finance & administration committee agenda

FINANCE & ADMINISTRATION COMMITTEEAGENDA

Monday, July 18, 2016, 5:00 pm

Committee RoomPages

1. ROLL CALL

2. DECLARATION OF CONFLICT OF INTEREST

3. MINUTES OF THE PREVIOUS MEETINGS

3.1 June 20, 2016 3

4. CORRESPONDENCE

5. PUBLIC PRESENTATIONS

6. UNFINISHED BUSINESS

6.1 VISA Statements 6February 16, 2016: Committee directed staff to review the VISA Policy & Procedure, specifically the number of VISA cards issued and bringforward options for Committee review.The Committee also directed staff to provide further information as to thepurpose for specific purchases on various VISA statements.Staff provided a copy of the Corporate Credit Card Policy at the April 20,2016 Finance & Administration Committee meeting.

The CAO and Director of Corporate Services are to complete a thoroughreview and report to the Committee in May 2016.

7. NEW BUSINESS

7.1 SR FIN CAO 2016-12, Expense Reimbursement Policy 9dated July 12, 2016

7.2 SR FIN 2016-14, Variance Report - OPERATING 12dated July 11, 2016

7.3 SR FIN 2016-15, Variance Report - CAPITAL 74dated July 11, 2016

7.4 SR FIN 2016-16, Elliot Lake Public Library (ELPL) Capital Project 2016 79

7.5 Disbursements 82

7.6 VISA Statements 94

8. ADDENDUM

9. CLOSED SESSION

10. SCHEDULING OF NEXT MEETING

11. ADJOURNMENT

Agenda Package Pg 2

1

FINANCE & ADMINISTRATION COMMITTEE

MEETING MINUTES

Monday, June 20, 2016 5:00 pm Committee Room

Present: N. Mann, Chair, C. Martin, Member, S. Reinhardt, Member, D. Marchisella, Mayor & Ex Officio Resources: M. Humble, Dir. Corporate Services, V. Brant, Deputy Treasurer, J. Renaud, CAO, R. Scott, IT Manager Others Present: Other (3)

1. ROLL CALL

The meeting was called to order by the Chair at 5:00pm

2. DECLARATION OF CONFLICT OF INTEREST

None

3. MINUTES OF THE PREVIOUS MEETINGS

3.1 April 20, 2016

Res#: 2016-34

Moved By: D. Marchisella Seconded By: C. Martin

That the minutes of the April 20, 2016 meeting of the Finance and Administration Committee be adopted.

Carried

4. CORRESPONDENCE

None

5. PUBLIC PRESENTATIONS

None

Agenda Package Pg 3

2

6. UNFINISHED BUSINESS

6.1 VISA Statements

April 20 Res. 2016-30: That the VISA statements be deferred to the May 16, 2016 Finance and Administration meeting due to confusion surrounding the presentation of the VISA statements and supporting documentation.

Res#: 2016-35

Moved By: S. Reinhardt Seconded By: D. Marchisella

That the VISA statements be received.

Carried

6.2 VISA Statements

February 16, 2016: Committee directed staff to review the VISA Policy & Procedure, specifically the number of VISA cards issued and bring forward options for Committee review. The Committee also directed staff to provide further information as to the purpose for specific purchases on various VISA statements. Staff provided a copy of the Corporate Credit Card Policy at the April 20, 2016 Finance & Administration Committee meeting.

The CAO and Director of Corporate Services are to complete a thorough review and report to the Committee in May 2016.

7. NEW BUSINESS

7.1 Introduction of the New Director of Corporate Services

CAO, Jeff Renaud

7.2 Treasury Department - Operational Update

Deputy Treasurer, Vicki Brant Report to be provided at the meeting.

Res#: 2016-36

Moved By: D. Marchisella Seconded By: C. Martin

That Report SRFIN2016-11 of the Deputy Treasurer dated June 17, 2016 be received.

