300 Oufferin Avenue P.O. Box 5035 London, ON N6A4L9 London CANADA

December 6,2005

Chair and Members Board of Control

RE: Meeting of the National Board of Directors - Federation Canadian Municipalities Ottawa, Ontario - December I-3,2005

We are very pleased to provide the following summary and a copy of the FCM's election strategy for the Board of Control's information:

INTRODUCTION

Overview FCM's National Board of Directors met in Ottawa, December 1-3, 2005, for its regular meeting. With the January 23 federal election as a backdrop, the Board called on all federal parties to clarify where they stand on key municipal issues. Of specific concern during the course of the campaign, the Board identified the need to secure a long-term legislated commitment to eliminating the infrastructure deficit, as well as the need to secure the quick transfer of money for affordable housing and transit contained in Bill C-48, and to develop a strong partnership between the Government of Canada and the municipal sector. As part of this call, the Board urged the broadcasters' consortium that will organize the four scheduled leader's debates to guarantee municipal issues would be discussed (see attached news release).

Televised debate

In keeping with its proactive strategy, the Board kicked off the proceedings with a nationally broadcast town-hall meeting with representatives of the Liberal, Conservative and New Democratic parties to discuss and debate where the three parties stand on municipal issues.

Board members heard and questioned John Godfrey, Minister of State for Infrastructure and Communities, and opposition critics Rahim Jaffer of the Conservative Party of Canada and David Christopherson of the New Democratic Party. The event was co-sponsored by FCM and the Cable Public Affairs Channel (CPAC) and moderated by CPAC host Ken Rockburn and was broadcast live. CPAC will re-broadcast the event during the election campaign.

Fourth Municipal Leaders' Summit on Climate Change

In preparation for the Fourth Municipal Leaders Summit on Climate Change, co-sponsored by FCM, the International Council for Local Environmental Initiatives (ICLEI) and the City of Montreal, FCM First Vice-president and Winnipeg city councillor Gord Steeves, Montreal Mayor Gerald Tremblay, and ICLEI Secretary General Konrad Otto-Zimmerman briefed media via conference call.

Municipal leaders from around the world are meeting in Montreal from December 5 to 7 and will work toward a joint declaration on climate change initiatives and objectives. FCM is represented by Councillor Steeves and CEO James Knight. Election Strategy

The Board also developed an election strategy designed to push municipal issues and concerns onto the national agenda and the platforms of the federal parties during the election campaign.

STANDING COMMllTEE ON COMMUNITY SAFETY AND CRIME PREVENTION

Vice Chair Randy Goulden welcomed members of the committee and led the discussion on amendments and approvals of the committee's work plan. The committee reviewed a recommendationfrom Mayor Derek Corrigan of the City of Burnaby regarding the Mayors for Peace movement and agreed to forward the recommendation to staff for action.

Committee members discussed the effects of crystal methamphetamine use on their communities said municipalities should share information on local strategies to combat use of this drug. Councillor Berry Vrbanovic provided an update on the work of the National Coordinating Committee on Marijuana Grow Operations and Organized Crime Working Groups.

Major-General (Retired) Clive Addy presented an update on the research his firm, the National Security Group, is conducting for FCM. He was joined by former RCMP Commissioner Phil Murray. Research outcomes will include a comprehensive review of the Government of Canada's security initiatives, with consideration of the role municipal governments can play in developing current and future national strategies on emergency management, disaster mitigation and pandemics, and a final report on Government of Canada responses to the new security environment.

Staff presented the 2006-2007 Community Safety and Crime Prevention Policy Statement outline, which was reviewed and approved by the committee. The joint Chairs, Councillor Ron Hayter and Richelle Leonard, provided an update from the Joint Committee on Community Corrections. The committee discussed funding for policing in local communities, as well as various concerns related to the renewal of RCMP contracts in 2012. The committee also discussed the City of Toronto's pandemic plan and asked staff to circulate the report on the plan to the Board of Directors.

RURAL FORUM

Chair Larry McDermott provided an update on activities, including FCM participation in the Canadian Rural Revitalization Foundation Conference in Twillingate, NL, and meetings with Parliamentary Secretary Wayne Easter. Mayor McDermott outlined discussions with rural organizations in the United States and emphasized the need to build relationships with them.

Jack Hayden provided an overview of recommendations made by the Prime Minister's External Advisory Committee on Cities and Communities in its report, which will be released in April 2006. Research shows that rural communities are responsible for well over 50 per cent of the resources exported from Canada and are strong contributors to the national economy.

Rural constituents have clearly outlined the mounting infrastructure challenges in small communities and the importance of relationships between urban and rural communities. Mr. Hayden has forwarded a recommendation to the federal government to ensure full participation by rural members in the sector-table process.

The Forum agreed to establish a task force on rural advocacy groups to develop recommendations on structure and funding options for review by the Forum in March 2006. Members discussed the need to ensure representation from British Columbia, the Prairies, Ontario, Quebec and Atlantic Canada.

The Forum discussed a staff proposal to augment communications and strengthen the Forum's advocacy function by adding a media-outreach component to future Forum meetings. A new format was proposed for the meetings beginning in March 2006, with equal time allocated for advocacy and policy.

Mayor McDermott spoke about need to build the federal government's capacity to respond to the needs of rural communities. He suggested that a Minister responsible for rural affairs would strengthen this function. The Forum discussed the adverse effects the federal gun registry has had on rural and northern communities. Members examined the proposed outline for the 2006 policy statement on rural issues, and committed to approving the outline by conference call when additional comments have been received. Members also reviewed the status of the September 2005 committee recommendationsand received an update on the sector-table process.

