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09 - May 12, 2026 Committee of the Whole Agenda Package110c, ElginCounty Elgin County Council Committee of the Whole Meeting Orders of the Day Tuesday, May 12, 2026, 9:30 a.m. Council Chambers 450 Sunset Drive St. Thomas ON Note for Members of the Public: Please click the link below to watch the meeting livestream: https://video.isilive.ca/elgincounty/live.html Accessible formats available upon request. Pages 1. Meeting Call to Order 2. Approval of Agenda 3. Adoption of Minutes 2 4. Disclosure of Pecuniary Interest and the General Nature Thereof 5. Members' Motions 6. Reports of Council, Staff or Outside Boards 6.1 Director of Community & Cultural Services - CCS 26-04 Library Branch 5 Construction and Interest -Free Loan Policy Adoption 6.2 Solicitor - LEG 26-03 — Enterprise Risk Management Framework 16 7. Adjournment EIg i nCoi..,inty Elgin County Council Committee of the Whole Meeting Minutes April 28, 2026, 9:30 a.m. Council Chambers 450 Sunset Drive St. Thomas ON Members Present: Warden Dominique Giguere Deputy Warden Grant Jones (virtual) Councillor Ed Ketchabaw Councillor Mark Widner Councillor Jack Couckuyt Councillor Andrew Sloan Councillor Todd Noble Councillor Mike Hentz Councillor Richard Leatham Staff Present: Blaine Parkin, Chief Administrative Officer/Clerk Nicholas Loeb, Director of Legal Services Brian Masschaele, Director of Community & Cultural Services Jennifer Ford, Director of Financial Services/Treasurer Peter Dutchak, Director of Engineering Services Mat Vaughan, Director of Planning and Development Holly Hurley, Director of People & Culture Joe Anne Holloway, Director of Homes and Seniors Services Carolyn Krahn, Manager of Economic Development, Tourism & Strategic Initiatives Katherine Thompson, Manager of Administrative Services/Deputy Clerk Diana Morris, Senior Planner Jenna Fentie, Legislative Services Coordinator Stefanie Heide, Legislative Services Coordinator Lindsay King, Policy Planner Meeting Call to Order The meeting was called to order at 10:33 a.m. with Warden Giguere in the chair. 2. Approval of Agenda Resolution Number: CW26-40 Moved by: Councillor Hentz Seconded by: Councillor Noble RESOLVED THAT the agenda for the April 28, 2026 Committee of the Whole Meeting be approved as presented. Motion Carried. 3. Adoption of Minutes Resolution Number: CW26-41 Page 2 of 24 Moved by: Councillor Sloan Seconded by: Councillor Leatham RESOLVED THAT the minutes of the meeting held on April 14, 2026 be adopted. Motion Carried. 4. Disclosure of Pecuniary Interest and the General Nature Thereof None. 5. Members' Motions None. 6. Reports of Council, Staff or Outside Boards 6.1 Senior Planner - PLN 26-05 Draft Plan of Subdivision 34T- CE2503 Eagle Ridge Phase 3 - Part of Lot 2 and 4, Registered Plan 263 The Senior Planner presented the report recommending that County Council approve Draft Plan of Subdivision 34T-CE2503 in the Municipality of Central Elgin. Resolution Number: CW26-42 Moved by: Councillor Noble Seconded by: Councillor Sloan RESOLVED THAT the Council of the Corporation of the County of Elgin grants draft plan approval to Draft Plan of Subdivision 34T-CE2503 (PLN 26-05), Municipality of Central Elgin, prepared by CJDL Consulting Engineers and certified by Kim Husted, O.L.S, dated November 28, 2025, showing Lots 1-163 (single detached residential), dedicated streets (Snowy Owl Trail, White Tail Path, Streets 'A —'D'), Blocks 164-165 (walkway/servicing blocks), Blocks 166-183 (Reserves) and Blocks 184- 185 (Future Development); and THAT staff be directed to provide notice of decision subject to the conditions of final approval in accordance with the requirements of the Planning Act. Motion Carried. 6.2 Manager of Economic Development, Tourism & Strategic Initiatives - EDT 26-02 Elgincentives Community Improvement Plan 2026 Update The Manager of Economic Development, Tourism, & Strategic Initiatives and Jesse McPhail from Re:Public Urbanism presented the draft Elgincentives Community Improvement Plan for Council's endorsement and recommended that the plan proceed through the approval process at the local municipal partner councils. Resolution Number: CW26-43 Moved by: Councillor Ketchabaw Seconded by: Councillor Widner RESOLVED THAT the Elgincentives Community Improvement Plan 2026 Update be endorsed; and THAT staff be directed to proceed with the local municipal adoption process. Motion Carried. 