Carried

7.3 2016 Taxation Policy Presentation - Update

Vicki Brant, Deputy Treasurer

Agenda Package Pg 4

3

7.4 Report IT2016-02 of the Manager of IT

Leasing of space on City infrastructure/co-locate licensing proposal

Res#: 2016-37

Moved By: C. Martin Seconded By: D. Marchisella

That Report IT 2016-02 dated June 10, 2016 concerning a request to co-locate telecommunications equipment on City-owned infrastructure be received..

Carried

7.5 Disbursements

Res#: 2016-38


That the disbursements for May 19 - June 2, 2016 be received. Carried

7.6 VISA Statements

Res#: 2016-39


That the VISA statements be received. Carried

8. ADDENDUM

None

9. CLOSED SESSION

None

10. SCHEDULING OF NEXT MEETING

The next scheduled Finance & Administration meeting is Monday, July 18th at 5:00 pm N. Mann expressed regrets he is unable to attend the next scheduled meeting, and S. Reinhardt will be acting chair for that meeting.

11. ADJOURNMENT

Res#: 2016-40

Moved By: C. Martin Seconded By: D. Marchisella

That the meeting be adjourned at the hour of 5:50pm. Carried

Agenda Package Pg 5

To respond to Finance and Administration Committee request 6.2 Unfinished Business.

THAT Staff Report FIN 2016-17, Corporate Credit Card Policy dated 11th July 2016 of the Director of Corporate Services be received for information.

Respectfully Submitted Approved

_______________________________ __________________________________ Michael humble CPA, CGA Jeff Renaud Director of Corporate Services Chief Administrative Officer 11 July 2016

RECOMMENDATION

The Corporation of the City of Elliot Lake

Staff Report FIN2016-17

Report of the Director of Corporate Services for the Consideration of Finance and Administration Committee

RE: CORPORATE CREDIT CARD POLICY

OBJECTIVE

Agenda Package Pg 6

Report Pg #2

Item 6.2 of Unfinished Business relates to Visa statements, the Corporate Credit Card Policy, and the number of corporate visa cards issued. It specifically asks that “The CAO and Director of Corporate Services are to complete a thorough review and report to Committee in May 2016.”

The Corporate Credit Card Policy has been reviewed and remains appropriate at this time. A small number of housekeeping items have been identified that will be deferred until a broader review of the City’s banking services has been undertaken. The last review and RFP was in 2007.

The number of corporate credit cards issued and their associated purchasing limits has been reviewed and appropriate action has been taken from a risk management perspective.

Attached is a list of the active corporate credit cards and the purchasing limit assigned to each.

There is no financial impact to this information report. Reducing the number and purchasing limit of corporate credit cards lowers our financial risk.

Controlling financial risk links to the goal of operating in a fiscally responsible manner.

The Corporate Credit Card Policy has been reviewed and the list of active issued cards is attached.

BACKGROUND

ANALYSIS

FINANCIAL IMPACT

LINKS TO STRATEGIC PLAN

SUMMARY

Agenda Package Pg 7

Report Pg #3

Agenda Package Pg 8

Agenda Package Pg 9

Agenda Package Pg 10

To provide monthly Statements of Operations, Budget-to-Actual Results & Variance Reports.

THAT Staff Report FIN 2016-14, Operating Budget Variance Report as at 30th June 2016 dated 11th July 2016 of the Director of Corporate Services be received;

AND THAT the report be forwarded to Council for information.


_______________________________ __________________________________ Michael Humble CPA, CGA Jeff Renaud Director of Corporate Services Chief Administrative Officer 11 July 2016

RECOMMENDATION



Report of the Director of Corporate Services for the Consideration of Council

RE: OPERATING VARIANCE REPORT AS AT 30th June 2016

OBJECTIVE


Report Pg #2

As part of Best Budgeting Practices, a municipality should evaluate its financial performance relative to the adopted budget.

Regular monitoring of budgetary performance provides an early warning of potential problems and gives decision makers time to consider actions that may be needed if major deviations in budget-to-actual results become evident.

The Council for the Corporation of the City of Elliot Lake passed by-law 16-04 on 11th January 2016 adopting the 2016 Operating Budget for user pay services and by-law 16-21 on 14th March 2016, adopting the 2016 Operating Budget for tax supported purposes.

