Municipality of North Cowichan Regular Council AGENDA

Wednesday, June 4, 2014, 1:30 pm Municipal Hall - Council Chambers

Pages

1. CALL TO ORDER This meeting is open to the public. All representations to Council form part of the public record. Proceedings will be streamed live and archived at northcowichan.ca.

2. APPROVAL OF AGENDA

3. ADOPTION OF MINUTES 5 - 8

4. PUBLIC MEETINGS & HEARINGS

4.1 Annual Municipal Report 9 - 100 Opportunity for public to make submissions and ask questions regarding the 2013 Annual Municipal Report.

5. DELEGATIONS & PRESENTATIONS

5.1 BC Community Achievement Award 101 - 104 Recognition of local award recipient.

5.2 Maple Bay Community Association 105 - 106 Presentation by Justin Fryer on protecting North Cowichan's bays and harbours.

5.3 Cowichan Valley Hospice 107 - 108 Presentation by Gretchen Hartley regarding Cowichan Valley Hospice services and requesting support for item 9.1.

6. PUBLIC INPUT Opportunity for brief verbal input regarding agenda items from registered speakers.

7. BYLAWS

7.1 "Park Dedication (Echo Heights) Bylaw", No. 3455 109 - 110 Bylaw to dedicate Park (requires affirmative vote of 2/3 of all Council to pass). Recommendation:

That Council adopt "Park Dedication (Echo Heights) Bylaw", No. 3455.

7.2 "Zoning Amendment Bylaw (No. 4 - Echo Heights), 2014", No. 3542 111 - 112 Bylaw to rezone Echo Heights and related matters.

1 Recommendation:

That Council rescind first and second reading and abandon "Zoning Amendment Bylaw (No. 4 - Echo Heights), 2014", No. 3542. Recommendation:

That Council direct staff to designate Echo Heights Park as "Public Conservation" zone in North Cowichan's proposed new general Zoning Bylaw. Recommendation:

That Council authorize staff to apply to subdivide the remainder of Echo Heights that is not dedicated as park.

7.3 "Select Committees Bylaw", No. 3545 113 - 116 Bylaw to establish an Audit Committee as a select committee of Council and make sundry other changes. Recommendation:

That Council read a second and third time "Select Committees Bylaw", No. 3545.

7.4 "Officers Bylaw", No. 3538 117 - 130 Bylaw to establish municipal officer positions. Recommendation:

That Council read a second and third time "Officers Bylaw", No. 3538.

7.5 "Indemnification Bylaw", No. 3539 Bylaw to indemnify municipal officials acting in the course of their duties. Recommendation:

That Council read a second and third time "Indemnification Bylaw", No. 3539.

8. REPORTS

8.1 Statement of Financial Information 131 - 144 Annual statement of financial information prepared in accordance with the Financial Information Act. Recommendation:

That Council approve the 2013 Statement of Financial Information (in accordance with section 9 (2) of the Financial Information Regulation).

8.2 Outstanding Property Taxes 145 - 148 Proposal to write off uncollectable property taxes. Recommendation:

That Council request permission from the Province to write off $13,916.53 in outstanding property taxes for the foreshore lease formerly held by Chemainus Quay & Marine Ltd. (folio 315-18000.010).

8.3 Gas Tax Agreement Renewal 149 - 158 Report on changes as a result of new Gas Tax Agreement.

2 Recommendation:

That Council direct staff to drafts bylaws to:

1. amend the Financial Plan to show that North Cowichan will receive an additional $416,000 in Gas Tax funds in 2014, and 2. create a new reserve fund for any surplus Gas Tax funds until needed for future eligible capital projects.

8.4 Livestock Act Review 159 - 160 May 20, 2014 recommendation from the Agricultural Advisory Committee regarding the need for a review of the Livestock Act. Recommendation:

That Council direct staff to prepare a background report and proposed resolution for debate at the Union of BC Municipalities' 2014 annual convention to urge the Province to review the Livestock Act, particularly section 11.1, as clear legislation is needed to

1. allow livestock owners to protect their animals from attack by uncontrolled dogs, 2. defend livestock owners from lawsuits by dog owners, and 3. clearly place the responsibility for dog control on dog owners and not on livestock owners.

8.5 Chemainus Well Water Supply 161 - 162 Environmental Assessment Certificate Amendment to use the Chemainus Wells year round. Recommendation:

That Council authorize staff to apply for an amendment to the Chemainus Wells BC Environmental Assessment Certificate #W09-01 to authorize use of the Chemainus Wells year round.

9. CORRESPONDENCE

9.1 Regional Hospice Service 163 - 166 Request for consent to establish a regional hospice service. Recommendation:

That Council advise the Cowichan Valley Regional District (CVRD) that Council consents to the adoption of "CVRD Bylaw No. 3816 - Cowichan Valley Hospice Society Annual Financial Contribution Service Establishment Bylaw, 2014".

10. NOTICE OF MOTIONS

11. REVIEW OF COMMITTEE MINUTES 167 - 174 1. Agricultural Advisory Committee - May 20, 2014 2. Climate Change Advisory Committee - May 22, 2014

12. UNFINISHED & POSTPONED BUSINESS

13. NEW BUSINESS

14. QUESTION PERIOD Public opportunity to ask Council questions regarding the business of this meeting. 3 15. CLOSED SESSION Recommendation:

That Council close the meeting to the public on the basis of section (90) (1) (a) [committee appointment], (b) [Municipal award], (e) [proposed acquisition and disposition of land], and (g) [litigation] of the Community Charter.

16. ADJOURNMENT

4 Municipality of North Cowichan Regular Council MINUTES

May 21, 2014, 1:30 p.m. Municipal Hall - Council Chambers

Members Present Mayor Jon Lefebure Councillor Ruth Hartmann, (after 1:40 p.m.) Councillor John Koury Councillor Barb Lines Councillor Kate Marsh, (participating by telephone) Councillor Al Siebring Councillor Jen Woike

Staff Present Dave Devana, Chief Administrative Officer (CAO) John Mackay, Director of Engineering and Operations Mark Ruttan, Director of Administration and Deputy CAO Brian Green, Manager of Planning and Sustainability

1. CALL TO ORDER There being a quorum present, the meeting was called to order at 1:30 p.m.

2. APPROVAL OF AGENDA It was moved and seconded: That Council approve the agenda, as amended to add the following item under New Business:

10.1 Video Presentation. CARRIED

It was moved and seconded: That Council amend the main motion to add the following words: "and to defer items 7.3 and 7.5 to the next Committee of the Whole". DEFEATED Opposed: Mayor Lefebure, and Councillors Lines, Marsh, Siebring, and Woike

The main motion was then put and carried.

3. ADOPTION OF MINUTES Council adopted its May 7, 2014 regular Council meeting minutes as circulated.

4. PUBLIC MEETINGS & HEARINGS None.

1 5 May 21, 2014 - Regular Council Minutes

5. DELEGATIONS & PRESENTATIONS 5.1. Cowichan Community Policing Advisory Society Council received a presentation from Carol-Ann Rolls regarding the mandate of community policing and its current challenges and pressures. Carol-Ann Rolls invited input from Council, the RCMP and the public to obtain direction for the future of community policing, and received comments and questions from Council.

It was moved and seconded: That Council refer the topic of community policing to the Protective Services Committee for further discussion. CARRIED

6. PUBLIC INPUT Council received brief public input regarding agenda items from registered speakers.

7. BYLAWS 7.1. "Park Dedication (Echo Heights) Bylaw", No. 3455 It was moved and seconded: That Council read a second and third time "Park Dedication (Echo Heights) Bylaw", No. 3455, as amended. CARRIED Opposed: Councillor Koury

7.2. "Election Bylaw", No. 3544 It was moved and seconded: That Council adopt "Election Bylaw", No. 3544. CARRIED

7.3. “Officers Bylaw”, No. 3538, and “Indemnification Bylaw”, No. 3539 It was moved and seconded: That Council read a first time “Officers Bylaw”, No. 3538. CARRIED

It was moved and seconded: That Council read a first time "Indemnification Bylaw", No. 3539. CARRIED

7.4. "Zoning Amendment Bylaw (No. 5 - Highland Avenue), 2014", No. 3546 It was moved and seconded: That Council 1. read a first and second time "Zoning Amendment (No. 5 - Highland Avenue), 2014", Bylaw No. 3546, and

2 6 May 21, 2014 - Regular Council Minutes

2. require registration of two restrictive covenants before bylaw adoption to secure the requirements and conditions outlined in Attachment 4 of the Manager of Planning and Sustainability's May 21, 2014 report. CARRIED

7.5. "Select Committees Bylaw", No. 3545 It was moved and seconded: That Council read a first time "Select Committees Bylaw", No. 3545. CARRIED

8. REPORTS 8.1. Grant Request - Cowichan Valley Historical Society It was moved and seconded: That Council grant $2,000 to the Cowichan Valley Historical Society using funds remaining in the contingency. CARRIED

8.2. Scotch Broom It was moved and seconded: That Council support the Broom Busters pilot project by: 1. allowing staff to assist in developing a collaborative work plan; 2. granting access to North Cowichan's lands; and 3. providing up to $4000 to coordinate volunteers and dispose or chip vegetative matter. CARRIED

It was moved and seconded: That Council invite the Coastal Invasive Species Committee to an upcoming Council meeting to speak on the impact of higher priority invasive plants, and further, that Council consider allocating additional funds in future years to eradicate invasive species. CARRIED Opposed: Councillor Siebring

9. REVIEW OF COMMITTEE MINUTES Council reviewed, for information, the May 12, 2014 Community Planning Advisory Committee minutes.

10. NEW BUSINESS Council added the following late business to the agenda:

10.1. Agriculture Activities in the Cowichan Valley

3 7 May 21, 2014 - Regular Council Minutes

It was moved and seconded: That Council forward a copy of the video produced by local students regarding agriculture in the Cowichan Valley, to the Cowichan Regional Visitor Centre and School District for their use. CARRIED

11. QUESTION PERIOD Council received no questions from the public regarding business considered at this meeting.

12. ADJOURNMENT Council ended the meeting at 3:40 p.m.

______Signed by Mayor Certified by Corporate Officer

4 8 Annual Report 2013 FOR THE YEAR ENDED DECEMBER 31, 2013 9 This page has been intentionally left blank.

10 The Corporation of the District of North Cowichan 2013 ANNUAL REPORT

North Cowichan, British Columbia

T 250.746.3100 | F 250.746.3133 [email protected] | www.northcowichan.ca

11 MAYOR’S MESSAGE

On behalf of Council, I am pleased to introduce this promising results in our urban centres with the first new year’s Annual Municipal Report. As you will see in the mixed use building being constructed on the corner of following pages, 2013 was an eventful year in North Garden and James Streets in the University Village Area, Cowichan. We were able to move forward—and in and another building is being constructed in Crofton. some cases complete—some significant infrastructure We anticipate that by the end of 2014, more benefits projects while maintaining focus on our forward- will be realized from those taking advantage of this new looking strategic priorities. revitalization initiative designed to encourage modern development in the urban cores and bring new jobs to In order to properly care for the needs of residents the Cowichan Valley. and businesses, now and into the future, we need to be smart about how we grow our communities. To Our Climate Action and Energy Plan (CAEP), which this end, the Municipality has been actively working was selected for the top award by the Community with the communities of Crofton and the University Energy Association at the Union of BC Municipalities Village area to plan the revitalization, beautification and Convention in 2013, is now in the implementation densification of these urban centres. Creating local area phase. In a mutually beneficial partnership with BC plans for these growth centres will help us stay true to Hydro, we have begun the replacement of inefficient the policies and guiding principles of sustainable growth heating, cooling and pumping systems, thereby as outlined in our Official Community Plan. Not only do reducing energy consumption, in our South End Water we need to address issues of land use, infrastructure, System and more is planned for our major facilities (e.g. and transportation, but we also need to ensure these Fuller Lake Arena). These actions will save us substantial plans promote safe and healthy communities, outline amounts of money on our Municipal energy bills and beneficial services, and propose needed community reduce our carbon footprint. We are also working with amenities, all of which support a healthy economy. Your the community to reduce home energy use with the continued support and input during these planning Household Challenge that will start this September. processes will be key to creating the community that Please check out our website for more information on you envision. this and other events associated with the CAEP.

Increased densification in urban areas will create North Cowichan has a strong legacy of providing valuable local jobs and help reduce our vehicle emissions that public services while maintaining competitive tax rates account for 79% of greenhouse gas emissions in for residents and businesses wanting to locate in our North Cowichan. Along with the local area plans being Municipality. In 2013 we welcomed five new funding developed in Crofton and the University Village area, partners into the Cowichan Aquatic Centre—Regional the Municipality also adopted the Revitalization Tax District Electoral Areas A, B, C, D and E. We are pleased Exemption Bylaw. The Bylaw is designed to encourage that these residents can now enjoy, at our normal rates, mixed use and commercial developments in our the great recreational programs and aquatic activities designated urban cores, and industrial developments offered by our exceptional staff at the Aquatic Centre. It in our industrial areas. We are already seeing some is my hope that we will eventually find a way to include

iv | Municipality of North Cowichan 12 all residents within the Cowichan Valley Regional need to be provided with opportunities to tell us. As part District thus eliminating the two-tier fee system entirely. of Council’s desire to improve the way we communicate and interact with our citizens, we dedicated time to Agriculture is not only an important part of our heritage, developing a new Council Communications Plan. We it is also an important component of a healthy economy hope that, over the next year, we can make significant and vital to our survival. Preserving and supporting progress implementing the communication approaches agriculture continues to be a strategic priority. The outlined in this plan. With more effective issue Agricultural Advisory Committee (AAC) has developed management will come increased public awareness, a plan to improve agricultural opportunities in North education and engagement. I trust you will use every Cowichan. One of the Committee’s first suggestions, opportunity to help shape our community. which has been endorsed by Council, was to create a reserve fund for agriculture. Additionally, the AAC I would also encourage you to sign up for ‘Notifications’ has identified the Bonsall Creek Watershed Planning on our website www.northcowichan.ca as this will Initiative as a first step in helping farmers deal with enable you to stay engaged in current issues. If you both irrigation and storm water issues. This initiative is do not have time to share your views at a Council or 50% funded by a grant from the Investment Agriculture committee meeting, please take a moment to contact Foundation of BC, with support of the Federal and me by email at [email protected], or by phone Provincial Governments. The findings will help guide at 250.746.3115. similar water management issues in other watersheds in North Cowichan. We are confident that by sticking As a final note for 2013, I would like to thank the many to the plan, setting aside sufficient financial resources, citizens who have volunteered their time and energy and forming collaborative partnerships, we will reach to help keep this community safe, deliver the services our goals of protecting our agricultural land base, that support our enviable quality of life, promote a strengthening the economic vitality of farming, and healthy sustainable economy and preserve the natural promoting the importance of local food. environment that supports every aspect of life.

Looking forward in 2014, we hope to resolve some high profile issues. The future of Echo Heights, a road to Stoney Hill, planning for a new police headquarters, and the long-awaited skate park in Chemainus are a few of the challenges ahead.

We continue to deal with tough issues and have sought Jon Lefebure, Mayor public input more extensively than ever before. We recognize that your views are vital in helping Council make good decisions that reflect the best interests of the community. We need to know what you think, and you

Annual Report 2013 | v 13 14 TABLE OF CONTENTS

ANNUAL REPORT Mayor’s Message iv-v 2013 Officials 2 Organizational Structure 3 Elected Officials 4 Council Appointments 5 Historical Reeves & Mayors 6 Map of North Cowichan 7 Objectives and Measures 8-9 2013 Accomplishments 10-15

FINANCIAL REPORT Report from the Director of Finance 16 STATISTICAL INFORMATION 63 Financial Reporting Award 17 Five-year Statistical Review 64-73 CONSOLIDATED FINANCIAL STATEMENTS 19 Demographic Statistics 75 Top 10 Principal Taxpayers 76 Statement of Responsibility 20 Independent Auditor’s Report 21 Consolidated Statement of Financial Position 22 OTHER INFORMATION 77 Consolidated Statement of Operations 23 Consolidated Statement of Changes in Net Permissive Tax Exemptions 78-81 Financial Assets 24 Chemainus Off-street Parking 82 Consolidated Statement of Cash Flow 25 Development Cost Charges 83 Notes to the Consolidated Financial Statements 26-41 Declaration of Disqualification from Office 84 Schedules to the Consolidated Financial Statements 42-53 Duncan-North Cowichan Joint Utilities Board 54-61

Annual Report 2013 | 1 15 2013 OFFICIALS

MAYOR Jon Lefebure

COUNCILLORS Ruth Hartmann John Koury Barb Lines Kate Marsh Al Siebring Jennifer Woike

AUDITORS Hayes Stewart Little & Co.

BANKERS Royal Bank of Canada

SOLICITORS Young Anderson Taylor Granitto

2 | Municipality of North Cowichan 16 ORGANIZATIONAL STRUCTURE

Citizens of North Cowichan

Mayor and Municipal Council

Chief Administrative Officer Dave Devana, CA Director of Administration / Deputy CAO Mark O Ruttan, BA, MPA, CMC

Director of Finance Mark Frame, BBA, CGA

Director of Engineering and Operations John Mackay, P.Eng

Director of Development Services Scott Mack, M.Arch, B.Sc. (Plan) MCIP

Director of Parks and Recreation Ernie Mansueti

Director of Human Resources Gaya Laflamme

Manager of Information Services John Gunn

Municipal Forester Darrell Frank, RPF

Inspector, RCMP Inspector Ray Carfantan, OIC

Annual Report 2013 | 3 17 ELECTED OFFICIALS 2011-2014 MAYOR & MUNICIPAL COUNCIL The Municipal Council is North Cowichan’s governing body. North Cowichan’s Municipal Council is comprised of a Mayor and six Councillors. Each member of the Municipal Council was elected in November 2011 for a three- year term. Under the Community Charter, Council’s role is to provide good government; services its citizens’ need and want; stewardship of its public assets; and a positive economic, social and environmental climate. Council usually holds two regular council meetings each month, which are open to the public. Meeting agendas and schedules are available from the Municipal Hall or on the website at www.northcowichan.ca.

JON LEFEBURE MAYOR

RUTH HARTMANN JOHN KOURY BARB LINES COUNCILLOR COUNCILLOR COUNCILLOR

KATE MARSH AL SIEBRING JENNIFER WOIKE COUNCILLOR COUNCILLOR COUNCILLOR

4 | Municipality of North Cowichan 18 COUNCIL APPOINTMENTS COMMITTEES, COMMISSIONS AND BOARDS

INTERNAL COMMITTEES, BOARDS AND PANELS Agricultural Advisory Committee Forestry Advisory Committee Board of Variance Joint Utilities Board Chemainus Advisory Committee Parcel Tax Roll Review Panel Climate Change Advisory Committee Parks and Recreation Advisory Committee Community Planning Advisory Committee Protective Services Committee Economic Development Advisory Committee Sports Wall of Fame Nomination Committee

EXTERNAL APPOINTMENTS BC Forest Discovery Centre Chemainus Festival of Murals Society Chemainus and District Chamber of Commerce City of Duncan Tourism Advisory Committee Cowichan Communities Health Network Cowichan Region Community Policing Advisory Committee Cowichan Success-By-Six Cowichan Valley Regional District Board Cowichan Valley Regional District Heath Services Advisory Committee Cowichan Valley Regional District Safety Advisory Committee Cowichan Valley Regional District Sports Tourism Advisory Committee Cowichan Valley Welcoming Communities Advisory Committee Crofton Community Centre Society Duncan - Cowichan Chamber of Commerce Islands Agriculture Show Steering Committee Island Savings Centre Commission Maple Bay Community Association Mayor's Advisory Committee on Disabilities (City of Duncan) Regional Health Advisory Committee

Social Planning Cowichan Board Somenos Management Committee Vancouver Island Regional Library Board

Annual Report 2013 | 5 19 HISTORICAL REEVES & MAYORS SINCE INCORPORATION IN 1873

T.J. Skinner 1873 A.H. Green 1874 J. Morley 1875-1877 W. Drinkwater 1878-1879, 1888-1893 W.H. Lomas 1880-1882 W.C. Duncan 1883 J.N. Evans 1884, 1886-1887, 1900-1903, 1915-1917, 1923-1928 H.O. Wellburn 1885 S.H. Davie 1894-1895, 1904-1906 T.A. Wood 1896-1899 H. Bonsall 1907 J.Mc.L. Champbell 1908 A.C. Aitken 1909-1911, 1922-1923 P.W. Anketell Jones 1912-1913 J.I. Mutter 1914, 1918-1919 A.A.D. Herd 1920 E.W. Paitson 1921-1922 G.A. Tisdall 1929-1937 D.D. Chapman 1938-1949 A.E. Beasley 1950-1953 C.A.P. Murison 1954-1959 D.C. Morton 1960-1969 G.C. Smith 1970-1977 G.W. Whittaker 1978-1979 G.P. Bruce 1980-1987 H.R. Hollett 1988-1996, 2000-2002 A. Murray 1997-1999 J. Lefebure 2002-2008, 2011-Current T. Walker 2008-2011

6 | Municipality of North Cowichan 20 MAP OF NORTH COWICHAN Located on the east coast of Vancouver Island in the Cowichan Valley Regional District, North Cowichan is centrally located between the cities of Victoria to the south, and Nanaimo to the north. Vancouver is located to the east, separated by the Salish Sea. Spanning 195 square kilometers, North Cowichan is the largest District Municipality by area on Vancouver Island.

Vancouver

To Nanaimo

Surrey

Ladysmith

North Cowichan

Salt Spring Island Duncan

CANADA USA

Mill Bay Vancouver Island

Victoria

Annual Report 2013 | 7 21 OBJECTIVES AND MEASURES Prepared in compliance with sections 98(2)(d) and (f) of the Community Charter, this statement sets out Council’s broad objectives through 2015, corresponding performance measures, and a progress for previous years. Council’s primary objectives are to foster North Cowichan’s social, economic, and environmental well- being in order to be the best place on Vancouver Island to live, work and play. It is anticipated that the future format and content of the report will integrate progress monitoring and reporting on the key objectives and measures contained in North Cowichan’s Official Community Plan.

OBJECTIVE 1 FOSTER SOCIAL WELL-BEING TO CREATE HEALTHY, SAFE, INCLUSIVE AND VIBRANT COMMUNITIES Performance Measure 2012 Progress 2013 Progress

1 Crime rates 1 7.48% 6.92% 2 Vehicle accidents 2 268 279 3 Boil water advisories 3 0 0 4 Fire calls 4 757 809 5 Trails built 5 unavailable 10.28 km 6 Parks added 6 unavailable unavailable

OBJECTIVE 2 FOSTER ECONOMIC WELL-BEING TO ENCOURAGE A FLOURISHING AND DIVERSE LOCAL ECONOMY

Performance Measure 2012 Progress 2013 Progress

1 Housing starts 7 96 102

2 Non-residential building permits 8 11 12

3 New business starts 9 176 138

4 Unemployment rate 10 6.9% 7.5%

6 Assessment base 11 $4.47 billion $4.41 billion

7 General residential tax rate 12 3.8203 4.0927

8 Avg. general municipal home taxes $1,281 13 $1,332

OBJECTIVE 3 FOSTER ENVIRONMENTAL WELL-BEING TO PROTECT THE ENVIRONMENT & CREATE QUALITY GREEN SPACES

Performance Measure 2012 Progress 2013 Progress

14 1 Net carbon emissions 748 tonnes CO2e 986 tonnes CO2e 2 Trees planted in forest reserve 54,057 46,563

8 | Municipality of North Cowichan 22 NOTES OBJECTIVES AND MEASURES

1 The crime rate is a reflection of community safety and security, as well as an indicator of other social and economic problems. The crime rate includes actual confirmed crimes against persons, crimes against property, and other Criminal Code offences per 100 population. 2 The number of vehicle accidents is a measure of traffic safety. This measures includes fatalities and damages over $1,000. 3 The number of boil water advisories is a measure of the health and safety of municipal water systems. The number of advisories has been reduced due to the development of the new Chemainus wells. 4 The number of response calls to the North Cowichan Fire Department is an indicator of building safety. 5 The kilometres of trails built includes formal trails built by or for the Municipality. 6 The acres of parks added includes municipal and regional parks added during the previous year. 7 Housing starts includes news single and multi-family home starts. This figure is considered a good leading indicator for home sales and a major indicator of economic activity and consumer confidence. 8 The number of non-residential building permits issued is an important measure of a jurisdiction’s economic activity and attractiveness to investors. 9 The number of new business formations is an important measure of economic and entrepreneurial activity. 10 The unemployment rate is estimated by BC Stats for North Cowichan, Duncan and Electoral Areas D & E. It comprises the number of unemployed persons expressed as a percentage of the labour force. 11 The total net taxable assessment base for North Cowichan provides an estimate of the market value of all land and improvements assessed for general municipal purposes, according to BC Assessment’s revised roll. 12 Competitive property tax rates are an important measure of economic well-being. This figure represents the general portion of the residential property tax rate per $1,000 of assessed value. 13 Increase includes $275 tax shift from Class 4 - Major Industry to Class 1 - Residential. 14 Net carbon emissions are the amount of net greenhouse gas emissions per equivalent tonne of carbon dioxide emitted by North Cowichan’s municipal operations. This figure is reported annually in the Climate Action Revenue Incentive Program report to the Province of BC and includes offsets from introducing household organic waste composting.

Annual Report 2013 | 9 23 2013 ACCOMPLISHMENTS

CHEMAINUS RIVER BRIDGE

FLOOD PROTECTION WORKS

During 2013, phase 2 of diking along Beverly Street between Lakes Road and the Trans-Canada Highway was completed. Two-thirds funding was provided by the Federal and Provincial Governments, and the Municipality of North Cowichan and neighbouring jurisdictions contributed one-third funding. Once the final phase of diking is completed, the developed areas of University Village, the City of Duncan, and Cowichan Tribes will be protected from a 1 in 200 year flood. The dike also includes a 2.5 kilometre trail along the top, offering an additional recreational opportunity for the public. To date this has been very popular with walkers and joggers enjoying the views over the Somenos Marsh. Along with these flood protection works, Beverly Street was rebuilt and now includes bike lanes and improved pedestrian crossings.

10 | Municipality of North Cowichan 24 REPORT ON MUNICIPAL SERVICES AND OPERATIONS

CHEMAINUS RIVER BRIDGE REPLACEMENT

Replacing the existing timber bridge built in 1952, a new, low-maintenance steel plate girder bridge over the Chemainus River was opened to traffic in December 2013. The Federal Gas Tax Fund fully funded the $5 million project. The new bridge improves the connection between Crofton and Chemainus. It includes a wider deck that facilitates two-way traffic and includes a new bike lane for safe pedestrian and cycling passage as part of the Trans-Canada Trail, and the Cowichan Valley Regional Trail and Cycle Network. The project also included a partnership with the Halalt First Nation to enhance a Chemainus River side channel for salmon rearing.

BOYS ROAD ULTRAVIOLET (UV) WATER TREATMENT FACILITY

North Cowichan’s new water treatment plant for South End water users was completed in October 2013. The state-of-the-art ultraviolet water disinfection system provides continuous treatment of the well water supply without chemicals. The new building has been designed as a post-disaster seismic structure. Electrical upgrades to the 35-year old electrical control system, funded in part by a grant of $41,000 from BC Hydro, will help North Cowichan reduce its electrical costs

Annual Report 2013 | 11 25 2013 ACCOMPLISHMENTS

COWICHAN REGIONAL VISITOR CENTRE

CLIMATE ACTION AND ENERGY PLAN

With strong community support and collaboration, North Cowichan adopted a Climate Action and Energy Plan in February 2013 to help guide the future of land use, local economy, energy use, and emissions reductions in our community. The Community Energy Association recognized the Plan with its top Climate & Energy Action Award at the 2013 Union of BC Municipalities Annual Convention. The award specifically acknowledged the establishment of the Climate Action Reserve Fund which will enable North Cowichan to implement the Plan’s strategies and recommendations to reduce carbon emissions, conserve energy and save money over the next few decades.

12 | Municipality of North Cowichan 26 REPORT ON MUNICIPAL SERVICES AND OPERATIONS

COWICHAN REGIONAL VISITOR CENTRE

The construction of a new Regional Visitor Centre at the south-east corner of the Trans-Canada Highway and Drinkwater Road began in the spring and was completed at the end of the year. The project was managed by North Cowichan for the BC Forest Discovery Centre and the Duncan-Cowichan Chamber of Commerce. Working with a challenging triangular site, the diagonal cross section of a barn was the inspiration for the intriguing design that reflects the rich agricultural heritage of the Cowichan Valley.

NEW WEBSITE LAUNCH

In August, North Cowichan launched the newly-designed Municipal website at www.northcowichan.ca. The new site features improved navigation and organization of Municipal services, text size controls, language translation options, an improved search tool and a Spotlight function to bring attention to promoted programs. The new site design makes it easier for our audience to access information related to Council and Committees along with the numerous Parks and Recreation programs that run throughout the year.

REVITALIZATION

North Cowichan Council adopted a Revitalization Tax Exemption Bylaw. The Bylaw is expected to encourage new, mixed use developments in our urban areas and industrial developments in our industrially-zoned properties, support economic growth and create jobs. The first eligible development to take advantage of the new Revitalization Tax Exemption Bylaw is the new four-storey building on James Street in the University Village area. This mixed use development (office and residential) is expected to be completed in 2014, and will be a significant kick start to revitalization of this area.

Annual Report 2013 | 13 27 2013 ACCOMPLISHMENTS

COWICHAN AQUATIC CENTRE

CROFTON LOCAL AREA PLANNING PROCESS

Early in 2013, North Cowichan began a planning process with Crofton residents to develop a local area land use plan for Crofton. The local area plan for Crofton will be built on the goals and principles of the Official Community Plan by specifically reflecting the needs of residents and businesses now, and anticipating what will be needed in the future. The Plan is intended to provide strategic guidance for future decisions related to things such as land use, urban form, mobility and infrastructure issues. Based on enthusiastic participation in the public engagement process, the resulting Plan is expected to enhance the strong sense of community that currently exists for years to come.

14 | Municipality of North Cowichan 28 REPORT ON MUNICIPAL SERVICES AND OPERATIONS

NEW PARTNERS IN COWICHAN AQAUTIC CENTRE

Thanks to agreements reached between Regional District Electoral Areas A, B, C, D and E during 2013, more Cowichan Valley residents are able to enjoy the Cowichan Aquatic Centre at normal rates. This full-featured facility continues to draw people from all parts of the region who appreciate the variety of fitness classes, programs, and, of course, the pools!

