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HomeMy WebLinkAbout2020.08.18 Adopted Council PackageCOUNCIL MEETING AGENDA 1600-2nd Street NE Three Hills, AB T0M 2A0 August 18, 2020 8:30 a.m. CALL MEETING TO ORDER 1.0 Agenda 1.1 Additions to the Agenda 1.2 Adoption of the Agenda 2.0 Approval of Minutes 2.1 Regular Council Meeting Minutes of July 21, 2020 3.0 Delegations No Delegations scheduled for this meeting. 4.0 Public Hearings 4.1 Bylaw 1823, Horseshoe Canyon Road Closure @10:00 a.m. 5.0 Transportation 5.1 Policy #3-10, Mail Boxes 5.2 Policy #13-24-1, Sanding Material 5.3 Policy #13-27, Services to Other Municipalities 5.4 STIP Bridge Funding 6.0 Community Services 6.1 Planning No Report 6.2 Water/Wastewater/Environment 6.2.1 Village of Linden Request for Financial Assistance with Pumphouse Roof Repairs 6.3 Agricultural Service Board & Parks No Report 6.4 Protective Services No Report 7.0 Corporate Services 7.1 Bylaw 1824, Electronic Transmission of Documents Bylaw 8.0 Business Arising from Previous Minutes 8.1 1 2020.08.18 Adopted Council Meeting Package August 18, 2020Council Meeting Agenda Page 2 of 2 9.0 New Business 9.1 Three Hills Victim Services Request Letter of Support 9.2 Highway 21 Corridor Crime Watch Association Request 9.3 Assessment Model Review 10.0 Disposition of Delegation & Public Hearing Business No Report 11.0 Council and Committee Reports 11.1 Kneehill Community Resource Program Final Report 11.2 Canadian Badlands Ltd. 12.0 Council Follow-up Action List 13.0 Closed Session 13.1 Land (Section 25, FOIPP) 13.2 Land (Section 25, FOIPP) 14.0 Motions from Closed Session Adjournment 2 2020.08.18 Adopted Council Meeting Package 1 ________ Initials MINUTES OF THE JULY 21, 2020 REGULAR MEETING OF THE COUNCIL OF KNEEHILL COUNTY HELD AT THE KNEEHILL COUNTY OFFICE, 1600- 2ND STREET NE, THREE HILLS, ALBERTA PRESENT: Division No. 1 Faye McGhee, Deputy Reeve Division No. 2 Debbie Penner, Councillor Division No. 3 Jerry Wittstock, Reeve Division No. 4 Glen Keiver, Councillor Division No. 5 Jim Hugo, Councillor Division No. 6 Wade Christie, Councillor Division No. 7 Kenneth King, Councillor ALSO PRESENT: Chief Administrative Officer Mike Haugen Director Community Services Laurie Watt Director Corporate Services Bill McKennan Director of Transportation Brad Buchert Manager of ASB and Parks Bowen Clausen Manager of Planning and Development Barb Hazelton Recording Secretary Carolyn Van der Kuil CALL TO ORDER Reeve Wittstock in the Chair Reeve Wittstock called the meeting to order at 8:30 a.m. AGENDA 1.0 Agenda 1.1 Additions to the Agenda Additions under Closed Session 13.2 Intergovernmental Relations (FOIP, Section 21) Additions under New Business 9.6 County Office Green Space ADOPTION OF AGENDA 1.2 Adoption of Agenda 295/2020 Councillor Penner moved approval of the agenda as presented/amended. CARRIED UNANIMOUSLY 3 2020.08.18 Adopted Council Meeting Package COUNCIL MINUTES OF JULY 21, 2020 2 _________ Initials MINUTES 2.0 Minutes 2.1 Regular Council Meeting Minutes of June 23rd, 2020 296/2020 Councillor King moved approval of the June 23rd, 2020 Council Meeting minutes as presented. CARRIED UNANIMOUSLY TRANSPORTATION 5.0 Transportation 5.1 Cost Sharing for the Development of Undeveloped Road Allowance Township Road 29-3A 297/2020 Deputy Reeve McGhee moved that Council approve 50% cost sharing with owner/developer Dave and Ruth Stewart in the amount of $7,248.10 for the development of the undeveloped road allowance Township Road 29-3A to access a sub-divided parcel situated out of NE18-29-23-W4M, with funds coming from the Operating Budget. CARRIED UNANIMOUSLY 5.2 Policy #13-6-7, Gravel Stock Pile Leases 298/2020 Councillor King moved that Council approve as presented, Policy #13- 6-7, Gravel Stock Pile Leases. CARRIED UNANIMOUSLY 5.3 Policy #13-23-4, Sale, Lease or Rental of County Road Allowances 299/2020 Councillor Keiver moved that Council approve as presented, Policy #13-23-4, Sale, Lease or Rental of County Road Allowances. CARRIED UNANIMOUSLY 5.4 Policy #13-25, Seeding Roadsides 300/2020 Councillor Christie moved that Council approve as presented, Policy #13-25, Seeding Roadsides. CARRIED UNANIMOUSLY COMMUNITY SERVICES 6.0 Community Services PLANNING 6.1Planning 6.1.1 Draft Land Use Bylaw 1808 301/2020 Deputy Reeve McGhee moved that Council move to set a Public Hearing for Land Use Bylaw 1808, to be held on September 8, 2020 at 10:00 a.m., as per Section 692(1)(e) of the Municipal Government Act. CARRIED UNANIMOUSLY 4 2020.08.18 Adopted Council Meeting Package COUNCIL MINUTES OF JULY 21, 2020 3 _________ Initials 6.1.2 Road Closure at Horseshoe Canyon 302/2020 Councillor Christie moved that Council move first reading of Bylaw 1823 to pursue the road closure and consolidation of a portion of Township Road 28-4, which is an undeveloped road allowance adjacent to the south end of Horseshoe Canyon (more specifically the SW-27-28-21-W4), and road plan 834 LK into descriptive plan 091 0342, Block 1, Lot 2. CARRIED UNANIMOUSLY 303/2020 Deputy Reeve McGhee moved that Council set a public hearing for August 18, 2020 at 10:00 a.m. as per Section 22 of the Municipal Government Act. CARRIED UNANIMOUSLY ASB & PARKS 6.3 Agricultural Service Board & Parks 6.3.1 Horseshoe Canyon Focus Group 304/2020 Councillor Penner moved that Council approve the Terms of Reference for Horseshoe Canyon Focus Group, as presented. CARRIED PROTECTIVE SERV 6.4 Protective Services 6.4.1 Kneehill Regional Emergency Management Agency Update 305/2020 Councillor King moved that Council accepts the Kneehill Regional Emergency Management Agency report for information as presented. CARRIED UNANIMOUSLY The Chair called for a recess at 9:12 a.m. and called the meeting back to order at 9:32 a.m. with all previously mentioned members present. CORPORATE SERV 7.0 Corporate Services 7.1 2020 Public Auction Tax Sale Date 306/2020 Councillor King moved that the 2020 Tax Sale Public Auction be held on Thursday, October 15, 2020 at 2:00 p.m. in the Kneehill County Administration Building. CARRIED UNANIMOUSLY 5 2020.08.18 Adopted Council Meeting Package COUNCIL MINUTES OF JULY 21, 2020 4 _________ Initials 7.2 Tax Cancellation- Trident Exploration 307/2020 Deputy Reeve McGhee moved that the balance of 2018 & 2019 property taxes in arrears in the amount of $219,274.66 be expensed and cancelled on rolls 30220531300, 31250331100, 31252010100, 31253031400, 31253040900, 31253231300, 32261210700, 32261920500, 32261941500, 32262831300, 32262841600, 32263010200, 32263020400, 32272410800, 32272431300, 32272431600, 33262810200, 33272410100, 34223431400, 34223241600, 34223031300, 34221631400, 34222010800, 34222210800, 34222810200, 34230410700, 34231120600, 34232320400, 33272441600, and 32250610200. CARRIED UNANIMOUSLY 308/2020 Councillor King moved that administration submit an application under the Provincial Education Requisition Credit (PERC) for the uncollectable Education Requisition and the uncollectable Designated Industrial Property Requisition on these Oil & Gas Properties. CARRIED UNANIMOUSLY 309/2020 Councillor Christie moved that administration is directed to void any 2020 penalties currently attached to these rolls. CARRIED UNANIMOUSLY 7.3 Tax Cancellation- Industrial Accounts 310/2020 Deputy Reeve McGhee moved that the amount of $577,991.76 in property taxes be expensed and cancelled on rolls 40001620000, 40001010000, 29251041000, 30231141500, 31231231100, 32232410800, 32232420600, 33242220400, and 40001030000. CARRIED UNANIMOUSLY 311/2020 Councillor Penner moved that administration submit an application under the Provincial Education Requisition Credit (PERC)for the uncollectable Education Requisition and the uncollectable Designated Industrial Property Requisition on these Oil & Gas Properties. CARRIED UNANIMOUSLY 312/2020 Councillor King moved that administration is directed to void any 2020 penalties currently attached to these rolls. CARRIED UNANIMOUSLY 7.4 Quarterly Financial Reporting 313/2020 Councillor King moved that Council receive the Quarterly Financial Reporting for the Period ending June 30, 2020 for information. CARRIED UNANIMOUSLY 6 2020.08.18 Adopted Council Meeting Package COUNCIL MINUTES OF JULY 21, 2020 5 _________ Initials NEW BUSINESS 9.0 New Business 9.1 Policy #3-11, Legal Costs 314/2020 Deputy Reeve McGhee moved that Council approve Policy #3-11, Legal Costs, as presented. CARRIED UNANIMOUSLY 9.2 Policy #3-2, Chief Elected Official Known as Reeve 315/2020 Councillor Penner moved that Council approve Policy #3-2, Title of Chief Elected Officer, as presented. CARRIED UNANIMOUSLY 9.3 Policy #3-3, Boards and Committees 316/2020 Councillor King moved that Council rescind Policy #3-3, Boards and Committees. CARRIED UNANIMOUSLY 9.4 Policy #15-2, Award Recognition and Congratulatory Presentations 317/2020 Deputy Reeve McGhee moved that Council approve Policy #15-2, Special Occasion and Milestone Recognition, as presented. CARRIED UNANIMOUSLY 9.5 Royal Canadian Legion Military Service Recognition Book 318/2020 Councillor Penner moved that Council provide support to the Annual Alberta/Northwest Territory Royal Canadian Legion “Military Service Recognition Book” with the purchase of a business card size advertisement at a cost of $285.00 with funds to come from the Operating Budget. CARRIED UNANIMOUSLY 9.6 County Office Green Space 319/2020 Councillor Keiver moved that Council direct Administration to work with local groups for the purpose of utilizing the area behind the County Office for community benefit. CARRIED UNANIMOUSLY COUNCIL REPORTS 11.0 Council and Committee Reports 11.1 Community Futures Wildrose- Minutes from the June 4, 2020 meeting were provided. 320/2020 Councillor Christie moved that Council receive the Council and Committee reports as presented. CARRIED UNANIMOUSLY 7 2020.08.18 Adopted Council Meeting Package COUNCIL MINUTES OF JULY 21, 2020 6 _________ Initials COUNCIL ACT LIST 12.0 Council Follow-Up Action List 321/2020 Councillor King moved that Council receive the July 21, 2020 Council Follow-Up Action List as presented for information. CARRIED UNANIMOUSLY The Chair called for a recess at 10:48 a.m. and called the meeting back to order at 10:57 a.m. with all previously mentioned members present. CLOSED SESSION 13.0 Closed Session 322/2020 Councillor Christie moved that Council convene in Closed Session to discuss disclosure harmful to business interests of a third party pursuant to Section 25 of the Freedom of Information and Protection of Privacy Act and Intergovernmental Relations pursuant to Section 21 of the Freedom of Information and Protection of Privacy Act, at 10:57 a.m. CARRIED UNANIMOUSLY The following people were in attendance of the Closed Session to provide a report and advise Council: Mike Haugen, CAO Laurie Watt, Director of Municipal Services Bill McKennan, Director of Corporate Services Barb Hazelton, Manager of Planning and Development Carolyn Van der Kuil, Recording Secretary 323/2020 Councillor King moved that Council return to open meeting at 12:24 p.m. CARRIED UNANIMOUSLY 12:25p.m. – meeting recessed to allow return of public. 12:25 p.m. - meeting resumed. ADJOURNMENT Adjournment The meeting adjourned at 12:25 p.m. ________________________ Jerry Wittstock Reeve _______________________ Mike Haugen CA 8 2020.08.18 Adopted Council Meeting Package Public Hearing Report AGENDA ITEM # 4.1 Page 1 of 1 Version: 2019-01 Subject: Horseshoe Canyon Road Closure Meeting Date: Tuesday, August 18, 2020 Presented By: Brandy Morgan, Development Officer Link to Strat Plan: Pursuing Focused Growth Background/ Proposal Currently Kneehill County holds a 3.56-acre title to an area directly south of Horseshoe Canyon that has been fragmented by road plan 834 LK. This parcel contains portions of the parking lot and a small portion of the canyon itself. The existing outhouses are on the boundary of the road allowance. The portion of the undeveloped township road runs through the parking lot, the turn around, a portion of the canyon and some of the enhanced trail down to the base. Administration is proposing that this portion of Twp. Rd 28-4 be closed and consolidated into descriptive plan 091 0342, Block 1, Lot 2 that was created following the realignment of the highway. We are also proposing to close road plan 834 LK which completely fragments the current title. This will also be consolidated into descriptive plan 091 0342, Block 1, Lot 2. Discussion/ Options/ Benefits/ Disadvantages: In 2007, highway 9 was realigned and Alberta Transportation gifted us this parcel. Outhouses were added in 2008, and the parking lot was paved in 2010. Since we do not own the roads, we do not actually own some of the infrastructure that has been developed over time on the site. Closing these roads and consolidating them into the existing plan would enable the land to be utilized more efficiently and the outhouses could be moved or new ones constructed more feasibly. Currently they are not in compliance with the setback requirements in the Land Use bylaw. Consolidating these additional lands would bring the parcel size to approximately 7.5-acres. A Real Property Report will not be required for this property. Director Approval: Laurie Watt, Director of Community Services CAO Approval: Mike Haugen, Chief Administrative Officer 9 2020.08.18 Adopted Council Meeting Package BYLAW NO 1823 ROAD CLOSURE BYLAW – HORSESHOE CANYON BEING A BYLAW OF THE COUNCIL OF KNEEHILL COUNTY, IN THE PROVINCE OF ALBERTA, FOR THE PURPOSE OF CLOSING TO PUBLIC TRAVEL AND CREATING TITLE TO PORTIONS OF A PUBLIC HIGHWAY IN ACCORDANCE WITH SECTION 22 OF THE MUNICIPAL GOVERNMENT ACT, CHAPTER M26.1, REVISED STATUTUES OF ALBERTA 2000, AS AMENDED WHEREAS the lands hereafter described are no longer required for public travel, and WHEREAS application has been made to Council to have the highway closed, and WHEREAS the Council of Kneehill County deems it expedient to provide for a bylaw for the purpose of closing to public travel certain roads, or portions thereof, situated in the said municipality, and therefore disposing of same, and WHEREAS notice of the intention of Council to pass a bylaw has been given in accordance with Section 606 of the Municipal Government Act, and WHEREAS Council was not petitioned for an opportunity to be heard by any person claiming to be prejudicially affected by the bylaw NOW THEREFORE BE IT RESOLVED that the Council of Kneehill County, in the Province of Alberta does hereby close to public travel for the purpose of creating title to the following described road allowances, subject to right of access granted by other legislation: 1. The description for the Road Closure for the portion of Government Allowance along the North Boundary of the NW 22 Twp 28-21-4 as shown outline in red in the Horseshoe Canyon sketch is as follows: “All those portions of the original Government Road Allowance adjacent to the North boundary of the North West quarter Section 22, Township 28, Range 21m West if the fourth Meridian lying within the Easterly 366.60 metres of the Westerly 420.67 metres. Containing 0.738 hectares (1.82 acres) more or less” 2. The description for the Road Closure for Road Plan 834 LK is as follows: All of Road Plan 834 LK within Northwest quarter section 22, township 28, range 21, West of the fourth meridian containing 1.57 acres more or less. 10 2020.08.18 Adopted Council Meeting Package Excepting Thereout all Mines and Minerals READ a first time on this 21st day of July, 2020. PUBLIC HEARING held on the 18th day of August, 2020 at 10:00 a.m. READ a second time on this _____ day of ______, 2020. READ a third time and final time of this _____ day of ______________, 2020. Reeve Jerry Wittstock Date Bylaw Signed Chief Administrative Officer Mike Haugen 11 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 5.1 Page 1 of 1 Version: 2020-02 Subject: Policy #13-10, Mail Boxes Meeting Date: Tuesday, August 18, 2020 Prepared By: Kylie Van der Kuil, Transportation Administrative Assistant Presented By: Brad Buchert, Director of Transportation Link to Strat Plan: Ensuring Communications & Engagement Recommended Motion: That Council approve Policy #13-10, Mail Boxes as presented. Background/ Proposal As part of Council’s ongoing review of current policies and in particular policies that have not been reviewed for a period of time exceeding four years, Policy #13-10 is presented for Council review. Discussion/ Options/ Benefits/ Disadvantages: Administration is proposing to update the formatting of Policy #13-10, Mail Boxes with no other amendments made. Financial Implications: Council Options: 1. That Council approve policy as presented. 2. That Council approve policy as amended. 3. That Council direct administration to provide further information. 4. That Council receives for information. Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☐ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- Attachments: Policy #13-10, Mail Boxes Follow-up Actions: Director Approval: Brad Buchert, Director of Transportation CAO Approval: Mike Haugen, Chief Administrative Officer 12 2020.08.18 Adopted Council Meeting Package POLICY Section Policy No. Page TRANSPORTATION 13-10 1 of 1 Policy Title Date: Motion No. Mail Boxes 34T34T 34T34T Purpose: To establish guidelines for mail box replacement responsibility. Policy Guidelines: The County will not accept responsibility for destruction of any mail boxes. The County will, if necessary to complete a road construction project, remove and reinstall a mail box located along the right hand side of the road according to the courier's line of travel in such a position that the mailbox does not extend over the shoulder of the road. For safety concerns, mailboxes and posts must be constructed of materials light enough to minimize damage and hazard if struck by a vehicle. Jerry Wittstock, Reeve Mike Haugen, CAO Approved: Review Date: Date four years from last approval date 13 2020.08.18 Adopted Council Meeting Package 14 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 5.2 Page 1 of 1 Version: 2020-02 Subject: Policy #13-24-1, Sanding Material Meeting Date: Tuesday, August 18, 2020 Prepared By: Kylie Van der Kuil, Transportation Administrative Assistant Presented By: Brad Buchert, Director of Transportation Link to Strat Plan: Ensuring Communications & Engagement Recommended Motion: That Council rescinds Policy #13-24-1, Sanding Material. Background/ Proposal As part of Council’s ongoing review of current policies and in particular policies that have not been reviewed for a period of time exceeding four years, Policy #13-24-1 is presented for Council review. Administration recommends Deleting the Policy # 13-24-1 as the policy is reflected within the Master Rates Bylaw and Intermunicipal Collaboration Framework related agreements. Discussion/ Options/ Benefits/ Disadvantages: Proposing to rescind Policy # 13-24-1, would allow having only two documents Master Rates Bylaw, and Intermunicipal Collaboration Framework related agreements outlining the guidelines and standards for Sanding Material. Financial Implications: Council Options: 1. That Council approve policy as presented. 2. That Council approve policy as amended. 3. That Council direct administration to provide further information. 4. That Council receives for information Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☐ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- Attachments: Policy # 13-24-1, Sanding Material. Follow-up Actions: Director Approval: Brad Buchert, Director of Transportation CAO Approval: Mike Haugen, Chief Administrative Officer 15 2020.08.18 Adopted Council Meeting Package KNEEHILL COUNTY SECTION: Transportation – Section 13 – Sanding POLICY TITLE: Sanding Material Not to be Sold POLICY NUMBER: 13-24-1 POLICY GUIDELINES: 1. The sand and salt mixture may be sold, on a cost recovery basis, to neighbouring municipalities, with the transportation of such being the responsibility of the purchaser. 2. The sand and salt mixture is not to be sold to private individuals or anyone else (business or otherwise) requesting same. Approval Date Approved b y: Amendment Date April 25/02 Regular Council Policy Review Committee Amendment Date Nov 29/11 Regular Council Motion #578/11 Amendment Date 16 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 5.3 Page 1 of 1 Version: 2020-02 Subject: Policy #13-27, Services to Other Municipalities Meeting Date: Tuesday, August 18, 2020 Prepared By: Kylie Van der Kuil, Transportation Administrative Assistant Presented By: Brad Buchert, Director of Transportation Link to Strat Plan: Level of Service Recommended Motion: That Council rescind Policy #13-27, Services to Other Jurisdictions. Background/ Proposal As part of Council’s ongoing review of current policies and in particular policies that have not been reviewed for a period of time exceeding four years, Policy #13-27 is presented for Council review. Administration recommends rescinding the Policy # 13-27 as the policy is reflected within the Master Rates Bylaw and Intermunicipal Collaboration Framework related agreements. Discussion/ Options/ Benefits/ Disadvantages: Proposing to rescind Policy # 13-27 would allow having only two documents - Master Rates Bylaw, and Intermunicipal Collaboration Framework related agreements, outlining the guidelines and standards for Services to Other Jurisdictions. Financial Implications: Council Options: 1. That Council approve policy as presented. 2. That Council approve policy as amended. 3. That Council direct administration to provide further information. 4. That Council receives for information. Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☐ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- Attachments: Policy # 13-27, Services to Other Jurisdictions. Follow-up Actions: Director Approval: Brad Buchert, Director of Transportation CAO Approval: Mike Haugen, Chief Administrative Officer 17 2020.08.18 Adopted Council Meeting Package TITLE: SERVICES TO OTHER JURISDICTIONS Category: Transportation Policies No. 13-27 AUTHORITY: Council at 2002 Policy Review Committee DATE: April 25, 2002 REPLACES: DATE: Further References: August 12/97) Any jurisdictions requesting services from the County shall enter into a Hold Harmless Agreement with the municipality. This Hold Harmless Agreement shall indemnify the County from any liabilities, damages, claims, actions and costs of any nature or kind whatsoever for which the County may become liable or which the County may suffer or incur arising in any way out of the work or service provided to the jurisdiction by the County. 18 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 5.4 Page 1 of 2 Version: 2020-02 Subject: STIP Bridge Funding Meeting Date: Tuesday, August 18, 2020 Prepared By: Kylie Van der Kuil, Transportation Administrative Assistant Presented By: Brad Buchert, Director of Transportation Link to Strat Plan: Improving Fiscal Sustainability Recommended Motion: That Council authorizes a budget amendment in the amount of $3,225,000 to replace BF70376, BF76459, BF6948, and BF1082; to be funded through provincial STIP grant of $2,418,750 and the County’s share of $806,250 being funded from the Bridge Reserve. Background/ Proposal On June 29th, Kneehill County received notification that we had been awarded funding up to $2,418,750, which would be a 75% cost share for Bridge Projects under the Local Road Bridge component of Alberta Transportations Strategic Transportation Infrastructure Program (STIP). Discussion/ Options/ Benefits/ Disadvantages: Currently Kneehill County has $2,520,695 in Bridge reserves. Administration is proposing to allocate an additional $806,250 for two bridge culvert replacements (BF76459, BF6948) and two bridge structure replacements (BF70376, BF1082). The proposed replacements will increase the total life life-span of the two bridge structures and two culvert structures, as well reduce the overall life-time cost. The following chart outlines information regarding the proposed bridge replacements: Bridge Location Division Description BF70376 SE-03-30-25-W4 Div 3 Bridge Replacement Located on Rge Rd 25-2, 3.5km North of Hwy 575. BF76459 SE-17-30-24-W4 Div 2 Culvert Replacement Located on Twp Rd 30-2, 245m West from Rge Rd 24-4 BF6948 SE-01-30-25-W4 Div 2 Culvert Replacement Located on Twp Rd 30-0, West of Rge Rd 25-0. BF1082 NE-36-32-23-W4 Div 7 Bridge Replacement Located on Rge Rd 25-2, 3.5kms, North of Hwy 575. 19 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 5.4 Page 2 of 2 Version: 2020-01 The available STIP funding, and associated County portion: Bridge Available STIP Funding Maximum County Funds Total Budget BF70376 $ 975,000 $ 325,000 $ 1,300,000 BF76459 $ 206,250 $ 68,750 $ 275,000 BF6948 $ 262,500 $ 87,500 $ 350,000 BF1082 $ 975,000 $ 325,000 $ 1,300,000 Total $ 2,418,750 $ 806,250 $ 3,225,000 Financial Implications: Funding from the Bridge Reserves of $806,250 for two bridge culvert replacements and two bridge structure replacements. The current balance in the reserve of $2,520,695 would be reduce to $1,714,445. With the cost share of $2,418,700 or 75% from the Alberta Transportations Strategic Transportation Infrastructure Program (STIP). Council Options: 1. That Council authorizes a budget amendment in the amount of $3,3225,000 to replace BF70376, BF76459, BF6948, and BF1082; to be funded through provincial STIP grant of $2,418,750 and the County’s share of $806,250 being funded from the Bridge Reserve. 2. That Council Receives as information and not fund the cost share for the two bridge culvert replacements and two bridge structure replacements. 3. That Council direct administration to provide further information. Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☐ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- Attachments: • June 29th, 2020 Alberta Transportation Letter. Follow-up Actions: Director Approval: Brad Buchert, Director of Transportation CAO Approval: Mike Haugen, Chief Administrative Officer 20 2020.08.18 Adopted Council Meeting Package 21 2020.08.18 Adopted Council Meeting Package 22 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 6.2.1 Page 1 of 2 Version: 2020-02 Subject: Village of Linden Request for Financial Assistance with Pumphouse Roof Repairs Meeting Date: Tuesday, August 18, 2020 Prepared By: John McKiernan, Manager of Environmental Services Presented By: John McKiernan, Manager of Environmental Services Link to Strat Plan: Providing Good Governance Recommended Motion: Council approve a contribution of 50% up to a maximum of $7000.00 to be used towards the roof replacement of the Village of Linden Pumphouse and Reservoir, with the funds coming from the Operating Budget. Background/ Proposal The Village of Linden is requesting Kneehill County to help with the costs to repair the roof at the Linden Pumphouse and Reservoir. The roof began to leak quite badly in the Spring and with the constant rains it has gotten worse. It is currently a flat roof and Linden is proposing to repair with a trussed/peak roof over the existing flat roof and the roof will be finished with tin. The Village of Linden is planning on construction of the roof in late August or early September Discussion/ Options/ Benefits/ Disadvantages: Kneehill County occupies a portion of the building with our own entrance as part of the Sunnyslope water system. The County does not pay rent for our portion of the building. Continued deterioration of the roof could affect the building as a whole and repairs made at this time could prevent major damage later. Financial Implications: Funds would come from 2020 operating budget which currently contains enough room under “Major Maintenance” to fund this request. Council Options: 1. Council approve a contribution of 50% up to a maximum of $7000.00 to be used towards the roof replacement of the Village of Linden Pumphouse and Reservoir, with the funds coming from the Operating Budget. 2. Council approve an alternate contribution amount. 3. Receive the request for assistance from the Village of Linden as information. Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☐ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- 23 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 6.2.1 Page 2 of 2 Version: 2020-01 Attachments: None Follow-up Actions: Staff will advise the Village of Linden of Council’s request. Director Approval: Laurie Watt, Director Community Services CAO Approval: Mike Haugen, Chief Administrative Officer 24 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 7.1 Page 1 of 3 Version: 2020-02 Subject: Electronic Transmission of Documents Bylaw Meeting Date: Tuesday, August 18, 2020 Prepared By: Caroline Siverson, Tax & Assessment/Utilities Administrator Presented By: Bill McKennan, Director of Corporate Services Link to Strat Plan: Level of Service Recommended Motion: 1. That Council give first reading to Bylaw #1824 that being a bylaw for the Electronic Transmission of Documents 2. That administration is directed to advertise this Bylaw as per the Advertising guidelines in Advertising Bylaw #1772 and bring back all feedback to Council at the September 22, 2020 meeting. Background/ Proposal The Municipal Government Act was amended January 1, 2019 and has now allowed municipalities to forward their tax notices by electronic transmission. This can be an option for customers and has the same structure and regulations as the mailed copy. The ability of the County to send tax notices electronically is already possible within our current programs and this request is for the necessary Bylaw to be put in place by Council. Discussion/ Options/ Benefits/ Disadvantages: Section 608 of the MGA indicates that a Bylaw must be passed that will allow a document to be sent by electronic means if (a) the recipient has consented to receive documents from the sender by those electronic means and has provided an e-mail address, website or other electronic address to the sender for that purpose, and (b) it is possible to make a copy of the document from the electronic transmission. The County systems are set up to send notices to our customers electronically. We are already doing this with our utility billings and very shortly, our Accounts Receivable billings. The notice is sent as a PDF attachment to the customers’ email account. We have had no issues with the utility billings and it has been working for the last couple of years. As new accounts are added or new customers come into the County, the uptake on the request for emailed bills is increasing. There is the requirement in the MGA that customers wishing to receive their tax notices by email instead of mail will be required to provide authorization to us and this authorization has been created and is attached for your review. We have included all documents relating to taxation, utilities and accounts receivable in this bylaw to ensure that we are in compliance now and in the future. This would not be a mandatory expectation for our ratepayers but an option for those wishing to receive their bills electronically. During the current situation in the world regarding the pandemic, it has become apparent that the ability for business to deal with customers efficiently and 25 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 7.1 Page 2 of 3 Version: 2020-01 effectively is changing and the option to receive your bills electronically is paramount. We had several industrial clients contact us prior to this year’s notices being mailed and requesting them via email. They were sent both ways to accommodate the client and the requirements of the MGA as no bylaw was in place yet. We foresee that 90% of industrial clients will request further notices to be emailed. One of the considerations of this proposed bylaw, is to advise our residents of this bylaw. As the Council has a current Bylaw in place for Advertising guidelines, administration will post a notice in the local Three Hills Capital and electronically on our website as per these guidelines. Administration will bring back this bylaw for final readings to the September 22, 2020 Council meeting and advise of all feedback received. Financial Implications: There is a small set-up and maintenance fee related to this distribution method. However, once the savings in postal costs are factored in there will be a reduction in overall expenditures for the County. The net costs will be reflected in the 2021 and future years operating budgets. Council Options: 1. Give first reading to Bylaw #1824 Electronic Transmission of Documents 2. Accept for information Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☐ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- Attachments: Bylaw # 1824 Electronic Submission of Documents Follow-up Actions: 1. Administration will advertise this proposed bylaw as per the Advertising Bylaw #1772 guidelines 2. Administration will bring back the Electronic Transmission of Documents back for final readings and all resident feedback received to the September 22 meeting Director Approval: Bill McKennan, Director of Corporate Services CAO Approval: Mike Haugen, Chief Administrative Officer 26 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 7.1 Page 3 of 3 Version: 2020-01 27 2020.08.18 Adopted Council Meeting Package BYLAW NO 1824 ELECTRONIC TRANSMISSION OF DOCUMENTS A BYLAW OF KNEEHILL COUNTY, IN THE PROVINCE OF ALBERTA, TO ESTABLISH A PROCESS TO SEND ASSESSMENT, TAXATION AND ASSESSMENT REVIEW BOARD NOTICES AND OTHER DOCUMENTS BY ELECTRONIC MEANS. WHEREAS, Section 608.1 of the Municipal Government Act, RSA 2000, Chapter M-26, states that Council may by bylaw establish a process for sending assessment notices, tax notices and other documents and information under Part 9, 10 or 11 of the Act or the regulation under Part 9, 10 or 11 by electronic means; WHEREAS before making a bylaw under section 608.1, Council must: a) Be satisfied that the proposed bylaw includes appropriate measures to ensure the security and confidentiality of the documents and information being sent; and b) Give notice of the proposed bylaw in a manner council considers is likely to bring the proposed bylaw to the attention of substantially all persons that would be affected by it; WHEREAS a bylaw under section 608.1 must provide a method by which persons may opt to receive the notice, document or information by electronic means; NOW THEREFORE, the Council of Kneehill County, duly assembled, enacts as follows: PART ONE INTRODUCTION 1. TITLE This Bylaw shall be known as the “Electronic Transmission of Documents” 2. DEFINITIONS (1) “Act” means the Municipal Government Act, RSA 2000, c. M-26; (2) “Assessed person” means an assessed person as defined in section 284,1(a) of the Act or a person acting on behalf of an assessed person; (3) “Council” means the Kneehill County Council members; (4) “County” means the municipal corporation of Kneehill County; (5) “Customer” means any person receiving a service from the County; (6) “Electronic means” means electronic mail or e-mail. 28 2020.08.18 Adopted Council Meeting Package Bylaw No. xxxx, Title of Bylaw Page 2 of 4 PART TWO SCOPE 3. The County may send the following by electronic means to an assessed person: (1) Assessment Notices pursuant to Section 310 of the Act; (2) Supplementary Assessments pursuant to Section 316 of the Act; (3) Tax Notices pursuant to Section 333 & 335 of the Act; (4) Combined Assessment & Tax Notice as described in Section 308(4) of the Act; (5) Tax Arrears Notices; (6) All documentation relating to the Regional Assessment Review Board process; (7) Any and all documentation relating to the Recovery of Taxes Related to Land as described in Division 8 of the Act; (8) Any and all documentation relating to the Recovery of Taxes not Related to Land as described in Division 9 of the Act; (9) Any and all documentation relating to the Recovery of Taxes Related to Designated Manufactured Homes in Division 8.1 of the Act; (10) Any and all letters and documentation pertaining to Pre-authorized Debit plans. 