7. Adjournment Page 3 of 24 Resolution Number: CW26-44 Moved by: Councillor Leatham Seconded by: Councillor Sloan RESOLVED THAT we do now adjourn at 11:10 a.m. to meet again on May 12, 2026 at 9:30 a.m. Motion Carried. Katherine Thompson, Dominique Giguere, County Clerk / Warden. Manager of Administrative Services. Page 4 of 24 /00 ,000 0 ElginCc),L,inty Report to Committee of the Whole From: Brian Masschaele, Director of Community and Cultural Services Date: May 12, 2026 Subject: CCS 26-04 Library Branch Construction and Interest -Free Loan Policy Adoption Recommendation(s): THAT the Library Branch Construction and Interest -Free Loan Policy attached as Appendix A to the May 12, 2026 Committee of the Whole report titled "Library Branch Construction and Interest -Free Loan Policy Adoption" from the Director of Community and Cultural Services be hereby adopted. Introduction: County Council last adopted a policy to guide the process behind renovation, relocation or expansion of library premises that form part of the Elgin County Library system in 2015. This report proposes further amendments to the policy to help guide current and future library renovation, expansion or re -location projects. Furthermore, it recommends one-time inflationary increases to interest -free loan amounts. Background and Discussion: The County of Elgin has had a policy to support the construction, renovation, expansion or relocation of premises that form part of the Elgin County Library system by local municipal partners since 1999, including provision for interest -free loans to support eligible capital costs. The last update to this policy occurred in 2015 to allow for interest -free loans to leased facilities in addition to those owned by the municipality (attached as Appendix B). Substantive updates to this most recent policy as attached for Council's consideration include the following (with major changes outlined in the policy in red text): • Changing the name from "Library Branch Construction Policy" to "Library Branch Construction and Interest -Free Loan Policy" to bring further clarity to the policy's scope. Providing more consistent wording to utilize the term "premises" for branch locations given that they are not all located in stand-alone buildings or facilities. Page 5 of 24 • Adding the provision that entities controlled by municipal partners are eligible for an interest -free loan, in addition to loans directly to local municipal partners. This change would make community facilities that are governed under the auspices of one or more local municipal partners eligible for such a loan. Such loans would not be provided to for -profit or private entities. • Reiterating that the process for a branch renovation, expansion or re -location starts with the local municipal partner who should generally own the premises. • Providing a clear statement that Elgin County Council has the authority to enter into leasing agreements for library premises under the terms of the Public Libraries Act (R.S.O. 1990, c. P.44). This fact was a given in the previous policy but it is worthy of formally stating in the revised version. • Applying an inflationary adjustment to the loan threshold amounts under each category based on a Consumer Price Index average of two percent since 2014. Further adjustments to these thresholds can be considered at a future point based on a similar adjustment. New loan maximums are now proposed to be as follows (rounded amounts): Branch Category Maximum Interest -Free Loan Amount Small $125,000 Medium $250,000 Large $500,000 Clauses dealing with steps that local municipal partners should take in recommending a new, expanded or re -located library premise, including provisions for interest -free loans, have been streamlined without impacting the overall intent of the previous policy. Annual deadlines for interest -free loans have also been removed as this can be negotiated by County Council and the municipal partner at any given time. Financial Implications: The Municipality of West Elgin is contemplating an interest -free loan under the small branch category of the policy for the current expansion project to West Lorne Library. Under this revised policy, West Elgin could seek a loan of up to $125,000 to support associated costs. For Council's information, this policy was last utilized by the Township of Southwold for Shedden Library re -location in 2017 ($100,000) and the Municipality of Central Elgin for Belmont Library expansion in 2016 ($100,000). The loan to Central Elgin is now fully paid and the loan to Southwold will be fully paid in 2027. Page 6 of 24 Advancement of the Strategic Plan: Strategy #1 - Collaborative Engagement and Communication The policy strengthens relationships with local municipal partners through providing guidance and financial assistance on library projects. Strategy #5 — Community Well-being and Inclusivity The policy supports a strong network of library branches across the County to increase access to wellness services. Local Municipal Partner Impact: Local municipalities will be informed of this policy whenever