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2018-10-22_Agenda Packet--Dossier de l'ordre du jourHr City of Saint John Common Council Meeting AGENDA Monday, October 22, 2018 6:00 pm Council Chamber Please use Chipman Hill entrance S'il vous plait utiliser I'entree Chipman Hill Si vous avez besoin des services en francais pour une reunion de Conseil communal, veuillez contacter le bureau du greffier communal au 658-2862. Pages 1. Call to Order 2. Approval of Minutes 2.1 Minutes of October 9, 2018 1 - 7 3. Approval of Agenda 4. Disclosures of Conflict of Interest 5. Consent Agenda 5.1 City Appointee to Pension Board of Trustees (Recommendation: Refer to 8 - 8 Nominating Committee) 5.2 Amendment 4 to Bell Ethernet Services Schedule (Recommendation in Report) 9-15 5.3 Proposed Public Hearing Date - 105 Prince Edward Street, 4 Second Street and 16-18 915 Red Head Road (Recommendation in Report) 5.4 Designation of By -Law Enforcement Officers (Recommendation in Report) 19-22 5.5 Urban Development Incentives Grant Agreement (Recommendation in Report) 23-47 5.6 Shared Risk Pension Plan - Actuarial Valuation as at January 1, 2018 48-93 (Recommendation: Receive for Information) 5.7 ABC Written Reports - September 2018 (Recommendation: Receive for 94-183 Information) 1 Pmdf3„rm K 5.8 Irish Canadian Cultural Association re: Present ideas for St Patrick's Square 184-185 (Recommendation: Refer to Growth Committee) 6. Members Comments 7. Proclamation 7.1 Royal Canadian Legion Poppy and Remembrance Campaign - October 26 to 186-186 November 11, 2018 8. Delegations / Presentations 8.1 Saint John Arts Centre 187-201 9. Public Hearings - 6:30 p.m. 10. Consideration of By-laws 10.1 By -Law Respecting the Traffic on Streets in The City of Saint John (3rd 202-345 Reading) 11. Submissions by Council Members 11.1 Resignation as Ward 3 Councillor (Councillor Lowe) 346-346 11.2 Freedom of the City Award / Citizen of the Year Award (Deputy Mayor McAlary) 347-347 12. Business Matters - Municipal Officers 12.1 Demolition of Vacant, Dilapidated and Dangerous Building at 80-88 Metcalf 348-449 Street 12.2 Demolition of Vacant, Dilapidated and Dangerous Buildings at 1360 450-492 Manawagonish Road 12.3 2019 Utility Fund Operating Budget 493-507 12.4 Code of Conduct Bylaw 508-521 12.5 Council Remuneration - Elimination of 1/3 Tax Free Allowance 522-523 12.6 Nuisance Deer Management Program Update 524-536 13. Committee Reports 14. Consideration of Issues Separated from Consent Agenda 15. General Correspondence 15.1 Ticket Purchase Request: 2018 Celebrate the Harvest Fundraising Dinner 537-538 K 15.2 Ticket Purchase Request: Hospice Celebrity Gala 16. Supplemental Agenda 17. Committee of the Whole 18. Adjournment 539-539 City of Saint John Common Council Meeting Monday, October 22, 2018 Committee of the Whole 1. Call to Order Si vous avez besoin des services en fran�ais pour une reunion de Conseil communal, veuillez contacter le bureau du greffier communal au 658-2862. Each of the following items, either in whole or in part, is able to be discussed in private pursuant to the provisions of subsection 10.(2)(4) of the Municipalities Act and Council / Committee will make a decision(s) in that respect in Open Session: 4:30 p.m., 8th Floor Boardroom, City Hall 1.1 Approval of Minutes 68(1) 1.2 Financial Matter 68(1)(c) 1.3 Financial Matter 68(1)(c) 1.4 Legal Matter 68(1)(f) C! Ville de Saint John Seance du conseil communal Lundi 22 octobre 2018 18 h, Salle du conseil Comite plenier 1. Ouverture de la seance Si vous souhaitez obtenir des services en fran�ais pour une seance du conseil communal, veuillez communiquer avec le bureau du greffier communal au 658-2862. Chacun des points suivants, en totalitg ou en partie, peut faire l'objet d'une discussion en privg en vertu des dispositions prgvues a Particle 10 de la Loi sur les municipalites. Le conseil/comitg prendra une ou des decisions a cet ggard au cours de la seance publique 16 h 30 — Salle de conference, 8e etage, h6tel de ville 1.1 Approbation du proces-verbal — paragraphe 68(l) 1.2 Question financiere — alinea 68(1)c) 1.3 Question financiere — alinea 68(1)c) 1.4 Question juridique - alinea 68(l)f,'g) Seance ordinaire 1. Ouverture de la seance 2. Approbation du proces-verbal 2.1 Proces-verbal de la seance tenue le 9 octobre 2018 3. Adoption de l'ordre du jour 4. Divulgations de conflits d'interets 5. Questions soumises a 1'approbation du conseil 5.1 Personnes nommges par la Ville au Conseil d'administration de la Commission du regime de retraite (recommandation : transmettre au Comite des candidatures) 5.2 Modification 4 au contrat a terme de services Ethernet de Bell (recommandation figurant au rapport) 61 5.3 Date proposee de la tenue d'une audience publique relativement au 105, rue Prince Edward, au 4, rue Second et au 915, chemin Red Head (recommandation figurant au rapport) 5.4 Nomination d'agents d'execution des arretes municipaux (recommandation figurant au rapport) 5.5 Entente de subventions pour le programme d'incitatifs pour 1'amenagement urbain (recommandation figurant au rapport) 5.6 Regime de retraite a risque partage — Evaluation actuarielle au I' janvier 2018 (recommandation : accepter a titre informatif) 5.7 Rapports ecrits des organismes, des conseils d'administration et des commissions — Septembre 2018 (recommandation : accepter a titre informatif) 5.8 Association Irish -Canadian Cultural Association concernant la presentation d'idees pour St. Patricks Square (recommandation transmettre au Comite de croissance) 6. Commentaires presentes par les membres 7. Proclamation 7.1 Campagne du coquelicot et du souvenir de la Legion royale canadienne — Du 26 octobre au 11 novembre 2018 8. Delegations et presentations 8.1 Centre des arts de Saint John 9. Audiences publiques — 18 It 30 10. Etude des arretes municipaux 10.1 Arrete relatif a la circulation dans les rues de la ville de Saint John (3e lecture) 11. Interventions des membres du conseil 12. Affaires municipales evoquees par les fonctionnaires municipaux 12.1 Demolition du bdtiment vacant, delabre et dangereux situe au 80- 88, rue Metcalf 12.2 Demolition des bdtiments vacants, delabres et dangereux situes au 1360, chemin Manawagonish 12.3 Budget de fonctionnement du fonds des services publics de 2019 12.4 Arrete sur le code de conduite C.1 12.5 Remuneration des membres du Conseil — Elimination de 1' allocation non imposable d'un tiers (1/3) 12.6 Mise a jour sur le programme de gestion des chevreuils nuisibles 13. Rapports deposes par les comites 14. Etude des sujets ecartes des resolutions en bloc 15. Correspondance generale 15.1 Demande d'achat de billets : Souper-benefice de 1'evenement « Celebrate the Harvest » (feter la recolte) 2018 15.2 Demande d' achat de billets : Evenement « Hospice Celebrity Gala 16. Ordre du jour supplementaire 17. Comite plenier 18. Levee de la seance M COMMON COUNCIL/ CONSEIL COMMUNAL October 9, 2018 / le 9 octobre 2018 MINUTES — REGULAR MEETING COMMON COUNCIL OF THE CITY OF SAINT JOHN OCTOBER 9, 2018 AT 6:00 PM IN THE COUNCIL CHAMBER Present: Mayor Don Darling Deputy Mayor Shirley McAlary Councillor -at -Large Gary Sullivan Councillor Ward 1 Greg Norton Councillor Ward 1 Blake Armstrong Councillor Ward 2 Sean Casey Councillor Ward 2 John MacKenzie Councillor Ward 3 Gerry Lowe Councillor Ward 3 Donna Reardon Councillor Ward 4 David Merrithew Absent: Councillor Ward 4 Ray Strowbridge Also Present: Acting City Manager N. Jacobsen Fire Chief K. Clifford City Solicitor J. Nugent Commissioner of Finance and Treasurer K. Fudge Commissioner of Growth and Community Development J. Hamilton Commissioner of Transportation and Environment M. Hugenholtz Commissioner of Saint John Water B. McGovern Common Clerk J. Taylor Deputy Common Clerk P. Anglin 1 1 COMMON COUNCIL/ CONSEIL COMMUNAL October 9, 2018 / le 9 octobre 2018 1. Call to Order Mayor Darling called the meeting to order. 2. Approval of Minutes 2.1 Minutes of September 24, 2018 Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the minutes of the meeting of Common Council, held on September 24, 2018, be approved. IL 10000►[4L1:k]k]11191 3. Approval of Agenda Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the agenda of this meeting be approved with the addition of items: • 16.1 Tucker Park Recreation Association Request for Funding from the Tucker Park Fund to Build a Wheelchair Accessible Viewing Deck • 16.2 Service Agreement for Park Drive • 16.3 Ticket Request — Big Brothers and Big Sisters Inspire Mentoring Awards • 17. 1 After Action Review and Letters to Department of Public Safety and Irving Oil following the incident at the Irving Oil Refinery IL IQ 111100 011540:]:]1I191 4. Disclosures of Conflict of Interest S. Consent Agenda 5.1 That R. Boulet Letter: Canada 55 Plus Summer Games be received for information. 5.2 That as recommended by the City Manager in the submitted report M&C2018- 272: Proposed Purchase of Self -Contained Breathing Apparatus for Saint John Fire Department, Common Council authorize the Saint John Fire Department to enter into a comprehensive Self -Contained Breathing Apparatus (SCBA) renewal program with Mic Mac Fire and Safety Source Ltd. at an annual cost of $81,070 plus HST over a ten year period; and further, that the Mayor and Common Clerk be authorized to execute the necessary documents. 0a K COMMON COUNCIL/ CONSEIL COMMUNAL October 9, 2018 / le 9 octobre 2018 5.3 That as recommended by the City Manager in the submitted report M&C2018- 275: Fleet Replacement Procurement —October 2018, Common Council award the purchase of one compact loader at a total cost of $119,221 plus HST to MacFarlands Ltd. 5.4 That the submitted report M&C2018-277: Coast Guard Administration Building Interim Use, be received for information. Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the recommendation set out in each consent agenda item respectively be adopted. MOTION CARRIED UNANIMOUSLY. 6. Members Comments Council members commented on various community events. 7. Proclamations 8. Delegations/Presentations 9. Public Hearings 6:30 PM 10. Consideration of By-laws 10.1 Traffic Bylaw Amendment re: King Square South (3rd Reading) Moved by Deputy Mayor McAlary, seconded by Councillor Armstrong: RESOLVED that the by-law entitled, "A By -Law to Amend a By -Law Respecting Traffic on Streets in The City of Saint John made under the authority of the Motor Vehicle Act, 1973, and amendments thereto", amending Schedule A — Parking for Specified Times, which would convert four metered (2 hour) spaces to 15 minute unmetered spaces, with one of those four spaces being an accessible space, be read. MOTION CARRIED with Councillor Reardon voting nay, stating she is not in favour of 15 minute parking in the area, and Councillor Lowe voting nay. The by-law entitled, "A By -Law to Amend a By -Law Respecting Traffic on Streets in The City of Saint John made under the authority of the Motor Vehicle Act, 1973, and amendments thereto" was read in its entirety. Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the by-law entitled, "A By -Law to Amend a By -Law Respecting Traffic on Streets in The City of Saint John made under the authority of the Motor Vehicle Act, K3 COMMON COUNCIL/ CONSEIL COMMUNAL October 9, 2018 / le 9 octobre 2018 1973, and amendments thereto", amending Schedule A — Parking for Specified Times, which would convert four metered (2 hour) spaces to 15 minute unmetered spaces, with one of those four spaces being an accessible space, be read a third time, enacted, and the Corporate Common Seal affixed thereto. MOTION CARRIED with Councillors Reardon and Lowe voting nay. Read a third time by title, the by-law entitled, "A By -Law to Amend a By -Law Respecting Traffic on Streets in The City of Saint John made under the authority of the Motor Vehicle Act, 1973, and amendments thereto." 10.2 City of Saint John Traffic Bylaw (151 and 2nd Reading) Deputy Commissioner T. O'Reilly commented that the bylaw consolidates 44 amendments and recommendations made by the Registrar of Motor Vehicles. Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the by-law entitled, "MV -10.1 A By -Law Respecting the Traffic on Streets in The City of Saint John", repealing and replacing the bylaw enacted on the 191h day of December, 2005 entitled "A By-law Respecting Traffic on Streets in The City of Saint John made under the authority of the Motor Vehicle Act 1973 and amendments thereto", be read a first time. MOTION CARRIED. Read a first time by title, the by-law entitled, "MV -10.1 A By -Law Respecting the Traffic on Streets in The City of Saint John." Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the by-law entitled, "MV -10.1 A By -Law Respecting the Traffic on Streets in The City of Saint John", repealing and replacing the bylaw enacted on the 191h day of December, 2005 entitled "A By-law Respecting Traffic on Streets in The City of Saint John made under the authority of the Motor Vehicle Act 1973 and amendments thereto", be read a second time. MOTION CARRIED. Read a second time by title, the by-law entitled, "MV -10.1 A By -Law Respecting the Traffic on Streets in The City of Saint John." 11. Submissions by Council Members 12. Business Matters - Municipal Officers CI COMMON COUNCIL/ CONSEIL COMMUNAL October 9, 2018 / le 9 octobre 2018 12.1 2018 Corporate Work Plan and Key Performance Indicator Report Referring to the submitted report entitled 2018 Corporate Work Plan and Key Performance Indicator Report the Acting City Manager outlined the progress made on Council's four priorities: Growth and Prosperity; Vibrant, Safe City; Valued Service Delivery; and Fiscally Responsible. Mr. Jacobsen highlighted the following: • Population Growth • Community Awareness Emergency Response (CAER) program • Flood Recovery Program • Business Continuity Planning • Community Energy Program • Regionalization of Services • Safe, Clean Drinking Water Program • Financial Management Policies • Building Permit Values S. Rackley -Roach presented the metrics for performance, including: Growth and Prosperity Priority • Municipal Tax Base Assessment • ROI on Urban Development Incentives • Building Permit Values Vibrant, Safe City Priority • Fire Emergency Response Times • Structure Fire Containment Valued Service Delivery • Delivery of Water without Large Scale Boil Water Orders • Pavement Condition Index • Transit Ridership • Transit Cost Recovery Fiscally Responsible • Building Permit Revenue • Pay as you go budget • Reserves • Debt per capita Moved by Deputy Mayor McAlary, seconded by Councillor MacKenzie: 5 61 COMMON COUNCIL/ CONSEIL COMMUNAL October 9, 2018 / le 9 octobre 2018 RESOLVED that the submitted report, M&C2018-273: 2018 Corporate Work Plan and Key Performance Indicator Report, be received for information. MOTION CARRIED. 13. Committee Reports 14. Consideration of Issues Separated from Consent Agenda 15. General Correspondence 15.1 CPA New Brunswick Enhanced Financial Literacy Program Moved by Deputy Mayor McAlary, seconded by Councillor Norton: RESOLVED that the City of Saint John supports the enhanced Financial Literacy Program being launched by CPA New Brunswick. MOTION CARRIED. 15.2 Ticket Request - Red Cross Power of Humanity Awards Dinner Moved by Deputy Mayor McAlary, seconded by Councillor Norton: RESOLVED that the ticket purchase request for the Red Cross Power of Humanity Awards Dinner be approved and the Office of the Common Clerk be directed to purchase tickets for those Council members wishing to attend the event. MOTION CARRIED. 16. Supplemental Agenda 16.1 Tucker Park Recreation Association Reauest for Fundiniz from the Tucker Park Fund to Build a Wheelchair Accessible Viewing Deck Moved by Councillor Sullivan, seconded by Councillor MacKenzie: RESOLVED that as recommended by the City Manager in the submitted report entitled M&C 2018-236: Tucker Park Recreation Association Request for Funding from the Tucker Park Fund to Build a Wheelchair Accessible Viewing Deck, Common Council approve the release of $15,750 of the accumulated interest from the Tucker Park Trust Fund, contingent upon successful acquisition of Federal Government Enabling Accessibility grant, to be used for Park improvement. MOTION CARRIED. 16.2 Service Agreement for Park Drive C.1 COMMON COUNCIL/ CONSEIL COMMUNAL October 9, 2018 / le 9 octobre 2018 Moved by Deputy Mayor McAlary, seconded by Councillor Merrithew: RESOLVED that as recommended by the City Manager in the submitted report entitled M&C 2018-274: Service Agreement for Park Drive, Common Council accept the terms of the submitted service agreement between the Town of Rothesay and The City of Saint John for the service and maintenance of Park Drive, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. IL 100000114Y1:]:]11191 16.3 Ticket Request — Big Brothers and Big Sisters Inspire Mentoring Awards Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the ticket purchase request for the Big Brothers and Big Sisters Inspire Mentoring Awards be approved and the Office of the Common Clerk be directed to purchase tickets for those Council members wishing to attend the event. MOTION CARRIED. 17. Committee of the Whole 17.1 After Action Review and Letters to Department of Public Safety and Irving Oil Limited following the Incident at Irving Oil Refinery Moved by Councillor Lowe, seconded by Deputy Mayor McAlary: RESOLVED that, as recommended by the Committee of the Whole having met on October 9t", 2018, Council support the Fire Chief in his call for a comprehensive after action review of the October 8t" fire event at the Irving Oil refinery; and further that a letter be sent to the department of Public Safety communicating the City's requirement for after action review; and further that the City write a letter to Irving Oil communicating these expectations. MOTION CARRIED. 18. Adjournment Moved by Councillor Armstrong, seconded by Councillor MacKenzie: RESOLVED that the meeting of Common Council held on October 9, 2018, be adjourned. MOTION CARRIED. The Mayor declared the meeting adjourned at 7:39 p.m. rA Mayor Darling and ro-TIM75OX-A 15 Market Square Saint John, N.B. E21-41-1 John de Gruyter's and Alan Lock's terms as City appointed Trustees are both expiring on February 1, their excellent work as Trustees on the Pension Board. We are requesting that two new City Appointees to the Board be made per provisions of the Agreement and Declaration of Trust for City of Saint John Shared Risk Plan dated February 1, 2013. The Board of Trustees believes an&fective Trustee requires a significant commitment with respect to familiarization with the plan and investment practices. Understanding that the appointments are the Council's prerogative, we request that Michael Duncan, who has been an Alternate Trustee, works in t investment industry, and is familiar with the plan, be appointed as a regular Trustee and a new Alterna Trustee be appointed. 11 IMAINUMANOMP, Trustee if that is of interest to the nominating committee. zm�=, Fred Slipp il / Chair, Board of Pension Trustees Board of Trustees City of Saint John P.O. Box 1971, 15 Market Square Shared Risk Pension Plan Saint John, N.B. E2L4L1. 506-658-2862 1 41 COUNCIL REPORT M&C No. 2018-284 Report Date October 17, 2018 Meeting Date October 22, 2018 Service Area Corporate Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Amendment 4 to Bell Ethernet Service Schedule OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadCity Manager Robert James Stephanie Rackley -Roach Neil Jacobsen Neil Jacobsen RECOMMENDATION The City Manager recommends that Mayor and Common Clerk be authorized to execute the Amendment 4 to Bell Ethernet Services Schedule agreement with Bell Aliant to facilitate a colocation solution for data centre services. EXECUTIVE SUMMARY To facilitate the move of the City's data centre to the collocated data centre, as was approved by Council on May 21, 2018, additional network circuits are required to the Bell Aliant data center as well as an upgrade to an existing circuit connecting the Peel Plaza police headquarters data center. These circuits will provide the necessary redundant network communications for City Hall, Police Headquarters and other city facilities to the collocated data center. PREVIOUS RESOLUTIONS May 22, 2018: 5.12: RESOLVED that as recommended by the City Manager in the submitted report M&C 2018-154: Data Centre - Infrastructure & Hosting Services Schedule (Colocation), the Mayor and Common Clerk be authorized to execute the Amendment 2 to Business Internet Services Schedule to renew internet services and the Data Centre — Infrastructure & Hosting Services Schedule (Colocation) agreement with Bell Aliant to implement a colocation solution for data center services. April 18, 2017: 5.6: RESOLVED that as recommended by the City Manager in the submitted report M&C 2017-093: Network Communications Services for the City of Saint John, the City enters into Amendment 3 to Bell Ethernet Services Schedule agreement (submitted) with Bell Aliant Regional Communications, Limited Partnership -2 - (Bell Aliant) for the delivery of Ethernet network services; and, that the Mayor and Common Clerk be authorized to execute the necessary documents. September 16, 2013: 5.1: RESOLVED that as recommended by the City Manager in the submitted report Voice and Data Communication Services for the City of Saint John: The City enter into agreements with Bell Aliant Regional Communications, Limited Partnership for the delivery of: a. Unified Communications & Centrex Multi -provincial Blended Rates Services Schedule the form as attached to the submitted letter to Council. b. Bell Aliant Ethernet Services Schedule the form as attached to the submitted letter to Council. c. Loyalty Discount Program Schedule the form as attached to the submitted letter to Council, and That the Mayor and Clerk be authorized to execute the said agreement. REPORT In the May 21" report to Council it was indicated that in the migration to the Bell Aliant data center there would be a requirement for an additional circuit at $1,515.00 per month that would be finalized and submitted to Council during implementation. The initial network design for the implementation has been completed and the following additions and changes to the network circuits have been finalized. The solution is designed to provide quick internet speeds, even if part of the network goes down and network traffic is rerouted to other circuits. There are two additional circuits required at a cost of $595/month each as well as an upgrade to the circuit to the Peel Plaza police headquarters data center from 100 MB to 1000 MB at an additional monthly cost of $120. These circuits will provide the necessary redundant network communications for City Hall, Police Headquarters and other city facilities to the collocated data center. The total monthly cost will be $1,310.00 per month. STRATEGIC ALIGNMENT As outlined in Council Priorities, the City is looking for strategic approaches to financial management and valued service delivery. Colocation of the data center, as a Cl project, will generate operational and capital cost savings, while improving service delivery. More specifically, improve business continuity and security around our data assets. SERVICE AND FINANCIAL OUTCOMES The cost of the additional circuits has already been approved by Council with the award of the colocation to Bell Aliant of the data center. All costs related to the data center are included in the Information Technology general fund operating budget. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Materials Management has reviewed the Amendment 4 to Bell Ethernet Services Schedule and supports the recommendation being put forth. iN -3 - The City Solicitor's Office has reviewed the Amendment 4 to Bell Ethernet Services Schedule for network circuit additions and upgrades to facilitate the colocation of the City's data center and advises that there are no concerns from a legal perspective. ATTACHMENTS Amendment 4 to Bell Ethernet Services Schedule 11 DocuSign Envelope ID: A3130041-B62A-40F5-B80E-79CC69F32FF8 MIAliant Master Agreement: CN -0807-8441 Services Schedule Number: CN -1304-27389 Amendment Number: CN -1712-60678 Amendment 4 to Bell Ethernet Services Schedule, made as of October 5, 2018 ("Amendment'). Between: City Of Saint John (the "Customer"), and Bell Aliant, a division of Bell Canada ("Bell'), WHEREAS Bell Aliant Regional Communications, Limited Partnership and the Customer entered into an Bell Ethernet Services Schedule (CN -1304-27389) effective as of March 29, 2017 (the "Services Schedule"); AND WHEREAS Bell Aliant Regional Communications, Limited Partnership subsequently assigned the Services Schedule to Bell Canada, as part of internal restructuring resulting in Bell Aliant becoming a division of Bell Canada, effective July 1, 2015; AND WHEREAS both parties desire to amend the Services Schedule as described in this Amendment, and any attachments to it; NOW THEREFORE the parties agree as follows: 1. Section 3, Tables 1, 2, and 3 of the Services Schedule are hereby deleted and replaced with the revised Tables 1, 2, and 3 attached hereto as Appendix "A". 2. All other provisions of the Services Schedule remain in full force and effect, unchanged. IN WITNESS WHEREOF the parties have executed this Amendment as of the date herein above first written. City Of Saint John SIGNATURE: NAME: MAYOR: I am authorized to bind Customer to the terms and conditions of this Amendment. DATE: YYYY-MM-DD City Of Saint John SIGNATURE: NAME: COMMON CLERK: I am authorized to bind Customer to the terms and Bell Aliant, a division of Bell Canada DocuSigned by: SIGNATURE:I—/I&,-I" 3E5BB97788�F4CD... NAME: Steve Titus TITLE: Director of Sales I am authorized to bind Bell Canada to the terms and conditions of this Amendment. DATE: 2018-10-11 , fia& u u9 9 Amendment to Bell Ethernet Services Schedule Version 1.3 Page 1 of 4 July 1, 2015 12 DocuSign Envelope ID: A3130041-B62A-40F5-B80E-79CC69F32FF8 conditions of this Amendment. DATE: 1�AMLTA =A9 DATE: Amendment to Bell Ethernet Services Schedule Version 1.3 Page 2 of 4 13 Master Agreement: CN -0807-8441 Services Schedule Number: CN -1304-27389 Amendment Number: CN -1712-60678 July 1, 2015 DocuSign Envelope ID: A3130041-B62A-40F5-B80E-79CC69F32FF8 EMIAliant Master Agreement: CN -0807-8441 Services Schedule Number: CN -1304-27389 Amendment Number: CN -1712-60678 APPENDIX "A" TO AMENDMENT 4 TO BELL ETHERNET SERVICES SCHEDULE Table 1 Fiber Access Sites Term: 5 Yr Amendment to Bell Ethernet Services Schedule Version 1.3 Page 3 of 4 July 1, 2015 14 Access Monthly Prem. Subtotal Total One Loc ID Location Qty Speed Fees per Subtotal BW Rate per Premium Monthly Time Address (Mbps) Site Site Fees (Mbps) Mbps Bandwidth Fees Fees Fees 600 Fire Station 8 Millidgeville 1 100 $475 $475 1 $40 $40 $515 N/A Ave Parks 171 1 100 $475 $475 1 $40 $40 $515 N/A Adelaide Fire Station 1 45 Letnster 1 100 $475 $475 1 $40 $40 $515 N/A Operatio nsM/orks 525 McAllister 1 100 $475 $475 1 $40 $40 $515 N/A East Dr. Operations/ 100 Boars 1 100 $475 $475 1 $40 $40 $515 N/A Works North Head Road Fire Station 4 36 Courtney 1 100 $475 $475 $475 N/A (Police East) Ave. 35 Fire Station 5 Adelaide 1 100 $475 $475 $475 N/A St. 842 Loch Fire Station 2 Lomond 1 100 $475 $475 $475 N/A Road Fire Station 6 286 King 1 100 $475 $475 $475 N/A Street West Fire Station 7 41 (Police West) Manchester 1 100 $475 $475 $475 N/A Ave. 55 City Transit McDonald 1 100 $475 $475 1 $40 $40 $515 N/A St. Peter Murray 711 Dever 1 100 $475 $475 $475 N/A Arena Road West LBR Rink 536 Main 1 100 $475 $475 $475 N/A t. Stewart Hurley 1500 Arena Hickey 1 100 $475 $475 $475 N/A Road Belyea Rink 390 Lowell 1 100 $475 $475 $475 N/A St. West Hazen Creek 441 Red 1 100 $475 $475 1 $40 $40 $515 N/A Head Road Peel Plaza 1 Peel 1 1000 $595 $595 $595 N/A Plaza Amendment to Bell Ethernet Services Schedule Version 1.3 Page 3 of 4 July 1, 2015 14 DocuSign Envelope ID: A3130041-B62A-40F5-B80E-79CC69F32FF8 Master Agreement: CN -0807-8441 Services Schedule Number: CN -1304-27389 Amendment Number: CN -1712-60678 Fire Station 1 45 Leinster Subtotal Subtotal Redundant St 1 100 $475 $475 Prem. Total One $475 N/A Connection Subtotal Subtotal Rate Premium Location Address Qty Speed 15 Market Qty Speed Fees per Monthly BW ID Monthly Time City Hall Square 9th 1 1000 $595 $595 14 $40 $560 $1,155 N/A floor (Mbps) Site (64k) Fees Fees Millidgeville Data 7 McIntosh 2 1000 $595 $1,190 0 Fees $1,190 N/A Centre $0 0 $0 $0 0 $0 $0 $0 $0 Table 2 DSL Access and Bandwidth Term: 6 Year Total: 1 $0 1 $0 Table 3 TDM (T1/Bonded T1) Access and Bandwidth Term: 6 Year Subtotal Subtotal Access Access Monthly Prem. Prem. Total One Total One Loc Subtotal Subtotal Rate Premium Location Address Qty Speed Location Address Qty Speed Fees per Monthly BW ID Monthly Time ID Site Fees Bandwidth Site Fees per 64k Bandwidth (Mbps) Site (YEN) (Mbps) Site (64k) Fees Fees Fees 0 Fees $0 No $0 $0 0 $0 $0 0 $0 $0 $0 $0 $0 $0 0 $0 $0 0 $0 $0 $0 $0 1 $0 0 $0 $0 0 $0 $0 $0 $0 Total: 1 $0 1 $0 Table 3 TDM (T1/Bonded T1) Access and Bandwidth Term: 6 Year Total: 1 $0 1 $0 Amendment to Bell Ethernet Services Schedule Version 1.3 Page 4 of 4 July 1, 2015 15 Subtotal Access Monthly Prem. Total One Loc Subtotal Premium Location Address Qty Speed Fees per BW Monthly Time ID Site Fees Bandwidth (Mbps) Site (YEN) Fees Fees Fees 0 $0 $0 No $0 $0 $0 0 $0 $0 No $0 $0 $0 0 $0 $0 No $0 $0 1 $0 Total: 1 $0 1 $0 Amendment to Bell Ethernet Services Schedule Version 1.3 Page 4 of 4 July 1, 2015 15 1 41 COUNCIL REPORT M&C No. 2018-282 Report Date October 15, 2018 Meeting Date October 22, 2018 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Proposed Public Hearing Date —105 Prince Edward Street, 4 Second Street and 915 Red Head Road OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager Mark Reade Jacqueline Hamilton m I Neil Jacobsen RECOMMENDATION That Common Council schedule the public hearing for the rezoning and Section 59 Amendment applications of Owen Green (105 Prince Edward Street), Michael Saunders (4 Second Street) and Don Merzetti (915 Red Head Road), for Monday December 3, 2018 at 6:30 p.m. in the Council Chamber, and refer the applications to the Planning Advisory Committee for a report and recommendation. EXECUTIVE SUMMARY The purpose of this report is to advise Common Council of the rezoning and Section 59 amendment applications received and to recommend an appropriate public hearing date. The next available public hearing date is Monday December 3, 2018. PREVIOUS RESOLUTION At its meeting of August 3, 2004, Common Council resolved that: 1. the Commissioner of Planning and Development receive all applications for amendments to the Zoning By-law and Section 39 resolutions/agreements and proceed to prepare the required advertisements; and 2. when applications are received a report will be prepared recommending the appropriate resolution setting the time and place for public hearings and be referred to the Planning Advisory Committee as required by the Community Planning Act. -2 - REPORT As provided in Common Council's resolution of August 3, 2004, this report indicates the rezoning and Section 59 amendment applications received and recommends an appropriate public hearing date. Details of the applications are available in the Common Clerk's office and will form part of the documentation at the public hearings. The following applications have been received: Name of Location Existing Proposed Reason Applicant Zone Zone Owen Green 105 Prince Mixed General To allow for a Edward Street Commercial Commercial commercial use (CM) (CG) above the second storey of the existing building. Michael 4 Second Street Neighbourhood Low -Rise To allow for Saunders Community Residential conversion of an Facility (CFN) (RL) existing church to a residential use. Don Merzetti 915 Red Head Rural Section 59 To rescind the Road Residential Amendment existing Section 59 (RR) conditions that restrict the use of the STRATEGIC ALIGNMENT While the holding of public hearings for proposed rezoning and Section 59 amendments is a legislative requirement of the Community Planning Act, it is also a key component of a clear and consistent land development processes envisioned in the One Stop Development Shop Program. These processes provide transparency and predictability for the development community and City residents. On a broader note, the development approvals process works towards fulfilling key Council priorities including: • ensuring Saint John has a competitive business environment for investment, • supporting business retention and attraction; and • driving development in accordance with PlanSJ which creates the density required for efficient infrastructure and services. SERVICE AND FINANCIAL OUTCOMES The scheduling of the public hearing and referral to the Planning Advisory Committee satisfies the legislative and service requirements as mandated by the Community Planning Service. 