Agenda Contents

Minutes
Budget Steering Committee



    Meeting Type:Budget
    Meeting ID:2018-04
    Meeting Date:Mon January 29, 2018 04:00 PM
    Location:Council Chambers, 360 Pitt Street, Cornwall, Ontario
    Chair:CN=Denis Carr/OU=CITYHALL/O=CityCornwall
    Prepared By:Cindy Delgreco, Financial & Risk Management Coordinator


      


    CALL TO ORDER
    Chair, Councillor Carr called the meeting to order at 4:12 pm. A quorum was present.


    ROLL CALL
    Council Committee Members:
    Claude McIntosh, Councillor
    Elaine MacDonald, Councillor (arrived at 4:20pm)
    Leslie O'Shaughnessy, Mayor (left at 7:45pm)
    Maurice Dupelle, Councillor (left at 6:40pm)
    Bernadette Clement, Councillor
    Mark A. MacDonald, Councillor

    André Rivette, Councillor
    Carilyne Hébert, Councillor
    Justin Towndale, Councillor

    David Murphy, Councillor
    Denis Carr, Councillor

    Administration:
    Maureen Adams, Chief Administrative Officer
    Tracey Bailey, General Manager, Financial Services
    Paul Scrimshaw, Accounting Manager/Deputy Treasurer
    Justin Cordell, Budget and Cash Coordinator
    John St Marseille, General Manager, Infrastructure and Municipal Works
    Mark Boileau, General Manager, Economic Development, Planning, Parks and Recreation

    Pierre Voisine, Fire Chief
    Bruce Donig, Deputy Fire Chief
    Michael Fawthrop, Division Manager, Infrastructure Planning
    Carl Goodwin, Division Manager, Environmental Services
    Danielle Watson, Supervisor of Waste Management
    Cindy Delgreco, Financial & Risk Management Coordinator


    ADOPTION OF THE AGENDA - ADDITIONS OR DELETIONS

    As there were no additions or deletions, the Agenda was approved as presented.

    Moved By: Councillor Rivette
    Seconded By: Mayor O'Shaugnessy

    Motion: Carried


    DISCLOSURE OF INTEREST

    Councillor Towndale declared a conflict of interest with Seaway Food Festival – Beer Fest as he sits on the Board of Directors.


    ADOPTION OF THE MINUTES


    1 January 25, 2018 Budget Steering Committee Meeting
    Click for detail --> January 25, 2018 Budget Steering Committee Meeting

    Moved By: Councillor Rivette
    Seconded By: Councillor Clement

    Motion: Carried



    PRESENTATIONS

    Infrastructure Planning

    John St. Marseille, General Manager - Infrastructure Municipal Works and Michael Fawthrop, Division Manager - Infrastructure Planning presented the Infrastructure Planning 2018 budget submission.

    • The Infrastructure Planning Division provides engineering expertise, capital planning, project design and construction management for the City’s linear infrastructure. This infrastructure includes 393 km of sewers, 298 km of watermains, 272 km of roadway, 189 km of sidewalks and 25 bridges/large culverts. Infrastructure Planning revenues are primarily derived from design and construction management fees charged to capital projects.
    • Question was asked as to where we are in the process with regards to Development Charges (DC's). Ms. Bailey provided the update that the Notice of Public Meeting was been posted January 27th and the meeting will take place March 5, 2018 at which point the next steps will be determined.
    • The increase in Salaries and Benefits are related to incremental and contractual obligations and Bill 148 minimum wage increase (approx $5,000 for students). There is no change in staffing levels.
    • Financial and Transfers remain the same as 2017 with a $100,000 contribution to reserves for the Marleau Ave extension. The City must acquire 4 additional residential properties (currently own 8 properties) prior to construction.
    • Discussion took place around the residential properties; were they all rented, would they be sold and moved or torn down. Mr. Fawthrop indicated that all units are currently rented and that it's the intention to tender for Construction Services when the project is ready to commence. Construction Services will provide the contractor with the responsibility to move or tear down the buildings.

    Capital Projects - Infrastructure Planning

    Mr. Fawthrop provided an overview of the proposed road capital spending for 2018. Each year an inventory of all municipal roads and their condition including underground infrastructure is undertaken to determine which road works are required.