MUNICIPAL HALL ADDITION

A long-awaited addition to the Municipal Hall was built in 2013. The existing Municipal Hall was constructed in 1967 and had reached capacity. The new addition provides additional offices, meeting rooms, a customer service counter, washrooms with showers and lockers, and collaborative workstations. As part of the Municipality’s commitment to “Wood First” the addition plan incorporated wood into many of the addition’s design elements. It is expected that this new addition will meet North Cowichan’s space needs for many years to come.

UNIVERSITY VILLAGE LOCAL AREA PLAN

Commencing in June 2013, the planning process began for the development of a local area land use plan for the area around Vancouver Island University / James Street / Beverly Street, known as University Village. This area has been identified as a key growth centre in North Cowichan’s Official Community Plan. North Cowichan, in collaboration with the City of Duncan, is exploring creative options for future growth and change in this area to produce a plan that will address long-term development. The Plan will also provide the foundation for economic, environmental and social development of the University Village area. Late in 2013, the project scope expanded to include Cowichan Tribes and the Ministry of Transportation and Infrastructure to make recommendations on how to improve the movement and safety of pedestrians, cyclists and vehicles along the Trans-Canada Highway corridor. It is expected that a draft plan will be ready for Council consideration in 2014.

Annual Report 2013 | 15 29 REPORT FROM THE DIRECTOR OF FINANCE

May 7, 2014

Mayor and Council Municipality of North Cowichan

Your Worship and Members of Council,

I am pleased to present the Municipality of North Cowichan’s 2013 Annual Financial Report for the fiscal year ended December 31, 2013, as required by sections 98 and 167 of the Community Charter. This report includes the auditor’s report, the 2013 financial statements, and supplementary information for the Municipality of North Cowichan. The Consolidated Financial Statements are the responsibility of the management of the Municipality of North Cowichan and were prepared by municipal staff in accordance with generally accepted accounting principles for local governments, as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants, and have been applied on a basis consistent with that of the preceding year. The Municipality maintains a system of internal accounting controls designed to safeguard the assets of the Corporation and to provide reliable financial information. We confirm and test these systems on a cyclical basis by contracted audit services. The audit firm Hayes, Stewart, Little and Company was appointed by Council and is responsible for expressing an opinion as to whether the consolidated financial statements fairly present the financial position of the Municipality of North Cowichan and the results of its 2013 operations. The 2013 audited financial statements were presented to and approved by Council. As at December 31, 2013, the Municipality had an accumulated surplus of $267 million, an increase of $11.1 million for the year. This is largely comprised of net investments in tangible capital assets ($237 million), which includes land, park infrastructure, roads, and utility assets. Debenture debt increased by $0.77 million to $22.3 million. The reserves increased by $.258 million to $6.5 million. Consolidated revenues increased by $7.6 million, taxation increased by $1.26 million, grants increased by $5.5 million and collections from developers and others decreased by $.46 million. Expenses increased by $0.7 million. Capital expenditures for the year were $20.1 million including $2.2 million in roads projects, $4.5 million on the Chemainus River Bridge, $4.9 million on the Lakes Road/Beverly Street dike, $4.9 million for water projects, $2.1 million on the Municipal Hall expansion, $.7 million for sewer projects and $.7 million in infrastructure contributed by developers. In 2013, North Cowichan increased the budget for tax supported capital from $2.86 million to $2.89 million. This amounted to 12.2% of 2013 property taxes being allocated to general capital compared to 12.7% in 2012. This is consistent with Council’s Revenue, Tax and Budget Policy adopted in 2010 requiring adequate capital funding of 10-15% of property tax revenues. Respectfully,

Mark Frame, CGA Director of Finance

16 | Municipality of North Cowichan 30 FINANCIAL REPORTING AWARD CANADIAN AWARD FOR FINANCIAL PLANNING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the District of North Cowichan for its Annual Report of the fiscal year ended December 31, 2012. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports.

In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual financial report whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles, and demonstrate an effort to clearly communicate the municipal government’s financial picture, enhance an understanding of financial reporting by municipal governments and address user needs.

A Canadian Award for Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Canadian Award for Financial Reporting program requirements, and we are submitting it to GFOA.

Annual Report 2013 | 17 31 18 | Municipality of North Cowichan 32 The Corporation of the District of North Cowichan CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013

[AUDITED] DECEMBER 31, 2013

Annual Report 2013 | 19 33 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statement of Responsibility

The accompanying consolidated financial statements are the responsibility of the management of the District of North Cowichan and have been prepared in compliance with legislation, and in accordance with generally accepted accounting principles established by the Public Sector Accounting Board of The Canadian Institute of Chartered Accountants.

In carrying out its responsibilities, management maintains appropriate systems of internal and administrative control designed to provide reasonable assurance that transactions are executed in accordance with proper authorization, that assets are properly accounted for and safeguarded, and that financial information produced is relevant and reliable.

The North Cowichan Municipal Council met with management and the external auditors to review the consolidated financial statements and discuss any significant financial reporting or internal control matters before approving the consolidated financial statements.

Hayes Stewart Little & Company, as the Municipality’s appointed external auditors, has audited the consolidated financial statements. The Auditor’s report is addressed to the Mayor and members of Council and appears on the following page. Their opinion is based upon an examination conducted in accordance with Canadian generally accepted auditing standards, performing such tests and other procedures as they consider necessary to obtain reasonable assurance that the consolidated financial statements are free of material misstatement and present fairly the financial position and results of the Municipality in accordance with Canadian generally accepted accounting principles.

Dave Devana Chief Administrative Officer May 7, 2014

20 | Municipality of North Cowichan 34

www.hslco.com

INDEPENDENT AUDITOR'S REPORT

To the Mayor and members of Council of THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN

Report on Consolidated Financial Statements We have audited the accompanying consolidated financial statements of The Corporation of The District of North Cowichan, which comprise the consolidated statement of financial position as at December 31, 2013, and the consolidated statement of operations, change in net financial assets, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluation of the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of The Corporation of The District of North Cowichan as at December 31, 2013 and its financial performance, changes in net financial assets and its cash flow for the year then ended in accordance with Canadian public sector accounting standards.

Other Matter Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The current year's supplementary information, including Schedules 1 to 11, has been presented for purposes of additional analysis. The supplementary information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and, in our opinion, this supplementary information is presented fairly, in all material respects, in relation to the consolidated financial statements taken as a whole.

Duncan, BC Chartered Accountants May 7, 2014 DUNCAN NANAIMO VICTORIA 823 Canada Ave. 30 Front St. 1000-747 Fort St. Duncan, BC V9L 1V2 Nanaimo, BC V9R 5H7 Victoria, BC V8W 3E9 Tel: 250.746.4406 | Fax: 250.746.1950 Tel: 250.753.2544 | Fax: 250.754.1903 Tel: 250.383.8994 | Fax: 250.383.8904

Duncan: 888.746.4406 | Nanaimo: 888.754.9551 | Victoria: 855.383.8994

Annual Report 2013 | 21 35 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Consolidated Statement of Financial Position AS AT DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

RESTATED FINANCIAL ASSETS 2013 ACTUAL 2012 ACTUAL Cash and cash equivalents (Notes 2 and 4) $2,413,069 $3,111,980 Temporary investments (Notes 2 and 4) 36,380,283 36,459,064 Accounts receivable (Note 5) 5,772,630 3,583,586 Property acquired for taxes (Note 2) 4,137,209 4,137,296 Deposit - Municipal Finance Authority (Note 9) 1,239,090 1,365,559 49,942,281 48,657,485

LIABILITIES Accounts payable and accrued liabilities (Note 6) 6,004,622 4,120,279 Employee future benefits and wages payable (Note 2) 3,445,902 3,233,289 Unearned revenue (Note 7) 3,285,328 3,757,362 Reserve - Municipal Finance Authority (Note 9) 1,239,090 1,365,559 Restricted reserves (Note 11) 6,765,155 7,195,898 Debenture debt (Note 13) 22,272,673 21,503,802 43,012,770 41,176,189

NET FINANCIAL ASSETS 6,929,511 7,481,296

NON-FINANCIAL ASSETS Tangible capital assets (Schedule X) 259,490,915 247,822,061 Inventory of supplies (Note 2) 614,153 606,464 Prepaid items 54,923 54,172 260,159,991 248,482,697

ACCUMULATED SURPLUS (Note 15 and 19) $267,089,502 $255,963,993

COMMITMENTS AND CONTINGENT LIABILITIES (Note 14)

Approved by:

M. Frame,

Director of Finance

See accompanying notes to the financial statements.

22 | Municipality of North Cowichan 36 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Consolidated Statement of Operations AS AT DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

RESTATED 2013 BUDGET 2013 ACTUAL 2012 ACTUAL REVENUE (Note 16) Taxation (Schedule I) $29,131,675 $29,157,058 $27,897,043 Sales of services (Schedule II) 9,212,724 10,147,745 8,896,641 Other revenue from own sources (Schedule III) 1,072,841 1,029,313 1,041,398 Gain on sale - 16,664 15,726 Return on investments 235,792 518,519 497,351 Grants and government transfers (Schedule IV) 7,255,930 8,106,819 2,589,619 Collections from developers and others 70,000 1,713,654 2,173,267 Transfer from cemetery trust - 4,378 4,000 46,978,962 50,694,150 43,115,045

EXPENSES General government services (Schedule V) 2,931,925 3,276,183 3,027,446 Protective services (Schedule VI) 8,331,017 8,087,517 7,357,668 Transportation services (Schedule VII) 9,460,056 8,884,844 9,130,683 Environmental health services (Schedule VIII) 1,509,846 1,445,782 1,619,496 Forestry services 1,391,430 1,459,565 1,214,269 Environmental development services 1,111,510 1,032,004 928,357 Recreation and cultural services (Schedule IX) 8,322,799 8,290,239 7,913,099 Interest 1,438,789 1,370,213 1,413,970 Water 3,650,710 3,311,480 3,200,407 Sewer 3,992,295 2,950,753 3,098,018 Write down of asset - 233,766 - Loss on sale - 5,775 224,134 Actuarial adjustment to debt - (779,480) (287,724) 42,140,377 39,568,641 38,839,823

ANNUAL SURPLUS $4,838,585 11,125,509 4,275,222

ACCUMULATED SURPLUS, BEGINNING OF YEAR (Note 15 and 19) 255,963,993 251,688,771

ACCUMULATED SURPLUS, END OF YEAR (Note 15 and 19) $267,089,502 $255,963,993

See accompanying notes to the financial statements.

Annual Report 2013 | 23 37 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Consolidated Statement of Changes in Net Financial Assets FOR THE YEAR ENDED DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

RESTATED 2013 BUDGET 2013 ACTUAL 2012 ACTUAL (Note 16) ANNUAL SURPLUS $4,838,585 $11,125,509 $4,275,222

Acquisition of tangible capital assets (23,577,832) (20,083,207) (11,607,938) Amortization of tangible capital assets 8,071,200 8,174,811 7,825,301 Gain on sale of tangible capital assets - (16,664) (15,726) Loss on sale of tangible capital assets - 5,775 224,134 Proceeds on sale of tangible capital assets - 16,664 84,600 Write-downs of tangible capital assets - 233,766 - (15,506,632) (11,668,855) (3,489,629)

Decrease (Increase) in prepaids - (750) 43,761 Increase in inventories - (7,689) (8,383)

- (8,439) 35,378

CHANGE IN NET FINANCIAL ASSETS (10,668,048) (551,785) 820,971

NET FINANCIAL ASSETS AT BEGINNING OF YEAR 7,481,296 7,481,296 6,660,325

NET FINANCIAL ASSETS AT END OF YEAR $(3,186,751) $6,929,511 $7,481,296

See accompanying notes to the financial statements.

24 | Municipality of North Cowichan 38 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Consolidated Statement of Cash Flow FOR THE YEAR ENDED DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

RESTATED 2013 ACTUAL 2012 ACTUAL OPERATING TRANSACTIONS Annual surplus $11,125,509 $4,275,222 Non-cash items included in surplus: Amortization of tangible capital assets 8,174,811 7,825,301 Actuarial adjustment to debt (779,480) (287,724) Write-downs of tangible capital assets 233,766 - Loss (Gain) on sale of tangible capital assets (10,889) 208,408 18,743,717 12,021,207

Temporary investments 78,781 (3,363,299) Accounts receivable (2,189,044) 2,333,218 Inventory of supplies (7,689) (8,383) Prepaid items (750) 43,761 Land acquired for taxes 87 124,173 Accounts payable 1,884,344 (1,101,759) Accumulated sick leave 212,613 369,570 Unearned revenue (472,034) (220,833) Restricted reserves (430,744) 652,419 Cash provided by operating transactions 17,819,281 10,850,074

CAPITAL TRANSACTIONS Proceeds on sale of tangible capital assets 16,664 84,600 Cash applied to acquire tangible capital assets (20,083,207) (11,607,938) Cash applied to capital transactions (20,066,543) (11,523,338)

FINANCING TRANSACTIONS Proceeds from debenture debt 2,500,000 745,475 Repayment of debenture debt (951,649) (925,870)

Cash applied to financing transactions 1,548,351 (180,395)

CHANGE IN CASH AND CASH EQUIVALENTS (698,911) (853,659)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,111,980 3,965,639

CASH AND CASH EQUIVALENTS, END OF YEAR $2,413,069 $3,111,980

See accompanying notes to the financial statements. Annual Report 2013 | 25 39 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Notes to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

1. GENERAL

The Corporation of the District of North Cowichan (the Corporation) was incorporated in 1873 under a statute of the Province of British Columbia and operates under the provisions of the Local Government Act and the Community Charter of British Columbia. The principal activities include community development, parks and recreation, police and fire protection, road transportation, forestry management, cemetery, solid waste, water utility, sewer utility, and fiscal services.

2. SIGNIFICANT ACCOUNTING POLICIES

It is the Corporation’s policy to follow Canadian public sector accounting standards and to apply such principles consistently. The following is a summary of the Corporation’s significant policies:

a) BASIS OF PRESENTATION

These consolidated financial statements consolidate the following operations: General Capital Fund General Revenue Fund Reserve Fund Water Systems Capital Fund Water Systems Revenue Fund Sewer Systems Capital Fund Sewer Systems Revenue Fund The Corporation has an interest in a significant cost sharing arrangement – the Duncan – North Cowichan Joint Utilities Board. Adjustments have been made to these consolidated statements to include the Corporation’s proportionate share of assets, liabilities and net revenues over expenditures of the administrative body at approximately the following percentage: Duncan-North Cowichan Joint Utilities Board 53.2%

b) BASIS OF ACCOUNTING

The Corporation follows the accrual method of accounting for revenues and expenses. Revenues are normally recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of the delivery of goods or services and/or upon the creation of a legal obligation to pay. Expenses paid in the current period and attributable to a future period are recorded as prepaid.

c) REVENUE RECOGNITION

i) Taxation revenues are recognized at the time of issuing the property tax notices for the fiscal year.

26 | Municipality of North Cowichan 40 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c) REVENUE RECOGNITION (CONTINUED)

i) Sale of services and user fee revenues are recognized when the service or product is ren- dered by the Corporation. iii) Grant revenues are recognized when the funding becomes receivable. iv) Revenue unearned in the current period is recorded as deferred revenue. v) Government transfers are recognized in the period in which events giving rise to the trans- fer occur, providing the transfers are authorized, any eligibility criteria have been met and reasonable estimates of the amounts can be made. a) CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash on deposit in qualifying institutions as defined in the community charter.

b) INVESTMENTS

Investments are recorded at cost which at December 31, 2013, would approximate market value. Investments consist of cash on deposit in the Municipal Finance Authority (“MFA”) investment funds that are highly liquid, readily convertible to cash, and are subject to an insignificant risk of change in value.

c) PROPERTY ACQUIRED FOR TAXES – DEEDED TO MUNICIPALITY

Land is shown at estimated historical cost.

d) EMPLOYEE FUTURE BENEFITS AND WAGES PAYABLE

The Corporation and its employees make contributions to the Municipal Pension Plan. The Corporation’s contributions are expensed as paid. Sick leave cash-out and severance benefits accrue to the Corporation’s employees. The liability relating to these benefits is determined in accordance with Section PS 3255 of the Public Sector Accounting Handbook of the Canadian Institute of Chartered Accountants. Actuarial gains and losses are amortized on a straight-line basis over the average remaining service life of employees. The following amounts are the accrued liabilities in respect of Employee Future Benefits and wages payable: 2013 2012

Wages payable $663,273 $669,805 Sick leave cash-out and severance benefits 2,782,629 2,563,484 $3,445,902 $3,233,289

Under the terms of the union contract, sick leave not taken in a year is carried forward to a maximum accumulation for 180 working days for each employee. On retirement or termination of employment after 5 years of service, sick leave accumulated is paid out at the employee’s prevailing wage rate.

Annual Report 2013 | 27 41 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Notes to the Consolidated Financial Statements - continued FOR THE YEAR ENDED DECEMBER 31, 2013

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

g) EMPLOYEE FUTURE BENEFITS AND WAGES PAYABLE (CONTINUED)

The Corporation also provides 30 days of paid leave at retirement, as prescribed by the Pension (Municipal) Act, at the employee’s prevailing wage rate. The liabilities for sick leave cash-out and severance benefits are based on an actuarial valuation as at December 31, 2013. 2013 2012

Accrued benefit obligation $2,668,873 $2,588,522 Unamortized actuarial gain/(loss) 113,756 (25,038) Accrued benefit liability $2,782,629 $2,563,484

Benefit expense: Current service cost $272,706 $246,965 Interest cost 74,400 70,235 Amortization of net actuarial (gain)/loss 7,524 15,317 $354,630 $332,517

Significant actuarial assumptions as at December 31st include:

2013 2012

Valuation interest rate 3.00% 2.80% Rate of compensation increase 3.75% 3.75% Expected coverage remaining service life (in years) 9.9 10.0

e) APPROPRIATED SURPLUS – GENERAL REVENUE FUND

General Revenue Fund appropriations are non-statutory reserves established at the discretion of Council. These reserves are outlined in Note 15. i) The reserve for property acquired for taxes is an amount set aside to offset the carrying value of property acquired for taxes. ii) Reserves for future expenditures are amounts set aside from past and current operations for future operating and capital expenditures. iii) The reserve for uncollected taxes is an amount set aside to offset uncollected taxes. iv) The reserve for mural protection is an amount set aside for the protection, enhancement and maintenance of the Chemainus murals and is established by by-law.

28 | Municipality of North Cowichan 42 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

h) APPROPRIATED SURPLUS – GENERAL REVENUE FUND (CONTINUED)

v) The reserve for the Joint Utilities Board is an amount set aside for future capital expendi- tures, established at the discretion of the Board. f) USE OF ESTIMATES

The preparation of financial statements in accordance with Canadian generally accepted accounting principles as recommended by PSAB requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditure during the reporting period. Significant areas requiring the use of management estimates relate to the determination of accrued sick benefits and retirement liability, collectability of accounts receivable, amortization of capital assets, deferred charges and provisions for contingencies. Actual results could differ from those estimates. Adjustments, if any, will be reflected in operations in the period of settlement.

g) LEASES

Leases are classified as capital or operating leases. Leases which transfer substantially all of the benefits and risks incidental to the ownership of property are accounted for as capital leases. All other leases are accounted for as operating leases and the related lease payments are charged to expenses incurred.

h) NON-FINANCIAL ASSETS

Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. The change in non-financial assets during the year, together with the excess of revenues over expenses, provides the change in net financial assets for the year.

i) TANGIBLE CAPITAL ASSETS

Tangible capital assets are recorded at cost less accumulated amortization and are classified according to their functional use. Cost includes all amounts that are directly attributable to the acquisition, construction, development or betterment of the asset. Donated assets are recorded at their estimated fair value upon acquisition. Certain tangible capital assets for which historical cost information was not available were recorded at the current fair market values, in the year of recognition, discounted by a relevant inflation factor. Certain assets are disclosed at a nominal value as the determination of current fair market value was not available. The cost, less residual value, of the tangible capital assets is amortized on a straight-line basis over their estimated useful lives as follows:

Annual Report 2013 | 29 43 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Notes to the Consolidated Financial Statements - continued FOR THE YEAR ENDED DECEMBER 31, 2013

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

l) TANGIBLE CAPITAL ASSETS (CONTINUED)

Land Indefinite Land Improvements 10 to 30 years Buildings 15 to 50 years Engineering Structures 10 to 60 years Machinery & Equipment 5 to 40 years Capital Works In Progress Life determined when complete

Amortization is charged on a monthly basis, starting the month following the date of acquisition and ending in the month of disposition. Capital works in progress are not amortized until the asset is available for productive use. Certain assets, which have historical or cultural value including works of art, historical documents, as well as historical and cultural artifacts, are not recognized as tangible capital assets because a reasonable estimate of the future benefits associated with such property cannot be made. Intangibles, Crown lands that have not been purchased by the Corporation, water, and other natural resources, are not recognized as tangible capital assets. i) Contributions of tangible capital assets Tangible capital assets received as contributions are recorded at their estimated fair value at the date the Corporation acquires ownership and are recorded as revenue. Land and infrastructure assets contributed to the Corporation in 2013 totaled $663,420 (2012 - $2,173,267) and were capitalized at their fair value at the time of receipt.

m) MATERIALS AND SUPPLIES

Inventories of materials and supplies are valued at weighted average cost with allowance made for damaged or obsolete goods.

3. FINANCIAL INSTRUMENTS

The Corporation’s financial instruments consist of cash and cash equivalents, temporary investments, ac- counts receivable, accounts payable and accrued liabilities, restricted reserves, and debenture debt. The carrying amount of these financial instruments approximates their fair value because they are short-term in nature or because they bear interest at market rates. Unless otherwise noted, it is management’s opinion that the Corporation is not exposed to significant interest or credit risks arising from these financial instruments.

30 | Municipality of North Cowichan 44 4. CASH AND INVESTMENTS

Cash and investments are comprised of cash on hand, cash on deposit at financial institutions and investments held in the Municipal Finance Authority of British Columbia investments funds. 2013 2012

Cash $2,413,069 $3,111,980 Temporary Investments 36,380,283 36,459,064 $38,793,352 $39,571,044 Temporary Investments consist of short-term investments in the Municipal Finance Authority of BC money market and intermediate funds and the market value is equal to the carrying value. Temporary Investments have yields ranging from 1.03% to 1.70%. Included in investments are the following restricted amounts that can only be expended in accordance with the terms of the Reserve and Restricted Reserve Funds. 2013 2012

Restricted Investments $13,233,941 $13,621,425

5. ACCOUNTS RECEIVABLE

2013 2012

Property taxes $2,214,264 $1,861,523 Water rates 135,570 129,569 Federal government 353,117 407,391 Provincial government 1,624,077 604,222 Local government 442,806 200,036 General 1,002,796 380,845 $5,772,630 $3,583,586

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2013 2012

General $5,339,605 $3,537,228 Salaries and wages 465,729 375,567 Accrued Interest 199,288 207,484 $6,004,622 $4,120,279

Annual Report 2013 | 31 45 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Notes to the Consolidated Financial Statements - continued FOR THE YEAR ENDED DECEMBER 31, 2013

7. UNEARNED REVENUE

2012 Contributions Revenue 2013 and interest earned or refunded

Prepaid taxes and licenses $1,265,845 $1,377,470 $1,265,845 $1,377,470 Service fees and deposits 1,990,886 684,229 1,036,308 1,638,807 Aquatic Centre unearned 95,855 442,607 397,372 141,090 revenue General unearned revenues 190,046 12,151 74,236 127,961 Cowichan Place – City of 214,730 - 214,730 - Duncan $3,757,362 $2,516,457 $2,988,491 $3,285,328

8. LISTING OF OPERATING EXPENDITURES BY OBJECT TYPE

The following provides a summary of operating expenses by object: 2013 2012 (Restated)

Salaries, wages and benefits $14,841,611 $14,410,936 Contract services 11,448,715 10,488,458 Amortization 8,174,811 7,825,301 Materials and supplies 4,506,996 4,764,748 Interest 590,733 1,126,246 Other 5,775 224,134 Total expense $39,568,641 $38,839,823

9. MUNICIPAL FINANCE AUTHORITY – RESERVE DEPOSITS

The Corporation issues debt instruments through the Municipal Finance Authority. As a condition of these borrowings, a portion of the debenture proceeds are withheld by the Municipal Finance Authority as a debt reserve fund. The Corporation also executes demand notes in connection with each debenture whereby the Corporation may be required to loan certain amounts to the Municipal Finance Authority. The details of the cash deposits and demand notes at year end are as follows:

32 | Municipality of North Cowichan 46 9. MUNICIPAL FINANCE AUTHORITY – RESERVE DEPOSITS (CONTINUED)

2013 2012

Cash deposits $362,266 $404,249 Demand notes 876,824 961,310 $1,239,090 $1,365,559

10. FUNDS HELD IN TRUST

These funds account for assets, which must be administered as directed by agreement or statute for certain beneficiaries. In particular, these funds are for the Cemetery Trust Fund. In accordance with PSAB recommendations on financial statement presentation for local governments, trust funds are not included in the Corporation’s Consolidated Financial Statements. A summary of trust fund activities by the Corporation is as follows: 2013 2012

Assets Cash and short term investments $310,979 $299,738

Equity Opening balances $299,738 $291,469 Contributions 15,619 12,269 Transfer to general revenue fund (4,378) (4,000) $310,979 $299,738

11. RESTRICTED RESERVES

Receipts which are restricted by the legislation of senior governments are deferred and reported as liabilities. Included in liabilities are reserves for development cost charges, the use of which, with any earnings thereon, is restricted by legislation or agreement with external parties. These amounts are recognized as revenue in the period in which corresponding expenditures are incurred. Development Cost Charges 2013 2012

Opening balances $7,195,898 $6,543,479 Contributions 439,906 560,383 Return on investment 106,951 92,036 Transfer to capital (977,600) - $6,765,155 $7,195,898

12. FEDERAL GAX TAX AGREEMENT FUNDS

Gas Tax funding is provided by the Government of Canada. The use of the funding is established by a

Annual Report 2013 | 33 47 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Notes to the Consolidated Financial Statements - continued FOR THE YEAR ENDED DECEMBER 31, 2013

12. FEDERAL GAX TAX AGREEMENT FUNDS (CONTINUED)

funding agreement between the Corporation and the Union of British Columbia Municipalities. Gas Tax funding may be used towards designated public transit, community energy, water, wastewater, solid waste and capacity building projects, as specified in the funding agreements. Federal Gas Tax Agreement Funds 2013 2012

Opening balance of unspent funds $0 $0 Add: Amount received during the year 790,235 790,580 Less: Amount spent (790,235) (790,580) Closing balance of unspent funds $0 $0

13. DEBENTURE DEBT

M.F.A Interest Maturity Date Originally 2013 2012 Issue Rate Approved Net Net Number Unmatured Unmatured General Capital Fund Chemainus Safety Bld 60 4.75% Apr 12, 2015 $1,950,000 $- $426,115 Maple Bay Fire Hall 95 4.17% Apr 12, 2025 1,600,000 1,104,912 1,175,618 Maple Bay Fire Hall 103 4.65% Apr 23, 2028 500,000 409,055 428,698 Cowichan Aquatic Ctr 104 5.15% Nov 20, 2028 15,000,000 12,271,656 12,860,945 Cowichan Aquatic Ctr 106 4.13% Oct 12, 2029 2,265,500 1,942,431 2,028,010 Duncan Curling Club N/A 4.00% Jan 15, 2032 551,500 514,245 533,244 Tier 2 Flood Protection 121 2.90% Oct 4, 2032 745,475 720,440 745,475 Tier 2 Flood Protection 124 3.15% Apr 8, 2033 1,000,000 1,000,000 - Municipal Hall 126 3.85% Sep 26, 2033 1,500,000 1,500,000 Expansion 25,112,475 19,462,739 18,198,105

Water Systems Capital Fund Chemainus 64 4.43% Sept 25, 300,000 65,556 85,361 2016 Chemainus 110 4.50% April 8, 2030 1,750,000 1,566,550 1,630,113

Crofton 106 4.13% Oct 13, 2029 530,000 454,420 474,441

South End 63 4.00% Dec 1, 2016 590,000 128,927 167,876 South End 63 4.00% Dec 1, 2016 200,000 43,704 56,907 3,370,000 2,259,157 2,414,698

34 | Municipality of North Cowichan 48 13. DEBENTURE DEBT (CONTINUED)

M.F.A Interest Maturity Originally 2013 2012 Issue Rate Date Approved Net Net Number Unmatured Unmatured Sewer Systems Capital Fund Chemainus 65 4.55% Apr 24, 2017 1,207,000 343,435 419,322

Crofton 65 4.55% Apr 24, 2017 728,700 207,342 253,157

South End 60 4.75% Apr 12, 2015 1,000,000 - 218,520 2,935,700 550,777 890,999

$31,418,175 $22,272,673 $21,503,802

Future payments on net outstanding debt over the next five years and thereafter are as follows:

Year General Water Sewer Total Principal repayments: 2014 $779,090 $109,531 $58,541 $947,162 2015 779,896 109,531 58,541 947,968 2016 780,734 109,531 58,540 948,805 2017 781,607 76,566 58,540 916,713 2018 782,515 76,566 - 859,081 Thereafter 8,434,940 900,998 - 9,335,938 12,338,782 1,382,723 234,162 13,955,667 Actuarial sinking fund earnings: 2014 146,499 52,952 69,246 268,697 2015 182,732 60,207 75,635 318,574 2016 220,414 67,789 82,344 370,547 2017 259,603 21,215 89,390 370,208 2018 300,360 25,127 - 325,487 Thereafter 6,014,349 649,144 - 6,663,493 7,123,957 876,434 316,615 8,317,006

$19,462,739 $2,259,157 $550,777 $22,272,673

14. COMMITMENTS AND CONTINGENT LIABILITIES

a) The Cowichan Valley Regional District debt is, under the provisions of the Local Government Act,

Annual Report 2013 | 35 49 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Notes to the Consolidated Financial Statements - continued FOR THE YEAR ENDED DECEMBER 31, 2013

a direct, joint and several liability of the Corporation and other local governments within the Cow- ichan Valley Regional District. b) Loan agreements with the Cowichan Valley Regional District and the Municipal Finance Authority provide that if at any time the scheduled payments provided for in the agreements are not sufficient to meet the Municipal Finance Authority’s obligations in respect to such borrowings, the resulting deficiencies become a liability of the Corporation.

c) The Corporation has guaranteed a commercial loan to a maximum of $400,000 to the Duncan-Co- wichan Chamber of Commerce. The loan matures September 1, 2014.

d) The Corporation and its employees contribute to the Municipal Pension Plan (Plan), a jointly trus- teed pension plan. The board of trustees, representing plan members and employers, is responsible for overseeing the management of the Plan, including investment of the assets and administration of benefits. The Plan is a multiemployer contributory pension plan. Basic pension benefits provided are based on a formula. The Plan has about 179,000 active members and approximately 71,000 retired members. Active members include approximately 173 contributors from the Corporation.

