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Skip Navigation LinksOro Medonte > Municipal Services > Municipal Services Corporation > ​​Frequently Asked Questions > Setup and Structure

​Set-up and Structure

Frequently Asked Questions regarding the set-up and structure of a Municipal Services Corporation​.​​

When will the MSC be incorporated?

​We anticipate it will take approximately 6 months for the incorporation and a further 6 months for the initial start-up transition.​

How much has this cost the Township to date?

​Approximately $65,000 which includes the cost to develop the business plan and legal expenditures.​

How much more will be spent before the MSC is incorporated and launched?

​We cannot estimate what additional expenditures will total, however, staff and Council are conscious of the need to minimize unnecessary costs that would be ultimately borne by all benefiting taxpayers.​

What will be the incremental costs of delivering services through the MSC vs. the Township delivering these services directly?

​We have estimated that there will be approximately $100,000 of additional annual costs which would cover expenses such as Board of Director expenses, Financial audit costs and Insurance.​

Who pays for these incremental annual expenses?

​The MSC will operate on a full-cost recovery basis with costs borne by service users. ​

Is it legislated that the Township owns 100% of the MSC or can it sell some shares of the MSC to another party?

​The shares of a MSC can be owned by a single municipality, or a municipality and one or more other public-sector entities.  The legal documents structured to created the MSC will define this ownership structure and shareholder framework.​

What are the details of the Corporation By-laws?

​The by-laws have not yet been established and will be completed during the initial start-up period.  We anticipate a presentation will be made to Township Council in December 2018.​

How will the Board members be selected?

​The Board recruitment process will be a open, publicly advertised opportunity.  Board member selection will be a skills-based recruitment process.  We envision that two voting positions will be dedicated to members of Township Council with the remaining positions selected through the public process.​

Who will ensure that the services they provide are of the same high standards that the Township provides?

​The MSC will be required to meet the same quality standards that the Township currently adheres to including regulations enforced by the Ministry of the Environment and Climate Change.  The MSC will report and publish their performance on a regular basis to the Township and residents.​

Will salaries be outrageous like Ontario Hydro?

​Ontario Hydro is a different model and governed by different regulations as an energy provider. 

The MSC will not have its own staff.  Technical and administrative support including operating staff will be provided by Township staff on full cost recovery basis.  Salary levels will be consistent with existing Township policies.

The Board of Directors of the MSC will be responsible for establishing and approving annual budgets.  Township Council as the sole shareholder will have oversight responsibilities to ensure operations and decisions are in the best interest of the municipality. 

What is the role of the Township’s CAO in the MSC?

During the first year of operation, the size of the MSC should not justify a full-time president and CEO. As such, it is recommended that the Township's CAO formally assume this combined role, in addition to Township responsibilities.

​Additional benefits of this joint appointment would be:

•         Ensured coordination between the Township and the MSC during and following the transfer of assets

•         Potential for the Township CAO to enter into discussions with other municipalities with respect to shared service arrangements delivered through the MSCs