17 -3 - INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Not Applicable ATTACHMENTS None iF:3 1 41 COUNCIL REPORT M&C No. 18-278 Report Date October 15, 2018 Meeting Date October 22, 2018 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Designation of By -Law Enforcement Officers OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Christopher McKiel Jacqueline Hamilton/Amy Poffenroth Neil Jacobsen RECOMMENDATION It is recommended that Common Council adopt the attached resolution. EXECUTIVE SUMMARY On January 1, 2018 the Local Governance Act came into force which replaced the Municipalities Act. On September 24, 2018, the Saint John Minimum Property Standards By-law was updated to reflect the new legislation. As a result, it is necessary to update the designation of by-law enforcement officers to reflect these changes. PREVIOUS RESOLUTION September 24, 2018: RESOLVED that the by-law entitled, "By -Law Number M-14, A By -Law Respecting Standards for Maintenance and Occupancy of Buildings and Premises within the City of Saint John" be enacted. REPORT On January 1, 2018 the Local Governance Act came into force which replaced the Municipalities Act. On September 24, 2018, the Saint John Minimum Property Standards By-law was updated to reflect the new legislation. As a result, it is necessary to update the designation of by-law enforcement officers to reflect these changes. -2 - It is necessary at this time to designate Pamela Bentley, Vincent Chan, Lorraine Denton, Tamara Duke, Marc Goguen, Stephen Guenette, Philip Mitton, Amy Poffenroth, Dennis Richard, Mark Slader, Catherine Lowe, Rachel Van Wart and Christopher McKiel as by-law enforcement officers by adopting the attached resolution so that they may carry out their duties pertaining to enforcement of the Minimum Property Standards By -Law. STRATEGIC ALIGNMENT The attached resolution for the designation of by-law enforcement officers is necessary for the enforcement of the Minimum Property Standards Program. SERVICE AND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The Legal Department drafted the attached resolution. ATTACHMENTS Resolution K91 RESOLVED, that as recommended by the City Manager, the following resolution be adopted: 1. WHEREAS the Common Council of The City of Saint John has enacted certain by-laws pursuant to the authority of the Local Governance Act, S.N.B. 2017 c.18, and amendments thereto, (the "Local Governance Act") including the Saint John Minimum Property Standards By- law, By-law Number M-14 and amendments thereto, and it may from time to time be necessary to make inspections for the administration of the By-law; AND WHEREAS section 72 of the Local Governance Act provides that a council may appoint by-law enforcement officers for the local government and may determine their terms of office; AND WHEREAS subsection 144(2) of the Local Governance Act provides that a council may authorize by-law enforcement officers to enter the land, building or other structure at any reasonable time, and carry out the inspection after giving reasonable notice to the owner or occupant of the land, building or other structure to be entered; NOW THEREFORE BE IT RESOLVED, that Pamela Bentley, Vincent Chan, Lorraine Denton, Tamara Duke, Marc Goguen, Stephen Guenette, Catherine Lowe, Christopher McKiel, Philip Mitton, Amy Poffenroth, Dennis Richard, Mark Slader and Rachel Van Wart, by-law enforcement officers, are hereby appointed as inspection officers and authorized to enter at all reasonable times upon any property within the territorial boundaries of the City of Saint John for the purpose of making any inspection that is necessary for the administration of the Saint John Minimum Property Standards By- law which received first and second reading by Common Council on September 10, 2018 and third reading on September 24, 2018, being enacted upon approval by the Minister of Local Government, and/or the Local Governance Act effective immediately, and this authorization shall continue until he/she ceases to be an employee of the Growth and Community Development Services department of The City of Saint John or until rescinded by Common Council, whichever comes first. 2. WHEREAS the Common Council of The City of Saint John has enacted certain by-laws pursuant to the authority of the Local Governance Act, including the Saint John Minimum Property Standards By-law, By-law Number M-14, and amendments thereto, (the "Saint John Minimum Property Standards By -laud') and it may from time to time be necessary to commence proceedings in the Provincial Court of the Province of New Brunswick, when a person has violated or failed to comply with the said By-law; AND WHEREAS section 72 of the Local Governance Act provides that a council may appoint by-law enforcement officers for the local government and may determine their terms of office; AND WHEREAS subsection 25(1) of the Saint John Minimum Property Standards By-law provides that a by-law enforcement officer appointed by council may notify the owner or occupier of premises, dwelling, dwelling unit or structure by issuing an Order where the condition of the premises, dwelling, dwelling unit or structure does not comply with said By- law; AND WHEREAS section 150(1) of the Local Governance Act provides that proceedings for breach of a by-law shall be commenced in the name of the clerk of the municipality or such other person as is designated for that purpose by the council; NOW THEREFORE BE IT RESOLVED, that Pamela Bentley, Catherine Lowe, Christopher McKiel, Amy Poffenroth, Rachel Van Wart, Philip Mitton, Dennis Richard, Lord Denton, Tamara Duke, Stephen Guenette, Marc Goguen, Vince Chan, and Mark 21 Slader are hereby appointed as by-law enforcement officers with respect to the enforcement of the Saint John Minimum Property Standards By-law, effective immediately, and this appointment shall continue until he/she ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes first; AND BE IT FURTHER RESOLVED, that Pamela Bentley, Catherine Lowe, Christopher McKiel, Amy Poffenroth, Rachel Van Wart, Philip Mitton, Dennis Richard, Lord Denton, Tamara Duke, Stephen Guenette, Marc Goguen, Vince Chan, and Mark Slader are hereby appointed and authorized to notify owners and occupiers where the condition of the premises, dwellings, dwelling units or structures does not comply with the Minimum Property Standards By-law, effective immediately, and this appointment and authorization shall continue until he/ she ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes first; AND BE IT FURTHER RESOLVED, that Pamela Bentley, Catherine Lowe, Christopher McKiel, Amy Poffenroth, Rachel Van Wart, Philip Mitton, Dennis Richard, Lord Denton, Tamara Duke, Stephen Guenette, Marc Goguen, Vince Chan, and Mark Slader are hereby designated and authorized to lay informations in the Provincial Court of the Province of New Brunswick for breach of the Saint John Minimum Property Standards By-law, effective immediately, and this designation and authorization shall continue until he/she ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes first. WA 1 41 COUNCIL REPORT M&C No. 1.11..283 Report Date October 19, 2018 Meeting Date October 22, 2018 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Urban Development Incentives Grant Agreement OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Andy Reid Jacqueline Hamilton /Phil Ouellette Neil Jacobsen RECOMMENDATION 1. That Common Council authorize the Mayor and Common Clerk of Saint John to execute the following grant agreement as attached to this report: a. The Vacant Building Redevelopment Agreement with the Saint John Community Loan Fund for 40 Exmouth Street. EXECUTIVE SUMMARY The Urban Development Incentive Program was a three year pilot program designed to support the revitalization of the Central Peninsula. The purpose of this report is to approve a grant agreement that was received on September 17th, 2018, subsequent to the September 1" deadline specified by policy. A full evaluation of the program is currently underway and forthcoming for Council's review. PREVIOUS RESOLUTION At its December 12, 2016 meeting, Common Council adopted a resolution to amend the Urban Development Incentive & Beautification Grant Program Policies and approved the establishment of a reserve fund to support the operations of the Urban Development Incentives Program. STRATEGIC ALIGNMENT W -2 - As a priority to Growth and Prosperity, Council identified driving development in accordance with PlanSJ as a key outcome. Municipal Plan policy identified the development of an urban development incentive program. The return on investment of the Program is an indicator of success in achieving this priority. REPORT The Urban Development Incentives Program was designed to provide financial support to development or redevelopment projects and to reduce financial barriers and limit the risk associated with investment. It is comprised of three specific programs: • Infill Development; • Upper Floors Redevelopment; and • Vacant Building Redevelopment. From 2016-2018, 11 grant agreements for incentive projects were made, comprising a value of $7,651,427.39 in construction cost estimates and 71 additional units. A full evaluation of the Urban Development Incentives Program is currently underway this year for Council's consideration. The attached grant agreement and application is for the redevelopment of a vacant, two unit building on 40 Exmouth Street. The project meets all policy requirements with the exception of the submission deadline (September 1St 2018). SERVICE AND FINANCIAL OUTCOMES In the first year of operations, the multi -tiered grant demonstrated strong financial performance. It is anticipated that grants owing to all projects will be recovered by new revenue from building permits and taxes within a five year period at maximum. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS 1. Grant Agreement -40 Exmouth Street ME Attachment A Grant Agreement 40 Exmouth Street 25 GRANT AGREEMENT THIS AGREEMENT made in duplicate this day of , [2018]. BY AND BETWEEN: Saint John Community Loan Fund Inc. of the City of Saint John and Province of New Brunswick a body corporate duly registered under the laws of the Province of New Brunswick (hereinafter called the "Developer") OF THE FIRST PART And THE CITY OF SAINT JOHN, a body corporate by Royal Charter, confirmed and amended by Acts of the Legislature of the Province of New Brunswick (hereinafter called the "City") A71111111111I.1�9xK9]101I0MG1:i9 WHEREAS the City supports the revitalization of the Central Peninsula Neighbourhood and acknowledges a need for additional financial support for residential development in this area; and WHEREAS at its meeting held the 21St of March, 2016 the City adopted an Urban Development Incentive Policy ("Policy") to establish financial incentives to encourage developers and property owners in strategic areas within the City's Central Peninsula to invest in the creation of new residential units through either new construction or the redevelopment of existing buildings; and WHEREAS the Policy contemplates three programs: 1) The Infill Development Program; 2) The Upper Floors Redevelopment Program; and 3) The Vacant Building Redevelopment Program; and WHEREAS the Developer has applied for a Grant under the Vacant Building Redevelopment program for a development on a property bearing PID 00012922 (the "Property") and the proposed development meets the eligibility requirement for the said program; and WHEREAS the Policy requires that an applicant who meets the eligibility requirement of a given Program under the Policy enter into a Grant Agreement in order to receive the Grants contemplated in a given Program; and 26 2 WHEREAS the Developer's application was not granted under the Policy; and WHEREAS at its meeting held the October 22nd, 2018 the City decided to grant to the Developer a grant to be administered in the same manner as a Grant under the Policy. NOW THEREFORE THIS AGREEMENT WITNESSETH that the parties hereto covenant and agree each with the other as follows: 1. The development for which the Grant contemplated in this Agreement shall be paid is outlined in the prescribed application form, site plan and drawings attached hereto as Schedule "A" (hereinafter the "Project"). 2. Construction of the Project shall begin within two (2) months of the date of execution of this Agreement or on or before May 15th of the year this Agreement is executed, whichever is the later date. 3. The Construction Costs contemplated in the Policy and used for the purpose of calculating the amount of the Residential Density Grant hereunder are $117,323.45. 4. The Construction Challenge Costs for the purpose of the Policy and used to calculate the Construction Challenge Grant are $4,548.00 5. The Developer shall complete the Project no later than November 1st 2020. Residential Density Grant a (1) In the event that the project is completed by November 1st 2019, the City shall, pursuant to the terms and conditions identified herein, pay to the Developer for its Non -Market Housing Project a total Residential Density Grant amount of $4,938 in five installments in accordance with the following schedule: (2) In the event that the project is completed by November 1st 2020, the City shall, pursuant to the terms and conditions identified herein, pay to the Developer for its Non -Market Housing Project a total Residential Density Grant amount of $4,938 in five installments in accordance with the following schedule: 27 Date Annual Grant Amount 1. July 2019 $ 1,162 2. July 2020 $ 1,162 3. July 2021 $ 1,162 4. July 2022 $ 871 5. July 2023 $ 581 (2) In the event that the project is completed by November 1st 2020, the City shall, pursuant to the terms and conditions identified herein, pay to the Developer for its Non -Market Housing Project a total Residential Density Grant amount of $4,938 in five installments in accordance with the following schedule: 27 3 7. The City's obligation to pay the Residential Density Grant is conditional upon: a. the City completing a final site and building inspection which confirms that the relevant incentive program eligibility criteria have been met; and b. the Developer being in receipt of an occupancy permit or a certificate of successful completion pursuant to the City's Building By -Law. 8. The Developer, upon the completion of the Project, shall submit evidence confirming the Construction Costs of the Project in the form of receipts for materials and work completed, or audited statements prepared by a certified professional accountant. Residential Construction Challenges Grant 9. The City shall, pursuant to the terms and conditions identified herein, pay to the Developer a Residential Construction Challenges Grant in the amount of $1,137 following the receipt by the Developer of an occupancy permit or certificate of successful completion under the City's Building By -Law. 10. The City's obligation to pay the Residential Construction Challenges Grant is conditional upon: c. the City completing a final site and building inspection which confirms that the relevant incentive program eligibility criteria have been met; and d. the Developer being in receipt of an occupancy permit or a certificate of successful completion pursuant to the City's Building By -Law. 11. Following the completion of the Project, the applicant shall submit evidence confirming the Construction Challenges Costs in the form of receipts for materials and work completed, or audited statements prepared by a certified professional accountant. Building Permit Grant 28 Date Annual Grant Amount 1. July 2020 $ 1,162 2. July 2021 $ 1,162 3. July 2022 $ 1,162 4. July 2023 $ 871 5. July 2024 $ 581 7. The City's obligation to pay the Residential Density Grant is conditional upon: a. the City completing a final site and building inspection which confirms that the relevant incentive program eligibility criteria have been met; and b. the Developer being in receipt of an occupancy permit or a certificate of successful completion pursuant to the City's Building By -Law. 8. The Developer, upon the completion of the Project, shall submit evidence confirming the Construction Costs of the Project in the form of receipts for materials and work completed, or audited statements prepared by a certified professional accountant. Residential Construction Challenges Grant 9. The City shall, pursuant to the terms and conditions identified herein, pay to the Developer a Residential Construction Challenges Grant in the amount of $1,137 following the receipt by the Developer of an occupancy permit or certificate of successful completion under the City's Building By -Law. 10. The City's obligation to pay the Residential Construction Challenges Grant is conditional upon: c. the City completing a final site and building inspection which confirms that the relevant incentive program eligibility criteria have been met; and d. the Developer being in receipt of an occupancy permit or a certificate of successful completion pursuant to the City's Building By -Law. 11. Following the completion of the Project, the applicant shall submit evidence confirming the Construction Challenges Costs in the form of receipts for materials and work completed, or audited statements prepared by a certified professional accountant. Building Permit Grant 28 4 12. The City shall, pursuant to the terms and conditions identified herein, pay to the Developer for its Non -Market Housing Project or Vacant Building Redevelopment Project a Building Permit Grant in the amount of $886 following receipt by the Developer of an occupancy permit or certificate of successful completion pursuant to the City's Building By -Law. 13. The City's obligation to pay the Building Permit Grant is conditional upon: e. the City completing a final site and building inspection confirming that the relevant program eligibility criteria have been met; and f. the Developer being in receipt of an occupancy permit or a certificate of successful completion pursuant to the City's Building By -Law. 14.The City's obligation to pay the grants contemplated in this Agreement is conditional upon the property taxes and water and sewerage fees for the Property being paid in full at the time the City is to pay the grant to the Developer. Termination 15. The City may terminate this agreement without notice upon the occurrence of one of the following events: g. the Construction of the Project does not begin on the date set out at section 2; h. changes are made to the design of the building during construction that do not comply with the eligibility criteria of the relevant incentive program for the grants contemplated in this Agreement; i. the Project is not completed on or before the date stipulated at section 5. 16.The Developer shall post on the Property City issued lawn signs and window stickers advertising the Development Incentive Program under which a grant was given and is contemplated in this Agreement and shall include on any other signs prepared by the Developer to advertise the Project, the Development Incentive Program under which a grant was given and is contemplated in this Agreement. 17. This Agreement may not be assigned without the written consent of the City. 18.This Agreement shall be governed by the laws of the Province of New Brunswick. 19. No amendment of this Agreement is effective unless made in writing and signed by a duly authorized representative of each of the City and the Developer. No waiver of any provision of this Agreement is effective unless made in writing, and any such waiver has effect only in respect of the particular provision or circumstance stated in the waiver. No representation 29 5 by either of the parties with respect to the performance of any obligation under this Agreement is capable of giving rise to an estoppel unless the representation is made in writing. 20. Each party shall be responsible for paying its own costs and expenses incurred in connection with the execution and delivery of this Agreement. 21.This Agreement shall be binding upon and enure to the benefit of the parties hereto, their respective successors and assigns. 30 IN WITNESS WHEREOF the parties hereto have caused these presence to be duly executed by the properly authorized officers and their respective corporate seals affixed hereto the day and year first above written. SIGNED, SEALED AND DELIVERED in the presence of: Per: 31 Saint John Community Loan Fund Inc. Name: Seth Asimakos Title: General Manager THE CITY OF SAINT JOHN Mayor Common Clerk Common Council Resolution: SCHEDULE A (Application Form, Site Plan and Drawings) 32 (aussi disponible en fran�ais) Type of Application ❑ Infill Development Program6/Vacant Building Re -development Program ❑ Upper Moors Re -development Program ❑ Vacant Building Re -development Program (Building with Substantial & Persistent Vacnacy) c � Name of Property Owner (if different from applicant) 6� �� Mailing Address (with Postal Code) t Property Information Location Civic #Street PID p�� F Existing Use of Property til 0 Proposed Use of Property NOTE: If the applicant is NOT the required.---� (in writing) to submit this application is Signature of Owner Date Description of the development Incentive Application you propose to construct (attach additional pages if necessary). fib' Are you applying for finan 1 assistance under the Affordable Rental Housing Program of the Province of New Brunswick? Yes ❑ No If yes, how many units are eligible? Flow many units are not eligible? Are you applying for financial istance under the Province of New Brunswick's Rental Residential Rehabilitation Assistance Program? Yes LK No ❑ ar P.O. Box 19715aintJohn, NB Canada E2L 4L1 www.sa hn.ca C.P. 1971 Saint John. N. -B. Canada E21L41-1 SAINT JOHN moryor�� Estimated Cost of Construction Construction Cost Estimate Accompanying the Application ❑ �f ZDifferent Sets of Contractor Estimates Cost to Construct Budget Prepared Profession Architect, Engineer or Accountant Construction Cost Estimate $ Construction Challenge Cost r !� Estimates $ ❑ " ❑ Breaking & Removal of Rock Remediation of Contaminated Soils ❑ Extension of Sewer Services Properties Combined ❑ Installation of a Sprinkler (For on System Sewers) ❑ Installation of a Sprinkler ❑ Construction to Meet System Secondary Egress Standards Construction Challenges El Installation New Elevator �y.-onstruction to Fire Separation of a i Standards ®-*fh—e Removal of Asbestos ❑ The Removal of Lcad Paint ❑ The Cutting of Windows ❑ Replacement of Knob and Tube through Brick or Stone Electrical ❑ Structural or Foundation Repairs in excess of $20,000 or 5% of Project Costs, Information Accompanying Application: ❑ Letter of Intent os t Confirmation & Breakdown i door Plans ❑d Site Plan Building Elevations Interior Photographs ❑ Tentative Subdivision ❑ Other Plan Project Schedule:IN Estimated Date of Building Per t 5ubnrission ' ' .M , 1 tf 0_ k— Estimated Project Start Date: Estimated Project Completion Date: For Office Use Only Reviewed By: Date: Project Number: Eligibility Confirmed: Yes ❑ No ❑ Wait List Number: City Hall Building 10th Floor - 15 Market Square Saint John, NB E2L IE8 OneSton @ saintiohn.ca (506) 658-2911 P.O. Box 1471 Saint John, NB Canada E2L 4L1 www.s hn.ca C.P. 1971 Saint John. N. -B. Canada M41 SAINT JOHN mcro.orsa�� Saint John Community Loan Fund Re: Renovations 40 Exmouth St I have reviewed the cost estimates provided by you, based upon your negotiations, with various suppliers and contractors and find them to be reasonable for the intended scope of work. Yours truly,-, Oy Robert L. Boyce, Architect Robert L. Boyce, B.Arch AANB 77 Germain St Saint John, N.B. E2L 2E8 Cell 506-639-529:3 Email: robertboyce@rogers.com MI Demo costs are not 2. Interior walls and ceilings $21 $9,604.13 eligible under the 3. Subflooring & underlayment $6,899.10 program 4. Finish flooring $7,465.51 5. Interior doors and trim $6,303.12 6. Windows and exterior doors $15,717.05 7. Interior paint $3,173.40 8. Kitchen cabinets $8,500 9. Electrical $11,500, 10. Plumbing $14,029.90 11. Heating & ventilation $11,500 12. Misc framing $1,602.48 13. Exterior siding, fascia $16,190.,76 14. Exterior landings, steps $4,838.00 Total$446A,2-3-.0 $117,323.45 Yours truly,-, Oy Robert L. Boyce, Architect Robert L. Boyce, B.Arch AANB 77 Germain St Saint John, N.B. E2L 2E8 Cell 506-639-529:3 Email: robertboyce@rogers.com MI � w,Yzy»« � O � 2 --- L ws ay»C SIDEWALK oz awm«4 Ln < E % g z \\ 0 ED � f 0 * §/j \ SS§\ E z z E E z u - > \ \ \ \ \ \ < 0 \ \ / LU LU LU \0 o <u << < _}� �§) \ §< LU Ln h3E / \\ j§jj 2z� 33 -ie <- i�u/ (0<LL �L{ u/o � \ /j < 0 jF--:5 \ LU U) *x2LUjjLU/x= >ez �Luuazu0 o 2-z2-ig0-{ L< /// §// j 2/ j§( LU e \ / \\§o/\, E _ . 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C O co C V m Q) -r o� Q) E O O x4-JCD-w c LZ O 0 ro a IZI- cn F-1 LJ 00 N O z C) U - Lu z 0 U) X Lu CL Lu z O R a LU J W a LU w O z -9 hi 00 O N a LU U) I C7 Z I � U) I O p 0 a -J ro O a -J m U) U J C: a) - z LU z Q o LU (n E r1 O X 4-, Q- W C a � U) NexGen Energy 8 Aries Court Rothesay NB E2E4X5 (506)849-3001 service@nexgen.today www.nexgen.today GST/HST Registration No.: 757877899rc0001 ADDRESS 40 Exmouth Street - Saint John c/o Saint John Community Loan Fund 133 Prince Edward Street Saint John New Brunswick E2L3S3 NEN All Things Energy Ventilation System Supply and installation of HRV (based on requirements of specification guidelines). All labour and material for supply and install of ventilation. 3,400.00 3,400.00 Labor 1 1,600.00 1,600.00 Installation of ventilation system. Electrical Service 200 amp electrical entrance with all existing circuits with hook - 12,400.00 12,400.00 up. Building wiring, plugs, switches and lights throughout property. Electrical Labor 1 2,600.00 2,600.00 Installation of all building wiring, plugs and lights throughout building. Acceptance of this quote requires a 50% deposit. Please contact our office for further information. Thank you for your business! Accepted By :1 PA, 6311 --mil" HST (NB) 2016 Qa 15% Accepted Date 20,000.00 3,000.00 SCHEDULE B BID PROPOSAL AND CONTRACT BREAKDOWN Contractor Acct No Date Homeowner Claims will only be accepted and paid for items 100% completed and approved by the inspector and homeowner Items Value Per Item 1. Insulation ,Vapour Barrier and Air Sealing 7 2. Wall and Ceiling Finishes f' 3. Subfloor and/or Underlay � � O 4. Floor covering 5. Interior Doors and Trim so3 ia. 6. Windows and Exterior Doors 15'1717, p S 7. Interior Paint . 