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2020-04-20_Agenda Packet--Dossier de l'ordre du jourCity of Saint John Common Council Meeting AGENDA Monday, April 20, 2020 6:00 pm Meeting Conducted by Electronic Participation 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 March 30, 2020 Committee of the Whole Open Minutes 5 - 6 2.2 April 6, 2020 Common Council Minutes 7-18 3. Approval of Agenda 4. Disclosures of Conflict of Interest 5. Consent Agenda 5.1 2020 Asphalt Pavements Work (Recommendation: Receive for Information) 19-23 5.2 Contract No. 2020-17 Asphalt Resurfacing 2020 (Recommendation in Report) 24-27 5.3 Tender for Asphaltic Concrete Mixes (Recommendation in Report) 28-30 5.4 Real Property Attribute Information Distribution Agreement (Recommendation 31-35 in Report) 5.5 Long Distance and Teleconferencing Contract - Landlines (Recommendation in 36-42 Report) 5.6 2020 Roadway Construction Projects (Recommendation: Receive for 43-53 Information) 5.7 Market Slip Dredging Tender Award (Recommendation in Report) 54-63 5.8 Contract 2020-15: Michael Crescent —Water Service Renewals 64-66 (Recommendation in Report) 5.9 Contract 2020-04: Sanitary Sewer Structural Lining Phase IV - Various 67-69 Locations (Recommendation in Report) 5.10 Contract 2020-02: Celebration Street — Water, Sanitary & Storm Sewer 70-72 Renewal and Street Reconstruction (Recommendation in Report) 5.11 2020 Engineering Inspection Services (Recommendation in Report) 73-75 5.12 Virtual Planning Advisory Committee and Heritage Development Board Service 76-84 Restoration and Rescheduling of Public Hearings (Recommendation in Report) 6. Members Comments 7. Proclamation 7.1 Lyme Awareness Month - May 2020 85-85 7.2 Day of Mourning - April 28, 2020 86-86 8. Delegations / Presentations 9. Public Hearings - 6:30 p.m. 10. Consideration of By-laws 11. Submissions by Council Members 12. Business Matters - Municipal Officers 12.1 Essential Services Update 87-97 12.2 Operations Update 98-102 12.3 Update on Sewer System and Flushable Wipes (Verbal) 12.4 COVID-19 Financial Impact 103-121 12.5 Sustainability Plan Update 122-507 13. Committee Reports 13.1 Finance Committee: 2020 Capital Budget Reallocations General and Utility 508-517 Fund 14. Consideration of Issues Separated from Consent Agenda 2 15. 16. General Correspondence 15.1 Office of the Premier: Conversion Therapy (Recommendation: Receive for 518-518 Information) 15.2 L. Leblanc: Clearing Virus Measures (Recommendation: Receive for 519-520 Information) 15.3 G. Lowe: City's Taxi By -Law (Recommendation: Receive for Information; Staff 521 -521 report to Council under development and due for May 4th) Supplemental Agenda 16.1 Cisco WebEx Licences - Video Conferencing 17. Committee of the Whole 18. Adjournment K3 522-545 NOTICE: THE CITY IS COMMITTED TO TAKING IMPORTANT STEPS IN REDUCING THE SPREAD OF COVID- 19. THE PUBLIC, INCLUDING THE MEDIA, IS NOT PERMITTED TO ATTEND IN PERSON. THE MEETING IS AVAILABLE BY LIVESTREAMING ON YOUTUBE. ACCESS TO THE LIVESTREAMING OF THE MEETING IS AVAILABLE ON THE CITY'S WEBSITE. The public may view a live stream of the meeting on the City's website: https://www.youtube.com/channel/UCWOdmpd x2m-YiZluYABzow/live AVIS: LA VILLE S'EST ENGAGEE A PRENDRE DES MESURES IMPORTANTES POUR REDUIRE LA PROPAGATION DE COVID-19. LE PUBLIC Y COMPRIS LES MEDIAS NEST PAS AUTORISE A ASSISTER EN PERSONNE. LA REUNION EST DISPONIBLE EN DIRECT SUR YOUTUBE. L'ACCES AU LIVESTREAMING DE LA REUNION EST DISPONIBLE SUR LE SITE DE LA VILLE. Le public peut voir une diffusion en direct de la reunion sur le site Web de la Ville: https://www.youtube.com/channel/UCWOdmpd x2m-YiZluYABzow/live 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 68(1) of the Local Governance Act and Council / Committee will make a decision(s) in that respect in Open Session: 4:30 p.m., Electronic Participation 1.1 Approval of Minutes 68(1) 1.2 Financial Matter 68(1)(c,j) 1.3 Land Matter 68(1)(d) 1.4 Financial Matter 68(1)(c) 1 Ville de Saint John Seance du conseil communal Lundi 20 avril 2020 18h Salle du conseil communal (salle Ludlow), au 8e etage de I'hotel de ville 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 totalite ou en partie, peut faire I'objet d'une discussion en prive en vertu des dispositions prevues au paragraphe 68(1) de la Loi sur la gouvernance locale. Le conseil/comite prendra une ou des decisions a cet egard au cours de la seance publique : 16 h 30, Salle de conference, 8e etage, hotel de ville 1.1 Approbation du proces-verbal 68(1) 1.2 Questions financieres 68(1)(c, j) 1.3 Question fonciere 68(1)(d) 1.4 Questions financieres 68(1)(c) Seance ordinaire 1. Ouverture de la seance 2. Approbation du proces-verbal 2.1 Proces-verbal du Comite plenier du 30 mars 2020 2.2 Proces-verbal du Conseil communal du 6 avril 2020 3. Adoption de I'ordre du jour 4. Divulgations de conflits d'interets 5. Questions soumises a I'approbation du conseil K 5.1 Travaux de revetement en asphalte en 2020 (Recommandation : accepter a titre informatif) 5.2 Contrat n° 2020-17 : Resurfa�age d'asphalte en 2020 (recommandation dans le rapport) 5.3 Appel d'offres pour les melanges de beton asphaltique (recommandation dans le rapport) 5.4 Accord de distribution des informations sur les attributs des biens immobiliers (recommandation dans le rapport) 5.5 Contrat d'interurbain et de teleconference — Lignes terrestres (recommandation dans le rapport) 5.6 Projets de construction de routes en 2020 (Recommandation : accepter a titre informatif) 5.7 Adjudication de I'appel d'offres pour le dragage de slips de marche (recommandation dans Ie rapport) 5.8 Contrat 2020-15 : Michael Crescent — Renouvellement des services d'eau (recommandation dans le rapport) 5.9 Contrat 2020-04 : Revetement structurel des egouts sanitaires Phase IV — divers emplacements (recommandation du rapport) 5.10 Contrat 2020-02 : Rue Celebration — Renouvellement des reseaux d'eau, d'assainissement et d'egouts pluviaux et reconstruction des rues (recommandation dans le rapport) 5.11 Services d'inspection technique pour 2020 (recommandation dans le rapport) 5.12 Comite consultatif d'urbanisme et Conseil d'amenagement du patrimoine virtuels — Service de restauration et report des audiences publiques (recommandation dans le rapport) 6. Commentaires presentes par les membres 7. Proclamation 7.1 Mois de sensibilisation a la maladie de Lyme — Mai 2020 7.2 Jour de deuil — 28 avril 2020 8. Delegations et presentations 9. Audiences publiques —18 h 30 K3 10. Etude des arretes municipaux 11. Interventions des membres du conseil 12. Affaires municipales evoquees par les fonctionnaires municipaux 12.1 Mise a jour sur les services essentiels 12.2 Mise a jour sur les operations 12.3 Mise a jour sur le reseau d'egouts et les lingettes jetables (verbal) 12.4 Impact financier de la COVID-19 12.5 Mise a jour sur le plan de durabilite 13. Rapports deposes par les comites 13.1 Comite des finances : Reaffectations generales du budget d'investissement de 2020 et fonds des services publics 14. Etude des sujets ecartes des questions soumises a I'approbation du Bureau 15. Correspondance generale 15.1 Bureau du premier ministre : Therapie de conversion (recommandation accepter a titre informatif) 15.2 L. LeBlanc : Mesures d'elimination des virus (recommandation : accepter a titre informatif) 15.3 G. Lowe : Arrete fiscal de la ville (recommandation : accepter a titre informatif; rapport du personnel au Conseil en cours d'elaboration et prevu pour le 4 mai) 16. Ordre du jour supplementaire 16.1 Licences Cixco WebEx — Videoconference 17. Comite plenier 18. Levee de la seance CI 2020-1 Special Committee of the Whole Meeting Open Session March 30, 2020 Special Minutes of the Committee of the Whole Meeting Open to the Public Monday, March 30, 2020 at 4:30 p.m. 8t" Floor Boardroom, City Hall Present: Mayor Don Darling attended in person Deputy Mayor Shirley McAlary attended by conference call Councillor -at -Large Gary Sullivan attended by conference call Councillor Ward 1 Blake Armstrong attended by conference call Councillor Ward 1 Greg Norton attended by conference call Councillor Ward 2 John MacKenzie attended by conference call Councillor Ward 2 Sean Casey attended by conference call Councillor Ward 3 Donna Reardon attended by conference call Councillor Ward 3 David Hickey attended by conference call Councillor Ward 4 David Merrithew attended by conference call Councillor Ward 4 Ray Strowbridge attended by conference call Also Present: City Manager J. Collin attended in person City Solicitor J. Nugent Q.C. attended by conference call Common Clerk J. Taylor attended in person Deputy Common Clerk P. Anglin attended by conference call 1. Meeting Called To Order The Mayor called the Committee of the Whole Open Session Meeting to order. Due to COVID- 19 Members of Council are physically distancing and participation by conference call is permitted. The City Manager took roll call at 4:30 p.m. All Council Members were in attendance. Record Pursuant to Section 68(1) The meeting of the Committee of the Whole remained in Open Session to determine whether it was appropriate to have the meeting in Closed Session to discuss general and specific Code of Conduct matters. The following Senior Staff members provided advice. The City Manager advised that, in his opinion, there are two options: 1. If Council Members do not discuss any city business, just discuss the code of conduct, then the meeting should be adjourned, staff withdraw from the meeting and Council Members stay on the call for discussion only. 2. If Council discusses City Business a meeting is required. The question becomes should the meeting be in Open Session or Closed Session. The Local Governance Act (LGA) does 61 2020-2 Special Committee of the Whole Meeting Open Session March 30, 2020 not specifically enumerate this matter in s. 68. However, the spirit of the Act may allow for this. The City Solicitor stated that the City Manager's advice is accurate. Legislation does not work like arithmetic. We need to respect the legislation. Some municipalities have retained a person to review complaints, investigate and provide a report. The report would be made public with the exception of what could be redacted under the Right to Information and Protection of Privacy Act (RTIPPA). In our circumstances, the Code follows an honour system; it is not a precise instrument. The options the City Manager outlined are valid. The City Manager emphasized clearly that Council cannot make any decisions in a Closed Session. Decisions must be made in Open Session. The Common Clerk advised that the Office of the Common Clerk provides a public Notice of all meetings. Moved by Councillor Armstrong, seconded by Councillor MacKenzie: RESOLVED that the Committee of the Whole Open Session meeting be adjourned. MOTION CARRIED with Councillor Sullivan voting nay. Common Clerk/greffier communal C.1 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 MINUTES — REGULAR MEETING COMMON COUNCIL OF THE CITY OF SAINT JOHN APRIL 6, 2020 AT 6:00 PM MEETING CONDUCTED BY ELECTRONIC PARTICIPATION Present: Mayor Don Darling attending by video conference Deputy Mayor Shirley McAlary attending by video conference Councillor -at -Large Gary Sullivan by attending video conference Councillor Ward 1 Blake Armstrong attending by audio conference Councillor Ward 1 Greg Norton attending by video conference Councillor Ward 2 Sean Casey attending by video conference Councillor Ward 2 John MacKenzie attending by video conference Councillor Ward 3 David Hickey attending by video conference Councillor Ward 3 Donna Reardon attending by video conference Councillor Ward 4 David Merrithew attending by video conference Absent: Councillor Ward 4 Ray Strowbridge Also Present: City Manager J. Collin attending by video conference City Solicitor J. Nugent Q.C. attending by video conference Fire Chief K. Clifford attending by video conference Commissioner Finance K. Fudge attending by video conference Commissioner Growth & Community Development J. Hamilton attending by video conference Commissioner Transportation and Environment M. Hugenholtz attending by video conference Commissioner Saint John Water B. McGovern attending by video conference Common Clerk J. Taylor attending by video conference Deputy Common Clerk P. Anglin attending by video conference r51 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 To conform to the Government COVID-19 State of Emergency and Mandatory Order isolation requirements, City Hall is closed to the public. Council Members and senior staff participated by video / audio conference. The City Manager conducted roll call of the Council Members to determine quorum; Councillor Strowbridge was the only Council Member absent from the meeting. The Common Clerk and the City Solicitor were also duly noted in attendance. The City Manager advised that to ensure access to the public and transparency of the meeting, livestreaming on the City's YouTube feed is being monitored for disruptions. The City's live stream of the meeting was checked and confirmed to be functioning. Rogers TV also provided live streaming of the Council meeting. 1. Call to Order 2. Approval of Minutes 2.1 Minutes of March 23, 2020 Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the minutes of the meeting of Common Council held on March 23, 2020, be approved. IL 10000►[4L1:k]k1111a 3. Approval of Agenda Moved by Councillor Sullivan, seconded by Councillor Hickey: RESOLVED that the agenda of this meeting be approved with the addition of items: 17.1 City Market and COVID-19 Impacts 17.2 Reversing Falls Rent Abatement Request 17.3 Discover SJ Amending Agreement MOTION CARRIED. 4. Disclosures of Conflict of Interest S. Consent Agenda 5.1 That as recommended by the City Manager in the submitted report M&C 2020- 06: Contract No. 2019-06: Germain Street (St. James Street to Queen Street) — Storm Sewer Installation, Common Council approve that the contract be awarded to the low Tenderer, Galbraith Construction Ltd., at the tendered price of $ 197,577.48 (including 2 E:3 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 HST) as calculated based upon estimated quantities, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. 5.2 That as recommended by the City Manager in the submitted report M&C 2020- 91: Acadian Games MOU Amendment, Common Council approve the recommendation to postpone the Acadian Games until 2021 and authorize the Mayor and Common Clerk to sign the amended Memorandum of Understanding attached to M&C 2020-91 relating to the postponement. 5.3 That as recommended by the City Manager in the submitted report M&C 2020- 93: City of Saint John FCM Federation of Canadian Municipalities (FCM) Sustainable Communities Awards, Common Council approve the applications for the following FCM 2020 Sustainable Communities Award categories: Climate Change; Asset Management; and Visionary awards; and authorize the Mayor to sign the letter of support to accompany these applications on behalf of Council. 5.4 That as recommended by the City Manager in the submitted report M&C 2020- 81: Contract 2020-08: Gault Road Water Main Extension, Common Council approve that the contract be awarded to the low Tenderer, Galbraith Construction Ltd., at the tendered price of $677,773.49 (including HST) as calculated based upon estimated quantities, and further authorize the Mayor and Common Clerk to execute the necessary contract documents. 5.5 That as recommended by the City Manager in the submitted report M&C 2020- 87: Microsoft Business and Services Agreement — Annual Update, Common Council approve the contract and authorize the Mayor and Common Clerk to execute the necessary documents to complete the annual Enterprise Update Statement process for Year 3 in accordance with the terms of the Microsoft Business and Services Agreement signed on May 15, 2017 in M&C No. 2017-129. 5.6 That as recommended by the City Manager in the submitted report M&C 2020- 96: Establishment of a Supply Agreement for VMware Products, Common Council authorize staff to leverage the Province of New Brunswick's vendor supply agreement with Onx for VMware licensing and product support for a period of three (3) years, with three (3) one (1) year optional renewal periods, exercising the City's right under the Public Procurement Act of the Province of New Brunswick; and authorize the Mayor and Common Clerk to execute the required contract documents. 5.7 That as recommended by the City Manager in the submitted report M&C 2020- 94: Contract 2019-14: Water Main Cleaning & Lining - Phase 16, Common Council approve that the contract not be awarded to the Tenderer, Trenchless Solutions Inc., at their tendered price of $1,413,551.25 (including HST) as calculated based upon estimated quantities. 3 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 Moved by Deputy Mayor McAlary, seconded by Councillor Armstrong: RESOLVED that the recommendation set out in each consent agenda item respectively be adopted. IL IQIII [Q0114Y1:k]k]1II9XII0F_1011LTA 100ollWA 6. Members Comments Council members commented on various community events. 7. Proclamations 7.1 National Public Safety Telecom municators Week - April 12 to April 18, 2020 The Mayor declared April 12 to April 18, 2020 as National Public Safety Telecom municators Week in the City of Saint John. 8. Delegations/Presentations 8.1 Saint John Transit Commission: (COVID-19 Response) Plan of Action Referring to the submitted report entitled Saint John Transit Commission: (COVID-19 Response) Plan of Action Interim CEO M. Dionne and Chair Patricia Ellsworth discussed the SJ Transit mandate during the pandemic to provide an essential service. The Transit Commission is adhering to the direction of the Chief Medical Officer. To ensure employee safety Personal Protective Equipment (PPE), suspension of fares, and a protocol for riders to enter by the back of the bus have been introduced. A 6 foot Plexiglas barrier between the driver and the passengers is being constructed in-house. There will be reintroduction of passenger fares when driver's safety shield is installed. An enhanced cleaning policy and pandemic capacity policy to restrict 7-9 passengers per run have been implemented. Financial projections reflect a negative cash flow by May. To minimize an overall system impact the Commission recommends a 20% reduction in service areas. Employee layoffs were discussed. The City provides a $6 million subsidy to Saint John Transit Commission. The City Manager commented on the City's $6M subsidy to SJ Transit in a normal year. Due to COVID-19, measures are being implemented to follow the directives of the Chief Health Officer, from PPE to ensure employee and public safety and requirements for physical distancing. The City supports the Saint John Transit Commission recommendations to minimize impacts to revenue by reducing service levels. A reduction in the service level is required immediately to continue to provide a service without the City incurring the projected millions in deficit. The Federal / Provincial governments are sympathetic to the public transportation networks in Canada and the Provinces. Some funding may be forthcoming. The Federation of Canadian CI iK COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 Municipalities (FCM) and the Canadian Urban Transit Association (CUTA) are lobbying the Federal, Provincial and Territorial governments for funding support. Responding to question, the Commissioner of Finance stated he is working closely with the Transit Commission on the financial projections. The City is obligated to pay any debts of SJ Transit. Moved by Councillor Reardon, seconded by Councillor Hickey: RESOLVED that Saint John Transit Commission: Plan of Action be received for information. MOTION CARRIED. Moved by Councillor Reardon, seconded by Deputy Mayor McAlary: Whereas the City of Saint John and the Saint John Transit Commission are challenged by the COVID-19 pandemic to provide a public transit service to essential workers and our most vulnerable citizens; And Whereas the City of Saint John supports the efforts of the Canadian Urban Transit Association (CUTA) to contact federal, provincial and territorial governments to raise awareness of the transit industry's plight to ensure we gain access to the funding support we need to keep this vital service running for the community; RESOLVED that the Mayor send a letter to the Premier requesting that the Province provide support to transit systems that have lost fare revenues and face drastic financial challenges due to the impacts of the COVID-19 pandemic. IL [00]►[GL1ilk] ilk] 11193 9. Public Hearings 6:30 PM 10. Consideration of Bylaws 10.1 Reaffirmation of Council Resolutions from March 23, 2020 The City Manager explained the reason for the report being submitted. The March 30th meeting commenced as an Emergency session meeting due to COVID-19. The Emergency meeting did not adjourn and regular business was discussed. The Emergency meeting was convened to deal with Council Members participating remotely to conform to the COVID-19 isolation directive. Therefore, we are reaffirming the motions that may be challenged in the Emergency Meeting. The Common Clerk introduced each of the recommendations. 1:1 11 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that as recommended by the City Manager in the submitted report M&C 2020-95: Meeting of March 23, 2020 — Procedural Matters, Common Council adopt the following: Recommendation No. 1: RESOLVED that as recommended by the City Manager in the submitted report M&C 2020-79: Contract 2019-13: West Saint John Water Supply — Orthophosphate System, the contract be awarded to the low Tenderer, G.J. Cahill & Company (1979) Ltd., at the tendered price of $246,100.00 (including HST) as calculated based upon estimated quantities; and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. IL [000011GL1:k]k]11191 Moved by Councillor Reardon, seconded by Deputy Mayor McAlary: RESOLVED that as recommended by the City Manager in the submitted report M&C 2020-95: Meeting of March 23, 2020 — Procedural Matters, Common Council adopt the following: Recommendation No. 2: RESOLVED that as recommended by the City Manager in the submitted report M&C 2020-83: Initiate Stop -Up and Closure and Subsequent Sale for Portion of Fairville Boulevard, Common Council approve the following: 1. That the Public Hearing to consider the passing of a By-law to Close a 476 square metre portion of a public street known as Fairville Boulevard, as shown on the submitted Survey Plan, be set for Monday, June 8, 2020 at 6:30 p.m. in the Council Chamber. 2. That Common Council authorize the publishing of a notice of its intention to consider passing of such By-law identified above; and 3. In the event that Common Council gives Third Reading to Amending a Bylaw as stated above, that Council approve the sale of the subject property to SBLP Harding Street Property Inc. for $1.00, subject to the reservation of any municipal or public utility easements required and further, that the Mayor and Common Clerk be authorized to execute any document to effect the transfer. MOTION CARRIED. Moved by Deputy Mayor McAlary, seconded by Councillor Reardon: RESOLVED that as recommended by the City Manager in the submitted report M&C 2020-95: Meeting of March 23, 2020 — Procedural Matters, Common Council adopt the following: Recommendation No. 3: rd 12 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 RESOLVED that the by-law entitled, "By -Law Number C.P. 111-89 A Law to Amend the Zoning By -Law of The City of Saint John" amending Schedule "A", the Zoning Map of The City of Saint John, by re -zoning a parcel of land having an area of approximately 995.1 hectares, located at 399 Burchill Road, also identified as being a portion of PID Number 00412189, from Heavy Industrial (IH), Pit and Quarry (PQ), Rural (RU), and Medium Industrial (IM) to Green Energy (GE); and rezoning a parcel of land having an area of approximately 2.5 hectares, located at 399 Burchill Road, also identified as being a portion of PID Number 00412189, from Pit and Quarry (PQ) and Rural (RU) to Special Zone 5 (SZ -5), be read in its entirety. MOTION CARRIED. The by-law entitled "By -Law Number C.P. 111-89 A Law to Amend the Zoning By -Law of The City of Saint John" was read in its entirety. Moved by Deputy Mayor McAlary, seconded by Councillor MacKenzie: RESOLVED that as recommended by the City Manager in the submitted report M&C 2020-95: Meeting of March 23, 2020 — Procedural Matters, Common Council adopt the following: Recommendation No. 4: RESOLVED that the by-law entitled, "By -Law Number C.P. 111-89 A Law to Amend the Zoning By -Law of The City of Saint John" amending Schedule "A", the Zoning Map of The City of Saint John, by re -zoning a parcel of land having an area of approximately 995.1 hectares, located at 399 Burchill Road, also identified as being a portion of PID Number 00412189, from Heavy Industrial (IH), Pit and Quarry (PQ), Rural (RU), and Medium Industrial (IM) to Green Energy (GE); and rezoning a parcel of land having an area of approximately 2.5 hectares, located at 399 Burchill Road, also identified as being a portion of PID Number 00412189, from Pit and Quarry (PQ) and Rural (RU) to Special Zone 5 (SZ -5), be read a third time, enacted, and the Corporate Common Seal affixed thereto. MOTION CARRIED. Read a third time by title, the by-law entitled "By -Law Number C.P. 111-89 A Law to Amend the Zoning By -Law of The City of Saint John." Moved by Deputy Mayor McAlary, seconded by Councillor Reardon: RESOLVED that as recommended by the City Manager in the submitted report M&C 2020-95: Meeting of March 23, 2020 — Procedural Matters, Common Council adopt the following: Recommendation No. 5: RESOLVED that as recommended by the Committee of the Whole having met on March 23, 2020 Common Council adopt the following: That the City of Saint John amend section 2.2(b) of the Option Agreement between the City and Fundy Quay Developments Inc. to replace "within (3) months of their execution VA 13 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 of this agreement" with "on or before May 29, 2020", and that the Mayor and Common Clerk be authorized to execute an amending agreement in this respect. MOTION CARRIED. Moved by Councillor Reardon, seconded by Deputy Mayor McAlary: RESOLVED that as recommended by the City Manager in the submitted report M&C 2020-95: Meeting of March 23, 2020 — Procedural Matters, Common Council adopt the following: Recommendation No. 6: RESOLVED that as recommended by the Committee of the Whole having met on March 23, 2020, Common Council adopt the following: 1. That the City commence formal legal proceedings in the New Brunswick Court of Queen's Bench against BGC Engineering Inc., Matt Alexander of Fundy Engineering and Ken Howard, and further; 2. That the July 8th, 2019 resolution of Council pertaining to Torys' retainer for legal services required in relation to the West Wells as amended on December 16, 2019, be further amended as follows to reflect the legal costs associated with pursuing formal legal proceedings in the Court of Queen's Bench: a. The words "not to exceed $365,000.00 plus HST and disbursements" are deleted and replaced with "not to exceed $765,000 plus HST and disbursements." IL 100000MGM :k]k1111a 11. Submissions by Council Members 12. Business Matters - Municipal Officers 12.1 Sustainability Update (Verbal) The City Manager advised that the City is not in a sufficient steady state to present the solution to the City Sustainability. A postponement to April 20th was recommended. Moved by Councillor Sullivan, seconded by Deputy Mayor McAlary: RESOLVED that the Sustainability verbal update be received for information. MOTION CARRIED. 12.2 Emergency Operations Centre - COVID-19 Update Deputy Incident Commander - Rob Nichol provided the second update to Council from the EOC. The Command and General staff each gave a brief update from their respective areas to give a sense of how their role is helping the community respond to this crisis. 8 14 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 Since the last update the Saint John EMO has remained at partial activation in response to the COVID-19 pandemic. Current numbers show over 1.3 million cases globally, nearly 16,000 cases in Canada, 103 cases in New Brunswick, and 23 in the Saint John region. NB has 7 hospitalizations (3 in ICU). The only certainty is that our normal is constantly changing as the situation develops and the City of Saint John is adapting as required. The City continues to follow the directives of the Department of Health and the Chief Medical Officer of Health, Dr. Russell, as we navigate the COVID-19 pandemic. Planning Section Chief - Peter Ehler; Liaison Officer — Josh Hennessey; Public Information Officer - Lisa Caissie; EMO Operations Section Chief Stephanie Hossack; Logistics Section — Dan LeBlanc; and Financial / Administrative Section - Jeanne Chown and Deputy Chief Mike Carr provided updates on their sections. Deputy Chief Carr also provided an update on the spring freshet (NB River Watch). The EMO Director, Fire Chief Kevin Clifford, stated we have just begun the fourth week of our formal response to COVID-19. The measures that our Nation, our Province, and this Municipality have taken are absolutely necessary and give the path for the best possible outcome to this crisis. The City Manager reinforced that the Province has declared a State of Emergency with a Mandatory Order, directing all residents to follow physical distancing and hygiene measures. The Order is being enforced. A written report entitled Saint John EMO COVID-19 Report to Common Council April 61n 2020 was submitted following the presentation and has been included in the Common Council Agenda Packet. Responding to question, the City Manager stated that the Regional Medical Authority will produce additional assessment centres as the demand requires. Responding to the question, "Does the RHA provide transportation for individuals to access the assessment centres? The City Manager replied, "No, they do not. There is a gap Moved by Deputy Mayor McAlary, seconded by Councillor Hickey: RESOLVED that the Emergency Operations Centre - COVID-19 Update be received for information. IL [000011GL1:k]k]11191 12.3 Preliminary Financial Update - COVID-19 The City Manager advised that businesses and families are profoundly impacted financially by COVID-19. The City is also impacted. Tonight's financial update is 01 15 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 preliminary. An exhaustive financial analysis will be provided in due course with the recommendations necessary for Common Council's consideration. The Commissioner of Finance commented on the unprecedented economic conditions being experienced in Canada and globally. The COVID-19 health crisis has caused a world-wide financial crisis. The City has a fiduciary duty to protect taxpayer funds and exercise cost control to mitigate the financial impacts of COVID-19. All City Departments and ABCs were required to submit by April 5t" their financial risk assessment forecasts and cost control and risk mitigation strategy. Revenues at high risk and low risk were outlined. The City budgeted $14.3 million, 9% of its total revenue for 2020 from high risk areas. The City could be exposed to as much as $1 million to $1.4 million per month in losses from lost transit fares, hotel room levies, and parking revenue. Financial risk mitigation measures include closures of regional facilities with workforce adjustments, hiring freeze, casual worker layoffs, and halting discretionary spending. Long term risks greater than one year include municipal tax base erosion, business closures, loss of jobs, reassessment of property unconditional grant, increase in prices of goods and services due to supply chain issues. Federal and Provincial stimulus packages were outlined. The Finance Department will present the Financial Risk Assessment to the Finance Committee on April 151" Moved by Deputy Mayor McAlary, seconded by Councillor Merrithew: RESOLVED that the Preliminary Financial Update — COVID-19 be received for information. MOTION CARRIED. 13. Committee Reports 14. Consideration of Issues Separated from Consent Agenda 15. General Correspondence 15.1 P. Groody: Focus and Responsible Behaviour in Times of Crisis Moved by Deputy Mayor McAlary, seconded by Councillor Hickey: RESOLVED that the P. Groody letter regarding Focus and Responsible Behaviour in Times of Crisis be received for information. 10 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 MOTION CARRIED. 16. Supplemental Agenda 17. Committee of the Whole 17.1 City Market and COVID-19 Impacts Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that as recommended by the Committee of the Whole having considered the submitted report entitled M&C 2020-98: City Market and COVID-19 Impacts, Common Council authorize staff to offer City Market tenants a rent deferral program due to financial hardship from COVID-19. Tenants who require this assistance will be able to defer rent interest free with a payment plan over the final six months of 2020. Motion CARRIED. 17.2 Reversing Falls Rent Abatement Request Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that as recommended by the Committee of the Whole having considered the submitted report entitled M&C 2020-100: Request from Reversing Falls Skywalk Inc., that Common Council deny the request from Reversing Falls Skywalk Inc. and that Council authorize staff to offer tenants of the City a rent deferral program due to financial hardship from COVID-19. The offer would allow tenants who are affected to defer rent, interest free, with a payment plan over the final six months of 2020. IL [00]►MGM ilk] ilk] 11193 17.3 Discover SJ Amending Agreement Moved by Deputy Mayor McAlary, seconded by Councillor Norton: RESOLVED that as recommended by the Committee of the Whole having considered the submitted report M&C 2020-97: Amendments to Discover Saint John 2020 Contract, Common Council approve that the City of Saint John enter into the Amending Agreement in the form as attached to the report, with Saint John Destination Marketing Inc., and that the Mayor and Common Clerk be authorized to execute said Amending Agreement. IL 100000114Y1ilk] ilk] I1191 18. Adjournment Moved by Councillor Sullivan, seconded by Councillor Hickey: 11 17 COMMON COUNCIL/ CONSEIL COMMUNAL April 6, 2020 / le 6 avril 2020 RESOLVED that the meeting of Common Council held on April 6, 2020 be adjourned. MOTION CARRIED. The Mayor declared the meeting adjourned at 8:32 p.m. 12 iF:3 COUNCIL REPORT M&C No. 2020-105 Report Date April 14, 2020 Meeting Date April 20, 2020 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: 2020 Asphalt Pavements Work OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadCity Manager Rod Mahaney Michael Hugenholtz / Brian Keenan John Collin RECOMMENDATION It is recommended that this report be received and filed. EXECUTIVE SUMMARY Asphalt maintenance, surface repairs and new road construction are primary concerns of citizens and a priority of Common Council. This report updates Council on asphalt pavements work and associated funding allocated for Saint John roadways in 2020. PREVIOUS RESOLUTION December 4, 2019; 2020 Water & Sewerage Utility Fund Operating Program Approved. August 19, 2019; 2020 General Fund Capital Program Approved. December 16, 2019; 2020 General Fund Operating Program Approved. -2 - STRATEGIC ALIGNMENT This report aligns with Council's Priority for Valued Service Delivery, specifically as it relates to investing in sustainable City services and municipal infrastructure. REPORT The following funding allocations have been provided for maintenance and resurfacing of asphalt pavements under the General Fund Capital and Operating budgets, and under the Water and Sewerage Operating budget for utility cut reinstatements: Asphalt Material (General Fund) $ 750,000 Asphalt Resurfacing (General Fund) $ 2,265,000 Asphalt Resurfacing (Capital Fund) $ 4,125,000 Utility Cut Reinstatements (W&S Fund) $ 880,000 Saint John Water has a requirement for the reinstatement of over 160 utility cuts resulting from water and/or sewer repairs undertaken during the past winter season with an overall average of 400 utility cuts requiring reinstatement each year. This is a planned expenditure with the funding for utility cut reinstatements included above. In 2020 the utility cut reinstatements will be carried out by Transportation & Environment Services crews on behalf of SJ Water. In addition, substantial internal resources (personnel and equipment) are programmed in the General Fund for the in-house asphalt maintenance and repairs. Longer-term preventative maintenance is multi -faceted and includes resurfacing, crack sealing, and some local area patching; all with the goal of extending service life of roadways. Resurfacing using contractor resources is planned for 38 street sections (52.62 lane kilometers) as shown in Appendix A. Notable in relation to this work are the adjustment of over 735 roadway structures (e.g. catch basins, manholes) in conjunction with the actual asphalt resurfacing. The $4,125,000 of funding under the Capital Program that has been provided includes provision for the replacement of existing curb and sidewalk in conjunction with the Asphalt Resurfacing Program on a number of street sections as identified in Appendix A. Existing curb and sidewalk will be replaced on sections of Aberdeen Avenue, Bonita Avenue, Magazine Street, Sylvia Drive, Ian Street and Rocky Terrace among others. Hot mix asphalt material is generally not available until late April each year. There are currently 144 Lane Kilometres of streets that are in the Reconstruction Category. General maintenance and repair work by City forces is planned for some of these street sections in 2020 but eventually these 144 Lane Kilometres of streets will need to undergo a full Reconstruction. Q91 -3 - Under the General Fund Capital Program, the following streets will be given new asphalt surfaces through reconstruction in 2020: • Celebration Street (Stanley Street to Dead End) • Waterloo Street (Haymarket Square to Castle Street) Pavement Condition Index (PCI) The City utilizes MicroPAVERT", a statistical measure that requires a visual inspection process to evaluate and rate pavement condition. The PCI is a numerical index between 0 and 100. The resulting composite PCI summarizes the structural integrity and surface condition of each street section and predicts future maintenance and rehabilitation needs. Deterioration Curve Asphalt Pavements * $1OO FOR E1 RREHAEMILIATION p� HERE N SIGNIFICANT DROP VER POOR IN CONDITION _ WILL COST wC $400 .00 0 TO . SMALL % OF PAVEMENT LIFE r The overall average PCI at the end of construction season in 2019 for City of Saint John streets was about 77. Based on funding allocated for 2020, the overall average PCI is projected to remain at about 77. SERVICE AND FINANCIAL OUTCOMES Asphalt pavements, and concrete curb and sidewalks are essential infrastructure which directly impacts the quality of life in our community. Roadway infrastructure is important to the economic health of the community and citizens expect these assets to be maintained to an acceptable standard. Proper and timely maintenance of all roadway assets will ensure public safety, extend service life of the asset, and achieve best value for the investment. 21 -4 - INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS APPENDIX -'A' Asphalt Resurfacing Street List for 2020 WA CONTRACT NO. 2020 - 17 Street Limits Lane Klms Curb Sidewalk From To Area Patching Various Streets Aberdeen Avenue Lucas Street Fay Street 1.08 Yes Yes Bonita Avenue Michael Crescent Mark Drive 1.33 Yes Yes Champlain Drive Grandview Avenue Old Champlain Drive 5.55 0 Champlain Street Duke Street Wset Charlotte Street West 0.93 0 Clovelly Drive 0.00 Yes Duchess Street Buena Vista Avenue Fundy Drive 0.32 Yes Eden Street Ocean Drive Dead End 0.61 Yes Yes Edith Avenue Bayside Drive Beacon Street 1.54 Ellerdale Street Valley Street Civic # 506 0.00 Yes Yes Fairville Boulevard Kierstead Road O'Brien Street 0.28 Fay Street Ocean Drive Aberdeen Avenue 3.79 Yes Yes First Avenue Dead End Dead End 0.52 Yes Yes First Street West Manawagonish Road First Avenue 0.22 Yes Yes Foley Court Loch Lomond Road Civic # 34 0.38 Yes Yes Forest City Street Mount Pleasant Avenue East Spruce Avenue 0.31 0 Graham Street Jean Street Courtenay Avenue 1.17 Yes Harbourview Drive Ocean Drive Eden Street 1.49 Yes Yes Ian Street Champlain Drive Dead End 0.91 Yes Yes Leaward Lane Cedarwood Drive Rivershore Drive 0.64 Loch Lomond Road (1) Javin Hill Gibbon Avenue 2.70 Loch Lomond Road (2) McNamara Drive Bon Accord Drive 1.83 Magazine Street Metcalf Street Civic # 55 2.70 Yes Yes Manawagonish Road O'Brien Street Church Avenue 1.54 Mount Pleasant Avenue East Bayside Drive Pleasant City Street 2.19 0 Mountain Road Westmorland Road Mountain View Drive 0.60 0 Ocean Westway King William Road Manawagonish Road 6.91 Pottery Court Foley Court Dead End 0.15 Yes Rocky Terrace Mount Pleasant Avenue Gooderich Street 0.72 Yes Yes Scotiaview Drive Manawagonish Road Manchester Avenue 1.59 Somerset Street (1) Civic # 560 Millidge Avenue 4.57 Somerset Street (2) Barker Street Wellesley Avenue 0.96 Stillview Court Harbourview Drive Dead End 0.15 Yes Sylvia Drive Ian Street Fowler Drive 0.68 Yes Yes Thomas Avenue Buenna Vista Avenue Fundy Drive 0.34 Yes Thorne Avenue Rothesay Avenue Superstore Entrance 1.80 0 Tilton Avenue Havelock Street Young Street 0.42 University Avenue (Westbound Sandy Point Road Varsity Street 0.99 Woodville Road Chapel Street Lancaster Street 0.74 52.62 PAI COUNCIL REPORT M&C No. 2020-101 Report Date April 14, 2020 Meeting Date April 20, 2020 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT. Contract No. 2020-17 Asphalt Resurfacing 2020 OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Rod Mahaney Michael Hugenholtz/Brian Keenan John Collin RECOMMENDATION It is recommended that Contract No. 2020-17: Asphalt Resurfacing 2020 be awarded to the low Tenderer, Classic Construction (2012) Ltd., at the tendered price of $6,071,902.25 (including HST) as calculated based upon estimated quantities, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. EXECUTIVE SUMMARY The purpose of this report is to recommend that Council award Contract 2020- 17: Asphalt Resurfacing 2020 to the low Tenderer. PREVIOUS RESOLUTION December 4, 2019; 2020 Water & Sewerage Utility Fund Operating Program Approved. August 19, 2019; 2020 General Fund Capital Program Approved. December 16, 2019; 2020 General Fund Operating Program Approved. STRATEGIC ALIGNMENT This report aligns with Council's Priority for Valued Service Delivery, specifically as it relates to investing in sustainable City services and municipal infrastructure. 0&1 -2 - REPORT BACKGROUND The 2020 General Fund Operating Budget for Transportation and Environment Services and the 2020 General Fund Transportation Capital Program include provisions for the resurfacing of a number of streets in the City. This is an annual program to upgrade and maintain deteriorating street surfaces under the maintenance and capital resurfacing programs. This contract includes all work associated with the resurfacing of a total of 38 streets or segments of streets. This work consists generally of the supply of all necessary labour, materials and equipment for the placement of approximately 25,510 tonnes of Superpave hot -mix asphalt. Also included in this contract is the installation of approximately 9,922 lineal meters of concrete curb and 5,558 lineal meters of 1.5 meter sidewalk. TENDER RESULTS Tenders closed on April 7, 2020 with the following results, including HST: 1. Classic Construction (2012) Ltd., Saint John, NB $6,071,902.25 2. NRB Construction Company Ltd., Saint John, NB $6,260,982.95 3. Galbraith Construction Ltd., Saint John, NB $6,433,902.99 4. Debly Enterprises Ltd., Saint John, NB $8,268,819.70 The Engineer's estimate for the work was $7,305,600 including HST. ANALYSIS The tenders were reviewed by staff and were found to be formal in all respects. The tender from Debly Enterprises Ltd. contained a minor error in mathematics that required correction in accordance with specification article 2.11 u) (i). Staff is of the opinion that the low tenderer has the necessary resources and expertise to perform the work, and recommend acceptance of their tender. The asphalt production and placement processes will be closely monitored to ensure conformance with project specifications. Work is expected to begin the first week of May and continue until October 15, 2020. OR -3 - FINANCIAL IMPLICATIONS The Contract includes work that is charged against various Operating and Capital Budgets. Assuming award of the Contract to the low tenderer, an analysis has been completed which includes the estimated amount of work that will be performed by the Contractor and Others. The analysis is as follows: Budget $ 6,970,100 Project net cost $ 5,856,200 Variance (Surplus) $ 1,113,900 The section of the approved Capital Budget Policy respecting surpluses has been included under the Input From Other Service Areas section of this report. Staff will monitor the progress of this construction contract and report back to council at a later date in accordance with the Capital Budget Policy with regard to utilizing the surplus budget or portion thereof. POLICY—TENDERING OF CONSTRUCTION CONTRACTS The recommendation in this report is made in accordance with the provisions of Council's policy for the tendering of construction contracts, the City's General Specifications and the specific project specifications. SERVICE AND FINANCIAL OUTCOMES Asphalt pavements, and concrete curb and sidewalks are essential infrastructure which directly impacts the quality of life in our community. Roadway infrastructure is important to the economic health of the community and citizens expect these assets to be maintained to an acceptable standard. Proper and timely maintenance of all roadway assets will ensure public safety, extend service life of the asset, and achieve best value for the investment. This project will be completed within the original approved financial budget. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Capital Budget Policy FAS -005 prepared by Finance and Administration Services and adopted by council is as follows: 9.2 Capital Budget Surpluses, where budgeted Capital funds exceed actual capital expenditures shall be, with Council approval: 9.2.1 Realized as savings resulting in reduced debt financing; 9.2.2 Used to offset deficits in other approved Capital Budget shortfalls; 9.2.3 Leveraged to address the infrastructure deficit so long as the project is part of the Asset Management Plan and 10 Year Capital Investment Plan; 41.1 ATTACHMENTS N/a AXI -4 - COUNCIL REPORT M&C No. 2020-107 Report Date April 14, 2020 Meeting Date April 20, 2020 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Tender for Asphaltic Concrete Mixes OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Amy Dobson Michael Hugenholtz John Collin RECOMMENDATION It is recommended that the seasonal tender for the supply of asphaltic concrete mixes be awarded as follow: • Pre Construction Season (start of plant til May 3, 2020) - Galbraith Construction Ltd. • Construction Season (May 4 to November 6, 2020) - Debly Enterprises Ltd. • Post Construction Season (November 7, 2020 to plant close) - Debly Enterprises Ltd. EXECUTIVE SUMMARY Every year the City of Saint John issues a tender for the supply of asphaltic concrete mixes to secure a source of asphalt for its various roadway maintenance initiatives. The tender closed on April 7th, with three bids meeting the City's requirements. The bid received from Galbraith Construction had the earliest opening date before construction season and Debly Enterprises had the lowest bids for the construction season and after construction season. PREVIOUS RESOLUTION This is an annual program. REPORT Each year the City of Saint John tenders for the establishment of a supply agreement for the provision of asphaltic concrete mixes to guarantee a supply of asphalt. This product is used by Transportation and Environment Services for a variety of tasks, including asphalt restoration of water cuts, roadway and sidewalk repairs, roadway overlays, and miscellaneous maintenance projects. la -11 -2 - There are traditionally three seasons for asphalt: the normal construction season when production is high and product is readily available; and the pre and post -construction seasons, when production is low and higher costs are incurred to produce the product. Bidders are asked to quote a price for the pre -season, another price for the construction season, and a third price for the post -season. In this instance, we recommend the earliest opening date for pre -construction season and the bidder with the lowest bid for the reamainder "seasons". MTO Performance Graded Asphalt Cement Price Index In 2009, the City of Saint John adopted the use of the Ontario Ministry of Transportation performance grade asphalt cement price index in all its asphalt related tenders. In summary, an end of season adjustment is made for each monthly change in the MTO Price Index and applied to the asphalt at time of purchase, with the Tender Opening date being the base month. Adjustments are only made if month over month price fluctuation is greater than 5%. The formula is: PA = Payment adjustment for asphaltic cement in dollars T = Posted MTO Price Index for the month of tender opening P = Posted MTO Price Index for the month the asphalt was purchased Q= Quantity of asphaltic cement in tonnes When P > 1.05 T, the Contractor receives additional payment as follows: PA = (P — 1.05T) x Q. When P < 0.95 T, the City receives a credit as follows: PA = (0.95T — P) x Q. STRATEGIC ALIGNMENT The asphaltic concrete mixes procured through this award are used in various roadway surface maintenance programs such as: the Saint John Water cut reinstatement program, patch work, and the overlay program; all of which align with the Council's goal of investing in strategic road improvements. SERVICE AND FINANCIAL OUTCOMES The total estimated value of the 2020 supply contract is approximately $1 million for all of Transportation and Environment Services' roadway maintenance programs (being $675,000 +/- for the patch work, roadway and sidewalk maintenance, and the overlay programs; and $325,000 +/- for the Saint John Water cut reinstatement program). The purchase of asphaltic concrete mixes is a planned expenditure and funds to cover the programs are included in the 2020 Operating Budget (over multiple service budget lines). It should be noted that during this period of 'essential services' as a result of the Covid-19 pandemic only emergency public works is taking place, including the patching of potholes. The asphalt overlay program is on hold pending the lifting of the restrictions following the mandatory order by the Province. This will have an impact on Wel the quantity of asphalt we will use this year. The supply agreement does not require us to purchase any minimum amounts so there is no risk to the City. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS A public tender call was issued on March 10, 2020 and closed on Tuesday, April 7th, 2020 with three compliant bids received. The results of the tender (excluding HST and haulage rates) are: Staff of Materials Management and Transportation & Environment Services have reviewed the tenders and have found them to be complete and formal in every regard. Staff believe that all tenderers have the necessary resources and expertise to perform the work. Due to the fact that the low bidder in the "Before Season" (Debly) does not open their plant until the Construction season begins, the "Before Season" will be awarded to Galbraith. With the exception mentioned above, all items are being awarded to the lowest bidder. The above process is in accordance with the City's Procurement Policy and Materials Management support the recommendation being put forth. ATTACHMENTS No attachments a@] GALBRlUTH NRB CONSTRUCTION DEBLY ENTERPRISES +iCC7Ns'TRuc ION LTD. C,011%IIPA.NY LTD. LTD. Before Const. After Before Const. After Before Const. After Season Season Season Season Season Season Season Season Season Start elate May 04— Nov. 07 Start elate May 04 Nov. 07 Start elate May 4- Nov. 07 til. May 03 Nov 06 tij Close tjl May 03 — Nov 06 tjl Close tij May 03 Nov.6 til. Close 1 SUPERPAVE 19 5mm ,'TONNE $ 87.00 $ 75.00 $ 82..00 $ 87.00 $ 69.00 $ 83.00 $63.75 $63.75 $63.75 f.3 to <3 million ESALS 2 SUPERPAVE 9.5mm1TONNE $ 90.00 $76.50 $ 85.00 $ 92..00 $73.88 $ 89.00 $ 68.75 $ 68.75 $ 68.75 (.3 to <3 million ESALS) 3 SUPERPAVE 4.75mmJ NNE $ 12.0.00 $ 100.00 $115.00 $ 1105.00 $ 87.00 $100.00 $ 72.00 $ 72.00 $ 72.00 f.3 to <3 million ESALS) OPENING DATE April 22 , 2,020 April 27, 2,020 May 4, 2020 CLOSING DATE November 30 , 21020 November 27„ 2020. December 4„ 20210 Staff of Materials Management and Transportation & Environment Services have reviewed the tenders and have found them to be complete and formal in every regard. Staff believe that all tenderers have the necessary resources and expertise to perform the work. Due to the fact that the low bidder in the "Before Season" (Debly) does not open their plant until the Construction season begins, the "Before Season" will be awarded to Galbraith. With the exception mentioned above, all items are being awarded to the lowest bidder. The above process is in accordance with the City's Procurement Policy and Materials Management support the recommendation being put forth. ATTACHMENTS No attachments a@] COUNCIL REPORT M&C No. 2020-102 Report Date April 09, 2020 Meeting Date April 20, 2020 Service Area Corporate Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Real Property Attribute Information Distribution 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 Yves Leger Stephanie Rackley -Roach John Collin RECOMMENDATION RESOLVED That the City enter into a Real Property Attribute Information Distribution Agreement with Service New Brunswick for the right to use property attribute information as described therein in the form attached to M&C No. 2020-102; and that the Mayor and Common Clerk be authorized to execute the necessary contract documents. EXECUTIVE SUMMARY The purpose of this report is to seek Council's approval to enter into an interim agreement with Service New Brunswick in order to keep receiving monthly property information updates until May 31, 2020. PREVIOUS RESOLUTION None. REPORT The City and Service New Brunswick had a data exchange agreement in place in which the City provided SNB with civic addressing data in return for monthly property information updates. This agreement had been in place for a number of years and although it had expired a few years ago, the data exchange continued until January of this year. At that time, Service New Brunswick initiated discussions to put a new agreement in place. While a new finalized agreement has not yet been completed, because property information is crucial to many City operations, Staff requested that monthly property information 31 -2 - updates continue in the interim. As such SNB has proposed the interim agreement (attached) which will provide the City with updated property information until May 31, 2020. STRATEGIC ALIGNMENT Because up -to date property information is crucial for many City operations, signing this interim agreement aligns with Council's Priority for Growth & Prosperity and Valued Service Delivery. SERVICE AND FINANCIAL OUTCOMES There is no cost associated with signing this interim agreement. