752 St.

George Street, PO Box 100

Annapolis Royal, Nova Scotia, Canada B0S 1A0
Phone: (902) 532-2331 Fax: (902) 532-2096
Website: AnnapolisCounty.ca

November 13, 2019

Hon. Chuck Porter, Minister

Municipal Affairs and Housing
P.O. Box 216
Halifax, Nova Scotia E3J 2M4

Dear Minister Porter,

I acknowledge receipt of your letter of October 29, 2019.

The Municipality of the County of Annapolis is prepared to accept your offer of mediation services
upon certain conditions that should be acceptable by all concerned. In setting the conditions it is
first necessary to review the background. We appreciate it requires the agreement of the parties to
proceed to mediation.

Background
Previously Mayor Muttart had suggested arbitration and on February 28, 2019, I had written to
him stating that one must first identify the issues before you can agree on a process to resolve –
whether it be litigation, mediation or arbitration. I, at the time, identified the issues from the
perspective of the Municipality of the County of Annapolis asking if I had identified all the issues.
He has not answered my letter concerning the issues. Several months later the parties to the ISA
and Valley Waste commenced actions against the Municipality of the County of Annapolis.

Most recently in a letter dated October 15, 2019, responding to the suggestion of Mayor Muttart
about mediation and arbitration, I again set out the issues identified by the Municipality of the
County of Annapolis. I asked if I had identified all the issues. He has not responded to my letter. I
had copied that letter to both the Premier and Minister of the Environment. If you do not have a
copy please advise and I shall forward the same to you.

The reason I have reviewed the history is to provide background to your offer of mediation
services.

Position of the Municipality of the County of Annapolis

The Municipality of the County of Annapolis will not arbitrate the issues between the parties.

The Municipality of the County of Annapolis will continue to defend itself against the claims made
by the parties to the ISA and Valley Waste in their respective lawsuits and further will prosecute
its counterclaims.
…/2
Hon. Chuck Porter
Municipal Affairs and Housing
November 13, 2019
Page Two

The Municipality of the County of Annapolis is prepared to mediate in a public forum all of the
issues. Such may result in a resolution of some or all the issues between the parties to the ISA and
Valley Waste.

Conditions Concerning Mediation

To proceed further with mediation, we require all of the parties to the ISA and Valley Waste to
agree on the issues that are the subject of mediation.

The following are the issues that the Municipality of the County of Annapolis has identified to
date:
(a) What was the tonnage of residual solid waste that was collected by Valley Waste in the County
of Annapolis for the 12 months prior to April 1, 2018 and what was the actual tonnage of
residual solid waste that was collected by Valley Waste in the County of Annapolis for the
period April1, 2018 to mid-August 2018?

(b) What money, if any, is owed to Valley Waste for the period (from April 1, 2018 to August 2018)
for the residual solid waste that was collected and removed from the County of Annapolis?

(c) What was the requirement for approval of an operation plan and budget for Valley Waste by
the parties to the ISA?

(d) Did the County of Annapolis ever approve an operational plan and/or budget for Valley Waste
for the year commencing April 1, 2018?

(e) If not approved by what authority did Valley Waste operate after April 1, 2018?

(f) What are the provisions of the ISA for a party to withdraw from Valley Waste?

(g) What are the provisions of the ISA to amend the terms of the ISA?

(h) Are there any specific terms of the ISA that other parties to the ISA could deem a party to the
ISA had withdrawn?

(i) Did the parties that deemed the County of Annapolis had withdrawn from Valley Waste breach
the ISA giving rise to a claim for damages by the County of Annapolis?

(j) Damages payable to the Municipality of the County of Annapolis:

a.What is the amount of money that Valley Waste and/or the parties must pay Annapolis for its
(Municipality for the County of Annapolis) 21% interest in Valley Waste?

…/3
Hon. Chuck Porter
Municipal Affairs and Housing
November 5, 2019
Page Three

b.What is the amount of money payable by the parties to the Municipality of the County of
Annapolis as a result of the direction to Valley Waste to not allow the use the collection bins
which were the property of Valley Waste?

(k) Has the reported surplus of $1,108,455 recorded in the 2019 consolidated financial statements
of Valley Waste been properly recorded?
(l) If not is the share of the Municipality of the County of Annapolis of the surplus $232,995.14?

If the parties to the ISA and Valley Waste are prepared to identify and address all of the issues
then mediation would be of value as the remaining issues are the subject matter of litigation.

If the parties to the ISA and Valley Waste agree to the issues being properly stated please advise
of the next step concerning mediation.

We look forward to a favourable response.

Yours truly,

Timothy Habinski,
Warden

c.c. Hon. Stephen McNeil, Premier

Hon. Arthur J. LeBlanc, Lieutenant Governor, ONS, QC