Guide to Service Agreements

Unit 3

Guide to Service Agreements

Unit 3: Table of contents1. Establishingthefoundationforaserviceagreement....................................................... 58

1.1 Feasibilitystudies............................................................................................... 58

1.2 Environmentalassessment.................................................................................. 60

2. Serviceagreements:Discussingthetermsoftheagreement........................................... 61

2.1 Negotiationprinciples......................................................................................... 61

2.2 Serviceagreementprovisions............................................................................... 63 2.2.1 Checklist1:Essentialcontractelementsofaserviceagreement.................. 64 2.2.2 Checklist2:Descriptionofservicesinaserviceagreement......................... 65 2.2.3 Checklist3:Customaryprovisionsforaserviceagreement.......................... 68 2.2.4 Checklist4:Additionalrecommendedprovisions....................................... 70

2.3 Schedulestoincludeinaserviceagreement........................................................ 71

2.4 Bylawcompatibility............................................................................................ 71

3. Guidelinesforpricingoptionsinaserviceagreement..................................................... 75

3.1 Principlesforestablishingcostsharingandpricing.............................................. 75

3.2 Pricingconsiderations......................................................................................... 75

3.3 Samplepricingmodels....................................................................................... 78

4. Serviceagreementrenegotiation:Updatinganexpiredorout-of-dateagreement.............. 82

4.1 Evaluatingyourpastrelationshipandserviceagreement....................................... 82

4.2 PrinciplesofRenegotiation................................................................................. 83

4.3 ChallengesofRenegotiation................................................................................ 83

4.4 Fillinginthegaps:Serviceagreementrenegotiationtool....................................... 84

5. Regulatorychallenges.................................................................................................. 87

5.1 Waterregulations............................................................................................... 87

5.2 Wastewaterregulations....................................................................................... 88

5.3 Changestoregulations....................................................................................... 88

6. Serviceagreementcasestudies.................................................................................... 90

6.1 GitanmaaxFirstNationandtheTownofHazelton(BC)......................................... 91

6.2 MuskegLakeFirstNationandtheCityofSaskatoon(SK)..................................... 94

6.3 GlooscapFirstNationandtheTownofHantsport(NS).......................................... 98

7. Tools:Serviceagreementtemplates............................................................................101

7.1 Template:WaterandSewerServiceAgreement..................................................102

8. Serviceagreementandpricingreferences...................................................................111

Service Agreement Toolkit – 57

58 – Service Agreement Toolkit

UNIT 3

1. Establishing the foundation for a service agreement

1.1 Feasibility studiesAftercommunitieshaveestablishedpositiveworkingrelationships,afeasibilitystudyisthefirststepindeterminingifaserviceagreementisanappropriatemethodforserviceprovision.AfeasibilitystudywillhelpdetermineiftheareasofcooperationidentifiedbytheFirstNa-tionandthemunicipalityduringtheirprelimi-naryconversationsmakesenseeconomicallyandoperationally.Thelevelofsophisticationofthefeasibilitystudywillvaryfromregiontoregiondependingonpopulation,capacityandtypeofserviceprovided.Insomecommuni-ties,staffmembersfromthemunicipalityandtheFirstNationcancompletefeasibilitystudies,whereasothercommunitiesmayneedtohireexternalexperts.

What does a feasibility study seek to accomplish?Afeasibilitystudyexaminesseveralissues,whichcanhelpidentifyifaserviceagreementisanappropriateoption.Thefollowingactionsshouldbeconsideredinafeasibilitystudy:

• Outlinehowservicesarecurrentlybeingprovidedineachcommunity.

• Identifystrengthsandweaknessesofthestatusquoinaquantifiablemanner.

• Assesscurrentcostsforbothpartiestoperformtheservicesindividually.

• Examinehowthelevelandqualityofservicecouldimproveorcostscouldbereducedover5–10yearsifcommunitiessharedresourcesandequipmentorcom-munitiesinvestedjointlyinmoreexpensiveandsophisticatedinfrastructure,facilities,orequipment.

• Analyzethelong-termlifecycleoftheserviceagreement.

• Identifythecostofaserviceagreementcomparedwiththatofthestatusquo.

• ComparethesituationtoothercaseswhereFirstNationsandmunicipalitieshavecooperatedforsimilarservices.

What are the benefits and outcomes of a feasibility study?Byprovidingthisinformationinafeasibilitystudy,bothpartiesandthepotentialfundersoftheprojectswillbeabletodeterminethefollowing:

• Theextenttowhichfinancialsavingsandeconomiesofscalecanbeachievedbytheserviceagreement

• ThepossibleservicelevelimprovementsforthemunicipalityortheFirstNation

• Theinfrastructure,equipmentandfinan-cialresourcesthatwillberequiredfrombothparties

Thissectionoutlinessomeofthegroundworkthatisrequiredwhendecidingifaserviceagreementisafeasibleoptionfinanciallyandoperationallyforyourcommunity.


UNIT 3• Whichlegalconsiderationswillneed

tobetakenintoaccountduringthenegotiationoftheserviceagreements(e.g.,infrastructureownership)

• Waysinwhichinfrastructureandservicescouldbeorganized

• Anyrisksorpotentialnegativeimpactstoeitherparty

• Thebenefits

Who pays for the feasibility study?Bothcommunitiesshouldsharethecostsofanexperttoperformthefeasibilitystudy,ortheyshoulddividethecostproportionatetoperceivedbenefitoftheserviceagreementorproportionatetopopulation.MunicipalitiesandFirstNationshaveuniqueoptionstoreceivefundingandgrantstoundertakeafeasibilitystudy,andbothpartiesshouldexplorethoseoptionsthoroughlybeforeproceedingwiththeirstudy.Severalorgani-zationsoffergrantsandcost-sharingop-portunitiesforfeasibilitystudies.Formoreinformationaboutfundingopportunities,pleaseseeUnit 4, Chapter 1: Considerations for your service agreement.

1.2 Environmental assessmentAnenvironmentalassessment(EA)isanimportantpartoftheplanningstagesforapotentialinfrastructureproject.ThissectionoutlinesthepurposeofanenvironmentalassessmentandtherelevantlegislationanddescribeshowenvironmentalassessmentsfitintoprojectdeliverywhenworkingwithAANDC.

PurposeAnenvironmentalassessmentisalegislatedplanningandevaluationprocessthatiscom-pletedpriortoadevelopmentproject.Envi-ronmentalassessmentsconsiderthepotentialenvironmentalandsocio-economicimpactsofaprojectbeforeitbeginstoensurethatanypotentialnegativeimpactsoftheprojectcanbeadequatelymitigated.Iftheprojectgoesahead,informationgatheredthroughtheenvi-ronmentalassessmentprocesscanbeusedtoguidechangestotheproject’sdesignthatmayhelpminimizeimpactsontheenvironmentandpeople.

LegislationAnenvironmentalassessmentistriggeredaccordingtotheCanadian Environmental Assessment Act(CEAA)or,forprojectslocatedinYukon,undertheYukon Environmental and Socio-economic Assessment Act(YESAA).Generallyspeaking,anenvironmentalassess-mentisnecessarywheneveraphysicalin-frastructureprojectisproposed(e.g.,anewwatertreatmentsystem)withtheexceptionofprojectslistedontheExclusionListRegula-tionsofCEAA.Formoredetailedinformationonenvironmentalassessmentrequirements,pleaseseetherespectiveActs.


Environmental assessments: how AANDC fits inProposedprojectsfundedbytheDepartmentofAboriginalAffairsandNorthernDevelopment(AANDC)maytriggeranenvironmentalassess-mentunderCEAA.Whentheenvironmentalassessmentistriggered,AANDCwillinitiatetheEAreviewprocessaccordingtoitsobligationsunderCEAAandwillengageotherdepartmentsasnecessary(e.g.,EnvironmentCanada,HealthCanadaandstakeholders).

Itisimportanttonotethattheenvironmentalassessmentisrequiredonlyonceforanentireproject.However,AANDCrequiresreportingthroughareviewprocessthatmustbecom-pletedateachstage(i.e.,feasibility,pre-designanddesign)ofanyprojectitfunds.

Whenmakingitsrecommendationsforfundingdecisions,AANDCwillconsiderboththeresultsoftheenvironmentalassessmentandtheadditionalcommentsprovidedbytheotherpartnerswhenmakingitsrecommenda-tionsandfundingdecision.

TheenvironmentalassessmentfitsintoAANDC’slargerroleofcoordinatingprojectreview,whichincludesreviewingprojectproposalsagainstappropriateengineeringstandards,guidelinesandpolicies,approv-ingfunding,providingtechnicaladvice,andensuringthattheenvironmentalassessmentprocessisconductedwhererequired.AANDCwilldeterminethetimingoftheenvironmentalassessmentonacase-by-casebasisasitfitsintothesereviewprocesses.

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UNIT 3


2. Service agreements: Discussing the terms of the agreement

Ingeneral,thereareanumberofbestpracticestokeepinmind:

1. Service agreements should recognizeas many services as possible.

Whennegotiatingserviceagreementsitisimportanttoconsiderthevariouswayscommunitiescancooperateonprovid-ingservicestotheirresidents.Allpartiesshouldkeepinmindservicessuchasrecreationfacilities,libraries,snowremovalandotherserviceswhichareorcanbeprovided.

2. Service agreements should be built from knowledge gained from past experience and the experiences of others.

Serviceagreementsarenotanewphenom-enonwhichmeansthereisavastbodyofknowledgethroughexperiencethatexistsacrossthecountry.Formoreinformationonlessonslearnedfromserviceagreementsandpartnershipsacrossthecountry,pleaseseethecasestudieswhichappearthrough-outUnits 2, 3 and 4 of the CIPP Toolkit.

Thenextsectionoffersrecommendationsingeneraltermsonserviceagreementprovisionsandadditionallegalconsiderationstoassistinthedevelopmentofsuccessfulserviceagree-ments.Theserecommendationsareaguidetohelpgeneratediscussion,speedupthenegotiationprocessandreducethelegalfeesthatareassociatedwithcontractualagree-ments.TheinformationprovidedcomplimentsUnit 3, Chapter 7: Tools: Service agreements templates andthetemplatesfoundonthe service agreement template CD.

2.1 Negotiation principlesAnawarenessandunderstandingoftheideallegalclausesofaserviceagreementisextremelyimportantforcreatinganagreementwithoutanygaps.However,negotiatingeachclausecanbetime-consumingandsometimeschallenging.MunicipalitiesandFirstNationscanminimizethesechallengesandproducemutuallyagreeableserviceagreementsbyestablishinggroundrulesorprinciplesfortheirnegotiation.Thissectionprovidessuggestedprinciples,whichcommunitiescanusetoworkmoreeffectivelytogether.

Afteraserviceagreementhasbeendeemedafeasibleoptionforserviceprovision,partiesmustdecideonthepracticalaspectsoftheserviceagreement.Thismeansdecidingonthetermsoftheagreement:whowillbeprovidingwhatservices,howtheseserviceswillbemanaged,howmuchtheseserviceswillcostandwhatprincipleswillgoverntherelationshipbetweentheFirstNationandthemunicipality.Byensuringeachserviceagreementhassufficientinformationfromthebeginning,futuregenerationsofleadersforbothpartieswillbeabletounderstandthespiritoftheagreementinfull.Thisfullunderstandingwillminimizefuturedisputesandensurelimitedgapsintermsoflegalclauses,schedules,servicestandardsandpricing.


ThefollowingprinciplesrepresentlessonslearnedandbestpracticesasrecommendedbyexpertsinthefieldandreferencedintheInsti-tuteonGovernancedocument,Towards Sound Government to Government Relationships with First Nations: A Proposed Analytical Tool.

Fairness

Fairnessmeanstreatingallpartiesinaneq-uitablemanner.TheInstituteonGovernanceemphasizesthatequitabledoesnotmeanequalatalltimes.Itmeanstreatingpartiesinafairmannerthatbothpartiescanagreeto.Forexample,duringaconsensus-baseddecision-makingprocess,amunicipalitymayhavefourindividualsonitssideofthenegotiatingtablewhileaFirstNationmayhavesix.Althoughthissituationisnotequal,itisequitableasdeci-sionscannotbemadeunlesseveryoneagrees.Itcouldbethatthemunicipalityonlyhasfourpeoplewhocouldattendthenegotiationmeeting.Fairnessalsomeansrespectingthatnegotiatingserviceagreementstakesplaceinagovernment-to-governmentcontext,whichinturnmeansrespectingthejurisdictionofeachpartyandtheirrespectivelegalrights.

Legitimacy and voice

Maintaininglegitimacyandvoiceinserviceagreementnegotiationiscloselylinkedtofair-ness.Legitimacycanpertaintoseveralaspects:

• ThequalityoftheinteractionbetweentheFirstNationandthemunicipality

• Theextenttowhichtherelationshipandtheagreementhaveinvolvedthecommunitiesandgiventhesecommunitiesavoiceinthediscussions

• Theextenttowhichdifferingapproachestogovernanceandnegotiationisrespectedbybothparties

Accountability

Accountabilitymeansensuringthatnego-tiationsarecarriedoutinamannerthatisresponsivetocommunityneedsandexpecta-tions,fundersandpartners.Beingaccountablemeansbeingtransparenttoyourcommunity,followingthroughonpromisesandsharinginformationwitheveryoneinvolvedinthenego-tiations.Thisincludespreventingdelaysinthenegotiationprocessandgainingtrust.

Preparation

Whenenteringintonegotiationwithyourneigh-bour,makesureyouarriveatthediscussionspreparedsothatdiscussionsstayontrackandorganized.Somequestionstoconsiderincludethefollowing:

• OnwhatservicesamIwillingtocooperate?• Whataremymainconcerns?• Whatwillmypartner’smainconcernsbe?• HowamIpreparedtoaddressmypartner’s

concerns?• Whataremycommunity’smainrestrictions?• WhatamIlookingforinthispartnershipin

termsofcommunication?• IsthereatimelineinwhichIwouldliketo

trytoachieveourobjectives?• Whatdoessuccesslookliketome?

Expert advice

Althoughitispossibletoreachagreementwith-outusingexperts,sometimeshiringanexpertcanhelpgetdiscussionsbackontrackifnegotiationsbecomedifficult.

Professionalfacilitatorsandnegotiatorscanhelpbothpartiescommunicatetheirdesiresandneedsmoreeffectivelytoeachotherandhelpcommunitiesdiscussthemoredifficultorcomplicatedissuesthatmayarise.Lawyersmaybeusedtohelpcommunitiesunderstandthefulllegalimplicationsoftheiragreement.Theyareimportanttoconsulttowardtheendofnegotiationstoensurethattheserviceagreementiscomplete.

UNIT 3

UNIT 32.2 Service agreement provisions Animportantpartofhavingarobustserviceagreementisensuringthatthecontentsoftheactualserviceagreementarecompleteanddetailed.Anumberofelementsshouldbeincludedinaserviceagreement,butthisisbynomeansanexhaustivelistoftheprovi-sionsthatshouldappearinanagreement.Thesechecklistsaremeantasaguideforbothpartiesthatwillneedtoworktogetheranddiscussthevariousroles,responsibilitiesandstructuresbeforeenteringintoanagreement.

Theprovisionsofaserviceagreementcanbesubdividedintofourmaincategories:

• Essentialcontractelements• Descriptionofservices• Customaryprovisions• Additionalrecommendedprovisions

UsethissectionwiththeServiceAgreementtemplatesfoundinUnit 3, Chapter 7: Tools: Service agreement templates andwiththe templates found on the service agreement templates CD.



UNIT 3

2.2.1 Checklist 1: Essential contract elements of a service agreement

Effective date

Theeffectivedateofaserviceagreementestablisheswhentheagreementwillbecomelegallybindingontheparties.Thisdatecanbethedateofadoptionbybothpartiesoradatedeterminedbytheparties.Itshouldalways,therefore,beafterthenecessarybandcouncilresolutions,bylawsandauthorizationshavebeenapproved.

Parties to the agreement

Thenamesofthepartiesintheagreementmustbeclearlystatedatthebeginningoftheserviceagreement.Eachparty’stitlewillbefollowedbyitsauthoritytoenterintotheagreement(asde-scribedinthenextsubsection).

