.

Further, that Council authorize the following municipal officers to attend for all agenda items: Chief Administrative Officer, Jim Chute Deputy Chief Administrative Officer, Greg Dobrowolski Chief Financial Officer, Shelly Woolf Director of Corporate Administration, Brenda Ginter Director of Infrastructure & Sustainable Development, Kevin Henderson Director of Parks & Recreation, Barry Reynard Chief Confidential Secretary, Tyra Henderson CARRIED 17. Water 17. RECONVENE TO OPEN FOR THE PURPOSE OF ADJOURNMENT Conservation 17.1 measures MCFADYEN/POWELL, THAT the meeting be reconvened open to the public at 10:55 am; further, that Council delegate the authority to rescind Stage 3 Water Conservation Measures to the Director of Infrastructure and Sustainable Development as of Friday, September 17th, subject to water usage statistics the week of September 13-17th, 2010. CARRIED 17.2 MCFADYEN/BELAK, 18. Adjourn THAT the meeting be adjourned at 11:08 am. CARRIED

CERTIFIED A TRUE AND CORRECT COPY OF THE MINUTES OF THE REGULAR MEETING OF COUNCIL HELD MONDAY, SEPTEMBER 13, 2010. Mayor Mike Bernier – Chair

BRENDA GINTER DIRECTOR OF CORPORATE ADMINISTRATION Brenda Ginter – Director of Corporate Administration

Regular Council 04 Oct 2010 Page 15 of 146 Item 3.1

MINUTES OF THE PUBLIC HEARING, City Hall, 10105 – 12A Street, Dawson Creek, BC on FRIDAY, SEPTEMBER 24, 2010 AT 8:30 A.M.

ZONING AMENDMENT BYLAW NO. 4078, 2010

COUNCIL PRESENT STAFF PRESENT Mayor Mike Bernier - Chair Jim Chute, Chief Administrative Officer Councillor Theresa Gladue Greg Dobrowolski, Deputy Chief Administrative Officer Councillor Sue Kenny Shelly Woolf, Chief Financial Officer Councillor Terry McFadyen Brenda Ginter, Director of Corporate Administration Councillor Bud Powell Kevin Henderson, Director of Infrastructure & Councillor Cheryl Shuman Sustainable Development Cindy Fisher, Recording Secretary ABSENT Councillor Marilyn Belak

ALSO IN ATTENDANCE Lyndee Free, CJDC News Jamie Woodford, Dawson Creek Daily News

1. CALL TO ORDER Call to order The Chair called the Public Hearing to order at 8:30 am.

2. NOTICE OF PUBLIC HEARING Notice of Public 2.1 Hearing The Director of Corporate Administration read aloud the Notice of Public Hearing regarding Zoning Amendment Bylaw No. 4078, 2010; a bylaw amending the City of Dawson Creek Zoning Bylaw No. 3662, 1998 by adding secondary suites to all residential zones and adding tattoo parlours to the C-1, C-1A, C-2 and C-4 zones.

3. CORRESPONDENCE AND DELEGATIONS Correspondence and 3.1 delegations The Director of Corporate Administration advised that Northern Health had asked for further clarification and after being provided with a copy of the bylaw had no concerns. There were no further comments received.

Call for comments 4. COMMENTS FROM THE GALLERY Mayor Bernier called for comments from the gallery.

Mayor Bernier called a second and third time for comments from the gallery. None were forthcoming.

5. ADJOURN Adjourn Mayor Bernier adjourned the Public Hearing at 8:31 am.

CERTIFIED A TRUE AND CORRECT COPY OF THE MINUTES OF THE PUBLIC HEARING OF COUNCIL RE: ZONING AMENDMENT BYLAW NO. 4078 HELD FRIDAY, Mayor Bernier – Chair SEPTEMBER 24, 2010.

BRENDA GINTER Brenda Ginter – Director of Corporate Administration DIRECTOR OF CORPORATE ADMINISTRATION

Regular Council 04 Oct 2010 Page 16 of 146 Item 3.1

MINUTES OF THE SPECIAL MEETING OF CITY COUNCIL, City Hall, 10105 – 12A Street, Dawson Creek, BC on FRIDAY, SEPTEMBER 24 , 2010

ALSO IN ATTENDANCE Jamie Woodford, Dawson Creek Daily News Lyndee Free, CJDC/NTV Brent Neumann

1. CALL TO ORDER Call to order The Chair called the meeting to order at 8:31 a.m.

2. NEW AND COUNCILLOR BUSINESS

3. MINUTES

4. BUSINESS ARISING

5. CORRESPONDENCE

6. DELEGATIONS (9:00 A.M.)

7. REPORTS Calvin Kruk Centre The Deputy Chief Administrative Officer reported that tenders for the Calvin Kruk Centre construction tenders for the Arts construction were opened on Monday. Three tenders were received, all above budget amounts. Staff is currently working with the cost consultant and project manager to negotiate with low bidder to find out why the amounts were so high and what can be done to bring the price to within budget. A more detailed report will be presented to Council at the Regular Meeting of October 4th.

8. BYLAWS 1. Bylaw 4078 8.1 adopted MCFADYEN/KENNY, THAT, Zoning Amendment Bylaw No. 4078, 2010 be given third reading and adopted. CARRIED 9. MAYOR’S BUSINESS

10. DIARY

11. CONSENT CALENDAR

Regular Council 04 Oct 2010 Page 17 of 146 Item 3.1

Minutes of the Special Meeting of City Council – September 24, 2010 Page 2 of 2

12. STRATEGIC PRIORITIES CHART

13. QUESTION & ANSWER PERIOD

14. COMMITTEE OF THE WHOLE

15. MEDIA QUESTION PERIOD

2. Authorization to 16. RECESS TO CLOSED move into Closed GLADUE/POWELL, Mtg. THAT Council move into the Closed Meeting of Council, pursuant to Section 97 of the Community Charter for the purpose of discussing the following items, as indicated below:

Agenda Items 7.1 & 7.2 - Section 90(1)(k) negotiations and related discussions respecting the proposed provision of a municipal service.

3. Adjournment 17. RECONVENE TO OPEN FOR THE PURPOSE OF ADJOURNMENT 17.1 GLADUE/POWELL, THAT the meeting be reconvened open to the public for the purpose of adjournment at 9:05 a.m. CARRIED

CERTIFIED A TRUE AND CORRECT COPY OF THE MINUTES OF THE SPECIAL MEETING OF COUNCIL HELD FRIDAY, SEPTEBMER 24, 2010. Mayor Mike Bernier – Chair

BRENDA GINTER DIRECTOR OF CORPORATE ADMINISTRATION Brenda Ginter – Director of Corporate Administration

Regular Council 04 Oct 2010 Page 18 of 146 Item 5.1

Regular Council 04 Oct 2010 Page 19 of 146 Item 5.1

Regular Council 04 Oct 2010 Page 20 of 146 Item 5.2

Regular Council 04 Oct 2010 Page 21 of 146 Item 5.2

Regular Council 04 Oct 2010 Page 22 of 146 Item 5.3

Regular Council 04 Oct 2010 Page 23 of 146 Item 5.4

Regular Council 04 Oct 2010 Page 24 of 146 Regular Council 04 Oct 2010

“I believe it is important to recognize our finest citizens for their contributions to our province, and this special award is an ideal way to formally thank them for all that they have done for their communities. I invite you to consider the people within your community whose spirit, imagination, dedication, and commitment have truly made a difference and to nominate them for a British British Columbia Columbia Community Achievement Award.” Community Achievement British Columbia Awards The Honourable Gordon Campbell, Premier Board Member Community Achievement British Columbia Achievement Foundation Awards

nomination deadline: november 15

For more information about the Celebrating the spirit, imagination, awards, please contact the BC Achievement Foundation. dedication, and outstanding contributions

Page 25 of 146 Tel: 604.261.9777 or of British Columbians to their communities. Toll-Free 1.866.882.6088 Email: [email protected] Website: www.bcachievement.com Nominate a deserving individual who raises the quality and character of your community for a Item 5.4

BC Community Achievement Awards British Columbia Community Achievement Award. BC National Award for Canadian Non-Fiction Carter Wosk BC Creative Achievement Awards BC Creative Achievement Awards for First Nations’ Art BC Aboriginal Business Awards 2010 Community Achievement Award Recipients with His Honour, Steven L. Point, OBC, Lieutenant Governor of British Columbia and The Honourable Gordon Campbell, Premier of British Columbia

Generously sponsored by Generously sponsored by Regular Council 04 Oct 2010

“Give back to the people Who is eligible for these awards? BRITISH COLUMBIA COMMUNITY ACHIEVEMENT AWARDS NOMINATION FORM who give the most in Any person or group may nominate a current or former long-term resident Please complete all four sections: Nomination deadline: November 15 of British Columbia. Nominees will have made a significant contribution your community.” 1 NOMINEE through a unique achievement or outstanding service—either as a volunteer Name (Mr./Mrs./ms./miss/dr.) YOUR Completed nomination or in the course of their work—in any area that provides a benefit to the package must include: home address British Columbia’s communities are community. These include, but are not limited to, arts and culture, sports 1. Completed nomination form and recreation, multiculturalism, environment, healthcare, education, shaped by the people who live in them, city/town/province/postal code 2. Three letters: (maximum 500 words each) and especially by the contributions civic duty, business innovation, community volunteerism, and youth or seniors’ leadership. daytime telephone evening telephone email • A letter from the nominator giving the of extraordinary individuals. reasons for nomination. organization (if applicable) • Two letters of support for the BC Community The British Columbia Community Neither Members of Parliament or Members of the Legislative Assembly, Achievement award nomination from other Achievement Awards celebrate British past or present, nor members of the Judiciary are eligible for nomination. organization address (if applicable) city / town / province / postal code Columbians who go above and beyond Posthumous nominations will not be accepted. Self nominations will individuals or organizations that describe the Is the nominee a current or former long-term resident of BC? Yes/No in their dedication and service to others not accepted. value and impact of the contributions of the

and who devote time and energy to 2 nominator individual. making their communities more caring, How do I nominate someone for Name (Mr./Mrs./ms./miss/dr.) 3. Brief biographical sketch of the nominee as it dynamic, beautiful, healthy, and unique. this award? address relates to the nomination. They inspire by their example. Complete the attached nomination form and submit it with: 4. Optional: Up to five pages of additional • A letter describing the contributions of the nominee; city/town/province/postal code The British Columbia Community material about your nominee. • A brief personal history of the nominee; Achievement Awards are presented daytime telephone evening telephone • Two current letters of support for the BC Community Achievement 5. Please do not send submission packages in by the British Columbia Achievement binders or folders. award nomination from individuals or organizations that describe the email organization (if applicable) Foundation, a foundation established value and impact of the nominee’s contributions to his/her community. in 2003 by the Province of British Mailing information: Columbia to celebrate excellence in How long have you known the nominee?

Page 26 of 146 Nominations will remain confidential between the nominator and I have provided or made provision for all the nomination material required for a completed Mail or courier completed nomination package to: community service, enterprise, arts and the Awards’ program. nomination package. BC Community Achievement Awards the humanities. c/o 6209 Angus Drive Vancouver, BC V6M 3P2 How are the award recipients chosen? signature of nominator date The BC Community Achievement Awards List the individuals who are providing a letter of support for the nomination. An independent group of community leaders will review the nominations For more information, please contact Item 5.4 are generously sponsored by Postmedia 3 Letter of Support 1 Network, Canada’s largest publisher of and select approximately 30 award recipients. In its evaluation, the Name (Mr./Mrs./ms./miss/dr.) Tel: 604.261.9777 or Toll Free: 1.866.882.6088 Email: [email protected] paid English language daily newspapers, Advisory Council will consider the nominee’s contribution and Title and organization (if applicable) Website: www.bcachievement.com whose strong presence in BC includes commitment to the community as well as the nominee’s length of service city/town/province/postal code The Vancouver Sun, The Province, The and community impact. Please note that it is the responsibility of the

Times-Colonist and numerous community daytime telephone nominator to ensure that the nomination is complete newspapers throughout the province. What do the award recipients receive? including the receipt of support letters by the deadline. address All material received will be kept confidential. In the Spring, recipients will attend a formal ceremony at Government House in Victoria where the Lieutenant Governor and the Premier of British Privacy Policy How long have you known the nominee? Columbia will present the recipients with the British Columbia Community The British Columbia Achievement Foundation Achievement Medallion, a special commemorative medallion designed by 4 Letter of Support 2 is committed to protecting the privacy of people renowned BC artist, Robert Davidson. Name (Mr./Mrs./ms./miss/dr.) through responsible management of information received. Nominations are confidential between Title and organization (if applicable) Cultural hero, spirited, the nominator and the Awards program. undaunted, fearless, bold city/town/province/postal code Raising our awareness to You may view the complete privacy policy at a higher understanding d ay t i m e t e l e p ho n e www.bcachievement.com or by calling the office for a copy. - Robert Davidson address

BC Community Achievement Awards Generously sponsored by Tel: 604.261.9777 or Toll Free: 1.866.882.6088 How long have you known the nominee? Email: [email protected] Website: www.bcachievement.com Item 6.1

WHEREAS, the week of October 4th to 8th has been designated in British Columbia as “Mental Health & Addictions Awareness Week” and in recognition thereof, communities throughout the Province are actively participating in this event;

AND WHEREAS, the extent of Mental Health and Addictions issues today contributes significantly to wide-ranging and serious problems for many individuals, families, businesses and communities;

AND WHEREAS, it is desirable that governments, at all levels, work co-operatively with community groups to increase public awareness concerning Mental Health & Addictions issues and to support and encourage initiatives to promote healthier lifestyles;

NOW THEREFORE, I do hereby proclaim October 4th to 8th as

Mental Health & Addictions Awareness week in Dawson Creek

Mayor

Regular Council 04 Oct 2010 Page 27 of 146 Item 6.3

Regular Council 04 Oct 2010 Page 28 of 146 Item 7.1

REPORT TO COUNCIL

DATE: September 28, 2010 REPORT NO.: ADM 10-144

SUBMITTED BY: Brenda Ginter FILE NO.: Agreement File Director of Corporate Administration

SUBJECT: Water Reclamation Facility Agreement – Elector Approval

PURPOSE To provide the results from the alternate approval process for the water reclamation facility agreement.

SUMMARY/BACKGROUND On August 30th, the alternate approval process was chosen as the method to obtain the approval of the electors for the water reclamation facility agreement.

The required notices were published, and information regarding the project was provided on the City’s webpage, through a town hall meeting, through television and radio interviews and through news articles in the local newspapers. Elector response forms were available at City hall and could also be downloaded from the City’s website.

The deadline for elector responses regarding the water reclamation facility agreement was 4:30 pm on Monday, September 27th.

The total responses received were as follows: Forms submitted 129 Forms disqualified upon receipt - due to the address listed 18 being outside of the City of Dawson Creek Total Number of Forms received 111

Due to the low number of responses received (1.5% of eligible electors), administration staff was advised not to spend time reviewing the forms to confirm elector eligibility.

With less than 10% of eligible elector response forms being received before the deadline, it is determined and certified that elector approval for the Water Reclamation Facility Agreement has been obtained. Council is now able to consider entering into the agreement with Shell. The proposed agreement is attached to this report for Council’s review.

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Report re: Water Reclamation Facility Agreement – Elector Approval Page 2 of 3

ALTERNATIVES As elector approval has been received, Council may choose whether or not to approve entering into the water reclamation facility agreement with Shell.

IMPLICATIONS (1) Social N/A

(2) Environmental Once the reclaimed water plant is operational, provision of potable water to the oil and gas industry and the amount of water drawn from the Kiskatinaw River by the City will be significantly reduced.

(3) Personnel N/A (4) Financial The City will incur a 9.75M liability of a capital nature which will be repaid over the term of the agreement by the supply value of reclaimed water.

GUIDING PRINCIPLES Creativity - We will foster a culture of creativity, innovation, and learning by supporting risk taking and challenging conventional practices.

Health - We will optimize opportunities for healthy living by developing an environment free from undue risk.

Modern Economy - We will strengthen the community’s economic vitality by honouring small and big business partnerships and contributions and focusing on and promoting the opportunities for economic development that are inherent in our community and region.

The Environment - We will demonstrate respect for the future of the earth by fostering recycling, reuse and reduced consumption and advocating for the preservation of clean air, clean water and healthy land.

STRATEGIC PRIORITIES The Effluent Reuse Project is the number one strategic priority of the Public Works Department.

IMPLEMENTATION/COMMUNICATION Following approval from Council, the Mayor and Director of Corporate Administration will be able to execute the water reclamation facility agreement with Shell Canada Upstream. City staff will work with Shell in efforts to have the facility completed and operational before the end of 2011.

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Report re: Water Reclamation Facility Agreement – Elector Approval Page 3 of 3

RECOMMENDATION That Report No. ADM 10-144 from the Director of Corporate Administration re: Water Reclamation Facility Agreement – Elector Approval be received; further, that as the Director of Corporate Administration has determined and certified that elector approval has been obtained, that Council approve entering into the Water Reclamation Facility Agreement between the City of Dawson Creek and Shell Canada Upstream.

Respectfully submitted,

APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY

Brenda Ginter Director of Corporate Administration

BG/cf

Enclosure: Draft Water Reclamation Facility Agreement

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CONSTRUCTION AND SUPPLY AGREEMENT DRAFT – AUGUST 17, 2010

THE CITY OF DAWSON CREEK

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SHELL CANADA UPSTREAM

REGARDING THE CONSTRUCTION OF CERTAIN

MUNICIPAL WASTE WATER TREATMENT FACILITIES

AND THE SUPPLY OF RECLAIMED WATER THEREFROM

Dated as of the ___ day of ______, 2010

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TABLE OF CONTENTS

Page

ARTICLE 1 DEFINITIONS AND INTERPRETATION ...... 1 1.1 Definitions ...... 1 1.2 Schedules ...... 2 1.3 Interpretation...... 2 ARTICLE 2 CITY FACILITIES AND REIMBURSABLE COSTS ...... 3 2.1 Construction of the City Facilities ...... 3 2.2 Construction Liaison...... 4 2.3 Required Approvals ...... 4 2.4 Progress Meetings...... 5 2.5 Title to City Facilities ...... 5 2.6 Books and Records ...... 5 2.7 Reimbursable Costs ...... 5 2.8 MOE License Amendment Requirements ...... 6 2.9 Tendered Costs ...... 6 2.10 Termination and Reimbursable Costs...... 6 ARTICLE 3 OPERATION OF THE CITY FACILITIES...... 7 3.1 Operator ...... 7 3.2 Expenses ...... 7 3.3 Operations Meetings...... 7 3.4 Operations Liaison...... 7 3.5 Audit ...... 7 ARTICLE 4 THE SHELL FACILITIES ...... 8 4.1 Lands for Shell Facilities ...... 8 4.2 Permits and Authorizations...... 8 4.3 Subdivision, Utilities and Road Access...... 8 4.4 Operatorship of Shell Facilities ...... 8 4.5 Other Lease Terms...... 8 4.6 Lease Area Condition ...... 9 4.7 End of Term...... 10 4.8 Quiet Enjoyment...... 10 4.9 Shell Investigations & Construction License...... 10 ARTICLE 5 SUPPLY OF RECLAIMED WATER ...... 11 5.1 Volume and Rate ...... 11 5.2 Consideration...... 11 5.3 Estimated Annual Volumes ...... 11 5.4 Nomination of Volumes...... 11 5.5 Delivery Points ...... 11 5.6 Title and Risk...... 12 5.7 First Priority to Reclaimed Water...... 12 5.8 Surplus Reclaimed Water ...... 12 5.9 Use of Reclaimed Water ...... 12 5.10 Taxes...... 13

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TABLE OF CONTENTS (continued) Page

ARTICLE 6 RECLAIMED WATER SPECIFICATIONS AND TESTING ...... 13 6.1 Reclaimed Water Specifications...... 13 6.2 City Testing and Reporting...... 13 6.3 Notification re: Reclaimed Water Not Meeting Specifications ...... 13 ARTICLE 7 PLANNED SHUTDOWNS /INABILITY TO TAKE...... 14 7.1 Planned Shutdown ...... 14 7.2 Inability to Take...... 14 ARTICLE 8 SHELL'S REPRESENTATIONS AND WARRANTIES...... 14 8.1 Shell's Representations and Warranties ...... 14 8.2 Survival of Shell's Representations and Warranties ...... 15 ARTICLE 9 CITY'S REPRESENTATIONS AND WARRANTIES...... 15 9.1 City’s Representations and Warranties...... 15 9.2 Survival of The City's Representations and Warranties...... 16 ARTICLE 10 LIABILITY AND INDEMNITY...... 16 10.1 City Liability...... 16 10.2 Shell Liability ...... 17 10.3 City Liability...... 17 10.4 Consequential Loss...... 17 10.5 Environmental Pollution ...... 18 ARTICLE 11 INSURANCE...... 18 11.1 City’s Insurance ...... 18 11.2 Construction Insurance ...... 19 11.3 Design Professional Insurance...... 19 11.4 Other Insurance...... 19 11.5 Notice of Cancellation ...... 19 11.6 City Assistance ...... 19 11.7 Shell Assistance ...... 20 11.8 Deductible...... 20 11.9 Certificates of Insurance ...... 20 11.10 Insurance Does Not Affect Obligations...... 20 ARTICLE 12 DEFAULT ...... 20 12.1 Events of Default ...... 20 12.2 Notice of Default ...... 21 12.3 Remedies on Default...... 21 12.4 Substantial Damage or Destruction of City Facilities...... 22 ARTICLE 13 TERM AND TERMINATION ...... 22 13.1 Term...... 22 13.2 Future Supplies ...... 22 13.3 Termination by Shell ...... 23 13.4 Survival...... 23

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TABLE OF CONTENTS (continued) Page

ARTICLE 14 DISPUTE RESOLUTION ...... 23 14.1 Dispute Resolution...... 23 14.2 Continued Performance During Dispute...... 24 ARTICLE 15 NOTICES...... 24 15.1 Notices ...... 24 15.2 Addresses for Notices ...... 24 ARTICLE 16 ASSIGNMENT...... 25 16.1 Assignment by the City...... 25 16.2 Assignment by Shell ...... 25 ARTICLE 17 MISCELLANEOUS ...... 25 17.1 City Powers...... 25 17.2 Waiver...... 26 17.3 Further Assurances ...... 26 17.4 Governing Law; Attornment...... 26 17.5 Press Releases...... 26 17.6 Amendments ...... 26 17.7 Enurement...... 26 17.8 Time of the Essence...... 26 17.9 Invalidity of Provisions...... 27 17.10 Relationship of Parties...... 27 17.11 Counterpart Execution ...... 27 17.12 Compliance with Law...... 27 17.13 Shell General Business Principles ...... 27 17.14 Excused Non-Performance/Force Majeure...... 27

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SCHEDULES

Schedule "A" - Definitions Schedule "B" - Design Basis Schedule "C" - Cost Estimate Schedule "D" - Shell Facilities Lands Schedule "E" - Reclaimed Water Specifications Schedule "F" - Reclaimed Water Testing Requirements Schedule "G" - Delivery Point Diagram

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RECLAIMED WATER FACILITY - CONSTRUCTION AND SUPPLY AGREEMENT

THIS AGREEMENT is made effective as of the _____ day of , 2010

BETWEEN:

THE CITY OF DAWSON CREEK, a municipal corporation under the laws of the Province of British Columbia, (the "City");

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SHELL CANADA UPSTREAM, a partnership formed under the laws of the Province of Alberta, and having an office in the City of Calgary, in the Province of Alberta ("Shell")

WHEREAS the City is the owner and operator of municipal wastewater treatment facilities located in the City of Dawson Creek; and

WHEREAS Shell is a petroleum and natural gas producer with operations in the Province of British Columbia and elsewhere; and

WHEREAS the City proposes to expand its wastewater treatment facilities by constructing the City Facilities; and

WHEREAS Shell proposes to fund the cost of constructing the City Facilities, up to a total of $9,750,000.00;

WHEREAS the City has agreed to supply volumes of Reclaimed Water produced by the City Facilities to Shell;

WHEREAS in accordance with the requirements of the Community Charter, the City has given notice of its intention to lease land to Shell as contemplated under this Agreement; and

WHEREAS this Agreement has received the “approval of the electors” by way of an “alternative approval process” under the Community Charter.

NOW THEREFORE THIS AGREEMENT WITNESSES THAT, in consideration of the premises and of the payments, mutual covenants and agreements set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is acknowledged by each of the Parties, the Parties agree as follows:

ARTICLE 1 DEFINITIONS AND INTERPRETATION

1.1 Definitions

Capitalized terms and expressions used in this Agreement, but not otherwise defined in the body of this Agreement, shall have the respective meanings given to them in Schedule "A".