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The City's Legal Department has reviewed the agreement, which appears to be a standard form used by Service New Brunswick, and have no concerns. ATTACHMENTS Real Property Attribute Information Distribution Agreement 0 w � ' Real Property Attribute Information Distribution Agreement 1. General 1.1 The user of the property attribute information is: Name: The City of Saint John Address: P. O. Box 1971, Saint John, NB, E2L 41_1 1.2 SNB will deliver to the user for no fee the real property attribute information as described below: Deliverables: Real property attribute information for active/inactive PIDs (.csv) Digital property mapping for active PIDs (.shp) or (.dxf) Property assessment attribute information for current PANs (.dbf) or (.txt) Extent: PLANET data: City of Saint John Graphics: Kings County Delivery: Secure (internal) e-mail service Frequency: Monthly Term: March 1. 2020 to Mav 31. 2020 Q months 1.3 Description of the use of the property attribute information: The data is used in a many aspects of rn uirniciipal Ibusiness, frorn bruiiilding pen niJt applUicatiains to planning, by-law enforcement, innunicipall services billing, f'oree prevention, police investigations, arnic�l others. The data is only access�iiible to, Coity staff and ccirrsultarnts hired by the City., we also proOdle pUib is access to data that Is, pw.lokly avaHa le, elsewlliere and does not pes,e any pr'lvacy ccince°inrs (e.&. RID, PAN, Assessed valllue) through our Open Data site. 091 2 2. Ownership 2.1 SERVICE NEW BRUNSWICK will retain sole ownership rights to the property attribute information. 2.2 The User shall have an unlimited, but not exclusive, right to use the property attribute information, and in the case of a corporation, this right shall not extend to affiliates of the User as defined in the Business Corporations Act., R.S.N.B. 1973 Chapter B91. 2.3 The User shall have an unlimited, but not exclusive, right to create value added products from the property attribute information. 2.4 Except for publishing PID, PAN and assessed value attributes through the Open Data website as identified in subsection 1.3, the User may not give, loan, lease, sell or otherwise make the property attribute information available to any other party in its original form without negotiating a licensing agreement with SERVICE NEW BRUNSWICK 2.5 Except for publishing PID, PAN and assessed value attributes through the Open Data website as identified in subsection 1.3, the User may not give, loan, lease, sell or otherwise make the property attribute information available as part of a value-added product without negotiating a licensing agreement with SERVICE NEW BRUNSWICK 2.6 The User shall not use the property attribute information for purposes other than those stated in sub section 1.3 without first having obtained the written approval of SERVICE NEW BRUNSWICK. 3. Limited Warranty 3.1 The property attribute information is licensed as is, if the media is defective the User may return it within 30 days of the date of delivery and SERVICE NEW BRUNSWICK shall replace it at no charge. 3.2 While the property attribution information may not be free from error or omission, care has been taken to ensure the best possible quality. 3.3 SERVICE NEW BRUNSWICK shall not be liable for any loss or damage of any kind including personal injury or death arising from the use of the property attribution information or accompanying written materials or from errors, deficiencies or faults therein, whether such damage is caused by negligence or otherwise. 4. Assignment 4.1 This agreement or any portion thereof shall not be assigned by the User without the prior written consent of SERVICE NEW BRUNSWICK 4.2 If the User undergoes a change in either ownership or organization, this agreement will become null and void. 5. Entire Agreement 5.1 This Agreement is the entire agreement between the parties and supersedes all previous agreements, arrangements, or understandings between the Parties hereto whether written or oral, in connection with or incidental to the property attribution information. 6. Time is of the essence 6.1 Time shall be of the essence of this Agreement 3 7. Interpretation 7.1 It is hereby agreed that where the context requires, words in the singular include the plural, and words in the plural include the singular and words imparting the masculine gender include the feminine and neuter genders. 8. Law of the Contract 8.1 This Agreement shall be governed by and construed in accordance with the laws of the Province of New Brunswick and the laws of Canada applicable in the Province of New Brunswick. The above conditions are agreed to: Signature Date Jonathan Taylor Common Clerk City of Saint John Signature Date Don Darling Mayor City of Saint John W COUNCIL REPORT M&C No. 2020-106 Report Date April 14, 2020 Meeting Date April 20, 2020 Service Area Corporate Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Long Distance and Teleconferencing Contract - Landlines OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Sarah Ranson Stephanie Rackley -Roach John Collin RECOMMENDATION The City Manager recommends that the Mayor and Common Clerk be authorized to execute the Amending Agreement 1 to Long Distance and Teleconferencing Services Schedule with Bell Aliant to extend the current agreement by one year for long distance and teleconferencing fees as listed in the original Services Schedule (both attached). EXECUTIVE SUMMARY The City's long distance and teleconference services contract expired on March 31, 2020. The Province of New Brunswick (PNB) has recently renewed their rates and they remain unchanged from their previous contract. The City can take advantage of the Provincal contract and extend our long distance and teleconference services contract at these rates for one year. This amended agreement provides savings for the City. If the attached amendement to the agreement is not adopted, the City will revert to the current market rate. PREVIOUS RESOLUTION March 26, 2018 — Item 5.9: That as recommended by the City Manager in the submitted report M&C 2018-79: Long Distance and Teleconferencing Contract — Landlines, the Mayor and Common Clerk be authorized to execute the Long Distance and Teleconference Service Schedule April 1, 2018 — March 31, 2020 agreement with Bell Aliant for long distance and teleconferencing fees as listed in the agreement attached to the report. 01.1 -2 - REPORT The City's current long distance agreement expired on March 31, 2020. The City has the opportunity to extend this agreement by one year leveraging the Province of New Bruswick's contract. The PNB rate is 0.014 cents per minute for intra -provincial calls and 0.018 cents per minute for New Brunswick to Canada Outbound and Inbound toll free calls. The current market rate for long distance for a phone and internet bundle is 20 cents per minute. This agreement results in the following long distance savings; Service Savings Intra -Provincial Calls in New Brunswick 0.186 cents/ minute New Brunswick to Canada Outbound and Inbound toll free calls 0.182 cents/ minute STRATEGIC ALIGNMENT As outlined in Council Priorities, the City is looking for strategic approaches to financial management, including leveraging collaborative procurement opportunities. Bell Aliant is offering the City the same rates that were negotiated by the Province of New Brunswick. Because of this arrangement, the City receives a lower long distance rate than it would typically qualify for based on the current amount of long distance used. SERVICE AND FINANCIAL OUTCOMES The rates in the amended agreement maintain current rates for one year. In 2019, the City spent approximately $2,500 dollars on long distance charges. Based on an average of the two rates outlined in the Long Distance and Teleconferencing Services Schedule, the City saved approximately $460. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The Materials Management team is supportive of proceeding with the contract as these services are a sole source. The contract amendment has been reviewed by the City Solictior's office. ATTACHMENTS 1. Long Distance and Teleconferencing Services Schedule 2. Amending Agreement 1 to Long Distance and Teleconferencing Services Schedule Kul DocuSign Envelope ID: 413110562-CFC4-4819-A559-71BF4095F046 Master Agreement Number: CN -0807-8441 ° A lia n t Services Schedule Number: CN -1802-61171 1110 WOCIARM-1 Z14 Customer Name: City of Saint John (the "Customer") The services described in this Long Distance and Teleconferencing Services Schedule (the "Services Schedule") are provided in accordance with and governed by either i) a Master Services Agreement between the Customer and Bell Aliant Regional Communications, Limited Partnership ("Bell Aliant"), subsequently assigned by Bell Aliant to Bell Canada (the "MSA"); or ii) a Master Communications Agreement between the Customer and Bell Canada ("Bell") (the "MCA"), whichever is applicable. The MSA and MCA, whichever is applicable, shall herein be referred to as the "Master Agreement". Bell and the Customer agree that this Services Schedule is attached to and forms part of the Master Agreement and is governed by its terms and conditions, with effect from the date of execution of this Services Schedule by the Customer. Capitalized terms used but not defined in this Services Schedule have the meanings given to them in the Master Agreement. For the purposes of this Services Schedule, references to the "Agreement" shall include both the Master Agreement and the Services Schedule. 1. TER a. Initial Service Term: The Initial Service Term shall be effective as of April 1, 2018 (the "Effective Date") and shall continue until March 31, 2020. b. Service Renewal Term: Upon expiration of the Initial Service Term, and unless either party informs the other with 30 days prior written notice of non -renewal, there shall be i) 1 Service Renewal Term equal in length to 12 months, subject to Service New Brunswick extending its Long Distance Agreement with Bell, or ii) in the event Service New Brunswick does not extend its Long Distance Agreement there shall be consecutive Service Renewal Terms each equal in length to 1 month at rates equal to the month-to-month fees then in effect for the Services. c. Use of Service beyond Service Term: If the Customer for any reason continues to use the Services after The expiry or termination of this Services Schedule, the terms and conditions of the Agreement including this Services Schedule shall continue to apply for so long as the Customer uses the Services, except that the Fees shall be the month-to-month fees then in effect for the Services. 2. SERVICE a. Definitions: L "North American toll-free calls" means Canada -Canada and U.S.-Canada toll-free calling associated with Business Savings Plan service - Toll-free service. ii. "North American outbound toll calls" means Canada -Canada and Canada -U.S. outbound toll calling associated with Business Savings Plan - Long Distance service. iii. "Bort" means a single user with a single access to a teleconferencing bridge. b. Description of Service: The Long Distance and Teleconferencing Service (the "Services") consist of 4 components: L Long Distance Services: (1) Direct -Dialed Outbound: End-to-end voice connectivity from the point where Bell's service physically connects to the switching equipment servicing the Customer's originating caller to any terminating switching equipment within North America or the international country called. (2) Automated Calling Card: A card based service utilizing a personal identification number ("PIN") system allowing the Customer to make Direct -Dialed Outbound Long Distance Calls or make calls within the local calling area. (3) Call Duration Billable Parameters: The minimum billable call duration is 30 seconds and each call is billed in 6 second increments thereafter. The minimum connection to initiate a billable call is 0.48 seconds. H. Toll-free Services: (1) Inbound: End-to-end connectivity from a caller's originating switching equipment in North America to the point where Bell's service physically connects to the switching equipment servicing the Customer's called party. (2) Message Duration Billable Parameters: The minimum billable call duration is 30 seconds and each call is billed in 6 second increments thereafter. The minimum connection to initiate a billable call is 0.48 seconds. iii. Teleconferencing Services: This service allows multiple users to hold a conference utilizing an audio bridge by accessing teleconferencing Ports connected to the bridge. A conference originator must Long Distance and Teleconferencing Services Schedule Version 1.9pnba Page 1 of 4 October 4, 2017 29 38 oocuSignEnvelope |o4a/1o562-CpC4-4810-A5o9-71oF4095FO46 Master Agreement Number: CN -0807-8441 Services Schedule Number: CN -1802-61171 establish a call and obtain the calling parameters. Teleconferencing Services include Port access and optionally Toll-free Service. There are three types of Teleconferencing Services: (1) Reservations are made through aconference operator. Upon request of the conference originator, the conference operator establishes the call and will provide assistance upon request during the meeting, The conference originator is responsible for all Fees incurred during the conference call. pD Once uPaesnndeisestablished, port access inavailable 24 hours per day and 7 days per week, No reservations are required. The conference originator is responsible for all the participants' Teleconferencing Services Fees, while each conference participant is responsible for their own Long Distance Services Fees. Alternatively, a Toll Free 8en,icoa number can be provided and all Fees assigned to the conference originator. iv. Bell's Web Conference Services iopowered byVVebExand isa conferencing solution that connects participants by use of their computer to join online meetings, tmining, and events. The attendees are able todeliver a preseniabnn, edit fi|sy, and collaborate on whi0eboavd. 3. FEES a. fees Schedule: L ThaCustomerohoUpaytoBeUfeeafortheSemicea(tha^Femu^)onamonthlyand/bronadmabauis. moset out inTables 2and J. ii. Fees listed in this Services Schedule are exclusive of Sales and Use Taxes, as defined in the MSA, or Taxes, as defined in the MCA, whichever ieapplicable. iii. The service components which are billed at the Business Savings Plan service rates and charges, shall receive, where app|inab|*, the monthly volume term discounts available under Business Savings Plan service. b. Service Types: The Customer subscribes to the Services as specified in Table 1. Table I Business Savings Plans Description Subscriber To Long Distance Service Yes Toll-free Service Yes Table 2 Long Distance Rat(E Description Rate per Mlnu�e= Per call Surcharge NorthArneftan Intra- Provincial (outbound and toll free calls originating $0.014 not applicable ("INIA") and terminating in New Brunswick) New Brunswick to Canada Outbound and Inbound toll $0V8 N/A free calls New Brunswick to Continental United States outbound $0.018 N/A and Inbound toll free (excluding calling card calls) Intra- Provincial (originating and terminating in New $0.014 $0.00 Brunswick) automated calling card calls Remainder of North American automated calling card calls (excluding US -to -US calls) through use of North $0.018 $0.00 American Dial Around Number (1 -800-555-1111) North American operator handled calling card calls Business Savings Plan Business Savings Plan US -to -US automated calling card calls through use of the North American Dial Around Number (1-800-555- $0.50 $1,00 Overseas Long Distance and Teleconferencing Services Schedule v,rs|on1.9pmta Page om* October 4.uu1r 30 39 000uonnEnvelope ID: 4al1Cssu-Crc44moo55pr/er4n*orn*s Master Agreement Number: CN -0807-8441 Services Schedule Number: CN -1802-61171 Overseas outbound direct -dialed toll calls (excluding 49% discount from N/A calling card calls) terminating on a landline phone Business Savings Plan Service Fee Overseas outbound direct -dialed toll calls (excluding 49% discount from N/A calling card calls) terminating on a mobile phone Business Savings Plan Service Fee Toll Free Reservationless (includes Toll Free charges — Canada and USA) $0.04 N/A International toll-free calls International/Global N/A Web Conferencing I Service Service Fee Overseas calling card calls Business Savings Plan I Business Savings Plan Table Teleconferencing Rates Description Rate per Minute Surcharge per Call Premiere (Operator Assisted) Conferencing Rate (per minute/ per port) Service Fee Premiere Operator Assisted $0.15 + regular long distance not applicable ("N/K) Reservationless Voice Conferencing Rate (per minute / per port) Service Fee Toll Free Reservationless (includes Toll Free charges — Canada and USA) $0.04 N/A Instant Playback $0.20 N/A Web Conferencing I Rate (per minute I per port) I Service Fee Meeting Center 1000 1 $0.21 1 N/A c. Minimum Commitment: i The Customer agrees touse Business Savings Plan service to attain the following Minimum Annual Usage Commitment (the ^MAUC^)during each year ofthe Service Term aafollows: n> 91,100 minutes. ii. The MAUC includes combined toll-free and outbound toll minutes. iii. |fthe MAUCisnot achieved during nfthe Initial Service Period, Bell shall bill the Customer for the shortfall inannual minutes atthe rate of$0.014per minute. iv. The MAUC may only be met by minutes, which qualify under this Services Schedule, The eligible Business Savings Plan service minutes include those set out intable 1 d. The Customer understands, acknowledges that, inexchange for receipt of the rates provided under this Services Schedule, Customer hereby agrees that Bell shall be the sole supplier to the Customer of any additional services which are the same or substantially similar to the Services provided under this Service Schedu|e(^Simi|arSorvines^).andCuatomeragreestopmourea||Simi|arServ|oeait requires from Bell during the Service Term. Bo|| and the Customer acknowledge and agree that the Customer is a "Government Funded Body" as that term is defined in the Master Communications Agreement between Bell and Service New Brunswick (the 'SNB"), dated July I 1.2O17aoamended (the "PNB A8mmmenY')and that asaGovernment Funded Body the Customer ixentitled to receive the Services at the prices payable by SNB under the PNB Agreement. The Customer acknowledges and agrees that the prices for the Services set out in this Section 3 are being provided to the Customer pursuant to, and in accordance with, the PNB Agreement. If the prices of the Services provided to SNB under the PNB Agreement are modified during the Service Term, the price of the Services offered to the Customer will be changed to align with the PNB Agreement within 90 days of such change for SNB. The Customer acknowledges that a written amendment to this Services Schedule is not required tochange the prices in such circumstances. The Customer further acknowledges and agrees that if the Customer ceases tn be a Government Funded Body. or the PNB Agreement is terminated, or expires, the prices set out in this Section 3 may be modified by Bell in its discretion upon notice to the Customer. For clarity, the parties agree that only the prices for the Services as set out in this Section 3 will be provided in accordance with the PNB Agreement and that all other terms and conditions relating to the provision of Services are otherwise governed by. and will be provided in accordance with, the terms and conditions of this Schedule and the Agreement. Bysigning below, Bell and the Customer agree that this Services Schedule isattached toand forms part ofthe Master Agreement. Long Distance and Teleconferencing Services Schedule vawmm1.npmm Page om4 0uuuer 4, 2017 31 40 DocuSign Envelope ID: 4B11C562-CFC4-4819-A559-71BF4095F046 City of Saint,J hn MAYOR: NAME: COMMON CLEARK Master Agreement Number: CN -0807-8441 Services Schedule Number: CN -1802-61171 Bell Aliant, a division of Bell Canada DocuSigned by: SIGNATURE: IA2 NAME: Glen Gnazdowsky NAME: TITLE: Account Executive I am authorized to bind Customer to the terms and conditions of this Services Schedule. DATE: 17-09 01-f oci YYYY-MM-DD Long Distance and Teleconferencing Services Schedule Version 1.9pnba Page 4 of 4 32 41 I am authorized to bind Bell Canada to the terms and conditions of this Services Schedule, DATE: 2018-02-12 Q�10TH&SWIF, October 4, 2017 Agreement Number: CN -1802-61171 Amendment Number: CN -2002-66929 Amending Agreement 1 to Long Distance and Teleconferencing Services Schedule, made effective as of April 1, 2020 ("Amendment'). Between: City of Saint John (the "Customer") and Bell Aliant, a division of Bell Canada ("Bell'), WHEREAS Bell and Customer entered into a Long Distance Services Schedule (CN -1802-61171) effective as of April 1, 2018 (the "Agreement'); AND WHEREAS both parties desire to amend the Agreement as described in this Amendment; NOW THEREFORE the parties agree as follows: 1. Sections 1(a) of the Services Schedule is hereby deleted and replace with the following: ,,a. Initial Service Term: The Initial Service Term shall be effective as of April 1, 2018 (the "Effective Date") and shall continue until March 31, 2021." 2. All other provisions of the Agreement 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 Bell Aliant, a division of Bell Canada SIGNATURE: I►/_1OTA I TITLE: I am authorized to bind Customer to the terms and conditions of this Amendment. DATE: YYYY-MM-DD City of Saint John SIGNATURE NAME: SIGNATURE: I►/_1OTA I TITLE: I am authorized to bind Bell Canada to the terms and conditions of this Amendment. DATE: YYYY-MM-DD I am authorized to bind Customer to the terms and conditions of this Amendment. DATE: YYYY-MM-DD Amendment to Agreement Version v1.1 (E -IST) Page 1 of 1 July 17, 2017 :1P COUNCIL REPORT M&C No. 2020-110 Report Date April 14, 2020 Meeting Date April 20, 2020 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: 2020 Roadway Construction Projects OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head+Jcci ty Manager Brian Keenan Michael Hugenholtz hnCollin RECOMMENDATION It is recommended that Common Council receive and file this report. EXECUTIVE SUMMARY The City of Saint John has a number of major construction projects under both the General Fund and Utility Fund Capital Programs that will have a significant impact on traffic arteries. A map identifying the location of 2020 City projects is attached. Projects that will have a more significant impact on traffic are highlighted later in this report. PREVIOUS RESOLUTION August 19, 2019; 2020 Water & Sewerage Utility Fund Capital Program Approved. August 19, 2019; 2020 General Fund Capital Program Approved. !i93 -2 - STRATEGIC ALIGNMENT This report aligns with Council's Priority for Valued Service Delivery, specifically as it relates to investing in sustainable City services and municipal infrastructure. REPORT Staff of local road authorities - New Brunswick Department of Transportation and Infrastructure (NBDTI), Gateway Operations and the City of Saint John met on March 9, 2020 to exchange information on planned construction projects and to consider effects of the construction on the transportation network and traffic in the Saint John region. Also included were local utilities Saint John Energy, Liberty Utilities, Emera Brunswick Pipeline, Bell Aliant and Rogers Communication, The 2020 construction season will again have many large projects with impacts to traffic flows. The meeting was productive with groups sharing information on major projects that will impact traffic flows during the 2020 construction season. The purpose of this report is to update Council on current and planned roadway construction and the steps being taken to help mitigate impacts on users of the transportation network. Route 1 and Interchanges Work will be taking place this season by Gateway Operations: • Gilbert Street (Crown Street) Overpass Structure — Deck Rehabilitation (Southbound lanes followed by Northbound lanes) starting May 1st with an estimated duration of 6 months — lane reductions will be required. Route 1 eastbound on ramp will need to be detoured during work on northbound lanes of overpass. • Route 1 - curb repairs near the Wall Street (Somerset Street) interchange. Traffic on Route 1 will be reduced to a single lane in each direction. One week duration anticipated. • Celebration Street — Gabion Retaining Wall Replacement. Partial lane closure required on Route 1 during the excavation work (westbound direction near Exit 123 off ramp). Two week duration anticipated. NBDTI Proiects NBDTI will be undertaking the following projects in 2020: • Wall Street (Somerset Street) Overpass Structure —expansion joint repairs — approximately one week duration in June — structure reduced to one lane • Little River (Bayside Drive) Structure — deck drain repairs — approximately one week duration in June. !El! -3- • One Mile Interchange Structure — new barrier wall — approximately one week duration for each side in May. • Harbour Bridge — asphalt surface repairs — approximate duration one week in May — lane reductions required. • Courtenay Bay Causeway — asphalt surface repairs — approximately one week duration in May — lane reductions required. • Reversing Falls Bridge — Foundation Rehabilitation — minimal impact on traffic flow anticipated at this time. • Route 7 — Harry Lyons Road towards Welsford 4 km paving • Route 7 — Milligan Brook 42 to Saint John City Limits 2 km paving • Rothesay Avenue/Route 100 intersection — install traffic lights in May/June to complete contract. • Route 1 — replace median guide rail from east end of Harbour Bridge towards TD Station — lane reductions required. Saint John Energy Projects Saint John Energy will be undertaking utility work that involves some excavation at the following locations: David Street, Christopher Court, Paradise Row and Union Street. Cabling work not requiring excavation will be undertaken at various uptown locations. City Proiects The attached City of Saint John Projects Map for 2020 includes projects under several categories: • Asphalt Maintenance Resurfacing • Water and Sewer Construction • Street Reconstruction • Roadway Maintenance Asphalt Overlay Generally, the Asphalt Maintenance Resurfacing projects are carried out in stages: asphalt cold milling, structure adjustments and paving. These projects are normally of short duration with each location taking a few days to complete depending on length of roadway to be resurfaced. The construction duration will be longer for those locations where concrete curbs/sidewalks are included. Water & Sewer Renewals require trench excavation in roadways and will result in lane reductions, but there will be full road closures only in special cases where buried infrastructure is complex and significant work is being carried out simultaneously in various sections of the closed roadway. Street Reconstruction projects normally involve underground infrastructure renewals and replacement of roadway granulars in preparation for new curb, sidewalk and asphalt installations. This type of construction work normally requires full road closure. !1'7 -4 - Roadway Maintenance Asphalt Overlay projects are carried out where the service life of a street cannot be extended by asphalt maintenance resurfacing and the street is not slated for street reconstruction within the next five years, the street becomes a candidate for local maintenance. The intent of the program is to maintain the street in a functional condition until such time as the street is able to be reconstructed. City Crew's overlay the existing street surface with a layer of asphalt. The Project Map includes the full planned overlay program for the season; it should be noted that the scope of the program may need to be scaled back in the event of a prolonged disruption to regular service delivery as a result of the Covid-19 pandemic. From the Projects Map, the following projects will result in significant impacts to traffic flow: • Waterloo Street (Haymarket Square to Castle Street) — Street Reconstruction — road closure and detour with access for local traffic. • Celebration Street (Stanley Street to end) - Street Reconstruction — road closure and detour with access for local traffic. • Germain Street (Queen Street to St. James Street) — Storm Sewer Construction — lane reduction. • Champlain Drive (Grandview Avenue to Old Champlain Drive) — Asphalt Maintenance Resurfacing — lane reductions. • Fairville Boulevard (Kierstead Road to O'Brien Street) - Asphalt Maintenance Resurfacing — lane reductions. • Charlotte Street (King Square North to King Square South) and King Square North (Sydney Street to Charlotte Street) - Asphalt Maintenance Resurfacing — lane reductions, possible road closure two consecutive Sundays. • Manawagonish Road (O'Brien Street to Church Avenue) - Asphalt Maintenance Resurfacing - lane reductions. • Loch Lomond Road (Javin Hill to Gibbon Avenue) and (McNamara Drive to Bon Accord Drive) — Asphalt Maintenance Resurfacing — lane reductions • Douglas Avenue (Civic 4399 to Civic 4425) — Water & Sewer Construction — lane reductions. • Gault Road (Civic 4289 to Civic 4484) — Watermain Construction — lane reductions. • Mount Pleasant Avenue East (Bayside Drive to Pleasant City Street) — Asphalt Maintenance Resurfacing — lane reductions. -5 - Ocean Westway (King William Road to Manawagonish Road) — Asphalt Maintenance Resurfacing — lane reductions. • Somerset Street (Civic 4560 to Millidge Avenue) and (Barker Street to Wellesley Avenue) — Asphalt Maintenance Resurfacing — lane reductions. Traffic disruption could be subject to change depending on particular design and/or construction circumstances. Detailed traffic control plans will be developed with contractors and design consultants for all major construction projects. In addition to those identified above, other planned projects shown on the Projects Map should be less disruptive. There will also be normal operational and maintenance activities carried out by Saint John Water and Transportation & Environment Services crews. These are smaller in scope and usually only disrupt traffic on a street or street sections for a relatively short period. Staff have also communicated with other local utilities — Liberty Utilities, Bell Aliant and Saint John Energy — to exchange information about their work activities in order to coordinate respective programs and plans. SERVICE AND FINANCIAL OUTCOMES The planned roadway construction projects will result in improvements to the municipal infrastructure. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Communications — Construction Information Keeping citizens informed is a key component of a successful construction season. Transportation & Environment Services, Engineering, SJ Water, Saint John Police and Communications will work together with SJ Transit, SJ Parking Commission, NBDTI, Gateway Operations and the various other utilities and contractors to ensure that the public is kept informed on projects, delays and changes to traffic patterns. The various groups will also work together to promote information regarding alternate routes and modes of transportation. A coordinated communications campaign is being initiated to keep the public informed on construction progress throughout the season, along with impacts on the highway and road networks and various forms of transportation. -6 - The following will be utilized to communicate information to the public: • Public information notices for major projects where required. • The weekly construction updates report sent to the media and posted to the City's Website, sent via email notification, Twitter and Facebook each Friday. A sample of the weekly update is attached for information. Further information will be compiled as additional 2020 construction projects commence; • "Spot" traffic advisories disseminated as required through various channels including media, email notification, Twitter and Facebook; • Onsite information signage where needed and; • Working with Destination Saint John and the Visitor Information Centres to keep visitors/tourists informed. • Comprehensive project information posted on the City's website including a construction map, a list of all projects and an explanation of the work to be carried out and detailed information about large projects; I,,— : 01, kali T rta — C, Fn,'r ',-Sarinm mm ., , RA —, I✓I t s . C""', Or, NEEMMEM III uluuuu�ui0 IIIuI EIIOi° M. a..,� „ cnunlloudIlwrol202 in, VV—,PI ii y i I Ik L I P , „., in�/Y 111 I,v. 't (•• w . A n I k l M-' J' City of Saint John .�. s ✓� � �,/.` �, 6��GOu49tl4 2020Projects LYU BufEIT N I L, P:DCy ask L ,e MI,. N)II:t6 [, . -tia,n tl+'auyu.EN C,12010, Pe .ty .t '�n itl lI I Ar,T m)s8.0 1,-1111 nt" .t, Im _...nl } Ad ':,I I, ;1"L 1 nN)1, I" r piwe nM„ n+ -.9 e M r• ,r.,,, WHR ,..trv.Ot II rv,l "I"tal r m, Al, dd rl 4 _1-,'illio r„I rc"t,0 f urn t➢ve r+t yPiAL�rtP Ihf,"tY snir pI ,t<n,Int t • Pr ie.,i nin P Poei ,,I tI —P ,,, t "m ku,r "t'g r, (,A,�,+<.: !E:3 Many construction projects and activities have begun or are planned for the 2020 construction season. Agencies are coordinating their public communications effort and this will continue as projects progress. Despite these, the public should expect disruption to traffic flows. Patience and understanding on the part of all network users will be important. ATTACHMENTS • City of Saint John 2020 Projects Map • City of Saint John Weekly Construction Update (2019 Example) !Loll oa / r (j A a" u l � I J-cll / �1 �r- -------------- __-_ y City of Saint John a x'f ---------------------------------------------- \)Tt 50 WEEKLY CONs'rRUcrION UPDATE SAINT)OFIN Municipal Operations and Engineering Ingenierie et operations municipales The City of Saint John (506) 658-4455 Fax/Telecopieur : (506) 658-4740 municipaloperations@saintjohn.ca http://www.saintjohn.ca Drive with Caution or Use Alternate Routes Conduisez prudemment ou utilisez un trajet de rechange. Police Will Be Monitoring Traffic La police surveillera la circulation. Expect Traffic Interruptions S'attendre A des interruptions de la circulation. CITY OF SAINT JOHN PROJECTS CONTINUING/ ENCOURS : u C A N F. 0 h F C n N F. 0 h ROUTE 100 / ROTHESAY ROAD AT RAILWAY ROUTE 100 / CHEMIN ROTHESAY PASSAGE DE CHEMIN DE FER FERMETURE COMPLETE OVERPASS FULLY CLOSED The Department of Transportation and Infrastructure Le ministere des Transports et de ('Infrastructure souhaite wishes to advise that due to unforeseen work on the informer le public que la fermeture A une vole du passage Canadian National Railway structure, located on superieur CN sur la route 100 (chemin Rothesay) sera Route 100/Rothesay Road. prolongee en raison de travaux imprevus. The Department of Transportation and Infrastructure Le ministere des Transports et de ('Infrastructure regrette apologizes for any inconvenience this may cause and les desagrements causes par cette situation et remercie le appreciates the public's patience while we complete this public de sa patience. important work. Le Ministere rappelle aux automobilistes de ralentir, de The Department reminds motorists to reduce speed and conduire prudemment et de consulter le site nb511.ca pour drive safely and to check nb511.ca for updates. obtenir les ('informations les plus recentes. Anticipated completion: November 23, 2019 La fin des travaux est prevue le 23 novembre 2019 Brunsw,Tk C A N F. 0 h BrunswF& C n N F. 0 h Marsh Creek N0.1 (M116) City Of Saint John Reduced to Marsh Creek N0.1 (M116) Ville de Saint-Jean Reduit A Une One Lane (Marco Polo Bridge) Voie (Marco Polo Bridge) The Department of Transportation and Infrastructure Le ministere des Transports et de ('Infrastructure tient A wishes to advise the motoring public that the Marsh informer les automobilistes que le ruisseau Marsh No. 1 Creek No. 1 (M 116), City of Saint John will be reduced to (M116), ville de Saint John, sera reduit A une vole A one lane starting Monday October 7, 2019. The duration compter du lundi 7 octobre 2019. La duree de cette of this closure will be approximately 2 weeks. This lane fermeture sera d'environ 2 semaines. Cette fermeture de closure is necessary for deck repairs and paving. Signage voie est necessaire pour la reparation du pont et le pavage. will be in place. La signalisation sera en place. 0111 Construction Update / Nouvelles hebdomadaires - 2 - Oct 18, 2019 / le 18 oct 2019 The Department of Transportation & Infrastructure Le ministere des Transports et de ('Infrastructure s'excuse de apologizes for any inconvenience this may cause. The tout inconvenient que cels pourrait causer. Le ministere department reminds motorists to reduce speed and rappelle aux automobilistes de reduire leur vitesse et de drive safely. conduire prudemment. Contract 2019-07: Chipman Hill (Union Street to King Street) — Water, Sanitary and Storm Sewer Renewal and Street Reconstruction Beginning June 10, 2019 — This project involves the installation of new watermain, sanitary and storm sewers and street reconstruction on Chipman Hill between Union Street and King Street. The installation of watermain and sanitary and storm sewers and street restoration will also be undertaken in the Prince William Street/King Street/Chipman Hill intersection. During construction Chipman Hill will be closed to through traffic but access to local businesses will be maintained. Two-way traffic on King Street and Union Street will be maintained. Please observe the construction signage and drive carefully through the construction zone. Motorists are advised to take alternate routes. Anticipated completion: November 1, 2019 Contract 2019-16 : Asphalt Resurfacing 2019 - Contrat no 2019-07 : Chipman Hill (de la rue Union a la rue King) - Renouvellement de la conduite d'eau et des egouts sanitaires et pluviaux et travaux de refection Les travaux debuteront le 10 juin 2019 - The City of Saint John installera de nouvelles infrastructures sur Chipman Hill (de la rue Union a la rue King). Une nouvelle conduite d'eau principale et de nouveaux egouts sanitaires et pluviaux seront installes. Aussi, une nouvelle conduite d'eau principale et de nouveaux egouts sanitaires et pluviaux seront installes a ('intersection des rues King William/King/Chipman Hill. Pendant les travaux de construction, Chipman Hill sera fermee a la circulation. L'acces des residents et des entreprises de la localite sera maintenu. Nous vous prions de vous conformer aux panneaux de signalisation pour la circulation et les travaux de construction et d'opter pour un autre itineraire. La fin des travaux est prevue le 1 novembre 2019. Contrat 2019-16 : Resurfacage d'asphalte - 2019 Start Finish Birchdale Crescent August 26 October 25 Cedarwood Drive August 26 October 25 Rivershore Drive August 26 October 25 Ocean Drive September 17 October 25 Lucas Street September 17 October 25 Contrat no 2019-07 : Chipman Hill (de la rue Union a la rue King) - Renouvellement de la conduite d'eau et des egouts sanitaires et pluviaux et travaux de refection Les travaux debuteront le 10 juin 2019 - The City of Saint John installera de nouvelles infrastructures sur Chipman Hill (de la rue Union a la rue King). Une nouvelle conduite d'eau principale et de nouveaux egouts sanitaires et pluviaux seront installes. Aussi, une nouvelle conduite d'eau principale et de nouveaux egouts sanitaires et pluviaux seront installes a ('intersection des rues King William/King/Chipman Hill. Pendant les travaux de construction, Chipman Hill sera fermee a la circulation. L'acces des residents et des entreprises de la localite sera maintenu. Nous vous prions de vous conformer aux panneaux de signalisation pour la circulation et les travaux de construction et d'opter pour un autre itineraire. La fin des travaux est prevue le 1 novembre 2019. Contrat 2019-16 : Resurfacage d'asphalte - 2019 61 Debut Fin Croissant Birchdale 26 ao6t 25 octobre Promenade Cedarwood 26 ao6t 25 octobre Promenade Rivershore 26 ao6t 25 octobre Promenade Ocean 17 septembre 25 octobre Rue Lucas 17 septembre 25 octobre 61 Construction Update / Nouvelles hebdomadaires - 3 - Oct 18, 2019 / le 18 oct 2019 (•V Construction Update ise jour de la construction October 11 2019 ® October 18-, 2019 11 octobre 2019 ® 18 octobre 2019 Safe Clean Drinking Water Proiect (SCDWP) Proiet Eau potable et salubre Various Components Divers Composants Motorists area vise of the following traffic Les auto mobilistes sont avis6s des entraves A la inter circulation suivantes Streets: Rues • Hickey Road from Loch Lomond Road to the • Chemin Hickey du chemin Loch Lomond Loch Lomond Drinking Water ('installation de traitement de I'eau potable Loch Treatment Facility. Lomond • Rothesay Avenue from Thorne Avenue to • Avenue Rothesay de I'avenue Thorne jusqu'a la McLean Street rue McLean • McLean Street • Rue McLean • Loch Lomond Road from Foley Court to • Chemin Loch Lomond de Foley Court jusqu'a Courtenay Avenue I'avenue Courtenay • Westmorland Street from Tisdale Lane to • Rue Westmorland de I'all6e Tisdale jusqu'a Sunnyside Avenue I'avenue Sunnyside • Bruce Lane • All6e Bruce • Commerce Drive and Loch Lomond Road • Promenade Commerce et chernin Loch Lomond • Champlain Drive • Promenade Champlain Various components will be subject to intermittent Divers composants seront sujets a des interruptions de traffic interruptions. trafic intermittentes. Motorists are advised to reduce speeds in Les automobilistes sont avis6s de r6duire leur vitesse construction zones, observe signage, and drive dans les zones de construction, d'observer la safely. signalisation, et de concluire prudemment. (•V COUNCIL REPORT M&C No. 2020-85 Report Date April 15, 2020 Meeting Date April 20, 2020 Service Area Finance and Administrative Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Market Slip Dredging Tender Award OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadCity Manager Samir Yammine Ian Fogan/Kevin Fudge John Collin RECOMMENDATION It is recommended; 1. That the tender submitted by Terra EX Inc., for the Market Slip Dredging project, in the amount of $177,800 plus HST be accepted. Further to the base tender amount, it is recommended that a contingency allowance be carried for this project in the amount of $10,000 plus HST, for a total project cost of $187,800 plus HST, and 2. Council approve the Dredging Agreement for the Market Slip with the Saint John Port Authority, and 3. Direct the Mayor and Common Clerk to execute the necessary contract documents. EXECUTIVE SUMMARY The purpose of this report is to seek Council's approval to award the Market Slip Dredging to the lowest compliant bidder and approve the agreement with the Saint John Port Authority to cover 50% of the initial dredging cost. The Port Authority has also committed to completing the maintenance dredging of the market slip for 12 years. PREVIOUS RESOLUTION Having met on April 23, 2019, Council resolved the following in relation to the Market Slip Dredging: 1. "For Council to formally request the Saint John Port Authority fund 50% of the cost of dredging the Market Slip, and 6'i! -2- 2. Direct staff to work with the Port Authority in regards to deploying all the sections of dock in a temporary location until the dredging is complete, and 3. Pending approval from the parking commission, direct Mayor and Clerk to execute the attached Memorandum of Understanding between the City of Saint John and The Saint John Parking Commission', REPORT Background Market Slip was last dredged in December 2004. Since that time, sediment has built up via natural siltation to the point where it requires maintenance dredging. The Saint John Port Authority (The Port) has sought to partner with the City to complete the dredging to provide small boat docking capabilities on the port side of reversing falls. Construction Activities The proposed project includes the approximate excavation of 3,000 m3, in place measure, (3,900 m3 bulk) of material to increase the water depth and accommodate the installation of floating dock space at Market Slip. Currently, the City can only deploy 3 of the 8 docks intended for the market slip due to the limited depth. The longer the work is delayed, the less the slip will be useable and the project will get more expensive. Completing the work sooner rather than later, and reaching a level where only maintenance is required is the least costly option to maintain a service. Also of note, the Port has agreed to complete the maintenance dredging of the slip for 12 years at their cost. The City previously attempted to tender this work in 2019 but received no responses. The engineer's estimate at that time was $369,000. The project has been re -scoped and a new solution in partnership with the Port, for depositing the spoils has been developed at a significantly reduced cost. The construction site is in a public area and will require precautions to protect the public. It is anticipated that temporary road(s) will be constructed through a corner of the volleyball courts that will require stockpiling of the court sand for reinstallation at the end of the project. The dredged materials will be loaded on trucks with an excavator. The tailgates on the trucks will be modified to reduce the amount of leakage. After leaving the excavation site, the trucks will travel through a section of the volleyball courts, through the Coast Guard site and onto Water Street, up St. Patrick, onto the Harbour Bridge and then directly to the disposal site. Due to the nature of the materials street cleaning will be required. The total project is expected to last six weeks. 6191 -3 - Dredge Material Disposal Site Due to the contaminant exceedances within the material to be dredged, the dredged materials are to be disposed of on land at a designated disposal site. Land disposal sites for <_ 10 000 m3of dredge material require approval by the New Brunswick Department of Environment and Local Government (NBDELG) as per the New Brunswick Clean Water Act. The proposed storage site is located on Port Saint John west side property, and is approved by the Port as well as the Department of Environment and Local Government of the Province of New Brunswick. The property is available to the successful contractor as a temporary storage site until final disposal within a caisson being constructed on Port property in the Port modernization project. The Port is creating a new wharf by closing off both slips with a row of caissons (27m high cement boxes filled with rock). When these caissons are in place and backfilled, a fully isolated containment cell will be created in the northerly most slip behind the caissons (Pier 1 and 2 area). This configuration allows the isolation and containment of contaminants such as what are in the market slip spoils. STRATEGIC ALIGNMENT This initiative aligns with the Council priority of Valued Service Delivery, specifically Customer -Focused Services in exploring service improvements through innovation, technology and developing partnerships with other organizations to be balanced with the Council priority of Fiscal Responsibility. SERVICE AND FINANCIAL OUTCOMES The total cost for the Market Slip Dredging, if awarded, to the lowest bidder as recommended, will be $195,421 including HST. This includes a $10,000 contingency allowance. Funding of the project is provided by Saint John Port Authority (50% of the cost or $97,711) with the remaining from previously approved 2019 Capital Budget. The on-going maintenance cost of dredging is being incurred by the Port. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS A public tender call was issued on Thursday, March 26, 2020 and closed on Tuesday, April 15, 2020. Two (2) companies responded to the tender call by submitting bids. The results are as follows (excluding HST): COMPANY NAME TENDER!RRICE* TerraEX Inc. $177,800.00 67� -4- Debly Enterprises Limited $377,000.00 *Exclusive of HST Staff of Materials Management have reviewed the tenders and have found them to be complete and formal in every regard. Staff believes that the low tenderer has the necessary resources and expertise to perform the work, and recommend acceptance of their tender. The above process is in accordance with the City's Procurement Policy and Materials Management support the recommendation being put forth. This report has also been reviewed by the Port and they are seeking approval of the agreement as well from their board. ATTACHMENTS Dredging Agreement 61FA This Agreement made the day of 12020 BY AND BETWEEN: THE CITY OF SAINT JOHN, having its City Hall at 15 Market Square, Saint John, New Brunswick, a body corporate by Royal Charter, confirmed and amended by Acts of the Legislative Assembly of the Province of New Brunswick, hereinafter called the "City" OF THE FIRST PART one SAINT JOHN PORT AUTHORITY, a body corporate duly registered to do business in the province of New Brunswick, having its registered office at 111 Water Street, Saint John, New Brunswick E2L OB1, hereinafter called the "Port" OF THE SECOND PART RECITALS: WHEREAS Market Slip so-called in the City, a description of which is more fully set out herein, has the potential to accommodate the docking of pleasure craft; and WHEREAS realizing the aforesaid potential is contingent upon the initial capital dredging and subsequent maintenance dredging of the said Market Slip taking place, as is more particularly identified herein; and WHEREAS each of the parties hereto is supportive of the said initial capital dredging and subsequent maintenance dredging being undertaken in accordance with the terms and conditions set out herein; WHEREAS the Port has agreed to temporarily store the dredged material on the Port's property at "Location X", as more particularly identified in the tender document 2020-085102T, from the time it is removed from the water during the initial capital dredging until such time that such dredged material is removed from Location X for final disposal; NOW THEREFORE THIS AGREEMENT WITNESSETH that the parties for and consideration of these presents and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, agree each with the other as follows: The City shall 6'1:3 z 1. Obtain all required permits and approvals, and complete the initial capital dredging of the area known as Market Slip, as is more particularly identified in Schedule "A" hereto, in accordance to the design and work as described in tender document 2020-085102T; 2. Manage and oversee the carrying out of the initial capital dredging of Market Slip together with the appropriate removal and disposal of the dredged material; 3. Communicate with local residents and business owners prior to commencement of any capital dredging operations in Market Slip, and shall install adequate temporary safety barricades and signage around the perimeter of Market Slip as necessary; 4. Reimburse the Saint John Port Authority for 50% of the cost of moving the dredged material temporarily placed at Location X following the initial capital dredging to the final disposal location, as determined by the Port. The City shall further reimburse the Port for 50% of the remediation costs associated with restoring Location X to the condition it was in immediately prior to the dredged material removed during the initial capital dredging having been temporarily placed there. The Port shall: 5. Reimburse the City 50% of the actual amount the City pays to the dredging contractor for the initial capital dredging of Market Slip carried out pursuant to Articles 1 and 2 hereof up to a maximum of $200,000.00 within thirty (30) days of the City having confirmed in writing to the Port that the initial capital dredging work identified in Articles 1 and 2 is complete; 6. Allow the use of Location X as a temporary storage site for the dredged material removed from Market Slip during the initial capital dredging. 7. Manage and oversee the carrying out of the moving of the dredged material from the Location X to the final disposal site; 8. Obtain all required permits and approvals respecting maintenance dredging, and complete the maintenance dredging of the area known as Market Slip, as is more particularly identified in Schedule "A" hereto, in accordance with the engineering methodology outlined by the Port's engineering consultant; 9. Ensure that prior to the commencement of each instance of maintenance dredging, the dredging contractor hired by the Port pursuant to Article 4 hereof shall deliver to the City a certificate of insurance evidencing comprehensive general liability coverage of not less 6'1%] 3 than Five Million Dollars ($5,000,000.00) on "an occurrence basis", naming "The City of Saint John" as an additional insured. 10. Comply with the obligation outlined in Article 9 above for a period of twelve (12) years. IN WITNESS WHEREOF the parties have affixed their respective corporate seals, attested by the hands of their respective officers duly authorized in that behalf on the day aforementioned. SIGNED, SEALED AND DELIVERED ) THE CITY OF SAINT JOHN in the presence of: ) Mayor Common Clerk Common Council Resolution: , 2019 SAINT JOHN PORT AUTHORITY Per: SCHEDULE "A" AI PROVINCE OF NEW BRUNSWICK COUNTY OF SAINT JOHN I, Jonathan Taylor, of the Town of Quispamsis, in the County of Kings and Province of New Brunswick, MAKE OATH AND SAY: I. THAT I am the Common Clerk of The City of Saint John and have custody of the Common Seal hereof. 