AGENDA - COUNCIL MEETING Tuesday February 22, 2011

Transcription

1 AGENDA - COUNCIL MEETING Tuesday February 22, 2011 Page A Regular Meeting of Council will be held on Tuesday February 22, 2011 at 8:30 a.m., in the Council Chambers, Municipal Offices, Port Carling, Ontario. 1. Call to Order 2. Adoption of Agenda a. Consideration of a resolution to adopt the agenda. 3. Disclosure of Interest 4. Receipt / Adoption of Minutes a. Consideration of a resolution to adopt the Council Meeting minutes held on January 18, b. Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held on January 19, c. Consideration of a resolution to adopt the Special Council Orientation Meeting minutes held on January 21, Delegations and Petitions a. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Auditors Report. b. Delegations to attend at 10:45 a.m. Re: Bala Falls Project as follows: 1. Karen McGhee, Swift River Energy Limited 2. Mitchell Shnier, Save The Bala Falls 3. Sandy Currie, Moon River Property Owners Association 6. Business Arising from the Minutes a. Report from the Clerk Re: Action items from Committee of the Whole. 7. Public Meetings Page 1 of 184

2 Page a. Other Public Meetings b. Zoning Amendment Applications (in conjunction with Previously Heard Consent Application) By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part 2 on Plan 35R-4471, (Medora), Roll # Concurrent with Consent Application B/71/10/ML 2. By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Concurrent with Consent Application B/72/10/ML c. Zoning Amendment Applications By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R-10754, Roll # By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R-21937, Roll # By-laws a. By-law , Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part 2 on Plan 35R-4471, (Medora), Roll # b. By-law , Upjohn, Lot 5, Concession 7, (Monck), Roll # c. By-law , Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R-10754, Roll # d. By-law , Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R-21937, Roll # e. By-law , a by-law to Repeal Part Lot Control By-law , Habitat for Humanity Muskoka, Part of Lot 14, Concession B, (Bala), Lot 280 on Plan 1, Roll # Refer to item 9.a.1, Report. f. By-law , a by-law to authorize the Mayor and Clerk to sign the Ontario Society for the Prevention of Cruelty to Animals Agreement. Refer to item 9.a.4. Report. By-law , being a by-law to amend , to appoint Councillor Allen Edwards as an Ullswater Community Centre Hall Board Member. Refer to item 9.a.5. Report. 9. Senior Management Team Reports and Tenders a. Senior Management Team Reports Page 2 of 184

3 Page a. Senior Management Team Reports Report from the Senior Planner, Re: Repealing of Part Lot Control By-law , Habitat for Humanity Muskoka, Part of Lot 14, Concession B, (Bala), Lot 280 on Plan 1, Roll # Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. 3. Report from the Clerk Re: Earth Hour Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. 5. Report from the Clerk Re: Appointments to Committees. 6. Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. 7. Report from the CAO Re: Port Carling Dam, MNR Gate Installation. b. Tenders 10. New and Unfinished Business 11. Future Meeting Schedule a. Special Committee of the Whole Meeting - Thursday February 24, 2011 at 1:00 p.m. - Budget Introduction. b. Special Council Meeting - Wednesday March 2, 2011 at 7:00 p.m. - Budget - Public Input. c. Special Committee of the Whole Meeting - Friday March 11, 2011 at 9:00 a.m. - Budget Deliberations. d. Committee of Adjustment - Friday March 11, 2011 at 1:00 p.m. 12. Council in Closed Session a. Council in Closed Session will be held to discuss personal matters pursuant to Section 239(2) of the Municipal Act, Confirming By-law a. Consideration of a by-law to confirm the proceedings of Council. 14. Adjournment Page 3 of 184

4 Page 14. Adjournment a. Consideration of a resolution to adjourn. Page 4 of 184

5 THE CORPORATION OF THE TOWNSHIP OF MUSKOKA LAKES MINUTES - COUNCIL MEETING Tuesday, January 18, 2011 A Regular Meeting of Council was held on Tuesday, January 18, 2011, at 9:00 a.m. in the Council Chambers, Municipal Offices, Port Carling, Ontario. PRESENT: OFFICIALS PRESENT: Mayor Alice Murphy W. Schmid - CAO C. Mortimer - Clerk COUNCILLORS: R. Jeffries - Clerk s Assistant L. Forbes - Planning Assistant Ruth-Ellen Nishikawa S. Fahner - Director of Planning Brad Burgess D. Pink - Senior Planner Bob McTavish L. Saumur - Manager of Parks, Recreation and Facilities Allen Edwards L. Troup - Public Works Superintendent Donald Furniss N. Donald - Development Services Coordinator Gault McTaggart Phil Harding Jean-Ann Baranik Ron Brent 1. Call to Order a. Mayor Murphy called the meeting to order at 9:02 am. 2. Adoption of Agenda a. Consideration of a resolution to adopt the agenda as amended. Resolution Number C-1-18/01/11 Councillor Brent Councillor Nishikawa: Be it resolved that the Council meeting agenda dated January 18, 2011 be adopted as amended to remove items 5.c. and 10.a. Consolidated Financial Statements and Auditors Report. Draft Council Minutes Carried. 3. Disclosure of Interest a. Mayor Murphy, in regard to the December 2010 meetings, advised that she has obtained two independent legal opinions advising that she has no disqualifying interests under the Municipal Conflict of Interest Act that would require her to not participate and vote on any discussion or resolution regarding the Bala Falls Project. COUNCIL MINUTES January 18, 2011 PAGE # 1 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 5 of 184

6 b. Councillor Furniss disclosed an indirect pecuniary interest with respect to items 5.d., 5.e., 9.a.9. and 9.a.10. regarding the Bala Falls Project based on his directorship with a company that has done business with the proponent of the project. c. Councillor Brent advised he obtained legal counsel regarding a potential conflict relating to the Bala Falls Project. Councillor Brent stated that he will not be doing business with respect to the project therefore he does not have a conflict. d. Councillor Burgess advised he received legal counsel and he does not have a conflict regarding the Bala Falls Project. e. Councillors Furniss, Brent, McTaggart, Harding and Mayor Murphy indicated that they are current members of the Muskoka Lakes Association (MLA) but do not believe to have a conflict with respect to item 5.a Proposed Port Carling Boundary Expansion. Councillor Harding also noted that he was a former director of the MLA. 4. Receipt/Adoption of Minutes a. Consideration of a resolution to adopt the Special Council Meeting minutes held on December 9, Resolution Number C-2-18/01/11 Councillor Brent Councillor Nishikawa: Be it resolved that the Special Council Meeting minutes held on December 9, 2010 be adopted. Carried. b. Consideration of a resolution to adopt the Special Council Meeting minutes held on December 10, Resolution Number C-3-18/01/11 Draft Council Minutes Councillor Brent Councillor Nishikawa: Be it resolved that the Special Council Meeting minutes held on December 10, 2010 be adopted. Carried. c. Consideration of a resolution to adopt the Council Meeting minutes held on December 14, COUNCIL MINUTES January 18, 2011 PAGE # 2 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 6 of 184

7 Resolution Number C-4-18/01/11 Councillor Harding Councillor Baranik: Be it resolved that the Council Meeting minutes held on December 14, 2010 be adopted. Carried. d. Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held on December 15, Resolution Number C-5-18/01/11 Councillor Baranik Councillor Harding: Be it resolved that the draft Committee of the Whole Meeting minutes held on December 15, 2010 be received. Carried. 5. Delegations and Petitions a. Delegations attended at 9:40 a.m. Re: Proposed Port Carling Boundary Expansion, as follows; Prior to the delegations being heard Mr. Fahner provided a chronological history of the Ontario Municipal Board (OMB) Hearing related to Official Plan Amendment #40 and the proposed boundary expansion. He noted the OMB Hearing on this matter was to resume on January 24, 2011 at 12:00 p.m. 1. Rick Spence, President, Friends of Port Carling Inc., attended the meeting. Mr. Spence provided a brief background of the Friends of Port Carling Inc. and noted they have raised a substantial amount of funds to defend their appeal to the OMB. Mr. Spence outlined the group s specific concerns and objections to the boundary expansion. He urged Councillors to attend the resumption of the OMB Hearing. Draft Council Minutes Mr. Fahner indicated Mr. Spence was giving evidence and felt it was not appropriate as the matter was still before the OMB. Council agreed to permit Mr. Spence to continue, however, Council did not make comment. Mr. Spence indicated they did not agree with the findings in the C.N. Watson report and felt there are plenty of available lands for development within the existing boundary. COUNCIL MINUTES January 18, 2011 PAGE # 3 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 7 of 184

8 2. Leo Longo, Aird & Berlis, did not attend the meeting. 3. Margaret Walton, agent, Planscape, 104 Kimberley Avenue, Bracebridge, ON, P1L 1Z8, attended the meeting. Ms. Walton provided a brief presentation regarding the proposed Port Carling Boundary Expansion, a copy of which is attached. She requested that Council await the OMB hearing decision prior to commenting on the matter. b. Delegations attended at 10:00 a.m. Re: Item 9.a.1., Senior Management Team Reports, Oliver Property / Pennwood Road, as follows; 1. Margaret Walton, agent, Planscape, 104 Kimberley Avenue, Bracebridge, ON, P1L 1Z8, attended the meeting. Ms. Walton explained that her firm has been retained by Mr. Oliver, for planning matters in this regard. Ms. Walton requested the matter be deferred until April as Mr. Oliver was away. 2. Kevin Ruttan, 1036 Pennwood Road, Port Carling, ON, P0B 1J0, attended the meeting. Mr. Ruttan circulated photographs, copies of which are attached. Mr. Ruttan indicated he was in contact with the Ministry of Environment regarding this matter and noted the Ministry is in the process of investigating it. Mr. Ruttan questioned what Mr. Oliver s future plans were for the property. c. Grant Thornton, Auditor, did not attend the meeting Re: 2009 Consolidated Financial Statements and Auditors Report. This item was removed from the agenda. Please refer to item 2.a. d. Jeff Mole, Bala Energy Cooperative Inc., attended at 10:20 a.m. Re: Not-for-Profit Power Generation in Ontario. Councillor Furniss had disclosed an indirect pecuniary interest with respect to the Bala Falls Project (refer to item 3.b.) and left the Council table for this item. Due to the significant community interest, it was the consensus of Council to extend the 5 minute delegation time limit regarding the Bala Falls Project. Draft Council Minutes Mr. Mole reviewed his presentation regarding not-for-profit electricity in Ontario, a copy of which is attached. Mr. Mole requested Council to create a Community Power Public Advisory Committee. He also requested support for a Community Energy Partnership Program study. Council directed staff to consider benefits to the Township and report back to Council in this regard. COUNCIL MINUTES January 18, 2011 PAGE # 4 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 8 of 184

9 e. Delegations attended at 11:10 a.m. Re: Bala Falls Project, as follows; Councillor Furniss had disclosed an indirect pecuniary interest with respect to the Bala Falls Project (refer to item 3.b.) and left the Council table for this item. In response to Karen McGhee, Council held a brief discussion regarding video recording at meetings and agreed that media could video record however a private recording would not be allowed without permission from the delegation. 1. Karen McGhee, Swift River Energy Limited (SREL) (11:10 a.m.) Karen McGhee reviewed her PowerPoint presentation, a copy of which is attached. She encouraged Council to review the presentation and to visit the project website for further information. She indicated that with the environmental screening process coming to an end, and the Ministry of Environment (MOE) decision being expected soon, that the debate over Option 1 VS Option 2 cannot continue indefinitely. She noted that Option 2 was the superior plan for the site. Ms. McGhee clarified that Option 1 has been redesigned to fit the complete structure on Crown Land with an increased turbine size to allow 4.2 mega watts, an increase from 3.7 mega watts. She noted that a report is forthcoming from the Ministry of Natural Resources (MNR) addressing safety concerns in this area. The MNR will also be making changes to the location of the boom. Ms. McGhee addressed many questions and concerns for Council relating to the waterpower process, power supply and transportation, construction staging areas, landscaping, turbine sizes and location, a four season bridge, and details related to Option 1 VS Option 2. In response to Council, Ms. McGhee agreed to provide additional drawings for the project to Council. Draft Council Minutes 2. Mike Webb (1:18 p.m.) Mr. Webb provided a presentation to Council, a copy of which is attached. He advised of his support for Option 2. He felt that it is the right choice for the future and that the water flow will be better managed. This is a green energy initiative and he suggested that the opportunity should be seized. Mr. Webb noted that he is a member of the Scenic Flow Committee for the project. COUNCIL MINUTES January 18, 2011 PAGE # 5 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 9 of 184

10 3. Sandy Currie, Moon River Property Owner s Association (1:25 p.m.) Mr. Currie reviewed his presentation to Council, a copy of which is attached. Mr. Currie requested Council to obtain ownership of all District lands on Burgess Island, create a community committee to oversee the rehabilitation of the property, undertake the designation of Burgess Island as a Cultural Heritage Landscape and pass a motion requesting Premier McGuinty to cancel the decision to permit the construction of a hydro-electric generating facility. 4. Bill Purkis, Purks Place (1:36 p.m.) Mr. Purkis reviewed his presentation to Council, a copy of which is attached. He indicated that he would be submitting three documents to Council being a petition opposing the hydro plant, a petition asking for the designation of Bala Falls landscape as Heritage and an award from the Architectural Conservancy of Ontario. Mr. Purkis requested Council to form a fact finding committee with representation from Ward A Councillors and community based organizations. He also expressed concern regarding the fencing around the Trash Rack and removal process. 5. Patricia Gidley (1:54 p.m.) Ms. Gidley presented her concerns to Council, a copy of which is attached. She advised she is a member of the Scenic Flow Committee for the project and hopes that they will continue to meet to complete their mandate. Ms. Gidley reviewed points from the Township s Official Plan and requested Council to ensure that future generations will enjoy all the assets and features of the Bala Falls. 6. Mitchell Shnier, SaveTheBalaFalls (2:00 p.m.) Mr. Shnier reviewed his PowerPoint presentation, a copy of which is attached. He outlined what he felt was conflicting information regarding the Bala Falls Project and noted that more detail is required. He also questioned possible noise level issues. Draft Council Minutes In response to Council, Ms. McGhee advised she would be able to attend a town hall meeting to respond to community questions, if written questions were provided in advance of the meeting in order to prepare responses. COUNCIL MINUTES January 18, 2011 PAGE # 6 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 10 of 184

11 7. Dave Weismiller, Weismiller Lumber (2:45 p.m.) Mr. Weismiller reviewed his presentation, a copy of which is attached. From a business perspective, he expressed concern regarding traffic flow during construction and the negative economic impact it could have on local businesses. He also commented on the negative impact the project could have on tourism in Bala. 8. Donelda Kruckel, Walker s Point Citizens Group 6. Business Arising from the Minutes Ms. Kruckel submitted a copy of her presentation to the Clerk, a copy of which is attached, as she was unable to remain at the meeting due to a prior commitment. a. Report from the Clerk Re: Action items from Committee Meetings. A copy of the report is attached. 7. Public Meetings Resolution Number: C-11-18/01/11 Councillor Baranik Councillor Harding: Be it resolved that the following recommendations be enacted for action: December 15, 2010 Committee of the Whole meeting recommendations 5 to 14. Carried. a. Other Public Meetings 1. None. Draft Council Minutes b. Zoning Amendment Applications (in conjunction with Previously Heard Consent Applications) 1. None. c. Zoning Amendment Applications 1. By-law , ZBA-38/10, Walker, Part of Lot 26, Concession 10, (Monck) Part 1 on Plan RD37, Part 2 on Plan 35R-20504, Roll # COUNCIL MINUTES January 18, 2011 PAGE # 7 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 11 of 184

12 Mr. Pink explained the history, nature, and location of the application / property. Submissions were received as follows: i) Letter from the District Municipality of Muskoka, Planning and Economic Development Department. Mr. Pink read the letter, a copy of which is attached. Ms. Tracy Stewart, agent, Royal LePage, 1 Lock St., Port Carling, ON, P0B 1J0, attended the meeting. Ms. Stewart indicated she was available to answer questions. No one attended in support of or in opposition to the application. Council had no questions. 2. By-law , ZBA-31/10, Ontario Inc., Governors Island, Lake Joseph, (Medora) Part 2 on Plan 35R-20580, Roll # Mr. Pink explained the history, nature, and location of the application / property. Submissions were received as follows: i) Letter from the District Municipality of Muskoka, Planning and Economic Development Department. Mr. Pink read the letter, a copy of which is attached. Mr. Terry Martino, agent, Gren Weis Architect & Associates, 341 Kerr Street, Oakville, ON, L6K 3B7, attended the meeting. Mr. Martino agreed to enhanced site plan control as per the District of Muskoka s comments. He circulated sketches of various construction mitigation measures that would be in place during construction. Mr. Martino explained the addition to cabin #6 was a modest addition to make the interior symmetrical. He indicated he was available to answer questions. Draft Council Minutes No one attended in support of or in opposition to the application. 8. By-laws In response to Council s question Mr. Pink indicated Official Plan policy F states that due to carefully planned origins of certain provisions of the zoning by-law, exemptions may not be granted for oversized sleeping cabins. He noted this was a result of the Ontario Municipal Board Decision for Comprehensive Zoning By-law Therefore, staff does not support this type of request. a. By-law , Walker, Part of Lot 26, Concession 10, (Monck), Part 1 on Plan RD37, Part 2 on Plan 35R-20504, Roll # COUNCIL MINUTES January 18, 2011 PAGE # 8 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 12 of 184

13 Resolution Number C-6-18/01/11 Councillor Baranik Councillor Harding: Be it resolved that By-law , to amend Comprehensive Zoning By-law 87-87, as amended, (Walker, Roll # ), be read a first and second time. Carried. Resolution Number C-7-18/01/11 Councillor Baranik Councillor Harding: Be it resolved that By-law , (Walker) be read a third time and finally passed. Carried. b. By-law , Ontario Inc., Governors Island, Lake Joseph, (Medora), Part 2 on Plan 35R-20580, Roll # Resolution Number C-8-18/01/11 Councillor Edwards Councillor McTavish: Be it resolved that By-law , to amend Comprehensive Zoning By-law 87-87, as amended, ( Ontario Inc., Roll # ), be read a first and second time. Carried. In response to Council s questions, Mr. Pink indicated the proposed rubble wall would be backfilled with soil for plantings. He noted this area is all rock, and the backfilled wall would allow for plantings. Council held a brief discussion and agreed the proposed development was minor. Resolution Number C-9-18/01/11 Draft Council Minutes Councillor Edwards Councillor McTavish: Be it resolved that By-law , ( Ontario Inc.) be read a third time and finally passed. Carried. c. By-law , by-law to amend By-law , to designate lands described as Part of Lot 23, Concession 20, Parcel 2705, (Wood), as being subject to Site Plan Control (Richenback, Roll # ) (Condition of Consent) - COUNCIL MINUTES January 18, 2011 PAGE # 9 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 13 of 184

14 By-law , a by-law to amend By-law , to designate lands described as Part of Lot 23, Concession 20, Parcel 2722, (Wood), as being subject to Site Plan Control (Richenback, Roll # ) (Condition of Consent) - By-law , a by-law to amend By-law , to designate lands described as Governors Island, Lake Joseph, Part 2 on Plan 35R-20580, (Medora), as being subject to Enhanced Site Plan Control ( Ontario Inc., Roll # ) (Refer to item 7.c.2., By-law ) Resolution Number C-10-18/01/11 Councillor Edwards Councillor McTavish: Be it resolved that the following bylaws be read a first, second and third time and finally passed. By-law , to amend By-law , to designate lands as being subject to Site Plan Control. (Richenback, Roll # ) By-law , to amend By-law , to designate lands as being subject to Site Plan Control. (Richenback, Roll # ) By-law , to amend By-law , to designate lands as being subject to Enhanced Site Plan Control. ( Ontario Inc., Roll # ) Carried. d. By-law , interest on arrears of taxes - By-law , penalty charge for nonpayment of current taxes - By-law , interim levy - By-law , borrowing bylaw Resolution Number C-14-18/01/11 Councillor McTavish Councillor Edwards: Be it resolved that the following bylaws be read a first, second and third time and finally passed. By-law , to establish rates of interest on all arrears of taxes. Draft Council Minutes By-law , to establish a penalty charge for non-payment of current taxes. By-law , to provide for an interim levy. By-law , to borrow funds, if necessary, to meet current expenditures for Carried. COUNCIL MINUTES January 18, 2011 PAGE # 10 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 14 of 184

15 e. By-law , License Agreement, McNair (Refer to item 9.a.2. Report) - By-law , License Agreement, Hilliard (Refer to item 9.a.3 Report) - By-law , temporary road closing, Bailey Street for the Port Carling Winterfest (Refer to item 9.a.4 Report). Resolution Number C-12-18/01/11 Councillor McTavish Councillor Edwards: Be it resolved that the following bylaws be read a first, second and third time and finally passed. By-law , to authorize the Mayor and Clerk to execute and affix the Corporate Seal to a License Agreement (McNair, Roll # ). By-law , to authorize the Mayor and Clerk to execute and affix the Corporate Seal to a License Agreement (Hilliard, Roll # ). By-law , to authorize the temporary closing of a portion of Bailey Street for the Port Carling Winterfest. Carried. f. By-law , Fence Viewers (Refer to item 9.a.6. Report) - By-law , Property Standards Committee (Refer to item 9.a.6. Report) - By-law , Public Library Board (Refer to item 9.a.6. Report) Resolution Number C-13-18/01/11 Councillor Burgess Councillor Furniss: Be it resolved that the following by-laws be read a first, second and third time and finally passed. By-law , to appoint Fence Viewers for the Township of Muskoka Lakes. By-law , to appoint a Property Standards Committee for the Township of Muskoka Lakes. Draft Council Minutes By-law , to appoint a Public Library Board for the Township of Muskoka Lakes. Carried. 9. Senior Management Team Reports and Tenders a. Senior Management Team Reports COUNCIL MINUTES January 18, 2011 PAGE # 11 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 15 of 184