The most recent actuarial valuation as at December 31, 2012 indicated a $1,370 million funding deficit for basic pension benefits. The next valuation will be as at December 31, 2015, with results available in 2016. Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution plan accounting). This is because the Plan records accrued liabilities and accrued assets for the Plan in aggregate with the result that there is no consistent and reliable basis for allocating the obligation, Plan assets and cost to individual employers participating in the Plan.

The Corporation paid $975,324 (2012 $894,968) for employer contributions while employees con- tributed $857,947 (2012 - $799,753) to the Plan in fiscal 2013.

e) At the end of the year the Corporation was involved in a number of legal actions the outcomes of which are indeterminate at this time. The Corporation carries liability insurance with a current de- ductible of $25,000.

f) The Corporation has entered into three operating leases for photocopiers with terms ranging from 36 to 60 months. Under the operating leases, the Corporation is required to make monthly lease payments calculated by a formula specified in the agreement. Payments in 2013 totaled $8,072. As at December 31, 2013 the estimated balance outstanding was $20,429

36 | Municipality of North Cowichan 50 15. ACCUMULATED SURPLUS

2013 2012 (Restated) Operating Funds Unappropriated: General $1,440,071 $1,177,681 Water Systems 2,164,535 4,139,347 Sewer Systems 9,340,222 7,981,647 12,944,828 13,298,675 Appropriated: Reserves for property acquired for taxes: Property deeded to municipality 4,137,209 4,137,209 Reserves for future expenditures: General fund 4,080,397 3,495,262 Wharves 337,068 328,748 Ice arena 67,053 67,053 Reserve for uncollected taxes 1,295,091 1,531,868 Reserve for mural protection 26,684 18,826 Reserve for Joint Utilities Board 514,144 456,732 10,457,646 10,035,698 23,402,474 23,334,373 Capital Funds General Capital 184,191,009 175,897,108 Water Capital 27,656,072 24,719,780 Sewer Capital 24,091,788 24,470,451 Joint Utility Board Capital 1,279,373 1,331,484 237,218,242 226,418,823 Reserve Funds Land Sales 820,481 1,499,182 Machinery and Equipment 1,968,575 1,371,486 Local Area Service 1,039,722 846,899 Forest 1,148,454 825,324 Park Development 190,499 187,797 Parkland Purchase 352,891 603,298 Chemainus Parking 145,695 142,102 Oceanfront - 83,235 Agriculture 10,000 - Self-Insurance 113,306 111,698 Climate Action and Energy Plan 136,969 18,700 Maple Bay Sewer 157,297 155,066 Gravel Pits 384,897 366,010 6,468,786 6,210,797 $267,089,502 $255,963,993

Annual Report 2013 | 37 51 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Notes to the Consolidated Financial Statements - continued FOR THE YEAR ENDED DECEMBER 31, 2013

16. BUDGET DATA

The budget data presented in these financial statements is based upon the 2013-2017 Financial Plan Bylaw adopted by council May 1, 2013. The chart below reconciles the approved budget to the budget figures reported in these financial statements.

Financial Plan Bylaw surplus for the year $0 Add back: Principal debt repayment 1,056,402 Capital expenditures 23,577,832 Less: Amortization (8,071,200) Proceeds from borrowing (2,793,150) Budgeted transfers from reserve funds (2,385,234) Budgeted transfers from Development Cost Charges (566,000) Budgeted transfers from accumulated surplus (5,980,065)

Adjusted Annual Surplus $4,838,585

17. JOINT UTILITIES BOARD

The Duncan – North Cowichan Joint Utilities Board operates and maintains joint sewer lagoons on behalf of the City of Duncan and the District of North Cowichan. The distribution of expenditures related to operations is based on the number of users in each municipality as well as users from surrounding areas in the Cowichan Valley Regional District and the Cowichan Tribes. The Joint Utilities Board leases the sewage lagoon lands under a forty-nine year operating lease with the lease expiring July 31, 2060. The Corporation’s proportionate share of the future minimum lease payments is $159,659 per annum with an estimated annual increase of 2.2%. Because the percentage of units owned by the partners changes from year-to-year which produces different cost shares for each partner, there is a write down or write up of asset balances. In 2013 the Corporation recorded a write down of assets in the amount of $25,687 (2012 - $0) Financial results for the Joint Utilities Board are consolidated into the Corporation’s financial statements proportionately based on the units owned by each partner. In 2013 the Corporation’s proportion for consolidation purposes was 53.2% (2012 – 54.2%) Condensed financial information for the Joint Utilities

38 | Municipality of North Cowichan 52 Boards is as follows:

17. JOINT UTILITIES BOARD (CONTINUED)

2013 2012

Net financial assets $967,218 $842,637 Non-financial assets 2,406,782 2,456,492

Accumulated Surplus $3,374,000 $3,299,129

Revenues $870,500 $1,892,783 Expenses 795,629 778,377

Annual Surplus $74,871 $1,114,406

18. SEGMENT REPORTING

The Corporation’s operations and activities are organized and reported by fund. Services are provided by departments and their activities are reported in these funds. Certain departments have been separately disclosed in the segmented information, along with the services they provide as follows:

General Government Services

This segment includes Administration, Finance, Information Technology and other corporate services.

Protective Services

This segment includes police protection, fire protection, building and plumbing inspections, animal control, weed control, and other protective services.

Transportation Services

This segment is responsible for the construction and maintenance of the Corporation’s infrastructure, including drainage and transportation systems.

Environmental Health Services

This segment is comprised of garbage and recycling collection and the Mountain View Cemetery.

Forestry Services

This segment is responsible for the maintenance and management of the Municipal Forest Reserve.

Environmental Development Services

This segment includes planning and development, which includes processing development applications

Annual Report 2013 | 39 53 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Notes to the Consolidated Financial Statements - continued FOR THE YEAR ENDED DECEMBER 31, 2013

and developing related policies and regulations.

18. SEGMENT REPORTING (CONTINUED)

Recreation and Culture Services

The Parks and Recreation department manages, facilitates, and maintains a system of services, facilities, and parks to enhance the quality of life for the citizens of North Cowichan.

Water

This segment includes all of the operating activities related to the treatment and distribution of water throughout the Corporation.

Sewer

This segment includes all of the operating activities related to the collection and treatment of wastewater (sewage) throughout the Corporation.

Reserve Funds

These funds have been created to hold assets for specific future requirements pursuant to the Community Charter. For each reported segment, revenues and expenses represent both amounts that are directly attributable to the segment and amounts that are allocated on a reasonable basis. Taxes, grants in lieu of taxes and any revenues not directly attributable to a segment are apportioned to the General Revenue Fund service based on the net annual budget.

19. PRIOR PERIOD ADJUSTMENT

During the year the Corporation identified certain arterial, collector and local roads that had been inaccurately classified which affected the historical accumulated amortization and net book values used in the prior year financial statements. Also, during the year the Corporation changed its accounting policy for the useful lives of arterial and collector roads to more accurately reflect the net book value of these assets. The change in accounting policy affected the historical accumulated amortization and net book values used in the prior year financial statements. The Corporation applied the adjustments for the above error and change in accounting policy retroactively

40 | Municipality of North Cowichan 54 and prior periods have been restated as follows:

19. PRIOR PERIOD ADJUSTMENT (CONTINUED)

Opening Accumulated Surplus Accumulated surplus, as previously reported $252,490,793 Change in accumulated amortization due to useful life changes (802,022) Opening accumulated surplus, as restated $251,688,771

2012 Annual Surplus Annual surplus, as previously reported $4,259,463 Change in 2012 amortization due to useful life changes 14,173 Change in 2012 loss on disposals of tangible capital assets due to useful life 1,586 changes Annual surplus, as restated $4,275,222

2012 Tangible Capital Assets Net book value of tangible capital assets as previously reported $248,608,324 Change in opening accumulated amortization due to useful life changes (802,022) Change in 2012 amortization expense due to useful life changes 14,173 Change in 2012 loss on disposal of tangible capital assets due to useful life changes 1,586 Net book value of tangible capital assets, as restated $247,822,061

2012 Amortization expense Amortization expense, as previously reported $7,839,474 Change in 2012 amortization expense due to useful life changes (14,173) Loss on disposal of tangible capital assets, as restated $7,825,301

2012 loss on disposal of tangible capital assets Loss on disposal of tangible capital assets, as previously reported $225,720 Change in 2012 loss on disposal of tangible capital assets due to useful life (1,586) changes Loss on disposal of tangible capital assets, as restated $224,134

20. COMPARATIVE FIGURES

Certain comparative figures have been reclassified to conform to the current year financial statement presentation.

Annual Report 2013 | 41 55 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

TAXATION SCHEDULE I

2013 BUDGET 2013 2012 (Note 16) MUNICIPAL PURPOSES: General taxation $23,764,978 $23,737,196 $22,493,092 Business Improvement Area 91,900 87,319 91,827 Utilities 893,877 893,872 820,259 Grants in lieu of taxes 253,250 253,987 253,065 Tax Penalties 280,000 364,376 327,287 Water systems 1,698,986 1,682,917 1,636,133 Sewer systems 2,148,684 2,137,391 2,275,380

Total Municipal Taxes 29,131,675 29,157,058 27,897,043

COLLECTIONS FOR OTHER GOVERNMENTS: School 12,399,500 12,400,567 12,155,133 Cowichan Valley Regional Hospital District 1,938,750 2,388,779 1,900,740 Cowichan Valley Regional District 6,156,870 6,462,047 6,036,143 BC Assessment 389,260 385,024 381,558 Municipal Finance Authority 1,100 1,077 1,082

Total Collections for other governments 20,885,480 21,637,494 20,474,656

50,017,155 50,794,552 48,371,699

Deduct: requisitions remitted to other taxing authorities (20,885,480) (21,637,494) (20,474,656)

Total Taxes Collected $29,131,675 $29,157,058 $27,897,043

42 | Municipality of North Cowichan 56 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

SALES OF SERVICES SCHEDULE II

2013 BUDGET 2013 2012 (Note 16)

General government service $35,900 $38,929 $34,962 Protective services 277,550 288,172 255,306 Fire protection 158,190 156,658 160,623 Transportation service 106,150 126,821 130,725 Residential garbage - municipal 1,149,540 1,121,491 1,112,692 Forestry 1,443,325 1,904,171 1,232,674 Cowichan aquatic centre 1,749,296 1,754,454 1,568,310 Fuller Lake arena 293,830 274,576 284,275 Other recreation 24,330 48,836 35,908 Wharves 206,040 194,446 195,808 Miscellaneous 83,960 229,225 100,993 Cemetery 119,170 128,846 104,175 Water 2,055,644 2,282,609 2,135,305 Sewer 1,509,799 1,598,511 1,544,885

$9,212,724 $10,147,745 $8,896,641

Annual Report 2013 | 43 57 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

OTHER REVENUE FROM OWN SOURCES SCHEDULE III

2013 BUDGET 2013 2012 (Note 16)

Licences and Permits $766,320 $585,902 $741,729 Fines 1,840 2,200 3,900 Rentals 271,887 421,375 276,064 Water 20,228 19,836 19,705 Sewer 12,566 - -

$1,072,841 $1,029,313 $1,041,398

44 | Municipality of North Cowichan 58 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

OTHER REVENUE FROM OWN SOURCES GRANTS AND GOVERNMENT TRANSFERS SCHEDULE III SCHEDULE IV

2013 2013 BUDGET 2013 2012 BUDGET 2013 2012 (Note 16) (Note 16) OPERATING GRANTS Licences and Permits $766,320 $585,902 $741,729 Traffic Fines Revenue $196,000 $195,173 $399,603 Fines 1,840 2,200 3,900 Other Grants 128,930 87,150 123,705 Rentals 271,887 421,375 276,064 Water 20,228 19,836 19,705 324,930 282,323 523,308 Sewer 12,566 - - CAPITAL GRANTS $1,072,841 $1,029,313 $1,041,398 Fuel Tax 791,000 790,235 790,580

Infrastructure Grants (Prov/Fed) Chemainus River Bridge 4,500,000 3,860,086 507,034 Diking - 3,114,175 396,697

4,500,000 6,974,261 903,731

ICBC Grants 80,000 60,000 72,000

Provincial and other Grants Osborne Bay Sea Trail - - 300,000 Visitor Information Centre 1,560,000 - -

1,560,000 - 300,000

$7,255,930 $8,106,819 $2,589,619

Annual Report 2013 | 45 59 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

GENERAL GOVERNMENT SERVICES SCHEDULE V

2013 BUDGET 2013 2012 (Note 16)

Legislative $235,760 $235,931 $226,182 Administration 1,185,512 1,194,636 1,131,236 Financial management 1,464,465 1,495,858 1,464,107 Common services 428,608 551,435 546,333 Other government services 137,440 221,514 156,452 Administration recoveries (574,860) (532,919) (555,953) Amortization 55,000 109,728 59,089

$2,931,925 $3,276,183 $3,027,446

46 | Municipality of North Cowichan 60 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

GENERAL GOVERNMENT SERVICES PROTECTIVE SERVICES SCHEDULE V SCHEDULE VI

2013 2013 BUDGET 2013 2012 BUDGET 2013 2012 (Note 16) (Note 16) POLICE PROTECTION: R.C.M.P. contract $4,389,340 $4,216,110 $3,689,920 Legislative $235,760 $235,931 $226,182 Municipal employees 1,237,904 1,192,435 1,026,136 Administration 1,185,512 1,194,636 1,131,236 Crime Prevention 7,000 7,000 7,000 Financial management 1,464,465 1,495,858 1,464,107 Building maintenance 201,430 202,168 169,975 Common services 428,608 551,435 546,333 By-law enforcement 56,980 61,637 57,973 Other government services 137,440 221,514 156,452 Administration recoveries (574,860) (532,919) (555,953) 5,892,654 5,679,350 4,951,004 Amortization 55,000 109,728 59,089 FIRE PROTECTION: $2,931,925 $3,276,183 $3,027,446 General fire protection 93,884 91,747 94,279 Chemainus fire hall 289,873 277,341 271,639 Crofton fire hall 250,780 273,555 246,593 Maple Bay fire hall 257,328 237,385 248,182 South End fire hall 362,542 338,257 311,391

1,254,407 1,218,285 1,172,084

OTHER PROTECTION: Building and plumbing inspections 497,090 513,987 542,373 Animal control 150,700 144,431 150,564 Weed control 7,046 8,138 7,172 Mosquito control 42,120 26,263 40,650

696,956 692,819 740,759

Amortization 487,000 497,063 493,821

$8,331,017 $8,087,517 $7,357,668

Annual Report 2013 | 47 61 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

TRANSPORTATION SERVICES SCHEDULE VII

2013 RESTATED BUDGET 2013 2012 (Note 16)

Administration $1,332,676 $1,208,113 $1,198,322 Small tools and equipment 47,870 64,708 62,059 Workshop and yard maintenance 144,028 134,152 176,563 Roads - construction 313,348 333,456 339,856 Roadway surfaces maintenance 1,757,876 1,517,247 1,492,149 Snow and ice removal 382,988 325,166 409,501 Bridge - maintenance 6,370 5,771 23,926 Street lighting 395,246 412,400 389,761 Signs and line painting 261,210 229,261 231,591 Drainage 500,677 537,342 560,447 Sidewalk maintenance 31,362 34,887 35,465 Other transportation 183,855 170,184 157,661 Engineering and public works recoveries (227,450) (519,802) (232,559) Amortization 4,330,000 4,431,959 4,285,941

$9,460,056 $8,884,844 $9,130,683

48 | Municipality of North Cowichan 62 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

TRANSPORTATION SERVICES ENVIRONMENTAL HEALTH SERVICES SCHEDULE VII SCHEDULE VIII

2013 RESTATED BUDGET 2013 2012 2013 (Note 16) BUDGET 2013 2012 (Note 16) Administration $1,332,676 $1,208,113 $1,198,322 Small tools and equipment 47,870 64,708 62,059 Garbage collection and recycling $1,064,442 $1,074,130 $1,373,035 Workshop and yard maintenance 144,028 134,152 176,563 Mountain View Cemetery 167,420 139,066 127,699 Roads - construction 313,348 333,456 339,856 Energy Manager 66,598 80,132 - Roadway surfaces maintenance 1,757,876 1,517,247 1,492,149 Energy Upgrades Buildings 42,346 30,890 - Snow and ice removal 382,988 325,166 409,501 Carbon Offsets 23,440 - - Bridge - maintenance 6,370 5,771 23,926 Climate Action Energy Plan 23,600 - - Street lighting 395,246 412,400 389,761 Amortization 122,000 121,564 118,762 Signs and line painting 261,210 229,261 231,591 Drainage 500,677 537,342 560,447 $1,509,846 $1,445,782 $1,619,496 Sidewalk maintenance 31,362 34,887 35,465 Other transportation 183,855 170,184 157,661 Engineering and public works recoveries (227,450) (519,802) (232,559) Amortization 4,330,000 4,431,959 4,285,941

$9,460,056 $8,884,844 $9,130,683

Annual Report 2013 | 49 63 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

RECREATION AND CULTURAL SERVICES

SCHEDULE IX

2013 BUDGET 2013 2012 (Note 16)

Administration $116,460 $89,107 $87,479 Crofton swimming pool 52,460 53,257 50,799 Cowichan aquatic centre 2,986,633 3,170,347 2,926,282 Fuller Lake arena 917,969 916,415 959,342 Parks common services 42,850 36,752 26,762 Community recreation program 85,030 81,962 86,590 Chemainus parks and playgrounds 426,780 387,075 377,519 Crofton parks and playgrounds 153,890 195,113 188,353 South end parks and playgrounds 1,037,830 889,845 854,712 Wharves 172,630 152,188 142,498 Library 1,177,917 1,177,916 1,107,132 Grants-in-aid 146,350 146,759 114,437 Amortization Expense 1,006,000 993,503 991,194

$8,322,799 $8,290,239 $7,913,099

50 | Municipality of North Cowichan 64 2013 5,259,185 1,059,134 32,580,691 16,641,218 $36,636,974 167,313,713 $259,490,915 SCHEDULE X

RECREATION AND CULTURAL SERVICES NET BOOK VALUE 2012 4,918,982 5,232,895 28,766,093 15,749,852 $35,512,189 157,642,050 SCHEDULE IX $247,822,061 - $-

2013 2013 Balance 3,291,845 13,858,979 96,672,558 15,588,086 $129,411,468

BUDGET 2013 2012 December 31, - - (Note 16) - - $- 2013 283,461 Administration $116,460 $89,107 $87,479 $283,461 Disposals Crofton swimming pool 52,460 53,257 50,799 -

Cowichan aquatic centre 2,986,633 3,170,347 2,926,282 $- Fuller Lake arena 917,969 916,415 959,342 341,069 2013 1,108,655 5,165,721 1,559,366 $8,174,811

Parks common services 42,850 36,752 26,762 Additions Community recreation program 85,030 81,962 86,590 -

Chemainus parks and playgrounds 426,780 387,075 377,519 $- ACCUMULATED AMORTIZATION ACCUMULATED Crofton parks and playgrounds 153,890 195,113 188,353 2012 2,950,776

South end parks and playgrounds 1,037,830 889,845 854,712 Balance 12,750,324 91,506,837 14,312,181 $121,520,118

Wharves 172,630 152,188 142,498 December 31, Library 1,177,917 1,177,916 1,107,132 Grants-in-aid 146,350 146,759 114,437 Amortization Expense 1,006,000 993,503 991,194 2013 8,551,030 1,059,134 Balance 46,439,670 32,229,304 $36,636,974 263,986,271 $388,902,383 December 31, $8,322,799 $8,290,239 $7,913,099 - - - $- 2013 289,236 4,926,220 $5,215,456 Disposals COST 681,272 752,459 2013 4,923,253 2,456,507 Additions $1,124,785 14,863,072 $24,801,348 2012 Balance 7,869,758 5,232,895 41,516,417 30,062,033 $35,512,189 249,148,886 $369,342,178 December 31, THE CORPORATION OF THE DISTRICT NORTH COWICHAN THE CORPORATION Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013 TANGIBLE CAPITAL ASSETS CAPITAL TANGIBLE Land Land Improvements Buildings Engineering Structures Machinery & Equipment Work In Progress

Annual Report 2013 | 51 65 - - - 5,775 4,378 4,000 224,134 16,664 15,726 518,519 497,352 (287,723) 1,413,970 4,764,748 7,825,302 (779,480) 38,839,823 10,488,459 14,410,933 1,370,213 8,174,811 4,506,994 8,106,819 2,589,619 1,029,313 8,896,642 1,041,398 1,713,654 2,173,267 $4,275,222 11,448,716 14,841,612 10,147,745 50,694,150 43,115,045 29,157,058 39,568,641 27,897,041 $11,125,509 Consolidated Consolidated ------

------1,109 1,055 Capital Capital 7,034,261 2,173,267 1,275,731 5,749,594 2,468,286 1,711,654 2,299,541 $5,749,594 11,215,310 $11,215,310 - - - - 6 ------35,756 9,254 2,000 192,227 156,465 69,730 60,476 140,935 158,573 142,935 158,573 Funds Funds $73,205 Reserve Reserve $(33,654) SCHEDULE XI SCHEDULE XI ------80,913 169,018 801,805 571,083 979,640 745,489 95,846 (93,139) 141,498 118,661 493,424 736,166 655,778 3,254,809 $661,302 Sewer Sewer Sewer Sewer System System (251,439) 2,866,499 1,091,072 3,854,563 1,598,511 3,916,111 2,137,391 1,544,885 2,275,380 $988,064 ------17,209 5,775 168,477 308,988 973,031 896,854 58,095 51,871 19,836 19,705 (39,369) 165,799 929,922 351,302 984,692 (46,011) 3,346,724 1,021,534 $496,290 3,437,042 1,045,563 4,043,457 2,282,609 3,843,014 1,682,917 2,135,305 1,636,133 $606,415 Waterworks Waterworks

------4,748 3,816 3,744 887,759 991,194 25,652 46,133 14,005 44,201 (69,105) 887,016 993,503 (95,061) 8,732,799 1,821,071 1,375,132 3,722,000 9,190,965 2,037,264 1,542,540 3,825,703 7,630,339 2,272,312 7,191,047 5,282,426 2,084,300 5,044,797 services services Recreation Recreation Recreation Recreation and cultural and cultural $(1,541,752) $(1,560,626) ------35,496 7,555 6,743 908,358 172,905 699,957 25,223 34,879 30,000 47,598 $16,118 194,846 802,279 945,431 924,476 118,098 865,055 769,635 1,032,004 $(86,573) services services development development development development Environmental Environmental Environmental Environmental ------817,398 102,149 294,722 80,040 $18,405 304,983 1,214,269 services services Forestry Forestry 1,459,565 1,074,542 1,904,171 1,904,171 1,232,674 1,232,674 $444,606 ------28,958 1,282 1,099 8,125 4,378 4,000 517,920 362,511 118,762 463,838 14,000 50,000 121,564 535,576 295,683 492,959 146,791 125,417 1,491,989 $(86,481) 1,445,782 1,250,337 1,416,788 1,405,508 1,216,867 $(28,994) Environmental Environmental Environmental Environmental health services health services ------92,306 2,664 7,601 717,860 44,604 71,049 69,722 48,572 29,086 820,010 434,978 815,280 126,821 130,725 9,210,930 1,410,058 4,285,941 2,704,765 8,939,568 4,431,959 1,292,135 2,735,892 9,204,510 9,009,982 8,135,394 7,957,568 $264,942 $(200,948) services services Transportation Transportation Transportation Transportation ------182,595 601,749 493,821 52,595 48,072 (86,110) 115,981 497,063 201,673 643,993 404,603 873,949 444,830 834,883 416,329 7,454,153 4,093,802 2,168,296 (386,969) 7,813,445 4,620,651 2,322,726 7,595,337 7,190,535 6,022,290 5,486,648 services services $(263,618) Protective Protective Protective Protective $(218,108) ------6,121 59,090 508,756 15,315 21,105 35,542 20,170 35,882 109,728 545,758 268,154 135,557 (130,728) (73,360) 3,033,565 2,590,326 3,314,041 2,716,600 2,741,309 2,493,531 2,416,508 2,301,922 General General services services $(540,034) $(572,732) government government government government - - - THE CORPORATION OF THE DISTRICT NORTH COWICHAN THE CORPORATION Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013 Excess of revenues revenues of Excess Actuarial adjustment debt to Interest Other Actuarial adjustment debt to Collections from Collections from developers and others Interest Amortization Provincial and other Provincial grants government Capital grants Material and supplies Material Amortization Other Return on invest Return ments Contracted servicesContracted Collections from Collections from developers and others Material and sup Material plies Provincial and other Provincial grants government Capital grants Contracted servicesContracted Other revenue from from Other revenue source own Gain on sale Return on invest Return ments Expenses and salaries Wages Expenses and salaries Wages Sales of serviceSales of Other revenue from from Other revenue source own Gain on sale Transfer from from Transfer cemetery trust Transfer from from Transfer cemetery trust OPERATIONS BY SEGMENT BY OPERATIONS Excess of revenues revenues of Excess expenses over over expenses over Revenues Taxes Sales of serviceSales of Revenues Taxes

52 | Municipality of North Cowichan 66 - - - 5,775 4,000 4,378 224,134 16,664 15,726 518,519 497,352 (287,723) 1,413,970 4,764,748 7,825,302 (779,480) 38,839,823 10,488,459 14,410,933 1,370,213 8,174,811 8,106,819 4,506,994 2,589,619 1,029,313 8,896,642 1,041,398 2,173,267 1,713,654 $4,275,222 11,448,716 10,147,745 14,841,612 43,115,045 50,694,150 29,157,058 39,568,641 27,897,041 $11,125,509 Consolidated Consolidated ------

------1,109 1,055 Capital Capital 7,034,261 2,173,267 1,275,731 5,749,594 2,468,286 1,711,654 2,299,541 $5,749,594 11,215,310 $11,215,310 - - - - 6 ------35,756 2,000 9,254 192,227 156,465 69,730 60,476 140,935 158,573 158,573 142,935 Funds Funds $73,205 Reserve Reserve $(33,654) SCHEDULE XI SCHEDULE XI ------80,913 169,018 801,805 571,083 979,640 745,489 95,846 (93,139) 141,498 118,661 493,424 736,166 655,778 3,254,809 $661,302 Sewer Sewer Sewer Sewer System System (251,439) 2,866,499 1,091,072 1,598,511 3,916,111 3,854,563 2,137,391 1,544,885 2,275,380 $988,064 ------17,209 5,775 168,477 308,988 973,031 896,854 58,095 51,871 19,836 19,705 (39,369) 165,799 929,922 351,302 984,692 (46,011) 3,346,724 1,021,534 $496,290 3,437,042 1,045,563 2,282,609 3,843,014 4,043,457 1,682,917 2,135,305 1,636,133 $606,415 Waterworks Waterworks

------4,748 3,816 3,744 887,759 991,194 25,652 46,133 14,005 44,201 (69,105) 887,016 993,503 (95,061) 8,732,799 1,821,071 1,375,132 3,722,000 9,190,965 2,037,264 1,542,540 3,825,703 2,272,312 7,191,047 7,630,339 5,282,426 2,084,300 5,044,797 services services Recreation Recreation Recreation Recreation and cultural and cultural $(1,541,752) $(1,560,626) ------35,496 7,555 6,743 908,358 172,905 699,957 25,223 30,000 34,879 47,598 $16,118 194,846 802,279 924,476 118,098 945,431 865,055 769,635 1,032,004 $(86,573) services services development development development development Environmental Environmental Environmental Environmental ------817,398 102,149 294,722 80,040 $18,405 304,983 1,214,269 services services Forestry Forestry 1,459,565 1,074,542 1,904,171 1,232,674 1,904,171 1,232,674 $444,606 ------28,958 1,282 1,099 8,125 4,000 4,378 517,920 362,511 118,762 463,838 14,000 50,000 121,564 535,576 295,683 492,959 146,791 125,417 1,491,989 $(86,481) 1,445,782 1,250,337 1,405,508 1,416,788 1,216,867 $(28,994) Environmental Environmental Environmental Environmental health services health services ------92,306 2,664 7,601 717,860 44,604 71,049 69,722 48,572 29,086 820,010 815,280 434,978 126,821 130,725 9,210,930 1,410,058 4,285,941 2,704,765 8,939,568 4,431,959 1,292,135 2,735,892 9,009,982 9,204,510 8,135,394 7,957,568 $264,942 $(200,948) services services Transportation Transportation Transportation Transportation ------182,595 601,749 493,821 52,595 48,072 (86,110) 115,981 497,063 201,673 404,603 643,993 873,949 444,830 834,883 416,329 7,454,153 4,093,802 2,168,296 (386,969) 7,813,445 4,620,651 2,322,726 7,190,535 7,595,337 6,022,290 5,486,648 services services $(263,618) Protective Protective Protective Protective $(218,108) ------6,121 59,090 508,756 15,315 21,105 35,542 20,170 35,882 109,728 545,758 268,154 135,557 (130,728) (73,360) 3,033,565 2,590,326 3,314,041 2,716,600 2,493,531 2,741,309 2,416,508 2,301,922 General General services services $(540,034) $(572,732) government government government government - - - THE CORPORATION OF THE DISTRICT NORTH COWICHAN THE CORPORATION Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2012 Excess of revenues revenues of Excess Actuarial adjustment debt to Interest Actuarial adjustment debt to Other Collections from Collections from developers and others Interest Provincial and other Provincial grants government Capital grants Material and supplies Material Amortization Other Amortization Return on invest Return ments Contracted servicesContracted Collections from Collections from developers and others Provincial and other Provincial grants government Capital grants Material and sup Material plies Other revenue from from Other revenue source own Gain on sale Return on invest Return ments Contracted servicesContracted Expenses and salaries Wages Expenses and salaries Wages Sales of serviceSales of Other revenue from from Other revenue source own Gain on sale Excess of revenues revenues of Excess expenses over Transfer from from Transfer cemetery trust Transfer from from Transfer cemetery trust OPERATIONS BY SEGMENT BY OPERATIONS over expenses over Revenues Taxes Sales of serviceSales of Revenues Taxes

Annual Report 2013 | 53 67 This page has been intentionally left blank.

