7. CITY OF OTTAWA/RIDEAU VALLEY CONSERVATION
AUTHORITY SEPTIC SYSTEM SERVICE AGREEMENT

entente de service de fosses septiques entre la Ville d’OTTAWA
et l’office de protection de la nature de la vallée RIDEAU

COMMITTEE RECOMMENDATIONS

That Council approve:

1. The renewal of the Septic System Service Agreement between the City of Ottawa and the Rideau Valley Conservation Area effective January 1, 2010 to December 31, 2015, in the form attached as Document 1, and;

2. The delegation of authority to the General Manager of Planning and Growth Management to execute the agreement in the form attached as Document 1 and any required renewals or extensions of the contract between the City of Ottawa and the Rideau Valley Conservation Authority for the enforcement of Part 8 of the Ontario Building Code.

RECOMMANDATIONS DU COMITÉ

Que le Conseil approuve :

1. Le renouvellement de l’entente de service de fosses septiques passée entre la Ville d’Ottawa et l’Office de protection de la nature de la vallée Rideau, valable du 1^er janvier 2010 au 31 décembre 2015, et;

2. La délégation de pouvoirs au directeur général d’Urbanisme et Gestion de la croissance lui permettant d’appliquer l’entente jointe en tant que Document 1 ainsi que tout renouvellement ou prolongement requis du contrat passé entre la Ville d’Ottawa et l’Office de protection de la nature de la vallée Rideau et visant l’application de la Partie 8 du Code du bâtiment de l’Ontario.

Documentation

1. Deputy City Manager’s Report, Infrastructure Services and Community Sustainability dated 13 May 2010 (ACS2010-ICS-PGM-0103).

2. Extract of Draft Minutes, Agriculture and Rural Affairs Committee, 27 May 2010.

Report to/Rapport au :

Agriculture and Rural Affairs Committee

Comité de l'agriculture et des affaires rurales

and Council / et au Conseil

13 May 2010 / le 13 mai 2010

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/

Directrice municipale adjointe, Infrastructure Services and Community Sustainability/Services d 'infrastructure et Viabilité des collectivités

Contact Person/Personne ressource : Arlene Gregoire , Chief Building Official

Planning and Growth Management/Urbanisme et Gestion de la croissance

(613) 580-2424 x 41425, arlene.gregoire@ottawa.ca

City-wide / À l'échelle de la Ville

Ref N°: ACS2010-ICS-PGM-0103

SUBJECT:	CITY OF OTTAWA/RIDEAU VALLEY CONSERVATION AUTHORITY SEPTIC SYSTEM SERVICE AGREEMENT

OBJET :	entente de service de fosses septiques entre la Ville d’OTTAWA et l’office de protection de la nature de la vallée RIDEAU

REPORT RECOMMENDATIONS

That the Agriculture and Rural Affairs Committee recommend Council approve:

RECOMMANDATIONS DU RAPPORT

Que le Comité de l’agriculture et des affaires rurales recommande au Conseil d’approuver ce qui suit :

BACKGROUND

From 1977 to 1998, responsibility for regulating septic systems in most areas of the former Region of Ottawa-Carleton, fell under the Environmental Protection Act, and was enforced by either the conservation authorities or by consulting firms on behalf of the municipalities. The Services Improvement Act, 1997, moved the regulations respecting smaller self-contained private systems, with a capacity of less than 10,000 litres per day, to Part 8 of the Ontario Building Code. Pursuant to subsection 6.2(2) of the Building Code Act, municipalities were authorized to administer and enforce the regulations with their own resources or by appointing a conservation authority or board of health to undertake the reviews and inspections of new septic systems.

Prior to amalgamation, a number of the former municipalities entered into an agreement with the RVCA to regulate the construction of new septic systems. In 2001, in the interest of continuing with this efficient and effective method of delivering this service, the City entered into an agreement with the RVCA to continue the arrangement.

On March 6, 2003, City Council approved the delegation of authority to the General Manager of Development Services to enter into an agreement between the City of Ottawa and the Rideau Valley Conservation Authority (RVCA) for the enforcement of Part 8 of the Ontario Building Code relating to septic systems for the period of March 6, 2003 to December 31, 2006. The RVCA undertook this responsibility on behalf of the three Conservation Authorities that fall within the City of Ottawa; Mississippi Valley Conservation, Rideau Valley Conservation Authority and South Nation Conservation. In addition to this approval, Council approved the basic terms and conditions of the agreement, which formed the framework for the level of service provided by the RVCA in fulfilling the terms of the agreement. In 2006, the existing agreement was extended beyond its original term.