16 1. Report from the Public Works Superintendent Re: Oliver Property / Penwood Road. A copy of the report is attached. (Refer to item 5.b., Delegations and Petitions) Mr. Troup highlighted his report and noted the Ministry of Environment (MOE) has jurisdiction regarding the fill deposited on site. The MOE has contacted the Township for background information as they are investigating the matter. In response to Council s question, Mr. Troup indicated clean fill was placed on the property by the municipality until the passage of the Township s Site Alteration By-law in July, Mr. Troup noted all filling of the property by the municipality ceased at that time. Mr. Oliver then blocked the access to the property. 2. Report from the Clerk Re: License Agreement (McNair) By-law A copy of the report is attached. Refer to item 8.e., By-laws. The Clerk reviewed the report and explained the License Agreement process. 3. Report from the Clerk Re: License Agreement (Hilliard) By-law A copy of the report is attached. Refer to item 8.e., By-laws. The Clerk reviewed the report for Council. 4. Report from the Clerk Re: 2011 Port Carling Winterfest Temporary Road Closure By-law A copy of the report is attached. Refer to item 8.e., By-laws. The Clerk reviewed the report for Council indicating that Port Carling Winterfest is an annual event. 5. Report from the Manager of Parks, Recreation and Facilities Re: Port Carling Winterfest Facility Use. A copy of the report is attached. Draft Council Minutes Mayor Murphy left the Council Chambers at 3:12 p.m. and Deputy Mayor Edwards assumed the Chair. The Manager of Parks, Recreation and Facilities highlighted the report for Council. COUNCIL MINUTES January 18, 2011 PAGE # 12 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 16 of 184

17 Resolution Number C-16-18/01/11 Councillor Furniss Councillor Burgess: Be it resolved that Township Council for purposes of the Lions Club of Port Carling Winterfest to be held on February 4 th, 5 th, and 6 th, 2011, permit the requested items with provisions as set out in the staff report dated January 18th, Carried. 6. Report from the Clerk Re: Appointments to Committees, By-law , By-law , By-law A copy of this report is attached. Refer to item 8.f., By-laws. The Clerk reviewed the report for Council. 7. Report from the Manager of Parks, Recreation and Facilities Re: Port Carling Communities in Bloom - The Circle of Excellence. A copy of the report is attached. The Manager of Parks, Recreation and Facilities reviewed the staff report. Mayor Murphy returned at 3:22 p.m. and assumed the Chair and Deputy Mayor Edwards returned to the Council Table. After a brief discussion, Council amended the resolution to register the Township of Muskoka Lakes as a whole in the 2011 National Edition of Communities in Bloom. Resolution Number C-17-18/01/11 Councillor Burgess Councillor Furniss: Be it resolved that Township Council authorize the registration of the Township of Muskoka Lakes Communities in Bloom into the 2011 National Edition of the Communities in Bloom Circle of Excellence non-competitive category. Draft Council Minutes Carried. 8. Report from the Manager of Parks, Recreation and Facilities Re: 2011 Doors Open. A copy of the report is attached. The Manager of Parks, Recreation and Facilities highlighted the report noting the 2011 Doors Open will be held at two municipal facilities in Windermere being the Windermere Community Centre and the Windermere Village Hall. COUNCIL MINUTES January 18, 2011 PAGE # 13 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 17 of 184

18 Resolution Number C-18-18/01/11 Councillor McTaggart Councillor Burgess: Be it resolved that Township Council ratify and confirm the proposal of Doors Open, Muskoka Branch, for various events to be hosted in Windermere on Saturday, June 25, 2011, and the Mayor and Clerk s endorsement of same on January 12, Carried. 9. Report from CAO Re: Bala Falls Project Update. A copy of the report is attached. Councillor Furniss had disclosed an indirect pecuniary interest with respect to the Bala Falls Project (refer to item 3.b.) and left the Council table for this item. The CAO provided the Bala Falls Project Update report for Council s information. Council directed staff to prepare a report on the questions raised at Council today. 10. Report from the CAO Re: SREL Bala Economic Impact Study. A copy of the report is attached. Councillor Furniss had disclosed an indirect pecuniary interest with respect to the Bala Falls Project (refer to item 3.b.) and left the Council table for this item. The CAO reviewed the report for Council. Resolution Number C-15-18/01/11 Councillor McTaggart Councillor Burgess: Be it resolved that Township Council receive the Staff Report entitled, Swift River Energy Limited, C4SE Economic Impact Study of the North Bala Falls Small Hydro Project; and Draft Council Minutes That Township Council direct staff to proceed with a Peer Review of the C4SE Economic Impact Study; AND FURTHER THAT Watson Associates be hired to conduct the Peer Review at an estimated cost of $6,000 to $7,000, plus HST and that these funds be included in the 2011 budget. Carried. COUNCIL MINUTES January 18, 2011 PAGE # 14 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 18 of 184

19 11. Report from Manager Parks, Recreation and Facilities Re: Port Carling Arena Header Piping Replacement. A copy of the report is attached. The Chief Building Official and the CAO advised that the header piping at the Port Carling Arena has developed a leak and outlined the three options available to resolve the issue as indicated in the staff report. b. Tenders 1. None. 10. New and Unfinished Business After a lengthy discussion, Council directed staff to clarify some of the details and report back at the January 19, 2011 Committee of the Whole meeting. Staff was also directed to consult with Councillor Edwards on this matter. a. Consideration of a resolution to approve the 2009 Consolidated Financial Statements and Auditors Report. This item was removed from the agenda. Please refer to item 2.a. 11. Future Meeting Schedule a. Committee of the Whole A meeting will be held on Wednesday, January 19, 2011 at 9:00 a.m. b. Committee of Adjustment A meeting will be held on Friday, February 18, 2010 at 1:00 p.m. 12. Council in Closed Session a. Closed Session was held to discuss litigation matters pursuant to Section 239(2) of the Municipal Act, Draft Council Minutes Resolution Number C-19-18/01/11 Councillor Furniss Councillor Burgess: Be it resolved that Closed Session be held for litigation matters pursuant to Section 239(2) of the Municipal Act, Carried. Councillor Brent left Closed Session at 4:15 p.m. and returned at 4:20 p.m. COUNCIL MINUTES January 18, 2011 PAGE # 15 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 19 of 184

20 Resolution Number C-20-18/01/11 Councillor Burgess Councillor Furniss: Be it resolved that Closed Session reconvene as Council to report on matters discussed under Closed Session. Carried. 13. Confirming By-law There was no report to Council resulting from Closed Session. a. Consideration of a by-law to confirm the proceedings of Council. 14. Adjournment Resolution Number C-21-18/01/11 Councillor Burgess Councillor Furniss: Be it resolved that By-law , to confirm the January 18, 2011 proceedings of Council be read a first, second and third time and finally passed. Carried. a. Consideration of a resolution to adjourn. Resolution Number C-22-18/01/11 Councillor Burgess Councillor Furniss: Be it resolved that Council adjourn at 4:40 p.m. and the next regular meeting of Council will be held on Monday, February 21, 2011 at 10:00 a.m. in the Council Chambers Municipal Offices in Port Carling, Ontario. Carried. Draft Council Minutes Mayor Alice Murphy Cheryl Mortimer - Clerk Deputy Mayor Allen Edwards COUNCIL MINUTES January 18, 2011 PAGE # 16 Consideration of a resolution to adopt the Council Meeting minutes held on January 18, Page 20 of 184

21 THE CORPORATION OF THE TOWNSHIP OF MUSKOKA LAKES MINUTES - COMMITTEE OF THE WHOLE MEETING Wednesday, January 19, 2011 A Regular Meeting of the Committee of the Whole was held on Wednesday, January 19, 2011, at 9:00 a.m. in the Council Chambers, Municipal Offices, Port Carling Ontario. PRESENT: OFFICIALS PRESENT: Mayor Alice Murphy, Chair W. Schmid - CAO C. Mortimer - Clerk COUNCILLORS: L. Forbes - Planning Assistant R. Jeffries - Clerk s Assistant Ruth-Ellen Nishikawa J. Stevens - Treasurer Brad Burgess N. Donald - Development Services Coordinator Bob McTavish R. Hayes - Fire Chief Allen Edwards, 1:45 pm L. Saumur - Manager of Parks, Recreation & Facilities Donald Furniss, 5:12 pm L. Troup - Public Works Superintendent Gault McTaggart, 12:30 pm S. Fahner - Director of Planning Phil Harding D. Pink - Senior Planner Jean-Ann Baranik Ron Brent, 4:50 pm 1. Call to Order a. Mayor Murphy called the meeting to order at 9:05 a.m. 2. Adoption of Agenda a. Consideration of a resolution to adopt the agenda as amended. Resolution Number COW-1-19/01/11 Councillor Furniss Councillor Nishikawa: Be it resolved that the Committee of the Whole agenda dated January 19, 2011 be adopted as amended to add item 8.b.1. Report Re: Port Carling Arena Header Piping Replacement and 8.d.2. Report Re: Port Carling Communities in Bloom. Draft Committee of the Whole Carried. 3. Disclosure of Interest a. Councillors Burgess, Baranik, Brent and Mayor Murphy indicated they are members of the Muskoka Lakes Chamber of Commerce but do not believe to have a pecuniary interest. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 1 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 21 of 184

22 b. Councillor Bob McTavish disclosed a conflict of interest with respect to items 6.a. and 6.b. regarding the Muskoka Lakes Snow Trails Association (MLSTA) due to his association with MLSTA. 4. Receipt/Adoption of Minutes a. Consideration of a resolution to adopt the Committee of the Whole Meeting minutes held on December 15, Resolution Number COW-2-19/01/11 Councillor Nishikawa Councillor Furniss: Be it resolved that the Committee of the Whole Meeting minutes held on December 15, 2010 be adopted. Carried. 5. Planning and Visioning a. Delegations and Petitions 9:00 a.m. 1. Mr. Boyd Montgomery, agent, and Mr. Angelo Sarracini, applicant, attended at 9:10 am Re: Item 5.c.1., Report from the Senior Planner, ZBA-01/11, Ontario Ltd. 2. Mr. David Kalm, agent, attended at 9:30 am Re: Item 5.c.2., Report from the CAO and Director of Planning Re: Return of Securities for Touchstone on Lake Muskoka Inc. b. Visioning Chair Murphy and Vice Chair Harding 1. None. c. Planning Chair Nishikawa and Vice Chair Murphy 1. Report from Senior Planner Re: ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R-21937, Roll # A copy of the report is attached. Draft Committee of the Whole Mr. Pink explained the history, nature, and location of the application/property. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 2 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 22 of 184

23 Mr. Boyd Montgomery, agent, Carr Design Inc, 1099 Windrush Dr., Oakville, ON, L6M 1W4, attended the meeting. Mr. Montgomery indicated the applicant, Mr. Angelo Sarracini, was also in attendance and displayed photographs of the subject property. Mr. Montgomery provided a brief history of the property and indicated only a small portion of the proposed dwelling would exceed the permitted height. Committee held a brief discussion and agreed the kitchen should be removed from the dwelling above the boathouse. Resolution Number COW-3-19/01/11 Councillor Baranik Councillor Harding: Be it resolved that Zoning By-law Amendment Application ZBA-01/11, ( Ontario Ltd.) be approved for circulation subject to the conversion of the dwelling above the boathouse into a sleeping cabin. Carried. 2. Report from the CAO and Director of Planning Re: Return of Securities for Touchstone on Lake Muskoka Inc. A copy of the report is attached. Mr. Fahner highlighted the report and provided a brief history of the property, prior approvals and litigation regarding the Environmental Treatment Centre. Mr. David Kalm, agent, 1168 Hwy. #118 W., Bracebridge, ON, P1L 1W8, attended the meeting. Mr. Kalm indicated he was available to answer questions. In response to Committee s question, Mr. Schmid indicated a separate deposit was retained for the payment of the Sewage Treatment Lagoon System Study. All required works have now been completed. Resolution Number COW-4-19/01/11 Councillor Baranik Councillor Harding: Whereas C.C. Tatham undertook a review of the Touchstone sewage lagoon system on behalf of the Township of Muskoka Lakes, in October 2009 and developed a list of deficiencies to be corrected, and; Draft Committee of the Whole Whereas Touchstone on Lake Muskoka Inc., provided a $60,000 security to complete the outstanding works, and; Whereas Touchstone on Lake Muskoka Inc., has rectified outstanding deficiencies and these corrections have been inspected by C.C. Tatham, and C.C. Tatham has confirmed that all identified deficiencies have been corrected. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 3 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 23 of 184

24 Now therefore be it resolved that Committee of the Whole recommend Township Council authorize the return of the $60,000 security, for sewage lagoon repair deficiencies, to Touchstone on Lake Muskoka Inc. Carried. 3. Report from the Senior Planner Re: Heritage Designations. A copy of the report is attached. Mr. Pink highlighted the report and reviewed the history and associated procedures for designating heritage properties. Committee held a lengthy discussion and agreed that further discussion regarding heritage matters was required by Committee at a future meeting. 4. Report from the Director of Planning Re: Comprehensive Zoning By-law (formerly By-law ), Review of Sections III to V. A copy of the report is attached. Mr. Fahner highlighted the report and attachments. Mr. Fahner distributed the draft schedules on a compact disc and reviewed example schedules and proposed changes. In response to Committee s questions, Mr. Fahner indicated property owners are not typically individually notified of zoning changes during a comprehensive zoning bylaw review. He noted there are approximately 15,000 properties within the Township. Notice of the Comprehensive Zoning By-law Review and second Public Meeting was included in the January 2011 Mayor s newsletter included with the interim tax bills. 5. Report from the Director of Planning Re: Comprehensive Zoning By-law (formerly By-law ), Schedule for Completion of Zoning By-law Review. A copy of the report is attached. Mr. Fahner highlighted the report for Committee. Draft Committee of the Whole It was the consensus of Committee to extend the schedule and have the Public Meeting possibly in the summer. Staff was requested to amend the schedule and provide it at a future Committee meeting. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 4 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 24 of 184

25 6. Report for the Director of Planning Re: Planning Department Activity A copy of the report is attached. Mr. Fahner highlighted the report for Committee. 7. Verbal report from the Director of Planning Re: Review of Citizens Guides to Landuse Planning. Copies of the guides are attached. Mr. Fahner noted the citizen guides provide excellent planning information for members of Council. d. Economic Development and Communication Chari Harding and Vice Chair Burgess 1. Report from the Manager of Parks, Recreation and Facilities, Re: Port Carling Farmers Market. A copy of the report is attached. Refer to item 5.d.2. for discussion regarding the Farmers Markets. Resolution Number COW-6-19/01/11 Councillor Furniss Councillor Burgess: Be it resolved that the Committee of the Whole recommends Township Council approve the request of the Muskoka Lakes Chamber of Commerce for use of Hanna Park for the Port Carling Summer Market in accordance with Parks C-PR-04 and the provisions as set out in the staff report dated January 19, 2011, And further that the Committee of the Whole recommends Township Council approve the Hanna Park usage fee of $50.00 per day of use for the Market. Carried. 2. Report from the Manager of Parks, Recreation and Facilities, Re: Bala Farmers Market. A copy of the report is attached. The Manager reviewed both the Bala and Port Carling Farmers Market staff reports. The Bala Market was held at the Muskoka Lakes Sport Park in The Port Carling Market is proposed for Hanna Park. Draft Committee of the Whole COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 5 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 25 of 184

26 6. Public Works Following a lengthy discussion regarding location and fees for the markets, Committee indicated that the 2011 park usage fees would remain at the same rate as The 2012 fees will increase to $ and $1, for With respect to the Port Carling Market, Committee encouraged the Chamber of Commerce to utilize the James Bartleman Island Park in the future to expand the market. Resolution Number COW-5-19/01/11 Councillor Furniss Councillor Burgess: Be it resolved that the Committee of the Whole recommends Township Council approve the request of the Muskoka Lakes Chamber of Commerce for use of Muskoka Lakes Sports Park for the Bala Summer Market in accordance with Parks C-PR-04 and the recommendations in the staff report dated January 19, 2011, And further that the Committee of the Whole recommends Township Council approve the Muskoka Lakes Sports Park usage fee of $50.00 per day of use for the Market. Carried. a. Delegations and Petitions 11:00 a.m. Councilor McTavish left the Council table for item 6.a. due to his disclosure of conflict of interest (refer to item 3.b.) regarding the Muskoka Lakes Snow Trails Association (MLSTA). 1. Dr. Sylvia Geist attended at 11:45 a.m. Re: MLSTA request to construct a snowmobile trail on the lands formerly known as the OKA Colonization Road, Item 6.b.1., Report. Dr. Geist reviewed her presentation and photos, copies of which are attached. She requested that Committee deny the motion to proceed with the construction of the snowmobile trail in this area. She noted concerns regarding endangered species, trespass issues with respect to homeowners, and safety/liability issues regarding snowmobilers. Draft Committee of the Whole 2. Kyle Vickers and Scott Vickers attended at 12:00 p.m. Re: MLSTA request to construct a snowmobile trail on the lands formerly known as the OKA Colonization Road, Item 6.b.1., Report. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 6 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 26 of 184

27 Scott Vickers recommended that the snowmobile trail not proceed, however, if Committee did approve it, he requested that the trail be constructed on the side of Tower Rd. He noted the safety concerns for both snowmobilers and vehicular traffic as the travelled portion of road is narrow. Mr. Vickers explained that the road is not maintained by the Township. Kyle Vickers presented a number of photographs, copies of which are attached. The photos displayed the road allowance used to access his property. There are many blind corners where accidents could occur as it is narrow during the winter months with snow banks. If constructed, Mr. Vickers requested additional signage be posted at the entrance and exit of the snowmobile trail along Tower Road. 3. Rene Leenaars, President, MLSTA and John Hiley, OLS, attended at 12:18 p.m. Re: MLSTA request to construct a snowmobile trail on the lands formerly known as the OKA Colonization Road, Item 6.b.1., Report. Mr. Leenaars informed Committee that the MLSTA could widen the Township road allowance known as Tower Road or construct the trail on the side of the road to address safety concerns, including signage. He noted that the groomer would clear the snowmobile trail and Mr. Vickers could continue to have the road plowed to access his property. Mr. Hiley, OLS, reviewed his presentation to Committee, a copy of which is attached. He provided a brief history of the Colonization Road, evidence of the Colonization Road and clarification of ownership. In his opinion, previous surveyors missed recognizing the Colonization Road on their surveys. His research found that the road was stopped up, closed and retained by the Township. Mr. Hiley could not find any indication that the Township sold the road allowance. b. Roads and Infrastructure Chair Brent and Vice Chair Edwards Councilor McTavish left the Council table for item 6.b. due to his disclosure of conflict of interest (refer to item 3.b.) regarding the Muskoka Lakes Snow Trails Association (MLSTA). 1. Report from Public Works Superintendent Re: Muskoka Lakes Snow Trails Association / OKA Road. A copy of the report is attached. Draft Committee of the Whole The Public Works Superintendent reviewed the report. He noted that the MLSTA has a grant deadline of March 31 st 2011 to complete the project. He recommended that the portion of Colonization Road that crosses Dr. Geist s property (Part 7 on Plan 35R-20075) should be considered separately. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 7 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 27 of 184

28 Committee amended the resolution to include the MLSTA widening the nonmaintained portion of Tower Road at the MLSTA expense, to the satisfaction of the Public Works Superintendent. Resolution Number COW-7-19/01/11 Councillor Nishikawa Councillor Furniss: Be it resolved that the Committee of the Whole recommend to Township Council that the Muskoka Lakes Snow Trails Association be authorized to construct a snowmobile trail on the public road allowance shown as Parts 1, 2, 3, 4, 5, 6, 8, 11, 13, 14, 15 and 16 of Plan 35R subject to the following: - Submission of a detailed site plan and work plan of the proposed trail on municipal lands for staff approval. - Written confirmation from the Ministry of Natural Resources that they have no objections or concerns. - Proof of Liability insurance. - Written confirmation from the M.L.S.T.A. confirming all costs for the development and maintenance of the trail to be their responsibility. - That the M.L.S.T.A. widen the non-maintained portion of Tower Road, at the expense of the M.L.S.T.A., to the satisfaction of the Public Works Superintendent. Carried. 7. Corporate Services Councillor McTaggart left the meeting at 12:30 p.m. a. Delegations and Petitions 1:30 p.m. a. None. Draft Committee of the Whole b. Finance Chair Burgess and Vice Chair Furniss 1. Report from Treasurer Re: Tangible Capital Asset Policy C-FS-10. A copy of the report is attached. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 8 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 28 of 184