54 | Municipality of North Cowichan 68 www.hslco.com

INDEPENDENT AUDITOR'S REPORT

To the Duncan - North Cowichan Joint Utilities Board,

Report on Financial Statements We have audited the accompanying financial statements of the Duncan - North Cowichan Joint Utilities Board, which comprise the statement of financial position as at December 31, 2013, and the statements of operations for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluation of the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, these financial statements present fairly, in all material respects, the financial position of the Duncan - North Cowichan Joint Utilities Board as at December 31, 2013 and its financial performance and its cash flow for the year then ended in accordance with Canadian public sector accounting standards.

Duncan, BC Chartered Accountants May 7, 2014

DUNCAN NANAIMO VICTORIA 823 Canada Ave. 30 Front St. 1000-747 Fort St. Duncan, BC V9L 1V2 Nanaimo, BC V9R 5H7 Victoria, BC V8W 3E9 Tel: 250.746.4406 | Fax: 250.746.1950 Tel: 250.753.2544 | Fax: 250.754.1903 Tel: 250.383.8994 | Fax: 250.383.8904

Duncan: 888.746.4406 | Nanaimo: 888.754.9551 | Victoria: 855.383.8994

Annual Report 2013 | 55 69 DUNCAN - NORTH COWICHAN JOINT UTILITIES BOARD Statement of Financial Position AS AT DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

2013 2012

FINANCIAL ASSETS

Investments (Notes 3 & 6) $ 967,218 $ 842,637

NET FINANCIAL ASSETS 967,218 842,637

NON-FINANCIAL ASSETS

Tangible capital assets (Schedule I) 2,406,782 2,456,492

ACCUMULATED SURPLUS $ 3,374,000 $ 3,299,129

M. Frame, Director of Finance

See accompanying notes to the financial statements.

56 | Municipality of North Cowichan 70 DUNCAN - NORTH COWICHAN JOINT UTILITIES BOARD Statement of Operations AS AT DECEMBER 31, 2013, WITH COMPARATIVE FIGURES FOR 2012

2013 2012 2013 BUDGET 2013 2012 FINANCIAL ASSETS REVENUE Contributions from: Investments (Notes 3 & 6) $ 967,218 $ 842,637 The Corporation of the District of North Cowichan $597,380 $442,339 $601,024 The Corporation of the City of Duncan 366,207 268,331 360,420 NET FINANCIAL ASSETS 967,218 842,637 Cowichan Valley Regional District 170,228 134,833 173,313 Cowichan Tribes 19,322 15,616 21,287 NON-FINANCIAL ASSETS Government Grant - - 729,110 Interest received 12,000 9,381 7,629

Tangible capital assets (Schedule I) 2,406,782 2,456,492 1,165,137 861,119 1,885,154 ACCUMULATED SURPLUS $ 3,374,000 $ 3,299,129 EXPENSES Administration 37,405 35,520 35,685 Amortization - 49,710 28,998 Sewer lagoon operation and maintenance 1,000,532 710,399 713,694

Capital Expenditures -

M. Frame, 1,037,937 795,629 778,377 Director of Finance ANNUAL SURPLUS 127,200 65,490 1,106,777 See accompanying notes to the financial statements. ACCUMULATED SURPLUS, BEGINNING OF YEAR 3,291,500 3,291,500 2,184,723

ACCUMULATED SURPLUS, END OF YEAR $3,418,700 $3,356,990 $3,291,500

See accompanying notes to the financial statements.

Annual Report 2013 | 57 71 DUNCAN - NORTH COWICHAN JOINT UTILITIES BOARD Notes to the Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

1. SUMMARY OF OPERATIONS

The Duncan – North Cowichan Joint Utilities Board operates and maintains joint sewer lagoons on behalf of the City of Duncan and the District of North Cowichan. The distribution of expenditures related to operations is based on the number of users in each municipality.

2. SIGNIFICANT ACCOUNTING POLICIES

It is the Board’s policy to follow Canadian public sector accounting standards and to apply such principles consistently. The following is a summary of the Corporation’s significant policies:

a) BASIS OF ACCOUNTING

The Board follows the accrual method of accounting for revenues and expenses. Revenues are normally recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of the delivery of goods or services and/or upon the creation of a legal obligation to pay. Expenses paid in the current period and attributable to a future period are recorded as prepaid.

b) REVENUE RECOGNITION

i) Contributions from partners are recognized when invoiced.

ii) Government transfers are recognized in the period in which events giving rise to the trans- fer occur, providing the transfers are authorized, any eligibility criteria have been met and reasonable estimates of the amounts can be made.

c) CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash on deposit in qualifying institutions as defined in the community charter.

d) USE OF ESTIMATES

The preparation of financial statements in accordance with Canadian generally accepted accounting principles as recommended by PSAB requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditure during the reporting period. A significant area requiring the use of management estimates relate to the determination of amortization of capital assets. Actual results could differ from those estimates. Adjustments, if any, will be reflected in operations in the period of settlement.

58 | Municipality of North Cowichan 72 e) NON-FINANCIAL ASSETS

Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. The change in non-financial assets during the year, together with the excess of revenues over expenses, provides the change in net financial assets for the year.

f) TANGIBLE CAPITAL ASSETS

Tangible capital assets are recorded at cost less accumulated amortization and are classified ac- cording to their functional use. Cost includes all amounts that are directly attributable to the acqui- sition, construction, development or betterment of the asset. Donated assets are recorded at their estimated fair value upon acquisition. The cost, less residual value, of the tangible capital assets is amortized on a straight-line basis over their estimated useful lives as follows: Engineering Structures 10 to 60 years Capital Works In Progress Life determined when complete Amortization is charged on a monthly basis, starting the month following the date of acquisition and ending in the month of disposition. Capital works in progress are not amortized until the asset is available for productive use.

3. INVESTMENTS

Investments are carried at cost, which at December 31, 2013, would approximate market value. The balance of investments has been internally restricted by the Board and is to be expended in accordance with the terms of the reserve for capital expenditure.

4. OPERATING LEASE

The Board leased the sewage lagoon lands under a forty-nine year operating lease with the lease expiring July 31, 2060. Future minimum lease payments are $300,110 per annum with an estimated annual increase of 2.2%.

5. FINANCIAL INSTRUMENTS

The Board’s financial instruments consist of investments. The carrying amount of these financial instruments approximates their fair value because they are short-term in nature or because they bear interest at market rates. Unless otherwise noted, it is management’s opinion that the Board is not exposed to significant interest or credit risks arising from these financial instruments.

Annual Report 2013 | 59 73 DUNCAN - NORTH COWICHAN JOINT UTILITIES BOARD Notes to the Financial Statements - continued FOR THE YEAR ENDED DECEMBER 31, 2013

6. CAPITAL RESERVE FUNDS

The Capital reserve funds are non-statutory reserves, for the purpose of future capital expenditures, estab- lished at the discretion of the Board. Balances and changes are outlined as follows: 2013 2012 Balances, beginning of year $842,637 $719,809 Add: transfer from current operations $124,581 $122,828 Balance, end of year $967,218 $842,637

7. LISTING OF OPERATING EXPENDITURES BY OBJECT TYPE

The following provides a summary of operating expenses by object: 2013 2012

Salaries, wages and benefits $109,336 $100,339 Contract services 73,651 58,004 Amortization 49,708 28,997 Materials and supplies 263,991 294,695 Land Rent 298,943 296,342 Total expense $795,629 $778,377

8. STATEMENT OF CASH FLOWS

A statement of cash flows has not been prepared as it is not considered to provide any additional informa- tion.

60 | Municipality of North Cowichan 74 2013 $2,406,782 SCHEDULE I NET BOOK VALUE 2012 $2,456,492 $78,708 2013 Balance December 31, $- 2013 Disposals $49,710 2013 Additions ACCUMULATED AMORTIZATION ACCUMULATED $28,998 2012 Balance December 31, 2013 Balance $2,485,490 December 31, $- 2013 Disposals COST $- 2013 Additions 2012 Balance $2,485,490 December 31, TANGIBLE CAPITAL ASSETS CAPITAL TANGIBLE Engineering Structures DUNCAN - NORTH COWICHAN JOINT UTILITIES BOARD DUNCAN - NORTH COWICHAN Schedules to the Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013

Annual Report 2013 | 61 75 62 | Municipality of North Cowichan 76 The Corporation of the District of North Cowichan STATISTICAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2013

[UNAUDITED]

Annual Report 2013 | 63 77 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

TAXABLE ASSESSMENTS OF LAND AND IMPROVEMENTS 2009-2013 (IN THOUSANDS)

Property Class 2009 2010 2011 2012 2013 Residential 3,747,541 3,754,510 3,952,085 3,940,355 3,855,900 Utilities 4,753 4,804 4,966 5,008 5,053 Major Industry 152,018 145,926 140,001 139,792 138,177 Light Industry 53,992 61,648 59,294 55,841 57,710 Business 213,242 258,689 285,121 304,847 330,410 Managed Forest 1,847 2,021 1,842 1,730 2,206 Recreation 13,765 13,775 13,071 12,410 12,872 Farm 8,047 8,028 8,119 8,324 8,414 4,195,205 4,249,401 4,464,499 4,468,307 4,410,742

Assessment by Property Class 0% 0% 0% 3% 1% 8% 0% Residential Utilities Major Industry Light Industry Business Managed Forest Recreation 88% Farm

64 | Municipality of North Cowichan 78 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

TAX REVENUE BY PROPERTY CLASS 2009-2013

Property Class 2009 2010 2011 2012 2013 Residential 8,029,480 9,441,758 11,278,037 15,048,039 15,773,792 Utilities 116,299 133,040 145,100 153,043 158,711 Major Industry 6,589,982 6,089,982 6,329,325 3,604,805 3,743,516 Light Industry 821,062 952,633 1,051,981 959,972 1,037,669 Business 1,723,699 2,105,616 2,390,129 2,628,819 2,902,512 Managed Forest 45,559 56,185 47,319 29,734 40,770 Recreation 29,498 32,146 37,305 36,879 47,310 Farm 90,278 74,347 58,042 31,801 32,916 17,445,857 18,885,707 21,337,238 22,493,092 23,737,196

Collection Rate 70% 74% 93% 94% 95%

2013 Tax Revenue by Property Class

0% 0% 0%

Residential 12% Utilities 4% Major Industry Light Industry 16% Business Managed Forest 67% 1% Recreation Farm

Annual Report 2013 | 65 79 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

SOURCES OF REVENUE 2009-2013

2009 2010 2011 2012 2013 General Taxation 17,445,856 18,885,707 21,337,238 22,493,092 23,737,196 Other Taxation 4,373,979 4,716,621 5,126,499 5,403,951 5,419,862 Sales of Services 8,061,405 7,850,498 8,655,047 8,896,641 10,147,745 Other Revenue from Own Source 937,002 1,217,893 1,068,696 1,041,398 1,029,313 Gain on Sale - 581,944 2,510 15,726 16,664 Return on Investment 1,521,025 1,209,059 515,044 497,351 518,519 Grants 4,037,985 3,583,390 4,274,832 2,589,619 8,106,819 Developer & Other 3,087,164 3,485,061 8,208,308 2,173,267 1,713,654 Transfer from Cemetery trust 10,122 3,245 4,839 4,000 4,378 39,474,538 41,533,418 49,193,013 43,115,045 50,694,150

Source: North Cowichan Finance Department

2013 Sources of Revenue

0% 3% General Taxation Other Taxation 16% 1% Sales of Services 0% Other Revenue from Own Source 2% 47% Gain on Sale Return on Investment Grants 20% Developer & Other Transfer from Cemetery trust 11%

66 | Municipality of North Cowichan 80 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

EXPENSES BY FUNCTION 2009-2013

2009 2010 2011 2012 2013 General Government 3,295,338 3,058,750 2,939,517 3,033,567 3,314,041 Protective Services 6,985,546 7,171,748 7,604,723 7,454,153 7,822,699 Transportation 9,244,407 8,901,986 9,048,272 9,130,683 8,939,568 Garbage and Recycling 1,106,949 1,191,522 1,122,537 1,491,797 1,306,716 Cemetery 153,007 160,619 173,891 127,699 139,066 Forestry 1,062,675 1,191,351 1,323,529 1,214,269 1,459,565 Development Services 738,330 742,159 863,639 928,357 1,032,004 Parks, Recreation & Culture 8,242,444 8,156,023 8,825,029 8,731,752 9,251,441 Water Services 2,475,041 2,941,810 3,041,508 3,329,515 3,431,267 Sewer Services 2,424,352 2,909,598 2,843,884 3,173,897 2,866,499 Loss on Sale 105,304 6,996 127,385 224,134 5,775 35,833,393 36,432,562 37,913,914 38,839,823 39,568,641

Source: North Cowichan Finance Department

2013 Expenses 0% General Government 7% 8% Protective Services 9% Transportation

20% Garbage and Recycling Cemetery

23% Forestry Development Services Parks, Recreation & Culture 23% Water Services 3% Sewer Services 0% 4% 3% Loss on Sale

Annual Report 2013 | 67 81 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

EXPENSES BY OBJECT 2009-2013

2009 2010 2011 2012 2013

Salaries, wages and benefits 11,801,046 12,316,155 13,415,581 14,410,936 14,841,611 Contract services 10,878,591 10,899,271 11,434,673 10,488,458 11,448,715 Amortization 6,886,261 7,120,674 7,487,622 7,825,301 8,174,811 Materials and supplies 5,873,638 5,359,211 5,674,503 4,764,748 4,506,996 Interest 1,350,041 1,426,913 1,470,697 1,126,246 590,733 Other -956,185 -689,662 -1,569,162 224,134 5,775 35,833,392 36,432,562 37,913,914 38,839,823 39,568,641

Source: North Cowichan Finance Department

2013 Expenses by Object

1% 0%

11% Salaries, wages and benefits Contract services 38% Amortization 21% Materials and supplies

Interest

Other

29%

68 | Municipality of North Cowichan 82 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

ACCUMULATED SURPLUS

2009 2010 2011 2012 2013

Accumulated Surplus 235,308,816 240,409,672 251,688,771 255,963,993 267,089,502

Annual Surplus 3,641,145 5,100,856 11,279,099 4,275,222 11,125,509

Source: North Cowichan Finance Department

Accumulated Surplus $270,000,000

$265,000,000

$260,000,000

$255,000,000

$250,000,000

$245,000,000

$240,000,000

$235,000,000

$230,000,000

$225,000,000

$220,000,000 2009 2010 2011 2012 2013

Surplus

Annual Report 2013 | 69 83 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

NET FINANCIAL ASSETS

2009 2010 2011 2012 2013

Net Financial Assets 7,057,461 6,426,947 6,660,325 7,481,296 6,929,511

Source: North Cowichan Finance Department

Net Financial Assets $8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0 2009 2010 2011 2012 2013

Net Financial Assets

70 | Municipality of North Cowichan 84 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

RESERVE FUND BALANCES 2009 2010 2011 2012 2013 DCC Restricted Reserves 8,066,620 7,128,016 6,543,479 7,195,898 6,765,155 Land Sales 3,742,470 3,515,852 2,331,708 1,499,182 820,481 New Works or Extensions 984,530 796,968 806,528 0 0 New Works Pollution 151,170 152,926 155,520 0 0 Machinery and Equipment 1,975,953 1,882,624 1,779,890 1,371,486 1,968,575 Local Area Service 810,336 803,482 729,242 846,899 1,039,722 Forest 1,148,739 943,249 807,139 825,324 1,148,454 Park Development 207,570 182,202 185,292 187,797 190,499 Parkland Purchase 796,920 877,758 756,651 603,298 352,891 Chemainus Parking 141,849 158,759 160,402 142,102 145,695 Agriculture 0 0 0 0 10,000 Gravel Pits 325,764 344,437 357,043 366,010 384,897 Self-Insurance 0 0 0 111,698 113,306 Climate Action and Energy Plan 0 0 0 18,700 136,969 Maple Bay Sewer 0 150,445 152,998 155,066 157,297 Oceanfront 0 80,755 82,125 83,235 0 18,351,921 17,017,473 14,848,017 13,406,695 13,233,941 Source: North Cowichan Finance Department Reserve Fund Balances $20,000,000 DCC Restricted Reserves Land Sales Machinery and Equipment Local Area Service $15,000,000 Forest Park Development Parkland Purchase $10,000,000 Chemainus Parking Gravel Pits Maple Bay Sewer Oceanfront $5,000,000 Agriculture New Works or Extensions New Works Pollution Self-Insurance $0 Climate Action and Energy Plan 2009 2010 2011 2012 2013

Annual Report 2013 | 71 85 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

DEBENTURE DEBT

2009 2010 2011 2012 2013 Debenture Debt 22,375,955 22,990,272 21,971,921 21,503,802 22,272,673 Debt per Capita 759 771 763 734 761

Source: North Cowichan Finance Department

LIABILITY SERVICING

2009 2010 2011 2012 2013 Liability Servicing Limit 8,049,144 8,359,564 9,027,106 9,398,637 10,270,490 Total Liability Servicing Cost 4,945,570 2,320,821 2,760,466 2,609,840 2,856,862 Liability Servicing Capacity Available 3,103,574 6,038,743 6,266,640 6,788,797 7,413,628

Source: North Cowichan Finance Department

TAXES COLLECTED FOR OTHER AGENCIES

2009 2010 2011 2012 2013 School 11,623,880 11,990,562 12,057,995 12,155,133 12,400,567 CVRHD 973,386 1,218,527 1,575,368 1,900,740 2,388,779 CVRD 4,604,784 4,982,589 5,550,043 6,036,143 6,462,047 BC Assessment 376,079 392,807 389,030 381,558 385,024 MFA 1,004 1,028 1,076 1,082 1,077 17,579,133 18,585,513 19,573,512 20,474,656 21,637,494

Source: North Cowichan Finance Department

72 | Municipality of North Cowichan 86 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

CAPITAL EXPENDITURES AND SOURCES OF FINANCING

2009 2010 2011 2012 2013 Operating Funds 3,564,628 3,405,084 4,582,019 4,256,479 7,511,079 Reserve Funds 2,569,549 2,829,997 2,253,520 3,156,986 1,224,538 DCC 575,922 1,709,481 1,074,972 - 977,600 Debt - 1,750,000 551,500 745,475 2,500,000 Grants 1,785,130 2,487,159 3,049,194 1,275,731 7,034,261 Sales / Trade 7,000 2,765 - - - Developer / Other Contribution 1,954,264 1,491,450 7,133,337 2,173,267 835,729 10,456,493 13,675,936 18,644,542 11,607,938 20,083,207

Source: North Cowichan Finance Department

Capital Expenditures by Source of Funding $25,000,000

$20,000,000

Developer / Other Contribution

$15,000,000 Sales / Trade Grants Debt $10,000,000 DCC Reserve Funds Operating Funds $5,000,000

$0 2009 2010 2011 2012 2013

Annual Report 2013 | 73 87 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information FIVE-YEAR STATISTICAL REVIEW 2009-2013

NEW CONSTRUCTION 2009 2010 2011 2012 2013 Building Permits Issued 404 395 262 296 251 Construction Value 33,732,982 57,975,216 41,480,281 44,012,722 41,849,005

Source: North Cowichan Finance Department

TOTAL POPULATION 2009 2010 2011 2012 2013 Total population estimates 29,493 29,837 29,298 29,294 29,277 % Change from prior year 1% 1% -2% -0% -0%

Source: BC Stats

2011 POPULATION BY AGE GROUP - Median age of population 47.1 years Population by Age Group 5,000 4,500 4,000 3,500 3,000 2,500 Male 2,000 1,500 Female 1,000 Total 500 -

2006 POPULATION AGED 25-65 HIGHEST EDUCATION LEVEL Highest Education

14% 14% No certificate, diploma or degree 5% High school certificate or equivalent

Trades certificate, apprentice 21% 30% College / non-university certificate 16% Source: Statistics Canada Census

74 | Municipality of North Cowichan 88 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Statistical Information

2013 TOP 10 PRINCIPAL CORPORATE TAXPAYERS

Taxpayer Industry Tax Contribution Catalyst Paper Corporation Industry $3,400,850 Western Forest Products Inc. Industry 580,452 Calloway Reit (Cowichan) Inc. Retail 506,224 Riocan Holdings Retail 418,515 Cowichan Town Centre Market Inc. Retail 195,071 Alpine-Pacific Leasing Ltd Retail 130,739 Island Timberlands GP Ltd Industry 109,883 Peter Baljet Chevrolet Buick GMC Ltd Retail 80,360 Shell Canada Limited Business 78,290 Centra Gas British Columbia Inc. Utility 74,322

Total Tax Contribution from Top 10 Taxpayers $5,574,706

Total Municipal Tax $23,737,196

Proportion of municipal tax paid by top ten 23%

Source: North Cowichan Finance Department

89 76 | Municipality of North Cowichan 90 The Corporation of the District of North Cowichan OTHER INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2013

Annual Report 2013 | 77 91 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Permissive Tax Exemptions

Amount of Municipal Property Taxes that would have been imposed if no tax exemption in dollars.

ROLL # PROPERTY ADDRESS OWNER OR OCCUPANT TAXES 24001-000 3790 GIBBINS RD 744 (COWICHAN) SQUADRON ADMIN SOCIETY $867 ANGLICAN SYNOD DIOCESE OF BC (ALL SAINTS ANGLICAN 12143-000 1597 JOAN AVE CHURCH) 237 ANGLICAN SYNOD DIOCESE OF BC (ST. MICHAEL’S AND ALL 15117-000 VICTORIA RD ANGELS’ ANGLICAN CHURCH) 1,233 ANGLICAN SYNOD DIOCESE OF BC (ST. MICHAEL’S AND ALL 16124-000 2852/2858 MILL ST ANGELS’ ANGLICAN CHURCH) 1,096 ANGLICAN SYNOD DIOCESE OF BC (ST. PETER’S ANGLICAN 362-000 5795 CHURCH RD CHURCH) 9,759 ANGLICAN SYNOD DIOCESE OF BC (ST. PETER’S ANGLICAN 1-000 5800 CHURCH RD CHURCH) 2,023 BC CORPORATION OF SEVENTH-DAY ADVENTIST CHURCH 01881-000 3441 GIBBINS RD (DUNCAN) 1,426 05469-001 2892 DRINKWATER RD. BC FOREST DISCOVERY CENTRE 2,960 05977-000 DRINKWATER RD BC FOREST DISCOVERY CENTRE 965 05105-060 7550 BELL MCKINNON RD BC S.P.C.A.. 4,090 1608-000 2085 MAPLE BAY RD BISHOP OF VICTORIA (QUEEN OF ANGELS SCHOOL) 11,897 16108-100 9727 AND 9745 ELM ST BISHOP OF VICTORIA (ST. JOSEPH’S ELEMENTARY SCHOOL) 4,498 08630-001 WATER LICENCE 106188 CAMP QWANOES 3 08630-002 WATER LICENCE 108939 CAMP QWANOES 3 08633-000 1148 SMITH RD CAMP QWANOES 4,733 08633-001 1 - 1148 SMITH RD CAMP QWANOES 157 08076-000 PID 009-625-399 CAMP QWANOES 2,602 CANADIAN BAPTISTS OF WESTERN CANADA (CALVARY BAP- 16487-000 3318 RIVER RD TIST CHURCH) 4,651 15642-005 9796 WILLOW ST CHEMAINUS CHAMBER OF COMMERCE 705 15642-000 9796 WILLOW ST CHEMAINUS FESTIVAL OF MURALS SOCIETY 1,624 15152-100 9867 MAPLE ST CHEMAINUS HEALTH CARE AUXILIARY 5,696 15148-010 9906 ESPLANADE ST CHEMAINUS HEALTH CARE FOUNDATION 2,369 15148-005 9910 ESPLANADE ST CHEMAINUS HEALTH CARE HOUSING SOCIETY 9,618 15004-005 RIFLE RANGE CHEMAINUS ROD & GUN CLUB 267 15798-101 9758 CHEMAINUS RD CHEMAINUS ROTARY CLUB 432 15656-000 9824 WILLOW ST CHEMAINUS SENIORS DROP-IN CENTRE SOCIETY 6,219 15103-001 9745 CHEMAINUS RD CHEMAINUS THEATRE FESTIVAL SOCIETY 869 15105-100 9737 CHEMAINUS RD CHEMAINUS THEATRE FESTIVAL SOCIETY 25,081 15086-200 9574 BARE POINT RD CHEMAINUS THEATRE FESTIVAL SOCIETY 16,520 15054-115 9799 WATERWHEEL CRES CHEMAINUS VALLEY HISTORICAL SOCIETY 384 01038-001 BEVERLY ST CHESTERFIELD SPORTS SOCIETY 1,029 01038-002 5847 CHESTERFIELD AVE CHESTERFIELD SPORTS SOCIETY 2,387 06503-000 6118 LANE RD CHRISTIAN SCIENCE SOCIETY, DUNCAN 1,606

78 | Municipality of North Cowichan 92 ROLL # PROPERTY ADDRESS OWNER OR OCCUPANT TAXES 05359-005 6124 RYALL RD CLEMENTS CENTRE SOCIETY 1,600 05359-006 6124 RYALL RD CLEMENTS CENTRE SOCIETY 3,372 01791-020 5855 CLEMENTS ST COWICHAN AGRICULTURAL SOCIETY & FARMERS INSTITUTE 2,514 05099-000 7380 TRANS CANADA HWY COWICHAN EXHIBITION 37,791 08548-000 1860 HERD RD COWICHAN RUGBY CLUB 3,433 01587-000 5856 CLEMENTS ST COWICHAN VALLEY ASSOCIATION FOR COMMUNITY LIVING 11,729 01082-000 5810 GARDEN ST COWICHAN VALLEY BASKET SOCIETY 1,095 02310-000 3036 SHERMAN RD COWICHAN VALLEY CHURCH OF THE NAZARENE 1,598 01920-000 5860 BANKS RD COWICHAN VALLEY HOSPICE SOCIETY 942 15040-002 2876 FULLER LAKE RD COWICHAN VALLEY MINOR HOCKEY CLUB 72 05999-000 3253 SHERMAN RD COWICHAN VALLEY SOCCER ASSN. 3,005 05567-000 6137 SOMENOS RD COWICHAN VALLEY SOCCER ASSN. 1,104 05033-000 MT. PREVOST COWICHAN WAR MEMORIAL TRUSTEES 80 08338-000 8104 MUSGRAVE ST CROFTON COMMUNITY CENTRE SOCIETY 3,558 08333-020 MORGAN ST CROFTON COMMUNITY CENTRE SOCIETY 2,129 12395-000 1675 ROBERT ST CROFTON COMMUNITY CENTRE SOCIETY 1,251 08333-100 8003 YORK AVE CROFTON COMMUNITY CENTRE SOCIETY 2,718 12316-010 1507 JOAN AVE CROFTON OLD SCHOOL MUSEUM 1,023 12316-011 1507 JOAN AVE CROFTON SENIORS SOCIETY 4,107 00205-100 495 BEECH AVE DUNCAN CHRISTIAN SCHOOL 3,052 01918-000 5781 CHESTERFIELD ST DUNCAN CHRISTIAN SCHOOL 2,289 DUNCAN COMMUNITY LODGE SOCIETY (LOYAL ORDER OF 947-000 2246 AND 2244 MOOSE RD THE MOOSE) 9,671 06000-000 3191 SHERMAN RD DUNCAN CURLING CLUB 5,856 6474-000 2359 CALAIS RD FRANCISCAN POOR CLARE NUNS (ST. CLARE’S MONASTERY) 5,130 6355-000 WICKS RD FRANCISCAN POOR CLARE NUNS (ST. CLARE’S MONASTERY) 3,868 02246-005 2731 BOYS RD FRESHWATER FISHERIES SOCIETY OF B.C. 622 8314-000 6722 BEAUMONT AVE FRIENDS OF COWICHAN CADETS SOCIETY 1,178 16273-000 9877 ESPLANADE ST HARBOUR VIEW HOUSING SOCIETY 8,026 15791-000 2828 PINE ST HARBOUR VIEW HOUSING SOCIETY 4,555 172-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 810 180-002 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 831 184-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 520 184-002 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 393 186-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 183 899-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 450 900-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 337 1180-025 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 317 1232-003 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 458 1232-004 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 372 1232-005 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 62 1232-006 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 93 1232-007 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 801 1232-008 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 41

Annual Report 2013 | 79 93 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Permissive Tax Exemptions - continued

Amount of Municipal Property Taxes that would have been imposed if no tax exemption in dollars.