library renovation, expansion or re -location projects are contemplated. A copy of this policy will be communicated to the Municipality of West Elgin given their pending request. Communication Requirements: Not applicable. Conclusion: It has been over ten years since the last update to the County's policy on library branch renovation, expansion or re -location. These current updates represent further fine- tuning to a policy that has served the County's library system well for nearly three decades. All of which is Respectfully Submitted Approved for Submission Brian Masschaele Blaine Parkin Director of Community and Chief Administrative Officer/Clerk Cultural Services Page 7 of 24 Appendix A — May 12, 2026 Committee of the Whole Report �rrrrrrra���% �. :mi:i III) `� County of Elgin Policy Manual Subject: Library Branch Construction and Interest -Free Loan Policy Policy Number: LIB-02 Date Approved: XXXX Date of Last Revision: September 22, 2015 (Approved February 16, 1999) SCOPE The following shall constitute the policy of the County of Elgin to be followed in considering any participation it will have in the leasing, renovation, relocation or expansion of library premises that form part of the Elgin County Library system. This policy applies to capital construction or relocation of library premises only. Operational issues and related costs pertaining to each facility are addressed in respective leases signed for each branch in the system. New, expanded or relocated branches will require a new operational lease based on the standard "Elgin County Library Municipal Library Lease". This policy, and any subsequent leases for library premises, applies only to locations owned or leased by local municipal partners or entities controlled by municipal partners. FACILITY SIZE The square footage of new, expanded or relocated library premises will adhere, wherever possible, to "Guidelines for Rural/Urban Public Library Systems", as amended from time to time by the Administrators of Rural and Urban Public Libraries of Ontario (ARUPLO) in which the Elgin County Library is a voting member. The following are current guidelines for the assignable size of library premises (excluding utility rooms): • Small Branches: Serving catchment areas of up to 5,000 population: minimum 2,500 sq. ft. to 5,000 sq. ft; or 1 sq. ft. per capita in the library's catchment area. • Medium Branches: Serving catchment areas of 5,000 to 10,000 population: minimum 5,000 sq. ft. to 10,000 sq. ft; or 1 sq. ft. per capita in the library's catchment area. • Large Branches: Serving catchment areas of 10,000 to 35,000 population: minimum 10,000 sq. ft. to 35,000 sq. ft.; or 1 sq. ft. per capita in the library's catchment area. Page 8 of 24 Appendix A — May 12, 2026 Committee of the Whole Report �rrrrrrra���% �. mire ElgInCourity LOCATION County of Elgin Policy Manual Local municipal partners should generally recommend the location for a library premise based on local planning considerations and synergies that may be achieved with other municipally- owned properties. Elgin County Council reserves the right to enter into leasing agreements for library premises based on powers ascribed to public library boards under the Public Libraries Act (R.S.O. 1990, c. P.44). AVAILABILITY OF INTEREST -FREE LOANS An Interest Free Loan from the County for renovation, relocation or expansion of library facilities is available to local municipal partners or entities controlled by local municipal partners (hence known as `TheMunicipality') up to the following amounts: Branch Category Maximum Interest -Free Loan Amount Small $125,000 Medium $250,000 Large $500,000 The loan must be repaid within ten years. The timing and availability of such a loan in any given year is subject to budgetary capacity. County Council reserves the right to deny such a loan for financial reasons. ACTIONS INITIATED BY THE MUNICIPALITY AND THE COUNTY 1.0 The Municipality shall determine if, in the opinion of their Council or Governing Board, there is a need for a new premise, expansion of a library premise or relocation of a library premise in the Elgin County Library system. A review of ARUPLO guidelines and input of the County's Director of Community and Cultural Services (or designate) is strongly encouraged in this process. 2.0 If the answer is yes, The Municipality shall issue a "Letter of Intent" to the County C.A.O. and Director of Community and Cultural Services, outlining the following information: Page 9 of 24 Appendix A — May 12, 2026 Committee of the Whole Report �rrrrrrra���% �. �mi�i III) `� County of Elgin Policy Manual 2.01 The address and description of the proposed premise / building to be constructed, expanded or relocated. 2.02 The approximate interior gross area of the new premise, expanded premise or relocated premise. 