Document 4

Annual Commodity Price Hedging Report as per BY-LAW NO. 2008 – 426

April 20, 2010

• The 2009 budget price target for diesel fuel was $0.82 per liter. With the implementation of supply price fixing agreements and Bank Swap Agreements actual costs in 2009 averaged $0.81 per liter for a $0.01 per liter savings.

To secure the 2009 budget target, Supply entered into a fixed price agreement with Sunoco to fix prices at $0.82 per liter for 75% of the anticipated volume in 2009. By mid year an improving economy put upward pressure on fuel costs and Treasury, in conjunction with Supply and Transit, entered a Bank Swap Agreement with CIBC to fix prices for an additional 5% of the anticipated diesel fuel volume for 2009. The additional price lock-in was executed by entering a Bank Swap Agreements to securing 2.5 million liters @ an average price of $0.84.

Treasury, in conjunction with Supply and Transit, also entered into Bank Swap Agreements to secure prices for 39 million liters in 2010 @ an average price of $0.87 per liter, 14.5 million liters in 2011 @ an average price of $0.91 per liter and one million liters in 2012 @ an average price of $0.91 per liter. Future dated Bank Swap held by the City had a mark-to-market value of $812,291 in the City’s favor as at December 31, 2010.

• All agreements entered during 2009 are consistent with the City’s statement of policies and goals relating to the use of Financial Agreements to address commodity pricing and costs.

• Statement of Transactions:

Transaction Number	Counterparty .	liters/month (1000's)	Fixed Price	Maturity schedule	Total Months	Total Liters (1,000's)
2009-1	CIBC	1,000	0.80	Jan 10 - Mar 10	3	3,000
2009-2	RBC	1,000	0.85	Feb 10 - Jan 11	12	12,000
2009-3	CIBC	1,000	0.87	Feb 10 - Jan 11	12	12,000
2009-4	RBC	1,000	0.91	May 10 - Jan 11	9	9,000
2009-5	RBC	500	0.84	Aug 09 - Jan 10	6	3,000
2009-6	RBC	500	0.88	Feb 10 - Jan 11	12	6,000
2009-7	CIBC	1,000	0.92	Feb 11 - Jan 12	12	12,000