The RVCA, through its Ottawa Septic Systems Office (OSSO), oversees the review of permit applications for septic permits of self-contained private systems with a capacity of less than 10,000 litres per day within the legislated timeframes, issues permits, undertakes the inspections for determining Code compliance, enforces non-compliance; and where required, commences court action. In addition, the RVCA provides Code advisory services to the industry and applicants, access to septic systems permit records and responds to complaints related to new septic systems.

Below is a summary of the volume of services rendered by the RVCA over the last three years. The information is tracked by the RVCA using the City’s MAP data information system and is accessible to the City of Ottawa. By tracking the status of the septic systems permits on the City’s MAP system, staff are able to access the information in support of various land use/ planning, building permit and pool enclosure applications. Other City operations are able to also access the information: 311, Infrastructure Approvals, etc.

Activity Summary	2007	2008	2009
On-site Sewage Permits	730	693	589
Renovation Permits	75	68	72
File Searches**	320	332	634
Complaint Investigations	30	44	44
Court Proceedings	3	2	6

** For compliance reports for legal transactions, such as the purchase of a property.

DISCUSSION

The Building Code Services Branch has reviewed the level of service, customer satisfaction reports and performance statistics provided by the RVCA. As a result of the review, it is recommended the City continue to outsource septic approvals and inspection services. By continuing to appoint the RVCA as the “principal authority” for the enforcement of Part 8 of the Ontario Building Code regarding septic systems permits and inspections, the City will continue to exercise a viable alternate service delivery option - one that allows the City to divert all related exposure to liability and one that ensures additional costs are avoided.

The RVCA is the centre of expertise for the enforcement of regulations under Part 8 of the Ontario Building Code and related issues pertaining to septic systems. It is able to provide a centralized, consistent, continuous service for all residents irrespective of the location of the septic systems installation. The geographical territory comprising of Ottawa falls within three watersheds: the Rideau Valley, the South Nation River and the Mississippi Valley. Prior to the establishment of the program under OSSO, property owners and contractors were required to submit applications to three different agencies.

The RVCA, as a steward of the environment and representative of local conservation authority interests, is best able to deliver a septic systems program that protects the environment and the three watersheds of the City of Ottawa. A large number of municipalities rely on the conservation authorities to enforce Part 8 of the Ontario Building Code Act.

If the City were to assume the role as ‘principal authority’ for Part 8, the current point of service delivery model would have to be reconfigured to address the need for additional staff and facilities to deliver the septic systems permit and inspections program at all Client Service Centres. Thus, by appointing the RVCA, the City does not assume any risk of liability and avoids all costs associated with the administration and enforcement of this Part of the Building Codes. All financial elements associated with the delivery of septic services under Part 8 of the Ontario Building Code are the sole responsibility of the RVCA.

Terms of Agreement

As set out in the proposed agreement attached as Document 1 to this report, the RVCA, through OSSO, will provide services based on the following terms and conditions:

· The RVCA (in partnership with Mississippi Valley Conservation and South Nation Conservation) is responsible for the enforcement of Part 8 of the Ontario Building Code relating to the review and approval of the construction of septic systems in the City of Ottawa.

· The RVCA will provide a septic systems program which comprises of the following functions in accordance with the Building Code Act and OBC:

o The review and approval of septic systems permit applications;

o The inspection of construction of septic systems;

o The issuance of occupancy permits and orders where there is non-compliance;

o The commencement of prosecution and court actions;

o The provision of information on Code compliance and abatement actions;

o Code advisory services;

o The investigation and resolution of complaints;

o Records management;

o Performance monitoring and reporting; and,

o Collection of fees to fully cost-recover the program.

· The RVCA is responsible for staffing the program with qualified, certified and experienced individuals to meet the workload demands, including peak periods. The RVCA will appoint Sewage System Inspectors pursuant to the Ontario Building Code.

· The RVCA is legally responsible and accountable for the decisions and work of the OSSO, from which the City is completely indemnified and insured.

· The RVCA, through OSSO, is required to provide an over-the-counter, drop-in service to landowners at its office at 3889 Rideau Valley Drive. The Sewage Systems Inspectors will also receive applications from installers on site.

