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1997-11-08_Minutes 86-697 COMMON COUNCIL NOVEMBER 8, 1997 At a meeting of the Common Council, held at the City Hall in the City of Saint John, on Saturday, the eighth day of November, AD. 1997, at 9:00 o'clock a.m. present Shirley McAlary, Mayor Councillors Arthurs, Ball, Brown, Gould, Knibb, Trites and Waldschutz - and - Messrs. 1. Totten, City Manager; J. Nugent, City Solicitor; A Beckett, Commissioner of Finance; C. Robichaud, Commissioner of Municipal Operations; J. C. MacKinnon, Commissioner of Environment and Development Services; W. Butler, Commissioner of Community Services; S. Armstrong, Director of Engineering; M. Jamer, Director of Water and Sewerage; S. Galbraith, Director of Works; P. Hanlon, Operations Engineer; B. Belyea, Budget Officer; J. McDevitt, Budget Control Officer; D. Gould, Water and Sewerage; G. Sabean, Works; R. Chedore, Works; D. Anson, Works; B. Reynolds, Works; Mrs. M. Munford, Common Clerk; and Ms. C. Mosher, Assistant Common Clerk. MeetinQ Called To Order Mayor McAlary called the meeting to order and requested Mr. Robichaud to present the 1998 budget proposal for Municipal Operations (copies of which were distributed to Council members at this meeting). Municipal Operations Mr. Robichaud advised his intent to review, in turn, the activities of Works, Water and Sewerage, and Engineering and Administration, through a slide presentation and subsequently, after each, to review the proposed 1998 budgets and the budget cuts for the respective Divisions. Mr. Robichaud displayed slides of the four Works' depots and activities performed at these depots; and reviewed: (1) the year-round programs of the Works Division, including garbage collection, the maintenance of equipment and carpentry work; (2) activities carried out during the winter months, including street and sidewalk plowing, salting and sanding, winter drainage and pothole patching; and (3) summer activities, including spring clean-up and clean-up week, street sweeping, asphalt repair, gravel road maintenance, shouldering, curb and sidewalk maintenance and repair, ditching and culverts, brick sidewalk maintenance, catch basin cleaning, catch basin and storm drainage installation, capital work, and line painting. Referring to the 1998 budget proposal, Mr. Robichaud noted the approved 1997 budget of $14,319,464 which, with the addition of salary increases of $206,625 and a 1 % increase in goods and services of $65,678, would represent a 1998 guideline budget of $14,586,767 and, in accordance with the budget guideline to subtract 90% of the 1997 budget, the guideline required reduction for the Works Division would be $1,699,249, representing a reduction of 11.87% of the approved 1997 budget. To accomplish this reduction, Mr. Robichaud suggested that (1) all asphalt resurfacing costs of $667,404, (2) the amount of $34,000 for manhole and catch basin raising for asphalt resurfacing contracts and (3) the equipment replacement expenditure of $379,600 be transferred to the Capital Program; (4) the budget for asphalt street repairs and maintenance be reduced by $70,000; (5) the budget for garbage collection be reduced by $5,800 related to media advertising, training and carpenter work in this area; (6) a reduction of $134,800 in personnel and $246,900 in goods and services for a total of $318,700 in the Spruce Lake sanitary landfill operation, retaining 5/12 of the personnel budget or $96,300, in order to cover the cost of the 4 employees during the winter months when no additional capital work would be available and $134,800 or 7/12 of the salary be offset by utilizing these employees doing capital work during summer months, representing 173 manweeks); and (7) eliminate Clean-Up Week for a saving of $110,000 and approximately 60 manweeks of capital work be found in order to cover the salary of the 4 employees displaced by cutting this program, which represents 1,000 of the 18,000 86-698 COMMON COUNCIL NOVEMBER 8, 1997 tonnes of domestic garbage collected either by City employees or contractors for the City, noting that $57,000 would be added to this amount to cover the $57 per tonne for the 1000 tonnes of garbage collected. Mr. Robichaud apprised Council of issues with regard to (a) Clean-Up Week's representation of 1000 tonnes of garbage per year and an additional $57,000 presently not contained in the budget; (b) garbage disposal in that, while the City did not previously pay for taking its garbage to the landfill site, it now would be paying for 17,000 tonnes of domestic garbage yearly at $57 per tonne for a total of $969,000 to be added to the budget; (c) the intent to purchase only 8,000 tonnes of salt in 1998, the City in previous years having used approximately 11,000 tonnes; (d) private roads in that, with more demands being made by people who live on them, staff was recommending that the City go back to providing more than the traditional minimum service level of snowplowing and grading and, if there were a desire to increase or improve private roads, a local