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HomeMy WebLinkAboutCS 24/00. ;:- . G'� °� CONFIDENTIAL REPORT TO COUNCIL ' FROM: Gillis A. Paterson DATE: OcWber 23, 2000 Director, Corporatc Services & Treasurer Thomas J. Quinn REPORT IVIIMBER: CS24-00 Chief Administrative Officer SUB]ECf: Veridian Co�poration Vendian Connectim:s Inc. Veridian Eoergy Inc. RECOMMENDAT[ON: That Report No. CS 24-00 of the Chief Administrativc OfTcer and the Director, Corporate Services & Treasurer be received by Council and: 1. that thc mcrger oC thc Belleville Utilities Commission with Vcridian Cotporstion et al be approv�:d; 2. the attached By-Law to uuthorizc Ihe cxccution of a Mergcr Agrecment among the Corporation of the Ciry of Dclleville, the Corporotion of the Town of Ajax, the Corporation of thc Municipality of Clarington, thc Corporrtion of thc Ciry of Pickering, Veridian Connections Inc., Vcridian Corporation, Veridian Encrgy Ine. and three Successor Corporations to thc Electricily Retailing and Distribution Business of Bellevillc be read thme timcs and passed; 3, the Chief Administrative O(Ticer anJ thc Uircctor, Corporatc Services & Treazurer be nuthorizcJ to undertake any discuuions, negotiations ar amendmcnts to agreements necessary in ordcr to put into effectthe wishes of Council as exprcssed under these and previous Resolutions rcgarding this matter, 4. the Mayor and Clerk be authorized to exceutc nny agreements or amcndments to agrecments resulting from tho npproval granted under the Recommendations above; end, 5. the uppropriate authorities of the City of Pickerin3 be givcn authority to giva effect thcreto. ORIG[N: Resolution q226/99 - Report NCS 6UU� — Veridien Corporation — Execution of Documcnts Resolution #95/00 — Report #CS 14/00 — Veridian Corporation AUTHORTfY: The Energy Competition Act (Bill 35), R.S.O. 1999, as amended The ElecUical Act, R.S.O. 1998, as amended The Municipal Act, R.S.Q. 1990, aa ammded Regulations Thereunder . .. � . _._. . , . _,. .�,� ... >. ._ . , . , ., . .. ' � Repoct W Council CS 2400 Date: October 33, 2000 Subject: Vaidian Corporation Pege 2 Vetidien Connxtions Inc. Veridian Energy Inc. FINANCIAL IMPLICATIONS: Cumntly Veridian is a corporation with a Sharo Capital of approximately 364.3 miilion and Promissory Notes to the shareholders (Ajax, Clarington and Pickering) of 553.0 million. Total Notes and Shares is S1 I73 million. Of these amounts Pickering holds Promissory Notes in the amount of approximatoly 525.1 million and Shans in the amount of approximately 530.4 million, for a toml interest of 555.5 miilion represrnting 47.4 per cent ownership. Upon successful completion of the merger, the City of Belleville wiil receive Promissory Nota totalling approximately 57.8 miilion, increasing the total of such Notcs to approximalely 560.8 million. Bellevillc will also meive shares totalling approximately 59.5 million, increasing the total equity of Veridian to approximately 573.8 million. That total Notes and Shares would now be 5134.6 million of which Pickering would havc a 41.2 per cent interest. Ajax's sham would decrease from 36.8 to 32.2 per cent; Clarington's from I5.8 to 13J per crnt; und, Belleville would own 12.8 per cent, excluding rounding errors. In summary, Pickcring currcntly owns 47.4 per cent (S55.5 million) of Veridian (S 117.3 million). lt will own 41.2 per cent (;55.5 million) of the "new" Veridian (S 134.6 million). EXECUTIVE SUMMARY: Not applicable BACKGROUND: In the intercsts of brevity and clarity, rcfercncc should bc made