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1.2 Schedules

The following schedules are attached to and made a part of this Agreement:

Schedule "A" – Definitions Schedule "B" – Design Basis Schedule "C" – Cost Estimate Schedule "D" – Shell Facilities Lands Schedule "E" – Reclaimed Water Specifications Schedule "F" – Reclaimed Water Testing Requirements Schedule "G" – Delivery Point Diagram

1.3 Interpretation

(a) Headings; Table of Contents

The insertion of headings into this Agreement and the inclusion of a Table of Contents within this Agreement are for convenience of reference only and shall not affect the meaning, interpretation or construction of any provision of this Agreement.

(b) Gender; Number

Whenever a term or expression importing the singular is used in this Agreement it shall be construed to include the plural form of such term or expression and vice versa; and whenever a term or expression importing the masculine gender is used in this Agreement it shall be construed to include the feminine form of such term or expression and vice versa; in each case, as the context requires.

Any reference in this Agreement to an "Article", "Section" or "Schedule" shall mean an article, section or schedule of this Agreement. The division of this Agreement and the Schedules into Articles, Sections and other sub-divisions is for convenience of reference only and shall not affect the meaning, interpretation or construction of any provision of this Agreement.

(d) Use of "Including"

The use of "including" or "includes" or similar words in this Agreement, when following any general statement, term or matter, is not to be construed to limit such general statement, term or matter to the specific items immediately following such word to those or similar items, whether or not non-limiting language (such as "without limitation" or "but not limited to" or words of similar import) is used, but rather, such references shall be construed to refer to all items that could reasonably fall within the broadest possible scope of such general statement, term or matter.

(e) References to Time

Any reference in this Agreement to any particular time shall mean the local time in Dawson Creek, British Columbia on the relevant day.

(f) References to "day", "month" or "year"

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Any reference in this Agreement to a "day", a "month" or a "year" shall mean a calendar day, month or year as the case may be, unless the contrary is specified or provided for elsewhere in this Agreement.

(g) Monetary References

Any reference to a monetary amount in this Agreement, including the use of the term "Dollar" or the symbol "$", shall mean the lawful currency of Canada unless the contrary is specified or provided for elsewhere in this Agreement.

(h) Use of Derivative Terms

If a derivative of a term or expression that is specifically defined in this Agreement is used in this Agreement, then such derivative shall have a meaning that corresponds to the applicable defined term or expression.

(i) Statutory and Other References

Any reference in this Agreement to a law, statute, regulation, rule, by-law or other requirement of law or any governmental consent, approval, permit or other authorization shall be deemed to refer to such law, statute, regulation, rule, by-law or other requirement of law or such governmental consent, approval, permit or other authorization as it has been amended, supplemented, re- enacted, varied, amended or otherwise modified or replaced from time to time up to the applicable time, unless the contrary is specified or provided for elsewhere in this Agreement.

(j) Contractual References

Any reference in this Agreement to another contract, agreement, instrument or other document shall be deemed to refer to such contract, agreement instrument or other document as it has been amended, modified replaced or supplemented from time to time up to the applicable time, unless the contrary is specified or provided for elsewhere in this Agreement.

(k) Conflicts

If a term or provision contained in the body of this Agreement conflicts or is inconsistent with a term or provision contained in any Schedule, then the term or provision in the body of this Agreement shall prevail to the extent of such conflict or inconsistency. If a term or provision contained in one Schedule conflicts or is inconsistent with a term or provision contained in another Schedule, then the term or provision in the first appearing of those Schedules shall prevail to the extent of such conflict or inconsistency.

ARTICLE 2 CITY FACILITIES AND REIMBURSABLE COSTS

2.1 Construction of the City Facilities

(a) The City shall engage a firm to design the City Facilities in accordance with the Design Basis. The City shall forward the drawings and specifications prepared for the City Facilities to Shell for Shell review and approval. For clarity, each of Shell and the City shall be responsible for satisfying itself with the design of the City Facilities, and neither shall rely on the other in that regard. Once drawings and specifications for the City Facilities have been approved in writing

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by both the City and Shell, they shall constitute the “Approved Design” and be referenced as such herein.

(b) The City shall procure, construct and install the City Facilities and commission test and start-up the City Facilities, or cause same to be procured, constructed, installed, commissioned, tested and started-up, in accordance with the Approved Design.

(c) Without limiting paragraphs (a) and (e) of this Section, the City shall consult with Shell regarding all designs, plans, specifications, and regulatory applications for the City Facilities, including material modifications or variances thereto.

(d) The City shall ensure that the Project shall be completed in accordance with Applicable Law and Good Industry Practice.

(e) The City shall obtain the prior approval of Shell for any material modifications or variations to the City Facilities from the designs and parameters set forth in the Approved Design, which approval shall not be withheld unreasonably. All such modifications or variations shall be made in accordance with Good Industry Practice.

(f) The City shall use commercially reasonable efforts (which shall include but not be limited to allocating manpower and priority to the effort) to ensure that the Project is in all respects completed and the City Facilities are otherwise ready to be placed into service on or before the Target In-Service Date.

(g) The City shall be responsible for obtaining and maintaining all Required Approvals, and shall use all reasonable efforts to do so.

(h) The City shall be responsible to ensure that the City Facilities are procured, constructed, installed, commissioned, tested and started-up so as to be able to supply the Reclaimed Water to Shell as set out herein.

2.2 Construction Liaison

The Parties shall each appoint, by no later than 10 days following the execution of this Agreement, a representative for the purpose of facilitating the implementation and day-to-day operation of the Project and the reimbursement of Reimbursable Costs (the “Construction Liaison”) in accordance with this Agreement and the Parties shall each promptly inform the other of the Construction Liaison’s identity and contact details. A Party may change its Construction Liaison and where a new Construction Liaison is appointed the relevant Party shall promptly inform the other Party of the new Construction Liaison’s identity and contact details.

2.3 Required Approvals

Shell shall take all reasonable steps and provide all reasonable assistance to the City to ensure that any Required Approvals are obtained in as timely a manner as possible and are maintained during the Term.

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2.4 Progress Meetings

During the period from the date of this Agreement to the In-Service Date, appropriate representatives of the Parties shall meet, at a minimum, once every month in order to discuss the progress toward the completion of the Project, including, as applicable, any update to the estimates of the time and costs required to complete the Project.

2.5 Title to City Facilities

For the avoidance of doubt, Shell shall acquire no interest in the City Facilities under or by virtue of this Agreement and, as between the parties, title to the City Facilities shall vest in, and at all times remain with, the City.

2.6 Books and Records

(a) The City shall keep and maintain accurate books and records with respect to the Project.

(b) The City shall provide Shell with such documents and information relating to the Project as Shell may reasonably request from time to time.

2.7 Reimbursable Costs

(a) Shell shall, in accordance with the methodology set out in this Section, reimburse the City all Reimbursable Costs arising from the Project, up to a total of $9,750,000.00.

(b) The cost estimate for the Project is attached hereto as Schedule “C” (the “Cost Estimate”). If the City incurs or expects to incur Reimbursable Costs with respect to any line item in the Cost Estimate which would exceed by more than 10% the cost set out in such line item, the City shall advise Shell of such actual or expected over-expenditure, the City's explanation therefore and the City's revised estimate of the cost of such line item. The City thereafter shall provide estimates of current and cumulative costs incurred with respect to such line item.

(c) The City shall provide to Shell, within 10 days of the end of each month, an invoice for Reimbursable Costs incurred during such month, together with a detailed report that identifies the nature of the Reimbursable Costs incurred and the line item in the Cost Estimate that such Reimbursable Costs relate to. Shell shall pay such invoices within 30 days of receipt.

(d) The City may, by notice to Shell, require Shell to advance amounts on account of Reimbursable Costs by providing, not earlier than 45 days prior to the first day of a calendar month, an itemized written estimate of the Reimbursable Costs which are expected to be paid by the City in that calendar month, together with an explanation as to the line item in the Cost Estimate that such Reimbursable Costs relate to. Shell shall advance such amount to the City within 30 days of receipt of such notice. The City shall adjust each monthly invoice to reflect such advances received from Shell hereunder. Reimbursable Costs in excess of the advances requested hereunder shall be billed and paid by Shell as set out in Section 2.7(c) hereof. Amounts advanced by Shell in excess of actual costs shall be credited by the City against other or future Reimbursable Costs for which Shell may be liable hereunder, provided that if upon completion

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of the Project there are advanced funds in excess of any Reimbursable Costs payable to the City, the City shall return such amounts to Shell forthwith.

(e) Questions by Shell related to invoices, requests for advance amounts or reports submitted by the City pursuant to this Section shall be responded to by the City within 7 days of receipt by the City. In the event that the City agrees that any invoice or report requires adjustment, such adjustment shall be made by the City within 30 days after agreement to the adjustment by the parties. Payment of any invoice or request for advance payment by Shell shall not prejudice the right of Shell to protest or question the correctness thereof.

(f) For clarity, the intent of this Section is in part to ensure timely payment by Shell to the City so that the City is able to pay Reimbursable Costs using Shell’s funds before the City is obligated to use any of its funds for that purpose and Shell shall cooperate and act reasonably with a view to achieving that purpose and agrees that modifications to the process set out in this Section may be from time to time necessary to achieve that purpose. Provided however, that nothing in this Section 2.7 shall in any way result in Shell being obligated to reimburse the City for Reimbursable Costs in excess of a total cumulative amount of $9,750,000.00.

2.8 MOE License Amendment Requirements

If, following the issuance by the BC Ministry of Environment of the contemplated amendment to the City’s municipal wastewater treatment facility license in connection with the City Facilities and Shell’s proposed use of Reclaimed Water for oil & gas well drilling and completions, the City determines, acting reasonably based on the advice of its consultants, that the then current estimate of the costs and expenses to be incurred by the City in connection with the Project, as revised to reflect additional costs and expenses associated with meeting and otherwise complying with the terms of the license amendment, exceed $11,500,000.00, then following a thirty (30) day consultation period with Shell, the City may terminate this Agreement upon notice to Shell.

For every 30 days after October 1, 2010 that the foregoing license amendment has not been issued, the Target In-Service Date shall be extended by 30 days. If the foregoing license amendment is not issued on or before September 1, 2011, then following a thirty (30) day consultation period between the Parties, either Party may terminate this Agreement upon notice to the other Party.

2.9 Tendered Costs

If, based on the tenders received in response to a call for tenders issued by the City for a general contractor to construct the Project, the City determines, acting reasonably based on the advice of its consultants, that the then current estimate of the costs and expenses to be incurred by the City in connection with the Project, as revised to reflect the preferred tender, exceeds $11,500,000.00, then following a thirty (30) day consultation period with Shell, the City may terminate this Agreement upon notice to Shell.

2.10 Termination and Reimbursable Costs

For clarity, Shell shall be responsible for, in accordance with Section 2., Reimbursable Costs incurred by the City prior to the date of a termination under section 2.8, 2.9 or 4.9. To the extent that any Reimbursable Costs incurred by the City and paid by Shell prior to such termination are refundable to the City by the person to whom the costs were paid (such as a refundable deposit paid for long-lead time materials or equipment), the City shall use reasonable efforts to obtain such refund and shall repay any refunded amount to Shell.

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ARTICLE 3 OPERATION OF THE CITY FACILITIES

3.1 Operator

The City shall be the operator of the City Facilities and shall ensure that the City Facilities are operated, maintained and repaired consistently with Good Industry Practice. The City’s duties to operate the City Facilities shall be limited to operating, maintaining and repairing the City Facilities and the City shall have no obligations to improve the City Facilities in the event this proves necessary for any reason in order for the City Facilities to supply the volume of Reclaimed Water required by Shell under this Agreement or for the City Facilities to supply Reclaimed Water that meets the Reclaimed Water Specifications (except where such improvement is made necessary due to a failure by the City to procure, construct, install, commission, test, start-up, operate, maintain or repair the City Facilities in accordance with this Agreement.

3.2 Expenses

Shell shall have no responsibility to pay any costs and expenses of any kind associated with the operation of the City Facilities or otherwise with respect to the City Facilities after the In-Service Date, and for the avoidance of doubt, no part of such costs and expenses shall be recoverable from Shell.

3.3 Operations Meetings

Shell and the City shall meet in the first month of each quarter of each year after the In- Service Date to:

(a) Review operating issues arising out of the performance of this Agreement;

(b) Consider revisions to any planned shutdown and maintenance programs; and

(c) Review any other matters which may affect the ability of either the City or Shell to carry out any of its obligations under the Agreement.

3.4 Operations Liaison

Shell and the City shall each appoint, by no later than 10 days following the In-Service Date, a representative for the purpose of facilitating the implementation and day-to-day operation of this Agreement (the “Operations Liaison”) and Shell and the City shall each promptly inform the other of the Operation Liaison’s identity and contact details. A Party may change its Operations Liaison and where a new Operations Liaison is appointed the relevant Party shall promptly inform the other Party of the new Operations Liaison’s identity and contact details.

3.5 Audit

Shell shall have the right to audit the books, records and operations of the City relating to the operation of the City Facilities.

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ARTICLE 4 THE SHELL FACILITIES

4.1 Lands for Shell Facilities

The City shall, on the terms of this Article 4, lease the lands adjacent to the City Facilities outlined in red on the plan attached hereto as Schedule “D” (the “Lease Area”) to Shell for the purposes of constructing, operating and maintaining the Shell Facilities for a sum equal $10.00 per annum (the “rent”) payable on the first day of each year of the Term, for the duration of the Term (the “Lease”).

4.2 Permits and Authorizations

The City shall take all reasonable steps and provide all reasonable assistance to Shell to ensure that any permits, authorizations, approvals or licenses under any Applicable Law (other than permits, authorizations, approvals and licenses under any Applicable Law of the City which shall, in accordance with section 17.1, shall be dealt with in accordance with normal City processes and discretion) required for the Shell Facilities, the Downstream Shell Facilities or for Shell’s proposed uses of the Reclaimed Water for oil & gas well drilling and completions are obtained in as timely a manner as possible. For greater certainty, the City shall include Shell’s proposed use of the Reclaimed Water for oil & gas well drilling and completions in its application to the BC Ministry of Environment for an amendment to its municipal wastewater treatment facility license.

4.3 Subdivision, Utilities and Road Access

The City shall take all reasonable steps to ensure that water service, and road access, is provided to the Lease Area in as timely a manner as possible. Shell shall be responsible for extending any other utilities (including sewer) to the Lease Area and for extending any utilities (including sewer and water) from the boundary of the Lease Area to the Shell Facilities. Shell shall otherwise be responsible for any and all costs associated with the leasehold subdivision of the City lands to create the Lease Area as a parcel and for obtaining all government approvals required in connection with such subdivision, including the preparation and approval of a registrable plan in the event Shell wishes to register the Lease in the Land Title Act.

4.4 Operatorship of Shell Facilities

Shell shall operate the Shell Facilities and shall pay all costs and expenses of every kind (including, without limitation, capital and operating expenses and applicable property taxes) associated with the Shell Facilities and the Lease Area.

4.5 Other Lease Terms

As terms of the Lease and the license granted under section 4.9,, Shell covenants and agrees with the City to:

(a) promptly pay, when due, rent and any other amounts required to be paid by it under the Lease;

(b) not do, suffer or permit any thing in, on or from the Lease Area that may be or become a nuisance to the owners, occupiers or users of land or premises adjacent to or near the Lease Area or to the public;

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(c) not do, suffer or permit any act or neglect that may in any manner directly or indirectly cause injury to the Lease Area;

(d) use the Lease Area only for the purposes set out in this Article 4;

(e) keep the Lease Area in a safe, tidy and sanitary condition;

(f) take all reasonable precautions to ensure the safety of all persons using the Lease Area;

(g) keep the Lease Area free of any rubbish, litter and debris and keep the areas adjacent to the Lease Area free of any rubbish, litter and debris originating from the Lease Area;

(h) pay to the Landlord all GST/HST payable in respect of the Lease;

(i) carry on and conduct its activities in, on and from the Lease Area in compliance with Applicable Law, and to obtain all required approvals and permits thereunder, and not to do or omit to do anything in, on or from the Lease Area in contravention thereof;

(j) promptly discharge any builders lien which may be filed against the title to the Land comprising the Lease Area or that might otherwise affect the Lease Area or the land comprising the Leas Area, and to comply at all times with the Builders Lien Act (British Columbia), in respect of any improvements, work or other activities undertaken in, on or to the Lease Area; and

(k) carry the following insurance with respect to its use of and activities on the Lease Area:

(i) Workers’ Compensation coverage as required by Applicable Law;

(ii) Commercial General Liability Insurance written on an “occurrence” basis (including non- owned automobile, products and completed operations, manufacturers and contractors liability, contractual liability, contractors protective liability and pollution liability) with a combined single limit of no less than $5,000,000.00 for each occurrence involving bodily injury, death or property damage;

and Sections 11.5 to 11.10 shall apply to the insurance required under this Section with each reference therein to “Shell” and to “the City” being changed to, respectively, “the City” and “Shell” for the purpose of applying those Sections to Shell’s insurance obligations under this Section.

4.6 Lease Area Condition

Shell acknowledges and agrees that:

(a) Except for Section 4.8, the City has given no representations or warranties with respect to the Lease Area, including with respect to the suitability of the Lease Area for Shell’s intended use of the Lease Area;

(b) Shell leases the Lease Area on an “as-is” basis and the City has not made any representations, warranties or agreements as to the condition of the Lease Area (including the subsurface nature or condition of the Lease Area or the environmental condition of the Lease Area);

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(c) it is the sole responsibility of Shell to satisfy itself with respect to the condition of the Lease Area (including the subsurface nature or condition of the Lease Area and the environmental condition of the Lease Area), including by conducting any reports, tests, investigations, studies, audits and other inquiries as Shell, in its sole discretion, considers necessary in order to satisfy itself as to the condition of the Lease Area; and

(d) the City may register a Builders Lien Act “notice of interest” against title to the land comprising the Lease Area in the land title office.

4.7 End of Term

If requested by written notice provided by the City, at the end of the Term or earlier termination of this Agreement Shell shall decommission and remove the Shell Facilities and reclaim the Lease Area to a condition substantially similar to the condition of the lease site prior to the construction of the Shell Facilities and, regardless of whether such a written request is made, at the end of the Term or earlier termination of this Agreement Shell shall remove from on or under the Lease Area any environmental contamination arising during the Term or as a result Shell’s occupancy of the Lease Area or the activities of Shell or Shell Representatives within the Lease Area during the currency of this Agreement (including prior to the commencement of the Term).

4.8 Quiet Enjoyment

The City warrants that it has good title to the Lease Area, has full power to grant and lease the Lease Area, and that Shell, upon observing and performing the promises on Shell’s part, shall peaceably possess and enjoy the Lease Area and the rights granted during the term of the Lease and any renewal without any disturbance or interruption from the City.

4.9 Shell Investigations & Construction License

Shell may enter upon the Lease Area from time to time prior to the commencement of the Term, at Shell’s sole risk and expense, for the purpose of making inspections, surveys, tests and studies of the Lease Area and for the purpose of constructing and installing the Shell Facilities. If, on or before ______, 2010, Shell is not satisfied with the results of its investigations into the environmental condition of the Lease Area such that Shell considers the necessary remediation costs of the Lease Area or the risks involved therewith to be excessive, Shell may, after a thirty (30) day consultation period between the Parties, terminate this Agreement upon notice to the City. In consideration of $1.00 non- refundable paid by Shell to the City and other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the City, this Agreement shall be binding on the Parties while it remains subject to this paragraph. Shell shall provide the City with copies of all investigation reports and test results it conducts with respect to the Lease Area.

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ARTICLE 5 SUPPLY OF RECLAIMED WATER

5.1 Volume and Rate

Commencing on the In-Service Date, and for the Term of this Agreement, the City shall supply to Shell the amount of Reclaimed Water nominated by Shell pursuant to Section 5.4 hereof, which volume shall not exceed 3,400 m3 per day, delivered at a steady rate which shall not exceed 175 m3 per hour.

5.2 Consideration

The entire consideration to be paid by Shell for the supply of the Reclaimed Water set out in Section 5.1 hereof and the grant of the Lease for nominal rent under Section 4.1 hereof is the reimbursement of the Reimbursable Costs by Shell as set out in Section 2.7 hereof. There shall be no additional cost, fee or charge of any kind to Shell for the supply of the Reclaimed Water pursuant to Section 5.1 hereof.

5.3 Estimated Annual Volumes

(a) By no later than 90 days before the first day of each year of the Term, the City shall provide to Shell a non-binding estimate of the average volume of Reclaimed Water it expects to produce from the City Facilities for each month in the year.

(b) By no later than 60 days before the first day of each year of the Term, Shell shall provide to the City a non-binding estimate of the volume of Reclaimed Water it expects to nominate for each month of the year.

5.4 Nomination of Volumes

By no later than 30 days before the first day of each month, Shell shall nominate, by way of notice to the City, the quantity of Reclaimed Water it requires the City to supply in such month at each Delivery Point.

5.5 Delivery Points

(a) The Delivery Point for the Reclaimed Water shall, at Shell’s sole discretion, either be the custody transfer meter located immediately upstream of the Shell Facilities identified as point “A” on Schedule “G” attached hereto or the point where the Reclaimed Water leaves the truck loading rack located at the City Facilities.

(b) The Reclaimed Water to be delivered by the City under this Agreement shall be delivered to Shell at the Delivery Point(s) specified in the monthly nominations provided by Shell under Section 5.4 hereof.

(c) The volume of Reclaimed Water nominated for delivery at the truck loading rack located on the City Facilities shall not exceed 150 m3 per day.

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5.6 Title and Risk

Title to, and risk of loss of, or damage to, the Reclaimed Water delivered under this Agreement shall pass from the City to Shell at the Delivery Point.

5.7 First Priority to Reclaimed Water

Shell shall have first priority, in advance of any other Person, to any Reclaimed Water produced by the City in any month up to the volume nominated by Shell pursuant to Section 5.4 hereof.

5.8 Surplus Reclaimed Water

(a) In the event that the City produces, or expects to produce, more than 4,500 m3 of Reclaimed Water per day, the City shall notify Shell of the quantity of Reclaimed Water in excess of 4,500 m3 per day that it produces or expects to produce, and Shell shall have the option, exercisable upon notice to the City, to take up to 50% of the volume of Reclaimed Water over 4,500 m3 per day. The amount payable by Shell for such supply shall be equal to 50% of the City’s rate applicable to non-potable uses of water supplied through the City’s water supply service as amended from time to time. This paragraph shall not apply to the extent that the Reclaimed Water production capacity of the City Facilities is increased as a result of improvements to the City Facilities made by the City subsequent to the construction of the City Facilities contemplated under this Agreement.

(b) In the event that the City is from time to time unable to use, sell, or store any Reclaimed Water produced by the City Facilities which the City has the right to use, sell or otherwise dispose of, the City shall offer such Reclaimed Water to Shell and Shell shall have the option to take such Reclaimed Water. The amount payable by Shell for such supply shall be equal to 50% of the City’s rate applicable to non-potable uses of water supplied through the City’s water supply service as amended from time to time. This paragraph shall not apply to the extent that the Reclaimed Water production capacity of the City Facilities is increased as a result of improvements to the City Facilities made by the City subsequent to the construction of the City Facilities contemplated under this Agreement.

(c) The City shall use best efforts to provide the earliest reasonable notice to Shell in the circumstances set out in Section 5.8 (a) and (b), with a view to providing Shell sufficient time to make arrangements to take any Reclaimed Water available to it pursuant to Section 5.8 (a) or (b).

(d) For clarity, the amount payable by Shell for under Section 5.8 (a) and (b) shall be adjusted from time to time to reflect changes from time to time to the applicable City rate.

5.9 Use of Reclaimed Water

For greater certainty, Shell shall be free to use, sell for its own account, or otherwise dispose of the Reclaimed Water supplied to it by the City pursuant to this Article as it may see fit, subject to Applicable Laws.

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5.10 Taxes

The City shall be responsible for paying any and all taxes levied or arising prior to the delivery of Reclaimed Water at the Delivery Point and payable in connection with the production of Reclaimed Water by the City under this Agreement. Shell shall be responsible for paying any and all taxes (including GST/HST) levied or arising after the delivery of Reclaimed Water at the Delivery Point and payable in connection with the supply of Reclaimed Water by the City to Shell under this Agreement or Shell’s use thereof and shall pay those taxes directly to the City if the City is required by Applicable Law to collect those taxes from Shell.

ARTICLE 6 RECLAIMED WATER SPECIFICATIONS AND TESTING

6.1 Reclaimed Water Specifications

The Reclaimed Water to be supplied by the City under this Agreement shall, at the Delivery Point, comply with the specifications set out in Schedule “E” attached hereto (the “Specifications”).