29 The Treasurer highlighted the report and the proposed amendments to Policy C-FS- 10. She noted that changes to the policy were identified as a result of the asset review and audit. Resolution Number COW-8-19/01/11 Councillor Brent Councillor Harding: Be it resolved that the Committee of the Whole recommend to Township Council that the revisions to Policy C-FS-10 Tangible Capital Assets as outlined in the staff report dated January 19, 2011 be approved. Carried. 2. Report from Treasurer Re: Compensation Structure. A copy of the report is attached. The Treasurer reviewed the report detail for Committee. The report provided a wage analysis, an overview of employment levels and pay structures and a review of the McDowell Associates process. Resolution Number COW-9-19/01/11 Councillor Brent Councillor Harding: Be it resolved that the Committee of the Whole recommend to Township Council to approve pay grid step increases for those eligible employees, retroactive to January 1, 2011, subject to the completion of a Performance Evaluation Report and a recommendation from the appropriate Department Head. Carried. It was the consensus of Committee to defer consideration of Consumer Price Index (CPI) increases until the 2011 budget deliberations. Committee requested that the 1st draft of the 2011 budget be brought forward at the February 22 Committee of the Whole meeting in the current format. c. Administration Chair Furniss and Vice Chair McTavish Draft Committee of the Whole 1. Report from the Chief Building Official Re: Development Services Department Activities A copy of the report is attached. The Chief Building Official highlighted his report and answered questions for Committee. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 9 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 29 of 184

30 2. Report from the Clerk Re: Application to purchase Original Shore Road Allowance SMITH ( , Skeleton Lake). A copy of the report is attached. The Clerk reviewed the report for Committee. Resolution Number COW-10-19/01/11 Councillor Harding Councillor Baranik: Be it resolved that the Committee of the Whole recommend to Township Council that tentative approval be given to the Original Shore Road Allowance Application submitted by Paul SMITH ( ) lying in front of Concession 12, Lot 2, Skeleton Lake (Watt) pursuant to the conditions provided in Township Council policy C-LS-08 for the Sale of Original Shore Road Allowances. Carried. 3. Report from the Clerk Re: Application to purchase Original Shore Road Allowance TOTAL REAL ESTATE INC. ( , Lake Muskoka). A copy of the report is attached. The Clerk highlighted the report. Committee requested that the rates for the sale of Road Allowances be reviewed and brought back to Committee for consideration of increases. Resolution Number COW-11-19/01/11 Councillor Harding Councillor Baranik: Be it resolved that the Committee of the Whole recommend to Township Council that tentative approval be given to the Original Shore Road Allowance Application submitted by TOTAL REAL ESTATE INC. ( ) lying in front of Concession 13, Lot 29, Lake Muskoka (Monck) pursuant to the conditions provided in Township Council policy C-LS-08 for the Sale of Original Shore Road Allowances. Carried. 4. Report from the Clerk Re: Renewal of a License Agreement for an encroachment of a frame dwelling on a Township Road Allowance, lying in Concession B, Part of Lot 13, (Bala), Dicaro, A copy of the report is attached. Draft Committee of the Whole The Clerk reviewed the report for Committee. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 10 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 30 of 184

31 Resolution Number COW-12-19/01/11 8. Community Councillor Baranik Councillor Harding: Be it resolved that the Committee of the Whole recommend to Township Council that tentative approval be granted for a License Agreement between Giuseppe Dicaro and the Township of Muskoka Lakes for the encroachment of a frame dwelling on a Township Road Allowance, ( ), lying in Concession B, Part of Lot 13, (Bala) subject to the following conditions: 1. That the applicant agrees to the terms of the Municipality s standard License Agreement. 2. That all legal and survey fees be the responsibility of the applicant. 3. That the license agreement be for a term of 20 years with a yearly fee of $ per year for the first five years and determined thereafter by Council and be non-transferable. 4. That unless a copy of registered 35R Plan of Survey for the subject license agreement is filed in the Municipal Offices by January 19, 2012, the approval for the license agreement will be considered null and void, and the encroachment must be removed from the Township property at the applicant s expense. 5. That approval is deemed final when Council approves the appropriate By-law and License Agreement. Carried. a. Delegations and Petitions 3:00 p.m. 1. None. b. Community Chair McTavish and Vice Chair Brent Draft Committee of the Whole 1 Header Piping Port Carling Arena. This item was referred from the January 18, 2011 Council meeting. The CAO, the Development Services Coordinator and Councillor Edwards reported on the status of the piping. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 11 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 31 of 184

32 After a lengthy discussion, Committee directed staff to follow the procurement policy for the prefabrication of the piping and to proceed with remedial repairs. The system replacement will proceed when the system is shut down after the winter season. Committee also directed staff to continue to work with Councillor Edwards on this matter. The CAO advised that the funds will be allocated in the 2011 budget. Councillor Edwards left the meeting at 1:45 p.m. 2. Mileage Allowance Councillor McTavish requested a review of eligibility for paid mileage for Community Centre Hall Boards, Volunteer Firefighters and members of Council. c. Emergency Management and Volunteerism Chair Baranik and Vice Chair McTaggart 1. Report from the Fire Chief Re: St. John s Ambulance In-Plant Training Agreement. A copy of the report is attached. The Fire Chief reviewed the report on renewing the First Aid Agreement with St. John s Ambulance. Resolution Number COW-13-19/01/11 Councillor Nishikawa Councillor Brent: Be it resolved that the Committee of the Whole recommend to Township Council to provide approval to the Fire Chief to complete the In-Plant Agreement with St. John s Ambulance. Carried. 2. Report from the Fire Chief Re: Recruit Firefighter program. A copy of the report is attached. The Fire Chief highlighted his report and answered Committee s questions. The Fire Chief hopes to recruit 20 new volunteer firefighters to complete component one firefighter training, which consists of 110 hrs of training over 6 weekends. The proposed training begins February 11, 2011 (every other weekend) until April 28, The Fire Chief noted an information session was being held on January 20, 2011 at 7:00 p.m. at the Port Carling Memorial Community Centre. Draft Committee of the Whole Following a lengthy discussion, Committee agreed to compensate the participants at $12.00 per hour training rate during the one year probationary period. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 12 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 32 of 184

33 Resolution Number COW-14-19/01/11 Councillor Nishikawa Councillor Brent: Be it resolved that the Committee of the Whole recommend to Township Council to provide approval to hire recruit volunteer firefighters and that upon completion of the Ontario Fire Service Firefighter Curriculum Component 1 firefighting training, the participant will receive $12.00 /hr. training rate during the one year probationary period. The successful participant will then be brought onto the fire department as an active probationary volunteer firefighter. Carried. 3. Report from the Fire Chief Re: Firefighter Bunker Gear. A copy of the report is attached. The Fire Chief reviewed the report for Committee. Resolution Number COW-15-19/01/11 Councillor Brent Councillor Nishikawa: Be it resolved that the Committee of the Whole recommend to Township Council to authorize the fire department to purchase 21 sets of Bunker Gear for existing firefighters prior to the expected cost increase of March 1, 2011 and that this expenditure receive approval prior to the approval of the 2011 Budget. Carried. 4. Minutes of the Joint Occupational Health and Safety Committee meeting held on September 23, A copy of the minutes is attached. 5. Report from the Fire Chief Re: Fire Department Joint Health and Safety Committee Appointment. A copy of the report is attached. The Fire Chief highlighted the report for Committee. Draft Committee of the Whole COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 13 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 33 of 184

34 Resolution Number COW-16-19/01/11 Councillor Brent Councillor Burgess: Be it resolved that the Committee of the Whole recommend to Township Council that John Wachtler, Chris Foxwell, and Jason McCartney be appointed as Worker Representatives and that Fire Chief Richards Hayes and Assistant Chief Jim Schneider be appointed as Management Representatives for the Fire Departments Joint Health and Safety Committee. Carried. Committee requested the Fire Chief to report back at the February 22 Committee meeting with a comparison of the current and proposed Health and Safety Policy. 6. Report from Neil Donald, Co-Chair of the Health and Safety Committee Re: Township Joint Health & Safety Committee Policy and Restructuring. A copy of the report is attached. The CAO reviewed the report for Committee. Resolution Number COW-17-19/01/11 Councillor McTavish Councillor Burgess: Be it resolved that the Committee of the Whole recommend to Township Council that Rochelle Jeffries and Sandy Bos be appointed as Non-Management, Non-Union Members and that Bud Rettie be appointed as Management, Non Union Member on the Township s Health and Safety Committee. Carried. Resolution Number COW-18-19/01/11 Councillor McTavish Councillor Burgess: Be it resolved that the Committee of the Whole recommend to Township Council that Health and Safety Policy # HS- 018-POL be amended in regard to the structure of the Township Health and Safety Committee as presented in the staff report dated January 19, Draft Committee of the Whole Carried. d. Parks, Trails and Libraries Chair McTaggart and Vice Chair Nishikawa 1. Muskoka Lakes Public Library Board Minutes held on September 8, 2010 and October 12, A copy of the minutes is attached. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 14 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 34 of 184

35 2. Township of Muskoka Lakes Communities in Bloom. Pursuant to the resolution passed at the January 18, 2011 Council meeting, the Manager of Parks, Recreation and Facilities clarified that the Township would be required to participate in the evaluation portion of the competition to be eligible for She confirmed that Bala and Port Carling will continue to hold their 5 Bloom status and that the fee to apply as a Township will increase to $735. She explained that the cost for lodging and transit for the judges is estimated at $2, It was the consensus of Committee to proceed to register the Township as a whole for New and Unfinished Business a. None. 10. Committee in Closed Session a. Committee in Closed Session was held to discuss litigation and acquisition/disposition of property matters pursuant to Section 239(2) of the Municipal Act, Resolution Number COW-19-19/01/11 Councillor Nishikawa Councillor McTavish: Be it resolved that Committee of the Whole in Closed Session be held to discuss litigation and acquisitions/disposition of property matters pursuant to Section 239 (2) of the Municipal Act, Carried. Councillor Brent left the Closed Session meeting at 4:50 p.m. Councillor Furniss left Closed Session at 4:57 p.m. and returned at 5:03 p.m. Councillor Furniss left the Closed Session meeting at 5:12 p.m. Resolution Number COW-20-19/01/11 Draft Committee of the Whole Councillor Nishikawa Councillor McTavish: Be it resolved that Closed Session reconvene as Committee of the Whole to report on matters discussed under Closed Session. Carried. There was no report to Committee resulting from Closed Session. COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 15 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 35 of 184

36 11. Adjournment a. Consideration of a resolution to adjourn. Resolution Number COW-21-19/01/11 Councillor Nishikawa Councillor McTavish: Be it resolved that this meeting adjourn at 5:40 p.m. and the next regular meeting of the Committee of the Whole will be held on Tuesday February 22, 2011 at 9:00 a.m. or at the call of the Chair in the Council Chambers, Municipal Office, Port Carling. Carried. Mayor Alice Murphy Cheryl Mortimer - Clerk Draft Committee of the Whole COMMITTEE OF THE WHOLE MINUTES January 19, 2011 PAGE # 16 Consideration of a resolution to receive the draft Committee of the Whole Meeting minutes held Page 36 of 184

37 THE CORPORATION OF THE TOWNSHIP OF MUSKOKA LAKES MINUTES SPECIAL COUNCIL ORIENTATION MEETING Friday, January 21, 2011 A Special Council Orientation Meeting was held on Friday, January 21, 2011, at 10:00 a.m., in the Council Chambers, Municipal Offices, Port Carling, Ontario. PRESENT: OFFICIALS PRESENT: Mayor Alice Murphy W. Schmid - CAO C. Mortimer - Clerk COUNCILLORS: N. Donald - Development Services Coordinator S. Bos - Building Inspection/Septic System Inspector Ron Brent J. Stevens - Treasurer Jean-Ann Baranik R. Hayes - Fire Chief Bob McTavish J. Schneider - Assistant Chief Allen Edwards, 1:20 pm L. Saumur - Manager of Parks, Recreation and Facilities Donald Furniss, 3:10 pm L. Troup - Public Works Superintendent Gault McTaggart Phil Harding REGRETS: Ruth Nishikawa Brad Burgess 1. Call to Order a. Mayor Murphy called the meeting to order at 10:05 a.m. 2. Adoption of Agenda a. Consideration of a resolution to adopt the agenda as amended. Resolution Number SC-1-21/01/11 Councillor McTaggart Councillor Furniss: Be it resolved that the Special Council agenda dated January 21, 2011 be adopted as amended to add items: Draft Special Council Minutes - 5.a. Discussion and consideration Re: Outdoor Rink at Hanna Park. - 5.b. Report from the CAO Re: Attendance at ROMA / OGRA Conference. - 6.a. Closed Session for litigation matters. Carried. SPECIAL COUNCIL ORIENTATION MINUTES January 21, 2011 PAGE # 1 Consideration of a resolution to adopt the Special Council Orientation Meeting minutes held on January 21, Page 37 of 184

38 3. Disclosure of Interest a. Refer to item 5.b., Report from the CAO Re: Attendance at ROMA / OGRA Conference. 4. Delegations and Petitions a. Administration Council Orientation Presentations 1. CAO Walt Schmid The CAO provided an orientation presentation regarding the office of the CAO, Council Staff relations and a general overview of the Township. A copy of the presentation is attached. Mayor Murphy requested Council to review the Township s Strategic Plan and provide her with feedback and comments to move forward. 2. Development Services Neil Donald The Development Services Coordinator provided an orientation presentation regarding Building Services and By-law Enforcement. A copy of the presentation is attached. Sandy Bos, Building Inspection/Septic System Inspector, provided a presentation regarding the Township s Septic System Re-inspection Program. A copy of the presentation is attached. 3. Treasurer Julie Stevens The Treasurer provided an orientation presentation regarding the Treasury Department functions, including budget, taxation and finance reporting. A copy of the presentation is attached. In response to the Treasurer, Council discussed the proposed budget schedule timeline and directed that the draft budget be prepared with the inclusion of the consumer price index. Draft Special Council Minutes 4. Fire and Emergency Services Richard Hayes Mayor Murphy left the Council Chambers at 1:20 p.m. and Deputy Mayor Edwards assumed the Chair. Mayor Murphy returned at 1:30 p.m. and assumed the Chair and Deputy Mayor Edwards returned to the Council Table. SPECIAL COUNCIL ORIENTATION MINUTES January 21, 2011 PAGE # 2 Consideration of a resolution to adopt the Special Council Orientation Meeting minutes held on January 21, Page 38 of 184

39 The Fire Chief and Assistant Chief provided an orientation presentation regarding the Fire Department and Emergency Management. A copy of the presentation is attached. 5. Items of Business Mayor Murphy left the Council Chambers at 1:45 p.m. and Deputy Mayor Edwards assumed the Chair. Councillor Baranik left the Council Chambers at 1:45 p.m. and returned at 2:13 p.m. Mayor Murphy returned at 1:55 p.m. and assumed the Chair and Deputy Mayor Edwards returned to the Council Table. Councillor McTaggart left the Council Chambers at 1:55 p.m. and returned at 2:10 p.m. 5. Parks and Recreation Lise Saumur Time item was deferred to the next Council Orientation Session. 6. Clerk s Office Cheryl Mortimer This item was deferred to the next Council Orientation Session. 7. Public Works and Cemeteries Leonard Troup This item was deferred to the next Council Orientation Session. a. Discussion and Consideration Re: Outdoor Rink at Hanna Park. Councillor Baranik informed Council of an inquiry received to construct an outdoor rink at Hanna Park, Port Carling. Following a lengthy discussion, the following motion was considered. Resolution Number SC-3-21/01/11 Draft Special Council Minutes Councillor Harding Councillor Baranik: Be it resolved that Township Council authorize an outdoor rink at Hanna Park, Port Carling for the 2011 Winter Season subject to confirmation of insurance coverage and coordination of volunteers. Carried. SPECIAL COUNCIL ORIENTATION MINUTES January 21, 2011 PAGE # 3 Consideration of a resolution to adopt the Special Council Orientation Meeting minutes held on January 21, Page 39 of 184

40 b. Report from the CAO Re: Attendance at ROMA / OGRA Conference. A copy of the report is attached. Resolution Number SC-2-21/01/11 Councillor McTaggart Councillor Furniss: Be it resolved that the Township of Muskoka Lakes Council approve the attendance of Mayor Alice Murphy and Councillor Ron Brent to the 2011 ROMA/OGRA Conference. Carried. Councillor Furniss disclosed an indirect pecuniary interest with respect to the following discussion regarding the Bala Falls Project based on his directorship with a company that has done business with the proponent of the project. He left the meeting at 3:10 p.m. Mayor Murphy sought direction and support from Council to dialogue with Ministers of Provincial Parliament with regard to Provincial Policy as it relates to the Bala Falls Project. It was the consensus of Council for the Mayor to dialogue and seek clarity in this regard and report back. 6. Council in Closed Session a. Council in Closed Session was held to discuss litigation matters pursuant to Section 239(2) of the Municipal Act, Resolution Number SC-4-21/01/11 Councillor McTaggart Councillor Furniss: Be it resolved that Closed Session be held for litigation matters pursuant to Section 239(2) of the Municipal Act, Carried. Resolution Number: SC-5-21/01/11 Draft Special Council Minutes Councillor Baranik Councillor Harding: Be it resolved that Closed Session reconvene as Council to report on matters discussed under Closed Session. Carried. There was no report to Council following closed session. SPECIAL COUNCIL ORIENTATION MINUTES January 21, 2011 PAGE # 4 Consideration of a resolution to adopt the Special Council Orientation Meeting minutes held on January 21, Page 40 of 184

41 7. Confirming By-law a. Consideration of a by-law to confirm the proceedings of Special Council. Resolution Number SC-6-21/01/11 8. Adjournment Councillor Baranik Councillor Harding: Be it resolved that By-law , to confirm the January 21, 2011 proceedings of Council be read a first, second and third time and finally passed. Carried. a. Consideration of a resolution to adjourn. Resolution Number SC-7-21/01/11 Councillor McTavish Councillor McTaggart: Be it resolved that this meeting adjourn at 3:17 p.m. Carried. Mayor Alice Murphy Deputy Mayor Allen Edwards Cheryl Mortimer - Clerk Draft Special Council Minutes SPECIAL COUNCIL ORIENTATION MINUTES January 21, 2011 PAGE # 5 Consideration of a resolution to adopt the Special Council Orientation Meeting minutes held on January 21, Page 41 of 184

42 Report to Council- Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, 2009 Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 42 of 184

43 February 14, 2011 Members of Council The Corporation of the Township of Muskoka Lakes P.O. Box 129, 1 Bailey Street Port Carling, ON P0B 1J0 To the members of Council of The Corporation of the Township of Muskoka Lakes We are pleased to report that we have now substantially completed our audit of the consolidated financial statements of The Corporation of the Township of Muskoka Lakes for the year ended December 31, We have attached our draft auditors report. We will finalize this auditors report once we have the opportunity to discuss the results of our audit with you. The report to Council has been prepared in accordance with the assurance recommendations issued by the Canadian Institute of Chartered Accountants (CICA) entitled Communications with Those Having Oversight Responsibility for the Financial Reporting Process. That standard recommends we communicate with Council various matters including: the overall audit strategy, our responsibility as auditors, any matters arising from the audit, misstatements, significant accounting policies, and any other matters that may be of interest to Council. The overall audit strategy and our responsibility as auditors were previously communicated on January 18, 2010 in our Report to Council Initial Communication on Audit Planning. We express our appreciation for the cooperation and assistance received from the management and staff of The Corporation of the Township of Muskoka Lakes during the course of our audit. If you have any particular comments or concerns, please do not hesitate to raise them at our scheduled meeting. Yours sincerely Michael C. Bunn, CA Principal Audit Tax Advisory Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Grant Thornton LLP. A Canadian Member of Grant International Ltd Re: 2009 Consolidated Financial Statements and Page 43 of 184

44 Contents Page Status of the audit 1 Audit results 2 Reportable matters 4 Appendix A Draft Auditors Report 7 Appendix B Draft Management Representation Letter 8 Appendix C Draft Internal Control Letter 12 Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 44 of 184

45 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Status of the audit We have substantially completed our audit of the consolidated financial statements of The Corporation of the Township of Muskoka Lakes for the year ended December 31, 2009 and the results of that audit are included in this report. As noted in the covering letter, we have attached our draft auditors report as Appendix A. The following items need to be addressed/completed before that report is signed: Approval of the consolidated financial statements by Council; Receipt of signed management representation letter (draft has been attached as Appendix B) Management s responses to our internal control letter (draft has been attached as Appendix C) Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 45 of 184

46 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Audit results Our audit identified the adjusted and unadjusted non-trivial misstatements noted below. Summary of misstatements As a result of our audit procedures, we proposed (and management has agreed to record) one journal entry. The net impact of misstatements identified and adjusted in the consolidated financial statements is summarized below: Over/(Under) Statement of: Adjusted misstatements Assets Liabilities Surplus Earnings To adjust for principal repayment on debenture $ 50,894 ($ 50,894) Non-trivial misstatements noted during the course of our audit but not adjusted in the consolidated financial statements were as follows: Over/(Under) Statement of: Unadjusted misstatements Assets Liabilities Equity Earnings To reverse 2008 understatement of audit fee accrual To record understatement of 2009 audit fee accrual (excluding TCA) To record understatement of accrual for insurance deductible Total unadjusted misstatements $ 26,000 ($ 26,000) ($27,000) $ 27,000 ($ 25,000) $ 25,000 $ ($ 52,000) $ 26,000 $ 26,000 We have discussed the unadjusted misstatements with management and they have concluded that, individually and in aggregate, these unadjusted misstatements are not material to the consolidated financial statements of The Corporation of the Township of Muskoka Lakes. Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 46 of 184

47 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Additional services In addition to providing an audit opinion we have been engaged to perform the following additional services: Issuance of Auditors Report on Compliance with Agreement relating to the transfer of federal gas tax revenues These additional services did not affect the planned nature and scope of the audit. Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 47 of 184