173, q0 8. Kitchen Cabinets 9. Stairs and Handrails 10, Electrical Installation, Fire Alarms and Carbon Monoxide (CO) Detectors 11. Plumbing Installations 12. Heating, Chimney and Ventilation 13. Sills/Beams/Joists/Columns/Str-uctural Repairs 0o�� 14. Foundation Work 15. Raising House and Setting Back On Foundation 16. Basement Floor 17. Roofing 18. Siding, Fascia, Soffits and Exterior Trim 16 16 19. Landing and Steps g 60 20. Exterior Paint 21. Water and Sewage 22. Extension TOTAL CONTRACT VALUE ,Q Y f3'.;X !193 For: 40 Exmouth St. l0Mary's Place Saint John me s2mOA8 dmminiunp|umbing@uuduuk.umm xSr#:843658378 (506) 651-5658 uuntact@duminiunp|umbingandhsating.ua rauebuuk.uum/ouminiunp|umbingandxsating ouminiunp|umbingandxsating.ua Estimate No: 508 Date: 2018-08-27 Estimate tosupply all pipe and fittings and labour torough inand finish two bathrooms two kitchens two hot water tanks two floor drains This price does not include supplying any of the taps urfixtures urhot water tanks Subtotal HST 15% Total Withholding 0% 44 1/1 14 $600.00 $8,400.00 Parts Subtotal $8,400.00 $8,400.00 $1,260.00 $9,660.00 $0.00 E O V wr 7 Ln U Ln J N LU CO Z s O c N 0A � CL 3 c O 00 •> O E N O O � L Q N CO O W O L O r -I O O O M M O -i Ol Q0 l0 00 l0 �t O N r, 00 00 Ln �t O �t Ol O Ol Ol M Ln Ol 00 Q/ N O O -i O Q Ol M Ol O a, Z M V E O �•� N r•I //G��l�� @j C 'a C Lo 00 O s o Ln L M — N N N °1 Co +, Ln W C p 'i Ln W Ln 'a wr 7 Ln U Ln J N LU CO Z s O c N 0A � CL 3 c O 00 •> O E N O O � L Q N CO O W O L O r -I O O O M M O -i Ol Q0 l0 00 l0 �t O N r, 00 00 Ln �t O �t Ol O Ol Ol M Ln Ol 00 Q/ N II V Y � N N O 00 Ln W m CL U Z Z J N W Q p 00 O o Ln cN G Ol Ln Ol 00 O O N N r -I N M G Ln Ln N N E O Q C to E L Q L L u O E 2 ° u 3 m 0 L CO CO Ln O Y L 00 0 CO x Ln o -a L s — � o N N x E s O }r L Q0 � m U c-1 O O O 00 00 r -I r -I M N N M I, Ol Ol N O O r -I N N LL Z J Q U O OO �D O N mO � cMI H LO O O -i O l0 Ol M Ol M O O M �- rI N N N N N N N II V Y � N N O 00 Ln W m CL U Z Z J N W Q p 00 O o Ln cN G Ol Ln Ol 00 O O N N r -I N M G Ln Ln N N E O Q C to E L Q L L u O E 2 ° u 3 m 0 L CO CO Ln O Y L 00 0 CO x Ln o -a L s — � o N N x E s O }r L Q0 � m U c-1 O O O 00 00 r -I r -I M N N M I, Ol Ol N O O r -I N N LL Z J Q U O OO �D O N mO � cMI H LO lD O O O O O N N N Ol O O O N N O O N N Ol Ol Ol O O O O 4 j cl cl Cl Cl Cl I, O r, 00 00 N m Ol lD lD c -I Q/ M M r -I r -I Q/ M I, Ln M Q'I 3 O �t 00 M r -I r -I F- O 0 O Ln r -I O Ln O O N O O M r -I lfl O H -a O O x m M c -I 00 00 r -I 3 m L N N N N N 3 9 �t 00 M r -I r -I r -I O r -I r -I O N O Ol Ol I, r -I N r -I r -I I, = U M cn 00 N O 0Ln C7 N � r N d N 0) 00 Ln a 00 CO N O j O (DcI 9 i Hi s. .�.: .. »- ::::- •»:: -:µ = '" = `" ..... ............................................ ..........i::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::............::::::::::::::::::::::::......:::::::::::::::::::::: rr::��i ?:::::::::�Miss s Mss ::� i=� -„r ” ii" rrrrrrrrrrrrrrrId 1!Mst i' __ _...._._..._..._......................................................-._.._.-._..._.._................... i i .._.__. 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T.-.......L'6':....T.Y..:.r..��' 5.�.-.-STJ.'.�.'»:. 5�i::»...:.....................................................................................»..............:....:...:.............:....».»::.':»::»»»:»::.-........'»::»:»:»:. ...«..............«.......«.................................................«.................«...............«...............................«...............«..«.«.................«....................................................................................................................�.-�.........-..LY..Y........ ...SY....-. ... .5......, is .....«..«.«............. .«..« ......� ...":r'::Y'»«:. .... •µ6ii'L.:«...... yyy,.5.:r ',�.. �S'»:»»:»:5::::».�.'»::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::'I'-'.:::'I':»::»::»:::»-�.'»:.L':55:5.". '::5::::55::•• .;.::5:1'.::::::; L22�•yY.-«:1.': " •�i5:-„µ:��'.CLS::.S•�:.'Tw.�..Y..SSI•...5:::.::»:5..�:»:.................................................................................................................»........Y.t,"::::.Y.St......5:5::1dt:.Y.�x:S::::S::::», :-:555$4•....'-..:..........:.-..•....................-.-.............. :” _Hissil _11H CIVIC ADDRE55: 140 Exmouth Street PID#: 100012922 HERITAGE AREA: Y / N INTENSIFICATION AREA: Y / N FLOOD RISK AREA: Y / N APPROVED GRADING PLAN: Y / N APPLICATION #: DATE RE=CEIVED: _ F RECEIVED BY: APPLICANT EMAIL PHONE Justin Sweeney justin @ loanfund.ca 506.467.6759 MAIL[NG ADDRESS POSTAL CODE 139 Prince Edward St, - Suite 303 Saint John, NB E2L 3S3 G CONTRACTOR EMAIL PHONE Catapult Industry Inc. darrelI @outflowsj.com 506.435.0128 MAILING ADDRESS POSTAL CODE 162 Waterloo Street Saint John, NB E2L 3R1 OWNER EMAIL PHONE Saint John Community Loan Fund Inc justin @ loanfund.ca 506.467.6759 M MAILING ADDRESS POSTAL CODE 139 Prince Edward St. - Suite 303 Saint John, NB E2L 3S3 PRESENT USE: 2 Dwelling Unit PROPOSED USE: 2 Dwelling Unit -W �:��L��.�,��,r'n"'��..r,�.-��."...,a��r �,�,r '"„3 ,."'-' P�SV''J'��,,,;.W'i"'✓,s�...,�M„'n..,..,.ll'1�7'„�IS�TA.UfC��+)L.-.,-�',..,-x ...��'kr...:,?��t�47,„..' ., ...,--...,. ,.,>. f., dFVJ INTERIOR RENOVATION NEW CONSTRUCTION VARIANCE DSTREFTFXCAVATION HERITAGE DEVELOPMENT RENOVATION nACCLSSORY BLDGPLANNING LETTER �DRIVEWAYCULVLRT HERITAGE SIGN yEXTERIOR nADDITION POOL E]PACAPPLICATION DRAINAGE �HERITAGE INFILL in/ DEMOLITION 11COUNCILAPP El WATER & SEWERAGE El HERITAGE DEMO QCHANGEOFUSE FISIGN SUBDIVISION OTHER OTHER MINIMUM STANDARDS OTHER OTHER Controlled demolition; removal and replacement of all existing siding, flooring, wall coverings, µ- aload-bearing bathroom and rkitchen windows,interior and exterior doors and and facilitate new floor layout. All new electrical and plumbing from point of entry throughout building. Fv_1I consent to the City of Saint John sending to me commercial electronic messages, from time to time, regarding City initiatives and incentives. General Coflec 6? S(aterroear Tlris informs r eing collected in order for the City of Saint Johrr to deliver an existing program / the collection is lindred to that sWachr is necessat7 to deliver the progrmrr / servis w Urite s "required to do so try law, the City of Saint John will nor share y'onr personal "formaftot( >tth arty third party svilhout your express consent. Th'e lege! alt sirs far cnrfecling this information is to be foeuld in lite Municipalities Act and the Right to Ir fornullion and Protection of Privacy Act- For further information or questions regarding the collection of personal L(for'ntation, please contact the Access & Privacy Officer., City Hall Building 8ih Floor - 15 Marker Square Saint John, NB E2L IE8 cornnurn-le rk(,P.%gasojolt a. ca (506) 658-2862 I, the undersigned, hereby apply for the permft(s) or approval(s), indicated above for the work described on plans, submissions and forms herewith submitted. This application includes all relevant documentation necessary for the applied for permft(s) or approvai(s). 1 agree to comply with the plans, specifications and further agree to comply with off relevant City By-laws and conditions imposed. Justin Sweeney Applicant Name Apel Sr✓ Date Thefl:y dsaUw lehn 47 r 17, 2018 Mayor Darling and PO Box 1971 15 Market Square Saint John, N.B. E21- 41-1 Subject: Actuarial Valuation as at January 1, 2018 — The City of Saint John Shared Risk Pe-f'sioT'-PUz-'f'I Attached for the information of the members of Common Council is a copy of the Actuarial Valuation as at January 1, 2018 for the City of Saint John Shared Risk Pension Plan. Fred Slipp Chair, Board of ruses �,��,�'ll""I'll"ll""I'lI ........... .11�111111 ............... ............... ., Board of Trustees City of Saint John P.O. Box 1971, 15 Market Square Shared Risk Pension Plan Saint John, N.B. E21- 4LI 1 m FA911AUT�MVmv-1, n NB Superintendent of Pensions #0269209 Introduction................................................................................................................................................. Section1— Funding Policy Valuation .............................................................................................................. Section 2 — Risk Management Goals and Procedures..................................................................................... 13 Section3 — Hypothetical in Valuation .................................................................................................17 AppendixAssets .....................................................................................................................................2 AppendixB — Membership Data ...................................................................................................................2 Appendix C —Stochastic Projection Assumptions .......................................................................................... 30 Appendix— Summary of Plan Provisions....................................................................................................3 Appendix— Summary of Funding Policy......................................................................................................3 Appendix l i istr t Confirmation Certificate ............................................................................. 42 The City of Saint John Shared Risk Plan 6119] Introduction The City of Saint John Pension Plan ("Former CSJ Plan") was converted to the City of Saint John Shared Risk PI ("CSJ SRP Plan") effective January 1, 2013. 1 i nis rep*rT was prepdret ne USi Srx.717=07M. I Superintendent of Pensions ("Superintendent") for the following purposes: 'runSWICK i'et151UTI *VM!J1U5AC[ t FfF I ann=0 =3- "Ons 174"k-1 related actuarial opinion; iii pl pli!illiii 11!1111l1!!l1111lr�ll 1� ri W� y l The Board of Trustees is also seeking the approval of the Superintendent for the following items, as required under the PBA and Regulation: * approval oft e generational mortality table used in the funding policy valuation as required under sub- paragraph 14(7)(c)(H) of Regulation 2012-75; * approval eft a asset liability model used, as described in Section 2, including the stochastic projection assumptions found under Appendix C, as required under subsection 15(1) of Regulation 2012-75; and MMIM- WAIM, required under subsection 15(3) of Regulation 2012-75. The Trustees for the CSJ SRP Plan retained the services of Morneau Shepell Ltd ("Morneau Shepell") to prepare this report. MST MATUMIT g7rIcT T-UKK,T7TTTP'e7MMF31% ay -d t jan Ta F -Tr _L' Zf;jL /' I I a7corld rice IT Rn ine r7f, T Irel subsection 100.61(l) of the PBA. The next actuarial valuation report for the CSJ SRP Plan will be due no later than one year following the effective date of this report. We have updated the retirement assumption of the funding policy valuation to anticipate that members will be expected to retire earlier due toehanges in the unreduced early retirement rule for pensions accrued in 2014 and 2015. These changes are described in more detail in Section 1 of this report. The recommendations and opinions are given exclusively from a financial viewpoint. This valuation report does not constitute a legal opinion on the rights and duties oft e Trustees or the members of the plan over the pension fund. EMM 51 Actuarial valuation results are only estimates. Actuarial valuations are performed based on assumptions and methods that are in accordance with sound actuarial principles. Emerging experience differing from these risk management procedure results, which in turn will impact the types and timing of any actions to be taken by the Trustees in accordance with the Funding Policy. These gains and losses will be revealed in future actuarial valuations. Effective January 1, 2018, amendments to the PBA and Regulation 2012-75 (the shared risk plans regulation) came into effect. The changes that occurred as of January 1, 2018 did not materially affect the results of this valuation. We are not aware of any subsequent event, other than those identified in this report, which would have a material impact on the results of the valuation. The undersigned is available to provide supplementary information and explanation as appropriate, concerning this report. Respectfully submitted, Yveilourcle, FSA, FOIA 0 =I- The City of Saint John Shared Risk Plan 61% U-4v#T MMI Sectilion 1,, — Funding Policy Valuatiorl A funding policy valuation is required annually under subsection 100.61(l) of the PBA and subsections 14(5) to 14(7) of Regulation 2012-75. The results of the funding policy valuation of the CSJ SRP Plan as at January 1, 2018 are found below. The funding policy valuation results presented in this section are based on asset information found in Appendix A, membership data found in Appendix B, plan provisions summarized in Appendix D, and the Funding Policy summarized in Appendix E of the report. The methods and assumptions used in the funding policy valuation are i,escribed later in this section. L I MT=T7L,.nM71 of the assets to the funding policy actuarial liabilities. The funding policy actuarial liabilities are based on the benefits earned up to the valuation date assuming the CSJ SRP Plan continues indefinitely. 77, M previous valuation as at January 1, 2017, are found below: Note: A retroactive salary adjustment occurredfor Police and Fire members in 2018 to reflect higher negotiated retroactive salary rates. This retroactive salary adjustment will affect accrued pensions retroactively. However, we expect that the additional contributions received by the Plan on the retroactive salary adjustment will offset the increase in liability associated with the retroactive adjustment to accrued pensions. Therefore, no adjustments to the assets and liability were made at January 1, 2018for the retroactive adjustments. ,Z= 6V 9 in accordance with the terms of the CSJ SRP Plan and subsection 18(l) of Regulation 2012-75. it is calculated in accordance with paragraph 14(6)(e) of Regulation 2012-75. The table below provides the funding policy valuation normal cost, being the value of the pension benefits being earned in the twelve-month period after the valuation date. It compares the funding policy valuation normal cost to the level of member and employer contributions in order to determine the level of contributions being made to the CSJ SRP Plan in excess of the funding policy valuation normal cost. Results for the calendar year 2018 are presented below, along with the results for 2017 found in the previous valuation as at January 1, 2017. 1,11111 111 1 p! III 1111111m 1 11 IIIF111_1111 AMAIN I ci s I T, of paragraph 14(6)(f) of Regulation 2012-75. This ratio is used extensively in the Funding Policy to determine the actions to be undertaken by the Trustees underthe funding deficit recovery plan and the funding excess utilization plan. The 15 -year open group funded ratio is calculated as follows: Table 1.3 —15 -Year Open Group Funded Ratio Reconciliation of Funding Policy Valuation Funded Status with Previous Valuation January 1, 2017 and this funding policy valuation as at January 1, 2018: The City of Saint John Shared Risk Plan 61511 11 The references to Steps 1 and 4 in the above table are related to the corresponding steps found in the Funding Excess Utilization Plan under the Funding Policy for the Plan. Steps 2 and 3 did not provide additional benefits and therefore had no cost associated to them. 1, 2017 and this funding policy valuation as at January 1, 2018 are shown below: Table 1.5 — Reconciliation of Total Normal Cost Sensitivity Anaysis on the Funding PoAcy Basis The Standards of Practice of the Canadian Institute of Actuaries require valuation reports to disclose the sensitivity of the liabilities to changes in the discount rate assumption. The table below illustrates the effect of The City of Saint John Shared Risk Plan 10 1% decrease in the »°-u» «« on the funding policy actuarial liabilities. ©«<«.w «pionof the discou rate, all other assumptions and methods used forthis valuation ® maintained. i bilities on the Funding Policy Basis Sensitivity Analysis on the Funding Policy Total Normal Cost Table 1.7 — Sensitivity of Funding Policy Total Normal Cost The City of Saint John Shared Risk Plan M Asset Valtiiatiorii Method The assets used under the funding policy valuation are equal to the fair market value of the assets. This is a requirement of paragraph 14(6)(d) of Regulation 2012-75. AqAtuairial Cost MeChod credit) actuarial cost method in accordance with the requirement of paragraph 14(7)(a) of Regulation 2012-75. The funding policy valuation actuarial liabilities are equal to the actuarial present value of benefits earned by members for services prior to the valuation date, taking into account the actuarial assumptions as indicated hereafter. For greater certainty, it does not take into account the impact of any future salary increases, and the inripact*f an,; fytyrt increases in accryed, ,fensivns Ave t6 cast-efdieft, iijystmms -.s mly !t;e gr.-ntecl fr9m tim to time by the Trustees in accordance with the plan documents and the Funding Policy. estimated normal cost and estimated member and employer contributions for the year following the valuation J. contributions from them or from the City on their behalf. The ratio of the total normal cost to the covered payroll for the period will tend to stabilize over time if the demographic characteristics of the active and disabled members remain stable. All other things being equal, w increase in the average_ag For valuation purposes, to determine eligibility for benefits and for any other use, the age used is the age on the date of the nearest birthday. The City of Saint John Shared Risk Plan 61FA IN M., *1113*30M. MWIM MII��][V.Iuation Assumptions The City of Saint John Shared Risk Plan * or new member after conversion Note: For the retirement assumptions above, a member is expected to follow the retirement assumptions which are dependent on his or her age at the time of conversion. If a member is older than the earliest retirement age in our table at probabilities assignedfor that age and ages younger. All other probabilities at olderfuture ages remain the same. 0IFFE"T It Flows and Actuarial Liability 11MIX'SIM M 14 Rationale for Material Actuarial Assumptions ftiflation Given the historical increases in consumer prices in Canada, the rates expected by the market, the portfolio managers' expectation, the Bank of Canada policy and the long-term forecasts of the Conference Board of Canada, Morneau Shepell believes that the expected long-term rate of inflation should be between 1.85% and 235%. INISIlliff 1111 11 IF IM11 I Ill Discotan't Rate Diiave'ioj��iiiierft The elements considered in the development of the discount rate assumption for purposes of the funding policy valuation are summarized in the table below. INOINNUMN M-1 y Valuation Discount Rate I I Illp !I I I I Expenses IlPald Ful om the III und The allowance for investment and administrative expenses to be paid from the fund as built into the discount rate is 0.50% of assets on a long-term basis. Although the recent level of expenses were higher due to the plan conversion and various related implementation activities, it has now come down to about 0.50% of assets as those activities have ended and the asset base has increased. (tate of Saboy lincrilease We assumed general salary increases of 3.01 per year for the year following January 1, 2018, and on a long term basis. This rate is based on assumed inflation of 2.25% per year, and an additional 0.75% on account of productivity and general merit and promotion increases, considering current economic and financial market conditions. FN [011 molrtaHty In order to take into account the improvements in life expectancy recently substantiated by the Canadian Institute of Actuaries in its report on Canadian Pensioners Mortality (published on February 13, 2014), we used 70% of the CPM-2014Priv Mortality Table and 30% of the CPM-2014Pub1 Mortality Table, and the CPM -B Ini;cr*Yti-,ntnt15caIe, which Yariz&--�y gemizr,—age otnAinatii"n Pf the private and public tables above better reflect the nature of existing occupation types at the Employer compared to using solely the public sector table. Adjustment factors of 105% and 102% for males and females, respectively, were also applied to the mortality table to take into account the mortality experience in New Brunswick. This assumption remains unchanged from the previous valuation. M. 11MOSM =311 IM. Ml- I I' 31 We will continue to monitor this assumption for reasonableness. Terii"Mination We have used the same termination rates as used in the previous valuation. We will continue to monitor t assumption for reasonableness. I Al �Re'iliheiment . . . . . . . . . . . However, the Board of Trustees under Step 4 ot the Funding ExcesPi1tilization Plan has awarded un reduced early retirement at Rule of 85 on pensions accrued in 2013, 2014, and 2015. We believe that these awards will entice Members to retire earlier, and have therefore adopted a probability of retirement at "Rule of 88 to provide for this change in retirement pattern. Retirement at Rule of 88 was the retirement assumption used by the Former CSJ Plan when Rule of 85 was applicable to all service for all members. We believe this assumption is reasonable given the Board of Trustees awards under 5tep 4 of the Funding Excess Utilization Plan. Opinion on Funding Policy Valuation In my opinion, for the purposes of the funding policy valuation section of the report: • The membership data on which the valuation is based are sufficient and reliable for the purposes of the valuation. • The assumptions are appropriate for the purposes of the valuation. • The methods employed in the valuation are appropriate for the purposes of the valuation. This funding policy valuation report has been prepared, and my opinions given, in accordance with accepted actuarial practice in Canada. The assumptions used under the funding policy valuation of this report were reasonable and consistent with the objectives of the CSJ SRP Plan at the time this actuarial valuation report was prepared. Respectfully submitted, Yveolourde, FSA, FOIA Setae ber 27 2018 Date The City of Saint John Shared Risk Plan I'M IN Section 2, — R'isk Management Goals arid ProcedUres The CSJ SRP Plan was designed to achieve or exceed the risk management goals prescribed under the PBA and Regulation 2012-75. Certain procedures were developed to test whether these goals can be achieved given th contribution rules and benefits defined in the CSJ SRP Plan. These goals and procedures are described separatel below, along with the results of the stochastic analysis that are relevant under the PBA as at January 1, 2018. Risk Illi anageim&n't Goalls The primary risk management goal is to achieve a 97.5 probability that base benefits will not be reduced over the 20 years following the valuation. The goal is measured by taking into account the following funding management plans: 1. the funding deficit recovery plan except for reduction in pastor future base benefits, and 2, the funding excess utilization plan excluding permanent benefit changes. The funding deficit recovery plan and the funding excess utilization plan are described in Sections V and V1 of the Funding Policy, respectively. There are two secondary risk management goals under the PBA. These are: On average provide contingent indexing on base benefits of active members that are in excess of 75% of the Consumer Price Index (CPI) over the next 20 years, and provide contingent indexing on base benefits of retirees and deferred vested terminated members that are in excess of 75% of the average Pre -Conversion A�MIMMMA; Aw"'AT90 - Mmum"Mmmu; W -'M documents at conversion over the next 20 years. I if as a result, through the testing process, a scenario allows for indexing in a given future year, then this Vu s« 4LA"%Lj#)T# AUkti- benefit is dynamically adjusted based on the stochastic results for each economic scenario tested. The City of Saint John Shared Risk Plan M W ffisll IIMainagernent Prcocedtires The risk management goals are measured using an asset liability model with future economic scenarios developed using a stochastic process. The model was run with 2,000 alternative economic scenarios over 20 years. This exceeds the minimum requirements under the PBA of 1,000 economic scenarios, For each of these scenarios and for each year, the financial position of the CSJ SRP Plan is measured. For each of plan, as applicable, is modeled with the exceptions noted under the goals above. When modeling the funding deficit recovery plan actions over the 20 -year period of each of the 2,000 economic scenarios, each of the four steps identified in the funding deficit recovery plan under Section V of the Funding Policy is implemented in sequence until such time as the open group funded ratio of the plan reaches 100% or higher. A "past benefit reduction trial" is recorded (for purposes of the primary risk management goal calculation) when step 4 of the funding deficit recovery plan found in Section V of the Funding Policy is triggered (i.e. a reduction in past base benefits) at any of in the 20 -year period of an economic scenario. The primary risk management measure is therefore the proportion of those 2,000 scenarios that do not lead to a "past benefit reduction trial" over a 20- yearperiod. In order to pass the primary risk management goal, at least 1,950 of those 2,000 scenarios must not trigger a "past benefit reduction trial" as described above at any point over the 20 -year period. made. The main assumptions are described below: 1741TTMUP6-0�wil7p""�Mif-dSYEL - - ", . I I "I'll", !!!!!!! ! I 1 ►711117 parati-IFY21's oaset 771 a combination of past experience, current economic environment and a reasonable range of future *,xpectations. These assumptions are reviewed annually and updated as required. They are also subject to— ,?pproval by the Superintendent under paragraph 15(3) of Regulation 2012-75. These assumptions are found in Appendix C. The CSJ SRP Plan's contributing member population is assumed to be stable in each year of the projection period. As such, each departure from the CSJ SRP Plan, for any reason, is assumed to be replaced by a new entrant. The new entrant population reflects the profile of new plan members expected in the future based on plan experience. The profile of new entrants used for this analysis is found under Table 1.9 in Section I of this report. The risk management goals were tested as at January 1, 2018. The results of these tests combined with the V The City of Saint John Shared Risk Plan M1 The primary risk management goal must be achieved or exceeded: • At January 1, 2013 (i.e. the Conversion Date); • At the date a permanent benefit change as defined in the Regulations is made; • At the date a benefit improvement as defined in the Regulations is made; or • At the date contribution adjustments that exceed those provided under Section IV of the Funding Policy are At the date temporary contributions are reduced before March 31, 2028 under the conditions provided for under Section IV of the Funding Policy. The secondary risk management goals must be achieved or exceeded: • At January 1, 2013 (i.e. the Conversion Date); or • At the date a permanent benefit change as defined in the Regulations is made. The definitions of "permanent benefit change" and "benefit improvement" are as follows: VA11 911,1111 "OP -1 10 41"Im, *as" *C1rh-11TftY-,#7F-aT1U W,1 Me L11d116e,-M accordance with the funding excess utilization plan. "benefit improvement" means an escalated adjustment for past periods or an increase in other ancillary benefits allowed under the Funding Policy. ReWlt!115� of Stc16�iiiasfic AnWysls as IlPaiiiiii �miry 1 01,8 The stochastic analysis undertaken as at January 1, 2018, took into account the main following items: • Membership Data as at January 1, 2018 summarized in Appendix B; • Economic and demographic assumptions as at January 1, 2018 for the funding policy valuation summarized in Section 1; • Pension fund long-term target asset mix as summarized in Table A. of Appendix A; • Stochastic projection assumptions as summarized in Appendix C; • Risk management procedures described above; • CSJ SRP Plan provisions summarized in Appendix D; • Funding deficit recovery plan found under Section V of the Funding Policy (except for reduction in past or future base benefits); • Funding excess utilization plan found under Section VI of the Funding Policy (excluding permanent benefit changes). The City of Saint John Shared Risk Plan AW 09 U1#7= WYM-ifi rdT 7TIMIT-TIV Mana6ertle t guais as a 2011, 1 Note: The Funding Policy only provides for the reduction of one type of ancillary benefit under the funding deficit recovery planatstep2. This is the replacement of early retirement reductionsfor post conversion service byfull actuarial reductions for members not yet eligible to retire. We expect this ancillary benefit would be reduced in about 2. 1% of our 2,000 20 -yr scenarios. If this is the only ancillary benefit reduced, and it was eliminated completely, then we can expect that 97.9% of the value of ancillary benefits will be provided over the 20 -year period. 