ROLL # PROPERTY ADDRESS OWNER OR OCCUPANT TAXES 1232-009 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 3 1232-010 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 760 1232-011 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,040 2222-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 614 3995-000 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 7,632 3995-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 121 3995-002 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,680 3995-003 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 2,161 3995-004 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,040 3995-007 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 2,038 3995-008 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 2,095 3995-009 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,558 3995-010 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,033 3995-011 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,570 3995-012 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,919 3995-013 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 2,396 3995-014 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 367 3995-016 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,693 3995-017 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,297 3995-018 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 908 3995-019 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 2,305 3995-020 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 3 3995-021 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 776 3995-022 RAIL CORRIDOR. ISLAND CORRIDOR FOUNDATION 371 3996-000 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 8,637 18008-002 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 15 1180-050 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 340 3995-015 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 1,727 180-001 RAIL CORRIDOR ISLAND CORRIDOR FOUNDATION 359 1640-005 5990 INDIAN RD MAPLE BAY ROWING CLUB 1,732 8328-000 6735 BEAUMONT AVE MAPLE BAY ROWING CLUB 1,544 8595-001 1241 MAPLE BAY RD NATURE CONSERVANCY OF CANADA 2,009 8597-000 AITKEN RD NATURE CONSERVANCY OF CANADA 2,148 8595-000 MAPLE BAY RD NATURE CONSERVANCY OF CANADA 7,426 3931-010 COWICHAN BAY NATURE TRUST OF B.C. 54 5084-000 TRANS CANADA HWY NATURE TRUST OF B.C. 1,890 197-100 TRANS CANADA HWY NATURE TRUST OF B.C. 1,840

80 | Municipality of North Cowichan 94 ROLL # PROPERTY ADDRESS OWNER OR OCCUPANT TAXES 197-101 TRANS CANADA HWY NATURE TRUST OF B.C. 4,445 200-000 6045 TRANS CANADA HWY NATURE TRUST OF B.C. & DUCKS UNLIMITED 1,080 476-000 1839 TZOUHALEM RD NEW LIFE COMMUNITY BAPTIST CHURCH 4,712 12266-200 TSUSSIE RD PENELUKUT DEVELOPMENT SOCIETY 44 15592-000 9471 CHEMAINUS RD PENTECOSTAL ASSEMBLIES (CHEMAINUS TABERNACLE) 315 2217-000 ARBUTUS AVE QUEEN MARGARET’S SCHOOL 3,123 999-000 660 BROWNSEY AVE QUEEN MARGARET’S SCHOOL 9,218 880-000 660 BROWNSEY AVE QUEEN MARGARET’S SCHOOL 7,151 955-000 1031 GOVERNMENT ST QUEEN MARGARET’S SCHOOL 4,037 15736-000 9775 CHEMAINUS RD ROYAL CANADIAN LEGION (CHEMAINUS LEGION) 2,805 830-000 3210 SHERMAN RD SIKH TEMPLE, DUNCAN 8,358 16-001 1843 TZOUHALEM RD SISTERS OF ST. ANN (PROVIDENCE FARM) 1,351 5373-000 3248 COWICHAN VALLEY HWY SOMENOS COMMUNITY ASSOCIATION 2,661 433-000 2004 AND 2030 CRESCENT RD ST. PETER’S CRESCENT SOCIETY 1,617 977-000 5814 BANKS RD STEINER EDUCATIONAL SOCIETY (ISLAND OAK HIGH SCHOOL) 1,961 477-000 1815 TZOUHALEM RD THE CHURCH OF JESUS CHRIST OF LATTER-DAY SAINTS 3,008 THE TRUSTEES OF THE CHEMAINUS/CROFTON PASTORAL 15646-000 9814 WILLOW ST CHARGE (CHEMAINUS UNITED CHURCH) 502 1572-001 2704 JAMES ST TRINITY EVANGELICAL LUTHERAN CHURCH 880 2227-000 3968 GIBBINS RD VIMY COMMUNITY CLUB 1,371 24017-000 2558 MT SICKER RD WESTHOLME SCHOOL SOCIETY 1,782

Total $386,568

Annual Report 2013 | 81 95 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Chemainus Off-Street Parking

Report prepared as required under section 906 (9) of the Local Government Act

January 1, 2013 142,102

Interest 1,593

Current Year Contributions 2,000

Current Year Expenditures 0

December 31, 2013 145,695

82 | Municipality of North Cowichan 96 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Development Cost Charges

Report prepared as required under section 937.01 of the Local Government Act

Current Year Current Year Jan. 1, 2013 Interest Dec. 31, 2013 Contributions Expenditures

ROADS 812,691 13,291 228,331 (581,600) 472,713 PARKS 2,787 164 27,641 30,591

CHEMAINUS WATER 245,020 3,892 36,357 285,269 SEWER 80,910 1,253 8,851 91,013 325,930 5,146 45,208 0 376,283 CROFTON WATER 101,844 1,476 1,132 0 104,451 SEWER 45,828 672 1,158 47,657 147,671 2,147 2,290 0 152,109 SOUTH END DRAINAGE 21,070 409 11,660 0 33,139 WATER 1,574,024 22,968 37,695 (396,000) 1,238,687 SEWER 4,311,726 62,827 87,081 4,461,634 5,906,820 86,204 136,436 (396,000) 5,733,460

TOTAL 7,195,898 106,951 439,906 (977,600) 6,765,155

Development Cost Charges Waived under Section 933.1(2) in 2013

ROADS WATER SEWER TOTAL

CROFTON 1533 Joan Ave. 31,445 9,830 5,032 46,307

SOUTH END 2728 James St. 36,948 9,861 46,809

TOTAL 68,393 9,830 14,893 93,116

Annual Report 2013 | 83 97 THE CORPORATION OF THE DISTRICT OF NORTH COWICHAN Declaration of Disqualification from Office

NIL REPORT

No application has been made for any Council or former Council member to be disquailified from office under section 111 of the Community Charter.

Mark O. Ruttan Director of Administration May 27, 2014

84 | Municipality of North Cowichan 98 This page has been intentionally left blank.

99 7030 Trans-Canada Highway | Box 278 Visit us online Duncan, British Columbia, Canada www.northcowichan.ca Phone 250.746.3100 or scan to visit our homepage Fax 250.746.3133 Email [email protected]

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32 BC COMMUNITY ACHIEVERS HONOURED WITH COMMUNITY AWARDS

VICTORIA - Thirty-two British Columbians were honoured today at the eleventh annual British Columbia Community Achievement Awards’ ceremony held at Government House in Victoria.

Honourable Judith Guichon, OBC, Lieutenant Governor of British Columbia and Honourable Coralee Oakes, Minister of Community, Sport and Cultural Development presented each recipient with a BC Community Achievement Award medallion and certificate. Keith Mitchell, QC represented the British Columbia Achievement Foundation, the award’s presenting organization.

"It is a privilege to acknowledge the efforts of these individuals who work for the betterment of our communities and our entire province,” said Minister Oakes. “Today’s recipients, whose ages range from eighteen to one hundred and two, are examples of the best of British Columbians.”

“Today’s honourees give the most valuable of life’s commodities, time and energy,” said Mr. Mitchell. “They do whatever needs to get done – from sitting on boards and committees to far exceeding their job descriptions to sharing their talents of organizing, fundraising, innovating and mentoring.

A list of the recipients follows and a brief summary of their achievements can be found on the foundation’s website at: www.bcachievement.com

The recipients of this year’s awards are: • Selen Alpay of Prince George • Cathy Ashurst of Burns Lake • Amrik Singh Aulakh of Surrey • Donald Brown of Victoria • Helen Clifton of Hartley Bay • Lynnette Cobb of Williams Lake • John D'Eathe of West Vancouver • Allan De Genova of Vancouver • Judy Dix of Prince George • Wayne Duzita of Richmond • Michael Feller of Richmond • Keith Gibson of Tofino • Afraj Gill of Surrey • Daphne Goode of Victoria • Deanna Hamilton of Kelowna • Jill Hayward of Louis Creek • Carol Hunt of North Cowichan • Valerie Ingram of Southbank • Bonnie Leadbeater of Victoria • Bessie Lee of Vancouver • Morgan Leung of Delta • Larry Leung of Burnaby and Jason Min of Delta 101 • Tom Lymbery of Gray Creek • Michael McCoy of Richmond • James McEwen of Vancouver • Ethel Smith of Loon Lake • Marilin States of Creston • Fred Titcomb of West Vancouver • Germain Vigneault of Port Clements • Pat Wahlstrom of Quesnel • Miriam Yu of Vancouver

An independent advisory council selects the recipients of the British Columbia Community Achievement Awards from nominations received in the Fall, 2013. The council members are Mayor Stephanie Killam of the District of Mackenzie, Mayor Mary Sjostrom of the City of Quesnel, and past recipients, Maggie Ip of Vancouver, Alan Markwart of Victoria and Don Shumka of Vancouver.

The British Columbia Achievement Foundation is an independent foundation established and endowed by the province of B.C. to celebrate excellence in the arts, humanities, enterprise and community service. Launched in 2003, the awards were the first initiative of the foundation, followed by the B.C. Creative Achievement Award for Applied Art and Design, B.C.’s National Award for Canadian Non-Fiction, the B.C. Creative Achievement Award for First Nations’ Art, and the B.C. Aboriginal Business Awards.

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Contact: Nora Newlands Executive Director British Columbia Achievement Foundation 604-618-6949 [email protected]

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Carol Hunt North Cowichan

Carol Hunt has made a tremendous difference in the Cowichan Valley with her positive attitude, her outstanding ability to communicate, to mobilize, to unite and to connect with people. She has been a strong advocate for seniors, launching initiatives in supportive housing and transportation. She served as executive director of Cowichan Seniors Community Foundation and the Valley’s Hospice Society. As well, Carol has contributed to the wider community through her board membership in organizations such as the Duncan Chamber of Commerce, Community Futures Cowichan and the Cowichan Community Health Network. She is recognized as a trusted advisor and a catalyst who makes positive things happen in the Cowichan Valley.

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104 Maple bay Community Association A threat to NorthCowichan's marine environment May 2014

North Cowichan's bays and harbours are threatened with pollution from: live aboard vessels; derelict and abandoned vessels.

Live aboard vessels pollute the water by discharging untreated sewage into local harbours and bays and cause noise pollution byrunning un-muffled generators at all hours of the day and night.

Derelict and abandoned vessels not only present an eyesore but pose a threat of contaminating the water by leaking fuel. If they sink, as has happened in Chemainus and more recently in Maple Bay, they can leak significant quantities of fuel and other toxic substances that are usually on board.

Other municipalities are introducing by-laws to address this problem, one consequence of which is to move the problem to areas that do not have by-law protection, such as the bays and harbours of North Cowichan.

An acknowledged difficulty is the overlapping of Federal, Provincial and Municipal jurisdiction and the financial burden that might be assumed. This leads to inaction until the problem becomes acute. At that point local authorities are taking action and finding ways to address the problem through their zoning by-law. They realize that they cannot wait for others to act.

North Cowichan itself addressed the pollution problems presented by float homes byapproving a by-law that requires float homes located in the zone that extends 1,000 feet from the foreshorehigh water mark to be connected to an approved sewage disposal system. We urge the municipality to use the zoning by-law, currently under review, to: - restrict the use of zones that extend 1,000 feet from the foreshore high water mark to recreational use, thereby prohibiting live-aboard vessels [as did West Kelowna): or - require live aboard vessels to be connected to an approved sewage disposal system [as is being proposed in bylaw 3773 by CVRD);and to prohibit derelict vessels and abandoned vesels in the zone.

The OCP states: "North Cowichan's 40+ kilometres of oceanfront represents a substantial asset that requires special attention and management," We ask that Council stipulate that, as an essential part ofthe current zoning by-lawreview designed to align it with the OCP, staff be instructed to propose amendments or additions to address the rapidly growing problem of live-aboard, derelict and abandoned vessels.

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3122 Gibbins Road Duncan, BC V9L 1G2 Email: [email protected] www.cowichanvalleyhospice.org Phone : 250-701-4242 In Ladysmith: 1-888-701-4242

MaryAnn Deacon, President and Gretchen Hartley, Executive Director of Cowichan Valley Hospice will make a presentation seeking North Cowichan Council support for a motion in favour of the development of a CVRD service function for Cowichan Valley Hospice. We will provide information about current hospice services, their reach and how they are currently funded.

2013 Cowichan Valley Hospice clients by identified community Chemainus 40 Cobble Hill 50 Cowichan Bay 27 Crofton 27 Duncan postal (includes North Cowichan and several electoral areas) 381 Ladysmith 67 Lake Cowichan (including Mesachie, Honeymoon Bay, Youbou) 37

Shawnigan Lake 27 Other 20

Cowichan Valley Hospice Caring for families through advancing illness and grief Since 1981

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108

BYLAW 3455 Park Dedication (Echo Heights) Bylaw

WHEREAS section 30 (1) of the Community Charter empowers a municipal council, by bylaw, to reserve or dedicate for a particular municipal or other public purpose real property owned by the municipality;

AND WHEREAS section 8 (3) (b) and 62 of the Community Charter empowers a municipal council, by bylaw, to regulate, prohibit and impose requirements in relation to public places;

AND WHEREAS The Corporation of the District of North Cowichan owns certain lands that it wishes to dedicate as park, and to preserve and protect the unique atmosphere, environment, and ecology of these lands;

NOW THEREFORE the council of The Corporation of the District of North Cowichan enacts as follows:

1 The lands shown outlined in bold on the Schedule, attached to and forming part of this bylaw, are dedicated as a public park.

2 The development and improvement of the said park must be directed toward the preservation of the atmosphere, environment, and ecology of the park for public enjoyment.

READ a first time on May 7, 2014 READ a second time, as amended, on May 21, 2014 READ a third time, as amended, on May 21, 2014 ADOPTED by a 2/3 majority of all members of Council on

M. O. Ruttan, Corporate Officer J. W. Lefebure, Mayor

109 Schedule

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BYLAW 3542 Zoning Amendment Bylaw (No. 4 - Echo Heights), 2014

The council of The Corporation of the District of North Cowichan enacts as follows:

1 Schedule “C” of “Zoning Bylaw 1997,” No. 2950, is amended by re-classifying properties shown as “Subject Area” and outlined in bold on the Schedule, attached to and forming part of this bylaw, from Residential Restricted Zone (R2) and Residential One and Two Family Zone (R3) to a mix of Public Conservation Zone (PC), Residential One and Two Family Zone (R3), Residential Small Lot Single Family Zone (R3-S), Residential Two Family Detached Zone (R3-CH), Residential Medium Density Multi-Family Zone (R3-MF) and Residential Multi-Family Zone (R7).

READ a first time on April 16, 2014 READ a second time on April 16, 2014 RESCINDED and ABANDONED on

M. O. Ruttan, Corporate Officer J. W. Lefebure, Mayor

111 Schedule

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BYLAW 3545 Select Committees Bylaw Contents Section 1 Establishment 2 Structure 3 Appointments 4 Procedures 5 Referrals 6 Terms of Reference 7 Repeals Schedule

WHEREAS Section 142 of the Community Charter authorizes a municipal council to establish and appoint a select committee to consider or inquire into any matter and to report its findings and opinions to Council;

AND WHEREAS the Council of the Corporation of the District of North Cowichan considers it desirable to establish and maintain select committees to advise Council on various matters requiring specialized knowledge or experience;

NOW THEREFORE the Council of The Corporation of the District of North Cowichan, enacts as follows:

Establishment 1 The following select committees are established: (a) Agricultural Advisory Committee (b) Audit Committee (c) Chemainus Advisory Committee (d) Climate Change Advisory Committee (e) Community Planning Advisory Committee (f) Economic Development Advisory Committee (g) Forestry Advisory Committee (h) Parks and Recreation Advisory Committee (i) Sports Wall of Fame Nomination Committee

Structure 2 (1) Each select committee will consist of 7 members.

(2) At least one member of each select committee must be a member of Council.

Appointments 3 (1) All appointments, except those of Council members, may be for up to 3-years, and may be renewed at the pleasure of Council.

(2) Appointments to committees must be made by Council as terms expire or vacancies occur.

113 Procedures

4 (1) The Council Procedure Bylaw applies to all select committees.

(2) A select committee may adopt rules of procedure to be followed at its meetings not inconsistent with the Council Procedure Bylaw.

(3) A select committee must, at its first meeting each year (a) elect from its members a chair and a vice-chair, and (b) establish a regular schedule of meetings, or agree to hold meetings at the call of the chair.

(4) The chair, or presiding member in the absence of the chair, must preserve order at all meetings and, subject to an appeal to other members present, decide points of order that may arise.

(5) A member who is absent for 3 consecutive meetings without leave of the committee is deemed to have resigned from the committee.

(6) Sections 100 [disclosure of conflict] and 101 [restrictions on participation if in conflict] of the Community Charter apply to each member of a select committee.

Referrals and Recommendations 5 (1) The general purpose of each select committee is to act in an advisory capacity to Council.

(2) Each select committee must (a) advise Council on such matters as may from time to time be referred to them, (b) deal expeditiously with all matters referred to it by the Council or, in the case of the Community Planning Advisory Committee, the Approving Officer, and (c) before making a recommendation, consider the Official Community Plan and any other applicable bylaws and policies.

Terms of Reference 6 The terms of reference and non-council membership of each select committee are listed in the Schedule attached to and forming part of this bylaw.

Repeals 7 “Select Committees Bylaw”, No. 3496, is repealed.

READ a first time on May 21, 2014 READ a second time on READ a third time on ADOPTED on

M. O. Ruttan, Corporate Officer J. W. Lefebure, Mayor

-2- 114 SCHEDULE Item Column 1 Column 2 Column 3 Select Committee Purpose Non-Council Membership 1 Agricultural Advise Council on ways to: up to 6 Advisory Committee 1. oversee implementation of North Cowichan’s (with interest or Strategic Agricultural Plan; experience in 2. assist local agricultural organizations; agriculture) 3. promote public awareness of agriculture, its role and economic importance; and 4. consider land uses in or abutting agricultural land. 2 Audit Committee 1. Perform annual assessment and periodic none comprehensive review of external auditors. 2. Recommend appointment and termination of auditors. 3. Review and approve the annual audit plan. 4. Review financial reports provided by management. 5. Review audited financial statements and independent auditor's reports. 6. Meet with external auditors as required. 7. Review and discuss systems and controls to identify, monitor, and mitigate significant financial and business risks. 3 Chemainus Advisory Advise Council on: up to 6 (mix of Committee 1. broad issues affecting Chemainus residents; Chemainus 2. matters consistent with the long-term vision residents and, for Chemainus articulated in the Official Chemainus Community Plan; and organizations) 3. opportunities for Council to hold periodic meetings in Chemainus. 4 Climate Change Advise Council on ways to: up to 6 Advisory Committee 1. comply with BC Climate Action Charter; 2. provide stewardship of North Cowichan’s ecological assets; 3. foster North Cowichan’s environmental well- being; 4. address climate change and environmental issues; 5. promote public awareness of climate change and the environment; 6. resolve potential environmental problems and issues; and 7. cooperate with the regional district on climate change and environmental issues. 5 Community Advise Council on: up to 4 Planning Advisory 1. planning and land use management; Committee 2. heritage conservation; and 3. community planning issues.

-3- 115 6 Economic Advise Council on ways to: up to 6 Development 1. support, coordinate and promote economic Advisory Committee development efforts in North Cowichan; 2. oversee implementation of North Cowichan’s Economic Development Work Plan; and 3. periodically evaluate and recommend revisions, as necessary, to North Cowichan’s Economic Development Work Plan. 7 Forestry Advisory 1. Advise Council on forest reserve management up to 6, 3 of which Committee and forestry issues. must be 2. Audit Forestry Department operations. Professional 3. Review Forestry Department financial plan. Foresters 8 Parks and Recreation Advise Council on: up to 6, including Advisory Committee 1. municipal leisure and recreation issues; one representative 2. acquisition and disposal of land for public from Duncan recreation; and Council 3. the parks and recreation component of the financial plan. 9 Sports Wall of Fame Recommend individuals and teams for recognition on up to 6 Nomination the Sports Wall of Fame. Committee

-4- 116 Report

Date May 26, 2014 File: 3900-50 OFF

To Council From Mark Ruttan, Director of Administration Endorsed: Subject Officers and Indemnity Bylaws

Purpose

The purpose of this report is to provide additional information to Council on the attached Officers Bylaw and Indemnification bylaws.

Background

In 1990, Council adopted “Officers and Administrative Employees Bylaw 1990”, No 2512, to 1. designate municipal officer positions, 2. regulate working conditions for officers and non-union employees, and 3. provide indemnification for these positions.

On May 21, 2014, council read each bylaw a first time and asked staff for more information about the bylaws.

Analysis

Council must establish officer positions by bylaw. Section 146 of the Community Charter requires a municipal council to establish officer positions in relation to the powers, duties and functions under section 148 [corporate officer] and 149 [financial officer]. In addition, a council may establish other officer positions (such as a chief administrative officer) and may assign powers, duties and functions to these officer positions. The Charter provides in section 147 that if a council establishes the position of chief administrative officer, that officer's powers, duties and functions include overall management responsibility for the operations of the municipality. It should be noted that other delegated powers, duties and functions can be found in the Delegation of Authority Bylaw, which is not proposed to be amended at this time.

Municipalities with more than a few thousand people typically have a chief administrative officer, in addition to the mandatory corporate and financial officers. Some cities define more officer position but it is not necessary. North Cowichan’s existing bylaw defines numerous officer positions but does not assign to them any powers, duties or functions, making it uncertain what “officer” powers, duties and functions they are expected to perform.

Once Council has established officer positions by bylaw, and has assigned specific powers, duties and functions to those positions, Council is required to appoint persons to such officer positions, and may require that officers swear an oath of office before assuming their duties.

7030 Trans-Canada Highway | Box 278 | Duncan, BC V9L 3X4 Ph 250.746.3100 Fax 250.746.3133 www.northcowichan.ca 117 Page 2

Officers serve at the pleasure of Council, meaning Council can dismiss an officer without cause on reasonable notice or immediately in the case of termination for cause (see section 152 of the Community Charter). In addition, the Mayor has authority under section 151 of the Community Charter to suspend a municipal officer or employee if the Mayor considers this necessary, and at the next Council meeting “Council may reinstate the officer or employee, confirm the suspension, confirm and extend the suspension, or dismiss the officer or employee”.

Regarding working conditions for officers and non-union employees, it is not necessary or advisable to prescribe these by bylaw. These are adequately covered by labour law, personnel manuals, and occasionally by contract.

Regarding indemnification, the statutory authority for Council to indemnify officials is found in sections 187 of the Community Charter and 287.2 of the Local Government Act. The existing bylaw only applies to officers and non-union employees and was based on narrower authority under the now repealed Municipal Act. The proposed bylaw provides indemnification to all current and former staff and Council members from actions for damages that arise out of the performance of their duties (provided they have not been found guilty by a court of dishonesty, gross negligence, or malicious or wilful misconduct).

The proposed bylaw obligates these persons to cooperate with the Municipality and allows the Municipality to seek recovery from these persons if they are in fact found guilty of dishonesty, gross negligence, or malicious or wilful misconduct. Expanding the scope of the indemnification in will make it consistent with section 287.2 of the Local Government Act, avoid the need for Council to pass resolutions on a case-by-case basis to grant indemnification, and give all current and past staff and Council comfort that they will be indemnified in accordance with the terms of the bylaw.

The question was asked at the last Council meeting about whether North Cowichan has officers and directors liability insurance. In the public sector, this insurance is typically acquired through a separate public officials’ liability insurance policy, which North Cowichan used to have. However, for the past few years, to save money, North Cowichan has maintained this coverage by endorsements to its comprehensive general liability insurance policy. I can provide the policy but it is 88-pages long. Please see me if you want to review it.

For your information, our insurance broker has reviewed the Indemnification Bylaw and believes North Cowichan has appropriate limits. They do note that the bylaw indemnity is unlimited, whereas there is a limit to our policy and some things are not covered, but that at the end of the day, it is normal for an organization to promise to provide such indemnity without limit.

Recommendation

1. That Council read a second and third time "Officers Bylaw", No. 3538. 2. That Council read a second and third time "Indemnification Bylaw", No. 3539.

Attachments (3): “Officers Bylaw”, No. 3538, “Indemnification Bylaw”, No. 3539, “Officers Bylaw”, No. 2512

7030 Trans-Canada Highway | Box 278 | Duncan, BC V9L 3X4 Ph 250.746.3100 Fax 250.746.3133 www.northcowichan.ca 118

BYLAW 3538 Officers Bylaw Contents

Section 1 Officer positions 2 Chief Administrative Officer 3 Director of Corporate Services 4 Director of Financial Services 5 Deputies 6 Other powers, duties and functions 7 Repeal

WHEREAS Council may, by bylaw, establish the position of chief administrative officer in relation to the powers, duties and functions under section 147 of the Community Charter;

AND WHEREAS Council must, by bylaw, establish the positions of corporate officer and financial officer in relation to the powers, duties and function under section 148 and 149 of the Community Charter;

NOW THEREFORE the council of The Corporation of the District of North Cowichan enacts as follows:

Officer positions 1 The following officer positions are established: (a) Chief Administrative Officer; (b) Director of Corporate Services; (c) Director of Financial Services.

Chief Administrative Officer

2 The Chief Administrative Officer is assigned the powers, duties and functions of chief administrative officer under section 147 of the Community Charter.

Director of Corporate Services

3 The Director of Corporate Services is assigned the powers, duties and functions of corporate officer under section 148 of the Community Charter.

Director of Financial Services

4 The Director of Financial Services is assigned the powers, duties and functions of financial officer under section 149 of the Community Charter.

119 Deputies

5 Council may from time to time appoint persons as deputies to the officer positions established under section 1.

Other powers, duties and functions

6 The powers, duties and functions of officer positions established under section 1 are in addition to the delegated powers, duties and functions of Council under the Delegation of Authority Bylaw.

Repeal

7 “Officers and Employees Administrative Bylaw 1990”, No. 2512, is repealed.

READ a first time on May 21, 2014 READ a second time on READ a third time on ADOPTED on

M. O. Ruttan, Corporate Officer J. W. Lefebure, Mayor

- 2 - 120

BYLAW 3539 Indemnification Bylaw Contents

Section 1 Definitions 2 Indemnification 3 Exceptions 4 Process 5 Recovery 6 Severability

WHEREAS sections 187 of the Community Charter and 287.2 (2) of the Local Government Act authorizes Council, by bylaw, to provide for the indemnification of municipal officials;

NOW THEREFORE the council of The Corporation of the District of North Cowichan enacts as follows:

Definitions 1 In the Bylaw: “Council” means the Council of the Municipality; “Municipality” means the Corporation of the District of North Cowichan; “municipal official” means (a) a current or former member of Council, (b) a current or former employee or officer of the Municipality, or (c) a person who is, or was, a person referred to in section 287 (1) of the Local Government Act acting for, or on behalf of, the Municipality.

Indemnification

2 The Municipality will indemnify its municipal officials in respect of all amounts required or incurred

(a) to defend an action, or prosecution brought against the municipal official, in connection with the exercise, or intended exercise, of the municipal official’s powers, or the performance, or intended performance, of the municipal official’s duties or functions,

(b) to satisfy a judgment, award or penalty imposed in an action or prosecution, referred to in paragraph (a), or

121 (c) in relation to an inquiry under the Public Inquiry Act, or to another proceeding that involves the administration of the Municipality or the conduct of its business.

Exceptions

3 Section 2 does not apply where a court of competent jurisdiction finds a municipal official guilty of dishonesty, gross negligence, or malicious or willful misconduct.

Process

4 Where indemnity is or may be claimed under this Bylaw, the municipal official must do all of the following:

(a) promptly, after being served with a document initiating an action or prosecution, deliver a copy of the said document to the Director of Corporate Services;

(b) not admit or assume liability, enter into a settlement, or enter a guilty plea except with the approval of Council;

(c) consent in writing to the Municipality having sole discretion to appoint and instruct legal counsel, conduct all necessary investigations, negotiate and settle the action or prosecution;

(d) co-operate with the Municipality and appointed legal counsel to secure information, evidence and witnesses, and defend the action or prosecution.

Recovery

5 The Municipality will not seek recovery of its costs against a municipal official in respect of any action which results in a judgment for damages against the Municipality, provided a court has not found the municipal official guilty of dishonesty, gross negligence, or malicious or willful misconduct.

Severability

6 If any provision of this bylaw is, for any reason, found invalid by a court of competent jurisdiction, the provision must be severed and the remainder of the bylaw left enforceable and in effect.

READ a first time on May 21, 2014 READ a second time on READ a third time on ADOPTED on

M. O. Ruttan, Corporate Officer J. W. Lefebure, Mayor

- 2 - 122 The Corporation of the District of North Cowichan

Bylaw No. 2512

A Bylaw to Regulate the Conditions of Employment of Officers and Employees of the District of North Cowichan

This bylaw is consolidated under section 139 of the Community Charter and is printed by authority of the corporate officer.

Pursuant to section 139 (3) of the Community Charter, “a printed document purporting (a) to be a copy of a bylaw consolidated under this section, and (b) to be printed by authority of the corporate officer is proof, in the absence of evidence to the contrary, or the original bylaw, of all bylaws amending it and of the fact of adoption of the original and all amending bylaws.”

Amendment Bylaw Effective Date

2634 ...... JUN 17, 1992 2813 ...... MAY 17, 1995 3075 ...... JUN 07, 2000

The Municipal Council of The Corporation of The District of North Cowichan ENACTS as follows:

1. In this By-law unless the context otherwise requires, the following words shall have the meanings hereinafter assigned to them:

a) "District" - means The Corporation of The District of North Cowichan b) "Council" - means the Council of The Corporation of The District of North Cowichan c) "Municipality" - means The Corporation of the District of North Cowichan d) "Administrator" - means the Administrator, or his assistant, duly appointed by the Council

2. For ease of reference and without affecting the meaning thereof the provisions of this By-law are divided into the following:

Part Topic Section

I To Whom does the By-law Apply...... 3-4 II The Difference between an Officer and an Employee...... 5 III Appointment Procedures ...... 6-12 IV Suspensions and Dismissals ...... 13-16 V Resignations ...... 17-18 VI Interim Appointments ...... 19 VII Duties of Officers and Employees...... 20-21 VIII Remuneration ...... 22-24 IX Holidays and Absences...... 25-35 X Retirement...... 36-37 XI Sick Leave...... 38-41 XII Health and Life Insurance Schemes ...... 42-47 XIII Disputes...... 48 XIV Additional Benefits...... 49 Indemnification...... 50-52 Education Allowance...... 53 Overtime, Lieu Time, and Attendance at Meetings...... 54

1

123 Compassionate Leave and Other Leave of Absence...... 55 Working Weeks and Hours ...... 56

Application

3. This By-law applies to all officers and employees of the District who are not members of a bargaining unit, in respect of which a bargaining agent has been certified under the provisions of the Labour Code of B.C.

4. Nothing in this By-law shall prevent the Council from authorizing the execution of a contract between the District and an officer, an employee, or group of employees and the provisions of such contract, to the extent of any inconsistency, shall prevail over the provisions of this By-law.

5. (i) For the purposes of this By-law, persons occupying the following positions shall be deemed to be officers of the Municipality:

a) the Administrator b) the Municipal Clerk c) the Deputy Municipal Clerk d) the Municipal Treasurer e) the Deputy Municipal Treasurer f) the Collector BL 3075 g) the Deputy Collector BL 3075 h) the Human Resources Manager i) the Municipal Engineer j) the Assistant Municipal Engineer BL 3075 k) the Chief Building Inspector l) the Municipal Forester m) the Recreation Director n) the Municipal Planner o) the Operations Manager p) the Assistant Operations Manager q) the Local Assistant Fire Commissioner/Fire Inspector BL 2813 r) the Senior Accountant

(ii) All other persons under this By-law are employees.

Appointments

6. The Administrator shall be appointed by the Municipal Council.

7. The officers shall be appointed by the Council in consultation with the Administrator.

8. Employees shall be appointed by the Administrator in consultation with the Department Head concerned.

9. All officers and employees shall serve a probationary period of three (3) months before being eligible for appointment to the permanent staff.

10. During the probationary period, the Council may dismiss an officer upon recommendation of the Administrator, and the Administrator may dismiss an employee, in each case without notice.

10(a). Officers and employees who are promoted to a higher position shall serve a minimum one month trial period, at the completion of which the officer or employee shall either be confirmed in the position or returned to the position occupied prior to the promotion.

11. The Administrator may extend the probationary period of an officer or employee by not more than an additional period of three (3) months.

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124 12. An officer or employee shall, before commencing employment, take and subscribe to an Oath of Allegiance and, if an officer, the Oath of Office required by the Municipal Act.