48 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Reportable matters Internal control Management is responsible for the design and operation of an effective system of internal control that provides reasonable assurance that the accounting system provides timely, accurate and reliable financial information, and safeguards the assets of the entity. Through our role as auditors of your consolidated financial statements we possess an understanding of the entity and its environment, including internal control. However, a financial statement audit is not designed to provide assurance on internal control. Professional standards do require us to communicate to the audit committee significant deficiencies and material weaknesses in internal control that have come to our attention in the course of performing the audit. During the course of performing our audit, we identified some material weaknesses and significant deficiencies and these have been reported in our internal control letter, a copy of which is attached as Appendix C. Significant new accounting policies Effective January 1, 2009, Council adopted the revised Public Sector Accounting Handbook (PSAB) Section 1200 Financial Statement Presentation. This Section was revised as a result of the CICA Public Sector Accounting Handbook requirement to adopt the full accrual basis of accounting for local governments. Therefore, the financial statements are now presented on the full accrual basis and the comparative figures have been restated to conform with the basis of presentation. This Section establishes standards for recognition, presentation and disclosure in government financial statements. The main features of the Section are as follows: Governments are required to present a statement of financial position, statement of operations, statement of changes in net financial assets/net debt and a statement of cash flows Financial statements should present financial assets/net debt and accumulated surplus/ deficit on the statement of financial position, annual surplus/ deficit, the change in net financial assets/net debt and changes in cash flows Funds and reserves are to be reported in the notes or schedules when the government chooses to report on them. PSAB has also approved revisions to Section PS 3150 Tangible Capital Assets which are effective for fiscal years starting on or after January 1, The Section now applies to all levels of Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 48 of 184

49 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, government, including local governments. The most prominent change for local governments is the requirement to recognize and amortize all their tangible capital assets. Significant transactions The following significant transactions were noted during the course of our audit of the consolidated financial statements: Significant transaction Considerations & Results Tangible Capital Assets Capitalized opening net book value of consolidated tangible capital assets of $53,387,216 at January 1, 2009 Capitalized current year consolidated additions of $4,331,095 Recorded consolidated amortization expense of $2,510,934 for the year Receipt of G8 funding Recorded grant revenue of $863,076 which was not included in the Township s budget Significant accounting estimates During the course of our audit, we noted the following significant accounting estimates: Estimated useful lives of tangible capital assets Related party transactions not in the normal course of operations During the course of our audit, we did not note any related party transactions that were not in the normal course of operations. Cooperation during the audit We report that we received cooperation from management and the employees of the Township. To our knowledge, we were provided access to all necessary records and other documentation and any issues that arose as a result of our audit were discussed with management and have been resolved to our satisfaction. Consultations with other accountants To our knowledge, management did not seek the advice or opinion of other external accountants on financial reporting or accounting matters. Fraud and illegal acts Our inquiries of management did not reveal any fraud or illegal acts. Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 49 of 184

50 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Independence As external auditors of the Township, we are required to be independent in accordance with Canadian professional standards. These standards require that we disclose to Council all relationships that, in our professional judgement, may reasonably be thought to bear on our independence. We previously provided a letter to Council, presented as Appendix C in our Report to Council Initial Communication on Audit Planning dated January 18, 2010 which confirmed our independence with respect to The Corporation of the Township of Muskoka Lakes. Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 50 of 184

51 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Appendix A Draft Auditors Report To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Township of Muskoka Lakes We have audited the consolidated statement of financial position of The Corporation of the Township of Muskoka Lakes as at December 31, 2009 and the consolidated statements of operations, accumulated surplus, change in net financial assets and cash flows for the year then ended. These financial statements are the responsibility of the Township s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Township as at December 31, 2009 and the results of its operations and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Budget figures are provided for comparative purposes and have not been subject to audit procedures. Accordingly, we do not express an opinion on the budget figures Orillia, Ontario January 14, 2011 Chartered Accountants Licensed Public Accountants Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 51 of 184

52 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Appendix B Draft Management Representation Letter January 14, 2011 Grant Thornton LLP Chartered Accountants 6 West St. N, Suite 300 Orillia, ON L3V 5B8 Dear Sir, We are providing this letter in connection with your audit of the consolidated financial statements of The Corporation of the Township of Muskoka Lakes ( the Municipality ) as of December 31, 2009 and for the year then ended, for the purpose of expressing an opinion as to whether the consolidated financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the Municipality in accordance with Canadian generally accepted accounting principles. We acknowledge that we are responsible for the fair presentation of the consolidated financial statements in accordance with Canadian generally accepted accounting principles and for the design and implementation of internal controls to prevent and detect fraud and error. We have assessed the risk that the consolidated financial statements may be materially misstated as a result of fraud, and have determined such risk to be low. Further, we acknowledge that your examination was planned and conducted in accordance with Canadian generally accepted auditing standards so as to enable you to express an opinion on the consolidated financial statements. We understand that while your work includes an examination of the accounting system, internal controls and related data to the extent you considered necessary in the circumstances, it is not designed to identify, nor can it necessarily be expected to disclose, fraud, shortages, errors and other irregularities, should any exist. Certain representations in this letter are described as being limited to matters that are material. An item is considered material, regardless of its monetary value, if it is probable that its omission from or misstatement in the consolidated financial statements would influence the decision of a reasonable person relying on the consolidated financial statements. We confirm, to the best of our knowledge and belief, as of January 14, 2011, the following representations made to you during your audit. Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International. All rights reserved. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 52 of 184

53 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Financial statements 1. The consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Municipality as at December 31, 2009 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Completeness of information 2. We have made available to you all financial records and related data and all minutes of the meetings of Council and committees thereof. Summaries of actions of recent meetings for which minutes have not yet been prepared have been provided to you. All significant Council and committee actions are included in the summaries. 3. There are no material transactions that have not been properly recorded in the accounting records underlying the consolidated financial statements. The adjusting journal entry which have been proposed by you is approved by us and will be recorded on the books of the Municipality. 4. We are unaware of any known or probable instances of non-compliance with the requirements of regulatory or governmental authorities, including their financial reporting requirements. 5. We are unaware of any violations or possible violations of laws or regulations the effects of which should be considered for disclosure in the consolidated financial statements or as the basis of recording a contingent loss. 6. We have identified to you all known related parties and related party transactions, including sales, purchases, loans, transfers of assets, liabilities and services, leasing arrangements guarantees, non-monetary transactions and transactions for no consideration. 7. You provided a non-attest service by assisting us with drafting the consolidated financial statements and related notes. In connection with this non-attest service, we confirm that we have made all management decisions and performed all management functions, have the knowledge to evaluate the accuracy and completeness of the consolidated financial statements, and accept responsibility for such consolidated financial statements. Fraud and error 8. We have no knowledge of fraud or suspected fraud affecting the Municipality involving management; employees who have significant roles in internal control; or others, where the fraud could have a non-trivial effect on the consolidated financial statements. 9. We have no knowledge of any allegations of fraud or suspected fraud affecting the Municipality s consolidated financial statements communicated by employees, former employees, analysts, regulators or others. 10. We believe that the effects of the uncorrected financial statement misstatements summarized in the accompanying schedule are immaterial, both individually and in the aggregate, to the consolidated financial statements taken as a whole. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 53 of 184

54 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Recognition, measurement and disclosure 11. We believe that the significant assumptions used in arriving at the fair values of financial instruments as measured and disclosed in the consolidated financial statements are reasonable and appropriate in the circumstances. 12. We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities, both financial and non-financial, reflected in the consolidated financial statements. 13. All related party transactions have been appropriately measured and disclosed in the consolidated financial statements. 14. The nature of all material measurement uncertainties has been appropriately disclosed in the consolidated financial statements, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the consolidated financial statements. 15. All outstanding and possible claims, whether or not they have been discussed with legal counsel, have been disclosed to you and are appropriately reflected in the consolidated financial statements. Refer to Note 10(a) in the consolidated financial statements. 16. All liabilities and contingencies, including those associated with guarantees, whether written or oral, have been disclosed to you and are appropriately reflected in the consolidated financial statements. 17. All off-balance sheet financial instruments have been properly recorded or disclosed in the consolidated financial statements. 18. The Municipality has not purchased any derivative financial instruments for hedging or speculative purposes during the year. 19. With respect to environmental matters: (a) at year end, there were no liabilities or contingencies that have not already been disclosed to you; (b) liabilities or contingencies have been recognized, measured and disclosed, as appropriate, in the consolidated financial statements; and (c) commitments have been measured and disclosed, as appropriate, in the consolidated financial statements. 20. The Municipality has satisfactory title to (or lease interest in) all assets, and there are no liens or encumbrances on the Municipality s assets nor has any been pledged as collateral. 21. We have disclosed to you, and the Municipality has complied with, all aspects of contractual agreements that could have a material effect on the consolidated financial statements in the event of non-compliance, including all covenants, conditions or other requirements of all outstanding debt. Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 54 of 184

55 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, The Goods and Services Tax (GST) transactions recorded by the Municipality are in accordance with the federal regulations. The GST liability/receivable amounts recorded by the Municipality are considered complete. 23. Employee future benefit costs, assets, and obligations have been determined, accounted for and disclosed in accordance with the requirements of Section 3461 Employee Future Benefits of the Canadian Institute of Chartered Accountants Handbook Accounting. 24. There have been no events subsequent to the balance sheet date up to the date hereof that would require recognition or disclosure in the consolidated financial statements. Further, there have been no events subsequent to the date of the comparative consolidated financial statements that would require adjustment of those consolidated financial statements and related notes, other than the adoption of PS3150 regarding accounting for tangible capital assets as described in Note 2 to the consolidated financial statements. Other 25. We have considered whether or not events have occurred or conditions exist which may cast significant doubt on the Municipality s ability to continue as a going concern and have concluded that no such events or conditions are evident. Yours very truly, [Treasurer] Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 55 of 184

56 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Appendix C Draft Internal Control Letter Members of Council The Corporation of the Township of Muskoka Lakes P.O. Box 129, 1 Bailey Street Port Carling, ON P0B 1J0 February 14, 2011 Dear Members of Council Re: Internal control findings from the 2009 audit Receiving observations and findings on your financial reporting processes and controls is one of the benefits of an annual financial statement audit. Grant Thornton LLP has implemented processes and technology to address the changing standards of conducting a financial statement audit. This approach includes an increased emphasis on internal control. Our procedures identified a number of items that we need to bring to your attention. Our audit is planned and conducted to enable us to express an audit opinion on the annual financial statements. The matters dealt with in this letter came to our attention during the conduct of our normal examination, and as a result, this letter does not necessarily include all matters that would be uncovered through a more extensive or special engagement. The standards of the public accounting profession require us to report annually to you our findings on certain weaknesses and deficiencies in your internal controls. We have categorized our findings as follows: Material weaknesses (individual or aggregated deficiencies that could result in a material misstatement in the financial statements due to fraud or error) Significant deficiencies Other deficiencies and advisory comments Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 56 of 184

57 Report to Council Communication of audit results The Corporation of the Township of Muskoka Lakes For the year ended December 31, Material weaknesses 1. During our audit, we noted a lack of segregation of duties as some journal entries were both posted and approved by the Financial Services Coordinator (i.e. no independent review) 2. There is no code of ethics/conduct for municipal employees (except for Council and the Building Department). 3. There is no anonymous submission process to receive and evaluate concerns by employees regarding questionable practices and there is no process to receive, evaluate and retain complaints regarding accounting and financial reporting. Management s response: It is management s responsibility to weigh the costs of implementing controls against the benefits that the controls will achieve. The purpose of this letter is to provide you with the information related to the identified risks so that you can make the necessary decisions. Observations not addressed from the prior year have been repeated to allow management to challenge past judgments in the current operating environment As your auditor and advisor, it would be a pleasure to discuss our findings with you and provide you with appropriate guidance to improve your controls. The matters discussed herein are those that have been noted as of January 14, 2011 and we have not updated our procedures regarding these matters to the current date. In addition, this communication is prepared solely for the information of management and is not intended for any other purposes; we accept no responsibility to a third party who uses this communication. Yours sincerely Michael C. Bunn, C.A. Principal Grant Thornton LLP Michael Bunn, CA, Grant Thornton to attend at 10:15 a.m. Re: 2009 Consolidated Financial Statements and Page 57 of 184

58 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22, 2011 SUBJECT: ACTION ITEMS FROM COMMITTEE OF THE WHOLE RECOMMENDATION: That the following recommendations be enacted for action: - January 19, 2011 Committee of the Whole meeting recommendations 2 and 4 to 18. APPROVALS: Date Signature Submitted By: Cheryl Mortimer, Clerk 16/02/11 Original signed by C. Mortimer Acknowledged: Walt Schmid, CAO 16/02/11 Original signed by W. Schmid EXECUTIVE SUMMARY: Based on the requirement of 8.e) of Township Procedural By-law , as amended, it is recommended that recommendations 2 and 4 to 18 from the January 19, 2011 Committee of the Whole meeting be enacted for action. ORIGIN: The Committee of the Whole passed the following action resolutions on January 19, 2011 and they are recommended for approval by Council: COW-2-19/01/11 COW-4-19/01/11 COW-05-19/01/11 COW-06-19/01/11 December 15, 2010 Committee of the Whole meeting minutes adopted. Authorized the return of the $60,000 security for the sewage lagoon repair deficiencies to Touchstone on Lake Muskoka Inc. Approved the request of the Muskoka Lakes Chamber of Commerce for the use of the Muskoka Lakes Sports Park for the Bala Summer market in accordance with Parks C-PR-04 and the recommendations in the staff report dated January 19, Committee also approved the Muskoka Lakes Sports Park usage fee of $50.00 per day of use for the market. Approved the request of the Muskoka Lakes Chamber of Commerce for the use of Hanna Park for the Port Carling Summer market in accordance with Parks C-PR-04 and the recommendations in the staff report dated January 19, Committee also approved the Hanna Park usage fee of $50.00 per day of use for the market. Report from the Clerk Re: Action items from Committee of the Whole. Page 58 of 184

59 Page 2 Action Items Report February 22, 2011 COW-7-19/01/11 COW-8-19/01/11 COW-9-19/01/11 COW-10-19/01/11 COW-11-19/01/11 COW-12-19/01/11 COW-13-19/01/11 COW-14-19/01/11 COW-15-19/01/11 Authorized the Muskoka Lakes Snow Trails Association to construct a snowmobile trail on the public road allowance shown as Parts 1-6, 8, 11, of Plan 35R subject to conditions. Approved revisions to Policy C-FS-10 Tangible Capital Assets as outlined in the staff report dated January 19, Approved pay grid step increases for those eligible employees, retroactive to January 1, 2011, subject to the completion of a Performance Evaluation Report and a recommendation from the appropriate Department Head. Tentative approval for the application to purchase an Original Shore Road Allowance lying in front of Concession 12, Lot 2, (Watt) Skeleton Lake, SMITH, ( ), subject to conditions. Tentative approval for the application to purchase an Original Shore Road Allowance lying in front of Concession 13, Lot 29, (Monck) Lake Muskoka, TOTAL REAL ESTATE INC., ( ), subject to conditions. Tentative approval for the License Agreement between Guiseppe Dicaro and the Township of Muskoka Lakes for the encroachment of a frame dwelling, Lot 13, Concession B, (Bala) ( ), subject to conditions. Approved the Fire Chief to complete the In-Plant Agreement with St. John s Ambulance. Approved to hire recruit volunteer firefighters and upon completion of the Ontario Fire Service Firefighter Curriculum Component 1 firefighter training, the participant will receive $12.00/hr training rate during the one year probationary period. The successful participant will then be brought onto the fire department as an active probationary volunteer firefighter. Authorized the fire department to purchase 21 sets of Bunker Gear for existing firefighters prior to the expected cost increase of March 1, 2011, and that this expenditure is approved prior to the approval of the 2011 Budget. COW 16-19/01/11 Appointed John Wachtler, Chris Foxwell, and Jason McCartney as Worker Representatives and Fire Chief Richard Hayes and Assistant Chief Jim Schneider as Management Representatives for the Fire Department Joint Health & Safety Committee. Report from the Clerk Re: Action items from Committee of the Whole. Page 59 of 184

60 Page 2 Action Items Report February 22, 2011 COW-17-19/01/11 COW-18-19/01/11 Appointed Rochelle Jeffries and Sandy Bos as Non- Management Non-Union Members and Bud Rettie as Management, Non-Union member on the Township Health & Safety Committee. Amended Health and Safety Policy # HS-018-POL in regard to the structure of the Township Health & Safety Committee as presented in the staff report dated January 19, BACKGROUND: We are recommending that the above referenced resolutions be enacted for action. This process is required under the Township s Procedural By-law. At the beginning of each term of Township Council, a resolution is passed to authorize the circulation of zoning by-law amendments, including concurrent consent applications, prior to Council s approval, therefore, they do not require action. FINANCIAL: NA Report from the Clerk Re: Action items from Committee of the Whole. Page 60 of 184

61 BY-LAW ZBA-40/ ONTARIO INC. By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 61 of 184

62 By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 62 of 184

63 By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 63 of 184

64 By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 64 of 184

65 By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 65 of 184

66 By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 66 of 184

67 By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 67 of 184

68 By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 68 of 184

69 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22, 2011 SUBJECT: By-law , Ontario Inc., Part of Lots 14 and 15, Concession B, Part 2, Plan 35R-4471, (Medora), Civic Address: 1011 Grey Street. Roll #: RECOMMENDATION: That By-law be given three readings with the following minor amendment: That By-law be rescinded. APPROVALS: Date Signature Submitted By: M. Ellis, Planner 02/14/11 Original signed by M. Ellis Approved By: S. Fahner, Director of Planning 02/14/11 Original singed by S. Fahner Acknowledged: W. Schmid, CAO 02/14/11 Original singed by W. Schmid ORIGIN A severance application (B/71/10/ML) has been submitted to create one additional lot. The proposed severed lot will contain a dwelling and two sheds. The proposed retained lot will contain a dwelling. The purpose of this by-law is to provide an exemption to Section a of By-law 87-87, as amended, being the minimum lot area requirement for newly created lots. The minimum lot area requirement is 7,500 square feet in a community Residential (R1) Zone. The proposed retained lot is to have 7,130 square feet in lot area. The severance and by-law will have the effect of creating one additional lot that is undersized in lot area. No changes are proposed at this time. Please note that the measurements regarding lot area have been reduced in By-law Reducing the measurements will ensure conformity with By-law , once the new survey has been prepared. Particulars of Retained Lot Lot Frontage: 75 feet By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 69 of 184

70 Lot Area: 7,130 square feet Particulars of Severed Lot Lot Frontage: Lot Area: 120 feet 11,730 square feet BACKGROUND: PLANNING DATA: Existing Use: Proposed Future Use: Existing Zoning: Official Plan Designation: Residential (R1) Residential Residential (R1) Urban Centres (Bala) Schedule Number: 56 Access: Neighbouring Uses: Original Shore Road Allowance: Fisheries Resource: Civic Address: Gray Street (Severed lot)/ Aberdeen Street (Retained lot) Residential Not Applicable Not Applicable 1011 Grey Street PLANNING CONSIDERATIONS: 1. Background Consent application (B/71/10/ML), to create one additional lot, was considered by the Committee of Adjustment on February 18, A condition of the severance was that the retained lot being brought into conformity with the Zoning By-law by means of an exemption for lot area. 2. Lot Area Exemption The current Comprehensive Zoning By-law (By-law 87-87) requires new lots zoned R1 to have a minimum area of 7,500 square feet. The retained lot complies with the minimum lot area requirement of 5,500 square feet proposed in the new draft Comprehensive Zoning By-law (By-law ). Reducing this minimum requirement promotes intensification. It should be noted that at the time of writing this report, By-law has been to one public meeting, but has not been approved by Council. By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 70 of 184

71 3. By-law By-law was passed to permit a Learning Centre on the property. The Learning Centre was permitted in two buildings (the main dwelling on the proposed severed lot and the accessory building on the retained lot). This by-law was very specific in permitting the Learning Centre within the two buildings on the property. As the current consent application and proposed by-law are applied for, the learning centre would be permitted on two lots. Planning staff is concerned about the impacts of permitting such a use on both the retained and severed lots. It is unknown whether the applicant wishes to carry on with the Learning Centre use. Therefore, staff recommends as a minor amendment to By-law , that By-law be rescinded. Rescinding By-law is also recommended as a condition of the consent. Please see the staff report for the February 18, 2011 Committee of Adjustment agenda for all other information. By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 71 of 184

72 Ontario Inc. The dwelling on the retained lot Ontario Inc. The dwelling on the severed lot By-law , ZBA-40/10, Ontario Inc., Part Lot 117 on Plan 19, Part Lots 134 & 135 on Plan 21, Part Page 72 of 184