Authority to enter into agreement

Thepartiesinvolvedintheagreementmayprovideevidenceoftheirauthoritytoenterintotheagreementitself(i.e.,anapprovalfrombandcouncilormunicipalcouncil).Thissectionisusuallyincludedinthepreamblesection(seebelow)asthefirsttwoclauses.

InthecaseofaFirstNation,whichisgovernedbyaChiefandanelectedcouncil,paragraph2(3)(b)oftheIndian Act,R.S.C.1985,I-5,providesthatabandcouncilmustexerciseitsauthorityatabandcouncilmeetingwherethemajorityofbandcouncillorsarepresent.TheauthorityofaFirstNationtoenterintoanagreementwillcomeaboutifthebandcouncilapprovestheagreementatabandcouncilmeetingwherethemajorityofthecouncillorsarepresent.Anexampleofevidencewouldbeabandcouncilresolutionsignedbythebandcouncilmembers.Ideally,acopyofthebandcouncilresolutionwouldbeattachedasascheduletotheagreement.

Similarly,amunicipalitywouldgainauthoritytoenterintoanagreementfromamunicipalbylaworaresolution.Ideallytheserviceagreementwouldincludeareferencetothisbylaworacopyofthebylawwouldbeattachedasascheduletotheagreement.Formoreinformationaboutwhatschedulestoattachtoyourserviceagreement,pleaseseeUnit 3, Chapter 8: Service agreement and pricing references.

Preamble

Apreamblesetsoutthebackgroundinformationabouttheagreementanddescribesthepurposeoftheagreementinbroadandgeneralterms.Itimmediatelyfollowsthepartiesoftheagreement.Itisgenerallyashortsectionthatfollows“WHEREAS”.

Definition of terms

TheDefinitionofTermssectionofanagreementwillprovideanylegaldefinitions,shortformsusedwithinthedocumentanddefinitionsofanycommontermsincludingtermsrelatedtoservicepro-vision.Thedefinitionsinthissectionareimportantforconsistencyintheagreementandtoensurethatthepartiesareabletoreferencethesedefinitionsatalaterdate,leavinglittleambiguityintheinterpretationoftheagreement.


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Term of agreement

Insomecasespartieswillrequesttohavetheagreementforafiniteperiodoftime.Therearebenefitsanddownfallsoffixedtermagreements.Forexample,ifonepartyintendstoinvestalotoftimeandmoneyintothearrangement,thatpartymaydesirealonger-termarrangementsothatcostscanberecovered(e.g.,10yearsisconsideredareasonablylongtermforanagreement).However,theotherpartymaydesireashortertermifitwishestorenegotiatethetermsofthearrangementregularly.Somecommunitiescompromisebysettinga5-to10-yearterm,butstipulatethatcostswillbere-evaluatedeachyear.

Partiesmaywanttheabilitytobeabletoterminatetheserviceagreementwithreasonablenoticefromeitherpartybeforethespecifiedterminationdate.WhatconstitutesreasonablenoticewilldependonthecircumstancesandwillneedtobedefinedbythemunicipalityandtheFirstNation.Forexample,complexagreementssuchaswaterandwastewaterwillgenerallyrequiremuchearliernoticethanthoseforsolidwaste.

Renewal of agreement

Ifthepartieshaveagreedtocreateafixedtermserviceagreement,itispossiblethattheagree-mentwillexpirebeforeanewserviceagreementcanbenegotiated.Thepartiesmaywishtoincludeanautomaticrenewalprovisiontoavoidthepossibilityofhavingnoagreementintheinterim.Alternatively,ifthepartieswishtorenegotiatewitheachrenewal,itispossibletostipulateatimeframeforrenegotiation.Forexample,thepartieswillbegintorenegotiatetheagreementeighteen(18)monthsbeforetheendoftheterm.

Applicable law

Section88oftheIndian ActprovidesthatalllawsofgeneralapplicationineachprovinceapplytoFirstNationsintheprovince,exceptinthecasethatthoselawsareinconsistentwiththeIndian Actoranyotherrule,order,regulationorbylawmadeundertheIndian Act.

TheFirstNationmaywishtoincludethisprovision,whichemphasizesthatthisprinciplebeup-heldintheserviceagreement.However,thiswouldsimplybeareiterationofexistinglawandisbynomeansnecessary.ItmaybedesirabletorestatethisprovisionifonlyforameansofintroducingamediationprovisioninthecaseofaconflictoverwhetheraprovinciallawisinconflictwiththeIndian Act.

Constitutional and legislative changes

Manyserviceagreementswillbeineffectforalongperiodoftimeandinsomecases,legislativechangesmaytakeplacethatwillaffecttherightsandobligationsofthepartiesintheagreement.Partiesmaywishtoconsiderincludingamechanismintheiragreementforresolvinganydifficul-tiescausedbyfuturelegislativechanges(e.g.,environmentalregulations,waterorwastewaterregulations)aslegislativechangesmayrequirecapitalupgrades,costincreasesorchangestoservicedelivery.


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Consent by interested party

Whenonepartyhiresadevelopertodevelopanarea,theotherpartywillwanttoensurethatthedeveloperisawareoftheprovisionsoftheserviceagreement.Therefore,includeintheagreementaclausestatingthatthepartycontractingtheserviceswillbeobligatedtoprovidethecorporationwithnoticeandacopyoftheagreement.Thisclauseshouldalsostatethatalthoughthedeveloperconsentstothetermsoftheagreement,itdoesnotreplaceaseparateagreementbetweenallthreeparties(i.e.,band,municipalityanddeveloper)outliningconstructionresponsibilities.Theotherpartnermayalsowanttoensurethatitisindemnifiedfromliabilityoflossesor

damagesasaresultofthecorporation’sactions.

2.2.2 Checklist 2: Description of services in a service agreement

Description of services

TheDescriptionofServicessectionexplainswhatonepartyiswillingandabletosupplytotheotherandthatthepartyreceivingtheservicesiswillingtopurchasetheaforementionedservicesfromtheserviceprovider.Servicesmayincludeoneormorehardservices(e.g.,waterandwastewater)andarangeofotherservicessuchassolidwaste,fireprotection,animalcontrolandparksandrecreation.Inthissection,ensureyouareasclearaspossibleaboutwhichservicesareincludedandwhatthoseservicesentail.Thismayincludescheduleswithmapsofservicedproperties,listsoffacilitiesandserviceschedules(e.g.,schedulesforsolidwastepick-uportransittimetables).

Level of services

Adescriptionofthelevelofservicesshouldstatethestandardofthelevelofservices.Forex-ample,commonlythisprovisionwillmentionthattherecipientofservicesshallreceiveservicesequaltothoseofresidentsoftheserviceprovider’scommunity.

Charges for services

Thissectionshouldoutlinethecostsforprovidingservices.Often,paymentisalumpsumwithseveralcaveatsduetovariablessuchasincreasesinmunicipaltaxesorexpenses,andtheadditionofnewresidencestotheagreement.Inthecaseofwaterorwastewater,itispossibletochargebymeteredusesimilartoresidentsoftheserviceprovider.Theoverallobjectiveofthissectionistosetpricingformulasthatensureequitablepricesbetweenserviceprovidersandservicereceiv-ers.Bothcapitalandoperationcostsmustbeconsideredinthepricingformulation.Chargesforservicesmayincludepreviouslyincurred,butongoing,capitalcostsforaproject.Partieswillneedtohaveadiscussionabouthowcapitalcostsandoperationsandmaintenancewillbecovered.Rationalesforpricingordemonstrationsofpricingcalculationsshouldbeshownintheagreementorinascheduletotheagreementtoensurecorporatememoryoverthetermoftheagreementduetostaffandelectedofficialturnover.Seemoreinformationaboutpricing,charges,andconsider-ationsinUnit 3, Chapter 3: Guidelines for pricing options in a service agreement.


User fees

Userfeesindicateifthereareanyotheradditionalchargesforservices.Forexample,aservicefeeforabuildinginspectionorarecyclingservicesfeemaybepaidinadditiontochargesforservices.Itispossibletoincorporatechangesforservicesanduserfeesunderthesameheadingintheserviceagreement.

Bill payment

Thebillpaymentsectionoutlinestheproceduresforbillpaymentincludinghowthepaymentwillbetransferred,deadlinesforbillpaymentandlatefees,ifnecessary.

Payment penalties and termination for breach of agreement

Aserviceproviderwillwanttoestablishsomerecourseagainstaservicerecipientwhodoesnotpayforservices,whichwouldputtherecipientinbreachofthetermsoftheserviceagreement.Penaltieswouldtraditionallybeusedinthecaseofnon-payment.Oftentimes,suchpenaltieswillnotbeaneffectivemechanismconsideringthejurisdictionalissuesassociatedwithserviceagree-mentsbetweenFirstNationsandmunicipalities.Forexample,manyactionsthatthemunicipalitymayuseagainstitsownresidentsfornon-paymentarenotsuitableforaFirstNationasthereservelandsareheldbytheGovernmentofCanada.Generally,provisionswillbemadeforthesuspen-sionofserviceswhiletheamountowingaccruesinterestor,inextremecases,terminationoftheserviceagreement.Inthecaseofservicesthatcannoteasilybediscontinued(e.g.,waterandwastewater),preventativemeasures—suchasaletterofcreditprovidedtotheserviceproviderincaseoffailuretopayfortheservice(s)—arealsoapracticalwaytodealwithbreachofagreementissuesthatmayarise.TheCIPPserviceagreementtemplatesincludeaclausethatstipulatesaletterofcreditistobeissuedtotheserviceprovider.

Similarly,theservicerecipientmaywanttheserviceagreementtoprovideremediesthatitcanuseiftheserviceproviderbreachesitsobligationsundertheagreement.Thismayincludesuspensionofpaymentor,inextremecases,terminationoftheagreement.

Construction of infrastructure

Ifnewinfrastructureisneededtoprovidetheagreed-uponservicestotheFirstNation,thepartiesmustestablishwhowillberesponsibleforconstructingthenewinfrastructure.Theclausemayalsodefinetheinfrastructurestandardsthatmustbemet.Forexample,ithelpstostatetheminimumrequirementsintheserviceprovider’shealthandsafetystandards.

Ownership of infrastructure

Theownershipofinfrastructureprovisionspecifieswhichpartyownsanynewinfrastructurerequiredtoimplementtheserviceagreement.Usuallyeachpartywillfundcapitalwithintheirjurisdictionorboundariesandwillretainownershipofsuchinfrastructure.

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UNIT 3

Repair

TheRepairprovisiondescribestheprocessesforrepairing,upgradingorintegratingtheservicesthatwillbeprovidedtotheservicereceiver.Often,theprocedureandcostsofrepairsresultingfromnegligenceorwilfulactsaremadedistinctfromroutinemaintenancerepairs.

Access and rights-of-way

Thisprovisionensuresthatstaffandcontractorswillbeallowedaccesstoallareasoftheservicereceiver’sland,whichisnecessarytoprovideservicesandanyrequiredmaintenance.Thisprovi-sionmayalsoincludeinspectionsforserviceagreementcompliance—particularlythosesurroundingfireprotectionagreements.

Liability

TheLiabilityclauseensuresthattherewillbenoliabilityonthepartoftheserviceproviderforfail-uretomakeaserviceavailableatacertainlevel,althoughtheserviceproviderwillmakeitsbesteffortstoensureservicesareintheirbestworkingorder.Thismayalsoincludenoliabilityinthecaseofaservicereceivernotadoptingand/orabidingbybylawsorresolutionsrelatingtoservice

provision.

2.2.3 Checklist 3: Customary provisions for a service agreement

Customaryprovisionsarethosethatareroutinelyusedincontractualagreementsandwillbeapplicabletoallserviceagreementsnomatterhowsimpleorcomplex.Theyprovideaframeworkforalltheprovisions,rightsandobligationspreviouslydiscussed.

Notice

ANoticeclauseensuresthatpartieswillalwaysbeabletocontacteachother.Itincludesup-to-datecontactinformationandprovisionsindicatingappropriateformsofcommunication(letter,fax,etc.),theprocedureforchangeofaddressandthedatethatnoticesfromonepartytotheothershallbedeemedeffective(e.g.,emailsareeffectivethedatetheyaresent).

Entire agreement

Itisimportantthatthepartiesoutlinealltheirrightsandobligationsinonesingledocument.Iftheagreementinvolvesseveralseparatedocuments,theotherdocumentsmustbeattachedasscheduleddocumentstothemainagreement.Ashortclauseshouldbeusedtostatewhichdocu-mentsareconsideredpartoftheagreement.Thisclauseshouldalsostatethattheagreementwillbeinterpretedusingallofthesedocuments,whichwillbeconsideredtheentireagreement.


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Headings

Headingsmakeanagreementeasiertoreadbutsometimesaheadingdoesnotalwaysaccuratelyreflectthesubjectmatterthatfollowsit.Aclauseshouldbeaddedtoensureheadingsdonotguidetheinterpretationofeachprovision,butareusedtomaketheagreementmorereader-friendly.

Amendment

Anamendmentclauseoutlinesthemannerinwhichfuturechangescanbemadetotheagree-ment.Ideally,theamendmentclausewillstipulatethatallamendmentsaretobemadeinwritingandattachedtotheagreement,increasingthecertaintyoftheagreementbyfuturestaffmembers.

Assignment

Assignmentmeanstheextenttowhichotherparties,particularlyinthecaseofamalgamation,willadopttheagreement.Generally,courtsassumethatacontractualrightisassignableunlessithasbeenotherwisestatedintheagreement.Usuallypartieswillnotwantautomaticassignmentwithoutfirstobtainingthenewparties’agreementtoassumetheobligationsandliabilitiesoftheagreement.WhetherornotamalgamationofeitherFirstNationsormunicipalitiesconstitutesanassignmentisunclearinthelaw.Itisthereforeidealthatpartiesdefineintheagreementwhetheranamalgamationconstitutesanassignmentornot.

Enurement

Anenurementprovisionensuresthattheagreementbindsthecurrentpartiesandtheirsuccessorsorsubstitutedparty(e.g.,thenextelectedMayororChiefandcouncil)totherightsandobliga-tionsincludedintheserviceagreement.

Severance

Inthecasethatacourtdeemsaprovisionintheserviceagreementinvalid,theentireagreementcouldfallapartwithoutaprovisionthatallowsthepartiestoremovetheinvalidprovisionwhileleavingtherestoftheagreementintact.

Waiver of breach

Toavoidhavingtheagreementinterpretedasallowingaparty’sconduct,silenceorinactionconsti-tuteawaiveroftheirrightsintheagreement,thepartiesshouldincludeaprovisionthatensuresrightscannotbewaived,exceptbywrittenagreement.


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2.2.4 Checklist 4: Additional recommended provisionsThefollowingprovisionsarenotnecessarytohaveaworkableserviceagreement,buttheyoffertheopportunitytoeaserelationshipchallengesandsupportfurthercollaboration.

Conflict and dispute resolution

Ideally,agreementswillincludeaprovisionrelatedtotheresolutionofdisputesandconflictsbetweentheparties.Thepartiesshouldselectthemethodofresolution(arbitration,mediation,etc.)forthecircumstancesoftheagreement(pleaseseeUnit 2, Chapter 3: Collaborative dispute resolution).Thetermsoftheresolutionmechanismshouldalsobedefinedinthisprovision.Forexample,ifbindingarbitrationwasselected,definehowthecostswillbebornebythepartiesandspecifythetimeframeforthedecision.

Further assurances and compatible bylaws

Lawsofgeneralapplicationapplyonreservesbutsometimes,toensurethehealthandsafetywhiletheagreementisinplace,additionalcompliancewillbenecessary.Servicereceiversmaychoosetoincludeaclauseindicatingwhichbylawstheyintendtocomplywith(e.g.,fireprotectionoranimalcontrolbylaws)oritmaycreateadditionalcomparablebylaws.Usuallythereisalsoaclauseincludedindemnifyingtheserviceproviderfromanylegalactioninthecaseofnon-compliancetoadoptedornewbylawsthatleadtodamage.Formoreinformation,pleaseseeUnit 3, Chapter 2.4: Bylaw compatibility.

Consultation

Thisprovisionensuresthatbothpartiesintendtoconsultwithoneanotheraboutlandmanage-mentissues,regionaleconomicdevelopmentandenvironmentalsustainability,forexample.Thisprovisionwillallowcommunitiestocontinueworkingtogetherinareasbeyondservices.