11��Mwmwvmw F.M 919 /hb/L\[ w9thw M&C No. 2018-288 Report Date October 16, 2018 Meeting Date October 22, 2018 Service Area Corporate Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: ABC Written Reports September 2018 OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Richard Evans Jonathan Taylor Neil Jacobsen RECOMMENDATION That Common Council receive for information the September 2018 ABC written reports. PREVIOUS RESOLUTION ŷĻ ŅƚƌƌƚǞźƓŭ ƩĻƭƚƌǒƷźƚƓ Ǟğƭ ğķƚƦƷĻķ ĬǤ /ƚƒƒƚƓ /ƚǒƓĭźƌ źƓ CĻĬƩǒğƩǤ ЋЉЊЏʹ RESOLVED that as recommended by the City Manager in the submitted report entitled, M&C 2016-025: 2016 Reporting Program for ABCs, Common Council direct the Common Clerk to schedule and implement the 2016 ABC reporting program. EXECUTIVE SUMMARY In February 2016, the ABC reporting framework to Common Council was approved. Within this framework was the provision for the ABCs listed below to submit two written reports annually (May and September): Discover Saint John Develop SJ Enterprise Saint John Harbour Station Saint John Aquatic Centre Commission Saint John Arts Centre Saint John Board of Police Commissioners Saint John Energy Saint John Parking Commission/Transit Commission Saint John Trade and Convention Centre ATTACHMENTS ABC Written Reports September 2018 Develop Saint John Mandateƚ ŭƩƚǞ {ğźƓƷ WƚŷƓ͸ƭ Ʒğǣ ĬğƭĻ͵ Primary Functions We relentlessly grow the Saint John tax base by providing services, expertise and network connections to get deals done. Through our efforts we: 1.LƓĭƩĻğƭĻ ğ ƦƩƚƆĻĭƷ͸ƭ probability of success; 2.Expedite project development timelines; and, 3.Proactively seek out new development opportunities with current clients, prospects and other community stakeholders. Name of Board 1.Francis Power, Chair Αappointed by City of Saint John Members 2.Leslie Magee, Vice-chair Α appointed by City of Saint John 3.John Logan, Secretary-Treasurer Α appointed by City of Saint John 4.Mayor Don Darling Α Ex-officio 5.City Manager Jeff Trail Α Ex-Officio 6.Peter Allaby, Director Α appointed by the Province of New Brunswick 7.John Higgins, Director Α nominated by the Government of Canada 8.Gerry Lowe, Director and Ward 3 City Counsellor Α appointed by City of Saint John # of Staff 5 (1 seconded to City of Saint John) 2018CoSJ Subsidy $821,002 Projected 2018 Revenues revenue streams Operating Grant - City of Saint John 821,002 Government of Canada 214,910 Province of NB 85,964 SJ Industrial Parks 225,000 Other Revenue 79,000 1,425,876 2018continuous Functions, roles and responsibilities are being mapped out for Develop Saint John, the One improvement Stop Development Shop and the Real Estate Department to identify gaps, minimize overlap and maximize overall efficiency for staff and developers alike. Annual Budget Expenses Wages & Benefits 556,500 Strategic Projects 155,500 Business Development 125,000 Office, Admin and IT 77,376 Professional Development 6,000 Marketing 120,000 Saint John Industrial Park 75,000 Depreciation 310,500 1,425,876 Develop Saint John Α September 18, 2018 1 Response to YTD Statement of Operations and Accumulated Surplus Actuals For the period ended July 31, 2018 PROJECTED 2018 YEAR END FINANCIAL POSITION 2018 2018 2018 Annual Budget July 31 YTD Projected Y/E $ $ $ Revenues Operating Grant - City of Saint John 821,002 478,912 821,002 Government of Canada 214,910 - - Province of NB 85,964 75,570 75,570 SJ Industrial Parks 225,000 131,243 225,000 Other Revenue 79,000 83,086 90,000 1,425,876 768,811 1,211,572 Expenses Wages & Benefits 556,500 312,654 548,500 Strategic Projects 155,500 7,116 125,000 Business Development 125,000 10,457 75,000 Office, Admin and IT 77,376 43,382 80,000 Professional Development 6,000 395 2,000 Marketing 120,000 19,574 100,000 Saint John Industrial Park 175,000 26,360 175,000 1,215,376 419,938 1,105,500 Surplus 210,500 348,873 106,072 High-Level 20182018 Corporate Goals: The project we champion will ultimately lead to: Performance/Service 1.$75 million tax base increase Objectives 2.The City of Saint John will achieve a 2 to 1 Return on Investment (ROI) YTD Performance/ N/A Service Targets Recent Develop Saint John was active in the following projects: accomplishments Continuing to lead negotiations with Provincial and Federal partners to ensure the proposed New Brunswick Museum project advances; facilitating the sale of the former Coast Guard site including coordinating site preparation including demolition of existing structures. Leading the Southern Peninsula school project, as requested by the District Education /ƚǒƓĭźƌ ğƓķ ƷŷĻ tƩĻƒźĻƩ͸ƭ hŅŅźĭĻ. Spearheading the business case for the Province to build a new Highway 1 Interchange and having provincial funding secured in 2019/2020 budget. Develop Saint John Α September 18, 2018 2 Proceeding with an International Market Sounding initiative for the Lorneville Industrial Site. Emerging Issues We are an active proponent and supporter of developing and implementing an integrated community marketing and communications initiative. Summary of primary Develop Saint John: take-aways for Established a governance structure and policies as well as developed a strategic plan and Common Council YtL͸ƭ ƭźƓĭĻ ĭƚƒƒĻƓĭźƓŭ ƚƦĻƩğƷźƚƓƭ ƚƓ WğƓǒğƩǤ ЊͲ ЋЉЊБ. An active project portfolio of 44 projects with a total cumulative potential tax base impact of $377 million over 10 years. Since launching on January 1, we have hit the ground running in getting deals done! Weekly Driving Development meetings have improved communications and problem- solving with Growth and Community Development. Moving forward, the focus will be on transitioning from being reactive to proactive. Attachments None Develop Saint John Α September 18, 2018 3 5źƭĭƚǝĻƩ {ğźƓƷ WƚŷƓ To increase tourism revenues in Saint John by marketing our unique and competitive Mandate tourism experiences to high-potential markets. Destination marketing, Visitor information and Experience, Meeting and Convention Sales, Primary Functions Sports Tourism attraction, Festival and Events support and attraction, member services, Travel Trade Glenda MacLean, Hilton Saint John, representing the Saint John Hotel Association Name of Board Sue Palmer, Chateau Saint John, representing the Saint John Hotel Association Members Kjeld- Mizpah Conyers- Steede, UNBSJ, representing the City of Saint John Stephany Publicover, Irving Oil, representing the City of Saint John David Drinnan, Nocturne, representing the City of Saint John Ray Gracewood, Organigram, representing the City of Saint John Greg Norton, City Councillor, representing the City of Saint John Elizabeth Rowe, Urban Deli, representing Industry Gillian Nadeau, Uncorked Wine Tours, representing Industry Kurt Peacock, Parks Canada, representing industry 8 Full-time (and seasonally 15 additional VIC staff) # of Staff $991,020 2018 CoSJ Subsidy Saint John Hotel Association - $691,620 Projected 2018 Other revenue (advertising and membership fees) - $121,000 revenue streams Our organization uses national and provincial benchmarking to evaluate and redirect our 2018 continuous efforts annually. Our organization has hired four university SEED funded students (14 improvement weeks) and one federally funded student (8 weeks) for our 2018 VIC staff. υЊͲБЉЌͲЏЍЉ Annual Budget 5{W ŷğƭ ŷźƷ ğƓ ğƌƌΏƷźƒĻ ğķǝĻƩƷźƭźƓŭ ƩĻǝĻƓǒĻ ŷźŭŷ Response to YTD Actuals 5{W ŷğƭ ŷźƷ ğƓ ğƌƌΏƷźƒĻ ƒĻƒĬĻƩƭŷźƦ ŷźŭŷ Membership Goals High-Level 2018 Performance/Service # of New Contacts Generated Objectives # of FAM/Site Visit Participants # of Leads Generated # of Bids Submitted # of Successful Bids See attached YTD Performance/ Service Targets Recent accomplishments award for 2018 Discover Saint John has been shortlisted for a Canadian Tourism Award City of Saint John and Saint John Hotel Association contracts valid to December 31, Emerging Issues 2019 need to begin renewal process. Partnerships between Discover Saint John and its municipal counterparts are Summary of primary take-aways for strong and healthy Common Council Tourism is big business with millions of dollars of Economic Impact from Conventions, Sporting events and Festivals (like the ECMAs) Attachments Discover Saint John Report to Common Council City of Saint John Q3 Statistics Sept 2018 MEETINGS & CONVENTIONS Measurement Q3 2018 YTD Target # of New Contacts Generated 272 200 # of FAM/Site Visit Participants 24 30 \[Ļğķƭ # of Leads Generated 35 35 9068 12,543 $5,794,193 .źķƭ # of Bids Submitted 29 20 7723 m Nights 10,792 $5,167,282 źƓƭ # of Successful Bids 12 2340 3352 $1,749,571 \[ƚƭƷΉ/ğƓĭĻƌƌĻķ 9ǝĻƓƷƭ # of Lost or Cancelled Events 18 6170 9867 $4,162,210 Leads in Lead Status: 10 Leads in Bid (Development) Status: 7 MAJOR EVENTS Measurement Q3 2018 YTD Target # of New Contacts Generated 9 100 \[Ļğķƭ # of Leads Generated 3 15 tors 7138 400 $11,196,500 .źķƭ # of Events in Development 2 5 tors 1150 3900 imated Economic Impact $1,831,500 Wins # of Successful Bids 5 15,720 .# of Bid Room Nights 3724 mated Economic Impact $4,717,300 Discover Saint John Report to Common Council City of Saint John Q3 Statistics Sept 2018 Leads in Lead Status : 3 Leads in Bid (Development) Status : 2 SPORT EVENTS Measurement Q3 2018 YTD Target # of New Contacts Generated 37 50 # of FAM/Site Visit Participants 0 6 \[Ļğķƭ # of Leads Generated 5 20 f Participants & Spectators 1278 1910 $1,082,200 .źķƭ # of Bids Submitted (with Champions) 0 8 Participants & Spectators 0 0 $0 źƓƭ # of Successful Bids (with Champions) 2 4 $1,521,000 \[ƚƭƷΉ/ğƓĭĻƌƌĻķ 9ǝĻƓƷƭ # of Lost or Cancelled Events 0 Leads in Lead Status: 5 Leads in Bid (Development) Status: 0 TRAVEL TRADE Measurement 2018 YTD Target # of Marketplace Appointments 97 80 # of New Tour Operator Contacts 287 15 # of FAM Tour/Site Visit Participants 61 13 9ƓƷĻƩƦƩźƭĻ {ğźƓƷ WƚŷƓ {ĻƦƷĻƒĬĻƩ ЋЉЊБ Job Growth Mandate Regional Economic Development Agency for Grand Bay-Westfield, Quispamsis, Rothesay, Primary Functions Saint John, St. Martins Andrew Oland - Moosehead Breweries Ltd. - Chair Name of Board Martin Chiasson - Loosen Up Consulting Past Chair Members Eric Poirier - Bell Aliant Andy MacPherson Paulette Hicks - Delta Saint John Gary Lawson - Lawson Creamer David Irving - J.D. Irving, Limited Louis Labelle - Irving Oil Susan Harley Cathy Simpson Tech Impact Jennifer Arsenault Origins Daycare 11 # of Staff $500,000 2018 CoSJ Subsidy 5 municipalities $669,000-$700,000 Projected 2018 Strategic Partners (private sector) $175,500 revenue streams Miscellaneous Fees/Sponsorship $25,000 Project Funding $1,500,000 ĻŅŅƚƩƷ Ʒƚ źķĻƓƷźŅǤ ĻŅŅźĭźĻƓĭźĻƭ źƓ ǤƚǒƩ 2018 continuous ƚƦĻƩğƷźƚƓƭ ğƓķ ĭƚƭƷΏƭğǝźƓŭƭ improvement tƩƚǝźķĻ ƷƚƷğƌ ğƓƓǒğƌ ƚƦĻƩğƷźƓŭ ĬǒķŭĻƷ źƓĭƚƩƦƚƩğƷźƓŭ ğƌƌ ŅǒƓķźƓŭ ğƓķ ƩĻǝĻƓǒĻ͵ Annual Budget tƩƚǝźķĻ ŅĻĻķĬğĭƉ ƚƓ 5 ĬǒķŭĻƷ ğĭƷǒğƌƭͲ ğƓķ ğƓǤ ƓƚƷĻǞƚƩƷŷǤ źƭƭǒĻƭ ƷŷğƷ ƭŷƚǒƌķ ĬĻ ĬƩƚǒŭŷƷ Response to YTD Ʒƚ ƷŷĻ ğƷƷĻƓƷźƚƓ ƚŅ ƷŷĻ /źƷǤ ƚŅ {ğźƓƷ WƚŷƓ Actuals Our Connected Community strategy will leverage our technology, our people and our High-Level 2018 strategic location to turn ideas and investments into growth for the region. Performance/Service Objectives 1.Renewing Economic Development Strategy and Marketing Strategy 2.Build on our strategic location/multi-modal connections to global markets 3.Develop entrepreneurs 4.Develop problem solvers and innovators and connect them to companies to solve corporate challenges, increase competitiveness and encourage innovation 5.Ensure companies have access to a pool of skilled technical talent YTD Performance/ Service Targets The board and staff have been working on a 3 year economic development plan for the Recent region. Have attended various job fairs to recruit workers to the region. accomplishments Emerging Entrepreneurs: 14 high school students begin High School Entrepreneurship Accelerator Program at Connexion Works Entrepreneurs: Working with several industries within the Region on their growth plans. )¬¯ ¢³ ,® 6 loans were approved in August, which combine for 17.5 budgeted future jobs. th 3 Loan applications will be reviewed September 26. Two expansion loans for previous Impact Loan clients, as well as a start up company from Spring 2018 VVP. 6¤³´±¤ 6 «¨£ ³¨® 0±®¦± ¬ Fall 2018 VVP cohort receive 30+ applications th 13 Participants began VVP September 12: Cohort includes 5 participants from Quispamsis and 1 from Grand Bay. Prototyping a pilot project for corporate innovation with Propel ICT that Lean Stack methodology. 3¬ «« "´²¨¤²² £ %³±¤¯±¤¤´± 3´¯¯®±³Ȁ Ȩ- ±ªȩ Ran a successful Simplexity Certification and following up with attendees to launch projects within their businesses Working with Propel ICT to explore Corporate Innovation programming Workforce Attraction and Retention: (Julia) Preparing for the ¥®´± hiring fairs: Oct 11-12 Montreal | ESJ and ARCf/Sandrine Selway will represent Greater Saint John. Oct 18-19 virtual international job fair for participants who hold PR - Planned outreach according to previous years: around 7,000 participants. Oct 20 Toronto | ESJ and ONB to represent Greater Saint John. Nov 7 Saint John Newcomers & International Student job fair in Marco Polo Terminal. Working on the talent database to be accessible by ESJ staff. A new e- mail address talent@enterprisesj.com is in operation to accept resumes from anyone interested to find a job here. Exploratory visits hosted to date: 55 people. members as of September. Workforce strategy is ready to be incorporated into the ESJ Economic Development Plan upon final approval. Investment Attraction: (Ian) Met with 4 new companies. Three are going to be here but only 5-10 employees each. Workforce is their biggest concern: Centric Digital Rt Comm BICOM Systems John Swann company Edac conference and seminar Planning for recruitment mission Planning for FTZ seminar for local companies Marketing and Communications: (Eleanor) TJ column about Family Plus & using data analytics to reduce no-August 21, 2018 TJ column on VVP/simplexity programs on September 7, 2018 TJ column on Smart & Connected Data Project, Innovation Challenge Winners, September 20, 2018 Web/Press Release on Innovation Challenge Winners-picked up by CHSJ & CBC Info Radio Preparation of collaterals for upcoming recruitment missions to Toronto & Montreal continues Preparation of collaterals for comms/marketing for International Student & Newcomers Job Fair in SJ continues sidewalks. Weather permitting, decals and stories will be placed and promoted next week into first week of October. Projects and Community Initiatives: (Janet) Five winners of the Smart and Connected Innovation Challenge were announced on September 14th. Smart Food Security, The City of Saint John, Saint John Energy, Sensory Friendly Solutions, and Botrow Technologies will each receive a contribution of $25,000 to help solve a business or community problem using data and connected technology. The proposed innovations include: 1.Platform to better support Food Banks and their clients 2.Cash-free payment and data tracking system for Transit 3.Predicting Solar Energy performance for strategic applications 4.Online platform to help people with sensory-sensitivities engage more comfortably with a host of activities and events. 5.Increased efficiencies in Municipal Fleet Management All Innovation Challenge winners will develop and implement proof-of-concept projects over the next 12 months to demonstrate the value of their innovation. Following the first phase of development, companies and organizations will continue to build their products and services with the intention of commercializing and selling them in other markets. Funding for this initiative is provided by ACOA. 2018 KPIs Updates from January 2018 June 2018 2018 Strategic Targets 2018 1st Quarter Results Focus Potential 800 1,525 Entrepreneurs 10 Start Ups Start-Ups 25 Start-Ups Existing 12 Jobs 45 jobs Entrepreneurs Announced 717 - TBA Existing Business 550 jobs Announced - - 250 External Investors 250 jobs Emerging Issues Refreshed Economic Development Plan Summary of primary take-aways for Renewed Focus, New Leadership at the Board and Staff levels Common Council Focused on Workforce Development, Business Investment & Innovation, Entrepreneur Development, and Marketing the Greater Saint John Story Attachments *Objective is to have each written submission no longer than three (3) pages in length. Building Steady, Long-Term Economic Growth 2017 ANNUAL REPORT ENTERPRISE SAINT JOHN Grand Bay-Westfield enterprisesj.com Quispamsis info@enterprisesj.com Rothesay St. Martins Saint John 1 2017 Annual Report 2 ......Letter from the Interim-Chair Contents 3 .......About Enterprise Saint John 4 ......Strategic Partners 4 .......Strategic Partner Investors 5 .......Building on Connections 6 .......2017: Fourth Industrial Revolution, Innovation & Growth 7 .......Energy Sector-Whats Next? 8 .......Internal Growth: Potential Entrepreneurs 9 ......Internal Growth: Start-ups and Existing Entrepreneurs 9 .......ESJ Navigator 9 .......Venture Validation Program 9 .......IMPACT Loan Program 10 .....Incubator 11......Internal Growth: Innovating with Regional Businesses 12 .....External Growth: Investors 12 .....Investment Attraction 12 .....Invest Canada-Community Initiatives (ICCI) 13 .....Communications 13 .....Looking to the Future: A Longer Runway for Economic Development 14 .....Who We Are 14 .....Enterprise Saint John Board 14 .....E 16 .....Financial Statements 2 Enterprise Saint John Letter from the Interim Chair 2017 has been a year of substantial change at An extensive search began for our new CEO and a Enterprise Saint John. It was my pleasure to accept Board Chair. By fall, we had welcomed a few new the position of Interim Chair of the Board on April 5th, faces to the board including Susan Harley, Louis 2017. I took over from Larry Hachey who had served Labelle, Cathy Simpson and Andy McPherson. as Board Chair since January 2015. During his time, We were also happy to announce Ron Gaudet as he proved time and time again that he was dedicated CEO. As a former New Brunswicker with extensive experience in economic development in our connected community that could leverage those province and in Ontario, he agreed to return home connections to grow the entire region. to help energize the growth of Greater Saint John. member and valued community and business leader, Andrew Oland, would accept the position closely with our stakeholders and Regional of Board Chair. Immediately, a vision started to take Oversight Committee (ROC) to make sure our shape to create a 3-year Economic Development visions were better aligned. The ROC is made up of plan and conversations began with stakeholders and strategic partners that will continue in 2018. Saint John, St. Martins, Quispamsis, Rothesay and two representatives of the private sector partners who invest in ESJ. It appoints the 11-member We remain focused on working with all of our volunteer board and works with the board to partners, including Opportunities New Brunswick develop annual key performance indicators. All (ONB). Our priorities are to keep building a culture of entrepreneurship through our programming, more collaboration, better communications and help existing companies grow through workforce a strategic plan that was focused on a long-term expansion and innovation while encouraging vision of growth for the region.businesses to locate here because of the many in this report, we are very proud that in many By summer, our CEO Steve Carson, who had cases we didnt just meet, we exceeded our key led this organization since its inception in 1998, performance indicators as agreed upon by ROC. had moved on to a new challenge working with the City of Saint Johns new strategic real estate development arm. We are extremely I would like to say, Merci beaucoup to our grateful for the valuable advice, connections and vision Steve brought to this position. We volunteers, and community for giving me an wish him continued success, but also know our opportunity to contribute to moving this great collaboration will continue to work well together region forward. on projects in the future. Kind Regards, Martin Chiasson enterprisesj.com 3 2017 Annual Report About Enterprise Saint John Enterprise Saint John (ESJ) is the communitys and drive prosperity. Everything we do is regional economic development agency meant to foster a culture of entrepreneurship, support job growth, workforce expansion, or strengthen the advantages of our region to St. Martins and Saint John. The ESJ board attract external investment. We work closely with our key partner, Opportunities New Oversight Committee (ROC), made up of the Brunswick, to make sure we are avoiding representatives, to come up with the annual key performance indicators. At the same time, we continue to play a role in connecting companies and major industrial Our focus is on steady, long-term economic players, with investment, talent, and ideas growth for our region by creating the kind they need to solve critical business challenges of opportunities that improve quality of life and remain competitive. 4 Enterprise Saint John Strategic Partners Our work at Enterprise Saint John would not Tier 2: $10,000-$15,000 Innovatia Inc. from our strategic partners. Our funding Emera well as our strategic partners. Through these core funding commitments, we are able to Tier 3: $1,000-$5,000 leverage an additional $1.2 million in project Cox & Palmer East Point Inc. Scotiabank Municipalities: Moosehead Breweries Ltd. City of Saint John: $475,000 Downey Automotive Group Town of Quispamsis: $112,000 Aluma Systems Town of Rothesay: $86,500 Brunswick Square LP Village of St. Martins: $1,500 Strategic Partner Investors: Tier 1: $20,000-$25,000 Bell Aliant Irving Oil Limited J.D. Irving, Limited Saint John Energy Revolution Strategy enterprisesj.com 5 2017 Annual Report Building on Connections We know connections and collaboration Living SJ are key components to driving growth and New Brunswick Community College prosperity in our region. New Brunswick Business Council New Brunswick Jobs Board Our Workplan Partners are: Opportunities New Brunswick Pond-Deshpande Centre Anglophone South School District Post-Secondary Education, Training & Labour Association Régionale de la Communauté Port Saint John Francophone de Saint-Jean Inc. Propel ICT Atlantic Canada Opportunities Agency Regional Development Corporation Atlantica Centre for Energy Revolution Strategy Atlantic Coastal Action Program Saint John Airport Basadur Applied Creativity Saint John Community Loan Fund Bell Aliant Saint John Development Corporation BioNB Saint John Energy Canadian Manufacturers & Exporters Saint John Hotel Association Canaport LNG Saint John Industrial Parks Ltd. Cisco Saint John Region Chamber of Commerce City of Saint John Shad Valley Collège Communautaire du Nouveau Brunswick Start-Up Weekend ConnexionWorks 3+ Corporation Cox & Palmer T4G Discover Saint John Tech Impact Donna Mazerolle & Associates Telegraph Journal EY Saint John Town of Rothesay Grant Thornton Town of Quispamsis Ignite Fredericton University of New Brunswick Invest Canada Communities Initiatives Uptown Saint John Innovatia Inc. Village of St. Martins 6 Enterprise Saint John 2017: FOURTH INDUSTRIAL REVOLUTION, INNOVATION & GROWTH In 2017, we continued our focus on helping bring together public and private sector data regional businesses innovate, grow and to solve problems and drive innovation. This to look ahead to the Fourth Industrial public asset will increase access to data, Revolution. The World Economic Forum enhance decision-making and accelerate the development and commercialization of data-driven solutions for Saint Johns public, The First Industrial Revolution used water will share anonymized and aggregated and steam power to mechanize production. datasets through the data repository, which The Second used electric power to create will make the data available for other projects mass production. The Third used electronics to drive new insights. The project provides and information technology to automate stakeholders with four key supports: production. Now a Fourth Industrial Revolution is building on the Third, the digital Access to a big data platform to analyze revolution that has been occurring since the and store data. middle of the last century. It is characterized by a fusion of technologies that is blurring Access to a variety of data sets to be used the lines between the physical, digital, and alone or integrated with own-sourced biological spheres. -Klaus Schwab, Founder data to develop solutions to industry and & Executive Chairman, World Economic community problems. Forum Geneva, January 14, 2016 Access to data scientists and data Industry will be the leading adopters of analytics tools to analyze data and the Internet of Things (IoT) as they look to produce new insights to increase revenue lower operating costs, increase productivity, expand to new markets or develop new products. There are tremendous Ability to launch proof-of-concept opportunities we can capitalize upon in projects to solve problems that lead to the Saint John region because of our innovative, exportable solutions. world-class industrial players, as well as the advanced Information, Communications In addition, the Smart and Connected Data & Technology (ICT) infrastructure and our Project will expand the public wireless innovative tech companies. network and install sensors in the Citys urban core to enhance use of digital Greater Saint John is poised to be a national technologies and deepen understanding of leader in data analytics with the Smart & community mobility patterns. Connected Data Project, which was rolled out in May 2017. Work began on building a cloud-based community data analytics enterprisesj.com 7 2017 Annual Report ENERGY SECTOR: WHATS NEXT? With the cancellation of plans to develop Our Metrics the Energy East Pipeline in October 2017, Research tells us 80% of our economic could explore the opportunities that exist growth comes from within, while the 20% in the Energy sector with a particular focus comes from external businesses locating on renewable green energy projects. We or expanding in the region. Many of were approved for funding in 2017 through ESJs programs and projects are geared Invest Canada Community Initiatives Funding to developing potential entrepreneurs, Program (ICCI) to complete a project to startups and existing entrepreneurs, help understand local capabilities, gaps and innovating with existing businesses to competitive advantages in the energy sector. help them grow and encouraging external businesses to expand or grow here. Enterprise Saint John began work on developing new partnerships and evolving the partnerships developed through the Energy East Partners Forum, and the Natural Gas Working Group. We want to continue to align regional activities with the province and industry to leverage federal funding for future projects in this area. KPIs and Outcomes 2017 TARGETSACTUAL Potential Entrepreneurs 800 1,631 Start-Ups and Existing 25 start-ups 26 start-ups Entrepreneurs 40 jobs 55 jobs Existing Business 500 jobs 568 new and retained jobs External Investors 250 jobs 199 new jobs 8 Enterprise Saint John INTERNAL GROWTH: POTENTIAL ENTREPRENEURS Enterprise Saint Johns Emerging 2017 Results: Entrepreneurs Program has been supporting 1,631 young people participated in aspects and inspiring young entrepreneurs for 15 of the Emerging Entrepreneurs Program, years. In 2017, the number of students including Run Your Business for a Day, participating in the program doubled. The PitchFests, and Youth PreLoaded program focuses on teaching problem- solving, innovation and entrepreneurial 408 students from 5 high schools sold skills to students by getting them to come their products and services at campus up with a business concept. One aspect of markets the program includes creating a business and marketing plan to go along with their 145 high school students learned coding business concept and then try to sell that and entrepreneurial skills through the product or service to their peers at high Youth PreLoaded program. school markets around the region. ESJ also helps students learn coding and other ICT skills with clubs and initiatives. enterprisesj.com 9 2017 Annual Report INTERNAL GROWTH: Enterprise Saint John works to support Venture Validation Program entrepreneurs and potential startups through a variety of programs that target The Venture Validation Program (VVP) was introduced in April 2017 to better support These programs are designed to help people entrepreneurship at its earliest stages. The turn ideas into solid business plans, and to 13-week applied learning program helps leverage funding and gain acceptance to potential entrepreneurs test the viability of accelerators to grow their business. their business idea. They learn to identify a problem, create a value proposition, pitch themselves competitively, determine the ESJ Navigator size of their market, and build business and support it gives entrepreneurs in the Saint 35 individuals participated in the course John region. The Navigator has four (4) distinct programs: Venture Validation Program 22 completed the course successfully (VVP), KickStart Your Business, IMPACT loan and Incubator. The VVP is a strategic 9 participants went on to launch business course to help validate business businesses small businesses, Kickstart Your Business 8 companies are attempting to lends support and guidance to entrepreneurs commercialize their products/services in business for one year or less, while the Incubator helps technology start-ups seeking to develop and commercialize technology. These programs are critical to supporting a IMPACT Loan Program culture of entrepreneurship and job growth in our region. The IMPACT Loan developed by Atlantic Canada Opportunities Agency and formerly 2017 Results known SEED Loan program is managed by ESJ. In 2017, It helped entrepreneurs access 26 new start-ups a loan of up to $20,000 at the interest rate Full-time equivalent jobs (FTEs) development of a new business. Often, created: 55 IMPACT Loan recipients go on to leverage other funding as a result of this initial loan. 2017 Results 23 loans were distributed Value of Loans: $412,500 Leveraged Funds: $543,270 10 Enterprise Saint John Incubator early-stage technology start-ups. Companies that are developing and commercializing projects are ideal candidates. Participants are supported by an Entrepreneur-in-Residence to help them achieve their goals. The Incubator strives to provide the ideal environment for starting a technology company. 