73 BY-LAW ZBA-41/10 UPJOHN By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 73 of 184

74 By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 74 of 184

75 By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 75 of 184

76 By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 76 of 184

77 By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 77 of 184

78 By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 78 of 184

79 By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 79 of 184

80 By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 80 of 184

81 By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 81 of 184

82 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22, 2011 SUBJECT: By-law , Upjohn, Lot 5, Concession 7, (Monck), Civic Address: 1055 Nichols Road, Roll #: RECOMMENDATION: That By-law be given three readings with the following minor amendment: That a dwelling on the retained lot is deleted as a permitted use in an Environmental Protection (EP1) zone. APPROVALS: Date Signature Submitted By: M. Ellis, Planner 02/14/11 Original Signed by M.Ellis Approved By: S. Fahner, Director of Planning 02/14/11 Original Signed by S. Fahner Acknowledged: W. Schmid, CAO 02/14/11 Original Signed by W. Schmid ORIGIN A severance application (B/72/10/ML) has been submitted to create one additional lot. The proposed severed lot is vacant. The proposed retained lot will contain an existing dwelling. The purpose of this by-law is to rezone the proposed retained lot from Environmental Protection (EP1) and Open Space (OS2) to Environmental Protection (EP1). The purpose of this by-law is to also permit an existing dwelling to continue to be used as a residential use in an EP1 zone. There is an existing dwelling on the proposed retained lot. This by-law will have the effect of rezoning the subject land and permitting a residential use in an EP1 zone on the proposed retained lot. Please note the proposed retained land is being donated to the Muskoka Heritage Trust. Muskoka Heritage Trust wishes to protect ecologically significant land in Muskoka. Particulars of Retained Lot Lot Frontage: Lot Area: 3,000 +feet 65 acres By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 82 of 184

83 Particulars of Severed Lot Lot Frontage: Lot Area: 1,181 feet 34 acres BACKGROUND: PLANNING DATA: Existing Use: Proposed Future Use: Existing Zoning: Official Plan Designation: Open Space Open Space Open Space (OS2), Environmental Protection (EP1) Rural (Area 3: Country Residential) Schedule Number: 39 Access: Neighbouring Uses: Original Shore Road Allowance: Fisheries Resource: Civic Address: Nichols Road/South Monck Drive Rural (Open Space) Closed Not Applicable 1055 Nichols Road PLANNING CONSIDERATIONS: 1. Background Consent application (B/72/10/ML), to create one additional lot, was considered by the Committee of Adjustment on February 18, The applicant requests that the retained lot be re-zoned to Environmental Protection (EP1), as it will be donated to the Muskoka Heritage Trust. The Heritage Trust has indicated that they will be applying to place the subject lands into the Conservation Land Tax Incentive Program, which requires the lands to be zoned Environmental Protection. 2. Re-zoning from OS2 to EP1 The OS2 zone permits agricultural uses, conservation, forestry, a hunt camp, open space recreation, and a wayside pit or quarry. The only permitted uses in the EP1 zone are buildings and structures required for the production of cranberries, flood control, erosion control and the provision of pedestrian access and other activities. A dwelling is not a permitted use in the EP1 zone. By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 83 of 184

84 Re-zoning the retained lot is not required as condition of consent. However, as mentioned above, the Muskoka Heritage Trust (the prospective land owner) requires this land to be rezoned to EP1 for tax purposes. The portion of the lands that is located in the Town of Bracebridge was re-zoned to Environmental Protection (EP) by the Bracebridge Town Council on January 19, Minor Amendments The retained lot, which is to be re-zoned to EP1 and donated to the Muskoks Heritage Trust, contains a dwelling. If this dwelling were being used as a dwelling, it would be considered as a legal non-conforming use (as dwellings are not permitted in the OS2 zone). However, because the dwelling has not been used as such, likely for a number of decades, it does not enjoy legal non-conforming status. The proposed By-law ( ) proposes to permit a dwelling in an EP1 zone. Doing so would also permit the dwelling to be re-constructed if it was demolished in the future. Permitting a residential use on the retained lot, if it were zoned EP1 would not maintain the intent of that zone, which is to preserve lands for conservation uses. In addition, the lot does not have proper frontage as Nichols Road, in this location, is seasonally maintained. Therefore, planning staff recommends a minor amendment to the proposed by-law to delete a dwelling on the retained lot as a permitted use in the EP1 zone. By-law was drafted to re-zone the entire lands to EP1. However, the applicant s agent has indicated the severed lot is intended to be used as a hunt camp. The current zoning (OS2) permits Hunt Camps, the proposed zoning (EP1) does not. Planning staff, therefore, recommends a minor amendment to the proposed by-law to re-zone only the retained lot to EP1. 4. Application Fees Because the retained lot is to be donated to a charitable organization that aims to preserve ecologically sensitive land in Muskoka and is re-zoned to EP1 to tax purposes, the applicant requests the application fee of $ for the re-zoning be waived. Refunding $1, of the required application fees (for the consent and septic inspection) was considered by the Committee of Adjustment on February 18, Refunding the fee for the re-zoning can be considered by Council. Please see the staff report for the February 18, 2011 Committee of Adjustment agenda for all other information. By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 84 of 184

85 Upjohn The dwelling on the retained lot By-law , ZBA-41/10, Upjohn, Lot 5, Concession 7, (Monck), Roll # Page 85 of 184

86 BY-LAW ZBA-37/10 STILLS BAY LANDING CORP. By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 86 of 184

87 EXPLANATION OF THE PURPOSE AND EFFECT OF ZONING BY-LAW AMENDMENT ZBA-37/10, BY-LAW , STILLS BAY LANDING CORPORATION, ROLL # The lands affected are described as Part of Lot 8, Concession 8 (in the former Township of Medora), now in the Township of Muskoka Lakes, more particularly described as Parts 4, 5, and 8, Plan 35R The lands are presently in the ownership of Stills Bay Landing Corporation. The purpose of this by-law is to provide an exemption to Section e.i) a) of By-law 87-87, as amended, being the maximum permitted dock length of 80 feet in a Waterfront Commercial (WC2) zone. The purpose of this by-law is also to provide an exemption to Section e.i) b) of By-law 87-87, as amended, being the minimum permitted side yard setback for docks of 30 feet in a WC2 zone. The purpose of this by-law is also to provide an exemption to Section e.i) d) of By-law 87-87, as amended, being the maximum permitted dock width of 25% of the lot frontage in a WC2 zone. The applicants wish to reconstruct and enlarge existing docks to a maximum length of 150 feet, to a width of 130 feet or 75.6% of the lot frontage, and to be located two feet from the side lot line at the closest point. Please see the attached sketch. Please note that the proposal would result in an additional 12 slips. Please also note that existing docks are 99 feet in length and approximately 128 feet in width or 74.4% of the lot frontage, and an existing dock is over the southerly projected side lot line. This by-law will have the effect of permitting existing docks to be reconstructed and enlarged to a length of 150 feet, to a width of 130 feet or 75.6% of the lot frontage, and to be located two feet from the side lot line. By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 87 of 184

88 By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 88 of 184

89 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22 nd 2011 SUBJECT: By-law , ZBA-37/10, Still s Bay Landing Corporation, Part of Lot 8, Concession 8, (Medora), Parts 4, 5 & 8, Plan 35R-10754, Roll # RECOMMENDATION: That By-law (Still s Bay Landing Corporation) be given three readings, with a minor amendment to remove one finger on the proposed northerly dock extension and that restrictions be placed on speeds as noted in the Boat Impact Assessment by Michalski Nielsen Associates Ltd. dated December APPROVALS: Date Signature Submitted By: D. Pink, Senior Planner 14/02/11 Original signed by D. Pink Approved By: S. Fahner, Director of Planning 14/02/11 Original signed by S. Fahner Acknowledged: W. Schmid, CAO 14/02/11 Original signed by W. Schmid ORIGIN BACKGROUND Particulars of Property: Lot Frontage 172 ft. (by-law) Lot Area 0.4 acres Proposed Exemptions: i) Exemption from Section e.i) a) being the maximum permitted dock length of 80 feet in a Waterfront Commercial (WC2) zone. ii) iii) Exemption from Section e.i) b) being the minimum permitted dock side yard setback of 30 feet in a WC2 zone. Exemption from Section e.i) d) being the maximum permitted dock width of 25% of the lot frontage in a WC2 zone. The applicants wish to reconstruct and enlarge existing docks to a maximum length of 150 feet, two feet from the side lot line, and to a width of 130 feet or 75.6%. Page 1 of 6 By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 89 of 184

90 BACKGROUND PLANNING DATA Official Plan Designation: By-law Zoning: Waterfront Waterfront Commercial (WC2) Schedule No.: 27 Access: Neighbouring Uses: Original Shore Road Allowance: Fisheries Resource: Civic Address: Hamill s Point Road Waterfront Residential Not Applicable Type II General Fish Habitat 1045 Hamill s Point Road PLANNING CONSIDERATIONS 1. Official Plan The subject property falls within the Waterfront designation, consisting of low density residential uses on mainland and island shorelines; interspersed with some commercial development, primarily resorts and marinas; amongst a predominantly forested landscape. Goals and objectives in this designation include encouraging the redevelopment and expansion of commercial businesses such as marinas and resorts and to recognize their important economic function, to support the continued and enhanced viability of resorts and marinas, other commercial uses, and residential uses as important elements in the Muskoka economy, and to foster redevelopment opportunities of residential and commercial properties while maintaining the character of the waterfront area. One of the main principles of the Waterfront designation is to ensure that the built form does not dominate the Waterfront to the detriment of the natural form. Section B.5.14 outlines the basis for side yard setbacks of shoreline structures, that is to allow for the ingress and egress of boats, while maintaining reasonable views and separation for privacy between neighbouring properties. Section B.5.18 provides general policy on the redevelopment of existing properties. Current development standards shall be followed as closely as possible. Section B.5.29 states that boat impact assessments shall be prerequisite for development or redevelopment where boating may be concentrated for the following situations: a) The cumulative establishment of docking or mooring facilities from the date of adoption of this Plan, accommodating fifteen (15) or more boats; Section B.5.54 provides policy on land use compatibility, stating that development shall have regard to compatibility of uses in the area and, where necessary, shall have provisions for buffering, screening, limiting built size, increasing setbacks, and lot dimensions, among others. Page 2 of 6 By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 90 of 184

91 Section B.11.4 states that limited expansion, enlargement, or redevelopment of existing commercial establishments shall be permitted to approved limits detailed in the implementing comprehensive zoning by-law. Where expansion exceeds the limits as established in zoning, Section B.11.6 states consideration of proposals shall take into account the suitability of the site and the ability of the surrounding area to accommodate and sustain the expansion. Marina specific policy B states that marinas shall be encouraged to expand in a manner to provide additional boat storage thereby alleviating the pressure for docking facilities. Valet service in lieu of dock expansion is encouraged. Official Plan policies indicate that standards regulating shoreline structures shall be detailed in the implementing comprehensive zoning by-law. Section B.13.3 states buildings, structures, or works extending beyond the normal or controlled high water mark shall be designed and located in a suitable manner so as to have regard for the following matters: a) Critical fish and wildlife habitat; b) The natural flow of water; c) Potential damage from flood and ice heaving; d) Privacy; and, e) Other shoreline, resource development, and environmental policies. Section B.13.4 states that to maintain a balance of natural and built form, the maximum cumulative width of shoreline structures, including all docks, shall be the lesser of 25% or 75 feet of the lots water frontage, with the exception of the following: d) Marinas which shall be limited to 75 percent. Section B.13.5 states that shoreline structures shall not impede the immediate view of surrounding properties, as defined by the extension of property lines onto the water. Section F directs that the potential impact of similar approvals be considered. The cumulative impact of amendments will be considered to have greater weight than site specific considerations. 2. Zoning By-law The subject property is zoned Waterfront Commercial (WC2). The zoning by-law limits the maximum permitted dock length of all Waterfront Commercial properties to 80 feet, dock width to 25% of the lot frontage, and requires a minimum side yard setback of 30 feet. A dock length of 150 feet, dock width of 130 feet or 75.6%, and a side yard setback of two feet are proposed. The proposed new Comprehensive Zoning By-law would permit 75% frontage coverage and a dock length of 125 feet. 3. Site Characteristics Staff inspected the subject property on December 2 nd The property lacks depth as Hamill s Point Road comes within close proximity to the waterfront in this area, and is fairly open as it contains mainly a parking/turnaround area and small convenience store. Page 3 of 6 By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 91 of 184

92 The property is located at the end of a small cove. At the southerly limit of the property, the shoreline extends directly south and away from existing docks. Shoreline structures on neighbouring properties are not located in close proximity to the Marina s docks. At the northerly limit of the property, the shoreline extends in a north-westerly direction. This area is more congested with neighbouring shoreline structures, in fairly close proximity. 4. Existing and Proposed Development The property is known as the Lake Joseph Marina. The facility operates mainly as a partial amenity marina servicing water access only property owners on Lake Joseph. Existing dockage can best be described as three finger docks with varying sized slips. The northerly finger dock extends to a length of approximately 90 feet and contains 17 slips. The middle finger dock contains 12 slips and extends approximately 95 feet in length. The southerly finger dock hugs a portion of the shoreline and then stretches over the extension of the property line, contains nine slips, and extends approximately 65 feet in length. The applicants propose to reconstruct the northerly and middle finger docks. The northerly dock is proposed to extend to a length of 150 feet and contain dockage for up to 23 boats. The middle finger dock is proposed to be enlarged to a length of 114 feet, with dockage accommodating up to 18 boats. No changes are proposed to the most southerly docks. Current capacity of the marina is 38 boats, with a proposed capacity of 50 boats (or 12 additional boats). 5. Dock Length The current limit of 80 feet is proposed to increase through the Comprehensive Zoning By-law review to 125 feet. The dock length proposed for the northerly dock is 150 feet, and 114 feet for the southerly dock extension. Maximum dock length for a Residential property is 66 feet. The current 80 feet maximum is less than one additional boat length and is too restrictive. 6. Dock Width Although the proposed dock width of approximately 130 feet, or 75.6% of the lot frontage is a substantial increase from the maximum permitted of 25% or 43 feet, existing docks are currently approximately 128 feet in width, or 74.4% of the lot frontage. Further, Official Plan policy does permit a width of 75% for marinas. This policy has yet to be implemented in the zoning by-law, although the proposed updated zoning by-law includes a 75% width limitation. 7. Side Yard Setback The proposed middle dock expansion comes within two feet of the extension of the southerly lot line. Although this is a considerable reduction from the by-law requirement of 30 feet, a separate existing more southerly finger dock is located 26 feet over the lot line in this area. The proposed dock extension and reduction in setback should not result in any further detriment to ingress and egress, views, or privacy than the existing situation. 8. Boat Impact Assessment Background Still s Bay of Lake Joseph has over the years witnessed increases in boat traffic stemming from the subject Marina, a nearby Waterfront Landing, and increased recreational activity. Sections B.5.29 and F.15.1 of the Official Plan allow Council to Page 4 of 6 By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 92 of 184

93 require a Boating Impact Assessment, among other studies/information, when considering a significant development/redevelopment of land requiring a zoning by-law amendment application. Policies in the Waterfront designation require Boat Impact Assessments for development accommodating 15 or more boats or commercial docking on a narrow waterbody. Although the proposal would only accommodate an additional 12 boats and is not located on a narrow waterbody, staff felt it would be prudent, as per Section F.15.1, to require a Boat Impact Assessment. Data Michalski Nielsen Associates Ltd. has completed a Boat Impact Assessment. Unfortunately, the firm was not retained until later in the summer 2010 boating season. Data collection occurred over six days in August and September 2010, however, good boating weather was not present over the Labour Day weekend. Over the busiest boating days recorded, Saturday August 28 th 2010 and Sunday August 29 th 2010, 158 and 169 boats crossed the observational area, with 29 (or 18%) and 20 (or 12%) originating from or entering the Marina, respectively. On poor weather days, very little boating was observed. Findings/Conclusions The report found that on good weather days, over capacity conditions were numerous, while on poor weather days, no overcapacity occurrences were noted. The report also found that there was not any one period in the day that was more popular than others, and that most boaters originated from outside the observational area (not the Marina). Data was then reanalyzed based on the assumption that all boaters leaving the Marina were assumed to be travelling at a slow speed. This had the effect of modestly reducing the number of overcapacity occurrences. In consideration of the proposed Marina expansion, data were also analyzed based on a No Wake/Dead Slow provision, and found that the number of estimated overcapacity occasions would be reduced in comparison to present levels. The report concludes that the additional slips should be permitted, on the condition that boaters entering and leaving the Marina travel at the speed equivalent of No Wake or Dead Slow. The author is also of the opinion that benefits would be achieved by placing this speed restriction on the entire observational area (entire southern end of Still s Bay), although this option was not formally investigated. The author is of the opinion that in so doing, this part of Still s Bay would change in character to a more passive and aesthetically pleasing environment insofar as water users are concerned. Enforcement The report recommends that the zoning amendment be approved subject to placing a speed restriction on boaters via a provision in the zoning by-law and that enforcement of the recommended speed limit be undertaken voluntarily by owners/users of Lake Joseph Marina. It is admitted that changing speed limits through an amendment to the federal government s Boating Restriction Regulations is very protracted and cumbersome. In staff s opinion, Section 34 of the Planning Act does not permit placing this type of restriction through a zoning by-law amendment. Staff also questions whether this type of enforcement would be successful. Page 5 of 6 By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 93 of 184

94 9. Backlot Official Plan policies encourage marinas to expand in a manner to provide additional boat storage thereby alleviating the pressure for docking facilities. Valet service in lieu of dock expansion is encouraged. The property also consists of a backlot opposite Hamill s Point Road. This larger parcel of land contains some boat storage facilities, a shop, parking, etc. Consideration should be given to expanding storage facilities and valet service on this parcel of land, as per Official Plan policy, in order to reduce the size of the dock expansion. It is interesting to note that this option would not necessarily reduce boat traffic on Still s Bay, a major concern with the subject application. Previous site plan approval does permit additional boat storage facilities. 10. Fish Habitat According to Ministry of Natural Resources (MNR) mapping, the shoreline of the property consists of Type II General Fish Habitat. 11. Navigation In staff s opinion, the proposed docks would not result in any navigational hazard or concern. The Boat Impact Assessment also did not note this concern. This portion of shoreline is not located along a narrow waterbody. 12. By-law Administration Official Plan policies are supportive of appropriate marina redevelopment and expansion. However, in consideration of the close proximity of neighbouring shoreline structures to the north, safe ingress and egress, privacy impacts, and the findings of the Boat Impact Assessment, staff recommends that the proposed northerly dock extension be reduced by one finger. This would eliminate four additional boat slips and help alleviate some of the above noted concerns. The proposed dock length would be reduced to approximately 121 feet. This same recommendation was made to Committee of the Whole, the application, however, was approved for circulation as originally submitted. Staff also recommends that the speed restriction recommended in the Boat Impact Assessment be imposed, however, staff has concerns with implementation and enforcement of same. Page 6 of 6 By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 94 of 184

95 By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 95 of 184

96 Southerly Dock Neighbouring Shoreline Structures Northerly Dock By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 96 of 184

97 Middle Dock Still s Bay Store Northerly Dock By-law , ZBA-37/10, Stills Bay Landing Corp., Part of Lot 8, Concession 8, Parts 4,5 & 8 on Plan 35R- Page 97 of 184

98 BY-LAW ZBA-01/ ONTARIO LTD. By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 98 of 184

99 EXPLANATION OF THE PURPOSE AND EFFECT OF ZONING BY-LAW AMENDMENT ZBA-01/11, BY-LAW , ONTARIO LTD., ROLL # The lands affected are described as Part of Lot 23, Concession 3 (in the former Township of Medora), now in the Township of Muskoka Lakes, more particularly described as Part 1, Plan 35R The lands are presently in the ownership of Ontario Ltd. The purpose of this by-law is to provide an exemption to Section a of By-law 87-87, as amended, being the maximum permitted dwelling height of 35 feet in a Waterfront Residential (WR1) zone. There is a dwelling currently under construction on the lot that has been built to a height of 39 feet eight inches. The purpose of this by-law is also to provide an exemption to Sections d.ii) and e of By-law 87-87, as amended, being the maximum permitted floor area of a sleeping cabin to be 650 sq. ft. An approximately 975 sq. ft. dwelling currently exists in the second storey of the boathouse. In order to obtain a Building Permit for the dwelling under construction on land, a separate Building Permit was taken out that requires the dwelling in the second storey of the boathouse to be converted to a sleeping cabin of no larger than 650 sq. ft. The applicants wish to convert the dwelling in the second storey of the boathouse to a sleeping cabin at its existing size. This by-law will have the effect of permitting a dwelling with a height of 39 feet eight inches and a sleeping cabin in the second storey of the boathouse at a size of approximately 975 sq. ft. By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 99 of 184

100 By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 100 of 184

101 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22 nd 2011 SUBJECT: By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1, Plan 35R-21937, Roll # RECOMMENDATION: That By-law ( Ontario Ltd.) be given three readings. APPROVALS: Date Signature Submitted By: D. Pink, Senior Planner 14/02/11 Original signed by D. Pink Approved By: S. Fahner, Director of Planning 14/02/11 Original signed by S. Fahner Acknowledged: W. Schmid, CAO 14/02/11 Original signed by W. Schmid ORIGIN BACKGROUND Particulars of Property: Lot Frontage 245 ft. (by-law) Lot Area 3.3 acres Proposed Exemption: i) Exemption from Section a. being the maximum permitted dwelling height of 35 feet in a Waterfront Residential (WR1) zone. A dwelling is proposed at a height of ii) Exemption from Sections d.ii) and e being the maximum permitted floor area of a sleeping cabin to be 650 sq. ft. A dwelling unit exists in the second storey of the boathouse and the applicants wish to convert it to a sleeping cabin at its existing size of approximately 975 sq. ft. BACKGROUND PLANNING DATA Official Plan Designation: By-law Zoning: Waterfront Waterfront Residential (WR1) Page 1 of 4 By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 101 of 184