to the attachments for further information. ATTACHMENTS: 1. Correspondence from Veridian dated October 13, 2000 re Belleville Merger Negotiations 2. Corrcspondcnce from Veridian Corporation dated October 16, 2000 ro Rate lmpacls oC Acquisitions 3. By-Law 5769/00 Prepured/ApprovedlEndorsed By: Approved/Endorsed By: � ' Gillis A. Paterson, Th mas J. Qui Director, Corporate Services & Treasurer Chief Administrative OfFicer GAP:vw Copy. Chief Administrative Officer Clerk Recommrnded for the consideration of Pickering • Ciry Council � N ,I � Thoma� J. ui Chi Admini tivc Offic _ :: • : ,, • ;.,�, ' - � :: . .. ,. . .__ .. , .._._ ,��,._ . , :�N ... . .,, s _. ,... ...�. . . � , ' ATTACHMENT#LTOREPORT#.C�J�-o0 � MEMORANDUlO�i VERi DIAN CORPORATION � '1'0: Mayota Atthun, H�mrc wd Narieh a Vcridian Hoatd of Directon Tom Quina F:nm: John Wienma Rick Puisotiu Praok Wu l�atc: October 13, 2000 GH Ynucrnon Gccg ICirkbride Maric Morano Rc: Bellevfllc Mer�cr NcQodndom )im Mnson, Gco�gc Vnn l�yk, Axel Stuck, Davc Cluk and myedf attcndcJ a 5-houc mccring wich Mayor Roe� McDou6nll, CouncDlor Hrian Smith ind City Man�gcc Koman Macriuk and thcir coniulunt C;corge Kedard oE Ddoine Ac '1'oudm. T6e intcnt of the meeting was to cliscune to acquisIaoa/megec opdons with reganl to 11cUcvillc Utilides as follows: • An offct by Vcridian to purcha�e IIelleville Uulitics for f16 milli�n (na appcoved by thc B.[GNWC COtDmILtCC OFt}7C }SOat�; An offrr to nurge with Dellcville Utilitcs (as pec lhcis rcqucet). This :cqucst had p:eviowly been diecusied wirh thc Mayon �nd permi�eloa was �ivea [o exploce an cqniry poeition to Ciry of Bellevillc ia the amounc of f16 million widi onc acat oa die Vericiian Connceuons Boan1 hut no rcprcecnption on the othec Douds. Teatative Agreement on Mugcr It a�a� cleaz fiom the ou[acc cha� the Ciry of HcOcvilic wunted a mergu but thnc the tesms wece nnt aeecpt�blc tn thc City. Thcy wcrc not intetatcd in aa eqairy posiuon withouc:c�tc�cnadon on thc Doacd. '1'helr ehoieu ue to �ell to Hydcn Une at n aubatantially ktigher price oe to paracipate ia Vcridinn for much lowcc conniJccation but re a contiaviag player in thc indusuy. 1Llnc�c than simply cut thc discusxioro eho[t wc aaked the Clty of Dcllevillc to clarify what a �uccennful mcrger would look L7ce and we clawed back iubstantully 8om thcre ro s minimum poeirioa that bo[h putiee agcced wae fair and that wc agtcc to �ell m our zeapccdve dccislon mak�t. The tnitative ngrecment on a pweibk merget provides cxeellmt value for Veridian Shuebolders and .wc rccommrnd is co �he Vesidi,u Bo�rd oE llin�rora, thc Siwceholden Rcpreunmd�ce a,i�l thcie Respecdve Counclls foe appmvaL The highlight of thia agceemmt is thnt Belleville pnys a;2.1 million pn�mium to ccflcct thc goodwill [liac Vuidian ha� alnady crcatcd Putdng i[ anod�cc way 11eUevilte Uliliticy' bouk price, which would nocmaUy be the equity contribudon, u mdueed by �2.1 million. :�.: i:��•rHn��ati y��na��,.��..�.�itin,�,��t.u�uu u� n.� ��� ��anhb4 na4• Dat� Octo6er 13, 2000 Page 2 M��rano rr Hcll�wlllc MecAci Ne�ot3stiona Bmployee Ro-deploymrnt Thc agcccmcnt aLso pcovidce for a rc•dcploymcnt bq the City of IIellcville of all e:a�s staff La a mduction fmm 48 to 32. Mauy of thc 48 nnployces arc paruiliy cicctric und Iratrivlly watcc cmpinyccy. Kringing thc numbcc 3own to 32 tcflern the cuuent eEficienry with whkh Vcridian is operating. Veridiao vcill eeleet 20 employeee for tl�e IIelleville loation and 12 foz thc Ajaz locadou'and nc� bnlnncu of thc cmrloycca �nd thoec ehooaing not ta go to Aj�x w�ll bc offacd cmployment with thc City of Delleville oz oEfeced �epuadoa inan[ives. It should be noced that if no cmpbyces chootc ro go to Ajax ouc linbiliry could bc 20 employee� fot [he loal openrioa. 