5 companies in residence $330,000 in investment $530,000 in R&D funding enterprisesj.com 11 2017 Annual Report INTERNAL GROWTH: INNOVATING WITH REGIONAL BUSINESSES The Catalyst Innovation Program, was Enterprise Saint John led participants launched as a pilot project in 2015 in an through creative problem-solving workshops based on the renowned Basadur Simplexity creative and innovative ways. Its the only methodology. programming of its kind in the province. The problem-solving process has been picked up 2017 Results: by companies and organizations of all sizes 24 companies participated in innovation across New Brunswick including J.D.Irving, training Limited, Moosehead Breweries Limited, Dalhousie Medicine New Brunswick, and 12 innovation projects were undertaken Intelisys. The Catalyst Innovation Program is based on the knowledge that creativity can be 7 pe taught, and that innovation can be a practical process that drives tangible business results. 576 people trained in Innovation Skills 12 Enterprise Saint John EXTERNAL GROWTH: INVESTORS Smart & Connected Data Project Investment Attraction Funding to produce marketing collaterals In 2017, we continued to work with one of our for the community data project. key partners, Opportunities New Brunswick, to draw more investment into Greater Saint Other Projects for outside companies, answering requests for Modular Fabrication Project information, and following up on leads. This project was supported by RDC, ONB, ACOA and private partners, meant to highlight 2017 Results: the modular fabrication and project capacity 199 full-time jobs were added to the $278,000. community as a direct result of our Phase 1 of this project involved the completion of market research to understand the regions capabilities and $32.9 million in annual payroll was added capacity and to evaluate the competitive advantage of this industry in Saint John. The average wage of these new jobs was $43,000 Ph projects and the creation of marketing Hosted 8 site visits and promotional collateral to promote the industry in New Brunswick Invest Canada-Community Phase 3 was designed to visit several Initiatives (ICCI) conferences to network with industry players and decision makers. Every year, the federal government allows communities to apply for funding for investment attraction projects and it will cover Following the completion of phase 3 the or match 50% of project funding. In 2017, project has now been put on hold while we we undertook the following ICCI-funded reconnect with the industry stakeholders to initiatives totaling $120,000.evaluate progress and determine a productive path forward. Foreign Trade Zone Point Saint John Energy In July 2017, ESJ applied to be recognized Funding to complete a wind survey to as one of Canadas Foreign Trade Zone support the development of a windfarm in (FTZ) Point. This designation provides easier West Saint John access to tax and duty relief programs for importers and exporters. While fundamentally a Funding to develop a peak load energy marketing program, it will substantially increase prediction model to support the utilities the regions visibility as a strategic location for international trade in Canada. The approval of this program will be received in early 2018. enterprisesj.com 13 2017 Annual Report COMMUNICATIONS Enterprise Saint Johns Communications Social media audience grew by 15% over approach was all about developing a better previous year, engagement increased by 6% relationship between all our varied audiences over previous year to clearly communicate how regional economic development adds value to all Connect with us via: of our communities. In 2017, we continued enterprisesaintjohn to highlight to the public and stakeholders enterprisesj the important connections we make for our enterprisesj clients and partners through our programming enterprise saint john and projects. We used a variety of channels including traditional media, social media & our extensive network of partners to share positive Looking to the Future: A Longer results in programs and projects. Runway for Economic Development We know we want to achieve consistent, 2017 Results: long-term economic growth for our region January-March, ESJ worked to improve by creating opportunities that improve communications with ROC members and quality of life and drive prosperity. We want to do this by supporting a culture of and funding for the rest of 2017 entrepreneurship, business retention and growth, investment attraction, workforce Vennture Garage is rebranded as ESJ expansion, and strengthening and marketing the advantages of our region. We are creating & training for entrepreneurs, SEED loan is a 3-year Economic Development Plan to drive rebranded to IMPACT loan regional growth, create more awareness of the advantages of Greater Saint John and In June, Toronto Star featured Saint Johns, the opportunities for investment. We will Brick Park as an ICT hot spot work with Industry and all three levels of government to market Greater Saint John In October, ESJ worked with Women in across Canada & abroad. Tech World to create, promote & execute a Community Conversation on engaging more women in tech industry & STEM Key priorities for 2018-2019: (Science, Technology, Engineering & Math) Supporting Startups In November, ESJ & its partners helped Supporting Existing Businesses International Students & Newcomers: Workforce Development Videos were created to highlight Supporting New Investments programming, projects, and clients of ESJ Marketing the Region Bi-weekly column for Telegraph Journal that highlighted clients, projects, programming Catalyst for Growth or collaboration with partners 14 Enterprise Saint John WHO WE ARE Enterprise Saint John Board: Martin ChiassonPaulette Hicks Andrew OlandTerri Riedle Eric Poirier Gary Lawson Loosen Up Delta Saint John Moosehead Revolution StrategyBell Aliant Lawson-Creamer Consulting ExecutiveBreweries LimitedExecutiveExecutiveExecutive Chair (Interim)Executive Mary KeithSusan Harley Louis LabelleAndy McPhersonCathy Simpson J.D. Irving, LimitedBusiness Marketing Irving OilStrategic Planning & T4G Operational Management Steve CarsonRon GaudetJanet ScottSue CrozierEleanor MacLean CEOCEO Director of Business Senior Administrative Communications (As of Nov. 2017)& Community Assistant Development Mark BreenDakota Lutes Michele LodgeJanice Pearson Ian McCoy Senior Economic Entrepreneur Project Coordinator, Director of Director, Investment Emerging EntrepreneurAdministration & FinanceAttraction (As of Oct. 2017) enterprisesj.com Saint John Aquatic Center Commission Mandate Primary Functions Name of Board Members # of Staff 2018 CoSJ Subsidy Projected 2018 revenue streams 2018 continuous improvement Annual Budget Response to YTD Actuals High-Level 2018 Performance/Service Objectives YTD Performance/ Service Targets Recent accomplishments Emerging Issues Summary of primary take-aways for Common Council Attachments - Saint John Arts Centre - Mandate The Saint John Arts Centre advances the culture and economy of Greater Saint John, by providing critical infrastructure for the growth and development of the arts. By incubating and developing talent, the Arts Centre strengthens our community by fostering connections and collaboration, locally and beyond. Primary Functions 1. Art Gallery. The Arts Centre provides five exhibition galleries. There are six exhibition sessions per year each lasting seven weeks long. 2. Workshops: We provide art related workshops to people of all ages. 3. Rentals: For weddings, concerts or private functions. Printmaking and ceramic studio rentals. 4. Performing Arts: Symphony NB, Early Music Festival, SJ String Quartet hold their concerts in our main gallery on a regular basis. Name of Board Chair Christine Gilliland, Vice Chair - ǝğĭğƓƷ, Treasurer Pat Joas, Secretary Members Emily Saab, Cathy Fynn-Director, Gary A Davis-Director, Leslie Oland-Director, Lisa- Ann Scichilone-Director, and David Emerson-Director. # of Staff Four full time, one part time: Andrew Kierstead-Executive Director, Kelly Cunningham-Promotions and Events Coordinator, Maggie Higgins-Education and Outreach Coordinator, Larry Morin-Building Maintenance, Nora Bowes-Business Administrator (part time) 2018 CoSJ Subsidy Regional Facilities Commission Operational Grant of $125,000 Projected 2018 Workshops, facility rentals, project grants, sponsorships, donations, memberships revenue streams and our annual fundraiser. tƩƚǝźķĻ ŅĻĻķĬğĭƉ ƚƓ ǤƚǒƩ 2018 continuous ƚƦĻƩğƷźƚƓƭ ğƓķ ĭƚƭƷΏƭğǝźƓŭƭ improvement Over the last six years, steps have been taken to improve the efficiencies on how the Arts Centre operates, provides services to the public and presents budgetary reports to the Regional Facilities Commission. Where possible, the Arts Centre and not the City, has paid for such improvements such as exterior signage for the building and an updated WiFi system within the building. tƩƚǝźķĻ ƷƚƷğƌ ğƓƓǒğƌ ƚƦĻƩğƷźƓŭ ĬǒķŭĻƷ źƓĭƚƩƦƚƩğƷźƓŭ ğƌƌ ŅǒƓķźƓŭ ğƓķ ƩĻǝĻƓǒĻ͵ Annual Budget SJAC budget for 2018 was approved for $232,840 tƩƚǝźķĻ ŅĻĻķĬğĭƉ ƚƓ 5 ĬǒķŭĻƷ ğĭƷǒğƌƭͲ ğƓķ ğƓǤ ƓƚƷĻǞƚƩƷŷǤ źƭƭǒĻƭ ƷŷğƷ ƭŷƚǒƌķ ĬĻ ĬƩƚǒŭŷƷ Response to YTD Ʒƚ ƷŷĻ ğƷƷĻƓƷźƚƓ ƚŅ ƷŷĻ /źƷǤ ƚŅ {ğźƓƷ WƚŷƓ Actuals The Saint John Arts Centre provides a year-to-date report to the Regional Facilities Commission in May/June, and again in September when we also present our new budget. The budget for 2018 and the operational grant have been approved. High-Level 2018 The Arts Centre is committed to providing quality exhibitions by both professional Performance/Service and emerging artists. We are pleased to be continuing our very popular Summer Objectives Classics Series, which is a noon-time Classical music concert series over the summer. This is expanding to a once a month music and education series called Fredericton, which is made up of all provincial Community Arts Centres. The purpose of this conference is to discuss common issues, share ideas, and exhibitions. As a Regional Facility, we provide a high standard of services to the communities we serve. YTD Performance/ The SJAC is poised to meet or exceed our expected targets in all our service areas. Service Targets This is due to the hard work of the staff and volunteer board members, as well as the positive reputation we have developed with the public. Recent Installation of new exterior signage as part of an overall new accomplishments marketing/visibility strategy. Developing a sponsorship strategy through artsVest, that will allow us to develop a new revenue stream and create closer relationships with the business community. Creating an Education and Outreach position. We have hired a full-time person to coordinate our workshops and to expand our outreach programs. Emerging Issues The Carnegie Building was constructed in 1904 and after over 100 years, the sandstone is starting to deteriorate. This may become a safety issue for those in Peel Plaza who are walking close to the exterior of the building. I have consulted with local architect, Bob Boyce who estimates that repairs will need to take place within five years to stabilize the sandstone facing before it is too late. I realize that the funding for the repairs will need to come from the three levels of government and not just from the City. I have met with members from the Facility Management Dept to review the 20-year capital budget for the building and they are aware of these issues. Summary of primary The Saint John Arts Centre is a vibrant part of the arts community and arts take-aways for ecosystem in southern New Brunswick. Common Council As arts infrastructure, the Saint John Arts Centre is good value for the community in Greater Saint John and we look forward to the continued support as a Regional Facility. Attachments *Objective is to have each written submission no longer than three (3) pages in length. The Saint John Board of Police Commissioners is the governance authority for the Saint John Police Force. The role of the Board is to establish a vision and actionable objectives for the Mandate community, to provide oversight, and to ensure accountability in the application of Police resources to accomplish the objectives. The Saint John Board of Police Commissioners has a responsibility under the Police Act to so the municipality can budget the necessary money. In determining what constitutes an Primary Functions adequate police force, the Board (in consultation with the Chief of Police) has established priorities and objectives. The Saint John Board of Police Commissioners comprises eight members. Seven members are appointed by Common Council. Two of these may also be members of Common Council. The eighth member is appointed by the Minister of Public Safety. Appointments Saint John Board of Police Commissioners Mayor Don Darling Appointed by Common Council on July 30, 2018 to the end of his term in May 2020. Councillor Gary Sullivan Appointed by Common Council on July 30, 2018 to the end of his term in May 2020. Michael Costello Appointed by Common Council on July 30, 2018 for a three year term - July 30, 2018 to July 29, 2021. Name of Board Brian Boudreau (Vice-Chair) Appointed by Common Council on June 12, 2017 for a Members three year term - August 19, 2017 - August 19, 2020. Mike Haycox (Secretary) Appointed by Common Council on January 11, 2016 for a three year term January 12, 2016 January 11, 2019. Jeff McAloon Appointed by Common Council on December 11, 2017 for a three year term - December 11, 2017 to December 11, 2020. Maike White (Provincial Appointed by the Minister of the Department of Justice Representative) and Public Safety on November 10, 2017 for a three year term - November 10, 2017 to November 10, 2020. th (8 member) to be appointed by Council 143 police / 23 civilians (Reduction of five since May 15,2018 Report) # of Staff $25,689,293 2018 CoSJ Subsidy Projected 2018 $480,775 Revenue Streams Automation and integration of SJPF records, data and digital evidence reporting. Automation and integration of Case Management process. Evaluating Core and Non-Core services Value to stakeholders; value for money. Key Performance Indicators Sworn and Civilian resources Best-fit analysis. 2018 Continuous On- Line Police Reporting (Community members) Improvement Loss prevention On-Line Reporting (Commercial) NBTMR Encrypted Police/Fire Radio implementation. Police Cloud (secure/cost effective data storage). Voice-to-Text data entry (efficiencies and accuracy). 2018 Budgeted Net $25,208,518 Operating Costs Response to YTD The Saint John Police Force is expected to be on Budget for 2018. Actuals Crime Reduction High-Level 2018 Emergency Response Performance/Service Law Enforcement Objectives Victim Services (Core Businesses) Public Order Crime Reduction YTD Performance/ Public Satisfaction Service Targets Effectiveness / Efficiency / Economy process metrics Uniform Beat Patrol Uptown Recent/Concurrent New Firearms transition training Accomplishments Full integration between Live Scan (the RCMP-managed national fingerprints and imaging and record check system, and the SJPF Record Management System. Cannabis legislation and enforcement. Collaboration between Police Services. Downloading of service response social services responsibilities (e.g.; mental health) Emerging Issues Cyber-Crime. Update Strategic Plan. The Saint John Board of Police Commissioners is focused on providing excellent service to our citizens in order to ensure they are safe and feel safe, which will also provide the right Summary of Primary environment to drive economic growth in our city. The Board will begin a search process Take-Always for Common Council significant experience with the force to lead the force during this period of transition. 1 1 1 1 1 32 2 COSTELLOMcALOON?? BOUDREAUHAYCOXWHITE DARLINGSULLIVAN Current term July 29, Dec. 11, August 19, January Nov. 10, May May expiry date 2021 2020 2020 11, 2019 2020 2020 2020 Legal X Financial X X X X X X X Understanding X X X X X X X of Governance Communications X X X X X X Saint John Organizational X X X X X X X Board of Police Effectiveness Commissioners Knowledge of X policing Leadership X X X X X X Skills Matrix September, Technology X X X X 2018 Business X X X X X X Efficiencies Mental Health X X X Knowledge Composition of the Board (8 members) 1.Seven Members appointed by Saint John Common Council; 2.Two of these may be members of Council; 3.Appointed by the Minister of Department of Justice and Public Safety. {ğźƓƷ WƚŷƓ 9ƓĻƩŭǤ ΛŷĻ tƚǞĻƩ /ƚƒƒźƭƭźƚƓ ƚŅ ƷŷĻ /źƷǤ ƚŅ {ğźƓƷ WƚŷƓΜ Saint John Energy provides innovative customer-centred energy and utility solutions. Mandate Saint John Energy is the principal supplier of electrical energy to the Residential, General Primary Functions Service and Industrial sectors in the City of Saint John, as well as, a provider of Street and Area lighting rentals and various consumer products and services. Bill Edwards (Chairperson), Stephen MacMackin, (Vice Chairperson), Commissioners - Ross Name of Board Galbraith, Shelley Courser, James Shaw, John Mackenzie, Derek Pannell. Board Secretary - Members Jonathan Taylor. President and CEO Ray Robinson 97 fulltime Staff # of Staff Saint John Energy is a self-funding Commission requiring no subsidy from the City of Saint 2018 CoSJ Subsidy John. Saint John Energy provides a net benefit to the City of Saint John totaling an estimated $2.18M (2018) and provides additional rate payer and community support benefits to the public equalling $8.3M per year. Projected 2018 revenue streams 2018 continuous improvement Annual Budget Response to YTD See attached 2018; Business Plan Documentation Actuals High-Level 2018 Performance/Service Objectives YTD Performance/ Service Targets Heat pump rental program 2,857 units were installed at the end of 2017 and expect to Recent have an additional 1,200 units installed by the end of 2018 a significant revenue accomplishments enhancing success. Unlocking the Value of SJE In light of the financial challenges facing the City of Saint John and the sustainability concerns with the traditional business model of the electric distribution utility a cross functional team continue to work to position Saint John Energy for growth by exploring new business opportunities and determine how the benefits from that growth with be shared with the City and the customers of Saint John Energy. Loss of traditional sources of revenues, unlocking the value of Saint John Energy Emerging Issues N/A Summary of primary take-aways for Common Council Updated skills matrix was provided to nominating committee Attachments SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN BUDGET2018 Capital, Operating and Cash Budgets Ten Year Financial Forecast 0 ¦¤ΐ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN SaintJohnEnergy TableofContents BUDGET 2018 ...................................................................................................... 1 INTRODUCTION .................................................................................................. 3 Strategic Focus and Financial Plan ............................................................................................. 4 2018 Capital Expenditures Budget ............................................................................................ 12 Ten Year Financial Forecast ....................................................................................................... 14 Consolidated Budgeted Statement of Earnings 2017 – 2027 ............................................................... 15 Segmented Budgeted Statement of Earnings 2017 – 2027 - Core Utility ........................................... 16 Segmented Budgeted Statement of Earnings 2017 – 2027 – Consumer Products ............................. 17 Significant Assumptions Impacting the Budgeted Statement of Earnings ........................................ 18 Budgeted Statement of Cash Flow ........................................................................................................ 19 Capital Expenditures Budget by Year and Class 2019-2027 .............................................................. 20 Graphical Representation of Earnings and Capital Investments 2018 – 2027 .................................. 21 0 ¦¤Α SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN Introduction TheManagementofSaintJohnEnergypresentstheCapital,OperatingandCashBudgetsforthe fiscalyear2018.SaintJohnEnergyistheprincipalsupplierofelectricalenergytotheresidential, generalservice,smallindustrialandmunicipalsectorsoftheCityofSaintJohnofferingrates thatareamongthelowestinourregion.Onaverage,residentialratesare10%lowerand commercialratesare3%lowerthanelsewhereintheprovince.SaintJohnEnergyprovides savingstotheCityofSaintJohnofapproximately$2millionperyearandourcustomersmore than$7millionperyearbenefitingSaintJohnandourprovinceasawhole. Theprojectionscontainedwithinreflecttheknown,presentfinancialpositionofSaintJohn EnergyatthedateofpreparationofthisdocumentandincorporatesCapital,Revenueand ExpenseandCashFlowprojectionsforthecomingtenyearsbasedontheplansand requirementssetforthbytheManagementoftheCompanythroughthebudgetandstrategic planningandreviewprocess. Incertaininstances,comparativenumbersaregivenfortheyear2017thatincludea combinationofactual ΛƉƓƚǞƓğƷƷŷĻķğƷĻƚŅƷŷźƭķƚĭǒƒĻƓƷΜ andprojectedfigures.Yearend auditedfinancialstatementsfortheyear2017willvaryfromthosedepictedreflectingtheactual circumstancesresultingfromthecompleteoperationsfor2017. 0 ¦¤Β SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN StrategicFocusandFinancialPlan ThelongtermfinancialstabilityandsustainabilityoftheCompanyconstitutesoneofthefour strategicthemesforSaintJohnEnergy.TheabilityoftheCompanytomaintaincompetitiverates whileprovidingindustryleadingserviceisdependentonachievingandmaintainingan appropriatefinancialstructure. StrategicFocus Thefollowingfactorshaveguidedmanagementintheplansandprioritiesdiscussedorlistedin thefollowingpagesandarereflectedinthefinancialforecastsshownforthe2018Budget,as wellasthegreater10yearbusinessplan. MissionStatement: ͻĻƦƩƚǝźķĻLƓƓƚǝğƷźǝĻ/ǒƭƷƚƒĻƩĭĻƓƷĻƩĻķ9ƓĻƩŭǤğƓķƷźƌźƷǤ{ƚƌǒƷźƚƓƭͼ VisionStatement: ͻƚĬĻƩĻĭƚŭƓźǩĻķğƭğƓĻǝƚƌǝźƓŭ9ƓĻƩŭǤğƓķƷźƌźƷǤƌĻğķĻƩͼ Motto: ͻ9ǣĭĻƌƌĻƓĭĻźƓ9ƓĻƩŭǤ{ƚƌǒƷźƚƓƭͼ GuidingPrinciplesΑValues: Safety Inthefieldorinouroffice,theSafetyofouremployeesandourcommunityismore importantthananybusinessinterestandisournumberonepriority. ResultsDriven Wecarryoutourmissionwithrelentlessdriveandtenacityandaclearfocusonresults. Wecareabouthowweachievetheseresults.Webelieveincontinuouslyimproving whatwedoandhowwedoit.Wechallengeconventionalthinkingandencourage curiosity,creativityandongoinglearning.Wealwaysstriveforwinwinsolutions.We embracechangefortheopportunitiesitoffers. Accountability Weacceptpersonalresponsibilitytoefficientlyusecompanyresources,improveour effectiveness,anddelivervaluetoourcustomersandstakeholders.Wetakeownership andpersonalresponsibilityforourdecisions,commitmentsandactions. 0 ¦¤Γ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN Honesty,IntegrityandRespect Wemaintainourcredibilitybyalwaysmakingsureouractionsmatchourwords.Honest relationshipsandtrustareessentialforlongtermbusinesssuccess.Wedealfairlyinall ofourbusinessrelations.Wereportallfinancial,regulatoryandbusinessresults accuratelyandcompletely.Werespectindividuals,andbelievethatthosewhoare treatedwithrespectandaregivenresponsibilityrespondbygivingtheirbest.Westrive tobefair,compassionateandconsistent.Wecommunicateeffectivelyandshare information. CustomerFocused Ourcustomersareourreasonforbeing.Wetreatourcustomersfairly,withrespectand empathy.Wewillsetandmeetindustryleadingservicestandards. Teamwork WerespecteachźƓķźǝźķǒğƌ͸ƭuniquetalents,expertiseandperspectives.Byleveraging thesecollectivestrengthsthroughteamworkwewilldefineandimplementsolutions moreeffectivelythanwecanindividually.Ourdegreeofsuccesswillmirrorourabilityto worktogetherasateam. TheOperatingandCapitalBudgetsareresourcedtoachieveourVisionandwillfocusonour4 overarchingstrategicpriorities: 1.FinancialStabilityandSustainability 2.CustomerFocus 3.Innovation 4.EmployeeWellbeing Theresultsofthistenyearforecastreflectrecapitalizationchallengesstemmingfromthe implementationoftheLongTermIntegratedSystemCapitalPlan,thegrowthofnewlinesof business,newinitiativesandtheresourcestomeetthenormaloperations,maintenanceand administrativerequirementsoftheutility. 0 ¦¤Δ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN PlanFinancialOutlook ThefollowingBudgetedStatementofEarningsandBudgetedStatementofCashFlows(see pages15&19)depicttheprojectedfinancialsituationofSaintJohnEnergythroughouttheten yearplan.ThesestatementsreflecttheplansandprioritiesaspresentedbyManagementand includeallowancesforfutureplanswherespecificsarenotcurrentlyknown.Forpresentation purposes,SegmentedBudgetedStatementofEarningsarealsoshownforeachthecoreutility andconsumerproductssegments. GrossMarginElectricalOperations Salesandpurchasesofelectricityareforecasted GrossMarginElectricalOperations($000's) basedonactualvolumeinformationfromthemost $22,000 recent12monthperiodandefficiencyexperience $21,000 fromthemostrecent2yearperiodavailableatthe $20,000 timetheplanwasprepared.The2018Budgetis $19,000 expectedtoseeanincreaseinElectricalOperations $18,000 GrossMarginof$141,000.IncreasingtheGross $17,000 Marginarethe1.77%averagerateincrease 20172018201920202021202220232024202520262027 implementedonApril1,2017,andananticipated 2%averageincreaseonApril1,2018.Additionalrateincreasesof2%havebeenbudgetedin eachyearoftheplan.Actualchangestorevenuesandpurchaserateswilldependonwholesale powerpurchasecostsandthespecificsustainabilityneedsoftheCompanyinfutureyears. Anticipatedreductionsinelectricalsalesvolumeduringyearstwothroughtenoftheplanarea provisionfortheestimatedimpactofnewtechnologies,demographicchangesandenergy efficiencyinitiativesthatmayhaveaninfluenceonsalesandrelatedenergypurchases. OtherIncome OtherIncome($000's) OtherIncomeiscomprisedmainlyofrevenuederived $14,000 fromwaterheaterrentals,minisplitheatpump $12,000 rentals,streetandrentallightrentals,facilities $10,000 rentals,customerconnectionandothercollection $8,000 charges,poleattachmentfeesandthirdpartywork $6,000 performed.Othernonelectricalincomesare $4,000 $2,000 budgetedtoincreaseby$426,000in2018.Themajor factorsforthisincreasearetheanticipatedgrowthof 20172018201920202021202220232024202520262027 0 ¦¤Ε SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN theminisplitheatpumprentalprogramandtheprojectedApril01,20182%rateincreaseson bothwaterheaterandlightingrentalrevenues,partiallyoffsetbyananticipatedreductionof thirdpartybillablestormassistanceactivity.Projectedinthe10yearplaniscontinuedgrowth fortheminisplitheatpumprentalprogramandfuturerateincreasesof2%annuallyonother rentalcharges. Operations,MaintenanceandAdministrativeExpenses(OM&A) OM&Aincludeslabour,equipment,materials, OM&AExpenses($000's) contractedservices,depreciation,insurance,taxes $35,000 andothercostsrelatedtooperating,managingand $30,000 maintainingtheutilityanddistributionsystem. $25,000 Theseexpensesareforecastedtoincreaseby$1.8 $20,000 millionover2017projectedresultsin2018.This $15,000 changeisprimarilydrivenbyincreasedequipment $10,000 amortizationrelatedtoinvestmentinassets, 20172018201920202021202220232024202520262027 increasedcostofbothshortandlongtermemployee benefitplans,increasestobasecompensationfor employees,andtheadditionoftwostaffpositionsinsupportmanagementinitiativesand successionplanning.Resultsbeyond2018areinfluencedbyinflationaryprovisionsforwages, benefitsandotherexpensesestimatedtoaffectcostsintheyears2019through2027(see assumptionstablepage18). NetCashEarnings NetCashEarnings($000's) Netcashearningsareameasureofthe/ƚƒƦğƓǤ͸ƭ $12,000 earningsadjustedfornoncashitemsincluding $10,000 amortizationandnoncashfutureemployeebenefit $8,000 actuarialchargesforpensionandotherpost $6,000 retirementbenefits.Netcashearningsfor2018are $4,000 budgetedat$7.1million,adecreaseof$374,000 $2,000 fromtheprojected2017resultduetothecash 20172018201920202021202220232024202520262027 impactsrevenueandexpensevariancesnoted above.Earningprojectionsforfutureyearsare significantlyimpactedbytheforecastedgrowthoftheminisplitheatpumprentalprogram whileincludingtheprovisionforreducedelectricalsalesvolumesmentionedabove. 