4. The County may send the following by electronic means to a customer: (1) Utility Billing; (2) Accounts Receivable Invoice and Statements; (3) Cash Receipt showing payment made; (4) Utility Arrears Notices; (5) Accounts Receivable Arrears Notices; (6) Any and all letters pertaining to Utility Billings and Accounts Receivable invoicing and Pre-authorized Debit plans. PART THREE CONSENT 29 2020.08.18 Adopted Council Meeting Package Bylaw No. xxxx, Title of Bylaw Page 3 of 4 5. Any notice as set out in section 3 may be sent by electronic means if the assessed person: (1) Has provided a personal email address for the notices to be sent to; (2) Has opted to receive notices by electronic means by completing the prescribed form; (3) The prescribed from has been signed by the assessed person. 6. A person who has opted to receive notices by electronic means may revoke consent at any time by contacting administration and providing documentation of such revocation. This documentation may include: (1) A signed and dated Revocation Request form; (2) Letter signed by the assessed person, whether received by electronic means or otherwise, detailing the request to revoke consent; (3) Electronic mail (e-mail) received by administration from the personal email on the consent form detailing revocation of consent. PART FOUR PRESUMPTION OF RECEIPT 7. As indicated in Section 608.2 of the Act, a person who opts to receive notices by electronic means is presumed to have received the documentation as indicated in section 3, 7 days after it was sent. PART FIVE TRANSITION 8. SEVERABILITY If a portion of this bylaw is found by a court of competent jurisdiction to be invalid, the invalid portion will be voided, and the rest of the bylaw remains valid and effective. 9. EFFECTIVE DATE This bylaw comes into effect upon third reading of this bylaw. READ a first time on this _______ day of ______________________, 2020. READ a second time on this ________ day of _______________________, 2020. 30 2020.08.18 Adopted Council Meeting Package Bylaw No. xxxx, Title of Bylaw Page 4 of 4 UNANIMOUS permission for third reading given in Council on the ________ day of ____________________, 2020. READ a third time and final time of this _______ day of _______________________, 2020. Reeve Jerry Wittstock Chief Administrative Officer Mike Haugen Date Bylaw Signed 31 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 9.1 Page 1 of 1 Version: 2020-02 Subject: Three Hills Victim Services Request Meeting Date: Tuesday, August 18, 2020 Prepared By: Carolyn Van der Kuil Presented By: Mike Haugen, CAO Link to Strat Plan: Level of Service Recommended Motion: That Council direct Administration to provide a letter of support to the Three Hills Victim Services as they apply for the Alberta Victims of Crime Fund Grant. Background/ Proposal Administration received a request from the Three Hills Victim Services to provide a letter of support as they apply for the Alberta Victims of Crime Fund Grant. Discussion/ Options/ Benefits/ Disadvantages: A letter needs to be completed by September 4, 2020. Financial Implications: No financial implications. Council Options: 1. Council provide a letter of support. 2. Council receive for information. Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☒ Individual Notification or ☐ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- Attachments: Letter from Three Hills Victim Services Follow-up Actions: Administration will write a support letter and send to Three Hills Victim Services before September 4, 2020. CAO Approval: Mike Haugen, Chief Administrative Officer 32 2020.08.18 Adopted Council Meeting Package August 7, 2020 To: Mike Haugen RE: Requesting Support letter Three Hills Victim Services role is to ease the impact of crime and tragedy on victims. We provide support at the time of the incident, with a listening ear, comfort and reassurance. A follow up consultation is provided, when necessary, to determine what further information, support or referrals are required by the victim. We feel our Victim Services is an integral part of the communities. As part of the Alberta Victims of Crime Fund Grant Application we require a letter of support for the Three Hills Victim Services Association from Community members. We would appreciate your willingness to send a letter of support before September 4, 2020. You are able to email your letter to carolyn.kung@rcmp-grc.gc.ca or fax to 403-443-7140, or mail it to Box 520, Three Hills, AB T0M 2A0. Thank you for your time and consideration in this matter. Carolyn Kung Program Manager Three Hills Victim Services Association “To make a difference in someone’s life, you don’t have to be brilliant, rich, beautiful, or perfect. You just have to care enough and be there.” ..... Anonymous 33 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 9.2 Page 1 of 2 Version: 2020-02 Subject: Hwy 21 Corridor Crime Watch Association Request Meeting Date: Tuesday, August 18, 2020 Prepared By: Carolyn Van der Kuil Presented By: Mike Haugen, CAO Link to Strat Plan: Level of Service Recommended Motion: That Council provide support to the Hwy 21 Corridor Crime Watch Association in the amount of $1,000.00, with funds to come from the 2020 operating budget. Background/ Proposal Administration received a request from the Hwy 21 Corridor Crime Watch Association requesting a donation. The organization operates within the boundaries of the Three Hills RCMP detachment area. Their mandate is to provide public education and information to assist their members in ways to keep themselves and their properties safe. Discussion/ Options/ Benefits/ Disadvantages: Funds would be used to organize public open houses with guest speakers and demonstrations, to improve signage along major thoroughfares throughout watch area, to develop a Facebook page to keep members informed and up to date on crimes in real time, and to improve their profile in the community by sending out information to media sources to update them on their activities. Financial Implications: A request amount was not mentioned in the request letter, but in follow-up with the organization, they have confirmed that Red Deer County has provided them with $1,000.00 support. The Village of Delburne has also assisted them with admin support. Funds could come from the Recreation Community Arts Culture, Policy #15-7. There is approximately $8,625.00 still available in this budget. Source of Funding: Rec Community Arts Culture, Policy #15-7. Council Options: 1. Council approve a donation in the amount of $1,000.00. 2. Council approve an amended amount. 3. Council receive request for information. Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☐ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- 34 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 9.2 Page 2 of 2 Version: 2020-01 Attachments: Request letter from Hwy 21 Corridor Crime Watch Association Follow-up Actions: Communicate Council’s decision to Hwy 21 Corridor Crime Watch Association. CAO Approval: Mike Haugen, Chief Administrative Officer 35 2020.08.18 Adopted Council Meeting Package 36 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 9.3 Page 1 of 5 Version: 2020-02 Subject: Assessment Model Review Presentation Meeting Date: Tuesday, August 18, 2020 Prepared By: Mike Haugen Presented By: Mike Haugen, CAO Link to Strat Plan: Level of Service Recommended Motion: That Council accept the presentation on proposed Assessment Model Review changes for information, as presented. Background/ Proposal Administration has prepared a report for Council regarding the proposed changes to the Assessment model for Oil and Gas Facilitates. During this presentation, Administration will utilize and review several documents including a presentation, the RMA Position Statement, and the RMA Assessment Model Review – Outcomes Summary. All of these are attached. The Province previously completed a technical review of Oil and Gas Assessment. The current system has been in place since 2005. During that review, municipalities were not consulted and the resulting information has not been shared by the Province and remains under a communications embargo. Since that time, the Province has worked primarily with industry to generate four possible scenarios for changes to the Oil and Gas Assessment Models. This process was largely industry driven and municipal organizations such as RMA and AUMA were included, though both report their concerns were ignored and their input muted. Both entities oppose all four scenarios. For clarification, this issue is different than that natural end of life adjustments that occur each year. This issue is a fundamental change to artificially alter the assessment depreciation and assessment methods which would heavily impact municipalities across the Province, both rural and urban. Last year, the Province altered assessment for Shallow Gas Producers. This change resulted in a $1.9 Million loss of revenue to the County. This loss is ongoing and was not a one-time event. As a result, the County budgeted to collect approximately $1.5 Million less in taxes in 2020 than was collected in 2019. Existing provincial budget impacts include: • $1.9 million reduction of tax revenues collected from shallow gas producers, as a result of provincial policy decisions. • 25% reduction in provincial grants over the next five years amounting to a loss of $500,000 over a three-year period. • Addition of Provincial policing costs, $160,000 in 2020 to $480,000 in 2023. Kneehill County believes that supports for Oil and Gas are needed, however, the scenarios proposed by the Province will result increased taxes for the majority of County residents, farms, and businesses. Municipalities across the Province are echoing this sentiment to the point where municipally elected officials from across the Province held a demonstration at the legislature building. 37 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 9.3 Page 2 of 5 Version: 2020-01 There is widespread concern about this issue as the Province conducted the work in secrecy, and has not made pertinent information – such as the technical review and long-term impact modelling, available. Of the scenarios proposed, Kneehill County stands to lose between $3.5 and $7.3 Million per year. To put that in perspective, all residential and farm taxes in the County amount to approximately $2.8 Million per year. Industry is pushing for Scenario D, which would impact the County by approximately $7.3 Million in the first year and escalate each year afterwards. In addition, industry is also pushing the Province to not allow increases on industry, the impact of which would be to drive any tax increases to residents and farms. Discussion/ Options/ Benefits/ Disadvantages: As part of the presentation, Administration will go through several related documents. Below are some pertinent points or summaries from those documents. While most properties are assessed based on their market values, designated industrial properties such as wells and pipelines are assessed based on several regulated factors linked to depreciation, size, construction costs, etc. The intent is still to reflect an accurate value of the property. By attempting to use the assessment system to enhance industry competitiveness, the 2020 review and subsequent changes to how these regulated properties are assessed has compromised the objectivity of the regulated assessment model, and will result in serious fiscal impacts to municipalities, while actually compromising the competitiveness of many small oil and gas companies. The proposed regulations represent a violation of assessment principles and transparency. The Assessment Model is contained in regulations and can be altered by the Minister of Municipal Affairs. The Government of Alberta has reviewed the current property assessment model for O&G companies and has proposed four new assessment model scenarios. The proposed scenarios would result in a reduction of assessment for Kneehill County between 12 and 24%, which would translate to a loss of total revenues between 11 and 22%. Kneehill County understands that all sectors, not just Oil and Gas have been hit by an economic downturn combined with a pandemic. As a County, we believe that restarting our economy is important and support efforts to do so. The proposed scenarios do not represent a successful effort to bolster the economy and actually harm small business and many small Oil and Gas Producers. The County would run out of reserve funds within three years under all proposed scenarios. The County maintains that tax exemption policies should not be built into the assessment system. Such policies should be implemented in a transparent and targeted manner by the Province. There is no mechanism to require the oil and gas industry re-invest any cost savings received through changes to the assessment model in Alberta in the form of job creation and/or capital investment. The biggest benefits of the proposals are 38 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 9.3 Page 3 of 5 Version: 2020-01 for the largest companies that have international reach and can easily use the money to increase dividends to shareholders and move money elsewhere in the world. Based on the Government of Alberta’s proposed scenarios, the largest oil and gas companies operating in the province will receive a disproportionate share of benefits from changes to the assessment model. Small and locally-owned companies will, on average, receive significantly less benefit, and in many cases will face significant assessment increases. Even under industry’s most favourable scenario, 145 companies would face assessment increases. The only groups that win in every scenario are the largest oil and gas companies operating in Alberta, many of which have holdings worldwide and would be under no obligation to reinvest savings in the province. There has been absolutely no link established between the assessment model proposals and making Alberta’s oil and gas industry more competitive. “Industry competitiveness” was never defined during the review process, and the industry stakeholder representatives involved in the review (Canadian Association of Petroleum Producers [CAPP], Canadian Energy Pipelines Association [CEPA] and the Explorers and Producers Association of Canada [EPAC]) have provided no evidence as to how reduced property assessments would enhance competitiveness in comparison to other industry cost drivers. No multi-year impact analysis has been shared for the scenarios. All data focuses only on the first year of implementation. Steeper and artificial depreciation will make impacts more severe as assets age. The age lives of machinery and equipment are set between 15 – 20 years at which time the equipment is fully depreciated; these artificially shortened age lives contrast with the actual life of a facility at 40 – 60 or more years. Pipelines and wells are already assessed at 67% of value throughout their working life. The new model would fully depreciate wells and pipelines within 16-26 years despite their working lifetimes being significantly longer. The tax burden will simply be shifted away from the oil and gas industry and on to all other businesses and residents. Most municipalities will simply have no other choice. The potential losses to Kneehill County are equivalent to eliminating almost 90% of the County workforce. Our residential and agricultural ratepayers are also hurting, and the proposed