MAPLETON – Council here has endorsed the creation of a municipal service corporation (MSC) to increase the township’s flexibility in financing upcoming water and wastewater upgrades.
A public consultation period about forming the MSC lasted from Jan. 28, when Graham Capital presented a case study, through Feb. 28, with a public input session on Feb. 11.
No negative comments or feedback on creating the MSC were submitted.
The township is planning about $41 million in water and wastewater infrastructure upgrades over the next three years.
It’s set to transfer all water and wastewater assets, funding, debt and future development charges to the MSC.
“The legal fees incurred to establish the MSC will be an expense of the MSC, and fall outside of general tax funded legal fees,” states a report from the township’s finance department presented to council on April 8.
Township treasurer Patrick Kelly called the report “the next step in what’s been a long journey for the township in establishing a [MSC].”
In the fall of 2023, he said, the township entered into a contract with Graham Capital, which is assisting with financing and delivering the water and wastewater capital program.
According to the report, Graham Capital was selected “based on a comprehensive evaluation of [the company’s] expertise and track record in similar projects, as well as their competitive pricing.”
All ownership and control over the operations, service and delivery of the water and wastewater projects would remain entirely with the township.
A board of directors, including township staff and councillors, members of the public, and one Graham Capital representative, will govern the MSC.
The public board members will be volunteers selected through an application process and chosen for their skills and expertise in engineering (civil, environmental or water), finances, governance, corporate social responsibility, risk management and board experience.
The application will be shared on the township’s social media and LinkedIn, and CAO Manny Baron encouraged councillors and staff to give people a “tap on the shoulder” if they know someone who’d be a good fit for the role.
Now that council has given its formal endorsement, township staff are moving forward with recruiting board members, establishing a business name, and starting to transition over to the MSC.
“We still have a long way to go over the next couple of months standing up the MSC,” Kelly noted.
Next steps include informing ratepayers about the transition to MSC for billing, opening necessary bank accounts, formally registering the MSC entity, establishing articles of incorporation, finalizing the asset transfer policy and finalizing the personal services agreement.
Two members of council will be selected for the board and township staff will return to council to approve the public board members and present an asset transfer policy.
Other board members would include Kelly, Baron, Reeba Arif from Graham Capital, and director of public works Jamie Morgan.
The board needs to be in place by the end of May, and staff are projecting a mid-May financial close.
The township initially planned to have one member of the public and one councillor on the board, but councillor Marlene Ottens suggested there be two of each instead.
Councillor Michael Martin suggested there be an odd number of board members instead, to avoid votes ending in a tie, but Mayor Gregg Davidson said tie votes would count as a loss, as they do when Wellington County’s even-numbered council has tied votes.
Though the reason for the MSC’s creation is the water and wastewater project, council discussed the possibility of it eventually expanding to include other work.
Staff members are brainstorming a name, considering options that are “pretty broadstrokes … not calling it something that ties our hands to [water/wastewater,]” Kelly said.