6.2 City Testing and Reporting

The City shall test the Reclaimed Water and provide a written report to Shell of all such testing results as set out in Schedule “F” attached hereto.

6.3 Notification re: Reclaimed Water Not Meeting Specifications

(a) The City shall notify Shell immediately after becoming aware of any failure or anticipated failure of the Reclaimed Water to meet the Specifications at the Delivery Point, giving details of the cause. The City shall take such actions as may be considered necessary within the City’s duties to operate, repair and maintain the City Facilities in accordance with this Agreement to remedy such failure, to the extent possible. If requested by Shell, the City shall consult with Shell respecting such action.

(b) In the event that Shell becomes aware of any failure of the Reclaimed Water to meet the Specifications at the Delivery Point, it shall notify the City immediately. The City shall take such actions as may be considered necessary within the City’s duties to operate, repair and maintain the City Facilities, in accordance with this Agreement, to remedy the effect of any such failure, to the extent possible. If requested by Shell, the City shall consult with Shell respecting such action.

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ARTICLE 7 PLANNED SHUTDOWNS /INABILITY TO TAKE

7.1 Planned Shutdown

The City shall notify Shell in writing 30 days in advance of any planned shutdown of the City Facilities and, in consultation and cooperation with Shell, shall take such reasonable steps as may be necessary to minimize the effect of any disruption of the supply of Reclaimed Water to Shell during such planned shutdown. For clarity, the City shall not be obligated to secure an alternate supply of water for Shell in such circumstances. Planned shutdown shall not exceed days per year.

7.2 Inability to Take

In the event that Shell does not require or is unable to take all or part of its nominated volumes of Reclaimed Water for any reason, Shell shall be entitled to unilaterally stop the flow of Reclaimed Water from the City Facilities to the Shell Facilities without prior notice. In such event, title to the Reclaimed Water that would have been delivered to Shell shall remain with the City, and the City shall be entitled to use or sell for its own account, or otherwise dispose of such Reclaimed Water. For greater certainty, Shell’s nominated volumes for the applicable month shall be reduced by the amount of Reclaimed Water not taken by Shell as set out in this section.

ARTICLE 8 SHELL'S REPRESENTATIONS AND WARRANTIES

8.1 Shell's Representations and Warranties

Shell represents and warrants to and in favour of the City that:

(a) Capacity, Standing and Authority:

(i) it is a partnership duly formed and subsisting under the laws of its jurisdiction of formation;

(ii) the execution and delivery of this Agreement and the completion of the transactions contemplated by this Agreement have been duly authorized by all necessary action on the part of it and its partners;

(iii) its managing partner has the power and capacity to enter into and deliver this Agreement; and it has the power and capacity to perform its obligations under this Agreement;

(b) Due Execution:

This Agreement has been duly executed and delivered by its managing partner and, if duly executed and delivered by the City, constitutes valid and binding obligations of Shell;

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The execution and delivery of, and performance of its obligations under, this Agreement and the completion of the transactions contemplated by this Agreement do not and will not:

(i) violate or result in a breach or default of, require any consent under, be in conflict with, or give a Third Party a right to terminate any agreement, licence, permit, franchise or other instrument to which it is a party or by which it is bound;

(ii) violate or conflict with its formation documents;

(d) No Claims Affecting Performance:

As of the date of this Agreement, it has not received notice of any Claim, and it is not aware of any Claim or potential Claim, actual or threatened, by or against it which prevents, impairs or otherwise negatively affects the ability of Shell to, or which could reasonably be expected to prevent, impair or otherwise negatively affect the ability of it to, perform its obligations under this Agreement;

8.2 Survival of Shell's Representations and Warranties

The representations and warranties of Shell in Section 8.1 are made and effective upon the date of this Agreement and, except if stated to be made as of a specific date, shall be continuing representations and warranties by Shell and shall survive and remain in full force and effect during the Term.

ARTICLE 9 CITY'S REPRESENTATIONS AND WARRANTIES

9.1 City’s Representations and Warranties

The City represents and warrants to and in favour of Shell that:

(a) Capacity, Standing and Authority:

(i) it is a municipal corporation duly incorporated and is subsisting under the laws of the Province of British Columbia;

(ii) the execution and delivery of this Agreement and the completion of the transactions contemplated by this Agreement have been duly authorized by all necessary action on its part; and

(iii) it has the power and capacity to enter into and deliver this Agreement and to perform its obligations under this Agreement;

(b) Due Execution:

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This Agreement has been duly executed and delivered by it and, if duly executed and delivered by Shell, constitutes valid and binding obligations of it;

The execution and delivery of, and the performance of the obligations to be performed by it under, this Agreement and the completion of the transactions contemplated by this Agreement do not and will not:

(i) violate or result in a breach or default of, require any consent under, be in conflict with, of or give a Third Party a right to terminate any agreement, license, permit, franchise or other instrument to which it is a party or by which it is bound; or

(ii) violate or conflict with any Applicable Law or any applicable authorization, licence or permit or its formation documents;

(d) No Claims Affecting Performance:

As of the date of this Agreement, it has not received notice of any Claim, and it is not aware of any Claim or potential Claim, actual or threatened, by or against it which prevents, impairs or otherwise negatively affects the ability of the City to, or which could reasonably be expected to prevent, impair or otherwise negatively affect the ability of it to, perform its obligations under this Agreement;

(e) Title:

The City will have good title to the Reclaimed Water to be supplied to Shell under this Agreement, free from all charges and/or other encumbrances, and will be able to pass title to the Reclaimed Water to Shell as contemplated under this Agreement.

9.2 Survival of The City's Representations and Warranties

The representations and warranties of the City in Section 9.1 are made and effective upon the date of this Agreement and, except if stated to be made as of a specific date, shall be continuing representations and warranties by the City and shall survive and remain in full force and effect during the Term.

ARTICLE 10 LIABILITY AND INDEMNITY

10.1 City Liability

The City shall be liable for and shall defend, indemnify and hold harmless Shell and Shell’s Representatives from and against all actions, injury, claims, liabilities, loss, damages, demands, penalties, fines, expenses (including legal expenses), costs, obligations and causes of action of every kind and nature whatsoever, in respect of:

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(a) loss or damage to the property of the City or the City’s Representatives, whether such property is owned, hired, leased or otherwise provided by the City or the City’s Representatives, arising from or relating to the performance of this Agreement; and

(b) personal injury, including death or disease to any person employed by the City or the City’s Representatives arising from or relating to the performance of this Agreement

except to the extent that such injury, loss or damage arises out of any negligence, act or omission of Shell or any of Shell’s Representatives.

10.2 Shell Liability

Shell shall be liable for and shall defend, indemnify and hold harmless the City and the City’s Representatives, and their respective directors, officers and employees from and against all actions, injury, claims, liabilities, loss, damages, demands, penalties, fines, expenses (including legal expenses), costs, obligations and causes of action of every kind and nature whatsoever, in respect of:

(a) loss or damage to the property of Shell, Shell’s Affiliates, and their respective directors, officers, employees and agents, whether owned, hired, leased or otherwise; and

(b) personal injury, including death or disease to any person employed by Shell or any Shell Affiliate arising from or relating to the performance of this Agreement

except to the extent that such injury, loss or damage arises out of any negligence, act or omission of the City or any of the City’s Representatives.

10.3 City Liability

In the event that the Reclaimed Water does not, for any reason, meet the Reclaimed Water Specifications at the Delivery Point or the City Facilities are for any reason unable to supply the volume of Reclaimed Water required by Shell pursuant to this Agreement or Reclaimed Water that meets the Reclaimed Water Specifications, in either case, on any single occasion or for any period of time, the City shall only be liable to Shell or its Affiliates to the extent that such failure is caused by a failure by the City to procure, construct, install, commission, test, start-up, operate, maintain or repair the City Facilities in accordance with this Agreement, or by any intentional breach of the City’s obligation to supply set out in Section 5.1. Without limiting the foregoing liability limit, under no circumstances shall the City be liable to Shell or any of its Affiliates where such failure arises from the design of the City Facilities, an Event of Force Majeure under Section 17.14 or any City bylaw that affects the quantity or quality of effluent flowing into the City System (the enactment of which shall not, for clarity, constitute an intentional breach of this Agreement). The limitation under this Section shall apply notwithstanding that the failure referred to in this Section might still constitute an Event of Default entitling Shell to exercise its rights of termination under this Agreement.

10.4 Consequential Loss

Without limiting Section 10.3, neither Party shall be liable to compensate or indemnify the other Party or its Affiliates for any indirect, consequential or punitive losses or damages, including loss of profit, loss of revenue, loss of use, loss of business, or loss of goodwill, even if same arises wholly or partly through the negligence or breach of this Agreement of such Party.

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10.5 Environmental Pollution

Shell shall be responsible for and shall indemnify and hold harmless the City from and against all actions, injury, claims, liabilities, loss, damages, demands, penalties, fines, expenses (including legal expenses), costs, obligations and causes of action of every kind and nature whatsoever in respect of environmental pollution on or caused by tangible assets, including premises (including the Lease Area but excluding any pre-existing environmental pollution on the Lease Area that existed prior to the construction of the Shell Facilities, which the City shall remain responsible for) and including Reclaimed Water supplied to Shell under this Agreement, used by or in the operations of Shell. In turn, the City shall be responsible for and shall indemnify and hold harmless Shell and Shell’s Representatives against all actions, injury, claims, liabilities, loss, damages, demands, penalties, fines, expenses (including legal expenses), costs, obligations and causes of action of every kind and nature whatsoever in respect of environmental pollution on or caused by tangible assets, including premises, used by or in the operations of the City or the City’s Representatives. Notwithstanding the rest of this Section, Shell shall be responsible for the costs of remediating environmental pollution to the Lease Area to the extent, and only to the extent, that may be necessary to enable Shell to use the Lease Area for its purposes. For the purpose of this Section, environmental pollution shall mean any impact to water, ground or air by harmful substances which causes a risk for human health, water, ground or air and has to be remedied according to Applicable Laws or any contract.

ARTICLE 11 INSURANCE

11.1 City’s Insurance

The City, at all times during the Term, and at its sole expense, shall, unless otherwise agreed to in writing by Shell, carry insurance covering its operations hereunder, and shall maintain or caused to be maintained at least the following insurance coverage:

(a) Workers’ Compensation coverage as required by Applicable Law;

(b) Employer's Liability Insurance covering each of its employees to the extent of no less than $1,000,000.00 or as required by law whichever is greater where such employees are not covered by Workers' Compensation or where Workers’ Compensation is not the sole remedy of such employees;

(c) Property insurance covering “all risks” of damage to the City Facilities, sufficient to cover the full replacement value thereof;

(d) Commercial General Liability Insurance written on an “occurrence” basis (including non-owned automobile) with a combined single limit of no less than $5,000,000.00 for each occurrence involving bodily injury, death or property damage; and

(e) Automobile Public Liability and Property Damage Insurance covering all vehicles owned, leased, operated or licensed by the City or its subcontractors with a single combined limit of no less than $1,000,000.00 for each occurrence involving bodily injury, death or property damage or limits as required by law, whichever is greater.

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11.2 Construction Insurance

Without duplicating any insurance required under Section 11.1 of this Agreement, or any other agreement, from and after the date of this Agreement, until the In-Service Date, the City will ensure that, in connection with the Project, the following minimum insurance coverages shall be in force:

(a) Standard "All Risk" Course of Construction insurance for loss or damage, in the amount of the total replacement value of the City Facilities and insuring City’s contractors and subcontractors of any tier;

(b) Wrap-Up Liability insurance, including coverage for all of the City's contractors and subcontractors of any tier, that includes coverage for all non-owned automotive units, products and completed operations and contractual liability with a combined single limit of not less than $2,000,000 for each occurrence involving bodily injury, death or property damage;

(c) Automobile Liability Insurance covering all vehicles owned or leased, operated or licensed by the City or its contractors or subcontractors used in connection with the City Facilities or the construction, installation, commissioning and testing thereof to cover liability for bodily injury and property damage with a limit of not less than $1,000,000 per occurrence or as required by law whichever are greater;

(d) All other insurance required by Applicable Law, including Workers' Compensation coverage required in the Province of British Columbia and Employer’s Liability with a limit of not less than $1,000,000.00 per occurrence or as required by law whichever amount is greater; and

(e) A completion bond from the City’s construction contractor in an amount sufficient to secure the completion of the City Facilities.

11.3 Design Professional Insurance

The City, at its sole expense, shall require such persons who may be engaged by the City to prepare drawings and specifications for the City Facilities to maintain professional Liability Insurance covering errors, omissions and negligent acts, in the performance of, or failure to perform, its services with a combined single limit of no less than $5,000,000.00 for a period of no less than twelve (12) months from the In-Services Date.

11.4 Other Insurance

The City, at Shell's cost, shall obtain such other insurance coverage with insurance carriers satisfactory to Shell as Shell may require.

11.5 Notice of Cancellation

Each insurance policy carried hereunder shall contain a provision obligating the insurer to provide Shell with notice of cancellation or material change not less than thirty (30) days prior to the date of cancellation or material change.

11.6 City Assistance

The City shall, at its own cost, provide Shell with such assistance as Shell may require for the prompt notice to insurers and for the preparation and negotiation of insurance claims for insurance

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coverage placed in connection with this Agreement. Such assistance includes the provision of copies of any documents, reports, correspondence, documentation and other information requested by Shell, as well as access to relevant personnel.

11.7 Shell Assistance

Shell shall, at its own cost, provide the City with such assistance as the City may require for the prompt notice to insurers and for the preparation and negotiation of insurance claims for insurance coverage placed in connection with this Agreement. Such assistance includes the provision of copies of any documents, reports, correspondence, documentation and other information requested by the City, as well as access to relevant personnel.

11.8 Deductible

The City shall ensure that any deductible under each policy required to be maintained by the City hereunder is of an amount which is reasonable giving consideration to the particular type of policy. All required deductible payments and property damage not covered by insurance under Section 11.1(c) or Section 11.2(a) (or, for the purposes of Section 4.5, not covered by property insurance maintained by Shell) shall be the responsibility of the City and shall not be reimbursable by Shell.

11.9 Certificates of Insurance

Upon the written request of Shell, the City shall cause its insurance underwriters to issue certificates of insurance satisfactory in form to Shell, acting reasonably, evidencing that the coverages, coverage extensions and policy endorsements required under this Agreement are maintained in force and that not less than 30 days’ notice will be given to Shell prior to any cancellation or material change of the policies. At Shell’s request, the City shall provide Shell certified copies of each policy of insurance required to be maintained by the City, pursuant to the terms of this Agreement.

11.10 Insurance Does Not Affect Obligations

The requirement of the City to purchase and maintain insurance or Shell’s acceptance of evidence of such insurance shall not, in any manner, limit or qualify the liabilities and obligations otherwise assumed by the City under this Agreement.

ARTICLE 12 DEFAULT

12.1 Events of Default

In this Agreement, each of the following events shall be referred to as an "Event of Default" by the applicable Party:

(a) in respect of any Party, if that Party fails to perform or observe any material covenant or term contained in this Agreement;

(b) if the City is unable, through the delivery of Reclaimed Water or by (at the City’s election and without obligation) securing an alternate supply of water, to deliver water meeting the Specifications, or the volume of Reclaimed Water nominated by Shell for more than 90

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consecutive days or for more than 180 days in any 365 day period and such failure is not a result of damage or destruction to the City Facilities ( a “Chronic Failure to Supply”); or

(i) institutes voluntary liquidation, dissolution or winding-up procedures;

(ii) takes any voluntary proceedings under any bankruptcy or insolvency legislation to be adjudicated a bankrupt or for any other relief;

(iii) has involuntary proceedings commenced against it under any bankruptcy or insolvency legislation to be adjudicated a bankrupt or for any other relief and such proceeding are not dismissed within 15 days of the commencement thereof;

(iv) makes a compromise with or an assignment for the benefit of creditors;

(v) has a receiver appointed (regardless of whether the appointment is by a court of competent jurisdiction or pursuant to an agreement) with regard to any material part of its business and assets;

(vi) is adjudged by a court of competent jurisdiction to be bankrupt or such a court makes an order requiring the liquidation, dissolution or winding up of such Party; or

(vii) has its corporate existence terminated;

(each such event being an "Insolvency Event of Default").

The Party to which or in respect of which the Event of Default relates may be referred to as the "Defaulting Party" and each other Party may be referred to as a "Non-Defaulting Party" in respect of such Event of Default.

12.2 Notice of Default

(a) If a Party believes that there has been an Event of Default committed by another Party, then that Party may give to the other Party a notice (a "Default Notice") in respect to the purported Event of Default. A Default Notice shall specify and provide reasonable particulars of the purported Event of Default.

(b) If an Event of Default set forth in a Default Notice (other than an Insolvency Event of Default or a Chronic Failure to Supply) is capable of being remedied, then the Defaulting Party shall remedy the applicable Event of Default within 30 days after receipt of the Default Notice or if the Event of Default cannot be remedied within that period of time, then that Party shall promptly commence remedying such Event of Default during that period and diligently continue thereafter to remedy such Event of Default.

12.3 Remedies on Default

If an Event of Default has occurred and:

(a) the Defaulting Party does not remedy or proceed in the manner prescribed by Section 12.2(b) to remedy the Event of Default; or

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(b) the Defaulting Party does not promptly commence and diligently continue to remedy any Event of Default in the manner that has been agreed by the Parties; or

(d) is an Insolvency Event of Default or a Chronic Failure to Supply;

then the Non-Defaulting Party shall have the right to terminate this Agreement immediately upon notice to the Defaulting Party, which right shall be in addition to all other rights and remedies available to it at law or in equity, including specific performance and injunctive relief.

12.4 Substantial Damage or Destruction of City Facilities

Subject to the rest of this Section, if the City Facilities are damaged or destroyed such that property insurance proceeds are payable with respect to such damage and destruction and such proceeds are, in the opinion of the City, acting reasonably, sufficient, together with any deductible amount, to repair and replace the City Facilities so as to return them to their pre-damaged condition, the City shall proceed diligently with such repair and replacement. If such proceeds (together with the deductible amount) are insufficient to cover the costs of repairing and replacing the City Facilities so as to return them to their pre-damaged condition, or such repair and replacement shall, in the City’s opinion, acting reasonably, take longer than 180 days to complete, the City may elect to terminate this Agreement upon notice to Shell given within 45 days of the occurrence of such damage or destruction, in which case a portion of such insurance proceeds shall be payable to Shell, calculated as follows: Shell’s portion shall be equal to the total insurance proceeds (less any deductible amounts) multiplied by $9,750,000.00 divided by the total Reimbursable Costs multiplied by the number of full months left in the Term and divided by 120. Shell shall pay a share of any deductible amount in the same proportion as its share of the total proceeds. If Shell terminates this Agreement under section 12.3 based on a Chronic Failure to Supply that results from damage or destruction of the City Facilities, Shell shall not be entitled to a share of any insurance proceeds under this Section.

ARTICLE 13 TERM AND TERMINATION

13.1 Term

This Agreement shall be effective from and after the date first set forth above and shall continue in force and effect until the tenth anniversary of the In-Service Date (the “Term”) unless this Agreement is terminated earlier or extended as provided herein.

13.2 Future Supplies

If, during the 5 year period following the expiration of this Agreement, the City at any time or from time to time elects to continue to supply Reclaimed Water to Third Parties, the City will make available to Shell up to 3400m3/day at such rate or price that the City from time to time charges or proposes to charge to other purchasers of Reclaimed Water. Shell acknowledges that the City may, but shall not be obligated to, determine the price for Reclaimed Water based on bids solicited or offered from time to time from prospective Third Party purchasers. If Shell elects to purchase Reclaimed Water under this section, the rate or price for Reclaimed Water payable by Shell under this Section shall thereafter only be adjusted on an annual basis to reflect any changes to the rate or price charged by the City to other

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Third Party purchasers, provided that if the rate or price initially payable by Shell is set based on a proposed price or rate that is never subsequently charged to other purchasers, the rate or price payable by Shell shall be reduced to such amount as is first actually charged to other purchasers . Shell’s rights under this Section shall expire five (5) years after the expiration of the Term. For clarity, the City shall have no obligation to operate the City Facilities under this Section, the intention of this Section being that if the City does operate the City Facilities and generates Reclaimed Water for supply to Third Parties, the City shall make Reclaimed Water available to Shell in accordance with this Section to the extent the City Facilities generate sufficient Reclaimed Water.

13.3 Termination by Shell

In addition to any other termination rights it may have hereunder, after Shell has paid all Reimbursable Costs and the In-Service Date has passed, Shell may terminate this Agreement upon 60 days notice without further or consequent liability on the part of Shell or the City.

13.4 Survival

Notwithstanding any termination or replacement of this Agreement, the provisions respecting liability and indemnification and audit shall survive such termination or replacement and remain in full force and effect until satisfied in full or such obligations expire as specified in this Agreement. For greater certainty, termination of this Agreement shall be without prejudice to any rights, remedies, powers, obligations and liabilities of either Party arising under this Agreement that have accrued prior to such termination.

ARTICLE 14 DISPUTE RESOLUTION

14.1 Dispute Resolution

(a) All disputes arising between the Parties under or in respect of this Agreement shall be resolved as provided in this Section 14.1.

(b) The Parties shall use all reasonable efforts and act in good faith in order to attempt to resolve all disputes arising between them under or in respect of this Agreement through consultation and negotiation, prior to resorting to arbitration as provided below. If, notwithstanding such reasonable efforts, the Parties cannot settle any such dispute through consultation and negotiation, then either Party may require that the dispute be settled through final and binding arbitration on the following basis:

(i) every such arbitration shall be conducted through the British Columbia International Commercial Arbitration Centre, by a single arbitrator appointed jointly by the Parties, provided that, if the Parties cannot agree upon the arbitrator, then either Party may request the British Columbia International Arbitration Centre to appoint an arbitrator;

(ii) subject to the other provisions of this Section 14.1(b), every such arbitration shall be conducted under the Rules of the British Columbia International Arbitration Centre in effect at the time of such arbitration;

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(iii) the location of every such arbitration shall be Vancouver, British Columbia;

(iv) unless the arbitrator determines otherwise, the Parties shall each pay and bear one-half of any general costs of every such arbitration, including the compensation for the arbitrator and any expert retained by the arbitrator, but each Party bear its own internal costs in connection with any such arbitration;

and otherwise in accordance with the provisions of the Commercial Arbitration Act (British Columbia).

14.2 Continued Performance During Dispute

To the extent that it is reasonably possible to do so, each of the Parties shall continue to observe and perform all of its obligations under this Agreement during any dispute respecting or related to this Agreement.

ARTICLE 15 NOTICES

15.1 Notices

(a) Unless specified otherwise in this Agreement, any notice or communications required or permitted to be given under or with respect to this Agreement shall be in writing and shall be deemed to have been received by the applicable Party when such notice or communication is delivered personally, by courier service or by mail, or when transmitted by facsimile (or by any similar means by which a written and recorded message may be sent), in each case, with all charges fully prepaid, to the address or the facsimile number, as the case may be, for the applicable Party as specified in this Agreement, subject to the following:

(i) any notice or communication delivered personally, by courier service or by mail shall be deemed to have been received by the applicable Party when it is actually delivered to the appropriate address for the applicable Party, provided that, if such notice or communication is delivered on a day that is not a Business Day or is delivered after 4:30 p.m. (local time at the location of the recipient) on a Business Day, then such notice or communication shall be deemed to have been received by the applicable Party on the first Business Day after the day on which such notice or communication was actually delivered; and

(ii) any notice or communication transmitted by facsimile or similar means shall be deemed to have been received by the applicable Party when the transmission of the complete notice or communication to the appropriate facsimile number is completed, provided that, if such transmission is so completed on a day that is not a Business Day or is so completed after 4:30 p.m. (local time at the location of the recipient) on a Business Day, then such notice or communication shall be deemed to be received by the applicable Party on the first Business Day after the day on which such transmission was so completed.

15.2 Addresses for Notices

(a) The Parties' respective initial addresses for notices under this Agreement are:

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To the City:

10105 – 12A Street, Dawson Creek, BC V1G 3V7

To Shell:

[•]

(b) A Party may change its address for the receipt of notices at any time by giving notice thereof to the other Party.

ARTICLE 16 ASSIGNMENT

16.1 Assignment by the City

The City may not assign or transfer any rights, interests or obligations under this Agreement without the prior written consent of Shell.