Regional integration

Aregionalintegrationprovisionensuresthatbothpartieswillactaccordingtoregionalstandardsandparticipateinregionalinitiativessuchassustainabilityforumsandjointwatershedmanage-mentprograms.Formoreinformationabouthowyourcommunitycandevelopjointsource-waterprotectionboardsorinitiateajointsustainability-planningprocess,pleaseseeUnit 4, Chapter 1: Considerations for optimal service agreements.


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2.3 Schedules to include in a service agreementInadditiontoprovidingsufficientinforma-tionintheclausesofaserviceagreement,additionalinformationthatisrelevanttotheserviceagreementandprovidesfurtherinformationaboutthepartnershipshouldbeattachedasschedules.Schedulesensurethatrelevantinformationiswellorganizedandremainsinoneplaceovertime.Sched-ulesmayalsobereferencedinaserviceagreementtoactasappendiceswithadditionalinformationandclarification.

Band council resolutions and bylaws

Partiesoftheagreementshouldprovideevidencethatthebandcouncilandthemunicipalcouncilhaveagreedthattheserviceagreementistotheirmutualbenefitandthattheyintendtohonourit.(SeeexplanationinUnit 3, Chapter 2.2: Service agreement provi-sions,undertheprovision,Authority to enter into agreement.)Itisalsousefultoincludeanybandcouncilresolutionsorbylawsthatdemonstratetheestablishmentofcompatiblebylawsandregulations,particularlythosepertainingtofirecodesforfireprotectionserviceagreements.

Maps

Mapscanhelpclarifyreserveandmunicipalboundaries.Inthecaseofawaterandsewerserviceagreement,mapscandemonstratepointsofconnection,waterandsewermainsandwatermeters,forexample.Mapsarerequiredforfireprotectionandsolidwasteagreementsastheyindicatetheproper-tiesthatwillrequireservicebytheserviceprovider.Thesemapswillneedtobeupdatedregularlyasbuildingsareaddedtothecom-munityorasboundarieschange.

Pricing calculations

Ascheduleoraseriesofschedulescouldbeaddedtoaserviceagreementtodemon-stratehowpricingfortherelevantservicewasestablished.Thiscouldincludecalculations,municipalorFirstNationinfrastructureinventoriesandpopulationanddwellingcountsforbothcommunities.Thisscheduleorseriesofscheduleswillensuretransparencyintheserviceagreementandpreventconflictinthefuture.Formoreinformationaboutpricingmodels,pleaseseeUnit 3, Chapter 3: Guidelines for pricing options in a service agreement.

Communications protocol

Ifcommunitieshavepreviouslyagreeduponacommunicationsprotocol,theprotocolcouldbereferencedintheserviceagreement.Thisprotocolshouldalsobeaddedasascheduletotheserviceagreementtounderlinetheimportanceofongoingcommunicationbetweenthepartiesandthecommitmenttojointproblemsolve.

2.4 Bylaw compatibilityDefinition of bylaw compatibilityWhenenteringintoaserviceagreement,thebylawsofthemunicipalityandtheFirstNationwillworktogethertoachievetheirmutualgoalsandprioritiesassetoutintheserviceagreement.Bylawcompatibilitydoesnotmeanthatallthebylawsmustbethesame,butratherthatbothpartieshaveconsideredhowwelltheirlawsfittogether.

Inawell-preparedserviceagreement,bylawsrelatingtoserviceswillbereferenced.Inaddition,partieswillhavestatedamutuallyagreeablesolutiontoresolveanydifferencesinthebylawsandregulationsthatmayaffectservicedelivery.


UNIT 3

Compatible bylaws in service agreementsTheamountofefforttoensurecompatiblebylawswillvaryaccordingtocircumstance.Eachpartywillneedtoidentifypertinentexistingbylawsanddetermineanysimilaritiesanddifferences.

Areaswherebylawcompatibilityshouldbeexaminedincludebutarenotlimitedtothefollowing:

• Publicservices:connectiontowaterandwastewaterdesignspecifications

• Buildingandsafetystandards:firesafetypermitsandinspections

• Animalcontrol:animalcontrolbylawsandanimallicensingrequirements

Whennegotiatingserviceagreements,partieswillcometoamutuallybeneficialsolutionbyworkingcollaboratively.Oftentimes,thebylawsoftheserviceproviderareadoptedormirroredintheservicereceiver’scommunity.Thisoccurswhentheserviceproviderhasbeenoperatingservicesundertheseregulationsbeforenegotia-tionsandoftenhaswell-establishedsystemsforenforcingthesecodes.Forexample,inwaterservicesagreements,itisofteneasierfortheservicereceivertoadoptsimilardesignspecifi-cationsforinfrastructureastheserviceproviderinthecaseofnopre-existinginfrastructure.InCIPP’sserviceagreementtemplates,bylawcompatibilityisachievedbytheservicereceiveragreeingcontractuallytoadoptorfollowtheserviceprovider’sbylaws.Itisfurtherstipulatedthattheservicereceiverwillnotbeliablefromanylossordamagesinthecaseofnon-compliance.

Bylaw enforcement: jurisdictional challengesServiceagreementsareagreementsbetweentwodistinctgovernmentsandjurisdictions.Withthisinmind,anumberofchallengesrelatingtotherealitiesoftryingtoenforcebylawcompliancemustbeovercome.Please

notethatifyourcommunityisconcernedaboutbylawcompatibilityortheenforcementofby-laws,youshouldconsultalawyer.Thefollowingsectionisonlymeanttohighlightchallengesandoptions,andisnotintendedtobelegaladvice.

Serviceagreementsgenerallyhavetwowaysofincludingbylawsandbylawenforcement:

Option 1: includingaprovisionintheserviceagreementthattheservicereceiveragreestocomplywiththeserviceprovider’sbylaws(andenforcecomplianceofthesamebytheindividualsreceivingtheservices);or

Option 2: theFirstNationwouldadoptitsownbylawswithequivalentprovisionstothemunicipalbylawsandenforcethosebylaws.

What results from non-compliance with a bylaw?

Under Option 1,ifaservicereceiverfailedtocomplywithorenforcecompliancewithbylaws,theserviceprovidercouldchargeforbreachofcontract.However,theserviceproviderwouldstillnothavetheregulatoryjurisdictiontodirectlyenforceitsbylaws.

Communitiesreceivingservicescouldalsocontractuallyattorntotheserviceprovider’sjurisdiction,whichmeansthattheserviceprovidercouldenforcebylawsagainsttheservicereceiver.

Toaddressthisissueareleaseofliability(indemnity)infavouroftheserviceproviderforanylossresultingfromnon-compliancewouldbeaddressedintheserviceagreement.Ifdesired,communitiescouldalsonegotiatetoincludeaprovisionthattheserviceprovidercouldseekinjunctivereliefthatwouldrequirecompliancewiththelocalbylaws.1

1 Injunctivereliefisacourtorderthatrequiresapartytodoorrefrainfromdoingcertainacts.Failuretocomplywithaninjunctioncouldresultincriminalorcivilpenaltiesortherequirementtopaydamagesoracceptothercourtorderedsanctions.


UNIT 3With option 2,theadoptionbyaFirstNationofbylawsthatareequivalenttothoseofitspartnermunicipalitycanbeatime-consumingprocessasministerialapprovalisrequiredforFirstNationstoadoptnewbylawsundertheIndian Act.Itisalsonotclearwhetheracon-tractualobligation(aprovisionintheserviceagreement)onthepartoftheFirstNationtoenforceitsownbylawswouldbeenforceableincourt.SincetheFirstNationenactedthebylawwithinitsdiscretionarypower,thereisnoobligationtoenforceitunlessthebylawitselfcreatesastatutorydutytoenforceitsprovisions.

InthissituationaFirstNation’sfailuretoenforcethebylawsmayonlybeconsideredabreachofcontractresultinginthemunicipal-ityreceivingmonetarydamagesforanylosssuffered.Itisimportantthatagreementswithaprovisionfortheservicereceivertoadoptby-lawsincludeaclauseabouttheresponsibilitytoenforcethebylaws.Theyshouldalsowaiveliabilityfromtheserviceproviderinthecaseofnon-compliance.Ifdesired,serviceagree-mentscouldalsoincludeaprovisionforthepaymentofmonetarypenaltiesintheeventthatbylawsarenotenforced.

Communitiesthatbelievethatabreachinbylawenforcementwouldharmhealthandsafetycouldstipulatethatthiswouldcausetheservicestobesuspendeduntiltheneces-sarybylawswereenforced.

Ofcourse,thebestwaytoavoiddealingwiththesejurisdictionalchallengesistohaveopenandfrankdiscussionsaboutthereasonsthebylawrequirementsareneededtodeliverservices.Italsohelpstomaintaincommu-nicationthroughouttheagreementsothatproblemscanberesolvedwithoutlegalactionorsuspensionofservices.Formoreinforma-tiononrelationshipbuilding,pleaseseeUnit 2: Guide to Relationship Building.

Additional methods of developing and maintaining compatible bylawsInadditiontosolvingpreliminarybylawcompatibilityissues,communitiesmaywanttostipulateongoingcommunicationrelatingtobylawchangesandnewbylawdevelopmenttopreventconflictandkeepcommunitiesen-gagedineachother’sissues.Forthisreason,serviceagreementsoftenestablishsomesortofbylawcooperationornotificationprocessbetweentheparties,(e.g.,ajointbylawcom-mittee,aplanningdistrictcommission,oranotificationprocess).Formoreaboutbylawsandnotification,pleaseseetheserviceagree-menttemplatesprovidedinUnit 3, Chapter 7: Tools: Service agreement templates andonthe service agreement templates CD.

DifferentoptionsandmethodsareavailablefordevelopingcompatiblebylawsbetweenFirstNationsandmunicipalitiesincludingajointbylawcommittee,aplanningdistrictcommission,andanotificationprocess.

Joint bylaw committeeAjointbylawcommitteeisagroupofrepre-sentativesfromthebandcouncil,themu-nicipalcouncilandanindependent,mutuallyselectedindividual.

Dutieswouldincludethefollowing:

• Recommendareaswherecompatiblebylawsareneeded

• Reviewexistingbylaws• Developideasonthecontentof

compatiblebylaws• Reviewproposedbylawsandidentify

conflicts

Inthecasewhereneitherpartywishestochangeanyexistingorproposedbylaws,themattercouldbedealtwiththroughadisputeresolutionprocess.


UNIT 3

Planning district commissionDutiesoftheplanningdistrictcommissionwouldbesimilartothejointbylawcommittee.AboardorplanningdistrictcommissioncanbeestablishedbringingmembersfromthemunicipalityandFirstNationtogethertoout-linecommonsocialandeconomicinterestsandvaluesandcommoncommunityplanningconcerns.Thepartiescanadopttheapproachofdistrictplanningcommissionsbyformalizinganagreement—eitherintheserviceagree-mentorseparately—toestablishaplanningcommission.Thiscommissionmayaddressissuessuchaslanduseanddevelopment,environmentalconcerns,infrastructureplan-ning,oreconomicdevelopment.Iftheplanningcommissionisenactedoutsidetheserviceagreement,bothcommunitieswillneedtoenactbylawstoaccepttheplan.

Notification processThenotificationprocessismuchlessinvolvedthanthetwopreviousoptions.Thisprocessmaybeabetterfitforruralorsmallcommuni-tieswhereisitdifficulttomeetregularlyorfindtheextrastaffrequiredtorunsuchprocesses.Generally,anotificationprocessentailssendingacopyofaproposedbylawtotheotherpartytoreceivecommentsbeforethebylawisadopted.Iftheotherpartyidentifiesconflictsintheproposedbylaw,bothpartiescouldhaveadiscussionaboutapossibleresolution.Ifaresolutioncannotbereached,thepartiescouldenterintoadispute-resolutionprocess.


UNIT 3

3. Guidelines for pricing options in a service agreement

3.1 Principles for establishing cost sharing and pricingInits2010report,“CostSharingWorks:AnExaminationofCooperativeInter-MunicipalFinancing,”theAlbertaAssociationofMunici-palDistrictandCounties(AAMDC)identifiedbestpracticesincostsharingforservicesbetweengovernments.(Forthecompletereference,pleaseseeChapter 8: Service agreement and pricing references).Thisreporthighlightsthefollowingfourkeyprinciplesforpricingservices:

• Cost equity(includesfairness):Bothpar-tiesshouldagreeonafairandequitablepriceforservicesandcomplywiththeagreed-uponpaymentprotocol.

• Accountability and transparency:Bothpartiesandtheirresidentsshouldhaveac-cesstotheinformationaboutthecostsforservices.

• Cost effectiveness:Bothpartiesshouldagreethatthereisvaluefortheactualcostoftheserviceandthequalityofservicebeingprovided.

• Cost efficiency:Theserviceagreementmustmakesenseforbothpartieseconomi-callywithresourcesbeingmaximizedandbenefitingbothparties.

Withtheseprinciplesinmind,partiescanbegintoexaminetheactualcostsassociatedwiththeservicesandthevariouspricingmodelsthatmaybeused.

3.2 Pricing considerationsWater and WastewaterThetypeofpricingmodellargelydependsonthetypeofservicethatisbeingprovided.Forexample,whenwaterservicesarebeingprovidedconsiderationneedstobegiventothefollowingcosts:

• Operationsandmaintenance(O&M)• Upfrontcapital(e.g.,meters,mains,

waterplant,pumphouses)• Long-termcapitalcosts(e.g.,new

technology,pipes,servicebuildings)• Operatorcompensation(e.g.,salaries,

benefits)• Training• Overheadcosts(e.g.,humanresources,

finance,administrationcosts)• Rawwater• Watertreatment(e.g.,chemicals

andadditives)

Whenitcomestopricingforsharedservices,severalmodelscanbeconsideredforyourcommuni-tydependingonitspopulation,situation(ruralversusurban),geographyandlocalpolitics,aswellasonthetypeofservicerequiredandcapitalcostsfortheproject.Itisimportanttobetransparentandaccountableandhaveclearcommunicationwhennegotiatingpricingforservices,asthesefactorscanhelpavoiddisputesinthefutureandensureclarityforcompliance.


UNIT 3

• Regulatorychanges(e.g.,legislatedmodifi-cationstoexistinginfrastructurestandardsandbusinesspractices)

• Consumptionrates,residentialversusbusiness

• Planningcosts• Sourcewaterprotection• Localtaxsubsidizationofservices

TheGovernmentofNovaScotiahasdevelopedatoolthathelpsmunicipalitiesmanagetheirintegratedmunicipalinfrastructureassetsandsetprioritiesforcapitalinfrastructureinvest-ments.Thisasset-managementtoolcanprovidemunicipalitiesandFirstNationswithaclearerpictureofthecostsassociatedwithinfrastruc-

tureinvestments.Life-cycleplanningtoolsareavailableforwater,wastewater,watermains,reservoirs,solidwaste,transferstations,roads,andintegratedroads,sewerandwater.Thesetoolsareavailableatwww.nsinfrastructure.ca/pages/Asset-Management1.aspx.

Itisalsoimportanttoconsiderhowexistinginfrastructureorthelackthereofwillaffectthecostsandconsiderationsforaserviceagreement.Figure 1: Identifying needs and considerations for pricing water servicesdem-onstratesthedifferencesincostsdependingonexistinginfrastructureusingwaterprovisionasanexample:

Figure 1: Identifying needs and considerations for pricing water services

Source:CommunityInfrastructurePartnershipProgram(CIPP),January2011

ONE PARTY OWNED EXISTING INFRASTRUCTURE –

OTHER PARTY NO INFRASTRUCTURE

GOAL: ONE PARTY

OWNED TREATMENT FACILITY

GOAL:JOINT TREATMENT

FACILITY

COSTS• Planning• Shared capital• Operation• Maintenance

CONSIDERATIONS• Ownership of infrastructure• Cost sharing• Installation of meter• Employment equality• Time

NO

COSTS• Mains• Meters • Operation• Maintenance

CONSIDERATIONS • Installation of meter• Cost sharing water mains• Ownership of infrastructure

YES

COSTS• Operation• Maintenance• Renewal costs

CONSIDERATIONS • Division of maintenance responsibilities• Division of repair costs

COSTS• Operation• Maintenance• One-sided capital costs

CONSIDERATIONS • Installation of meter• Capacity of facility• Division of operation and maintenance

COSTS• Operation • Maintenance• One-sided capital costs (facility)• Mains• Meters

CONSIDERATIONS• Installation of meter• Cost sharing water mains• Ownership of infrastructure

SYSTEMSCONNECTED?