0 ¦¤Ζ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN Cash&DebtPosition TheBudgetedStatementofCashFlowsthatprojects EndingCashBalance($000's) thecashpositionoftheCompanyattheendofeach $0 yearshowsaprojecteddeficitendingcashbalancein $2,000 2017of$0.1million.SaintJohnEnergyisforecasting $4,000 torelyonitscurrent$10millionoperatinglineof $6,000 credittofinancethecontinuedgrowthofthemini $8,000 splitheatpumpprogram.Atotalof$15.7millionof $10,000 borrowingfromcoreutilityoperationshasbeen 20172018201920202021202220232024202520262027 projectedintheyears2016to2022bytheconsumer productsdivision,atwhichpointtheminisplit programbecomesselffunded.Debtservicingcostsonthenetcashused/generatedbythemini splitrentalprogramarechargedinternallytotheconsumerproductsdivisionandcreditedback tocoreutilityoperations. ThetenyearplanincludesinvestmentsinPropertyPlantandEquipmentof$96.2million($11.6 millionfor2018)whichincludes$25.8millioninminisplitheatpumpsystems($4.3millionfor 2018). SensitivityAnalysis Aswithanybudgetingprocess,thereareestimatesusedthatarebasedordependonhistorical trendingandtimesensitiveinformation.Actualresultsmaybedifferentoraffectedby unforeseeablecircumstances.Thefollowingisananalysisofseveralofthelargestitemsthat couldaffecttheactualoutcomesforthe2018financialyearwiththeirimpactontheBudgeted StatementofEarnings: GrossMargin 1%variationstosalesvolumechangegrossmarginbyapproximately$183,000 RevenueAccrualisassumedtohaveazeroeffect(variance+/$84,000tenyearavg.) Otherchangesinweatherpatternsareassumedtobenominal,varianceswouldhavea similaraffecttothesalesvolumesensitivityabove 0 ¦¤Η SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN OperationsandMaintenanceExpense(includingotherrevenuesandexpenses) Managementhasidentifiedknownorspecificcostchangesandhasincludedassumptionsfor inflationaryeffectsovertheperiodoftheplanforbothCapitalandExpenserelatedcostsas follows: Plannedinstallationsofnewminisplitheatpumprentalunitsof1,200in2018and6,900 unitsoverthetenyearplan.A+/10%varianceinactualvolumeswouldhaveaneffect onnetcashearningsof$32kin2018and$2.2Mforthetotalofthe10yearplan. Inflationonapplicableexpensesassumedat1%peryear.A+/1%variancewouldhave an$80,000effectonearningsinthesecondyearoftheplan. EmployeeRemuneration(dependentonactualcomplement).Basecompensation increasesareassumedtobe2%in2018forstaffemployeesand2.5%forunionized employeesasperthecollectivebargainingagreement.Futureyearsoftheplaninclude anannual2%basecompensationincreaseforallemployees.A+/1%changeforall ĻƒƦƌƚǤĻĻƭ͸resultsinanincreaseinexpenseof$84,000inthefirstyearoftheplan. OtherPostRetirementBenefitsExpense(OPEB)&NoncashPensionExpense Otherpostretirementbenefitcostsareanticipatedtoincreaseby5%annuallyintheyears 20192027.A0.5%reductioninthediscountrateusedintheactuarialvaluationoftheliability wouldincreasethenoncashexpenseinthefirstyearoftheplanintheamountof$592,000.A 1%varianceintheforecastedcashbenefitpaymentsinthefirstyearoftheplanwouldresultin anincrementalcashoutlayofapproximately$7,300. FinancingCosts InterestcostsonSaintJohn9ƓĻƩŭǤ͸ƭoperatinglineofcreditutilizedtofundthegrowthofthe minisplitheatpumprentalprogramhasbeenestimatedtocarryaninterestrateof3.25%in 2018andrisinggraduallyto4.00%overthe10yearplan.A+/1%variancetotheinterestrate assumptionwouldhavea$2,500effectonearningsinthefirstyearoftheplan. Becauseactualexperiencewillbedifferentthantheforecast,SaintJohnEnĻƩŭǤ͸soperational plansneedtobeflexibleanddynamicenoughtomakeadjustmentsthroughouttheyearin ordertoachieveourcommitmenttomeetorexceedthebudgetedresults.Managementwill undertaketomakeadjustmentstothisplanasnecessarytoachievethestrategicandfinancial 0 ¦¤Θ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN goalsasoutlined.Managementwillinformand/orseekBoardapprovalwhereamaterial variancefromthisplannecessitates. MaterialRisksandUncertainties Inthenormalcourseofoperations,SaintJohn9ƓĻƩŭǤ͸ƭearningsandcapitalinvestmentsplans canvaryduetochangesinseveralfactors.Informationonsomeofthekeyfactorsthatcould potentiallyimpactactualresultsfromtheforecastpresentedinthe10yearplanisprovided below. EnergyConservation&TechnologicalAdvancements WhileSaintJohnEnergyisactively seekingnewprogramsandservicestoencourageitscustomerstoreducedemandandenergy consumption,themarket,demographicsortechnologyadvancementscoulddrivecustomersto reduceconsumptionfasterthantheutilitycantransition. AlternativeHeatingSolutions(naturalgasandpropane)TheSaintJohnareacurrentlyhasa significantpercentageofelectricspaceandwaterheatingcustomers.Withoutoffsetting economicorpopulationincreases,marketsharecouldbeaectedbytheadoptionofalternative solutionsfortheserequirements. ElectricalSales/PurchaseVolume SaintJohnEnergy,duetoitssignificantpercentageof electricspaceheatingcustomersandthemixofdemandandenergywhichformsthebasisofits wholesalepowerpurchaserates,canbesubjecttoshorttermswingsinweatherespecially duringseasonaltransitionperiods.Thiscanleadtofluctuationsincostwhich,givencertain circumstances,maynotbefullyrecoveredinrevenuefromitscustomers. ElectricalPurchaseCosts ΑBylegislation,onlyNBPowerCorporationmaysellelectricitytoa consumerormunicipaldistributionutilitywithintheProvinceofNewBrunswickexceptwhere theelectricitysuppliedwasgeneratedwithintheterritoriallimitsofthemunicipalityandin compliancewiththeutilitiesdistributedgenerationornetmeteringpolicies.Assuch,alternative suppliesofelectricityarelimitedwithintheterritoriallimitsofSaintJohn.Themajorityofthe ǒƷźƌźƷǤ͸ƭpowerpurchasecosts(itslargestexpense)aresubjecttothebusinessdecisionsofNB PowerCorporationand/orotherProvincialauthoritiesandpolicysetters. 0 ¦¤ΐΏ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN AdverseWeather extremeweatherconditionssuchasicestormsandhighwindscaneectthe ǒƷźƌźƷǤ͸ƭabilitytomaintainsystemreliability,safetyandthesecurityofitssupply.Inadditionto customerinconvenience,theseunplannedeventscansignificantlyaddtotheoperationalcostof theutility. AdvancedMeteringInfrastructure Αanumberofscenariosarebeingmodeledasitrelatesto thepotentialintroductionofAdvancedMeteringInfrastructure(AMI)whichisexpectedto require$9to$11millionofcapitalinvestmentthatisnotcontainedinthecurrentbaseplanat thistime.Anamountof$60,000hasbeenincludedinthe2018plantocontractAMIindustry expertstoassistinprojectvaluationandbusinessplandevelopmentforapotentialAMI deployment.Thepotentialdeploymentcouldbefinancedthroughacombinationofdebt financing,costsavings,orrevenuerecovery. CarbonCosts Αtheimplementationofclimatechangeactionsandassociatedpotentialcostof carbonlegislationcouldmateriallyimpactpowerpurchasecostsoverthe10yearplan.Until furtherclarityregardingthedetailsofcarbonpricingemergefromthefederalandprovincial governmentsandtheactualimpactonpowerpurchaseratesisknown,SaintJohnEnergyhas forecastedannualincreasesof2%tobothpowerpurchasecostsandelectricalsalesrevenue. EnergyGeneration ΑSaintJohnEnergyhasrecentlypartneredwiththeVillageofPerthAndover andCityofEdmundsontopursuetworenewableenergyprojects.Together,anapplicationwas madetobeconsideredinacompetitiveprocessaspartofthesecondphaseoftheNBPower LORESSprogramtobuildtwowindgenerationfarms.Atthispoint,noamountshavebeen includedinthe10yearplanrelatedtofutureenergygenerationprojects. WestSideWaterHardness TheCityofSaintJohnrecentlycompletedachangetothewater systemontheciƷǤ͸ƭwestsidewhichhasledtohardwaterconcerns.Thismayresultin prematurefailureoftheelementsinourwaterheaterfleet,approximately5,700 tanks.Measureshavebeentakentoinvestigatehowthecompositionofthewaterwillaffect theelementsandproactivesolutionstoaddresstheproblemarebeingdeveloped.Theimpact ofthispotentialriskisundeterminedatthistimeandassuchhasnotbeenincludedinthisplan. 0 ¦¤ΐΐ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN 2018CapitalExpendituresBudget ThefollowingitemsrepresenttheplannedCapitalBudgetfor2018.Theseestimatesinclude approximately25%oftheannualunionizedlabour/benefitspayrollcosts.Forallmajorprojects, approximately10%hasbeenaddedascontingencytotheestimatetoallowforpotentially unidentifiedcostsand/orcostescalation. 2018CapitalExpendituresBudgetAmount CoreBusiness DistributionEquipment4,300,000 OverheadConductorsandEquipment500,000 BoyanerCourtUnderGroundConductorUpgrade345,000 ThreePhasePadmountLiveFrontTransformerUpgrades326,000 ThirdPartyDrivenHistoricalAverage315,000 BonitaAvenueUndergroundCompletePhase1&Phase2227,500 WoodPoleReplacements215,000 UndergroundConductorSystemUpgrades200,000 MichaelCrescentUndergroundConductorSystemUpgrades200,000 SinglePhaseMeters155,000 Phase1GoldenGroveRoadtoChurchlandRoadConductorUpgrade150,000 CentralBusinessDistrictUpgrades150,000 CircuitRebuildonLancasterStreet150,000 Vault&ManholeUpgrades150,000 Installationof40UndergroundResidentialBoxes125,000 SinglePhasePadmountLiveFrontTransformerUpgrades116,000 PadmountSwitchReplacement80,000 4kVConversionCompletion80,000 SaintCoeurCourtUndergroundUpgrade75,000 CompleteLoyalistLaneconversion60,000 OverheadFeederExtensionsBaysideDrive60,000 StreetLightKioskInstallationUpgrades55,000 HarbourviewSubdivisionPlannedCarryover50,000 AquaticCenterSwitchInstallation50,000 OverheadPrimaryConductorRelocationsPhase150,000 DanielAvenue&BedellStreetConductorUpgrade50,000 RentalLighting45,000 HilyardPlaceTechCableReplacement40,000 MetalPoleReplacements40,000 ThreePhasePadmountTransformerUpgrades32,000 SinglePhasePadmountTransformerUpgrades30,000 SubmersibleTransformerRefurbishment30,000 CustomerServiceDropUpgradePhase130,000 MeteringTanks25,000 0 ¦¤ΐΑ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN 2018CapitalExpendituresBudget(continued)Amount ParkwayMallLoopCompletion25,000 12U6ExtensionUnderground15,000 CurrentTransformers10,500 IrvingOilLimitedHeadOffice10,000 ThreePhaseMeters10,000 McNamaraUndergroundUpgradePlannedCarryover9,000 PotentialTransformers6,500 LynnAvenueLoop12L25,000 MeteringCabinets2,500 SubstationEquipment642,429 CrownStreetSubstationHardening430,000 OilContainmentSystematMilledgevilleSubstation130,000 SubstationEquipmentAdditionsUnplanned57,429 MilledgevilleTransformerProtectionRelay25,000 Technology545,750 WorkOrder&MobileWorkManagement150,000 CISCustomerBillingSoftwareUpgrade120,000 DisasterRecoverySite70,000 MailingEquipment50,000 SJEWebsiteRedesign50,000 DesktopComputerReplacementProgram35,000 ReplaceRemainingAnalogCameras25,000 LaptopReplacementProgram16,000 EngineeringColorPlotter15,000 Tablet&iPhoneReplacements7,000 AudioVisualEquipment4,000 Scanners3,750 SystemTechnology530,000 GridModernization175,000 SCADAUpgradetoSmartVU/OSI100,000 OutageManagementSystemTechnologyUpgrades95,000 SCADAScoutRTUUpgrade70,000 SCADADRServer55,000 SubstationCommunicationUpgrade25,000 SCADAStatusrelays10,000 VehiclesΑFleetReplacementProgram497,000 VariousTools37,500 BuildingsΑMiscellaneousBuilding&FurnitureUpgrades20,000 ProductsandServices MiniSplitHeatPumpRentalProgram4,320,000 WaterHeaters748,888 GrandTotal11,641,567 0 ¦¤ΐΒ 0 ¦¤ΐΓ Budgets Forecast Capital and Financial Cash Year Ten Earnings, SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN 96 367 336 203 153 290 105 2027 3,579 6,175 1,292 1,475 1,838 3,472 7,622 1,145 1,619 17.3% 21,448 33,969 15,352 12,605 10,782 124,064 102,616 0 ¦¤ΐΔ 96 365 519 302 252 473 105 2026 3,511 5,789 1,270 1,446 1,797 3,255 7,262 1,145 1,542 17.3% 21,186 33,201 14,935 12,331 10,527 122,550 101,364 96 362 755 387 337 710 105 2025 3,443 5,410 1,248 1,417 1,756 3,044 6,890 1,145 1,468 17.3% 20,928 32,446 14,483 12,046 10,319 121,055 100,127 96 359 777 461 411 731 105 2024 3,377 5,038 1,227 1,390 1,718 2,838 6,731 1,145 1,398 17.3% 98,906 20,672 31,704 14,045 11,966 10,112 119,578 96 357 986 523 473 940 105 2023 3,312 4,673 1,206 1,362 1,682 2,637 6,342 1,145 1,332 9,864 17.3% 97,699 20,420 30,973 13,588 11,724 118,120 96 354 574 524 105 2022 3,248 4,283 1,186 1,336 1,642 2,422 1,141 1,095 5,973 1,145 1,268 9,587 17.3% 96,508 20,171 30,223 13,175 11,491 116,679 96 351 599 549 105 2021 3,186 3,808 1,165 1,309 1,598 2,158 1,187 1,141 5,595 1,145 1,208 9,195 17.3% 95,091 19,875 29,343 12,807 11,242 114,966 96 347 585 535 105 2020 3,124 3,281 1,146 1,284 1,550 1,867 1,205 1,159 5,147 1,145 1,150 8,706 17.3% 93,460 19,534 28,369 12,410 10,988 112,994 96 345 558 508 105 2019 3,064 2,703 1,126 1,259 1,500 1,548 1,097 1,051 4,644 1,145 1,096 8,042 17.3% 91,857 19,199 27,351 11,937 10,924 111,056 45 343 626 488 441 628 105 2027 2018 3,004 2,016 1,107 1,234 1,569 1,170 4,168 1,145 1,044 7,089 17.3% 90,236 18,860 26,222 11,629 10,885 Α 109,097 2017 48 90 734 488 280 204 914 2017 2,942 1,268 1,049 1,676 1,246 1,880 1,909 3,551 1,000 7,463 17.7% 87,052 18,719 25,655 10,579 10,728 105,770 SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN Earnings of Statement Budgeted Revenue Energy purchased Gross margin Water heater rental revenue Mini-split heat pump rental revenue Lighting and other rental revenue Other revenue Consolidated(in thousands of dollars) Electrical operations Other income Net revenue from operations Distribution operations and maintenance expense Administration, billing, and collecting expense Water heater rental expense Mini-split heat pump rental expense Lighting rental expense Results before financing costs Finance income Finance costs (core) Finance costs (mini-split heat pumps) Net earnings Adjust for non-cash: AmortizationLoss (gain) on disposal of fixed assets Non-cash pension charge Non-cash OPEBs Net cash earnings 96 84 367 203 2027 (779) 1,292 1,475 5,201 1,085 1,523 4,669 17.3% 21,448 24,215 15,352 12,605 (3,330) (3,223) źƭ 124,064 102,616 0 ¦¤ΐΕ 96 84 365 302 ğƒƚǒƓƷ 2026 (764) 1,270 1,446 4,983 1,085 1,450 4,843 17.3% 21,186 23,902 14,935 12,331 (2,965) (2,759) 122,550 101,364 ŷźƭ 96 84 362 387 ΛЋЉЊАΜ͵ 2025 (749) 1,248 1,417 4,750 1,085 1,381 5,042 17.3% 20,928 23,593 14,483 12,046 (2,549) (2,258) 121,055 100,127 ƦƌğƓ͵ 96 84 υЏЌВͲЉЉЉ 359 461 2024 (734) ƷŷĻ 1,227 1,390 4,727 1,085 1,315 5,229 ƚŅ 17.3% 98,906 20,672 23,289 14,045 11,966 (2,348) (1,983) 119,578 ƚŅ ǤĻğƩ 96 84 ƭĻŭƒĻƓƷ 357 523 2023 (720) 1,206 1,362 4,472 1,085 1,253 5,360 17.3% 97,699 20,420 22,989 13,588 11,724 (1,960) (1,533) 118,120 ĻźƷŷĻƩ Ʒƚ ƭǒĬƭĻƨǒĻƓƷ 96 84 354 574 2022 (706) 1,186 1,336 4,247 1,085 1,193 5,465 17.3% 96,508 20,171 22,692 13,175 11,491 (1,622) (1,144) Ļğĭŷ 116,679 źƓ Ћі 96 84 ğƷƷƩźĬǒƷğĬƌĻ 351 599 2021 ĬǤ (692) (856) 1,165 1,309 4,049 1,085 1,136 5,498 17.3% 95,091 19,875 22,350 12,807 11,242 (1,359) 114,966 ķźƩĻĭƷƌǤ 96 84 ƓƚƷ 347 585 źƓĭƩĻğƭĻķ 2020 (678) (616) 1,146 1,284 3,802 1,085 1,082 5,437 źƭ 17.3% ğƩĻ 93,460 19,534 21,964 12,410 10,988 (1,104) 112,994 ƷŷğƷ 96 84 ğƒƚǒƓƷ Utility 345 558 2019 (665) (957) (495) 1,126 1,259 3,522 1,085 1,031 5,226 17.3% 91,857 19,199 21,584 11,937 10,924 ŷźƭ 111,056 Core ƚǝĻƩŷĻğķƭΜ 45 84 343 488 982 2018 (652) (561) 1,107 1,234 3,312 1,085 4,901 ƭĻŭƒĻƓƷ͵ 17.3% 2027 90,236 18,860 21,202 11,629 10,885 (1,004) 109,097 Α ΛĭƚƩƦƚƩğƷĻ 48 84 ƦƩƚķǒĭƷ 488 288 280 521 940 852 2017 2017 (639) 1,049 1,676 2,983 5,379 17.7% ĭƚƭƷƭ 87,052 18,719 21,444 10,579 10,728 105,770 SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN ƭŷğƩĻķ ĭƚƓƭǒƒĻƩ Earnings ƚŅ ƷŷĻ of Ʒƚ ğƌƌƚĭğƷźƚƓ ƭĻŭƒĻƓƷ ğƓ źƭ Statement ǒƷźƌźƷǤ ĭƚƩĻ ƭƷğƷĻƒĻƓƷ ƷŷĻ Budgeted Ʒŷźƭ źƓ ŅƩƚƒ Revenue Energy purchased Gross margin Lighting and other rental revenue Other revenue Segmented(in thousands of dollars) Electrical operations Other income Net revenue from operations Distribution operations and maintenance expense Administration, billing, and collecting expense Lighting rental expense Consumer Products Shared Cost Allocation Results before financing costs Finance income Finance costs (core) Net earnings Adjust for non-cash: AmortizationLoss (gain) on disposal of fixed assets Non-cash Pension Charge Non-cash OPEB Net cash earnings ΫLƓĭƌǒķĻķğƌƌƚĭğƷĻķ 21 60 96 779 153 2027 3,579 6,175 9,754 1,838 3,472 3,666 3,513 2,422 6,113 źƭ 0 ¦¤ΐΖ 21 60 92 ğƒƚǒƓƷ 764 252 2026 3,511 5,789 9,299 1,797 3,255 3,483 3,232 2,280 5,684 ŷźƭ 21 60 87 749 337 ΛЋЉЊАΜ͵ 2025 3,443 5,410 8,853 1,756 3,044 3,305 2,967 2,141 5,277 ƦƌğƓ͵ υЏЌВͲЉЉЉ 21 60 83 734 411 ƷŷĻ ƚŅ 2024 3,377 5,038 8,415 1,718 2,838 3,125 2,714 2,004 4,882 ƚŅ ǤĻğƩ ƭĻŭƒĻƓƷ 21 60 79 720 473 2023 3,312 4,673 7,985 1,682 2,637 2,946 2,473 1,870 4,504 ĻźƷŷĻƩ Ʒƚ ƭǒĬƭĻƨǒĻƓƷ 21 60 75 706 524 2022 Ļğĭŷ 3,248 4,283 7,531 1,642 2,422 2,762 2,239 1,726 4,122 źƓ Ћі ğƷƷƩźĬǒƷğĬƌĻ ĬǤ 21 60 72 692 549 2021 3,186 3,808 6,994 1,598 2,158 2,546 1,997 1,546 3,697 ķźƩĻĭƷƌǤ ƓƚƷ źƓĭƩĻğƭĻķ 21 60 68 źƭ ğƩĻ 678 535 Products 2020 3,124 3,281 6,405 1,550 1,867 2,309 1,775 1,344 3,269 ƷŷğƷ ğƒƚǒƓƷ 21 60 65 665 508 ŷźƭ 2019 Consumer 3,064 2,703 5,767 1,500 1,548 2,054 1,547 1,122 2,815 Α ƚǝĻƩŷĻğķƭΜ ƭĻŭƒĻƓƷ͵ 21 60 62 2027 652 441 856 2018 Α 3,004 2,016 5,020 1,569 1,170 1,630 1,189 2,188 ΛĭƚƩƦƚƩğƷĻ ƦƩƚķǒĭƷ 2017 6 ĭƚƭƷƭ 60 62 734 639 204 568 2017 SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN 2,942 1,268 4,211 1,246 1,592 1,388 2,084 ƭŷğƩĻķ ĭƚƓƭǒƒĻƩ Earnings ƚŅ ƷŷĻ of Ʒƚ ğƌƌƚĭğƷźƚƓ ƭĻŭƒĻƓƷ ğƓ źƭ Statement ǒƷźƌźƷǤ ĭƚƩĻ ƭƷğƷĻƒĻƓƷ ƷŷĻ Budgeted Ʒŷźƭ źƓ ŅƩƚƒ Water heater rental revenue Mini-split heat pump rental revenue Segmented(in thousands of dollars) IncomeNet revenue from operations Water heater rental expense Mini-split heat pump rental expense Consumer Products Shared Cost Allocation Results before financing costs Finance costs Net earnings Adjust for non-cash: AmortizationLoss (gain) on disposal of fixed assets Non-cash Pension Charge Non-cash OPEB Net cash earnings ΫLƓĭƌǒķĻķğƌƌƚĭğƷĻķ SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN SignificantAssumptionsImpactingtheBudgetedStatementofEarnings Year(s) AssumptionImpactedComment FutureRateIncreaseson20182027Rateincreasesof2%(ortheequivalentof2%ifratechangesvary ElectricalSales/Purchasesbycustomerclass)eachApril01st.A+/1%variancetothis2% increaseassumptionwouldresultina+/$183kannualchangeto electricalsalesgrossmargin. SalesMix20182027Salesmixbycustomerclassisassumedtoremainconstantoverthe termoftheforecast. BasekWhReduction20192027Salesreductionsintheyears2019thru2027estimatedtototal 4.95%ofthebaseyearkWhsalesby2027.Thecumulativeeffectof thisreductiononthe10yearplanisareductionof$5.9Min revenueor$1.0Mingrossmargin. PurchaseDemandLoadFactor20182027Purchasedemandloadfactorusedinforecastingpowerpurchase costsisbasedonaveragemonthlydemandfactorsoverthe previoustwoyearperiod,asthisistheonlyhistoricaltimeframe availableunderourcurrentcoincidentpeakbillingstructure.A+/ 1%variancetothemonthlyloadfactorvariancewouldresultina +/$380kannualchangetopowerpurchasecosts. EmployeeCompensation20182027Assumptionsforthe2018yearwerebasedonaknownincreaseof 2.5%forthecollectivebargainingunitonApril01st2018and estimatesforbothinflationary(2%)andprogression(varies) increasesforstaffonanindividualbasis.Forfutureyearsbeyond 2018,anannual2%basecompensationincreasehasbeenassumed. A1%+/variancetothisassumptionwouldresultinanannual+/ $84kofemployeecompensationcosts. EmployeeBenefits20192027Increasesforbothcurrentandfutureemployeebenefitswere assumedtoincreaseby5%annuallybeginningin2019.A1%+/ variancetothisassumptionwouldresultina+/$24kannual changetoemployeebenefitcosts. MinisplitHeatPumpRentals20182027Plannedinstallationsofnewminisplitheatpumprentalunitsof 1,200unitsin2018and6,900unitsoverthe10yearplan.A+/10% varianceinactualrentalvolumeswouldhavea+/$32kimpacton 2018netcashearningsanda+/$2.2Mimpactoverthe10year plan. GeneralInflation20192027Inallcaseswhereapreviousassumptiondidnotexistfora budgeteditem(sales,employeecompensation,benefits,etc.)a1% generalinflationassumptionwasused.A+/1%variancetothis assumptionwouldresultina+/$80kchangetoforecastedannual netcashearnings. 0 ¦¤ΐΗ 290 105 305 328 2027 7,622 1,145 1,619 2,074 10,782 (7,044) (1,969) (8,708) (1,746) 0 ¦¤ΐΘ 473 105 302 832 2026 7,262 1,145 1,542 10,527 (8,047) (1,949) (9,695) (2,578) (1,746) 710 105 298 2025 6,890 1,145 1,468 2,597 10,319 (6,089) (1,930) (7,721) (5,175) (2,578) 731 105 300 481 2024 6,731 1,145 1,398 10,112 (8,020) (1,911) (9,630) (5,657) (5,175) 940 105 297 235 2023 6,342 1,145 1,332 9,864 (8,034) (1,892) (9,629) (5,892) (5,657) 105 293 2022 1,095 5,973 1,145 1,268 9,587 1,649 (5,983) (2,248) (7,938) (7,541) (5,892) 105 289 386 2021 1,141 5,595 1,145 1,208 9,195 (6,131) (2,967) (8,809) (7,926) (7,541) 105 280 2020 1,159 5,147 1,145 1,150 8,706 9504) (6,552) (2,938) (9,210) (7,422) (7,926) 105 270 2019 1,051 4,644 1,145 1,096 8,042 (7,225) (3,636) (2,550) (4,872) (7,422) (10,591) 628 105 323 2018 (500) (143) 4,168 1,145 1,044 7,089 (7,322) (4,320) (4,730) (4,872) (11,819) 90 914 2017 (143) 1,909 3,551 1,000 7,463 2,076 (5,882) (3,800) (9,682) (2,219) SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN Flow Cash of Statement Amortization Loss on Disposal of Fixed Assets Pension expense in excess of contributions Employee future benefits in excess of benefits paid Transfer to Parent Company Purchases of property, plant, and equipment Purchases of mini-splits Customer Capital Contributions Period Ended December 31st Budgeted(in thousands of dollars) Cash flows from operating activities: Net earnings Items not involving cash Net Cash Earnings Investing: Cash from investing Net increase (decrease) of cash Beginning cash balance Ending cash balance ΑΏ 541 49 49 11 16 22 22 252399118301 301 109121 230 764 0 ¦¤ 1,969 1,9811,088 3,838 1,818 1,8246,2802,7339,013 2027 541 8449 49 11 16 249390298 298 108278 386 520 520 797 1,9611,050 3,735 2,241 2,2477,251 1,949 2,7469,996 2026 541 43 43 11 16 80 241381112450 456 295 295 107148 336 299 299 865 2025 2,0061,040 3,7805,224 1,930 2,7958,019 541 42 42 11 16 212372125292 292 106196 302 408 408 861 2024 1,911 2,0201,030 3,758 2,335 2,3417,1592,7729,931 541 42 42 11 16 70 993210363154289 289 105 175 520 520 954 2023 2,015 3,736 2,296 2,3027,079 1,892 2,8469,925 541 42 42 10 16 69 208354162473 479 286 286 104 176 458 458 864 2022 1,9281,015 3,6675,120 2,248 3,1118,231 541 46 46 10 15 876201345180278 283 510 510 103261 364 515 515 886 2021 1,9092,967 3,5115,2453,8549,099 541 36 36 10 15 7526 173337103314 319 444 444 102 203 813 813 834 2020 2,1031,173 3,8895,718 2,938 3,7729,490 541 15 1025 172323227 230 136 136 576 576 101283 409 951 951 803 225 2019 2,0911,293 4,1066,423 3,636 4,439 10,861 Fixtures Demand and Grid Designation UndergroundOverheadPolesCustomerMeteringSubstationSecurityOperationsSmartMiscellaneousFurnitureWellnessSoftwareHardware/NetworkSecurityFleet 2027 Program 2019 Total Total Total Rental Total SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN Class Pump Equipment and Equipment Total Class Equipment Equipment Equipment Equipment Heat Total Total Technology Technology Heaters and and Year Split by Accounting Distribution Distribution Substation Substation Tools Tools System System Buildings Buildings Technology Technology Vehicles Vehicles WaterMini Budget Total dollars) Total ServicesServices of andand Expenditures Total Stream BusinessBusiness thousands ValueCoreCoreProductsProductsGrand Capital(in Αΐ Projected 0 ¦¤ Earnings Projected2027 TechnologyNet Projected2026 Earnings Projected2025 Cash BuildingNet Projected2024 Equipment Projected2023 & 2027 splits Α ToolsMini 2018 Projected2022 Investments Equipment Projected2021 SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN Heaters Capital and SubstationWater Projected2020 Earnings of Equipment Budget2019 2018 Representation DistributionVehicles $0 $8,000,000$6,000,000$4,000,000$2,000,000 $12,000,000$10,000,000 Graphical SAINT JOHN ENERGY 2018 BUDGET AND TEN YEAR BUSINESS PLAN SAINTJOHNENERGY THEPOWERCOMMISSIONOFTHECITYOFSAINTJOHN islocatedat325SimmsStreet SaintJohn,N.B.Canada E2M3L6 PostalAddress: SaintJohnEnergy 325SimmsStreet SaintJohn,N.B.Canada E2M3L6 Voice5066585252 TollFree18779075550 Fax5066580868 www.sjenergy.com 0 ¦¤ΑΑ J. MacKenzie /ƚƒƒźƭƭźƚƓĻƩ /ƚǒƓĭźƌ ƷĻƩƒΉЉБΏЊБ /ŷğźƩ ЌǤƩΉЉЏΏЊВ B. Edwards J. Shaw ЌǤƩΉЉЌΏЋЉ /ƚƒƒźƭƭźƚƓĻƩ ЌǤƩΉЉБΏЊВ S. Courser /ƚƒƒźƭƭźƚƓĻƩ Skills Matrix ЌǤƩΉЉЊΏЊВ D. Pannell /ƚƒƒźƭƭźƚƓĻƩ ЌǤƩΉЉЏΏЋЊ Saint John Energy - Board of Commissioners /ƚƒƒźƭƭźƚƓĻƩ Ross Galbraith ЌǤƩΉЉВΏЊВ źĭĻΏ/ŷğźƩ S. MacMackin Position Member Term/Expiry Skill Legend FinanceLegalUnionized LabourHuman ResourcesEngineeringBusiness/LeadershipCommunity RelationsPensionBusiness Development, valuations, M&A, marketingEnergy Sector Experience Iźŭŷ aƚķĻƩğƷĻ September2018Saint JohnParking Commission {ğźƓƷ WƚŷƓ tğƩƉźƓŭ /ƚƒƒźƭƭźƚƓ The Commission existsfor the purpose of conducting the necessary activity, Mandate to maintain theefficient operation of both on-street and off-streetparking facilities. These business processes are for the fulfillment of public needs in relation to: Parkingin general; The establishmentof a permanent coordinated system of parking facilities; Parking planning, design, location and acquisition; Maintenance, operation,ownership, leasing, in the capacity of lessor or lessee, land, buildings and facilities allocated to parking; To effectively and efficiently manage On and Off-Street Parking while Primary Functions supporting Municipal growth and priorities. Chair-Patricia Ellsworth Name of Board Vice Chair -David Duplisea Members Secretary Treasurer -Tim Peterson Members: Kay Gillis, Michael McGovern,Charles Bryant, Donna Reardon 22staff -comprisedof Saint John Parking Commission staff and contract # of Staff services members. Note: Achange occurred Jan.1, 2018 as the Saint John Parking Commission assumed the operationof Market Square Parking garage.Staff from prior service provider became SJPC employees. Saint John Parking Commission does not receive an operating subsidy from 2018 CoSJ Subsidy the City; There are two (2) revenue streams for the Saint John Parking Commission: Projected 2018 -On-Street Parking: Net incomegenerated by this business process is revenue streams directly allocated to the City of Saint John. Saint John Parking Commission recoups a small fee for services. -Off-Street Parking inclusive of the Peel Plaza Parking Garage. Note: 100%of this revenue stream is realized by the Saint John Parking Commission. -Off-Street Parking as it relates to Market Square Parking Garage operates in a similar fashion to On-Street Parking, whereby the net incomegenerated from the garage is directly allocated to the City of Saint John.SJPC recoups a small fee for services. For 2018, SJPC has no formal CI projectsplanned. SJPC has purchased6 2018 continuous new Pay by Plate machines for St. JosephHospital,which were improvement th implemented on July 24, 2018.Building on this success, the SJPC will be integrating11new machines which will be strategically located in high volume On-Street areas of the uptown(King Street, King Square and th Germain Street).Launch date is scheduled for September 25, 2018. Implementation of these will provide an improved customer experience and reduce cost. On-Street Parking 2018AnnualBudget Annual Budget Revenue: $1,790,000,Expenses: $583,943,Net Income: $1,206,057 Off-Street Parking 2018AnnualBudgetSurface Lots Revenue: $2,043,687, Expenses: $1,785,869,Net Income: $257,818 Off Street Parking2018 Annual Budget Market Square Revenue: $1,420,000, Expenses: $289,815, Net Income: $1,130,185 Off Street Parking 2018 Annual Budget Peel Plaza Parking Garage Revenue:$575,300, Expenses: $1,165,865, Net Income($590,565)* *Note:Budget based on forecast as a result of new Private Sector Parking Garages being builtand customer loss. On-Street Parking 2018YTD JulyYTD Response to YTD July Revenue: $1,164,245,Expenses: $311,108 Actuals ActualNet Income: $853,137 BudgetedNet Income: $715,237 Off-Street Parking 2018YTD JulyYTD -Lots Revenue: $1,218,713 Expenses: $1,074,541 Actual Net Income:$144,172 BudgetedNet Income: $138,821 Off Street Parking2018 YTD JulyYTD Market Square Revenue: $832,569,Expenses: $125,254 Actual Net Income: $707,315 BudgetedNet Income: $659,295 Off Street Parking 2018 YTD JulyYTD Peel Plaza Parking Garage Revenue:$369,736, Expenses: $617,752 ActualNet Income($248,016)** BudgetedNet Income: ($344,442) **Note: As forecast, utilizationat PPPG was low for January and February. Through negotiations, SJPC hassecured190new rentals committed from March until the end of October 2018.The revenue was not forecast and a welcomed event.Also of note, is the delay of the demolition of the Coast Guard building. This is relevant as we needed to keep spaces available (unable to rent) in Market Square and Peel Plaza to accommodate our displaced monthly parkers from the Water Street lot High-Level 2018 Identify strategic land use opportunities as it relates to the overall Growth Performance/Service Plan; Objectives Align On-Street Parking enforcement with uptown business needs (Ex. On-street Overnight Parking); Work toward On and Off street parking availability representation, electronically; YTD Performance/ Performance Area Targets will continue to evolve as a result of Phase II Service Targets development of a multi-year Strategic Plan; Recent Purchase of 6 new Pay by Plate machines for St. JosephHospitaland accomplishments an additional 11which will be strategically located in high volume areas of the uptown; Implementation of Paymentus, which allows the public to setup a personal account to facilitate the online automated payments for Monthly parking; Website enhancements to permit the ability to broadcast messages by Twitter andemail simultaneously; Assumed the management of the Market Square Parking Garage Electronic representation of parking on and off street is now on our website; Modification to the Traffic By-laws to increase the fine related to accessible parking. Today it is $75 and once approved by Council, the new fine will be $125, which is the maximum governed by the MVA. This aligns well with the recommendation put forwardthrough the MoveSJ plan It is noted through the IBI proposal that an opportunity exists to strategically expand upon the number of permits sold in specific lots. The SJPC has adopted this recommendation and is trialing it, in our Water Street Parking lot. Emerging Issues Possible closure of both the hourly/daily (100 spaces) and monthly portion (179 spaces)of the Water Street lot. This will be the result of the construction of the New Brunswick Museum. Potential sale of the Canterbury Parking Garage. 22 hourly spaces and 25 monthly spaces Potential Sale of the Canterbury/Princess lot. 13 monthly spaces. Summary of primary Adopt recommendations of IBI Transportation Plan Phase II including Saint take-aways for John Parking Strategy (Move SJ)and support Phase III go forward. Common Council None Attachments Ώ {ğźƓƷ WƚŷƓ ƩğķĻ ε /ƚƓǝĻƓƷźƚƓ /ĻƓƷƩĻ Ώ Mandate To operate a first class Conference Centre comparable to other centres of its size in North America. To be an economic driver for the community Primary Functions The facility functions as a venue in which to host meetings, conventions & special events and as a hub to host a broad range of events for the local community Name ofBoard Members Hilton Saint John manages the Centre on behalf of the City of Saint John. Hilton Management John Trade # of Staff Provides employment for up to 90 people during peak events. 