16.2 Assignment by Shell

Shell may assign and transfer its rights, interests and obligations under this Agreement (but only in its entirety) upon notice to the City. The City shall take all reasonable steps that may be required by Shell, acting reasonably, to effect such assignment and transfer, including, without limitation, the novation of this Agreement provided that there shall be no novation of this Agreement until after Shell has paid all Reimbursable Costs and the In-Service Date has passed and only if Shell is not otherwise in default of any of its obligations under this Agreement. No assignment shall be effective until and unless the assignee executes a written agreement with the City by which the assignee assumes all of Shell’s obligations under this Agreement.

ARTICLE 17 MISCELLANEOUS

17.1 City Powers

Nothing in this Agreement shall:

(a) affect or limit the discretion, rights or powers of the City, or the City’s approving officer, under any Applicable Law, or at common law, including in relation to the use, development or subdivision of land, the issuance or giving of any permits, authorizations, approvals or licenses, the passing of any council resolutions or the adoption of any bylaws ;

(b) affect or limit any Applicable Law of the City, including in relation to water consumption, sewage disposal or the use, development or subdivision of land; or

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17.2 Waiver

No waiver by any Party of any breach of any of the terms, conditions, representations or warranties in this Agreement shall take effect or be binding upon that Party unless the waiver is expressed in writing under the authority of that Party and any waiver so given shall extend only to the particular breach specified in such writing and shall not limit or affect any rights with respect to any other or future breach.

17.3 Further Assurances

From and after the date hereof, as may be necessary, the Parties shall execute, acknowledge and deliver such other instruments and take such other action as may be reasonably necessary to carry out their obligations under this Agreement.

17.4 Governing Law; Attornment

(a) This Agreement shall in all respects be subject to and be interpreted and construed in accordance with the laws the Province of British Columbia, excluding any conflict of laws rules or principles embodied therein that would permit or require the application of the laws of another jurisdiction.

(b) Except as provided in Article 14, each Party agrees to submit and attorn to, and accepts the exclusive jurisdiction of, the courts of the Province of British Columbia in respect to all matters relating to or arising from this Agreement or the transactions contemplated in this Agreement. Each of the Parties hereby irrevocably and unconditionally waives any rights that it might have, including any rights under the doctrine of forum non conveniens, to object to the courts of the Province of British Columbia as the proper forum in respect of any action, suit or proceeding arising out of this Agreement or the matters contemplated hereby that may be commenced in such courts and such Party covenants that it shall not plead or assert in any such action, suit or proceeding that such courts constitute an inconvenient forum.

17.5 Press Releases

No press release announcing the execution or proposed execution of this Agreement shall be made by the City without the express written consent of Shell, acting reasonably.

17.6 Amendments

This Agreement may be amended only by written instrument signed by both Parties.

17.7 Enurement

This Agreement shall be binding upon and enure to the benefit of the Parties and their respective successors and permitted assigns.

17.8 Time of the Essence

Time shall be of the essence in this Agreement and of all matters contemplated in this Agreement.

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17.9 Invalidity of Provisions

If any provision of this Agreement is determined to be invalid, illegal or unenforceable in any respect, then, to the extent of such invalidity, illegality or unenforceability such provision shall be severed from this Agreement and this Agreement shall be interpreted and construed without reference thereto and the validity, legality or enforceability of the remaining provisions contained in this Agreement shall not in any way be affected or impaired thereby.

17.10 Relationship of Parties

Nothing in this Agreement shall be interpreted or construed to create a partnership, association or joint venture between the Parties or to impose any partnership duty, obligation or liability upon any Party. No Party shall have any right, power or authority to enter into any agreement or undertaking for, to act on behalf of, to act as or be an agent or representative of, or to otherwise bind, another Party.

17.11 Counterpart Execution

This Agreement may be executed in counterpart and all executed counterparts, taken together, shall constitute one document.

17.12 Compliance with Law

The City and Shell, in the performance of this Agreement, shall each comply with all Applicable Laws.

17.13 Shell General Business Principles

The City confirms having received a copy of the Shell General Business Principles (or alternatively, taken notice of SGBP at [insert link]) and Shell Code of Conduct, (or alternatively, taken notice of the Code of Conduct at [insert link]). The City fully accepts that observance by the City of the Shell General Business Principles when doing business with Shell, is a condition for Shell Canada Upstream, and commits therefore not to violate any of the Shell General Business Principles when performing work in connection with this contract. In the event that the City supplies staff who work on behalf of Shell or represent Shell, the City also commits that such staff will behave in a manner that is consistent with the Shell Code of Conduct.

Without prejudice to any other right that Shell may have, Shell may terminate this Agreement immediately upon notice should the City violate the provisions of this clause.

17.14 Excused Non-Performance/Force Majeure

Each Party is relieved of its obligations under this Agreement to the extent and for the time that its performance is delayed or prevented by any cause (except financial) beyond its reasonable control. A labour dispute is beyond a Party’s reasonable control if that Party considers settlement thereof incompatible with its best interests. A Party whose performance of its obligations is delayed or prevented by circumstances beyond its reasonable control shall immediately notify the other Party of the nature, extent, effect and likely duration of such circumstances.

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IN WITNESS WHEREOF the Parties have duly executed this Agreement as of the date first written above.

THE CITY OF DAWSON CREEK

Per: Name: Title:

SHELL CANADA UPSTREAM, by its managing partner, Shell Canada Limited

Per: Name: Title:

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SCHEDULE "A"

This is Schedule "A" attached to and forming part of a Construction Agreement dated the ____ day of , 2010, and made between The City of Dawson Creek and Shell Canada Upstream

Definitions

In this Agreement, the following terms and expressions shall have the following meanings unless the contrary is specified or provided for elsewhere in the body of this Agreement:

(a) "Affiliate" means, with respect to any Person, another Person that controls, is controlled by, or is under common control with, that Person, regardless of whether such control is direct or indirect. For the purposes of this definition, "control" of a Person shall mean:

(i) the direct or indirect ownership of, or the right to direct the voting of, more than 50% of the voting securities or other voting interests of that Person, if such Person is a body corporate or a partnership; or

(ii) the possession, directly or indirectly, of the power to direct or cause the direction of the Person's management or policies, whether through the ownership of voting securities or other voting interests, by contract or otherwise or the appointment of trustees;

(b) "Agreement" means this Agreement, including the Schedules attached to it;

(i) statutes, including all regulations, rules and other statutory instruments promulgated thereunder;

(ii) judgments and orders of courts of competent jurisdiction;

(iii) rules, directives, orders, rulings, decrees, guidelines and binding policies issued by Governmental Authorities having or purporting to exercise jurisdiction or power over or in respect to the applicable Person, asset, operation, transaction or other matter or circumstance; and

(iv) the terms and conditions of permits, licences, authorizations or approvals issued by any Governmental Authority having or purporting to exercise jurisdiction or power over or in respect to the applicable Person, asset, operation, transaction or other matter or circumstance;

which are applicable to such Person, asset, operation, transaction or other matter or circumstance as at the applicable time;

(d) "Business Day" means any day on which banks are open to transact commercial business generally in Dawson Creek, British Columbia, but specifically excluding any Saturday, any

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Sunday or any other day of the week that is a legal or statutory holiday in Dawson Creek, British Columbia;

(e) “City Facilities” means the reclaimed water facilities to be constructed by the City hereunder, more particularly described in the Design Basis attached hereto as Schedule “B”;

(f) "Claim" means any demand, claim, lien, judgment, award, order, notice of default, breach, non- compliance or violation or any administrative, arbitration, regulatory or judicial proceeding, investigation, hearing, action or suit;

(g) "Chronic Failure to Supply" has the meaning given thereto in Section 12.1;

(h) "Cost Estimate" means the cost estimate attached hereto as Schedule “C”;

(i) "Defaulting Party" has the meaning given to that expression in Section 12.1;

(j) “Delivery Point” means the delivery point described in clause 5.5 (a) hereof;

(k) "Design Basis" means the detailed design parameters and assumptions that have been specified for the design, construction and operation of the City Facilities which are set forth in Schedule "B";

(l) “Downstream Shell Facilities” means facilities downstream of the Shell Facilities required in order for Shell to use the Reclaimed Water (including, without limitation, any pipelines or field facilities Shell considers necessary);

(m) "Encumbrance" means a Security Interest, an option to purchase, a right of first refusal, right of first offer, pre-emptive right of purchase or similar right whereby any Person has the right to acquire or purchase any asset, property, right or interest, a consent to transfer any asset, property, right or interest that may be withheld arbitrarily or unreasonably, a royalty, a net profits interest, a carried working interest and any other adverse claim or encumbrance, whether similar or dissimilar to the foregoing;

(n) "Event of Default" has the meaning given to that expression in Section 12.1;

(o) “Good Industry Practice" means the generally accepted and recognized practices, methods and acts together with the exercise of the degree of skill, diligence, prudence and foresight, that reasonably would be expected from developers, builders or operators of facilities similar to the City Facilities, under conditions comparable to those applicable in respect of the City Facilities, in light of the known facts or facts which should reasonably have been known at the time and consistent with Applicable Law and having regard to the need for:

(i) adequate materials;

(ii) suitable personnel;

(iii) appropriate maintenance procedures;

(iv) on-going monitoring and testing of facility performance;

(v) environmentally sound practices; and

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(vi) safe operating procedures;

and is not restricted to the optimum practice or course of action to the exclusion of all others, but rather to a spectrum of generally recognized and accepted practices, methods and acts;

(p) "Governmental Authority" means, in respect to any Person, asset, operation, transaction or other matter or circumstance, any:

(i) federal, provincial, local, municipal, foreign or other government;

(ii) governmental entity or authority of any nature, including any governmental agency, branch, department, official, or entity and any court, regulatory board or other tribunal; or

(iii) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, regulatory or taxing authority or power of any nature;

having or purporting to exercise jurisdiction or power over the applicable Person, asset, operation, transaction or other matter or circumstance;

(q) "In-Service Date" means the first day of the month after the first day on which the City Facilities:

(i) have been completed in accordance with the Approved Design;

(ii) have successfully completed all testing and commissioning operations as provided in the Approved Design;

(iii) have been placed into service and are capable of being safely operated on continuous basis in accordance with all Applicable Laws and Good Industry Practice; and

(iv) are capable to, and in all respects ready to, supply Reclaimed Water to Shell as set out herein;

(r) “Insolvency Event of Default” has the meaning assigned thereto in Section 12.1 hereof;

(s) "Non-Defaulting Party" has the meaning assigned thereto in Section 12.1hereof;

(t) "Party" means a party to this Agreement and "Parties" means all of them;

(u) "Person" includes an individual, sole proprietorship, partnership, unincorporated association, unincorporated syndicate, unincorporated organization, trust, bank, body corporate or Governmental Authority or a natural person in the capacity of trustee, executor, administrator or other legal representative, as the context requires;

(v) “Project” means the design, engineering, procurement, construction, installation, commissioning, testing and start-up of the City Facilities;

(w) “Reclaimed Water” means water produced by the City Facilities;

(x) "Reimbursable Costs" means all costs and expenses (including any and all taxes) incurred by the City in connection with the Project;

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(y) “Representative” means:

(i) with respect to Shell, Shell’s Affiliates, and Shell’s and Shell’s Affiliates’ directors, officers, employees, representatives, agents and contractors; and

(ii) with respect to the City, the City’s Affiliates and Persons that have contractual arrangements with the City and the City’s Affiliates, and in respect of each of the foregoing and the City, their respective directors, officers, employees and agents;

(z) "Required Approvals" means the approvals and authorizations required to be obtained prior to or in connection with the Project or the use or operation of the City Facilities or any part thereof or otherwise for the completion of the transactions contemplated in this Agreement (including the execution and delivery hereof) pursuant to Applicable Law or any contract, permit, licence, approval or other instrument to which the City, is party or to which it is subject, which approval or authorization, if not obtained, would prohibit the construction, commissioning or start-up of City Facilities or have a material and adverse effect on the use and operation thereof or the completion of the transactions contemplated in this Agreement;

(aa) "Security Interest" means any lien, charge, mortgage, assignment by way of security, pledge, conditional sale, title retention arrangement or other security interest;

(bb) “Shell Facilities” means the facilities located at [**] owned and operated by Shell for the receipt, further treatment and transportation of Reclaimed Water under this Agreement;

(cc) “Specifications” means the specifications for the Reclaimed Water set out in Schedule “E” of this Agreement;

(dd) "Target In-Service Date" means September 30, 2011;

(ee) “Term” has the meaning assigned thereto in Section 13.1 hereof;

(ff) "Third Party" means a Person that is not a Party or an Affiliate of a Party.

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SCHEDULE "B"

This is Schedule "B" attached to and forming part of a Construction Agreement dated the ____ day of , 2010, and made between The City of Dawson Creek and Shell Canada Upstream

DESIGN BASIS MEMORANDUM

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Design Basis

RReeccllaaiimmeedd WWaatteerr FFaacciilliittyy

This report is prepared for the sole use of City of Dawson Creek. No representations of any kind are made by Urban Systems Ltd. or its employees to any party with whom Urban Systems Ltd. does not have a contract.

0714.0089.01 / August 2010 10808 - 100th Street Fort St. John BC V1J 3Z6 Telephone: 250-785-9697 Fax: 250-785-9691

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TABLE OF CONTENTS

1.0 INTRODUCTION ...... 1

2.0 WATER QUALITY ...... 2

2.1 WATER QUALITY REQUIREMENTS ...... 2 2.2 ADDITIONAL WATER QUALITY OBJECTIVES ...... 3 2.3 WATER QUALITY SUMMARY ...... 3

3.0 PROPOSED TERTIARY TREATMENT PROCESS ...... 4

3.1 PROCESS OVERVIEW ...... 4 3.2 POST-LAGOON BIOLOGICAL TREATMENT ...... 4 3.2.1 Overview to the Preferred Biological Treatment ...... 4 3.2.2 Operational Requirements of the SAGRTM Process ...... 5 3.2.3 Considerations for the SAGRTM Process Performance ...... 1 3.2.4 SAGRTM Process Performance Guarantees ...... 3 3.2.5 Additional Treatment Requirements ...... 4 3.3 PHYSICAL TREATMENT PROCESS ...... 4 3.3.1 Disc Filters ...... 4 3.3.2 Performance Guarantee ...... 4 3.4 CHLORINATION ...... 4 3.5 BACK-UP COAGULATION ...... 5 3.6 FINISHED WATER QUALITY PARAMETERS ...... 5

4.0 DESIGN FLOW ...... 6

4.1 PROJECT DESIGN FLOW...... 6 4.2 STP FLOWS...... 6 4.3 STEPS TO MAINTAIN WATER SUPPLY ...... 7 4.3.1 Effluent Collection Location ...... 7 4.3.2 Potable Water Connection ...... 7

5.0 REGULATORY CONSIDERATIONS ...... 8

5.1 REGULATORY OVERVIEW ...... 8 5.2 CONDITIONS OF THE MSR VERSUS A PERMIT AMENDMENT ...... 8

6.0 DISTRIBUTION OF RECLAIMED WATER ...... 10

6.1 SHELL’S ALLOCATION ...... 10

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6.2 CITY OF DAWSON CREEK’S ALLOCATION ...... 11 6.3 RIGHTS TO RECLAIMED WATER ...... 11

7.0 RECLAIMED WATER PROJECT SUMMARY ...... 12

7.1 BASIS SYSTEM PROCESS CONCEPT ...... 12 7.2 CONCEPTUAL SITE LAYOUT ...... 12 7.3 BUILDING LAYOUT ...... 12 7.4 PUMPING REQUIREMENTS ...... 13 7.5 RECLAIMED WATER STORAGE ...... 13 7.6 BLOWER REQUIREMENTS ...... 13 7.7 BACK-UP POWER REQUIREMENTS ...... 14 7.8 STORMWATER MANAGEMENT ...... 14

LIST OF TABLES

Table 2.1 MSR Criteria for Unrestricted Public Access Quality Table 3.1 Water Quality Summary – Post Lagoon Treatment Component Table 3.2 Updated Sampling Program

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1.0 INTRODUCTION

The purpose of this document is to provide an overview of the reclaimed water project to establish the design basis for the detailed design. This document provides detailed design parameters and assumptions that have been specified for the design, construction and operation of the facility recognizing that preliminary design has just completed.

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2.0 WATER QUALITY

2.1 Water Quality Requirements

The proposed reclaimed water process will meet, at a minimum, the water quality requirements as outlined in Municipal Sewage Regulation (MSR) for reclaimed water classified as suitable for unrestricted public access. The water quality requirements as outlined in the MSR are outlined in Table 2.1, below.

Table 2.1: MSR Criteria for Unrestricted Public Access Quality

Criterion Standard Requirement

Carbonaceous five day biochemical oxygen ≤ 10 mg/L

demand (BOD5)

Total suspended solids Turbidity ≤ 2 NTU over a 24 hour period. (TSS) Maximum turbidity ≤ 5 NTU; if TSS is used ≤ 5 mg/L.

≤ 2.2/100 mL (median of 7 consecutive samples) and Faecal coliforms ≤<14/100 mL (for any single sample).

≥ 0.5 mg/L at the point of initial use, unless it is demonstrated Total chlorine residual that the faecal coliforms remain below the criteria outlined above.

Chemical addition A coagulant or polymer addition prior to filtration.

pH 6 to 9

No criteria set, but need to determine if additional restrictions Nutrients are required for vegetation irrigation.

No criteria set, but need to determine if additional restrictions Metals are required for irrigation of crops.

Must not contain any pathogen or parasite at levels which will be Other pathogens of concern to the local health authority.

Must be clean, odourless, non-irritating to the skin and eyes. Miscellaneous Must not contain substances that are toxic on ingestion.

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2.2 Additional Water Quality Objectives

The following additional water quality objectives have been incorporated at the request of Shell:

 Filtered to maximum 10 micron sieve size

 Stable water quality with changes not greater than +/- 10% per hour

 Non-scale forming with a Langlier Saturation Index (LSI) > 0 but < 1.5

 Sulphide < 1 mg/L

2.3 Water Quality Summary

It is mandatory that the unrestricted public access water quality parameters are met in order for the reclaimed water to be in compliance with the agreements which are being developed with the BC Ministry of Environment (as discussed further in Section 5). If these criteria are not met, the reclaimed water cannot be distributed for use. However, these criteria are standard and are relatively easy to meet given the available technologies, and considering both capital and operational costs. The additional water quality objectives outlined by Shell are not mandated through a regulation, but have been indicated to be important to the operation of their processes. Shell may choose to modify the water quality in the field to meet additional desired water quality objectives.

The process technologies and final water quality are discussed further in Section 3.

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3.0 PROPOSED TERTIARY TREATMENT PROCESS

3.1 Process Overview

As part of the reclaimed water process feasibility and selection study completed in January 2010, various suppliers in the water and wastewater treatment industry submitted proposals outlining the latest practical and proven technologies available to achieve the water requirements for reclaimed water classified as unrestricted public access. The submissions were examined based on the following criteria:

 Ability to meet the water quality requirements as a side-stream facility to the main wastewater treatment plant during warmer and colder temperatures;

 Capital, operational and maintenance costs; and

 Operator requirements.

Following this evaluation, the preferred treatment process was the Submerged Attached Growth Reactor (SAGRTM) treatment process supplied by Nelson Environmental. This biological process followed by a physical separation process will be utilized in the proposed reclaimed water process as outlined below.

3.2 Post-Lagoon Biological Treatment

3.2.1 Overview to the Preferred Biological Treatment Biological treatment will be the first process in the reclaimed water process train, and will be designed

to enable the treatment of carbonaceous BOD5 and TSS. As indicated above, the preferred post- lagoon treatment process for the reclaimed water project in Dawson Creek is the SAGRTM. The SAGRTM technology is a biological treatment process that was originally developed in response to the introduction of effluent standards in Iowa that mandated ammonia reduction.

Historically lagoon-based treatment systems provide some ammonia removal capabilities during summer months but are generally incapable of meeting similar reduction targets during colder temperatures. The SAGRTM process was designed to provide a relatively cost effective alternative for upgrading lagoon systems to treat ammonia.

Although a relatively new technology, the SAGRTM system has been proven to meet the reduction requirements for effluent at temperatures as low as 0.5°C. The SAGRTM is a clean gravel bed with linear aeration throughout the aggregate media which provides aerobic conditions that are required

for BOD5 reduction and nitrification. The aggregate bed is covered with a layer of peat mulch (or another form of approved insulation material) to prevent the bed from freezing during extreme winter

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conditions. Performance parameters and sizing of the SAGRTM process are based on extensive testing that has been performed on the post-lagoon SAGRTM located at the Steinbach (Manitoba, Canada) and Lloydminster (Saskatchewan, Canada) wastewater treatment facilities.

For the purposes of the reclaimed water project, the SAGRTM process will be sized for carbonaceous

BOD5 and TSS reduction in order to provide a reclaimed water quality which will meet the requirements of unrestricted public access for these two parameters. Since the SAGRTM was originally developed for nitrification, it is possible to phase in additional SAGRTM cells for future nitrification.

3.2.2 Operational Requirements of the SAGRTM Process The SAGRTM process is being designed to produce a final reclaimed water quality which will be consistent with achieving the requirements for an unrestricted public access quality. The final water quality and the sizing of the system are based on the proposed flows and the quality of the wastewater entering the SAGRTM process. The SAGRTM process will be located after the second aerated lagoon at the City’s STP. Table 3.1 summarizes the following information:

 The wastewater quality requirements entering the SAGRTM process to achieve the appropriate levels of treatment.

 The final effluent quality from the SAGRTM process based on the influent water quality.

 The criteria for unrestricted public access as defined in the MSR.

 Recent water quality data collected from the outlet of the second aeration cell.

 Historical water quality data collected from the end of the facultative pond. This represents the final effluent quality from the STP, and the database for this sampling location is extensive as effluent monitoring is mandatory. The facultative pond is located immediately after the second aerated pond and parallels can be drawn (in some cases) with respect to the water quality at these two locations.

The relevance of this information to the SAGRTM process is discussed in Sections 3.2.3 to 3.2.5, below.

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Table 3.1: Water Quality Summary – Post Lagoon Treatment Component

Historical Data Post Facultative End of Aeration Cell 2 (Nov 2009 – Mar Influent to MSR Criteria – Unrestricted Parameter Effluent from SAGRTM Pond (1996 – Apr 2010) Note 1 2010) SAGRTM Public Access Min: 1 Min: 6.2 Max: 85 Max: 48.0 45 mg/L < 10 mg/L Total BOD (mg/L) N/A 5 Av: 13 Av: 26.2 Max: 60 mg/L (guarantee) #> SAGRTM Spec (45 mg/L): 4 #> SAGRTM Spec (45 mg/L): 1 Min: Min: Carbonaceous BOD Max: Max: 45 mg/L < 10 mg/L 5 ≤ 10 mg/L (mg/L) Av: Av: Max 60 mg/L (guarantee) #> SAGRTM Spec: #> SAGRTM Spec: Min: 0.5 Min: 10 Max: 170 Max: 34 30 mg/L < 10 mg/L TSS (mg/L) ≤ 5 mg/L Av: 15 Av: 33 Max: 60 mg/L (guarantee) #> SAGRTM Spec (30 mg/L): 19 #> SAGRTM Spec (30 mg/L): 1 < 5 NTU ≤ 2 NTU over 24 hr Turbidity (NTU) Not Applicable Not Applicable Not Applicable (no guarantee) ≤ 5 NTU max Algae (mg/L Chl a) Not Applicable. Not anticipated to be problematic. Not Applicable Not Applicable N/A Min: 0.05 Min: 28.7 Max: 73.7 Max: 38.6 35 mg/L < 10 mg/L summer Total Ammonia (mg/L) N/A Av: 18.7 Av: 33.0 Max: 45 mg/L < 25 mg/L winter #> SAGRTM Spec (35 mg/L): 14 #> SAGRTM Spec (35 mg/L): 3 Min: Min: 0.2 Max: Max: 98.9 45 mg/L < 15 mg/L summer TKN (mg/L) N/A Av: Av: 42.3 Max: 55 mg/L < 30 mg/L winter #> SAGRTM Spec (45 mg/L): #> SAGRTM Spec (45 mg/L): 2 Page 78 of 146 Faecal Coliforms (#/100 ≤ 2.2/100 mL median Not applicable Not applicable Not applicable Not applicable mL) ≤ 14/100 mL max Min: Min: 7.5 Estimated increased by pH Max: Max: 8.8 Not Applicable 0.4 in summer and 0.5 in 6 - 9

Av: Av: 8.0 winter Item 7.1

Note 1: For total BOD5, the 1996 data set has been excluded, due to irregularities which were not reasonable with respect to the other effluent quality data.

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3.2.3 Considerations for the SAGRTM Process Performance While the data from the facultative pond (current final effluent) can provide guidance for the design of the SAGRTM system, with respect to defining the water quality at the end of the aeration cell, there can be significant changes in some of these parameters between the two sampling locations. The following differences are anticipated between the two data sets (end of second aerated cell and end of the facultative pond):

 A slight decrease in the total/carbonaceous BOD5 at the end of the facultative pond. This decrease is not expected to be significant with respect to the design of the SAGRTM process.