2.03 The approximate size of the area designated to be for library use. 2.04 Approximate loan requested from the County. 2.05 The proposed date to commence construction. 3.0 The County CAO and/or Director of Community and Cultural Services shall forward the proposal to County Council for endorsement which shall then be communicated back to The Municipality. 4.0 The Municipality, at its expense, shall cause plans and specification of the library premise to be prepared and sent to the Director of Community and Cultural Services who will forward to County Council for approval. The plans and specifications must include the information set out in this policy and, if required, may include a request for an Interest Free Loan. The plan and specifications must include: 4.01 Estimated cost of construction with construction timetables and approximate move -in date for library staff. 4.02 Confirmation of interior fittings required for library use (such as custom millwork). These fittings are to be included in construction costs and are to be paid by The municipality. Additional furnishings for library use are the responsibility of the County. 4.03 Request for an Interest Free Loan indicating when the loan will be required. The loan must be repaid within ten years of being issued. 4.04 The Director of Community and Cultural Services shall forward the proposal to County Council with a recommendation on acceptance. At such time, the Director shall recommend that a new "Elgin County Library Municipal Library Lease" be established, outlining the anticipated costs of said lease to the library's annual operating budget and establishing a deadline to execute the lease. Should Page 10 of 24 Appendix A — May 12, 2026 Committee of the Whole Report �rrrrrrra���% �. EIgInCourity `1County of Elgin Policy Manual an interest -free loan be requested and approved, the Director of Financial Services shall be authorized to issue a loan agreement up the maximum allowable in each category with terms stating that the loan is payable within a ten-year period upon execution and subject to the provision of actual invoices. County Council reserves the right to deny such a loan for financial reasons. 5.0 A loan agreement shall be established with terms satisfactory to both parties. Both parties shall be responsible for their own legal costs in the negotiation and/or drafting of any lease or loan agreem ent. 6.0 The Municipality shall be the owner or lessor of the land and/or prem ises. Adopted by County Council on February 16, 1999. Revised January 25, 2011, Revised March 13, 2012, Revised July 23, 2013, Revised September 22, 2015, Revised XXXX. Page 11 of 24 Appendix B — May 12, 2026 Committee of the Whole Report l,t am ElginG a em LIBRARY BRANCH CONSTRUCTION POLICY SCOPE The following shall constitute the policy of the County of Elgin to be followed in considering any participation it will have with any Municipality represented on County Council in the renovation, relocation or expansion of Library facilities anywhere in the County. This policy applies to capital construction or relocation of library facilities only. Operational issues and related costs pertaining to each facility are addressed in respective leases signed for each facility. New, expanded or relocated branches will require a new operational lease based on the standard "Elgin County Library Municipal Library Lease" with no exceptions. FACILITY SIZE The square footage of new, expanded or relocated library facilities will adhere, wherever possible, to "Guidelines for Rural/Urban Public Library Systems", as amended from time to time by the Administrators of Rural and Urban Public Libraries of Ontario (ARUPLO) in which the Elgin County Library is a voting member. The following are current guidelines for the assignable size of library facilities (excluding utility rooms): Small Branches: Branches serving catchment areas of 1,000-5,000 population: Minimum 2,500 sq. ft. or 1 sq. ft. per capita in the library's catchment area, whichever is greater-, Medium Branches: Branches serving catchment areas of 5,000-10,000 population: Minimum 5,000 sq. ft. or 1 sq. ft. per capita in the library's catchment area, whichever is greater-, Large Branches: Branches serving catchment areas of 10,000-35,000 population: Minimum 10,000 sq. ft. or 1 sq. ft. per capita in the library's catchment area, whichever is greater. LOCATION Locations on main thoroughfares or "downtown" locations in population centres will be preferred. Co -location with other community services will be preferred. County of IWllllllgliin 450 Sunset Drive St. Thomas, Ontario N5R 5V1 Canada Phone- 519-631-1460 www.elgin-county.on.ca Appendix B — May 12, 2026 Committee of the Whole Report l,tt,J