· The RVCA is responsible for maintaining an electronic database of its reviews, approval and inspection activities, including digital photography of septic system installations and renovations at each inspection. The electronic database is integrated into the City’s MAP data information system, so that all records relating to a particular installation are immediately available to City staff working in the building permit approval and inspection processes.

· Any adjustments to the fee structure must follow the provisions set out in the Ontario Building Code.

New provisions:

· The RVCA will meet with the rural Councillors once annually, and invite Mississippi Valley Conservation and South Nation River Conservation to attend, to brief Councillors on new initiatives or program changes, and to discuss service delivery and legislative issues.

· The RVCA will make available at their service counter a client satisfaction survey to provide clients the opportunity to comment on the quality of front-line service.

· The Building Code Services Branch will conduct annual customer satisfaction surveys to all registered designers and installers working with the RVCA.

The City of Ottawa will provide annual reporting tools to the RVCA for the purpose of reporting on service delivery standards, performance measurement indicators and client satisfaction measures.

· The RVCA will provide a copy of their annual report to Building Code Services Branch for information. The report will include a breakdown of the following activities: on-site sewage applications and permits for new construction, renovation permits, file searches, complaint investigations and court proceedings and the status of their reserve fund. It should be noted that the annual report is made public on the RVCA website.

· In addition, the annual report will include performance measures; more specifically, service response times in relation to constituent and councillor inquiries.

· The City of Ottawa’s Public Health Branch will undertake file searches on behalf of the RVCA for septic systems permits issued prior to 1976.

Client Initiatives

As a requirement of the existing agreement between the City of Ottawa and the RVCA, clients complete a survey rating their satisfaction with the service rendered by the OSSO on a scale of 1 (very dissatisfied) to 5 (very satisfied). Clients rate the level of customer service, timeliness, payment convenience, value for money and overall satisfaction. Completed surveys for 2006 to 2009 indicate that satisfaction continues to be high for this program. The average survey response rated the RVCA service as 4.2 out of 5, while overall the program showed that:

· 56 per cent of respondents indicated they were Very Satisfied (average rating of 4.5 or better out of 5), and

· 93 per cent of all respondents indicating they were Satisfied or Very Satisfied with the program (average rating of 3 or better out of 5).

Though the average survey response score indicates a very satisfied service experience, the volume of surveys received is not a strong relative sample of the overall business. The average response rate for the surveys from 2006-2009 was less than five per cent of the total permit volume issued over that period. Therefore, staff recommended the RVCA consider a different approach to establish a more valid benchmark in assessing the level of customer service the RVCA is providing the property owners and contractors.

With this in mind, the RVCA will commence to conduct client satisfaction surveys on the counter service they provide. This will serve as an opportunity for clients to comment on the quality of front-line service provided by the OSSO. In addition, the Building Code Services Branch will annually survey the permit holders, mostly registered designers and installers, to confirm the level of satisfaction with the service provided in the field by OSSO. The two-pronged approach to surveying client satisfaction will allow for the City and RVCA to better evaluate the level of service provided by the OSSO.

The City of Ottawa provides details of the agreement with the RVCA, along with links to the RVCA website on Ottawa.ca. Links to the RVCA website can be found on the landing pages of Rural Connections, Water Services and Building Code Services.

Performance Measurement and Service Standards

The RVCA will continue to report on septic systems services, including on-site sewage system permits, renovation permits, file searches, complaint investigations and court proceedings. These performance indicators will be captured by volume in MAP and reported on annually by the RVCA. The Building Code Services Branch will assist the RVCA in developing additional annual reporting capabilities. The development of unified reporting techniques will ensure that the RVCA and the City are reporting on septic systems information in the same manner.

New service standards for councillor and citizen inquiries have been developed and added to the program. Historically, the RVCA tracked volumes of complaint investigations in MAP for statistical reporting only. The new initiative will result in the implementation of the RFS (Request for Service) application in MAP that will enable the RVCA to track and report on response times to citizen and councillor inquiries. The establishment of service standards will ensure citizens and councillors receive timely responses to septic system-related RFSs. The initiative will also enable RVCA and OSSO to track and report on its turnaround times in reviewing septic system permits similar to how the Building Code Services Branch is tracking and reporting on its performance against the mandatory turnaround times for the review of building permit applications.