YES NO

EXISTING INFRASTRUCTURE?


UNIT 3Fire ProtectionFireprotectionfeesaretypicallyalumpsumdeterminedonaperhouseholdorbuildingbasisinadditiontoanyovertimechargesthatmaybeincurredduetolargefiresituationsrequiringextrastaffortheuseofstafffromanothercommunity.Someconsiderationsforcoststhatshouldbeincludedinthelumpsumamountareasfollows:

• Technologyandinformationsystems• Vehiclemaintenance• Stafftimeandovertimecharges• Firehallmaintenance• Firehydranttesting• Firehydrantmaintenance• Firestationmaintenanceandrepairs• Administrationandoperationalcosts

(e.g.,dispatchservices)• Fireinspectionservicesandbylaw

enforcement• Insurance

Solid WasteSolidwastefees,likefireprotection,areusuallyestablishedataperhouseholdbasisandchargedintheformofalumpsum.Somecoststhatmustbeaccountedforinthetotalservicefeeinclude,butarenotlimitedto,thefollowing:

• Transportationcosts• Staffsalaries• Equipmentmaintenanceandrepair• Equipmentreplacement• Landfillfees• Transferstationfees• Upgradesrequiredforregulatorychanges

(environmental)

Animal ControlAnimalcontrolpricingistypicallysetonapercapitabasisorasalumpsumamountwithadditionalchargestalliedattheendoftheyearforadditionalcostswhichcouldnothavebeenpredictedbyeitherpartytotheserviceagreement(e.g.,iftheanimalcontrolofficerappearsincourtoradditionalveterinarycharg-esareincurred).Ananimalcontrolagreementthatispricedaccordingtoactualcostsoftheservicewillconsiderthefollowing:

• Shelteroperationandmaintenancecosts• Animalcontrolofficer’stimeandbenefits• Animalcontrolofficerstrainingcosts• Animalcontrolofficer’svehicleoperation

costs• Animalcontrolofficer’sequipmentcosts

andmaintenance• Animallicensingcosts• Administrationcosts(e.g.,tohearcom-

plaints,dispatchanimalcontrolofficer)• Appropriatefeesforaverageveterinary

costsforcapturedorimpoundedanimals

Additionalfeesmaybechargedforthefollowing:

• Thecourtappearanceoftheanimalcontrolofficerforviolationsoftheanimalcontrolbylaw

• Overtimefeesaccruedbytheanimalcontrolofficerforemergenciesoutsideofregularofficehourswhichoccurontheservicereceiver’sland

• Additionalveterinarycostsaccruedfromanimalscapturedontheservicereceiver’sland


UNIT 3

3.3 Sample pricing models Thissectionofthetoolkitexplorespricingop-tionsthatyourcommunitycanconsiderwhenapproachingmethodsforpricingaserviceagreement.

Thesemodelsareforyourconsiderationasexamplesofeffectiveandtransparentpricingoptionsandarebynomeansadefinitivelistofpricingarrangements.Ultimately,aneffectivepricingmodelwillvaryineverycircumstanceandwilltakeintoconsiderationlocalcontexts,whichmayincludethefollowing:

• Population• Capacity• Existinginfrastructure• Serviceneeds• Localpolitics

Model 1: Population ratio pricing model

Thefollowingmodelusesawaterandwastewa-terserviceagreementasitsexample,althoughthepopulationratiomethodcanbeusedtodeterminepricingforsolidwasteandfirepro-tection.Alternatively,thisratiocanalsobeusedtocalculatethepricingforallfourservicesinacomprehensiveagreement.

CHARACTERISTICS:

• Theserviceprovidersuppliesalltheopera-tionsandmaintenance(O&M)—meaningthatthispricingmodelisaneffectivewayforservicerecipientswithsmallpopulationsandlowcapacitytopriceservices.

• Thispricingmodelisverytransparent—itensuresthatallcostsarewellunderstood.ItoffersanequitablesplitofO&Mcosts.

• Populationratiopricingassumesthattherequiredinfrastructureexists.

• Thismodelcanbemodifiedonanannualorbiennialbasistoreflectpopulationandexpenditurechanges.

MODEL:

AtotalcostoftheO&Mtoallexistinginfra-structurewillbecalculatedforthemunicipal-ityandtheFirstNation.ThetotalO&Mcostshouldincludethefollowingconsiderations:

Water • operators’salaries(full-timeandpart-time)• facilitiesincludingplants,reservoirsand

pumphouses• watermains(supplyanddistributionmains)• metersandvalves• chemicalandtreatmentcosts• rawwaterpumphouse• rawwatersupply• monitoringcosts

Wastewater• liftstations• mains,forcemains,gravitymains• lagoons(ifapplicable)• treatmentfacility• chemicalandfilteringcosts

TotalaverageyearlycostsfortheO&Mofthesefacilitiesandservicesshouldbetalliedintoatotalcost.Thetotalcostwillthenbepluggedintothefollowingformula:

Total O&M costs × (First Nations population ÷ municipal population)= Total First Nations proportionate contribution to annual servicing costs


UNIT 3Model 2: Metered rate — Individual fee-for-service model (two-part rate)

Thefollowingmodelcanbeusedtodeterminethepricingforawaterserviceagreement.Thismodelassumesthatthemunicipalityispro-vidingtheserviceasthepricingisbasedonmunicipalmeteredwaterratesandtaxrates.

CHARACTERISTICS:

• TheO&Mwillbeprovidedbytherecipientandtheproviderofservices.TherecipientshallberesponsiblefortheO&Moninfra-structureontheirlandsandtheproviderwillensurethatinfrastructureinitsjuris-dictionisingoodworkingorder,includingthetreatmentfacility.

• Thispricingmodelistransparent.Itensuresthattherealcostsofprovidingaservice,includingtheupkeepofthetreatmentfacilities,areconsidered.

• Thismodeldoesnotassumeanypre-exist-inginfrastructure.Itassumesthatthere-cipientwillcoverallcapitalcostswithinitsjurisdiction,whichmaycomeaboutasaresultoftheserviceagreement,regardlessofwhetherthecostwillincludetheinitialinstallationoftheinfrastructure(whichshouldconformtotheserviceprovider’sengineeringanddesignspecifications)ortheO&Mofpre-existingwatersystems.

• IftheFirstNationdoesnothavethecapacityorequipmenttomakerepairsorinstallinfrastructure,theseprocesseswouldbecontractedtoaprivatefirmorseparatelycontractedtothemunicipality.

• Aserviceagreementusingthispricingmodelwouldreflectwaterratechangesovertime,minimizingtheneedforrenegotiation.

• Thenumberofhouseholdswouldneedtobere-examinedeveryyeartoensurethattheratesareconsistentwithcommunitygrowth.

• Inthismodel,communitiesshouldsharetheircommunitydevelopmentplansand

growthestimatestoensurethatthereisenoughcapacitytoprovideforlong-termcommunitygrowth.

MODEL:

TheserviceproviderwillinstallameteratthepointofconnectionbetweenthemunicipalsystemsandtheFirstNation’ssystems.Thismeterwillbereadmonthly(orhoweveroftenisagreedupon)toestablishtheoverallwaterconsumptionoftheservicereceiver.Theser-vicereceiverwillthenbechargedaccordingtothecurrentwaterrate.Thisratemaychangefromtimetotimeasreflectedbysystemupgradesandincreaseddemandsonthesystemduetoregulationchanges.Ineffect,theservicereceiverwillpaythemeteredrateequaltowhataresidentoftheserviceproviderwouldpay.Inaddition,themunicipalitywouldchargethebandanadditionalfeeforservicerateperhousehold.Thisfeewouldbeaser-vicechargeequaltotheindirectcontributionsthateachmunicipalhouseholdmakestowatertreatmentfacilityO&Mthroughmunicipaltaxes.However,becausethetwogovernmentscannottaxoneanother,thefeeensuresthatthecontributionstothewatersystemsareinfactequalbetweenFirstNationsandmunicipalresidents.

Thefee-for-serviceratewillvaryacrossthecountry.Themunicipalityshouldestablishthisfeebasedonastudyoftaxrevenuebreakdownandexpenditures.Thefeeshouldthenbene-gotiatedandagreeduponinjointdiscussionswiththeFirstNation.Inthisarrangement,theservicereceiverwouldberesponsibleformain-tainingthesystemsonitslands.Therefore,itisimportanttokeepinmindthatthisfeeshouldreflectonlythecostofmaintainingandoperatingthewatertreatmentplantandnotcoverthecostoflargescalerepairselsewhere.Althoughanexactcalculationisdifficulttoestablish,themeteredratepricingmodelisaworkableandtransparentmethodforsettingthepaymentstructure.


UNIT 3

Model 3: Annual operations and maintenance contributions — Metered rate model

Thefollowingmodelcanbeusedtodeterminethepricingforawaterserviceagreement.Thismodelassumesthatthemunicipalityisprovid-ingtheserviceasthispricingmodelisbasedonmunicipalwaterrates.

CHARACTERISTICS:

• TheserviceproviderprovidestheO&M.• Thismodeldoesnotassumeanypre-

existinginfrastructure—itassumesthattherecipientwillpaytheup-frontcapitalcoststohavethewatersystemsinstalledonitslandstothespecificationsoftheserviceprovider.

• Annualcontributionswillbedeterminedandpaidasalumpsumtotheserviceprovider.TheywillreflecttheestimatedcostsofO&MbasedonthenumberofwatersystemsandaproportionatecontributiontotheO&Mofthetreatmentfacilities.

• Recipientsofserviceswillbechargedthemunicipalmeteredratebasedonameterthatwillbeinstalledatthepointofconnectionbetweentheproviderandtherecipientlands.

• Thismodelrequiresrenegotiationoftheannualcapitalcontributionseveryfewyears—thisrequirementmustbespecifiedintheserviceagreement.

• Asbestpractice,werecommendedthatcommunitiesusingthismodelsharetheircommunitydevelopmentplansandgrowthestimatestoensurethatthereisenoughcapacitytoprovideforlong-termcommunitygrowth.

MODEL:

Assumingthatthemunicipalityistheproviderofservices,themunicipalitywouldchargethebandtwodistinctfees.

ThefirstfeeistheannualcontributiontotheO&Mofthewatersystems.ItcomprisesaservicechargeoftheestimatedcostsofmaintenanceontheFirstNation’slandsandaproportionatecontributiontotheO&Mofthetreatmentfacilitieslocatedonmunicipallands.

Thesecondfeeisfortheactualmeteredamountofwaterused.Inadditiontothelumpsumpaymentabove,themunicipalitywillinstallameteratthepointofconnec-tionbetweenthemunicipalsystemsandtheFirstNation’ssystems.Thismeterwillbereadmonthly(orhoweveroftenisagreedupon)toestablishtheoverallwaterconsumptionoftheFirstNation.TheFirstNationwillbechargedthecurrentmunicipalrate,whichmaychangefromtime-to-timeasreflectedbysystemupgradesandincreaseddemandsuponthesystemduetoregulationchanges.Ineffect,theFirstNationwillpaythemeteredrateequaltowhatamunicipalresidentwouldpayfortheirwaterconsumption.

Thismodelisidealforservicereceiversthathavelimitedcapacitytoperformongoingmaintenancetothewatersystems.


UNIT 3Model 4: Tax-equivalency pricing model

Itcanbedifficulttoseparateoutthecostsofindividualmunicipalservices.Thus,forcomprehensiveserviceagreementswheremunicipalitiesareprovidingtheservices,feesequivalenttomunicipalservicetaxescanbeestablishedforFirstNationswhoarereceivingsuchservices.Notonlyistaxequivalencyeasi-ertoestablish,oftentimestaxequivalentsendupbeinglesscostlythanchargingindividualfullcostforeachservice.2

CHARACTERISTICS:

• usedforcomprehensiveserviceagree-ments(e.g.,fire,solidwaste,recreation)

• populationanduser-based• equalityinpricingbetweenFirstNation

andmunicipalresidents• servicesareprovidedbythemunicipality• flexibilityfromyeartoyearpreventstimely

renegotiationofannualrates

Dependingonhowthemunicipalityhassetupitstaxstructures,waterpricingcanbechargedinadditiontothetaxequivalentasmanymunicipalitieschargetheirresidentswithuserfeesormeteredrates.

MODEL:

Assumingthatthemunicipalityistheserviceprovider,thetax-equivalencypricingmodeltreatsFirstNationslandsasiftheywerepartofthemunicipality.ThustheFirstNationsarechargedthetaxequivalentforarangeoflocalservices.Servicesthatarenotprovided,suchasmunicipalplanningandzoning,mustbesubtractedfromthetotalcharge.AFirstNationcanbecreditedforservicesthatitprovidestomunicipalresidentsiftheFirstNationprovidesaservicethatisavailabletomunicipalresidents(e.g.,arecreationcentre).Ifwaterisnotincludedinthemunicipaltaxes,thefeestructureprovidedinsamplemodels1–3couldbeusedinadditiontotaxequivalency.

What are offset costs?Whenconsideringatax-equivalencypricingmodelforacomprehensiveagreement,theservicereceiverisusuallyprovidingservicestotheserviceprovider’slandandresidentsaswell(e.g.,arecreationcomplex,library,etc.).Offsetcostsrecognizethiscontributionandreduceservicingcostsbytheestimatedvalueoftheassortedservicesthattheservicereceivermayprovidetotheserviceprovider’scommunity.

2 Bish,RobertandTyroneDuerr.First Nation/Local Government Service Contracting.FirstNationsTaxAdministratorsInstitute,UniversityofVictoria(1997),p.12.


4. Service agreement renegotiation: Updating an expired or out-of- date agreement

4.1 Evaluating your past relationship and service agreement Beforeenteringintoarenegotiation,itisimportantforbothpartnerstostepbackandevaluateboththequalityofthepastserviceagreement(s)andthequalityofthepartner-ship.Byidentifyingchallengesandlessonslearnedinthepast,bothpartiescancometothetablepreparedtomakethenecessarychangestoaddresstheseissuesorconcerns.Theprocessofevaluatingapartnershiporserviceagreementcantakeavarietyofforms,butgenerallyshouldconsiderthefollowingquestions:

General:• Arethereanythingsthatwecanchangeto

makethispartnership/serviceagreementfunctionmoreeffectively?

• Didourserviceagreementaccomplishthetasksitsetouttodo?

• Whichareasofthispartnershipdidnotmeetmyexpectations?

• Weremyexpectationsrealisticandachievable?

• Whatchallengesareoutofmycontrol?(legislation,funding,etc.)

• WhatarethetopfivelessonsIcantakeawayfromthisexperience?

Financial: • Didthepricingcalculationsforservicesin

thepreviousagreementmeetourneedsandexpectations?

• Didsomeaspectsoftheserviceagreementcauseanunexpectedfinancialburden?Ifso,willneedtoberesolvedinthenextagreement?

• Wastheserviceagreementagoodreturnoninvestment?

• HowcanIensurethatanyfinancialissuesareresolvedinfutureagreements?

Communication and Organization: • HowamIcommunicatingwithmypartner?

ArethereanychangesIcanmaketoen-suremoreeffectivecommunicationinthefuture?

• Howismypartnercommunicatingwithme?ArethereanyspecificrequeststhatIcanmaketoensurethatmyneedsarebe-ingmetmoreeffectively?

• Aretheremoreopportunitiesforsharinginformationandbestpractices?

• Werethereanyaspectstotheagreementimplementationthatseemedunorganized?Whatchangescanbemadetoensuremoreeffectiveimplementation?

Renegotiationofferstheopportunitytoimprovepartnershipsandservicedeliverybyaprocessofrefiningexistingpractices,identifyinglessonslearnedandworkingcollaborativelytodevelopanewserviceagreement.Manycommunitieshaveexpresseddifficultyinclearlyidentifyingthegapsinexpiredserviceagreementsandmakingchangesformoreeffectivepartnerships.Thefollowingchapterprovideseasy-to-usechecklistsandchartstohelpbothFirstNationsandmunicipalitiesaddressexpiredagreementsandensureserviceagreementscontinuetobenefitbothcommunities.

UNIT 3


UNIT 34.2 Principles of renegotiationWhilemanysimilaritiesexistbetweennegotia-tionandrenegotiationofserviceagreements,itisimportanttokeepsomeadditionalprin-ciplesinmindthatcanhelpkeepnegotiationsontrack.