r am a em ADDITIONAL CONSIDERATIONS In all cases, Municipalities shall strive to set the highest standards in terms of public accessibility, including compliance with provincial accessibility legislation. An Interest Free Loan from the County for renovation, relocation or expansion of library facilities is available up to the following amounts: Small branches, $100,000; Medium branches $200,000; Large branches, $400,000. The loan must be repaid within ten years. All requests for new libraries, expansion of libraries or relocation of libraries in the following year must be received by Council no later than December of each year for budgeting purposes. Any request received after December 31st will be considered for the following year. County Council reserves the right to deny such a loan for financial reasons. ACTIONS INITIATED BY THE MUNICIPALITY AND THE COUNTY 1.0 The Municipality shall determine if, in the opinion of their Council, there is a need for a new Library, expansion of a Library or a relocation of a Library. A review of ARUPLO guidelines and input of the County's Director of Community and Cultural Services (or designate) is strongly encouraged in this process. 2.0 If the answer is yes, the Municipality shall issue a "Letter of Intent" to the County C.A.O. and Director of Community and Cultural Services, outlining the following information: 2.01 The address and description of the proposed site and building to be constructed, expanded or relocated. 2.02 The approximate interior gross area of the new building, expanded building or relocated building. 2.03 The approximate size of the area designated to be for Library use. 2.04 Approximate loan requested from the County. 2.05 The proposed date to commence construction. 3.0 The Director of Community and Cultural Services shall forward the proposal to County Council. Cminty of IWllllllgliin 450 Sunset Drive St. Thomas, Ontario N5R 5V1 Canada Phone- 519-631-1460 www.elgin-county.on.ca Appendix B — May 12, 2026 Committee of the Whole Report l,tt,J r am a em 4.0 County Council shall consider the proposal (Letter of Intent) and notify the Municipality of its decision. If acceptable, and County Council determines that it wishes to participate in a new Library facility, expanded Library facility, or relocated Library facility, a Letter of Intent detailing the arrangements will be signed by the C.A.O. of the County of Elgin and the Municipality. 5.0 The Municipality, at its expense, shall cause plans and specification of the Library premises to be prepared and sent to the Director of Community and Cultural Services who will forward to County Council for approval. The plans and specifications must include the information set out in this policy and if required may include a request for an Interest Free Loan. The plan and specifications must include: 5.01 The address and description of the proposed site and building to be constructed, expanded or relocated building. 5.02 The interior gross area of the new building, expanded building or relocated building. 5.03 The size of the area designated to be for library use. 5.04 Construction timetables. 5.05 Approximate move in date for library staff. 5.06 Cost of construction or renovation including mechanicals. 5.07 Confirmation of interior fittings required for library use (such as custom millwork). These fittings are to be included in construction costs and are to be paid by the municipality. Additional furnishings for library use are the responsibility of the County. 5.08 Architect's fees (if applicable). 5.09 Interim financing cost (if applicable). 5.10 Source of funding for project. in 5.11 Request for an Interest Free Loan indicating when the loan45u nsIlrve required. The loan must be repaid within ten years of being issue& Thomas. Ontario N5R 5V1 Canada Phone- 519-631-1460 www.elgin-county.on.ca Appendix B — May 12, 2026 Committee of the Whole Report l,t ElginGr am a em 5.12 The Director of Community and Cultural Services shall forward the proposal to County Council with a recommendation on acceptance. At such time, the Director shall recommend that a new "Elgin County Library Municipal Library Lease" be established, outlining the anticipated costs of said lease to the library's annual operating budget and establishing a deadline to execute the lease. Should an interest -free loan be requested and approved, the Director of Financial Services shall be authorized to issue a loan agreement up the maximum allowable in each category with terms stating that the loan is payable within a ten year period upon execution and subject to the provision of actual invoices. County Council reserves the right to deny such a loan for financial reasons. 6.0 Both Parties shall be responsible for their own legal costs in the negotiation and/or drafting of any Lease or Loan Agreement. 