The report presentation is changing somewhat as well as the level of detail provided to Council. The summary page now includes performance to budget statistics as well as department comments on their activity to date and a projection of their expected position at year end.

Identifying such trends early in the year can give staff and Council time to react to significant adverse events as well as budget assumptions that cannot be attained.

Although we are only six months into the year, there are already a number of points to note.

The general insurance policy renewed on 1st January 2016 with an 18% premium increase. This was not anticipated in the budget document and since insurance costs are allocated across many operating business units of the City, the result is a widespread and consistent over budget position across all departments. The cumulative impact is anticipated to be a deficit of around $87,000

The number of insurance claims submitted to our insurance company has already exceeded budget for the year by nearly $3,000. At this rate of claims activity and submission we may reasonably expect a deficit of around $23,000 by the end of the year. Submitted insurance claims build our ‘experience rating’ which is used by insurance companies to gauge our risk and set our premiums for the following year.

Corporate restructuring costs, additional audit work and over-estimating the interest to be earned on outstanding receivables will impact the Treasury department by around $103,000

Supplementary tax billing.. $500,000 was budgeted for supplementary commercial tax revenue once the Pearson Plaza and Foodland opened.

Taxable assessed value cannot be determined with any degree of certainty until the building is open and has been evaluated by MPAC staff.

Treasury staff have consulted MPAC and evaluated other commercial properties with similar square footage and declared building value from building permit information. Our investigation and discussion would indicate potential FULL YEAR commercial tax revenue from these two properties in the range of $150,000 - $200,000. (As stated, this cannot be verified with any certainty until the properties are open and MPAC has performed their inspection and valuation).

Based on information gathered, Treasury staff are projecting a more reasonable supplementary commercial tax revenue of around $85,000-$100,000 for the 2016 fiscal year based on

1st April opening for Foodland

BACKGROUND

ANALYSIS


Report Pg #3

estimated 1st August opening for the Pearson Plaza.

Budgeting for Supplementary taxation is a delicate exercise at even large Municipalities that have a large assessment base. In reality, supps are quite often balanced off by write-offs so the net gain is normally negligible.

Budgeting for very specific large commercial properties is even more risky than budgeting for general supplementary revenue across a broad base. Small changes in valuation and inevitable construction delays have major impacts on revenue budgets.

Senior staff have met to discuss these pressures that are already weighing on our 2016 operating budget, and have formulated a strategy to mitigate their impacts, all the while being mindful of the need to both balance the financial activity for 2016 and clear off the accumulated deficit from prior years.

The following are the mid-year strategies we propose to adopt:

1. Reduce strategic planning budget to $100,000. This will still enable staff to undertake all of the planned work activities. Some have come in under expected budget, while others will be undertaken internally at the cost of staff time alone without significant external spending.

2. Reduce the reliance on external resources for completion of the Transit Master Plan.

3. Reduce the Transfer to Reserve for Economic Development to zero. The uncommitted balance of the Economic Development reserve is around $345,000 with no planned expenditure.

The resulting tax supported projected deficit is a little under $26,000 and poses no concern for staff at the six month mark of the year.

Attached are the variance report and detailed Statement of Operations for tax supported City services and water / wastewater as at 30 June 2016.

Year-end projections have been provided where appropriate. Senior staff have discussed and implemented strategies to offset a sizable mid-year tax supported deficit projection.

There are no concerns at this point with a modest projected deficit.

Consistent and timely financial reports are a key element in the City’s goal to operate in a fiscally responsible manner and deliver value in our municipal services.

FINANCIAL IMPACT



Report Pg #4

A tax supported deficit in the neighbourhood of $26,000 is being projected at the mid-point of fiscal 2016.

User pay water and wastewater operations are on budget for the first 6 months of 2016 and no significant variances have been noted.

SUMMARY


Surplus / (Deficit)2016 Jun 30 '16 % Projected Variance Explanation

Department Budget Results of Budget 55 <‐‐> 75 At 31 Dec 2016

111 ‐ Mayor & Council 156,188 77,194 49.4

CAO Office

121 ‐ CAO 306,075 170,873 55.8 264,000Strategic Planning initiatives for 2016 will be undertaken both in‐house and at a lower cost than anticipated.