changes do nothing to address their plight. In fact, even after significant cuts to service and infrastructure, including job and contract losses, these taxpayers will still see significant increases to their tax bills. At a time when they can least deal with it. The proposals allow for reductions when economies are down, but does not allow for increases when the economy picks up. This benefits only one side. 39 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 9.3 Page 4 of 5 Version: 2020-01 If Kneehill County were to lose $7.3 Million in revenue, the County could increase residential and farmland taxes by 40% and business taxes by 44% and would still face a loss of over $1 Million dollars. If the County wanted to recoup the losses completely, taxes would have to increase almost 50% for all residents, farms, and businesses within the County. If the County were to recoup this just from residents and farms to help business, tax increases for 2021 would be approaching 300%. If the County was able to make service cuts of $3.5 Million, in addition to terminating the employment of many staff and contractor/service providers, remaining residents, farms, and businesses would still face tax increases of 35-40% starting next year. To make this worse, given the artificial depreciation of Oil and Gas Facilities over just 16-26 years means that additional revenue would be lost in future years, necessitating additional cuts and tax increases. This comes at a time in which the Province has placed additional costs on municipalities through ICF Agreements and Policing Costs. Kneehill County has been forced to absorb hundreds of thousands of dollars in additional costs and the scenarios proposed drastically reduce the County’s ability to pay those costs. This all comes following Kneehill County losing $1.9 Million in revenue as a result of the Province’s Shallow Gas Relief Program. Even with modest tax increases this year, the County still made cuts and collected around $1.5 Million less than in 2019. It would also reduce our ability to share with our urban partners. The County would likely have to withdraw from assisting with funding recreational facilities such as pools and arenas and services such as volunteer fire departments. This would place additional burden on our urban partners who would also be subjected to increases in Education Tax, Policing Costs, and Seniors Housing Costs, as a result of rebalancing equalized assessment throughout Alberta. The AUMA estimates that under these scenarios, Towns would see educational funding increases of 2-10% and Villages would see increases of 0-7%. Prior to this assessment review, cuts made by the Government of Alberta have resulted in a reduction of 7% of total County tax revenues, a loss of grant funding, and additional costs to be paid for by the municipality. The County recognizes that massive increases to tax rates are not a viable option to mitigate the impact of these proposed models. It also recognizes that in order to reduce expenses by 13 to 26% that significant reductions in service levels would have to be made. If any of these models are put into place the County will be required to do some combination of tax rate increases and service level reductions. Financial Implications: While there are extreme financial implications associated with the proposed changes, there are no financial implications associated with the presentation or recommended motion. Council Options: 1. Council may opt to accept the presentation for information. 2. Council may opt to direct Administration towards actions related to the report. 40 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 9.3 Page 5 of 5 Version: 2020-01 Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☐ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- Attachments: 1. Assessment Model Review PowerPoint Presentation 2. RMA Position Statement 3. RMA Assessment Model Review – Outcomes Summary Follow-up Actions: NA Director Approval: Name, Title CAO Approval: Mike Haugen, Chief Administrative Officer 41 2020.08.18 Adopted Council Meeting Package Rural Municipalities of Alberta Assessment Model Review – Outcomes Summary 42 2020.08.18 Adopted Council Meeting Package 2 Over the past several months, RMA has participated in a Government of Alberta -led review of the assessment model for oil and gas properties such as wells and pipelines. In addition to RMA, the following organizations participated in the review: • Alberta Urban Municipalities Association • Canadian Association of Petroleum Producers • Explorers and Producers Association of Canada • Canadian Energy Pipeline Association • Canadian Property Taxpayers Association According to the Government of Alberta, the review was intended to “modernize” the assessment model for oil and gas properties to enhance industry competitiveness while ensuring municipal viability. Due to strict confidentiality requirements, RMA has been unable to provide members with an update on the review process. At this point, the Government of Alberta has finalized recommended changes to the model and have briefed relevant provincial ministers and decision-makers on the recommendations. RMA (and the other organizations involved in the review) now have an opportunity to advocate to those same ministers and decision-makers on the impacts of the recommended changes. The review concluded with four scenarios to be presented to provincial decision -makers, each of which represents different changes to the assessment model and different impacts on municipalities and industry. All scenarios reduce overall assessment values of the property impacted by the review, with province-wide reductions ranging from 7% in scenario A to 20% in scenario D. However, the impacts of the changes vary among municipalities and companies. Some municipalities will lose significant assessment value, while others will see their assessment increase. Similarly, some companies will benefit greatly from each scenario in the form of reduced assessments, while others (mainly small companies) will see massive increases in assessment. This document show s the province-wide impacts of each scenario. RMA is not aware of whether the Government of Alberta favors a specific scenario. Industry representatives have vocally supported scenario D, which most drastically reduces assessment. Unfortunately, no multi-year impact analysis has been shared for the scenarios. All data focuses only on the first year of implementation, though due to steeper deprecia tion curves and other changes, municipal impacts will become more severe as assets age. It is important to note that even municipalities that are minimally impacted in year one may face much more serious impacts in year five or ten. As will be evident in this document and other information shared with members, RMA is strongly opposed to the recommended changes to the assessment model and their impacts on both municipal viability and industry competitiveness. The remainder of this document will summarize key points from various RMA input during the review process that demonstrates the impacts of the recommended changes on municipalities and industry and proposes alternative approaches to enhancing industry competitiveness that are more transparent, targeted and effective than the proposed assessment model changes. This information was provided to the Government of Alberta during the review process and has been submitted formally to the Minister of Municipal Affairs in advance of the internal provincial minister and decision-maker briefings. 43 2020.08.18 Adopted Council Meeting Package 3 Technical Summary of Proposed Changes The Government of Alberta has based the review process around four scenarios for changes to various aspects of the assessment model, with each resulting in a different level of impact to municipalities and industry in the form of overall assessment reductions. The review process was focused primarily on discussing the impacts of the various scenarios rather than the technical det ails. However, the Government of Alberta revised the scenarios repeatedly throughout the review process based mainly on ongoing data, information and suggestions received from industry. Unfortunately, RMA was not provided this data or detailed information on why the scenarios were continually changed. As RMA was not involved in the year-long technical reviews that preceded the current review, it is unknown the extent to which the changes in each scenario are informed by the work of the technical reviews. Specific technical questions about the rationale behind th e changes in each scenario should be direct to Alberta Municipal Affairs. The technical changes in each scenario are summarized below (based on summary information provided to RMA by the Government of Alberta): Current Wells • Base costs - Follows CCRG • Depreciation - A set factor of 0.67 (67% asset value applied) • Additional Depreciation - Production • Land Assessment - 1766 to 12,792 • Statutory Level or Adjustment Factor - None Pipelines • Base Costs - Follows CCRG • Depreciation - A straight factor of 0.67 (67% asset value applied for all pipe types [less than 10 inches or greater than 10 inches]) • Multi line adjustment - Not applicable • Additional Depreciation - Production • Land Assessment - Not applicable • Statutory Level or Adjustment Factor - Not applicable • Age - Not applicable Scenario A – 7% overall assessment decrease Wells • Base costs - All costs designated by the CCRG are removed, and stimulation costs are removed. 44 2020.08.18 Adopted Council Meeting Package 4 • Depreciation - Begins at 10% and ends at 90%, dropping 5% per year until maximum depreciation (factor of 0.10) is reached in 16 years. • Additional Depreciation - None applied. • Land Assessment - No changes to the current land assessment listed in the Minister’s Guidelines. • Statutory Level or Adjustment Factor - A factor of 0.65 is applied to deep horizontal wells. Pipelines • Base Costs - All costs designated by the CCRG are removed, and a straight cut is used for crossings. • Depreciation - For all pipe types less than 10 inches, depreciation begins at 10% and ends at 90%, dropping 5% per year until maximum depreciation (factor of 0.10) is reached in 16 years. For all pipe types greater than 10 inches, depreciation begins at 10% and ends at 90%, dropping 3% per year until maximum depreciation (factor of 0.10) is reached in 26 years. • Multi line adjustment - A factor of 0.80 is applied to all pipe greater than 10 inches. • Additional Depreciation - 0.95 for CFB Suffield. • Land Assessment - Not applicable. • Statutory Level or Adjustment Factor - Not applied. • Age - Updated to reflect new information. Machinery and Equipment – Well Sites • Base Costs - All costs designated by the CCRG are removed. • Depreciation - Depreciation begins at 25% and ends at 90%, holding 25% for the first four years, and dropping 5% per year until maximum depreciation (factor of 0.10) is reach ed in 16 years. • Additional Depreciation - Loss in value from site-specific causes. • Land Assessment - Included in the well assessment. • Statutory Level or Adjustment Factor - Legislated 77%. Machinery and Equipment – Facilities • No change from the current • Statutory Level or Adjustment Factor - Legislated 77%. Scenario B – 9% overall assessment decrease Wells • Base Costs - All costs designated by the CCRG are removed, and stimulation costs are removed. • Depreciation - Begins at 25% and ends at 90%, holding at 25% for the first four years, and dropping 5% per year until maximum depreciation (factor of 0.10) is reached in 16 years. • Additional Depreciation - None applied. • Land Assessment - Maintain current land assessment listed in the Minister’s Guidelines, except the land assessment is reduced to zero when maximum depreciation is achieve d. • Statutory Level or Adjustment Factor: - A factor of 0.65 is applied to deep horizontal wells. A factor of 0.80 is applied to SAGD wells. 45 2020.08.18 Adopted Council Meeting Package 5 Pipelines • Base Costs - All costs designated by the CCRG are removed, and a straight cut is used for crossings. • Depreciation - For all pipe types less than 10 inches, depreciation begins at 10% and ends at 90%, dropping 5% per year until maximum depreciation (factor of 0.10) is reached in 16 years. For all pipe greater than 10 inches, depreciation begins at 10 % and ends at 90%, dropping 3% per year until maximum depreciation (factor of 0.10) is reached in 26 years. • Multi line adjustment - A factor of 0.80 is applied to all pipe greater than 10 inches. • Additional Depreciation - 0.95 for CFB Suffield. • Land Assessment - Not applicable. • Statutory Level or Adjustment Factor - Not applied. • Age - Updated to reflect new information. Machinery and Equipment – Well Sites • As described in Scenario A. Machinery and Equipment – Facilities • No change from the current. Scenario C – 14% overall assessment decrease Wells • Base Costs - All costs designated by the CCRG are removed, and stimulation costs are removed. • Depreciation - Begins at 25% and ends at 90%, holding at 25% for the first 4 years, and dropping 5% per year until maximum depreciation (factor of 0.10) is reached in 16 years. • Additional Depreciation - None applied. • Land Assessment – Maintain current land assessment listed in the Minister’s Guidelines, except the land assessment is reduced to zero when maximum depreciation is achieved. • Statutory Level or Adjustment Factor - A factor of 0.65 is applied to SAGD wells. Pipelines • Base Costs - All costs designated by the CCRG are removed, and a straight cut is used for crossings. • Depreciation - For all pipe sizes less than 10 inches, depreciation begins at 25 % for the first four years and ends at 90%, dropping 5% per year until maximum depreciation (factor of 0.10) is reached in 16 years. For sizes greater than 10 inches, depreciation begins at 25% for the first four years and ends at 90%, dropping 3% per year until maximum depreciation (factor of 0.10) is reached in 26 years. • Multi line adjustment - Factor of 0.80 is applied to all pipe greater than 10 inches. • Additional Depreciation - 0.95 for CFB Suffield. • Land Assessment - Not applicable. • Statutory Level or Adjustment Factor - Not applied. • Age - Updated to reflect new information. 46 2020.08.18 Adopted Council Meeting Package 6 Machinery and Equipment – Well Sites • As described in Scenario A. Machinery and Equipment – Facilities • No change from the current. Scenario D – 20% overall assessment decrease Wells • Base Costs - All costs designated by the CCRG are removed, and stimulation costs are removed. • Depreciation - Begins at 25% and ends at 90%, and dropping 8% between year zero and year one, and by 4 % per year thereafter until maximum depreciation (factor of 0.10) is reached in 16 years. • Additional Depreciation - 0.10 for zero production. Maximum depreciation is 0.10. • Land Assessment - The land assessments are as follows: Zone Land Value – Single Pad Land Value – Multi Pad Central 3,838 512 NE 2,164 288 NW 1,589 212 SE 2,781 371 SW 2,424 323 Other 0 0 • Statutory Level or Adjustment Factor - SAGD receives a 0.65 factor Pipelines • Base Costs - All the costs designated by the CCRG are removed, and a straight cut is used for crossings. • Depreciation - For all pipe sizes less than 10 inches, depreciation begins at 25 % for the first four years and ends at 90%, dropping 5% per year until maximum depreciation (factor of 0.10) is reached in 16 years. For sizes greater than 10 inches, depreciation begins at 25% for the first four years and ends at 90%, dropping 3% per year until maximum depreciation (factor of 0.10) is reached in 26 years. • Multi line adjustment - A factor of 0.70 is applied to all pipe greater than 10 inches. • Additional Depreciation - 0.95 for CFB Suffield. • Land Assessment - Not applicable. • Statutory Level or Adjustment Factor - Not applied. • Age - Updated to reflect new information. 