 An increase in the TSS at the end of the facultative pond. At times it is expected that this increase in TSS could be significant and is related to natural factors – seasonal pond turn-over and algal growth. The TSS concentrations from the second aerated cell will be more moderated as the operation of this cell results in minimal seasonal turn-over or algal growth, when compared to the facultative pond. Taking the effluent directly from the second aerated cell will be of greater benefit to the design and operation of the SAGRTM system, compared with using the effluent from the facultative pond. The TSS, concentration of algae and turbidity are all related for these two monitoring locations.

 A decrease in the concentrations of total ammonia and total Kjeldahl nitrogen (TKN), during the summer months at the end of the facultative pond. This decrease may be significant. Little or no change in these two parameters would be expected for the cooler months of the year. The change in the total ammonia or TKN will not have a significant impact on the design of the SAGRTM process.

 It is expected that there will be significant differences in the pH between the outlet of the second aerated cell and the end of the facultative pond. These differences are due to the growth and metabolic activity of algae which are present in abundance in the facultative pond during the warmer months of the year. Therefore, while the pH in the facultative pond will vary significantly depending on the time of year, amount of algae present and the weather conditions, by comparison the pH from the second aerated cell will be more consistent and is anticipated to be in the slightly alkaline range (i.e. pH 7.5 to 8.0).

Due to the differences which are expected between these two lagoons, there is the need for additional data, to ensure that the design of the SAGRTM process is appropriate. Therefore, a sampling program was initiated towards the end of 2009 in order to assist with defining the water quality prior to the SAGRTM process. This sampling program was further modified in the spring of 2010 and is summarised in Table 3.2.

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Table 3.2: Updated Sampling Program

Sampling Location Parameter Aerobic Cell 2 Facultative Pond Effluent Effluent pH (during algal bloom)1 2/day 2/day Temperature 2/week 2/week pH 2/week 2/week

Total BOD5 2/week 2/week TSS 2/week 2/week Turbidity 2/week 2/week Total Ammonia 2/week 2/week TKN 2/week 2/week TDS 2/week - Calcium 2/week - Sulphate 2/week 2/week 2 Chlorophyll A 2/week 2/week D.O. 2/week 1/month Algae Speciation Once Once COD - 1/month

CBOD5 - 1/month Nitrate 1/month 1/month Total Nitrogen 1/month 1/month

Alkalinity (CaCO3) 1/month 1/month Conductivity - 1/month Chloride - 1/month Faecal Coliforms - 1/month Total Coliforms - 1/month Ortho Phosphorus 1/month 1/month Total Phosphorus 1/month 1/month

Note 1: The pH should be measured in the morning and in the evening during the algal bloom. Once it is determined that the algal bloom has passed, monitoring the pH twice per day will no longer be necessary.

Note 2: The frequencies these parameters are tested will likely evolve as results are evaluated.

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3.2.4 SAGRTM Process Performance Guarantees The final water quality from the SAGRTM process is outlined in Table 3.1. The process guarantees are TM for BOD5 and TSS. Nelson Environmental will guarantee a final water quality at the end of the SAGR under the following conditions:

 For BOD5, the guaranteed quality will be < 10 mg/L as for carbonaceous BOD5, which is the form

of BOD5 which will be the regulatory requirement in the permit. Given the low concentrations of

BOD5 which will be present at this point of the treatment process, there will be very little

difference between the concentrations of total and carbonaceous BOD5 in the effluent from the TM SAGR . The guaranteed final concentration of carbonaceous BOD5 (< 10 mg/L) is based on an

incoming BOD5 (total or carbonaceous) concentration of 45 mg/L under standard operating conditions. This guarantee will also be held for periodic sustained increases in the incoming

BOD5 up to 60 mg/L for a period of 1 to 2 weeks.  For TSS, the guaranteed quality will be < 10 mg/L, which is higher than the MSR criteria for unrestricted public access, but is in recognition that there will be additional treatment (filtration) required in order to meet the turbidity requirements. There are no guarantees for the SAGRTM process with respect to turbidity. The guaranteed final TSS concentration (< 10 mg/L) is based on an incoming TSS concentration of 30 mg/L under standard operating conditions. This guarantee will also be held for periodic sustained increases in the incoming TSS up to 60 mg/L for a period of 1 to 2 weeks. (From the operational data available on the SAGRTM process, Nelson Environmental expect that the final TSS will be < 5 mg/L on a relatively consistent basis.)

The following comments have been provided for the other parameters indicated in Table 3.1:

 Algae – this has been included in the guarantee for TSS, based on the low risk of excessive algal growth being present at the end of an aerated lagoon. There will be no additional algal growth through the SAGRTM process, due to light limitations.

 Total ammonia and TKN – there are no guarantees for the final water quality with respect to either parameter. The SAGRTM process has not been designed for nitrification (biological ammonia treatment); however, nitrification will occur due to the presence of oxygen and the low

concentrations of BOD5. The rate and extent of nitrification cannot be controlled and there may be times of the year when nearly all of the incoming ammonia is removed by nitrification. The nitrification rates will be higher in the summer than the winter, due to the relationship between this biological process and warmer temperatures. It is possible that final ammonia concentrations of < 1 mg/L may occur over an extended period of time.

 Faecal coliforms – there is no allowance for the removal of faecal coliforms in the SAGRTM process. Disinfection will be required prior to the distribution of the reclaimed water. This is a standard procedure.

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 pH – from the existing operational data for the SAGRTM process, it is possible that there may be an increase in the pH as the wastewater moves through the SAGRTM unit. There are no guarantees that the final water quality will not occasionally exceed a pH of 9, but Nelson Environmental have indicated that this is unlikely to occur.

3.2.5 Additional Treatment Requirements After treatment by the SAGRTM process, further treatment will be required in order to meet all of the parameters indicated in the MSR for unrestricted public access quality. Therefore, filtration and disinfection will be required and are discussed in greater detail in Sections 3.3 and 3.4.

3.3 Physical Treatment Process

To ensure that the turbidity water quality requirement, and to a lesser extent the TSS water quality requirement, a physical treatment process must be incorporated into the treatment process downstream of the SAGRTM. The treatment process proposed comprises disc filters, as follows.

3.3.1 Disc Filters Disc filters are a proven filtration technology that provide a consistent water quality. For this project particles sizes that are greater than 10 microns will be targeted; in addition, an effluent turbidity of < 2NTU will need to be achieved, that may require the need for chemical coagulation upstream of the filters. Disc filters have a small footprint and produce a very low backwash flow rate (approximately 1% of total influent flow). The main disadvantage of disc filters is that they are susceptible to fouling and the filters need to be replaced periodically depending on operating conditions.

3.3.2 Performance Guarantee For all process components, where applicable, appropriate process and performance guarantees will be acquired from vendors to ensure the equipment supplied meets or exceeds the specifications as indicated by the vendor.

3.4 Chlorination

To meet the water quality requirement of this project, chlorine will be injected into the filtered water to maintain a total chlorine residual concentration of greater than 0.5 mg/L at the point of use. Refer to Section 3.6 for the definition of point of use.

Continuous online chlorine monitoring will be incorporated to ensure the chlorine residual is adhered to at the point of use (outlet of the reclaimed water facility). If additional chlorine dosing is required to maintain a chlorine residual in the pipeline, Shell will be responsible for notifying the City. Shell will be responsible for any additional chlorine dosing requirements to maintain chlorine residual in their storage and field operation facilities and systems.

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3.5 Back-Up Coagulation

In the event of increased TSS and/or turbidity leaving the SAGRTM process, a coagulant injection system will be incorporated upstream of the disc filters as a back-up measure to ensure the TSS requirement is adhered to and to ensure that Shell’s concerns with pipeline operation and maintenance are addressed.

3.6 Finished Water Quality Parameters

Based on the proposed treatment process outlined above, the following water quality objectives can be met at the point of use.

 Carbonaceous BOD5 < 10 mg/L  TSS < 5 mg/L

 Turbidity < 2 NTU

 Maximum 10 micron sieve size

 Total Chlorine Residual > 0.5 mg/L

 Sulphide < 1 mg/L

 Temperature of > 0.5 but < 25 degrees C

For the purposes of this project, the point of use is defined as the booster station at the start of Shell’s pipeline and at the bulk water filling station. If additional chlorine dosing is required to maintain the water quality downstream of the point of use, it is the responsibility of the user to notify the City. Any additional treatment not identified in this document as part of the reclaimed water project is the responsibility of the user.

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4.0 DESIGN FLOW

4.1 Project Design Flow

The treatment equipment will be sized to achieve a design flow of 4,000 m3/day throughout the year. All piping will be sized for the future full build-out of 6,000 m3/day.

4.2 STP flows

The City currently monitors the wastewater flows entering the STP at the Main Lift Station using a magnetic flow meter. As part of the City’s discharge permit, they also monitor the amount of effluent that is discharged into Dawson Creek using a Parshall flume and a Milltronics Level Transmitter. Figure 4.1 depicts the average monthly flow rates between 2001 and 2009.

Figure 4.1: City of Dawson Creek Sewage Treatment Plant Monthly Average Influent and Effluent Flow Summary (2001 to 2009)

Based on the monthly flows averaging above 4,000 m3/day as outlined in Figure 4.1, the extensive storage capacity throughout the STP may buffer periods of reduced flow. Therefore, based on this assessment, it is anticipated that the reclaimed project will be able to maintain a constant supply of 4,000 m3/day.

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4.3 Steps to Maintain Water Supply

Although it is unlikely that the proposed reclaimed water project will not be able to meet the 4,000 m3/day, additional precautions have been established to ensure there is sufficient water supplied by the reclaimed water project as follows:

4.3.1 Effluent Collection Location The proposed process aims to collect effluent flows from the outlet of Aerobic Cell 2 to minimize the losses associated with evaporation from the Facultative Pond. This location also captures the effluent upstream from the location the where the float plane landing pond draws effluent from the existing STP. During periods of reduced flows, all effluent flows will be directed to the proposed reclaimed water project. If effluent supply becomes a concern, the proposed project may also draw stored effluent from the Facultative Pond. The City currently operates a movable pump to fill the float plane landing pond with effluent from the Facultative Pond. This pump was originally acquired by the City to lift wastewater from the Main Lift Station to the Anaerobic Cells in the event the Main Lift Station is out of service. Therefore, this pump is able to supplement any effluent supply shortages by lifting stored effluent from the Facultative Pond.

4.3.2 Potable Water Connection The City will also provide a potable water service connection to the proposed project which may be used to supplement flows in the event of reduced reclaimed water flows.

if there are major operational issues associated with the proposed reclaimed water project, the City will provide a flow of potable water to Shell that is safe and sustainable for the community. The actual potable water flows that will be available to Shell during major operational issues will be determined during detailed design and will be dependent on time of year but are currently estimated as 10 L/s.

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5.0 REGULATORY CONSIDERATIONS

5.1 Regulatory Overview

The MSR is the governing legislation in British Columbia for the treatment, reuse and discharge of municipal sewage and the resulting effluents. Under this regulation, there are two categories for effluent, or reclaimed water, which is designated for reuse: restricted public access and unrestricted public access. The reclaimed water which is designated as suitable for unrestricted public access is a higher quality than the reclaimed water which is designated as suitable for restricted public access. There are also identified uses for the two categories of reclaimed water. Reclaimed water which is designated as suitable for unrestricted public access may also be used for restricted public access applications. However, reclaimed water which is designated as suitable for restricted public access is not intended to be used for unrestricted public applications. Therefore, there is more flexibility and opportunity for higher quality reclaimed water, which consequently has higher treatment and monitoring requirements. The preference from the City and Shell is to focus on meeting the unrestricted public access requirements.

The City’s STP currently operates under a permit issued by the BC Ministry of the Environment (BC MoE). This permit governs the operation of the existing STP and the discharge to Dawson Creek. As there is an existing permit in place, the new effluent reuse facility could be regulated under the MSR or as a permit amendment. The route of a permit amendment is being pursued due to complications which may arise with registration under the MSR and the existing STP. A request for a permit amendment has been initiated with the BC MoE for the proposed reclaimed water facility, but the final components of the application package cannot be submitted until design drawings are prepared. Once the BC MoE has all of the necessary documentation, the permit amendment package will be reviewed by the Peace Regional Office in Fort St. John, then forwarded to the Minister of the Environment in Victoria. Victoria will issue the final approval and re-write the permit to reflect the amendment. The Northern Health Authority will be consulted with as part of the permit amendment process. The timeline for the BC MoE to process a permit amendment request may be expected to take in the range of one to two months once the Ministry has the complete application package, although there is no defined turnaround time for permit amendment requests.

5.2 Conditions of the MSR Versus a Permit Amendment

The issuance of a permit amendment compared with registration under the MSR will allow a greater flexibility with respect to the development of an effluent reuse facility. However, the intent is for the effluent quality to be consistent with the standards for unrestricted public access as defined in the MSR. This is described in greater detail in Section 2.

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The MSR also stipulates additional requirements for the development and operation of an effluent reuse facility. These are addressed in further detail below with respect to the Dawson Creek facility and the permit amendment:

 Storage – there will be no additional facilities developed for seasonal or emergency storage. In the event of any process concern which would have required this storage component to be developed, the resulting water can be diverted from the reuse facility back into the existing sewage treatment process for treatment and/or discharge.

 Alternative disposal methods - there will be no additional facilities developed to accommodate alternative disposal. In the event that the final product cannot be directed to the designated reuse, the resulting water can be diverted back into the existing sewage treatment process for treatment and/or discharge to Dawson Creek.

 The use of chemical addition (coagulant or polymer) – This is one of the processes required in order to comply with the process requirements for unrestricted public access as identified in the MSR. The permit amendment will be flexible on the need for this item and will rely on the design professional to determine if it is required. It is recommended that the ability to provide for the addition of a coagulant or polymer should be included in the process design, but chemicals will not be added if the reclaim water facility is capable of meeting the unrestricted public access criteria for TSS/turbidity at the end of the filter. Shell has indicated that they may have additional requirements TSS/turbidity to ensure that operational and maintenance issues associated with their pipeline can be minimized. Coagulant addition will provide additional flexibility in this regard as well.

 Under the MSR, facilities are designated a Reliability Category. A reclaimed water facility is designated as “Category I”, which is the highest risk category and requires the greatest safeguards to be implemented. This type of treatment facility must have multiple units in order to accommodate the risks which are associated with the “Category I” designation. Under the permit amendment, the intent is for no multiple units to be developed, based on the ability to divert any resulting water back into the existing STP for treatment and/or discharge to Dawson Creek.

The MSR also outlines operator certification requirements, user information and monitoring requirements. The operator certification requirements will be determined by the BC Environmental Operators Certification Program. This is consistent whether the treatment process is registered under the MSR or managed through a permit. The requirements for user information and monitoring will be outlined in a separate document, the Technical Assessment, which is being developed as supporting information for the permit amendment. The requirements for user information and monitoring will be based on the level of risk and the requirements outlined in the MSR. There are further requirements in the MSR with respect to set backs, reclaimed water storage and reclaimed water use. These will also be addressed in the Technical Assessment. Some of the information in the Technical Assessment will be more applicable to Shell, than the City, especially with regards to the storage ponds for the reclaimed water.

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6.0 DISTRIBUTION OF RECLAIMED WATER

As outlined in the request for proposal, the 4,000 m3/day of reclaimed water will be distributed as follows:

 3,400 m3/day to Shell

 600 m3/day to the City

The terms and conditions of the uses of reclaimed water for the proposed reclaimed water project are subject to the approval from the various regulatory authorities.

6.1 Shell’s Allocation

The water allocated to Shell will be received at the proposed site of the treatment building. From this location, Shell is proposing to pump the reclaimed water to their Groundbirch venture located approximately 45 kilometres west of the City of Dawson Creek. All pumping requirements, both capital and operational, to pump reclaimed water from the reclaimed water facility to the Groundbirch venture is considered outside the scope of this project. Shell is responsible for this component of the proposed project.

Shell’s water demands will be assumed to be spread evenly through a 21 hour period unless otherwise advised by Shell. Shell has also noted that the steady demand will not exceed 175 cubic meters per hour. Storage is currently sized at 1,300 cubic meters which is sufficient to meet the 21 hour requirement noted above, buffer minor peaks in Shell’s demand, truck filling requirements, and minor short term operational and maintenance issues.

Shell intends to use the reclaimed water for all of the following purposes:

 hydraulic fracturing (well preparation),

 drilling fluids,

 drilling gas wells,

 pipeline hydrotesting, and

 dust control.

These uses will be included in the current permit amendment application. Any additional uses can be accommodated in the future through minor permit amendments. Please note that any additional uses must be incorporated as part of a BC MoE approved permit amendment prior to using the reclaimed water for uses not included in the discharge permit.

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Based on the terms of the agreement between the City and Shell, the City will provide 3,400 m3/day of reclaimed water at the water quality agreed upon in this document. Once the water is received at Shell’s pumping station, Shell will be responsible for ensuring that the water is only used for the approved uses and that best management practices are maintained throughout their operations to ensure the safety of the public and the environment.

If Shell incorporates additional treatment processes at the reclaimed water treatment site that results in backwash water losses, Shell may discharge a waste stream to the Anaerobic Cell. Shell will be responsibility to coordinate all works with the City for approval prior to designing or constructing any works.

6.2 City of Dawson Creek’s Allocation

In the future, the City’s allocation of reclaimed water will be distributed at the proposed bulk water filling station to approved users at a fee. The truck filling station will be sized for 600 m3/d with the capacity to accommodate high volumes over short periods of time. Shell will be provided with intermittent access to a truck loading facility in the event of pipeline or booster station shutdown. The terms of Shell’s access to the bulk water filling station will be outlined in greater detail as part of the legal agreement with the City.

The cost to develop and operate the bulk water filling station is considered outside the scope of this project and the City is responsible to complete this component of the proposed project.

Although the current permit amendment will focus on the use of reclaimed water in the oil and gas industry, the reclaimed water may be used by the City in the future for other uses such as dust control, irrigation and street cleaning. These additional uses will require future minor permit amendments. The City will be responsible for informing users of the approved uses of the reclaimed water and the public safety and environmental considerations that must be adhered to while using the reclaimed water.

6.3 Rights to Reclaimed Water

In the event the amount of non-potable water that is supplied from the proposed reclaimed water facility is restricted to less than 4,000 m3/day, the rights to the reclaimed water will be as follows:

 Shell has the right to the first 3,400 m3/day for the purposes approved as part of the permit amendment

 City has the right to all remaining flows for sale at the bulk water station or for any other use approved as part of the permit amendment

Effluent used to maintain the water level in the float plane landing pond will be restricted during periods in which Shell and/or the City is not supplied with sufficient flows as outlined above

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7.0 RECLAIMED WATER PROJECT SUMMARY

7.1 Basis System Process Concept

Based on the proposed treatment process outlined in Section 3.0 and the existing site conditions, a basic system process is summarized below.

7.2 Conceptual Site Layout

 Connection to Aerobic Cell #2,

 SAGR feed pump station,

 3 SAGR cells c/w inlet and outlet control structures,

 Post SAGR (filter feed) pump station,

 Treatment facility,

 wet well,

 Overflow pond and wastewater pump station,

 Site access and parking, and

 All associated pipeworks and controls.

7.3 Building Layout

The base building included as part of the reclaimed water facility includes the following:

 Disc filters (2 filters),

 Waste/backwash pumps to divert waste stream to Anaerobic Cell,

 Chlorine injection and storage room,

 Coagulant storage and injection area,

 Online Residual Chlorine Monitoring Instrumentation,

 Online Turbidity Monitoring Instrumentation,

 Blower room,

 Mechanical and HVAC room,

 Electrical room,

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 Office and operational spaces,

 Washroom,

 Outdoor Genset pad,

 Standby power for SAGR blowers, and

 Truckfill pumps

As part of the site development, the City and Shell must undertake a detailed review of the building requirements to ensure sufficient space, access and parking, and that the aesthetic objectives of the building meet expectations.

7.4 Pumping Requirements

Based on the City and Shell’s review of the pumping options, Shell will be locating their pumping requirements within a separate building.

While the pumping requirements for the bulk water fill station are not part of the scope of this project, the City has chosen for economic and operational efficiency reasons to include the pumps within the footprint of the reclaim building.

7.5 Reclaimed Water Storage

The reclaimed water storage is currently sized to have a capacity to store 1,300 m3 of reclaimed water contained within the wet well to be constructed under the reclaim building. All of the appropriate service connections to allocate the necessary volume for both the City and Shell’s uses will be incorporated as part of the design.

7.6 Blower Requirements

As mentioned above, the SAGRTM process relies on aeration equipment to achieve the desired treatment. Without the blowers in operation, the water quality requirements may not be achieved and the reclaimed water process must be halted.

To ensure that the reclaimed water consistently meets the water quality requirements as listed in the MSR, the system will be designed to ensure that in the event of shutdown or fault with the aeration equipment, the reclaimed water treatment process will be stopped. Furthermore, to keep water from filling the aeration piping and freezing during colder temperatures, a positive pressure must be maintained in the aeration piping. A transfer switch for backup power and a small generator will be incorporated as part of the reclaimed water process to ensure the aeration piping is not damaged during power outages.

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Although there is an opportunity to retrofit the blowers in the existing blower building, the most cost effective option to fulfill the blower requirements is to house the blowers within the proposed treatment building. Therefore this project will house the blowers within the treatment facility.

7.7 Back-Up Power Requirements

To prevent freeze up and ensure continued operation of the SAGR cells during power failure, a backup generator will be installed. The generator will be sized to ensure operation of the SAGR blowers and associated components only. It is intended that the generator be diesel fuelled with enough capacity to provide continuous operation, under full loading for 12 hours.

7.8 Stormwater Management

Based on the existing site conditions, there are a number of culverts that divert surface runoff from the neighbouring airport and rodeo grounds. Although the design will address proper stormwater management of the reclaimed water site, addressing storm water management throughout the area is not considered within the scope of this project. The design will restore the site conditions to their pre- existing conditions.

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SCHEDULE "C"

This is Schedule "C" attached to and forming part of a Construction Agreement dated the ____ day of , 2010, and made between The City of Dawson Creek and Shell Canada Upstream

COST ESTIMATE

Construction and Supply Agreement

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Construction Agreement G:\019373\0441\Construction Agreement (Shell).doc

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SCHEDULE "D"

This is Schedule "D" attached to and forming part of a Construction Agreement dated the ____ day of , 2010, and made between The City of Dawson Creek and Shell Canada Upstream

SHELL FACILITIES LAND

Construction Agreement G:\019373\0441\Construction Agreement (Shell).doc

Regular Council 04 Oct 2010 Page 95 of 146 Item 7.1

SCHEDULE "E"

This is Schedule "E" attached to and forming part of a Construction Agreement dated the ____ day of , 2010, and made between The City of Dawson Creek and Shell Canada Upstream

RECLAIMED WATER SPECIFICATIONS

Construction and Supply Agreement

Regular Council 04 Oct 2010 Page 96 of 146 Item 7.1

SCHEDULE "F"

This is Schedule "F" attached to and forming part of a Construction Agreement dated the ____ day of , 2010, and made between The City of Dawson Creek and Shell Canada Upstream

RECLAIMED WATER TESTING REQUIREMENTS

Construction and Supply Agreement

Regular Council 04 Oct 2010 Page 97 of 146 Item 7.1

SCHEDULE "G"

This is Schedule "G" attached to and forming part of a Construction Agreement dated the ____ day of , 2010, and made between The City of Dawson Creek and Shell Canada Upstream

DELIVERY POINT DIAGRAM

Construction Agreement G:\019373\0441\Construction Agreement (Shell).doc

Regular Council 04 Oct 2010 Page 98 of 146 Item 7.2

REPORT TO COUNCIL

DATE: September 20, 2010 REPORT NO.: ADM 10-141

SUBMITTED BY: Brenda Ginter FILE NO.: 1-1-2 Director of Corporate Administration

SUBJECT: 2011 Council Meeting Schedule

PURPOSE This report has been prepared to recommend a Council meeting schedule for 2011.

SUMMARY/BACKGROUND Council generally meets twice per month, on Mondays, except in the summer months. The schedule is arranged to avoid statutory holidays and to avoid conflict with the Union of BC Municipalities, the North Central Local Government Association and Federation of Canadian Municipalities Conferences. Should circumstances dictate, Council may authorize a Special Meeting outside of the Regular Schedule, as per the Council Procedure Bylaw.

For July and August, Council traditionally met only once in each month, also on a Monday. In 2010, a second Council meeting was scheduled in August due to previous year’s experiences with a large agenda immediately following the summer season. The 2011 proposed schedule also includes an additional meeting in August.