2017 CoSJ Subsidy The Centre operates Projected 2018 revenue The Centres primary revenue streams are : a) meeting room rentals b) food and beverages sales c) streams audio visual / power / broadband 2018 continuous Planned upgrades for 2018 within the centre are rolling out on schedule. Ice machines have been improvement upgraded, and other kitchen equipment enhancements will be made to complete refurbishment of the kitchen space. LED lighting will be installed in foyer to align with other LED conversions in much of the rest of the centre. Annual Budget All revenue and expense numbers are shared with both the Regional Facilities commission and the TCC Oversight Committee at various times throughout the year. As at August 31 revenues are $9000 ahead of budget. Year to date centre is forecasting to come in line with contribution as there have been additional repair and maintenance costs as the facility continues to age. The 2019 budget has been submitted and approved by both the Oversight Committee and the Regional Facilities Commission. Response to YTD Actuals As at August 31, revenues are ahead of projection by $9000 due to additional strength in room rental and a lift from the Canada 55 games. Although there were additional expenses for supplies and equipment for the huge Canada 55 dinner at Harbour Station (catered by the TCC) forecasts for the year will come in at the budget contribution. High-Level 2018 Performance/Service Throughout 2018, the team at the Trade and Convention Centre continues to be an ambassador for Objectives the city, selling the venue, the experience and the lifestyle that is Saint John. The Saint Awesome brand really resonates in the convention market and team Saint John comprised of Discover Saint John, the TCC, the Hilton and the Delta has very high visibility at national and international events. , Canada 55 Games and Skate Canada. The Canada 55 Games event was a great example of city assets and ABCs working together to showcase all that Saint John has to offer. Accolades from attendees continue to roll in generating a profile and vibe for the city that no amount of marketing could replicate. During the closing ceremonies, the dinner was touted to be the largest ever hosted in the city at 2100. This dinner was hosted at Harbour Station and executed by the team at the Trade and Convention Centre. YTD Performance/ Service Post event survey scores are up considerably in 2018. The centre is seeing double digit growth in Targetsmetrics like property loyal, overall service, value, management, and catered food and beverage. Over 86% of all respondents rate their overall satisfaction at a 9 or a 10. For catered food and beverage, the rating is 90%. Recent accomplishments Early in 2018 the TCC made a commitment to cater the closing ceremonies for the Canada 55 games. This would have been challenging enough if held at the TCC given that the attendance was expected to be twice the maximum capacity of our facility, at 2100. Add in the need to transport everything required to an offsite location, and it becomes a major logistical exercise. Under the leadership of John Mascarenhas, Director of Food and Beverage, planning for this event started at least 6 months out as it was imperative to secure the huge quantities of equipment, service wear, staff and food well in advance. All Hilton managers and supervisors from all departments were on the floor ensuring full service levels and expediting the meal delivery, working from a detailed game plan that would rival any NFL team Once the event wrapped, truck load by truck load, everything was carted away; tables, chairs, carts, racks, knives, forks, linen even all the garbage ! It was a great event that brought out the best in our team and was made even sweeter with all the positive feedback received. Please see attached testimonials for more information. Emerging Issues Need to keep product fresh, relevant and competitive with new centres in Halifax and Moncton coming online. Fredericton now has a hotel connected to their facility as well. Need to ensure pedway system is maintained and accessible to guests with varying mobility as this is a key competitive advantage for Saint John. Need to ensure escalator and elevator infra structure within Market Square is maintained as recent unplanned outages have created considerable challenges to operation and accessibility. Summary of primary The Trade and Convention Centre is a key economic driver in the city generating will over take-aways for Common $2,000,000 in ancillary event attendee spending annually. It ensures viability for many business Council operators within the uptown area and beyond, enhancing the vibrancy of the uptown life style. In 2018 to date, we have well surpassed this impact already, with Canada 55, due to the large number of delegates and the extended period of time most stayed. The visitors the TCC attracts bring new money into our region and are a target market for potential new residents or entrepreneurs for our city. Attachments Saint John Trade and Convention Centre 2018 YTD Actuals versus Budget ActualVariance 07/2018 YTD + BudgetActual vs.Budget Forecast BOY20182018 Trade Centre Revenue Commission on Food and Beverage Sales, A/V Equipment and Sundry revenue235,558262,444-26,886 Meeting Room revenue179,525163,00016,525 Net Revenue415,083425,444-10,361 Payroll & Related Expenses724,590724,128462 Other Expenses Advertising & Promotions20,13721,763-1,626 Audit/Legal Fees8,5038,251252 Bank Charges42420 Cleaning & Maintenance19,32325,032-5,709 Entertainment1,8921,500392 Equipment Rental3,8805,355-1,475 Garbage Removal9,48910,350-861 Laundry17,98517,018967 Licenses2,0642,183-119 Miscellaneous000 Operating Equipment, Computer Services & Uniforms39,87642,800-2,924 Operating, Office & Paper Supplies31,68534,520-2,835 Outside Services4,5984,454144 Postage & Printing 250800-550 Telecommunication12,15311,0621,091 Trade Association Dues & Fees27320865 Travel4,8566,000-1,144 Utilities3,8754,606-731 Total Other Expenses180,881195,944-15,063 Operating Deficit-490,388-494,6274,239 September2018TransitCommission Saint John Transit Commission The Commission existsto provide municipal transit service in alignment with the municipal and transportation plan(s). (PlanSJ & MoveSJ) An efficient and safe operation/strategic planning of municipal transit services. Chair-Patricia Ellsworth Vice Chair -David Duplisea Secretary Treasurer -Tim Peterson Members: Kay Gillis, Michael McGovern,Charles Bryant, Donna Reardon 88staff comprised of: -53Full Time/6Part Time Drivers; -19 Maintenance staff; -10 Administration/Supervisionstaff; $5,632,008 $4,525,047 None at this time; $10,157,055 Year To Date BudgetYear To Date Actual Cost of Operations: $3,440,444Cost of Operations: $3,321,500 City Subsidy:$3,285,279City Subsidy:$3,285,279 Deficit:($155,165)Surplus:$15,904 -Tactical implementation of service changes identified by IBI Transportation strategy(attached); -Continued review of Nextbusdata collection utilizing Automatic Passenger Countersfor route rationalization; -On Bus Ridership Survey complete August 2018; -Video cameraupdateson older fleet busescomplete July 2018; -Development of service standards. Standards will define when to add or decrease services.Upon approval and adoption, standardswill be posted publically; -Develop new website for easier access to transit information, email notifications and service updates; -Customer Service training for all drivers will be completed in 2018; -Cultural awareness training for all drivers will be completed in 2018; -Continuing talks with a vendor for a new pay by phone app. -Continue to work on employer and post-secondarytransit programs to increase ridership; -A focus on strategic marketing and external communications making Transit top of mind; -Public Transit Infrastructure Fund-Phase II requirements are being developed. Many inquiries made to understand program. This will be available in 2018-2019; -Performance Area Targets will continue to evolve as a result of Phase II of the TransportationPlan and through the Commission(s) efforts on a multi- year Strategic Plan; -Transit year to date is on target to finish 2018 strong with a surplus; -Transit received delivery of 12 new buses. Our fleet is now 100% fully accessible; -All 12 new buses include real time passenger information systems and are currently on the road; -Continued focus on part time roster of drivers to reduce overtime expenditures while developing a pool of trained candidates to address eminent retirements; -Ridership as of July is just starting to trend in an upward direction; -Google Transit is now live; nd -2annual Stuff the Bus with school supplies campaign implemented with great success; -Transit is having a banner year on charter work. Revenue is substantially up in this regard; -Ongoing process and knowledge transfer of taxi ByLaw governanceto commission. -Ridership has somewhat stabilizedbut, School Board and Comex ridership continues to decline. SJ Transit has not made any service changes in 2017 which hashad a positive impact on fare revenueand ridership. -Adopt recommendations of IBITransportation Plan Phase II including Saint John Transit Long Term Visionand support Phase III go forward. -None «» «» « » «» « » «» « » «» « » Ľ o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Received Date October 17, 2018 Meeting Date October 22, 2018 Open or Closed Open Session His Worship Don Darling and Members of Common Council Your Worship and Councillors: Subject: Freedom of the City Award / Citizen of the Year Award Background: award usually when a Mayor or member of Council suggests a name. We usually make this decision without too much research or vetting if any and sometimes in the past it has been a costly event for the city. Because ld give them the privilege to march and To be able to recognize many worthy citizens it might be of value to look into having criteria established to be -could be nominated and names forwarded to the recommendations to the entir further investigate and bring recommendations back to Council at a later date. Motion: ideas and come back to Respectfully Submitted, (Received via email) Shirley McAlary Deputy Mayor City of Saint John COUNCIL REPORT M&C No. 2018-280 Report Date October 11, 2018 Meeting Date October 22, 2018 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Demolition of vacant, dilapidated and dangerous building at 80-88 Metcalf Street (PID 376871, 55017925, 55037584, 379529) OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Rachel Van Wart J Hamilton /A Poffenroth Neil Jacobsen RECOMMENDATION Your City Manager recommends that Common Council direct one or more of the Officers appointed and designated by Council for the enforcement of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, to arrange for the demolition of the building at 80-88 Metcalf Street (PID 376871, 55017925, 55037584, 379529), in accordance with the applicable City purchasing policies. EXECUTIVE SUMMARY The purpose of this report is to advise Council that Notices to Comply were issued under Part 13 of the Local Governance Act for the building at 80-88 Metcalf Street. The hazardous conditions outlined in the Notices have not been remedied by the owner within the required time frame and staff is looking for authorization from Council to arrange the demolition of the building. PREVIOUS RESOLUTION N/A REPORT Inspections of the property at 80, 86, 88 Metcalf Street & 17, 19, 21, 23, 25 Albert Street, PID# 376871, 55017925, 55037584, 379529 have revealed the building on the premise is vacant, dilapidated and structurally unsound. The Building is an 8-unit multi-storey, wood-framed apartment building located on four separate PIDs, with multiple civic addresses and one PAN number. See Table 1 for de vacancy in March 2016 and began standard enforcement procedures. The Building sustained a severe fire in November 2017. The property is located in the n centre residential zone. The building is a hazard to the safety of the public by reason of being open, by reason of being vacant, by reason of dilapidation and by reason of unsoundness of structural strength. Table 1 Property Identification with associated PID number, PAN number and civic address according to Service New Brunswick PID # PAN # Civic Address 376871 3891060 80 Metcalf Street 55017925 3891060 Metcalf Street 55037584 3891060 86 Metcalf Street 21 Albert Street 19 Albert Street 379529 3891060 88 Metcalf Street 17 Albert Street 23 Albert Street 25 Albert Street For the reasons described in the attached Inspection Report, Notices to Comply were issued for each PID on August 22, 2018 and were posted to the building the same day, as per section 132(3) of the Local Governance Act that outlines acceptable methods of service. The Certificates of Registered Ownership for each PID lists one company as the registered owner. The Notices provided the owner with 30 days to remedy the conditions at the property. The owner did not take remedial action to comply with the requirements of the Notices. A compliance inspection was conducted on October 3, 2018 which revealed that the conditions which gave rise to the Notices have not changed since the Notices were issued. Attare the Notices to Comply that were issued and the affidavits attesting to service on the owner via posting. Also included are photographs of the building. The Local Governance Act indicates that where a Notice to Comply has been issued arising from a condition where a building has become a hazard to the safety of the public by reason of dilapidation or unsoundness of structural strength, the municipality may cause the building to be demolished. As required in the Act a report from an engineer is attached, forming part of the issued Notices to Comply, and provides the evidence to the buildings vacancy, dilapidation, unsoundness of structural strength and resulting hazard to the safety of the public. A copy of the letters advising of the Common Council Hearing date and affidavits are attached; they were sent to the owner via registered mail on October 3, 2018 and were posted to the building on October 4, 2018. STRATEGIC ALIGNMENT Enforcement of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law SERVICE AND FINANCIAL OUTCOMES As is written in the Local Governance Act that a municipality must commence in the proceedings of remedial action, approval of Common Council is required prior to starting demolition activities at the property. Total cost of the demolition work is approximated at $20,000 $25,000 and will take about 3-5 weeks before it is complete. Staff will seek competitive bidding in accordance be billed to the property owner. If the bill is left unpaid, it will be submitted to the Province with a request for reimbursement. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS provided ownership verification by obtaining the Certificates of Registered Ownership for the property. Additionally, the City s to Comply Land Registry. ATTACHMENTS Notices to Comply (one for each PID) and corresponding Inspection Report Affidavits of Posting - Notices to Comply Affidavits of Posting - Notices of Common Council Hearing Letter Photos Photo 1 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 Photo 2 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 Photo 3 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 Photo 4 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 Photo 5 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 Photo 6 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 Photo 7 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 Photo 8 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 Photo 9 PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 10 Photo PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 11 Photo PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 12 Photo PAN# 3891060 -88 Metcalf Street, Saint John, New Brunswick 80 13 Photo ББ PAN# 3891060 БЏ -88 Metcalf Street, Saint John, New Brunswick 80 БЉ /hb/L\[ w9thw M&C No. 2018-281 Report Date October 11, 2018 Meeting Date October 22, 2018 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Demolition of vacant, dilapidated and dangerous buildings at 1360 Manawagonish Road (PID# 397786) OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Rachel Van Wart J Hamilton /A Poffenroth Neil Jacobsen RECOMMENDATION Your City Manager recommends that Common Council direct one or more of the Officers appointed and designated by Council for the enforcement of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, to arrange for the demolition of the buildings at 1360 Manawagonish Road (PID#397786), in accordance with the applicable City purchasing policies. EXECUTIVE SUMMARY The purpose of this report is to advise Council that a Notice to Comply was issued under Part 13 of the Local Governance Act for the buildings at 1360 Manawagonish Road. The hazardous conditions outlined in the Notice have not been remedied by the owners within the required time frame and staff is looking for authorization from Council to arrange the demolition of the buildings. PREVIOUS RESOLUTION N/A REPORT Inspections of the property at 1360 Manawagonish Road, PID# 397786, have revealed that there are four buildings on the premise; a single-storey building which was once used as a restaurant, a single-storey building with motel Units 1 through 15 (excluding 13), a single-storey building with motel Units 16 through 19, and a single-storey building with motel Units 20 through 24. Staff first June 2012 and began standard enforcement procedures. The property is located in a general commercial zone, Side. The buildings are a hazard to the safety of the public by reason of being vacant, by reason of dilapidation and by reason of unsoundness of structural strength. For the reasons described in the attached Inspection Report, a Notice to Comply was issued on August 2, 2018 and was posted to the building on the same day, as per section 132(3) of the Local Governance Act that outlines acceptable methods of service. The Certificate of Registered Ownership for the building lists two individuals as the registered owners. The Notice provided the owners with 30 days to remedy the conditions at the property. The owners did not file a formal appeal. In addition, staff had regular and frequent communication with one of the owners who had intentions of renovating the buildings; however they did not submit an acceptable permit application and repair plan to comply with the requirements of the Notice within the timeframes provided. A compliance inspection was conducted on October 3, 2018 which revealed that the conditions which gave rise to the Notice have not changed since the Notice was issued. Attis the Notice to Comply that was issued and the affidavit attesting to service on the owners via posting. Also included are photographs of the buildings. The Local Governance Act indicates that where a Notice to Comply has been issued arising from a condition where a building has become a hazard to the safety of the public by reason of dilapidation or unsoundness of structural strength, the municipality may cause the building to be demolished. As required in the Act a report from an engineer is attached, forming part of the issued Notice to Comply, and provides the evidence to the building vacancy, dilapidation, unsoundness of structural strength and resulting hazard to the safety of the public. A copy of the letter advising of the Common Council Hearing date and affidavit is attached; it was sent to the owners via email and registered mail on October 5, 2018 and was posted to the restaurant building on October 4, 2018. STRATEGIC ALIGNMENT Enforcement of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law SERVICE AND FINANCIAL OUTCOMES As is written in the Local Governance Act that a municipality must commence in the proceedings of remedial action, approval of Common Council is required prior to starting demolition activities at the property. Total cost of the demolition work is approximated at $20,000-$25,000 and will take about 3-5 weeks before it is complete. Staff will seek competitive bidding in accordance be billed to the property owner. If the bill is left unpaid, it will be submitted to the Province with a request for reimbursement. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS provided ownership verification by obtaining the Certificate of Registered Ownership for the property. Additionally, the City to Comply Land Registry. ATTACHMENTS Notice to Comply and Inspection Report Affidavit of Posting - Notice to Comply Affidavit of Posting - Notice of Common Council Hearing Letter Photos tŷƚƷƚ Њ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ tŷƚƷƚ Ћ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ tŷƚƷƚ Ќ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ tŷƚƷƚ Ѝ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ tŷƚƷƚ Ў tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ tŷƚƷƚ Џ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ tŷƚƷƚ А tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ tŷƚƷƚ Б tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ tŷƚƷƚ В tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ ЊЉ tŷƚƷƚ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ ЊЊ tŷƚƷƚ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ ЊЋ tŷƚƷƚ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ ЊЌ tŷƚƷƚ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ ЊЍ tŷƚƷƚ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ ЊЎ tŷƚƷƚ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ ЊЏ tŷƚƷƚ tL5ϔ ЌВААБЏ ağƓğǞğŭƚƓźƭŷ wƚğķͲ {ğźƓƷ WƚŷƓͲ bĻǞ .ƩǒƓƭǞźĭƉ ЊЌЏЉ /haahb /hb/L\[ w9thw M&C No. 2018-289 Report Date October 17, 2018 Meeting Date October 22, 2018 Service Area Saint John Water His Worship Mayor Don Darling and Members of Common Council SUBJECT: 2019 Utility Fund Operating Budget OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Acting City Recommended by Head Manager Craig Lavigne Brent McGovern Neil Jacobson Finance Committee Councillor Merrithew Finance Chair RECOMMENDATION TheFinance Committee recommends that the 2019 Utility Fund Operating Budget be presented to Common Council with a recommendation to receive and file. EXECUTIVE SUMMARY The 2019 Utility Fund Operating Budget reflects the completion of the largest municipal infrastructure project in the history of the Province of New Brunswick, the Safe Clean Drinking Water Project (SCDWP). Staff presented the draft Utility Fund Operating Budget at the Finance thth Committee on September 20 and on October 17 with a recommendation to present the Utility Fund Operating Budget to Common Council at its October nd 22 meeting and recommend the budget for receive and file. The proposed 2019 budget holds a service level similar to the service level in the 2018 budget as detailed in the attached high level Service Based Budget Report. 2019 will represent the first full year for the Loch Lomond Drinking Water Treatment Facility (LLDWTF) being in operation. The flat rate being recommended for 2019 is $1,428 which is an increase of 4.39% ($60 per year or $5 per month) over 2018. This rate is less than what has been predicted and forecasted over the last five years. The rate had been planned to increase to $1,440 per year (an additional $72 per year or 5.26%) by 2019. The ability to keep the rates lower is as a result of the numerous expenditure reductions that have been implemented as well as revenue increases. PREVIOUS RESOLUTION th Finance Committee, October 17, 2018, it is was recommended that the Finance Committee approve the 2019 Utility Fund Operating Budget and submit to Common Council for the October 22 meeting for receive and file. STRATEGIC ALIGNMENT The proposed 2019 Utility Fund priorities in taking a strategic approach to financial management of the Utility by continuing to contribute capital funding from operating, finding other revenue sources, improving the allocation of costs among ratepayers and continuing to find efficiencies and savings through continuous improvement initiatives. REPORT The proposed 2019 Utility Fund Operating Budget will be the last budget brought forward using the existing rate structure. Staff have been balancing the significantly increased workload associated with the SCDWP (over the last few months in particular they have been focused on the successful commissioning of the new LLDWTF), managing a large capital program that is separate and apart from the SCDWP which has deadlines associated with funding from other levels of government, while at the same time working with consultants on east and west industrial rate analyses, potable water rate structure and a universal metering analysis. Considerable work has been completed on new potable and industrial rate structure reports as well as in undertaking an analysis and report on universal metering. The rate reports and universal metering reports are expected to be finalized in early 2019 once the analyses are completed. These reports will be presented to the Finance Committee and Council once they are completed which is expected to occur in approximately the next six months. This will give Councilors the ability to make informed decisions and give staff proper time to allow the creation of communications plans to inform rate payers of the changes that will come out of these reports and the new rate structures. The outcomes from these reports will lay the foundation for the Utilities long term financial plan. The 2019 Utility budget is a total of $48,286,000 and represents an increase of $482,000 (1.01%) over 2018 budget ($47,804,000). Saint John Water is continuing to focus on reducing expenditures, paying down debt, while bringing forward prudent, strategic capital budgets that seek to renew infrastructure, lower operating cost while striving to leverage funding from other levels of government for every capital dollar invested. 9ǣƦĻƓķźƷǒƩĻƭ There are budgeted increases in expenditures for 2019 that the Utility has little control over, items such as; wage increases tied to collective agreements, workers compensation rates, electricity increases, the commissioning of 3 new wastewater lift stations, the commissioning of 2 new wastewater treatment facilities (Mora Heights and Greenwood) to meet regulatory obligations, the ongoing maintenance of approximately 75 combined sewer overflows that were constructed as part of regulatory obligations, asphalt costs associated with utility cuts and debt associated with the SCDW project. However, there have been significant cost reductions and savings that have contributed to a lower than expected rate increase. The early borrowing of the $45M substantial completion payment will save rate payers approximately $3.5M. The capital reserve fund for the SCDW project will save rate payers approximately $9.75M and forgo the burden of additional debt payments. Staffing positions have been eliminated in 2018 resulting in savings of approximately $183,000 in 2019. As well as ongoing savings of $46,000 due to changes in the way public notices are communicated and ongoing savings of $50,000 in electricity reductions due to a continuous improvement project. Overall expenditures are increasing by 1.01% with the largest change in water treatment. This service area is budgeted to be $10.035M and the increase is due to the annual service and operating payments associated with the treatment plant and west side well fields. Capital from operating has the largest decrease due to a very lean capital budget and funds no longer being set aside for the SCDW reserve. wĻǝĻƓǒĻ Flat rate and meter rates will increase by approximately 4.39% with the flat rate being $1,428 per year. Saint John Water continues to look for other sources of revenue to help offset rate increases. Finance Committee recommended and Council adopted; new lease agreements (Bell and Eastlink) resulting in $35,875 per year in new revenue which is for a 20 year period and indexed. Changes to water and sewerage bylaw will allow the Utility to recover approximately $86,500 more by ensuring all properties that have access to water and sewerage service pay for that access even if the building is unoccupied and by amending cost associated with meter testing. Other services such as live water main tapping for other municipalities or on private water systems which was recently approved will result in recurring annual revenues of approximately $10,000. The most significant changes in 2019 revenue is the decrease in other revenue which is from less interest being earned due to less cash on hand. It is anticipated the substantial completion payment will be made late 2018 or early 2019 for the SCDWP. As well, and if the Utility continues to have small or no surpluses, the loss of this non rate revenue will need to be made up through rates. /ƚƓĭƌǒƭźƚƓ The increase in rate being proposed and forecasted for 2019 is less than the rates forecasted over the past 5 years. Please note however the budget being proposed does have risk involved. The LLDWTF has just come online. There is a large variable cost associated with operation and is difficult to predict the actual operating cost due to there being numerous variables that need to be calculated on a monthly basis. The capital budget which is funded from the operating is very lean and it does not address enough of the infrastructure deficit nor does it put any funds away for operating and capital reserves. However, the rate studies and universal metering reports that will be brought forward over approximately the next six months which will set the rate structure, capital investment plan and long term financial plan for the Utility. SERVICE AND FINANCIAL OUTCOMES See enclosed 2019 Utility Fund Operating Budget INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Input has been received from all Service Areas, Senior Leadership Team and members of the Finance Committee. ATTACHMENTS Appendix A - 2019 Utility Fund Capital Budget Letter from Finance Committee Chairman Councillor Merrithew APPENDIX "A" 2019 SAINT JOHN WATER EXPENDITURE BUDGET 20182019 Approved Proposed BudgetBudget Operating Expenditures Watershed Management211,000202,000 Water Treatment3,122,00010,035,000 Water Pumping & Storage1,166,0001,222,000 Transmission & Distribution5,281,0004,976,000 Customer Metering703,000714,000 Watershed Management524,000615,000 Water Pumping & Transmission1,051,0001,835,000 Customer Metering121,000133,000 Wastewater Pumping2,859,0003,086,000 