Arrive preparedBeforemeetingwithyourpartnercommunity,ensurethatyouhaveproperlyevaluatedyourpastrelationshipandserviceagreements.Itisimportanttocometothetablewithclearexpectationsforfutureagreementsandsug-gestionsforchangesthatwouldmaketheexistingserviceagreementmorerobust.Foradditionalresourcestohelpprepareforserviceagreementrenegotiation,pleaseseeUnit 3, Chapter 4.4: Filling in the gaps: Service agreement renegotiation tool.

Recognize your achievementsRecognitionofachievementsisanimportantstepthatcanhelpsetthetoneforrenego-tiatingexistingagreements.Itishelpfultoframewhytheagreementisimportantandshedpositivelightonthebenefitsofworkingtogetherandhavingahealthycommunity.Partiesmightfindbrainstormingalistofachievementsandpositiveaspectsaboutpreviousserviceagreementsausefultoolwhennegotiatingfuturecollaboration.

Be prepared to make changesRecognizethatifyouhaveissuesyouwouldliketoaddressinthenewserviceagreementandrelationship,youmustbepreparedtohearaboutissuesyourpartnerhasfaced.Bothpartiesmustbeflexibletoeachother’sneeds.Bykeepinganopenmindtotheotherparties’perspectiveonchallengestheyexperiencedandtryingtoaddressallissuesopenlyandhonestly,thenewserviceagreementwillbetterserveeveryone’sobjectives—makingforbet-terpartnershipsinthelongrun.

Establish goals and purpose before you meetRenegotiatingaserviceagreementcanseemlikeanoverwhelmingtask.Toensureyouaremanagingyourtimeeffectivelyitcanbeuse-fultobreakdowntherenegotiationprocessintoseveralsmallermeetingswherespecificaspectsofthepreviousrelationshipandagree-mentarediscussed.Forexample,onemeetingcouldbededicatedtoidentifyingpositiveaspectsofpastcollaboration,identifyingotherserviceswherecollaborationispossibleandevaluatingchallengeswiththepastrelation-shipandserviceagreement.Thefollowingmeetingcouldbededicatedtoaddressingle-galgapsintheexpiredserviceagreement.Thechangescouldbesummarizedanddraftedatalatermeeting.

4.3 Challenges of RenegotiationAlthoughrenegotiationcanbeeasierthantheinitialnegotiationprocessascommunitiesarenotstartingfromscratch,thereareafewcommonchallenges.Bypreparingforthesepotentialissues,oftentheycanbeavoided.

Potential disputesIfserviceagreementshavebeenexpiredforlongperiodsoftime,communitiesmaybehesitanttoopenuptheseagreementstorenegotiationduetofearsofpotentialdis-putes.Disputescouldarisefromalackofunderstandingfrombothparties,lackofclarityintheexistingagreementorlackofpoliticalwill.Potentialdisputescanbeminimizedbykeepinganopenmindtodifferingperspectivesandkeepingthecommongoalofenhancingservicesandregionalhealthattheforefront.


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TimeRenegotiation,likenegotiationcanbetime-consuming.Thisisparticularlytroublesomeforsmallcommunitieswithlimitedcapacityandstafftime.Ultimately,aserviceagreementre-negotiationwilltakedifferingamountsoftimedependingonthesituation.Ifcommunitiesmeetinfrequentlyandaserviceagreementhasbeenexpiredforseveralyears,thisprocesswilltakemuchlongerthananexpiredagreementbetweencommunitiesthatregularlymeetandrenegotiatetheiragreements.Regardless,communitiescantakestepstoensurethattherenegotiationisasmoothprocess,includingproperlypreparingbeforemeetingsandsettingrealisticgoalsandobjectivesforeachmeetingtoensureyouremainontrack.

4.4 Filling in the gaps: Service agreement renegotiation toolThefollowingtableisausefultoolforcommu-nitieslookingtorenegotiateorupdateexistingserviceagreementswheresignificantgapsarepresent.Tousethistable,compareeachprovi-sionlistedinthelefthandcolumnwithyourexistingserviceagreement.ThistableshouldbeusedinconjunctionwithUnit 3, Chapter 2.2: Service agreement provisionsforadetaileddefinitionofeachprovisionanditsroleinaserviceagreement.Thistoolwillallowyoutoquicklyandeasilyidentifyweaknessesintheexistingserviceagreementsavingtimeandin-creasingcapacity.Foracollaborativeapproach,itisrecommendedthatcommunitiesarrangeajointmeetingwhereTable 1: Service agreement renegotiation tool canbecompletedtogether.Thisapproachwillacceleratetherenegotiationprocessandensureeveryoneisonthesamepage.


Table 1: Service agreement renegotiation tool

Provision Essential Elements Appears in old agreement? (yes/no)

Notes

Effective date -Clearlystateddatethatbothpartiesagreetoasthedatetheagreementbecomeslegallybinding

Parties to the agreement -Thepartiesinvolvedintheagreementareoutlinedinthefirstpageoftheagreement

Authority to enter into agreement

-Astatementorevidenceofapprovalfromthebandandmunicipalcounciltoenterintoaserviceagreement

-Resolutionsorbylawsareattachedasascheduletotheagreement

Preamble -Setsoutthepurposeoftheagreementingeneralterms

-Recognizesbothparties’willingnesstoenterintotheagreement

Definition of terms -Allshortformsorvagueexpressionsaredefinedinplainlanguage.Thiscouldincludereserve, services, agreement,etc.

-Definitionsmayreferenceascheduleformoreinformation(e.g.,amapofreserve/municipalboundaries)

-Definitionsshouldappearatthebeginningofanagreementforclarityandorganizationpurposes

Term of agreement -Definesthenumberofyearsthecurrentagreementisvalid

-Setsoutproceduresforearlytermination

Renewal of agreement -Thenumberofmonthsprevioustotheendofthetermnoticeofrenewalisrequiredfromeitherparty

-Thenumberofmonthsprevioustotheendofthetermthatrenegotiationshouldcommence

-Overholdingstatus(monthtomonth)ifrenegotiationisnotcompletedintime

Applicable law -Optional:restatementofgeneralapplicationofprovinciallaws,except,inthecaseofFirstNations,wheretheIndian Actcontradictsthoselaws

Constitutional and legislative changes

-Theeffectlegislativechangesattheprovincialorfederallevelwillhaveontheagreement(e.g.,wastewaterregulationchanges)

Consent by interested party -Neededonlywhenaprivatecontractorwillbeused(e.g.,construction,wasteremoval)

-Notesthatanyagreementswiththecontractorwillnotaffecttheagreement

Description of services -Listofspecificservicesthatwillbeprovidedundertheagreement

Level of services -AstatementthatqualityofservicewillbeequalbetweentheFirstNationandmunicipality

-Couldalsostipulatethatlevelofservicemayfluctuatefromtimetotime

Charges for services -Fairfeesforaservice,actualcostofprovidingtheservicewillbecharged

-Laysoutpricingcalculationsinatransparentmanner—forexample,pricingwasbasedonaveragemonthlyconsumptionofwaterornumberoftimespermonthwasteiscollected

-Includescapital,O&Mandrenewalofinfrastructure,ifapplicable

-Fullpricingcalculationsshouldbeattachedtotheagreementasaschedule

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Provision Essential Elements Appears in old agreement? (yes/no)

Notes

User fees or additional charges

-Additionalchargesthatmayoccursuchasaone-timecapitalcontributionoradditionalfeesperhousehold

Bill payment -Howoftenchargesmustbepaid(annually,monthly,quarterly,etc.)

-Howthepaymentwillbedelivered-Howlatefeeswillbecalculated

Payment penalties and termination for breach of agreement

-Maystipulatealetterofcreditwillbeheldbytheserviceproviderinthecaseofnon-payment

-Howlongnon-paymentwillbeacceptedbeforetheagreementisconsideredterminated

Construction of infrastructure

-Establisheswhoisresponsiblefortheconstructionandcostsoftheinfrastructure

-Constructionstandardsorbylawsthatmustbemetshouldbereferenced

Ownership of infrastructure -Ifinfrastructurewasconstructed,whoownswhichportionsoftheinfrastructure

-Schedulesofmapscouldbeaddedtoclarify

Repair -Outlinestheboundariesofrepairresponsibilitiesortheextenttowhichpartiesareresponsibleforrepairsontheirlands

-Costsforrepairshouldbereflectedinthe“chargesforservices”section

Access and rights-of-way -Outlinestowhatextenttheserviceprovidermayaccesstheservicereceiver’sland(e.g.,inthecaseoffireinspection)

Liability -Astatementremovingliabilityforfluctuationsinservicelevelsandqualityfromtheserviceprovider

Notice -Addresseswherecommunicationabouttheagreementshouldbesent

-Thepositionordepartmentthenoticeshouldbedirectedto

-Faxnumbersandtelephonenumbersshouldalsobeprovided

Entire agreement -Astatementindicatingtheagreementistobeinter-pretedasawhole,notinsections

Headings -Astatementindicatingthattheheadingsusedintheagreementsimplyhelporganizetheagreement,ratherthanhelpinginterprettheagreement

Amendment -Outlinestheprocedureforamendingtheagreementbeforetheendofterm

Assignment -Whethertheagreementcanbeassignedtonewparties,suchasinthecaseofamalgamation

Enurement -Astatementensuringtheagreementisbindingonsuccessivegovernmentsuntiltheendoftheagreementterm

Severance -Theprocedureandeffectofremovingasingleclausefromtheagreementwhenitisdeemednolongervalid

Waiver of breach -Astatementindicatingthatsilenceorlackofactionshouldnotbeinterpretedasanunwilling-nesstocontinuetheagreementorbreachoftheagreement

Conflict and dispute resolution

-Optionalclauseoutliningpreferreddisputeresolutionprocedure(s)tobeusedifnecessary


5.1 Water regulationsFirstNationsandmunicipalitieswaterisregulatedbydifferentlevelsofgovernmentandbydifferentprotocolsandlegislation.

AsoutlinedinUnit 2, Chapter 2: Municipal and First Nation governance structures,municipalitiesoperateunderprovinciallyman-datedlegislationthatincludestheprovisionofpotablewater.3NunavutandtheNorth-westTerritoriesfallunderthemandateoftheDepartmentofAboriginalAffairsandNorthernDevelopment(AANDC).

Thepreciseregulationssurroundingwaterqualityandtreatmentvaryfromprovincetoprovince(e.g.,chlorination,fluorideandturbidity).However,allprovincesmeetthebasicrequirementsasstipulatedbyHealthCanadaGuidelinesforCanadianDrinkingWaterQualityandupdatedbytheFederal-Pro-vincial-TerritorialCommittee.TheGuidelinesforCanadianDrinkingWaterQualitydealwithmicrobiological,chemicalandradiologicalcontaminantsaswellasphysicalcharacteris-ticssuchastasteandodour.TheGuidelines

areneitherbindingnorenforceable,butratheractasstandardsandobjectives.

FirstNationstypicallyfollowtheProtocol for Centralized Drinking Water Systems in First Nations Communitiesforpotablewatersupply.TheProtocolcontainsstandardsfordesign,construction,operation,maintenanceandmonitoringofdrinkingwatersystemsinFirstNations.Generally,potablewaterprovisioninFirstNationscommunitiesisaresponsibilitysharedbyseveraldifferentgroups:FirstNations,circuitriders,tribalcouncils,AANDC,HealthCanadaandEnvironmentCanada.TheProtocolisintendedtohelpthesedepart-mentsprovideadviceorassistancetoFirstNationsinthedesign,construction,operation,maintenanceandmonitoringoftheirdrinkingwatersystems.TheProtocolisconsidereden-forceableforanywatersystemthatproduceswaterforhumanconsumption,isfundedinwholeorinpartbyAANDCandservesfiveormorehouseholdsorapublicfacility.FirstNationsmustalso,atminimum,meettheHealthCanadaGuidelinesandininstanceswherestandardsarenotmet,boilwater

FirstNationsandmunicipalitiesrepresentdifferentordersofgovernmentand,althoughmanyoftheirresponsibilitiestotheircommunitymembersaresimilar,theyoperateunderseparatelegisla-tionandwithdifferentjurisdiction.Theserealitiescancomplicatecooperationonlocalservicesbut,ifdealtwithinatransparentmanner,donotlimitcommunities’abilitytoenterintoserviceagreements.ThissectionismeanttohighlightafewkeyregulatorychallengesthatbothFirstNationsandmunicipalitiesshouldconsiderbeforeenteringintoaserviceagreement.

3 Formoreinformationonprovincialandterritorialwaterlegislation,pleasevisitEnvironmentCanada’sWaterGovernanceandLegislationwebpage:http://www.ec.gc.ca/eau-water/default.asp?lang=En&n=24C5BD18-1

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5. Regulatory challenges


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advisoriesarerecommendedtotheChiefandcouncilofthatFirstNation.4

ItisimportanttonotethattheProtocolstipu-latescommunitiesaretoactinaccordancewiththeprovisionsintheProtocolexceptinthecaseofmorestringentprovinciallegislationorpartthereof(e.g.,ifturbidityrequirementsaremorestringentinOntariothanstipulatedintheProtocol,OntarioFirstNationsaretoadopttheturbidityrequirementsofOntario).Inthecasewhereacomponentofprovincialstandardsisadopted,therestoftheProtocolstillappliestotheFirstNation;itisnotpossibleforaFirstNationtooptoutoftheProtocol.5

AlthoughFirstNationsandmunicipalitiesfollowdifferentwaterregulations(legislationversusprotocol)andenforcingbodiesordepart-ments,bothmunicipalitiesandFirstNationsmustbothcomplywiththeFisheries ActandtheCanadian Environmental Protection Act eitherdirectlyorthroughtheprovinces.

5.2 Wastewater regulationsEnvironmentCanadareleasednewproposedwastewatertreatmentregulationsformunici-pal,community,federalandotherwastewatersystems,includingproposingstandardsfornationalwastewatereffluentquality.Theregulations,scheduledtotakeeffectbeforetheendof2011,willsetnationalstandardsformorethan3,500wastewatertreatmentsystems.Theproposedregulationswillphaseoutthedumpingofuntreatedandundertreatedsewageintoourwaterwaysandprovideclarityforrulesonreportingformorethan3,700Canadianfacilities.6

Underthesenewregulations,bothmunici-palitiesandFirstNationswouldbeheldtothesamestandardofwastewatertreatment,enforceablethroughthefederalorprovincialgovernmentundertheFisheries Act.

Currently,wastewaterregulationsareimplementedsimilarlytowaterregulations:FirstNationsoperateunderprotocolsdevelopedbyHealthCanadaandAANDC,whilemunici-palitiesfollowprovinciallegislationwhilebothmustalsocomplywiththeFisheries Actandthe Canadian Environmental Protection Act.

5.3 Changes to regulationsInadditiontochallengespertainingtojurisdic-tionandtheinteractionoflegislation,changestoregulations(e.g.,newwastewaterregula-tions)cancausecostsforlocalservicestoincreasedrasticallyduetonecessarycapitalimprovementsand/orincreasedoperationcosts.

Inordertopreventchallengesrelatingtoregulatorychanges,itisrecommendedthatcommunitiesenteringintoserviceagreementsincludemechanismsforincreasingthepriceofservicesasaresultofregulatorychangesinordertoavoidunanticipatedfinancialburdens.Unit 3, Chapter 2.2: Service agreement provi-sions,highlightsanumberofwayscommuni-tiesmayconsiderincorporatingamechanismtodealwiththesechallengesincludingreviewofservicefeesonanannualbasisandautomati-callyshiftingfees(e.g.,meteredrates).Inthecasethataflatrateforwaterwasestablishedratherthanameteredrate,itwouldcertainlybeinthatcommunity’sinteresttoconsidera“costsescalatorclause”thatwillidentifya

4 Formoreinformationonboilwateradvisories,pleaseseetheHealthCanadaFirstNations,InuitandAboriginalhealthwebsite:http://hc-sc.gc.ca/fniah-spnia/promotion/public-publique/water-eau-eng.php#what_is

5 AcompleteversionoftheProtocol for Centralized Drinking Water Systems in First Nations Communitiescanbefoundat:http://www.ainc-inac.gc.ca/enr/wtr/dwp/dwp-eng.pdf

6 Formoreinformationontheproposedwaterregulations,pleaseseeEnvironmentCanada’swebsite:http://www.ec.gc.ca/eu-ww/default.asp?lang=En&n=BC799641-1


UNIT 3reviewperiodfortheestablishedservicefees,andadjustthefeesaccordingtoservicecostincreasesexperiencedbythecommunityprovidingtheservice.