2. THAT the seal to the foregoing instrument affixed is the Common Seal of The City of Saint John and that it was so affixed by Order of the Common Council of the said City. 3. THAT the signature "Don Darling" to the said instrument is the signature of W. Donald Darling, Mayor of the said City, and the signature "Jonathan Taylor" thereto is my own signature. 4. THAT we are the proper officers to sign the foregoing instrument on behalf of The City of Saint John. SWORN TO BEFORE ME ) at the City of Saint John, in the ) County of Saint John and ) Province of New Brunswick ) this day of , 2019 ) Commissioner of Oaths Being a Solicitor I' Jonathan Taylor COUNTY OF SAINT JOHN a;Zi3LT/1►[yEel a011RVA1till 09Vivi 105/ I, [INSERT], of the of , County of _ and Province of New Brunswick, MAKE OATH AND SAY: 1. THAT I am the [INSERT] of the Saint John Port Authority named in the foregoing instrument and have custody of the corporate seal of the said company and am duly authorized to make this affidavit. 2. THAT the seal affixed to the foregoing agreement and purporting to be the corporate seal of the Saint John Port Authority is the corporate seal of the said Saint John Port Authority, named in the foregoing instrument and it was affixed by the officer authorized to so affix the sea I. 3. THAT the signature " " subscribed to the said instrument is my signature and as I am duly authorized to execute the said instrument. 4. THAT the said document was executed as aforesaid at the of in the Province of New Brunswick on the day of '2019. SWORN TO BEFORE ME at the ) of ) in the County of ) and Province of New Brunswick 1 this day of , 2019 Commissioner of Oaths ) Being a Solicitor ) W COUNCIL REPORT M&C No. 2020-103 Report Date April 15, 2020 Meeting Date April 20, 2020 Service Area Saint John Water His Worship Mayor Don Darling and Members of Common Council SUBJECT: Contract 2020-15: Michael Crescent — Water Service Renewals OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Susan Steven -Power Brent McGovern/ Brian Keenan John Collin RECOMMENDATION It is recommended that Contract No. 2020-15: Michael Crescent - Water Service Renewals be awarded to the low Tenderer, MIDI Construction Ltd., at the tendered price of $197,351.50 (including HST) as calculated based upon estimated quantities, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. EXECUTIVE SUMMARY Premier Blaine Higgs has stated that construction activities shall continue and are not prohibited under the declaration of the State of Emergency in response to the COVID-19 pandemic. He has instructed, however, that the construction industry must work safely and follow measures as recommended by the Chief Medical Officer of Health. The purpose of this report is to recommend that Council award Contract 2020-15: Michael Crescent — Water Service Renewals to the low Tenderer. PREVIOUS RESOLUTION July 30, 2018; 2019 Water & Sewerage Utility Fund Capital Program approved AElI -2 - REPORT BACKGROUND The approved 2019 Water and Sewerage Utility Fund Capital Program included funding for the renewal of various water service connections at the water main on Michael Crescent to reduce the number of emergency breaks in the water distribution system. Reinstatement of curb, sidewalk, asphalt, topsoil and sod will be completed as part of this project. TENDER RESULTS Tenders closed on April 14, 2020 with the following results, including HST: 1. MIDI Construction Ltd., Saint John, NB $ 197,351.50 2. Maguire Excavating Ltd., Saint John, NB $ 276,907.35 3. Fairville Construction Ltd., Saint John, NB $ 311,739.13 4. TerraEx Inc., Saint John, NB $ 324,679.50 5. Galbraith Construction Ltd., Saint John, NB $ 346,705.45 6. Steele Trucking Ltd., Saint John, NB $ 385,226.43 The Engineer's estimate for the work was $475,950.50 including HST. ANALYSIS The tenders were reviewed by staff and all were found to be formal in all respects. The tender from Steele Trucking Ltd. contained an arithmetic error that required correction in accordance with specification article 2.11 (u) (i). The corrected tender result is indicated above. Staff is of the opinion that the low Tenderer has the necessary resources and expertise to perform the work, and recommend acceptance of their tender. Id10Fil0[0/_1N1LTA I»[4LINO[Q0161 The Contract includes work that is charged against the 2019 Water and Sewerage Utility Fund Capital Program. Assuming award of the Contract to the low Tenderer, an analysis has been completed which includes the estimated amount of work that will be performed by the Contractor and Others. The analysis is as follows: Budget $ 424,000.00 Project net cost $ 252,846.11 Variance (Surplus) $ 171,153.89 ARI -3- POLICY—TENDERING OF CONSTRUCTION CONTRACTS The recommendation in this report is made in accordance with the provisions of Council's policy for the tendering of construction contracts, the City's General Specifications and the specific project specifications. STRATEGIC ALIGNMENT This report aligns with Council's Priority for Valued Service Delivery, specifically as it relates to investing in sustainable City services and municipal infrastructure. SERVICE AND FINANCIAL OUTCOMES This project is necessary to renew various water service connections at the water main on Michael Crescent to reduce the number of emergency breaks in the water distribution system. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS N/A COUNCIL REPORT M&C No. 2020-104 Report Date April 08, 2020 Meeting Date April 20, 2020 Service Area Saint John Water His Worship Mayor Don Darling and Members of Common Council SUBJECT: Contract 2020-04: Sanitary Sewer Structural Lining Phase IV - Various Locations OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Joel Landers Brent McGovern / Brian Keenan John Collin RECOMMENDATION It is recommended that Contract No. 2020-04: Sanitary Sewer Structural Lining Phase IV - Various Locations be awarded to Clean Water Works Inc., at their tendered price of $185,186.80 (including HST) as calculated based upon estimated quantities and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. EXECUTIVE SUMMARY Premier Blaine Higgs has stated that construction activities shall continue and are not prohibited under the declaration of the State of Emergency in response to the COVID-19 pandemic. He has instructed, however, that the construction industry must work safely and follow measures as recommended by the Chief Medical Officer of Health. The purpose of this report is to recommend that Contract 2020-04: Sanitary Sewer Structural Lining Phase IV - Various Locations be awarded to Clean Water Works I nc. PREVIOUS RESOLUTIONS August 19, 2019; 2020 Water & Sewerage Utility Fund Capital Program approved ArA -2 - REPORT BACKGROUND The approved 2020 Water & Sewerage Utility Fund Capital Program includes funding for the cured in place structural lining of sanitary sewers in various locations. The location of the lining work recommended for award is on Germain Street between Queen Street and St. James Street, Manawagonish Road between O'Brien Street and Civic # 805, Leinster Street between Carmarthen Street and Civic # 55 and Lancaster Street between Guilford Street and Duke Street West. TENDER RESULTS Tenders closed on April 7, 2020 with the following results, including HST: 1. Trenchless Solutions Inc., Moncton, NB $ 164,352.25 2. Clean Water Works Inc., Ottawa, ON $ 185,186.80 The Engineer's estimate for the work was $261,385.25 including HST. /_101FAW01161 The tenders were reviewed by staff and were found to be formal in all respects with the exception of the tender from Clean Water Works Inc. which contained a conflict between the written and numerical bid prices that required correction in accordance with specification article 2.11(u) (ii). The corrected tender results are indicated above. Staff is of the opinion that the low tenderer does not have the necessary resources and experience with performing the type and scope of work specified pursuant to specification article 2.11 (i) (iv). Staff therefore recommend acceptance of the second tenderer, Clean Water Works Inc pursuant to specification article 2.11 (q). FINANCIAL IMPLICATIONS The Contract includes work that is charged against the 2020 Water and Sewerage Utility Fund Capital Program. Assuming award of the Contract to the tenderer, an analysis has been completed which includes the estimated amount of work that will be performed by the Contractor and Others. The analysis is as follows: Budget Project net cost Variance (Surplus) C:�:3 $ 225,000.00 $ 186,870.00 $ 38,130.00 -3- POLICY—TENDERING OF CONSTRUCTION CONTRACTS The recommendation in this report is made in accordance with the provisions of Council's policy for the tendering of construction contracts, the City's General Specifications and the specific project specifications. STRATEGIC ALIGNMENT This report aligns with Council's Priority for Valued Service Delivery, specifically as it relates to investing in sustainable City services and municipal infrastructure. SERVICE AND FINANCIAL OUTCOMES The sanitary sewers on the sections of Germain Street, Manawagonish Road, Leinster Street and Lancaster Street are in poor condition and require rehabilitation. The rehabilitation of the infrastructure will reduce the likelihood of future service disruptions to the local residents and businesses due to infrastructure failures. This project will be completed within the original approved financial budget. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS City Solicitor's Office has reviewed this matter and the recommendation is consistent with the City's General Specifications and its reserved rights as expressly provided therein. ATTACHMENTS N/A C:1'] COUNCIL REPORT M&C No. 2020-109 Report Date April 15, 2020 Meeting Date April 20, 2020 Service Area Saint John Water His Worship Mayor Don Darling and Members of Common Council SUBJECT: Contract 2020-02: Celebration Street — Water, Sanitary & Storm Sewer Renewal and Street Reconstruction OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager John Campbell Brent McGovern/ Brian Keenan John Collin RECOMMENDATION It is recommended that Contract No. 2020-02: Celebration Street — Water, Sanitary & Storm Sewer Renewal and Street Reconstruction be awarded to the low Tenderer, Galbraith Construction Ltd., at the tendered price of $362,629.21 (including HST) as calculated based upon estimated quantities, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. EXECUTIVE SUMMARY Premier Blaine Higgs has stated that construction activities shall continue and are not prohibited under the declaration of the State of Emergency in response to the COVID-19 pandemic. He has instructed, however, that the construction industry must work safely and follow measures as recommended by the Chief Medical Officer of Health. The purpose of this report is to recommend that Council award Contract 2020-02: Celebration Street — Water, Sanitary & Storm Sewer Renewal and Street Reconstruction to the low Tenderer. PREVIOUS RESOLUTION August 19, 2019; 2020 Water & Sewerage Utility Fund Capital Program approved August 19, 2019; 2020 General Fund Capital Program approved Me] -2 - REPORT BACKGROUND The approved 2020 Water and Sewerage Utility Fund Capital Program and the 2020 General Fund Capital Program include funding for the installation of a new water main, sanitary and storm sewers and street reconstruction of Celebration Street from Stanley Street to the end. This project is necessary to renew old, cast- iron water main and terra cotta sewers to improve the reliability of the water and sanitary systems in this area. This work will include the installation of pipe, valves, water and sanitary services within the street right-of-way. New asphalt, concrete curb and sidewalk will be constructed as well. I 111 U711 all all 163110 1 61 Tenders closed on April 8, 2020 with the following results, including HST: 1. Galbraith Construction Ltd., Saint John, NB $ 362,629.21 2. MIDI Construction Ltd., Saint John, NB $ 372,957.08 3. Fairville Construction Ltd., Saint John, NB $ 383,663.00 4. Terraex Inc., Saint John, NB $ 385,311.53 5. Maguire Excavating Ltd., Saint John, NB $ 431,378.23 6. Gulf Operators Ltd., Saint John, NB $ 477,900.57 The Engineer's estimate for the work was $405,107.00, including HST. ANALYSIS The tenders were reviewed by staff and all were found to be formal in all respects. The tender from Gulf Operators Ltd. contained an arithmetic error that required correction in accordance with specification article 2.11 (u) (i). The corrected tender result is indicated above. Staff is of the opinion that the low Tenderer has the necessary resources and expertise to perform the work, and recommend acceptance of their tender. FINANCIAL IMPLICATIONS The Contract includes work that is charged against the 2020 Water and Sewerage Utility Fund Capital Program and the 2020 General Fund Capital Program. Assuming award of the Contract to the low Tenderer, an analysis has been completed which includes the estimated amount of work that will be performed by the Contractor and Others. 71 -3 - The analysis is as follows: Budget $ 600,000.00 Project net cost $ 357,185.00 Variance (Surplus) $ 242,815.00 POLICY—TENDERING OF CONSTRUCTION CONTRACTS The recommendation in this report is made in accordance with the provisions of Council's policy for the tendering of construction contracts, the City's General Specifications and the specific project specifications. STRATEGIC ALIGNMENT This report aligns with Council's Priority for Valued Service Delivery, specifically as it relates to investing in sustainable City services and municipal infrastructure. SERVICE AND FINANCIAL OUTCOMES This project is necessary to renew old water and sanitary infrastructure and improve the reliability of the water distribution and sanitary collection system in this area. The work is being closely coordinated with a planned retaining wall replacement within the project limits between Celebration Street and Highway 1 that is being undertaken this season by Gateway Operations. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS N/A COUNCIL REPORT M&C No. 2020-80 Report Date March 12, 2020 Meeting Date April 20, 2020 Service Area Saint John Water His Worship Mayor Don Darling and Members of Common Council SUBJECT: 2020 Engineering Inspection Services OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Joel Landers Brent McGovern/Brian Keenan John Collin RECOMMENDATION It is recommended that Common Council authorize staff to establish supply agreements with the eight consulting firms noted below, at the hourly rates provided in this report totaling $370,000 plus HST for the provision of engineering inspection services for 2020 Capital Program projects. EXECUTIVE SUMMARY The purpose of this report is to have Common Council authorize staff to establish supply agreements totaling $370,000 plus HST for the provision of engineering inspection services. PREVIOUS RESOLUTION August 19, 2019; 2020 Water & Sewerage Utility Fund Capital Program approved August 19, 2019; 2020 General Fund Capital Program approved REPORT Common Council has approved the 2020 Water & Sewerage Utility Fund Capital Program consisting of 14 projects totaling $12,665,350 and the 2020 General Fund (Storm & Transportation) Capital Program consisting of 12 projects totaling $ 7,802,400. 01 -2- A portion of the projects in the 2020 Capital Programs are being designed "in- house" and will require engineering inspection services during construction. There will be a requirement to provide engineering inspection for approximately 9 "in-house" designed projects during the 2020 construction season. In order to ensure that adequate engineering inspection resources are available to the City for the approved Capital Program projects, staff have issued a Request for Proposal (RFP) for engineering inspection services. The RFP was issued to eight local consulting firms that have the appropriate resources on staff capable of providing engineering inspection services on municipal type projects. Eight firms have submitted proposals in response to the RFP, providing resumes for inspection resources including hourly rates. The eight firms that replied were: • Crandall Engineering Ltd. • CBCL Limited • Dillon Consulting Limited • GEMTEC Limited • WSP Canada Inc. • Stantec Consulting Ltd. • Brunswick Engineering & Consulting Inc. • EXP Services Inc. No single firm has the resources in place to provide all the required engineering inspection services. The hourly rates submitted by the consultants with their proposals were similar so staff averaged the rates as has been done historically and established one hourly rate for each of the three levels of inspectors —Junior, Intermediate and Senior — as follows: Junior Inspector - $74 Intermediate Inspector - $86 Senior Inspector - $98 The hourly rates include all miscellaneous expenses (car, cellular telephone, digital camera, etc.) and do not include H.S.T. All eight engineering firms have confirmed they are in agreement with the above rates. The City will determine the appropriate level of inspector required for a given project and then request the engineering inspection services from the eight consulting firms on a rotational basis. STRATEGIC ALIGNMENT This report aligns with Council's Priority for Valued Service Delivery, specifically as it relates to investing in sustainable City services and municipal infrastructure. W11 -3 - SERVICE AND FINANCIAL OUTCOMES The total overall cost for engineering inspection services for 2020 is difficult to predict as there are a number of variables; most significant of which is how many contractors and the number of construction crews that will be working at a given time period. Staff has estimated the overall value of the engineering inspection services for 2020 to be approximately $370,000 plus 15% H.S.T. Funds to cover the cost of the engineering inspection service are included in the approved 2020 Capital Program project budgets. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The Request for Proposal document and this report have been reviewed with the City's Materials Management Department and they support the recommendation being put forth. ATTACHMENTS None 01 COUNCIL REPORT M&C No. 2020-111 Report Date April 15, 2020 Meeting Date April 20, 2020 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Virtual Planning Advisory Committee and Heritage Development Board service restoration and Rescheduling of Public Hearings OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Kenneth Melanson Jacqueline Hamilton John Collin RECOMMENDATION That Common Council: 1. Re -schedule the public hearing for the rezoning application of Saint John Energy (90 Paradise Row) for an off -Monday meeting on Monday June 15, 2020 at 6:30 p.m. to occur via web conference; 2. Re -schedule the public hearing for the rezoning application of Sandor Toror (191 Red Head Road) for Monday June 8, 2020 at 6:30 p.m. to occur via web conference; 3. Schedule the public hearings for Section 59 and rezoning applications for 048367 NB Inc. (10-36 Arlington Crescent) and Hughes Surveys Inc. (251- 361 Riverview Drive) for an off -Monday meeting on Monday June 15, 2020 at 6:30 p.m. to occur via a web conference; 4. Refer these applications to the Planning Advisory Committee for a report and recommendation; and 5. Receive and file the information on the virtual restoration of service for the Planning Advisory Committee and Heritage Development Board. EXECUTIVE SUMMARY Due to the COVID-19 pandemic, the Province of New Brunswick issued a State of Emergency declaration. As part of that declaration and recommendations from the Public Health Officer, the City of Saint John has moved from normal operations to an essential services model. As a result, all public hearings and meetings for the Planning Advisory Committee (PAC) and Heritage Development Board (HDB) have been cancelled. NQ -2 - While the City of Saint John remains focused on the delivery of essential services to comply with the Provincial State of Emergency, the City is considering, case- by-case, the restoration of some important municipal services that support the Provincial's directives with respect to construction activities. As part of the restoration of municipal services, this report has two primary objectives: (1) to provide Common Council and the public with an overview of the virtual restoration plan for PAC and HDB meetings and Council public hearings and (2) to request that Council schedule public hearings for applications currently in the queue and refer items to PAC to carry out required public participation processes. To effectively manage the backlog of applications in the queue, hearings will be staggered on two dates: June 8, 2020 Public Hearing of Council and an Off -Monday meeting on June 15, 2020, both starting at 6:30 p.m. through a web conference. By staggering the public hearings, we ensure that the Webex meeting is not exceeded in participants or bandwidth capabilities. 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 [now referred as section 59] 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. REPORT Introduction As a result of the State of Emergency declaration by the Province of New Brunswick related to the COVID-19 pandemic, the City of Saint John has moved to an essential services model. PAC and HDB meetings were cancelled as a result of this service change and have now gone through the established service restoration process. This report will provide an overview of how these meetings and Council public hearings will take place; ensure public participation is maintained; safety of the public, staff and committee members is maintained; and seek to schedule a number of future public hearings in the interests of supporting critical services to facilitate economic development. (1) SERVICE RESTORATION The City on March 30th reinstated its One Stop Development Shop and is offering the full range of permitting services virtually. The next phase of the service restoration is to proceed with PAC and HDB meetings and Council public rr11 -3 - hearings. The focus of this process is to ensure that not only can the service area provide delivery of the process, but also that supporting service areas are aware of expectations and can provide support in the current operating circumstances. The restart of PAC and HDB meetings and Council hearings includes public participation processes, IT support requirements the virtual delivery of reports to these committees. Public Participation guidelines have been developed to ensure meetings remain accessible to the public. Restoration of this service was approved by the Commissioner of Growth and Community Development Services and the City Manager. Communications, software testing and refinement of virtual meeting procedures will take place the week of April 20, 2020. Updates to the respective committees Rules of Procedure have been prepared to enable web conference meetings, which will be adopted by each committee in advance of commencing regular meetings. Virtual PAC and HDB meetings and Council Public hearings In order to ensure public, staff and committee members safety in the current state of emergency, PAC and HDB meetings will be held virtually via WebEx meeting technology. Staff will operate meeting controls; however, the chairs of the respective committees will oversee the meetings as directed in the respective Rules of Procedure. Virtual meeting procedures have been crafted by Staff and will be tested through a technology test meeting with each committee. This will allow refinement of the procedures and ensure the technology operates as expected. It will also allow committee members and Staff to learn how to operate the technology to deliver presentations and attempt to facilitate a close to 'typical' PAC or HDB meeting as possible. Public Participation/Presentations and Notifications of meetings Where both PAC and HDB and Council public hearings will be operating in a virtual environment, ensuring public participation is maintained and available has been top of mind in the creation of the virtual service. The WebEx technology allows individuals to be added to a meeting in progress either by an email invitation or by being dialed in by phone by the meeting 'host' (administrator). In order to facilitate orderly meetings and not excessively burden the bandwidth of the meeting, items will be grouped into timeslots. Members of the public wishing to participate on a specific item or 'observe' the entire meeting will be required to register with Staff. Those members of the public who register will then be dialed into the meeting for their specific item or at the beginning of the meeting to observe the proceedings. N-11 -4 - Once all participants are dialed into the item; the chair will explain the rules of the meeting and Staff will provide a presentation to the committee as per regular sequencing of meetings. The Staff presentation (PowerPoint) will be uploaded to the PAC/HDB and Council agenda package so it is publicly available to view and follow during the meeting. The public participants will be provided their opportunity to provide feedback at the appropriate time in the meeting and the ability to respond to questions of the committee. Once the public hearing is closed, members of the public will be able to 'observe' the debate and decision of the committee and hang up once their item is completed. Applicants and members of the public will be notified that if they wish to do a PowerPoint presentation as part of their public hearing presentation, there will be deadlines to submit the material so that it is published with the agenda package. This ensures that all parties have access to the materials in advance of the hearing. The meeting administrator will then share the PowerPoint as the presentation for the item is done. This ensures the PAC and HDB meeting is as near to normal as possible. Existing guidelines for presentations at both the PAC and HDB will be maintained, allowing staff, applicants and the public to make presentations to the respective committees. By having members of the public participate in the item from the beginning, this ensures that the normal process of all participants hearing discussions of each group is maintained as best as possible in a virtual environment. The PAC and HDB have different requirements for public notification of meetings. The HDB has no notification requirement and so no letters are mailed out, only an agenda published. The PAC requires all landowners within 100 metres of the site of an application be notified of the PAC meeting at least 10 days in advance of the scheduled meeting; in addition to the Community Planning Act requirement that a Public Hearing be advertised on the City website at least 21 days prior to the scheduled date. PAC property owner letters have been updated to reflect the virtual meeting format and requirement to register with Community Planning staff to participate. Applicants and members of the public will be furnished with a participation guide handout as they register to explain the virtual process. Public Hearing ads require those wishing to speak at a Public Hearing to register via the Common Clerks office — who will follow a similar process to PAC for upcoming 'virtual public hearings' — dialing in those wishing to participate. Safety of Staff who will be in the office to prepare mail outs has been outlined in the Service Restoration Plan and will follow established COVID-19 office protocols. -5 - Public participation in Council public hearings will also be maintained for the future public hearings. The process for public participation will be similar to that of PAC and citizens will need to register with the Common Clerks office. A separate WebEx will be arranged to ensure a seamless transition to the public hearing. Staff will then dial in participants for each item who have registered. The public will also be able to view the proceedings via YouTube. (2) APPLICATIONS FOR REFERRAL Staff received two applications for the March PAC cycle which require their public hearings be rescheduled. No applications in the April PAC cycle have been impacted. The May PAC cycle has two applications which also require referral — one being a Municipal Plan Amendment which has completed the required 30 day public comment period. Common Clerk's office has provided their typical referral letter (Attachment 1) and indicated no comments have been received. Given this report was scheduling a number of items, this report includes the referral of the Municipal Plan Amendment as well. Those items are as follows: Name of Applicant Location Existing Proposed Reason Sandor Toror 191 Red Head Rural Rural General To allow a car lot Road Residential Commercial in association with (RR) (CRG) a dwelling unit. Saint John Energy 90 Paradise Row Corridor Utility To rezone a portion Commercial Service (US) of the lot to (CC) Riverview Drive construct a power Residential residential substation. 048367 NB Inc. 10-36 Arlington Mid -Rise Section 59 To facilitate an Crescent Residential Amendment amended proposal. (RM) Hughes Surveys' 251-361 Two -Unit Low -Rise To permit a Riverview Drive Residential Residential residential (R2), Park (P) (RL) development and Road right- of-way Notes: 'This application includes a Municipal Plan Amendment which just completed the 30 day public comment period and now must be referred to PAC. STRATEGIC ALIGNMENT While the holding of public hearings is a legislative requirement of the Community Planning Act, it is also a key component of a clear and consistent land development process, which provides transparency and predictability to the development community and City residents. The development approvals process helps fulfill Council's priorities by: E:ii] -6- • 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, services and economic growth. 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 Act. Re-engaging PAC and HDB meetings and Council public hearings also conforms to the Province's declaration that the construction industry is an 'essential service' and has been approved through the service restoration process — ensuring these services are operating within the realm of the Provincial declaration of a State of Emergency. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Common Clerk, Legal, IT, HR, Service Restoration Team, and the Senior Leadership team have been actively engaged and involved in the preparation of the service restoration plans. ATTACHMENTS Attachment 1— Common Clerk referral letter— 251-361 Riverview Drive E -11I April 15, 2020 His Worship Mayor Don Darling And Councillors Your Worship and Councillors SUBJECT: Proposed Municipal Plan Amendment — 251-361 Riverview Drive A Public Presentation was made on March 9, 2020 of a proposed amendment to the Municipal Development Plan which would re -designate on Schedule A of the Municipal Development Plan, a parcel of land with an area of approximately 2734 square metres located at 251-361 Riverview Drive also identified as portions of PID Nos. 55226054, 00415992, 55206411, 55147540 and a portion of Algonquin Place, from Park and Natural Area to Stable Area; and to re -designate, on Schedule B of the Plan, the same parcel of land, from Park and Natural Area to Stable Residential to permit a residential development. The required advertising has been completed, and attached you will find a copy of the public notice; there were no letters of opposition or support received. If Council wishes, it may choose to refer the matter to the Planning Advisory Committee for a report and recommendation and authorize the necessary advertising with a Public Hearing to be held on Monday, June 15' , 2020 via web conference at 6:30 pm, or not to proceed with the proposed amendment process and adopt a resolution to deny the application. Respectfully submitted, Jonathan Taylor Common Clerk (P*-.. SAINT JOHN P.O. Box 1971 Saint John, NB Canada E2L 4L1 I www.saintjohn.ca w CA 1971 Saint John, N. -B. Canada E2L 4L1 E:3j PROPOSED MUNICIPAL PLAN AMENDMENT RE: 251-361 RIVERVIEW DRIVE Public Notice is hereby given that the Common Council of The City of Saint John intends to consider an amendment to the Municipal Development Plan which would: 1. Re -designate on Schedule A of the Municipal Development Plan, a parcel of land with an area of approximately 2734 square metres located at 251-361 Riverview Drive also identified as portions of PID Nos. 55226054, 00415992, 55206411, 55147540 and a portion of Algonquin Place, from Park and Natural Area to Stable Area as illustrated below; 2. Re -designate, on Schedule B of the Plan, the same parcel of land, from Park and Natural Area to Stable Residential. A public presentation of the proposed amendment will take place at a regular meeting of Common Council on Monday March 9, 2020 in the Ludlow Room, 8"' floor of Citv Hall. PROJET DE MODIFICATION DU PLAN MUNICIPAL OBJET: 251- 361 PROMENADE RIVERVIEW Par les presentes, un avis public est donne par lequel le conseil communal de The City of Saint John a Fintention d'etudier la modification du plan d'amenagement municipal comme suit: Modifier la designation, a l'annexe A du plan, des parcelles de terrain d'une superficie d'environ 2734 metres carres, situee au 251-361, promanade Riverview, et portant des parties de NIDs 55226054, 00415992, 55206411, 55147540, et une partie de place Algonquin et afire de la faire passer de parc on aire naturelle a secteur stable, comme it est indique ci-dessous; 2. Modifier la designation, a l'annexe B du plan, des parcelles de terrain precitee, afire de la faire passer de parc on aire naturelle a secteur residentiel stable. Une presentation publique du projet de modification aura lieu lors de la reunion ordinaire du conseil communal le fundi 9 mars 2020 dans la dans la salle Ludlow. 8eme etaae de 1'h6tel de ville. E•191 REASON FOR CHANGE: RAISON DE LA MODIFICATION: To permit a residential development. Permettre le Uveloppement r&sidentiel. Written objections to the proposed amendment may Veuillez faire part au conseil par &crit de vos be made to the Council, in care of the undersigned, objections au projet de modification au plus tard le by April 8, 2020. Enquiries may be made at the 8 avril 2020 a Pattention du soussign&. Pour toute office of the Common Clerk or Growth and demande de renseignements, veuillez communiquer Community Development Services, City Hall, 15 avec le bureau du greffier communal ou le bureau Market Square, Saint John, N.B. between the hours de service de la croissance et du Uveloppement of 8:30 a.m. and 4:30 p.m., Monday through communautaire a Photel de ville au 15, Market Friday, inclusive, holidays excepted. Square, Saint John, N. -B., entre 8 h 30 et 16 h 30 du lundi au vendredi, sauf les jours f&ri&s. Jonathan Taylor, Common Clerk Jonathan Taylor, Greffi&re communale 658-2862 6582862 E:1! 4 v9�vnr PROCLAMATION WHEREAS: Lyme disease is one of the fastest growing infections in Canada; and WHEREAS: the population of ticks, the prime cause of Lyme disease, is growing and expanding in New Brunswick; and WHEREAS: the tick season is also extended due to climate change; and WHEREAS: there is an increasing number of New Brunswickers who are suffering from Lyme disease; and WHEREAS: Lyme disease, if not diagnosed and treated early, can become a debilitating condition, causing extreme fatigue, cardiac and nervous system disorders and/or arthritic symptoms; and WHEREAS: All New Brunswickers would benefit by being more aware of Lyme disease, how it is contracted, what the symptoms associated with Lyme disease are and how to get the prompt medical care needed to avoid illness and suffering. NOW THEREFORE: I, Mayor Don Darling, ?� of Saint John do hereby proclaim the month of May, 2020 as "Lyme Awareness Month" in the City of Saint John. In witness whereof I have set my hand and affixed the official seal of the Mayor of the City of Saint John. E:16'7 PROCLAMATION WHEREAS: Every year nearly one thousand Canadian workers are killed by workplace injuries and many more die from occupational disease; and WHEREAS: Thousands more are permanently disabled; and WHEREAS: Tens of thousands are injured or made ill; and WHEREAS: Concerned Canadians are determined to prevent these tragedies by: • Observing April 281' as a day of mourning to remember these victims of workplace injuries and disease: • Renewing our efforts to seek stronger safety and health protections, better standards and enforcement, and fair and just compensations; and • Rededicating ourselves to improving safety and health in every Canadian workplace. NOW THEREFORE: I, Mayor Don Darling, of Saint John do hereby proclaim April 28, 2020, as a "Day of Mourning" in recognition of workers killed, injured or disabled on the job. In witness whereof I have set my hand and affixed the official seal of the Mayor of the City of Saint John. E:11.1 Alk R Briefing to Common Council 87 City Manger 20 April 2020 Background Background Reasons for Essential Services Model Controlling Costs Initial List of Essential Services Essential Services Evolution Change to Mandatory Order—17 April 2020 Additional Services Under Consideration Recommendation Alk R Briefing to Common Council 97 City Manger 20 April 2020 EMERGENCY MANAGEMENT ONGANIZATNON ORGANISME DE GESTION DES SERVNCES DFURGENCE Saint John EMO COVID-19 Report to Common Council April 20th, 2020 Deputy Incident Commander - Rob Nichol This is the third EOC update to Common Council on the COVID-19 situation and we will follow a similar format as the previous updates. Members of the Command and General staff will give a brief update from their respective areas to give you a sense of how the city is responding and adapting to the COVID-19 crisis. Since the last update the Saint John EMO has remained at partial activation in response to the COVID-19 pandemic. It will remain at partial activation, or enhanced monitoring, as the Province recently renewed the State of Emergency for another 14 days on April 16th. Current confirmed COVID-19 numbers show over 2.4 million cases globally, over 35,000 cases in Canada, 118 cases in New Brunswick, of which 26 are in the Saint John region. We continue to follow the directives of the Chief Medical Officer of Health, Dr. Russell, and the provincial Pandemic task force as we navigate the COVID-19 pandemic. As a result we are seeing encouraging trends in the province of New Brunswick. At this time there have been no deaths in NB related to COVID-19 and latest numbers show only 20 active cases. It is essential that we all continue to follow the restrictions of the State of Emergency to ensure the encouraging trends continue. The EOC objectives have been modified since the last update and now include implementing service restoration plans and planning for a potential flood response should we reach flood stage. The current objectives are: 1. Implement all necessary measures to ensure the safety of the citizens and the employees of the City of Saint John as directed by the Office of the Chief Medical Officer of Health. (Public Health) 2. Ensure critical services are maintained, including public safety services and critical infrastructure. 3. Provide systematic updates to the public, staff, senior leadership, and SJEMO stakeholders on verified information pertaining to the city's response to the pandemic. 4. Implement and review the plan to restore those city services that can be safely re -instated while respecting all of the direction provided by the Chief Medical Officer. 01:3 5. Monitor Riverwatch-2020 projections and prepare to standup flood response resources. Liaison Officer —Josh Hennessey The Liaison Officer is responsible for coordinating all external agencies with Saint John EMO. Since our last briefing several updates have occurred within the Liaison Role: As a collaborative effort, several sites were explored to facilitate the increased demand for the Greater Saint John Emergency Food Program as a result of COVID-19. This program is now serving approximately 105 households and required a larger facility for tractor -trailer deliveries of food and a larger space for physical distancing of volunteers. Upon exploring several sites, which included schools, churches, arenas, the Diamond Jubilee Cruise Terminal was determined the most appropriate site and is currently operational. SJEMO explored several options for temporary bridge solutions to service the Randolph area pending potential flooding for this year. NBEMO, the military and private contractors were all contacted. However, it was best determined that SJEMO will service that area with the same means as years past, based on solution availability and cost. NBEMO, the Office of the Fire Marshall and the Provincial Police Services Unit are currently fielding requests for items related to COVID-19, in particular PPE. To date we have received PPE items such as masks and face -shields to assist in equipping our staff. Public Health opened up a second fully operational assessment site at 84 Ropewalk Lane in addition to the Loch Lomond site. These two sites will serve all of Regional Health Authority Zone 2. In addition, Public Health last week announced they are now able to use rapid field test kits, which are used outside of those two assessment site locations. The rapid field test kits have a turnaround time of approximately 45 minutes and usage is based on direction through the 811 number Public Information Officer to Common Council - Lisa Caissie Our Communication Strategy continues to focus on providing accurate and timely information to the community through our website and social media channels. This includes our own municipal updates, as well as information from the Province and Public Health Officials. We have a number of links available on our website to direct people to official resources that are helpful and of interest. We are handling media inquiries daily, and as required. We thank members of the media for the efforts they have made to reach out to us for official updates, and for the accuracy of their reporting. 06%] Internal communication with our workforce continues to be a priority as well, and we have maintained regular communication with employees through all available mediums. We very much appreciate the efforts you, as a Council and as Mayor and individual Councillors, have made to communicate with the public through the sharing of verified information. We remain well positioned to deliver on our priorities and support the community. Logistics Section Chief — Dan LeBlanc Logistics Sec Similar to the update two weeks ago, the Logistics Section has activated 4 of its 6 units. Again, for expediency I will only provide updates on the two most active units. The Commination Unit has worked through all immediate demands for IT services, phones and remote connectivity; and has established a good pace for supporting Saint John EMO and municipal staff working remotely. Since the COVID-19 Pandemic activation, the Supply Unit as facilitated 42 requests, of which 26 have been completed, 10 remain open and 6 are on hold. The focus of recent supply requests have been for: • Non-medical type masks, as required by WorkSafe NB • Thermometers, for employee wellness checks • Face shields, for EMS calls • Physical Distancing Signage, for our parks As mentioned in the previous update, the number of supply requests are not high, but securing our needs has been challenging, due to global demand for the same or similar products. That said, I would like to share some successes; which are due in part to our community. More specifically, The Estey Group facilitated a 24 hour turn around in supplying non-medical disposable masks to the City of Saint John; Design Art Signs facilitated a 24 hour turn around in producing physical distancing signage for municipal parks; Ms. Judith Irving facilitated a donation to a community group being supported by Saint John EMO's Emergency Social Services Unit; • Although not a Saint John company, Sussex Craft Distillery retooled to produce and supply hand sanitized in smaller size formats, which the City just received its order; and `tell] • Most notable, Irving Blending and Packaging, a division of Irving Oil who also retooled to produce hand sanitizer; and will soon be donating multiple cases of hand sanitizer to Saint John Transit, Saint John Police Force as well a Saint John EMO for internal distributions. Our greater community has certainly stepped up to support Saint John as well as the Province of New Brunswick. I thank Chris Robert of Materials Management for facilitating the position of Logistics Section Chief last week and again this week; and Monic MacVicar for never failing to find a supply solution. Deputy Chief Mike Carr Provided an update on the 2020 Spring Freshet. Since our last council report on flooding, the current flood level projections demonstrate the following: • Water levels in our area are levelling around 3.1m, which is more than 1m below our 4.2m flood level. For reference, even at 4.2m there is little impact on critical infrastructure or areas prone to isolation. • The current 5 -day forecast provided by the Department of Environment and Local Government demonstrates a trend of diminishing flood levels below the Mactaquac Dam that would remove all communities from flood level criteria by week's end. We are currently in a favourable trend of lowering water levels across the region. Conditions of warm days and cold nights appear to be controlling snowmelt. And, if everything stays on target, my estimate is that flooding will not have any significant impact on the Saint John region this season. However, I caution that in 2018 most of the flooding occurred in May. Therefore, since this is a natural occurrence, we are remaining vigilant in our preparations to address any changes, and closely monitoring the situation. In closing, as you have heard in our SJEMO report, this is a very dynamic environment that requires a robust response because we are operating in a period of uncertainty. The excellent work done by our SJEMO Team, representative of all city departments, is indicative of the commitment by our Senior Leadership, staff, and Common Council to protecting the citizens of Saint John. Balancing COVID-19 and flood response is unprecedented, but our training, experience, and commitment have prepared us for these trying times. As the COVID-19 curve begins to flatten, and floodwaters level out, we have to remain diligent in our preparations, and enhancement of our current response actions. To echo Fire Chief Clifford's comments during our operational brief last Friday, we must not let our guard down as complacency makes us vulnerable. The current flood projections are promising, but the impacts from the COVID-19 pandemic are far from over. As we begin our transition to recovery, we must be mindful that recovery is a complex process that also requires a maximum effort. In summary, the dedication of our 4 `to]I SJEMO Team, along with the resilience this community has demonstrated thus far, assures me we will overcome these challenging times. City Manager, John Collin The City Manager stated that the City has now completed day 34 of the essential services model. Although COVID-19 circumstances in Saint John are far better than in other provinces we must not become complacent. That concludes the SJEMO April 20th briefing. WIN Financial Impacts of COVID-1�6 Finance Committee April iNQ Background Municipal Governments are Not Immune The City of Saint John made important financial progress in the past few years with the establishment of policies that created• • that will •.•, to sustainability. Long-TermThe City"s first Plan, unveiled in December presented principles: • Increased Sustainability • Reduced Vulnerability • Long -Term lxi iliy • Accountability importanceThe of • to this plan should not be underestimated especially• THE STEPS TO ACHIEVE SUSTAINABILITY 106 P' SAINT JOHN Importance of the Plan Assumptions `� � �� \ XPIP", \� «. \\}\ \a. 0 G E N E IIA L. (,J N D & I IIA N S 11" ll EV E N I J E 0 $10.0 $8.0 $6.0 $5.0 $4.2 IWIhon �l"'jest Case 0 Gen&4� [�Vnd 11 Frans�t 109 $8.9 Million 2 $10 $M $1-5 $1-0 $M SA I N I K) N WAI Ell IIEVEN(JE Wll�)ACI" $1.1. IWlhon M!,st, C'Cas(,!, isD] $3.3 Whon or Cas(,! Consolidated Financial Impact Assessment: Best Case $5.3M Impact and Worst Case $12.2M Continue with restructuring plan Structural Deficit looms on the horizon; Local Governance Act does not allow the City to operate in a loss position; 1 0 0 0 a 9 =I I AMAIN M N ffs] IN rZ^ KO - N - N - 141 0 'a 161all, WIT"NE1012104"I Minimize Use of Operating Reserves time; preserve flexibility I Take Action to Reduce Financial Risk: (Example, Council Approved Amendment to Discover Saint John Contract); 112(P— SAINT' JOHN General Fund Cost Mitigation Strategy m $0.5 $1.5 $2.5 $3.5 $4.5 $5.5 $6.5 $7.5 $8.5 0 Sa�airies & Beine-fits Puirclhased Goods 0 Regbina� FacMt�es M Outside SeiMces & Fees m Eineirgy, Rep firs & Reinta�s W Firaiiniing, fir vel & Conferences IIIIN Dscoveir SJ Giraints I MEIII M WsceHaineous Millions G -R SAINT' JOHN Saint John Water is Vulnerable 0 Sa�ar�es & Benefts 0 Other Ilurchase d Servkles lllll to Freatryient lant 0 C a Ili it II [�: ito iry 10 Ip e ir.a it li in g i m 1.1 10 Engfineestring PlectrkAty $15 NA Ii II II �i o in s G -R SAINT' JOHN OPMENIM09TITMIll Mel $575,000 Transit Commission . -ordBeaverbrils Arena, �130,Otl Saint John Wate $679,257 MIN City of Saint John, $3,054,775 Ball Fields, Playgrounds, Splash Pads, Suspension of Dangerous buildings Beaches, Green Machine program except for emergency cases No Flower Planting, Reduced Mowing Reduction of heritage and beautification grants by 10% Community Groups & Pro Kids Implementation of Neighborhood Plan Delays (P - SAINT' JOHN Cancellation of 2020-2021 Arena Unidirectional Flushing Program Season Reduction in Asphalt Overlay Program Significant Programming Reduction for & Delays in Capital Programs DiscoverSJ is&,] (P - SAINT' JOHN Conclusion 11 E City Manager Recommendations John Collin 122 City Manager 20 April 2020 Work Undertaken Since Issuance of "Sustaining Saint John — A Three Part Plan" Supporting Material 1• � Caveat Now more than ever...... ***city must improve its competitive advantage SAINT' JOHN The Plan's Introduction MWIR Term • to stress workon •, fronts• go .......... .•• I PaWKS,. I, • .......... Transformational r• • solve structuralIt • . Revenue (Growth) 1 %/year Yea rs 119191 SAIG*T1' 7(7HN $1.70 $1...')o M $0.70 MENEM iiiiiiiiiiiiiiiiiiiiiillillillillillillilliilI IIIIIIERTMUM momom 1111IM11I iiiiiiiiiiiiiiiiiiiiiillillillillillillilliilI IIIIIIIIIIISUM IRENE= 'Jill J, 41 We are not competitive $10 million to address our forecasted operating deficit in 2021 $10 million MORE to achieve Moncton's tax rate or $27 million more to achieve Fredericton's tax rate or $35 million more to achieve Quispamsis tax rate 134( P. ' *LSD property tax rates = Provincial rate of $0,522 1 Applicable LSD rate S'AINI"JOHN Prong 2 —Short -Term Sustainability "Balancing the budget for 2021 and 2022" Identify • Collection of ideas across the organization; including ABCs (over 80) • Ideas • Evaluation of ideas for degree of feasibility • Presentation to Council of over 60 ideas to address the deficit in 2021 and 2022 • Further analysis and preparation of business cases on "m ideas for Council's consideration IIII„ V uu t uu •Analysis of impact based on criteria by a single team, leading to "Heat Map" plotting • Secondary screening of ideas by Council for further consideration • Feedback from Council on each idea to develop plan iRYA (P - SAINT' JOHN • Further analysis on sustainability ideas and continuous Sustainability improvement initiatives: alternatives, impacts, Ideas additional data, benchmarking, feasibility, target • Refinement of selection criteria based on Council's feedback: impact on growth, priority neighbourhoods, recreation, quality of life, safety •SLT workshop to identify ideas that collectively address 55M(revenue and savings: weighed against refined criteria, achievability, data y SLT prioritization of remaining ideas to be considered based on achievability f implementation in 2020 in ' terms oftimeline and target: criteria,f sibilty data W-11 (P - SAINT' JOHN Prong 2 — Short -Term Sustainability Initiatives e Therefore, decision on overall strategy/option must occur by end May 2024 * Initiatives that assure a return by 1 January 2021 If initiatives are problematic because of timing, external influences, or uncertain yields, they cannot form part of the plan to balance the budget 0 Initiatives that are riot definitive will still be pursued and used for tax rate cut in future 9 Acceptance of approach that .... 