7.0 The Municipality shall be the owner or leaser of the land and/or building. Adopted by County Council on February 16, 1999. Revised January 25, 2011, Revised March 13, 2012, Revised July 23, 2013, Revised September 22, 2015. County of IWllllllgliin 450 Sunset Drive St. Thomas, Ontario N5R 5V1 Canada Phone- 519-631-1460 www.elgin-county.on.ca /00 ,000 0 ElginCc),L,inty Report to Committee of the Whole From: Andrew Case, Solicitor Nicholas Loeb, Director of Legal Services Date: May 12, 2026 Subject: LEG 26-03 — Enterprise Risk Management Framework Recommendation(s): THAT the report titled "LEG 26-03 — Enterprise Risk Management Framework" from the Solicitor dated May 12, 2026 be received and filed; and THAT the Enterprise Risk Management Framework be adopted Introduction: This report recommends that the County adopt an enterprise risk management framework for Elgin County operations. At this time, the County does not have a formal risk management framework. Legal services recommends the adoption of an enterprise risk management framework that sets out the County's approach to risk, including its risk management, risk appetite, risk tolerance, and risk mitigation strategies. Background and Discussion: The purpose of the risk management framework is to establish a consistent, County- wide approach to risk management that ensures that decision -makers within the County are making informed choices, mitigating risk, and seizing opportunities. Risk management at the County, in its current form, is informed by a number of documents, policies, and guidelines. For example, the Strategic Plan of Council sets out strategic objectives that imply areas of comparatively higher and lower risk appetite. Similarly, the delegation of authority by-law gives an indication of the intention of Council to delegate different levels of risk -management responsibility to different levels of the organization. While these related policies serve their primary ends effectively, the County would benefit from a cohesive and comprehensive framework for risk management, as the County has no unified approach to communicating, training, or expectation -setting relating to risk management. Page 16 of 24 From a project -by -project perspective, the process of risk management is department - led. The impact of departmental initiatives on County -wide risk is not considered. Engagement outside of the `home department' is left to the initiative of that department. In deploying a County -wide approach to risk management, a cross-section of County experience and expertise will be engaged to better understand risk and to manage it more uniformly and collaboratively. The proposed framework employs five steps to risk management: 1. State objectives and establish context; 2. Identify risks; 3. Assess risks; 4. Plan and take action; and, 5. Monitor and report. The proposed policy elaborates upon each of these five steps and defines important concepts. The framework also establishes various levels of risk -related decision -making authority within the County. This allows each level of the organization to understand its role in protecting the County from undue risk. The framework sets out that it is the responsibility of the Executive Leadership Team to ensure that each staff member understands their role within the organization and within the risk management framework and has an appreciation for the expertise available through other corporate departments. Staff that grasp the policy well will work collaboratively across departments and will identify and seize opportunities to reduce risk. Once adopted, the Executive Leaderhhip Team, led by Legal Services, will deploy and communicate the risk management framework to staff. Financial Implications: None. Advancement of the Strategic Plan: The proposed risk management framework will advance Strategy 3: Service Excellence and Efficiency by contributing toward optimized business planning processes, including fostering collaboration across departments to improve transparency, reduce silos and drive outcomes. Local Municipal Partner Impact: None. Page 17 of 24 Communication Requirements: The Enterprise Risk Management Framework will initially be communicated to the management team. Managers will deploy it within their own teams. Upon request, Legal Services will provide support with communications and trainings. Conclusion: This report recommends that the County adopt an enterprise risk management framework to ensure a unified approach to risk management. All of which is Respectfully Submitted Andrew Case Solicitor Reviewed by: Nicholas Loeb Director of Legal Services Approved for Submission Blaine Parkin Chief Administrative Officer/Clerk Page 18 of 24 County of