181 ‐ General Government - 110 Admin 787,450 151,221 19.2 (23,000) Insurance claims already exceed budget

(87,194)

General Insurance policy renewal 1st January 2016 was an increase of 18% or $87,194. The impact of this is spread throughout all departments as costs are allocated. Department comments on insurance increases have been omitted and consolidated here as one line and one variance.

Infrastructure Services181 ‐ City Hall - 183 130,536 83,384 63.9 (8,000) Energy costs trending over anticipated181 ‐ White Mountain Bldg - 186 45,893 20,823 45.4 0221 ‐ Police Station Bldg - 184 84,700 37,754 44.6 0 310 ‐ Engineering Administration 168,718 45,399 26.9 0 salary cost transfer required (Director position split with Plants)311 ‐ Public Works 584,143 299,547 51.3 0 On target ‐ Hydro, Natural Gas, and Insurance over target YTD321 ‐ Road Maintenance 1,831,439 994,391 54.3 0

353 ‐ Transit System 396,780 28,485 7.2 135,000Transit Plan will be undertaken in‐house with community involvement. Diesel fuel budget will be underspent.

354 ‐ Handi‐Lift Bus 115,000 76,770 66.8 5,000 Service delivery price increase. Offset by fuel savings.361 ‐ Street Lighting 170,591 94,643 55.5 (15,000) Energy costs trending over anticipated381 ‐ Airport 107,011 53,707 50.2 0422 ‐ Storm Sewers 193,341 24,313 12.6 0 Seasonal work ‐ not commenced to date441 ‐ Waste Management 441,363 153,307 34.7 6,000 Reduction in Contracted Services cost through tender process735 ‐ Parks 575,864 255,593 44.4 0

Corporate Services131 ‐ Clerk 155,999 79,427 50.9 0 no variance expected141 ‐ Treasury 841,125 544,898 64.8 (103,562) Restructuring costs and lower interest on receivables.

151 ‐ Personnel 482,533 193,368 40.1 40,000 Anticipated savings under Health & Safety and Professional Development budgets

161 ‐ Information Systems 503,593 219,307 43.5 34,000 budget is slightly below projections as both the IT INTERN and NEW FTE have yet to be filled

512 ‐ Physician Recruitment 90,000 52,902 58.8 (2,902) Unbudgeted costs for Recruiter

551 ‐ Woodlands Cemetery 46,323 (14,367) ‐131.0 0Care & Mntc revenues have not yet been transferred to reserve accounts. Also, most of the wages have not been distributed.

621 ‐ Home For The Aged 162,029 81,015 50.0 0 Debenture Payments821 ‐ Commercial & Ind. Development 150,787 75,733 50.2

City of Elliot lakeOperating Variance Report As At 30 June 2016





837 ‐ Wireless Towers 0 2,781 0expenditures/revenues = net to zero the mid year variance will be covered by Cottage Wireless project revenues which are generated on monthly basis in partnership with Vianet for ISP services

Community Services713 ‐ General Recreation 240,678 67,451 28.0 0 Seasonal opeartions just getting started. Too soon to project any variance.

720 ‐ Collins Hall 46,785 (22,358) ‐147.8 39,000Budgeted full year occupancy. Tenants vacated May 2016. Reserve transfer will match revenue for the year

721 ‐ Centennial Arena 301,404 193,287 64.1 (12,500)Subsidy to Jr A Hockey team and loss of board advertizing revenue was not budgeted.