102 Schedule No.: 28 Access: Neighbouring Uses: Original Shore Road Allowance: Fisheries Resource: Civic Address: Pine Glen Road Waterfront Residential, Rural Residential, Tourist Resort Not Applicable Type II General Fish Habitat 1025 Pine Glen Road PLANNING CONSIDERATIONS 1. Official Plan The subject property falls within the Waterfront Designation. The Waterfront setting consists of open space and low density residential land uses on mainland and island shorelines amongst a predominantly forested landscape. One of the main objectives of the Official Plan policies for the Waterfront designation is to ensure that built form does not become concentrated or dominate the Waterfront to the detriment of natural form. Section B.5.18 states that the redevelopment of existing properties shall be encouraged to follow current development standards, as closely as possible. Section B.5.47 states that structurally, high profile development shall generally not be permitted. The height of any structure should be appropriate to its setting and terrain, including slope, tree cover, setbacks, and architecture and generally not exceed the height of the tree canopy. Section B.5.48 states that architectural designs which soften the appearance of two storey structures will be required in a Site Plan Control by-law to minimize the prominence of structural development along the shoreline. Walkout lower levels will be permitted but will be encouraged to be generally less than one half of the width of the structure (dwelling). Lake System Health Program policies for the redevelopment of lots on highly sensitive waterbodies require the implementation of mitigation measures in order to prevent negative impacts to water quality. 2. Zoning By-law The subject property is zoned Waterfront Residential (WR1). The zoning by-law implements the Official Plan policies by limiting the maximum permitted dwelling height to 35 feet. The dwelling is proposed at a height of The zoning by-law also limits the maximum size of a sleeping cabin to 650 sq. ft. A legal noncomplying dwelling exists in the second storey of the boathouse and the applicants wish to convert it to a sleeping cabin at its current size of 975 sq. ft. 3. Site Characteristics Staff inspected the subject property on January 6 th The property is relatively level at the rear and then slopes quite steeply down to the water in front of the dwelling under construction. Page 2 of 4 By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 102 of 184

103 The shoreline vegetative buffer and areas outside of building, septic, and driveway envelopes are very well vegetated. Consequently, the dwelling is very well screened from the water. 4. Existing and Proposed Development The property currently contains a legal non-complying boathouse with dwelling above. The footprint of the structure and floor area above are each approximately 975 sq. ft. This structure was built circa An approximately 4,300 sq. ft. dwelling is under construction on land, together with a 480 sq. ft. garage or storage building. The dwelling has been built to a height of The resulting lot coverage is approximately 9.8% of the lot area within 200 feet of the present water s edge. This is in compliance with density provisions. 5. Building Permits In order to obtain a Building Permit for the new dwelling on land, a separate Building Permit was also issued that requires the second storey of the boathouse to be reduced to 650 sq. ft. in size and converted to a sleeping cabin. The existing structure can be used as is during construction of the new dwelling, and at which time occupancy is requested, the living space above the boathouse must be reduced and converted as per the additional Building Permit. The current zoning application looks to retain the space above the boathouse at its current size of 975 sq. ft. 6. Order to Comply Drawings submitted as part of the Building Permit Application for the new dwelling show compliance with the 35 foot height limitation. As stated above, the structure has been built to a height of Accordingly, an Order to Comply was issued on December 1 st Dwelling Height The submitted elevation drawings of the dwelling show a multi-staggered structure with a peak at roughly the centre of the building. It is this peak which exceeds 35 feet in height, not the entire ridgeline. The building does not have the appearance of a three storey structure. As stated above, the structure is also very well screened from the lake and the visual impact from the over height peak is minimal. In order to bring the structure into compliance with the height requirement, grade could be brought up along a portion of the lakeside of the building. There are doors, however, along this portion of the building. 8. Dwelling Setback The minimum permitted front yard setback is 66 feet. The new dwelling was constructed over 73 feet from the present water s edge. This setback assists in reducing the visual impact of the additional height when viewed from the water. 9. Boathouse Dwelling The zoning by-law does not permit a dwelling in the second storey of the boathouse. As the principal structure on the lot, it would contribute to a larger amount of activity, lighting, and higher intensity of use on the water, as opposed to a residence appropriately setback from the water s edge. Converting the structure to a sleeping cabin is an improvement, however, staff would prefer to also see the structure reduced in size to be closer to 650 sq. ft. Approval of the Page 3 of 4 By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 103 of 184

104 oversized sleeping cabin would still require obtaining a Building Permit to remove the cooking facilities from the second storey. 10. Site Plan Control As the property is on Lake Joseph, the development currently under construction did receive site plan approval. The thick shoreline vegetative buffer currently screening the dwelling is, therefore, required to remain in place. Page 4 of 4 By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 104 of 184

105 By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 105 of 184

106 By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 106 of 184

107 By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 107 of 184

108 DWELLING AS VIEWED FROM LAKE SHORELINE VEGETATIVE BUFFER By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 108 of 184

109 BOATHOUSE WITH DWELLING ABOVE DWELLING UNDER CONSTRUCTION By-law , ZBA-01/11, Ontario Ltd., Part of Lot 23, Concession 3, (Medora), Part 1 on Plan 35R- Page 109 of 184

110 BY-LAW PART LOT CONTROL BY-LAW HABITAT FOR HUMANITY MUSKOKA Report from the Senior Planner, Re: Repealing of Part Lot Control By-law , Habitat for Humanity Page 110 of 184

111 Report from the Senior Planner, Re: Repealing of Part Lot Control By-law , Habitat for Humanity Page 111 of 184

112 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22 nd 2011 SUBJECT: By-law , Being a By-law to Repeal By-law , Habitat For Humanity Muskoka, Part of Lot 14, Concession B, (Bala), Lot 280, Plan 1, Roll # RECOMMENDATION: That By-law be given three readings. APPROVALS: Date Signature Submitted By: D. Pink, Senior Planner 14/02/11 Original signed by D. Pink Approved By: S. Fahner, Director of Planning 14/02/11 Original signed by S. Fahner Acknowledged: W. Schmid, CAO 14/02/11 Original signed by W. Schmid BACKGROUND Habitat For Humanity Muskoka received zoning approval on June 9 th 2009 to construct a semidetached residence in Bala, at 1014 Burgess Avenue. On October 5 th 2010, By-law was passed by Council to remove Part Lot Control from the property. ANALYSIS Under the Planning Act, all severances of land require Planning Act approval. This is referred to as Part Lot Control. In our case, this is done through Committee of Adjustment. The Planning Act under Section 50 (7) permits a Council to pass a by-law to exempt a property from Part Lot Control (passed by Council on October 5 th 2010, By-law ). A survey can then be deposited on title which divides the property. This is useful in the case of freehold townhouses or semi-detached dwellings where the foundation is put in first, and a lot line is surveyed along the common wall. Since it would not be advisable to permit further lot division / additions without Planning Act approvals in perpetuity, there is a time limit for the Part Lot Control By-law. As both lots have already been conveyed to their respective new owners, this by-law can now be repealed. The repealing By-law , once passed, must be registered on title and forwarded to the District of Muskoka to finalize the process. Page 1 of 1 Report from the Senior Planner, Re: Repealing of Part Lot Control By-law , Habitat for Humanity Page 112 of 184

113 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22, 2011 SUBJECT: Presentation of the 2009 Audited Financial Statements RECOMMENDATION: That Township Council approve the Consolidated Financial Statements of The Corporation of the Township of Muskoka Lakes for the year ended December 31, 2009 and the Auditors Report as presented at the meeting held of February 22, APPROVALS: Date Signature Submitted By: J. Stevens, Treasurer 18/02/2011 Original signed by J. Stevens Approved By: W. Schmid, CAO 18/02/2011 Original signed by W. Schmid SUMMARY: The 2009 financial statements represent the new accrual accounting stipulated under PSAB Section 1200 which establishes reporting principles and standards for disclosure on information for government financial statements and PSAB Section 3150 which requires governments to record and amortize tangible capital assets. The impact of these changes in accounting policy is that the Statement of Financial Position (balance sheet) shows the net book value of the Township s physical assets totalling $55.7 million in 2009 and $53.3 million in The impact on the Statement of Operations is that capital expenditures are removed and amortization of those assets over their respective useful life is added to the expenses. In a year when revenue received for capital acquisitions exceeds the amortization for the Township, there will be an annual surplus as shown in both 2009 and However, with the end of economic stimulus funding the grants for capital projects have declined and it is expected that there will be an annual deficit. This will need to be managed over time by increasing charges to Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 113 of 184

114 reserves in departments to fund the ongoing capital investment plan for the Township. Pursuant to Municipal Act, 2001, s.294.1, the Treasurer is recommending to Township Council to approve the Consolidated Financial Statements of The Corporation of the Township of Muskoka Lakes for the year ended December 31, 2009 and the Auditors Report that is attached. ORIGIN: Pursuant to the Municipal Act, 2001, s.294.1, the Township s financial statements must be prepared in accordance with generally accepted accounting principles as directed by the Public Sector Accounting Board. Pursuant to the Municipal Act, 2001, s.295(1), the Treasurer must publish the financial statements within 60 days of the receiving the audited financial statements. BACKGROUND: The financial statements are made up of 4 statements, followed by the notes to the financial statements and concluding with 3 schedules. The statements include Township and the library functions. The following summarizes the main areas of change compared to prior year or the budget. Consolidated Statement of Financial Position Cash: the Township s cash holdings were higher in 2009 as we divested of temporary investments in order to have funds available for the capital projects that were ongoing for the G8 and other economic stimulus projects. Temporary investments: investments were sold during the year as projects for economic stimulus were progressing. Cash holdings and other receivables offset most of this decline. Taxes receivable represent all municipal, district and education taxes that are in arrears for the Township. The figure increased year over year as we had a large supplemental tax run that was added to the tax accounts in mid-november compared to prior year. The total receivables represent 4.74% of the total taxes levied in 2010 which is consistent with 2008 (4.73%). In addition, days tax levy outstanding is 17.3 days. Other receivables include the grants revenue receivable on the economic stimulus programs, revenue from District for road work, GST rebates receivable and other miscellaneous receivables. The grant revenues receivable accounted for all of the increase year over year. Short term debt includes borrowing on our line of credit to cover short term cash flow issues prior to receiving the first instalment of tax revenue. There was no borrowing at the end of Payables and accruals account for all outstanding amounts to vendors for both operations and capital projects. In addition, this section includes all payroll liabilities owing and any securities held for taxpayers while projects are completed and approved by the planning department. Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 114 of 184

115 Deferred revenue includes funds received for development charges and cash received in lieu of parkland. The balance dropped in 2009 as budgeted because two major projects were funded from these accounts; the Raymond Community Centre project and Township s 1/3 contribution for the Port Carling streetscape project (Build Canada Fund contributed the remaining 2/3). Municipal debt: the Township obtained a debenture to fund a portion of the Walker s Point fire hall and phase 1 of the Port Carling Streetscape in Note 6 in the financial statements provides more details. The decrease year over year is the principal repayments made as stipulated. Inventory includes the stock held in gas, diesel and vehicle parts for the roads department. Prepaids include any contracts or service to be received in 2010 that were paid for in advance. The most significant contract that we pay in advance is the insurance premium. This account increased year over year as the premium increased and as well deposits held at the district for the Township s health benefit program also increased. Tangible capital assets include all physical assets held by the Township for the supply of services; have an economic life beyond one year; will be used on a continuing basis; and are not for sale in the ordinary course of operations. The schedule on page 17 shows the asset by category. The net book value of TCA s increased $1.9 million reflecting work completed on the Bala and Port Carling fire halls, Raymond Community Centre, vehicles purchased for roads and building, streetscape projects in Bala and Port Carling and road resurfacing projects. Accumulated surplus is detailed out in a schedule on page 15 and includes the Township s investment in tangible capital assets ($55.2 million), reserves set aside for a specific purpose ($3.1 million), surpluses from prior years ($170.1 k) less municipal debt to be repaid ($1.6 million). Consolidated Statements of Operations and Accumulated Surplus The 2009 budget figures and 2008 actual figures have been adjusted from what was present to Council in 2009 for new PSAB accounting. As such, the capital transactions were removed from expenses and amortization was added. In addition, charges in operations to fund reserves are not included in the expenses. Revenue: In general, revenues came in over budget due mainly to the economic stimulus grant programs that were approved after the budget process. Taxation includes all amounts levied to taxpayers, other governments and supplemental taxes due to new construction, omissions or errors in assessment. Taxation came in over the budget due to higher supplementals than was budgeted. Fees and user charges includes all revenue charged to taxpayers and the district for building permits, zoning applications, swimming registration, cemetery plots etc actuals exceeded the budget because building permit revenues, lockage fees and district roads revenues came in higher than expected. Fees Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 115 of 184

116 were lower in 2009 from 2008 due to a one time reimbursement for a portion of the cost to construct the new docking facilities in Windermere. Government grants include all grants from all sources for both operating and capital purposes. In 2009, we had passed the budget prior to any announcements for economic stimulus programs. The Township was successful in being approved for a number of grants programs for streetscaping, corporate signage, road construction, arena improvements, playground equipment upgrades and fire hall improvements. As such, the grant revenues received exceeded the budget. In 2008, there was also grant monies received for the ongoing culvert replacement and an infrastructure grant for roads, bridges and docks. Investment income includes all income from bank accounts and GIC s. The large decrease in 2009 from 2008 reflected the change in interest rates earned on all accounts and the fact that the Township reduced its holdings of investments in order to fund the economic stimulus projects. Penalties and interest include all charges on tax accounts that are in arrears. The balance has held steady for the past two years. Contributed tangible capital assets From time to time the Township has tax sales for properties with outstanding taxes of greater than 3 years. In some cases, the properties do not sell, and then get vested to the Township. PSAB accounting requires that the Township recognize the property at its fair market value. We have used MPAC s valuation of the land as the fair market value. This is the main difference in the revenues for 2008 as it was presented in 2009 compared to the current figures presented today. Gain (loss) on disposal of TCA Under the new PSAB accounting rules, the gains or losses on the disposal of assets must be shown separately on the financial statements. Historically, if the Township traded in an asset, the monies received were offset against the cost of the new vehicle being purchased. Losses on the disposal of the asset were not recorded as the amortization was not recognized as the asset was utilized. In 2009 the gains on disposal of assets related to two public works vehicles that were replaced for which we received favourable tradein values. In 2008, the loss on disposal is related to the replacement of tangible capital assets prior to the asset being fully depreciated. We will continue to monitor these losses as this may be an indication that the amortization period does not reflect the useful life of the asset. Parkland dedication earned includes the use of monies from the parks and development charges deferred revenue accounts on the statement of financial position. The amounts realized were close to budget and related to specific capital projects in the community centres and trails (for parks) and streetscaping (for development charges). Expenses: In general, expenses came in $418k under budget due to favourable variances in protection services, transportation and recreation. Expenses in 2009 were higher than 2008 due to insurance accruals and financing charges included in the general government category. Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 116 of 184

117 General government expenses include the expenses for council, clerks and CAO, treasury and financing charges on debentures. Expenses were on target for the year. There was a large increase in expenses between 2008 and 2009 due to an accrual needed for deductibles on outstanding insurance claims. In addition, the Township borrowed funds from reserves to pay for a portion of the Port Carling fire hall. These funds are scheduled to be paid back in to reserves over a 5 year period. This repayment schedule started in 2009 and therefore is incremental to 2008 expenses. Protection services include expenses for the fire department, emergency management and building services. The deputy fire chief left the organization early in 2009 causing a favourable variance in the fire department. In addition, labour was also lower in the building department. Due to lower permit activity, the Township did not hire a separate by-law enforcement officer. Instead this position was filled by a building clerk. Transportation services expenses were lower than budget due to a favourable winter season in the spring and winter of In addition, loose top maintenance costs were lower than expected expenses were higher than 2009 due mainly to higher costs in winter control. Health services expenses include the cost of cemeteries in the Township. The increase over budget is a reflection of the higher number of burials that occurred in Recreation and cultural services include the costs of parks, arenas, community centres, library, maintenance, swimming and the visitors centre expenses were favourable to the budget but higher than 2008 figures. Labour costs and repairs of docks in the parks department and building repairs and maintenance in community centres were the main categories that were favourable to the 2009 budget. The increase in expenses in 2009 compared to 2008 was in the arenas department and in community centres and parks. In arenas we had budgeted increases for repairs and maintenance that was higher than In addition there was $48,000 of repairs that were completed in parks and community centres that did not meet the threshold for tangible capital assets and were kept in the operations statement. Annual surplus is the net amount remaining after expenses are deducted from revenues received. The original 2008 statements showed net expenditures (deficit) of $1,893,293. When we add back principal debt and sick leave repayments of $51,817, we arrive at a change in fund balances of $(1,841,476). The revised 2008 figures show a surplus of $2,541,318. The reconciliation of this amount is shown in Note 2 on page 9 of the financial statements. The components of the change are: Change in fund balances as noted above $(1,841,476) Assets capitalized but previously expensed 6,488,976 Amortization expense not previously recorded (2,357,912) Proceeds on disposal of assets (81,295) Loss on disposal of assets (34,705) Contributed assets 367,730 $ 2,541,318 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 117 of 184

118 Consolidated Schedule of Accumulated Surplus This is a new schedule in the financial statements for 2009 and is included on page 15 of the statements. This schedule breaks down how the accumulated surplus showing on the Statement of Financial Position has developed. Accumulated surplus is made up of the following: Reserves and reserve funds $ 3,083,473 Amounts to be recovered in future years debt (1,550,775) sick leave (8,663) Investment in tangible capital assets 55,208,533 Surpluses related to the library and street lighting and operations 170,185 $56,902,753 Consolidated Schedule of Tangible Capital Assets This is a new schedule in the financial statements for 2009 and is included on page 16 of the statements. This schedule breaks down physical assets by category and shows the additions and disposals for both the cost and the accumulated amortization. Consolidated Schedule of Segment Reporting Segment reporting was introduced in 2008 and allocates the taxation revenue, grant revenue, reserve fund revenue recognized and information technology expenditures to various departments as shown on page 18 of the financial statements. FINANCIAL: There is no financial impact to the presentation and approval of the financial statements. Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 118 of 184

119 Consolidated Financial Statements The Corporation of the Township of Muskoka Lakes December 31, 2009 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 119 of 184

120 The Corporation of the Township Of Muskoka Lakes Contents The Corporation of the Township of Muskoka Lakes Page Auditors' Report 1 Consolidated Statement of Financial Position 2 Consolidated Statements of Operations and Accumulated Surplus 3 Consolidated Statement of Change in Net Financial Assets 4 Consolidated Statement of Cash Flows 5 Notes to the Consolidated Financial Statements 6-14 Consolidated Schedule of Accumulated Surplus 15 Consolidated Schedule of Tangible Capital Assets Consolidated Schedule of Segment Reporting The Corporation of the Township of Muskoka Lakes - Trust Funds Auditors' Report 20 Statement of Financial Position 21 Statement of Continuity 22 Notes to the Financial Statements 23 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 120 of 184

121 Auditors' Report To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Township of Muskoka Lakes We have audited the consolidated statement of financial position of The Corporation of the Township of Muskoka Lakes as at December 31, 2009 and the consolidated statements of operations, accumulated surplus, change in net financial assets and cash flows for the year then ended. These financial statements are the responsibility of the Township s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Township as at December 31, 2009 and the results of its operations and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Budget figures are provided for comparative purposes and have not been subject to audit procedures. Accordingly, we do not express an opinion on the budget figures. Orillia, Ontario January 14, 2011 Chartered Accountants Licensed Public Accountants Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 121 of 184 1

122 The Corporation of the Township of Muskoka Lakes Consolidated Statement of Financial Position December (Note 2) Financial Assets Cash $ 2,754,684 $ 658,631 Temporary investments (Note 3) 110,421 4,578,711 Taxes receivable 2,416,156 2,264,134 Other receivables 2,379, ,540 7,661,111 8,465,016 Financial Liabilities Short term debt (Note 4) - 280,572 Payables and accruals 2,803,410 3,064,560 Deferred revenue (Note 5) 2,132,322 2,313,314 Sick leave 8,663 10,729 Municipal debt (Note 6) 1,550,775 1,601,669 6,495,170 7,270,844 Net financial assets 1,165,941 1,194,172 Non-financial assets Inventory 103,864 86,219 Prepaids 424, ,171 Tangible capital assets (Page 17) 55,208,533 53,287,216 55,736,812 53,716,606 Accumulated surplus (Page 15) $ 56,902,753 $ 54,910,778 Commitments and Contingencies (Notes 9 and 10) See accompanying notes and schedules to the consolidated financial statements 2 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 122 of 184

123 The Corporation of the Township of Muskoka Lakes Consolidated Statements of Operations and Accumulated Surplus Year Ended December 31 Budget (Unaudited) (Note 2) Revenue Taxation (Note 7) $ 7,020,541 $ 7,090,948 $ 6,529,939 Fees and user charges 1,979,406 2,111,207 2,401,492 Government grants and transfers 2,361,579 3,640,958 3,793,352 Investment income 40,000 18, ,420 Penalties and interest on taxes 555, , ,593 Contributed tangible capital assets - 141, ,730 Gain (loss) on disposal of tangible capital assets - 26,329 (34,705) Parkland dedication earned 799, , ,931 12,755,889 14,385,302 14,524,752 Expenses General government 2,601,916 2,583,749 2,191,144 Protection services 2,363,087 2,271,293 2,295,379 Transportation services 4,365,092 4,161,289 4,262,941 Environmental services 6,700 5,215 5,655 Health services 34,378 43,673 26,955 Recreation and cultural services 2,722,035 2,621,479 2,517,936 Planning and development 718, , ,424 12,811,470 12,393,327 11,983,434 Annual surplus (deficit) $ (55,581) 1,991,975 2,541,318 Accumulated surplus, beginning of year 54,910,778 52,369,460 Accumulated surplus, end of year $ 56,902,753 $ 54,910,778 See accompanying notes and schedules to the consolidated financial statements 3 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 123 of 184