The Committee of the Whole is held on the second meeting of every month beginning at 11:00 am. Committee of the Whole is suspended for the months where only one meeting is scheduled. For 2011, this includes the months of July and September.

ALTERNATIVES Council can approve the schedule as presented, or may refer the schedule back to staff for amendment.

IMPLICATIONS (1) Social N/A

(2) Environmental N/A

Regular Council 04 Oct 2010 Page 99 of 146 Item 7.2

Report re: 2011 Council Meeting Schedule Page 2 of 2

(3) Personnel N/A (4) Financial N/A GUIDING PRINCIPLES • Employing open dialogue and wide input into decision making and planning.

Council is committed to transparency of local government decision making. A predetermined Council meeting schedule ensures that residents have the opportunity to meet with Council on a regular basis.

STRATEGIC PRIORITIES N/A

IMPLEMENTATION/COMMUNICATION If approved, the 2011 Council Meeting Schedule will be advertised in accordance with Section 94 of the Community Charter (once each week for two consecutive weeks), posted on the City website and forwarded to the Peace River Regional District and the local media.

RECOMMENDATION That Report No. ADM 10-141 from the Director of Corporate Administration (September 20, 2010) re: 2011 Council Meeting Schedule be received; further, that Council adopt the proposed 2011 Council meeting schedule.

Respectfully submitted,

APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY

Brenda Ginter Director of Corporate Administration

BG/cf

Regular Council 04 Oct 2010 Page 100 of 146 Item 7.2

2011 COUNCIL MEETING SCHEDULE

January 10 24 *Committee of the Whole

February 7 21 *Committee of the Whole

March 7 21 *Committee of the Whole

April 4 18 *Committee of the Whole

May 9 30 *Committee of the Whole

June 13 27 *Committee of the Whole

July 18

August 15 29 *Committee of the Whole

September 12

October 3 24 *Committee of the Whole

November 7 21 *Committee of the Whole

December 5 19 *Committee of the Whole *Notes: NCLGA - May 11th to 13th LGMA - May 17th to 19th FCM - June 3rd to 6th UBCM - September 26th to 30th

Regular Council 04 Oct 2010 Page 101 of 146 Item 7.3

REPORT TO COUNCIL

DATE: October 4, 2010 REPORT NO.: ADM 10-143

SUBMITTED BY: Brenda Ginter FILE NO.: 1-1-10 Director of Corporate Administration

SUBJECT: Administration Policy – Employee Retirement

PURPOSE To propose an increase to the yearly allotment to the City contribution towards a gift for an employee retirement.

SUMMARY/BACKGROUND The Employee Retirement Policy was adopted in October 1999. This policy set the City’s contribution towards a gift for a retiring employee at ten dollars for every year of employment. There has been no increase in this contribution amount since that date – over ten years ago.

A request was put out to other communities within BC for their current policy regarding employee retirement contributions and the following information was provided:

Chetwynd - Senior Management staff - $50/year of service - Non-management staff fall under the Recognition Awards and Farewell Gifts Policy which is $12 to $15 up to a maximum of $250. Langford $50/year of service to a maximum of $1000 Golden $25/year of service, plus if over 10 years of service, up to $3500 for a retirement party Cowichan Valley $30/year - after 10 years of service Regional District Langford no policy, but a gift worth up to $500 would be approved for a long serving employee Terrace - Management staff with less than 10 years service is $150, increasing to a payment of $500 for over 25 years of service. - Non-management positions over 15 yrs is $225, increasing to a payment of $375 for over 25 years of service. Port Coquitlam $150 visa card after 25 years of employment. Whistler 11 or more years – contribution to a retirement gift of $100 from the social fund

Regular Council 04 Oct 2010 Page 102 of 146 Item 7.3

Report re: Employee Retirement Policy Page 2 of 2

The range is very broad from $100 to $1000, plus in some cases a budget is specified for a retirement party.

Staff is recommending the annual contribution be increased from ten ($10) to twenty ($25) per year of employment.

ALTERNATIVES Council may choose to leave the contribution amount as is, or may choose to increase it to any other amount.

IMPLICATIONS (1) Social N/A

(2) Environmental N/A

(3) Personnel Increasing the contribution for retiring employees reaffirms Council’s appreciation for the dedication shown by City staff.

(4) Financial If approved, the budget for retirement gifts would need to be increased.

GUIDING PRINCIPLES N/A

STRATEGIC PRIORITIES N/A

IMPLEMENTATION/COMM UNIC ATION If approved by Council, all staff will be advised of the change and the policy manual will be updated by amending the on-line version.

RECOMMENDATION That Report No. ADM 10-143 from the Director of Corporate Administration re: Employee Retirement Policy be received; further that the contribution from the City towards a retirement gift be increased from $10 per year of employment to $25 per year of employment.

Respectfully submitted,

APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY

Brenda Ginter Director of Corporate Administration

BG/cf

Regular Council 04 Oct 2010 Page 103 of 146 Item 7.3

Policy – Administration

SUBJECT: EMPLOYEE RETIREMENT

The Council of the City of Dawson Creek directs that:

The City of Dawson Creek will contribute Twenty Five Dollars ($25.00) per year, toward a gift, for every year of employment for retiring employees.

The City of Dawson Creek will also provide a gift of appreciation for members of Council who have completed their term of office.

APPROVED BY COUNCIL: DATE: October 18, 1999

REAFFIRMED BY COUNCIL: DATE: April 30, 2001 DATE: November 16, 2009

AMENDED BY COUNCIL: DATE:

Regular Council 04 Oct 2010 Page 104 of 146 Item 7.4

REPORT TO COUNCIL

DATE: September 24, 2010 REPORT NO.: ADM 10-142

SUBMITTED BY: Kevin Henderson Director of Infrastructure & Sustainable Development

SUBJECT: Strata conversion 716 – 97th Avenue

PURPOSE To bring forward a request to convert a previously occupied duplex to a strata property. As per Section 242 of the Strata Property Act, the Municipal Council is the approving authority on such a request.

SUMMARY/BACKGROUND The property is a duplex constructed in 2007 located at 716 – 97th Avenue. The owners, Frances Hocking and Gregg Sheldon, wish to convert the rental property to a strata property. In requests of this nature, the approving authority must consider the following :

1. The priority of rental stock in the area – in a strata conversion typically the residents that are renting are displaced as to allow for the conversion to condo units. This can be a hardship if there is no available rental stock in the area. This application is potentially displacing the current renters, staff is unaware if current renters will be given first opportunity for purchase, or may even be able to stay and rent from the new owners. If this was a conversion of an apartment this would be a much greater concern for Council. There are a number of new rental units available in town, the new apartment on 109th Avenue west of 15th street provides 40 plus units, a new apartment is under construction on 9th – 100A Ave, and there have been a number of new duplexes constructed in the last number of years for rental purposes. It would appear that there will be sufficient availability of rental units in the area. There is a possibility that if converted that the new owner of the unit may in turn rent it out hence re-establishing the rental stock.

2. The proposal of the owner-developer for the relocation of the occupants – in this application there is potentially only two units affected therefore relocation of the occupants is not a major consideration. The applicants are to make the occupants aware of the conversion if approved.

Regular Council 04 Oct 2010 Page 105 of 146 Item 7.4

Report re: 716 97 Avenue Page 2 of 2

3. The life expectancy of the building – the building was constructed in 2007, therefore would expect a minimum of a 50 year life span.

4. The building must substantially comply with all current applicable bylaws – the property is zoned RS-2 (Single Family and Duplex), the building inspection department conducted an inspection of the property and determined that the building does meet minimum fire separation requirements for two dwelling units.

ALTERNATIVES Council could not approve the request for strata conversion, and leave the unit as a one owner configuration. The decision of the approving authority is final and no avenue for appeal on the merits of the local government’s decision is open to the applicant. The only way to challenge the decision on a procedural or jurisdictional basis is to apply for a judicial review of the decision.

IMPLICATIONS (1) Social There is the possibility that two renters will displaced by the conversion, but there is a number of units coming on line in the community to absorb the displacement. There is also the possibility that this unit once converted and sold may return to the rental stock in the community. (2) Environmental N/A

(3) Personnel N/A (4) Financial N/A

IMPLEMENTATION/COMMUNICATION Should Council approve the application, staff will inform the applicants of Council’s decision and the strata conversion will commence immediately.

RECOMMENDATION THAT Report No. ADM 10-142 from the Director of Infrastructure & Sustainable Development (September 24, 2010) re: Strata Conversion 716 97th Avenue be received; further that Council approve the strata conversion for the duplex located at 716 – 97th Avenue owned by Frances Hocking and Gregg Sheldon.

Respectfully submitted,

APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY

Kevin Henderson, AScT Director of Infrastructure and Sustainable Development

Regular Council 04 Oct 2010 Page 106 of 146 Item 7.5

REPORT TO COUNCIL

DATE: September 27, 2010 REPORT NO.: TX 10-224

SUBMITTED BY: Shelly Woolf Chief Financial Officer

SUBJECT: 2010 Tax Sale

PURPOSE To inform Council of the results of the 2010 Tax Sale.

SUMMARY/BACKGROUND The 2010 Tax Sale was held September 27, 2010. Offered for sale, as per the Community Charter, were properties on which there were outstanding taxes for the years 2008, 2009 and 2010.

Subject to the one-year redemption period, nineteen (19) properties were auctioned, for a total upset price of $412,087.12. Thirteen properties were sold and six properties were retained by the City.

Refer to the attached listing.

In addition please find following the properties retained by the City of Dawson Creek from the 2009 Tax Sale.

ALTERNATIVES N/A

IMPLICATIONS (1) Social N/A

(2) Environmental N/A

(3) Personnel N/A (4) Financial Provision must be made in the 2011 operating budget for the outstanding taxes on properties retained by the City and not as yet redeemed.

Regular Council 04 Oct 2010 Page 107 of 146 Item 7.5

Report re: 2010 Tax Sale Page 2 of 5

GUIDING PRINCIPLES We will have a reputation for acting with integrity and will earn the trust of our stakeholders by pledging to align our actions with the guiding principles that support our vision.

STRATEGIC PRIORITIES N/A

IMPLEMENTATION/COMMUNICATION N/A

RECOMMENDATION That Report No. TX 10-224 from the Chief Financial Officer re: 2010 Tax Sale be received for information.

Respectfully submitted,

APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY

Shelly Woolf, C.A., B. Mgmt. Chief Financial Officer

SW/ts

Regular Council 04 Oct 2010 Page 108 of 146 Report re: 2010 Tax Sale Page 3 of 5 Regular Council 04 Oct 2010

PROPERTY SOLD AT 2010 TAX SALE SEPTEMBER 27, 2010 FOR YEAR ENDING DECEMBER 31, 2010

Roll Vacant / Purchased Purchase Number Civic Address Property Owner Lot Block Plan Improved by City Purchased by Others Price Upset Price

458.000 801 120 Ave CADC Energy Ltd 1 - 4 5 2981 I 75,337.23 75,337.23

579.000 1601 100 Ave McKenzie Eirn 24 10 2986 I ALWIN THOMAS 4,600.00 4,508.43 CORNTHWAITE 666.000 1445 104 Ave Kenneth J 12 9 3025 I ANN HAUBER 5,000.00 4,470.75

922.000 817 105 Ave RUEB Ardath 12 19 3553 I EVEREST TRANSPORT 6,000.00 4,375.72 CYRE Ernest 1073.000 9305 8 Street James 1 3 3917 I EVEREST TRANSPORT 12,000.00 11,945.75 FORD Terry GREG & HEATHER 1087.000 908 96 Ave Charles 3 7 3917 I WEAVER 8,500.00 4,008.37

1414.000 716 105A Ave CRYNE Brenda 5 3 5526 I 8,729.52 8,729.52

JOHNSON 1685.000 1528 96 Ave Richard 8 6 6147 I BENO FODOR 6,900.00 5,675.31

1776.000 9717 9 St MEISE Karla 3 2 6304 I EVEREST TRANSPORT 4,700.00 4,381.42

Page 109 of146 FARNQUIST 1895.000 405 100 Ave Elmer 5 1 6679 I TIM SCHRAM 9,100.00 4,144.82 FREDERICKSEN SANDY 1925.000 420 99 Ave George 12 3 6679 I WITHERSPOON 5,300.00 4,035.72

JOHNSON Item 7.5 2300.000 1537 96 Ave Richard 8 7216 I BENO FODOR 7,600.00 6,305.30

2544.020 1821 109 Ave HURST Christl 20 BCP20408 V EVEREST TRANSPORT 5,000.00 4,264.63 Report re: 2010 Tax Sale Page 4 of 5 Regular Council 04 Oct 2010

2544.021 1817 109 Ave HURST Christl 21 BCP20408 V EVEREST TRANSPORT 10,500.00 3,836.40 Roll Vacant / Purchased Purchase Number Civic Address Property Owner Lot Block Plan Improved by City Purchased by Others Price Upset Price JOHNSON 2683.000 1217 114 Ave Richard 3 6 7668 I EVEREST TRANSPORT 6,871.02 6,871.02 AVIATOR HOTEL DAWSON 5586.510 601 Hwy 2 CREEK 1 BCP6265 I 97,123.47 97,123.47 AVIATOR HOTEL DAWSON 5586.520 501 Hwy 2 CREEK 2 BCP6265 V 83,197.18 83,197.18 KECHIKA DEVELOPMENTS 5660.500 12391 215 RD INC 2 BCP29295 I 48,351.08 48,351.08 KECHIKA DEVELOPMENTS 5660.700 INC 3 BCP29295 V 30,525.00 30,525.00 343,263.48 92,071.02 412,087.12

1. Redeemed - Sept 28/10 4,264.63 2. Redeemed - Sept 28/10 3,836.40 8,101.03

403,986.09

Page 110 of146 Item 7.5 Report re: 2010 Tax Sale Page 5 of 5 Regular Council 04 Oct 2010

2009 TAX SALE PROPERTIES RETAINED BY THE CITY OF DAWSON CREEK

ARREARS + 2010 ROLL UPSET CURRENT CIVIC ADDRESS LEGAL DESCRIPTION INT. TO TOTAL ASSESSED NUMBER PRICE & PENALTY SEPT 28/10 VALUE

2343.000 520 115 Avenue Lot 3 Block 1 Plan 7227 17,288.83 2,936.51 - 2,936.51 56,200

2346.490 516 115 Avenue Lot 6 Block 1 Plan 7227 3,409.96 1,231.71 - 1,231.71 28,800

2346.500 512 115 Avenue Lot 7 Block 1 Plan 7227 3,390.32 1,225.16 - 1,225.16 28,600

2346.510 508 115 Avenue Lot 8 Block 1 Plan 7227 3,390.32 1,225.16 - 1,225.16 28,600

2346.520 504 115 Avenue Lot 9 Block 1 Plan 7227 3,390.32 1,225.16 - 1,225.16 28,600

2350.000 500 115 Avenue Lot 10 Block 1 Plan 7227 3,648.24 1,326.84 - 1,326.84 31,700

34,517.97 9,170.54 - 9,170.54 202,500

Page 111 of146 Item 7.5 Item 7.6

REPORT TO COUNCIL

DATE: September 24, 2010 REPORT NO.: ADM 10-146

SUBMITTED BY: Kevin Henderson FILE NO.: 1-6-12 Director of Infrastructure and Sustainable Development

SUBJECT: NEAT Waste and Energy Assessment of City Hall

PURPOSE To advise Council of the results of the City Hall waste assessment recently completed by NEAT.

SUMMARY/BACKGROUND As directed by Council, staff invited the Northern Environmental Action Team (NEAT) to complete a waste and energy assessment of City Hall. The assessment resulted in a level four ranking, which is the highest score available. The NEAT report states that City Hall has taken significant strides to manage waste, and the organization and its employees share a culture of environmental awareness. The report addresses five key waste reduction areas: policies, prevention, diversion, alternatives, and energy. The report documents current practices and future opportunities for additional reductions or improvements in each key area. Staff will review the opportunities noted and implement where reasonable.

The complete report is attached for Council’s review.

NEAT will be completing waste and energy assessments on additional City buildings in the near future, with a goal to review all City buildings within the next 6 months.

ALTERNATIVES N/A

IMPLICATIONS (1) Social N/A

(2) Environmental The report confirms that the City of Dawson Creek is a leader in sustainability and “practices what it preaches”.

(3) Personnel N/A

Regular Council 04 Oct 2010 Page 112 of 146 Item 7.6

Report re: NEAT Energy Assessment City Hall Page 2 of 2

(4) Financial The energy assessments are provided by NEAT at no cost to the City.

GUIDING PRINCIPLES The Environment: We will demonstrate respect for the future of the earth by fostering recycling, reuse, and reduced consumption.

STRATEGIC PRIORITIES N/A

IMPLEMENTATION/COMMUNICATION NEAT will be presenting Council with a window sticker at the October 18th Council meeting so we can proudly display the level four ranking to internal and external customers.

RECOMMENDATION THAT Report No. ADM 10-146 from the Director of Infrastructure & Sustainable Development (September 24, 2010) re: NEAT Waste & Energy Assessment @ City Hall be received; further, that Council direct staff to work with NEAT to complete waste and energy assessments on all City buildings; and further, that staff be authorized to implement identified opportunities where reasonable and cost effective.

Respectfully submitted,

APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY

Kevin Henderson, AScT Director of Infrastructure and Sustainable Development

KH/th

Regular Council 04 Oct 2010 Page 113 of 146 Item 7.6

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Waste Assessment

Dawson Creek City Hall 10105 12A Street Dawson Creek, BC V1G 3V7 August 24, 2010

Business Overview

In 2005, Dawson Creek commenced an energy planning process that was designed to make municipal operations more environmentally sustainable. In 2007 the City of Dawson Creek captured national recognition by receiving the Federation of Canadian Municipalities award and was provincially recognized with the LiveSmart BC Green Cities Award. These awards only touch on the recognition Dawson Creek has received as a recognized municipal leader in sustainable community development. The City of Dawson Creek has branded itself Sustainable Dawson Creek. This community organizes events to benefit the advancement of sustainability at a champion level. The City Hall building in Dawson Creek is home for the administrative services for this community. The building is located at 10105‐12A Street. This assessment was conducted with the assistance of Melanie Turcotte, Sustainability Clerk for Dawson Creek. Currently, City Hall in Dawson Creek generates an average amount of waste compared to similarly sized facilities. The majority of the waste generated is from paper, due to the nature of the business.

Current Waste Reduction Practices in City Hall ‐ Policy

• The City Hall facility has an extensive environmental policy with distinct areas of commitment. The Mayor, Council and staff have adopted a proactive approach to making the facility a showcase for sustainability in the community and are very actively utilizing prevention, diversion and alternatives to their waste stream. The facility operates with Kevin Henderson (Director of Infrastructure and Sustainable Development) and Melanie Turcotte (Sustainability Clerk) having departmental responsibility for sustainability issues within the building. Their hands‐on approach allows for staff ideas and concerns to be discussed at regular meetings and for the development of formal policy dictating how to deal with environmentally related issues.

Opportunities for Waste Reduction in City Hall ‐ Policy

• City Hall’s extensive environmental policy is a major strength in their commitment to reducing their energy and waste stream. The following suggestions may provide

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an opportunity to engage the staff into further ‘buy in’ on current initiatives and poll them for new ideas. It is felt that it is critical that people feel invested on a personal level in order to embrace change. It is the small steps that make the difference.

THINGS TO CONSIDER: • Polling the current staff with a question such as: Do you believe it is of vital importance that our office becomes more environmentally friendly? Knowing what the employees believe about the environmental impact of your current practices can highlight areas for change that may otherwise go uncovered. • Forming a ‘green team’ of volunteer staff members to brainstorm opportunities for moving the offices’ green initiatives forward. Often the best ideas are generated from employees with their green ideas helping the bottom line. • Publishing (online) a formal environmental policy briefly outlining what is expected of staff. • Developing a ‘green office’ orientation package for new staff to explain the environmental policies and objectives and challenge an enthusiastic green team member with the responsibility of mentoring the new hires to establish good habits from day one. • Promoting green team events to challenge and team build through recognizing random acts of environmental kindness. Make it a fun game with a creative eco award.

Current Waste Reduction Practices in City Hall ‐ Prevention

• The office operates with a green purchasing policy. • Paper is bought in bulk and contains recycled content. • Emails are printed only when necessary. • The fax machine defaults to double side printing. • Phones are equipped with voice messaging which eliminates the need for message paper. • All faucets and toilets are leak free. • Toilets are low flush models.

Opportunities for Waste Reduction in City Hall ‐ Prevention

• Set up fax machine to format incoming faxes as emails, printing only as necessary. • Have all computers default to narrow margins for internal documents. • Use scrap paper for note taking and eliminate the use of sticky notes. • Review options for purchasing printer paper with a minimum of 60% recycled content as the current 30% in use is now considered being on the lower end of content. Paper made with 100% recycled content uses 44% less energy, produces

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38% less greenhouse gas emissions, 50% less waste water, 49% less solid waste and l00% less wood than using virgin wood. The statistics will not be as high when comparing 30% to 60% however, there will still be a significant impact. Bleached paper should also be avoided due to its impact on the environment. • City Hall is required to store large quantities of paper reports. These require clips, files, labels, and boxes to be stored in a designated room. Consider investigating which of these files may legally be scanned and stored electronically. For those that must be in their original format use recycled files, labels and boxes. • Investigate the feasibility of going to a paperless payroll system as many companies have chosen this format and subsequently substantially lessened their waste stream. • Ensure marketing materials are inventoried and deemed necessary prior to a second printing. Endeavour to find a greener solution to brochures and handouts as statistics indicate that 50%‐80% ends up as waste. • When the urinals need replacing consider opting for water free urinals, these can save thousands of litres of fresh water per year. • Consider installing rain barrels to capture rain water runoff. This could be used to accommodate the watering of perimeter plants during drought periods. • Consider locating an outdoor composting unit near the building to prevent transporting the organics offsite. • Ensure that any herbicides and pesticides are non toxic (if in use) and limit the use of fertilizers. It was discussed that consideration is being given to converting some of the present green space to xeriscape and low water landscaping. This is another example of the forward thinking solutions for sustainability in Dawson creek.

Current Waste Reduction Practices in City Hal ‐ Diversion

• All waste that is currently recyclable in the Peace River District is being recycled including ink cartridges electronics, and light bulbs. • A thorough recycling program is in place including organics, which are composted. • Recycling bins are adequate and sensibly allocated and identified with superior signage which includes reminders of what items may be placed in them. • There is some re‐use of binders and file folders.

Opportunities for Waste Reduction in City Hall ‐ Diversion

• Paper towels contribute over 40% of the waste generated in some office settings. Wherever possible, offices should attempt to cut down on the use of paper towels. Some programs are successfully composting the towels as organics, however, due to

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the volume of this waste it requires an enhanced organics collection program. Consider posting a reminder sign in the washrooms suggesting ‘using less’. Should this lessen the use by even 25%, the outcome is an environmentally friendly act that would pay off with some cost savings. • City Hall’s office composting indicates a truly committed eco‐leader in business. As City Hall is currently composting staff room waste, consideration could be given to having an ‘in house’ worm composter to accommodate the organics on site (see the indoor use models in Appendix C). • Obsolete IT equipment represents an ongoing challenge for offices. Many companies are now opting to lease their equipment which has several advantages. Not only is the equipment provided up to date with current programming, the older models being replaced are returned, refurbished or recycled in the most environmentally friendly manner. In the future, City Hall may wish to consider this option. In the meantime, continue with the options of re‐use programs or recycling alternatives available locally at the DC Recycling depot. • Styrofoam use is a constant problem. It was evident in City Hall as the packing materials for IT equipment. Requesting the use of moulded pulp in place of styrofoam packaging can sometimes be accommodated by suppliers. NEAT would like to suggest that this request be made whenever possible.

Current Waste Reduction Practices in City Hall ‐ Alternatives

• The staffroom is equipped with reusable utensils. • Some of the staffroom supplies are purchased in bulk. • A microwave and refrigerator are supplied to encourage staff to bring reusable containers for lunch. • Chemical cleaners are replaced with biodegradable or non‐toxic alternatives. • Paper towels and toilet paper contain some recycled content. • The bathrooms use bulk soap dispensers. • Live plants are used throughout the offices. • An aggressive green municipal vehicle purchasing policy, vehicle sharing and an idle reduction (anti‐idling) policy is in place. • Employees are encouraged to carpool and walk to work when weather permits.

Opportunities for Waste Reduction in City Hall ‐ Alternatives

• Permanent coffee filters for the staff room coffee maker will eliminate the need for paper filters. • Consider using soy based ink or remanufactured cartridges for printers.