722 ‐ Rio Den 27,021 15,312 56.7 0 Insurance premium increase ‐ see comments under General Government724 ‐ Golf Course 102,500 105,275 102.7 0 Insurance premium increase ‐ see comments under General Government726 ‐ Ski Hill 43,000 40,528 94.3 0 Insurance premium increase ‐ see comments under General Government731 ‐ Pool 529,584 238,509 45.0 (4,800) Unexpected pump repairs will exceed maintenance budget765 ‐ Pearson Centre 143,235 100,801 70.4 0 No variance anticipated on the operational side. 766 ‐ Arts Tour (4,730) (1,588) 33.6 0 Will take place in September 2016771 ‐ Nuclear Museum 100,523 64,751 64.4 0 payroll cost allocation not yet processed772 ‐ Miners Memorial Brick Program 0 (2,645) 0780 ‐ Special Events 63,160 36,329 57.5 0824 ‐ Community Events 5,250 4,000 76.2 (1,500) Payment exceeded budget

827 ‐ Welcome Centre 44,700 6,721 15.0 2,000Service contracted to Chamber of Commerce. Permit revenue is flow through.Minor expenses under budget.

832 ‐ Economic Development 235,165 121,911 51.8 25,000 Reserve transfer held for 2016834 ‐ EDO Projects 10,000 0 0.0 0622 ‐ Grants to Elderly Persons 25,000 25,000 100.0 0 Grants processed for the year in March

Protective Services211 ‐ Fire Services 1,879,209 937,839 49.9 40,000 Reduced requirement for overtime payments due to scheduling efforts212 ‐ Emergency Management 16,450 12,332 75.0 0 Annual Compliance Activities Completed. On line with Budget.

241 ‐ Building Controls 194,370 80,723 41.5 0Residential development is below anticipated levels and permits have been issued for known commercial developments.

261 ‐ Animal Control 28,370 10,867 38.3 0 No variance anticipated. Tag sales expected to be higher in the fall.

271 ‐ By‐Law Enforcement (76,010) (113,779) ‐149.7 22,000No year end variance anticipated, as increase in Court Fines & Decrease in Traffic Violations will have a net effect.

815 ‐ Committee of Adjustment 700 (2,585) ‐369.3 1,800 Increase in applications and cost savings due to non‐attendance at Conference

External Boards & Agencies221 ‐ Police Administration 36,420 17,093 46.9 0





223 ‐ OPP Operations 2,604,133 1,348,718 51.8 0 Contract being billed as signed. Revenue lagging behind.511 ‐ Algoma Health Unit 363,216 272,412 75.0 0 Quarterly payments made in advance. Q3 payment processed 23 June 2016531 ‐ Ambulance 961,560 466,370 48.5 31,824 Annual billings will be less than budgeted ($77,728 per month)611 ‐ Welfare Board 518,400 244,184 47.1 30,030 Annual billings will be less than budgeted ($40,697 per month)613 ‐ Social Housing 584,400 305,780 52.3 (27,156) Annual billings will be more than budgeted ($50,963 per month)641 ‐ Day Care Centre 170,100 83,594 49.1 2,911 Annual billings will be less than budgeted ($13,932 per month)761 ‐ Library 441,078 228,363 51.8 0 No variance is anticipated at the end of the year.

Capital Levy 384,107 0 0.0

Total Tax Supported Expenses 18,547,258 8,687,665 392,951

TREASURY REVENUESMunicipal Taxation (11,051,858) (5,396,291) 48.8 0 Taxation as budgetedRebates and Write‐offs 66,500 15,500 23.3 (4,400) Vacancy rebates higher than budgeted

Supps and Omits (550,000) 0 0.0 (400,000)Significant overbudgeting for anticipated residential and commercial supplementary tax revenue. New mall opening delayed. Now expected 1st August 2016.

Payments In Lieu (301,000) (286,451) 95.2 (14,549) Actual PIL billing slightly less than budgetedOntario Municipal Partnership Fund (6,710,900) (3,355,450) 50.0 0 Quarterly payments being received to budgetTotal Treasury Revenues (18,547,258) (9,022,692) (418,949)

Tax Supported Surplus / (Deficit) 0 (335,027) (25,998)