    Transportation Capacity

    Nick Kaneb Dr. Extension - Marleau to Tenth ($1,800,000).
    This project will provide for the extension of Nick Kaneb Drive from Marleau Avenue northerly to the Tenth Street/Virginia Drive intersection and provide an additional north-south link for all modes of travel in the eastern portion of the City. The extension will provide critical arterial road relief and redundancy for McConnell Avenue/Ninth Street intersection, as well as provide emergency vehicle more expeditious access to the business park. The traffic warrants on Marleau Avenue and McConnell Avenue have identified this as a key link.

    Lemay St. Extension - MW Yard to East Limits ($540,000). This project will include the reconstruction of Lemay St. from St. Michel to Ontario St. and the construction of Lemay St. through the proposed road allowance from the west property limits to the east property limits of the MW Yard (known as Phase 2) improving east/west connectivity as well as access to the MW Yard. This stage is critical for access to the new 2018 Salt Storage Shed.

    Brookdale Ave. - Traffic Circle Environmental Assessment ($250,000) The EA will provide a review of the potential design alternatives for the traffic circle. The design alternatives will include the appearance of the traffic as the show piece at the entrance of the City. Industry experts do not recommend traffic circles and round-a-bouts in the same City as it is deemed to be problematic for drivers. Upon completion of the EA an application would be started with Connecting Link funding (provides up to 90% funding) for the project.

    HoTC/Centretown

    Water St./Montreal Rd. Intersections ($30,000) at Pitt St and Sydney St will receive streetscape revitalization improvement treatments similar to the Water St. and Marlborough St. pedestrian crossing.

    Asphalt Resurfacing

    Various City Streets ($3,000,000), totaling 4.1 km. Mr. Fawthrop explained the Pavement Condition Rating (PCR) and how the City has a current overall average rating of 69%. Mayor O'Shaugnessy requested a report that would show how many kilometers of roads fall in each category. It was also asked if a list of streets could be included in future budget submissions.

    Structure Improvements

    Boundary/CN Overpass EA ($300,000). The City is proposing to complete an Environmental Assessment (EA) for the Boundary Rd. and CNR railway crossing as a requirement of the Ministry of Environment and Climate Change (MOECC). The development of Boundary Rd., as well as further development of the Industrial Park, will increase vehicular traffic at the crossing thus expediting the need for the grade separation. Funding for the project will be Transport Canada at 62.5% and CN at 18.5%. The City has approached South Glengarry for the remaining balance to split 50/50.

    Water St. Retaining Wall, Adolphus to Gloucester ($600,000). The retaining wall was constructed in 1974 and structure inspections indicate it requires extensive rehabilitation or reconstuction. The latest inspection identified: concrete spalling and delamination, corroded rebar, large vertical cracks, separation between main wall and secondary walls at multiple driveway entrances and a substandard railing system. Mr. Fawthrop explained the issues with the concrete largely relate to the use of reactive concrete which is no longer used. The deteriorating wall could pose a risk to the public if not repaired.

    Culvert Replacement - McConnell Ave. to South Branch at Raisin River ($866,000). The bi-annual structure inspection identified the 3 culverts, located at McConnell Ave. at the South Branch of the Raisin River crossing, which have reached the end of their lifespan and are in need of replacement. The project will include the removal of the existing culverts and guide rail system, installation of a suitably sized concrete box culvert, the restoration of the embankments, the reinstatement of the roadway and the installation of an approved guiderail system. Councillor Rivette inquired whether the Raisin Region Conservation Authority would assist in funding on the culvert replacement project. Mr. Fawthrop will follow-up with the Raisin Region Conservation Authority. Question was asked if McConnell Ave. would be completely closed during this replacement as there was concern with traffic flow due to other projects that will close or reduce lanes. Mr. Fawthrop indicated that they would certainly be coordinating with the other projects.

    Small Diameter Culvert Replacement ($75,000). The City has several locations in which small diameter culverts, ranging from 400mm diameter to 900mm diameter, are in need of replacement. These culverts are typically located in road corridors that have been constructed to rural road standards with roadside ditches and culverts. The replacement of these culverts will occur in various locations throughout the City as identified by Public Works for replacement.

    Active Transportation

    The Bicycle and Pedestrian Master Plan completed by IBI & the City in 2010 recommended an annual investment on projects related to Active Transportation, such as Bicycle and Pedestrian related infrastructure.