Wastewater Collection3,440,0003,158,000 WasteWater Treatment4,969,0004,810,000 Municipal Engineering1,201,000820,000 895,000905,000 1,384,0001,322,000 26,927,00033,833,000 Fiscal Charges Debt servicing10,102,0009,753,000 Capital from Operating10,775,0004,700,000 Total Fiscal Charges20,877,00014,453,000 Total Expenditures 47,804,00048,286,000 APPENDIX "A" 2019 SAINT JOHN WATER REVENUE BUDGET 20182019 Approved Proposed BudgetBudget Revenues Flat rate Accounts21,742,00022,673,000 Metered Accounts19,568,00020,344,000 Fire Protection Levy2,300,0002,600,000 Storm Sewer Levy1,000,000940,000 Other revenues1,977,000748,000 Previous Year's Surplus1,217,000981,000 Total Revenues47,804,00048,286,000 1,3681,428 5.55%4.40% 1.54451.6123 0.98351.0267 0.34710.3623 Ʒ Ʃ Ļ Ļ Ʒ ŭ ğ ķ ǒ . Ɠ ŭ ŷ Ɠ ƚ ź W Ʒ ğ Ʒ Ʃ Ɠ ź Ļ ğ Ʀ { h В Њ October 22, 2018 Љ Ћ COUNCIL REPORT M&C No. 2018-286 Report Date October 17, 2018 Meeting Date October 22, 2018 Service Area Corporate Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Code of Conduct Bylaw OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Patricia Anglin Jonathan Taylor Neil Jacobsen RECOMMENDATION It is recommended that Common Council approve the content of the submitted Code of Conduct Bylaw and refer to the Legal Department to compile the Bylaw in standard format with translation. EXECUTIVE SUMMARY th Council approved the Council Code of Conduct on August 8, 2017. Since that time the province has enacted Regulation 2018-64 cited as the Code of Conduct Regulation - Local Governance Act. The regulation states that Councils must establish a Code of Conduct Bylaw with that addresses the following matters: (a)The values to which members of council are expected to adhere; (b)The behavior by the members of council toward other members of council, officers, employees and residents of the local government, including provisions respecting bullying, discrimination and harassment by members of council; (c)The use of local government property, resources and services by members of council, and (d)The use of communication tools and social media by members of council. The Council Code of Conduct has been revised to include the requirements of Regulation 2018-64. PREVIOUS RESOLUTION th August 8, 2017 : RESOLVED that as recommended by the City Manager in the submitter report M&C 2017-195: Council Code of Conduct, Common Council adopt the Council Code of Conduct. REPORT When Council adopted the Council Code of Conduct, there was discussion concerning what sanctions would be possible to invoke for code of conduct breaches under the forthcoming legislation, The Local Governance Act. The Act does discuss penalties for breach of disclosure of conflict of interest. It does not address penalties under the Code of Conduct Regulation 2018-64. A survey of the literature pertaining to Municipal Code of Conduct for Elected Officials across Canada is summarized in the report prepared by the Nova Scotia Federation of Municipalities (NSFM) in April 2018. In Nova Scotia misconduct is currently addressed in: Municipal Government Act Municipal Conflict of Interest Act Criminal Code of Canada Meetings and Procedures Policy NSFM Model Code of Conduct The NSFM recommendation supports an integrity commissioner model to address sanctions. Other provinces have passed legislation requiring all municipalities to adopt a code of conduct: Ontario (2006) Quebec (2010) Manitoba (2012) Saskatchewan (2016) Prince Edward Island (2016) Alberta (2017) New Brunswick (2017) The Ontario Municipal Act provides two potential sanctions: A reprimand; and Suspension of remuneration paid to the member in respect of his or her services as a member of Council or a local board, for up to 90 days. The Quebec Code of Ethics and Good Conduct Act provides for potential sanctions: A reprimand; Reimbursement of any, or of the value of any, gift or hospitality or benefit received or profit made in violation of the code; Reimbursement of all sums received while the violation continued; or Suspension of the council member for a period of up to 90 days. In Manitoba Council may censure a member if it determines that the member has breached the code of conduct. In Saskatchewan: Any person who has reason to believe that a council member violated the code may raise the matter with the provincial Ombudsman; Council may create an integrity commission position, but integrity commissioner can only investigate internal complaints; Council may suspend, censure, fine, reprimand, and remove councillors from committees for code of conduct violations, but no sanctions have been set in legislation. In Prince Edward Island: The code of conduct must provide procedures for dealing with breaches of its provisions, including the sanctions that may be imposed for a breach of the code of conduct; Potential sanction may include a fine of not more than $500. The Alberta Municipal Government Act provides a number of sanctions: A letter of reprimand addressed to the councillor; Request that the councilor issue a letter of apology; Publication of a letter of reprimand or request for apology and the Requirement to attend training; Suspension or removal of the appointment of a councilor as the chief or deputy chief elected official; Suspension or removal of the chief elect Suspension or removal from council committees; Reduction or suspension of remuneration corresponding to a reduction in duties, excluding allowances for attendance at council meetings. Remedial Action if Contravention occurs under the City of Saint John Council Code of Conduct Bylaw. It is important that Council follow the sanctions that are allowed by the applicable legislation and regulations. The Local Governance Act establishes a Code of Conduct Regulation 2018-64. The Regulation does not provide for sanctions for breach of the Code. The Local Governance Act lists the following penalties for breach of Disclosure of Conflict of Interest: S.97(1) A member who violates or fails to comply with the Disclosure of Conflict of Interest provisions commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category F offence. The range of the fine is between $240 and $10,200. Procedural Bylaw list the following sanctions for conduct unbecoming a Member in a Council meeting: s. 13.6 Decision to Expel: If a member uses insulting or improper language to the Presiding Officer or any member, and refuses to apologize or withdraw his/her remarks when so directed by the Presiding Officer, or willfully obstructs the conduct of business, and refuses to desist when called upon to do so by the Presiding Officer he/she may be ordered by It is submitted that because sanctions have not been set in the Local Governance Act for breaches of the Code, Council has little authority to invoke sanctions. However, it is suggested that Council may have authority for the following actions: Common Council appoints Members to committees. As a sanction for breach of the Code of Conduct Bylaw, Council could include a provision that Council may remove a Member from a committee for behavior causing a breach of the Code of Conduct. It is also suggested that Council could reprimand a Member for breach of the Code of Conduct Bylaw. These are moderate actions implemented in other municipalities in New Brunswick. STRATEGIC ALIGNMENT Valued Service Delivery SERVICE AND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS Code of Conduct Draft Bylaw CODE OF CONDUCT BYLAW FOR ELECTED MEMBERS OF THE CITY OF SAINT JOHN PREAMBLE Whereas the Local Governance Act, 2017 authorizes local governments to establish a Code of Conduct Bylaw; And whereas as stipulated in New Brunswick Regulation 2018-64, the Code of Conduct Bylaw must include the following mandatory provisions: (a)the values to which Members of Council are expected to adhere; (b)the behavior by the Members of Council toward other Members of Council, officers, employees and residents of the local government, including provisions respecting bullying, discrimination and harassment by Members of Council, (c)the use of local government property, resources and services by Members of Council; and (d)the use of communication tools and social media by Members of Council; And whereas a Code of Conduct ensures that Members of Council share a common basis and understanding for acceptable conduct extending beyond the legislative provisions governing the conduct of Members of Council as set out in the Local Governance Act; And whereas as Members of Council, we recognize that our actions have an impact on the lives of all residents and property owners in the community; And whereas the establishment of a Code of Conduct Bylaw is consistent with the principles of transparent and accountable government; Now therefore the Common Council of the City of Saint John adopts certain 1 rules in the form of a Council Code of Conduct Bylaw that further underscores the requirement that elected officials be independent, impartial, and duly responsible in serving their constituents. APPLICATION 1.This Code of Conduct Bylaw applies to the Mayor and all Members of VALUES OF MEMBERS OF COUNCIL 2. The Values of Members of Council include: (a) Honesty Members of Council shall be truthful and open in their roles as Council Members and as members of the City they serve. (b) Respect Members of council shall treat every person, including other Members of Council, City employees and the public with dignity and respect. (c) Transparency and Accountability Members of Council shall endeavor to conduct and convey council business and all their duties in an open and transparent manner, other than those discussions that are authorized to be dealt with in a confidential manner in closed session, so that stakeholders can view the process and rationale used to reach decisions and the reasons for taking certain actions. (d) Confidentiality Members of Council shall refrain from disclosing or releasing and confidential information acquired by virtue of their office except when required by law or authorized by council to do so. Members shall not take advantage of or obtain private benefit from information that is obtained in the course of or as a result of their official duties or position that is not in the public domain. (e) Leadership and the Public Interest Members of Council shall serve their constituents in a conscientious and diligent manner and act in the best interests of the City. Members of 2 Council are expected to perform their duties in a manner that will bear close public scrutiny and shall not provide the potential or opportunity for personal benefit, wrongdoing or unethical conduct. (f) Responsibility Members of Council shall act responsibly and in accordance with the Acts of the Parliament of Canada and the Legislature of New Brunswick, including the Local Governance Act. This duty includes disclosing actual or potential conflicts of interest, either financial or otherwise relating to their responsibilities as Members of Council. Each Member of Council is individually responsible for preventing potential and actual conflicts of interest. BEHAVIOUR OF MEMBERS OF COUNCIL 3.1 Members shall conduct themselves in a professional manner with dignity and make every effort to participate diligently in the meetings of council, committees of council and other bodies to which they are appointed. 3.2 Members shall perform their official duties in accordance with the following general principles: (a)Be honest and open with Council Members, local government staff, and the general public; (b)Make decisions that are in the best interest of the City as a whole; (c)Make decisions based on careful and objective consideration and review of the facts; (d)Insure that objectivity, impartiality and transparency are emphasized in decision-making; (e)Be accountable for the decisions made by the council; (f)Demonstrate a high level of integrity and professionalism when representing the local government and in dealing with members of the broader community; (g)Ensure that all duties are performed in compliance with 3 federal and provincial laws, as well as bylaws, policies and procedures adopted by the City. 3.3 Members shall at all times serve and be seen to serve their constituents in a conscientious and diligent manner. 3.4 Members shall conduct their dealings with each other in ways that maintain public confidence in the office to which they have been elected, are open and honest, focus on issues rather than personalities, avoid aggressive, offensive or abusive conduct. 3.5 Members shall treat members of the public, other Council Members, local government staff or individuals providing services on a casual or contractual basis with dignity, understanding and respect. 3.6 Members shall promote the governance framework to ensure their work environment is free from discrimination, bullying, offensive and/or derogatory language, and harassment and that they are in compliance with the local where applicable. 3.7 Without limiting the generality of the foregoing, Members shall not: a)Make inappropriate comments or gestures to or about an individual where such conduct is known or ought reasonably to be known to be offensive to the person(s) to whom they are directed or about: b)Display materials or transmit communications that are inappropriate, offensive, insulting or derogatory; c)Make threats or engage in any abusive activity or course of conduct toward others, including bullying; d)Vandalize the personal property of others; e)Commit assault of any kind, including making unwanted physical contact, including touching, patting or pinching; f)Refuse to converse or interact with anyone based on any 4 ground listed in the Human Rights Act. CONFLICTS OF INTEREST 4.1 Members have a statutory duty to comply with the Conflict of Interest provisions set out in Part 8 of the Local Governance Act. 4.2 Members are to be free from undue influence and not act or appear to act in order to gain financial or other benefits for themselves, family, friends or associates, business or otherwise. 4.3 It is the individual responsibility of each Member to seek independent expense, with respect to any situation that may result in a pecuniary or other conflict of interest. RESPECTING ROLES AND RESPONSIBILITIES 5.1 Decision making authority lies with Council, and not any individual Member. No Member shall, unless authorized by Council, attempt to bind the City of Saint John or give direction to employees, agents, contractors, consultants or other service providers or prospective vendors to the City. 5.2 Members shall accurately communicate the decisions of Council, decision, such that respect for the decision-making process of Council is fostered. 5.3 Members of Council shall ensure they: (a)Focus on their governance role of providing leadership for the community in an open, accountable and transparent manner, establishing strategic direction and providing oversight of the local government; (b)Respect the role of the local provide day-to-day administration of the local government, provide advice and analyses, implement council decisions, and carry out their responsibilities as required 5 under the Local Governance Act, and any other relevant federal and /or provincial legislation, regulations or bylaws of the local government; (c)Respect the role of Council as a whole being the decision-making body for the local government. Only Council as a whole and no single Member including the Mayor has the authority to direct staff, approve budget, policy, committee processes and other matters, unless specifically authorized by Council. (d)Council as a whole has the authority to approve budget, and policy statements, including structures and procedures for committees. Authority to act on behalf of Council, including through a committee, can only be delegated by Council. GIFTS AND BENEFITS 6.1 In accordance with section 96 (a), and (b) of the Local Governance Act, a Member shall not: (a) accept any fees, gifts, gratuities or other benefit that could reasonably be seen to influence any decision made by him / her in the carrying out of his / her functions as a Member, or (b) for his or her personal gain, or for the personal gain of a family associate, make use of his or her position or of any information that is obtained in his or her position and is not available to the public. 6.2 Members of Council are not precluded from accepting: (a)Compensation or benefit authorized by council; (b)Rewards, gifts or benefits not connected with the performance or duties of office; (c)Services provided without compensation by persons volunteering their time; (d)Food, lodging, transportation and entertainment provided by other levels of governments or by other 6 local governments, boards and commissions; (e)Reasonable quantities of food and beverages consumed at banquets, receptions, ceremonies and similar events; (f)Token gifts such as souvenirs and commemorative gifts that are given in recognition of service for attending an event; (g)Gifts received as an incident of protocol or social obligation that normally and reasonably accompany the responsibility of office. USE OF LOCAL GOVERNMENT PROPERTY, RESOURCES AND SERVICES BY MEMBERS OF COUNCIL 7.1 No Member of Council shall make use of, or permit the use of any City government property (land, facilities, equipment, supplies, etc.), staff or other resources (computers, networks, websites, social media) other than for carrying out the business of the local government. 7.2 Members shall avoid waste and extravagance in the provision or use of the resources or property belonging to the City government. 7.3 No Member shall use the facilities, equipment, supplies, services or other resources of the City for any election campaign or campaign-related activities. No Member shall undertake campaign related activities on City property. No Member shall use the services of persons during working hours in which those persons receive any compensation from the City. USE OF COMMUNICATION TOOLS AND SOCIAL MEDIA 8.1 Members shall use communication tools, such as newsletters, websites and social media in a responsible and respectful manner. 7 8.2 Members must not claim to speak on behalf of Council unless authorized to do so. 8.3 Unless Council directs otherwise, spokesperson and in the absence of the Mayor, it is the Deputy Mayor. All inquiries from the media regarding the official Council position on an issue l spokesperson. 8.4 A Member who is authorized to act ensure that their comments accurately reflect the official position and will of Council as a whole, even if the Member position. 8.5 Members must keep in mind they are always representative of the City of Saint John, including when engaging in social media activities, and Members are encouraged to identify when views expressed are theirs alone and not official City of Saint John communication. 8.6 Members shall not use communication tools and social media to engage in criticism of other members of council, the City staff or the general public. 8.7 Members shall not engage in or encourage bullying, flaming, or shaming of any other social media users. These types of interactions on social media misplace the focus of interaction on attacking individuals rather than engaging in constructive discussion or debate. This manner of communication is inconsistent with the Code of Conduct and unbecoming of the office that members hold. 8.8 No Member shall make a statement with the intent to mislead Council or members of the public. 8.9 No Member shall make a statement when they know the statement is false. CONDUCT AT MEETINGS 9.1 Members of Council shall conduct themselves in accordance with the 8 Procedural Bylaw, in particular Section 12 Rules of Conduct. 9.2 Members of Council may not impugn or malign a debate or decision or otherwise erode the authority of council. Members have the right to express disagreement with positions put forward by other Members provided such disagreement remains focused on the issue. Once Council has adopted a resolution, Members of Council are expected to support the resolution and the work associated with carrying out this resolution. HANDLING OF CONFIDENTIAL INFORMATION 10.1 Members shall refrain from disclosing or releasing and confidential information to any member of the public, or in any way divulge any confidential information, including personal information or any aspect of deliberation obtained through their holding office, in either oral or written form, in accordance with the Right to Information and Protection of Privacy Act. 10.2 Members shall keep confidential those matters that are discussed in a meeting that is authorized under the Local Governance Act to be closed to the public. 10.3 Nor shall a Member use confidential information including information that they might have knowledge of by virtue of their position that is not in the public domain, including emails or correspondence from other members, or third parties, for personal or private gain, or for the gain of relatives or any person or corporation or cause detrimental to the City, Council, local board or others. REMEDIAL ACTION IF CONTRAVENTION OCCURS 11.1 Should a Member of Council breach any of the principles outlined in this code, the possible courses of action that are available to council include but are not limited to: 9 (a) Reprimand; (b) Expulsion of Member from a meeting of Council or Council committee; (c) An apology by the Member of Council to the impacted individual(s), council and or the general public; (d) Removal of the Member from the Council Committee and/or bodies; (e) The Offences and Penalties contained in the Local Governance Act that apply to members who violate the Disclosure of Conflict of Interest provisions of the Act; (f) Other penalties and sanctions contained in relevant federal or provincial legislation. IN WITNESS WHEREOF The City of Saint EN FOI DE QUOI, The City of Saint John John has caused the Corporate a fait apposer son sceau communal sur Common Seal of the said City to be le ƦƩĽƭĻƓƷ ğƩƩľƷĽ ƌĻ 2018, avec les affixed to this by -law the XX day MM, signatures suivantes : A.D. 2018 and signed by: _______________________________________ Mayor ______________________________________ Common Clerk /Greffier communal 10 /hb/L\[ w9thw M&C No. 2018-290 Report Date October 17, 2018 Meeting Date October 22, 2018 Service Area Corporate Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Council Remuneration Elimination of 1/3 Tax Free Allowance OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Pat Anglin/J. Taylor Jonathan Taylor Neil Jacobsen RECOMMENDATION That staff be directed to return to Council in 2019, prior to budget deliberations, with a recommendation respecting Council remuneration options, namely: a)Whether to increase the annual Council remuneration to compensate for the elimination of the 1/3 tax free allowance; and b)Whether to provide an annual Cost of Living Allowance. EXECUTIVE SUMMARY As of January 1, 2019 changes to the Income Tax Act introduced by the federal government will eliminate the one-third tax-free allowance currently available to municipal elected officials. This means Council members who are currently paying income tax on two-thirds of their City remuneration will be taxed in full starting in 2019. In other words, Council members will pay more income tax and see a reduction in their net income. It is suggested that a review of Council remuneration be undertaken in 2019 for implementation in the next term of Council (2020-2024). REPORT All municipal Councils have a responsibility to periodically review the remuneration provided to elected officials. The last review of Council compensation was conducted by Korn Ferry (Hay Group) in November 2016. Importantly, this study was conducted prior to the federal budget 2017-18 which eliminated the Council members tax-exempt allowance. The impact of the elimination of the tax- remuneration will vary amongst Council members. Currently, the annual tax- exempt allowance provided to Council is as follows: Mayor $24, 818; Deputy Mayor $12,871; Councillor $9854. In order to address the impact of the new income tax changes, some Canadian municipalities in other Provinces have made adjustments to their elected ompensation. Staff queried municipalities in New Brunswick and learned that although the majority of other municipalities intend on discussing this matter during budget deliberations, most have not made changes to their Remuneration arrangements in municipalities differ significantly across the country. in 2016, it is a recommended that a review be conducted in 2019 given the changes to the tax-exempt portion of Council compensation. It is further recommended that Council consider allowing for an annual cost-of-living increase in its compensation to account for inflation. Many municipalities have provisions in their Council salary by-laws which prescribe cost-of-living adjustments based on particular formulas. This type of approach can help mitigate the significant one-time increases that often occur when compensation levels have not been adjusted in a number of years. Staff take place in 2019, the third year of the four year Council term. Staff would report back to Council with recommendations prior to budget deliberations. At that time, should Council wish to proceed with compensation adjustments, the changes could be implemented for the incoming Council term. This process would allow Council to make compensation decisions for the next Council without concern for a pecuniary interest in the outcome. STRATEGIC ALIGNMENT Fiscal responsibility SERVICE AND FINANCIAL OUTCOMES No change in 2018 and 2019 fiscal years. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Finance and Administrative Services /hb/L\[ w9thw M&C No. M&C 2018 - 279 Report Date October 17, 2018 Meeting Date October 22, 2018 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Nuisance Deer Management Program Update OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Tim Michael Hugenholtz Neil Jacobsen Murphy RECOMMENDATION Your City Manager recommends Common Council receive and file this report. EXECUTIVE SUMMARY In September 2017, Common Council directed City staff to investigate ways to control the deer population in Millidgeville. The risk of lyme disease and vehicle accidents were the main concerns. Staff have been following up on this direction since. PREVIOUS RESOLUTION In April 2018 (via M&C 2018-118) Common Council endorsed the following actions by City staff to assist managing the urban deer population and lyme disease in the City: 1.Continue a communication program that advises the public how they can help control the deer population and protect themselves against lyme disease, 2.Install Deer Crossing roadway warning signage on Millidge Avenue, University Avenue, Hickey Road, and Heather Way, and 3.Conduct an information session and a survey of property owners in the Millidgeville area with a follow-up report back to Common Council as first steps toward a possible Nuisance Deer Management Program. M&C 2018-118 and the original motion of Council is attached to this report for additional context. REPORT The warning signage has been installed. A survey available to all City residents will be advertised to the public over the coming weeks. The survey has been approved by staff of the Provincial Department of Energy & Resource Development (ERD) and will be shared with the public by the Cityommunications Department. Since the April 2018 staff report, ERD has provided clarification with respect to their bǒźƭğƓĭĻ 5ĻĻƩ ağƓğŭĻƒĻƓƷ tƩƚŭƩğƒ: 1.The public information session will be held following positive (50%+1) citizen support for the Program in the City through the public survey. City staff had previously contemplated that the public information session would occur before the survey as part of the communications plan. 2.The survey and program would be implemented City wide. City staff had contemplated that the program would be implemented in the Millidgeville area first, and then potentially extended to other areas of the City at a future date. 3.Limited resources within ERD will impact the timing of the program roll- out. For example, the public information session will likely not happen until early 2019. City staff remain confident that additional deer harvest permits can be issued in the fall of 2019. As originally communicated in April, the City will also need to implement a By- law that prohibits the feeding of deer as another prerequisite to obtain ERD approval and roll-out of the program. In 2013, Common Council was provided advice from City staff and the City Solicitor on issues regarding the enforcement of such a By-law, including the need for citizens to testify against neighbours and significant anticipated By-law enforcement staff / resource limitations. It is fair to say at this point that although enacting a By-law prohibiting the feeding of deer appears plausible in order to implement a deer management program, public expectations regarding By-law enforcement need to be carefully managed. complete their legal review of the proposed By-law and any applicable Provincial legislation. A formal request to the Minister of Energy and Resource Development will need to follow a positive public survey outcome and the creation and approval of a City of Saint John By-law prohibiting the feeding deer. City staff will provide Council and local citizens with updates as appropriate, including circulation of stndrd the questionnaire, 1, 2 and 3 reading of the proposed By-law, and issuance of a letter to the Minister of Energy and Resource Development requesting introduction of the Nuisance Deer Management Program. STRATEGIC ALIGNMENT źĬƩğƓƷͲ {ğŅĻ /źƷǤ priority. SERVICE AND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS ATTACHMENTS M&C 2018-118 and Council Referral