124 The Corporation of the Township of Muskoka Lakes Statement of Change in Net Financial Assets Year Ended December Annual surplus $ 1,991,975 $ 2,541,318 Acquisition of tangible capital assets (4,331,095) (6,488,976) Contributed tangible capital assets (141,772) (367,730) Amortization of tangible capital assets 2,510,934 2,357,912 Proceeds from sale of tangible capital assets 66,944 81,295 (Gain) loss on disposal of tangible capital assets (26,329) 34,705 Change in inventory (17,645) 18,135 Change in prepaids (81,243) - Change in net financial assets (28,231) (1,823,341) Net financial assets, beginning of year 1,194,172 3,017,513 Net financial assets, end of year $ 1,165,941 $ 1,194,172 See accompanying notes and schedules to the consolidated financial statements 4 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 124 of 184

125 The Corporation of the Township of Muskoka Lakes Consolidated Statement of Cash Flows Year Ended December (Note 2) Increase (decrease) in cash Operating activities Annual surplus $ 1,991,975 $ 2,541,318 Amortization of tangible capital assets 2,510,934 2,357,912 (Gain) loss on disposal of tangible capital assets (26,329) 34,705 Contributed tangible capital assets (141,772) (367,730) (Increase) decrease in taxes receivable (152,022) 803,180 Increase in other receivables (1,416,310) (173,003) (Increase) decrease in inventory (17,645) 18,135 Increase in prepaids (81,243) - (Decrease) increase in short term debt (280,572) 280,572 (Decrease) increase in payables and accruals (261,150) 759,426 Decrease in deferred revenue (180,992) (216,176) 1,944,874 6,038,339 Investing activities Disposition (acquisition) of temporary investments 4,468,290 (2,677,643) Proceeds on disposition of tangible capital assets 66,944 81,295 Acquisition of tangible capital assets (4,331,095) (6,488,976) 204,139 (9,085,324) Financing activities Repayment of municipal debt (50,894) (48,331) Decrease in employee benefits payable (sick leave) (2,066) (3,486) (52,960) (51,817) Net increase (decrease) in cash 2,096,053 (3,098,802) Cash, beginning of year 658,631 3,757,433 Cash, end of year $ 2,754,684 $ 658,631 See accompanying notes and schedules to the consolidated financial statements 5 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 125 of 184

126 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Summary of significant accounting policies Management responsibility The consolidated financial statements of The Corporation of the Township of Muskoka Lakes ( the Township ) are the representations of management. They have been prepared in accordance with Canadian generally accepted accounting principles for local governments, as recommended by the Public Sector Accounting Board ( PSAB ) of the Canadian Institute of Chartered Accountants. Basis of consolidation The consolidated financial statements reflect the assets, liabilities, revenue, expenditures and changes in fund balances and changes in financial position of the reporting entity. The reporting entity is comprised of all organizations and enterprises accountable for the administration of their affairs and resources to the Township and which are owned or controlled by the Township. These consolidated financial statements include the following organization: The Corporation of the Township of Muskoka Lakes Public Library The consolidated financial statements exclude funds held in trust by the Township that are administered by the Township for the benefit of external parties. The financial activity and position of the trust funds are reported separately on the trust funds statement of financial position and statement of continuity. Basis of accounting (i) Accrual accounting Revenues and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. (ii) Accounting for school board and district transactions The Township collects taxation revenue on behalf of the school boards and the District Municipality of Muskoka. The taxation, other revenue, expenses, assets, liabilities and fund balances with respect to the operations of the school boards and the District Municipality of Muskoka are not reflected in these financial statements. 6 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 126 of 184

127 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Summary of significant accounting policies (continued) (iii) Revenue recognition The Township recognizes taxation revenue on an annual basis using total assessment values for the year and annually established tax rates. Property assessment values are provided by the Municipal Property Assessment Corporation and tax rates are established and approved by members of Council. Government transfers are recognized as revenue in the year in which events giving rise to the transfer occur, providing that the transfer is authorized and the amount can be reasonably estimated. Government grants are recognized as revenue when approved to the extent the related expenditures have been incurred and collection can be reasonably assured. Fees and user charges are recognized as revenue when the services are provided and there is reasonable assurance of collection. (iv) Use of estimates The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates and assumptions are based on management s historical experience, best knowledge of current events and actions that the Township may undertake in the future. Significant accounting estimates include allowance for doubtful accounts and estimated useful lives of tangible capital assets. Actual results could differ from those estimates. (v) Temporary investments Temporary investments are recorded at the lower of cost or market. 7 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 127 of 184

128 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Summary of significant accounting policies (continued) (vi) Capital assets Tangible capital assets are recorded at cost which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. Tangible capital assets received as contributions or donations are recorded at their fair value at the date of receipt. The cost, less residual value, of the tangible capital assets are amortized on a straight-line basis over their estimated useful lives as follows: Land improvements Buildings Vehicles Machinery and equipment Roads, bridges & storm 10 to 40 years 25 to 40 years 5 to 20 years 4 to 25 years 20 to 70 years Assets under construction are not amortized until the asset is available for productive use. (vii) Deferred revenue for obligatory reserves Receipts which are restricted by legislation of senior governments or by agreement with external parties are deferred and reported as restricted revenue. When qualifying expenditures are incurred, restricted revenues are brought into revenue at equal amounts. Revenue received in advance of expenditures, which will be incurred in a later period, are deferred until they are earned by being matched against those expenditures. 2. Change in accounting policy Effective January 1, 2009, the Township has implemented PSAB Section 1200 Financial Statement Presentation and Section 3150 Tangible Capital Assets. Section 1200 establishes general reporting principles and standards for the disclosure of information in government financial statements. Section 3150 requires governments to record and amortize tangible capital assets. The financial information recorded includes the actual or estimated historical cost of the tangible capital assets. When historical costs were not available, other methods were used to estimate the costs and accumulated amortization of the assets. 8 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 128 of 184

129 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Change in accounting policy (continued) The December 31, 2008 figures presented for comparative purposes have been restated from those previously reported in order to reflect the changes in accounting policy as follows: Accumulated surplus Current fund balance $ 315,580 Capital fund balance 557,387 Reserves and reserves funds balance 2,362,993 Amounts to be recovered in future years (1,612,398) Accumulated surplus, as previously reported 1,623,562 Net book value of tangible capital assets 53,287,216 Accumulated surplus, as restated $ 54,910,778 Annual surplus Change in fund balances, as previously reported $ (1,841,476) Assets capitalized but previously expensed 6,488,976 Amortization expense not previously recorded (2,357,912) Proceeds on disposal of assets previously recorded as revenue (81,295) Loss on disposal of assets not previously recorded (34,705) Contributed assets not previously recorded 367,730 Annual surplus, as restated $ 2,541, Temporary investments The Township s temporary investments are comprised of guaranteed investment certificates held at The Bank of Nova Scotia with maturity dates ranging from June 2010 to December 2010 with interest rates ranging from 0.51% to 3.30%. 4. Credit facility The Township has an operating line of credit with The Bank of Nova Scotia. The borrowing amount cannot exceed the amount of credit available to the Township under municipal borrowing by-law. During the period January 1 to September 30 each year, advances are limited to 50% of total annual revenue as approved by Council. During the period October 1 to December 31 each year, advances are limited to 25% of total annual revenue as approved by Council. The credit facility bears interest at the bank s prime lending rate less 0.50% per annum. As security, the Township has pledged taxation revenue. At December 31, 2009, advances drawn on the operating line of credit were $NIL ( $280,572). 9 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 129 of 184

130 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Deferred revenue A requirement of PSAB is that obligatory reserve funds be reported as deferred revenue. This requirement is in place as provincial legislation restricts how these funds may be used and under certain circumstances these funds may be refunded. The balance in the obligatory reserve funds of the Township are as follows: Development charges $ 646,394 $ 1,064,692 Parkland 1,485,928 1,248,622 $ 2,132,322 $ 2,313, Municipal debt Debenture payable to the District Municipality of Muskoka, bearing interest at 5.233% per annum, repayable in blended semi-annual installments of $67,026, maturing in December $ 1,550,775 $ 1,601,669 Principal repayments for the next five years and thereafter are as follows: 2010 $ 53, , , , ,892 Thereafter 1,252,858 $ 1,550,775 The long-term liabilities reported above, issued in the name of the Township, have been approved by by-law. The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. Interest expense in the amount of $82,983 ( $91,231) has been recognized in the consolidated statement of operations. 10 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 130 of 184

131 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Taxation Taxation revenue $ 51,123,359 $ 47,929,970 Less: taxation collected on behalf of and remitted to School boards 18,832,438 17,696,184 District Municipality of Muskoka 25,199,973 23,703,847 $ 7,090,948 $ 6,529, Employee future benefits The Township makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a multi-employer defined benefit plan providing pension benefits. This pension plan is accounted for as a defined contribution plan as there is insufficient information available to apply defined benefit plan accounting. The Township makes contributions of 6.5% of a qualifying employee s salary up to $46,300 ( $44,900) and 9.6% thereafter. The Township s contributions related to the pension plan for the year were $222,714 ( $224,378) and are included in salaries and benefits in the consolidated statement of operations. 9. Commitments a) The Township has pledged annual contributions of $18,000 to the South Muskoka Hospital Foundation until b) The Township has entered into a long term energy purchasing contract to purchase electricity at a fixed price based on minimum load requirements. The contract expires in November Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 131 of 184

132 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Contingencies a) The Township is involved from time to time in litigation, which arises in the normal course of business. In respect of any outstanding claims, the Township believes that insurance coverage is adequate and that no material exposure exists on the eventual settlement of such litigation in all but one claim, therefore no provision has been made in the accompanying financial statements. For one claim, insurance coverage has been denied and since the likelihood and extent of loss, if any, is not yet determinable, no provision has been made in the accompanying financial statements. b) The Township has entered into an agreement with the Association of Municipalities of Ontario with respect to the transfer of federal gas tax revenues. The agreement contains specific provisions for the utilization of the funds, including a provision for repayment of a proportionate amount of funds in the event that, at any time within 10 years from the date of completion of the eligible project, the Township sells, leases, encumbers or otherwise disposes of, directly or indirectly, any asset constructed, rehabilitated or improved, in whole or in part, with the financial assistance received under the terms of the agreement. At December 31, 2009, the Township has received and expended a total of $490,835 for the years 2006 to c) The Township has entered into an agreement with the Minister of Agriculture, Food and Rural Affairs with respect to partial funding of eligible expenditures to a maximum of $489,134. The agreement contains specific provisions for the utilization of funds, including a provision for repayment of a proportionate amount of funds in the event that, at any time within 10 years from the date of completion of the eligible project, the Township sells, leases, encumbers or otherwise disposes of, directly or indirectly, any asset constructed, rehabilitated or improved, in whole or in part, with the financial assistance received under the terms of the agreement. At December 31, 2009, the Township has received a total of $440,220 under this agreement and has recorded an amount receivable of $44,142 relating to eligible costs incurred in Budget reconciliation The budget approved by Council differs from the budget presented in the consolidated statement of operations as the approved budget has not been adjusted to account for the material changes to PSAB reporting requirements as follows: Revenues (Unaudited) Expenses (Unaudited) Total approved budget $12,708,389 $ 13,484,822 Less: Tangible capital assets capitalization - (3,153,265) Add: Amortization of tangible capital assets - 2,479,913 Adjusted budget as per Statement of Operations $12,708,389 $12,811, Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 132 of 184

133 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Segmented reporting The Township is a lower-tier municipality that provides a wide range of services to its citizens. The Township is one of six lower-tier municipalities comprising the single upper-tier municipality of the District Municipality of Muskoka ( the District ). The District is a regional government that has responsibility for social assistance payments, district roads, provision of police and ambulance services, district-wide emergency preparedness, regional planning, water and sewer systems, and solid waste. The District collects taxes for the services it provides and these taxes are collected by the Township through its annual tax levy. For management reporting purposes, the Township s operations and activities are organized and reported by Fund. Funds were created for the purpose of recording specific activities to attain certain objectives in accordance with special regulations, restrictions or limitations. Township services are provided by departments and their activities are reported in these funds. For segment reporting purposes, significant allocations include: a) Taxation revenue allocated to segments based on budgeted expenditures (net of budgeted non-tax revenue) for each segment b) Ontario Municipal Partnership Fund grant allocated to segments based on actual expenditures incurred on related projects c) Information technology expenditures allocated to segments based on the number of computers in use by each segment Certain departments have been separately disclosed in the segmented information, along with services they provide, as follows: Corporate Services The Corporate Services department provides all general government services including municipal administration, finance, human resources and clerk s office. Emergency Services The Emergency Services department provides fire protection and emergency management services. The fire department provides vital emergency services to the community including fire prevention, public education and emergency planning. Public Works The Public Works Department provides delivery of municipal public works services relating to the planning, development and maintenance of roadway systems (including winter control activities) and street lighting. 13 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 133 of 184

134 The Corporation of the Township of Muskoka Lakes Notes to the Consolidated Financial Statements December 31, Segmented reporting (continued) Parks and Recreation The Parks and Recreation Department provides public recreational programs that foster healthy and active living and includes the operations of libraries. Planning and Development The Planning and Development Department facilitates economic development by providing services for the approval of land development plans, the enforcement of zoning by-laws and the processing of building permit applications. The 2008 segment information presented for comparative purposes has been reclassified to adhere to the presentation adopted for the current year. 13. Financial instruments The Township s financial instruments consist of cash, temporary investments, receivables, short term debt, payables and accruals, and long term debt. Unless otherwise noted, it is management s opinion that the Township is not exposed to significant currency or credit risks arising from these financial instruments. The Township s credit facility bears interest at a floating rate which gives rise to a risk that its surplus (deficit) and cash flows may be adversely impacted by fluctuations in interest rates. The fair value of these financial instruments approximates their carrying values, unless otherwise noted. 14. Trust funds The trust funds administered by the Township amounting to $1,760 (2008 $2,307) have not been included in the consolidated statement of financial position nor have the operations been included in the consolidated statement of operations. 14 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 134 of 184

135 The Corporation of the Township of Muskoka Lakes Consolidated Schedule of Accumulated Surplus December Consists of: Reserves set aside for specific purposes by Council Working capital $ 1,291,780 $ 1,158,898 Reserve funds set aside for specific purposes by Council Arenas 119, ,453 Election 73,516 67,000 Fire 89, ,159 Library 93,186 95,186 Municipal buildings 4,244 10,559 Mural 12,352 12,353 Other equipment 240,860 20,000 Parking 26,104 25,678 Parks equipment 79,410 78,117 Planning 119, ,030 Roads 765,504 81,255 Sick leave 8,663 10,729 Vehicle replacement 147, , winter games and G8 summit 12,000-1,791,693 1,204,095 Total reserves and reserve funds 3,083,473 2,362,993 Amounts to be recovered in future years Municipal debt (1,550,775) (1,601,669) Employee benefits payable (sick leave) (8,663) (10,729) Total amounts to be recovered in future years (1,559,438) (1,612,398) Surpluses Invested in tangible capital assets 55,208,533 53,287,216 Library surpluses 45, ,788 Street lighting surpluses 24,129 - General surpluses 100, ,179 Total surpluses 55,378,718 54,160,183 Accumulated surplus $ 56,902,753 $ 54,910, Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 135 of 184

136 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. The Corporation of the Township of Muskoka Lakes Consolidated Schedule of Tangible Capital Assets December 31, 2009 Machinery Land and Land improvements Buildings Vehicles equipment Cost Balance, beginning of year $ 6,644,120 $ 8,730,115 $ 14,542,908 $ 6,355,642 $ 5,458,790 Add: additions during the year 20, , , , ,491 Add: contributed assets received during the year 141, Add (less): transfers during the year - 32,041 2,661,352-17,425 Less: disposals during the year (290,236) (180,254) Balance, end of year 6,805,892 8,902,488 17,907,316 6,351,920 5,910,452 Accumulated amortization Balance, beginning of year - 3,316,118 5,017,421 2,780,296 2,569,358 Add: amortization during the year - 282, , , ,789 Less: accumulated amortization on disposals (290,235) (152,515) Balance, end of year - 3,599,087 5,438,607 2,988,625 2,797,632 Net book value of tangible capital assets $ 6,805,892 $ 5,303,401 $ 12,468,709 $ 3,363,295 $ 3,112,820 Page 136 of

137 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. The Corporation of the Township of Muskoka Lakes Consolidated Schedule of Tangible Capital Assets (continued) December 31, 2009 Roads Total Bridges, and Construction Storm System In progress Cost Balance, beginning of year $ 52,223,310 $ 2,904,502 $ 96,859,387 $ 91,443,177 Add: additions during the year 1,466,493 1,100,209 4,331,095 6,488,976 Add: donated assets received during the year , ,730 Add (less): transfers during the year - (2,710,818) - - Less: disposals during the year (31,284) - (501,774) (1,440,496) Balance, end of year 53,658,519 1,293, ,830,480 96,859,387 Accumulated amortization Balance, beginning of year 29,888,978-43,572,171 42,538,755 Add: amortization during the year 927,426-2,510,934 2,357,912 Less: accumulated amortization on disposals (18,408) - (461,158) (1,324,496) Balance, end of year 30,797,996-45,621,947 43,572,171 Net book value of tangible capital assets $ 22,860,523 $ 1,293,893 $ 55,208,533 $ 53,287,216 Page 137 of

138 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 138 of 184 The Corporation of the Township of Muskoka Lakes Consolidated Schedule of Segment Reporting Year Ended December 31 Corporate Services Emergency Services Public Works Revenue Taxation $ 1,806,703 $ 1,659,845 $ 960,894 $ 948,278 $ 2,213,510 $ 1,741,992 Fees and user charges 85,771 61,122 74, , , ,625 Government grants and transfers 1,541, , , ,860 1,583,521 2,047,722 Obligatory reserve fund revenue recognized - 7, , , , ,154 Contributed tangible capital assets 141, , Gain (loss) on disposal of tangible capital assets - - 5,875 (25,747) 21,144 22,768 Other 584, , ,160,264 3,243,648 1,388,620 2,049,810 4,676,019 4,591,261 Expenses Amortization 121, , , ,835 1,267,317 1,198,928 Salaries and benefits 1,128,105 1,140, , ,262 1,281,214 1,299,052 Materials 893, , , ,073 1,405,223 1,529,682 Contracted services 139,655 72,165 47,786 12, , ,548 Rents and financial expenses 40,663 47, Long term debt charges 82,983 82, External transfers 83,000 90, ,489,357 2,104,625 1,460,574 1,477,991 4,176,990 4,278,210 Net revenue (expenses) $ 1,670,907 $ 1,139,023 $ (71,954) $ 571,819 $ 499,029 $ 313,051 18

139 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 139 of 184 The Corporation of the Township of Muskoka Lakes Consolidated Schedule of Segment Reporting (Continued) Year Ended December 31 Parks and Recreation Planning and Development Total Revenue Taxation $ 1,520,441 $ 1,679,304 $ 589,400 $ 500,520 $ 7,090,948 $ 6,529,939 Fees and user charges 355, , ,467 1,039,339 2,111,207 2,401,492 Government grants and transfers 274, ,944 1,689 1,120 3,640,958 3,793,352 Obligatory reserve fund revenue recognized 433, , , ,931 Contributed tangible capital assets , ,730 Gain (loss) on disposal of tangible capital assets (690) (31,726) ,329 (34,705) Other , ,013 2,582,843 3,099,054 1,577,556 1,540,979 14,385,302 14,524,752 Expenses Amortization 699, ,497 25,889 33,123 2,510,932 2,357,912 Salaries and benefits 884, ,937 1,163,568 1,155,044 5,007,781 5,046,323 Materials 1,081, , , ,465 4,187,045 3,942,609 Contracted services 10,486 26,325 59,433 54, , ,336 Rents and financial expenses ,990 47,914 Long term debt charges ,983 82,068 External transfers ,000 90,272 2,675,637 2,554,499 1,590,769 1,568,109 12,393,327 11,983,434 Net revenue (expenses) $ (92,794) $ 544,555 $ (13,213) $ (27,130) $ 1,991,975 $ 2,541,318 19

140 Auditors' Report To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Township of Muskoka Lakes We have audited the statement of financial position of The Corporation of the Township of Muskoka Lakes Trust Funds as at December 31, 2009 and the statement of continuity for the year then ended. These financial statements are the responsibility of the Township's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of Township s Trust Funds as at December 31, 2009 and the results of its continuity of trust funds for the year then ended in accordance with Canadian generally accepted accounting principles. Orillia, Ontario January 14, 2011 Chartered Accountants Licensed Public Accountants Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 140 of

141 The Corporation of the Township of Muskoka Lakes Trust Funds Statement of Financial Position December Assets Cash $ 320 $ 548 Loans receivable (Note 2) 1,440 1,759 $ 1,760 $ 2,307 Liabilities Due to Province $ 303 $ 507 Due to The Corporation of the Township of Muskoka Lakes Fund balance 1,440 1,759 $ 1,760 $ 2,307 See accompanying notes to the financial statements 21 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 141 of 184