Elgin Enterprise Risk Management Framework Page 19 of 24 The County of Elgin has mandated and adopted principles and goals set out in legislation, by-law, and policy. Documents definingthe long-term goals and responsibilities of the County include the MunicipalAct, 2001, the Fixing Long -Term Care Act, 2021, and the County's Strategic Plan. A risk is anythingthat impedes or could impede the County from executing strategies or achieving its objective of delivering efficient, accessible, necessary services and fostering collaborative relationships to benefit residents, businesses and visitors in accordance with applicable law. Some, but not all risks can be measured quantitatively. This enterprise risk management policy sets out the County's approach to risk, including its Risk Management, Risk Appetite, Risk Tolerance, and Risk Mitigation strategies. Risk Management is a systematic approach to managing uncertainty by identifying, assessing, planning for, responding to, and monitoring and reporting risk issues or risk events. Risk Appetite describes the degree of riskthat the County iswillingto accrue in pursuit of a specific or general organizational goal. Risk Tolerance describes the maximal level of riskthat the County is willingto carry. The purpose of this enterprise risk management policy is to establish a consistent, County- wide approach to risk management that ensures that the County is, at all levels, making informed decisions, mitigating risks, and seizing opportunities. The County of Elgin employs a five -step Risk Management frameworkto help ensure that risks are properly identified, assessed, and mitigated. The steps are: 1. State objectives and establish context; 2. Identify risks; 3. Assess risks; 4. Plan and take action; and 5. Monitor and report. Each step is discussed in greater detail below. It is crucial that the application of the risk management framework be accompanied by deliberate and dedicated communication and consultation activities that appropriately Page 2of6 Page 20 of 24 include senior management and staff across the organization. The risk management responsibilities at different levels of the organization include: yyyyyyyyyyyyyyyyyyyyyy, rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr,»»»»>iii rrrrr �o „ , ...............i i ����� � • Set organizational goals and establish priorities Council • Define risktolerance • Define riskappetite, including through its delegation of authority by-law • Overall accountability • Report significant risks to Council • Implement Council's goals and priorities without exceeding organizational risktolerance Chief Administrative Officer ("CAO") 1 . Provide guidance and support to departments • Ensure that training and education are available as required • Facilitate and coordinate the reporting ..........., .................. of risks .................................... ...................................................... .................. .........; • Strategic planning and risk identification and analysis • Evaluate internal control design and effectiveness • Review key risks and report as appropriate to CAO • Establish and oversee internal controls in each corporate department • Ensure that identified risks within a Executive Leadership Team/Department department are communicated appropriately to other departments Heads • Ensure that other departments are appropriately included in risk assessment and decision -making • Set priorities for each department consistent with organizational priorities • Prepare and update internal controls • Refer items to CAO and/or Legal Department as appropriate • Identify where external expertise is required to fully identify and assess risk Page 3of6 Page 21 of 24 To enable staff to evaluate risks and identify opportunities, the ELT must ensure: 1. That staff understand the applicable law and policy that restricts the County from taking certain actions; 2. That staff understand the role of the County as defined by the Province in the MunicipalAct, 2001, the Fixing Long -Term Care Act, 2021, and other applicable legislation; 3. That each staff member understands her role within the organization and has an appreciation for the expertise available through other corporate departments; 4. That each staff member understands his role and responsibilities under this enterprise risk management policy; 5. That each department head is communicating the priorities set by Council and the CAO to staff; and 6. That every staff member feels empowered to raise questions and concerns that involve risk management and compliance to their department head. When identifying and assessing risks, different lenses must be applied. Risks falling into each of the following categories should always be assessed: 1. Strategic risks (potential negative impacts on high-level goals and objectives); 2. Project risks (potential negative impacts on or negative results of the defined objectives); Page 4of6 Page 22 of 24 3. Operations (potential negative impacts on the effective and efficient use of resources, including staff time); 4. Continuity (potential negative impacts on compliance, emergency management, contingency planning, etc.); 5. Competency (is further internal or external expertise required to fully identify and assess risk?) 6. Other risks (any risks not falling into one of the prior categories) Whenever a staff member is identifying risks, it is important that they consider each of the above and that they collaborate with other staff, including across departments, as appropriate. Staff time invested in risk identification should be proportional to the riskiness of a given project. For high -value and/or risky projects, it may also be appropriate to seek external expertise to identify risks. Risk assessment must be performed to assess both acute and chronic risks. Acute risks are one-time risks associated with an action, strategy, or opportunity. And acute risk may impede said action or may arise out of an action and impede other organizational goals. Chronic risks are ongoing risks that impede organizational goals. Where the assessed risk -level of an action, strategy, or opportunity falls within the risk appetite of the organization, staff should determine how to act by performing cost - benefit analysis. This is accomplished by expressingthe anticipated benefits of an action, strategy, or opportunity against the anticipated costs of the risks associated with that action. Staff must take care to consider both monetary and non -monetary benefits and risks when performingthis analysis. The first step in this analysis should be to determine whether there are any prohibitive risks. A prohibitive risk is an absolute riskwhich no benefit can overcome; examples of prohibitive risks include non-compliance and impermissible conflict of interest. Where no risk prohibits an action, then the action should be taken where it (1) provides benefits that outweigh its anticipated costs, and (2) the risks of the action do not exceed the risk appetite of the organization. Staff should be careful to ensure that: 1. the anticipated costs are calculated in a manner that accounts for the costs of risks that may not materialize: for example, if an action produces a $1,000.00 liability that will materialize 10% of the time that an action is taken, the present cost of that risk at the time of the assessment is $100.00 (i.e. $1,000.00 x 0.10). Page 5of6 Page 23 of 24 2. non -monetary costs are considered and weighed against organizational priorities: for example, where an action risks harm to organizational reputation. Where such risks cannot be clearly weighed against the benefits provided, the assessor should seek input from a higher level of the organization to determine the appropriate weighting of the priorities and risks. 3. the assessor appropriately assesses their own competence and collaborates with other departments. For example, where a contract is involved, the assessor must evaluate their own competence to identify and assess the legal risks associated with that contract; where elements of the contract are beyond the assessor's expertise, it is appropriate to involve the Legal Department. 4. the value of staff time is considered. Staff should not labour over a cost -benefit analysis where it is obvious that benefits outweigh risks or where the cost of the staff time used to perform the analysis greatly exceeds the risks and/or benefits of the proposed action. Further, staff should routinely identify and assess chronic risks and evaluate whether those risks can be mitigated. Where steps may be taken to mitigate a risk, staff should once again perform a cost -benefit analysis to determine whether the cost of mitigation exceeds the present cost of the risk, once again taking into account the four principles laid out above. If the cost of mitigation is less than the present cost of the risk or the risk poses unacceptable non -monetary costs, then the staff should mitigate that risk. Executive staff may also elect to prioritize risk mitigation where the organization has exceeded its risk tolerance. The most common forms of risk mitigation include abandoning risky projects, improving record -keeping, and acquiring insurance. Risk can never be eliminated; it can only be managed. Chronic risk and recurring acute risks should be monitored. Where possible, staff should establish systems to measure that risk to better quantify its effect on operations. These risks should be routinely reported to ensure ongoing risk management. Page 6of6 Page 24 of 24