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Set-up & Structure

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

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

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

​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.​

​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.​

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

​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.​

​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.​

​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.​

​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.​

​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.

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 

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