improvement by-law be enacted to assist in funding increased capital work in this area; (e) issues related to personnel as security clauses in the present collective agreements prevents the City from considering other alternatives such as contracting out garbage or laying off seasonal people when not required; (f) Provincially-designated highways as the Province, over the last two years, de-designated 60 lane kilometres which results in 168 lane kilometres of Provincially-designated highways in the City at this time, compared to 228 lane kilometres in 1995; (g) and the Equipment Replacement Fund of $380,000 in 1997 which will be greatly overspent. Mr. Robichaud responded to questions in the above regard. With regard to the Water and Sewerage Division, Mr. Robichaud advised that no cuts were being recommended in this budget which has no or very little impact on the City's tax rate as all activities are paid for by revenues received from customers of water and sewerage; and, through a slide presentation, provided an overview of the water system and commented on the activities and issues facing the Water and Sewerage Utility, the issues related to (1) the Wastewater Collection & Treatment Strategy which identified aging infrastructure with a replacement program and increases in infrastructure which would result in significant increases in Capital and Operating funds; (2) the Water Strategy, to be completed in late 1998, which will address issues such as water treatment, aging infrastructure, water quality issues, service extensions and others for the next 20 years; (3) user rates, which will most likely increase to reflect the level of activity carried out as suggested the above- mentioned Strategies; (4) shrinking consumption due to a reducing population and to a greater degree water conservation measures being applied by industry; (5) backflow prevention which is the prevention of accidental contamination of the City water supply by a customer; (6) watershed protection which the City will continue to pursue with the Province; (7) personnel issues much the same as in the Works Division, as well as an aging work force and Provincial training/certification requirements; and (8) Provincial regulations which, in becoming more demanding, will result in increased costs to the Utility. Mr. Robichaud responded to questions in the above regard. Mr. Robichaud addressed the Engineering & Administration Division's 1998 guideline budget of $1,131,665 representing the 1997 approved budget of $1,110,328 plus salary increases of $18,879 and a goods and service increase of 1 % or $2,458; noting that 90% of the 1997 budget would be $999,295 which would result in a guideline required reduction of $132,370, or 11.92% of the 1997 budget. Mr. Robichaud presented slides of activities carried out by Engineering; put forth the following as options to achieve the required budget decrease in Engineering by $85,300: (1) the elimination of the traffic counting program at a saving of $8,0000, a reduction in fixed assets at a saving of $2,400, the elimination of all overtime response to traffic signal problems that cannot be covered by insurance at a saving of $3,015, a layoff of staff in the Survey Crew area for the winter period which would mean reducing one survey crew or three employees for four months at a saving of $37,868 although the collective agreement might prevent this from happening, and transferring the necessary reduction to the Capital Program by charging directly to specific projects in the amount of $34,017. With regard to Administration, Mr. Robichaud outlined the following options to decrease the budget by $46,915: (1) transferring a Stenographer II position to Water Engineering under the Water and Sewerage Utility and eliminating the vacant Draftsman II position which is budgeted in that area, which would be a 86-699 COMMON COUNCIL NOVEMBER 8, 1997 reduction in personnel at a saving of $34,869; and (2) transferring the casual Clerk- Typist position (24 weeks) to Capital at a saving of $12,046. In terms of issues, Mr. Robichaud commented on (a) the result in reduced senior expertise in Traffic Engineering and Planning as a result of downsizing; (b) a re-organization plan which would essentially move more engineering work down to the Engineering Technician level; (c) records which would be addressed in the reorganization plan and further with the City-wide information records and retrieval system in place; and (d) the development of an improved City-wide Capital Projects Budget Reporting System. Mr. Robichaud responded to questions in the above regard. The Mayor noted that Community Services was the only remaining major City departmental budget to be presented, as well as the budgets to be presented to Council at its forthcoming meeting on November 10; and suggested that other departmental budgets could be presented at the regularly-scheduled Council meetings, commencing on November 17 at 3:00 o'clock p.m. or 4:00 o'clock p.m., the latter to be decided by Council. The meeting adjourned at 12:20 o'clock p.m. Common Clerk