USER PAY DEPARTMENTS411 ‐ Plants Administration 256,388 108,261 42.2 15,000 Shift Premiums and Overtime trending below anticipated levels420 ‐ Wastewater Treatment Plant 831,674 428,638 51.5 (20,000) Energy costs trending above target ‐ no operational rationale 423 ‐ Sanitary Sewer Connections 333,043 96,014 28.8 0 Ongoing work at Westview Crescent424 ‐ Lift Stations 326,252 140,860 43.2 0 Unanticipated failures offset operational savings430 ‐ Water Treatment Plant 831,511 451,715 54.3 0431 ‐ Water Billing (3,792,671) (3,115,506) 82.1 0432 ‐ Water Mains 468,025 146,580 31.3 0 Anticipate summer work following scheduled watermain flushing433 ‐ Water Facilities 18,500 3,423 18.5 8,000Capital Levy 227,278 0 0.0 0Transfer to Reserve 500,000 500,000 100.0 0 Transfers to reserve take place on passing of the budgetSurplus / (Deficit) 0 (1,240,015) 3,000


To provide monthly status updates for approved 2016 capital projects and those carried forward from 2015 and prior years.

THAT Staff Report FIN 2016-15, Capital Status Update as at 30th June 2016 dated 11th July 2016 of the Director of Corporate Services be received;

AND THAT the report be forwarded to Council for information.



RECOMMENDATION




RE: CAPITAL STATUS UPDATE As At 30TH JUNE 2016

OBJECTIVE


Report Pg #2

As part of Best Budgeting Practices, a municipality should evaluate its financial performance relative to the adopted budget.

Status updates on approved capital projects serve as a monitoring mechanism for staff and provides information to Council.

The Council for the Corporation of the City of Elliot Lake passed by-law 16-04 on 11th January 2016 adopting the 2016 Capital Budget for user pay services and by-law 16-21 on 14th March 2016, adopting the 2016 Capital Budget for tax supported purposes.

In addition to 2016 approved projects there is also unfinished work from prior years dating back to 2013.

The new report template clearly indicates the expenditures to date and the state of completion of each project.

There is no financial impact to this information report. Projects underspent will result in lower funding from the capital reserve funds. Projects that finish over budget will be funded from capital reserve fund or such other source as recommended by the project manager and Treasurer and approved by Council.

Consistent and timely financial reports are a key element in the City’s goal to operate in a fiscally responsible manner and deliver value in our municipal services.

Only eight approved capital projects have incurred expenditures as at 30th June 2016. The library project is unapproved and will be handled separately on this agenda.

BACKGROUND

ANALYSIS

FINANCIAL IMPACT


SUMMARY


Updated 30th June 2016

City of Elliot Lake2016 Tax Supported Capital Budget

Budgeted Year To Date

Expenditures Expenditures Comments

INFRASTRUCTURE SERVICES

Facilities

2-181-990-4123 Elevator Replacement 115,000.00 This project under review by the CBO

Roads

2-321-995-3410 Hillside Drive - Road & Storm Repair 772,500.00 No activity to date.

2-321-995-3410 Dunlop Shores Road - Guiderail Installation 45,000.00 No activity to date.

2-321-995-3410 Hirshorn Avenue C/F 2015 350,176.86 244,586.87 Warranty holdback remains.

Fleet

2-311-990-4211 Plow Truck 249,300.00 Contract awarded to Cambrian Truck Center - October delivery expected

Transit

2-353-992-4211 Transit Bus Replacement 207,100.00 200,436.60 Project complete

Landfill Site

2-441-990-3410 Landfill Expansion / Waste Management Plan 135,657.00 87,659.89 Work ongoing and underway. Anticipate completion by end of year 2016

Airport

2-381-990-3410 AWOS System C/F 2013 106,634.75 Project is under review

Total Infrastructure Services 1,981,368.61 532,683.36

COMMUNITY SERVICES

Arena

2-721-990-4213 Scrape Metal Beams 51,000.00 Tender closed with no bidders

Pool

2-731-990-4212 Pool Handi-Lifts 20,350.00 Will be ordering the lifts within the next month

2-731-990-4212 Fitness Room Equipment 20,350.00 Will be ordering the equipment within the next month

2-731-990-4213 Pool Main Beam 13,500.00 In conjunction with arena scraping of beams

Civic Centre

2-765-990-4213 Courtyard Makeover C/F 2013 20,352.00 No activity to date.