142 The Corporation of the Township of Muskoka Lakes Trust Funds Statement of Continuity Year Ended December Revenue Interest earned $ 1 $ 14 Expenses Administration costs Capital returned to Province Annual deficit (319) (534) Trust fund balance, beginning of year 1,759 2,293 Trust fund balance, end of the year $ 1,440 $ 1,759 See accompanying notes to the financial statements 22 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 142 of 184

143 The Corporation of the Township of Muskoka Lakes Trust Funds Notes to Financial Statements December 31, Basis of accounting Revenues and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. 2. Ontario Home Renewal Program The Ontario Home Renewal Program ( OHRP ) was established by the Ontario Ministry of Housing ( the Province ) in 1973 to provide grants for municipalities to make loans to assist owner occupants to repair, rehabilitate and improve their homes to local property standards. Individual loans were limited to $7,500, of which the maximum forgivable portion was $4,000. Ontario Home Renewal Program loans receivable at December 31, 2009 comprise repayable loans of $1,440 ( $1,759) and forgivable loans of $0 ( $0). As of July 16, 1993 the OHRP was discontinued and municipalities were prohibited from issuing further loans as of that date. All OHRP funds held in municipal trust accounts as of December 31, 1993 were remitted to the Province by March 1, Any loans receivable under the program which are collected subsequent to December 31, 1993 were remitted to the Province by March 1 of the following year. However, municipalities are provided an administration fee of five per cent of the balances collected after December 31, 1993 and are permitted to retain the interest earned on unremitted OHRP trust account balances. 23 Report from the Treasurer Re: Presentation of the 2009 Audited Financial Statements. Page 143 of 184

144 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22, 2011 SUBJECT: EARTH HOUR 2011 RECOMMENDATION: That the Township of Muskoka Lakes participate in Earth Hour 2011 on Saturday, March 26 from 8:30 pm to 9:30 pm by: - turning off non-essential municipal office lighting, - registering the Township s support with the World Wildlife Fund, and - challenging others to join the Township in Earth Hour. APPROVALS: Date Signature Submitted By: Cheryl Mortimer, Clerk 16/02/11 Original signed by C. Mortimer Acknowledged: Walt Schmid, CAO 16/02/11 Original signed by W. Schmid EXECUTIVE SUMMARY: Based on the request from the World Wildlife Fund (WWF) Canada, it is recommended that the Township participate in Earth Hour ORIGIN: Correspondence received from WWF Canada, a copy of which is attached. BACKGROUND: The Township of Muskoka Lakes has participated in the WWF Earth Hour event beginning in 2008 by: - turning off non-essential municipal office lighting for the event, - registering the Township s support for Earth Hour with the WWF at and - issuing a press release challenging others to join the Township in Earth Hour. The World Wildlife Fund is encouraging everyone to participate in Earth Hour 2011 to be held on Saturday, March 26 from 8:30 pm to 9:30 pm. To take action on climate change and to influence positive change, it is recommended that the Township once again show their leadership and support by participating in Earth Hour FINANCIAL: NA Report from the Clerk Re: Earth Hour Page 144 of 184

145 Right-click here to download pictures. To help protect your privacy, Outlo ok prevented auto matic download of this picture from the Internet. Right-cli here to downloa pictures. help pro your pri Outlo ok prevente auto mati downloa this pictu from the Internet. Right-cli here to downloa pictures. help pro your pri Outlo ok prevente auto mati downloa this pictu from the Internet. Cheryl Mortimer From: Sent: To: Subject: WWF-Canada Wednesday, December 08, :44 AM Save the date and help save the planet with WWF-Canada! Hello Muskoka Lakes, WWF-Canada is thrilled to invite you to participate in two events launching early 2011: National Sweater Day and Earth Hour. These events aim to engage Canadians in a fun and celebratory way while raising awareness about climate change and encouraging individual behaviour change. On February 17, 2011, WWF's National Sweater Day, we are calling on Canadians to turn down their thermostats 3 and wear a fun, wacky sweater to symbolize their commitment to the environment. Turn off your lights on March 26, 2011 between 8:30-9:30 pm for Earth Hour. Last year in Canada alone, more than 10 million people in more than 304 cities turned off their lights! Supporting Earth Hour means supporting WWF- Canada's call for a fundamental change in the way we produce and use energy in this country. How can you help? Sweater Day - February 17, 2011 Earth Hour - March 26, 2011 LET US COUNT YOU IN! We have an aggressive goal this year to secure support from thousands of cities and business from coast to coast. Your support is invaluable. Pledge your commitment by sending an to SweaterDay@wwfcanada.org or EarthHour@wwfcanada.org. WEAR A FUN SWEATER on Thursday, February 17th - around the house, at the office, or out in your community. Show your support for reducing carbon footprint by donning a fun sweater while saving energy at the same time! TURN OFF YOUR LIGHTS on Saturday March 26 between 8:30 p.m. and 9:30 p.m. This includes all nonessential lights, i.e. external billboards, internal signs and office lighting. Please ensure lights that effect public safety are kept on or dimmed. FUN SWEATER IDEAS. Engage city staff, local businesses, retailers, schools, community centres and libraries to take part. Throw a sweater party in your local community centre or hall. Have readings for kids of "the Hockey Sweater" or other books at libraries Have a local community drive to donate sweaters and other clothing to Goodwill FUN IDEAS IN THE DARK. Engage city staff, local businesses and restaurants to add an "Earth Hour" theme to their already existing Saturday night festivities. Some cool ideas include; Candlelit dinner parties with friends, family and co-workers Earth Hour 'Happy Hour' at your community pub Earth Hour Unplugged concerts with artists and musicians playing acoustic sets 1 Report from the Clerk Re: Earth Hour Page 145 of 184

146 Right-click here to download pictures. To help protect your privacy, Outlo ok prevented auto matic download of this picture from the Internet. Put up signage and posters Offer "keep warm" menu items at your neighbourhood restaurants and/or grocery stores (i.e. soup-of-the-day, hot chocolate) Community ghost walks around historical centres Dimly lit hockey games at your community centre Children's book reading at the library DOWNLOAD POSTERS, LOGOS & TOOLKITS! Communicate Sweater Day and Earth Hour to staff, tenants, and customers. Free downloads are available at and wwf.ca/sweaterday It's within our reach to make a difference. While Sweater Day is new for 2011 and Earth Hour enters its fourth year in Canada, our end goal - to take action on climate change - remains of the utmost importance. Climate change is the biggest environmental threat to all life on the planet. We believe there is a solution to climate change. We caused it and we can solve it. Join WWF-Canada in supporting these two exciting events that will inspire action among your community members. This is our opportunity to influence positive change and ensure that Canada is on the right path for future generations, our economy and the planet. For a living planet, Jeff Biggar Outreach Coordinator, WWF-Canada You are subscribed as cmortimer@muskokalakes.ca. To unsubscribe please click here. WWF-Canada Privacy Policy. Please do not reply to this message. Replies to this message are routed to an unmonitored mailbox. If you wish to contact us, please capanda@wwfcanada.org or phone Our Donor Relations team will be happy to help you with any questions or concerns you may have Panda symbol WWF-World Wide Fund For Nature (also known as World Wildlife Fund) "WWF" is a WWF Registered Trademark 2 Report from the Clerk Re: Earth Hour Page 146 of 184

147 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22, 2011 SUBJECT: ONTARIO SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS (OSPCA) AGREEMENT RECOMMENDATION: That By-law , being a by-law to authorize the Mayor and Clerk to execute and affix the Corporate Seal to an agreement between The Township of Muskoka Lakes and The Ontario Society for the Prevention of Cruelty to Animals (OSPCA), be given three readings. APPROVALS: Date Signature Submitted By: Cheryl Mortimer, Clerk 16/02/11 Original signed by C. Mortimer Acknowledged: Walt Schmid, CAO 16/02/11 Original signed by W. Schmid EXECUTIVE SUMMARY: Pursuant to Township By-law 97-29, as amended, the Township requires a poundkeeper for the care and safekeeping of dogs impounded by the Township. It is recommended that the Township enter into a new five year agreement with the Ontario Society for the Prevention of Cruelty to Animals (OSPCA) for these services. The agreement proposes a 3% annual increase over the five year term of the contract. ORIGIN: The attached draft agreement has been received from the OSPCA. BACKGROUND: The Township of Muskoka Lakes has, for several years, utilized the OSPCA as poundkeeper for the Township. The previous agreement was entered into in 2008 for a three year term. In 2011, the OSPCA is requesting a five year agreement term from 2011 to Attached for your review are the previous agreement and the proposed agreement. All wording and fee changes have been highlighted in yellow for easy reference. You will note that item 1.3 of the previous agreement has been deleted by the OSPCA and item 1.7 of the proposed agreement has been added by the Township. Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 147 of 184

148 Page 2 OSPCA Agreement Report Staff has prepared By-law to authorize the Mayor and Clerk to execute and affix the Corporate Seal to the poundkeeper agreement between the Township and the OSPCA. The Development Services Coordinator is supportive of the proposed agreement and is pleased with the poundkeeper services provided by the OSPCA. If approved, the agreement reflects a 3% increase annually in the contract fee for service. All other fees are remaining the same as shown in Schedule A of the proposed agreement. The fees listed in Schedule A are the fees as outlined in Township By-law which licenses and regulates dogs within the Township. FINANCIAL: The previous and proposed OSPCA Agreement contract fees are listed below. Fee OSPCA Agreement (based on a 3% annual increase) OSPCA Agreement (based on a 3% annual increase) Annual contract fee for service to the OSPCA $3, $3, $3, $3, $3, $3, $3, $4,000 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 148 of 184

149 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 149 of 184

150 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 150 of 184

151 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 151 of 184

152 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 152 of 184

153 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 153 of 184

154 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 154 of 184

155 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 155 of 184

156 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 156 of 184

157 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 157 of 184

158 Report from the Clerk Re: Ontario Society for the Prevention of Cruelty to Animals Agreement. Page 158 of 184

159 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22, 2011 SUBJECT: APPOINTMENTS TO COMMITTEES RECOMMENDATION 1: Council Liaisons: That the following members of Council be appointed as Township - ACO Muskoka Branch / Muskoka Doors Open - Councillor Ruth Nishikawa - Communications & In-house Publications - Councillor Phil Harding - Community Centres - Ward A - Councillor Ruth Nishikawa - Ward B - Councillor Allen Edwards - Ward C - Councillor Jean-Ann Baranik - Muskoka Watershed Council - Councillor Ruth Nishikawa - Nurse Practitioners Office Working Group - Councillor Allen Edwards and Councillor Bob McTavish - Recreational Trails - Councillor Phil Harding - Staff Housing - Councillor Bob McTavish and Councillor Phil Harding - Township Website - Councillor Don Furniss RECOMMENDATION 2: That the following be appointed as members of the Township of Muskoka Lakes Finance Review Committee: - Mayor Alice Murphy - Councillor Brad Burgess - Councillor Don Furniss - Adele Fairfield - John Curan - Al Moran - Allan Turnbull Report from the Clerk Re: Appointments to Committees. Page 159 of 184

160 Page 2 Report Committee Appointments RECOMMENDATION 3: That By-law , being a by-law to amend By-law , being a by-law to appoint Council members to the Community Centre Hall Boards (appointment of Councillor Allen Edwards as a member of the Ullswater Community Centre Hall Board), be given three readings. APPROVALS: Date Signature Submitted By: Cheryl Mortimer, Clerk 15/02/11 Original signed by C. Mortimer Acknowledged: Walt Schmid, CAO 16/02/11 Original signed by W. Schmid EXECUTIVE SUMMARY: In accordance with Section 2.k) of Township Procedural By-law , as amended, and based on the recommendations provided by Mayor Alice Murphy, it is recommended that the above referenced liaisons, committee, and hall board member appointments be made. ORIGIN: Section 2.k) of Township Procedural By-law , as amended, states that the Mayor shall annually select, or when deemed necessary, members who are to serve on Standing Committees and other Committees, including the selection of the Chair, Vice Chair, Deputy Mayor and Acting Deputy Mayor. These appointments shall be confirmed by by-law or by resolution of Township Council. With the new term of Council, various committee appointments are required. Mayor Murphy has made recommendations in this regard. BACKGROUND: Previous appointments made to date are listed in Schedule A attached to this report. It is recommended that Township Council confirm the appointments listed in Schedule B attached to this report as recommended by Mayor Murphy. FINANCIAL: NA. Report from the Clerk Re: Appointments to Committees. Page 160 of 184

161 SCHEDULE A APPOINTMENTS MADE AS OF JANUARY 18, 2011 December 6, 2010 Inaugural Council Meeting Deputy Mayor By-law Councillor Allen Edwards Council member December 9, 2010 Council Orientation Meeting Committee of Adjustment By-law By-law Mayor Alice Murphy Council member Councillor Brad Burgess Council member Councillor Allen Edwards Chair Council member Susan Benson Citizen member Carol Anne Robinson Citizen member December 14, 2010 Council Meeting Committee of the Whole - all members of Council Resolution C-13-14/12/10 Visioning Mayor Alice Murphy Chair Council member Councillor Phil Harding Vice Chair Council member Planning Councillor Ruth Nishikawa Chair Council member Mayor Alice Murphy Vice Chair Council member Economic Development & Communications Councillor Phil Harding Chair Council member Councillor Brad Burgess Vice Chair Council member Roads & Infrastructure Councillor Ron Brent Chair Council member Councillor Allen Edwards Vice Chair Council member Finance Councillor Brad Burgess Chair Council member Councillor Don Furniss Vice Chair Council member Administration Councillor Don Furniss Chair Council member Councillor Bob McTavish Vice Chair Council member Community Councillor Bob McTavish Chair Council member Councillor Ron Brent Vice Chair Council member Emergency Management & Volunteerism Councillor Jean-Ann Baranik Chair Council member Councillor Gault McTaggart Vice Chair Council member Parks, Trails & Libraries Councillor Gault McTaggart Chair Council member Councillor Ruth Nishikawa Vice Chair Council member Report from the Clerk Re: Appointments to Committees. Page 161 of 184

162 Accessibility Plan Working Group - Council Liaison Resolution C-14-14/12/10 Councillor Ruth Nishikawa Council member Communities in Bloom - Council Liaison Resolution C-14-14/12/10 Councillor Ron Brent Council member Muskoka Lakes Chamber of Commerce - Council Liaison Resolution C-14-14/12/10 Councillor Jean-Ann Baranik Council member Community Centre Hall Boards - Council Members By-law Councillor Ruth Nishikawa Bala Council member Councillor Ron Brent Foot's Bay Council member Councillor Ron Brent Glen Orchard Council member Councillor Gault McTaggart Hekkla Council member Councillor Don Furniss Milford Bay Council member Councillor Jean-Ann Baranik Peninsula Council member Councillor Jean-Ann Baranik Port Carling Council member Councillor Gault McTaggart Raymond Council member Councillor Bob McTavish Torrance Council member Councillor Brad Burgess Walker's Point Council member Councillor Allen Edwards Windermere Council member December 15, 2010 Committee of the Whole Meeting Township / District Related Matters - Working Group Res COW-12-15/12/10 Mayor Alice Murphy Council member Councillor Allen Edwards Council member Councillor Phil Harding Council member Councillor Ruth Nishikawa Council member January 18, 2011 Council Meeting Fence Viewers By-law Don Goltz Citizen member Gary Kaye Citizen member Roger Pilkey Citizen member Shelley Raymond Citizen member Property Standards Committee By-law Don Goltz Citizen member Gary Kaye Citizen member Roger Pilkey Citizen member Shelley Raymond Citizen member Muskoka Lakes Public Library Board By-law Kristan Farlie Citizen member Patricia Gidley Citizen member Linda McAuley Citizen member Steve Hayhurst Citizen member Lindsay Hill Citizen member Councillor Gault McTaggart Council member Sandy Tozer Spence Citizen member Alexandra Wheaton Citizen member Report from the Clerk Re: Appointments to Committees. Page 162 of 184

163 SCHEDULE B APPOINTMENTS RECOMMENDED FOR FEBRUARY 22, 2011 ACO Muskoka Branch / Muskoka Doors Open - Council Liaison Councillor Ruth Nishikawa Council member Communications & In-house Publications - Council Liaison Councillor Phil Harding Council member Community Centres - Council Ward Liaisons Councillor Ruth Nishikawa Ward A Council member Councillor Allen Edwards Ward B Council member Councillor Jean-Ann Baranik Ward C Council member Community Centre Hall Boards - Ullswater Council Member Councillor Allen Edwards Ullswater CC Council member Finance Review Committee Mayor Alice Murphy Council member Councillor Brad Burgess Council member Councillor Don Furniss Council member Adele Fairfield Citizen member John Curan Citizen member Al Moran Citizen member Allan Turnbull Citizen member Muskoka Watershed Council - Council Liaison Councillor Ruth Nishikawa Council member Nurse Practitioners Office Working Group - Council Liaisons Councillor Bob McTavish Council member Councillor Allen Edwards Council member Recreational Trails - Council Liaison Councillor Phil Harding Council member Staff Housing - Council Liaisons Councillor Bob McTavish Council member Councillor Phil Harding Council member Township Website - Council Liaison Councillor Don Furniss Council member Report from the Clerk Re: Appointments to Committees. Page 163 of 184

164 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22nd, 2011 SUBJECT: Burgess I Power Station, Change of Lessee Proposal RECOMMENDATION: That Council invite Mr. Robert Lévesque of CSC Électrique, to delegate Council at its meeting of March 14 th, to gain a better appreciation of CSC Électrique s proposal for a Micro Turbine Hydro Generating Facility at the Burgess 1 Station and the creation of a new lease agreement with the Township. APPROVALS: Date Signature Submitted By: Walt Schmid, CAO February 22nd, 2011original signed by CAO Acknowledged: Walt Schmid, CAO February 22nd, 2011original signed by CAO EXECUTIVE SUMMARY: That CSC Électrique s request to delegate to Township Council, regarding their proposed Micro Turbine installation at the Burgess 1 Hydro Facility be approved and that CSC be asked to attend the Council meeting of March 14 th, ORIGIN: BACKGROUND: CSC Électrique, Ste.-Sophie, Quebec. The Township of Muskoka Lakes owns the Burgess 1 Hydro Generating Station, located on Mill Street in Bala. Algonquin Power is the current lease holder of this municipally owned building. The CAO has been contacted by Mr. Robert Lévesque of CSC Électrique, CSC Électrique is interested in taking over the current Algonquin Power Lease Agreement with the Township. CSC proposes to install a high efficiency, low head turbine, in place of the existing unit. CSC Électrique specializes in micro turbine, electromechanics, electronic controls and high voltage power installations. The capacity of the new unit would be kept to the existing approved water taking capacity of 4 cubic meters per second (cms). Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 164 of 184

165 CSC has indicated that they would like to use local businesses to help with the installation of the equipment and that they would like to keep the existing local employee for the operation and maintain the power plant. CSC Électrique had communicated to the former council expressing interest in the Burgess 1 Station. The former Council believed that due to the upcoming election, discussions with CSC Électrique should be postponed until after the municipal election. Mr. Lévesque has requested permission to delegate council at its next meeting, March 14 th, Financial: None at this time. Attachments: CSC correspondence, Jan 12, 2011 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 165 of 184

166 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 166 of 184

167 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 167 of 184

168 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 168 of 184

169 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 169 of 184

170 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 170 of 184

171 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 171 of 184

172 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 172 of 184

173 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 173 of 184

174 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 174 of 184

175 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 175 of 184

176 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 176 of 184

177 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 177 of 184

178 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 178 of 184

179 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 179 of 184

180 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 180 of 184

181 Report from the CAO Re: Burgess 1 Power Station, Change of Lessee Proposal. Page 181 of 184

182 COUNCIL AGENDA REPORT TO: Mayor Murphy and Members of Council MEETING DATE: February 22nd, 2011 SUBJECT: Port Carling Dam, MNR Gate Installation RECOMMENDATION: That the Council of the Township of Muskoka Lakes requests that the Ministry of Natural Resources not install gates that restrict access to the Port Carling Dam and the long established walking trail connecting James Bartleman Island to Muskoka Road #118; and that representatives of the Ministry be asked to attend a Township Council meeting as soon as possible to describe and explain the proposed installation of the gate structure. APPROVALS: Date Signature Submitted By: Walt Schmid, CAO February 22nd, 2011 original signed by CAO Acknowledged: Walt Schmid, CAO February 22d, 2011 original signed by CAO Executive Summary: That representatives of the MNR be asked to attend an upcoming council meeting to discuss the proposed installation of a gate structure on the Port Carling Dam, and that the MNR be requested not to install the gate structure. ORIGIN: BACKGROUND: Ministry of Natural Resources Staff have received correspondence from the Ministry of Natural Resources indicating that a gate structure will be installed on either end of the Port Carling Dam. The dam is owned and operated by the MNR. No Trespassing signs are currently on the dam. The MNR indicate that public access to a water control structure represents an operator and public safety issue and by extension a liability risk to the province. The top of the existing Port Carling dam structure provides an easy walkway that connects James Bartleman Island and MR#118. Some council members have expressed a concern about the installation and appearance of the gates as installed in Bala and Port Sydney. Report from the CAO Re: Port Carling Dam, MNR Gate Installation. Page 182 of 184

183 Council may wish to communicate to the MNR requesting that the gate structure not be installed on the Port Carling Dam. If this is Council s desire, the above noted resolution can be sent to the ministry. Financial: Attachments: None at this time. Photograph of Port Sydney dam, gate installation. Report from the CAO Re: Port Carling Dam, MNR Gate Installation. Page 183 of 184

184 Report from the CAO Re: Port Carling Dam, MNR Gate Installation. Page 184 of 184