ENVIRONMENTAL IMPLICATIONS

Ottawa Public Health has created an RFS function in MAP to capture health complaints regarding sewage systems. These complaints will be addressed by Ottawa Public Health pursuant to the Health Protection and Promotion Act and then forwarded to the RVCA for further investigation under Part 8 of the Ontario Building Code, and for purposes of maintaining statistics.

The RVCA, as a steward of the environment, is best able to deliver a septic systems program that protects the environment and watershed of the City of Ottawa.

RURAL IMPLICATIONS

The RVCA will continue to provide septic systems services to the rural areas city-wide.

CONSULTATION

This report was prepared in consultation with the Rideau Valley Conservation Authority and the Legal Services Branch. The conditions for indemnification and risk avoidance were updated based on advice of the Office of the City Solicitor.

COMMENTS BY THE WARD COUNCILLOR(S)

N/A

LEGAL/RISK MANAGEMENT IMPLICATIONS

There are no legal/risk management impediments to implementing any of the recommendations in this report.

CITY STRATEGIC PLAN

N/A

TECHNICAL IMPLICATIONS

N/A

FINANCIAL IMPLICATIONS

By continuing to appoint the RVCA as the “principal authority” for the enforcement of Part 8 of the Ontario Building Code regarding septic systems permits and inspections, the City will continue to exercise a viable alternate service delivery option, one that ensures additional costs to the City are avoided. RVCA will be responsible for the collection of fees to fully cost recover the program and the establishment of a Reserve Fund sufficient to sustain the operating expenses of the Ottawa Septic System Office (OSSO) in respect to activities specifically related to the enforcement of Part 8 of the Ontario Building Code.

SUPPORTING DOCUMENTATION

Document 1 Proposed Septic System Agreement between the City of Ottawa and the Rideau Valley Conservation Authority

DISPOSITION

General Manager, Planning and Growth Management, in consultation with City Clerk and Solicitor Department, to execute agreement.

DOCUMENT 1

PROPOSED SEPTIC SYSTEM AGREEMENT BETWEEN

THE CITY OF OTTAWA AND THE RIDEAU VALLEY

CONSERVATION AUTHORITY

SEWAGE SYSTEM MANAGEMENT AGREEMENT

This Agreement dated as of the 1^st day of January, 2010

BETWEEN:

RIDEAU VALLEY CONSERVATION AUTHORITY

(hereinafter called the “Conservation Authority”)

OF THE FIRST PART

- AND -

THE CITY OF OTTAWA

(hereinafter called the “Municipality”)

OF THE SECOND PART

WHEREAS this Agreement is being entered into pursuant to the Ontario Building Code Act, 1992, S.O 1992, c.23, subsection 6.2(2) (hereinafter called “the Act”), which states, a municipality that is not a party to an agreement under subsection (1) may enter into an agreement with a board of health or a conservation authority having jurisdiction in the municipality for the enforcement of the provisions of this Act and the Ontario Building Code related to sewage systems.

NOW THEREFORE IN CONSIDERATION of the mutual covenants herein contained, the parties hereto hereby agree as follows:

ARTICLE ONE

GENERAL

Section 1.01 Application:

This Agreement shall be applicable to all lands within the municipality serviced by private sewage systems.

Section 1.02 Duties:

The Conservation Authority shall carry out its duties hereunder in accordance with the Act and the Ontario Building Code as amended, this Agreement and any other legislation contemplated hereunder.

The Rideau Valley Conservation Authority, as appointed by the City of Ottawa, shall carry out all Ontario Building Code duties pertaining to Part 8 of the Ontario Building Code, in accordance with all administrative duties and responsibilities outlined in said legislation.

ARTICLE TWO

DEFINITIONS

Section 2.01 of this Agreement,

(i) “Sewage System” means - (a) a chemical toilet, an incinerating toilet, a recirculating toilet, a self-contained portable toilet and all forms of privy including a portable privy, an earth pit privy, a pail privy, a privy vault and a composting toilet system,

(b) a greywater system,

(d) a leaching bed system, or

(e) a system that requires or uses a holding tank for the retention of hauled sewage at the site where it is produced before its collection by a hauled sewage system, where these,

(f) have a design capacity of 10,000 litres per day or less,

(g) have, in total, a design capacity of 10,000 litres per day or less, where more than one of these are located on a lot or parcel of land, and

(h) are located wholly within the boundaries of the lot or parcel of land on which is located the building or buildings they serve.