0 "everyone contributes — everyone does their share" 140 ( P. ' SAINT' JOHN Common Councildecision that 50% of of deficit• be Police $1175k Assigned to Police Commission through notification of budgetary adjustment. Unlikely to be achieved through collective bargaining since Union has requested binding arbitration. Depending on results, likely will result in reduction to size of workforce Local 486 (Inside Workers) $680k Total $5015k Contract in place until end 2021 therefore reduction of 7-9 personnel required Note: Transit workforce contributions to entirety of deficjt4gvill be included as part of ongoing fundamental P% transit review and achieved through collective bargaining and/or reduction in size of workforce S'AINI JOHN 1. Permit and Development Approval Fee Increases $80,000 $80,000 December 2, 2019 2. Permit and Development Approvals, New Fees $35,000 $13,000 February 24, 2020 3. Fire Fees for Service $45,600 $30,000 November 18, 2019 4. Fire Fees for Emergency Response $90,000 $90,000 February 24, 2020 5. Recreation Subsidization $300,000 $260,000 December 16, 2019 6. On -Street Parking Increase $118,000 $118,000 December 2, 2019 7. Pa rki ng Ti cket Increase $123,000 $127,000 December 2, 2019 8. Monthly Parking Increase $116,000 $116,000 December 2, 2019 9. Non -Resident Differential Parking Fee $620,000 $220,000 December 2, 2019 10. Adelaide Street $25,500 $25,500 January 27, 2020 11. Heavy Vehicle Permits $0 $1,000,000 12. Rightsizing Rec Facilities - Rainbow Park Ice $10,000 $10,000 November 18, 2019 13. Rightsizing Rec Facilities - Lawn Bowling $10,000 $10,000 November 18, 2019 14. Arena Closure $155,000 $155,000 December 16, 2019 15. Winter Street Maintenance $347,000 $130,000 December4, 2019 16. Asphalt Overlay Program $200,000 $200,000 February 24, 2020 17. Suspension of Growth Reserve (2021 & 2022) $350,000 $350,000 December 2, 2019 18. Freeze Goods & Services Budget Envelope $200,000 $200,000 December 16, 2019 19. Transit Redesign $2,000,000 $750,000 January 27, 2020 20. Casual Workforce Reduction (Parks & Recreation) $389,000 $100,000 February 24, 2020 21. Casual Workforce Reduction (Works) $182,000 $51,000 February 24, 2020 22. Council Budget Reduction $0 $25,000 (P - SAINT' JOHN Priority Sustainability Options Hopper Plan Stand-by Council Meeting 1 Asphalt Overlay Program (Phase 2) $200,000 $200,000 $150,000 February 24, 2020 2 Passport to Parks $35,000 $0 $35,000 November 18, 2019 3 Non -Resident Differential Parking Fee (Phase 2) $620,000 $220,000 $220,000 December 2, 2019 4 Casual Workforce Reduction (Works) (Phase 2) $182,000 $51,000 $40,000 February 24, 2020 5 Casual Workforce Reduction (Parks & Recreation) (Phase 2) $389,000 $100,000 $89,500 February 24, 2020 6 Grants - Other $45,000 $0 $45,000 December 2, 2019 7 Permit and Development Approvals, New Fees (Phase 2) $35,000 $13,000 $20,000 February 24, 2020 8 Transit Redesign (Phase 2) $2,000,000 $750,000 $250,000 January 27, 2020 9 Playground Program $90,000 $0 $42,000 November 18, 2019 10 Casual Workforce Reduction (Works) (Phase 3) $182,000 $51,000 $91,000 February 24, 2020 11 Casual Workforce Reduction (Parks & Recreation) (Phase 3) $389,000 $100,000 $199,500 February 24, 2020 12 Winter Street Maintenance (Phase 2) $347,000 $130,000 $217,000 December4, 2019 13 Asphalt Overlay Program (Phase 3) $200,000 $200,000 $150,000 February 24, 2020 14 Community Centres $70,000 $0 $68,463 January 27, 2020 15 Grants - Development Incentives and Heritage $300,000 $0 $300,000 December 2, 2019 16 Grants -Community Arts $19,721 $0 $19,721 December 2, 2019 17 Grants -Community Events $16,500 $0 $16,500 December 2, 2019 18 Grants - Event S onsorshi s o I �llmol� � � ti � um ummi m Vmoi Vuu uuuoi a iu Vuuuu iiouu �, $17,500 1 $0 1 $17,500 n , m 1 � u llluu 1� li,o �. Ily „ m II6 muIIIIIIIIIIuloid iu�uuuuuuuuuuuulou��IllVtll 1 December 2, 2019 143 �' ~"' SAINT' JOHN Third Party Contracted Services — Electrical 1 $30,000 Cell Phone Optimization $50,000 Sports Field Lining $10,000 Fire Training Academy $23,000 Reduce Police Fleet Maintenance $50,000 Reduce Police Headquarters Operating $75,000 Building Demolition In -sourcing $36,000 Medical Call Response Criteria $10,000 Translation $23,000 Greening the Fleet $50,000 Fire Training Phase 2 $77,000 Library- West Branch $30,000 Regional Fire Dispatch TBD Reduce Employee Training Related Costs $50,000 Contracted Services $172,000 Administrative Penalties TBD Cost Recovery for City Support at Events $10,000 Fire Insurance Recovery (Fire Marque) $50,000 Leverage Uptown Saint John $25,000 Fleet Optimization $300,000 Other Contract Service —SJE LighU $58,000 (P - SAINT' JOHN Revenue (Growth) 1 %/year Yea rs SAIG*T1' 7(7HN Revenue (Growth) 1 %/year Yea rs SAIG*T1' 7(7HN Prong 1—The Strategic Financial Policies/Plans Prong 1— What's Next for Policies Prong 1—The Reviews Prong 1—Where to Use Funding Adjustments? Review of all Agencies, Boards and Commissions to find efficiencies and to improve effectiveness Transit Operational Review: Objectives AlI-encompassing review, including: • Routes • Schedules • Fleet • Fares • Service Delivery • Staff Functions • Marketing • Technology • Operations and Maintenance 2020 m�°' Task 1: Project Kickoff Task 2: Background Review Ma o dh 2020 Task 3: Stakeholder Engagement Task 4: Visioning, Strategy, and Objectives Task 5: Service Delivery Evaluation Task 6: Internal Operations Evaluation Task 7: Structural Assessment Task 8: Operating Cost Modeling August 2020 (..) Task 9: Final Report ® Stantec SAINT'JOHN TRANSIT "`' 156 SAINT' JOHN r-1111 100JARM IM a HIM Wiff 'NIVOINUOIN LILCUL PQJIMAIIW;� ' Stakeholder input to identify community needs (on-going focus groups, rider outreach, public open house) EMEEM= Strategic approach to support growth and a vibrant, saTe city Transit Review — Minimum Requirements Structure Review City Manager Common Clerk General Counsel CommissionerCommissioner Commissioner Commissioner Chief of Staff and Growth & Transportation of Public Safety Utilities and Chief Financial Community Services & Public Works and Fire Chief infrastructure Officer Communications Director Innovation, 0 Director Strategic0Commissioner Customer Service and CIO Affairs Human Resources Manager Integrated Customer Service Centre New Structure Achieves ....... Inside Workers (Local 486) 110 3.25 short-term casuals 101 9 FTEs $826,565 2020 Budget $9,819,529 $2,482,029 $1,669,320 $13,970,878 Anticipated 2021 Costs $9,164,141 $2,336,856 $1,557,904 $13,058,901 2020 Budget Anticipated 2021 Costs $7,218,155 $6,619,199 $1,813,682 $1r;:687,896 $1,227,086 $10,258,924 $1,125,264 $9,432,359 Regional ilii 0 E t iriirma ll audit o irn p�let Imperial- Asked "'TIlli atiir to Iprovide firn a t of irnodest,to cornp1lete ir tioirm firm subsidy irmalllysis oirmgofing • TID Station ($602k) 0 E l iir ssioirms of hrmt iir st oirnp�let . Canfideirrt4ll direct firm gotiatians cormirnenced • Aquatic Centre () 0 E l iir ssioirms of hrmt iir st oirnp�let . Canfideirrt4ll direct firm gotiatians cormirnenced 311111111MM irmalllysis oirmgofing • City Manager aspirational target...... • Reduction in total costs of minimum of 50%, equating to savings of $1.2 million annually while maintaining operation of all regional facilities • Secondary benefit to outlying municipalities — who would in turn pay less • Details to follow, timeline unknown • COVID-19 impact possible iW (P - SAINT' JOHN Review of our Economic Development Framework to achieve better alignment and synergy amongst the various stakeholders F -R F -R V.7.1006111150"em M. Three parts • Benchmarking • Key challenges • Operational efficiencies Minor slippage to timeline • Key Findings • Draft Report • Final Draft Report • Final Report 28 Feb 2020 19 Mar 2020 31 Mar 2020 17 Apr 2020 (Province to officially release report once translated) 0 Province and City fully engaged in feedback process • Significant undertaking for City staff due to data collection requirements and validation obligations 0 Tremendous support to project •Overall, City staff substantialIly supportive of It report • Sincere thanks to effort, et it and professioq%�srn displlayed but It to from EY ( p, SAINT' JOHN EY Audit Results EY Audit EY Audit — recommendation to implement a small number of larger changes rather than a large number of smaller projects. Operational Audit — Next Steps • Saint John Energy • Independent audit (Deloitte) • Two main objectives • Validate the growth agenda • Determine total value of the asset • Reports on the two objectives completed • Options • Status quo, and enable growth agenda • Sell the utility • Increase rates and flow dividend to property tax reduction 175 �' ~"' SAINT' JOHN SJE — Option #1 SJE — Option #2 SJE — Option #3 SJE — Next Steps Prong 3 —Transformational Reforms Quispamsis Assessment: $234,600 Saint John MIN Assessment: $183,200 SAIG*T1' 7(7HN Prong 3 —Transformational Reforms 90.0% 80.0% 70.0% 20.0% 001", oll, 00�1, . ....... UIIII. . . �oNooloM111�110 OOuJpO1011l JJ 10.0%m�rmmAl* 0.0% 4 5 6 '7 8 9 10 18411 12 13 14 15 1.6, 17 Is 19 Year since 2004 An Adjunct to Prong 3 -Regional Management Task Force Useful discussion i , improve regional identify JIM III lilliq 111111 initiatives there • Next step was to be...... • Provincial commitment to "re -assess" March 2020 • Delayed due to COVID-19 iF:1Fl (P- SAINT' JOHN Third -Party Regional Analysis Costs as Regional Hub Costs as Regional Hub Costs as Regional Hub Staff Recommendations e Toll designed to capture costs of work commuters on daily basil • toll •!• installed • •,. routes into the city — • • exit • e Tolls active from 5am to 9:30am daily e Saint John residents receive free pass e Non-residents can purchase monthly discounted pass e Approximate fee of $2 per use when tolls active Total income (revenue minus costs) limited to approximately $4- $5 million Should • affect those entering City to use regional facilities, hospitals, restaurants or commercial/business enterprises i RIZI 1 1 SAINT' JOHN Saint John Levy Costs of being Province's Heavy Industrial Base Quispamsis Assessment: $234,600 Saint John Assessment: $183,200 76 197 -~ SAIG*T1' 7(7HN Costs of being Province's Heavy Industrial Base Staff Recommendations BE# N What Could be Done with $17 Million? Next Steps We Have a Plan Conclusion Recommendation John Collin 211 City Manager 20 April 2020 Sustainability Plan - Prong 2 ($5 Million) Sustainability Options ommm 1. Permit and Development Approval Fee Increases Hopper $80,000 Plan $80,000 2. Permit and Development Approvals, New Fees $35,000 $13,000 3. Fire Fees for Service $45,600 $30,000 4. Fire Fees for Emergency Response $90,000 $90,000 5. Recreation Subsidization $300,000 $260,000 6. On -Street Parking Increase $118,000 $118,000 7. Parking Ticket Increase $123,000 $127,000 8. Monthly Parking Increase $116,000 $116,000 9. Non -Resident Differential Parking Fee $620,000 $220,000 10. Adelaide Street $25,500 $25,500 11. Heavy Vehicle Permits $0 $1,000,000 12. Rightsizing Rec Facilities - Rainbow Park Ice $10,000 $10,000 13. Rightsizing Rec Facilities - Lawn Bowling $10,000 $10,000 14. Arena Closure $155,000 $155,000 15. Winter Street Maintenance $347,000 $130,000 16. Asphalt Overlay Program $200,000 $200,000 17. Suspension of Growth Reserve (2021 & 2022) $350,000 $350,000 18. Freeze Goods & Services Budget Envelope $200,000 $200,000 19. Transit Redesign $2,000,000 $750,000 20. Casual Workforce Reduction (Parks & Recreation) $389,000 $100,000 21. Casual Workforce Reduction (Works) $182,000 $51,000 22. Council Budget Reduction Bd aU. 1111 Projected • Saving $0 $6,525,100 $25,000 $5,189,500 Hopper Value - Target endorsed by Council as each idea was presented for consideration Plan - Sustainability ideas recommended for implementation to address the deficit in 2021 / 202: Page 1 212 1. Permit and Development Approval Fee Increases Description Proposes adjustments to existing fees that align with the Consumer Price Index (CPI). The majority of fees have not been increased for 8-10 years, with some others up to 20 years. The proposed fee structure will be simplified to address fee irregularities for ease of application, fairness, and improved process. Applicable by-laws will need to be amended and approved by Council to implement the fee increases. Original Target (as presented to Mayor and Council, December 2, 2019) $80,000 (Revenue) Revised Target No change Adjustment Explanation Not applicable Impacts The impact is mainly one of perception that increasing fees is contrary to supporting growth. For example, the average new home in Saint John is valued at $190,000; the current building permit fee is $1,725, versus the proposed new fee of $1,811— representing an increase of $86. PA 191 2. Permit and Development Approvals, New Fees Description Proposes the implementation of new fees that align with other municipalities and recover a portion of service delivery costs. The plan proposes that only new fees related to electrical waivers and other miscellaneous service offerings be considered. Original Target (as presented to Mayor and Council, February 24, 2020) $35,000 (Revenue) Revised Target $13,000 Adjustment Explanation To remain more in line with comparators, heritage and pre -application meeting fees have been removed from the original target. Impacts The impacts are primarily one of perception in that new fees are contrary to supporting growth. Most municipalities (Moncton, Quispamsis, Rothesay) and Regional Service Commissions charge a fee to issue an electrical waiver; however, the City's Building By-law does not currently charge a fee for this service. PAIL'! 3. Fire Fees for Service Description Proposes recovering costs related to service response to False Alarm Activations, invalid Fire Alarm and Suppression Systems, Stand -By Services, Non -Fire Service Requests, and Non -Emergency Rapid Entry System Access. Liquor Licence inspection for Special Occasions and Events will not be included for recovery, as they are not for profit. Original Target (as presented to Mayor and Council, November 18, 2019) $45,600 (Revenue) Revised Target $30,000 Adjustment Explanation Full scope of recoverable fees has been changed based on feedback from the Office of the Fire Marshal (Public Safety). Not-for-profit Liquor Licence and Not-for-profit Occupancy inspections would not be endorsed for fee recovery by the Office of the Fire Marshal, which is an endorsement that would be required to proceed. Impacts There is a potential minor impact on the number of reported emergencies due to perception of billing. PAN'7 4. Fire Fees for Emergency Response Description Proposes recovering costs related to a variety of fire related incidents. Service offerings where fees would apply include fire rescue and suppression, hazardous materials response (within the city), technical rescue, motor vehicle accidents, and other agency response requests, with a focus on commercial and industrial incidents and those involving non-residents. It is recommended that within the proposed by-laws required to implement these fees, a clause be included that provides for discretion by the Fire Chief to be applied in billing for fees. This would include applying fees to Saint John residents for incidents such as thrill -seeking, recklessness, and neglect. Original Target (as presented to Mayor and Council, February 24, 2020) $90,000 (Revenue) Revised Target No change Adjustment Explanation Not applicable Impacts There is a potential minor impact on number reported emergencies due to perception of billing. 5. Recreation Subsidization Description Focuses on revenue generation to recover operating costs for recreation facilities in accordance with the Recreation Subsidization Policies approved by Common Council in December of 2019. The projected revenue does not include non-resident user fees. Original Target (as presented to Mayor and Council, December 16 2019) $300,000 (Revenue) Revised Target $260,000 Adjustment Explanation Council has endorsed a Subsidization Policy for cost recovery percentages. • Summer 2020 Sports Fields, Arena Floor, and Tennis Rates have been approved by Council - projected revenue of $160,000. • 2020-2021 Season Rates for Arena Ice requires Council approval - projected revenue $100,000. Impacts While there is an increased cost to users, the impact is being mitigated through a phased approach to implementation. Sports fields, arena floor, and tennis court rate increases will be phased in over 3 years (2020, 2021, 2022). Arena ice will be phased in over 2 years (2021, 2022). PAIN 6. On -Street Parking Increase Description Increase on -street parking in the amount of twenty-five cents per hour. In addition, this initiative also proposes a new approach for on -street parking in the South Central Peninsula and other areas of the city. This may include potentially expanding metered parking areas and adjusting rates based on parking demand. This proposed approach is similar to current practices in Moncton and Halifax. Original Target (as presented to Mayor and Council, December 2, 2019) $118,000 (Revenue) Revised Target No change Adjustment Explanation No applicable Impacts Further consultation is required to address potential impacts on business in the Uptown core. PAF -11 7. Parking Ticket Increase Description Proposes that all Parking Meter and Traffic By-law violations increase. This increase aligns with ticket amounts in Fredericton, Moncton and Halifax. It should be noted that fees in Saint John have not been increased since 2012. Original Target (as presented to Mayor and Council, December 2, 2019) $123,000 (Revenue) Revised Target $127,000 Adjustment Explanation Based on 2019 actuals. Impacts No Impacts 8. Monthly Parking Increase Description Increase to monthly parking of 10%, under the authority of the Parking Commission and will be effective April 1, 2020. The Saint John Parking Commission manages 2,100 parking spaces in 27 parking lots under 22 lease agreements (property is not owned by the City of Saint John, aside from spaces located in the Market Square parking garage). The City is working with the Commission to develop a mechanism to allocate additional revenue to the City based on services provided to the Commission. Original Target (as presented to Mayor and Council, December 2, 2019) $116,000 (Revenue) Revised Target No change Adjustment Explanation Not applicable Impacts No Impacts RX91 9. Non -Resident Differential Parking Fees Description Proposes a 50% rate increase to monthly parking for non-residents. It is estimated that 40% of monthly parking spaces are occupied by non-residents. The City is working with the Commission to develop a mechanism to allocate additional revenue to the City based on services provided to the Commission. Original Target (as presented to Mayor and Council, December 2, 2019) $620,000 (Revenue) Revised Target $220,000 Adjustment Explanation The original target was based on the total revenue received from monthly parking and then doubling rates for the portion of revenue corresponding to the percentage of non-residents. Using monthly parking data to determine the specific location and associated rate of non-resident parkers provided for a more accurate forecast. The revised target of $220,000 represents a 50% increase for non-resident monthly parkers utilizing more precise data (using specific lot rates). Impacts No current mechanism requiring Saint John Parking Commission to flow revenue to the City's General Operating Fund. The Parking Commission has the authority to implement differential parking fees, provided Council adopts the distinction between residents and non-residents; this distinction is provided for in the Local Governance Act. 221 10. Adelaide Street Description Council approved a lease agreement with Housing Alternatives to rent first floor space in the main building at 171 Adelaide Street, as well as an out -building. Parks and Recreation staff have been relocated to the second floor. Base building work has been completed by the City, including a new access location for customers of Parks and Recreation. The full revenue is inclusive of rent and utilities. Original Target (as presented to Mayor and Council, January 27, 2020) $25,500 (Revenue) Revised Target No change Adjustment Explanation Not applicable Impacts The new access location for customers of Parks and Recreation may also change with the opening of new City Hall space. 0% 11. Heavy Vehicle, Oversized Load and Overweight Vehicle Permits Description Proposes processes and by-laws around managing oversized and/or overweight loads on city streets, in conjunction with the Province. This would involve implementing a permitting process in accordance with provincial legislation. Estimated revenue takes into consideration the investment to implement this initiative in terms of enforcement, administration, and technology requirements. Original Target (not yet presented to Mayor and Council for hopper consideration) $1,000,000 (at minimum) (Revenue) Revised Target No change Adjustment Explanation Not applicable Impacts Positive impact to service delivery by reducing turnaround time to approve variances to current weight restrictions. Alignment with provincial permitting system and shared strategy on protecting infrastructure. NOW 12. Rightsizing Recreation Facilities — Rainbow Park Ice Description Proposes elimination of this service offering. Since first presented to Council for consideration, staff has completed several attendance audits and confirmed very low usage. Through January and February of 2020, City staff completed audits over 41 days, visiting the ice surface several times each day. On over half of those occasions, there were no users and on only four visits were there more than five people at the ice surface. Original Target (as presented to Mayor and Council, November 18, 2019) $10,000 (Savings) Revised Target No change Adjustment Explanation Not applicable Impacts Reduction in free seasonal recreation service; however, data indicates low usage. i•1zI 13. Rightsizing Recreation Facilities — Lawn Bowling Description Proposes closure, or move to a 'Community Model', of the facility at Seaside Park, based on: a Lawn Bowling club membership of only 55; annual operating subsidies provided by the City; infrastructure the City may need to continue to invest in; and no revenues received by the City. The Lawn Bowling Association has expressed an interest in this facility. Original Target (as presented to Mayor and Council, November 18, 2019) $10,000 (Savings) Revised Target No change Adjustment Explanation Not applicable Impacts Discontinued free recreation service; however, a 'Community Model' would enable service to be maintained. pati 14. Arena Closure Description Proposes the closure and divestment of one of the four arenas that are owned and operated by the City of Saint John. The specific arena will be chosen based on Develop Saint John analysis of best value and user group consultation. Closure of one arena aligns with Play SJ recommendations and demand can be accommodated in the three remaining arenas. The savings are related to operations and consider a modest reduction in revenue. Original Target (as presented to Mayor and Council, December 16 2019) $155,000 (Savings) Revised Target No change Adjustment Explanation Not applicable Impacts Reduction in number of arenas; however, still within PlaySJ rightsizing recommendations. WOU 15. Winter Street Maintenance Description Proposes a modification of the day and night shift compliment that will result in a more balanced response to snow events. It should be noted that the savings from this initiative are primarily related to elimination of three single -use pieces of equipment and improved utilization of multi -use equipment. Original Target (as presented to Mayor and Council, December 4, 2019) $347,000 (Savings) Revised Target $130,000 Adjustment Explanation Retain loaders and remove only allocated 6 -yards. This will mitigate service impacts due to specialized loader capabilities. Unchanged is the balancing of day and night shift activities, which will decrease overtime requirements. Impacts Reduced target will allow for efficient completion of snow removal tasks best performed by loaders and allow for flexibility in equipment allocation. The proposed plan will still allow for a more balanced service delivery between the day and night shifts and less overtime. NOW 16. Asphalt Overlay Program Description This program is a resource intensive process that is typically completed on roads that already require full reconstruction in rural and low traffic areas. Suspending this program by 2.8% (annual asphalt budget is $7.1 Million) will divert resources to preventative maintenance activities such as local drainage projects, asphalt patching, and repairs in high traffic areas that will have an impact on extending the life -span of those street. Original Target (as presented to Mayor and Council, February 2-4,2020) $200,000 (Savings) Revised Target No change Adjustment Explanation Not applicable Impacts No impact, as efforts will be redirected to other necessary improvements including ongoing street repairs and local drainage. There will be an increase to the amount of patching on higher priority roads. PIM] 17. Suspension of Growth Reserve (2021 and 2022) Description Proposes the suspension of annual contributions in 2021 and 2022. This Reserve was developed to support the transition of a variety of changes as a result of the Roadmap for Smart Growth. The intention of the Reserve was to enhance the City's ability to more comfortably respond to unforeseen economic obstacles or accelerate opportunities. Original Target (as presented to Mayor and Council, December 2, 2019) $350,000 (Savings) Revised Target No change Adjustment Explanation Not applicable Impacts While this may reduce the City's ability to respond to unforeseen challenges and opportunities, it is important to recognize that the fund has a balance of uncommitted funds. Wel 18. Freeze Goods and Services Envelope Description Proposes the continued freeze on goods and services budget envelopes for 2021 and 2022. This means no increase related to future Consumer Price Index (CPI) adjustments. For those items that have to increase for service area operations, reductions must be found to other budget lines within that service area. Original Target (as presented to Mayor and Council, December 16 2019) $200,000 (Savings) Revised Target Not Applicable Adjustment Explanation Not Applicable Impacts Impact for each service area is forecasted to be manageable. Asset management envelopes are not to be impacted by this initiative. I•4c191 19. Transit Redesign Description Service improvements will be realized by focusing on innovative ways to deliver transit services, with a particular focus on main routes and priority neighbourhoods. A third -party operational audit, as approved by Council and awarded to Stantec in January 2020, will exam all transit operations to find savings through efficiencies. Original Target (as presented to Mayor and Council, January 27, 2020) $2,000,000 (Savings) Revised Target $750,000 Adjustment Explanation The consultant is early in the review process; however, having completed a number of stakeholder engagements including a public open house and working through all the background information, a revised target has been provided for this initiative. Impacts Minimize the impact in order to maintain or improve service offerings in key areas while achieving a cost-effective service for the public. The primary focus will be on main routes where ridership is highest and routes providing access to the transit system in the City's priority neighbourhoods. There will also be a focus on internal operations that will not have a direct impact on the public. 231 20. Casual Workforce Reduction (Parks and Recreation) Description Proposes a reduction of five casual employees in Parks and Recreation. In 2019, 38 casuals were hired to complement the permanent workforce during peak operational periods. Original Target (as presented to Mayor and Council, February 24, 2020) $389,000 (Savings) Revised Target $100,000 Adjustment Explanation Original target represented a reduction of 18 casual staff, plus savings from elimination of 4 rental vehicles and estimated revenue loss of $10K. Revised target includes savings from wages only (5 staff), with savings from elimination of 1 rental vehicle offset by potential revenue loss related to sports field bookings. Impacts This may result in a reduction in mowing, primarily on provincial lands, underutilized Land for Public Purposes (LPP), and low -profile medians. 09% 21. Casual Workforce Reduction (Works) Description Proposes a reduction of two casual employees in Transportation and Environment Services' Works Division. In 2019, 16 casuals were hired to complement the permanent workforce during peak operational periods. Original Target (as presented to Mayor and Council, February 2-4,2020) $182,000 (Savings) Revised Target $51,000 Adjustment Explanation Original target represented a reduction of 8 casual employees ($160,000), and the elimination of 2 rental vehicles ($22,000 includes fuel). The revised target includes the reduction of 2 casual employees ($40,000) and the elimination of 1 rental vehicle ($11,000 includes fuel). Impacts The reduction of 2 casual employees would have minimal impact on the summer operations of Transportation and Environment Services' Works Division. P49191 22. Council Budget Reduction Description Proposes a reduction in the budgets designated for the Mayor's Office and Common Council with historical surpluses. In addition, through benchmarking against other municipalities, it was determined that implementation of a ticket policy and catering policy should be implemented. Original Target (not yet presented to Mayor and Council for hopper consideration) $25,000 (Savings) Revised Target No change Adjustment Explanation Not applicable Impacts Based on historical surpluses, a reduction is achievable. WE Asphalt Overlay Program (Standby Items — #1 and #13) Description This program is a resource intensive process that is typically completed on roads that already require full reconstruction in rural and low traffic areas. Suspending this program will divert resources to preventative maintenance activities such as local drainage projects, asphalt patching, and repairs in high traffic areas that will have an impact on extending the life -span of those street. Original Target (as presented to Mayor and Council, February 2-4,2020) $200,000 (Savings) Revised Target Sustainability00 000 11110 11111111 11110 1. mtia 11m TOTAL $500,000 Adjustment Explanation Standby Item — #1: Suspending this program by an additional 2.1%, for a cumulative reduction of 4.9% (annual asphalt budget is $7.1 Million). Standby Item — #13: An additional 2.1% suspension, for a cumulative reduction of 7.0% (annual asphalt budget is $7.1 Million). This represents a full suspension of the program. Impacts No impact, as efforts will be redirected to other necessary improvements including ongoing street repairs and local drainage. There will be an increase to the amount of patching on higher priority roads. During timeframe of 2021-2022, these reductions are sustainable. I•49191 Passport to Parks (Standby Item — #2) Description Proposes a suspension of funding for 'Passport to Parks'. This initiative was established in 2014 with the purpose of showcasing the assets and natural resources of our regional and district parks, while promoting inclusion and healthy, active living. Original Target (as presented to Mayor and Council, November 18, 2019) $35,000 (Savings) Revised Target Sustainability TOTAL $35,000 Adjustment Explanation Not applicable Impacts 'Passport to Parks' events would be suspended in 2021-2022. 091-1 Non -Resident Differential Parking Fee (Standby Item — #3) Description Proposes an additional rate increase to monthly parking for non-residents. It is estimated that 40% of monthly parking spaces are occupied by non-residents. The City is working with the Commission to develop a mechanism to allocate additional revenue to the City based on services provided to the Commission. Original Target (as presented to Mayor and Council, December 2, 2019) $620,000 (Savings) Revised Target Sustainability000 TOTAL $440,000 Adjustment Explanation The original target was based on the total revenue received from monthly parking and then doubling rates for the portion of revenue corresponding to the percentage of non-residents. Using monthly parking data to determine the specific location and associated rate of non-resident parkers provided for a more accurate forecast. Standby Item — #3: The target of $220,000 represents an additional 50% rate increase for non- resident monthly parkers (representing a doubling of original rates). Impacts No current mechanism requiring Saint John Parking Commission to flow revenue to the City's General Operating Fund. The Parking Commission has the authority to implement differential parking fees, provided Council adopts the distinction between residents and non-residents; this distinction is provided for in the Local Governance Act. I•49YA Casual Workforce Reduction (Works) (Standby Items — #4 and #10) Description Proposes a further reduction of casual employees in Transportation and Environment Services' Works Division. In 2019, 16 casuals were hired to complement the permanent workforce during peak operational periods. Original Target (as presented to Mayor and Council, February 2-4,2020) $182,000 (Savings) Revised Target Sustainability000 TOTAL $182,000 Adjustment Explanation Original target represented a reduction of 8 casual employees ($160,000), and the elimination of 2 rental vehicles ($22,000 includes fuel). This target would still be achieved if both Standby Items were implemented. The revised target for 'Sustainability Plan Item' includes the reduction of 2 casual employees and the elimination of 1 rental vehicle. Standby Item — #4: Reduction of workforce by 2 additional casual employees; a cumulative reduction of 4 employees and 1 vehicle. Standby Item —#10: Reduction of workforce by 4 additional casual employees and the elimination of 1 additional rental vehicle; a cumulative reduction of 8 employees and 2 vehicles. Impacts The reduction of casual employees would result in a reduction of capacity of many areas of Transportation and Environment Services' Works Division summer operation. This could result in a longer response time to citizen requests. P4c1:3 Casual Workforce Reduction (Parks and Recreation) (Standby Items — #5 and #11) Description Proposes a further reduction of casual employees in Parks and Recreation. In 2019, 38 casuals were hired to complement the permanent workforce during peak operational periods. Original Target (as presented to Mayor and Council, February 24, 2020) $389,000 (Savings) Revised Target Sustainability00 000 11111111 mtiamtia 10 TOTAL $389,000 Adjustment Explanation Original target represented a reduction of 18 casual employees ($360,000), and the elimination of 4 rental vehicles ($39,000 includes fuel). This target would still be achieved if both Standby Items were implemented. The revised target for 'Sustainability Plan Item' includes the reduction of 5 casual employees, with savings from elimination of 1 rental vehicle offset by potential revenue loss related to sports field bookings. Standby Item — #5: Reduction of workforce by 4 additional casual employees and the elimination of 1 additional rental vehicle; a cumulative reduction of 9 employees and 2 vehicles. Standby Item —#11: Reduction of workforce by 9 additional casual employees and the elimination of 2 additional rental vehicles; a cumulative reduction of 18 employees and 4 vehicles. Impacts Standby Item —#5: Further reductions in mowing, sports field bookings, and work on ASD -South sports fields and potentially 1-2 City sports fields. Standby Item —#11: Reduced maintenance levels at City parks, reduction of ornamental flower and hanging basket programs, longer response time for tree work, and impacts to operation of neighbourhood playgrounds. 0910.1 Grants — Other (Standby Item — #6) Description Proposes elimination of grant funding for the Horticultural Association and Mispec Beach. Original Target (as presented to Mayor and Council, December 2, 2019) $45,000 (Savings) Revised Target Sustainability Plan Item N/A miv Wi til =1111�11754.ill TOTAL 1 $45,000 Adjustment Explanation Not applicable Impacts Elimination in funding for the Horticultural Association and Mispec Beach. The full impact of the elimination of this funding would require consultation with these organizations. These organizations could potentially be considered for funding through the Community Grants program. Q11K Permit and Development Approvals, New Fees (Standby Item — #7) Description Proposes the implementation of new fees to recover a portion of service delivery costs. The new fees presented in this Standby Item are related to: heritage permits and pre -application meeting fees. Original Target (as presented to Mayor and Council, February 24, 2020) $35,000 (Revenue) Revised Target SustainabilityPlan Item $13,000 9m1� u��i �o � � �lahuw� i� mti4 mtis mti4mti4 TOTAL $33,000 Adjustment Explanation Original target reduced by $2,000 upon further analysis. The Heritage Service area within Growth and Community Development provides program support and service to 11 heritage conservation areas and 555 heritage -designated properties. The proposed cost recovery is less than 5% of the total Heritage budget. Pre -application meetings require review and analysis from a number of senior staff due to the complexity of the files. On average, 27 meetings per year are held, with only 13 proceeding to a formal application. Based on this average, it is estimated that $13,000 per year could be realized in new fees. It is proposed, if an application is made within a year from the meeting, the fee could be credited toward the Building Permit Application. Impacts Heritage Permits — Perception of being contrary growth and to be in line with comparators. It should be noted Saint John has a much larger inventory of heritage properties than our comparators. Pre -Application Meeting Fees — Proposing a similar structure to other municipalities — an upfront fee with a reduction of the building permit fee if an application is made within a year from the meeting. Transit Redesign (Standby Item — #8) Description Service improvements will be realized by focusing on innovative ways to deliver transit services, with a particular focus on main routes and priority neighbourhoods. A third -party operational audit, as approved by Council and awarded to Stantec in January 2020, will exam all transit operations to find savings through efficiencies. Original Target (as presented to Mayor and Council, January 27, 2020) $2,000,000 (Savings) Revised Target Sustainability Plan Item 000 ti �o m m y io IdiM �ti4 II 11110 11111111 11110 TOTAL $1,000,000 Adjustment Explanation The consultant is early in the review process; however, having completed a number of stakeholder engagements including a public open house and working through all the background information, a revised target has been provided for this initiative. Would involve refinement of scope to find further efficiencies in order to achieve an additional $250,000 in savings. Impacts Minimize the impact in order to maintain or improve service offerings in key areas while achieving a cost-effective service for the public. The primary focus will be on main routes where ridership is highest and routes providing access to the transit system in the City's priority neighbourhoods. There will also be a focus on internal operations; however, there may be some impacts on the public. Q11N Playground Program (Standby Item — #9) Description Proposes a reduction in funding for the Playground Program. The City of Saint John's Parks and Recreation Department offers this free summer program for children ages 6-12 at various locations throughout the city and provides support for additional playground locations operated by third parties. Original Target (as presented to Mayor and Council, November 18, 2019) $90,000 (Savings) Revised Target Sustainability Plan Item N/A m1ui �o � ,u �,$�" huw� � piW mtis mti4mti4 TOTAL $42,000 Adjustment Explanation Original target represented a full elimination of the Playground Program. Revised target is for a reduction from 6 City -operated sites to 3 sites, while maintaining same level of support for sites operated by third parties (primarily located in priority neighbourhoods). Impacts Less City -operated sites means some participants may need to travel farther to attend program. Winter Street Maintenance (Standby Item — #12) Description Proposes a further reduction of equipment in Transportation and Environment Services' Works Division, including loaders and other miscellaneous winter equipment. Original Target (as presented to Mayor and Council, December 4, 2019) $347,000 (Savings) Revised Target Sustainability Plan Item 000 iu��i �o 1 ViW �u�` iu IC W° mtis mti4 mti4 TOTAL $347,000 Adjustment Explanation Original target represented the removal of three 6 -yard trucks and the modification of the day and night shift complement that would result in a more balanced response to snow events. This Standby Item represents the removal of 6 loaders and other miscellaneous winter operations equipment. Impacts Removal of additional equipment will have an effect on service delivery for peak -time snow events, as well as impact post -storm push back and snow removal. Community Centres (Standby Item — #14) Description Proposes a reduction in funding of the primary community centres supported by the City, which are as follows: Carleton Community Centre; Irving Oil Field House Community Centre; Millidgeville Community Centre; Nick Nicolle Community Centre; and, South End Community Centre. Original Target (as presented to Mayor and Council, January 27, 2020) $70,000 (Savings) Revised Target Sustainability Plan Item N/A TOTAL $68,463 Adjustment Explanation Irving Oil Field House Community Centre programming and attendance numbers comparable to Millidgeville Community Centre; recommend Field House funding be reduced to match MCC. Remainder of target distributed in proportion to current funding levels (— 6.6% reduction for remaining centres). Impacts Some adjustments to programming may be required. Grants — Development Incentives and Heritage (Standby Item — #15) Description Proposes a suspension of Development Incentives and Heritage Grants. These grants relate to the Central Peninsula. Original Target (as presented to Mayor and Council, December 2, 2019) $300,000 (Savings) Revised Target Sustainability Plan Item N/A TOTAL $300,000 Adjustment Explanation Not applicable Impacts Potential impact on growth momentum in the South Central Peninsula. Grants — Community Arts (Standby Item — #16) Description Proposes a reduction of the Community Arts Funding Program, with the remaining envelope reallocated to the Community Grants Program. The Community Arts Funding Program offers project support for non-profit organizations or groups providing quality arts activities in any discipline of the creative arts. Original Target (as presented to Mayor and Council, December 2, 2019) $19,721 (Savings) Revised Target Sustainability Plan Item N/A TOTAL $19,721 Adjustment Explanation Not applicable Impacts The current envelope for the Community Arts Funding Program is $50,000. This initiative proposes reallocating $30,279 of that envelope into the Community Grants Program. Although the Community Arts Funding Program would no longer exist, organizations or groups that previously applied to that program would have the opportunity to apply for funding through the Community Grants Program. This initiative would result in a reduction in funding available for groups and organizations. QUIN Grants — Community Events (Standby Item — #17) Description Proposes a suspension of Community Events Grants, which offer support for events the community can participate in, such as fireworks (Canada Day, New Year's celebrations) and Remembrance Day. Original Target (as presented to Mayor and Council, December 2, 2019) $16,500 (Savings) Revised Target Sustainability Plan Item N/A it uh �u ^IV III" w�4'u ;'I til 11111111 TOTAL $16,500 Adjustment Explanation Not applicable Impacts Reduction in funding available for events in the community (e.g., Remembrance Day ceremonies, fireworks). fPz1:3 Grants — Event Sponsorships (Standby Item — #18) Description Proposes a suspension of Event Sponsorship Grants, which support one-time events as a result of a Council resolution. Original Target (as presented to Mayor and Council, December 2, 2019) $17,500 (Savings) Revised Target Sustainability Plan Item N/A ��1�u �� <iw� uu mtiamtia 16 TOTAL $17,500 Adjustment Explanation Not applicable Impacts Groups and organizations providing community events would need to apply to the Community Grants Program (e.g., ECMAs, Acadian Games). Appendix: Option Criteria Evaluation 100 80 40 20 0 Sustainability Options based on Impact and Financial Target 0 1 2 3 4 5 Financial Target Options considered Growth & Prosperity; Vibrant, Safe City; and Valued Service Delivery Note: Proposed options to address the 2021 and 2022 deficit. Sustainability Options Evaluated as of April 20, 2020 (Not including Continuous Improvement Items) 1. Permit and Development Approval Fee Increases 2. Permit and Development Approvals - New Fees 3. Fire Fees for Service 4. Fire Fees for Emergency Response 5. Recreation Subsidization 6. On -Street Parking Increase 7. Parking Ticket Increase 8. Monthly Parking Increase 9. Non -Resident Differential Parking Fee 10. Adelaide Street 11. Heavy Vehicle Permits 12. Rightsizing Recreation Facilities - Rainbow Park PIR191 13. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling 14. Arena Closure 15. Winter Street Maintenance 16. Asphalt Overlay Program 17. Suspension of Growth Reserve (2021 & 2022) 18. Freeze Goods & Services Budget Envelope 19. Transit Redesign 20. Casual Workforce Reduction (Parks & Recreation) 21. Casual Workforce Reduction (Works) 22. Council Budget Reduction Appendix: Option Criteria Evaluation 100 80 60 U M Q E 40 20 0 Sustainability Standby Options based on Impact and Financial Target 0 1 2 3 4 5 Financial Target Standby Options considered Growth & Prosperity; Vibrant, Safe City; and Valued Service Delivery Note: Proposed Standby options to address the 2021 and 2022 deficit. Sustainability Standby Options Evaluated as of April 20, 2020 (Not including Continuous Improvement Items) 1. Asphalt Overlay Program (Phase 2)* 2. Passport to Parks 3. Non -Resident Differential Parking Fee (Phase 2)* 4. Casual Workforce Reduction (Works) (Phase 2)* 5. Casual Workforce Reduction (Parks & Recreation) (Phase 2)* 6. Grants - Other 7. Permit and Development Approvals, New Fees (Phase 2)* 8. Transit Redesign (Phase 2)* 9. Playground Program 10. Casual Workforce Reduction (Works) (Phase 3)** 11. Casual Workforce Reduction (Parks & Recreation) (Phase 3)** 12. Winter Street Maintenance (Phase 2)* 13. Asphalt Overlay Program (Phase 3)** 14. Community Centres 15. Grants - Development Incentives and Heritage 16. Grants - Community Arts 17. Grants - Community Events 18. Grants - Event Sponsorship NOTES: Phases - Phase 2 and Phase 3 represent further savings or revenue in addition to the related Option provided on the Sustainability Plan. *Represents Cumulative Impact/Financial Target of relative Plan Item and Standby Phase 2 item. **Represents Cumulative Impact/Financial Target of the relative Plan Item, and Standby Phase 2 item, and Standby Phase 3 item. 251 January 13, 2020 PM Table of Contents EXECUTIVE SUMMARY.............................................................................................. - 1 - 1. INTRODUCTION................................................................................................... - 2- 1.1 Background................................................................................................... - 2- 1.2 Purpose and scope....................................................................................... - 2- 2. - 2. RESULTS.............................................................................................................. - 3- 2.1 Benchmarking............................................................................................... - 3- 2.2 Cost analysis................................................................................................. - 7- 3. - 3. BENCHMARKING REFERENCES..................................................................... - 14 - 184*1 List of Tables and Figures Figure 2.1: Benchmarking chart of key service metrics across comparable municipalities inCanada..................................................................................................................... - 4 - Table 2.1: Benchmarking values for key service metrics across comparable municipalitiesin Canada............................................................................................... - 5 - Table 2.2: Total share of operational costs for residents outside Saint John ............... - 7 - Table 2.3: Road -related costs in Saint John 2019 budget ............................................ - 8 - Figure 2.2: Map of Saint John traffic count sites.......................................................... - 8 - Table 2.4: Household survey results for inbound travel to Saint John (2015) .............. - 9 - Table 2.5: Parks and recreation -related costs in Saint John 2019 budget ................. - 10 - Table 2.6: Police, fire, and other costs in Saint John 2019 budget ............................ - 10 - Table 2.7: Shared police and fire costs based on municipal tax base (2019) ............ - 11 - Table 2.8: City of Saint John investments in regional development, 2018 ................. - 12 - Ne" I 2- Ne"I Greater Saint John Regional Task Force Analysis EXECUTIVE SUMMARY Introduction The Saint John Region local governments as well as Local Service Districts have shared goals for economic growth and cost-effective service delivery. The Greater Saint John Regional Task Force is examining opportunities for improvement to shared service delivery and equitable cost-sharing mechanisms. This will enhance the sustainability of Greater Saint John financial performance and community development. Purpose and scope This report responds to two key information needs set out by the Regional Task Force, specifically: ❑ Benchmarking - to compare recreation, protective services, road maintenance, and winter storm management services in Saint John versus seven (7) similar municipalities in Canada; ❑ Regional cost analysis - of servicing non-resident use of roads for commuting into Saint John, recreation facilities; and other services or amenities. Estimates are required for this analysis therefore sources and methods are provided throughout for transparency. A conservative approach to avoid overstating the regional cost estimates has been taken throughout. Benchmarking results Amongst the comparison group Saint John is at or near the lowest scores for demographics including population size, household income, and property values. On a per household basis Saint John parks costs are lowest in the group, recreation is in the middle, police costs are also in the middle, and fire services costs are highest. Saint John costs per paved lane -km of road is above the middle, and cost for winter storm management is in the middle of the group. Service metrics are not necessarily calculated the same way across municipalities so results are interpreted with caution. Regional analysis results As cities grow out to and beyond their borders, they become regional centres for jobs, amenities, and recreation yet they do not capture revenues from the tax base outside their boundaries. This is a re -occurring challenge in municipal government that is not unique to Saint John. Additional costs to service residents that come from outside Saint John are estimated at $12.3 million including: $3.7 million in road costs, $1.8 million in parks and recreation costs, and $6.8 million in police, fire, and other costs. Employment growth, population growth, strategic land development and visitor attraction particularly through Saint John City staff, Economic Development Greater Saint John, Develop Saint John, and Discover Saint John involve significant investments by the City that benefit businesses and communities throughout the region. The City's combined investments in regional economic development in 2018 totalled $2.9 million. Employment growth plays a critical role in the economic development of the region, especially considering that for every 100 employees working in the city limits of Saint John, 41 of the employees chose to live in communities outside of the City. -1- N&I Greater Saint John Regional Task Force Analysis 1. INTRODUCTION 1.1 Background The Saint John Region is a key contributor to the provincial economy by generating 20 to 25% of provincial GDP'. In the past ten (10) years approximately 28% of the provinces non-residential construction has taken place in Saint John'. Neighbouring communities are highly dependent on Saint John for access to employment and a wide range of services and amenities. The Saint John Region local governments as well as Local Service Districts have shared goals for economic growth and cost-effective service delivery. The Greater Saint John Regional Task Force is examining opportunities for improvement to shared service delivery and equitable cost-sharing mechanisms. This will enhance the sustainability of Greater Saint John financial performance and community development. There is a pressing need for economic analysis to support on-going discussions and engage key audiences in developing long-term strategies. 1.2 Purpose and scope This report responds to two key information needs set out by the Regional Task Force, specifically: ❑ Benchmarking - to compare service delivery in Saint John versus similar municipalities elsewhere in Canada including: o Municipalities - Saint John's NL, Sarnia ON, Prince George BC, Sault Ste Marie ON, Greater Sudbury ON, Cape Breton Regional Municipality NS, and Thunder Bay ON; and o Services - recreation, protective services, road maintenance, winter storm management; ❑ Cost analysis - of servicing non-resident use of: o Roads for commuting into Saint John; o Recreation facilities; and o Other services or amenities. 1 Government of New Brunswick. 2019. Sustaining Saint John: A Three -Part Plan. -2- PI&V Greater Saint John Regional Task Force Analysis 2. RESULTS 2.1 Benchmarking The demographic and economic context for benchmarking is important to consider before examining the specific service area metrics. The following highlights are based on Statistics Canada 2016 Census records for seven (7) other municipalities. As the population and number of households grows in a community there is a greater financial ability to support more infrastructure and programs. ❑ Population - Saint John has the smallest population in the benchmarking group by about 11,000 behind Sault St. Marie, and the largest is St. John's at 212,501. ❑ Households - Saint John also has the fewest households at 34,070, while St. John's has the most at 85,015. Higher household incomes drive investment in properties, and property values determine the tax base supporting municipal revenues. ❑ Household income - Saint John has the lowest average household income at $65,851, and St. John's again tops the list at $102,635. ❑ Residential property values - The average value of private dwellings is lowest in Cape Breton Regional Municipality (CBRM) at $153,984, Saint John is second lowest at $175,139, and the highest is St. John's at $348,519. Poverty and unemployment are among the key socio-economic determinants of demand for support services and interactions with the criminal justice system. ❑ Poverty - The percentage of population below the low income cutoff after tax (LICO-AT) is highest in Saint John (13.0%), while Sarnia has the lowest at 7.1 %. ❑ Unemployment - Saint John has the third highest unemployment rate at 9.6%, behind Sault St. Marie (10.3%), and CBRM (17.4%). The next chart shows how Saint John compares to other municipalities in Canada, based on measures shown in the table that follows. Key observations are summarized after the chart and table. Saint John data are provided by the City except where Statistics Canada sources are noted. Sources for all other municipalities are listed in the benchmarking references section of this report (Section 3). -3- 257 Greater Saint John Regional Task Force Analysis Figure 2.1: Benchmarking chart of key service metrics across comparable municipalities in Canada 258 0% 20% 40% 60% 80% 100% Metric Minimum Maximum Population 68,808 212,501 Household income $65,851 $102,635 Dwelling value $153,984 $348,519 Parks $/house $92 ,, $327 Recreation $/house $63 ♦ $638 Police $/house 314 a 41 � ♦ 902 Police staff per 100,000 pop 147 251 Fire $/house $316 $781 Fire staff per 100,000 pop 77 ♦ 272 $/paved lane KM $2,057 ♦ $13,538 Winter $/lane KM $1,573 $11,318 Winter $/lane KM /cm snow $5 ♦xF $80 S aullt St. Mare St. John' I..hunder 113 ay S aGint John 1311 11 S airimGa IPrGr ce George Sud lbuir.y Note: Minimums and maximums are the lowest and highest values across municipalities, and the markers represent each municipality according to their position between the minimum and maximum. Some municipalities do not have measures for certain metrics so no marker is shown. 