Suspensions and Dismissals

Termination of Officers and Employees

13. (i) Subject to a contract of employment and notwithstanding this By-law, the engagement of an officer of a municipality may be terminated:

a) on reasonable notice and then only by approval of at least 2/3 of the members of Council; or

b) without notice for cause, providing a majority of Council approves

(ii) In this section, those persons deemed to be officers are as designated in Section 5(i) of this By-law.

14. (i) Subject to a contract of employment, the engagement of an employee may be terminated by the Administrator with notice for cause:

a) if engaged on a monthly or longer basis, on one month's notice in writing; b) if engaged on a weekly basis, on one week's notice; or c) if engaged on a daily or hourly basis, on one day's or one hour's notice.

(ii) An employee may be dismissed without notice for cause.

15. (i) The employment of an officer or employee may be suspended by the Administrator, such suspension shall be reported to Council who, in turn, shall:

a) exonerate the officer or employee, as the case may be, rescind the suspension, and reinstate him or her with full pay and without loss of benefits for the period of the suspension; or

b) convert the suspension into a dismissal retroactive to the date when the suspension commenced in the manner and on the ground provided in Section 13; or

c) if grounds for dismissal for cause do not exist, instead of dismissing the officer or employee, reinstate him or her after withholding his or her pay for the period of the suspension, in which event the period of such suspension shall be excluded from any computation of the length of his or her service or of any benefits.

16. (i) No suspension shall be for longer than sixty (60) calendar days, provided that where an officer or employee has been formally charged in court with the commission of a criminal offence the suspension may continue until fifteen (15) calendar days after the final determination of the criminal proceedings.

Resignations

17. An officer may, at any time, resign his or her office on giving at least one month's notice in writing to the Administrator who, on receipt thereof, shall notify the Mayor and the Council, provided, however, that the Administrator or the Council may accept verbal or shorter notice.

18. An employee may resign his or her employment at any time on giving at least fifteen (15) calendar days written notice to his or her Department Head who, on receipt thereof, shall notify the Administrator, provided, however, that the Department Head or Administrator may accept verbal or shorter notice.

Interim Appointments

3

125 19. The Council may, from time to time, make interim appointments of officers during the absence of an officer or during a vacancy in an office mentioned in Section 5. Such person shall, while so acting, have all the duties and powers of an officer, but shall not have any of the rights or privileges conferred upon officers by this By- law. Council also has the power to revoke such appointments.

Duties of Officers and Employees

20. Each officer shall perform the duties of his or her office prescribed by Statute and by By-law, if any, and shall in addition perform such duties, incidental to the purpose of his or her office as may from time to time be assigned to him or her by the Council, the Mayor, or the Administrator, provided that in the event of a conflict between the instructions given by the Council and the instructions given by the Mayor or by the Administrator, the instructions of the Council shall prevail and, in the event of a conflict between the instructions given by the Mayor and the Administrator, the instructions given by the Mayor shall prevail.

21. Each employee shall perform the duties as assigned by the department head.

Remuneration

22. All officers and employees shall be paid salaries on a monthly basis in accordance with the pay plan now in force, or in accordance with such modifications thereof as may from time to time be made by resolution of Council.

23. No officer or employee shall be entitled to any adjustment within a pay plan unless approved by the Administrator in writing.

24. Any officer or employee who is required to perform the duties of any person in a superior office of employment for more than one month, otherwise than by reason of the absence on vacation of such superior shall, during such time be paid, in addition to his or her normal pay, either the difference between his or her current rate of pay and the minimum rate of pay applicable to such office or position or, if such minimum rate of pay is not higher than his or her current rate of pay, then the difference between his or her current rate of pay and the rate of pay applicable to his or her superior that is higher than the said current rate of pay. Such temporary additional remuneration shall not be taken into account for the purpose of calculating current and accrued annual holidays or other benefits.

Holidays and Absences

25. No statutory holiday falling within a period of an officer's or employee's absence from work, whether on annual holiday or on sick leave, shall be included in the computation of the length of his or her absence, except under Section 37.

26. In this Bylaw "statutory holiday" means New Year's Day, Good Friday, Easter Monday, Victoria Day, Dominion Day, British Columbia Day, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day, the day following Christmas Day, and every day which is a public holiday by virtue of the Interpretation Act or by virtue of a proclamation of the Government of Canada or of British Columbia, or which the Council declares to be a day on which the Municipal Hall shall be closed to the public (except when such closure is due to a strike by or lockout of any District employees), and each Saturday and Sunday. Every day other than a "statutory holiday" is a "working day".

27. For the purposes of calculating holiday entitlements only years of service with the Municipality shall be considered.

28. Officers and employees with less than one (1) entitlement year service as at June 30th shall be entitled to paid leave equal to 1/12th of fifteen (15) working days for each calendar month (or portion of a calendar month greater than half a month) of completed services.

29. An officer or employee whose employment terminates within twelve (12) months after the commencement of his or her employment shall be entitled to a payment in lieu of annual holiday equal to 6% of the amount of

4

126 his or her gross pay for the period of his or her employment, less an amount, in each case, equal to the paid value of any annual holiday actually taken.

BL 2634 30. Each officer or employee shall, after the 30th day of June of the year in which he or she commences his or her service, be entitled to paid annual holiday leave equal to fifteen (15) working days in each entitlement year of service. In the third (3rd) year, and in each ensuing year up to the seventh year, one (1) additional day of vacation with pay shall be granted each year resulting in twenty (20) days annual vacation in the seventh (7th) year. In the tenth (10th) year, one (1) additional day of vacation with pay shall be granted each year resulting in twenty-five (25) days annual vacation. In the twenty-first (21st) year, one additional day of vacation with pay shall be granted each year resulting in six (6) weeks vacation in the twenty-fifth (25th) year and each subsequent year of service.

31. Upon the termination of the service of an officer or employee his or her annual holiday entitlement in respect of the entitlement year in which the termination occurs shall be prorated to the length of his or her actual service during that year. If he or she has not taken his or her prorated annual holiday entitlement for that final year, he or she shall be paid a sum of money equal to the daily pay which he or she would have earned for the unexpired period of entitlement and, if he or she has taken more than his or her entitlement, he or she shall make a cash refund to the District, equal to his or her daily pay for the excess period.

32. In this By-law, "entitlement year" means a period commencing on the 1st day of July, and ending on the following 30th day of June, both dates included.

33. All annual holiday leave of officers shall be taken at such times as the Administrator may approve, and no such leave may be accumulated beyond April 30th of the year following without written approval of the Administrator.

34. Each employee shall take annual holidays at such time as the Department Head may approve, and no such annual holiday leave may be accumulated beyond April 30th of the year following without the approval of the Administrator.

35. Each officer and full-time employee who has completed fifteen (15) years of continuous service with the Municipality, whether as officer or employee or both shall, at the end of the period of fifteen (15) years, be entitled to one calendar month's paid leave as a reward for long and faithful service, in addition to his or her normal annual holiday leave, which calendar month shall be inclusive of statutory holidays falling within it, provided that, unless the Administrator authorizes any other arrangement, such leave shall be taken not later than one year before the retirement of the officer or employee.

Retirement

36. Each officer and employee who retires, having reached the minimum retirement age, as defined by the Municipal Superannuation Act, or who has selected early retirement in accordance with that Act, shall be paid by the District a sum of money equal to thirty (30) days leave with pay at the rate of pay then received by him or her from the District.

37. Each officer and employee shall retire not later than the last day of the month during which he or she reaches his or her maximum retirement age as defined by the Municipal Superannuation Act, provided that the Council may, from time to time by resolution extend the term of his or her employment for not more than one (1) year at any one time and, provided further that nothing herein contained shall be so construed as to deprive an officer or employee of his or her right to retire at any time on or after the date when he or she has reached his or her minimum retirement age as defined in the Municipal Superannuation Act on giving notice in terms of Section 17 or Section 18, as the case may be.

Sick Leave

38. Sick leave, after completion of 6 months service, is earned at the rate of one (1) day every month an employee is employed. Officers or employees who are absent may be requested to produce a medical certificate for any day(s) absence due to illness.

39. Any officer or employee who has not, during any year of his or her employment, availed himself or herself of the full sick leave to which he or she was entitled during that year in accordance with Section 38, shall be

5 127 entitled to accumulate 100% of such available sick leave from year to year. Accumulations shall be to a maximum of 180 days except where such employees have already accumulated a maximum of more than 180 days. In these circumstances, the maximum accumulation will only decrease when an employee is sick in excess of the twelve (12) days credit in a calendar year. In this situation, the maximum accumulation will be reduced by the days absent in excess of twelve (12) and frozen at that new level.

40. Any officer or employee who, after five (5) years of continuous service, resigns, retires, or is dismissed from his or her employment by the District (whether for cause or otherwise) and who has accumulated sick leave to his or her credit shall upon the termination of his or her employment, be paid by the District for such accumulated sick leave based on the rate of pay he or she received from the District at the date of termination.

41. The estate or written nominee of an officer or employee who dies after completing five (5) years of permanent service with the District, shall be paid the sum computed under the provisions of Section 40 as if, for the purpose of that Section, he or she had resigned instead of died.

Health, Life Insurance, and Pension Schemes

42. Each officer and employee may participate in:

a) group health insurance schemes of the Medical Services Plan of British Columbia and of the Medical Services Association Extended Health Benefits; and

b) the dental care plan of the Medical Services Association consisting of Part A at one hundred percent (100%), and Part B at fifty percent (50%).

The employer shall pay 100% of the monthly premiums.

43. Each officer and employee shall, upon his or her permanent employment, join the Group Life Insurance Plan presently in force for the benefit of officers and employees, and shall pay the premium applicable.

44. Each officer and employee shall, upon his or her permanent employment, join the Municipal Superannuation (Pension) Plan presently in force for the benefit of officers and employees.

45. Each officer and employee shall, upon his or her permanent employment, join a Long Term Disability Plan presently in force for the benefit of officers and employees. The employer shall pay 100% of the monthly premiums.

46. The District shall maintain in force the existing Group Life Insurance Plan for the benefit of its officers and employees, and shall continue to pay the premium applicable, provided that if the insurer terminates the policy, the Council shall, and in any other circumstances the Council, with the approval of the majority of officers and employees may, effect such group life insurance upon the best terms available from another insurer.

47. Employee benefit plans shall be maintained while an employee is serving a period of suspension without pay. Further, when an employee is discharged and a grievance is lodged according to the grievance procedure, the benefit plans shall be sustained until the conclusion of the final resolve. The full cost of the premiums shall be paid by the employer for the suspension or the aborted dismissal. However, in the event that the suspension or dismissal is upheld, the employee so affected shall repay to the employer a sum equal to the cost of the premiums paid on his behalf.

Disputes

48. Any officer or employee who has a dispute or difference of opinion in respect to the terms and conditions of employment or the interpretation of the provisions of this By-law, shall submit particulars thereof to the Department Head and, if the Department Head fails to resolve the matter to his or her satisfaction, he or she may appeal that decision to the Administrator.

Additional Benefits

49. Nothing herein contained shall be so construed as to preclude the Council from conferring any benefits upon all or any officers or employees in addition to those conferred by this By-law and, unless otherwise stipulated,

6 128 officers and employees are entitled to benefits agreed upon from time to time between Council and CUPE (Local 358) Duncan and North Cowichan Civics.

Indemnification

BL 3075 50. The District will indemnify its officers and employees, and past officers and employees, against claims for damages by third parties against an officer or employee, or a past officer or employee, arising out of the performance of his duties and, in addition, pay legal costs arising therefrom.

BL 3075 51. The District will not seek indemnity against its officers and employees, or past officers and employees, where the actions of those officers or employees, or past officers or employees, result in a claim for damages against the District by a third party.

52. The provisions of Section 50 and 51 above do not apply in any case where an officer or employee:

a) has been grossly negligent, b) has acted contrary to the terms and conditions of his or her employment; or, c) has acted contrary to an order given by a person in authority

Education Allowance

53. The Municipality may reimburse officers and employees who successfully complete educational courses approved by the Administrator for the cost of such course and expenses to attend examinations.

Overtime, Lieu Time, and Attendance at Meetings

54. (i) All overtime must be reported to, and authorized by, the appropriate Department Head and Administrator of the Municipality.

(ii) Standby time for the Duty Roster staff will be granted and it will be calculated on the basis of one (1) day for every week on duty plus an additional day if a statutory holiday falls within the standby week. The accumulation of days is to be taken as time off in lieu or be paid.

(iii) Employees will be entitled to time and one half for the first two (2) hours of overtime and double time thereafter for hours worked in excess of a normal work day (i.e. seven (7) hours clerical, and eight (8) hours Public Works, and seven (7) hours Engineering. Time and one half will be paid for the first two (2) hours up until noon, Saturday. Double time shall be paid for all time after noon on Saturday, and all time incurred on Sundays or statutory holidays. The employees may elect to take compensating time off or to be paid in lieu.

(iv) All officers may be entitled to up to five (5) additional days off at the discretion of the Administrator.

(v) Accumulated overtime accrual shall not exceed 35 hours in any one (1) year and must be used by April 30th of the following year, subject to alternate arrangements at the discretion of the Administrator.

Compassionate Leave and Other Leaves of Absence

55. (i) On satisfactory evidence an officer or employee may be granted compassionate leave with pay for a period of up to three (3) days or, in special cases, in excess of three (3) days, at the discretion of the Administrator.

(ii) The employer shall grant bereavement leave with pay up to a period of three (3) regularly scheduled work days in the case of the death of an officer's or employee's wife, husband, parents, grandparents, grandchildren, brothers, sisters, children, parents-in-law, brothers-in-law, and sisters-in-law.

(iii) The Administrator shall grant leave of absence to an officer or employee who serves as a juror or witness in any court. The Municipality shall pay such an officer or employee the difference between his normal earnings and the payment he or she has received for jury service or court witness excluding

7 129 payment for transport, accommodation, and meals expenses. The officer or employee is to remit proof of service and the amount of payment received.

(iv) Officers and employees shall be entitled to maternity leave as specified under the Employment Standards Act - Part 7 - as amended from time to time. The leave provisions of this Act shall be extended by the Municipality on receipt of a physician's certificate which indicates that such an extension is for valid medical reasons. Notwithstanding the provisions of this Act, no officer or employee on maternity leave shall be terminated or given notice of termination during any such leave.

(v) An officer or employee of the Municipality may be entitled to a leave of absence without pay when such leave is requested for good and reasonable cause, in writing, and submitted to the Administrator.

Working Weeks and Hours

56. The regular working week for all officers and employees in the main and sub-office is 8:30 a.m. to 4:30 p.m. Monday to Friday for the period commencing at the beginning of September through to the end of June following. During July and August of each year, the hours of work are 8:00 a.m. to 4:00 p.m. Monday to Friday.

57. By-law No. 2218 is hereby repealed.

58. This By-law may be cited as the "Officers and Employees Administrative By-law 1990".

Received First Reading on the 4th day of April, 1990. Received Second Reading on the 4th day of April, 1990. Received Third Reading on the 4th day of April, 1990. RECONSIDERED, ADOPTED and FINALLY PASSED on the 18th day of April, 1990.

J. S. Dias, Municipal Clerk H. R. Hollett, Mayor

8 130 Report

Date May 21, 2014 File: 1870-20

To Council From M. Frame, Director of Finance Endorsed:

Subject 2013 Statement of Financial Information

Purpose

The purpose of the report is to provide the 2013 Statement of Financial Information for Council approval.

Background

The Financial Information Act requires municipalities to prepare a Statement of Financial Information in the prescribed form within 6 months of the corporation’s year end. The Statement must be approved by Council.

Recommendation

That Council approve the 2013 Statement of Financial Information

Attachment: 2013 Statement of Financial Information

7030 Trans-Canada Highway | Box 278 | Duncan, BC V9L 3X4 Ph 250.746.3100 Fax 250.746.3133 www.northcowichan.ca 131

132

The Corporation of the District of North Cowichan 7030 Trans Canada Highway Box 278, Duncan, B.C. V9L 3X4

Statement of Financial Information for the year ended, December 31, 2013

133 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Contents Management Report ...... 1

Schedule of Remuneration and Expenses ...... 2

Schedule of Goods and Services ...... 4

Schedule of Payments for Goods and Services ...... 5

Schedule of Guarantee and Indemnity Agreements ...... 9

Schedule of Severance Agreements ...... 9

Statement of Financial Approval ...... 10

134 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Management Report

The financial statements contained in this Statement of Financial Information under the Financial Information Act has been prepared by management in accordance with generally accepted accounting principles and the integrity and objectivity of these statements are management's responsibility. Management is also responsible for all the statements and schedules, and for ensuring that this information is consistent, where appropriate, with the information contained in the financial statements.

Management is responsible for implementing and maintaining a system of internal controls to provide reasonable assurance that reliable financial information is produced.

The Municipal Council is responsible for ensuring that management fulfills its responsibilities for financial reporting.

The external auditors, Hayes Stewart Little & Co., conduct an independent examination, in accordance with generally accepted auditing standards, and express their opinion on the financial statements. Their examination does not relate to the other schedules and statements required by the Act. Their examination includes a review and evaluation of the Corporation's system of internal control and appropriate tests and procedures to provide reasonable assurance that the financial statements are presented fairly.

On behalf of The Corporation of the District of North Cowichan

Mark Frame Director of Finance May 14, 2014

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135 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Schedule of Remuneration and Expenses Elected Officials

Name Position Remuneration Expenses Lefebure, J. Mayor$ 57,248 $ 4,867 Hartmann, R. Councillor 24,393 2,981 Koury, J. Councillor 20,908 5,918 Lines, B. Councillor 20,908 2,148 Marsh, K. Councillor 20,908 5,195 Siebring, A. Councillor 20,908 3,277 Woike, J. Councillor 20,908 4,110

Total Elected Officials $ 186,179 $ 28,497

Other Employees (Excluding those listed in Part 1 above)

Name Remuneration Expenses Barber, T. $ 83,553 $ 1,602 Bell, R. 86,365 1,268 Busch, R. 77,274 309 Clark, R. 85,324 56 Conway, D. 106,606 1,635 Devana, D. 178,388 7,907 Frame, M. 134,642 1,810 Frank, D. 139,561 923 Gailey, N. 76,925 528 Gellein, D. 75,334 2,692 Goodman, J. 76,905 545 Gourlay, W. 132,215 1,116 Graham, C. 113,540 2,491 Green, B. 106,448 2,760 Hammerer, J. 92,560 965 Hankey, T. 88,724 1,142 Hastings, R. 75,484 1,651 Hixson, S. 82,140 1,112 Knoke, S. 95,324 2,880 Laflamme, G. 109,285 759 Lukoni, L. 85,697 1,805 Mackay, J. 148,664 2,256 Mackenzie, M. 87,033 1,814 Mack, S. 142,025 1,576 Mansueti, E. 121,719 1,046 Maylen, R. 80,287 Milne, D. 79,082 Neiser, J. 77,127 Nilsen, P. 133,013 1,106

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136 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Other Employees (Excluding those listed in Part 1 above Continued)

Name Remuneration Expenses Oliphant, B. 94,821 1,533 Pite, J. 75,655 2,002 Reitsma, C. 111,762 2,565 Reynolds, B. 79,351 3,506 Richards, P. 84,966 1,640 Robinson, J. 79,326 75 Rogers, A. 75,391 2,419 Russel, B. 89,431 4,014 Ruttan, M. 126,053 4,057 Salvati, R. 81,893 Scott, J. 80,152 3,602 Stewart, D. 110,893 5,012 Todd, T. 163,032 1,515 Wiebe, W. 100,409 4,177

Sub total 4,324,380 79,868 Employees less than $75,000 8,726,076 149,229 Total Employees $ 13,050,457 $ 229,097

Reconciliation

Total Remuneration elected officials $ 186,179 Total Remuneration other employees $ 13,050,457 Subtotal $ 13,236,636 Reconciling Items Wages & benefits not included in the statement of operations 1,604,976 Total per Statement of Revenue and Expenditure $ 14,841,612

Prepared under the Financial Information Regulation, Schedule 1, subsection 6(2), (3), (4), (5) and (6)

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137 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Schedule of Goods and Services

1 Alphabetical list of suppliers who received aggregate payments exceeding $25,000

Supplier Name Aggregate amount paid to supplier

See attached list $ 52,797,270

2 Consolidated Total paid to suppliers who received aggregate payments of $25,000 or less

$ 3,606,544

3 Total of payments to suppliers for grants and contributions exceeding $25,000

Consolidated total of grants exceeding $25,000 $ Consolidated total of contributions exceeding $25,000 Consolidated total of all grants and contributions exceeding $25,000 $

4 Reconciliation

Total of aggregate payments exceeding $25,000 paid to suppliers $ 52,797,270 Consolidated total of payments of $25,000 or less paid to suppliers 3,606,544 Consolidated total of all grants and contributions exceeding $25,000

Total $ 56,403,814

Prepared under the Financial Information Regulation, Schedule 1, subsection 6(2), (3), (4), (5) and (6)

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138 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Schedule of Payments for Goods and Services

Supplier Name Total ACKLANDS GRAINGER INC $ 26,811.32 ANDREW SHERET LTD 67,812.12 AON REED STENHOUSE INC 293,629.00 ASSOCIATED ENGINEERING (BC) LTD 523,552.18 ATOMIC CRAYON 62,812.30 BC ASSESSMENT AUTHORITY 385,425.65 BC FOREST DISCOVERY CENTRE 25,000.00 BC HYDRO 1,295,173.15 BC HYDRO 33,123.30 BFI CANADA PARKSVILLE 195,363.91 BLACK PRESS GROUP LTD 39,761.85 BRADSHAW CONSTRUCTION (1995) LTD 35,708.87 BRENNTAG CANADA INC 146,461.05 BRINKMAN & ASSOCIATES REFORESTATION LTD 31,353.31 BRUNNELL CONSTRUCTION LTD 1,382,043.23 CANADIAN LINEN AND UNIFORM 26,929.18 CANADIAN UNION OF PUBLIC EMPLOYEES LOCAL 358 203,658.05 CANON CANADA INC 69,434.80 CDW CANADA INC 56,767.88 CDW SURVEY & DESIGN SERVICES LTD 34,169.87 CENTURY GROUP INC 1,792,497.28 CHEMAINUS VILLAGE SQUARE LTD 55,158.53 CHEMAINUS VALLEY HISTORICAL SOCIETY 34,683.49 CHEMAINUS BC BUSINESS IMPROVEMENT ASSOCIATION 97,854.99 CHESTERFIELD SPORTS SOCIETY COWICHAN 52,500.00 CHEVRON CANADA LTD 146,405.75 CITY OF DUNCAN 394,681.20 CLEAN SWEEP SERVICES 42,924.00 CLEARTECH INDUSTRIES INC 41,528.24 COASTAL ANIMAL CONTROL SERVICES OF BC LTD 147,791.67 COASTAL COMMUNITY INSURANCE SERVICES (2007) 25,459.00 COAST HYDROVAC 69,348.32 COHLMEYER ARCHITECTURE LIMITED 59,233.14 COLUMBIA FUELS 246,099.49 CORIX CONTROL SOLUTIONS LTD 28,933.39 CORIX WATER PRODUCTS LP 516,331.30 CORP OF THE DISTRICT OF NORTH COWICHAN PETTY 111,213.90

Prepared under the Financial Information Regulation, Schedule 1, section 7, and the Financial Information Act, section 2

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139 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Schedule of Payments for Goods and Services (Continued)

Supplier Name Total CORP OF THE DISTRICT OF NORTH COWICHAN 109,129.56 COTTAM ENTERPRISES LTD 33,018.37 COWICHAN VALLEY REGIONAL DISTRICT 10,946,654.60 COWICHAN BAND SUPERINTENDENT TRUST 290,168.57 COWICHAN VALLEY REGIONAL HOSPITAL DISTRICT 2,390,565.62 CUMMINS WESTERN CANADA 41,731.68 DAN'S PRECAST LTD 43,824.55 DAVID NIVEN GRADALL LTD 121,769.50 DELCAN CORPORATION 108,356.49 DELL CANADA INC 39,143.55 DG REGAN & ASSOCIATES LTD 27,165.56 DIAMOND K TRUCKING 47,034.76 DKI SERVICES LTD 211,764.02 D ROBINSON CONTRACTING LTD 56,000.00 DSS WELDING & FABRICATING LTD 49,519.26 DTZ VICTORIA LTD (IN TRUST) 28,875.00 DUNCAN PAVING LTD 2,021,737.15 DUNCAN CURLING CLUB 39,984.00 EB HORSMAN & SON 25,475.01 EDWARDS JANITORIAL SERVICESLTD 68,669.55 ELLISON EXCAVATING LTD 35,632.80 EMCO LIMITED 68,542.36 EQUITABLE LIFE 646,173.88 ESRI CANADA LTD 47,273.18 FORTISBC NATURAL GAS 115,992.96 FRASER VALLEY REFRIGERATION LTD 44,941.90 GENIVAR INC 49,029.00 GOLDER ASSOCIATES LTD 41,300.22 GRAPHIC OFFICE INTERIORS LTD. 53,867.90 HAYES STEWART LITTLE & CO 45,150.00 HB HARBOUR MANAGEMENT 102,204.45 HUTCHESON PLUMBING & GAS 31,638.51 INSURANCE CORPORATION OF BRITISH COLUMBIA 46,060.85 INPROTECT SYSTEMS INC 37,621.62 ISLAND HOSE & HYDRAULIC LTD 27,687.60 ISLAND EXCAVATING LTD 27,518.97 JACKSON A W 26,918.15

Prepared under the Financial Information Regulation, Schedule 1, section 7, and the Financial Information Act, section 2

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140 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Schedule of Payments for Goods and Services (Continued)

Supplier Name Total JACOB BROS CONSTRUCTION LTD 3,488,850.36 JSK TRAFFIC CONTROL SERVICES INC 176,309.00 KERR WOOD LEIDAL 56,583.34 KINETIC CONSTRUCTION LTD 1,074,324.21 LARRY GUHL EXCAVATING 171,933.64 L J BOLLINGER LANDSCAPING 30,648.63 MADILL THE OFFICE COMPANY 32,832.43 MAPLE BAY TOWNHOMES CORP 314,641.43 MAXXAM ANALYTICS 68,881.49 MCKINSTRY HOLDINGS LTD 38,048.26 MCTAR DIV OF LAFARGE CANADA INC 28,459.20 MEDICAL SERVICES PLAN OF BC 226,338.50 MICROSOFT LICENSING GP 75,131.98 MID ISLAND CONSUMER SERVICES COOP 42,519.00 MINISTER OF FINANCE 4,634,649.73 MINISTER OF FINANCE MINISTRY OF 45,871.66 MONK OFFICE 29,494.73 NCFD CHEMAINUS HALL 30,092.03 NCFD CROFTON HALL 53,517.98 OK TIRE DUNCAN 47,574.19 OWEN BIRD LAW CORP "IN TRUST" 514,957.41 PALLADIAN DEVELOPMENTS INC 1,453,570.55 PENSION CORPORATION 1,836,500.00 PLANET CLEAN (SOUTH ISLE) LTD 77,386.83 PORLIER PASS CONTRACTORS 2008 62,583.82 PRICE'S ALARM SYSTEMS LTD. 39,298.25 PRICE'S LOCKSMITHS (DUNCAN DIVISION) 26,434.93 PRIMARY ENGINEERING AND CONSTRUCTION CORPORATION 65,861.11 P&R WESTERNSTAR 208,771.70 R&B MANAGEMENT LTD 25,735.50 RECEIVER GENERAL FOR CANADA COMMISSIONER 2,968,659.32 RECEIVER GENERAL FOR CANADA REVENUE CANADA 3,454,815.13 LAC ROSS LAW CORPORATION IN TRUST 62,386.88 SAVEONSEPTIC SERVICES LTD 147,255.73 SCHO'S LINE PAINTING LTD 74,102.52 SCOTTISH LINE PAINTING LTD 52,930.33 SHURPOWER ELECTRIC LTD 31,866.84

Prepared under the Financial Information Regulation, Schedule 1, section 7, and the Financial Information Act, section 2

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141 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Schedule of Payments for Goods and Services (Continued)

Supplier Name Total SILVIFOR RESOURCE CONSULTANTS 91,518.50 SMITH CAMERON PROCESS SOLUTIONS 83,098.40 SOUTHERN RAILWAY VANCOUVER ISLAND 84,047.03 SOUTH VANCOUVER ISLAND ASSESSMENT & REFERRAL 30,256.00 SQUARE ONE PAVING LTD 29,734.06 STAN HOLMAN BACKHOE SERVICE 91,592.06 STANTEC ARCHITECTURE LTD (SAL) 146,894.93 STONE RIDGE SAND & GRAVEL 123,355.40 STONE PACIFIC CONTRACTING LTD 127,861.35 SUPERIOR EXCAVATING LTD 218,022.88 SUSTAINABILITY SOLUTIONS GROUP 28,698.47 SWING TIME DISTRIBUTORS LTD 30,332.96 TAGZ CONTRACTING 25,395.76 TAYLOR GRANITTO 29,337.95 TELUS 72,712.18 TELUS MOBILITY 49,305.35 TEMPEST DEVELOPMENT GROUP INC 65,897.59 THURBER ENGINEERING LTD 48,131.62 TROJAN TECHNOLOGIES 347,742.08 US BANK NATIONAL ASSOCIATION VISA 456,534.91 VANCOUVER ISLAND UNIVERSITY 36,844.82 VANCOUVER ISLAND REGIONAL LIBRARY 1,177,916.00 VICTORIA REFRIGERATION LTD 30,950.55 WEST COAST EVERGREEN GARDENING INC 35,612.37 WESTERN INTEGRATED SYSTEMS LTD 245,451.36 WHOLESALE FIRE RESCUE LTD 68,571.33 WORKSAFE BC 194,343.32 YOUNG ANDERSON 101,515.86

TOTAL SUPPLIERS EQUAL AND OVER $25,000 52,787,269.59

OTHER SUPPLIERS UNDER $ 25,000 3,606,544.45

TOTAL PAID $ 56,393,814.04

Prepared under the Financial Information Regulation, Schedule 1, section 7, and the Financial Information Act, section 2

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142 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Schedule of Guarantee and Indemnity Agreements

Information on all financial guarantees or indemnity agreements for this organization is included in Note 14 c) to the Financial Statements.

Prepared under the Financial Information Regulation Schedule 1, section 5

Schedule of Severance Agreements

There were no severance agreements between the District of North Cowichan and its nonunionized employees in 2013.