(ii) “Inspector” means an inspector appointed under Section 6.2 (3) of the Building Code Act, 1992 as amended.

ARTICLE THREE

SERVICES OF THE CONSERVATION AUTHORITY

Section 3.01 Services:

The Conservation Authority shall provide the following services in relation to the Lands.

(i) Inspection of properties prior to the issuance of a permit for the construction, installation, establishment, enlargement, extension or alteration of a Sewage System.

(ii) Following the issuance of a permit, inspection and re-inspection where necessary, of Sewage System installations to ascertain compliance with the permit and other requirements under the Act or the Ontario Building Code.

(iii) Issue permits in accordance with the minimum standards set out in the Act and the Ontario Building Code relating to Sewage Systems.

(iv) Receive and process applications and requests related to activities listed in paragraphs (i) through (iii) of section 3.01.

(v) Meet with the rural Councillors once annually and invite Mississippi Valley Conservation and South Nation River to attend, to brief the Councillors on new initiatives or program changes, and to discuss service delivery and legislative issues and as requested, attend meetings of Municipal Council and their committees to discuss matters relating to any provisions of the Act or the Ontario Building Code relating to Sewage Systems.

(vi) Maintain adequate records of all documents and other materials used in performing the duties required under this Agreement. This includes documenting Sewage System permits, renovation permits, files searches, customer complaints, malfunctioning Sewage Systems and Councillor inquiries in the Municipality’s data information system. Currently the City of Ottawa utilizes the Municipal Autodesk Partnership (MAP) system for tracking and reporting purposes.

(vii) Upon reasonable notice by the Municipality, provide reasonable access to the Municipality of all records kept under subsection 3.01 (vi) within 5 days of such notice.

(viii) Provide information and expertise, where required, to the Municipality, its stakeholders and constituents regarding provisions of the Act and the Ontario Building Code relating to Sewage Systems.

(ix) Investigate complaints and malfunctioning Sewage Systems, undertake compliance counselling and preparation of reports for abatement action as it relates to existing and proposed Sewage Systems.

(x) Any other matters relating to the administration or enforcement of the Act or the Ontario Building Code relating to Sewage Systems.

(xi) Distribute a client satisfaction survey as part of the Septic Systems application process, to provide the opportunity for the homeowner/installer to make comment directly to the Municipality regarding the service provided by the Conservation Authority.

(xii) In addition to the annual reporting provision set out in the Ontario Building Act and Ontario Building Code, the Conservation Authority, will prepare and provide a report capturing the breakdown of services, including but not limited to, service standards, requests for service, client satisfaction results and response times to public and Councillor inquiries.

ARTICLE FOUR

FEES

Section 4.01 Collection of Fees:

The Conservation Authority shall collect and retain all fees payable by any person for work performed by the Conservation Authority hereunder as compensation for its services provided hereunder and all persons required to pay any such fee shall pay the fee to the Conservation Authority. The Authority agrees that compensation for the services outlined in Article Three - “Services of the Conservation Authority” shall be provided solely from the fees collected pursuant to Section 4.01 and the Municipality shall not be required to pay any compensation to the Authority for the services.

Section 4.02 Reserve Fund:

The Conservation Authority shall maintain a reserve fund that is sufficient to sustain the operating expenses of the Ottawa Septic System Office (OSSO) in respect to activities specifically related to the enforcement of Part 8 of the Ontario Building Code. The reserve fund shall be established from the collection of fees outlined in Section 4.01.

ARTICLE FIVE

INSPECTORS

Section 5.01 Appointment:

The Board of Directors of the Conservation Authority shall be responsible for the appointment of all Inspectors and shall issue a certificate of appointment bearing his or her signature, or a facsimile to it, to each Inspector appointed by the Conservation Authority.

ARTICLE SIX

LIABILITIES AND INSURANCE

Section 6.01 Indemnification of the Conservation Authority:

The Conservation Authority, its directors, officers and employees shall indemnify and save harmless the Municipality from any and all claims, demands, causes of action, loss, costs or damages that the Municipality may suffer, incur, or be liable for, resulting from the performance of the Conservation Authority, its directors, officers and employees in the execution of the work and obligations described under this Agreement.