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• Consider replacements for disposable pens which are usually made of plastic (many containing PVC which gives off harmful dioxins during production) and end up in the landfill. Purchase pens manufactured from recycled or sustainable biodegradable materials. Alternatives manufactured using recycled paper, recycled plastic cups, wood ends and reclaimed denim are now available. Refillable mechanical pencils need to be replaced far less often. Non toxic ink (including eraser board markers) is recommended to reduce the amount of toxins ending up in the water table. • Cleaning products can be the most hazardous and environmentally damaging chemicals in an office. A review of current products being used by the janitorial staff may be beneficial. Purchasing all cleaners in bulk containers will reduce packaging, switching cleaners to biodegradable versions wherever possible, or using plain vinegar and water, will lessen the impact on the environment (see Appendix A). • Using reusable microfiber cloths for janitorial use will help eliminate waste. • Purchase paper products for use in the public washroom that have a minimum 60% recycled content or are forestry stewardship certified (FSC). (Majesta toilet paper is both ecofriendly & soft!) • Air fresheners are unregulated and when used indoors can emit toxic pollutants. Opt for an earth sensitive product if these continue to be used. • Consider sensor activated hand air dryers as an alternative to paper towels in the public washrooms. • Recycled plastic bags are better for the environment than non‐ recycled however using 100% biodegradable and compostable bags are even better. Ensure that both the janitorial staff bags and internal bags are made of this content. • Office buildings emit chemicals from the carpets, upholstery, paints, computers and plastics (to name a few). City Hall has a mixture of live plants to help combat these toxins. A guideline of one plant per every 100 square feet is adequate but more is desirable. As well as reducing air pollution, the English ivy can help eliminate mould which can cause asthma. Living and open space areas have a proven effect of lowering employee stress levels resulting in happier, more productive employees. • Consider expanding the green transportation plan through further incentives for employees that carpool (preferred parking spots), employees using public transportation (discounted bus pass), encouraging employees to walk when possible (offering a per kilometre credit to their favourite charity), limiting travel by plane (through use of videoconferencing), purchasing carbon offsets when travel is a necessity.

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Current Waste Reduction Practices in City Hall ‐ Energy

• City Hall once again demonstrates their high level of environmental commitment through the generation of its own energy with a solar hot water system (to supply City Hall) in place. This step towards energy independence reinforces their commitment to combat the adverse environmental impacts of dependency upon fossil fuels. • The facility is implementing a system for tracking the costs of utilities for evaluation purposes. • Lighting in the building was upgraded during a retrofit. • Motion sensors are used on applicable indoor lights. • Zone thermostats are adjustable.

Opportunities for Waste Reduction in City Hall ‐ Energy

• The cold beverage vending machine located in the staff room is constantly drawing energy and seldom used. Consider testing it with an electricity usage monitor and determine if it is worth the convenience. • This assessment highlighted the ratio of printers/computers. Generally there is not a standard of ratio of users to printers because it is the overall volume of work, not the sheer number of users that will limit the printers’ ability to get the job done. Review the necessity for each user to have a ‘personal printer’ and consider departmental or work group printers. Surveys have found that this reduces the overall energy draw and cuts the cost of replacing ink cartridges as there will be less chance of them drying up prematurely. For privacy, some printers require a PIN to be entered prior to printing the document. • Reduce power draws from equipment not in use by putting clustered office equipment on a power bar and enforce turning the bar off at night and on weekends. A computer that is turned off but plugged in still uses 2.3 W to maintain local area network connectivity. PowerSmart suggests that a savings of up to $44 per annum per computer can be realized through ensuring computer screens are turned off nightly. Add in the printers and the savings increase. • Review all light fixtures and convert any non CFL lighting to energy efficient models, including light bulbs in the basement storage room. • Take the opportunity to maximize natural light by switching off any excess lighting on days when solar illumination is ample. • Ensure the janitorial staff close the curtains in the unoccupied offices during the hot summer days and (if the windows are insulated consider leaving the curtains open during the cold winter days to maximize the solar heat).

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• Some of the motion sensor lights were not working efficiently. Consider resetting these for maximum efficiency. Also, a review of areas not serviced by motion sensor lights may prove fruitful as these can easily be installed in areas such as the washroom in the basement where lights are often left on. • Make it policy to wipe down light fixtures twice yearly (or whenever a light bulb is changed). This will go a long way in ensuring that you benefit from all the light being produced from each bulb. • The heating and air conditioning system has been requiring some adjustments. This is presently being addressed. Wasted energy and heat=wasted money. • Change furnace filters (if applicable) every 6 months.

Summary

The Dawson Creek City Hall municipal building has already taken significant strides to effectively manage their waste. The results from the NEAT Waste Assessment have calculated The City of Dawson Creek’s municipal building at level four (out of a maximum of four). It is an enormous asset that staff’s philosophy is grounded in producing as little waste as possible and caring for the environment through their actions. The prelisted suggestions represent some further opportunities that could make a positive impact on the ‘waste‐line’ of the facility.

Congratulations, a facility with this achievement illustrates the highest levels of waste reduction through developing and performing strategies for protecting the local environment with a community minded focus. The organization exemplifies Sustainability, Charity, and Leadership in environmental initiatives. The organization and its employees share a culture of environmental awareness and reflect an understanding of social responsibility which reaches beyond their immediate surrounding and into the community. They organize annual community events promoting waste reduction (Community Cleanup & Swap Meet), they are a local steward of a particular environmental cause (One Million Acts of Green), they promote and plan for becoming a carbon neutral and zero waste facility, they illustrate community leadership and influence others to make environmental improvements ( LiveSmart BC Green Cities Challenge), and are now taking their commitment to a global scale by researching the opportunity to partner with a ‘sister city’ in China to share sustainability concerns and solutions.

Appendix A: Biodegradable Cleaners

Biodegradable cleaning products can be found at any of the local grocery or supply stores. While we do not endorse one particular brand, there are many to choose from including:

Regular Council 04 Oct 2010 Page 121 of 146 Item 7.6

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• Seventh Generation • Clorox • Simply Clean • Fruits & Passion At Home Ecological Heavy Duty Cleaner • Citra‐Solv Concentrated Cleaner & Degreaser • Nature Clean All‐Purpose Cleaning Lotion • Enviro‐friendly Ecolab cleaners have been successfully used throughout many office buildings. Use of this product claims to lower the use of water and energy while reducing the chemicals and waste released to the environment. These products include: glass cleaner, bathroom cleaner, neutral floor cleaner, all purpose bacterial cleaner and air freshener. Ecolab products can be viewed at http://www.ecolab.com/

Appendix B: Energy Incentives

BC Hydro and various levels of government currently have a variety of incentives available to businesses that are interested in reducing their energy consumption. The details of BC Hydro’s Product Incentive Program (PIP) are available at: http://www.bchydro.com/rebates_savings/product_incentive_program.html?WT.mc_id=in centives under incentives sheets.

Some general items to consider:

• LED lighting • LED or energy free exit signs • Occupancy sensors • Adjustable speed drive for HVAC • Carbon monoxide sensor • Computer power management software • Energy saving power bars

The province of British Columbia also has incentive programs available for businesses that are working to retrofit existing buildings in order to become more energy efficient and reduce greenhouse gas emissions (GHGe). Details on these programs can be found at:

http://www.oee.nrcan.gc.ca/commercial/financial‐ assistance/existing/retrofits/index.cfm?attr=0%29

Federal incentives from the Office of Energy Efficiency can be found at:

http://oee.nrcan.gc.ca/corporate/incentives.cfm

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Incentives offered through a variety of nation‐wide organizations can be found here:

http://canmetenergy‐canmetenergie.nrcan‐ rncan.gc.ca/eng/about_us/ottawa/funding/incentive_program.html

Appendix C: Composters

Compost Tumbler200 L (53 U.S. gal.) capacity (Available at Costco.ca)

Eco‐Composter68.8 L (71‐gallon) Capacity (Available at costco.ca)

Under sink NatureMillPlus XE3 indoor composter. (Available at Costco.ca)

Worm composters can be used indoors throughout the year. Worms and additional information can be found at NEAT.

As well, the generic black varieties are available through NEAT and other local retailers.

Regular Council 04 Oct 2010 Page 123 of 146 Item 7.7

REPORT TO COUNCIL

DATE: September 22, 2010 REPORT NO.: ADM 10-147

SUBMITTED BY: Shelly Woolf FILE NO.: 3-1-1 Chief Financial Officer

SUBJECT: August 31, 2010 Operational Budget Variance Report

PURPOSE To provide Council with the August 31, 2010 Operational Budget variance report. Refer to the attached schedule.

SUMMARY/BACKGROUND Revenues

Total operating fund revenues to date are $31.4 M compared to budgeted revenues of $33.3M, this equates to 94%.

Taxes and Grants in lieu Taxes levied are in line with budget at $13.7M. Outstanding amounts are reported off in the receivables report to Council.

Grants in lieu are $415K compared to a budget amount of $497K (84%). Letters are being sent out this quarter to all agencies to ensure amounts due are received prior to year end.

Fees and Charges Fees and charges to date are $2.5M compared to budgeted amounts of $2.9M (83%). Amounts are in line with budget after considering seasonal factors except for building permit and business licensing revenues which are higher than budget. Fire service revenue from Tembec is higher than budget due to extra fire services provided at the fire this summer.

Other Revenues (Gaming, Franchise Fees, Penalties & Interest on taxes, Miscellaneous) Other revenues are $707K compared to budgeted amounts of $1.1M (63%) and are in line with budgeted amounts. Gaming Revenues to date are $355K compared to budgeted amounts of $650K (55%) and the year to date amount is up from 2009 by $27K. Pacific Northern Gas franchise fees ($265,000) are not received until after year end. Air show revenues of $49,273

Regular Council 04 Oct 2010 Page 124 of 146 Item 7.7

Report re: Operational Budget Page 2 of 4

were reported offsetting expenditures of $92,707 for a net subsidy by the City of $43,434 compared to the $60K budgeted.

Government Transfers Government Transfers are at $11.02M compared to budgeted amounts of $11.2M (98%). Gas Tax funding was $37K over the amount budgeted but not received until September.

Interest on Investments Investment revenue is $21K and is slightly lower than the budgeted amount of $30K.

Water and Sewer Utility Fees Utility fees are $3M compared to budgeted amounts of $3.6M (82%). Water utility revenues are higher than budget due to bulk water sales ($1.5M compared to a budget amount of $1.4M) and sewer utility revenues are in line with budget.

Summary Actual operating revenues are comparable to budget at August 31, 2010 and it is projected that no major variances from budgeted amounts will result moving forward to yearend.

Expenditures

General Administration General administrative expenditures are at $1.81M compared to budgeted amounts of $3M (59%) and are in line with budget.

Environmental Development Environmental Development expenditures are $698K compared to budgeted amounts of $1.2M (60%). This category of expenditures includes special project initiatives, land development expenditures, economic development including tourism and energy and sustainability expenditures. Category totals are in line with budgeted amounts.

Environmental Waste Services Environmental Waste expenditures are $301K compared to budgeted amounts of $569K (53%).The year to date totals are in line with budget.

Protective Services Policing expenditures are $1.54M compared to budgeted amounts of $3.4M (45%). Year to date amounts are comparable to 2009, but somewhat lower than budget due to timing of filling budgeted staff positions.

Fire service expenditures are $1.6M compared to budgeted amounts of $2.6M (63%) and are in line with budget considering the extra costs of the Tembec fire which are offset by additional revenues.

Regular Council 04 Oct 2010 Page 125 of 146 Item 7.7

Report re: Operational Budget Page 3 of 4

Regulatory expenditures are $325K compared to budgeted amounts of $629K (52%) and are in line with budget.

Cemetery Services Cemetery services are $69K compared to budgeted amounts of $101K (69%). Year to date amounts are in line with budget.

Transportation Services Transportation services are $2.7M compared to budgeted amounts of $4.8M (57%). After considering seasonality factors, all amounts are in line with budget.

Recreation Services Recreation services are $4.72M compared to budgeted amounts of $7.1M. (67%) and are in line with budget.

The EnCana Events Centre year to date amount of $919K is cash advances only. Expenditures are not consolidated until yearend. We have received financial reports from Global Spectrum to the end of July and the year to date City subsidy (loss) is $972K compared to an annual budget amount of $1.167M (83%). Actual events to date are 38 compared to budgeted events of 41. Total attendance to date is 69,508 compared to budgeted attendance of 122,388 (56%). Gross income is $1.87M compared to budgeted amounts of $2.59M (54.2%). Gross operating expenditures are $2.84M compared to budgeted amounts of $3.38M (84.0%). Both revenues and attendance are up marginally from 2008 and with the Anchor tenant beginning their season and additional events to year end it is expected that year end actual amounts will be in line with budget.

All of the approved Community Service Grants and Fee for Service amounts have been paid.

Debt Services Principal and interest payments are $2.1M compared to budgeted amounts of $4.1M (52%). The timing of payments is determined by MFA and are in line with budget.

Water Services Water Utility expenditures are $1.25 compared to budgeted amounts of $2.3M (54%). Year to date expenditures are lower than budgeted due to contingency amounts worked into the department budget envelope for unforeseen repairs and/or breaks.

Sewer Services Sewer Utility expenditures are $445K compared to budgeted amounts of $734K (61%). Year to date expenditures are lower than budget due to contingency amounts worked into the department budget envelope for unforeseen repairs.

Regular Council 04 Oct 2010 Page 126 of 146 Item 7.7

Report re: Operational Budget Page 4 of 4

Summary

At August 31, 2010 total operational expenditures to date amount to $17.6M compared to a budget of $30.6M. (58%). All departmental budget envelopes are in line, any line item cost overruns are absorbed by other line items under budget. Monthly monitoring will continue and any unexplained variances reported on accordingly. A detailed report is available upon request.

ALTERNATIVES N/A

IMPLICATIONS (1) Social N/A

(2) Environmental N/A

(3) Personnel N/A (4) Financial N/A GUIDING PRINCIPLES We will have a reputation for acting with integrity and will earn the trust of our stakeholders by pledging to align our actions with the guiding principles that support our vision.

STRATEGIC PRIORITIES N/A

IMPLEMENTATION/COMMUNICATION N/A

RECOMMENDATION That Report No. ADM 10-147 from the Chief Financial Officer re: August 31, 2010 Operational Budget Variance Report be received.

Respectfully submitted,

APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY

Shelly Woolf Chief Financial Officer

SW/cf

Regular Council 04 Oct 2010 Page 127 of 146 Item 7.7

City of Dawson Creek

For the Eight Months Ending August 31, 2010

2009 YTD 2009 2010 Budget 2010 YTD % of Budget Used 2010 YTD vs 2009 YTD

General Municipal Taxes 11,813,101 11,850,825.62 12,085,198 12,042,076.11 100% 228,975 Water Frontage Tax 1,362,407 1,359,646.87 1,367,680 1,370,015.14 100% 7,608 Sewer Frontage Tax 344,217 344,216.79 338,108 345,300.37 102% 1,084 ------Net Municipal Property Taxes 13,519,725 13,554,689.28 13,790,986 13,757,391.62 100% 237,667

Net Collections for Other Govern -1,158 -6,040.42 0 -4,139.82 0% -2,982

Grants in lieu 393,460 504,133.21 497,007 415,697.61 84% 22,238

Policing Revenues 221,577 203,060.08 227,725 130,232.04 57% -91,345 Fire Department Revenues 19,664 43,905.60 40,000 156,384.38 391% 136,720 Building Inspection Fees 166,839 250,850.33 186,160 249,121.55 134% 82,283 Business Licenses 173,718 178,296.41 171,360 195,686.33 114% 21,968 Parking Violations 5,205 6,365.00 5,000 2,025.00 41% -3,180 Transit Fees 69,934 108,274.42 117,300 63,468.33 54% -6,466 Air Transportation 498,488 768,157.99 580,380 602,264.71 104% 103,776 Environmental Waste Fees 717,875 914,102.19 568,000 393,000.32 69% -324,874 Cemetery Fees 55,288 63,692.50 62,000 39,667.30 64% -15,621 Economic Development 3,500 203,894.75 0 0.00 0% -3,500 Swimming Pool Fees 398,108 539,182.70 550,100 373,598.76 68% -24,509 Recreation Program Fees 54,030 78,769.79 76,400 43,537.49 57% -10,492 Youth Care Fees 43,675 56,381.86 61,200 47,072.02 77% 3,397 Arena Fees 167,473 343,511.93 322,942 162,435.53 50% -5,038 ------Fees and Charges 2,595,375 3,758,445.55 2,968,567 2,458,493.76 83% -136,881

Other Revenues 656,185 1,329,937.07 1,124,449 707,853.93 63% 51,669

Government Transfers 11,275,757 11,889,175.81 11,248,627 11,016,628.44 98% -259,128

Return on Investments 14,249 35,165.79 30,000 21,080.83 70% 6,832 ------General Operating Revenues 28,453,593 31,065,506.29 29,659,636 28,373,006.37 96% -80,586 ------Water Utility Revenues 1,934,637 2,989,826.65 2,887,313 2,510,764.68 87% 576,127 Sewer Utility Revenues 545,152 798,335.58 801,500 512,545.55 64% -32,607 ------Total Utility Revenues 2,479,789 3,788,162.23 3,688,813 3,023,310.23 82% 543,521 ------Total Operating Revenues 30,933,382 34,853,668.52 33,348,449 31,396,316.60 94% 462,935 ------

Legislative 244,417 361,549.49 408,404 196,437.38 48% -47,980 Administration 681,437 1,109,825.55 1,096,470 653,903.97 60% -27,533 Excellence Program 100,964 142,450.53 131,469 79,269.00 60% -21,695 Finance 573,904 896,428.90 889,901 566,092.43 64% -7,812 Other General 381,021 602,085.24 519,597 312,838.18 60% -68,182 Election Expenditures 0 0.00 0 134.04 0% 134 ------General Government Services 1,981,743 3,112,339.71 3,045,841 1,808,675.00 59% -173,068 ------Project Initiatives 167,567 210,037.73 177,852 150,383.97 85% -17,184 Land Development 86,162 228,063.51 202,000 32,511.52 16% -53,651 Economic Development 554,195 839,803.58 607,865 398,549.65 66% -155,645 Energy Planning & Sustainability 174,781 295,961.55 181,250 116,907.92 65% -57,873

Regular Council 04 Oct 2010 Page 128 of 146 Item 7.7

City of Dawson Creek

For the Eight Months Ending August 31, 2010

2009 YTD 2009 2010 Budget 2010 YTD % of Budget Used 2010 YTD vs 2009 YTD ------Environmental Development Ser 982,706 1,573,866.37 1,168,967 698,353.06 60% -284,353 ------Environmental Waste Services 529,997 748,429.13 569,955 301,154.22 53% -228,843 ------Policing 1,570,659 3,027,955.38 3,436,028 1,542,537.83 45% -28,121 Fire Department 1,406,843 2,461,232.39 2,599,106 1,644,357.61 63% 237,515 Regulatory Services 482,324 708,049.41 629,875 324,562.03 52% -157,762 ------Protective Services 3,459,826 6,197,237.18 6,665,009 3,511,457.47 53% 51,631 ------Cemetery Services 72,711 102,889.69 101,222 69,214.09 68% -3,497 ------Common Services 563,140 1,029,606.39 965,603 546,584.69 57% -16,555 Public Works 1,667,560 2,347,710.67 2,006,293 1,097,345.66 55% -570,214 BC Transit Services 361,640 676,013.30 676,007 385,534.28 57% 23,894 Air Transportation Expenditure 846,773 1,253,164.67 1,227,805 730,969.25 60% -115,804 ------Transportation Services 3,439,113 5,306,495.03 4,875,708 2,760,433.88 57% -678,679 ------Parks and Playgrounds 793,914 1,147,564.03 1,082,917 729,441.73 67% -64,473 Community Grants and Fees for 163,055 204,902.50 186,540 157,435.00 84% -5,620 Community Services 151,776 263,931.22 299,056 163,723.40 55% 11,948 Old Post Office Building 40,766 62,308.52 48,217 31,232.18 65% -9,534 Multiplex 136,500 237,478.85 25,000 49,755.09 199% -86,745 Encana Events Centre 850,450 1,592,803.81 1,490,206 1,250,922.80 84% 400,473 Lakota Centre 78,025 118,881.60 116,868 88,264.51 76% 10,240 Centennial Swimming Pool 1,953 1,985.04 1,478 2,085.70 141% 133 Kenn Borek Aquatic Centre 942,100 1,498,062.89 1,484,712 935,447.55 63% -6,652 Recreation Programs 270,830 417,326.47 510,198 258,991.96 51% -11,838 Youth Care 91,384 135,648.62 145,323 86,086.87 59% -5,297 Kin Arena 218,305 371,276.77 409,775 217,162.28 53% -1,142 Memorial Arena 456,328 694,576.04 743,941 381,292.94 51% -75,035 Exhibition Grounds 58,628 101,951.51 79,116 59,045.97 75% 418 Public Library 325,573 464,665.29 472,696 313,451.84 66% -12,122 ------Recreation Services 4,579,585 7,313,363.16 7,096,042 4,724,339.82 67% 144,755 ------Interest 957,054 1,880,068.49 1,769,933 939,329.08 53% -17,725 Principal Payments 1,265,594 2,600,098.74 2,299,122 1,160,941.60 50% -104,652 ------Total Debt Services 2,222,648 4,480,167.23 4,069,055 2,100,270.68 52% -122,377 ------Subtotal 17,268,329 28,834,787.50 27,591,797 15,973,898.22 58% -1,294,431

Water Services 1,339,261 2,005,152.44 2,331,854 1,250,983.53 54% -88,277

Sewer Services 502,995 757,415.41 733,904 445,648.37 61% -57,347 ------Operating Expenditures 19,110,585 31,597,355.35 30,657,555 17,670,530.12 58% -1,440,055 ------Operating Surplus before transfe 11,822,797 3,256,313.17 2,690,894 13,725,786.48 510% 1,902,990

Transfer to Capital 3,000,000 2,873,463.46 3,500,000 0.00 0% -3,000,000 Transfer from Cemetery Fund 0 1,705.56 1,500 0.00 0% 0 ------Net Operating Surplus 8,822,797 384,555.27 -807,606 13,725,786.48 -1700% 4,902,990

Regular Council 04 Oct 2010 Page 129 of 146 Item 8.2

REPORT/RECOMMENDATION TO COUNCIL

DATE: September 13, 2010 REPORT NO.:TX 10-210

SUBMITTED BY: Shelly Woolf, C.A., B. Mgmt., FILE NO.: Bylaw No. 4077 Chief Financial Officer

SUBJECT: Permissive Tax Exemption Bylaw No. 4077

PURPOSE To request that Council approve the first three readings of Permissive Tax Exemption Bylaw 4077, 2010 subject to advertising before final approval at the October 18, 2010 Council meeting.

SUMMARY/BACKGROUND In accordance with Division 7 – Permissive Exemptions, S224(2) of the Community Charter, Council has the authority to exempt certain properties from taxation. As such, Permissive Tax Exemption Bylaw No. 4077, 2010 is presented for Council’s consideration. Schedule ‘A’ to the Bylaw incorporates the following requests for permissive exemption:

1. Dawson Creek Society for Community Living Roll# 1113.150 – 10108 14 Street S224(2)(a)(i) – land and improvements owned by a charitable corporation

2. Dawson Creek Society for the Mentally Handicapped Roll# 397.000 – 1334 102 Avenue S224(2)(a)(i) – land and improvements owned by a charitable corporation

3. Dawson Creek Society for Community Living Roll# 2562.000 – 1908 110 Avenue S224(2)(a)(i) & S224(2)(j) – land and improvements owned by a charitable corporation and owned and operated as a registered assisted living residence

The three organizations listed above are requesting a permissive tax exemption on their properties for the first time. The request is being put forward due to provincial funding cutbacks stating that programming may be affected if the exemption is not granted. Substantially all of the not for profit organizations currently on the tax roll receive exemption and providing these organizations with an exemption would provide consistency for all not for profit organizations within the City.

Regular Council 04 Oct 2010 Page 130 of 146 Item 8.2

Report re: 2010 Property Tax Exemption Bylaw

4. Dawson Creek Native Housing Society Roll# 380.010 – 10600 17 Street S224(2)(a)(i) – land and improvements owned by a not for profit corporation

“Driver House” is the facility recently built to improve the living standards of Aboriginal Elder population in Dawson Creek. On May 9, 2005 Council approved in principle the property tax exemption as part of a partnering strategy brought forward from BC Housing.