'lhe City of IIellcvillc will set uide a nserve of $500,000 Eoi all residual employee lixbilities. '1'o thc cxtent that thc tctu�l cosu arc lces �6nn $500,000 thc aavin6n will bc sharcd. Thc Ciiq of licllcvi�ds s�vinge will be npplied to Eurther equity in Vuidiaa. To the extent that the employce linb�7ldes arc },matcr thaa SS00,000 thcy will bc thc rospoiuibility of �hc City of Bcllcvilla BcUevllle Intcmet ln Vcr{dinn 'ihc considenaon to [he Ciry of IIellcville would bo i17•25 million in ehan:n in VcriJian C:ucporodun and ia promiesory notce in Vcridian Cn�,or+rion and Vcridien Conneetions In�, on die eame basis and u� the saroe ra[io� as apNlied to the other shuoholdece. T7�e City of }iclleville wnuld alao rcccive a ptcpaid inteccyt eaeh paymcnt in ehc amount of fl•7L5 million ns p:cpaid intereet oa its promia:ory naccs at thc eamc iatuat nnd with the enme tecros w thot proviJcJ to thc uthcr sharrholdr.rs. GoodwUl Pamium m Veridiaa S6aceholdera Thie ie an exceptional value for Veridian Shaeehaldecs. BepeviIle Utilities' 1999 book value u$21.66 millirnt and thcy acc iccciviag m iaterest of 517.25 millioa Cuacnt Vcridian ahucholdcn� rcccivcd an lntcrcet bucd on thc Wll buok valuc. Thcrc uc rosons %r this discount bclow book valuc whidi ntc cxpLuncd as follo�vs: �999 Bcllcvillc Uulides Dook Vskuc ; 21.660 million J.cu 1?xpectcd OperrtingLosa in 2000• 1.300 millic�n Lesr Parimat�l Ix�al/C:onsulting tecs co Close .t50 milGon Less Pmployce Re-Jeployment I.iability .500 million Lcss Book Vahte of OEfice and Sctvix Centte�" ,400 million I.css C;oodwill/Ptcmium to curzcnt Shazcholdcn 2.OL0 million Nct intcrcnt fat Hcllcvilln f 17.250 million ' Thc operating lnsi foc 200Q is morc likrly to bc s 800,000 whIch would indicxtc anochec ;500.000 in goodadll to Vcridinn Sharcholdcn :�w�� t� hk�u�.�� Na� ��ynrn,.�.\��.11,J4•U I�,i�u �L,a, iovw0.d►n.�4�r. D'�� Oerobcc 13, 2000 M�n r�' �''�� M t IQc ti9doaz 1'age 3 " The sezviec ccttttc would aot bc aansfcnui to Virldi�n bu� inetcad it would bc lcaecJ at a fixcd nte of f30,000 pct qmt for 10 qcars wlrh an opdon w tcucw Eoz anot6er 10 ycare, '!hc following chact iad[cucs t6c nca, cquiry etmcwrc afccr the trantaction. SharehoWcr Veddiaa Connccdone Notc Notc �e��� Total Yo Ownership S�°ni Jatcrat Pukcria6 7.095000 S• Sm1U Smt Ajax S.SSOOpQ ��'97�� 30.383397 55.452397 14.060ppp 23,7g5307 43.395307 41.2 n�llevillcn 2.555000 5,966000 32.2 ]0.14G49G 1B.A67496 2.206000 5.588000 9.456000 17.25pQpp 13'� 'r��al f7.22pp00 43.588000 73.771200 134.565200 12•8 100.0 5. Grrvemancc '1]�e �mvernanec i�aue u cecs�inly che biggcar. To be an equiry Pl�9�r. Hcllcville Utilities a:�nts mpresenqdon ou tl�c Board Whot a,iu ��aaay� �cd to i� thc following: • Thc Ciry of Iletleville would h�vc 1 of thc 13 senta on thc aew Board of Vcridinn Corporation aud l of d�e 4 membery un anch of the new Doards of Vcri�ian Connecpoas Inc. and Veri�ian 1?ncrgyTuc. •�c City oFDelleville would h�vc nu rc�teecntation on the 6 membcc lixcwtivc Commitcec, Thc aigni6cance of �hc IIoard may bc in thc cya of thc bcholdca Thc 1Soard of the parem eoq�oc�J�n mech onee every quartec, wberpi the laceeurive Committee, wliich mectc mouthlv- makea most of the detision.