2-765-990-4213 North Side Steps 55,000.00 No activity to date.

Museum

2-771-990-4212 Display Cabinets C/F 2014 5,575.54 Planning stages as re-organization of Museum layout is underway

Parks

2-735-990-4213 Boardwalk Replacement C/F 2013 116,272.59 Project underway. Engineering services have been secured.

C:\Program Files\eSCRIBE\TEMP\844040791\844040791,,,Capital Status Q2 2016 FORMATTED 7/12/2016



City of Elliot Lake2016 Tax Supported Capital Budget


2-735-990-4211 Kubota Lawn Tractor 14,750.00 12,720.00 Project Complete

2-735-990-4213 Decorative Brick Flowerbeds 15,250.00 No activity to date.

2-735-990-4213 Robertson Park Playground Equipment 30,000.00 No activity to date.

Trails

2-831-995-4213 Storage Shed 15,264.00 Planning stages at this point

2-831-995-4213 Trailhead at Every Priority Trail Entrance 25,440.00 Planning stages at this point

Economic Development

2-821-990-0951 Fox Drive Servicing 107,500.00

45% funding applied for to both FedNor and NOHFC. Approval received from

NOHFC but nothing yet from FedNor. Project on hold until all funding in place.

2-832-990-3410 Wireless Project Implementation 2014 50,000.00 Year three payment. Balance of unfunded capital expenditures will be $217,477.41

Total Community Services 560,604.13 12,720.00

PROTECTIVE SERVICES

2-211-990-4213 Asphalt Paving - Fire Hall Parking Lot 75,000.00 Will be completed in conjunction with Hillside Drive paving.

Total Protective Services 75,000.00 0.00

CORPORATE SERVICES

Information Technology

2-261-990-4210 Special Projects C/F 2015 14,482.01

Planning

2-821-990-3410 Official Plan Review C/F 2015 20,350.00 RFP in draft form.

Total Corporate Services 34,832.01 0.00

LIBRARY

34,015.66 Funding from Insurance Settlement and Infrastructure Ontario Grant

Total Library 0.00 34,015.66

TOTAL TAX SUPPORTED CAPITAL 2,651,804.75 579,419.02




City of Elliot Lake2016 User Pay Capital Budget


Expenditures Expenditures Comments

SANITARY SEWER

Sewage Treatment Plant

2-420-990-4210 WWTP Paperless Recorders C/F 2014 11,700.00 No activity to date, project has not been started.

Lift Stations

2-424-990-4213 Standby Power for Lift Stations 61,000.00 Options have been reviewed, pricing being sought

2-424-990-4212 Horn Lift Station Check Valve Replacement 60,000.00 Project underway. Suppliers seeking suitable equipment for application

2-424-990-4210 Delta to Wye Switchover OPS2016-07 25,522.00 Project is underway. Awaiting input from Hydro One

Total Sanitary Sewer 158,222.00 0.00

WATER

Water Plant

2-430-990-4212 Flow Meter Replacement 77,800.00 23,002.23 Project is underway. Three of seven units installed and operational

2-430-990-3410 Maintenance Management System 45,800.00 Project is underway. Various options explored with in-house solution selected.

2-430-990-4212 Clarifier Discharge Control System C/F 2015 53,500.00 Project is underway. Actuators now on-site, additional equipment on-route

2-430-990-4212 Clearwell Gate Valves C/F 2015 25,363.57 16,403.71 Project complete.

2-430-990-4212 Surface Wash Actuators C/F 2015 3,967.70 Project completed 29 June, 2016

2-430-990-3410 High Lift Pump Maintenance C/F 2015 112,520.00 107,700.07 Project completed May 2016

2-430-990-4212 Filter to Waste Actuator Installation C/F 2015 5,453.65 Project ongoing. All hardware installed, SCADA integration pending

2-430-990-4212 Line Feed System Upgrade C/F 2015 13,545.87 Project complete.