47 2020.08.18 Adopted Council Meeting Package 7 Machinery and Equipment – Well Sites • As described in Scenario A. Machinery and Equipment – Facilities • No change from the current. RMA’s Response to Proposed Technical Changes As noted, RMA was not involved or provided any information from the technical review processes that informed the development of the scenarios. Notably, every iteration of each scenario focused on increased tax relief to industry. Given the lack of available technical information, detailed data or methodology for the calculations used it is difficult to form an opinion on the scenarios outside of the reality that they will all negatively impact rural municipalities and will only become worse as assets continue to age. The proposed scenarios read as a wish list of industry and will cause significant harm to rural municipalities who have been strong partners to industry development for decades. Further, these scenarios add even more tax policy items into the assessment model, which already includes many existing issues and challenges, including: • Some of the excluded costs under the CCRG would not be excluded under the cost approach to value, and have been excluded under the CCRG to reflect historic negotiated decisions. • The yearly setting of the assessment year modifier in Schedule B is not transparent and is not data driven based on changes to construction costs. • The setting of the assessment year modifier is subject to ministerial discretion as impacted by the advocacy of industry groups. • The age lives of machinery and equipment are set between 15 – 20 years at which time the equipment is fully depreciated; these artificially shortened age lives contrast with the actual life of a facility at 40 – 60 or more years. • During the first five years equipment is assessed it receives an immediate 25% depreciation (the purpose of this tax policy was to provide an incentive to construct new machinery and equipment, however, there is no data to track whether this policy achieved this goal). • The depreciation in Schedule C for machinery and equipment reaches a floor of 40% remaining; the purpose of this policy dating from the mid 1980 s was to provide consistency and stability for municipalities. • The statutory factor contained in the Matters Relating to Assessment and Taxation Regulation, further reducing the M&E assessment by a factor of 23%; the statutory factor represents a historical policy which should be reconsidered to see if it is still relevant. As shown, many existing tax policies within the assessment model are still in existence despite their original intent (often investment incentive programs) hav ing long since passed. This highlights the danger of the ‘permanence’ and lack of transparency of using the assessment model to engage in obvious tax policy initiatives, which is the primary intent of the current review. 48 2020.08.18 Adopted Council Meeting Package 8 Despite the “unknowns” in the proposed scenarios and lack of detail in the review process, there are a number of observations RMA has made about the suitability of the proposed changes: Major Concerns  Base Costs Exclusions The rates in the Minister’s Guidelines should reflect the typical cost to construct, or in this case drill, the well. Construction costs include both labour and equipment. The only costs which can be excluded are those under the Construction Cost Reporting Guide (CCRG). Absent any additional information from the technical reviews, it is impossible to evaluate specific changes to base costs in these scenarios. However, they appear to be a departure from the intended value of reflecting accurate costs of construction, appear to arbitrarily exclude costs, and are potentially an embedded tax policy for industry.  Depreciation The scenarios include the introduction of depreciation of wells and pipelines, where the current assessment model uses a fixed rate of 0.67 (67%) asset value at all asset ages. The new scenarios add an age table for depreciation for pipelines and wells. The depreciation ranges from a high of 90% asset value or 75% asset value when new (depending on the scenario), to a floor of 10% asset value once fully depreciated. The asset life of depreciation is either 16 or 26 years depending the asset type and the scenario. In the absence of technical review information, and based on conversations during the review process, it appears that this new depreciation approach is based on the economic profitability of the assets. This represents a marked departure from the current regulated valuation approach, which focuses on typical wear and tear (physical depreciation) and typical technological changes over time (functional depreciation) rather than market value. These new scenarios are contrary to the principles underlying regulated assessment, and imports market value principles into the regulated assessment process. Depreciating wells and pipelines on the premise of profitability solely for the purpose of reducing assessment is one-sided, as the proposed scenarios do not include a mechanism to increase the assessment during healt hy economic times.  Land Assessment Scenarios B and C set the land component at zero to when a well has reached maximum depreciation. Scenario D introduces set land value rates based on the region and well characteristics, though the proposed values are well below the current land value ranges, which are already nominal and do not reflect market value. Land typically does not depreciate and should reflect market values, so this can only be considered an additional tax policy to benefit industry.  Other Adjustments, Statutory Factors and Depreciations 49 2020.08.18 Adopted Council Meeting Package 9 The scenarios include a range of additional adjustments, statutory factors and depreciations. Th is includes a 0.75 factor for SAGD wells, a 0.70 factor for a multi-line adjustment, a 0.10 factor for zero production, among others. Again, without technical review information provided, it appears that these adjustments are actually very specific tax reduction policy initiatives to support particular asset types, that are being embedded into the assessment model. RMA is concerned that if the additional tax policy incentives are embedded in the assessment model then there will be no mechanism to know whether the policies have achieved their objectives and no mechanism to remove them after the objectives have been achieved. This phenomenon can be seen in the large amount of historical tax initiatives that are currently embedded in the assessment model. If history repeats itself, these adjustments (which are a clear response to current market factors) will remain in the assessment mod el for decades, with no ability to dial them back when market conditions correct. Areas of Support  Base Costs - Updating As noted above, the base cost rates should reflect the typical cost to construct, or in this case drill, a well. In this spirit, RMA supports the need to regularly review and update base costs to accurately reflect changes in construction costs, technological advances, and other necessary changes. RMA would support a meaningful review process, undertaken by objective experts, and using detailed data. While RMA is hopeful this accurately describes the work conducted in the technical reviews, the work of the technical review has not been shared, so it is impossible to know what process was followed.  Changes to the Assessment Year Modifier It appears that the review will include a move to an open, transparent, specified formula and data sources for the Schedule B Assessment Year Modifier being set out in the Minister’s Guidelines. In the past, this modifier has not been transparent on how it was calculated. The inclusion of the formula, with reference to the public data sources, would increase transparency, predictability and consistency for all stakeholders. 50 2020.08.18 Adopted Council Meeting Package 10 Municipal Impacts of Proposed Changes Each of the four scenarios proposed by the Government of Alberta would significant ly reduce the overall rural municipal assessment base. This section will provide an overview of municipal fiscal impacts and potential municipal response mechanisms to the changes. It is important to note that the impacts of the scenarios vary significantly by region: a few municipalities actually benefit from the changes in some scenarios, while many lose huge amounts of assessment value and associated tax revenue. The analysis below shows average impacts as well as impact range to provide further support to the unpredictable and drastically different impacts that the changes produce across the province. Due to limitations on the data provided during the review, RMA is only able to accurately model the impacts of the change in 2021. Due to changes to asset depreciation curves, it is likely that reductions will become more severe in each year beyond 2021. The lack of a long-term impact analysis is an extremely serious flaw of the review process. Due to the more aggressive depreciation curves inserted into all models, even municipalities who are relatively unaffected by the scenarios in 2021, will see the value of assessed value of existing property decrease much more rapidly than under the current model. Unfortunately, due to the lack of data provided during the review process, it is impossible to know how significant long-term impacts will be, as this is dependent on the age and type of each municipality’s asset base. 51 2020.08.18 Adopted Council Meeting Package 11 What is known is that proceeding with such significant change with no knowledge of the l ong-term impacts it will have on the assessment base is highly concerning, which is why RMA has repeatedly called for a long-term impact analysis of the changes on both municipalities and industries prior to implementation. It is important to continue to note that the data below is for 2021 only. Overall municipal assessment base change ($) – RMA members Scenario Tax Impacts Scenario A Scenario B Scenario C Scenario D Average among all rural municipalities -126,863,993 -174,416,214 -277,155,495 -$382,073,334 Least impacted municipality +1,844,854,368 +1,510,074,086 +38,816,782 -5,088,160 Most impacted municipality -1,059,619,509 -1,258,803,514 -1,495,636,950 -2,175,007,683 While average assessment base losses worsen somewhat consistently across the four scenarios, the actual individual municipal impacts of each scenario vary significantly. While many rural municipalities may be able to adapt to an assessment base loss between $100 - $400 million, for the several in each scenario that would face losses near or exceeding $1 billion in assessment, the consequences may be much more extreme. While the dollar amount losses paint a concerning picture, an even more impactful way to consider the scenarios is by looking at the percentage of assessment lost. Overall municipal assessment base change (%) – RMA members Scenario Tax Impacts Scenario A Scenario B Scenario C Scenario D Average among all rural municipalities -14 -16 -19 -24 Least impacted municipality +16 +13 +1 -1 Most impacted municipality -52 -52 -53 -56 A major weakness of using the assessment model to support industry competitiveness is that its complexity results in widely different regional impacts of any changes. The scenarios proposed by the Government of Alberta are no different. The chart below looks at the percentage of municipalities that will experience assessment base losses in excess of 10% under each scenario, divided by RMA district. Percentage of municipalities with assessment base loss above 10% - by RMA district District Scenario A Scenario B Scenario C Scenario D 1- Foothills-Little Bow 92% 100% 100% 100% 52 2020.08.18 Adopted Council Meeting Package 12 District Scenario A Scenario B Scenario C Scenario D 2 – Central 62% 69% 85% 85% 3 – Pembina River 46% 54% 54% 77% 4 – Northern 53% 60% 73% 93% 5 – Edmonton East 77% 85% 85% 92% Overall 62% 68% 80% 88% While rural municipalities across the province are severely impacted by the proposed changes, large reductions in revenue are most widespread across all scenarios in RMA’s district one, which consists of thirteen municipalities in the far south of the province. Many of these municipalities are already suffering from unpaid taxes on oil and gas properties. The disproportionate regional impacts, and lack of mitigation strategies on the part of the Government of Alberta demonstrate the inequities built into the review process and proposed changes. The information above speaks to the severe and inequitable impacts that the proposed scenarios have on the assessment bases of rural municipalities. While this is important, to adequately understand the consequences of these reductions, it is important to consider how they will impact municipal revenues and service delivery. Because each municipality will be impacted to different extents and select different responses, the information below provides hypothetical “average” rural municipal responses based on the impacts of the various scenarios and publicly available municipal data. Potential Response Options – Average Rural Municipality Scenario A Scenario B Scenario C Scenario D Residential mill rate increase 85.78% 106.63% 148.23% 199.43% Or Non-residential mill rate increase (excluding 5:1 limits) 15.63% 19.33% 22.76% 31.89% Tax capacity shortfall due to 5:1 ratio (includes tax capacity loss still required to achieve 5:1) $4,806,050 $4,952,061 $5,093,415 $5,608,241 Or Workforce cuts to cover losses (% of total FTEs) 11.52% 14.82% 21.59% 28.82% Total rural municipal FTEs at risk 957 1,231 1,793 2,394 Or Average total expense reduction % (including capital infrastructure investment) 9.28% 10.78% 12.82% 16.24% Or 53 2020.08.18 Adopted Council Meeting Package 13 Scenario A Scenario B Scenario C Scenario D % of rural municipalities that could not cover shortfall for one year with unrestricted reserves 44.9% 40.6% 42.0% 50.7% % of rural municipalities that could not cover shortfall for two years with unrestricted reserves 60.8% 57.9% 63.7% 73.9% In reality, most municipalities will react to the loss in revenue through a combination of tax rate increases, service level reductions, and debt. However, the examples above show how significant the reductions in assessment will be for rural municipalities. More importantly, it shows the likelihood that other commercial property owners and residents will “pay the price” in subsidizing a property tax break to the oil and gas industry in the form of increased non-residential and residential tax rates or reduced services. The assessment approach for other commercial and residential properties is not being reviewed to give property owners “a break” during these challenging economic times; this manipulation of the assessment model is only being offered to the oil and gas industry. All other properties will be assessed in the same manner, and either receive a lower level of service or pay higher taxes to subsidize the municipal revenue lost from the oil and gas industry. In other words, the tax burden will simply be shifted away from the oil and gas industry and on to all other businesses and residents. Most municipalities will simply have no other choice. 54 2020.08.18 Adopted Council Meeting Package 14 Industry Impacts of Proposed Changes ***Please note – The Government of Alberta has indicated that the data used to determine tax impacts of each scenario on specific companies may not be fully accurate. As RMA must rely on the Government of Alberta to provide this level of detailed information, the conclusions below are reflective of the data provided during the review, and any inaccuracies are the result of the information provided. Both RMA and its members have a long history of supporting and collaborating with Alberta’s oil and gas industry. The final section of the report will propose an array of options to support industry competitiveness that are both fairer and more effective than manipulating the assessment model. This section will focus on evaluating the Government of Alberta’s claim that the assessment model review is intended to enhance industry competitiveness and consider the extent to which it meets this priority. “Industry competitiveness” was never defined during the review process, and the industry stakeholder representatives involved in the review (Canadian Association of Petroleum Producers [CAPP], Canadian Energy Pipelines Association [CEPA] and the Explorers and Pr oducers Association of Canada [EPAC]) provided no evidence as to how reduced property assessments would enhance competitiveness in comparison to other industry cost drivers. There was also no consideration or respect afforded by industry to the important role that municipal infrastructure and services play in supporting oil and gas industry competitiveness by providing safe and reliable access to natural resources. In addition to a lack of evidence as to the link between assessment and competitiveness, the recommended scenarios result in shockingly different outcomes for different oil and gas companies. While the overall oil and gas industry would see assessment reductions under each model, those benefits are not distributed equitably. RMA has divided the 750 oil and gas companies that own property impacted by the review into the following categories based on the overall value of their assessed assets: • Tier 1 (assessed asset value over $500 million) – 27 companies • Tier 2 (assessed asset value $100 million - $500 million) – 63 companies • Tier 3 (assessed asset value $20 million - $100 million) – 98 companies • Tier 4 (assessed asset value ($1 million - $20 million) – 227 companies • Tier 5 (assessed asset value under $1 million) – 335 companies The table below shows how companies of different sizes would be impacted by asses sment scenario D, which is favored by industry. 