5. BC Grain Producers Association Roll# 4479.000 – 401 114 Avenue S224(2)(a)(i) – land and improvements owned by a not for profit corporation

BC Grain Producers Association is a not for profit established in 1986 to improve the viability of the grain and oilseed industry in the BC Peace Region. A new facility was built in Dawson Creek last year and the organization is requesting an exemption accordingly. Providing an exemption to this organization is consistent with other not for profit organizations in the City.

The following property has been removed from Schedule “A” as the group is no longer leasing a space in the Old Post Office Building.

6. 353 Mile Zero Squadron RCAC Roll# 329.030 – 10401 10 Street

In accordance with Division 7 – Statutory Exemptions, S220(1)(h) of the Community Charter, certain properties used for public worship are exempt from taxation. To ensure exemption of the entire property, Schedule ‘B’ – Church properties is attached. Properties listed on Schedule ‘B’ of the bylaw are the same as in 2009.

ALTERNATIVES Council can choose not to exempt any or all of the properties on Schedule ‘A’ of the Permissive Tax Exemption Bylaw No. 4077, 2010 and/or the land surrounding the properties included on Schedule ‘B’ of the bylaw.

IMPLICATIONS

(1) Social N/A

(2) Environmental N/A

(3) Personnel N/A

(4) Financial The estimated property tax that will be imposed on the properties included on Schedule ‘A’ to the Permissive Taxation Bylaw 4077, 2010, if they are not exempt is $1,252,830.89 (based on current assessment and 2010 tax rates.)

Regular Council 04 Oct 2010 Page 131 of 146 Item 8.2

Report re: 2010 Property Tax Exemption Bylaw

VISIONING IMPLICATIONS The bylaw requires adoption on or before October 31, 2010 to be in effect for the 2011 taxation year.

POLICY IMPLICATIONS N/A

IMPLEMENTATION/COMMUNICATION Once the bylaw is given first three readings staff will proceed with the notification as required under Section 227(1) of the Community Charter.

RECOMMENDATION That Report No. TX 10-210 from the Chief Financial Officer re: Permissive Tax Exemption Bylaw No. 4077, 2010 be received; further, that Permissive Tax Exemption Bylaw No. 4077, 2010 be given first three readings; and further, that staff be directed to publish the required notice as required under Section 227(1) of the Community Charter.

Respectfully submitted,

APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY

Shelly Woolf, C.A., B. Mgmt. Chief Financial Officer

SW/ts

Regular Council 04 Oct 2010 Page 132 of 146 Item 8.2

Dawson Creek Society for Community Living 1334~ 102nd Avenue Dawson Creek, Be V1G 2CB Telephone: (250) 782-2611 Fax: (250) 782-2662 Email: [email protected] www.dcscLorg

July 12, 2010

Re: Property Tax Exemption

I am writing this letter as a request and application for property tax exemption for our following buildings:

Opportunity Centre (Civic Address 10108-14,h Street) Mi II?>. ISo Administration Office (Civic Address 1334-I0200 Ave) Canalta Residence (Civic Address 1908-I 10th Ave)

We receive no Government or other funding for Property Tax costs at the above mentioned locations. With budgets becoming tighter we are seeking assistance to help reduce costs to run our various programs.

The Dawson Creek Society for Commuuity Living is helping to enrich the lives ofall persons with developmental and physical disabilities bypromoting their rights, interests and well-being.

We assist in the education and skill development as well as promote both citizen advocacy and selfadvocacy for persons with developmental and physical disabilities. We assist with the inclusion ofpersons with mental handicaps at all levels ofdecision making and planning affecting their lives and their integration into all levels ofcommunity life.

We strive to develop a better understanding by the general public ofthe abilities and needs of persons with developmental and physical disabilities.

Our Opportunity Centre houses a wide variety ofday and night activities for the people we serve. Activities include health and wellness classes including healthy cooking classes. We provide numerous artistic classes including drumming, dance, and craft making. We hold many social activities including movie nights, sleep overs and dances. All ofthese activities help to promote socialization and fun for a variety ofpeople, all ofour selfadvocates love attending the Opportunity Centre.

Our Canalta Residence has 4 bedrooms for persons with disabilities as well as one additional bed that is used as a respite and emergency bed. We provide 24 hour care in this home which ...anotforprofltsociety includes full meals and day to day support for everyday needs. The residents enjoy daily incorporated Aprit t958 activities and socialization. Programs SemllndependMl Uvioo Supported Work

Achievement Centre 3 Self Help Skills I Community Residences )j

Regular Council 04 Oct 2010 Page 133 of 146 Item 8.2

Our administration building houses all ofthe supervisory staffnecessary to ensure all our various programs run smoothly. Between the opportunity centre and the administration building our clients always have a place to stop in for a coffee and a visit!

We hope that you will take this request into consideration for the upcoming taxation year.

Please feel free to contact the office at 250-782-2611 ifyou require any further intorrnation regarding this request.

Thank you for your time, ~ry~ Kirsten Homme Finance Manager Dawson Creek Society for Community Living

Regular Council 04 Oct 2010 Page 134 of 146 Item 8.2

!..DaW1.0n {!uek cNatiuE. dlou.~!J doa.id!l 1042I.lOt.I, Street DaWliOll Creek. British Colum.bia VIG 3T8 Telephone (250) 182.1598 or 182.1451 fax (250) 182-1650

August 27, 2010

City of Dawson Creek HAND DELIVERED AUG 27 2010 Mayor and Council CITY OF DAWSON CREEK Box 150 Dawson Creek, BC V1G 4G4

Dear Mayor Bernier and Council:

RE: Dawson Creek Native Housing Society "Driver House" property's civic address 10432-17th Street.

We are writing to you today regarding the completion of Driver House. As you are aware the building is complete and has been granted a permit for occupancy. The building is a very positive move forward for our Aboriginal people and the City of Dawson Creek.

You will recall that one of the partnering strategies brought forward to BC Housing was the City's support for Property Tax Exemption for the development to ensure sustainability. It will be impossible to rent the units as affordable housing without property tax exemption. The project will not be sustainable without this assurance.

We are requesting your commitment to grant the society municipal tax exemption for this project. The project is located at 10432-17'h Street; this lot is currently fully developed.

Your pledge is detrimental to the present and future success of this project. This project will provide a model to demonstrate that a community working together can achieve success; in addition, this is an opportunity to improve the living standards ofour Aboriginal Elder population in Dawson Creek.

If you require additional information please contact me at your convenience. Your earliest response would be greatly appreciated. Thank you very much for your thoughtful consideration in this most important matter.

Respectfully, ~)'v~,\-hy)s"~ Sheila Hanshaw Project Coordinator

Regular Council 04 Oct 2010 Page 135 of 146 Item 8.2

B.C. GRAIN PRODUCER'S ASSOCIATION Box 6004, Fort St. John, B.C. V1J 4H6

September 8, 2010

City ofDawson Creek Box 150 Dawson Creek. BC VIG 4G4

Re: Property Tax Pennissive Exemption

Dear City of Dawson Creek Council Members:

The B.C. Grain Producers Association is requesting exemption from property taxes for the property and building located at 401·· 114 Ave, Dawson Creek.

The B.C. Grain Producer's Association is a non-profit organization, established in 1986 when concerned farmers united to promote and protect the interests ofthe grain & oilseed producers in the B.C. Peace Region. The association's mandate is to improve the viability ofthe grain & oilseed industry in the B.C. Peace Region ofBritish Columbia, and our current membership is 306 producers.

Our directors and committee members are actively involved in projects relating to researeh, business risk management, transpOltation, marketing and market development (biofuel), environment, wildlife impacts and current local landowner issues. We have affiliations with local, provincial and federal associations as well as participate on various government advisory committees.

Our research department performs one ofthe more visible roles we play in the community, with farmer initiated small plot research, which is based out of Dawson Creek and is conducted at sites near Dawson Creek and Fort St. John. Our research team is renowned for their quality workmanship as they test various crops varieties and agronomic practices for their suitability to the B.C. Peaec Region, as well as contribute towards research data benelicial to all grain tanners in Canada.

The research department has vcry speeilic lab, storage, and office needs, so B.C. Grain Producers partnered with the BC Grain Industry Development Council and the Western Grains Research fund to purchase proP(,rty and build a structure suited to the specific needs ofthe crop research department. A board room and some additional otlice space was integrated into this multi-purpose building to serve the association as well as other local agricultural groups who will be able to take advantage of this low cost meeting ~ ~ room alternative.

Regular Council 04 Oct 2010 Page 136 of 146 Item 8.2

The association is funded on a projeet-by-project basis and has very little revenue for additional expenses. The projected property taxes associated with this building i:; a significant amount that cannot be easily absorbed by the general association revenue or by the research department and would have to be directly funded by local tt1nners.

Please contact Colleen Anderson. /\dministrator/Bookkecper at 780-356-3116 or colleenanderson(l)telus.net for more specific tinancial and association information. I may be reached at 250-789-9287.

Thank you for your consideration ofthis exemption. we look forward to hearing from you regarding this requcst.

Sinccrely.

Irmgard Critchcr President. H.C. Grain Producers Association

Regular Council 04 Oct 2010 Page 137 of 146 Item 8.2

2010 Board of Directors - BCGPA (As elected at AGM on February 09, 20 10) Managing Office Box 6004, Fort St, John, B,C. VIJ 4116 Toll ti'ee: (866) 716-7170 Fax: (250) 785-5713 e-mail Q,,20l:£JJlI2tec, ""_ ',_Oi

North Peace South Peace Martin Moore Barry Follensbee R,R,#!, Comp, 13, Site 16, Box 87, Fort St. John, B.c. VIJ 4M6 Rolla, B.c. VOl' 2GO Tel: (250) 787-2588(H) 787-8784(W) Tel: (250)759-4583 Fax: (250)787-8754 Fax: (250)759-4582 Cell :(250)787-6774 Cell: (250) 784-5399 e-mail: [email protected] e-mail btollensbee(ii!xplornet.eom

Rick Kantz Garnet Berge ~2!ld Vice Prf!s RRI SI6 C76 Box 194, Fort St John, BC VIJ 4M6 Dawson Creek, B.C VI G 4G3 Tel: (250) 785-1135 Tel: (250) 759-4773 Cell: 250262 1964 Fax: (250)759-4333 Shop: 250 262-1954 Cell: (250)784-8887 E-mail: rkantz@pris,ea e~maij jg!2~cg~(!1lUj;::;~J2(,s:,'1

Robert Vander Linden Vice-President Irmi Critcher - President General Delivery, Box 566 Clayhurst, B,C. VOC IKO Taylor, B.c. VOl' 2KO Tel: (250) 781-3554 Tel: (250) 789-9287 (0) 789-9289 Fax: (250)781-3554 Fax: (250) 789-9280 Cell(250)262-8516 Cell: (250)784-6850 email:[email protected] e-mail: [email protected]

David Wuthrich -Treasurer Walter Fritsche Box 145 1021-1 18 Ave Cecil Lake, B,C, VOCIGO D",wson Creek, B.C VI G 3H4 Tel: (250) 781-3527 Tel: (250)782-7198 Fax: (250) Fax: Cell: 250 262-9043 Cell: (250)784-5124 e-mail:pwfarms@xplornetcom e-mail: nwiIlett(tl;tellls.net

Janet Banman - Office Admini\'frator Clair Langlois- Research Manager

RRI SI6C90 40()-; I6'h Ave Fort St John, H,C. VI J 4rvI6 Dawson Creek, H.C. VIG 3132 Tel: (250) 785-5790 (II) Tel: (250) 782-2557 Tel: (250) 785-5774 (BCGPA Ofliee) Email: [email protected] CeIl: (250) 793-5790 Fax: (250) 785-5713 Cell: (250) 787-3909 E-mail: '_'''''''~_-''~'4''-'-2,'-'=-'' CoUecn Andcrson- Bookkeeper (780) 356-3116 Cell: (250) 263-7053

Email: colleenanderson!(vtellls.net'.,/

Regular Council 04 Oct 2010 Page 138 of 146 Item 8.2

LATE ITEM

Regular Council 04 Oct 2010 Page 139 of 146 Item 8.2

LATE ITEM

Regular Council 04 Oct 2010 Page 140 of 146 Item 8.2

THE CORPORATION OF THE CITY OF DAWSON CREEK

BYLAW NO. 4077

A Bylaw of the Corporation of the City of Dawson Creek (hereinafter called "the City") to exempt certain properties within the City from taxation for 2011.

The Council of the City of Dawson Creek enacts as follows:

1. The following lands and improvements, situated within the boundaries of the City and listed on Schedule ‘A’ attached hereto, shall be exempt from taxation for the year 2011 pursuant to the provisions of Division 7 – Permissive Exemptions S224(1) of the Community Charter.

2. The following lands and improvements, used for the public worship of God, situated within the boundaries of the City and listed on Schedule ‘B’ attached hereto, shall be exempt from Taxation for the year 2011 pursuant to the provisions of Division 7 – Permissive Exemptions S224(1) of the Community Charter.

3. This Bylaw shall take effect upon adoption by the affirmative vote of at least two-thirds of Council and shall be in effect from January 1, 2011 to December 31, 2011.

4. This Bylaw may be cited as "PERMISSIVE TAX EXEMPTION BYLAW NO. 4077, 2010".

READ a first time this day of ,2010.

READ a second time this day of ,2010.

READ a third time this day of ,2010. , ADVERTISED this day of 2010.

ADOPTED this day of ,2010.

CERTIFIED A TRUE AND CORRECT COPY of Bylaw The Corporate Seal of THE CORPORATION No. 4077 cited as "PERMISSIVE TAX EXEMPTION OF THE CITY OF DAWSON CREEK was BYLAW NO. 4077, 2010". affixed in the presence of:

Brenda Ginter Mike Bernier – Mayor Director of Corporate Administration

Brenda Ginter – Director of Corporate Administration

Regular Council 04 Oct 2010 Page 141 of 146 Item 8.2

Permissive Tax Exemption Bylaw No. 4077, 2010 Page 2 of 5

SCHEDULE "A" TO 2011 PERMISSIVE TAX EXEMPTION BYLAW 4077 EXEMPT ROLL PROPERTY REGISTERED OWNER NUMBER LEGAL DESCRIPTION CIVIC ADDRESS TAXES

Dawson Creek Athletic Association 2105 Alaska (Centennial Recreation Centre) 5598.000 Lot 1, Plan PGP 36955 Highway 11,160.18

Dawson Creek Athletic Association 2100 Hart (Golf Course) 4392.000 Lot 3, Plan 21635 Highway 14,132.76

Dawson Creek Athletic Association 2121 Alaska (Golf Course) 5000.000 Parcel A, Plan 26918 Highway 40,502.00

Dawson Creek City of (Multiplex) 15.010 Part SE1/4 Section 11 300 Highway 2 982,224.86

Dawson Creek Community Christian 1761 110 Education Society 5589.000 Lot 1 Plan PGP35427 Avenue 54,822.82

Dawson Creek Historical Society (NAR Lot 1, Block 15, Plan 900 Alaska Park Station) 4925.010 26496 Avenue 5,185.30

Lot 2, Block 1, Plan 2958 1320 102 Nawican Friendship Centre 395.000 Except Plan 6941 Avenue 8,817.09

Roman Catholic Episcopal Corporation of Prince Rupert 337.000 Lot 4, Block 17, Plan 2678 912 105 Avenue 745.44

Roman Catholic Episcopal Corporation of Prince Rupert 338.000 Lot 5, Block 17, Plan 2678 916 105 Avenue 745.44

Roman Catholic Episcopal Corporation Parcel A (PJ 45809), Block of Prince Rupert 340.500 17, Plan 2678 913 104 Avenue 781.22

Rotary Harbour Society 235.000 Lot 5, Block 1, Plan 2285 10717 13 Street 15,779.18

Lot N 1/2 6, Block 1, Plan Rotary Harbour Society 236.000 2285 10721 13 Street 436.07

Lot S 1/2 6, Block 1, Plan Rotary Harbour Society 237.000 2285 10723 13 Street 436.07

South Peace Child Development Society 4860.050 Lot 2, Plan 25965 9001 10 Street 19,819.83

South Peace Community Resources Portion of Parcel A, Plan Society 3523.020 8801 10110 13 Street 10,808.92

South Peace Senior Citizen's Block C except Plan 1101 McKellar Association (Recreation Hall) 4202.000 28034, Plan 12537 Avenue 4,774.04

Regular Council 04 Oct 2010 Page 142 of 146 Item 8.2

Permissive Tax Exemption Bylaw No. 4077, 2010 Page 3 of 5

EXEMPT ROLL PROPERTY REGISTERED OWNER NUMBER LEGAL DESCRIPTION CIVIC ADDRESS TAXES

The British Columbia Society for the Prevention of Cruelty to Animals 2330.000 Lot 10, Block 2, Plan 7219 637 114 Avenue 2,242.29

The Corporation of the City of Dawson Creek (Lessee: South Peace Motor Sports Association) 5320.300 Lot 14, Plan 28275 65 Collins Road 632.14

The Corporation of the City of Dawson Creek (Lessee: South Peace Motor Sports Association) 5320.400 Lot 15, Plan 28275 61 Collins Road 891.55

The Corporation of the City of Dawson Creek (Lessee: South Peace Motor Sports Association) 5320.500 Lot 16, Plan 28275 57 Collins Road 2,108.11

The Corporation of the City of Dawson Creek (Lessee: South Peace Motor Sports Association) 5320.600 Lot 17, Plan 28275 53 Collins Road 1,547.54

The Governing Council of the Salvation Lot 17, Block 11, Plan 1019 103 Army in Canada 209.000 2244 Avenue 5,593.80

The Salvation Army BC North & Yukon Lot 18, Block 11, Plan 1021 103 Territory Division 210.000 2244 Avenue 6,729.85

Peace Region Internet Society 4210.000 Lot A Plan 12748 929 106 Avenue 11,458.94

Dawson Creek Society for Community Living 1113.150 Lot B Plan 3990 10108 14 Street 7,648.24

Dawson Creek Society for the Mentally 1334 102 Handicapped 397.000 Lot 4 Block 1 Plan 2958 Avenue 4,562.11

Dawson Creek Society for Community 1908 110 Living 2562.000 Lot 18 Block 6 Plan 7613 Avenue 3,400.73

Dawson Creek Native Housing Society 380.010 Lot 1 Plan BCP36236 10600 17 Street 11,905.62

BC Grain Producers Association 4479.000 Lot 2 Plan 24732 401 114 Avenue 22,938.76

Total tax exemption from the above properties $1,252,830.89

Regular Council 04 Oct 2010 Page 143 of 146 Item 8.2

Permissive Tax Exemption Bylaw No. 4077, 2010 Page 4 of 5

SCHEDULE "B" TO 2011 PERMISSIVE TAX EXEMPTION BYLAW 4077

EXEMPT PROPERTY ROLL TAXES ON REGISTERED OWNER NUMBER LEGAL DESCRIPTION CIVIC ADDRESS LAND

Lots 20 & 21, Block 11, Anglican Synod Diocese of Caledonia 212.000 Plan 2244 1029 103 Avenue $683.50

Parcel A (E013110) of Lot 17 and Amended Lot B.C. Conference of the Mennonite 18 (87041M), Block 3, Bretheran Churches 2542.000 Plan 7613 1800 109 Avenue 181.65

Parcel Z, Block 2, Plan Baptist Union of Western Canada 4020.000 10954 1400 113 Avenue 206.10

Christian & Missionary Alliance Canadian Pacific District 4860.000 Lot 1, Plan 25965 9009 10 Street 1,695.37

429 & 433 95 Church of the Nazarene 3172.000 Parcel A, Plan 8288 Avenue 790.63

Dawson Creek Community Church and Missionary Society 282.000 Lot 1, Plan 2641 1224 103 Avenue 483.23

General Church of the New Jerusalem in Parcel A (P2223) Block Dawson Creek, British Columbia 3110.000 7, Plan 7887 9013 8 Street 797.61

Governing Council of Salvation Army Lot 8, Block 5, Plan Canada West 265.000 2490 1436 104 Avenue 675.35

Grace Lutheran Church of Dawson Church 4465.100 Lot 1, Plan BCP30054 11101 17 Street 381.92

Lot 1, Block 3, Plan Grandview Chapel 2082.000 7090 900 94 Avenue 503.02 Lot 2, Block 3, Plan 2083.000 7090 904 94 Avenue 435.05

Lot 1, Plan 25167 Pentecostal Assemblies of Canada 4497.500 Except Plan 27495 11501 17 Street 924.53

President of Lethbridge Stake (Mormon) 5607.000 Lot 1, Plan PGP 45251 10901 13 Street 817.41

Roman Catholic Episcopal Corporation of Prince Rupert 5598.400 Lot A, Plan PGP37015 925 104 Avenue 8,229.69

St. James Presbyterian 4367.000 Lot 2, Plan 20730 1501 108 Avenue 255.00

Regular Council 04 Oct 2010 Page 144 of 146 Item 8.2

Permissive Tax Exemption Bylaw No. 4077, 2010 Page 5 of 5

EXEMPT PROPERTY ROLL TAXES ON REGISTERED OWNER NUMBER LEGAL DESCRIPTION CIVIC ADDRESS LAND St. Paul's Evangelical Lutheran Cong. Parcel A, Block 4, Plan 905 Cornwall Holding Society 2917.000 7752 Crescent 698.64

The BC Corporation of the Seventh Day Adventist Church 5550.000 Lot 1, Plan 30815 9201 14 Street 343.50

Trustees of the Congregation of Dawson Creek Corner Stone Christian Assembly 1286.000 Lot 6, Plan 4850 10221 18 Street 506.51

Trustees of the Congregation of the South Peace United Church. Executor, Trustee Lot 6, Block 4, Plan or Administrator 251.000 2285 1300 104 Avenue 952.48

Trustees of the Willowbrook Lots 4-7, Block 4, Plan Congregation of Jehovah's Witnesses 1431.000 5526 640 105A Avenue 213.09

Lot 6, Block 1, Plan United Pentecostal Church 828.000 3114 701 96A Avenue 349.32 Total Exempt Property Tax on Land $20,123.59

Regular Council 04 Oct 2010 Page 145 of 146 Item 12.1

CITY OF DAWSON CREEK STRATEGIC PRIORITIES CHART August 25, 2010 CORPORATE PRIORITIES (Council/CAO) • Community Centre Construction April Jim /Greg • Carbon Neutral Plan Report Card April Kevin • Sustainability Plan Report Card June ; Jim/Kevin • Sports Fields User Fees Rationale May Barry • Greenspace Corridor Public Review June Barry • Economic Development September Brenda • Public Communication Strategy September Brenda/Jim

ORGANIZATIONAL IMPROVEMENTS (Sharon/Jim) 1. Departmental staff development plans & desired outcomes (succession planning) 2. Organizational Restructuring

OPERATIONAL STRATEGIES FINANCE SERVICES (Shelly) CAO (Jim/Greg) 1. Debt mgmt policy Sept 1. Calvin Kruk Centre Design April 2. Capital Assets Mgmt report May 2. Public Communication Sept 3. User Fee Policy Sept 3. Collective Agreement Aug • Water rate charge implemented • Revised org chart structure • Review Purchasing Policy CORPORATE ADMIN (Brenda) OPERATIONS - SUSTAINABILITY (Kevin) 1. Economic Development Plan Sept 1. Carbon Neutral Plan Report Card Apr 2. Parks Inventory Dec 2. Sustainability Plan Report Card May 3. Land mgmt training (internal) Dec 3. Zoning Bylaw Update Sept • Public Communication Strategy Sept • Transportation Plan • Bylaw amendments Sept • GIS/Asset Mgmt/Capital Priorities Sept • Volunteer recognition ideas ; July • Biomass Project

FIRE DEPT (Shorty) RECREATION (Barry) 1. Fire & Life Safety strategy June 1. Sports Field User Fees Sept 2. Improved response models ; Sept 2. Greenspace Corridor Oct 3. Mutual Aid Agmt template ; Oct 3. Jr hockey startup Sept • Fire Underwriter Survey results • Ice Allocation Policy • Aquatic Centre review PUBLIC WORKS (Kevin/Shawn) RCMP (Strategic Priorities) 1. Effluent Reuse Aug 1. Organized Crime 2. Utility Rates (Bulk/Res) Apr 2. Traffic Safety 3. Develop. Cost Recovery Bylaw 3. Community Integration Strategy

EXTERNAL SERVICES Action By Contract Management evaluation criteria/checklist Brenda Oct. 2010 Public Service Awareness – message medium Jim July 2010 Interdepartmental Coordination – Parks/PW staff deployment, activity targets Kevin/Barry June 2010 Service Efficiency Program –2010 Departmental Action plans Jim/Sharon July 2010 INTERNAL SERVICES HR Business Case Greg Oct. 2009 Internal Communications Strategy - Survey resp. Greg Jan. 2010

Regular Council 04 Oct 2010 Page 146 of 146