Prepared under the Financial Information Regulation, Schedule 1, subsection 6 (7)

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143 The Corporation of the District of North Cowichan Statement of Financial Information For the year ended December 31, 2013

Statement of Financial Approval

The undersigned, as authorized by the Financial Information Regulation, Schedule 1, subsection 9(2), approves all statements and schedules included in this Statement of Financial Information, produced under the Financial Information Act .

Mark Frame Jon Lefebure Director of Finance Mayor May 15, 2014 May 15, 2014

Prepared pursuant to the Financial Information Regulation, Schedule 1, Section 9

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144 Report

Date May 20, 2014 File:

To Council From M. Frame, Director of Finance Endorsed:

Subject Request Permission to Write off Property Taxes

Purpose

To request permission from the province to write off property taxes on folio 315-18000.010

Background

The property located on Chemainus Bay, folio 315-18000.010, was a foreshore lease that the District of North Cowichan provided to Chemainus Quay & Marina Complex Ltd to assist with their marina and condo development. The Province cancelled the foreshore lease in 2012 and ownership has subsequently transferred back to the Province. BC Assessment issued a supplementary assessment notice to remove the 2012 taxable assessment. There are outstanding property taxes of $13,916.53 ($5,627.09 – 2011; $5,313.77 – 2010 + interest and penalties).

Discussion

Chemainus Quay & Marina Ltd. no longer operates a business in North Cowichan with ownership of the foreshore lease reverting back to the province. These taxes were sent to a collection agent. In April 2014, Chemainus Quay & Marine Ltd was dissolved for failure to file. As the corporation no longer exists collection proceedings can no longer be taken against Chemainus Quay. In order to write off taxes, Council must submit a resolution to the province requesting permission to write off the uncollectible outstanding taxation revenue as per section 315.3 of the Local Government Act which states:

“The minister may confer on a local government further powers to manage and dispose of assets, including taxation revenue that the minister considers necessary or advisable”. Once permission has been received to write off the taxes, the District can apply to recover the school tax portion of the taxes. This would provide a refund of $4,413.

Recommendation

To request permission from the Province to write off the property taxes for folio 315-18000.010.

Attachment: Corporate Search

7030 Trans-Canada Highway | Box 278 | Duncan, BC V9L 3X4 Ph 250.746.3100 Fax 250.746.3133 www.northcowichan.ca 145

146 Mailing Address: Location: g PO Box 9431 Stn Prov Govt 2nd Floor - 940 Blanshard Street BRITISH Victoria BC V8W 9V3 Victoria BC COLUMBIA www.corporateonline.gov.bc.ca 1 877 526-1526

BC Company Summary For CHEMAINUS QUAY & MARINA COMPLEX LTD.

Date and Time of Search: May 13, 2014 09:15 AM Pacific Time Currency Date: February 07,2014

HISTORICAL - Dissolved for Failure to File on April 07,2014 tncorporation Number: 8C0552758 Name of Gompany: CHEMAINUS QUAY & MARINA COMPLEX LTD. Recognition Date: lncorporated on October 23,1997 In Liquidation: No Last Annual Report Filed: October 23,2011 Receiver: No

Location of the Dissolved Company Records Office has not been filed with this office

DISSOLUTION/RESTORATION I N FORMATION Filing/Event Date of Filing System Dissolution - Failto File April07,2014

REGISTERED OFFICE INFORMATION Mailing Address: Delivery Address: P.O. BOX 168 9834 CROFT STREET CHEMAINUS BC VOR 1KO CHEMAINUS BC VOR 1KO CANADA CANADA

RECORDS OFFICE INFORMATION Mailing Address: Delivery Address: P.O. BOX 168 9834 CROFT STREET CHEMAINUS BC VOR IKO CHEMAINUS BC VOR 1KO CANADA CANADA

DIRECTOR INFORMATION

BC0552758 Page:1 of 2 147 Last Name, First Name, Middle Name: PETRAS, TERRY GRANT Mailing Address: Delivery Address: STREET P.O. BOX 246 9933 ESPLANADE VOR 1KO CHEMAINUS BC VOR 1KO CHEMAINUS BC CANADA CANADA

OFFICER INFORMATION AS AT October 23,2011

Last Name, First Name, Middle Name: PETRAS, TERRY GRANT Office(s) Held: (President) Mailing Address: Delivery Address: STREET P.O. BOX 246 9933 ESPLANADE 1KO CHEMAINUS BC VOR lKO CHEMAINUS BC VOR CANADA CANADA

Last Name, First Name, Middle Name: THORPE-DOUBBLE, STEVEN Office(s) Held: (Secretary) Mailing Address: Delivery Address: ROAD P.O. BOX246 2529 HOWE CHEMAINUS BC VOR 1KO CHEMAINUS BC VOR 1KO CANADA CANADA

8C0552758 Page:2 of 2

148 Report

Date May 26, 2014 File:

To Council From M. Frame, Director of Finance Endorsed: Subject Gas Tax Agreement Renewal

Purpose

The purpose of this report is to provide Council with background regarding renewal of the Gas Tax Agreement.

Background

Gas tax funds are provided by the federal government for infrastructure projects. The funds are administered by UBCM. There are two programs: the Community Works Fund which is available to all local governments allocated based on population, and the Strategic Priorities Fund which is application based. Since 2006, the Municipality has received $5,162,748 in Community Works Funds which has been used to improve our roads infrastructure. From 2010 – 2013, $791,000 a year was budgeted as part of the roads program. In addition, the Municipality received $5,000,000 from the Strategic Priorities Fund to replace the Chemainus River Bridge, and $150,000 for Somenos Marsh Rainwater Management project. In addition, the Municipality has benefited from Gas Tax funding at the regional district level.

Community Works Fund Allocations:

2006 $ 479,804 2014 $1,207,345 2007 319,720 2015 1,207,345 2008 398,964 2016 1,267,713 2009 802,198 2017 1,267,713 2010 790,666 2018 1,327,989 2011 790,580 2012 790,580 2013 790,236

$5,162,748 $6,278,105

Discussion

The renewed Gas Tax Agreement will provide $1,207,344 in 2014, rising to $1,327,989 in 2018. This represents a $416,000 increase compared to the $791,000 budgeted in 2014. Importantly, the renewed program expands eligible infrastructure categories to provide more flexibility for projects that can be funded. Under the previous agreement, funds had to be used for the following capital projects: public transit, local roads and bridges, active transportation, community energy, water, wastewater or solid waste infrastructure that reduce greenhouse gas emissions, or provide cleaner air or cleaner water.

7030 Trans-Canada Highway | Box 278 | Duncan, BC V9L 3X4 Ph 250.746.3100 Fax 250.746.3133 www.northcowichan.ca 149 Page 2

Under the new agreement, eligible categories have been added for Sport infrastructure, Recreational infrastructure, Cultural infrastructure, Tourism infrastructure, Disaster mitigation and Capacity building.

Local governments will be required under the new agreement to work to strengthen asset management during the term of the agreement. One of the reporting outcomes will be progress made on improving local government asset management. This will require local governments to determine sustainable capital spending levels and work towards achieving these levels in infrastructure replacement. North Cowichan will have to work towards an Asset Management Policy and an Asset Management Program.

Options

As with the previous agreement, Gas Tax funds in excess of those budgeted, in the capital expenditure plan can be put into a statutory reserve fund and used, with interest earned, for eligible projects in future years. This will allow the Municipality to set aside funds for future eligible projects.

Council could amend the 2014 Capital Expenditure Program and the 2014-2018 Financial Plan to use the additional gas tax funding on a specific eligible project in 2014.

Recommendation

That Council direct staff to drafts bylaws to (1) amend the Financial Plan to show that North Cowichan will receive an additional $416,000 in Gas Tax funds in 2014, and (2) create a new reserve fund for these surplus Gas Tax funds until needed for future eligible capital projects.

Attachments: Renewed Gas Tax Agreement Gas Tax Agreement Community Works Fund Allocations

7030 Trans-Canada Highway | Box 278 | Duncan, BC V9L 3X4 Ph 250.746.3100 Fax 250.746.3133 www.northcowichan.ca 150 UBCM | News Release: Canada, BC & UBCM Sign Renewed Gas Tax Agreement Page 1 of 3

News Release: Canada, BC & UBCM Sign Renewed Gas Tax Agreement May 22, 2014

FEDERAL FUNDING NOW AVAILABLE FOR BRITISH COLUMBIA COMMUNITIES

Canada's Gas Tax Fund supports local infrastructure priorities throughout British Columbia

May 22, 2014 Vancouver, British Columbia

The Honourable James Moore, Minister of Industry and Minister Responsible for British Columbia, the Honourable Coralee Oakes, Minister of Community, Sport and Cultural Development for British Columbia, and Rhona Martin, President of the Union of British Columbia Municipalities, celebrated today an agreement for the renewed federal Gas Tax Fund that provides predictable, stable funding for public infrastructure across British Columbia.

The federal Gas Tax Fund provides local governments with the flexibility to choose and plan infrastructure projects based on their specific priorities. The renewed agreements will govern the flow of federal funds to each province and territory over the next 10 years, from 2014-15 until 2023-24.

Since 2006, significant improvements have been made to the Gas Tax Fund; it has been extended, doubled, indexed and made permanent. By enshrining these commitments in legislation, provinces, territories and local governments are assured of an ongoing funding stream to address community infrastructure needs and priorities.

Under the renewed Gas Tax Fund, eligible categories have also been expanded, providing local governments with more flexibility than ever before to support local infrastructure.

With this agreement the Government of Canada is ensuring a seamless transition to the New Building Canada Plan, the largest long-term federal commitment to investing in Canada's public infrastructure in our nation's history.

Quick Facts

· Canada's Gas Tax Fund transfer has provided $13 billion to Canadian communities to date. Over the 10-year life of the New Building Canada Plan from 2014 to 2024, the Gas Tax Fund will provide close to $22 billion in funding for local governments.

· In total, the New Building Canada Plan will provide $53 billion in funding to communities across the country over the next decade. For British Columbia, this represents almost $3.9 billion in dedicated federal funding, including almost $1.1 billion under the New Building Canada Fund and an estimated $2.76 billion under the federal Gas Tax Fund*. British Columbia also stands to benefit from the Government of Canada's following national funding programs:

◦ $4 billion available across the country for projects of national significance, ◦ $1.25 billion in additional funding available for public-private partnerships (P3) projects, ◦ $10.4 billion via the GST Rebate, which provides local governments across the country with additional resources to address their infrastructure priorities.

151 http://www.ubcm.ca/EN/meta/news/news-archive/2014-archive/news-release-canada-bc-u... 5/26/2014 UBCM | News Release: Canada, BC & UBCM Sign Renewed Gas Tax Agreement Page 2 of 3

· Between 2006 and 2012, British Columbia's local governments benefitted from funding from the Gas Tax Fund Agreement to support nearly 2000 local infrastructure projects. For example, during the last construction season, the federal Gas Tax Fund supported:

◦ $28.5 million to refurbish 114 SkyTrain TransLink vehicles in Vancouver; ◦ $1.68 million for an expanded, renovated recycling Centre in Ladysmith, Cowichan Valley Regional District; ◦ $1.2 million for green energy projects in Fort St. John; and ◦ $600,000 for roundabout construction on Summerland's main traffic corridor.

· Eligible investment categories under this Fund include: drinking water; wastewater; solid waste; public transit; community energy systems; local roads and bridges; capacity building; disaster mitigation; broadband connectivity; highways; short-line rail; short-sea shipping; brownfield redevelopment; regional and local airports; and projects supporting culture, tourism, sport and recreation.

· A funding table is now available for all local governments in British Columbia receiving allocated funds: http://ow.ly/x9xF3

· The Union of British Columbia Municipalities (UBCM) administers the Gas Tax Fund in BC, in collaboration with Canada and British Columbia.

Quotes

"Our Government's commitment to communities has never been stronger. Through our unprecedented financial support for public infrastructure, we are ensuring communities across the country enjoy a high standard of living, new economic opportunities, and a safe, healthy environment.

We are proud to support economic growth across British Columbia by supporting your infrastructure priorities through the federal Gas Tax Fund. We are very pleased to have reached an agreement with British Columbia and the Union of British Columbia Municipalities, which will make this important funding available and allow communities to address their specific infrastructure priorities."

The Honourable James Moore,

Minister of Industry and Minister Responsible for British Columbia on behalf of the Honourable Denis Lebel, Minister of Infrastructure, Communities, and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec

"Renewing the Gas Tax Agreement sustains support for key local infrastructure projects in British Columbia over the next ten years. Achieved by a partnership between the Government of British Columbia, the Union of British Columbia Municipalities and the Government of Canada, the agreement provides significant funding to help B.C. communities continue to prosper as great places to live, work, invest, play and visit."

The Honourable Coralee Oakes

Minister of Community, Sport and Cultural Development

"Community infrastructure is a cornerstone for the quality of life in British Columbia. By transferring $2.76 billion to local governments over the next decade, the federal Gas Tax Fund is making a significant contribution to the core infrastructure in our communities. The Gas Tax Fund has already supported more than 2000 local projects in BC. This new agreement will help build thousands more."

Rhona Martin

152 http://www.ubcm.ca/EN/meta/news/news-archive/2014-archive/news-release-canada-bc-u... 5/26/2014 UBCM | News Release: Canada, BC & UBCM Sign Renewed Gas Tax Agreement Page 3 of 3

UBCM President

Associated Links

Learn more about the federal Gas Tax Fund: www.infrastructure.gc.ca/plan/gtf-fte-eng.html.

Read the new Canada-British Columbia federal Gas Tax Fund agreement: www.infrastructure.gc.ca/prog/agreements- ententes/gtf-fte/2014-bc-eng.html

- 30 -

Contacts

Vincent Rabault Press Secretary Office of the Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec 613-943-1838

Gillian Rhodes Communications Manager Ministry of Community, Sport and Cultural Development 250-356-6334

Paul Taylor Director of Communications UBCM 250-356-2938

Infrastructure Canada 613-960-9251 Toll free: 1-877-250-7154 [email protected]

Follow us on Twitter at @INFC_eng

*NOTE: GTF funding by jurisdiction for the first five years (2014-2019) is based on 2011 Census data. GTF funding for 2019-2024 will be based on 2016 Census data. For illustrative purposes, Census 2011 data has been used for all 10 years. Due to the indexation of the GTF, funding for 2019-2024 is expected to be at least equal to GTF funding for the first five years.

View the News Release for Federal Funding Now Available For British Columbia Communities

Follow Us On

• Twitter: @ubcm

Copyright © 2012 UBCM. All rights reserved.

153 http://www.ubcm.ca/EN/meta/news/news-archive/2014-archive/news-release-canada-bc-u... 5/26/2014

154 Union of BC Municipalities Gas Tax Agreement Community Works Fund Allocations Year 1 Year 5

Projected Projected Projected Projected Year 1 Recipient Name Year 2 Year 3 Year 4 Year 5 2014/15 2015/16 2016/17 2017/18 2018/19

100 Mile House$ 125,771.59 $ 125,771.59 $ 132,060.22 $ 132,060.22 $ 138,459.69 Abbotsford$ 5,413,350.87 $ 5,413,350.87 $ 5,684,021.83 $ 132,060.22 $ 5,953,815.88 AlberniClayoquot$ 444,325.63 $ 444,325.63 $ 466,542.16 $ 466,542.16 $ 488,810.03 Alert Bay$ 67,878.24 $ 67,878.24 $ 71,272.16 $ 71,272.16 $ 74,787.74 Anmore$ 55,972.13 $ 55,972.13 $ 58,770.74 $ 58,770.74 $ 61,694.23 Armstrong$ 243,446.55 $ 243,446.55 $ 255,619.00 $ 255,619.00 $ 267,880.32 Ashcroft$ 115,406.23 $ 115,406.23 $ 121,176.58 $ 121,176.58 $ 127,059.72 Barriere$ 121,231.72 $ 121,231.72 $ 127,293.35 $ 127,293.35 $ 133,466.68 Belcarra$ 51,838.46 $ 51,838.46 $ 54,430.38 $ 54,430.38 $ 57,147.27 Bowen Island$ 59,711.85 $ 59,711.85 $ 62,697.45 $ 62,697.45 $ 65,807.84 BulkleyNechako$ 838,932.49 $ 838,932.49 $ 880,879.62 $ 880,879.62 $ 922,804.37 Burnaby$ 687,230.84 $ 687,230.84 $ 721,592.76 $ 721,592.76 $ 756,066.42 Burns Lake$ 131,516.73 $ 131,516.73 $ 138,092.62 $ 138,092.62 $ 144,778.28 Cache Creek$ 91,782.85 $ 91,782.85 $ 96,372.02 $ 96,372.02 $ 101,078.38 Campbell River$ 1,302,922.99 $ 1,302,922.99 $ 1,368,069.94 $ 1,368,069.94 $ 1,433,107.83 Canal Flats$ 78,725.71 $ 78,725.71 $ 82,662.01 $ 82,662.01 $ 86,717.95 Capital$ 1,043,748.80 $ 1,043,748.80 $ 1,095,936.87 $ 1,095,936.87 $ 1,148,064.31 Cariboo$ 1,633,811.01 $ 1,633,811.01 $ 1,715,502.56 $ 1,715,502.56 $ 1,797,023.26 Castlegar$ 364,014.18 $ 364,014.18 $ 382,215.08 $ 382,215.08 $ 400,482.33 Central Coast$ 178,803.67 $ 178,803.67 $ 187,743.93 $ 187,743.93 $ 196,785.13 Central Kootenay$ 1,269,737.76 $ 1,269,737.76 $ 1,333,225.43 $ 1,333,225.43 $ 1,396,610.24 Central Okanagan$ 641,669.24 $ 641,669.24 $ 673,753.08 $ 673,753.08 $ 705,851.39 Central Saanich$ 690,241.80 $ 690,241.80 $ 724,754.30 $ 724,754.30 $ 759,272.19 Chase$ 150,238.66 $ 150,238.66 $ 157,750.66 $ 157,750.66 $ 165,368.93 Chetwynd$ 155,863.27 $ 155,863.27 $ 163,656.51 $ 163,656.51 $ 171,554.96 Chilliwack$ 3,181,142.37 $ 3,181,142.37 $ 3,340,201.48 $ 3,340,201.48 $ 3,498,800.68 Clearwater$ 143,649.83 $ 143,649.83 $ 150,832.38 $ 150,832.38 $ 158,122.43 Clinton$ 75,551.82 $ 75,551.82 $ 79,329.43 $ 79,329.43 $ 83,227.26 Coldstream$ 464,373.36 $ 464,373.36 $ 487,592.30 $ 487,592.30 $ 510,858.82 Columbia Shuswap$ 844,155.35 $ 844,155.35 $ 886,363.62 $ 886,363.62 $ 928,548.54 Colwood$ 696,549.40 $ 696,549.40 $ 731,377.28 $ 731,377.28 $ 766,209.39 Comox$ 597,475.84 $ 597,475.84 $ 627,349.98 $ 627,349.98 $ 657,246.85 Comox Valley$ 950,500.73 $ 950,500.73 $ 998,026.34 $ 998,026.34 $ 1,045,508.73 Coquitlam$ 410,999.84 $ 410,999.84 $ 431,550.05 $ 431,550.05 $ 452,217.74 Courtenay$ 1,018,196.98 $ 1,018,196.98 $ 1,069,107.45 $ 1,069,107.45 $ 1,119,962.05 Cowichan Valley$ 1,484,196.27 $ 1,484,196.27 $ 1,558,407.00 $ 1,558,407.00 $ 1,632,474.81 Cranbrook$ 826,156.58 $ 826,156.58 $ 867,464.91 $ 867,464.91 $ 908,753.24 Creston$ 263,172.88 $ 263,172.88 $ 276,331.66 $ 276,331.66 $ 289,575.62 Cumberland$ 186,517.42 $ 186,517.42 $ 195,843.38 $ 195,843.38 $ 205,268.84 Dawson Creek$ 515,356.47 $ 515,356.47 $ 541,124.59 $ 541,124.59 $ 566,930.78 Delta$ 335,083.57 $ 335,083.57 $ 351,837.91 $ 351,837.91 $ 368,711.33 Duncan$ 248,147.12 $ 248,147.12 $ 260,554.61 $ 260,554.61 $ 273,050.07 East Kootenay$ 677,907.82 $ 677,907.82 $ 711,803.61 $ 711,803.61 $ 745,707.11 Elkford$ 151,363.58 $ 151,363.58 $ 158,931.83 $ 158,931.83 $ 166,606.14 Enderby$ 167,795.49 $ 167,795.49 $ 176,185.34 $ 176,185.34 $ 184,678.19 Esquimalt$ 701,209.80 $ 701,209.80 $ 736,270.70 $ 736,270.70 $ 771,334.96 Fernie$ 228,702.03 $ 228,702.03 $ 240,137.24 $ 240,137.24 $ 251,664.08 Fort St. James$ 117,937.30 $ 117,937.30 $ 123,834.21 $ 123,834.21 $ 129,843.43 Fort St. John$ 797,631.75 $ 797,631.75 $ 837,513.82 $ 837,513.82 $ 877,381.22 FraserFort George$ 644,280.67 $ 644,280.67 $ 676,495.08 $ 676,495.08 $ 708,723.47 Fraser Lake$ 96,885.18 $ 96,885.18 $ 101,729.47 $ 101,729.47 $ 106,690.00 Fraser Valley$ 718,244.34 $ 718,244.34 $ 754,156.99 $ 754,156.99 $ 790,069.80 Fruitvale$ 130,994.44 $ 130,994.44 $ 137,544.22 $ 137,544.22 $ 144,203.86 Gibsons$ 228,260.09 $ 228,260.09 $ 239,673.21 $ 239,673.21 $ 251,178.03 Gold River$ 100,902.76 $ 100,902.76 $ 105,947.93 $ 105,947.93 $ 111,108.59 Golden$ 198,690.69 $ 198,690.69 $ 208,625.32 $ 208,625.32 $ 218,657.18 Grand Forks$ 210,100.63 $ 210,100.63 $ 220,605.76 $ 220,605.76 $ 231,205.98 Granisle$ 62,173.27 $ 62,173.27 $ 65,281.94 $ 65,281.94 $ 68,513.34 Greenwood$ 78,444.48 $ 78,444.48 $ 82,366.72 $ 82,366.72 $ 86,408.65 GVRD$ 110,317.94 $ 110,317.94 $ 115,833.88 $ 115,833.88 $ 121,473.55 Harrison Hot Springs$ 108,978.10 $ 108,978.10 $ 114,427.04 $ 114,427.04 $ 119,989.96 Hazelton$ 60,847.47 $ 60,847.47 $ 63,889.85 $ 63,889.85 $ 67,055.20 Highlands$ 135,172.73 $ 135,172.73 $ 141,931.42 $ 141,931.42 $ 148,799.20 Hope$ 289,809.44 $ 289,809.44 $ 304,300.07 $ 304,300.07 $ 318,870.90 Houston$ 176,433.29 $ 176,433.29 $ 185,255.04 $ 185,255.04 $ 194,178.16 Hudson's Hope$ 88,970.54 $ 88,970.54 $ 93,419.09 $ 93,419.09 $ 97,985.37 CWF Payment information is based on current census data. Boundary changes, incorporations of new local governments may also vary the available funding in subsequent years. Funds are subject to Federal transfer of Gas Tax. Page 1 of 3 155 Union of BC Municipalities Gas Tax Agreement Community Works Fund Allocations Year 1 Year 5

Projected Projected Projected Projected Year 1 Recipient Name Year 2 Year 3 Year 4 Year 5 2014/15 2015/16 2016/17 2017/18 2018/19

Invermere$ 168,719.54 $ 168,719.54 $ 177,155.59 $ 177,155.59 $ 185,694.46 Jumbo$ 50,000.00 $ 50,000.00 $ 52,500.00 $ 52,500.00 $ 55,125.00 Kamloops$ 3,492,183.54 $ 3,492,183.54 $ 3,666,794.91 $ 3,666,794.91 $ 3,840,888.26 Kaslo $ 91,220.39 $ 91,220.39 $ 95,781.43 $ 95,781.43 $ 100,459.78 Kelowna$ 4,763,105.29 $ 4,763,105.29 $ 5,001,263.56 $ 5,001,263.56 $ 5,238,666.39 Kent$ 277,555.82 $ 277,555.82 $ 291,433.76 $ 291,433.76 $ 305,394.18 Keremeos$ 103,433.83 $ 103,433.83 $ 108,605.56 $ 108,605.56 $ 113,892.30 Kimberley$ 317,249.53 $ 317,249.53 $ 333,112.17 $ 333,112.17 $ 349,049.90 Kitimat$ 384,865.42 $ 384,865.42 $ 404,108.91 $ 404,108.91 $ 423,414.84 KitimatStikine$ 697,232.39 $ 697,232.39 $ 732,094.42 $ 732,094.42 $ 766,960.55 Kootenay Boundary$ 443,240.88 $ 443,240.88 $ 465,403.18 $ 465,403.18 $ 487,617.01 Ladysmith$ 368,232.64 $ 368,232.64 $ 386,644.47 $ 386,644.47 $ 405,121.86 Lake Country$ 520,378.45 $ 520,378.45 $ 546,397.67 $ 546,397.67 $ 572,454.03 Lake Cowichan$ 169,482.88 $ 169,482.88 $ 177,957.10 $ 177,957.10 $ 186,534.00 Langford$ 1,224,258.74 $ 1,224,258.74 $ 1,285,472.43 $ 1,285,472.43 $ 1,346,591.75 Langley, Township$ 347,398.94 $ 347,398.94 $ 364,769.07 $ 364,769.07 $ 382,258.00 Langley, City$ 121,599.90 $ 121,599.90 $ 127,679.94 $ 127,679.94 $ 133,883.49 Lantzville$ 194,673.11 $ 194,673.11 $ 204,406.86 $ 204,406.86 $ 214,238.58 Lillooet$ 143,288.24 $ 143,288.24 $ 150,452.72 $ 150,452.72 $ 157,724.76 Lions Bay$ 53,762.56 $ 53,762.56 $ 56,450.69 $ 56,450.69 $ 59,263.74 Logan Lake$ 133,284.47 $ 133,284.47 $ 139,948.74 $ 139,948.74 $ 146,722.46 Lumby$ 119,544.34 $ 119,544.34 $ 125,521.60 $ 125,521.60 $ 131,610.87 Lytton$ 59,160.09 $ 59,160.09 $ 62,118.10 $ 62,118.10 $ 65,199.40 Mackenzie$ 190,896.59 $ 190,896.59 $ 200,441.50 $ 200,441.50 $ 210,085.10 Maple Ridge$ 267,109.19 $ 267,109.19 $ 280,464.78 $ 280,464.78 $ 293,940.85 Masset$ 85,515.42 $ 85,515.42 $ 89,791.21 $ 89,791.21 $ 94,185.37 McBride$ 73,543.03 $ 73,543.03 $ 77,220.19 $ 77,220.19 $ 81,017.96 Merritt$ 335,770.58 $ 335,770.58 $ 352,559.29 $ 352,559.29 $ 369,419.62 Metchosin$ 242,964.44 $ 242,964.44 $ 255,112.79 $ 255,112.79 $ 267,350.09 Midway$ 77,078.50 $ 77,078.50 $ 80,932.44 $ 80,932.44 $ 84,906.33 Mission$ 1,513,444.26 $ 1,513,444.26 $ 1,589,117.41 $ 1,589,117.41 $ 1,664,642.17 Montrose$ 91,381.09 $ 91,381.09 $ 95,950.17 $ 95,950.17 $ 100,636.52 Mount Waddington$ 200,378.08 $ 200,378.08 $ 210,397.08 $ 210,397.08 $ 220,512.99 Nakusp$ 113,035.85 $ 113,035.85 $ 118,687.69 $ 118,687.69 $ 124,452.75 Nanaimo, City$ 3,417,135.11 $ 3,417,135.11 $ 3,587,994.01 $ 3,587,994.01 $ 3,758,348.91 Nanaimo, Regional District$ 1,596,728.73 $ 1,596,728.73 $ 1,676,566.15 $ 1,676,566.15 $ 1,756,239.63 Nelson$ 460,998.59 $ 460,998.59 $ 484,048.79 $ 484,048.79 $ 507,147.20 New Denver$ 70,248.61 $ 70,248.61 $ 73,761.05 $ 73,761.05 $ 77,394.72 New Hazelton$ 76,757.09 $ 76,757.09 $ 80,594.96 $ 80,594.96 $ 84,552.84 New Westminster$ 238,344.77 $ 238,344.77 $ 250,262.12 $ 250,262.12 $ 262,300.55 North Cowichan$ 1,207,344.72 $ 1,207,344.72 $ 1,267,712.70 $ 1,267,712.70 $ 1,327,989.47 North Okanagan$ 782,806.88 $ 782,806.88 $ 821,947.69 $ 821,947.69 $ 861,076.61 North Saanich$ 495,509.62 $ 495,509.62 $ 520,285.38 $ 520,285.38 $ 545,102.93 North Vancouver, District$ 290,974.88 $ 290,974.88 $ 305,523.76 $ 305,523.76 $ 320,192.63 North Vancouver, City$ 187,587.37 $ 187,587.37 $ 196,966.82 $ 196,966.82 $ 206,468.41 Northern Rockies$ 274,100.70 $ 274,100.70 $ 287,805.88 $ 287,805.88 $ 301,594.19 Oak Bay$ 773,767.32 $ 773,767.32 $ 812,456.15 $ 812,456.15 $ 851,134.77 OkanaganSimilkameen$ 968,499.50 $ 968,499.50 $ 1,016,925.06 $ 1,016,925.06 $ 1,065,304.04 Oliver$ 243,808.13 $ 243,808.13 $ 255,998.67 $ 255,998.67 $ 268,277.99 Osoyoos$ 244,651.83 $ 244,651.83 $ 256,884.54 $ 256,884.54 $ 269,205.90 Parksville$ 531,185.74 $ 531,185.74 $ 557,745.34 $ 557,745.34 $ 584,340.04 Peace River$ 912,333.71 $ 912,333.71 $ 957,950.94 $ 957,950.94 $ 1,003,532.09 Peachland$ 258,914.24 $ 258,914.24 $ 271,860.09 $ 271,860.09 $ 284,891.91 Pemberton$ 145,176.51 $ 145,176.51 $ 152,435.39 $ 152,435.39 $ 159,801.50 Penticton$ 1,370,860.29 $ 1,370,860.29 $ 1,439,404.15 $ 1,439,404.15 $ 1,507,826.26 Pitt Meadows$ 100,631.79 $ 100,631.79 $ 105,663.41 $ 105,663.41 $ 110,818.97 Port Alberni$ 762,839.50 $ 762,839.50 $ 800,981.93 $ 800,981.93 $ 839,116.19 Port Alice$ 82,341.53 $ 82,341.53 $ 86,458.63 $ 86,458.63 $ 90,694.68 Port Clements$ 65,186.46 $ 65,186.46 $ 68,445.79 $ 68,445.79 $ 71,827.29 Port Coquitlam$ 210,842.14 $ 210,842.14 $ 221,384.34 $ 221,384.34 $ 232,048.19 Port Edward$ 71,855.64 $ 71,855.64 $ 75,448.44 $ 75,448.44 $ 79,162.15 Port Hardy$ 211,024.67 $ 211,024.67 $ 221,576.01 $ 221,576.01 $ 232,222.26 Port McNeill$ 150,640.42 $ 150,640.42 $ 158,172.50 $ 158,172.50 $ 165,810.79 Port Moody$ 144,135.27 $ 144,135.27 $ 151,342.09 $ 151,342.09 $ 158,671.95 Pouce Coupe$ 79,649.75 $ 79,649.75 $ 83,632.26 $ 83,632.26 $ 87,734.23 Powell River, City$ 578,914.61 $ 578,914.61 $ 607,860.68 $ 607,860.68 $ 636,832.94 CWF Payment information is based on current census data. Boundary changes, incorporations of new local governments may also vary the available funding in subsequent years. Funds are subject to Federal transfer of Gas Tax. Page 2 of 3 156 Union of BC Municipalities Gas Tax Agreement Community Works Fund Allocations Year 1 Year 5