55 2020.08.18 Adopted Council Meeting Package 15 Industry Assessment Impacts – by Company Size – Scenario D Percent of Total firms Percent of Total Assessment Base Average Savings Percent of total savings Percent of firms with tax increases Tier 1 3.60 62.14 -$7,184,488 71.72 0 Tier 2 8.40 26.55 -$868,011 20.22 6 Tier 3 13.07 8.83 -$176,215 6.38 8 Tier 4 30.27 2.32 -$18,828 1.58 16 Tier 5 44.67 0.16 -$819 0.10 29 For comparison purposes, the impacts in the table below are for scenario B, which still has major revenue implications for municipalities but has been dismissed by industry as not meaningful in enhancing competitiveness. Industry Assessment Impacts – by Company Size – Scenario B Percent of Total firms Percent of Total Assessment Base Average Savings Percent of total savings Percent of firms with tax increases Tier 1 3.60 62.14 -$4,358,795 108.88 19 Tier 2 8.40 26.55 +$51,529 -3.00 46 Tier 3 13.07 8.83 +$49,230 -4.46 47 Tier 4 30.27 2.32 +$5,380 -1.13 40 Tier 5 44.67 0.16 +$928 -0.29 41 What is significant about both scenarios is the disproportionate benefit that the largest oil and gas companies in the province receive. In each scenario, Tier 1 is the only group of companies who receive benefits that exceed their share of the actual assessment base. In scenario D, which has the most extreme negative impacts on municipal viability, all tiers benefit, though the extent of benefits decrease as company size decreases. In scenario B, tiers 2-5, which comprise 723 of 750 companies impacted by the review, collectively face increased costs, while the 27 tier 1 companies receive huge assessment and tax relief. Additionally, in both scenarios, many of the smallest companies (tiers 4 and 5) would face assessment increases. What does this mean? Industry is arguing that scenario D is the only option to truly enhance competitiveness, and that may be true given the options developed. Scenarios A, B and C would hurt municipalities and hurt most oil and gas companies, while scenario D would decimate municipalities and provide at least modest relief to all company tiers (though again, even under scenario D, 145 companies would face assessment increases). The only groups that win in every scenario are the 56 2020.08.18 Adopted Council Meeting Package 16 largest oil and gas companies operating in Alberta, many of which have holdings worldwide and would be under no obligation to reinvest savings in the province. What this industry analysis shows is that the assessment model review is not meeting its mandate of enhancing competitiveness and supporting municipal viability. It is reducing assessments for the largest and most well-connected companies on the backs of small oil and gas producers and municipalities. RMA supports an assessment model review, but this analysis proves that the current process is inequitable. A review should focus on updating data and methodology to maintain an objective assessment system, and industry competitiveness should be address using the alternatives on the following page. 57 2020.08.18 Adopted Council Meeting Package 17 Alternative Approaches to Enhancing Industry Competitiveness Although not part of the review process, RMA conducted an analysis of alternative approaches to enhancing industry competitiveness and evaluated them based on the following five principles: Equitable in Cost Sharing Equitable in Benefits Sharing Tangibility Sustainability Transparency All activities enacted to support oil and gas competitiveness should be equitably born through a partnership between the Government of Alberta and Alberta municipalities and reflect the relative powers and financial tools available to each level of government to support industry. All activities enacted to support oil and gas competitiveness should equitably benefit companies in the oil and gas sector and not be focused on large companies to the detriment of smaller entities. Financial contributions to industry either through direct investment or tax reduction should be designed to elicit direct, observable action by industry in the form of capital investment or employment creation. Solutions cannot be solely focused on short-term gains or impacts but should put in place mechanisms that consider the potential for times of greater prosperity. Sustainability to municipalities means that revenue over the taxable life of the asset justifies infrastructure investments to support industrial development. The goals, contributions, benefits and mechanisms put in place to support industry must be reported in a manner that is understandable to provincial taxpayers and municipal ratepayers. Mechanisms have built-in means for regular review and potential revision to maintain equitability and fairness. Based on these principles, RMA analyzed 13 options (including manipulation of the assessment model ) to support industry competitiveness and assigned each a score out of five – a high score indicates a strong option based on RMA’s principles. Options and scoring were as follows: Policy Alternatives Scoring Factors Cost Sharing Benefits Sharing Tangibility Sustainability Transparency Total Score Tax and Royalty Forgiveness Assessment Manipulation (Current Review) 1 2 1 1 1 1.2 Municipal Tax Rebate Policy 1 3 1 2 3 2.0 Tax Rebate Policy on New Investment 3 3 4 2 3 3.0 Education Property Tax Requisition Adjustments 5 3 1 3 3 3.0 Oil & Gas Royalties Reduction 5 3 2 3 4 3.2 Additional Mill Rate Categories 3 4 1 3 3 2.8 Property Tax Incentives Expansion 2 2 4 1 4 2.6 58 2020.08.18 Adopted Council Meeting Package 18 Mill Rate Ratio Adjustment 2 3 1 2 3 2.2 Downtime and Production Tax Rebates 2 2 2 2 1 1.8 Income Tax Reduction / Tax Credits 5 4 5 3 4 4.2 Direct Incentives Environmental Remediation 5 2 4 4 3 3.6 Incentive Based Grants / Shared Investment 4 4 5 4 4 4.2 Direct Infrastructure Investment Program 5 3 4 4 4 4.0 What this analysis shows is that making changes to the assessment model to support industry competitiveness during a difficult economic time is a poor option by all measures, and there are many other approaches the province could take that would better support competitiveness. Changing the assessment model is inequitable, as it places the entire burden for industry savings onto municipalities. It is also inequitable in how the benefits are distributed, as the section above demonstrates that large companies receive significant assessment reductions, while assessment will increase for many small companies. The approach lacks tangibility in that there is no link between any cost savings provided to industry and capital investment or job creation in Alberta. The approach is also not sustainable as the aggressive depreciation curves proposed will have long-term impacts on municipalities that are even more serious than the immediate impacts summarized above. Finally, the approach is not transparent as any industry incentives are “baked” into the assessment model in a way that is not easily visible, and very difficult to change or remove when they are no longer required. On the other hand, many alternatives in the table above score much higher in all principle categories. For example, incentive based grants/shared investments (in which government provides financial support based on a company meeting specific targets or committing to particular levels of investment) score highly in all categories, as it fairly shared the cost burden and benefits, provides a direct link between the incentive given and measurable actions taken on the part of the company, is sustainable in the sense that the incentive would not be provided if the company’s action did not lead to a long-term benefit to the province, and is highly transparent as the incentive is only provided based on the co mpany undertaking a specific action. RMA’s full submission to the Government of Alberta includes a complete analysis of all the options above. What is important for members to consider is that the province’s stated goal of using the assessment system for industry competitiveness fails in meeting every principle identified by RMA as characteristic of an effective industry competitiveness enhancement tool. RMA can provide members with more detailed information on the tools and analysis upon request. 59 2020.08.18 Adopted Council Meeting Package August 18, 2020 Assessment Model Review Presentation 60 2020.08.18 Adopted Council Meeting Package Item 1 93% Item 2 7% Item 1 91% 91 9% Item 1 80% Item 2 20% Item 1 86% 14 % Each scenario proposed reduces assessment values across rural Alberta. GOVERNMENT OF ALBERTA PROPOSED MODELS 7%14% 9%>20% Scenerio A Scenario B Scenario C Scenario D 61 2020.08.18 Adopted Council Meeting Package CONCERNS OVER PROPOSED MODELS Changes to regulated Oil & Gas property assessment will compromise: •the objectivity of the regulated assessment model, and, •the competitiveness of many small oil and gas companies. •Options were developed in secrecy, utilizing a technical review that has not been released to municipalities. 62 2020.08.18 Adopted Council Meeting Package Proposed changes provide one-sided benefit, with no mechanism to ensure reinvested cost savings or enhancement to Alberta's oil and gas competitiveness. There is no mechanism for increases when the economy improves. CONCERNS OVER PROPOSED MODELS ? 63 2020.08.18 Adopted Council Meeting Package Small and locally-owned companies will, on average, receive significantly less benefit than larger companies, and in many cases will face significant assessment increases meaning that they will pay more in taxes than they currently do. CONCERNS OVER PROPOSED MODELS 64 2020.08.18 Adopted Council Meeting Package Proposed Life Span: 15-20 years Actual Life Span: 40-60 years Each scenario focuses only on the first year of implementation. Steeper and artificial depreciation will make impacts more severe as assets age. CONCERNS OVER PROPOSED MODELS 65 2020.08.18 Adopted Council Meeting Package CONCERNS OVER PROPOSED MODELS Municipal infrastructure and services play an important role in supporting oil and gas industry competitiveness by providing safe and reliable access to natural resources. 66 2020.08.18 Adopted Council Meeting Package The estimated impacts of the proposed assessment model scenarios: IMPACTS SPECIFIC TO KNEEHILL COUNTY Scenario A Scenario B Scenario C Scenario D ASSESSMENT BASE LOSS TAX $ LOST REVENUE % LOST -12%-14%-17%-24% $3.5 MILLION $4.2 MILLION $4.9 MILLION $7.3 MILLION -11%-13%-16%-22% 67 2020.08.18 Adopted Council Meeting Package IMPACTS SPECIFIC TO KNEEHILL COUNTY INCREASE RESIDENTIAL TAX RATES INCREASE NON-RESIDENTIAL TAX RATES REDUCE EXPENSES Scenario D 26% 52% 384% Scenario C 18% 31% 268% Scenario B 16% 25% 227% Scenario A 13% 20% 191% The potential impact of the proposed changes is alarming for rural municipalities. Options to mitigate the impacts include: 68 2020.08.18 Adopted Council Meeting Package Impacts Specific to Kneehill County The average rural municipality manages 1955 kilometres of gravel roads and over 120 bridges, most of which exist to provide industry access to natural resources and markets. Kneehill County has over 2400 kilometers of roads to maintain, and 213 bridge structures. If the County were to double current residential and farmland taxes, an additional $2.8 Million in revenue would be achieved. 69 2020.08.18 Adopted Council Meeting Package Impacts Specific to Kneehill County If Kneehill County were to lose $7.3 Million in revenue, the County could increase residential and farmland taxes by 40% and business taxes by 44% and would still face a loss of over $1 Million dollars. If the County wanted to recoup the losses completely, taxes would have to increase almost 50% for all residents, farms, and businesses within the County. If the County were to recoup this just from residents and farms to help business, tax increases for 2021 would be approaching 300%. 70 2020.08.18 Adopted Council Meeting Package Impacts Specific to Kneehill County If the County was able to make service cuts of $3.5 Million, residents, farms, and businesses would still face tax increases of 35-40% starting next year. To make this worse, given the artificial depreciation of Oil and Gas Facilities over just 16-26 years means that additional revenue would be lost in future years, necessitating additional service level decreases and tax increases. 71 2020.08.18 Adopted Council Meeting Package The proposed changes would impact our urban partners with a loss of community funding and reduced services from Kneehill County. IMPACT ON URBAN PARTNERS 72 2020.08.18 Adopted Council Meeting Package Cuts made by the Government of Alberta in 2020 have resulted in a reduction of 7% of total County tax revenues, a loss of grant funding, and additional costs to be paid for by the municipality. CURRENT CHALLENGES Loss from Shallow Gas Producers $1.9 M $500,000 Reduction in Provincial Grants $160,000 In added Police Costs 73 2020.08.18 Adopted Council Meeting Package $1.485 M CURRENT CHALLENGES Kneehill County has already lost significant revenue since 2016 due to industry tax write-offs and arrears. Anticipated uncollectable taxes in 2020 due to bankruptcy. -$900,0002019 $500,000 $1.8 M $3.3 M ARREARS 2018 2016 & 2017 2020 $ 767,469 WRITE-OFFS 2019 74 2020.08.18 Adopted Council Meeting Package •The average loss in assessment for rural municipalities:14% to 24%. •Many municipalities will struggle to balance their budget. •These scenarios do not help Kneehill County residents or business put the economy back on track. •Other commercial property owners and residents will “pay the price.” •The tax burden will be shifted on to all other businesses and residents. Most municipalities will simply have no other choice. IN SUMMARY 75 2020.08.18 Adopted Council Meeting Package Municipalities across the Province have already engaged the Provincial Government in a number of ways. Residents are encouraged to also contact MLAs to voice concern over the Province’s proposals. MLA Nathan Cooper Phone: 403.556.3132 780.427.2464 Email:OldsDidsbury.ThreeHills@assembly.ab.ca Minister of Municipal Affairs Kacee Madu Phone: 780.427.3744 Email:minister.municipalaffairs@gov.ab.ca What Can Municipalities and Residents Do? 76 2020.08.18 Adopted Council Meeting Package Thank You 77 2020.08.18 Adopted Council Meeting Package August 18, 2020 Assessment Model Review Presentation 78 2020.08.18 Adopted Council Meeting Package Item 1 93% Item 2 7% Item 1 91% 91 9% Item 1 80% Item 2 20% Item 1 86% 14 % Each scenario proposed reduces assessment values across rural Alberta. GOVERNMENT OF ALBERTA PROPOSED MODELS 7%14% 9%>20% Scenerio A Scenario B Scenario C Scenario D 79 2020.08.18 Adopted Council Meeting Package CONCERNS OVER PROPOSED MODELS Changes to regulated Oil & Gas property assessment will compromise: •the objectivity of the regulated assessment model, and, •the competitiveness of many small oil and gas companies. •Options were developed in secrecy, utilizing a technical review that has not been released to municipalities. 80 2020.08.18 Adopted Council Meeting Package Proposed changes provide one-sided benefit, with no mechanism to ensure reinvested cost savings or enhancement to Alberta's oil and gas competitiveness. There is no mechanism for increases when the economy improves. CONCERNS OVER PROPOSED MODELS ? 81 2020.08.18 Adopted Council Meeting Package Small and locally-owned companies will, on average, receive significantly less benefit than larger companies, and in many cases will face significant assessment increases meaning that they will pay more in taxes than they currently do. CONCERNS OVER PROPOSED MODELS 82 2020.08.18 Adopted Council Meeting Package Proposed Life Span: 15-20 years Actual Life Span: 40-60 years Each scenario focuses only on the first year of implementation. Steeper and artificial depreciation will make impacts more severe as assets age. CONCERNS OVER PROPOSED MODELS 83 2020.08.18 Adopted Council Meeting Package CONCERNS OVER PROPOSED MODELS Municipal infrastructure and services play an important role in supporting oil and gas industry competitiveness by providing safe and reliable access to natural resources. 84 2020.08.18 Adopted Council Meeting Package The estimated impacts of the proposed assessment model scenarios: IMPACTS SPECIFIC TO KNEEHILL COUNTY Scenario A Scenario B Scenario C Scenario D ASSESSMENT BASE LOSS TAX $ LOST REVENUE % LOST -12%-14%-17%-24% $3.5 MILLION $4.2 MILLION $4.9 MILLION $7.3 MILLION -11%-13%-16%-22% 85 2020.08.18 Adopted Council Meeting Package IMPACTS SPECIFIC TO KNEEHILL COUNTY INCREASE RESIDENTIAL TAX RATES INCREASE NON-RESIDENTIAL TAX RATES REDUCE EXPENSES Scenario D 26% 52% 384% Scenario C 18% 31% 268% Scenario B 16% 25% 227% Scenario A 13% 20% 191% The potential impact of the proposed changes is alarming for rural municipalities. Options to mitigate the impacts include: 86 2020.08.18 Adopted Council Meeting Package Impacts Specific to Kneehill County The average rural municipality manages 1955 kilometres of gravel roads and over 120 bridges, most of which exist to provide industry access to natural resources and markets. Kneehill County has over 2400 kilometers of roads to maintain, and 213 bridge structures. If the County were to double current residential and farmland taxes, an additional $2.8 Million in revenue would be achieved. 87 2020.08.18 Adopted Council Meeting Package Impacts Specific to Kneehill County If Kneehill County were to lose $7.3 Million in revenue, the County could increase residential and farmland taxes by 40% and business taxes by 44% and would still face a loss of over $1 Million dollars. If the County wanted to recoup the losses completely, taxes would have to increase almost 50% for all residents, farms, and businesses within the County. If the County were to recoup this just from residents and farms to help business, tax increases for 2021 would be approaching 300%. 