TheCIPPserviceagreementtemplatesforanimalcontrol,solidwaste,fireprotection,transit,andcomprehensiveagreementsincludetheestablishmentofanannualfeethatisrevisedeachyeartomeetchangingdemandswithinafive-orten-yearterm.Inthecaseofwaterandwastewater,ideally,thesecostswouldshiftautomaticallyovertimeinac-cordancewithestablishedmeteredratesandlocaltaxsubsidizationfortheservice.


ServiceagreementsbetweenFirstNationsandmunicipalitieshavedevelopedacrossCanadaoverthepast30years.Awealthofknowledgecanbederivedfromlearningfromavarietyofcommuni-ties(urban,rural,remote,northern,etc.)andtheirvariousexperienceswithserviceagreementsandlessonslearned.ThepurposeofthefollowingchapteristoprovideFirstNationsandmunici-palitieswithcasestudiesthatproviderealisticandrelatablesituationsthatcanprovideguidanceandnewandinnovativeapproachestocollaborationonservices.

Muskeg Lake First Nation and the City of Saskatoon

Gitanmaax First Nation and the Town of Hazelton

Glooscap First Nation and the Town of Hantsport

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6. Service agreement case studies


Case Study6.1 Gitanmaax First Nation and the Town of Hazelton (BC)

Location: WestCentralBritishColumbianearthejunctionoftheSkeenaandBulkleyRivers

Population: VillageofHazelton:292GitanmaaxFirstNation:850

Cost-sharing projects: Watertreatmentplant,waste-watersystem,waterlinemaintenance,transit,andfireprotection

Additional Partners: AboriginalAffairsandNorthernDevelopmentCanada

Lessons learned:“Whenyoulookatthe‘bigpicture,’webothwantthesameforourpeople,butwehavedifferentwaysofdoingthingsbasedonourdifferentcultures,legislationandrequirements.”KellyMattson,Administrator,VillageofHazelton

Contacts: KellyMattsonAdministratorVillageofHazeltonadministrator@village.hazelton.bc.caTel.:250-842-5991

DianneShanossExecutiveDirectorGitanmaaxFirstNationTel.:250-842-5297

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Service agreements and cost-sharing projectsWater and sewerGitanmaaxFirstNationandtheVillageofHazeltonhavebeenworkingtogethersincethe1970sandarejointownersofthewaterandsewersystemsthatservebothcommuni-ties.Thewaterandwastewatersystemisdivided,withGitanmaaxFirstNationmanag-ingandowningtheoperationsofthewatertreatmentplantonthereserve,andtheVil-lageofHazeltonmanagingandowningtheoperationsofthesanitarysewertreatmentplantonmunicipalland.Theycurrentlyhaveaninformalwaterandseweragreementinplace.Thesecommunitiesalsocostshareonextraordinarymaintenancecostsandcapitalimprovementsandarecurrentlynegotiatinganagreementforawatertreatmentplantupgrade.

Fire ProtectionThetwocommunitiesalsoworktogetheronseveralothercommunityservices,includingajointlyrunvolunteerfiredepartment.Eachcommunityownsitsownfiretrucks,andtheybothsharefireprotectionservicesusing22trainedvolunteerfirefighters.Thede-partmentisoperatedbytwofireChiefswithoneChieffromeachjurisdiction.Thisallowsbothcommunitiestoofferopportunitiesfortheresidentstoworkinfireprotectionser-vicesandensuresbothcommunitiesfeelasenseofownershipinprovidingtheservice.

TransitGitanmaaxFirstNationandtheVillageofHazeltonalsoworkonjointprojectswiththeDistrictofNewHazeltonandotherFirstNationsintheHazeltonarea.Theyareparticipantsinamulti-partyagreementforregionaltransitservicesthatservethelocalFirstNations,municipalitiesandoutlyingareas.

RecreationThecommunitiesarealsoconsideringthepossibilityofjointlyfundingandoperatinganewarenathatwouldservetheregioninconjunctionwithseveralotherlocalgovern-mententitiesandanon-profitassociation.

Other shared servicesInadditiontovariousserviceagreementsandcost-sharinginitiatives,thetwocom-munitiesprovideservicestotheirresidents.Servicesincludealocalhospital,onehighschool,severalelementaryschools,retailstores,restaurantsandamuseum.Withnumerousconnectionsestablishedbetweenthetwocommunities,effectivecommunica-tionbetweencommunityadministrationsisnotonlyessential,itisalsocriticalforeffectiveserviceprovision.

ChallengesCommunicationTheadministrationsfromGitanmaaxFirstNationandtheVillageofHazeltonhaveajointmanagementcommitteethatmeetsonissuesastheyarise,althoughtheystrivetomeetatleastquarterlytomaintainopenlinesofcommunication.TheGitanmaaxFirstNationalsomeetsmonthlywiththreeotherGitksancommunitiestoshareinformation.Inaddition,eachcommunityholdsitsownmeetingstoplaneventsandshareinformation.AlthoughGitanmaaxFirstNationandtheVillageofHazeltonstrivetokeepintouchregularly,itcanbechallenginghavingthesamecouncilmembersattendallmeetings.

Long-termchallengesincludelearningtoworkthroughculturaldifferencesinpro-cessesandmanagementstylesandadaptingtochangesinpersonnel.Achangeinadmin-istrationcansometimeschangethefocusofprioritiesforacommunityanditmaytaketimetodevelopanewworkingrelationship.

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Historicalgrievanceshaveattimescausedstrainedcommunicationbetweenthetwoadministrations.Theycontinuetoseektoworkthroughtheirconcernsbyfocusingonachievingsimilargoals,debunkingassump-tions,clarifyingexpectationsandhavingaworkingrelationshipbasedonequalityandmutualrespect.Thesecommunitieshavefoundcommunicatingatalllevelsofleadershiptobeanimportantpartoffosteringeffectiveworkingrelationships.Anexampleofthisisinvitingtechnicaladvisors(e.g.,engineers)toattendandadviseatoperationalmeetings.

LegislationMunicipalitiesandFirstNationsaregov-ernedbydifferentlegislations,anditcanbeachallengetobalancethedifferentrequire-mentsforeachcommunity.Forexample,municipalitiesmustmeetfederalandpro-vincialwaterregulationsandFirstNationsfollowwaterguidelinesthroughAANDC.Thedifferentguidelinescanbeanobstaclewhentryingtoachieveconsensusonwaterissues.

Revenue/FundingGiventhatmunicipalitiesrelyontaxationrevenueasamainsourceofincomeandFirstNationsrelyonfundingfromAANDC,eachcommunitytriestokeepinminditsdifferentfiscalprocessesandfiscalrestraintswhencollaboratingonprojects.Municipali-tiesmayneedtoapplyforgrantsfromtheprovincialgovernmentforadditionalincometofundprojects,andFirstNationsmayhavealengthywaitforapprovalforadditionalincomefromAANDC.GitanmaaxFirstNa-tionandtheVillageofHazeltonstrivetobetransparentandpatientinworkingtogetheronprojectfunding.

ConclusionThecasestudyofGitanmaaxFirstNationandtheVillageofHazeltonprovidesagoodexampleofhowapositiveworkingrelation-shipbetweenaFirstNationandamunici-palitycanimprovetheirrespectivesmallcommunitiesbyprovidinginfrastructureneedsandcommunityservicesinacost-effectiveandmutuallybeneficialmanner.

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Case Study6.2 Muskeg Lake First Nation and the City of Saskatoon (SK)

Location: CentralSaskatchewannearthebanksoftheSouthSaskatchewanRiver

Population:MuskegLakeCreeNation:300–350onreserveCityofSaskatoon:224,300

Projects: AllhardandsoftservicesareprovidedbytheCityofSaskatoontoMuskegLakeCreeNationonafee-for-servicebasis.

Keys to Success: “BothMayorandChiefencouragetheirstafftocommunicatewitheachother.”TheresaDust,solicitor,CityofSaskatoon

“Besupportiveofoneanother.Learnabouteachother’scommunities.Haveagoodunderstandingofeachother.Becommittedtotheoverallpartnership.Becommittedtotheprocess.”ChiefCliffordTawpisin,MuskegLakeCreeNation

“Maintaintheleveloftrustandmakesureyoufollowthrough.Makesureyouunderstandoneanotherandunderstandtheby-laws.”ChiefCliffordTawpisin,MuskegLakeCreeNation

Contacts: TheresaDust,CitySolicitorCityofSaskatoon,SKTel.:306-975-3270Email:[email protected]

ChiefCliffordTawpisin,MuskegLakeCreeNation,SKTel.:306-466-4959Email:[email protected]

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Urban ReservesAnurbanreserveislandwithinacitythathasbeenpurchasedbyaFirstNationandgrantedreservestatusbyanOrder-in-CounciloftheFederalCabinet.LanddoesnotbecomeareservejustbecauseaFirstNationownsit.Reservestatusisobtainedbygoingthroughaprocessthatresultsinafederaldesignationofthelandasreserve.

UrbanreservesarethencreatedbyaFirstNationpurchasingaparceloflandontheopenmarketandthenproceedingthroughthereservecreationprocess.(TheresaDust,“CommonquestionsaboutUrbanDevelopmentCentresinSaskatchewan,”2006,page1.)


Saskatooniscentrallylocatedintheprov-inceofSaskatchewanonthebanksoftheSouthSaskatchewanRiver.TheSaskatoonareahasbeeninhabitedfor6,000yearsandwasfirstsettledbyEuropeansin1883.

ThefirsturbanreserveinCanadawascre-atedin1998inSaskatoonbyMuskegLakeFirstNation.ThisnewreservewasaresultoftheFederalAdditionstoReservePolicy.“Itwasuniquebecauseofaseriesofagree-mentsbetweenthecityandMuskegLakeregardingcompatiblelanduse,servicesandtaxlosscompensation,”saidTheresaDust,CityofSaskatoonsolicitor.

Service agreementsBeforesigningthefirstserviceagreementwiththeCityofSaskatoonin1988,theMuskegLakeurbanreservewasalarge,unservicedsite.Thefirstserviceagreementtooksometimetofinalizebecausebothpartieswereunfamiliarwiththeprocessandimplicationsofcreatingareservewithinthecity.Itwasalearningprocessforeveryone.However,boththeMayorofSaskatoonandChiefofMuskegLakeweredeterminedthatthecreationofanurbanreserveshouldma-terializeforeconomicdevelopmentreasons.

ThecreationoftheMuskegLakeurbanreserveandthesigningoftheserviceagree-mentcreatedeconomic,socialandculturalopportunitiesforbothcommunities.Italsoprovidedopportunitiesfornewbusinesses,whichmeanspotentialjobsforthegrowingnumberofFirstNationslivinginurbancentres.Thecitybenefitsfromtheeconomicspinoffsofthesenewjobsandresidentsbenefitfromtheservicesofferedbythenewbusinessesandamenitieslocatedonthelands.

Thelandusesontheurbanreserveareverybroad,butaspertheagreement,theydonotincludeheavyindustry.Everytimeanewbusinesscomestothereserveitisrequired

topayalevythatMuskegLakethenpassesontotheCityofSaskatoon.

In1993thecommunitiessignedanewagreement,theMunicipalServicesandLandUseCompatibilityagreement.Thecommuni-tiesfelttheprocesswasmuchsimplerwiththeneweragreement,giventhattheyhadatemplatetostartwithandtheyhadworkedthroughmanyoftheinitialchallengesin1988.Inthe1993agreement,aservicestationwasalsoturnedintourbanreserveland.Thelateragreementalsoincludedamechanismforbindingarbitration,whichisastandardclauseinagreementswiththeCityofSaskatoon.

MuskegLakewanteditsparceloflandtolooknodifferentthantherestoftheCityofSaskatoon,whichgreatlyfacilitatedtheagreementnegotiationprocess.Intermsofaccesstoservices,MuskegLakeresidentsreceivethesamebenefitsasanyotherSaskatoonresident;however,intermsofjurisdiction,theyarenot.TheCityofSaska-toonrecognizesMuskegLakeCreeNationasadistinctgovernment.

TheagreementsignedbetweenSaskatoonandMuskegLakewassimilartoanagree-mentthatwouldbesignedbetweenthecityanddevelopers.TheCityofSaskatoonagreedtobuildallthebasicinfrastructure(e.g.,sewers,roads)andMuskegLakeagreedtoprovideservicesonparwithwhatalreadyexistsinthecitythroughacompre-hensiveserviceagreement.

MuskegLakepaysafee-for-service(withtheexceptionforeducationservices)thatisequivalenttopropertytaxinSaskatoon.Inreturn,thecityprovidesallhardandsoftservicessuchaswater,wastewater,firepro-tection,streetsweeping,etc.MuskegLakereceivesanannualstatementoutliningtheservicesprovidedbytheCityofSaskatoon,muchlikeapropertytaxstatement.

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Duringthisprocess,MuskegLakeandtheCityofSaskatoonlearnedalotabouteachother,includinghowcitiesandFirstNationscandobusinessandaboutbylawcompatibility.MuskegLakeandcitystaffmakethemselvesavailabletosupporteachotherwheneverthereareanyquestionsorconcerns.

Economic developmentThereisnoformalagreementoneconomicdevelopment.However,theMayorandChiefweredeterminedthatthecreationofanurbanreservewouldhelprealizeeconomicdevelopmentopportunitiesforbothpartners.Inaddition,thecityandtheFirstNationregularlydiscussopportunitiesfortheareaandhowtheycanworktogethertoincreaseregionaleconomicdevelopment.

Thereisagreatdealoftrustandopencommunicationbetweenthetwocommuni-tiesaboutchangingneeds.Forexample,whenMuskegLakeraisedaconcernaboutneedingabridgebuilt,theCityofSaskatoonagreedtobuildthebridgewithasimplehandshake.ThecityalsofinancedthebridgeandarrangedayearlypaymentscheduleforMuskegLaketorepaythebridgecostsoveramanageableperiodoftime.

Relationship buildingEveryyearbeforeChristmas,theMayor,theChiefandtheiradministrationsholdaformalmeetingthatconsistsofaChristmaslunchandgifting.Inthepast,ameetingagendawasdeveloped;however,inrecentyearsthemeetingbeginswiththeMayorandChiefeachgivingspeechesoutlininganyissuesandplansintheirrespectivecommunitiesthatmayhaveanimpactontheirneighbour.Thecommunitieskeepincontactthroughouttheyear,throughphonecalls,letters,andemails.

TheMayorandChiefhaveanopendoorpolicyandknoweachotherwellenoughtopickupthephoneandspeakopenlywithoneanother.Thisopencommunicationhelpsavoidpotentialconflict.

Challenges

Land assessmentOneissuethathasariseninthepastisthevaluationofthelandbelongingtoMuskegLakeCreeNation.ThecommunitiesdecidedonamarketvalueassessmentsystembecauseMuskegLakewasconcernedthattheassessorhadvaluedtheirlandstoohigh,whichincreasedtheirfee-for-servicecharges.

Underothercircumstances,anappealcouldbemadetotheprovincialBoardofRevi-sions.MuskegLake,however,didnotwanttouseaprovincialauthorityformakingthistypeofdecision.ThecitysuggestedthatanArbitrationBoardbecreatedwiththesamemembershipastheBoardofRevisions.IntheendMuskegLakecommunicateditsconcernstotheassessorsandcametoanagreement.Therefore,theArbitrationBoardwasneverusedandtheissuewasresolved.

ConclusionManyoftheconcernsthatbothcommunitiesheldin1998aboutwhatcouldpotentiallyhappenwithanurbanreservehaveprovedtobeunfounded.Theprocessofnegotiationwassmootherthananticipated.

Forbothcommunities,theprocessofnego-tiatinganurbanreserveentailedaprocessofmutuallearningaboutoneanother.Eachcommunitywassupportiveoftheotherinthislearningprocessandcontinuedtoopenlydialoguewitheachothertoresolveoutstandingissues.