Projected Projected Projected Projected Year 1 Recipient Name Year 2 Year 3 Year 4 Year 5 2014/15 2015/16 2016/17 2017/18 2018/19

Powell River, Regional District$ 319,941.31 $ 319,941.31 $ 335,938.54 $ 335,938.54 $ 352,010.35 Prince George$ 2,941,614.16 $ 2,941,614.16 $ 3,088,696.71 $ 3,088,696.71 $ 3,235,364.09 Prince Rupert$ 552,519.10 $ 552,519.10 $ 580,145.38 $ 580,145.38 $ 607,802.78 Princeton$ 159,438.92 $ 159,438.92 $ 167,410.94 $ 167,410.94 $ 175,487.51 Qualicum Beach$ 399,007.31 $ 399,007.31 $ 418,957.90 $ 418,957.90 $ 438,968.29 Queen Charlotte$ 87,925.97 $ 87,925.97 $ 92,322.29 $ 92,322.29 $ 96,836.53 Quesnel$ 452,039.39 $ 452,039.39 $ 474,641.61 $ 474,641.61 $ 497,293.74 Radium Hot Springs$ 81,216.61 $ 81,216.61 $ 85,277.46 $ 85,277.46 $ 89,457.48 Revelstoke$ 336,815.15 $ 336,815.15 $ 353,656.09 $ 353,656.09 $ 370,568.45 Richmond$ 593,752.16 $ 593,752.16 $ 623,440.09 $ 623,440.09 $ 653,241.71 Rossland$ 192,865.20 $ 192,865.20 $ 202,508.55 $ 202,508.55 $ 212,250.21 Saanich$ 4,459,376.12 $ 4,459,376.12 $ 4,682,347.74 $ 4,682,347.74 $ 4,904,620.66 Salmo$ 95,760.25 $ 95,760.25 $ 100,548.30 $ 100,548.30 $ 105,452.79 Salmon Arm$ 751,630.45 $ 751,630.45 $ 789,212.41 $ 789,212.41 $ 826,788.32 Sayward$ 62,735.73 $ 62,735.73 $ 65,872.53 $ 65,872.53 $ 69,131.94 Sechelt$ 423,273.50 $ 423,273.50 $ 444,437.42 $ 444,437.42 $ 465,656.60 Sechelt Indian$ 82,903.99 $ 82,903.99 $ 87,049.21 $ 87,049.21 $ 91,313.29 Sicamous$ 148,069.17 $ 148,069.17 $ 155,472.69 $ 155,472.69 $ 162,982.89 Sidney$ 499,085.27 $ 499,085.27 $ 524,039.82 $ 524,039.82 $ 549,035.48 Silverton$ 57,834.28 $ 57,834.28 $ 60,726.00 $ 60,726.00 $ 63,741.26 SkeenaQueen Charlotte$ 191,659.93 $ 191,659.93 $ 201,243.01 $ 201,243.01 $ 210,924.64 Slocan$ 61,892.04 $ 61,892.04 $ 64,986.65 $ 64,986.65 $ 68,204.04 Smithers$ 267,110.11 $ 267,110.11 $ 280,465.75 $ 280,465.75 $ 293,905.84 Sooke$ 509,410.45 $ 509,410.45 $ 534,881.27 $ 534,881.27 $ 560,391.26 Spallumcheen$ 253,088.75 $ 253,088.75 $ 265,743.32 $ 265,743.32 $ 278,484.94 Sparwood$ 197,324.72 $ 197,324.72 $ 207,191.05 $ 207,191.05 $ 217,154.85 Squamish$ 739,336.65 $ 739,336.65 $ 776,303.92 $ 776,303.92 $ 813,267.42 SquamishLillooet$ 311,062.45 $ 311,062.45 $ 326,615.74 $ 326,615.74 $ 342,245.26 Stewart$ 69,846.85 $ 69,846.85 $ 73,339.21 $ 73,339.21 $ 76,952.86 Strathcona$ 453,405.37 $ 453,405.37 $ 476,075.89 $ 476,075.89 $ 498,796.06 Summerland$ 503,183.20 $ 503,183.20 $ 528,342.65 $ 528,342.65 $ 553,542.44 Sun Peaks$ 64,905.23 $ 64,905.23 $ 68,150.50 $ 68,150.50 $ 71,517.98 Sunshine Coast$ 616,237.95 $ 616,237.95 $ 647,050.20 $ 647,050.20 $ 677,881.69 Surrey$ 1,386,737.98 $ 1,386,737.98 $ 1,456,075.68 $ 1,456,075.68 $ 1,525,510.54 Tahsis$ 62,695.56 $ 62,695.56 $ 65,830.34 $ 65,830.34 $ 69,087.76 Taylor$ 105,161.39 $ 105,161.39 $ 110,419.50 $ 110,419.50 $ 115,792.30 Telkwa$ 104,237.35 $ 104,237.35 $ 109,449.25 $ 109,449.25 $ 114,776.02 Terrace$ 511,459.42 $ 511,459.42 $ 537,032.68 $ 537,032.68 $ 562,644.75 ThompsonNicola$ 978,342.57 $ 978,342.57 $ 1,027,260.29 $ 1,027,260.29 $ 1,076,129.59 Tofino$ 125,369.83 $ 125,369.83 $ 131,638.37 $ 131,638.37 $ 138,017.83 Trail$ 358,590.44 $ 358,590.44 $ 376,520.16 $ 376,520.16 $ 394,517.23 Tumbler Ridge$ 158,876.46 $ 158,876.46 $ 166,820.35 $ 166,820.35 $ 174,868.91 Ucluelet$ 115,366.05 $ 115,366.05 $ 121,134.40 $ 121,134.40 $ 127,015.53 Valemount$ 90,979.33 $ 90,979.33 $ 95,528.32 $ 95,528.32 $ 100,194.66 Vancouver$ 1,772,845.32 $ 1,772,845.32 $ 1,861,488.62 $ 1,861,488.62 $ 1,950,221.04 Vanderhoof$ 229,987.65 $ 229,987.65 $ 241,487.15 $ 241,487.15 $ 253,078.03 Vernon$ 1,582,707.37 $ 1,582,707.37 $ 1,661,843.71 $ 1,661,843.71 $ 1,740,818.74 Victoria$ 3,264,748.24 $ 3,264,748.24 $ 3,427,987.70 $ 3,427,987.70 $ 3,590,751.63 View Royal$ 426,889.33 $ 426,889.33 $ 448,234.03 $ 448,234.03 $ 469,633.33 Warfield$ 118,298.89 $ 118,298.89 $ 124,213.87 $ 124,213.87 $ 130,241.10 Wells $ 59,843.07 $ 59,843.07 $ 62,835.23 $ 62,835.23 $ 65,950.56 West Kelowna$ 1,291,111.30 $ 1,291,111.30 $ 1,355,667.65 $ 1,355,667.65 $ 1,420,117.16 West Vancouver$ 171,880.55 $ 171,880.55 $ 180,474.65 $ 180,474.65 $ 189,191.22 Whistler$ 444,687.21 $ 444,687.21 $ 466,921.83 $ 466,921.83 $ 489,207.71 White Rock$ 105,207.95 $ 105,207.95 $ 110,468.38 $ 110,468.38 $ 115,852.66 Williams Lake$ 485,184.44 $ 485,184.44 $ 509,443.93 $ 509,443.93 $ 533,747.14 Zeballos$ 55,021.98 $ 55,021.98 $ 57,773.08 $ 57,773.08 $ 60,648.24

CWF Payment information is based on current census data. Boundary changes, incorporations of new local governments may also vary the available funding in subsequent years. Funds are subject to Federal transfer of Gas Tax. Page 3 of 3 157

158 159

160 Report

Date May 27, 2014 File: 5620-50 WELL EA To Council From John MacKay, P.Eng., Director of Engineering and Operations Endorsed: Subject Chemainus Well Water Supply - Environmental Assessment Certificate Amendment

Purpose

The purpose of this report is to recommend that Council apply to amend BC Environmental Assessment Certificate #W09-01 to authorize use of the Chemainus Wells year round.

Background

The BC Environmental Assessment Certificate allows the Municipality to operate Production Wells #2 and #3 between October 15 and June 15 each year, subject to not operating more than one well at any one time and operating each well below a flow of 75 litres per second. During June 15 to October 15, the wells are shut down and water to the community of Chemainus is supplied from the Banon Creek and Holyoak Lake surface water supply. In the Chemainus Water System Permit, the Vancouver Island Health Authority (VIHA) has required that by January 1, 2017, the community of Chemainus be supplied water by the wells year round, or a combination of well supply for 8 months and the Banon Creek supply for 4 months with the Banon Creek surface supply to be treated using ultra violet (UV) disinfection and/or filtration.

The Municipality has been monitoring Chemainus River summer flows and year round ground water levels in a comprehensive monitoring program since 2005. It has also been reviewing the concept of expanding the wells use to year round and, if necessary, supplementing Chemainus River flows in the summer months using water stored at Holyoak Lake which has been stored for the Banon Creek supply.

During the Environmental Assessment for the wells which took place between 2002 and 2009, a number of summer well pumping tests were undertaken to determine if the wells would impact the ground water or river flows. In September 2005, during a well pump test over an extended period, a 9 mm drop was recorded in a localized area of the river just downstream of the wells. It was undetermined if this 9 mm drop was related to the well pumping or natural causes. Pump testing, at that time, was at a flow rate of 131 litres per second, which is about twice what is permitted now with the Environmental Assessment Certificate which limits flow to less than 75 litres per second. It is unlikely that well pumping at less than 75 litres per second will impact summer Chemainus River flows, however, the Municipality’s proposal is to release water from Holyoak Lake and Banon Creek to the Chemainus River during the June 15 to October 15 period to increase river flows as part of the mitigation plan.

It is proposed to make the Amendment Application to the BC Environmental Assessment Office in late June 2014. The amendment process will consider the potential environmental, economic, social, heritage and health effects that may occur from the proposed operational change. Valued components selected and assessed as part of the original application will be re-assessed to:

7030 Trans-Canada Highway | Box 278 | Duncan, BC V9L 3X4 Ph 250.746.3100 Fax 250.746.3133 www.northcowichan.ca 161 Page 2

1. identify and evaluate the key potential effects that may interact with the proposed operation changes, 2. evaluate the effectiveness of prescribed mitigation measures in minimizing potential project effects in light of proposed project changes, and 3. evaluate whether conclusions drawn in the original application, with respect to residual effects, characterization of residual effects, and determination of significance are expected to change.

The Amendment Application will also describe consultation undertaken with the public, government agencies and First Nations prior to amendment submission including a description of any planned or ongoing consultation. The Amendment Application will include any issues raised during consultation.

It is expected that the amendment process will cost in the order of $200,000 and take at least a year, although as experienced with the original well application it is difficult to accurately quantify the costs and time required to complete this Amendment Application.

Recommendation

That Council authorize staff to apply for an amendment to the Chemainus Wells BC Environmental Assessment Certificate #W09-01 to authorize use of the Chemainus Wells year round.

7030 Trans-Canada Highway | Box 278 | Duncan, BC V9L 3X4 Ph 250.746.3100 Fax 250.746.3133 www.northcowichan.ca 162 175ingram Slree! Office, 250.746.2500 Duncan, BC V9L 1N8 Fax: 250.746.2513 www.cvrd.bc.ca Toll Free: I.8D0.6S5.3955

May 23, 2014 File No: Bylaw No. 3816

RECEIVED District Municipality of North Cowichan PO Box 287 MAY 2 7 20U DUNCAN BCV9L 3X4 DISTR.CT OF r^ m , * k *n ii I NORTH COWiCHAM Dear Mayor Lefebure and Council: " —

Re: "CVRD Bylaw No. 3816 - Cowichan Valley Hospice Society Annual Financial Contribution Service Establishment Bylaw, 2014"

The Cowichan Valley Regional District has provided a regional grant-in-aid to the Cowichan Valley Hospice Society for the past three years. The Society received $3,000 in 2012, $50,000 in 2013 and $48,555 in 2014. The CVRD's Grants-in-Aid subcommittee has reviewed the issue of organizations receiving a regional grant-in-aid in multiple years and considered making some recommendations.

At the May 14, 2014 Board meeting, Director Lefebure provided a report from the Grants-ln-Aid subcommittee and recommended that an annual financial contribution service be established for the Cowichan Valley Hospice Society. The Board subsequently passed the following resolution: "that an Annual Financial Contribution Service be established, over the whole of the Cowichan Valley Regional District, for the Cowichan Valley Hospice Society, witha maximum annual requisition limit of $62,500".

As a result of the Board's resolution, "CVRD Bylaw No. 3816 - Cowichan Valley Hospice Society Annual Financial Contribution Service Establishment Bylaw, 2014" has been drafted and a copy is attached. All 13 jurisdictions in the CVRD would be partners in the new service and, based on current assessments, the cost per residential property would be $0.41per $100,000 assessment. The new service would provide an annual financial contribution to assist the Cowichan Valley Hospice Society with costs associated with providing hospice palliative

care.

In order to submit CVRD Bylaw No. 3816 to the province for approval, written consent from the service participants must be obtained. Accordingly, it is requested that the following resolution be considered and adopted byCouncil at its earliest convenience.

COWICHAN VALLEY REGIONAL DISTRICT 163 That the District Municipality of North Cowichan consents to the adoption of "CVRD Bylaw No. 3816 - Cowichan Valley Hospice Society Annual Financial Contribution Service Establishment Bylaw, 2014".

Following the receipt of provincial approval, public approval for adoption of this bylaw will be required. Please contact this office should you have any questions regarding this process.

Sincerely,

rry, rate Secretary

Attachment

164 CVRD

Cowichan Valley Regional District

Bylaw No. 3816

A Bylaw to Establish a Service to Provide an Annual Financial Contribution to the Cowichan Valley Hospice Society

WHEREAS pursuant to Sections 796 and800 of the Local Government Act, a Regional District may, by bylaw, establish and operate any service that the Board considers necessary or desirable for all or partof the Regional District;

AND WHEREAS the Board of the Cowichan Valley Regional District wishes to establish a service for the purpose of assisting with costs associated with providing hospice palliative care;

AND WHEREAS the Board of the Cowichan Valley Regional District has obtained the approval of the service area electors in accordance with the Local Government Act and the Community Charter,

NOW THEREFORE the Board of Directors of the Cowichan Valley Regional District, in open meeting assembled, enacts as follows:

1 CITATION

This bylaw may be cited for all purposes as "CVRD Bylaw No. 3816 - Cowichan Valley Hospice Society Annual Financial Contribution Service Establishment Bylaw, 2014".

2. SERVICE BEING ESTABLISHED

The service being established under the authority of this bylaw is a service for the purpose of providing an annual financial contribution to assist the Cowichan Valley Hospice Society with costs associated with providing hospice palliative care. The service shall be known as the "Cowichan Valley Hospice Society Annual Financial Contribution Service".

3. SERVICE AREA BOUNDARIES

The boundaries of the service area are the boundaries of the whole of the Cowichan Valley Regional District.

4. PARTICIPATING AREA

The participating area for this service is the whole of the Cowichan Valley Regional District comprised of the City of Duncan; District Municipality of North Cowichan; Town of Lake Cowichan; Town of Ladysmith; and Electoral Areas: A - Mill Bay/Malahat; B - Shawnigan Lake; C - Cobble Hill; D - Cowichan Bay; E - Cowichan Station/Sahtlam/Glenora; F -

165 CVRD Bylaw No. 3816 Page 2

Cowichan Lake South/Skutz Falls; G - Saltair/Gulf Islands; H- North Oyster/Diamond; and I - Youbou/Meade Creek.

5. METHOD OF COST RECOVERY

The annual cost of providing this service shall be recovered by one or more of the following:

a) property value taxes requisitioned and collected on the basis of the net taxable value of land and improvements within the service area;

b) revenues raised by other means authorized by the Local Government Act, or any other Act.

6. MAXIMUM REQUISITION

The maximum amount of money that may be requisitioned annually in support of this service shall be the greater of $62,500 or an amount equal to the amount that could be raised by a property value tax of $0.00495 per $1,000 of net taxable value of land and improvements within the service area.

READ A FIRST TIME this davof . 2014.

READ A SECOND TIME this davof . 2014.

READ A THIRD TIME this davof . 2014.

I hereby certify this to be a true and correct copy of Bylaw No. 3816 as given Third Reading on the day of ,2014.

Corporate Secretary Date

APPROVED BY THE INSPECTOR OF MUNICIPALITIES this day of

2014.

ADOPTED this day of , 2014.

Chairperson Corporate Secretary

166 Municipality of North Cowichan Agricultural Advisory Committee Minutes

Date: May 20, 2014 Time: 8:30 am Location: Municipal Hall - Committee Room

Members Present: Councillor Jen Woike, Chair Blaine Hardie, Vice-Chair Councillor Ruth Hartmann Victor Vesely Brock McLeod Andy Johnston

Members Absent: Gerry Plester

Staff Present: Councillor Al Siebring (at 9:50 am) Dave Devana, Chief Administrative Officer Brian Green, Manager of Planning and Sustainability Brigid Reynolds, Senior Planner Wayne Haddow, Regional Agrologist, Ministry of Agriculture Anne Olsen, Recording Secretary ______

1. Call to Order There being a quorum present, the Chair called the meeting to order at 8:34 am.

2. Approval of Agenda The Committee approved the agenda as amended to add the following late item: 5.1 Cowichan Agriculture Extreme Weather Event Preparedness.

3. Adoption of Minutes The Committee adopted its April 15, 2014 meeting minutes, as amended, by striking out and replacing the first sentence of the third paragraph of Item 4.5.

4. Business 4.1. Presentation - Dr. Nicole Vaugeois Dr. Nicole Vaugeois, the BC Regional Innovation Chair in Tourism and Sustainable Rural Development, gave a power-point presentation entitled "Enhancing Innovation in Agritourism: Expanding synergies between agriculture and tourism". She shared ideas about rural tourism development, and how to get visitors and tourists exposed to farms, not only by purchasing farm products, but experiencing farms first hand.

Nicole illustrated 3 levels of involvement as follows: 1. Knee deep - Placing products in front of visitors (gate sales, markets) - to increase demand for products

1 167 May 20, 2014 - Agricultural Advisory Committee Minutes

2. Waist deep - Invitation to visit farms (day trips) - Offer onsite educational tours, special events, activities, demonstrations - to diversify farm revenue, and keep the younger generation involved 3. Neck deep - Overnight stays on farms (bed & breakfasts, cottages, cabins and camping).

She explained that engaging in agritourism is moving from the tangible sale of farm products to the more intangible product of tourists experiencing farms through a memorable time spent on farms and then taking the experience with them by purchasing farm products.

Nicole advised that a proposal is underway to study agritourism in the region with plans to share the results in workshop format at the February 2015 Comox Agricultural Show. Also, through the Cowichan Economic Development office, visitor survey research will take place this summer to provide more evidence of how visitors view the agritourism experience in the region.

Following the presentation, discussion took place about the lack of shared understanding between local government, Agricultural Land Commission and the province on the definition of agritourism and non-farm use. The Committee agreed that there is a lack of clarity and support from the higher levels about allowable and non-allowable uses on the agriculture land reserve and what benefits agriculture.

The Regional Agrologist advised that this isn't a high priority for the Ministry of Agriculture; however, the Ministry is planning to work on this issue in the near future. He advised that the Ministry’s main concern is that tourism may become the primary farm use rather than the secondary use.

The Committee discussed whether to present a motion to the Union of BC Municipalities this Fall, as clear criteria needs to be defined due to the many gray areas presently. The Chair asked Nicole to email the Manager of Planning and Sustainability a definition of agritourism from her standpoint, and also asked that her presentation be emailed to Committee members. Ms. Vaugeois was excused from the meeting at 9:20 am.

4.2. Presentation - Emily MacNair and Samantha Charlton Emily MacNair, of the BC Agriculture & Food Climate Action Initiative, gave a power-point presentation which provided an overview and update on the Cowichan Adaptation Strategies projects.

Emily summarized the history of the Climate Action Initiative as follows:  in 2008 the BC Agriculture Council's "Agriculture and Food Climate Action Initiative" was formed to assist the agriculture sector with mitigation of greenhouse gas emissions and adaptation to climate change;  after the completion of the BC Agriculture Climate Change Action Plan, the emphasis became facilitating adaptation to climate change;  in 2010/2011, the Initiative completed a province-wide climate change risk and opportunity assessment for the agriculture sector in which it became clear that due to different micro-climates, the importance of water and land management beyond the farm level, and the need for collaborative approaches, a regional approach to adaptation was needed;

2 168 May 20, 2014 - Agricultural Advisory Committee Minutes

 following the assessments, in 2012/2013 the Regional Adaptation Strategies pilot projects were initiated in three areas of the province: Delta, Peace and Cowichan regions;  the Cowichan Region Advisory Committee, (subsequently the Working Group) was formed to guide the Regional Adaptation Planning process and project implementation. The planning process involved workshops to identify priority climate change impacts on agriculture. Those in the Cowichan Region are: managing rain events, extended dry periods, changes to hydrology, drought, fire and extreme weather;  in the Spring of 2013, the Cowichan Adaptation Strategies was completed;  in the Fall of 2013, the Province committed $250,000 to implement the priorities of the Cowichan Adaptation Strategies via the Working Group;  in the Fall of 2013, the following four projects (which are closely connected to the Regional Agriculture Plan’s priorities) were selected for implementation: 1. Integrated Farm Water Planning pilot, (draft toolkit completed April of 2014, Phase 2 will pilot the development of management plans with 10 agricultural operations in the Cowichan Region); 2. Business case for regional agriculture extension services; 3. Extreme weather events preparedness and mitigation. (draft resources are completed, pilot neighbourhood workshops will be held in the Fall of 2014); and 4. Options to enhance local agriculture processing and storage.(document entitled: "Creating a Climate for Value-added Foods: Enhancing Food Processing in the CVRD" to be released in approximately 1-month)

The Chief Administrative Officer left the meeting at 9:30 am.

Samantha Charlton advised that they are updating their website to hold all Regional documents and they are also starting an electronic newsletter, where interested parties can sign up to receive electronic notice when project documents are released.

The delegation and the Senior Planner left the meeting at 9:42 am.

4.3. Agricultural Funding in BC Councillor Hartmann summarized the March 11, 2014 report by Kathy Lachman, Regional Business Development Officer, regarding a proposed Regional District resolution to the Union of BC Municipalities' 2014 Convention asking the Provincial Government to raise agriculture funding in B.C. to the national average.

4.4. Student Agriculture Film - Cowichan Regional Visitor Centre The Chair advised the Committee that she drove three students to various locations on May 5th and they produced a 6-minute video profiling local vineyards, honey-bees, tea, dairy, egg and hydroponic farms. Councillor Hartmann confirmed that the Cowichan Regional Visitor Centre is excited about running this film on the Centre's iPad stands. The Chair advised that the owner of an aquaculture facility on Richards Trail has offered to give the Committee a tour of his farm.

3 169 May 20, 2014 - Agricultural Advisory Committee Minutes

Councillor Al Siebring joined the meeting at 9:50 am.

Councillor Hartmann suggested that this video be added to North Cowichan's and the Cowichan Agricultural Society's websites and that thank-you letters be sent to the students and schools involved.

The Chair asked that staff present estimates at the October meeting (including Shaw Cable) to have a professional video prepared for display on the Regional Visitor Centre's large screen.

4.5. Bonsall Creek Watershed Management Plan Update The Manager of Planning and Sustainability advised the Committee that seven proposals from consultants were received by the May 16 deadline to undertake a water supply and drainage management plan for the Bonsall Creek Watershed.

4.6. Farm Traceability Pilot Program - Ecotrust Canada The Committee discussed the March 25, 2014 proposal from Ecotrust Canada to implement a traceability system, called ThisFarm, based on the ThisFish system. Discussion took place whether to support this proposal, and a number of questions were raised such as, is there good value in this project if good alternatives already exist, and is it wise to leave it up to an environmental organization to categorize farms as sustainable or unsustainable, rather than a farmer organization. The Chair asked Brock McLeod to formulate the questions and forward them to the Regional Agrologist, who will then take them to the Investment Agriculture Foundation.

4.7. Review Council Motion - Sewerage Installations on Farmland The Manager of Planning and Sustainability advised the Committee that the Municipal Council, at its May 7, 2014 meeting, passed the Committee's recommendation regarding regulating sewerage installations abutting farmland.

4.8. Committee Member Updates The Committee heard from Andy Johnston who reported that he attended the Wine Island Growing Association's May 9 meeting at the Duncan Meadows Golf Course in which 32 Island wines were assessed, and he advised that a presentation will be made to the BC Wine Association (at their June 13 annual general meeting in Penticton) to launch a new branding image called “Wine Islands Guarantee”, which will only be applied to wines made from 100% Vancouver Island grapes.

Victor Vesely left the meeting at 10:05 am. The Vice-Chair commented on the Cowichan Agricultural Society's summer schedule, the May 9 "Integrated Farm Water Planning Tool" presentation, and the May 8 District A Farmers' Institute meeting.

The Chair encouraged the Committee to read the National Geographic articles entitled “Feeding the World”.

Councillor Hartmann left the meeting at 10:10 am.

The Vice-Chair read aloud the April 29, 2014 letter from District A Farmers' Institute to the Minister of Agriculture requesting a review of the Livestock Act, particularly about dogs injuring farm animals. The Chair asked the Manager of

4 170 May 20, 2014 - Agricultural Advisory Committee Minutes

Planning and Sustainability to bring the bylaw and rules that apply to this matter to the next Committee meeting. The Committee agreed that the District A Farmers' Institute April 29, 2014 letter to the Minister of Agriculture should be considered at the 2014 UBCM convention.

Councillor Hartmann returned to the meeting.

It was moved and seconded: That the Committee recommend that Council direct staff to prepare a background report and proposed resolution that can be sent to the Union of BC Municipalities for consideration at its 2014 annual convention, requesting the Province to review the Livestock Act, particularly section 11.1, as clear legislation is needed to: 1. allow livestock owners to protect their animals from attack by uncontrolled dogs, 2. defend livestock owners from lawsuits by dog owners, and 3. clearly place the responsibility for dog control on dog owners and not on livestock owners.

CARRIED 4.9. Proposed October Agenda Items The Chair advised that the following items will be on the October agenda: 1) tour of "Raincoast Aquaponics", 2) estimates to produce a professional video, 3) potential Wally Smith presentation, and 4) Black Tie Award nominations.

5. New Business 5.1. Cowichan Agriculture Extreme Weather Event Preparedness The Chair asked that the May 5, 2014 report by Sybille Sanderson, Regional Public Safety Manager, regarding the "Cowichan Agriculture Extreme Weather Event Preparedness and Mitigation" pilot project, be emailed to the Committee.

6. Adjournment The meeting ended at 10:20 am.

______Chair

______Recording Secretary

5 171

172

Municipality of North Cowichan Climate Change Advisory Committee Minutes

Date: May 22, 2014 Time: 2:30 p.m. Location: Municipal Hall - Committee Room

Members Present Gail Calderwood, Vice-Chair Reed Early Sandra McPherson Peter Nix Cameron Campbell Mayor Jon Lefebure (ex-officio)

Members Absent Councillor Kate Marsh, Chair David Preikshot

Staff Present Mark Ruttan, Director of Administration and Deputy CAO Brian Green, Manager of Planning and Sustainability Brigid Reynolds, Senior Planner – Environment and Policy Mia Oldenburg, Planning Student Eric Brown, Planning Student ______

1. Call to Order There being a quorum present, the Chair called the meeting to order at 2:30 p.m.

2. Approval of Agenda The Committee approved the agenda as amended to add the following item under New Business:

5.1 Announcements.

3. Adoption of Minutes The Committee adopted its April 24, 2014 meeting minutes.

4. Business 4.1. Climate Action and Energy Plan Implementation Framework The Committee received a verbal report from staff on the status of the Climate Action and Energy Plan implementation framework, which is expected to be presented at the next Committee meeting for a recommendation to Council.

4.2. Solar Panel Project The Committee received a verbal and written report from Peter Nix regarding various solar promotion initiatives that could be done by North Cowichan and

1 173 May 22, 2014 - Climate Change Advisory Committee

others. The Committee discussed the improved economics of solar photovoltaic installations and ways to promote this technology. This led to a discussion of the need to recommend to Council terms of reference for the Climate Action and Energy Plan reserve fund, and possible principles to guide expenditures from the fund. Brigid Reynolds agreed to compile and distribute a list of potential principles for the Committee's consideration in advance of the next meeting, to be held on June 5, 2014, at 2:30 p.m.

4.3. Household Challenge The Committee discussed ways to promote the upcoming household energy reduction challenge.

4.4. Previous Business Update The Committee noted that Council recently directed staff to:

1. Send three resolutions to the Union of BC Municipalities regarding energy efficient buildings, and 2. Provide a report on the implications of becoming a "blue community".

5. New Business 5.1. Announcements: PIBC Award - Climate Action, Bike to Work Week The Committee noted that North Cowichan recently received an award from the Planning Institute of BC regarding the Climate Action and Energy Plan. The Committee also noted that fifteen North Cowichan staff have agreed to bike to work next week.

6. Adjournment The meeting ended at 4:10 p.m.

______Chair

______Recording Secretary

2 174