88 2020.08.18 Adopted Council Meeting Package Impacts Specific to Kneehill County If the County was able to make service cuts of $3.5 Million, residents, farms, and businesses would still face tax increases of 35-40% starting next year. To make this worse, given the artificial depreciation of Oil and Gas Facilities over just 16-26 years means that additional revenue would be lost in future years, necessitating additional service level decreases and tax increases. 89 2020.08.18 Adopted Council Meeting Package The proposed changes would impact our urban partners with a loss of community funding and reduced services from Kneehill County. IMPACT ON URBAN PARTNERS 90 2020.08.18 Adopted Council Meeting Package Cuts made by the Government of Alberta in 2020 have resulted in a reduction of 7% of total County tax revenues, a loss of grant funding, and additional costs to be paid for by the municipality. CURRENT CHALLENGES Loss from Shallow Gas Producers $1.9 M $500,000 Reduction in Provincial Grants $160,000 In added Police Costs 91 2020.08.18 Adopted Council Meeting Package $1.485 M CURRENT CHALLENGES Kneehill County has already lost significant revenue since 2016 due to industry tax write-offs and arrears. Anticipated uncollectable taxes in 2020 due to bankruptcy. -$900,0002019 $500,000 $1.8 M $3.3 M ARREARS 2018 2016 & 2017 2020 $ 767,469 WRITE-OFFS 2019 92 2020.08.18 Adopted Council Meeting Package •The average loss in assessment for rural municipalities:14% to 24%. •Many municipalities will struggle to balance their budget. •These scenarios do not help Kneehill County residents or business put the economy back on track. •Other commercial property owners and residents will “pay the price.” •The tax burden will be shifted on to all other businesses and residents. Most municipalities will simply have no other choice. IN SUMMARY 93 2020.08.18 Adopted Council Meeting Package Municipalities across the Province have already engaged the Provincial Government in a number of ways. Residents are encouraged to also contact MLAs to voice concern over the Province’s proposals. MLA Nathan Cooper Phone: 403.556.3132 780.427.2464 Email:OldsDidsbury.ThreeHills@assembly.ab.ca Minister of Municipal Affairs Kacee Madu Phone: 780.427.3744 Email:minister.municipalaffairs@gov.ab.ca What Can Municipalities and Residents Do? 94 2020.08.18 Adopted Council Meeting Package Thank You 95 2020.08.18 Adopted Council Meeting Package 1 Assessment Model Review Alberta’s assessment model is intended to provide a means for all properties in the province to be assigned an objective annual value for the purposes of property taxation and to inform municipal grants and requisitions. While most properties are assessed based on their market values, designated industrial properties such as wells and pipelines are assessed based on several regulated factors linked to depreciation, size, materials, etc. By attempting to use t he assessment system to enhance industry competitiveness, the 2020 review and subsequent changes to how these regulated properties are assessed has compromised the objectivity of the regulated assessment model, and will result in serious fiscal impacts to municipalities, while actually compromising the competitiveness of many small oil and gas companies. What is RMA’s position on the role of Alberta’s assessment system? • Alberta’s assessment model is intended to provide an objective and data-driven method to valuing properties in the province. • Any changes to the regulated assessment models should be based on new information, new methodology, and accurately assessing new technology and equipment. • Alberta’s assessment system should not be modified or amended to address short-term challenges of a specific industry or property type. • Tax exemption policies should not be built into the assessment system. Such policies should be implemented in a transparent and targeted manner. What are the risks and challenges associated with using the regulated assessment system to enhance industry competitiveness? • The regulated assessment model is highly complex and not designed to be used to provide targeted support to specific industries or property types. As such, any attempt s at targeted industry support through assessment manipulation will have unintended impacts on both property owners and municipalities. • “Ability to pay” is not a factor in the assessment process for any regulated and non - regulated property in Alberta, and should not be built into the model for wells, pipelines, and other oil and gas equipment. This should be addressed through other provincial policy tools. 96 2020.08.18 Adopted Council Meeting Package 2 • Manipulating the assessment system to support industry competitiveness will have a wide range of impacts on municipal assessment values, which affect municipal revenues, grant distribution, requisition calculations, and will have both local and regional impacts across Alberta. • A reduction in assessment will force municipalities to make a range of revenue-generation and spending changes, including some combination of raising tax rates on residential and non - residential property classes, reducing service levels, revising or cancelling intermunicipal agreements, or potentially facing non-viability. The actual impacts of the proposed changes will vary widely by municipality. • There is no mechanism to require the oil and gas industry re -invest any cost savings received through changes to the assessment model in Alberta in the form of job creation and/or capital investment. What is RMA’s position on the outcomes of the 2020 assessment model review for regulated oil and gas properties? • The final scenarios recommended to provincial ministers based on the review process will have severe negative impacts on rural municipalities in the form of reduced assessment values and taxation revenues. • The final scenarios recommended to provincial ministers based on the review process have not been adequately evaluated in relation to enhancing industry competitiveness and supporting municipal viability, which the Government of Alberta identified as the two review priorities. • The final scenarios recommended to provincial ministers based on the review process will have widely different impacts on municipalities in different regions of the province. Municipalities that primarily host older oil and gas infrastructure will be much more negatively impacted than municipalities that host newer oil and gas infrastructure. • The data used to develop the final scenarios recommended to provincial decision-makers is incomplete, as it is based on only one year of impacts. Due to the significant changes to depreciation curves used in each scenario, the multi-year impacts of the changes will be much more impactful and must be considered in a final decision on changes to the assessment model. • The final scenarios recommended to provincial ministers based on the review process will have significantly different impacts on oil and gas companies of different sizes. The largest oil and gas companies operating in Alberta will benefit significantly, while the smallest oil and gas companies will, in many cases, face significantly higher assessments. 97 2020.08.18 Adopted Council Meeting Package 3 How will the outcomes of the 2020 assessment model review impact municipal sustainability? • Municipalities rely on fair, objective and consistent property assessment system to adequately plan and budget. • Under the four scenarios proposed by the Government of Alberta, Alberta municipalities will lose between $109 million and $291 million in tax revenue in 2021, with likely increases each year as assessable property depreciates. • Under the scenario favored by the oil and gas industry, the average rural municipality will lose over 12% of its revenues in 2021, and 10 municipalities will lose over 20% of their revenues. • Municipalities have limited tools to generate revenue. Significantly reducing property assessments will force municipalities to increase non-residential and residential tax rates, reduce service levels, eliminate staff positions, and/or consider dissolution. A rural dissolution would have significant cost and service implications, as the average rural municipality manage s 1955 kilometres of road over 120 bridges, most of which exist to provide industry access to natural resources and markets. • Industry has formally requested that municipal tax rates be frozen for non -residential properties. This, along with the changes to the assessment model favored by industry, would require municipalities to raise their residential tax rate by an average of 199% to offset revenue losses. • Including capital and infrastructure investment, the average municipality would be required to reduce expenses by over 16% to offset revenue losses in the oil and gas industry’s preferred scenario. • When combined with increased policing costs, reduced grant funding, and COVID -19-related property tax deferrals, many rural municipalities will lack the ab ility to adapt to the revenue reductions that will be the result of the scenarios proposed by the Government of Alberta. How will the outcomes of the 2020 assessment model review impact oil and gas industry competitiveness? • Throughout the review process, no data or information linking assessment reductions to competitiveness enhancements was provided by industry stakeholders or the Government of Alberta. • Although the oil and gas industry as a whole will receive modest cost reductions through the reduction of 98 2020.08.18 Adopted Council Meeting Package 4 property assessment, there is absolutely no requirement or incentive that will ensure any savings benefit Alberta in the form of increased industry investment and job creation. • Based on the Government of Alberta’s proposed scenarios, the largest oil an d gas companies operating in the province will receive a disproportionate share of benefits from changes to the assessment model. Small and locally-owned companies will, on average, receive significantly less benefit, and in many cases will face significant assessment increases. • Many of the companies that will benefit most from the assessment model review have holdings worldwide and are under no obligation to reinvest savings in Alberta. • Under the proposed changes to the assessment model favored by industry, over one-third of all oil and gas companies would face assessment increases, while the largest oil and gas companies would receive benefits that greatly exceed their share of the assessment base. What alternatives would better enhance oil and gas industry competitiveness while supporting municipal sustainability? • There are a wide variety of tax and policy tools available to enhance oil and gas industry competitiveness. • Any tool to enhance industry competitiveness should be evaluated on five principles: o Equitable in cost-sharing – are the costs of supporting industry shared equitably among different levels of government? o Equitable in benefits-sharing – are the benefits of an incentive or support distributed equitably within industry and do they reach the sub-sets of industry that need it the most? o Tangibility - Do the benefits of the tool lead to direct, observable action by industry that provides an overall provincial benefit (capital investment, job creation, etc.)? o Sustainability – Does the tool prioritize long-term growth and investment for industry and is it adjustable or cancellable if it is on longer needed? o Transparency – Is the tool understandable to taxpayers? Are the province-wide benefits easily observable? Does the tool have a built-in means for regular review and modification? Contact Gerald Rhodes Executive Director gerald@RMAlberta.com 99 2020.08.18 Adopted Council Meeting Package 5 Tasha Blumenthal Director of External Relations and Advocacy tasha@RMAlberta.com Wyatt Skovron Senior Policy Advisor wyatt@RMAlberta.com 100 2020.08.18 Adopted Council Meeting Package Kneehill Community Resource Program 779 – 2nd Street, North, P.O. Box 400, Three Hills Alberta, T0M 2A0 Phone: 403.443.3800 August 11, 2020 Dear Kneehill County Council: Re: Kneehill Community Resource Program 2019/2020 Final Report We are pleased to send you a copy of the 2019/2020 Final Report for the Kneehill Community Resource Program. A detailed long version of the report is available upon request. This report represents the 32nd year the program has been operating in the Kneehill region. As you will discover, the Family Resource Workers continue to assist a large number of children, youth, families and adults with social/emotional support, preventive education and information/referral. Once again, mental health continued as the primary issue for ongoing and single session supports for children and youth in 2019/20. For adults, parenting strategies was the most common reason they connected with the Family Resource Workers. Unfortunately, due to Children’s Services withdrawing their funding from the partnership, the Kneehill Community Resource Program was terminated June 30, 2020. Kneehill Regional Family and Community Support Services and Golden Hills School Division are working on a new service to support Kneehill area children, youth and families. If you have any questions or concerns arising from this document, please contact me at 403.443.3800 or shelley@krfcss.com Thank you for your time and involvement with the Kneehill Community Resource Program. Sincerely, Shelley Jackson-Berry, Director Kneehill Regional Family and Community Support Services for the Kneehill Community Resource Program Management Team 101 2020.08.18 Adopted Council Meeting Package 2019-2020 FINAL REPORT WORKING TOGETHER TO BUILD A BETTER COMMUNITY K N E E H I L L C O M M U N I T Y R E S O U R C E P R O G R A M 102 2020.08.18 Adopted Council Meeting Package TABLE OF CONTENTS ABOUT US 2 STATS & NUMBERS 3 IMPACT & REACH 5 PREVENTIVE EDUCATION 6 OUR PARTNERS 8 FINANCIAL STATEMENT 9 THANK YOU 10 103 2020.08.18 Adopted Council Meeting Package The Kneehill Community Resource Program (KCRP), a grassroots, locally driven program, terminated June 30, 2020 after 32 years of successful service delivery. Central Alberta Children's Services, a program partner, severed funding March 31, 2020. Consequently, Kneehill Regional Family and Community Support Services (KRFCSS) increased funding contributions to ensure temporary program viability. KRFCSS's timely and driven insight along with support from Golden Hills School Division, made it possible for continued short-term program support, which proved to be of immeasurable value with the impacts of the COVID-19 pandemic on Kneehill area lives and livelihoods. At the time of the KCRP inception, area community members banded together to address the rise in local suicide rates and the lack of accessible prevention, early intervention, and support services for residents of the Kneehill area. The KCRP was comprised of three Family Resource Worker (FRW) positions, with office locations in all Golden Hills School Division (GHSD) schools in Kneehill County and the KRFCSS office in Three Hills. The year-round program served all Kneehill area residents, regardless of age, with the main focus on children/youth and their families. The KCRP's three core objectives were to improve well-being of all Kneehill residents through: social and emotional support; preventive education; and information, networking and referral. Mental health continued as the primary issue for children and youth (28%), but showed a decrease from 2018-2019 (40%). Mental health concerns also presented as a main issue in single sessions with both children (41%) and adults (35%). Parenting strategies remained as the primary issue for adults (67%). Peer relations/social skills was also a significant concern for children in both ongoing (20%) and single sessions (21%). Due to extenuating circumstances related to staff medical leave and the coronavirus pandemic, our return rate for ongoing client surveys was low this year at 57%. ABOUT US 2019 - 2020 TRENDS 02 | KCRP 2019 - 2020 Final Report 104 2020.08.18 Adopted Council Meeting Package STATS & NUMBERS 72 SINGLE SESSION ONE-ON-ONE CLIENTS 03 | KCRP 2019 - 2020 Final Report 125 ONGOING  ONE-ON-ONE CLIENTS 79 OUTGOING  REFERRALS 207 TEACHER  CONSULTATIONS 7 FAMILY & STAFF CONSULTATIONS 105 2020.08.18 Adopted Council Meeting Package IMPACT & REACH 04 | KCRP 2019 - 2020 Final Report Top Child & Youth Issues Top Adult Issues ONGOING: Parenting Strategies  SINGLE SESSION: Parenting Strategies  ONGOING: Mental Health  SINGLE SESSION: Mental Health  87% of clients reported bein g better able to deal with th e i r situation after meeting with the FRW 95% of clients reported an inc r e a s e d awareness of supports a n d services after meeting wi t h the FRW "FRW i s a n a b s ol ut e d eli g ht t o w or k with, s o v er y c ari n g a n d s u p p orti v e." -Clie nt