�, '!hc vocing pattczns oa chc parcnt boatcl end at t6c �hueholdcr Icvc] uc not cxrcctai to bc afFectcd in any significant way. Summary lmpacte 1'hc followin& comparatiyc etatutiu ate also helpful in c�m�aci�g �hc impact op Delleville Utilidcs un Vcridian (1999 dua is used with 2ppp pmjccri�na for licllerflle): Can arator Veridlan Executtve VedAl�a C.�rp % �CllCVilIC % Tntal Directon Vetidian Co�p 6 ] 00.0 0 p 12 82.3 1 7,7 � Deemed Equlry s 1]7,312,000 77,2 13 Accual Book Equiry 117,31 ppp ;17,250,000 12,8 � 134,565,0p0 C��mc�e � �.7 19,310,000 14.1 736,G22,000 Flectrical Load� 3101M�D�U 81.6 15,900 18.4 86,900 7G.5 95 MW 23S 405 MW rywlU'19t� �p� �����N�\1n�urrii,yu1141h�dA1111ry1OV���.�u.�unlWJin�bc . Uatc: Ocwba 13, 2000 Nas� 4 Mcmo re: Dellevillc MetRee NcROtindons - � � 1ha rddidonal catrwncq and lo�d Imm Uxbwigc, Drxk �nd Port Iiope hnm: becn tdded ia. 7. Why tlile Tenmtive Agreemmt ehoulJ be Conaidcrcd for Acceptwce • Prom tho ptcecdiug ehart it u cicaz th�t the 6aandall�vctage, the customer base and the lor,d baae far ouhveigh the eacdSec in �yuity and govemance �'1'hc Vcridian Uook cquiry �oiag into the amnlgamarion was $1923/eustomcc. 11u Bcll�willc book equity pei customct on thc mct�;ct it i1085/customer. • Adding acw Vcrid'nn �caidcaiiil euacomcn at thc mar�in �csulu in A cost of g4000 to i4500 �er ewcomec und a rvbatantial put oE this cost will noa• have to be bom by ehe eotpocation a+ a t�sult of chc OEII D'umbution Codc9 acw cmphasis on dcbt finnndng ncw dcvetopmcnt eoata Thu wil! ineccase cetums but will aleo have a big impact on retee. 'iiic Hcllcvillc eustomer� sad the rcduu�l dcvctopmcn� prasum in Iicllwillc will pmvide a bmadec eu�tomet bace from whieh co finance devclopmcna In the ahott te:m a� well the cxccllent commercLll ba�e is expcacd to excic downward pcessute on our eurrcnt ntc npplieadon • IIellevillc ia stratcgie to VcridiAn'� goat of cetablishing n viable utility with 100,000 cuytomers. lhis beeomea eve� moce Lnportant In view of the receac announcement of thc Mxtkham, Vaughan, Atuora aad Newmackct that they will bc mcrging thciz utiGucs in o utility of 150,000 curtomrn, �hc �cue of Hydco Mieeiss;�uga • A urility of 100,000 customcn mxy very well become thc minimum aize to cnpturc economics of ernle and markcpng advw�ge compatcd to the o�her utilides in the C�TA aveh u Toronto, Missisaauga aad now York • Hdlcviqc de6nee thc boundarice foc Veridian'a operxung uca and scta thc stagc fos futum acquisitinns/mersea with Uahaw�, Whltby, Cobourg, Pctctborough nnd liingstoa su acll w d:^. uquieition of FIyJro Anc's urban eustomcra in Courtiec, Uxbtidgc nnd Hopc'1'owmhip • Mecgcn and aequisiriom iaunsc th� uldmuc value and it u an incvi�able evoludon in the buaiaesa wodd. Tt�oec who don't keep pace gec lefe behind and thcir v:�ue dccrcaeca. • Undl Novcmbce 7, thete i a winQ�w of opportunity. Wc will no longer havc thc cempetirive advanagc vis a vis private industry afuc Novcmber 7. S. Pro6leme with the Merger • Tho polidcal will to give up n bit nF coatrol foz a lot of addidonal municipnl vwluc. :pol':\\'1!NI1111.\ 3�q\Aapr+�knr114ii,�il4•\I.II�tlO M� m� lul7ronl•J,k�v�.. . 