Water Mains

2-432-990-3410 Westview Crescent Watermain Replacement OPS2016-07 427,500.00 801.36 Contract awarded. Work to commence 4 July, 2016

Water Distribution

2-433-990-4213 Roman Booster 68,200.00 Project underway. Suitable system selected, engineering review in progress

Total Water 833,650.79 147,907.37

TOTAL USER PAY CAPITAL 991,872.79 147,907.37



To gain approval for capital works required to relocate the Elliot Lake Public Library (ELPL) into the new Pearson Plaza building.

THAT Staff Report FIN 2016-16, Elliot Lake Public Library Capital Project 2016 dated 14th July 2016 of the Director of Corporate Services be received;

AND THAT the report be forwarded to Council to approve a capital project in the amount of $1,300,000 to facilitate the relocation of Library physical facilities to the Pearson Plaza in accordance with the resolution passed by the ELPL Board



RECOMMENDATION




RE: ELLIOT LAKE PUBLIC LIBRARY CAPITAL PROJECT 2016

OBJECTIVE


Report Pg #2

Since February 2013 the ELPL has been located at the White Mountain Academy Building at 99 Spine Road in Elliot Lake. The intent has been to relocate to the Pearson Plaza as soon as it is complete. Council was not asked to consider this capital request during 2016 budget deliberations. Without due approval the Treasurer is not authorized to pay invoices that are already being incurred and the Library Board does not have approval to incur expenditures related to their relocation.

The 2016 budget request from the ELPL Board did not include a formal request for the capital expenditure necessary to relocate from the White Mountain Academy Building to the new Pearson Plaza location. Reference was briefly made in their operating budget submission.. “we will be moving into a larger space (10,059 sq ft) sometime next year”.

Such capital request would also have detailed the future impact the move would have had on the operating budget, such as change in staffing levels, utility and maintenance costs.

Since spending has commenced and we have already received $34,015 in invoices seeking payment, it is necessary to seek immediate formal approval for this capital project in order to meet grant deadlines and ELPL Board expectations. Approval is being sought outside of the normal budget process, and is formally supported by the following resolution of the ELPL Board.

Resol. 66/206

“That Council approve a 2016 capital project outside of the budget process to permit the Elliot Lake Public Library Board to spend to an upset limit of $1,300,000 in order to facilitate the new library build and relocation to Pearson Plaza,

And that all related expenditures already incurred be covered by this resolution,

And That the Elliot Lake Public Library Board will follow the City of Elliot Lake Procurement Policy”

The Treasurer will be working with the Chief Librarian / CEO to ensure that all purchasing is conducted in accordance with the City Purchasing Policy and a fair, open and competitive process is followed. Besides being preferred practice to protect the integrity of the purchasing process for all City funds, this is a stated condition of the OMAFRA grant that was given to the City.

The project cost is $1,300,000. Funding is to be from the following sources.

OMAFRA Grant $300,000

In February 2013 OMAFRA issued a funding commitment to provide a grant to the City in the amount of $300,000 for the purpose of “building the interior of the ELPL located in a new plaza to be built in the area of Hillside Drive South and Ontario Avenue.” Funds were advanced and received by the City in April 2013. The initial end date for financial assistance was 31st December 2014. Unable to meet this deadline the City

BACKGROUND

ANALYSIS

FINANCIAL IMPACT


Report Pg #3

successfully sought to extend that deadline once to 31st July 2016. That date is rapidly approaching and the Treasurer has verbally sought to extend this deadline one final time to 31st December 2016. While hesitant, consideration is being given by OMAFRA and we should hear their decision within the next four weeks. If successful the City will keep the grant and apply it to the Library relocation project. If unsuccessful the City will have to repay grant funds as well as imputed interest earned from date of receipt and finance this portion of the project from the Library reserve fund.

Insurance settlement cheque received in the amount of $699,503.06

Balance of funds required up to $300,496.94 will come from the Library Building Reserve Fund. Available and uncommitted reserve fund balance of $676,921.66 as of 14th July 2016.

Seeking authority prior to spending money is a critical element in the City’s goal to operate in a fiscally responsible manner.

Council approval is being sought to authorize a capital project for the library to relocate to the new Pearson Plaza from their current location on Spine Road.


SUMMARY


finance & administration committee agenda

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