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MuskegLakeFirstNationandtheCityofSaskatoonhavebuiltamodelforurbanreservedevelopmentandservicingthatwillbebeneficialtoothercommunitieshopingtoenterintothesametypeofagreement.Thestrong,trustingrelationshipthatunderliestheagreementshasbeencriticalforthecon-tinuingopendialoguethatexistsbetweenthetwocommunities.

ReferencesCityofSaskatoonUrbanReserves,FrequentlyAskedQuestions:http://www.saskatoon.ca/

Dust,Theresa,“CommonquestionsaboutUrbanDevelopmentCentresinSaskatchewan,”2006.

WebsiteforTheresaDust,(CityofSaskatoon’sSolicitor):http://www.tdust.com/urban.html

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Case Study6.3 Glooscap First Nation and the Town of Hantsport (NS)

Location: BayofFundy,NovaScotia(approximately80kmwestofHalifax)

Population:GlooscapFirstNation:87(on-reservepopulation)TownofHantsport:1,200

Project Information:Jointwatertreatmentfacility

Project Cost: $3.4million(AANDCindirectlyfundedtheprojectfor$600,000;GlooscapFirstNationcontributed$2.4million;theTownofHantsportcontributed$1million)

Additional Partners: NovaScotiaEnvironment,HealthCanada,PublicWorksandGovernmentServicesCanada

Lesson Learned: “Recognizeproblemsbeforetheybecomeahugeissue.”JeffreyLawrence,CAO,Hantsport,NS

Contacts: ShirleyClarkeChief,GlooscapFirstNation,NovaScotiaTel.:902-684-9788

MichaelHallidayBandManagerandCouncillor,GlooscapFirstNation,NovaScotiaTel.:902-684-9788

JefferyLawrenceCAO,TownofHantsport,NovaScotiaTel.:902-684-3210

What is a Membrane Filtration System? Amembranesystemisusedtofiltergroundorsurfacewater.Themembranesystemusuallyuseshighpressuretoforcewaterthroughaseriesofsemi-permeablemembranes,whichgetincreasinglyfineandlesspermeableasthewatermovesthroughthesystem,thuscapturingunwantedparticlesinthewaterwhilelettingthecleanwaterpass.Thismethodisseenasanalternativetoflocculation,sandfilters,carbonfilters,extractionanddistillation.Membranesystemsarethoughttobemoreenvironmentallyfriendlythanothersystems.Eachmembranefilterhasanapproximateten-yearlifespan.


Rationale for shared services: Boil water advisoriesIn2001,boththeTownofHantsportandGlooscapFirstNationwereunderboilwateradvisories.Neithercommunitywasabletoprovideresidentswithastablesourceofpotablewater.HantsportcollectedwaterfromDavidsonLake,aspring-fedlake,andtreateditwithchlorine.Wheneverapoweroutageoccurred,itshutdownthetown’swatersupply.InGlooscap,therewasnocommunity-widetreatmentsystem;residentsreliedonpoorlymaintainedwells.

In2002,GlooscapFirstNationunderwentawaterassessmentandreceivedsugges-tionsforwaysinwhichcleanwatercouldbeprovidedtoresidents.Oneofthesuggestionsfromtheengineerswastopartnerwiththeneighbouringcommunityforatreatmentfacility.Atthesametime,Hantsportwastryingtomanageitsongoingwaterproblemsandseekingsolutions.TheGlooscapbandmanageratthetime,JaniceWalker,ap-proachedHantsport’sMayorandcouncilandsuggestedthattheyjointlyaddresstheirwaterconcerns.Fromthatpointforward,bothcommunitiesbegantomeetregularlytodiscusstheirneeds,concernsandpossiblesolutionsinanopenandfrankmanner.

Partnership process: Joint infrastructureBycommunicatingmonthlythroughjointcommunitymeetings,bothcommunitieswereabletoquicklyreachanagreement.BothGlooscapandHantsportusednegotia-torsandlawyerstohelpthemthroughtheprocessofestablishingpreciselywhattheywantedinanagreementandtohelpthemfinalizetheirserviceagreement.

Giventheurgentcommunityneedandtheregularcommunicationbetweenthecom-munities,thenewwatertreatmentfacilitywasoperationalby2004.Thenewstate-of-the-artwatertreatmentfacilityincludedanewdistributionsystemtowhichGlooscapFirstNationwashookedup.Thistreatment

facility,locateddirectlyacrosstheroadfromthereserve,hasprovidedbothHantsportandGlooscapwithhigh-qualitydrinkingwater.Inaddition,thefacilityhasthepotentialtoexpand,therebyensuringthattheplantisabletomeetthecommunities’futurewaterneeds.

Duringtheconstructionoftheproject,employmentopportunitieswereavailabletoon-reservebandmembers.TheTownofHantsportrunstheplantandGlooscapstaffarealsoinvolvedinongoingsystemmainte-nance.Intermsofcosts,thetownpaysfor60percentoftheoperationalcostsandtheFirstNationpays40percent.

Challenges

Government approvalsThenewplantisbasedonamembranefil-trationsystem,whichisanenvironmentallyfriendlyapproachtowaterfiltrationsincethewaterrequiresfewerchemicaladditives.GiventhatthesystemwasquitenewintheprovinceofNovaScotia,approvalswereaverytime-consumingpartoftheprocess.

Privacy issuesGlooscapFirstNationwashesitanttoallowmetersonhousesbecauseofprivacyissues;theTownofHantsportwasinsupportofme-tersasawaytomonitorleakage.Thetownwantedtocheckwhetherthetotalwaterthatleftthetreatmentplantforthereserveequaledthesumofallthemeters.Ifthenumberswerenotthesame,itwouldbeanearlyindicatorofleakage.MeterswerealsoseenbyHantsportasawaytolowercosts.Meteredwaterforthereservewouldbecheaperthanpayingalumpsumbasedonhowfarthewaterhastobepumpedbecausethepopulationdensityofthereserveismuchlessdensethanintownandmeteredwaterwouldnottakesuchfactorsintoaccount.Thetwocommunitiescompromisedbyagreeingthatexistingmeterswouldstillbereadasanindicatorforleakage,buttheFirstNationisnotbilledbasedonmeterreadings.

UNIT 3


FinancingWhenthetwocommunitiesdecidedtoworktogether,thisalsomeantthatAboriginalAffairsandNorthernDevelopment(AANDC)wouldneedtobeinvolvedindiscussionssinceitwouldbepartlyinvolvedforfundingthecapitalproject.AANDCindirectlyfundedtheprojectfor$600,000.

Thecommunitiesfacedaproblemwith“doublestacking”meaningthatfundingfromtwodifferentgovernmentdepartmentscouldnotbeprovidedforthesameproject.

Relationship buildingFromthebeginning,bothGlooscapandHantsportrecognizedthatthiswasawin-winsituationasneitherwouldhavebeenabletoaffordthesystemonitsown.Byrecognizingthisfact,negotiationsmovedquicklyandsmoothly.Bothpartiesacknowledgethatthesuccessoftheirpartnershipwasbasedonongoingcommunicationintheformofmonthlymeetingsbetweencouncilsandmanagers.

Inaddition,bothHantsportandGlooscapheldcommunitymeetingswheretheycouldaddressconcerns,quellrumours,addressprejudicesandrelayupdatesabouttheprocess.Aftertheplantwasbuilt,Hantsporthostedanumberoftourssothatmembersofbothcommunitiescouldseehowtheirwaterwasbeingtreatedandthebenefitsoftheproject.

Continuing partnershipHantsportandGlooscapcontinuetohaveacongenialrelationshipandhavesincecollaboratedonanumberofothermutualcommunityinterests,bothformallyandinformally.Forexample,whilethenewdistri-butionsystemonGlooscapFirstNationwasbeinginstalled,newfirehydrantswerealsoinstalledandarenowlocatedon-reserveforthebenefitofGlooscapresidents.Glooscapnowalsohasaccesstoalargegenerator,

locatedinthetreatmentfacility,whichHantsportpurchasedintheeventofalargepoweroutage.

Approximatelyfouryearsago,theTownofHantsportcreatedanEmergencyCommandCentreinwhichlarge-scaleemergenciessuchasforestfiresorpandemicscanbemanaged.Theroomiscompletewithacomputerstation,projectors,radios,mapsofthesurroundingareasandcommunicationsequipment.Inrecognitionoftheneighbourlyspiritthatexistsbetweenthetwocommuni-ties,HantsporthasallowedGlooscaptousethecentreifneedbe,particularlyinthecaseofforestfires,whicharethehighestriskforthearea.Communitysafetyandemergencypreparednessisajointconcern.

ConclusionHantsportandGlooscapwerebothstrugglingwithhowtoprovidecleanwaterfortheirresi-dents.TheinitialsuggestionfromGlooscaptoaddressthisissuejointlywasthefirststepinaddressingthecommunities’waterissuesandotherconcernsinacollaborativemanner.

Regularcommunicationbetweenthetwocommunitiespreventedissuesfromarisingandservedasawaytoquellrumoursandprovideupdatestocommunitymembers.Inaddition,byprovidingtoursofthefacility,residentslearnedaboutwatertreatmentandthebenefitsofthetwocommunitiesworkingtogether.

InthewordsofChiefShirleyClarke,GlooscapFirstNation,“Waterisvitaltothefutureofourcommunitygrowthandalsoforeconomicdevelopmentwithinthecommunity.”

ReferenceProvinceofNovaScotia,“GlooscapandHantsportCo-operateonWaterProject,”newsrelease,September16,2004.

UNIT 2UNIT 3


UNIT 3

7. Tools: Service agreement templates

Thesetemplatesaremeanttoactasguidesfororganizingaserviceagreementandarenotlegaldocuments.Clauseswillneedtobealtered,addedanddeletedtoensurethattheagreementisbestsuitedtofittheuniqueneedsofyourcommunity.Forexample,thepaymentsectionofthetemplateisonlyasuggestion;partiesmaywishtostructuretheirpaymentforservicesdifferentlybasedonthedesiredlevelofservicesandneeds.Tobetterunderstandtheheadingsofthesedocuments,usethemwiththeserviceagreementprovisions(pleaseseeUnit 3, Chapter 2.2: Service agreement provisions).

Formoreexamplesofserviceagreements,seetheBCCivicInfowebsite(www.civicinfo.bc.ca/13_show.asp?titleid=4).ThiswebsitehasalistingofserviceagreementsacrossBritishColumbiaandincludesPDFlinkssothatyoumaybetterunderstandthevarietyofserviceandpaymentstructures.

PleaseseesampletemplateinUnit 3, Chapter 7.1: Template: Water and sewer service agreement.

CIPP,incollaborationwithValkyrieLawGroup,hasdevelopedaseriesofserviceagreementtemplatesforthefollowingservices:

• Waterandsewer• Fireprotection• Solidwaste• Animalcontrol• Recreation• Transit• Comprehensiveserviceagreements

All CIPP Service Agreement Templates are available in Word format on the attached CD and at fcm.ca.


[Date]

WATER AND SEWER SERVICE AGREEMENT

ThisAgreementmadethis[day]of[month, year]

BETWEEN:

[NAME OF MUNICIPALITY][Address]

(hereinaftercalledthe“Municipality”)

AND:

[NAME OF FIRST NATION][Address]

(hereinaftercallthe“FirstNation”)

(collectively,the“Parties”)

WHEREAS:

A. TheFirstNation’sBandCouncilhasapprovedthisAgreementbypassingBandCouncilResolution[Name of Resolution]atitsmeetingheldon[Date]inaccordancewiththeprovisionsoftheIndian Act,R.S.C.1985,c.I-5.AcertificateoftheBandCouncilResolutionisattachedtothisMunicipalTypeServiceAgreementasSchedule[Name of Schedule].

B. TheMunicipalCouncilhasapprovedthisAgreementbypassingBylawNo.[Number of Bylaw]atitsmeetingheldon[Date].AcopyoftheBylawisattachedtothisAgreementasSchedule[Name of Schedule].

C. The[First Nation AND/OR Municipality]hasconstructedwaterworksforthesupplyanddistributionofdomesticwaterandsewerage-worksfortheprovisionofdomesticwaterandthecollectionandtreatmentofsewer,topropertiesinandaroundthe[First Nation AND/OR Municipality].

D. ThesaidPartiesdeemittotheirmutualinteresttoenterintothisAgreement.

UNIT 3

7.1 Template: Water and Sewer Service Agreement


UNIT 3THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements herein contained the sufficiency of which is hereby acknowledged, the PARTIES hereto agree as follows:

1.0 DEFINITIONS

1.1 Inthisagreement,includingthissection,therecitalsandscheduleshereto,unless thecontextotherwiserequires:

“Agreement”meansthisagreement,includingtherecitalsandscheduleshereto,as amendedandsupplementedfromtimetotime.

“LeaseholdLand”meansanyareasoftheReservethatareleasedunderthe provisionsoftheIndian Act,RSC1985,c.1-5toanynon-Bandmembersatany timeduringtheTerm.

“Leaseholder”meansatenantoroccupierofleaseholdland.

“MunicipalSewerSystem”meanstheMunicipality’ssystemofsanitarysewermains andsewagetreatmentfacilities.

“MunicipalWaterSystem”meanstheMunicipality’ssystemofwatermainsand pipes,pumps,andotherfacilitiesandequipmentusedtosupplypotablewater.

“MunicipalServices”meansthemunicipalservicesoftheMunicipalitythatare describedinsection2.1.

“MunicipalSpecifications”meanstheengineeringanddesignstandardsasindicated bytheMunicipality.

“PointofConnection”meansthepointwherethewatersystemforeitherwateror sewerownedbyoneparty,isconnectedtothewatersystemforeitherwateror sewer,oftheotherparty.

“Reserve”meansthe[Name of First Nation]whichisareservewithinthemeaningof theIndian ActR.S.C.1985,c.1-5.

“ReserveSewerSystem”meansthesystemofsanitarysewermainsandlaterals constructedbytheFirstNationontheReserveforthepurposeofcollectionand conveyingsanitarywastefromtheReserveundertheAgreement.

“ReserveSystems”meanscollectively,theReserveSewerSystemandthe ReserveWaterSystem.

“ReserveWaterSystem”meansthesystemofsanitarysewermainsandlateral supplypipesconstructedbytheFirstNationontheReservefortheprovisionof waterservicestotheReserveundertheAgreement.

“Service”meansaMunicipalService.

“Term”meansaperiodoftimewhichthisAgreementremainsinforceandeffect, asdescribedinSection2.


UNIT 3

2.0 TERM

2.1 SubjecttoearlierterminationunderSection2.2,9.1,or9.2below,thisAgreementcom-menceson[Date of Agreement]andshallcontinueto[Enddatepartiesagreeupon].SubjecttoterminationunderSection2.2below.

2.2 ThisAgreementmaybeterminatedon[NumberofMonths]monthspriorwrittennoticebyeitherParty,attheirsolediscretion.

2.3 FailuretoreneworreplacethisAgreementortoprovideearlierterminationthereof,placesthePartiesinoverholdingstatus,andallagreementsandobligationshereinremainineffectonamonth-to-monthbasis.RenewalisexercisableuponwrittennoticetothemunicipalityandsubjecttotheFirstNation’scompliancewiththeAgreement.

3.0 SERVICES

DuringtheTerm,theDistrictwillprovidethefollowingServicestotheReserve:

(a)asupplyofwatertotheReservethroughtheReserveWaterSystem; (b)thecollection,conveyance,treatmentanddisposalofsanitarywastethatis

dischargedfromtheReservethroughtheReserveSewerSystem.

3.2 TheFirstNationmustconstructatitssolecost,andtotheMunicipality’ssatisfaction,anyworksrequiredforthepurposeofconnecting:

(a)theReserveWaterSystemtotheMunicipalWaterSystem; (b)theReserveSewerSystemtotheMunicipalSewerSystem;

whethersuchworksarerequiredtobeconstructedonorofftheReserve.AnyrequiredextensionoforconnectiontoServicesonMunicipalitypropertyorwithinaMunicipalityhighwayorrightofwaywillbecomethepropertyoftheMunicipalityuponcertificationbytheMunicipalityofthecompletionofsuchworkstothestandardsrequiredunderthisAgreement.