r e s p o n s e "W e r e a l l y a p p r e c i a t e d F R W ’ s en e r g y , r e s o u r c e s a n d p o s i t i v e a t t i t u d e . Sh e w a s v e r y r e a s s u r i n g a n d a b l e t o hel p u s i n o u r t i m e o f n e e d . " -Cl i e n t r e s p o n s e 106 2020.08.18 Adopted Council Meeting Package 05 | KCRP 2019 - 2020 Final Report "We were so thankful our son could see FRW! She has helped him so much after a year of bullying. He seems like himself again, he has more confidence and he’s not as scared." -Client response "We have seen amazing growth in [child]. Your care for him is very evident right from the first day. He has really loved being with you and learning from you. Thanks for your time." -Client response "FRW has been meeting with my daughter to help support her through grief of losing loved ones. She has been exceptional at helping my daughter work through these difficult times and supporting me as a mom and helping me to better help my child. I am so grateful for FRW and the work she does. [...] Thank you so much for this program." -Client response 107 2020.08.18 Adopted Council Meeting Package 0 25 50 75 Classroom Presentations Guest Speakers Well-Being Displays Groups Early Years Presentations PREVENTIVE EDUCATION 06 | KCRP 2019 - 2020 Final Report 7,212 people reached 90% of people reported an increase in knowledge 22 Community Events 3,652 Community Members Reached "I learned lots of new things about the subject I didn't know before." -Student response 108 2020.08.18 Adopted Council Meeting Package 07 | KCRP 2019 - 2020 Final Report 100% of students reported they were better able to get along with others after participating in small group sessions "Extremely well done! Gave me some inspiration." -Student response "Thank you for teaching me about the electronic smoking devices. I loved learning about it, thanks so much." -Student response "I loved the program and I am thankful that you came in to talk to all of us." -Student response "This was a fantastic class to learn more about empathy." -Student response 109 2020.08.18 Adopted Council Meeting Package OUR PARTNERS 08 | KCRP 2019 - 2020 Final Report IN APPRECIATION OF Kneehill Regional Family & Community Support Services Golden Hills School Division Central Alberta Children's Services Accredited Supports | Alberta Health Services Alberta Health Services - Addiction & Mental Health Area Churches | Area Food Banks | Area Municipalities Central Alberta Sexual Assault Support Centre Children's Rehabilitation Services | Early Childhood Service Providers Golden Prairie Parent Link | Healthy Families | Kneehill Community Coordinator Kneehill & Family Marriage Counselling | Kneehill KidSport | Royal Canadian Mounted Police Victim's Services | Wheatland Crisis Society of our partners report that they have a positive working relationship with the Kneehill Community Resource Program As FRWs, we are especially grateful for the partner support and collaboration provided. Our work together has resulted in positive outcomes for Kneehill area children, adults, families and community. 100% 110 2020.08.18 Adopted Council Meeting Package FINANCIAL OVERVIEW JULY 1, 2019 - JUNE 30,2020 09 | KCRP 2019 - 2020 Final Report REVENUE ACTUAL Golden Hills School Division...........................................................$45,000.00 Central Alberta CS.........................................................................$66,943.00 Kneehill Regional FCSS ................................................................$108,000.00 Additional Funding............................................................................$15,717.01 Total Revenue $235,660.01 EXPENDITURES Salaries, CPP, EI, WCB, Group Benefits........................................$218,402.64 Staff Travel, Mileage.........................................................................$3,089.25 Prof. Dev./In Service.........................................................................$3,093.99 Telephone............................................................................................$850.00 Public Education.................................................................................$1,162.50 Advertising............................................................................................$185.73 Audit/Accounting..............................................................................$7,132.24 Insurance..............................................................................................$683.21 Printing & Stationary............................................................................$839.70 Resources............................................................................................$220.75 Total Expenditures $235,660.01 TOTALS Total Revenue..............................................................................$235,660.01 Total Expenditures.......................................................................$235,660.01 SURPLUS (DEFICIT) $0.00 111 2020.08.18 Adopted Council Meeting Package Thank you Kneehill area residents for making all of our positive outcomes and achievements possible this final year. The support provided by our funders: Kneehill Regional Family and Community Support Services, Golden Hills School Division, and Central Alberta Children's Services has been greatly appreciated. Unfortunately, due to partner funding changes, the Kneehill Community Resource Program terminated June 30, 2020. New, altered services and supports will be delivered to Kneehill area children, youth and families in the near future. Thank you Kneehill for the wonderful 32 years of service! THANK YOU! KNEEHILL COMMUNITY RESOURCE PROGRAM PO Box 400 Three Hills, AB T0M 2A0 Central Office Contact Number: 403-443-3800 10 | KCRP 2019 - 2020 Final Report 112 2020.08.18 Adopted Council Meeting Package REQUEST FOR DECISION AGENDA ITEM # 12.0 Page 1 of 1 Version: 2020-01 Subject: Council Follow-up Action List Meeting Date: Tuesday, August 18, 2020 Presented By: Mike Haugen, CAO Link to Strat Plan: Level of Service Recommended Motion: That Council receive the report regarding the Council Follow-up Action List for information, as presented. Background/ Proposal To request Council’s acceptance of the Council Follow-Up Action List. Discussion/ Options/ Benefits/ Disadvantages: Please find attached the Council Follow-Up Action List. The Council Follow-up Action list is a list of items from Council meetings that require follow-up. This document is regularly updated after each Council meeting. Financial Implications: N/A Council Options: 1. Receive the report regarding the Council Follow-up Action List for information. 2. Council provide further direction or required changes/amendments. Recommended Engagement: ☒ Directive Decision (Information Sharing-One way communication) Goal: To educate and inform citizens Tools: ☒ Individual Notification or ☒ Public Notification ☐ Consultative Decision (Consulting the Public – Two way communication) Goal: To seek feedback, test ideas, develop concepts and collaborative solutions Tools: ☐ Public Hearing ☐ Open House ☐ Focus Group ☐ Other- ☐ Collaborative Decision (Active Participation- Share or delegate decision making) Goal: To share or delegate decision making Tools: ☐ Participatory Decision Making ☐ Inter-Municipal Agreement ☐ Other- Attachments: August 18, 2020 Council Follow-Up Action List Follow-up Actions: Update Action List and provide updated Council Follow-Up Action List at the next Council meeting. CAO Approval: Mike Haugen, Chief Administrative Officer 113 2020.08.18 Adopted Council Meeting Package Meeting Date Motion #Description/Motion Action Required Assigned To Due Date Status 25-Jun-19 302/19 Councillor Penner moved that Council move to direct administration to pursue the easement regarding the Three Hills Creek Area Structure Plan.Planning Department Easement not Successful. Back on August Agenda 14-Jan-20 27/20 Deputy Reeve McGhee moved that Council authorize the funds realized from the sale of surplus equipment located on the property located at SE 15-28-22 W4M be transferred to the Building Reserve. Tender not successful. Will reassess and offer equipment for sale in different format 11-Feb-20 49/2020 Deputy Reeve McGhee moved that administration submit an application under the Provincial Education Requisition Credit (PERC) for Uncollectable Education Property Taxes on Oil and Gas Properties. In Progress; the application intake for this grant is not until January 2021. 10-Mar-20 139/2020 Councillor King moved to amend the commencement and completion dates for the Badlands Motorsport Resort Development Agreement. Applicant will be requesting another extension 24-Mar-20 169/2020 Deputy Reeve McGhee moved that Council direct administration to bring back the Procedural Bylaw for revision immediately following the conclusion of the COVID-19 event. On hold until COVID-19 is over 14-Apr-20 189/2020 Councillor King moved to direct administration to pursue the road closure and consolidation of a portion of Township Road 28-4, which is an undeveloped road allowance adjacent to the south end of Horseshoe Canyon (more specifically the SW-27- 28-21-W4), and road plan 834 LK into descriptive plan 091 0342, Block 1, Lot 2.Completed Completed – now part of 302/2020 & 303/2020 14-Apr-20 190/2020 Councillor Christie moved to direct administration to pursue the road closure and consolidation of a portion of Range Road 26-0, which is an undeveloped road allowance adjacent to the Keiver’s Lake Campground. Surveyor has been notified to proceed 09-Jun-20 265/2020 Councillor Penner moved that Council directs administration to apply for the Municipal Asset Management Program grant opportunity from the Federation of Canadian Municipalities’ to be utilized for asset management systems development.Completed The grant application has been submitted. 23-Jun-20 277/2020 Councillor King moved that Council directs administration to move forward with day use washroom facility with small retail/café space as approved in the 2020 budget.In Progress 23-Jun-20 278/2020 Councillor Penner Council directs administration to move forward with infrastructure changes as approved in the 2020 budget to accommodate charge parking implementation for 2021 season.In Progress 23-Jun-20 279/2020 Deputy Reeve McGhee moved that Council directs Administration to develop a Terms of Reference for Council’s consideration to form a focused task force for the development Horseshoe Canyon, utilizing a third party to act as a facilitator.Completed In Progress 23-Jun-20 280/2020 Councillor King moved that Council directs Administration to actively pursue further details on a partnership opportunity with the Province for Bleriot Ferry Campground and Tolman West Campground. Waiting for Province to release details likely Fall 2020 23-Jun-20 284/2020 Councillor King moved that Council host two Discovery Fair Ratepayer Evening events in 2020 to be scheduled based on relaxation of the COVID-19 restrictions. In Progress 23-Jun-20 287/2020 Deputy Reeve McGhee moved to approve the cancellation of 2019 taxes in the amount of $125.65 for Roll 30211533000 and the 2020 taxes (estimated at $130.00) as per the directive from the Province regarding the Grants in Place of Taxes program.Completed Council Action Items 114 2020.08.18 Adopted Council Meeting Package Meeting Date Motion #Description/Motion Action Required Assigned To Due Date Status Council Action Items 21-Jul-20 297/2020 Deputy Reeve McGhee moved that Council approve 50% cost sharing with owner/developer Dave and Ruth Stewart in the amount of $7,248.10 for the development of the undeveloped road allowance Township Road 29-3A to access a sub-divided parcel situated out of North East 18-29-23-W4M, with funds coming from the operating budget.Completed 21-Jul-20 298/2020 Councillor King moved that Council approve as presented, Policy #13-6-7, Gravel Stock Pile Leases.Completed 21-Jul-20 299/2020 Councillor Keiver moved that Council approve as presented, Policy #13-23-4, Sale, Lease or Rental of County Road Allowances.Completed 21-Jul-20 300/2020 Councillor Christie moved that Council approve as presented, Policy #13-25, Seeding Roadsides.Completed 21-Jul-20 301/2020 Deputy Reeve McGhee moved that Council move to set a Public Hearing for Land Use Bylaw 1808, to be held on September 8, 2020 at 10:00 a.m., as per Section 692(1)(e) of the Municipal Government Act. On the September 8, 2020 Agenda 21-Jul-20 302/2020 Councillor Christie moved that Council move first reading of Bylaw 1823 to pursue the road closure and consolidation of a portion of Township Road 28-4, which is an undeveloped road allowance adjacent to the south end of Horseshoe Canyon (more specifically the SW-27-28-21-W4), and road plan 834 LK into descriptive plan 091 0342, Block 1, Lot 2.In Progress 21-Jul-20 303/2020 Deputy Reeve McGhee moved that Council set a public hearing to be set for Bylaw 1823 for August 18, 2020 at 10:00 a.m. as per Section 22 of the Municipal Government Act. On the August 18, 2020 Agenda 21-Jul-20 304/2020 Councillor Penner moved that Council approve the Terms of Reference for Horseshoe Canyon Focus Group, as presented.Completed 21-Jul-20 305/2020 Councillor King moved that Council accepts the Kneehill Regional Emergency Management Agency report for information as presented.Completed 21-Jul-20 306/2020 Councillor King moved that the 2020 Tax Sale Public Auction be held on Thursday, October 15, 2020 at 2 pm in the Kneehill County Administration Building.Completed 21-Jul-20 307/2020 Deputy Reeve McGhee moved that the balance of 2018 & 2019 property taxes in arrears in the amount of $219,274.66 be expensed and cancelled on rolls 30220531300, 31250331100, 31252010100, 31253031400, 31253040900, 31253231300, 32261210700, 32261920500, 32261941500, 32262831300, 32262841600, 32263010200, 32263020400, 32272410800, 32272431300, 32272431600, 33262810200, 33272410100, 34223431400, 34223241600, 34223031300, 34221631400, 34222010800, 34222210800, 34222810200, 34230410700, 34231120600, 34232320400, 33272441600, and 32250610200.Completed 21-Jul-20 308/2020 Councillor King moved that administration submit an application under the Provincial Education Requisition Credit (PERC) for the uncollectable Education Requisition and the uncollectable Designated Industrial Property Requisition on these Oil & Gas Properties. In Progress; the application intake for this grant is not until January 2021. 21-Jul-20 309/2020 Councillor Christie moved that administration is directed to void any 2020 penalties currently attached to these rolls. (Roll # motion 308/2020)Completed 115 2020.08.18 Adopted Council Meeting Package Meeting Date Motion #Description/Motion Action Required Assigned To Due Date Status Council Action Items 21-Jul-20 310/2020 Deputy Reeve McGhee moved that the amount of $577,991.76 in property taxes be expensed and cancelled on rolls 40001620000, 40001010000, 29251041000, 30231141500, 31231231100, 32232410800, 32232420600, 33242220400, and 40001030000. Completed 21-Jul-20 311/2020 Councillor Penner moved that administration submit an application under the Provincial Education Requisition Credit (PERC)for the uncollectable Education Requisition and the uncollectable Designated Industrial Property Requisition on these Oil & Gas Properties. In Progress; the application intake for this grant is not until January 2021. 21-Jul-20 312/2020 Councillor King moved that administration is directed to void any 2020 penalties currently attached to these rolls. (rolls from motion #310/2020)Completed 21-Jul-20 313/2020 Councillor King moved that Council receive the Quarterly Financial Reporting for the Period ending June 30, 2020 for information.Completed 21-Jul-20 314/2020 Deputy Reeve McGhee moved that Council approve Policy #3- 11, Legal Costs as presented.Completed 21-Jul-20 315/2020 Councillor Penner moved that Council approve Policy #3-2, Title of Chief Elected Officer as presented.Completed 21-Jul-20 316/2020 Councillor King moved that Council rescind Policy #3-3, Boards and Committees.Completed 21-Jul-20 317/2020 Deputy Reeve McGhee moved that Council approve Policy #15- 2, Special Occasion and Milestone Recognition as presented. Completed 21-Jul-20 318/2020 Councillor Penner moved that Council provide support to the Annual Alberta/Northwest Territory Royal Canadian Legion “Military Service Recognition Book” with the purchase of a business card size advertisement at a cost of $285.00 with funds to come from the Operating Budget.Completed 21-Jul-20 319/2020 Councillor Keiver moved that Council direct Administration to work with local groups for the purpose of utilizing the area behind the County Office for community benefit. 116 2020.08.18 Adopted Council Meeting Package AMENDMENT SUMMARY Council Meeting Date: August 19, 2020 Purpose: The purpose of the Amendment Summary is to explain the differences from the original package that was presented at the Council meeting compared to the amended version. Agenda: Additions under Council and Committee Reports 11.2 Canadian Badlands Ltd. Package: No additions were made to the package 117 2020.08.18 Adopted Council Meeting Package