1)aec: Oaobcr �3, 2000 ragc s Mcn�o cc: IIcllcvilic MccKct Ne�o�rion� • Thc Ability ro mobflizc C:oundl eupport in an extremcly ehort time framc (1 wcck) 9. Recommcndadona • That t6e Mergcr with Helleville Utilldes as outtiaed in tlic Confidenrial Mcmornndum dated Octobcr 14, Z000 be app:wcd at the B�ard of DIrccto�e Meedng schcdulcJ tor 12:30 p.m, on Octobct 19'� Thut the Pm(den[ be authocizcd tu begin immediatety all the legal wosk to meet the Novcmber 7'� deadline fot filing wlth t6c OEB, and '1'6at thc merger be reeommcndcd to thc Shueholdecs • That thc Shaceholdece support thc Merger with Bellevllle CJdlidce ae outlined in the Coalidcndal Memotandum dated Octobct 14� 20U0 and d�at thls be ratificd by confemace call immcdiatcly following the Boud of Dlrectoca Meetiag on Octobcr 19°. • T6at the Shsucholdere e6nte the recommendadon on an tnfatmal bvoin wlth membere ot Co�mcil and gather eupport [ot the Metgu and t6et die Mugcc bc dcalt with at n Couacl( mceang on Oetobec 2i"' leaving ewo wccke so compkce thc appltcpdone w thc Ontado Energy Boud, � . :W:I�.��I.IIIIIIi!�.y/A11GY�uu1MMM�NIAVA1f�I.II�lII1N�mIki:Junlalifndw - . . . . . . �, • ATTACHMENT#�TOREPORT#�i�-oo ��'� MEMORANDUM VE�IDIAN Coq+on�r�oN To: John �crsma, Presidcnt and CEO c: Vesidian Connecdons • Eoard oi Direeroa Erom: Dacid Clark, �ee Presidcnt Cocporrtc :�ain . Date: Ocrobec 16, Z000 Rc: Rate Impacts of Aequi�idoas 1�c have �bauc 93°'a of she informarion «quiad ro mmpsve nca under diitcrcntacqui�ition acenuios. I hsve rnoush oEthe infoemarion m pro.ide an zppco�mace an:ilrais of she impact oi eaeh uolitp uqui�ition. 'The valuee rtuy change aGghdp u we ��I in che misaing informadon. Prior ro xquuiriona, Veridian would require a 728°.i avenge inaeose amongnll classes to achieve s 9.88? e rate oEmtvm. F�eh �equieition/mecgec of l'xbridge, Po[t Hopc, Brocl: and HeUeville successively reduces this required inccase. �rh all acquisiuon/mergen ;he rcquired �ver.�e incrrasc drop� ro l 1.2° e. Fursher, this 11? bo is on a lower average «venue brse. The following nble compues the impatt on three dit%rent banchmark cusmmen: Retail Ftaas Rec�uired to Aesidencal Gen Sar <SOkCV Gen Secv >SOl•W Achi�vc a 9.88:: Rate of 1000 50 tW 500 kW Reaun kwh/Mo�th SOaO kWh/Month I5000 kWh/h(onth ajar, Cluin n, Pickerin 393.85 Sd55,85 $12,562G1 �c uicc U:�brid e 593.71 5�157.6d S12 537.�7 ic ire Poct FIO e 593.25 Sd51.27 312,�91.08 :1e irc Brocl; 393.�5 SJ41.17 31 545.85 �[ wich Bepeville $9286 3d35.72 51 OA7.05 �'Gith the eccepdon of Seock ail acquisidons have deueved �he esrirtu�ed recW ra�es required ro. achiece a 9.86% race oEremm. � Respcttfuliy submittcd, 1 � �avi Clark, Vic Praident Corporace AfFairs dc9ewm.ol � .. . . . • � ATTACHMENTq.�TOaEPORTNr,i,.?�f 'oo �jgS�QjtAT10N OF THE CITY OF PICKERING �Y-LAW NO. 5769/00 Bcing a by-law to authorizo the execution of a merger agreement among the Corporalion of the City of Belleville, the Corporation of tha Town of Ajax, the Cocporation of lhe Municipality of Ciarington, the Corporation of Ihe City oC Pickering, Veridian Connections Inc., Veridian Cocporation, Veridian Energy Inc. and tluee Successor Corporations to thc Electricity Retailing and Distribution Business of Helleville. WHEREAS lhe Electricrly Ac�, 1998 (Ontario) was passed by the Legislature oF Ontario and given Royal Assent on October 30, 1998; AND WHEREAS Section l44 of Uie Elec�rrcity Act, /998 (Onlnrio) provides that aller Novembcr 7, 2000, no municipal corporation shail generate, transmit, retail or distribute electricity exccpt Uuough one or moro co�porations incorpomtcd under the Bi�siness Corpora�ions �tct (Onlazio); AND WHEREAS pursunnt ta Subsection 142(1) oC Ihe Eleclricity Act, /998 (Ontario), a municipal corporation may cause one or more Diainess Corpora�ia�s Ac! (Ontario) corporations to be inwrporated for the purpose of generating, transmitting, retailing or distributing electricity, AND WHEREAS pursuant to Substttion 142(3) oC thc Eleclricrty Act, 1998 (Ontario), two ar more municipul co�porations may cause onc or motc Biuiness Corporafiwu Ac� (Onlnrio) corporntions to be incorporated for thc purposes sct out in Subscclion 142(I) of thc Elecrricity Ac1. 