258 Greater Saint John Regional Task Force Analysis Table 2.1: in Canada Demographics Pop. (July 1, 2018) No. households' Household income' % Low income pop' House values' Unemployment rate' Parks and Recreation Parks cost Recreation cost Parks cost per cap. Recreation cost per cap. Parks cost per house Recreation cost per house Police Total cost Cost per capita Cost per household Staff per 100,000 pope Number of staff 68,808 171,471 126,481 92,792 212,501 99,625 80,031 100,000 34,070 70,445 52,545 35,095 85,015 28,330 34,530 41,675 65,851 81,378 84,321 93,755 102,635 91,592 77,048 68,465 13.0% 10.7% 7.9% 7.6% 7.5% 7.1% 7.9% 8.3% 175,139 307,296 261,881 292,077 348,519 256,520 236,729 153,984 9.6% 9.0% 7.7% 9.1% 8.6% 8.8% 10.3% 17.4% 3,141,463 11,130,183 8,670,000 3,831,108 10,453,750 9,256,213 3,207,696 6,207,224 7,525,146 18,225,889 10,232,000 22,378,000 8,511,161 - 6,124,256 2,639,463 46 65 69 41 49 93 40 62 109 106 81 241 40 - 77 26 92 158 165 109 123 327 93 149 221 259 195 638 100 - 177 63 28,344,333 63,548,588 40,706,000 26,438,856 26,673,442 25,491,171 25,096,639 26,994,915 412 371 322 285 126 256 314 270 832 902 775 753 314 900 727 648 251 155 190 188 157 147 179 202 173 266 241 174 333 147 143 202 1. Statistics Canada 2016 Census 2. Statistics Canada Police personnel and selected crime statistics, municipal police services, 2019. Note: Some values are not shown since data is not readily available from all municipalities. -5- 259 Greater Saint John Regional Task Force Analysis Fire Total cost 26,604,450 26,387,749 29,796,000 17,724,328 26,822,880 19,440,769 13,247,554 18,201,994 Cost per capita 387 154 236 191 126 195 166 182 Cost per house 781 375 567 505 316 686 384 437 Staff per 100,000 pop. 272 77 170 116 94 126 157 - Number of staff 187 132 215 108 200 126 126 - Cost per service vehicle -hr 296 273 252 - - - - - Road Maintenance Total cost 15,866,638 5,936,695 15,684,000 1,768,928 7,089,901 3,631,473 3,296,959 - Cost per paved lane KM 13,538 2,057 9,270 2,407 5,064 3,947 2,700 - Winter Management Total cost 6,101,606 17,648,624 4,121,480 5,147,929 15,844,539 1,447,578 6,420,589 - Cost per lane KM 5,206 6,115 2,436 7,004 11,318 1,573 5,258 - Annual snowfall (cm) 240 263 163 142 335 112 321 283 Cost per lane km per cm snow 21.7 23.3 14.9 49.3 33.8 14.0 16.4 - Summary observations: ❑ Parks and recreation - Saint John operating costs per capita for parks are third lowest in the group, and the lowest on a per household basis. Saint John recreation operating costs per capita are second highest in the group, and in the middle of the group on a per household basis. ❑ Police - The number of Saint John police per 100,000 population is the highest in the group, cost per household is second highest, and cost per capita is highest in the group (note: pension costs may be included in some cities, but not others). ❑ Fire - Saint John has the highest cost per capita, per household, and per in-service vehicle hour (compared to two others). Heavy industry fire services costs in Saint John are discussed further in this report. ❑ Road maintenance - Saint John cost of paved road maintenance per lane kilometer is the highest of the group. ❑ Winter storm management - Saint John costs per lane kilometer are in the middle of the group, and third lowest when snowfall amounts are taken into consideration. 260 Greater Saint John Regional Task Force Analysis 2.2 Cost analysis The city is struggling to support operational costs while many enjoy a short commute from outside communities where property tax rates are lower. Higher average household incomes and property values are also common outside the city, but exurban commuters do not help pay for the city services they enjoy every day. Sound familiar? This actually describes Winnipeg according to a publication just released in October, 20192. Winnipeg is also facing uncertain provincial funding support, yet it contributes to 70% of the province's gross domestic product. These challenges are not unique to Saint John, in fact this is a common problem for cities where development extends to the municipal boundary and residential growth has accelerated just beyond the border. The following analysis of costs not paid by residents from outside Saint John focuses on three areas: 1) road related costs, 2) parks and recreation costs, 3) police and fire services, and 4) regional economic development. The approach aims to be conservative since the full costs of these three service areas are not captured, and other City of Saint John services are not included. The summary of total shares by cost area are shown in the table below and the explanations for each calculation follow. Table 2.2. Total share of operational costs for residents outside Saint John Service Costs Road costs $3,753,352 Parks and recreation costs $1,760,919 Police, fire, and other costs $6,781,038 Total $12,295,309 Road costs Commuters into Saint John rely on the road network maintained by the city including: road maintenance, traffic management, snow removal, re -paving, cleaning, stormwater management, and sidewalks. The following table shows the 2019 approved operating budget for road related costs, cost -recovery, and net costs amounting to just over $19 million. 2 Riley Black. 2019. The high cost of free -riding and how we fix it: Examining the implementation of commuter fees in Winnipeg. Canadian Centre for Policy Alternatives Manitoba. -7- K -q Greater Saint John Regional Task Force Analysis Table 2.3. Road -related costs in Saint John 2019 Snow control on streets $ 5,781,383 - $ 5,781,383 Street cleaning $ 1,670,600 - $ 1,670,600 Street maintenance $ 6,122,629 250,000 $ 5,872,629 Snow control on sidewalks $ 1,102,170 - $ 1,102,170 Sidewalk maintenance $ 705,582 - $ 705,582 Traffic management $ 2,292,512 $ 368,000 $ 1,924,512 Stormwater management $ 3,570,935 - $ 3,570,935 Asphalt renewal' $ - 1,500,000 -$ 1,500,000 Temporary pension amts $ 819,279 $ 819,279 Total $ 22,065,090 $ 2,118,000 $19,947,090 Source: Saint John 2019 Approved Operating Budget 1. Average 2016-2019 capital budget. In 2014, traffic volumes were measured at locations that capture Saint John inflows and outflows of traffic at weekday peak morning and afternoon times (e.g. commuters). Figure 2.2. Map of Saint John traffic count sites Counts at locations D -D, E -E, and F -F shown in the map above are not included to be cautious about vehicles moving within the city, and the inbound morning traffic amounts to 21,375 vehicles, while outbound traffic totals 13,338. Statistics Canada reports an average of about 1.30 passengers per vehicle for weekday commuters in NIM Greater Saint John Regional Task Force Analysis Saint John'. This yields a potential of 27,865 inbound passengers just at the peak period (not including mid-day, evening, or weekend traffic). These are not all necessarily commuters since some may be on the move for work, trips to school, shopping, and other purposes. The 2017 Phase I MoveSJ report focuses on commuter travel patterns for inbound and outbound vehicles according to north, south, east, and west locations inside and outside the city (see table below)'. The survey indicates about 15,700 people come from outside the city for work. This is similar to Statistics Canada Census 20165 commuting statistics for Saint John and neighbouring communities of Rothesay, Quispamsis, Hampton, Grand Bay -Westfield, Saint Martins, Simonds, and Musquash. The daily number of weekday commuters to Saint John is between 13,625 and 17,695. Table 2.4: Household survey results for inbound travel to Saint John Northeast 2,310 2,800 4,700 1,110 10,920 Southeast 400 920 180 70 1570 Southwest 200 180 350 310 1040 Northwest 670 420 490 590 2170 Total 3,580 4,320 5,720 2,080 15,700 The survey also found for residents outside the city that 27.2% of their trips are for work, 3.9% are for school, and 68.9% are for other purposes. Although some trips for school may take them into Saint John, these are mainly assumed to be within their local community. However, the other trips would include shopping, appointments, events, and other activities in Saint John. Taking the ratio of "other trips" to "work trips" (68.9% versus 27.2%) another 2.53 trips are into Saint John are expected for every commuting trip to work. The other trips are not necessarily by commuters, and the ratio simply applies to general travellers from outside the city. This indicates about 55,500 trips are taken into the city per weekday. The household survey found the total daily number of trips (all types) by Saint John residents was 239,560. Therefore the combined total trips was about 295,100, where 19% originate outside the city, and 81 % are by Saint John residents. Applying the 19% share to the road related costs results in a $3.8 million estimate for shared costs. Parks and recreation costs Parks and recreation costs focus on the operational costs for arenas, sportsfields, and parks (see table below). The share of arena and sportsfield users coming from outside 3 Statistics Canada. 2016 Census of Population, Statistics Canada Catalogue no. 98-400- X2016327. 4 IBI Group. 2017. Move SJ Final Report - City of Saint John Transportation Strategic Plan: Phase I. 5 Statistics Canada. Census 2016 Population Profile. Catalogue no. 98-316-X2016001. -9- Q-91 Greater Saint John Regional Task Force Analysis the city is shown in the table below and used to calculate a corresponding share of costs. There is no tracking for use of parks so the lower of the two tracking -based shares (31 %) is applied to park costs. The total estimated share of costs is $1.8 million for those coming from outside the city. City of Saint John temporary special pension costs are not included in these estimates. Table 2.5: Parks and recreation -related costs in Saint John 2019 Arenas $1,661,801 $681,850 $979,951 31% $308,063 Sportfields $1,429,986 $152,758 $1,277,228 34% $435,799 Parks $2,769,755 - $2,769,755 31% $870,715 Temp. pension $457,320 $457,320 32% $146,342 Total $6,318,862 $834,608 $5,484,254 32% $1,760,919 Police, fire and other services Saint John must provide adequate public safety in the form of police, fire and emergency preparedness capacity for everyone in the municipality regardless of their origin. This includes capabilities to respond to incidents at workplaces, throughout the road network, and other areas of the city. Saint John also maintains infrastructure and operations for facilities such as Market Square that support regional events and activities. The Trade and Convention Centre along with attractions for cruise ship visitors and other tourists all contribute to regional business development and enjoyment by residents from inside and outside of Saint John. Table 2.6: Police, fire, and other costs in Saint John 2019 Police Services $28,765,324 $320,000 $28,445,324 Fire Services $27,425,632 $82,600 $27,243,032 Market Square Costs $2,182,993 $2,182,993 Solid Waste Management $3,722,605 $3,722,605 Total $62,096,554 $502,600 $61,593,954 Estimating a share of costs for those coming into the city starts with police and fire services costs. The following does not include City of Saint John temporary special pension costs. The 2019 local government statistics for New Brunswick' show these costs for Saint John, Quispamsis, Rothesay, Grand Bay -Westfield, and Hampton (table below). Using the municipal tax base in each community as the basis for allocating the total costs, the communities outside Saint John move from paying $7.6 million for police to paying $12.7 million. Likewise for fire services the communities outside move 6 New Brunswick Environment and Local Government. 2019. Local Government Statistics for New Brunswick. -10- NOEII Greater Saint John Regional Task Force Analysis from paying $6.9 million to $12.0 million. The differences for police ($5.1 million) and fire ($5.2 million) combine for a total contribution of $10.3 million. Table 2.7: Shared police and fire costs based on municipal tax base Saint John $6,925,108,6501 $28,445,324 $23,299,9231 $27,243,032 $22,059,978 Quispamsis $1,748,060,900 $3,689,260 $5,881,451 $3,689,079 $5,568,459 Rothesay $1,293,791,950 $2,429,920 $4,353,037 $2,105,864 $4,121,383 Grand Bay - Westfield $375,785,600 $697,794 $1,264,352 $682,837 $1,197,067 Hampton $365,177,400 $765,125 $1,228,660 $389,350 $1,163,275 Total $10,707,924,500 $36,027,423 $36,027,423 $34,110,162 $34,110,162 This approach would leave outside communities contributing to 18% of Saint John police service and 19% of fire service. A proportional share of 18% could then be applied to the costs of Market Square and waste collection to determine contributions of $415,000 and $707,000 respectively. The total contribution to costs from outside communities would be $11.4 million. However, considering that residents from outside communities spend less time in Saint John and travel there for work and other activities, the measure of traffic inflows from the road cost analysis may be applicable. Recall from the household survey that the combined total trips of 295,100 in Saint John are comprised of 19% originating from outside the city, and 81 % from Saint John residents. Applying the 19% rate to the total contribution figure of $11.4 million reduces this to about $2.2 million. The $6.8 million midpoint of the $2.2 million and $11.4 million estimates would be considered reasonable. Regional economic development The City of Saint John is actively involved in strategic operational and capital investments that are intended to not only generate economic returns for the City, but the entire region. In addition to an annual investment of $2.3 million into three unique economic development agencies, the City also supports economic development through in-house employees and programs ($600,000 annually) focused on economic development coordination and growth (table below). The City houses a population growth function, which seeks to address the region's weak demographic growth. While the majority of newcomers choose to live in the City of Saint John, approximately 20% of all newcomers to the region choose to live in towns that fall outside of the City. The City has also created a Growth Reserve Fund ($350,000 annually), which was established to respond to unforeseen economic opportunities and challenges. All City of Saint John investments in regional economic development initiatives is estimated at $2.9 million/annually. -11- NOW Greater Saint John Regional Task Force Analysis Table 2.8. City of Saint John investments in development, 2018 Enterprise Saint John $225,210 $475,000 Develop Saint John n/a $821,002 Discover Saint John $12,000 $1,033,495 Growth Reserve n/a $350,000 City staff supporting growth n/a $250,000 TOTAL: $237,210 $2,929,497 Source: City of Saint John The City of Saint John also works closely with Port Saint John to host cruise ships, coordinate events, and make use of City infrastructure. The port brought 175,000 cruise ship passengers' to the city in 2018. An estimated $93 per passenger is spent during a visit for a total of $14.9 million annually. Port Saint John confirmed cruise bookings for over 200,000 passengers in 2019 and 2020. Passengers book day excursions through cruise tour operators and explore Saint John and surrounding areas as far as Hopewell Rocks, Saint Andrews, and St. Stephens. Local businesses capture passenger spending on recreation, food, local transportation, and souvenirs. Regional communities outside of Saint John invest a combined total of $237,210 annually into economic development, through their combined $225,210 investment into Economic Development Greater Saint John as well as a minor community partnership investment into Discover Saint John (the towns of Rothesay, Quispamsis, Grand Bay Westfield and Hampton each pay $3,000 into the community partnership annually). The three City -funded economic development agencies are: Economic Development Greater Saint John (EDGSJ) is the economic development agency for Greater Saint John, which encompasses the communities of Grand Bay - Westfield, Saint John, Rothesay, Quispamsis, and St. Martins. The agency focuses on four economic growth areas: 1) workforce development, 2) business investment and innovation, 3) entrepreneur development, and 4) marketing greater Saint John. Specific goals and targets for 2018 involve supporting 37 new start-up businesses and 821 new job hires (896 announced). Business start-up and job hiring benefits extend beyond Saint John. The City provides $475,000 of the $700,000 in municipal funding, combined with investments from the Province ($273,000), strategic partners and private sector ($246,000), and project revenues ($990,000). Employment growth plays a critical role in the economic development of the region, especially considering that for every 100 Port Saint John, 2019. 8 Business Research and Economic Associates, 2016. Economic Impacts of the Cruise Industry in Canada. (online: https://clia-nwc.comn -12- PUT-1 Greater Saint John Regional Task Force Analysis employees working in the City limits of Saint John, 41 of the employees chose to live in communities outside of the City. Discover Saint John (Discover SJ) is the Destination Marketing Organization for Saint John, and while it promotes the region as a travel destination it also takes a lead role in organizing festivals and events that bring many visitors to the region. The agency successfully hosted the 2018 World Under -17 Hockey Challenge in Saint John and Quispamsis'0. Discover SJ also aims to host the 2021 Acadian Games". The attraction of visitors leads to spending beyond the city for accommodation, food, entertainment, transport and fuel, and many other retail purchases. City of Saint John provided $1,033,000 towards the $1.9 million in Discover SJ costs for 2018, the balance is largely funded by the Hotel Association, event revenues, and sponsorships. Develop Saint John (Develop SJ) is the strategic real estate agency entirely funded by the City of Saint John ($821,000 annually). The agencies 2018 goal was to generate an increase of $75 million in new tax base growth from the City. The agency supports residential, commercial, institutional and industrial developments, which supports tax base growth for Saint John, but also delivers short-term employment opportunities for the construction of the projects as well as longer-term employment opportunities as a result of the companies that move into the developments, which are filled by residents from across the region. s Statistics Canada, 2016. 2016 Census: Place of Work. Catalogue Number 98-400-X2016325. 10 Hockey Canada, 2017. Hockey Canada Selects Saint John, Quispamsis as Co -Hosts of the 2018 World Under -17 Hockey Challenge. (online: https://www.hockeycanada.ca/en- ca/news/2018-wul 7hc-returns-to-new-Brunswick) " CBC News, 2017. Saint John looks to host the 2021 Acadian Games. (online: https://www.cbc.ca/news/canada/new-brunswick/saint-john-looks-to-host-2021-acadian- games-1.4157831) -13- KIM Greater Saint John Regional Task Force Analysis 3. BENCHMARKING REFERENCES Prince George, BC City of Prince George, 2018. Financial Plan 2018-2022. (online: https://princegeorge.ca/City%20Hall/Documents/Finance/Financial %20PIan %20- %202018-2022.PDF) City of Prince George, 2018. Fire, Police, and Ambulance Services. (online: https://www. princegeorge.ca/City%20Services/Pages/Emergency%20Response%20a nd%20Safety/FirePoliceAmbulance.aspx) City of Prince George, 2018. Snow operations. (online: https://princegeorge.ca/City%20Services/Pages/Roads%20and %20Transportation/Sn owOperations.aspx) City of Prince George, 2018. Roads and Transportation. (online: https://www. princegeorge.ca/City%20Services/Pages/RoadsandTransportation.aspx) Government of British Columbia. 2019. Data Catalogue. (online: https://cataloque.data.gov. bc.ca/dataset?g=prince+george&type=Geographic&sort=sc ore+desc %2C+record_publish_date+desc) Saint John's, NL City of Saint John's, 2018. Budget Booklet, 2018. (online: http://www.stoohns.ca/sites/default/files/files/publication/PUB_Budget%20Booklet%20 2018.pd City of Saint John's, 2019. Regional fire department. (online: http://stoohns.ca/city- hall/departments/st-iohn-s-regional-fire-department) Municipalities Newfoundland and Labrador, 2019. Municipal Benchmarking: A necessary evolution for our municipal system. (online: http://www.municipalitiesnl.com/userfiles/files/Municipal%20 Bench marking. pd Royal Newfoundland Constabulary. 2019. Statistical Reports. (online: https://www.rnc.gov.nI.ca/statistical-reports Royal Newfoundland Constabulary. 2018. Activity Report 2018. (online: https://www. rnc. gov. n I . ca/wp-content/uploads/2019/05/Activity-Report-2018. pd fl Sarnia, ON City of Sarnia. 2018. Approved Budget, 2018. (online: https://www.sarnia.ca/app/uploads/2019/05/2018-Approved-Budget-Reduced. pd fl -14- KI.1.13 Greater Saint John Regional Task Force Analysis City of Sarnia. 2019. Parks and Recreation Master Plan. (online: https://www.sarnia.ca/things-to-do/recreation-program-information/parks-and- recreation-master-plan City of Sarnia. 2019. Roads and Traffic (online: https://www.sarnia.ca/living- here/getting-around/roads-and-traffic Sault Ste Marie, ON Sault Ste Marie, 2018. Budget Summary, 2018. (online: https://saultstemarie.ca/Cityweb/media/Finance/Budget/2018PreliminarVBudget.pdfl Sault Ste Marie, 2019. Parks and Recreation Master Plan. (online: https://saultstemarie.ca/Cityweb/med ia/Community-Services/ParksRecMasterPlan. pd fl Sault Ste Marie, 2019. Fire Services. (online: https://sauItstemarie.ca/City-Hall/City- Departments/Fi re -Services. aspx?ext=.) Sault Ste Marie, 2019. Community Services. (online: https://saultstemarie.ca/City- Hall/City-Departments/Community-Development-Enterprise-Services/Community- Services.aspx) Sudbury, ON Greater Sudbury, 2018. Budget and Finance Report. (online: https://www.greatersudbury.ca/city-hall/budget-and-finance/previous-budgets/2018- bud et Cape Breton Regional Municipality, NS Cape Breton Regional Municipality (CBRM), 2019. Consolidated Operating Budget 2018-19. (online: http://www.cbrm. ns.ca/images/Consolidated_Operati ng_Budget_2018-19. pd fl Cape Breton Regional Municipality (CBRM), 2019. Annual Financial Reports (online: http://www.cbrm. ns.ca/images/media/Annual %20Financial %20Report%202017- 18. d Cape Breton Regional Municipality (CBRM), 2018. Recreation Master Plan, 2018. (online: http://www.cbrm.ns.ca/images/stories/reports/CBRM %20Recreation%20Master%20PI an %20- %20Approved %20J my %2018. pd fl Thunder Bay, ON City of Thunder Bay, 2018. Financial Statement, Final 2018. (online: https://www.thunderbay.ca/en/city- hall/resources/Documents/FinanceandBudget/20181231---FS-Final-City-of-Thunder- Ba d -15- K-16.1 Greater Saint John Regional Task Force Analysis City of Thunder Bay, 2018. MBN Canada Performance Measurement Report. (online: https://www.thunderbay.ca/en/city-hall/municipal-benchmarking-network-canada.aspx) City of Thunder Bay, 2018. Tax Supported Budget Summary. (online: https://www.thunderbay.ca/en/city- hal I/resources/Docu ments/Fi nanceand Budget/2018-Tax-Supported-Budget- Summary.pdfl City of Thunder Bay, 2019. Recreation Services. (online: https://www.thunderbay.ca/en/recreation/recreation.aspx) City of Thunder Bay, 2018. About Fire Rescue. (online: https://www.thunderbay.ca/en/city-services/about-fire-rescue.aspx) All municipalities Statistics Canada. 2016. Census program. (online: https://wwwl2.statcan.gc.ca/census-recensement/index-eng.cfm?MM=1) Statistics Canada. 2016. Population estimates. (online: https://www150.statcan.gc.ca/t1 /tbl l /en/cv.action? pid=1710013501) Statistics Canada. 2019. Police personnel and selected crime statistics, municipal police services. (online: https://www150.statcan.gc.ca/t1 /tbl l /en/cv.action? pid=3510007701) Municipal Benchmarking Network Canada, 2019. Performance measurement report, 2018. (online: http://mbncanada.ca/resources6 Associated Municipalities Ontario, 2019. Municipal Information and data Analysis System (MIDAS). (online: http://midas.amo.on.ca/openmidas/ReportList.aspx?tab=note) -16- fPXL07 January 13, 2020 271 Table of Contents EXECUTIVE SUMMARY.............................................................................................. - 1 - 1. INTRODUCTION................................................................................................... - 3- 1.1 Background................................................................................................... - 3- 1.2 Purpose and scope....................................................................................... - 3- 2. - 2. RESULTS.............................................................................................................. - 4- 2.1 Heavy industry cost -recovery analysis.......................................................... - 4- 3. - 3. APPENDIX A...................................................................................................... - 19- 4. 9- 4. APPENDIX B...................................................................................................... - 21- 5. 1- 5. APPENDIX C...................................................................................................... - 23- PX�� List of Tables and Figures Table 2.1: Saint John road costs attributable to locally -based trucking, 2019 .............. - 6 - Table 2.2: Car and truck fees charged on toll roads in Canada, 2019 ......................... - 7 - Table 2.3: Converted' U.S. federal cost responsibility by vehicle class under the Transportation Equity Act program............................................................................... - 8 - Figure 2.1: Map of areas in Saint John property assessment analysis ...................... - 11 - Figure 2.2: Property assessment values by distance and community, and by type of property...................................................................................................................... - 12 - Table 2.4: Property assessment values and tax revenues by distance from central industrial sites and by number of units....................................................................... - 13 - Figure 2.3: Comparison of assessment values by distance for Saint John, Fredericton, and Moncton by type of property................................................................................ - 14 - Figure 2.4: Properties on Pleasant City St. and River Ave. demolished following butane pipeleak in 2019........................................................................................................ - 17 - Figure A.1: Moncton property analysis (center at Main and Lutz) .............................. - 19 - Figure A.2: Fredericton property analysis (center at Westmorland and Queen) ........ - 19 - Table A.1: Average assessment values by distance from the center of Fredericton.. - 20 - Table A.2: Average assessment values by distance from the center of Moncton ...... - 20 - Figure B1: Main industrial property areas in Saint John ............................................. - 21 - Figure B2: Examples of heavy industry sites in Saint John ........................................ - 21 - Table B1: Key industrial properties in Saint John ....................................................... - 22 - PArX Greater Saint John Regional Task Force Analysis EXECUTIVE SUMMARY Introduction The Saint John Region local governments as well as Local Service Districts have shared goals for economic growth and cost-effective service delivery. The Greater Saint John Regional Task Force is examining opportunities for improvement to shared service delivery and equitable cost-sharing mechanisms. This will enhance the sustainability of Greater Saint John financial performance and community development. Purpose and scope This report responds to a key information need set out by the Regional Task Force, specifically: ❑ Industry cost -recovery analysis - comparing industrial property costs for protective services, road maintenance, and adverse effects on municipal revenues, versus the municipal tax revenues generated from the industrial tax base. Estimates are required for this analysis therefore sources and methods are provided throughout for transparency. A conservative approach to avoid overstating the industrial cost estimates has been taken throughout. Cost -recovery analysis results Saint John plays a unique role in hosting a number of heavy industrial properties that, although they are important contributors to the regional and provincial economies, they also contribute to road costs, emergency response costs, and reduced values for nearby residential properties. ❑ Heavy trucking - is recognized for having a disproportional impact on public costs related to roads and traffic management. The costs related to heavy industry is estimated at $2,480,625 per year. ❑ Fire services - incur some added costs as SJEMO plans and prepares for all emergencies in the city and an estimated $285,000 (40%) of effort focuses on industrial hazards. About 5.2% of the Fire Department in-service vehicle hours are for responses to industrial incidents (2018), with an associated cost of about $1.4 million. The combined costs of these fire service items is about $1.7 million. ❑ Properties values - in most cities values are highest near the centre and values decline moving away from the centre. In Saint John residential property values are lowest near the city centre and rise moving outwards and beyond the city border. The figures below show Saint John property values (red bars rising to the right) versus Moncton and Fredericton property values (green bars declining to the right) indicating opposite patterns moving out from the city centres. -1- KFAM Greater Saint John Regional Task Force Analysis Property values in Saint John, Fredericton, and Moncton by distance from centre Vacant properties ($/m') Single Unit properties ($/property) 2.00.00 180.00 240,000 160.00 220,000 140.00 200,000 120.00 100.00 180,000 80.00 160,000 60.00 140,000 40.00 20.00 1 20,000 100,000 500 101500 2000 5000 500 1000 1500 2000 5000 ::ir.deirmtan W—ftoin mrdeirmt- IWonc4roin This results in lost annual property tax revenues for the City of Saint John that are estimated at $32 million per year. Some downtown residential properties have been converted to vacant land resulting in a near total loss of tax revenue to the City. Note that this does not include all properties affected and represents a lower bound estimate potential missed tax revenues. Heavy industry properties on the other hand contribute about $12 million in annual tax revenue. -2- WAR Greater Saint John Regional Task Force Analysis 1. INTRODUCTION 1.1 Background The Saint John Region is a key contributor to the provincial economy by generating 20 to 25% of provincial GDP'. In the past ten (10) years approximately 28% of the provinces non-residential construction has taken place in Saint John'. The Greater Saint John Regional Task Force is examining opportunities for improvement to shared service delivery and equitable cost-sharing mechanisms. This will enhance the sustainability of Greater Saint John financial performance and community development. There is a pressing need for economic analysis to support on- going discussions and engage key audiences in developing long-term strategies. 1.2 Purpose and scope This report responds to a key information need set out by the Regional Task Force, specifically: ❑ Cost -recovery analysis - of industrial properties and adjacent properties concerning: o Benefits - municipal taxes generated directly or indirectly from the industrial tax base; and o Costs - municipal costs to service industrial properties (e.g. protective services, road maintenance) and adverse effects on municipal tax revenues. 1 Government of New Brunswick. 2019. Sustaining Saint John: A Three -Part Plan. -3- PAW-1 Greater Saint John Regional Task Force Analysis 2. RESULTS 2.1 Heavy industry cost -recovery analysis Saint John plays a unique role in hosting a number of heavy industrial properties that, although they are important contributors to the regional and provincial economies, they also contribute to direct operational costs and lost revenues for the municipality. Appendix B contains maps and a table indicating the main heavy industry properties in Saint John. ❑ Direct costs - include added demands for emergency preparedness and response as well as heavy trucking on roads. This affects city planning and design, capital spending, and operations. ❑ Lost revenues - include lost tax revenue from residential properties near industrial sites that would normally have increased assessment values. ❑ Benefits - are the property tax revenues "recovered" from industrial properties annually. Direct costs - heavy trucking Heavy trucking impacts on communities and infrastructure have been researched extensively in North America due to three main developments: 1) truck designs are trending toward larger sizes including double and triple trailer combinations, 2) technologies to charge vehicle fees and tolls (e.g. licence plate cameras) have advanced, and 3) jurisdictions are seeking fair funding models to address aging infrastructure and deferred maintenance. Heavy trucking is recognized for having a disproportional impact on public costs related to roads and traffic management, and these include but are not limited to: 1) higher cost design and construction elements to support heavy vehicles, 2) increased deterioration of roads and bridges, 3) more severe accidents, and 4) increased emissions and noise affecting population health. The following focuses primarily on the first two considerations as these have direct linkages to municipal road budgets. Before proceeding it is important to recognize that many factors determine the specific impacts of heavy trucking in particular locations including: 1) road design and construction that determines cost and suitability for heavy trucks, 2) volume of heavy truck traffic, 3) axel weights and the distribution of total weight across axels, 4) length of truck and axel spacing, 5) speed of travel, 6) age of the road and state of disrepair (e.g. bumps, rutting and cracking), 7) climatic conditions and seasonal variation, 8) frequency and 277 Greater Saint John Regional Task Force Analysis type of bridge crossing since costs are higher for bridges than roads, and 9) signage, safety measures, and driver training that help to reduce truck speeds, inappropriate use of vulnerable roads, and accidents'. Some truck traffic estimates are available such as a reported 270 trucks per day on Harding Street or Ready Street', and data from City of Saint John traffic counters at seven locations4. The data provided by the City combines for a total of 5,514 trips per day, but this does not cover the whole city and includes buses and some smaller trucks that are not of interest. There is also a challenge determining which truck traffic originates or terminates in Saint John versus those passing through to/from outside communities or to/from Nova Scotia via the ferry. This is important since the analysis focuses on the potential role and responsibility of industrial property owners of Saint John in supporting a fair share of municipal road costs. The approach taken here builds estimates of truck activity starting with truck occupation data that is specific to Saint John and available from Statistics Canada (first column in table below). The methodology to build estimates of truck related costs is explained in notes below the table. In essence, the number of truck drivers employed in Saint John is augmented by 50% to account for residents and trucking operations outside Saint John that serve local industry. An estimated number of trips and trip distances are combined across industry sectors to determine the number of daily and annual kilometres travelled on Saint John roads. A cost of $0.30 per kilometre is based on sources and tables that follow, and this yields an annual cost of $5.6 million for locally -based trucking in Saint John. Key conclusion: ❑ The portion of costs related to heavy industry includes at least: mining, oil and gas, manufacturing, and most (75%) of the transport and warehouse categories, for a total of $2,480,625 per year. 2 Luskin, D., and M. Walton. 2001. Effects of truck size and weights on highway infrastructure and operations: A synthesis report. 3 CBC. 2017. Saint John truck traffic exhausts patience: 'They think this is the Indy 500' (online: https://www.cbc.ca/news/canada/new- brunswick/saint-john-truck-traffic-1.4038237). 4 24-hour counts except where noted at seven locations: Bayside Dr. (at Causeway), Chelsey Dr., City Road (at Garden), Fairville and Catherwood (6hr peak), Simms corner (6hr peak), Loch Lomond and Bayside, and Loch Lomond (at MacDonald). -5- 278 Greater Saint John Regional Task Force Analysis Table 2.1: Saint John road costs attributable to 2019 Mining, oil and gas 20 50% 2 60 15 900 225,000 0.3 67,500 Utilities 10 50% 2 30 15 450 112,500 0.3 33,750 Construction 85 50% 4 510 15 7,650 1,912,500 0.3 573,750 Manufacturing 55 50% 2 165 15 2,475 618,750 0.3 185,625 Wholesale 50 50% 4 300 15 4,500 1,125,000 0.3 337,500 Retail 50 50% 4 300 15 4,500 1,125,000 0.3 337,500 Transport & warehouse 440 50% 4 2,640 15 39,600 9,900,000 0.3 2,970,000 Waste & remediation 40 50% 2 120 100 12,000 3,000,000 0.3 900,000 Other 65 50% 2 195 15 2,925 731,250 0.3 219,375 Total 815 4,320 75,000 18,750,000 5,625,000 Notes by numbered column: 1. Workers are StatCan Census 2016 employed transport truck drivers (NOC 7511) that reside in Saint John; 2. Outside SJ represents additional workers that commute to the city, and others with a place of work outside the city that provide trucking service to businesses in Saint John; 3. Trips per truck reflect return trips outside the city (2) and twice daily return trips inside or outside the city (4); 4. Add column 2 % to column 1 and multiply the total by column 3 resulting in total trips; 5. The average distance from four main industrial properties to the city border along trucking routes is 15 kms, except waste and remediation activities that tend to remain within the city and complete day -long routes; 6. Multiply total trips (4) by distance (5) to obtain the daily distance (6); 7. Multiply the daily distance by 250 annual work days to obtain annual distance (7); 8. The cost per km of $0.30 is from multiple sources (see below); and 9. Multiply annual distance (7) by cost per kilometer (8) to obtain annual costs (9). To determine costs attributable to trucking it is helpful to examine fees currently charged on toll highways in Canada, along with a comprehensive study by the U.S. Department of Transportation Federal Highway Administration (see tables below). As expected, the tolls show that truck costs ($6.43 per km for 4 axels) are very high on the Confederation Bridge owing to its high construction and operation costs. Tolls on the Cobequid Pass in Nova Scotia are the lowest ($0.31 per km for 4 axels) on a rural road that is relatively simple in design. The 407 Express Toll Route in Ontario represents an urban highway with intermediate costs ($1.02 to $1.53 per km for single- and multi -trucks). The estimate used in this analysis is toward the low end (Cobequid Pass) and is likely conservative with more discussion below. 279 Greater Saint John Regional Task Force Analysis Table 2.2. Car and truck fees charged on toll roads in Canada, 2019 PEI Bridge (10km)5 Car 47.75 4.78 Truck 47.75 8.25 6.43 NS Cobequid Pass (39km)6 Car 4 0.10 Truck 6 3 0.31 ON 407 ETR (16km)7 Car 8.15 0.51 Truck heavy single 16.29 1.02 Truck heavy multi 24.44 1.53 A second key source is the 2000 comprehensive study by the U.S. Department of Transportation Federal Highway Administration$. The table below starts with the U.S. costs per mile for different vehicle classes, and these values are converted to 2019 Canadian dollars per kilometre. Two sets of costs are shown, namely: 1) operations and maintenance costs for highways, and 2) environment costs that are borne by other road users and people near highways. The environmental costs are termed "externalities" since they are not borne directly by road users. The operations costs are certainly similar to the $0.30 estimate applied in Saint John, for example single unit trucks under and over 50,000 lbs cost $0.18 to $0.61 per km, and combination trucks in the 70,000 to 100,000 Ib range cost $0.18 to $0.52. The combination trucks have lower costs despite their higher weights since they distribute this over more axels and, although not shown here, these trucks make fewer trips by carrying larger loads (further reducing their impact). 5 Confederation Bridge. 2019. Tolls and fees (online: https://www.confederationbridge.com/tolls-fees) 6 Highway 104 Cobequid Pass. 2019. Cash payment fare structure by vehicle classification (online: https://www.cobequidpass.com/COB/About/TolIsAndFees.aspx) 7 407 Express Toll Route. 2019. Toll calculator (online: https://www.407etr.com/en/tolls/tolls/toll-calculator.htmi) 8 U.S. Department of Transportation Federal Highway Administration. 2000. Addendum to the 1997 Federal Highway Cost Allocation Study Final Report (online: https://www.fhwa.dot.gov/policy/hcas/addendum.cfm) -7- :E Greater Saint John Regional Task Force Analysis Table 2.3. Converted' U.S, federal cost responsibility by vehicle class under the Transportation Equity Act Passenger vehicles Autos 0.01 0.01 0.03 0.03 0.02 0.10 0.12 Light duty trucks 0.01 0.01 0.03 0.03 0.02 0.10 0.12 Buses 0.03 0.03 0.11 0.03 0.02 0.10 0.21 Single unit trucks <25,000 lbs 0.02 0.02 0.07 0.34 0.29 1.16 1.23 <50,000 lbs 0.05 0.05 0.18 0.58 0.48 1.94 2.13 >50,000 lbs 0.18 0.15 0.61 0.58 0.48 1.94 2.55 Combination trucks <50,000 lbs 0.03 0.03 0.12 0.37 0.31 1.25 1.37 <70,000 lbs 0.05 0.04 0.18 0.37 0.31 1.25 1.43 <75,000 lbs 0.08 0.06 0.26 0.37 0.31 1.25 1.51 <80,000 lbs 0.09 0.07 0.29 0.70 0.58 2.34 2.63 <100,000lbs 0.15 0.13 0.52 0.70 0.58 2.34 2.86 >100,000lbs 0.20 0.17 0.68 0.70 0.58 2.34 3.02 1. Conversion of U.S. costs in 2000 to Canadian costs in 2019 is based on: ratio of kilometres to miles, Bank of Canada currency exchange rates, and StatCan consumer price index (Canada all items). 2. Environment costs determined by U.S. Department of Transportation include: congestion, accident, air pollution, and noise -related costs borne by others (externalities). The value of $0.30 per truck -km used in this report is certainly at the low end considering higher costs in an urban setting, higher costs on roads not designed to support trucks (some areas of Saint John), and externalities that could be included. Some externalities are addressed in the analysis as they are captured in the effects on residential property values, however this is only a partial treatment of the issues. 281 Greater Saint John Regional Task Force Analysis Direct costs - fire protection services The Saint John Fire Department was not originally designed to meet the challenges of today's heavy industry risk profile in the city. A number of joint initiatives with industry and the Province have increased capacity and operational readiness for larger incidents. For instance, Saint John Fire Department provides one of the Provinces' two Regional Hazardous Materials Response Units. The Haz Mat Units involve a specialized truck and trailer supplied by the Province of NB. The acquisition of $3 million training facility in 2014 has been made possible by a collaboration with Irving Oil. Port Saint John also provided funding to include a marine ship component within the new training structure. Canaport LNG provides subsidizes Command Staff Training for responses to emergencies at industrial facilities. There are nevertheless some industry -specific costs that Saint John Fire must cover beyond the primarily residential focus of the Department. Saint John Emergency Management Organization (SJEMO) plans and prepares for all emergencies in the city, and an estimated $285,000 (40%) of effort focuses on industrial hazards. Of the total 65,700 hours of engaged service (in-service hours), 3,400 (5.2%) are dedicated to industrial incidents (not including tankers or command vehicles). The refinery fire at Loch Lomond road and the butane leak at Bayside Drive required detailed accounting of the response costs. These include personnel overtime, personal protective equipment, fire -fighting apparatus costs, detection equipment, ventilation tools and equipment, extinguishing agents, hose and supply lines, and fire investigation supplies. This does not include the regular hours of staff during each response, and City of Saint John temporary special pension costs are not included. The average cost per in-service hour is $401 and when applied to the 3,400 industrial in-service hours for 2018, the total cost is about $1.4 millions. The combined costs for emergency planning and response is about $1.7 million. Lost revenues - lower residential property values The effects of industrial lands on residential property values have been examined by researchers in Canada and abroad and it is worthwhile to draw some key points from previous work before turning attention to Saint John. Research in Alberta" found that oil and gas facilities located within 4 kms of residential properties have significant negative effects on their value. The effects on 9 Saint John Fire Department, 2019. Custom tabulations for industrial incident responses in 2018. 10 Boxall, P., W. Chang, M. McMillan. 2005. The impact of oil and natural gas facilities on residential property values: a spatial hedonic analysis. Resource and Energy Economics, 27: pp.248-269. 282 Greater Saint John Regional Task Force Analysis property values are expressed in terms health hazards and impacts on amenities, particularly enjoyment of natural landscapes. A study in the Netherlands" used an extensive property assessment database that allowed researchers to account for many property characteristics that determine market prices (e.g. floor area, property area, year of construction, distances to numerous amenities, neighbourhood density, and other property attributes). After accounting for these factors, the proximity to industrial sites had a statistically significant negative effect on property values. Each 250 metre increment in distance up to 2,250 metres from the industrial sites was statistically significant. These are just two examples of research on the topic and it helps to determine what distances are relevant when examining Saint John for potential effects. The following map shows the areas around industrial sites on the east and west sides of the port that were examined in 500 metre distance intervals out to 5,000 metres. In order to capture enough properties at each interval for a robust analysis, the properties included are those with: no units (vacant land), single units, two units, and three units. Additional higher unit properties (over 3 units) may also be affected, so the analysis may understate effects. Although the "rings" extend beyond Saint John, only Saint John properties are included, while separate data are compiled for Grand Bay - Westfield, Rothesay, Quispamsis, and Hampton. 11 De Vor, F., H. de Groot. 2011. The impact of industrial sites on residential property values: A hedonic pricing analysis for the Netherlands. Tinbergen Institute Discussion Paper. -10- 283 Greater Saint John Regional Task Force Analysis Figure 2.1: Map of areas in Saint John property assessment analysis Legend Distances O 0 - 500 0 500 - 1000 ® 1000 - 1500 ® 1500 - 2000 2000 - 5000 Communities ® Saint John ® Musquash ® Quispamsis ® Rothesay Hampton ® St. Martins ® Simmonds 5 0 5 10 15 20 km The property values at each distance interval and for each community outside Saint John are presented in the next figure. Separate lines show the values for properties with: one unit (orange), two units (blue), three units (green), and vacant land values per square metre (red line related to right-hand axis). Property values are lowest close to the industrial sites and generally rise as they move farther away, including the more distant communities outside Saint John. Vacant land beyond 1,500 metres is the only exception to the trend, where values decline as you would expect in areas where land is more abundant. - 11 - WE Greater Saint John Regional Task Force Analysis Figure 2.2. Property assessment values by distance and community, and by type of property Vacant property assessments ($/sqm) Dwelling property assessments (1-3 units) $80.00 $300,000 „0.00 :u unlit $60.00 � u�inlits $250,0 0 3 uinlits $50.00 $40.00 $200,000 $30.00 $20.00 $,10.00, 00 $150,0 �� ch $... $100,000 The data in the figures are shown in the next table, along with number of properties included in each element of the analysis. The tax revenues are also included in the table and these are based on the property assessment values multiplied by the respective tax rate in each community. -12- 285 Greater Saint John Regional Task Force Analysis Table 2.4. Values Vacant $/sqm 1 2 3 Properties Vacant 1 2 3 15.27 39.93 72.44 66.60 24.36 10.77 10.65 10.82 10.78 124,529 144,393 152,153 161,593 182,493 188,028 270,047 252,675 197,325 122,853 146,259 136,614 164,179 190,841 192,087 238,199 253,758 199,006 126,661 159,190 136,482 140,153 163,028 253,233 243,670 277,243 155,250 646 917 871 426 1,408 654 758 900 484 2,113 1,937 2,073 1,792 4,949 1,754 3,947 5,722 1,451 485 516 364 200 230 67 102 263 51 126 188 221 17 29 3 10 7 4 Tax revenues 0 1,032,933 1,972,959 2,231,175 1,118,731 8,444,723 433,600 756,823 1,877,158 439,542 1 4,696,876 4,992,467 5,630,143 5,168,919 16,121,327 4,518,274 13,216,835 19,060,053 3,664,886 2 1,063,567 1,347,138 887,636 586,119 783,497 176,316 301,274 879,811 129,911 3 284,874 534,209 538,401 42,529 84,391 10,408 30,215 25,584 7,949 Total tax 7,078,250 8,846,772 9,287,355 6,916,298 25,433,938 5,138,597 14,305,147 21,842,606 4,242,287 of units Based on the same methods, the set of charts below compares the average property assessment values by distance for Saint John, Fredericton, and Moncton according to property type (vacant, 1 unit, and 2 units). The GIS maps used for the analysis and results are tabulated in the Appendix. The downtown center point for the analysis in Moncton is the corner of Main St. and Lutz St, while the centre point in Fredericton is the corner of Westmorland St. and Queen St. The number of 3 -unit properties in Fredericton and Moncton is too low for reliable interpretation, and even the number of 2 -unit properties in Fredericton is low so these should be interpreted with caution. The chart indicates that Saint John property values near downtown are much lower than in Fredericton and Moncton and, as distance increases from the centre, Saint John values increase while the others decrease. -13- Greater Saint John Regional Task Force Analysis Figure 2.3. Comparison of assessment values by distance for Saint John, Fredericton, and Moncton by type of property Vacant properties ($/m2) 1 Unit properties ($/property) 2 Unit properties ($/property) 200.00 1100.00 240,000 350,000 1160.00 220,000 1140.00 300,000 200,000 120.00 1100.00 1100,000 250,000 00.00 1160,000 200,000 60.00 1140,000 40.00 20,000 1150,000 '.. 20.00 1100,000 I. I. I. I. I. 1100,000 .. 500 11000 11500 2000 5000 500 11000 11500 2000 5000 500 11000 11500 2000 5000 II11111I u°aint'JIohn ➢I@Frederic'1ton MonctonIIIIIIII:ua IfTl1'John 1111 Fredericton Moncton III11111I u°aint'JIohn 1111 Fredericton Moncton 1100 % 1100 % 1100 % 30 % 45 / // 40%. 70%. 851v. ,q 35% 50%. 20 % 601V. % 110%V. / ��% 65 50 / 0% 1111 ON60 % 50 500 11000 11500 2000 5000 500 11000 11500 2000 5000 500 11000 11500 2000 5000 IIIIIIIi Sainl1'John YAFrederic'ton Moncton IIIIIIIi Sainl1'John Y,,Frederic'ton Moncton III11111I ainl1'John Y,,Frederic'torl Moncton Note: The top figures show real values and the bottom figures show percentages of peak values for each municipality. -14- 287 Greater Saint John Regional Task Force Analysis Summary observations: ❑ Number of properties - there are fewer 2 -unit and 3 -unit properties beyond 2,000 metres and in the outer communities so results should be interpreted with caution. ❑ Percentages - Vacant properties in central Saint John are valued at 21 % of peak value lands 1-2 kms away, whereas top values for vacant land in Moncton and Fredericton are at the centre and properties 1-2 kms away are about 70% - 90% less. Single unit properties in central Saint John are 32% less than peak values 5 kms away, whereas top values for single units in Moncton and Fredericton are at the centre and properties 5 kms away are about 7% - 14% less. ❑ Lost revenue - a more common property value pattern would have the highest values near the city centre and waterfront, and even a level property value out to 2,000 metres would substantially increase tax revenues. If this were the case with the three inner distances at the 2,000 metre average assessment value, the additional tax revenues are estimated at $32.8 million annually. If this were applied to the inner four distances at the average assessment value of the 5,000 metre properties the annual total is $36.7 million. See Appendix C for figures illustrating this calculation. ❑ Cumulative loss - since this has been the case for many years, the total missed revenue and opportunity to invest in Saint John infrastructure and services could be $328 million (10 years), $657 million (20 years) in current dollars. ❑ Costs of "sprawl" - Much attention has been paid to the costs of dispersed settlement patterns versus compact development forms. From a municipal finance perspective, the issue is that extending infrastructure and services over longer distances increases costs without corresponding increases in revenues. Recent research for the Halifax Regional Municipality'2 (HRM) determined that the municipal costs to support growth in suburban and rural parts of the municipality are "subsidized" by the existing tax base. As in HRM, Saint John could serve a higher population close to the city centre at reduced costs compared to more distant developments. This is not accounted for in the analysis as this report simply examines the difference in property values for the existing housing stock as is, and not the potential for more residential units that could be developed near the waterfront and downtown without industrial property deterrents. 