Guide to Service Agreements - FCM

• Which legal considerations will need
to be taken into account during the
negotiation of the service agreements
(e.g., infrastructure ownership)
• Ways in which infrastructure and services
could be organized
• Any risks or potential negative impacts
to either party
• The benefits
Who pays for the feasibility study?
Both communities should share the costs of
an expert to perform the feasibility study, or
they should divide the cost proportionate to
perceived benefit of the service agreement
or proportionate to population. Municipalities
and First Nations have unique options to
receive funding and grants to undertake a
feasibility study, and both parties should
explore those options thoroughly before
proceeding with their study. Several organizations
offer grants and cost-sharing opportunities
for feasibility studies. For more
information about funding opportunities,
please see Unit 4, Chapter 1: Considerations
for your service agreement.
1.2 Environmental assessment
An environmental assessment (EA) is an
important part of the planning stages for
a potential infrastructure project. This section
outlines the purpose of an environmental
assessment and the relevant legislation and
describes how environmental assessments
fit into project delivery when working
with AANDC.
Purpose
An environmental assessment is a legislated
planning and evaluation process that is completed
prior to a development project. Environmental
assessments consider the potential
environmental and socio-economic impacts of
a project before it begins to ensure that any
potential negative impacts of the project can
be adequately mitigated. If the project goes
ahead, information gathered through the environmental
assessment process can be used to
guide changes to the project’s design that may
help minimize impacts on the environment
and people.
Legislation
An environmental assessment is triggered
according to the Canadian Environmental
Assessment Act (CEAA) or, for projects located
in Yukon, under the Yukon Environmental and
Socio-economic Assessment Act (YESAA).
Generally speaking, an environmental assessment
is necessary whenever a physical infrastructure
project is proposed (e.g., a new
water treatment system) with the exception
of projects listed on the Exclusion List Regulations
of CEAA. For more detailed information
on environmental assessment requirements,
please see the respective Acts.
UNIT 3
Service Agreement Toolkit – 59