3.3 ThequalityandquantityoftheServicestobeprovidedbytheMunicipalityunderthisAgreementwillbesubstantiallythesameasthequalityandquantityofServicespro-videdbytheMunicipalitytotheusersofsuchServicesonnon-ReservelandswithintheMunicipality.TheMunicipalityisnotobligedtoprovideServicesatagreaterlevelordegreethanthelevelordegreetowhichthesameServiceisprovidedelsewherewithintheMunicipality.TheMunicipalitymakesnorepresentationorwarrantythatthelevelordegreeofServicesprovidedunderthisAgreementwillbemaintainedorcontinuedtoanyparticularstandard,otherthanasstatedexpresslyherein.TheFirstNationacknowledgesandagreesthattheremaybefromtimetotimeinterruptionsorreductionsinthelevelofServices,andthattheMunicipalitywillnotbeheldliableforanylosses,costs,damages,claimsorexpensesarisingfromorconnectedwithatemporaryinterruptionorreductioninthelevelofaServiceprovidedunderthisAgreement.


UNIT 34.0 PAYMENT FOR SERVICES

4.1 TheFirstNationwillpaytheMunicipalityforthesupplyofwaterunderSection3.1(a)ofthisAgreement:

(a) afeeequivalenttotheratesestablishedunder[Municipal by-law stating water rates/regulation]ineffectfromtimetotimeandasifeachbuildingwithintheReserveweresubjecttothatbylaw;

(b) anadditionalfeeof[amount]dollarsperannumforeachbuildingontheReserveland.

4.2 Thefeecalculatedundersection4.1(a)willbedeterminedbythequantityofwaterusedasdeterminedbymeterstobeinstalledinlocationsthatareapprovedinadvancebytheMunicipality.TheFirstNationisresponsibleforthecostofpur-chasingandinstallingthemeterstotheMunicipality’ssatisfactioninaccordancewithMunicipalbylawsandstandards.TheMunicipalityisresponsibleformaintainingthemeters.

4.3 TheFirstNationwillpaytheMunicipalityforthecollection,treatment,anddisposalofsanitarywasteunderSection3.1(b)ofthisagreement:

4.4 NodeductionfromtheestablishedfeesinSection4.1or4.3shallbeallowedonaccountofanywaste-waterbytheFirstNation,theFirstNationMembers,ortheLeaseholdersorotheroccupiersofthereserve,orthatresultsfromarupture,leak,breakdown,ormalfunctionoftheReserveWaterSystem.

4.5 TheMunicipalitywillinvoicetheFirstNationevery[frequency of water services billing]forthesupplyofwaterandevery[frequency of sanitary sewer services billing]forsanitarysewage,oronamoreorlessfrequentbasisasistheMunicipality’spractice.

4.6 TheFirstNationwillpaytheMunicipalityanannualfeeof[amount]dollarsforregularcleaningorflushingoftheReserveSewerSystemandtheMunicipalSewerSystem.

4.7 TheFirstNationshall,within[number of days]ofthedateuponwhichtheagree-mentisexecuted,providetheMunicipalitywithanirrevocablestandbyLetterofCreditdrawnuponaCanadianCharteredbankintheamountof[estimated cost of services for one year]dollarstobeusedassecurityforpaymentofamountsowingtotheMunicipalitypursuanttothis.AnyrenewedorsubstitutedLetterofCreditshallbedeliveredbytheFirstNationtotheMunicipalitynotlessthan[number of days]priortotheexpirationofthethencurrentLetterofCredit.

5.0 CONSTRUCTION OF NEW RESERVE SYSTEMS

5.1 EachReserveSystem,includinganyextensionofaReserveSystemandanyre-placementofaReserveSystemmadenecessarybyaccidentalloss,wearandtear,breakdown,malfunctionorobsolescence,mustbeconstructedatthesolecostoftheFirstNationandmustmeetthespecificationsandstandardsoftheMunicipalityasprovidedin[name of bylaw which controls standards].


UNIT 3

5.2 TheFirstNationwillretainaProfessionalEngineertodesignandtoprovideengineer-ingservicesfortheconstructionofaReserveSystem,whichEngineershallcertifytotheMunicipalitythatsuchworkshavebeenconstructedtoMunicipalSpecifications.TheEngineer’scertificationmustbedeliveredtoMunicipality,alongwithalloftheEngineer’sinspectionrecordsandas-builtdrawingsbeforeanynewReserveSystemmaybeconnectedtotheMunicipalWaterorSewerSystems,respectively.

6.0 OWNERSHIP OF RESERVE SYSTEMS

6.1 TheFirstNationshallatalltimesretainownershipoftheReserveSystems,andnointerest,rightortitletotheReserveSystemsshallbeconveyedtotheMunicipalityunderthisAgreement.

6.2 ExceptwiththepriorwrittenconsentoftheFirstNation,theMunicipalitywillnotutilizetheReserveSystemsorestablishanyconnectionthereto,exceptforthepurposeofprovidingServicesunderthisAgreement.

7.0 REPAIRS AND MAINTENANCE

7.1 DuringtheTermoftheAgreement,theMunicipalitywillprovideallnecessaryrepairsandmaintenanceoftheReserveSystems,includinganypreventativemaintenancethattheMunicipalityconsiderstobenecessary.InthecaseofanynewlyconstructedReserveSystem,theMunicipality’sobligationunderthissectionwillcommencefollowingcompletionofthemaintenanceperiodprovidedunderthecontractfortheconstructionofthatsystem.

7.2 TheMunicipalitywillusereasonableeffortstocarryouttherepairandmaintenanceoftheReserveSystemsinatimelymannerandinaccordancewiththeMunicipality’sinfrastructuremaintenancestandardsandpolicies.

7.3 UponreceiptofaninvoicefromtheMunicipality,theFirstNationwillreimbursetheMunicipalityforallexpensesincurred,whetherformaterials,equipmentorlabour,inrelationtotherepairandmaintenanceoftheReserveSystems.

7.4 TheFirstNationwillpromptlynotifytheMunicipalityofanybreakdowninaReserveSystemthatrequiresanyrepairormaintenancework.

8.0 RIGHTS OF ACCESS

8.1 RepresentativesoftheMunicipalitymayatanytimeenterupontheReserveforthepurposeofprovidinganyoftheServicesrequiredinaccordancewiththisAgreementasoutlinedbySection3orthepurposesofinspectingtheReserveSystemsandensuringcompliancewiththetermsoftheAgreement.

8.2 TheFirstNationmayapplytohaveaccesstoMunicipality’shighwaysorrights-of-wayforthepurposeofconstructinganyworksorservicesrequiredunderthisAgreement,inaccordancewiththeproceduresestablishedunder[name of any applicable bylaws, if required].


UNIT 39.0 TERMINATION FOR BREACH OF AGREEMENT

9.1 WhetherornottheServicesoranyofthemarediscontinuedoranydisconnectionsaremade,whereinvoicesremainunpaidbytheFirstNationasat[Date]ofthefollowingyear,theMunicipalityshallhavetheright,withoutprejudicetoanyotherrightorremedy,tocallupontheLetterofCreditasoutlinedinsection4.7.If,atanytimeduringthetermofthisAgreementinvoicesremainunpaidasat[Date]andtheFirstNationfailstohavetheLetterofCreditinplace,theMunicipalitymaygiveimmediatenoticeofterminationofthisAgreement.

9.2 ShouldeitherpartybeinbreachofitscovenantsorundertakingsunderthisServiceAgreement,otherthanafailurebytheFirstNationtopayforServices,whichremainsun-rectifiedforaperiodof[acceptable period for rectification of breaches of the agreement]followingwrittennotificationofsuchbreach,thepartynotinbreachmay,atitsoptionandwithoutprejudicetoanyotherrightsorremediesitmighthave,immediatelyterminatethisAgreement.

10.0 LIABILITY

10.1 TheMunicipalitydoesnotwarrantorguaranteethecontinuanceorqualityofanyoftheservicesprovidedunderthisAgreementandshallnotbeliableforanydam-ages,expenses,orlossesoccurringbyreasonofsuspensionordiscontinuanceoftheServicesforanyreasonwhichisbeyondthereasonablecontroloftheMunicipality,includingwithoutlimitationactsofGod,forcesofnature,soilerosion,landslides,lightning,washouts,floods,storms,seriousaccidentaldamage,strikesorlockouts,vandalism,negligenceinthedesignandsupervisionorconstructionoftheReserveSystems,orinthemanufactureofanymaterialsusedtherein,andothersimilarcircumstances.

11.0 COMMUNICATIONS AND CONTRACT PROTOCOL

11.1 AllthePartiestothisagreementwillappointoneormorerepresentatives,withnoticetotheotherPartiesofsuchappointmentsastheprincipalcontactsforofficialcommunicationsaboutthisAgreement,andastheprincipalcontactsforoperationalmatterspursuanttothisAgreement.ThePartiesfurtheragreetoestablishacommu-nicationsprotocoltomanageissuesarisingunderthisAgreement.

12.0 DISPUTE RESOLUTION

12.1 Intheinterestofcooperativeandharmoniousco-existence,thepartiesagreetousetheirbesteffortstoavoidconflictandtosettleanydisputesarisingfromorinrelationtothisAgreement.ThePartiesacknowledgeandagreethatthisSection12.1doesnotlimiteitherParty’srespectiverightsunderSection9.1or9.2above.

12.2 Intheeventthatthepartiesfailtoresolvematters,thepartiesshallseekasettlementoftheconflictbyutilizing[Outline agreed upon method(s) of dispute resolution],andrecoursetotheCourtsshallbeameansoflastresort,exceptwhenpublichealthorsafetyisconcerned.


UNIT 3

13.0 ACKNOWLEDGEMENT OF RIGHTS

13.1 NothingcontainedinthisAgreementwillbedeemedtolimitoraffectanyotherAboriginalrightsorclaimstheFirstNationmayhaveatlaworinequity.NothingcontainedinthisAgreementwillbedeemedtolimitoraffectthelegalrights,dutiesofobligationsoftheMunicipality.ThePartiesagreethatnothinginthisAgreementwillaffectthecooperationorconsultationcovenantsthePartieshaveenteredintopursuanttootherAgreements.

14.0 HEADINGS

14.1 HeadingsthatprecedesectionsareprovidedfortheconvenienceofthereaderonlyandshallnotbeusedinconstructingorinterpretingthetermsofthisAgreement.

15.0 ENTIRE AGREEMENT

15.1 ThisAgreementconstitutestheentireAgreementbetweenthePartiesandtherearenoundertakings,representationsorpromisesexpressorimplied,otherthanthoseexpresslysetoutinthisAgreement.

15.2 ThisAgreementsupersedes,merges,andcancelsanyandallpre-existingagreementsandunderstandingsinthecourseofnegotiationsbetweentheParties.

16.0 NOTICE

16.1 TheaddressfordeliveryofanynoticeorotherwrittencommunicationrequiredorpermittedtobegiveninaccordancewiththisAgreement,includinganynoticeadvisingtheotherPartyofanychangeofaddress,shallbeasfollows:

(a) toMunicipality: [Provide Address including the attention the letter should be directed to and

other relevant contact information] (b)toFirstNation: [Provide Address including the attention the letter should be directed to and

other relevant contact information]

16.2 Anynoticemailedshallbedeemedtohavebeenreceivedonthefifth(5th)businessdayfollowingthedateofmailing.Bynoticefaxedoremailedwillbedeemedtohavebeenreceivedonthefirst(1st)businessdayfollowingthedateoftransmission.ForthepurposesofSection16.2,theterm“businessday”shallmeanMondaytoFriday,inclusiveofeachweek,excludingdayswhicharestatutoryholidaysintheProvinceof[insert name of province].

16.3 ThePartiesmaychangetheiraddressfordeliveryofanynoticeorotherwrittencommunicationinaccordancewithsection16.1.


UNIT 317.0 SEVERANCE

17.1 IntheeventthatanyprovisionoftheAgreementshouldbefoundtobeinvalid,theprovisionshallbeseveredandtheAgreementreadwithoutreferencetothatprovision.

17.2 WhereanyprovisionoftheAgreementhasbeenseveredinaccordancewithSection17.1andthatseverancemateriallyaffectstheimplementationofthisAgreement,thepartiesagreetomeettoresolveanyissuesthatmayariseasaresultofthatseveranceandtoamendthisAgreementaccordingly.

18.0 AMENDMENT

18.1 TheAgreementshallnotbevariedoramendedexceptbywrittenagreementofbothParties.

18.2 Nowaiveroftheterms,conditions,warranties,covenants,andagreementssetouthereinshallbeofanyforceandeffectunlessthesameisreducedtowritingandexecutedbyallpartiesheretoandnowaiverofanyoftheprovisionsofthisAgree-mentwillconstituteawaiverofanyotherprovision(whetherornotsimilar)andnowaiverwillconstituteacontinuingwaiverunlessotherwiseexpresslyprovided.

19.0 GOVERNING LAWS

19.1 TheprovisionsofthisAgreementwillbegovernedandinterpretedinaccordancewiththelawsof[insertprovince]orCanada,asapplicable.

20.0 ASSIGNMENT

20.1 TherightsandobligationsofthePartiesmaynotbeassignedorotherwisetransferred.AnamalgamationbyaPartydoesnotconstituteanassignment.

21.0 ENUREMENT

21.1 TheAgreementenurestothebenefitandisbindinguponthePartiesandtheirrespectiveheirs,executors,administrators,successors,andassigns.


UNIT 3

IN WITNESS WHEREOF the parties hereto have executed this Agreement.

Onbehalfofthe[NAME OF FIRST NATION OR MUNICIPALITY]

____________________________________________________________________________________

[Position]

____________________________________________________________________________________

[Position]

Onbehalfofthe[NAME OF FIRST NATION OR MUNICIPALITY]

____________________________________________________________________________________

[Position]

____________________________________________________________________________________

[Position]


UNIT 3

8. Service agreement and pricing references

Towards Sound Government to Government Relationships with First Nations: A Proposed Analytical ToolInstitute on Governance

ThistoolisdesignedtohelpgovernmentsevaluatethequalityoftheirrelationshipwithFirstNations.Itprovideskeyprinciplesforengagementandgoodgovernancethatplayintotherelationshipsbetweengovernmentsandthequalityofoutcomesproducedbythoserelationships.

Cost Sharing Works: An Examination of Cooperative Inter-Municipal Financing Alberta Association of Municipal Districts and Counties (AAMDC)

Thispaperoffersasummaryofcostsharingbetweenmunicipalitiesincluding:benefits,disadvantages,andprincipalsofcostsharing.Althoughthispaperisintendedforamunicipalaudience,itcouldalsobeusedinthecontextofFirstNations–municipalcostsharing.

Report Concerning Relations between Local Governments and First NationsAlberta Municipal Affairs

ThisreportdiscussesthenecessaryprinciplesforcreatingandmaintainingpositiverelationshipsbetweenFirstNationsandMunicipalitiesbydrawingoninterviewsandcasestudiesfromthePrairies,WestCoast,YukonandOntario.

A Reference Manual for Municipal Developments and Service AgreementsManitoba Department of Intergovernmental Affairs

AcompletereferenceguidetoServiceAgreementsaimedatFirstNationsandmunicipalitiesinManitoba.Itcoverstopicssuchasorganizingmeetings,buildingcompatiblebylaws,samplepay-mentarrangements,andgeneraltermsthatshouldbepresentinanagreement.Throughoutthereport,provinciallawsarereferenced(howtheyaffectmunicipalplans,etc.).


UNIT 3

Handbook on Inter-Municipal Partnerships and Co-operation for Municipal GovernmentUnion of Nova Scotia Municipalities, Ministry of Municipal Relations, Service Nova Scotia

Thishandbookwaswrittenwiththepurposeofhelpingmunicipalitiesworkmoreeffectivelywithoneanother.ManyofthelessonsandobservationsinthishandbookcanbeeasilyappliedtotheFirstNation–municipalcontext.Itcontainsusefulinformationonnegotiationsandworkingtogether,tipstohelpevaluateaninter-municipalpartnership,andanextensiveguidetobestpracticesresources.

Towards a Model Local Government Service Agreement with Lower Mainland First NationsLower Mainland Treaty Advisory Committee

Thispaperaddressesawidevarietyofconcernsrelatingtoserviceagreementsincludingfinancial,technicalandoperationalconsideration;land-usecompliance;servicelevels;local,communityandregionalinterests;rights-of-way,taxation;andfutureexpansionofregionalfacilities.Italsoem-phasizesthefactthatsuccessfulcontractsoftenbeginwithrelationship-buildinginitiatives.Onlythencanserviceagreementbenegotiated.

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Guide to Service Agreements

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