12 Stantec in Association with Gardner Pinfold. 2013. Quantifying the costs and benefits of alternative growth scenarios - Halifax Regional Municipality, Nova Scotia. -15- Greater Saint John Regional Task Force Analysis Lost revenues - now vacant properties In some acute cases property values have suddenly reduced and are converted to vacant lots. The 2018 butane pipe leak affected the value of houses on Pleasant City St. and River Ave. in this way and were subsequently purchased by Irving Oil Ltd. so landowners did not suffer a substantial loss. Although this helps address the needs of property owners, there is still a loss to the City as the assessment base and tax revenue is almost entirely eliminated. The online Provincial Property Assessment Database shows 21 properties on these two streets with assessment values that dropped from 2018 to 2019 (map below). The loss in assessment base was $1.9 million and the annual loss in tax revenue was $32,562. The tax revenue is lost for a number of years so it is useful to consider this in terms of a one-time value using a net -present value calculation with a 5% discount rate over a twenty- year period, and this amounts to $406,000 in lost revenue. According to news reports the residents that left those streets did not build new homes elsewhere in Saint John; some moved into rental units, some moved into other existing homes, and some moved out of Saint John 13'4 Therefore an offsetting increase in tax revenue from other properties in Saint John does not appear to be a factor. In addition, Saint John Water no longer collects $1,428 from each of these properties for a total of about $30,000 annually. Some of this may be captured at other properties where residents have re-established. 13 Smith, Connell. July 2, 2018. Appeals show property values tumbled following butane leak. CBC News New Brunswick (online: https://www.cbc.ca/news/canada/new-brunswick/irving-oil-butane-leak-rupture-emergency-evacuation-saint-john-1.4726948) 14 Smith, Connell. April 12, 2018. Irving Oil expands home buying plans in butane neighbourhood. CBC News New Brunswick (online: https://www.cbc.ca/news/canada/new-brunswick/butane-leak-evacuation-irving-oil-pipeline-break-environment-1.4616630) -16- Greater Saint John Regional Task Force Analysis Figure 2.4. Properties on Pleasant City St. and River Ave. demolished following butane pipe leak in 2019 17- 290 Greater Saint John Regional Task Force Analysis Benefits In theory, the municipality "recovers" costs associated with heavy industry properties through the collection of property taxes each year. Property taxes are a blunt tool for funding municipalities since they are not easily tailored to align costs and revenues for each property type. The City of Saint John estimates that tax revenues from heavy industry are about $12 million each year. An additional $9 million are collected by the Province from industry in Saint John, and some of the $17.4 million unconditional grant from the Province to the City could be derived from this $9 million collected. From the City perspective, just over $12 million in benefits flows from heavy industry properties. Cost -recovery summary Bringing together the cost and benefit findings we have the following summary observations: ❑ Direct costs - $2.5 million for roads, $1.2 million for fire, and not quantified for police ❑ Opportunity costs - up to $32 million for lost residential property tax revenues and lost residential properties ❑ Benefits - About $12 million in municipal tax revenue from heavy industrial properties Other types of business such as banks, retail, accommodations and others that do not incur costs like heavy industry are still obliged to pay property taxes as basic support for general municipal operations. The above cost analysis does not include any of this basic level of support expected from heavy industry, it only focuses on some of the exceptional costs. Current revenues certainly fall short of a providing for a full cost -recovery balance, and this indicates an unsustainable funding model regarding heavy industry costs to the City of Saint John. 291 Greater Saint John Regional Task Force Analysis 3. APPENDIX A Figure A.1: Moncton property analysis (center at Main and Lutz) ,0 0 00 00 00 4 km Figure A.2: Fredericton property analysis (center at Westmorland and Queen) -19- NO-% r,. )0 ;00 )00 )00 Greater Saint John Regional Task Force Analysis Table A.1: Average assessment values by distance from the center of Fredericton F500 F1000 F1500 F2000 F500(j Values Vacant 186.70 50.64 17.16 44.95 3.00 1 242,030 238,808 223,858 214,696 207,026 2 269,150 244,329 229,871 360,092 205,836 3 310,700 287,588 310,120 301,400 678,657 Properties Vacant 14 14 59 57 577 1 174 567 1,238 1,844 9,922 2 8 14 17 12 59 3 12 24 10 3 7 Table A.2: Average assessment values by distance from the center of Moncton M500 M1000 M1500 M2000 M5000 Values Vacant 119.95 55.38 37.69 10.00 3.03 1 171,061 165,681 158,817 145,621 158,758 2 161,001 161,162 169,446 161,287 173,494 3 214,693 180,795 187,513 189,300 241,789 Properties Vacant 49 85 40 37 351 1 167 609 998 1,315 8,310 2 69 232 145 38 312 3 14 75 48 25 75 -20- P4%Ic3 Greater Saint John Regional Task Force Analysis 4. APPENDIX B In addition to properties associated with the port, the figure below illustrates heavy industrial properties in Saint John, and the table that follows lists the property owners along with current assessment values for their properties and the number of land parcels included. Figure B1: Main industrial property areas in Saint John :SJ Truck Routes Is y Industry Properties 5 0 5 10 15 20 km Figure B2: Examples of heavy industry sites in Saint John -21- MOM, Greater Saint John Regional Task Force Analysis Table B1: Key industrial properties in Saint John 1 Cobalt Properties 462,900 4 2 Atlantic Wallboard Limited 11,533,200 2 3 Bayside Realties Limited 14,165,500 16 4 City Of Saint John 80,800 5 5 Classic Asphalt Ltd 173,200 2 6 Debly Resources Inc 779,200 2 7 Galbraith Equipment Co Ltd 32,400 1 8 Highland Operations Ltd 2,391,300 2 9 Irving Consumer Products Limited 17,443,200 1 10 Irving Oil Company Limited 227,221,700 16 11 Irving Oil Limited 121318,800 5 12 Irving Pulp And Paper Ltd 68,881,400 16 13 J. D. Irving Ltd 3,563,300 4 14 Moosehead Breweries Limited 12,156,600 2 15 NB Power Corporation 110,272,200 4 16 New Leaf Environmental Inc 729,300 2 17 NRB Construction Company Ltd 604,500 3 18 Osco Properties Ltd. 2,632,500 2 19 Power Commission Of The City Of Saint John 46,200 1 20 Praxair Canada 687,100 1 21 NB Dept Transportation And Infrastructure 4,000 1 22 Saint John And Maine Railway Co. 1,200 1 23 Saint John Shelter Ltd 539,400 1 24 Simpson's Truck & Tractor Parts Ltd 905,500 1 25 Smith, Gerald F & Patricia A 128,300 1 26 Strescon Ltd 9,445,100 3 27 The NB Southern Railway Co Ltd 66,500 2 28 Voyageur Properties Ltd 2,814,600 1 Total 500.079.900 102 -22- P"01 Greater Saint John Regional Task Force Analysis 5. APPENDIX C The following figures illustrate the potential property values and corresponding revenues totalling $32.8 million. This underscores the conservative approach since these still do not reflect property value patterns in other cities. $80 7'0 $50 $40 $30 $20 �w'fl GD $0 Property values cb �� l e Ica' Vacain$ $/sq,Im'fl — —V ar Int III j no $280,000 —1 Unit $260,000 fl unit II $240,000 —2 unit $220,000 unit II $200,000 3 unit unitIpla r�In�� SII �w'fl D,GDGDGD �u $160,000 ' $140,000 $1 20,000 caro e P 0 00 � < Tax revenues 9,000,000 3,000,000 7,000,000 6,000,000 5,000,000 41,000,000 I I I I I I 3,000,000 I I I I I I I 2,000,000 1,000,000 I I I y� y°•ra fit° EVac aIn ®V c Int II 25,000,000 IIIIIIIII fl Unit fl unit III 11111112 unit Z2 unit III 20,000,00 11111111113 unit "": unit III 15,000,000 Ilww, I mp liiiiiiium� '10,000,000 5,000,000 �+ �+ 410 ,e -23- 296 DeloitteS, Ag e iii ,iii da a n d P HI c iii n g Analysis Phase 2 1 Growth Agenda Review CONFIDENTIAL April 2020 297 Contents © Deloitte LLP and affiliated entities. W CONFIDENTIAL I Growth Agenda Review Executive Summary beeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ............................... © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 3 Executive Summary I Project Background and Objectives i�� wi.,�; Ly o S",a i� �l11 r.al ii i f.��:w"i�� i.��.vG fieri. Is�i. L s� I�i.��.ifs�i,w��i ��i� I vGf..L��f..i ivVi. i i� I�i.��;�vif.��:vv ��f �S:iii � �lr.al ii i I w -if i��n�" , ��i-��vvLI� agf. rich d i L idf..iri 'f'f' s a e,e �i. s ofi. i if r gy r e. aLed ch,,i( s, se v�r es arid iiwris vaL� �'or-i vv,I1ir I-i r sr,,iId ger-leraLe � i,e a s i i"'i Q v a l ,,i e f o i- L l i e � i L H t°nv Project Background The City of Saint John (the "City") engaged Deloitte LLP ("Deloitte" or "We") to conduct an independent review of Saint John Energy's ("SIE") growth agenda. Work was contracted under the engagement letter - SIE Growth Agenda Review and Pricing Analysis Support executed on November 18, 2019. The scope of services to be provided under this engagement were grouped in the following three phases: 1. Pricing Analysis: Preparation of a pricing analysis of the current state forecast of SIE based on a market view. 2. Growth Agenda Assessment: An assessment of SIE's growth agenda and related plans. 3. Updated Pricing Analysis: Perform an update of the pricing analysis (completed in phase 1) to include the projected cash flows associated with SIE's growth plans. © Deloitte LLP and affiliated entities. 300 Phase 2 Overview We have performed an assessment of SIE's growth agenda and related plans. The below list summarizes our approach and key activities which were undertaken to complete the assessment. Key Activities • Conduct a kick-off meeting with select stakeholders within SIE. • Obtain and review SIE's growth agenda plans. • Assess growth agenda assumptions, timing, and risks against a selected benchmark of industry peers. • Conduct working session with select stakeholders within SIE to: o Review our understanding and share benchmarking results. o Discuss key elements of the growth plan from a quantitative perspective including: amount, timing risk, challenges, and opportunities. • Coordinate with various economic development agencies and industry associations to obtain commentary in respect to the potential direct and indirect economic impacts associated with SIE's Growth Agenda. • Summarize analysis and working session outputs into a report format. • Review assessment with members of the City and SIE. CONFIDENTIAL I Growth Agenda Review 4 Executive Summary I Company Overview I ��; i.: l�' r � S-1 � ;��i.,i.. i �i ,)i..l "� r r �r g M`°r �,ii re Ia N �� °- 1 i.. i;. 1 "i �,i M i..1 � �� k,x �,i ii,°:1 .. L�, I I M I r �� i.':r � i ,��,� Ivi��i�leL., i,s vv 11 a—i �I�Jfa°)�s'i.�'.` ii�G,,isLi°y ��vi.��;r a��i.��; rh��,��.�i�li.��:y� ,��i�;��r�ira�aii raLL igs. About Saint John Energy Today Saint John Energy is a municipal electrical distribution utility serving light industrial, commercial and residential customers within the city limits of Saint John, New Brunswick. Currently, SIE is 100% owned by the City of Saint John. The below indicators provide a quantitative and qualitative snapshot of SIE's customer performance. • Over 36K customers, residential and light industrial • Strong Customer Support - National utilities surveys show SIE outperforming the national average in terms of customers willingness to recommend the utilities services. • Highly Reliable - Significantly low outage frequency and duration compared to national average As of 2019, revenues consisted of $113.7M of electrical sales and $8.8M of other revenues ($6M in products and rentals). Historical Operating Performance ($ Millions) 200 Q) Consumer products sales have grown 87.4010 in three years ' 150 r 100 .10 50 re in Asa r, o° iiiiii ler.,trur.,aV n0ther Source: Saint John Energy Annual Reports (2015 - 2018) © Deloitte LLP and affiliated entities. About Saint John Energy's Plans for Tomorrow The speed of innovation and disruption within the Power and Utilities ("P&U") industry is increasing at an accelerated pace. SIE management recognize these trends and has bold aspirations for the future. The overall objective of SIE's growth agenda is as follows: • Continue to provide the benefits of low rates and service quality to customers. • Strengthen the City of Saint John and surrounding regions through job creation and flow of surplus funds. • Advance and further establish the regional energy sector through various innovation efforts and partnerships. Due to various regulator/legislative constraints, SIE has developed two growth scenarios (high and moderate growth) as depicted in the graph below. Forecasted Operating Performance ($ Millions) 200 a) T, 150 m W 100 The widening revenue gap depicts the potential increased value 0 50 from the additional energy-related products, services, and 11 innovation growth initiatives U 301 Hgh Growth #11aderate Growth Source: Saint John Energy Growth Strategy (2020 - 2029) CONFIDENTIAL I Growth Agenda Review 5 Executive Summary Growth Agenda Overview Siiw Js� wii �wi.��i ��°wa gloLI: oi..r:G, �, ,m.o.li gs.�i�zi.��.f AsaIiii..i.��. I�ilf.oi.a sof �is�Iirmis� �s 1i..�:i.��.lafi.��;i..i:i.�;�is�w r -id L.,o ��i , r, rt i i ii..i,g ° Ti.�,�;r �rir i.n�, , s�' wii..� .1 i f � Planned Growth Initiatives Over the next 10 years, SIE has a list of growth initiatives that are broadly categorized into the following three categories: A. Renewable generation and storage B. Smart energy services for consumers C. Strategic partnership opportunities SIE has identified various growth initiatives in which they have or are planning to undertake. The table below categorizes these initiatives across three growth pillars. Growth Pillar Summary of Initiatives Renewable Generation and 1. Wind farm development to bring new green energy (e.g. Burchill Wind Project). Storage 2. Utility -scale energy storage to reduce peak energy costs (e.g. Tesla batteries). 3. Solar energy options for consumers (e.g. Community Solar Farm). 4. Developing a Smart Grid for the City of Saint John (e.g. Advancing the use of technology and innovation used on the grid and in customer's homes/buildings in attempt to smooth Smart Energy Services for peak usage). Consumers 5. Advancing and offering smart/connected energy consumer products (e.g. Hot water heaters, heat pumps, advanced batteries and electric vehicle chargers). 6. Delivering new products and services beyond the City of Saint John (e.g. Managed solar, electric vehicle charging, and energy storage). 7. Research institutes, firms, and technology (e.g. UNB, Tesla, CaSa, etc.). Strategic Partnership S. Launch SIE Centre for Innovation. Opportunities 9. Expanding utility services (e.g. Field operations, engineering, asset management, control room operations and managed utility technology). © Deloitte LLP and affiliated entities. 302 CONFIDENTIAL I Growth Agenda Review 6 Executive Summary Economic Impact Considerations I 'if.��li.':V'q I Ii.. J �� i..l I ;"°il'i�.�l'�� li.:��i.. �.� JV"" �i..l1 0 J J01'C��llil�li..`� j�"��. ��i.n�:� ��.� °. �IliL �1.ili �� '� ��J �.� 'V�{i �I1�II 1�� , �� ? .. 4 I �I � /� I I �I 1. . �n � � .. �I 1 `,1�� 1 �/11�� ,,1 � 1 '`.V I y'7 N `� .��n �. .. J 4 .��n N `� .. �I 1 1�� 1 � 1 � � � � 1,� � � I I . , 1. .��n .. I I � .. �� ,� I I „� I � � I �� I d �o�l � �k d �..1 �.�.. 1 � � 1 � I � . 1 � ... � � . � ^�; w,7 . , d ,d I � � .. I I � 1. .. I d ,� j k, ,� I � I .. I�. I I I 7 � �� j �V ',tel I �8 lL,,,ir . �,JI��,.l LG"�JII`7 s v,,ve e� --i e. d dl's Ll T`', "0, II VIVIL i �/ 1 I „k`7 �� f..1,J��If..1`� �,J ,J 9� i � it. Approach Overview As part of the growth agenda review we have collaborated with SIE and the City of Saint John to consider the potential economic development opportunities related to SIE's growth agenda. To develop an understanding of the potential opportunities related to SIE's growth agenda and related plans we: • Reviewed and extrapolated the key insights from the economic impact assessment conducted by Jupia Consultants Inc. ("Jupia") in January 2020. • Held information gathering sessions with various economic development agencies, government departments, and industry associations to obtain feedback/insights. Please refer to page 30 and 31 for a summary of the feedback/insights obtained. Forecasted Outputs 110 -Year Total by Scenario ($Millions) 1,600 1,200 O f� IpN O �" 800 Ilpllll blld� I.....ahour 400 ncon'uo 213.2 Labour 0 Income (:::7 D {:> Consun'uor xpend'uturo ulli Base' no mModerate uuui H'gh Source: Saint John Energy Economic Impact Assessment - Jupia Consultants Inc. © Deloitte LLP and affiliated entities. Forecasted Economic Impact Summary SIE engaged Jupia to perform an economic impact assessment of their historical and future operations. The 10 -year cumulative contribution to the provincial Gross Domestic Product ("GDP") for each scenarios was: • $457M for the historical period 2015A -2018A • $1,005M for the baseline growth scenario 2015A -2024F • $1,218M for the moderate growth scenario 202OF-2029F • $1,406M for the high growth scenario 202OF-2029F The estimated economic impact scenarios illustrate the increased economic impact associated to SIE undertaking additional growth initiatives. The table below outlines the increase in economic impact across other growth scenarios. Forecasted Outputs Variance I By Scenario ($Millions) Output O f� IpN O u�iuu ,fiiii N N I.....ahour Faxes ncon'uo 213.2 Consun'uor xpend'uturo ulli Base' no mModerate uuui H'gh Source: Saint John Energy Economic Impact Assessment - Jupia Consultants Inc. © Deloitte LLP and affiliated entities. Forecasted Economic Impact Summary SIE engaged Jupia to perform an economic impact assessment of their historical and future operations. The 10 -year cumulative contribution to the provincial Gross Domestic Product ("GDP") for each scenarios was: • $457M for the historical period 2015A -2018A • $1,005M for the baseline growth scenario 2015A -2024F • $1,218M for the moderate growth scenario 202OF-2029F • $1,406M for the high growth scenario 202OF-2029F The estimated economic impact scenarios illustrate the increased economic impact associated to SIE undertaking additional growth initiatives. The table below outlines the increase in economic impact across other growth scenarios. Forecasted Outputs Variance I By Scenario ($Millions) Output u�iuu ,fiiii Variance 1011111 ill GDP 213.2 Labour 77.4 Income Taxes 47.3 Consumer 57.7 Expenditure 303 187.8 67.4 41.0 50.0 400.9 144.8 88.3 107.7 CONFIDENTIAL I Growth Agenda Review 7 Executive Summary I Industry Observations w f , -i, -i i � w i, f f.,r....r f �o.. ,M . ,ir �f. arid f U�s.�✓..� i��..ii� .o�i��G ti��if�� ,��.s�i�i�,�a.o.�i��.��.wa 1�,� r.��. La.��..��.�i � ...af�as�ii�G��i � Asa �1�.. ,��,Ii ��i�� l s.��.��.i �i�� i��if��...a ay iia << ig se'giiif�r,11, a iL liivi..sLirii.:its dii.: i idf,,isbry. �,t'Hty a iii. s {i ave aIso i.��;.�I�li.n��,�,i..�V �� e i, e s L,, Lo,i,L r 'a,Lr.": i ii."° rii..`,,v i, ii.,l ci°v i.,r oV'io Cv Power and Utilities Overview Based our research on the Power and Utilities ("P&U") industry we have observed the following key trends: • Sustainability - Increased demand for clean energy sources. • Portfolio Optimization - Industry -wide development of distributed energy resources ("DER") strategies. • Business Model Transformation - External market factors are pushing companies to consider new business models. • Core Growth - Leveraging core capabilities to further advance smart city initiatives. Strategic Planning - P&U companies are planning for consumer adoption of disruptive technologies. Investment in Energy Innovation The Canadian government has been pursuing grid modernization and decentralization. To demonstrate their commitment, the government has been actively supporting investment in clean technologies. The department of Natural Resources of Canada ("NRCAN") Green Infrastructure Phase 2 program illustrates some of the federal funding made available to accelerate next -generation clean infrastructure. Green Infrastructure Phase 2 1 Total Funding by Project ($M) FUN I M Electric Vehcle infrastructure demonstrations 15 Source: Canadian Energy Sector Canada's energy mix is primarily produced from hydro, nuclear, and coal generating facilities. Increased grid modernization has resulted in utility companies assessing and deploying various smart grid technologies/initiatives, such as: Advanced metering New rate Demand response infrastructure ("AMI") options Distributed energy Micro -grid Self -healing grid sources Municipal Utility Landscape In 2016, the Electric Distributors Association ("EDA") conducted a survey of its local distribution company ("LDC") members. The objective of the survey was to gather opinions on the trends, drivers, challenges, and opportunities currently faced by the LDCs. Overall, the survey results revealed that municipal utilities are aware of the increasing importance of evolving their business to meet consumers future needs. The table provides a brief summary of the key opportunities and challenges. • Small scale energy Regulatory/compliance production/distribution Meeting customer • Expansion of services services/expectations • Improved/advanced Government technology policies/political pressure © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 8 304 Executive Summary I Summary of Review �� i�n � �� 1��,�I r� � �� w, ��e--id � a --id i-e� Led �� , � i,,n ��i��n �i ��f" ��i,n G res rr, I.. � I� LI. � w I I � 1 I :o, ch'all I I I I i � � , i � ,. .. [ I .III . ' i � �.. I I I . i,� `� V I koL I ,. � � L. I �� ;� I- ,� I " p i �� I V I I f.. L o r ' � � 4., §J i. r " V o "v d 0�II4 4 4 �d o�4 IIII ry,i 4 , 4 4q .. 1 N 8 4 4 4 L .��n �d 4 4 , h d �, 0^�-;4 4 4 „g0�4 4 o�4 . �n 4 .��.� ,� d� ��. €' M, J .,� s g 1 {{4 �V�.,ie1r-id r -id j G, �� aLed I.��n^�j; 1h g4 ^, { dl a is are ��n '` h'ci ied Lo id�,.i b ��y� b f.. id,"7 {j {I w4 `4 '`.V id I I�'Ji. ��;sb �er' s r, 1. 0' S'S' � , I/, da. Planned Growth Initiatives Based on the research and analysis conducted we have made the following key observations. For additional details, please refer to the Industry Benchmarking section as well as Appendix A and B. A. Power and Utility Industry • Consistent and aligns with overall industry trends and opportunities Growth Pillar and Initiatives 1. Renewable Generation and Storage Wind energy projects Utility -scale storage Community solar 2. Smart Energy Services for Consumers Smart grid investments Smart consumer products Managed solar, Electric Vehicle charging and storage 3. Strategic Partnership ODDortunities Partner with industry and academia Expanded utility services B. Canadian Energy Sector C. Municipal Utility Trends • Overall alignment to federal Consistent and aligns with industry government agenda and key peers past, present, and planned issues/opportunities identified by growth initiatives. municipal utilities. Power and Utility Canadian Energy Municipal Utility Industry Sector Trends Moderate Alignment: Some similarities in activities when compared to SJE's growth agenda and related plans. © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 9 305 Executive Summary I Concluding Remarks ww , ..... y � 1. �.o�i � o f I .....assessww f .� �-........ � f. S �� ...,. ff ...... f ..� ,,., ' g ......... ,. `�, , , II...� sof i,��J.i l�.��nl if s,�f �.� � if �i �,� Ili i �nj �,�� Z �,��. ��N�, f4i ,� � ...... f.��,� I�..... ,� ,,., f� I �� ,� ... �„��n i�4 � .o,� i�f i �,n4 ,�4 �.��n�4 I ;- ...--i .. s.. -) ,.. �, / I, ... �� e ..�1. f...� p.. I -fl �d 4o�411 1 1 di ��36�4 .��n�4 .��✓.n4i,�NV ibI p/ Nnr —i "',13P 4 arid Sr fti('a,,.. 4 p�., �//f,t 4 .di( ndd Nt r7 i , w �f1i4 1—ih .f r141ri g 4ie �JLH N of' d i(.. for 4",,,d(..vw ar-id d(..i-fif,. 'r-ici r offal )o " bb, i ��i��i��~'�� ii��i.��;�, �s� i�..�(.,� �,�Li.��;�� Overall Insights and Observations The below items summarize our review of SIE's growth agenda, industry research, and discussion with various stakeholders. • SIE's pillars of growth span across renewable generation, smart energy services, and strategic partnerships. A total of 9 strategic initiatives, at various development stages, were identified and reviewed across the three pillars of growth. • The forecasted economic impact assessment conducted by Jupia indicates the positive contribution of SIE's operations. The 10 - year cumulative GDP ranging from $1.0M to $1.4M based on the various level of completion of SIE's growth agenda. • Discussions with various stakeholders illustrated the support for SIE in pursuing these initiatives. In addition, stakeholders highlighted the following key barriers / challenges to operationalization: o Legislative constraints, political landscape, resourcing effort, consumer behavior and adoption, as well as technological and financial feasibility. • In 2017-2018, the National Resources of Canada ("NRCAN") department reported over $799M was spent on energy research, development, and deployment. • As of February 24, 2020, NRCAN reported funding 32 total smart grid and energy storage projects are either active or completed across Canada. These projects represent a total project investment of $314.9M • Overall, the vast majority of the benchmarked companies are exploring and/or executing on smart energy services and forming strategic partnerships. Whereas, deployment of renewable generation and storage projects are still nascent / developing across the benchmarked companies. © Deloitte LLP and affiliated entities. 306 Proposed Strategic Initiative Based on our review of SIE's growth agenda, industry research, and discussion with various stakeholders we identified continued collaboration will be the key to success for SIE. In addition to the demonstrated next steps in SIE's growth agenda and related plans, we would propose that SIE and NBP undergo a facilitated process to define what the Utility of the future could be in New Brunswick ("NB") and identifying collaboration opportunities for each of the utilities to participate / execute on. The diagram below provides a high level overview of this proposed process. Further details on the key activities, governance structure, and recommended parties involved are provided on page 11. Objectives: Define the Utility of the Future for New Brunswick as well as identify collaboration opportunities to execute. 6� F), Participants: Select members of SIE and NBP management team. Approximately 2-3 representatives from each organization. �IJj Key Outcomes: °"'o) 1. Defined Utility of the Future in NB 2. List of qualified collaboration opportunities 3. Roadmap to execute on select opportunities CONFIDENTIAL I Growth Agenda Review 10 Executive Summary Proposed Strategic Initiative ,. ,o l �„ �i �, e f , ,M s, f � r > „ l�naiii aiii a sof Ali.. Lays�L�s�.a..�G f,a, il�o..G I�ls� awe fs�y I�Il .o.alicG�ll� �s�G.�.f�li.��.li.��. illl��l s�G L[i.��. G ,a,ai.. lli 1�.��., i ��,� � .,r r , r, -i -i i w i��,� �� r a� r � -i „M, �G.��.i i�f aii o� L� �� illl.�as�� al��i i s�lal�s��ti�i —i L, ai i �G.. �� ala .o a.�� ... ti�is�i i �.al ai i L� resuIl Identify similar strategic priorities / initiatives for collaboration. Gather and assess SJE and NBP strategy documents for similarities 11 11 m11101 Collaborate on an Perform a SWOT analysis of each company r Facilitated working session to define the Utility of the Future in NB Facilitated working session Perform initial execution road map Identify qualified list of to align on opportunity details analysis of qualified for selected strategic collaboration opportunities and acknowledge legislative opportunities priorities / initiatives. and legislative change change requirements requirements Consolidate working Collaborate on draft Finalize execution session outputs execution roadmap, roadmap and launch including roles and execution responsibilities © Deloitte LLP and affiliated entities. 307 On-going progress monitoring to be conducted by joint project management leads CONFIDENTIAL I Growth Agenda Review 11 Establish Select 3rd party governance facilitator structure and objective Gather and assess SJE and NBP strategy documents for similarities 11 11 m11101 Collaborate on an Perform a SWOT analysis of each company r Facilitated working session to define the Utility of the Future in NB Facilitated working session Perform initial execution road map Identify qualified list of to align on opportunity details analysis of qualified for selected strategic collaboration opportunities and acknowledge legislative opportunities priorities / initiatives. and legislative change change requirements requirements Consolidate working Collaborate on draft Finalize execution session outputs execution roadmap, roadmap and launch including roles and execution responsibilities © Deloitte LLP and affiliated entities. 307 On-going progress monitoring to be conducted by joint project management leads CONFIDENTIAL I Growth Agenda Review 11 Executive Summary I Proposed Strategic Initiative �� :v s aaf I:i.�; I)� s�l�� ,i..ck f r it �.:v I�1s��..�,�, f a�iI dk�' lr i � �� ovVi.;f ii ilii.. io�� ili�:,Y of I wi:��. �,, sire i � I J.evv, i��,� � .,r r. �.� ., i w i��,� r � �r � r "I w �vG.��.i i��f � a�ii ova. �� ,s�Ilovl.��s�� w�i i s�h��h�s�i �tivi i��.�.wa �i �� vG.. v.��.Is�ha .ov � ��.�� v� .��.�.. tiv�is�i i �.�al �i i �v� �,�.1��.�. v.��. i f u, L' SII Jk Strategy Alignment Objective • Participate in a facilitated process to define the Utility of the Future in NB and identify strategic collaboration opportunities to execute. Activities • Select a non -biased third party to conduct and facilitate working sessions / overall process (the "Consultant"). • Establish the governance structure for the process, including: Steering committee members, status reporting cadence, deliverables, and working session participants. • Gather and review strategy documents of SIE and NBP. • Identify strategic priorities and operational and/or growth plans and assess for similarities. • Perform a SWOT analysis of each company. • Facilitated working session with select members of SIE and NBP to define the Utility of the Future in NB as well as review strategic and initiative similarities to identify 'win -win-win' (NBP -SIE -Province) opportunities for collaboration as well as synergy opportunities. • Consolidate working session outputs to identify qualified opportunities for further analysis. 0— Deliverables • New Brunswick's Utility of the Future defined • List of qualified collaboration opportunities to be further developed for execution. © Deloitte LLP and affiliated entities. M i°IIr�N�2 Execution Preparation Objective • Participate in a facilitated process to collaboratively develop an execution road map for the selected strategic priorities / initiatives. Activities • For each of the qualified opportunities, perform an initial level of analysis to identify estimated value potential, key activities and desired outcomes. • Facilitated working session with select members of SIE and NBP to review and update qualified opportunity details and align on: o Estimated value potential o Key activities / actions o Desired outcomes o Timing and interdependencies o Opportunity prioritization • Consolidate working session outputs to develop an execution roadmap outlining • Review and finalize execution roadmap with members of SIE, NBP, and the province. Deliverables • Execution roadmap, including: o Key activities / actions o Timing o Deliverables CONFIDENTIAL I Growth Agenda Review 12 SJE Growth Agenda Overview beeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ............................... © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 13 Growth Agenda Overview I SJE Growth Path ; ��... �iM .o. �� i : l n i ,k l o sI. a .��n .��n i ,o l l e.a e � .a 4 i .. �� s a .��n s l i . l :. i : �,t'hty iir-id�,isbry. dii's cif., iiiaiiagf..i. er,'11,,,.,ed o i,evera� 2� OV'VdI l rier reart gra 'd air -id r e ii.,vv aIaLe e ii..��nr gy ge ie LL'o Realized Growth Initiative Overview Despite the current regulatory constraints, SIE has pursued various initiatives to expand from a traditional energy distributor. Select examples include the following: • Heat pump program - In 2016, SIE introduced a heat pump rental program to customers to expand their consumer product offerings. The on-going success of this program illustrates SIE as a viable provider of consumer products. • Burchill Wind Farm - Since 2017, SIE has been embarking on a large scale project to bring wind energy to Saint John. Natural forces were selected to develop, own and operate the wind farm, in which SIE will purchase the energy generated. • Photovoltaics ('APV") Pilot - Since 2018, SIE has been conducting a solar demonstration project to collect data and assess the business case of offering as a viable option to consumers. • Smart Grid Projects - SIE is conducting a pilot project worth over $13M on various smart grid advanced response projects. SIE management were awarded funding from NRCAN in support of their various smart grid projects. SIE has gained industry recognition through several accolades: • ENERGYSTAR® "Most Efficient" Promoter of the Year Awarded to SIE for their mini split ductless heat pump rental program. Sustainable Electricity Company Designated to SIE based on successful completion of the sustainability requirements as well as continuing to deliver electricity in a sustainable and socially responsible manner. © Deloitte LLP and affiliated entities. 310 SJE's Record of Success Over the years SIE management team have identified and successfully executed on several initiatives to maximize the value provided to their customers and stakeholders. The table below highlights specific examples. Consumer Products • SIE has operated a hot water tank program for over 20 years. To date, 60% of electricity customers also rent a hot water tank. • The heat pump program has over 5,220 units with 10% of current SIE electricity customers renting. • Approximately 32% of heat pumps are outside the city. • This revenue stream has grown by 87.4% in the past three years and is worth $6.OM of revenue in 2019. Renewable Energy Generation and Storage • Since 2017, SIE has been actively exploring the use of renewable energy generation. • SIE is in the process of installing a 1.25MW large-scale Tesla battery to an artificial intelligence control program to reduce peak demand. This will be the largest utility - scale battery in Atlantic Canada. Customer Satisfaction • Internal customer survey indicated strong customer satisfaction. In addition, a national survey also shows SIE outperforming the national average. • Approximately 86% of customers are in favor of SIE pursuing renewable generation. CONFIDENTIAL I Growth Agenda Review 14 Growth Agenda Overview I SJE Current State Landscape - 1, .��ii�L�ls)I`1 l I i li:�,��I��-� i�� s�vvwli..�G I��°�� LI li.��; � ,i�y sof ��aii lL ��I li l �i l�G �E� � h�i1,i.��:i lel°-� �-I li.�: I��iii�i��y�y i..i li:��i��y �Gi�,�i,i4:��)h�Ls�y VviLl lii l About Saint John Energy Saint John Energy is a municipal electrical distribution utility serving light industrial, commercial, and residential customers within the city limits of Saint John, New Brunswick. SIE is currently 100% owned by the City and is currently limited to undertaken certain operating activities due to regulatory and legislative challenges. Since 2012, SJE's management have strategically repositioned the company beyond their traditional services. SJE's growth agenda is focused on innovation and executing on key initiatives across the following growth pillars: 1. Renewable energy generation and storage 2. Smart energy services for consumers 3. Strategic partnership opportunities Organizational Structure 'ied by the City Vision - 'To empower people and communities so they thrive.' Mission - 'We provide affordable, reliable and innovative solutions to our customers, helping them make informed choices so they can take control of their energy needs.' Operating Metrics (2018) The current products and services offered by SIE include the Number ...of�.�Customers �3K�� following: Annual Gigawatt hours 950 Total Revenue $121.7M Net Income $5.4M Net Promoter Score: Customer's willingness to recommend Utilities products and services. (Poor -100) (Good +100) Saint John Energy +25 Canadian Average -25 Source: Saint John Energy Annual Reports (2015 - 2018) • Electrical Sales: Energy provider for residential and commercial customers • Consumer Products: Water heater rental program and heat pump rental program • Lighting Services: Area lighting • Other Miscellaneous: Line cover-up and energy upgrade loans for energy efficient upgrades and heating systems © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 15 311 Growth Agenda Overview Planned Growth Initiatives ^�; "1 q�,r� M,% "`VII I � .,� i,� I I � i.��:� �� i��' NAV L',' I "`� ;� r........... f ...f � �� f. n I � , �4 ,.�4p I �, j .��n ,�4 � .. � ,M , %: o-�: � I f�� s......, �,�d .�4 I ,d a� ti,h � � .�. 1 I �,./f� s w ,� �....... f.��. w f � ... L.., ,,: , I I....... f �L......,.;� , ... �......... �. ,,., ,.�4 � J , . 1 4 � .0.�4 I ,�4 „� .��. 4 � .��n I (� ,d �„h 4 I �4 .��n j V�.,�4 ,. I �,� �� j -i I I I i g L ),) , i --i d e�� G< e � I f. n` T e {: I � I LL ' v s V f.: 4. ) r o, , cH �° r L e �� o �' z e� q �� N V I� I I I I b-iree g o ` v d-I Overview In response to the changing utility industry, SIE has identified various growth initiatives in which they have or are planning to undertake. These initiatives are categorized by growth pillars listed in the table below. The overall objective of SIE's growth agenda is as follows: • Continue to provide the benefits of low rates and service quality to customers. • Strengthen the City of Saint John and surrounding regions through job creation and flow of surplus funds. • Advances and further establishes the regional energy sector through various innovation efforts and partnerships. Growth Pillars Summary of Initiatives 1. Renewable Generation 1. Wind farm developments to bring new green energy (e.g. Burchill Wind Project) and Storage 2. Utility -scale energy storage to reduce peak energy costs (e.g. Tesla batteries) 3. Solar energy options for consumers (e.g. Community Solar Farm) 4. Developing a Smart Grid for the City of Saint John (e.g. Advancing the use of technology 2. Smart Services for and innovation used on the grid and in customers homes/building) Consumers 5. Advancing and offering smart/connected energy consumer products (e.g. Hot water heaters, heat pumps, advanced batteries and electric vehicle chargers) 6. Delivering new products and services beyond the City of Saint John 7. Partnering with research institutes, firms, and technology (e.g. UNB, Tesla, CaSa, etc.) 3. Strategic Partnership S. Launch SIE Centre for Innovation Opportunities 9. Expanding utility services (e.g. Field operations, engineering, asset management, control room operations, and managed utility technology) © Deloitte LLP and affiliated entities. 312 CONFIDENTIAL I Growth Agenda Review 16 Growth Agenda Overview I Renewable Generation and Storage of g1ov0:-iIV"IIt'J'a �ves a1i., `-id di.:Io-i sLi Les M.ari iL J,o-iI`i Ii.':i,gy`s ) Ll1`3Ll" L L0 )1"0 V"di.% ois�,i r�ers r er-i vv a� )�e er-i r gy vvv�i �e r i d�,ir �r-ig "")k i r,ergy de a -1d. 1. Local Embedded Wind Farm Context: • SIE is in the planning stages of various wind farm projects. • The first project is through a partnership with Natural Forces on the development of a $60M wind farm located in the City's Spruce Lake Industrial Park. The wind farm is planned to consist of up to 10 turbines and generate 20 to 40 megawatts. • Given the project stage, SIE has included this project into their financial forecast under both growth scenarios. • Additional wind farm projects are forecasted into SJE's financial forecast under the high growth scenario. Potential Benefits: • As a result of the wind farm, SIE is forecasting annual savings of $3M to $8M. • The development would absorb a large portion of underutilized/developed land owned by the City. Potential Barriers and Challenges: • Risk that structure is not optimized © Deloitte LLP and affiliated entities. 2. Utility -Scale Energy Storage Context: • SIE is examining and has partnered with Tesla to install one of the largest utility scale batteries in the Atlantic region. This would allow the ability to capture and store electricity at low demand times and be reinjected when demand increases, reducing the peak -demand prices paid by SIE. • In January 2020, SIE installed the 1.25MW Tesla Megaback Battery as a pilot project. • This project is in the feasibility stages. As a result, SIE management have not included in their financial forecast for either growth scenario. Potential Benefits: • Utility -scale storage would allow SIE to capture and utilize renewable energy more effectively. • Lower peak -demand energy. requirements would reduce NB Power's peak power generation. Potential Barriers and Challenges: • Developing business case for further deployment. (e.g. Technical and financial feasibility) 313 3. Community Solar Context: • SIE is in the planning stages of a large scale ground -mounted solar array project. Through this project, customers would have the ability to rent solar panels in the array and have the energy generated credited to their monthly energy bill. • SIE is currently conducting a Photovoltaic (PV) pilot project to assess the feasibility of solar energy generation for the City. The project will only proceed once there is a strong business case. • SIE management has included this project in their high growth financial forecast. Potential Benefits: • Customers would have the ability to lower their energy bill while also benefitting the environment. • The development would absorb a large portion of under utilized/developed land owned by the City. Potential Barriers and Challenges: • Delay in developing strong business case for execution. • Difficulties in attaining strong consumer adoption and/or educating customers on mechanics / economics. CONFIDENTIAL I Growth Agenda Review 17 Growth Agenda Overview I Smart Energy Services for Consumers A,, �oL.,aI of' fm,,ir giov0:li ir:�L�aL� r..s are m��Hr-ied vq[I�,J1l 0 S a rt J'di4i I��.��.� ,��° �a h�,�i �aLit' �� hais� 0cVi.� oI V s �i f."°i vv L i I` odf.,l"ri id e f iL Ji,od�i L` ,�I"iZG f.:i,v i,n`3 4. Smart Energy Consumer Products Context: • SIE currently offers consumer product programs such as hot water tanks and heat pumps. • SIE is assessing additional smart, energy efficient versions of these products to increase energy efficiency and customer control. • Given the project stage, SIE has included this project in their financial forecast under both growth scenarios. Potential Benefits: • Consumers have greater access to the latest energy efficient products at an affordable price. • Increased widespread efficiency would have a positive impact on the grid and peak -demand controlling. Potential Barriers and Challenges: • Difficulties in attaining strong consumer adoption and/or ability to change consumer behavior. © Deloitte LLP and affiliated entities. S. Managed Solar Context: • SIE is assessing the development of a rental program for solar panels to be installed on consumers residential and/or commercial buildings. • The potential rental program is still in the conceptual stages. As a result, SIE management has not included in their financial forecast for either growth scenarios. Potential Benefits: • Consumers have greater access to renewable energy sources. • Rental program would offer consumers an affordable monthly rate rather than initial capital cost. • Complements SIE's current energy efficiency programs. 6. Managed Electric 7. Managed Energy Vehicle Charging Storage Context: • SIE is currently assessing electric vehicle charging options to meet the expected shift in demand. • This project is in the early conceptual stages. As a result, SIE management have not included in their financial forecast for either growth scenarios. Potential Benefits: • Rental program would offer consumers an affordable monthly rate rather than an upfront investment. • Complements SIE's current energy efficiency programs. • Reduce and shift demand. Context: • SIE is assessing battery storage options for future residential consumers adopting renewable energy generation (e.g. Residential -scale battery system). • The potential rental program is still in the conceptual stages. As a result, SIE management have not included in their financial forecast for either growth scenarios. Potential Benefits: • Rental program would offer consumers affordable monthly rate rather than an upfront investment. • Complements SIE's current energy efficiency programs. • Energy stored may offset the peak demand loads. Potential Barriers and Challenges: • Difficulties in attaining strong consumer adoption and/or ability to change consumer behaviour. • Delay in developing strong business case for execution. (Technical and financial feasibility) • Resourcing constraints due to competing priorities or lack of adequate resources to successfully develop and/or execute on growth initiatives. 314 CONFIDENTIAL I Growth Agenda Review 18 Growth Agenda Overview I Strategic Partnerships of' �lur;e grs, v, :.,i rrii�ivL�, s are ci...;isa' i, t lsl-i ri '-�::ri „gY e Ls .n.a��lal�wal: o rga i i � v. LJ' o r-i � , L.,o f' ,,i rd-i . r i ir-i r-i v L., r-i d g o vv, S. Research Centres, Firms and Tech. Context: • SIE is planning to continue establishing strategic partnerships with various organizations and institutes to further innovate and develop growth opportunities around future solutions to energy needs and challenges. • In addition, collaboration with others will assist SIE in advancing their smart grid initiatives. • Due to unknown financial variables SIE management has not included in their financial forecast for either growth scenarios. Potential Benefits: • Consumers will benefit from an array of smart devices and products. • Energy solutions which reduce and shift demand will have a positive impact on the grid and NB Power. • Grow local renewable expertise and smart grid eco -system. • Opportunities to partner with existing smart grid initiatives and provide innovation platform. 9. SIE Centre for Innovation Context: • SIE is in the planning stages of their Centre for Innovation, which will foster the development of solutions and technology. • The objective of the Centre will be to increase the efficiency and effectiveness of utility companies by forging joint ventures with industry leaders. • This project is in the early planning/feasibility stages. As a result, SIE management has not included in their financial forecast for either growth scenarios. Potential Benefits: • New entrepreneurial ventures would be forged through SIE's accelerator for innovation. • Potential job creation by attracting companies to the region. • Advance the regional energy sector and the companies operating within it. • Grow local renewable expertise and smart grid eco -system. • Potential for revenue diversification through royalties. Potential Barriers and Challenges: • Resourcing constraints due to competing priorities or lack of adequate resources to successfully develop and/or execute. 315 10. Expand Utility Services Context: • SIE is assessing the potential to expand services offered in field operations, engineering, asset management, control room operations, and managed utility technology services. • This initiative is still in the early planning stages. However, given some of the known project assumptions SIE management has included some of these services their high growth financial forecast. Potential Benefits: • Consumers will benefit from additional service offerings. • Potential job creation opportunities from new utility services. • Potential synergy realizations by collaborating with partners in the Province on shared services. Potential Barriers and Challenges: • Resourcing constraints due to competing priorities or lack of adequate resources to successfully develop and/or execute on growth initiatives. • Delay in developing strong business case for execution. CONFIDENTIAL I Growth Agenda Review 19 Growth Agenda Overview I Considerations for Success r i er �--i r o o ri' f i, �� .. �. La � i i. i wa . i i i I�� i i . n Ex .� a� I�. i o i� i i� I e i a� i i .��. i .. i G. i f s .��. G �a . G .iii . Al, ie i. r'lgagi..iew-iL. Potential Barriers & Challenges The table below provides a summary of the top barriers and challenges which will need to be mitigated/overcome before SIE can fully realize their vision for growth. However, there is an opportunity to expand collaboration with other stakeholders to mitigate these barriers and challenges which will assist SIE to realize their growth agenda and related plans. Potential Barriers & Description Challenges Regulatory / Due to the constraints and uncertainty in regards to the regulatory and legislative environment, SIE Legislative is currently limited in performing/pursuing certain activity (e.g. geographical limitations, electricity generation, dividend potential, etc.). SIE has spent significant time and resources in order to move forward on existing growth initiatives. Political Landscape Collaborating with key stakeholders will assist SIE in pursing their growth agenda and realize the potential economic value generated for the province/region. Resourcing Effort SIE has a significant amount of projects identified and are actively pursuing. Therefore, SIE management will need to manage resources accordingly to ensure successful execution. Consumer Behavior Potential difficulties in attaining strong consumer adoption and changing usage patterns may and Adoption negatively impact SIE's ability to fully realize the forecasted benefits of various growth initiatives. Considering certain growth initiatives are still in the conceptual/feasibility stages of development, Technological and SIE management will need to prove the technological and financial feasibility before SIE can fully Financial Feasibility realize the potential benefits. For conservatism, financial results related to those growth initiatives are not included. © Deloitte LLP and affiliated entities. 316 CONFIDENTIAL I Growth Agenda Review 20 Industry Benchmarking beeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ............................... © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 21 Industry Benchmarking I Overview EPC,.. 00E I�o.,ebxra 11 0 L, 11 11 Vii..,of SJ , r�1��w�I� �gi.:i�d � aw�id � i.��:� a�i..,d ISI , i i � vwi.�: ��i..� fs�ririi.��:�� I ��:w�i� I-ii��w��hii�g i.n�i.�.� r is e oii I.,V-ii.,�; I .� � `�,� f , ;� II,.,....- � II II'e � �.. � II , I..... �.::. ��,,�. � II,., ;�..... �, II i��,� i .�....... �,,, 4 ��N�, M.j o�4 �� e,��L �L .,,n .d �4 �� J. ,d �j �� u.... „�4 io�� o�4i ,�,n i nj �� III II 11 7f. n��m��,�� I�4 i,�� lf.:�� h lk��md""V I II �^�; �Jr � �€i.';�7 i,�,�i.��r� "..V � I�� s. s. , ., , r'i , �V N��m��,�' 9 9 4�:� �V I""V da,, Benchmarking Overview A benchmarking exercise was conducted in order to assess the reasonability of SJE's growth agenda. The scope of the benchmarking exercise included performing research and analysis in the following areas: 1. ciil« l industry to understand: o Overall trends, challenges, and opportunities 2. Caii-iiidllitiro« industry to understand: o Key trends, challenges, and opportunities o Current market structures o Major innovation and investment areas o Key trends facing municipal utilities 3.investigate: o Corporate structures o Sources of revenues o Similar products and/or services offered o Alignment to SJE's growth agenda and related plans The following section provides the key highlights of the industry benchmarking exercise. Please refer to Appendices A and B for the supporting details regarding the comparable municipal utility company analysis and Canadian energy sector investments. Comparable Municipal Utility Company Analysis For the purposes of the benchmarking exercise, we have used the following municipal utilities. EPC,.. 00E I�o.,ebxra QE IN M Axk' TORONTO • London Hydro Il fl 'fl o G` ii ;;fi,a v e piliµ. C. N t I µ@ A q V i e s ,I lly II II ° The above municipal utilities were selected based on the below key variables / characteristics. • Business Mandate: Municipal utility responsible for providing utility services to their respective municipalities. • Restructured corporate structure: Holding company structure which is owned by their respective municipalities. • Size and diversity: Varying degree of size of operations as well as service offerings. • Innovation: Varying degree of adoption of innovation within their organizations. © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 22 318 Industry Benchmarking Power and Utilities Industry „ 1 F i as I LH, l C G. l G l l l G G l l l l .. as V e brad l la 1 Z. ,�G .. e 1 ,JG ,a s� .. V l 4 s 7°'1 .: ,., I�I I�, 7 I II I I 1 D" d e r,' .. l t, j .o,�V 4 4 A, ,� d d ,,i e Lo IIIr .��n � 4 � ;a� 4 i � 4 .� �t . o I �� J V k� �� J' t 1 V ,.f r ,,wi I� ' w �� 7�,1 j,. 1, h �, 4 k.,. ko��L �,� l �� d V � 4 „��n 7 4 j ,��n �I f "'e I—i j. ,� g I,.,,,,. ci —i ��,I f 4 .. 4 i � yr 4 4 � �,¢ �V � �h . n,�a.. �/ f u f, I ^, r . , 1 1 1 ,,,JI I .I I ,,. I" f r . ,.. 1 f � f" I 1 , ,, l'3,,., n �� , h � 4 4 � ¢ i,� � � � d `,�d �� j k, , h � 4 � 4 . , d �� . ✓ .n �� , n j `, d i�� i,� f ..� , w,. t f I v ('" a t,. ,., � f...� � � I .. 1 � d .��n 4 J , . 1 � � I . �n t, ' ;„ —i c" I I� fir" I f "�u I'" 4, / ,,, . I,,. w f °.� I—i ,.,,. ,�� 4 I �V � �,p 4 � �,p .��n 4 I J �. ;a� X I I � .. 