NORTHERN FORUM

Chair Doug Graham provided an update on current events in Yukon, including efforts to develop a template for Integrated Community Sustainability Plans. Forum members indicated their interest in the material on youth exodus being developed by the Standing Committee on Social and Economic Development.

The Forum examined the proposed outline for the 2006 policy statement on northern issues and agreed to approve the outline by conference call when additional comments have been received. The Forum also discussed the value of sharing information regarding northern and rural issues across jurisdictions, and of institutional structures to strengthen relationships with Aboriginal groups in the territories.

To prepare for the upcoming federal election, the Forum reviewed issue briefings on the federal Northern Strategy, infrastructure, broadband and economic development. The Forum also reviewed the status of recommendationsfrom the September 2005 meeting.

Members discussed an update on the sector tables and expressed the need to represent issues from communities north of the 55Ih parallel. They cited travel costs as a significant barrier to northern participation.

Tanis Houck, Project Coordinator for FCMs Increasing Women's Participation in Municipal Government project, reported on progress to date and expressed interest in organizing a project workshop in the North.

STANDING COMMITTEE ON ENVIRONMENTAL ISSUES AND SUSTAINABLE DEVELOPMENT

The Standing Committee reviewed and adopted the proposed outline for the policy statement on environmental issues and sustainable development. Members were invited to submit additional comments to FCM staff before January 15. A more detailed draft of the policy statement will be distributed to committee members by January 31, 2006.

The Committee received an update on community energy missions and sector tables, then discussed and endorsed the recommendations included in FCMs submission to the federal government on the proposed offset system for greenhouse gas emissions. The report "Adapting to Climate Change: An Introduction for Canadian Municipalities" was provided to members for information purposes.

The Committee reviewed and discussed a draft of the Municipal Leaders Declaration, being developed for presentation at the Fourth Municipal Leaders Summit on Climate Change in Montreal, a parallel event of the 11th Session of the Conference of the Parties (COP11) to the United Nations Framework Convention on Climate Change (UNFCCC) taking place in Montreal Dec. 5-7.

STANDING COMMITTEE ON INTERNATIONAL RELATIONS FCM foreign partners and FCM staff were introduced. Brock Carlton, Director of FCMs International Centre for Municipal Development, reported on the status of the Municipal Partnership Program, the Global Advisory Board, and Sri Lanka and Indonesia tsunami reconstruction. Sebastien Hamel told members that a report will be forthcoming on the special committee established to oversee fund management in Sri Lanka. The Committee adopted the consent agenda, and members circulated to meet each project team and their partners at established booths. STANDING COMMITTEE ON FINANCE AND INTERGOVERNMENTAL ARRANGEMENTS

Chair Karen Leibovici led discussion on amendments to and approvals of the Committee's work plan. The Committee created a working group to develop the 2006 policy statement and discussed the need for the policy statement to emphasise sustainable funding for municipalities The Committee also discussed having Board reports of the other Standing Committees posted on FCM's website.

Gloria Kovach reported on FCM's budget submission to the House of Commons Standing Committee on Finance. Committee members discussed the need for ongoing advocacy with their Members of Parliament, for a year-long advocacy plan, and for a better understanding of the federal legislative process.Gord Steeves reported on recent developments with respect to the US.Western Hemisphere Travel Initiative on new U.S. passport requirements. Howard Moscoe updated the Committee on Payments in Lieu of Taxes (PILT), noting that a workshop is scheduled in December to discuss the PILT Best Practices. David Devine of International Trade Canada presented on upcoming WTO trade negotiations in Hong Kong, the International Trade Primer and other initiatives.

STANDING COMMITTEE ON MUNICIPAL INFRASTRUCTURE AND TRANSPORTATION POLICY

The Committee created a working group to develop the 2006 policy statement and discussed the need for the policy statement to include fitness and amateur sport infrastructure, as well as libraries and other cultural amenities. Councillor Mike Badham presented a five-year business plan for InfraGuide, which incorporates alternative revenue sources. Staff reported on recent initiatives of the RAC/FCM Rail Proximity Committee. Committee members and the National Board of Directors were invited to attend a RAClFCM Rail Proximity Committee workshop in Bromont, Quebec, immediately before the Board meeting there.

Councillor Howard Moscoe updated the committee on telecommunications and antenna tower issues. The committee agreed to use a portion of the Rights of Way Legal Defence Fund to support a part-time staff position, which will offset the high legal costs associated with the file. The committee also agreed to send an update of activities to municipal contributors to the Legal Defence Fund. John Hobbs, Executive Director of the Royal Architectural Institute of Canada made a presentation on urban design awards.

STANDING COMMITTEE ON INCREASING WOMEN'S PARTICIPATION IN MUNICIPAL GOVERNMENT

Councillor Louise Poirier provided an update on her participation in the first anniversary activities of Equal Voice (National Capital Region chapter). The Committee reviewed the proposed outline of the policy statement and suggested amendments for the next version, to be prepared for review in March 2006.

The Committee welcomed international guests, including Mayor Ortega of the City of San Fernando, Republic of the Philippines, who expressed support for women's participation in municipal government. An update of the 2005 scholarship presentation was provided and a sub-committee was formed to evaluate the 2006 scholarship applications.

The Committee received updates on the "Increasing Women's Participation in Municipal Government" Project. The Committee thanked Councillor Jeff McConnell, Councillor David Alexander, Councillor Pam McConnell, and Mr. Phillip Abrahams for their assistance in organizing a mobilization tour event in Toronto, ON, and project workshops in Virden, MB, and Hamilton, ON. Staff provided an update on upcoming workshops in Edmonton, AB, Regina, SK, Sydney, NS, and Moncton, NB. Committee members emphasised the importance of regional considerations when organizing project events.

Respectfully Submitted by

Councillor Bernie MacDonald FCM, Board of Director