    Projects for 2018 have been identified as follows:

    Sidewalk Infrastructure ($200,000) includes new sidewalks Grant Ave.
    (Blakely to Riverdale), Charles St. (Riverdale to St. Anne's School), Twelfth St. (Dunkirk to Sydney), Pitt St. (Tollgate to Plaza), and Cline Ave. (Cumberland to Meadowvale).

    Bicycle Infrastructure ($240,000) includes new bike lanes on Boundary Rd. (SCM Way to Service Rd.) and Campbell St. (Second to Marleau). OMCC funding of $375,000 was successful, awaiting approval on which potential projects will proceed. Councillor Murphy asked if there was any data for cycle traffic. Mr. Fawthrop confirmed the numbers are available and he would provide this information.

    Waste Management

    John St. Marseille, General Manager - Infrastructure Municipal Works, Carl Goodwin, Division Manager - Environmental Services and Danielle Watson, Supervisor of Waste Management presented the Waste Management 2018 budget submission.
    • Salaries and Benefits represent no change in staffing levels; increase relates to incremental and contractual obligations
    • Purchase and Goods increase is related to an increase in utility costs.
    • Services and Rents increase is related to an increase in contracted services related to the operation of the landfill.
    • In 2017, tipping fees were set at $74 per tonne, with an adjustment on July 1st to $75 per tonne. A mid year review will be conducted in 2018 to determine if another adjustment is required.
    • Mayor O'Shaugnessy asked for an update on where we stand in the discussions with Akwesasne and taking on their curbside waste. Mr. St. Marseille and Ms. Watson spoke to this question; Environmental Screening report is done and notice needed to be posted for 60 days (60 days ends March 8th), met with Akwesasne to discuss the City by-law and to ensure that they agree to follow the City rules, which went well. Process is moving forward at this point.
    • Councillor Hebert asked what the City's annual waste/recycle tonnage is. Ms. Watson provided the 2017 residential diversion rate of 31.5% (approx. 6,700 ton) and a residential and IC&I combined diversion rate of 41.8% (approx. 33,000 ton).
    • Increase in revenue is related to an increase in provincial funding for recycling and waste diversion. There is also an increase in revenue related to user fees for recycling processing services for outlining townships.

    Capital Projects - Waste Management
    • Landfill Leachate and Gas Collection Systems Upgrades ($1,290,000) includes the construction of a new flare building, flare, and related equipment in a new location in order to be compliant with TSSA regulations. The relocation of the system and increase in efficiency makes the project suitable for application for additional funding under the provinces Cap and Trade program. Design is presently underway, construction would begin in 2018. The project also includes the extension of the methane collection system into an area that has been filled to final elevations. Design has been submitted to the MOE for expansion approval and implementation in 2018.
    • Landfill Site - Public Service Area Infrastructure Upgrades ($50,000), includes improvements to public accessibility of the Landfill Site and compliance with ECA requirements. This project includes the following; Replacement of signage at landfill entrance with current information and information required under ECA, upgrade of old scalehouse software to increase accuracy with billing and site security, improve current scalehouse infrastructure (support columns and lighting), repair and repave pedestrian walkways and entrances and to purchase an outbound scale security camera to improve site surveillance and security.
    • Diversion Facilities - Equipment and Building Upgrades ($50,000), includes a new floor section in the Material Recovery Facility. The baler which takes recyclables and compacts them into bales for shipping, requires mechanical work in order to maintain its functionality. Councillor Murphy questioned why the floor wasn't replaced after the fire. Ms. Watson noted that insurance deemed the floor was not damaged by the fire.

    Non-Departmental

    Tracey Bailey, General Manager, Financial Services and Treasurer presented the Non-Departmental 2018 budget submission. Non-departmental includes all financial transactions for the Coproration.
    • Financial and Transfers has an increase of 19.89% or $1,375,431 which is mainly attributed to Contributions to Reserves. The overall operating and capital budget has an increase of 5.06%
    • Contributions to Reserves 2018 Submission include:
    - Federal Gas Tax $2,951,947 (2017: $2,817,757)
    - Tax Stabilization $ 500,000 (2017: $500,000)
    - Interest Income $ 200,000 (2017: $200,000)
    - Capital Levy $ 155,331
    - Life Cycle Costing $ 150,000
    - HoTC Non Refundable TIG $ 46,000 (2017: $35,000)
    - HoTC Capital Outlay repayment $ 32,250
    - Brownfields Non Refundable TIG $ 493,471
    - Brownfields Repayment $ 285,129
    - Downtown Wall Repair $ 55,000
    • Revenues include;
    - Payments in Lieu (PILs) are related to supplementary taxation and
    growth; a net increase of $57,925.
    - OMPF Funding budgeted at $3,854,100 (92% of the 2017 approved
    grants).