1998 (Ontario); AND WHEREAS pursuant to Sectian 142 of the Electricity Acf, 1998 (Ontario), The Corpor�lion of the City of Pickcring (the "City'�, The Corporetion of the Town of Ajax and The Corporntion of the Municipality of Clerington (collectively the "Municipalities'� inccrporuted euch of Veridian Corporntion, Veridinn Connections Inc. und Vcridian Energy Inc.(collectively the "Vcridian Group") to continuc lhe elcctricity dislribution nnd retuiling businesses of lhe hydro-electric commissions of thc Municipalilies and pursuant to Subsection 145(1) of the Electriciry Act, 1998 (Ontario), transferred, by transfer by-laws of cach of lhe Municipalities, employees, asscts and liabilities to the Veridian Croup, effective as oCNovcmber I, 1999; . AND WHEREAS pursuant to Subsection 142(1), The Corporation of the City of Belleville ("Belleville � will inco�porate Uvee successor co�porations (thc "Belleville Successor Corporations'� to continue the clectricity dislribution und retailing businessu (the "Electricity Businesses'� oC Belleville and will transfer assets and liabililies of the Electricity Businesses to the Belleville Successor Co�pomlions in accordunce with a trnnsfer by-Inw approved and passcd by Bclleville puisut+nf lo Subsection 145(1) of the Electriclry Ac1, 1998 (Ontario); AND WHEREAS lhe Ivlunicipalitics and Belleville wish lo merge thc Electricity Busincsses (to be transferred to the Belleville Successor Corporations) with lhc businesscs of lhe Veridinn Group upon and aubjcct to the tertns and condidons set out in a merger agrcement among Bclleville, the Municipalities, the Veridian Group and lhe Belleville Successor Co�potations; NOW THEREFORE, THS COUNCIL OF THB CORPORATION OF THS Cfl'Y OF PICKERING ENACfS AS FOLLOWS: . . _ �: . . ., ., _ ' . ._ . . . .. . . . ., ., �} � � a ;} k' r- . Y' . � . -..�.. . ..� .�. �. ,.•. . . .- , . _ .. . � 1 �;Tho mergor agieement arnong Bellovillc, ihe Municipalitiea, the Veridien Group and lhe . 'Bolloville Succeasor Corporations aubatantielly in the 7ortn and on lhe terme of the drelt c merger agrecmenfpresentat lo Council (tho "Merger AgrcemenP�, with such alleratione, additions, amendmenta or deletions thcreto es the Mayor and lhe Clerk execuGng the same may approve, their cxecution lhereof being conclusive proof of lheir approval, is hereby suthorized snd approved. 2. The Ciry and each of Ihe corporadons of lhe Veridien Group is hereby authorized to complete the ttansactions wnlemplatal by lhc Merger Agreement. 3. The Mayor and the Clerk are hcroby authorized and directed, for and on behalf of the City to executc and deliver the Merger Agreeement with such alterations, nciditions amendments or deletions thereto as they may approve, the execudon thereof by such individuals being conclusive evidence of such approval and to do all such acts and things and to execute and deliver all such other documents, confidentialiry ugreements, instnunenls and writings as may be necessary or desuable to give efCect to the provisions of this by-law. BY-LAW reud a first, sccond and thint time and finally passed this 23rd day of October, 2000. Wnyne Arihurs, Mayor Bnicc Taylor, Clerk , 4, '�. '� ,. , r: F � i, � ' f .` ( 4 i � t � � .,. )!� � � 3 �� t � 1 ± f e {y � �:. r : ..fi �i � fi� :�: . ..,f:� ..... .... . . ... ......— {.. �'f'3.. —:a ,.�_,5....� _ . `}.i� , ..�.r _. '."��..�... . . , , ,. .