Section 6.02 Insurance:

The Conservation Authority shall provide and maintain for the term of this Agreement Commercial/Comprehensive General Liability insurance subject to limits of not less than Five Million Dollars ($5,000,000.00) inclusive per occurrence for bodily injury, death and damage to property including loss of use thereof. Such insurance shall include, but is not limited to bodily injury and property damage including loss of use; personal injury; contractual liability; premises, property & operations; non-owned automobile; broad form property damage; owners & contractors protective; occurrence property damage; products & completed operations; employees as Additional Insured(s); contingent employers liability; cross liability and severability of interest clause.

The Conservation Authority shall provide and maintain for the term of this Agreement Professional Liability insurance subject to limits of not less than an annual aggregate of $2 million. Such insurance shall provide coverage for all errors and omissions made by the Conservation Authority, its officers, directors and employees in regard to the obligations of the Conservation Authority under this Agreement. Such insurance shall be kept in force for the term of the Agreement and for two (2) years following the conclusion of services provided under this Agreement.

Such insurance shall be in the name of the Conservation Authority and shall name the Municipality as an additional insured thereunder. This insurance shall be non-contributing with and apply as primary and not as excess of any insurance available to the City.

The Conservation Authority shall provide and maintain for the term of the Agreement liability insurance in respect to owned or leased licensed motor vehicles subject to a limit of $5 million inclusive per occurrence for bodily injury, death and damage to property including loss of use thereof.

Such insurance policies shall contain an endorsement to provide the City with not less than thirty (30) days written notice of cancellation or of a material change that would diminish coverage.

Evidence of insurance satisfactory to the City of Ottawa shall be provided by the Conservation Authority prior to the commencement of work. The Conservation Authority shall annually provide the City with Certificate(s) of Insurance confirming that the said insurance policies are in good standing.

ARTICLE SEVEN

TERM AND TERMINATION OF AGREEMENT

Section 7.01 Term:

This Agreement shall be in force for a period of sixty (60) months, retroactively commencing January 1, 2010 and ending December 31st, 2015.

Section 7.02 Termination:

This Agreement may be terminated by either party on not less than 180 days written notice. Upon termination of this Agreement, the Conservation Authority shall provide the Municipality complete copies of all files and records of the Conservation Authority relating to the exercise of the delegated authority pursuant to this Agreement. The obligation of the Conservation Authority to indemnify the Municipality pursuant to Section 6.01 of this Agreement shall continue in full force and effect after the termination of this Agreement with respect to all actions or omissions of the Conservation Authority in executing the work under this Agreement prior to the date of termination.

ARTICLE EIGHT

MISCELLANEOUS

Section 8.01 Preamble:

The preamble hereto shall be deemed to form an integral part hereof.

Section 8.02 Gender, etc.:

Whenever the singular form is used in this Agreement and when required by the context, the same shall include the plural, the plural shall include the singular and the masculine gender shall include the feminine and neuter genders.

Section 8.03 Amendments:

This Agreement shall not be changed, modified, terminated or discharged in whole or in part except by instrument in writing signed by the parties hereto, or their respective successors or permitted assigns, or otherwise as provided herein.

Section 8.05 Notices:

Any notices, report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is expressly accepted by the party to whom it is given and shall be given by being delivered or mailed to the following addresses of the parties respectively:

(a) To the Conservation Authority:

Rideau Valley Conservation Authority

3889 Rideau Valley Drive, PO Box 599

Manotick, Ontario

K4M 1A5

Attention: General Manager

(b) To the Municipality:

The City of Ottawa

101 Centrepointe Drive, 2nd Floor

Nepean, Ontario

K2J 3G8

Attention: Chief Building Official

Any notice, report or other written communication, if delivered, shall be deemed to have been given or made on the date on which it was delivered to any employee of such party, on the date of receipt of facsimile transmission, or if mailed, postage prepaid, shall be deemed to have been given or made on the third business day following the date on which it was mailed (unless at the time of mailing or within forty-eight hours thereof there shall be a strike, interruption of lock-out in the Canadian Postal Service, in which case service shall be by way of delivery only). Either party may at any time give notice in writing to the other party of the change of its address for the purpose of this Section.

Section 8.06 Headings:

The section heading hereof have been inserted for the convenience of reference only and shall not be constructed to affect the meaning, construction or effect of this Agreement.

Section 8.07 Governing Law:

The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the Province of Ontario as at the time in effect.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first written above.