    - Fees, and Service Charges: Investment Income at $500,000 in 2018
    (same as 2017) and Interest on Taxes at $540,000 (same as 2017).

    COMMUNICATIONS

    1 Seaway Food Festival - Summer Beer Fest
    Having declared a conflict of interest, Councillor Towndale left the room during the discussion.

    Councillor Clement had requested this item be moved to communication for further discussion, however she noted further discussion was not required and requested the item be removed from discussion.

    Councillor Towndale returned to the ongoing meeting.

    2 Public Information Coordinator

    At the meeting of January 11, 2018 a discussion took place on the Public Information Co-ordinator position and potential savings should the position not be filled or deferred for a number of months.

    Discussion took place around the Public Information Co-ordinator. The CAO spoke to the recruitment and responsibilities of this position.

    At the request of Councillor Clement this item was asked to be included for discussion at the next meeting.

    Motion that Administration prepare a report on the Public Information Coordinator recruitment process; the impact of this position and the impact on delaying the recruitment process including what is currently happening as the position sits vacant.

    Moved By: Councillor Clement
    Seconded By: Councillor Hebert
    Motion: Carried
    3 Water and Wastewater - Capital Budget and Backlog

    During discussions of the 2018 Water and Wastewater Budget, Councillor Rivette requested further information regarding the current linear infrastructure backlog and the 10-year capital plan.

    Tracey Bailey, General Manager, Financial Services and Treasurer and John St. Marseille, General Manager - Infrastructure Municipal Works spoke to the report that outlined the Water and Wastewater capital budget and backlog.

    Ms. Bailey reviewed with the Committee the information presented through the LTFP ($82 M) and information provided in the 10 year capital plan ($69 M). The capital works included in the LTFP and in the 10 year capital plan is inclusive of capital to be completed at the WPP and WWTP, and for Wastewater Collection and Water Distribution projects. Ms. Bailey noted that we are still refining our reports to align them with our plans: Water and Wastewater Financial Plan, Asset Management Plan (AMP), LTFP. Ms. Bailey explained that capital works outlined in the 10 year capital plan have been identified, but not all capital works have been identified for the final 5 years. Asset replacement indicates additional capital works to be planned during these years. The report discussed the capital works plan for the watermain network to be undertaken over the next 20 year period. Further to the current backlog of repairs (estimated at $41 M, 72 km), additional watermains are added to this backlog as the pipes break, age and deteriorate. Mr. St. Marseille spoke to the City's operating maintenance budget. The repair of watermain breaks is for a very targeted section, 2-4 meters, as opposed to a longer life-span repair that is being undertaken through the rehabilitation program. Mr. St. Marseille presented a graph that illustrates the backlog and the average annual cost of maintaining watermains and getting ahead on the watermain backlog.

    Councillor Rivette expressed his concerns about the information provided by Administration and the difficulty of making decisions when the information is not properly aligned and was disappointed with the communication. The CAO noted that a lot has happened in the municipal world in the last several years with asset management and long term financial planning. From a complexity point of view, there has been many reports, incorporating previous AMPs into a more recent AMP and into a LTFP. Ms. Adams noted, to Councillor Rivette's point, to encompass all aspects of these plans in one report may not have been as straight-forward as it could have been. Ms. Adams said if there is information that Council is looking for, it is important that we have dialogue between Council and Administration. Administration wants to ensure that Council has the right reports to make good decisions during the budgeting process. As much as possible, we would encourage Motions on the floor for reports. Motions start to form records that we document, where Council and Administration can see what we have on the Unfinished Business List to be followed up on.


    NEW BUSINESS

    There were no New Business items.


    UNFINISHED BUSINESS

    Listing of Reports


    NEXT MEETING

    Monday, February 5, 2018 (4:00pm-9:00pm)


    ADJOURNMENT

    The Budget Steering Committee meeting was adjourned at 8:45 pm.