4 i � Industry Overview In recent years, power and utilities companies have been seeking growth by leading the clean energy transition. Most power companies see expanding opportunities to address growing customer interest in clean energy and find new ways to manage and control their energy use and costs. The following key trends and opportunities were identified in Deloitte's 2020 Power and Utilities industry outlook: 1. Sustainability: Power and utility companies are expected to continue raising the bar on climate change goals; largely due to technological improvements, demand clean energy sources, and commitment to keep customers bills low. 2. Portfolio Optimization: New opportunities to create value through distributed energy resources ("DER") strategies (e.g. own/operate, sell/rent, install/maintain). 3. Business Model Transformation: New technologies, evolving customer preferences, and the changing competitive landscape are leading many power companies to explore new business models (e.g. transactive energy models). 4. Core Growth: Utilities in many cities have already installed smart grid infrastructure. The logical next step is to use their expertise, experience, and technology investments to advance their community's smart city initiatives. S. Strategic Planning: The industry sees significant potential in the transportation sector. Power and utility companies are expected to continue to invest in charging infrastructure and to accelerate plans to manage electric vehicle load. Decentralized Electricity Systems Traditional centralized electricity systems Y Y �N,^�i �i�� sk©lap,e y1 � ,i�,.,". yQ�AI �, vl,', End consurners with `oe``'c'k 'W`t` operator ®werslght often mean a one-way provision of �D W�"� Public ar private ��p�� s „" /F ��r elsetlue car storage electricity from power producers to �YRbV4C 4)I" Producer PL1wF-"I' 1'PdP1C4?I" industrial and end consumers. Key areas private Pray, '� r °ars, v, III6° huusi �uyuu l'uUg Public or private P1utiP power ponderer of change include: developers a • New types and sources of electricity ��ulliti/ _.,.., dln ). pa�ndu' tributory n ,II�1 `N Public private ii, 7 7y Storage JY�1�i',1� ulltitav,q End and the decentralization of the Public or private End developers ,,i,., �� A 'i�r'"" +.. �consu,nrele wikh electric car electricity grid. pnwNrproducer nen elm r - stu,agpe and 2J1 • Improving energy storage capabilities ': IYfV �� eleetriclty production • Focus on demand-side management (Public er private power Pr®duces and load shifting. © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 23 319 Industry Benchmarking Canadian Energy Sector 1 jferi�� 4 4 .��n S. e -fg its ,v, -i i ,I fg�"'i �If j „��n � . n d �o� j ,� d w.7 � ,J� j � wd �4 � � 4 a� � d �,� � 7 . n �. � a� j ,.�4 �.5 ,.�4 N `� I ,� .��n � ,d , h I �4 „�.j �� ,� I �,� ,.�4 4 � ,� �4 .��n� I N . 0�4 � ,� 4 � Y � .�^n�;�h �[ �/ , h �I4 4 4g 4j ,,,,. ' f t,� �d ,4 4 � 4 .��In � � �,� jd�` w4 {{� �J��; { ^�;4 j q die e d G, �. �'J f.. I i,� I )� � f.: i '"V i d �V d i,� 1,�� L i' o i o r€ i.'�: �V i/ e --i ..� cp �'`;� e �� e i L �^��;,J��^��; I��.9 L e r, I i,� I o ri € is n S Overview Data acquired through a recent report by MaRS Discovery District on behalf of NRCAN provided key insights in regards to the Canadian electricity market. Key observations include: • National energy mix predominantly generated in the form of hydro, nuclear, and coal. However, the Canadian government has been actively pursuing grid modernization and decentralization. • Across Canada there are two primary market structures within each province. 1. Vertically integrated: Operated by publicly owned monopolies which own the electricity market in the province (e.g. NB Power). 2. Restructured: Independent system operators ("ISO") manage the transmission system and set wholesale market prices. These systems are managed by utilities or local distribution companies ("LDC's"). The industry is undergoing a modernization process as utility companies have looked to integrate smart grid technologies such as: o Advanced metering infrastructure o New rate options o Demand response o Distributed energy source o Self -healing grid o Micro grid Source: Energy Market Information Report: Canada, MaRS Advanced Energy Centre © Deloitte LLP and affiliated entities. Key Issues Facing Municipal Utilities In 2016, the Electricity Distributors Association ("EDA") conducted a survey of its LDC members in Ontario. The table below summarizes the feedback on the key issues/challenges. Industry Trends Respondents expressed a strong desire by LDC's to expand their businesses such as: • Shared service models • Joint ventures • New lines of business within existing organization Scope of Services Respondents expressed a strong interest in ownership of new and emerging technologies such as: • Renewable generation and storage • Smart grid initiatives and electric vehicle infrastructure • Micro grid initiatives Key Challenges Respondents indicated the top challenges currently faced include: • Regulatory/compliance • Meeting customer services/expectations • Government policies/political pressure Key Opportunities Respondents expressed the top growth areas to be: • Increased focus on small scale energy production/distribution (Community power initiatives, Micro grids, etc.) • Increase range of services • Improved/advanced technology CONFIDENTIAL I Growth Agenda Review 24 320 Industry Benchmarking I Investment in Energy Innovation �e �U��vei �,��i, iL o �� iac w, , �:,�� i �.� � �� i��,��, �� i �� i "i"'i �� i�� ri � r -i � i i rgy ., �, r .� s � i" t ,��, j v� 7 d , over /f�� f �� I �� ,� ��.,�4 I ,�4 �4 .0.�4 , ,� J 2 n j ��d�. �� ,r' . �n � .��n� �„� � � � /,� � � I �� .. � /i�� i � i � I�,/i � o � /i � I I I ,� J .o.�V � ,� � � j ,� .��n �� ..7 � �4 J .��n j . n �� .��n 4 J . n �4 �„� ,� J ..� i � I � I. � .��n I k� Overview In 2017-2018, National Resources Canada ("NRCAN") reported over $799M was spent on energy research, development, and deployment by various governments As of part of Canada's investment in energy innovation the Federal government has implemented various funding, grant and incentive programs. Current energy-related programs include: • Energy Innovation Program • Clean Growth in Natural Resource Sectors Program • Green Infrastructure Phase II • Program of Energy Research and Development • Electric Vehicle Infrastructure Demonstrations In particular, programs offered under the Green Infrastructure Phase II include: • EV Infrastructure Demonstrations: Up to $15M for EV charging and hydrogen refueling infrastructure demonstration projects. • EV and Alternative Fuel Infrastructure Deployment Initiative: $96.4M to support establishment of a coast-to- coast charging network. • Smart Grids: Up to $100M to support utility -led projects • Energy Efficient Buildings R&D: $182M to support increasing energy efficiency. • Emerging Renewable Power: Up to $200M to support and expand commercially viable renewable energy sources. Investment in Energy Innovation As of December 16, 2019 NCRAN reported a 192 energy innovation projects across Canada. The table below provides a breakdown by province as well as the types of projects. Please refer to Appendix B for a list of all projects by province. EV infrastructure, business intelligence platform, integrated energy, energy storage, and demand response Tailings management, integrating distribution, and business intelligence platform Wind generation and storage, and low temperature geothermal Tailings management, transactive grid, MicroGrid projects, business intelligence platform, utility scale storage, and wind/solar generation Microgrid projects, EV charging, managed energy storage, wind generation, and integrated technologies Integrated resource network, grid innovation, load control technology, and dynamic voltage control Grid innovation, load control, and tidal energy projects Load control and virtual wind generation © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 25 321 Industry Benchmarking Municipal Utility Companies ,....... �.. �.. I, �-�....... i i i�� rf...� , l ......... � r .M ; , ....�� ( , ... �� f �.. j ;a� �d �d !� I . n t ,�,n . , n !� . �n �; � � ry� I I ,.� !� . . !� � ^�,� � � � ,4 I I � . n d �^�;........ i i ^, / !� 4 ..� .. � � "i I ia� §J f..��"`.V � ; '`.V �� I �I � f.: I i I ^, —v. --v. I !� "i 4 �� ,�,� I "5 7 !� f.: I � ��J,g I � f �� .."�� 4 7 (�'+�a� �a,�iiiL J,o-ii I iei gy s gi s� vv I �i��e Irk . a --id 1 f..IaLed I)P,i I"'11 Key Research Highlights Based on our review of the publicly available information related to selected municipal utility companies we have made the following observations as it relates to SIE growth pillars. 1. Renewable Generation and Storage - All benchmarked companies have implemented and/or view renewable generation and storage as a high priority growth item. 2. Smart Energy Products and Services - Although the benchmarked companies are in various stages in their smart grid journey they all offer some level of smart energy products and/or services. 3. Strategic Partnerships - All benchmarked companies view strategic partnerships as enablers for growth and innovation. We have observed varying degrees of willingness to expand in utility services. Moderate Alignment: Some similarities in activities when compared to SIE's growth agenda and related plans. Growth Pillar and Toronto Hydro Oakville London Alectra Initiatives EPCOR ENMAX Hydro Ottawa Enterprise ENWIN Hydro Utilities Corporation 1. Renewable Generation and Storage Wind energy projects Utility -scale storage Community solar 2. Smart Energy Services for Consumers Smart grid investments Smart consumer products Managed solar, EV charging and storage programs 3. Strategic Partnership O000rtunities Partner with industry and academia Please refer to Appendix A for details in regards to the comparable company information and key findings/observations. © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 26 322 Economic Development ("ED") Considerations © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 27 ED Considerations Overview / f.^.� P.. ./f��,� f /I f �,�`�,,i .� ,. f f��. f I............. f ... w `✓ ,�,n I iave J ,��n j ^��n J 4 „��n N `� . �n d L 4 i „��n j „��n �, „��n 4 I . , i,� I i,� I. I I..�. w 1, �..... .. , f ��.. �.. I w:, f k r,�� ,�d %o ,.. wd r' ^ . , , �d 4 4 .. ... ., f 1 ,,., ....... I j .. ,d �� j �,� I f..� ' L, ' � a I... j.,......... I , I �f �,� 1 i I. I .. �. X I �d �� j V @ 4 I 4 4 �„h , J. j „��n i,� d . , i ',,.,V o itII % (�� a ,r 'ry./ ( u f u t,., f t,. IY t,. G I o � �4 �4 � ,� I Y N `�, ,��n I .��n �4 1�^��;, , h 1 d 4�^�a;� I w.9 I o�4 JI� . �,,..: ` (y./ ir•, i I, t,., ( u f� i i w f� ( 'ti/ (�� a �Y 1 ( u ir• I� f f� ( u t,. ` ,. ',. ,., �,,.Y f� r• ,,,, ;;::, L' N `�, � II .0�4 j ,� � J. .��n �� ,� I ,� 4 14 �4 .n^ ,{��. ,� d 4 � I . �n I � �o�V ,� . n I ,�� .. 1/ I I �4 , h d k� � .�4 �d w,1 ,� � , �4 � ,� i ,d � a� �4^�;�4 {�� /. q�d�, r gJ 1 I I -;J �q '`VII I I f.: d f. , j '� d f.. ( t € �'J f. , i,� I M, % "`VII I .,� i,� I I I i�',�.� �k �` �4� i�� NAV I '`k f.. Ii '`V '`V8 f.. '"V f..4V i s,, Introduction As part of the growth agenda review, we were requested to consider the potential economic development opportunities. To develop an understanding of the potential opportunities we performed the following activities: • We worked with management to identify the key assumptions related to capital expenditures and labour requirements (full-time equivalents). • We reviewed and extrapolated the key insights from the economic impact assessment conducted by Jupia in January 2020. • We held information gathering sessions with various economic development agencies, government departments, and industry associations to obtain feedback/insights in regards to SIE's growth agenda. The organizations below participated in the information gathering sessions. ,#7S ATu.ANTICA _,. ",T ENERGY Bru : ; k Departments included: Finance Energy Natural Resources and Energy Development t it o Yy d p c;a4 oir ti I'M. c1061', 104*1 Energie NB Power © Deloitte LLP and affiliated entities. 0THE CHAMBER DEVELORIEN saintfolm jgnergy SJE Board Member 324 Approach Overview Collaborating with SIE and the City of Saint John to gather quantitative and qualitative economic development data in relation to SIE's growth agenda. Overall, our approach included two primary steps as listed below. 1. Economic Impact: Reviewed the recent work completed by Jupia for SIE we selected key points in relation to the forecasted (2019 to 2029) economic impact of SIE within the City and the province of New Brunswick under the following growth scenarios: a) Baseline Growth b) Moderate Growth c) High Growth 2. Feedback Gathering: Conducted a series of information gathering sessions with the adjacent organizations/departments. Key questions and areas of discussion included: a) Current relationship with SIE b) Potential workforce and economic benefit c) Barrier to success/operationalize d) Collaboration opportunities with other regional companies/organizations CONFIDENTIAL I Growth Agenda Review 28 ED Considerations Historical Economic Impact C) i.:r I li.�; fs�l,�l n i.. rs ( O l�.'w� ��0 1 �� -1L �I "� - � I ��a�gy � ��Fl ' ��Is�l I � �I�i.n ��:��1111��.:�� s� I �� i.. � r�al l�ll�ll:��h��i..�� "�D C) '141 s� Ili. ��s� 'I( l:o l U�I��kr hal Ili.:��111s�1i.�;� Ilia; � � -iL J,o--ill 1 g'o--i [ia � ��x Awa 111 —iy IIId�'vL' G,,ia� � vv01I<IIIg I I d' --ie eer rr °v cdi..I le LL'OI"i,. brarl sI�I `'; `�Iti,�I4� raid dG'sbr� LILI0V'1 I-IdLisbr°v r OILo d{"ii.. , -i �d"a" I I,ve raQe Historical Impact Summary The estimated economic impact from SIE's historical operations over the past four years primarily consist revenue generated from existing streams (Electrical sales, consumer product rentals, lighting services, and other miscellaneous revenue) and capital expenditures. Historical Economic Impact According to Jupia, over the past four years (2015-2018) SIE's operations have had the following impact on the provincial economy: • $379.3M in total gross domestic product ("GDP") • $139.9M in total labour income • $82.1M in total taxes • $103.9M in consumer expenditures Additional Economic Considerations The overall Saint John electric utility sector acts as an important economic contributor. Statistics Canada reported that 1,100 people work directly in the Saint John electricity generation, transmission, and distribution industry; of which 10% are employed by SIE. In addition, this workforce subset are highly skilled workers which are paid a premium relative to other industry's. For instance, Statistics Canada reported the industries which earn the highest wage premium to be: • 111% Data processing and related services • 109% Specialized financial services • 77% Paper manufacturing • 74% Electric power generation, transmission, and distribution © Deloitte LLP and affiliated entities. 325 Historical Financial Inputs ($Mii/ions) A:Actual 2015A 111.2 11.0 5.0 2016A 110.0 12.6 3.6 2017A 114.1 13.8 11.3 2018A 121.7 14.8 10.0 Source: Saint John Energy Economic Impact Assessment - Jupia Consultants Inc. Employment Index Electricity generation, transmission, and distribution industry (Canada = 1.00) t slhawa, ON zaiiu'ut .:1r ihii'i, 1'413 Mi'iii'ii >ecg, 111: ::dll"YOC1u'VtC1u'V, Aii"a 11117! 1.12 YWV E 1.91 Saint John has 2.8x as many people working 1.7 compared to national average. 0.0 1.0 2.0 3.0 4.0 5,0 Source: Saint John Energy Economic Impact Assessment - Jupia Consultants Inc. CONFIDENTIAL I Growth Agenda Review 29 ED Considerations Baseline Growth Economic Impact w f i� r ,� � i -i �, rrr~ f ;� y f. �� L ...,�,, , lr .�, �. 1(. .. I f.a .. I I x.,�, . �.. � S I I i lr �l x.,� I I 1 L Irr 1 . I , �° , s � �,�� .��. � I s a l I , y�i.. i.. � � I I � I i.��. G s.a s � I y� I l a �, � E. Ll FI Li a v oL".af of $ 1 2k3 Lo Elim.I)i,o',`vl" iISI GI�� Baseline Growth Summary The estimated economic impact from SJE's future operations under the baseline growth scenario is based off the following: • Four years of actual performance (2015 - 2018) • Six years of forecasted performance (2019 - 2024), which assumed a marginal growth of 2% annually. Projected Economic Impact According to Jupia, over the 10 -year forecast (2015-2024) SJE's operations are projected to have the following impact to the provincial economy: • $1,005M in total gross domestic product ("GDP") • $371M in total labour income • $217M in total taxes • $275M in consumer expenditures © Deloitte LLP and affiliated entities. 326 Forecasted Financial Inputs ($Mii/ions) A:Actua l F:Forecast fff�i(fl1171111111f ILII IIIII�I�IIIIIIII IIII IIIIII�IIIIIIIIIIIIIIIIIIIIIIll�lllllll�lllll IIII I/��lll�l Ilffff ffll�lll�ulllllllllll III�IIIIIIIII Ill�lllrllll 2015A 111.2 11.0 5.0 2016A 110.0 12.6 13.6 2017A 114.1 13.5 11.3 2018A 121.7 14.8 10.0 2019F 119.3 13.5 11.7 202OF 120.8 14.0 9.3 2021F 123.8 14.5 11.7 2022F 126.9 15.1 11.6 2023F 129.1 15.7 8.4 2024F 131.1 16.3 7.4 Source: Saint John Energy Economic Impact Assessment - Jupia Consultants Inc. CONFIDENTIAL I Growth Agenda Review 30 ED Considerations Moderate Growth Economic Impact w f i� r ,� f i -i �, rrr~ f ;� y f. v ,.��. i lr I ,.��. f x ,� i ...,�,, , lr .�, �. 1(. .. i f.a .. i i x.,�, r. �.. � i i i i lr �l r.,� I i I L irr l . i , �° , s � �,�� .��. � i s a i I , r�i.. i.. � � I i r i i.��. vG s.a s � i r r� i l a �, � E. Ll Fi Li a v oL".af of $ 1 2k Lo LI lir. Ire o', vi" iel G Atfro L -i e r r,'oi i.. srE;ri..r"L,i"o', � LI li.. ":)i, rear y r s rwt H)� ,Ao Lo d-ie e(1,ow"'io rikll vfrog ri dV,-ii.. vviirid Moderate Growth Summary The estimated economic impact from SJE's future operations under the moderate growth scenario is based off the following: • Continued growth in core operations (e.g. Distribution) • Increase in consumer products revenue (e.g. rental programs) • Smart grid investments (e.g. NRCAN projects) • Wind energy generation (e.g. Burchill wind farm) Projected Economic Impact According to Jupia, over the 10 -year forecast (2020-2029) SJE's operations are projected to have the following impact to the provincial economy: • $1,218.6M in total gross domestic product ("GDP") • $448.2M in total labour income • $264.7M in total taxes • $333.OM in consumer expenditures © Deloitte LLP and affiliated entities. 327 Forecasted Financial Inputs ($Mii/ions) F:Fomcast I1°°!P�I111l� �IIIIIIIIIIIIIII�UllUy111y�JJJJJJ��lll��lll��"((fflt(��(U(r�1�111��'G�ll�((rr(U��I1JD1�� 202OF 121.1 12.3 23.2 2021F 124.5 13.6 23.1 2022F 140.2 14.3 28.1 2023F 143.1 14.9 11.1 2024F 145.5 15.5 9.2 2025F 147.9 16.1 9.0 2026F 150.3 16.6 11.0 2027F 152.8 17.3 9.0 2028F 155.3 18.0 10.6 2029F 157.9 18.4 10.6 Source: Saint John Energy Economic Impact Assessment - Jupia Consultants Inc. CONFIDENTIAL I Growth Agenda Review 31 ED Considerations I High Growth Economic Impact C1�� Ifs��yea i, "',)enocG, o ia L�oil a ori ....sLa L., ed L',,o 0ilL,l Ll L, a �Ll Li f,o�Li o L., a o f $ �i'l�3 �' -i i o" w, r ,�Al � � w, ,� i L',, I�� .� I L��e %fiwai G.. f� �i Io �� .. a�I�..� i ail � [I.. f�� ii�� it ii iL��a, �i [�.��... �iI �i Ii Itis.. . i I� f� "I'l vmil"�'m,i , rer-ievval)fe er-lerr Vq r -i d a --i d solar). High Growth Summary The estimated economic impact from SJE's future operations under the high growth scenario is based on the following: • All projects included in the moderate growth scenario • Additional wind energy (inside and outside of Saint John) • Community solar program • Additional utility services Projected Economic Impact According to Jupia, over the 10 -year forecast (2020-2029) SJE's operations are projected to have the following impact to the provincial economy: • $1,406.4M in total gross domestic product ("GDP") • $515.6M in total labour income • $305.7M in total taxes • $383.OM in consumer expenditures © Deloitte LLP and affiliated entities. 328 Forecasted Financial Inputs ($Mii/ions) F:Forecast Illlllllllllllllllllllllllll��iolllii�i�»11� Il��11Uy111y�JJJJJJ��111�°(ffftt��o��rr�1�11��'��6�U111JJ� 202OF 121.1 12.3 23.2 2021F 127.7 13.6 31.9 2022F 146.2 14.3 45.3 2023F 157.8 14.9 28.7 2024F 161.5 15.5 25.4 2025F 174.8 16.1 14.0 2026F 178.3 16.6 14.0 2027F 182.1 17.3 12.2 2028F 185.7 18.0 13.0 2029F 189.5 18.4 12.6 Source: Saint John Energy Economic Impact Assessment - Jupia Consultants Inc. CONFIDENTIAL I Growth Agenda Review 32 ED Considerations I Overall Economic Impact ,. r r w, i I l .��. f i .. ,�. .��. vG .��. I .� I ,. )d,,,- ..a , . a a I .��. I I of , .. vG L�r y -'Ll f a o .� I S , � I vG .��..a I .��. f�a .� a v .... ,�..� I .� 0i1L",I,ail0f .�� ii L �l �[lil 1.�� r a �Gr..i i.�ila vrt-ieiirl re, add --ia ai10 i�li, valtiv.. is v�' served d o is'di. r�'rivi d' --ie dG f fe e ir,'Il s I)e Lv�vi.nei i Lf --ie Ir a TeIii ie ar-id vir ov,,vd-1 ,r e ri anos Overall Economic Impact Further assessment of the difference between the baseline and high growth scenario in the 10 -year total forecasted economic impact illustrate the positive impact from SIE's growth agenda and related plans. • $400.9M or 39.9% total increase in GDP • $144.8M or 39.0% total increase in total labour costs • $88.3M or 30.1% total increase in total taxes However, additional items should be considered when assessing SIE's total economic impact: • Lower rates - Saint John customers save approximately $10M annually due to the lower rates provided by SIE. • Trusted Advisor - SIE offers free energy advising services to customers to help them improve their home efficiency. • Charitable Giving - SIE is forecasted to provide a total of $1.8M to charities over the next 10 -year period. • Wivi «> nd - SIE management have indicated the potential of a dividend of $17M to $48M over the course of the 10 -year period, pending legislative changes. Regardless of the growth scenario, it is apparent that SIE provides a positive economic contribution to the City of Saint John as well as the province of New Brunswick. © Deloitte LLP and affiliated entities. 329 Forecasted Outputs 110 -Year Total by Scenario ($Millions) 1,600 Ilplll� 11.2200 ppuu 800 Ln 400 Voll M Ullllll cif N i N �111��11 0 G1[)7I::' 1.....albouir n axes Coinsuirneir l in co erne Ex Ipe nd iituwu ire uuui Baso�uno mModerate uuui H'gh Forecasted Outputs Variance I By Scenario ($Millions) Output Variance GDP 213.2 187.8 400.9 Labour 77.4 67.4 144.8 Income Taxes 47.3 41.0 88.3 Consumer 57.7 50.0 107.7 Expenditure Source: Saint John Energy Economic Impact Assessment - Jupia Consultants Inc. CONFIDENTIAL I Growth Agenda Review 33 ED Considerations Feedback Gathering Al"�� t o" f L' 1 i ev�evv o f S -1wa �is.��,1 l ��..I�Go� o�l�� ..I �L��.�G h��o��l.a ��,.��. llo� v.��. ��1�.��.i v�.��.vv..�G �� G�ff.�.i .��.r1� s>> ,�o�rli��.o�L�s�il.� Oii d V 0" e -i L',' o 0, 1L,l"I"L' i.nr3�� Introduction As part of the SIE's growth agenda review, the City has requested as part of the review to consider the potential economic development opportunities to gain insights and perspectives from various economic development agencies, government departments, and industry associations in regards to SIE's growth plan/initiatives. The purpose of these meetings were to obtain the relevant perspectives and points of view on SIE's growth plan around the following three growth pillars: 1. Renewable Generation and Storage 2. Smart Energy Services for Consumers 3. Strategic Partnership Opportunities The key areas of discussion in relation to SIE's growth agenda and related plans included: A. Current relationship with SIE - Current or past experience and/or initiatives B. Potential economic benefit - Perspective and point of view on the potential economic value C. Barriers to success/o pe rationalization - The potential challenges and/or considerations D. Collaboration opportunities - Perspective and point of view on any opportunities for SIE to partner/collaborate with other regional companies or organizations The organizations below participated in the information sessions. 010{g,.. ..„ t,�ry�aci6sor A a<rocotien� " 4 "^IC "`C"T1�'" ."�' *r i i CIY0P; 11' 0701 ldOenl'e > .. r`ORENIGI' G Association del'Meatricft, BE= E.". C 0 N M III k, f,'YFV 'xAl:'SY".1(7 IhC S aintj hn Departments included: ONB kner Bruns i& Finance Energy rg y Natural Resources Opportunities oortunitzsEnergie NB Power and Energy ppPJ� S7E Board Member Development © Deloitte LLP and affiliated entities. 330 CONFIDENTIAL I Growth Agenda Review 34 ED Considerations Feedback Gathering Al"�� t o" f L' i i ev�ev,,v o f S J, wa �is.��,1 � ��..--i�Go� o�--i�� ..I �L��.�G h��o��.a ��,.��. l�o� v.��. ��.��.i ��.��.��..�G �� G�ff.�.i .��.r�� s>> ,�o�rii��.o�L�s�il.� Oii V 0" e -i L',' o 0, 1L,l"I"L'i.nE"3' Information Gather Session Overview A total of 8 organizations took part of the feedback gathering sessions. The summary below captures the feedback obtained from these organizations. Relationship with SIE The majority of participating organizations indicated they had some experience in working with SIE on past initiatives. Economic Value The majority of participating organizations foresee some economic spin-off opportunities such as: • Attraction of businesses to the region • Indirect benefits across the supporting supply chain • Strengthening the regional energy industry • Development of an innovation district for energy with speed to market • Resulting economic spin-offs from new businesses, jobs and population growth Barriers to Growth The majority of participating organizations reported the following barriers: • Regulatory/legislative challenges which reduce SIE's ability to execute on growth initiatives • SIE has historically collaborated with various stakeholders. However, difficulties in collaborating with key stakeholders may impact timing of execution • Benefit realization and overall provincial impact could be minimalized absent coordination across key stakeholder groups • Misinformed consumers which could impact adoption rate Collaboration Opportunities The majority of participating organizations indicated some collaboration opportunities: • Continued strategic partnerships with key companies (e.g. Tesla, CaSa, etc.) • Leveraging Saint John's industrial base as a test hub for innovation • Regional utility joint efforts (e.g. NB Power, NS Power, etc.) in areas such as joint ventures on projects, innovation acceleration, optimization of product/service delivery and synergy realization through shared service collaboration © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 35 331 Appendices beeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ............................... © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 36 Appendices II E 0 � 0 „ i, ' " 1, ;r Appendix A — Municipal Utility Benchmarking EPCOR Utilities Inc. ENMAX Corporation Toronto Hydro Corporation Hydro Ottawa Oakville Enterprises Corporation (OEC) ENWIN Utilities Ltd. London Hydro Alectra Inc. Appendix B — NRCAN Current Investments British Columbia, Alberta, and Saskatchewan Ontario Quebec and New Brunswick Nova Scotia and Prince -Edward -Island © Deloitte LLP and affiliated entities. 333 38 39 41 43 45 47 49 51 53 55 56 57 58 59 CONFIDENTIAL I Growth Agenda Review 37 334 Appendix A I EPCOR Utilities Inc. Company Overview EPCOR builds, owns, and operates electrical, natural gas and water transmission and distribution networks, water and wastewater treatment facilities, sanitary and stormwater systems, and infrastructure in Canada and the United States. EPCOR provides energy services to 600K customers, electricity distribution to 380K customers, and water and wastewater services to 360K customers. The City of Edmonton owns 100% of EPCOR and receives a quarterly dividend based on percentage of net income that is reviewed annually by the City of Edmonton. This dividend has grown from $62.3M in 1996 to $171M in 2019. Operating Metrics (2018) Number of Customers +2M Total Revenue $1.813 Net Income $295M Dividend $166M Source: EPCOR's 2018 Audited Consolidated Financial Statements © Deloitte LLP and affiliated entities. Organizational Structure �ty,�f Eda�taiiP' Offerings Overview The current services offered by EPCOR include the following: • Energy provider for residential and commercial customers • Sales and distribution of natural gas to residential, and commercial customers • Commercial and residential water services, which include services for water mains, fire hydrants, valves, manholes, leak detection and drainage • Flood mitigation and prevention services • Communication systems, lighting systems, signal systems, and power systems • Engineering, construction, and maintenance services for infrastructure projects 335 CONFIDENTIAL I Growth Agenda Review 39 Appendix A I EPCOR Utilities Inc. Strategic Initiative Category Relevant Comparators (if any) Renewable Generation and Storage Earlier this year, EPCOR received approval to construct and operate a solar farm Alignment to SJE's initiatives including a battery energy storage system with the purpose of establishing a renewable x Wind energy projects energy source to help power their water treatment plant and distribution processes. The ✓ Utility scale storage current design includes up to 45,000 solar panels which would generate enough energy x Community solar to power over 2,800 homes. Other relevant initiatives include: Micro -generation (less than 5 MW) in Alberta allows consumers the right to generate • Support services for micro -generation customers their own electricity and supply it back to the electrical grid. Currently, EPCOR offers (e.g. Solar) support services for consumers to ensure the energy produced is reliable and safe. • Over the next five years, EPCOR intends on investing in renewable energy (Solar and Bio gas facilities) generation within its geographical footprint. • EPCOR offers bundling services (ENCOR) which allows consumers the option to only receive energy produced from renewable sources. Smart Energy Services for Consumers Alignment to SJE's initiatives ✓ Smart grid initiatives (e.g. network infrastructure) x Smart consumer products x Managed services Other relevant initiatives include: • Support services for consumers adopting smart energy products and emerging technologies. • In 2015, EPCOR began replacing existing meters with new Advanced Metering Infrastructure (AMI) which aligns with smart grid plan to improve operational efficiency, resource planning and system reliability. • In Ontario, EPCOR has established a net metering program for consumers who generate their own energy. The program offers customers the ability to reduce their energy bill and receive green energy credits based on the amount of energy provided to the electricity grid as well as reduces the need to purchase energy storage systems. • EPCOR currently does not provide services in relation to electric vehicles (EV) (e.g. EV charging stations). However, the company actively monitors the adoption of in-house EV charging installations to observe the loading impact to local infrastructure. Strategic Partnership Opportunities In 2015, EPCOR partnered with the University of Alberta to perform a study on the Alignment to SJE's initiatives impacts of distributed energy resources in their distribution network. ✓ Partnering with research institutes, firms, and EPCOR Technologies offers integrated engineering, construction, and maintenance technology services to municipal and provincial governments, utilities and private companies. This x Centre for innovation company acts as an unregulated operating subsidiary of EPCOR Utilities Inc. ✓ Unregulated operating entity (EPCOR technologies) to innovate Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 336 40 Appendix A I ENMAX Corporation Company Overview The ENMAX group of companies ("ENMAX") generates, transmits, distributes, and sells energy to select customers in Alberta. ENMAX is responsible for distributing electricity, natural gas, and renewable energy to more than 900,000 metered sites across Alberta. At 2018, ENMAX employed 1,800 people and invested $3.8M in the community through cash, employee volunteer time, and donations. From 1998 to 2018, over $1 billion in dividends have been contributed back to the City of Calgary, the sole shareholder. ENMAX's dividend policy is to pay out the greater of $30M or 30% of prior year's net earnings, dependent on factors such as liquidity requirements and financial performance. Operating Metrics (2018) Number of Customers 668M Total Revenue $2.413 Net Income $149.2M Dividend $40M Source: ENMAX Annual highlights and 2018 Audited Financial Statements © Deloitte LLP and affiliated entities. Organizational Structure Offerings Overview The current services offered by ENMAX include the following: • Electricity: Assists with providing energy options for home or business • Renewable: Help power residential homes with green sources • Meter: Meter reading, meter testing and repairs, meter install, and removals and upgrades • Engineering and construction: Services for residential, commercial, and industrial projects • Energy solutions: Providing energy and utility service solutions for energy plans, solar, telecommunications infrastructure, grid modernization, distributed energy and storage • Municipal solutions: Assisting with municipal infrastructure, energy plans, alternative energy and customer support 337 CONFIDENTIAL I Growth Agenda Review 41 Appendix A I ENMAX Corporation Strategic Initiative Category Relevant Comparators (if any) Renewable Generation and Storage ENMAX is one of Alberta's largest investors in renewable energy through their co - Alignment to SJE's initiatives ownership (50%) of the 75 MW McBride Lake wind farm, 100% ownership of the 80MW ✓ wind energy projects MW Taber, and 63 MW Kettles Hill wind farms. ✓ Utility -scale energy storage Since 2009, ENMAX has provided consumers with the ability to purchase or lease solar ✓ Community solar generation system for their homes. However, the systems are not equipped with battery Other relevant initiatives include: storage and instead connected to the grid. • Support services for micro -generating residential Several solar installation projects have been conducted throughout various communities and commercial customers and municipalities. For instance, the Town of Raymond, Alberta leases solar panels from • Leading solar retailer (51% of Alberta's grid- ENMAX generates the electricity needed to operate various municipal buildings and street connected solar) lights. • ENMAX is in the process of performing a pilot project to demonstrate on-site solar generation (1MW) and a 2MWh lithium -ion battery storage at a gas plant. • ENMAX's Solar Program offers a way for communities to leverage solar as an alternative source to their energy needs. To date, over 1,000 solar systems have been installed. Smart Energy Services for Consumers In 2018, Natural Resources Canada ("NRC") provided $1.4M in funding to ENMAX for the Alignment to SJE's initiatives development of a smart grid. The project is focused on integrating onsite distributed ✓ Smart grid initiatives energy resources to the primary power grid. ✓ Consumer product programs In 2019, ENMAX Power launched the pilot program 'Charge Up' to study how consumers ✓ Managed services use EVs as well as their potential impact on the electricity system. As a part of the Other relevant initiatives include: program, ENMAX will offset the cost of the equipment to the selected individuals and/or • EV pilot program to study EV charging station businesses. However, only approved vendors are allowed to install residential and impacts commercial EV charging stations. • ENMAX Energy provides purchasing and leasing options of solar systems. ENMAX does include battery storage with the panels. ENMAX provides a 24-hour online platform to monitor the panel and provides installation, assistance with permits, equipment and commissioning of the system. To date, 600 solar systems have been installed which represents approximately 50% of the systems installed in Alberta. Strategic Partnership Opportunities ENMAX entered into a joint venture with TransAlta Renewables, Inc. on the 74MW Alignment to S]E's initiatives McBride Lake Wind Farm. ✓ Partnerships and joint venture on projects and ENMAX partnered with the City of Calgary to establish a co -generation system for studies combined heat and power ("CHP") system. x Centre for innovation In addition to traditional utility services, ENMAX currently provides the following services: ✓ Expanded utility services Energy plans, solar installation programs, energy management services, infrastructure services, combined heat and power programs, and district energy. Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 42 338 Appendix A I Toronto Hydro Corporation Company Overview Organizational Structure Toronto Hydro Corporation ("THC") owns and operates the electricity distribution system in Toronto that delivers electricity to approximately 18% of the electricity consumed within the province of Ontario. Toronto Hydro Corporation wholly owns Toronto Hydro -Electric System Limited and Toronto Hydro Energy Services Inc. THC is in the process of updating their grid. Since 2006, THC has invested $513 into distribution equipment. THC's dividend policy is to payout 50% of the consolidated prior fiscal year's annual consolidated net income or a minimum of $25M per year paid in quarterly installments. Operating Metrics Offerings Overview: 20.,8�)�� The current services offered by THC include the following: Number of Customers 772K • Energy provider for residential, commercial, and industrial customers Total Revenue $3.513 • Pole and duct rentals Net Income $167M • Delivery of street lighting and express way services Dividend $93.9M Source: Toronto Hydro 2018 Audited Financial Statements & 2018 Toronto Hydro -Electric System Limited, electricity distributor scorecard © Deloitte LLP and affiliated entities. 339 CONFIDENTIAL I Growth Agenda Review 43 Appendix A I Toronto Hydro Corporation Strategic Initiative Category Renewable Generation and Storage Alignment to SJE's initiatives ✓ Wind energy projects ✓ Utility -scale energy storage x Community solar Other relevant initiatives include: • Examples of partnership with the municipality to pilot various initiatives. Smart Energy Services for Consumers Alignment to SJE's initiatives ✓ Smart grid initiatives ✓ Smart energy programs x Managed services Other relevant initiatives include: • Electric Vehicle pilot program to study the impacts from residential charging stations Relevant Comparators (if any) • Toronto Hydro supports renewable generation within Toronto through infrastructure and direct project investments. o Enabling infrastructure: Streamlined process for pre -assessing and commissioning renewable generation projects (2,050 between 2009 and 2018) as well as net metering for solar installations. o Development projects: Joint investments with the City of Toronto towards solar projects on city -owned facilities. Additional investments towards wind and solar investments of 1.2MW in 2018. • Partnering with the City of Toronto to pilot a combined solar and energy storage project. • THC is also in the process of completing a 2MW battery energy storage system project. ......................................................................................................................................................................................................................... . • THC has increased the availability of EV charging stations throughout the City of Toronto. In addition, the company is collaborating with various industry and government agencies to develop adequate strategies and policies to enable the greater adoption of EV. • In 2016, THC started investing in their smart grid by installing pole -mounted energy storage devices. Other initiatives include connecting renewable generation facilities and metering related investments. • Ontario has changed the delivery of conservation energy programs and it is now managed by the Independent Electricity System Operator ("IESO") and will be managed by the IESO until December 2020. • The following are the previous programs that were available with THC before the change to IESO management: thermostat rebate program, residential new construction, heating and cooling program, pumpsaver, pool pump program, commercial refrigeration program, and other programs. Strategic Partnership Opportunities THC launched a pilot project with Hydrostor Inc. for the world's first underwater Alignment to SJE's initiatives compressed air distribution system. The pilot project is being evaluated for a period of ✓ Partnerships and joint ventures on projects and two years to review the cost effectiveness of the technology. studies THC has partnered with Sustainable Development Technology Canada, Ecamion, the ✓ Centre for innovation University of Toronto, and Dow Kokam to develop and place large energy storage ✓ Expanded utility services systems in Toronto communities. The units will be placed strategically in communities that require additional power. The units will also assist with the integration of renewables in Toronto by providing the ability to smooth out generation during varying environmental conditions. • Toronto Hydro is one of the principal sponsors of the Centre for Urban Energy ("CUE") at Ryerson University. The mandate of the centre is to bring relevant stakeholders to collaborate and study urban energy. Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report ©Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 44 340 Appendix A I Hydro Ottawa Holdings Inc. Company Overview The core businesses of Hydro Ottawa are electrical distribution, renewable energy generation, and energy and utility services. Hydro Ottawa Holdings Inc. is a holding company incorporated by the City. The holding company is wholly owned by the City of Ottawa. Hydro Ottawa Limited, Energy Ottawa Inc. and Envari Holding Inc. are wholly owned subsidiaries of Hydro Ottawa Holdings Inc. The Company's dividend policy is to pay out the greater of $20M or 60% of its prior year net income. Organizational Structure Operating Metrics Offerings Overview 20.,8�)�� The current products and services offered by Ottawa Hydro Number of Customers 332K include the following: • Electricity distribution: Energy provider for residential and Total Revenue $1.113 commercial customers Net Income $42M • Renewable Generation: Green power generation through solar, hydro electric, and landfill gas generation Dividend $22.3M • Energy Services: Providing solutions to help consumers, businesses and communities with energy generation and storage, conservation, energy management, efficient street lighting, and district energy • Utility Services: Providing utility solutions to residential and Source: Ottawa Hydro 2018 Annual Report commercial customers © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 45 341 Appendix A I Hydro Ottawa Holdings Inc. Strategic Initiative Category Relevant Comparators (if any) Renewable Generation and Storage Hydro Ottawa recently introduced the 'MiGen' pilot project, a transactive grid project that is Alignment to SIE's initiatives currently in its first phase and will run until the end of 2020. Phase 1 consisted of the x Wind energy projects installation of solar panels, battery storage and the ability to send power back to the grid. ✓ Utility -scale energy storage Total renewable generating assets installed capacity of 128MW through Energy Ottawa (under ✓ Community solar an affiliate company Portage Power) that operate several facilities, including: o Three hydro electric dams that generate 115.5MW per year. Other relevant initiatives include: o Eight solar installation with 8,861 panels that generate 2.3 MW per year. • Examples of partnership with the municipality to o Two landfill gas generating stations, Trail Road Landfill opened 2007 and Moose Creek in pilot various initiatives. 2013, that produce 10.2MW a year. Smart Energy Services for Consumers Alignment to SIE's initiatives ✓ Smart grid initiatives ✓ Smart energy programs and services ✓ Managed services Other relevant initiatives include: • Innovative MiGen pilot to create a transactive grid. Strategic Partnership Opportunities Alignment to SIE's initiatives ✓ Partnerships and joint venture on projects and studies ✓ Centre for innovation ✓ Expanded utility services • Hydro Ottawa is investing in smart grid initiatives including smart distribution grid and power system control technologies. Furthermore, the company is part of a Smart Grid consumer engagement project to evaluate energy management solutions such as smart thermostats, mobile applications, dashboards, and portals. • Homes with smart meter technology qualify for time of use rate plans. These plans promote using energy during off peak hours by offering a lower energy rate. • Various innovation programs include: Electric vehicle charger program, smart audio devices, MiGen microgrid, and green bonds. • Hydro Ottawa residential customers can choose to participate in an electric vehicle charging program which provides a discount on the price and installation costs. • Hydro Ottawa is partnered with the Algonquin College powerline technician program to hire co- op students and alumni to go through the apprentice program and fill other positions. • Portage Power has partnered with Integrated Gas Recovery Services on two landfill generating facilities to simultaneously help reduce greenhouse gas emissions and generate electricity. • Partnership with Carleton University's Sustainable and Renewable Energy Engineering Department to establish a smart grid laboratory. • In 2017, Hydro Ottawa partnered with Tesla, for the installation of a super -changing stations at the Rideau Centre. • In 2014, a partnership between Hydro Ottawa and Pollution Probe was created to complete a study on the electric mobility adoption and prediction. • The MiGen project is being led by Hydro Ottawa but has over 20 partners including members of industry and universities. Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 342 46 Appendix A I Oakville Enterprise Corporation Company Overview Oakville Enterprises Corporation ("OEC') group of energy and infrastructure companies which serves municipalities, telecommunications, electrical distribution, and energy infrastructure businesses throughout Canada. The Company provides electrical distribution, infrastructure, generation and energy services. OEC is wholly owned by the City of Oakville and the company has paid $10.2M back to the City of Oakville from 2016 to 2017. Operating Metrics (2018) Number of Customers Total Revenue Comprehensive Income Dividend 70K (Hydro 2018) EOAKVILLE Organizational Structure Offerings Overview The current products and services offered by OEC include the following: $239M • Energy generator and provider for residential and $9.4M commercial customers • Other utility services include: asset management, damage $5.9M prevention, and utility engineering solutions, utility location, underground and civil construction, and GIS mobile and aerial mapping for municipalities, electricity, water, gas telecommunication and engineering companies • Financing, installation, and management systems for commercial and residential customers Source: GEC's 2017 Audited Consolidated Financial Statements © Deloitte LLP and affiliated entities. • Metering solutions and services CONFIDENTIAL I Growth Agenda Review 343 47 Appendix A I Oakville Enterprise Corporation project using the IntelliTeam technology, and various communication equipment (terminal units, ✓ Smart grid initiatives automated metering infrastructure, etc.). ✓ Smart energy programs and services In 2017, Oakville Hydro received funding from Ontario's Smart Grid Fund to be used for two projects: ✓ Managed services o Automating Oakville's Downtown Grid - The automated system upgrade will allow for automatic reconfiguration of the grid and can rapidly restore service to reduce and or eliminate EOAKVILLE power outages in the city after a system fault. • EV leasing program. o Unified Data Platform in the city - The project is a digital platform that allows for informed Strategic initiative Category Relevant Comparators (if any) Renewable Generation and Storage In 2015, OEC invested $50M in a 14MW ground mount solar park called Sunny Shores Green Energy Alignment to SJE's initiatives Project. The grid has over 46,000 photovoltaic solar panels on 58 hectares of land. x Wind energy projects OEC has installed rooftop solar panels on four town facilities which produce approximately 1 MW of ✓ Utility-scale energy storage energy. In addition, they operate a hydro electric dam that generates 3.5MW. x Community solar OEC is currently piloting the integration of EV charging and EV battery storage capacity on the grid. • In 2007, Oakville hydro energy services partnered with the Municipality of Halton to operate a landfill Other relevant initiatives include: generation plant in Halton, Ontario. The plant produces 2.1MW which can supply energy for • Geo-exchange turnkey solution for new approximately 1,500 homes. homeowners. OCE is offering a comprehensive turnkey solution for new homes through their affiliated company .................................................................................................................................................................................................................................................................................................................................................... Strategic Partnership Opportunities Sandpiper Geo-exchange. These projects include installation of customized metering, geo-exchange Alignment to SJE's initiatives heating unit, and solar panels for electricity. Smart Energy Services for Consumers Oakville Hydro has been investing in grid automation such as: upgrading distribution system, pilot Alignment to SJE's initiatives project using the IntelliTeam technology, and various communication equipment (terminal units, ✓ Smart grid initiatives automated metering infrastructure, etc.). ✓ Smart energy programs and services In 2017, Oakville Hydro received funding from Ontario's Smart Grid Fund to be used for two projects: ✓ Managed services o Automating Oakville's Downtown Grid - The automated system upgrade will allow for automatic reconfiguration of the grid and can rapidly restore service to reduce and or eliminate Other relevant initiatives include: power outages in the city after a system fault. • EV leasing program. o Unified Data Platform in the city - The project is a digital platform that allows for informed decision making through the analysis of utility systems in a unified display. SmartMap technology helps uses metering and operational data to provide the analysis portion of the platform. • OEC Energy Services Group assist customers in managing their energy cost through promoting consumer products and innovative technologies. • Oakville Hydro has two EV charging stations at their office. In addition, the company offers a leasing program for customers who want to install EV charging equipment. • Homes with smart meter technology qualify for time -of -use rate plans. These plans promote using energy during off peak hours by offering a lower energy rate. • OEC operates a Geo -exchange of assets and systems which finances, installs and manages systems for its customers. .................................................................................................................................................................................................................................................................................................................................................... Strategic Partnership Opportunities GEC's infrastructure group has six companies that deliver construction, asset management, Alignment to SJE's initiatives engineering, mobile and aerial mapping as well as utility location and services. ✓ Partnerships and joint venture on projects and OCE is a partner of the GridSmartCity consortium focused on productivity and efficiency studies improvements, advancing smart grids, piloting new technologies, and community energy planning. ✓ Centre for innovation Other partners within the consortium include LDCs, smart grid innovators, government and academia. ✓ Expanded utility services Oakville Hydro is partnering with Essex Powerlines on the implementation of a digital platform as well as the SmartMap system. Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 48 344 Appendix A I Windsor Canada Utilities Ltd. Company Overview ENWIN Utilities Ltd. (ENWIN) is the electrical distributor for the City of Windsor. ENWIN is responsible for the local distribution of electricity and the service and maintenance of the local electricity distribution infrastructure. ENWIN Energy Ltd provides streetlight maintenance services and engages in partnerships to offer energy related services. The company's 2022 strategic plan consists of taking a more customer -centric, decentralized, environmentally sustainable and technologically advanced approach to reach its growth goals. Operating Metrics (2018) Number of Customers 89K Total Revenue $328M Net Income $8.4M Dividend $4M Source: ENWIN's 2018 Audited Consolidated Financial Statements 2 - 2018 EnWin Utilities Ltd., electricity distributor scorecard © Deloitte LLP and affiliated entities. Organizational Structure Note — ENWIN has a service contract with the Windsor Utilities commission to operate and sustain the water system. Offerings Overview The current services offered by ENWIN include the following: • Energy provider for residential and commercial customers • Service and maintenance of the local electricity distribution infrastructure • Provide streetlight and sentinel light maintenance services as well as offering energy related services through strategic partnerships • Manage Windsor Utilities Commission's administrative and operational functions as well as the supply of water to the respective jurisdictions 345 CONFIDENTIAL I Growth Agenda Review 49 Appendix A I Windsor• • l Ija ii l Strategic Initiative Category Relevant Comparators (if any) Renewable Generation and Storage ENWIN is currently not involved in renewable generation and storage of electricity, however, Alignment to SIE's initiatives they do support the installation of solar panels through the Province's Feed -In -Tariff programs. x Wind energy projects In 2018, a total of 592 new load customers and 109 generation customers were connected by x Solar energy options for consumers the company. x Utility -scale energy storage ENWIN is currently not involved in any utility -scale energy storage projects. Smart Energy Services for Consumers ENWIN homes and businesses with smart meter technology qualify for time of use rate plans. Alignment to SIE's initiatives These plans promote using energy during off peak hours by offering a lower energy rate. ✓ Smart grid initiatives ENWIN offers a net metering program for consumers who generate renewable energy. The ✓ Smart energy programs and services program offers the option for customers with renewable generating capabilities to sell their x Managed services excess power back to the grid and receive a credit on their power bill. Strategic Partnership Opportunities In 2018, ENWIN partnered with WEtech Alliance to participate in a program called ENnovation Alignment to SIE's initiatives Catalysts. The program consisted of WEtech Alliance coaching and assisting a select number of ✓ Partnerships and joint venture on projects and frontline employees at ENWIN to present to ENWIN's executive team. Employees presented on studies issues and challenges faced at ENWIN and how they could test, create solutions, and develop ✓ Centre for innovation business cases for their ideas. ✓ Expanded utility services In 2013, ENWIN partnered with St. Claire College to provide placements for technician students. • As a partner of the GridSmartCity group ENWIN has leveraged there membership to realize cost savings through a joint tendering for electrical distribution system equipment. • In 2018, ENWIN partnered with the Detroit Bridge Authority to complete an electrical infrastructure for the Canadian Plaza. The project was to connect local highways to the new Gordie Howe International bridge to from Windsor to Detroit. • In 2018, the Natural Sciences and Engineering Council of Canada gave ENWIN and the University of Windsor $5.5 million to further develop the product and prep it for retail. The product will be brought to market under the name of ONtech Rapid Coatings, a collaboration between the Tessonics and ENWIN. The new company will market product across North America to players in the utility, automotive, shipbuilding, aerospace, and pipeline industries. Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 346 50 Appendix A I London Hydro Company Overview London Hydro Inc. is a municipally -owned hydro distribution company that is wholly owned by the City of London. London Hydro's strategic plan is to focus on investments in smart technologies such as smart meters, time -of -use billing, renewable energy and smart grid initiatives. In the last two years, London Hydro has declared dividends in the amount of $5M back to the City of London. London Hydro has consistently declared an annual dividend of $5M and in specific circumstances an additional special dividend can be declared. Operating Metrics (2018) Number of Customers 159K Total Revenue $424M Net Income $12.9M Dividend $5M Source: London Hydro's 2018 Audited Financial Statements Organizational Structure G#y�f L:�tftlfP' Offerings Overview The current services offered by London Hydro include the following: • Energy provider for residential and commercial customers © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 51 347 Appendix A I London Hydro Strategic Initiative Category Relevant Comparators (if any) Renewable Generation and Storage In 2017, the company started developing 14 ground mounted solar photovoltaic projects Alignment to SJE's initiatives in 4 different municipalities in Ontario. x Wind energy projects To support provincial carbon reduction goals, London Hydro has facilitated renewable ✓ Utility -scale energy storage energy projects including 365 customer -owned solar generation (14.8MW), 1 biogas x Community solar project (2.85MW), and 1 hydro project (0.68MW). Smart Energy Services for Consumers • London Hydro has been actively pursuing Smart Grid initiatives projects including: Alignment to SJE's initiatives advanced metering infrastructure metering, real-time scalable monitoring/analytics on ✓ Smart grid initiatives smart meters, and flexible smart metering systems. ✓ Smart energy programs and services Through London Hydro's Innovation Centre the company has developed application to x Managed services integrate with various appliances to measure their energy consumption. • The company is currently conducting various pilot projects such as: o Approximately 1,400 customers, provide them with real-time electricity consumption and pricing information to help them make choices to reduce their usage. o Approximately 600 customers homes using the internet of things (IoT) devices and appliances. • London Hydro created Interval Data Centre which allows customers to track, analyze, and make adjustments to their energy consumption. • In 2018, London Hydro introduced Trickl, an energy management application pilot project. The application allows the 2,000 participants to monitor and control their energy usage by viewing their usage in real-time, receiving personalized alerts, reviewing historical energy usage data and by controlling five devices or appliances in their homes ................................................................................................................................................................................................................................................................................................................................................. using the application. Strategic Partnership Opportunities The Company entered into a joint venture agreement with the London District of Alignment to SJE's initiatives Renewable Energy Co -Operative Inc. to create London Renewable Energy Initiative. The ✓ Partnerships and joint venture on projects and new venture will focus on identifying, applying for and constructing solar projects that studies have been approved under the Feed -In Tariff government program. ✓ Centre for innovation London Hydro created an Innovation Centre to further research smart home systems and x Expanded utility services technologies. • In 2013, London Hydro partnered with Western University to launch the Watts Lab for Smart Grid and Innovative DG Control Studies lab. Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review i m 52 Appendix A I Alectra Inc. Company Overview Alectra Inc. is owned by seven cities located in Ontario. Alectra Inc. provides electricity distribution, solar photovoltaic generation, metering services and energy solutions through the use of innovative technologies. Alectra is the second largest municipality owned LDC in North America by customers. Alectra Corporation has two ongoing smart grid projects that will help create a smarter and greener city. Alectra's dividend policy is to pay dividends based on 60% of MIFRS Net Income. MIFRS stands for modified IFRS and is modified for regulatory purposes and for greater consistency in measurement of rate impacts. IFRS - International Financial Reporting Records MIFRS - Modified IFRS Operating Metrics (2018) Number of Customers iM Total Revenue $3.513 Comprehensive Income $115M Dividend $69M Source: Alectra's 2018 Audited Consolidated Financial Statements 00 VP alectra ., i hii Organizational Structure Multiple Cities consist of: 8.78% by Barrie Hydro Holdings Inc., which is wholly-owned by City of Barrie 31.00% by Enersource Corporation, which is owned 90% by the City of Mississauga and 10% by BPC Energy Corporation, which is a wholly owned subsidiary of the Ontario Municipal Employees Retirement System 18.15% by Hamilton Utilities Corporation, a wholly-owned subsidiary of the City of Hamilton 15.73% by Markham Enterprises Corporation, a wholly-owned subsidiary of the City of Markham 4.85% by St. Catharines Hydro Inc., a wholly-owned subsidiary of the City of St. Catharines 21.49% by the Vaughan Holdings Inc., a wholly-owned subsidiary of the City of Vaughan Horizon solar Corp (0.1%) and Alectra Utilities (99.9%) own Solar Sunbelt General Partnership Offerings Overview The services offered by Alectra's primary subsidiaries include the following: • Electrical distribution • Commercial rooftop solar generation business which develops, constructs, finances, and operates the solar equipment • Wholesale metering and sub -metering services • Consulting services related to alternative metering infrastructure integration, customer information systems implementation and other smart grid applications © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 53 349 Strategic Partnership Opportunities Alectra partnered with Greater Toronto Airports Authority, and the Toronto and Region Alignment to SJE's initiatives Conservation Authority is aimed in helping Mississauga businesses become more ✓ Partnerships and joint venture on projects and environmentally friendly by improving operations in the Pearson Eco -Business Zone. studies Currently the focus has been implementing solar technology, specifically rooftop solar to ✓ Centre for innovation produce clean energy. ✓ Expanded utility services Alectra has partnered with Sunverge and the University of Waterloo to use blockchain software technology to provide real-time tracking, transparency and management of Distributed Energy Resources in providing energy services. • In 2019, Alectra started a Green Energy and Technology (GREandT) centre aimed at identifying, evaluating, developing, and deploying emerging green technology and solutions to the cities the company operates in. Some of the activities will include pilot projects, community engagement activities, evaluation of accelerator options, and demonstrations to partnerships are some of the activities the GREandT centre plans on delivering. Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 54 350 N` t; Appendix A I Alectra Inc. alectra Strategic Initiative Category Relevant Comparators (if any) Renewable Generation and Storage Alectra is currently not overly involved in generating renewable energy. Alectra's 2018 Alignment to SJE's initiatives energy mix consisted of: 58.4% nuclear, 23.9% water, 6.2% natural gas, 10.3% solar ✓ Wind energy projects and wind and 1.3% other. ✓ Utility-scale energy storage However, in 2017, Alectra introduced a 20 person pilot program called Power.House ✓ Community solar which is residential solar panel/storage program that allows households to collect solar energy, send the energy to the battery backup or sell it back to the grid, and tracks it on an online software management system. In addition, Alectra is using blockchain technology to further understand the technologies potential. • Alectra Utilities has deployed a number of conservation projects in Mississauga including the installation of rooftop solar panels on various buildings. Smart Energy Services for Consumers Alectra Utilities launched a two year pilot program with the City of Markham to set up Alignment to SJE's initiatives Electric Vehicle charging stations at workplaces. The goal of the program is to offer more ✓ Smart grid initiatives charging stations and help increase EV in Ontario. ✓ Smart energy programs and services Smart thermostat incentive plan offers customers a $75 credit when they registered a ✓ Managed services Nest or Ecobee thermostat. • Small business lighting program which offers small business owners up to $2,000 in incentives towards upgrading to energy-efficient lighting. • Retrofit program offers incentives for businesses who make upgrades to lighting, lighting controls, building automation, water chiller, HVAC redesign, etc. Strategic Partnership Opportunities Alectra partnered with Greater Toronto Airports Authority, and the Toronto and Region Alignment to SJE's initiatives Conservation Authority is aimed in helping Mississauga businesses become more ✓ Partnerships and joint venture on projects and environmentally friendly by improving operations in the Pearson Eco -Business Zone. studies Currently the focus has been implementing solar technology, specifically rooftop solar to ✓ Centre for innovation produce clean energy. ✓ Expanded utility services Alectra has partnered with Sunverge and the University of Waterloo to use blockchain software technology to provide real-time tracking, transparency and management of Distributed Energy Resources in providing energy services. • In 2019, Alectra started a Green Energy and Technology (GREandT) centre aimed at identifying, evaluating, developing, and deploying emerging green technology and solutions to the cities the company operates in. Some of the activities will include pilot projects, community engagement activities, evaluation of accelerator options, and demonstrations to partnerships are some of the activities the GREandT centre plans on delivering. Sources: Combination of Company website, Annual reports, Management Discussion & Analysis ("MD&A"), Annual Corporate Responsibility and Global Reporting Initiative's report © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 54 350 351 Appendix B I N RCAN Utility Investments • British Columbia Electric Vehicle (EV) smart infrastructure project • Powering Plug -In EV with renewables supply in British Columbia • Energy management business intelligence platform • Energy storage and demand response for near capacity substation • Canada's geothermal village, "Sustainaville" GeoPark • Hybrid smart -grid solar Photovoltaic and battery demonstration project • British Columbia remote community integrated energy BCRCIE project • Development of codes and standards for marine energy converters • Front end engineering for the Dent Island Tidal Power Generation project • West Coast Wave Initiative (WCWI) • Dent Island Tidal Power Generation Project • Canada's geothermal village, "Sustainaville" GeoPark • Tailings management through Nano Community-based geothermal technologies demonstration • Integrating distributed generation N/A Demonstration of Waste -Heat • Energy management business recovery at compressor stations intelligence platform • Front-end engineering design study: Williston Basic Low Temperature • N/A N/A Geothermal • Wind and storage demonstration in a First Nations community Source: NRCAN, Current Investments, LCIM> //www i c i i.,,. c c />c,i,ci cc L /fG i Li ci>I it >/fG is >/cG i i ci,l,L invesbre L>Z21146 © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 352 56 Appendix B I N RCAN Utility Investments • Interoperability and non -wires alternative demonstration • Smart, proactive, enabled energy distribution; Intelligent, efficiently, responsive (SPEEDIER) project • Tailings management through Nano technologies • Power.House Hybrid: Minimizing greenhouse gas emissions and maximizing grid benefits • The Transactive Grid - Enabling end-to-end market services framework using blockchain • MiGen Transactive Grid • Secondary school carbon free embedded MicroGrid energy system demonstration • Development of utility grade controller for remote MicroGrids with high penetration renewable generation • Direct-current arc -free circuit breaker for utility -grid battery storage system • Integrated urban community energy project • Prolucid Technologies for distributed generation monitoring and control • Energy management business intelligence platform development and demonstration • Utility scale electricity storage demonstration using new and re -purposed lithium Ion automotive batteries • John Paul II High School carbon free embedded energy system FEED study • Canadian Small Modular Reactor (SMR) roadmap • Gull Bay First Nation diesel offset micro grid project • High density solar photovoltaic module • Kortright energy yield test standard • Pan -Canadian wind integration study • Virtual blade wind power • Wasdell Falls hydro power project • John Paul II High School carbon free embedded energy system • Canadian Small Modular Reactor (SMR) Source: NRCAN, Current Investments, LCIM> //www i c i i.,,. c c />c,i,ci cc L /fG i Li ci>I it >/fG i': >/cG i i ci,l,L invesbre L>Z21146 © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 353 57 Appendix B I N RCAN Utility Investments • Lac Megantic Microgrid • Commercial demonstration of a Management System for Electric Vehicle (EV) charging station networks • Managing energy storage capabilities in an electrical grid to reduce effects of renewable energy source variability • Interative smart zone demonstration in Quebec • Power simulator (SimP) experimentation and standardization infrastructure for smart grid technologies • Integrated dispatchable resource network for local electric distribution utility (SJ Energy) • Collaborative grid innovation for Atlantic smart energy communities (NB Power and NS Power) • Electricity load control demonstration • Dynamic voltage control for the integration of renewables • 3,300 Saint -Jacques NET ZERO+ • High efficiency commercial refigeration systems utilizing an ejector. • Integrating renewables and conservation measures in a net -zero energy low-rise residential subdivision • Intelligent net -zero energy buildings • Plug and Play building -integrated photovoltaic and thermal technologies • N/A • Nunavik Minin: RAGLAN 2.0 Large scale renewable energy smart grid • Front end engineering and design study - Whapmagoostui - Wind hybrid power plan • FEED of Xstrata's raglan renewable electricity Micro -Grid and Smart -Grid pilot demonstration • Glencore RAGLAN Mine renewable electricity Smart -Grid pilot demonstration • Integration of deep geothermal energy in Canada's energy portfolio • Power simulator (SimP) - experimentation and standardization infrastructure for smart grid technologies • Dynamic voltage control for the integration of renewables (NB Power) Source: NRCAN, Current Investments, LCIM> //www i c i i.,,. c c />c,i,ci cc L /fG i Li ci>I it >/fG is >/cG i i ci,l,L invesbre L>Z21146 © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 354 58 Appendix B I N RCAN Utility Investments Y I x Orli. • Collaborative grid innovation for Atlantic smart energy communities (NB Power and NS Power) N/A • Electricity load control demonstration • Environmental monitoring of tidal energy technology • Virtual blade wind power • Electricity load control demonstration A 10 MW wind technology research and development • Reducing the cost of in -stream tidal energy generation through comprehensive hydrodynamic site assessment • Tidal energy project in the Bay of Fundy • Environmental monitoring of Tidal Energy Technology • N/A Source: NRCAN, Current Investments, LCIM> //www i c i i.,,. c c />c,i,ci cc L /fG i Li ci>I it >/fG i': >/cG i i ci,l,L invesbre L>Z21146 © Deloitte LLP and affiliated entities. CONFIDENTIAL I Growth Agenda Review 355 59 Deloitte., Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. The information contained herein is not intended to substitute for competent professional advice. © Deloitte LLP and affiliated entities. 356 Industry Benchmarking N Municipal t^U^ty Companies es ')�V'der-id �0H'(':V��O�� Company Dividend Policy Details Dividends Declared The City of Edmonton owns 100% ofEPCORand receives a quarterly $166mU which represents spCom dividend based on percentage of net income that is reviewed annually 56% of Comprehensive Net by the City of Edmonton. Income in 2018 ENM/O('sdividend policy istopay out the greater of$3OMor3O96of $40mUwhich represents 26% smnAX prior year's net earnings, dependent on factors such as liquidity ' ofNet Income in 2018 requirements ts d i | �o -----------------------------�--an--�manca-oe--�nnance.---------------------------------------------------� TH['sdividend policy istopayout 5O96ofthe consolidated prior fiscal $94mUwhich represents 56% Toronto Hydro year's annual consolidated net income ora minimum of $25M per year ofNet Income in 2018 paidquarterly�-installments. Hydro Ottawa The Company's dk96 dividend $22mUwhich represents 610/0 of its prior year net income. of Net Income in 2018 (�) Deloitte LLP and affiliated entities. DRAFT | For ��nPurposes Only CONFIDENTIAL | Additional Items The holders ofthe common shares are entitled toreceive dividends from $3'8mUwhich represents Oakville Enterprise Corporation time to time. From 2017 to 2018 the company has paid out $3.7M and 40% of Comprehensive Net $3.8M respectively. Income inI018 Approximately 74% 74% ofa|| revenues go to the generators, transmitters and the province in the form of taxes. The remaining revenue is used by � $4mU which represents 47% snnvin Enwin to build, operate and maintain the electricity distribution ofNet Income in 2018 infrastructure. Any excess is paid asdividends orheld for reinvestment into infrastructure. In the the |ast two years, London Hydro has declared dividends in the $5mUwhich represents 39% London Hydro amount of$5M back tothe Cityof London. London Hydro has of Comprehensive Net consistently declared an annual dividend of $5M and in specific Income inI018 circumstances anadditional special dividend can be declared. Alectra's dividend dividand po|icy is to pay dividends basad on 6096 ofMIFRS Net Income. M[FRS stands for modified [FRS and is modified for regulatory $69mU which represents 60% A|octna uonooa purposes and for greater consistency in measurement of rate impacts. of Comprehensive Net zpas-zntemaunna| Financial Reporting Records Income in 2018 Mzpas- Mnu/neu zpns (�) Deloitte LLP and affiliated entities. DRAFT | For ��nPurposes Only CONFIDENTIAL | Additional Items Company Financials I Forecasted Net Income /",,,dai s L e d "",J e L Iw"I( 0i w��; Forecast Summary The adjacent tables provides a summary of the annual net income generated under each scenario. Please note that the figures shown are not discounted but pulled directly from the consolidated Growth Strategy forecast provided by SJE management. Scenario #1 includes all of the growth initiatives / projects in the Growth Strategy Forecast. Scenario #2 includes all growth initiates / projects except for M&A activity, utility services business, and consumer products new rental service line. Net income was adjusted to account for the rate differential, assuming rates were increased to match NBP. For the purpose of this analysis this amount is constant. Scenario #1 Scenario #2 Year Net Rate Adjusted ear Income Differential l $7,400 $9,240 2021 Income 2020 $1,840 $7,400 $9,240 2021 $2,230 $7,400 $9,630 2022 $6,814 $7,400 $14,214 2023 $8,047 $7,400 $15,447 2024 $12,894 $7,400 $20,294 2025 $13,375 $7,400 $20,775 2026 $13,959 $7,400 $21,359 2027 $14,613 $7,400 $22,013 2028 $15,129 $7,400 $22,529 2029 $15,386 $7,400 $22,786 Scenario #2 Year Net Rate Adjusted Income Differential Income 2020 $1,840 $7,400 $9,240 2021 $2,230 $7,400 $9,630 2022 $8,745 $7,400 $16,145 2023 $9,872 $7,400 $17,272 2024 $14,716 $7,400 $22,116 2025 $15,672 $7,400 $23,072 2026 $16,527 $7,400 $23,927 2027 $17,582 $7,400 $24,982 2028 $18,456 $7,400 $25,856 2029 $19,227 $7,400 $26,627 © Deloitte LLP and affiliated entities. DRAFT I For DilgXl 6n Purposes Only CONFIDENTIAL I Additional Items 2 City of Saint John Operational Review Final Report March 31, 2020 dif Notice Ernst & Young ("EY") was selected by the Department of Environment and Local Government ("ELG") to conduct an independent operational review of the City of Saint John. This report (the "Report") highlights the activities conducted, the information gathered, the analysis completed, the findings of the analysis, and recommendations. This Report was prepared solely for the purposes of the City of Saint John and ELG. It should not be relied upon for any other purpose. The Report is based on objective analysis and information provided to us by the City of Saint John, Agencies, Boards and Commissions (ABCs) and ELG. The data and financial information and other underlying assumptions were not independently audited for accuracy or completeness. The Report may not have considered issues relevant to any third parties. Any use such third parties may choose to make of the Report is entirely at their own risk and we shall have no responsibility whatsoever in relation to any such use and to the fullest extent permitted by law we do not accept or assume responsibility to anyone other than ELG, for this report or for the opinions formed. Our report to ELG is based on inquiries of, and discussions with, the City of Saint John, and ELG. We have not undertaken any form of investigation, audit, substantiation or verification procedures for the information, data and projections provided to us. We have not sought to verify the accuracy of the data or the information and explanations provided. Our work has been limited in time and a more detailed / lengthy exercise may reveal material issues that this review has not. No obligation is assumed by EY to revise this Report to reflect any circumstances or information that become available subsequent to the date of this Report. Several limitations were encountered during this review that could impact the results: Quality and availability of consistent, accurate data; Data components for benchmarking purposes was challenging and manual; Time limitation prevented a deep analysis in all service areas. Glossary um. ABC: Agencies, Boards and Commissions uum CAGR: Compound Annual Growth Rate um. CMA: Census Municipal Area um. EBITDA: Earnings before interest, tax , depreciation and amortization um. EDGSJ: Economic Development Greater Saint John um. FMS: Fleet Management System uum FTE: Full-time equivalent um. HR: Human Resources um. IT: Information Technology uum MoU: Memorandum of Understanding um. NPV: Net present value um. PSCC: Public Safety Communication Center um. RFP: Request for proposal um. SCDWP: Safe and Clean Drinking Water Project: City of Saint John um. SOP: Standard operating procedure um. TCO: Total cost of ownership um. VMA: Vehicle Management Agency 1. Executive summary.............................................................5 2. Background.........................................................................12 2.1 Approach 3. Business cases...................................................................15 3.1 Fire services 3.2 Police services 3.3 SJ Energy 3.4 Municipal buildings 3.5 Municipal lands 3.6 Procurement 3.7 Saint John Water 3.8 Economic development 3.9 Fleet services 3.10 Public works and recreation 3.11 ABCs 4. Sustainability enablers......................................................61 4.1 Labour relations 4.2 Tax reform 4.3 Performance management and accountability 4.4 Regional collaboration 4.5 Governance and structure 4.6 Culture 5. Roadmap..............................................................................71 6. Additional findings and considerations .........................74 6.1 Revenue diversification 6.2 Spending authority 6.3 Shared services 6.4 Grants 6.5 Transit 7. Appendices..........................................................................81 A: Benchmarking B: Fire services C: Municipal buildings D: Municipal lands E: Procurement F: Labour relations K I-% 1.0 Executive summary The City of Saint John (the "City") is a regional centre in southern New Brunswick. A vibrant and growing city is crucial for the long-term prosperity of the regional area and the province as a whole. This Report outlines the first steps the City is recommended to take to improve its path towards sustainability. We cannot predict what the new and revitalized City of Saint John will look like, but if these steps can turn the City's trajectory, we have something stable to build upon. The City is battling a projected financial structural deficit that requires transformative solutions. In 2013, the City of Detroit filed for bankruptcy and within 13 months emerged from the United States largest municipal bankruptcy claim in the history of the nation. This could not be accomplished alone; a partnership between the City of Detroit, government, business leaders and the community led an innovative effort to restructure the debt and take a microscopic view to the structural issues that put Detroit in that position. While the City of Saint John's situation is not yet as extreme as Detroit's, we believe that a similar approach is required to address the structural deficit. To address the City of Saint John's financial situation, the province of New Brunswick (Department of Environment and Local Government) partnered with the City to initiate an operational review with a goal of identifying opportunities for cost optimization, revenue diversification and debt reduction. City management has taken urgent measures to analyze costs, improve financial policies and implement cost reduction and process improvement initiatives in many areas. Structural changes have been very difficult to implement however, there is a critical awareness by management that barriers to change need to be addressed. Long standing systemic roadblocks have barricaded the path forward which cannot be solved through traditional methods or short term crutches. This Report is intended to address that threat head on. The City is facing an unfunded pension liability of $86M which is planned to be funded by 2028. The majority of the projected structural deficit of approximately $10M is coming from funding the pension liability which will continue to grow unless transformative change is executed. The challenges are clear: �� I Expenses are growing 3X the rate of revenues: Expenditures are growing at an unsustainable rate for the City, with wages accounting for 57% of total expenses. Wage and benefit escalation is exceeding the City's capacity to fund. ,�� I Aging infrastructure deficit: There are a high number of City assets that are in poor condition, requiring an estimated $60M of funding per year to address infrastructure deficit. I Highest property tax rate in the province with a shrinking population/tax base: Saint John's population and base have been shrinking over time, with a low current growth rate Need to build reserves to fund unplanned costs: Flexibility to cover unplanned costs is limited. Reserves are necessary to plan for unanticipated events, capital renewal, future liabilities, etc. I Reliance on debt: The City has a high reliance on debt to fund day-to-day operations; there is a need for the City to be able to grow its own sources of revenue to cover required expenditures. Constraining articles within the collective agreements: Constraining, long-standing articles that diminish the City's management ability to withstand the ebbs and flows of business. Executive summary These challenges cannot be solved without addressing systemic issues such as constraining articles within the collective agreements, restrictive legislation and a lack of a performance management and accountability framework. City management launched a joint initiative with the province to strike a committee that worked collaboratively together to identify opportunities for sustainability. Significant efforts and commitment to proactively respond to this serious challenge are already underway by the City. Some key areas where change has begun to take place: Costs are growing by 3% annually; revenues are growing by 1%. aaaaaaaaaaaaaaaaaaaaa ' Key areas of change undertaken rAdv'lca�c�yf�,,' Four main themes have surfaced through ongoing work by the City: 1 50% of the deficit will be addressed through 3 Revenue streams will be enhanced and workforce adjustments. expanded. Where possible, the City will divest its infrastructure New and innovative approaches to the 2 to avoid large infrastructure deficits. 4 delivery of services will be pursued. These themes partially guided the focus for this review, in addition to benchmarking research, jurisdictional research and subject matter advisory. For each area, additional data was reviewed, site visits were completed and stakeholder interviews conducted. This review revealed opportunities and areas for the City to either reduce debt, optimize costs or diversify revenue opportunities. It must be noted that recommendations outlined in this Report should not be interpreted as critical in any way to the value of the City services or employees. This Report focuses on transformative changes with the highest impact. What is most important is that the City acts decisively to drive those changes and move to a more positive dialogue that focuses on growth to attract investments. Restructuring, transformative change and the perceived reduction in service is difficult to understand for employees and residents. Factual communications, free from bias, are essential to support the execution of transformative change. Reduction in staffing does not necessarily translate into a reduction in services when more productive ways to deliver the same services can be implemented. Executive summary Many of the areas identified in this review are not new ideas for City management or to Council and, in some cases, the full potential of these ideas has been constrained by factors that make their implementation more challenging. We do not believe that the City can achieve its long-term sustainability objectives solely by implementing easy -to -implement changes. Foundational constraints must be addressed to achieve long-term sustainability, as identified below. The opportunities are grouped into three areas. Debt reduction opportunities represent one-time proceeds from the sale of assets while annualized cost optimization will come from FTE reduction and cost efficiencies associated with reduced spending from curtailment or avoidance of the following cost elements: Wages and benefits (Based on our review, more than 50% of the operating cost savings will emerge from wage and benefit adjustments) Operating costs (Overtime, energy, fuel, maintenance, use of material, time in lieu) Grant funding Reduction in unit cost through strategic sourcing Most of the new revenue identified include the opportunity to leverage a dividend contribution from Saint John Energy, which is contingent on support from the province through legislative changes. It is also important to note that some opportunities arise from the Saint John Water Commission will not flow directly to address the City's operational deficit, but can be use to avoid further rate increase or fund the infrastructure deficit. Eleven business cases have been developed and are summarized on the following page and illustrated on the Roadmap (P.71). The consolidated opportunities are noted below: (000's) Debt reduction Cost optimization Revenue generation (annualized) (annualized) $8,380 -$9,880 $12,400 - $17,800 $5,300 - $9,400 The City also has additional revenue generation and cost reduction ideas that have not been included in the estimates. The City and Council are encouraged to prioritize a limited number of larger transformative changes rather than seeking to implement a large number of small changes. Our experience has shown that implementing a significant number of small changes will be difficult with limited resources and it will be difficult to sustain these many changes over time. Summary of key opportunities (000's) Fire and rescue services - Transform service deliverythrough call response process enhancements, staffing model optimization, reduction of two engines and two tankers, potential closure of one fire station and reducing 32-40 full-time firefighters. Police services - Expand civilianization for court services, administration and low risk service calls with an expected conversion of 20% of its patrol strength to civilians. Reverting to an 11 hour shift to optimize "in lieu" time and improve rostering scheduling practices. SJ Energy - Allow SJ Energy to pay a dividend to the City in the range of 50 to 60 percent of net income like other Energy Utility across Canada. Support SJ Energy growth agenda and increase SJ Energy power rate to be consistent with NB Power's could provide a net annual dividend of $4.5M -$8.2M. The collection of this dividend may provide the opportunity for the City to reduce property taxes and consider providing a rebate program to ensure that low-income residents who are not property owners are not put at a greater disadvantage from increased energy rates. Cost Net new Debt optimization revenue reduction (annualized) generation (annualized) Municipal buildings- Of the seventy-seven(77) City -owned buildings, EY has identified nineteen (19) potential opportunities for the City to explore. Depending on market demand, divesture opportunities (19) could yield $6 million. Additional cost $5,000 - savings from increased operational/utilization efficiencies have been identified (but $6,000 not quantified) for buildings where operational assessments should be performed to determine potential cost savings. Municipal lands - The city owns 1,500 parcels of land. and EY has identified opportunities to divest 41 parcels of land totalling $3.7M. This includes thirty-two (32) parcels of land each valued over $25,000, totalling $1.8M; as well as of land $3,200 - previously rejected by Council for divestiture that could be reconsidered for sale, $3,700 valued at $1.8M. Procurement enhancement- Enhance procurement through optimization of shared services, strategic sourcing, contract management and red tape reduction. Saint John Water - Reduce workforce by 10-15 FTEs, add 2 superintendent FTEs , and adjust the span of control. In addition, Saint John Water should continue with cost efficiency initiatives and explore service offerings to other cities. Economic development- Regionalize economic development services for the region and consolidate agencies (EDGSJ, Discover SJ, Develop SJ) under one entity that would service municipalities from Grand Bay to Hampton utilizing a fair and equitable funding and cost-sharing model. Fleet services - Expand and enhance the fleet pooling system, increase utilization of equipment, augment purchasing power and optimize garage consolidation with the transit garage. Public works and recreation - Optimize solid waste management, improve winter road maintenance cost management, explore workforce efficiency and productivity opportunities and reduce the workforce by 20 FTEs and 18 casual positions. Agencies, boards and commissions - Action the opportunities presented to Council in relation to legislative amendments, removal, consolidating and re -negotiating terms and/or exploring new partnerships for ABCs. Additionally, accountability practices, performance reporting and criteria for grant contributions should be realigned with city priorities and its capacity to fund. $4,000- $100- $5,000 $460 $1,500- $1,700 $4,500- $8,200 $1,200 - $4,400 $990- $150- $1,400 $200 $500- $800 $250- $300 $180 $3,500 $550 $500 - $650 $8,380- $12,400- $5,300- $9,880 $17,800 $9,400 Executive summary During the development of business cases, common themes emerged that will support these initiatives. We have outlined these here and within the'Sustainability Enablers'section. 0 Labour relations There are severely restrictive, long-standing collective agreement articles in place that inhibit the City's capacity to effectively manage and align workers with the workload. Supervisory positions held within the membership of the collective agreement also constrain productivity and performance management efforts. Moreover, the trajectory of wages and benefits are unsustainable relative to growth. Performance management and accountability Long standing practices, in the absence of an effective performance management system, make it challenging for management to dissuade practices that inhibit efficiency and protocols and practices for providing grants to external agencies need strengthening of accountability and reporting . 0 Governance & structure There is little collaboration and sharing of resources and equipment between service areas, historically working in silo of one another. 9 Tax reform High tax rates and practices for establishing residential home assessment values as well as industrial tax exemptions are contributing to the City's constraints. In particular, its capacity to attract investments, grow the population and stimulating the economy. Furthermore, the proportionate share of tax revenue between the province and the City as being fair is under debate. 0Regional collaboration Several regional opportunities exist that would enable higher level of services that benefit the region as a whole and at a lower cost to citizens. 0Culture The culture is described as traditional and political with decision making practices that have historically been silo in nature and not consistently rooted in evidence. Additionally, the protectionism culture within the workforce is inhibiting productivity and efficiencies. In addition to the business cases and the sustainability enablers, other noteworthy opportunities are outlined in the section 'AdditionaI Considerations'. These include opportunities to; enhance the granting and procurement approval processes; assess further opportunities to benefit from shared services and efficiencies across the organization, including transit services; and diversify into new revenue streams. Executive summary The City has already embarked on several of these opportunities as noted. The City has identified many opportunities, implemented significant changes to their financial principles and policies and developed along term financial plan. Their planning has allowed them to make great strides towards sustainability that they should continue to drive, with the support of Council. Please see the City's sustainability wheel below that depicts the steps the City has initiated towards sustainability. To build on the opportunities within this report, the City should develop a strategic plan and adjust their financial plan to align as part of its sustainability strategy. The depth and scope of this review would not have been possible under such a compressed timeframe without the full and exhaustive collaboration of the City staff. We very much appreciated their support throughout this process. There is no shortage of commitment to achieve these goals. This is a time to accentuate the strengths, critically assess and challenge the status quo. Implementation of change is difficult, and in some cases will take multiple years to achieve the full benefit, however action to address systemic barriers must be taken now. Success will require the support of stakeholders at all levels, legislative amendments, union leaders, along with strong and steady leadership and project governance. Sacrifices need to be made, tough decisions taken to stop the erosion and create a foundation to build upon for future aenerations Source: City of SointJohn 2.1 Approach To complete the operational review for the City of Saint John, EY took a service -based, integrated approach, leveraging subject matter experts in municipal operation. Stream leads met with operational managers to review current operations, identify challenges, areas for improvement and to understand current sustainability initiatives in play. As part of the operational review, a benchmarking assessment was conducted to identify areas of focus. It is recognized that Saint John is a unique city and, therefore, Canadian municipalities that shared the most similar characteristics were selected as comparable municipalities for this assessment. The jurisdictions selected were Halifax, Thunder Bay, Sudbury and Regina. While Saint John has a smaller population, the four municipalities share common characteristics in other areas, such as a strong working-class base, similar key industries, infrastructure risks and common economic challenges including poverty, ageing population, and shrinking tax base . Characteristic Saint John Halifax Sudbury Thunder Bay Regina �IIIIIIIIIIII uu „° 68,808 430,512 161,531 107,909 234,177 �I VIII 111111 Imll a 34,070 195,529 75,612 50,388 95,194 I 3,509 5,927 3,625 2,556 4,324 EM=� �828 4,366.90 2,546.00 2,365 2,836.40 RRMEIIII175,194,925 976,736,401 611,406,751 540,245,680 594,141,996 m m 52,858,226 374,576,181 297,070,673 2,652,936,915 257,978,872 Benchmark Service Area Building permits and inspection Planning By-law enforcement Police services Culture Roads Fire services Sports and recreation Fleet Transit Parks Waste management Municipal Benchmarking Network Canada, 2018 Please refer to Appendix A Approach For each service area, information on service levels, staffing levels and ongoing initiatives was gathered through data requests, site visits and interviews with front line staff, management and commissioners. The following departments and services were engaged as part of this review from front-line staff to executive level: m. Police services m. Police commission m. Fire services m. Transportation and environment m. Growth and community development m. Water services m. Common Council m. Financial services m. IT m. Finance m. Human Resources m. Procurement m. Fleet services m. Infrastructure m. Completed site visits of all fire stations In addition to stakeholder interviews, site visits were also completed for fire stations, water facilities and fleet and transit garages. Business cases were developed for selected areas, identifying key initiatives and recommendations. The results of the analysis were validated with the City's management team. o1"'Orr, OP" "5011) luu�' n p a w w a w x ppp x r x � r x ,00 �x u x x w x n x '� Hy 9x'• MW Xx� Mi M'Aw' � IM . y � Y01 M`.b X Yw'Mr In MS '/ INl'' � ,'IBI' IEM 1A a "u 17 Www,^ Xc � iMi ilk r ��qq � II/1 1 o1"'Orr, OP" "5011) luu�' n p a w w a w x ppp x r x � r x ,00 �x u x x w x n x '� Hy 9x'• MW Xx� Mi M'Aw' � IM . y � Y01 M`.b X Yw'Mr In MS '/ INl'' � ,'IBI' IEM 1A Summary of key opportunities (000's) Fire and rescue services - Transform service deliverythrough call response process enhancements, staffing model optimization, reduction of two engines and two tankers, potential closure of one fire station and reducing 32-40 full-time firefighters. Police services - Expand civilianization for court services, administration and low risk service calls with an expected conversion of 20% of its patrol strength to civilians. Reverting to an 11 hour shift to optimize "in lieu" time and improve rostering scheduling practices. SJ Energy - Allow SJ Energy to pay a dividend to the City in the range of 50 to 60 percent of net income like other Energy Utility across Canada. Support SJ Energy growth agenda and increase SJ Energy power rate to be consistent with NB Power's could provide a net annual dividend of $4.5M -$8.2M. The collection of this dividend may provide the opportunity for the City to reduce property taxes and consider providing a rebate program to ensure that low-income residents who are not property owners are not put at a greater disadvantage from increased energy rates. Cost Net new Debt optimization revenue reduction (annualized) generation (annualized) Municipal buildings- Of the seventy-seven(77) City -owned buildings, EY has identified nineteen (19) potential opportunities for the City to explore. Depending on market demand, divesture opportunities (19) could yield $6 million. Additional cost $5,000 - savings from increased operational/utilization efficiencies have been identified (but $6,000 not quantified) for buildings where operational assessments should be performed to determine potential cost savings. Municipal lands - The city owns 1,500 parcels of land. and EY has identified opportunities to divest 41 parcels of land totalling $3.7M. This includes thirty-two (32) parcels of land each valued over $25,000, totalling $1.8M; as well as of land $3,200 - previously rejected by Council for divestiture that could be reconsidered for sale, $3,700 valued at $1.8M. Procurement enhancement- Enhance procurement through optimization of shared services, strategic sourcing, contract management and red tape reduction. Saint John Water - Reduce workforce by 10-15 FTEs, add 2 superintendent FTEs , and adjust the span of control. In addition, Saint John Water should continue with cost efficiency initiatives and explore service offerings to other cities. Economic development- Regionalize economic development services for the region and consolidate agencies (EDGSJ, Discover SJ, Develop SJ) under one entity that would service municipalities from Grand Bay to Hampton utilizing a fair and equitable funding and cost-sharing model. Fleet services - Expand and enhance the fleet pooling system, increase utilization of equipment, augment purchasing power and optimize garage consolidation with the transit garage. Public works and recreation - Optimize solid waste management, improve winter road maintenance cost management, explore workforce efficiency and productivity opportunities and reduce the workforce by 20 FTEs and 18 casual positions. Agencies, boards and commissions - Action the opportunities presented to Council in relation to legislative amendments, removal, consolidating and re -negotiating terms and/or exploring new partnerships for ABCs. Additionally, accountability practices, performance reporting and criteria for grant contributions should be realigned with city priorities and its capacity to fund. $4,000- $100- $5,000 $460 $1,500- $1,700 $4,500- $8,200 $1,200 - $4,400 $990- $150- $1,400 $200 $500- $800 $250- $300 $180 $3,500 $550 $500 - $650 $8,380- $12,400- $5,300- $9,880 $17,800 $9,400 3.1 Fire and rescue services Saint John's Fire and Rescue Services focus on reducing the loss of life, personal injury, property damage or impact on the environment caused by fire, accident, medical emergency, or hazardous materials release. Services include: ® Fire rescue, suppression, prevention and investigation - including medical first response ® Hazardous emergency response - Management, development, implementation, and maintenance of emergency plans and inter -agency coordination ® The 2020 Fire and Rescue budget is estimated at $24.9M, which represents roughly 15% of the City of Saint John's operating budget. ® Fire services are provided out of seven fire stations that respond to over 5,000 calls annually, out of which over 3,000 are medical first response calls and close to 1,000 are false alarms. ® The Public Safety Communication Center (PSCC) which is operated by the Police Commission dispatches both fire and ambulance as first responders, while Moncton dispatches ambulances only and fire when necessary. In many instances fire is not required on scene. However in some cases fire responds faster than the ambulance and may contribute to saving lives. Recently decisions have been made not to dispatch fire services in the case of strokes and seizures as fire is not adequately equipped to make a difference in those cases. SJFD D R r pIr &-i - 2017-19 $25,000,000 $24,000,000 $23,000,000 $22,000,000 $2.1,000,000 20.17 20.18 20.19 ® Spending has grown at the rate of approximately 3.62% Compound Annual Growth Rate ("CAGR") since 2017 ® Salaries and benefits form the major component of the expenditure for the Fire Service ® Revenue from the Fire Service is less than 1% of the expenditure, pointing to opportunities to increase revenue and reduce net cost of service. Revenue has dropped by 17% CAGR since 2017 and is currently at $219K in 2019 ® 144 full-time firefighters and 28-32 holiday relief firefighters ® 1 fire chief, 2 deputy chiefs, 2 divisional chiefs and 4 platoon chiefs manage the Fire Service ® 4 fire prevention and inspectors and 3 training officers ® Public safety initiative delivery ® Low number of fatalities ® Low number of structural fires ® Strong infrastructure utilization ® Staffing levels are high compared to the number of incidents ® Firefighters are responding to a high number of medical related calls, which is not optimal ® Revenue opportunities through fees for specialized response and training Fire and rescue services I rallSf&F[TlilIg t h e ddivery f t h e � iii lire services $4.5-$5M Moderate Ease of Requires 3+ years implementation significant change ® Calls for fire services have decreased by approximately 56% over the last 12 years at the City of Saint John, which points to a case for review of current fire services workforce levels/expenditures. A benchmark analysis conducted as part of this engagement showed that the per capita service cost in Saint John is $346, which is higher than the median observed in comparable municipalities ($180). Our benchmarks included municipalities that have industrial and port infrastructure which would be similar to the risk profile for the City of Saint John. Therefore, the significant difference in per capita costs compared to peer municipalities points to opportunities to reduce the net cost of service. ® Response to an average of 6-8 medical calls per day currently undermines fire service response capacity. Medical call reduction initiatives through triaging are already in motion, which will provide information on the number and type of fleet vehicles required for medical responses. ® An independent and objective risk analysis to support current fire service levels has not been completed in many years, including the response capabilities of some of the industrial players. ® Many fire stations were built over 40 years ago. Several road, highway and interchange enhancements have been implemented which allow more rapid access to certain neighbourhoods. Fire prevention activities, firefighting technologies and approach have also improved significantly over the years. ® Fire prevention services have limited enforcement capabilities to ensure compliance to safety requirements and manage risks. ® Although the City has a relatively high risk profile, there is a lack of a formal emergency plan and strategy with scenarios and response options also makes the City vulnerable to extensive loss and damage in the event of a high severity incident. Medical calls: ® Manage duplication with paramedic services: Given that over 60% of the calls attended by fire services are medical first response, there is an opportunity to review and identifycall types where paramedic response would be sufficient (based on criticality and type of intervention required). In some municipalities, ambulatory care is dispatched first and fire is only dispatched when necessary. Should the ambulatory care dispatch service not meet acceptable standards for the City, the City should approach Ambulance NB to improve response time rather than seeking to substitute or elevate the response time through fire services. ® Implement a rapid response vehicle for medical calls with reduced staffing: The City is already considering implementation of a rapid response vehicle program where smaller, lighter vehicles are dispatched for medical emergencies. This approach is consistent with the approach used in other municipalities and will inform the number of staff required (could be reduced from four to two) and type of vehicle sent. Staffing model: ® Implement a flexible staffing model and revise mandatory staffing levels in collective bargaining agreements: Provisions in the collective agreement mandates that vehicles dispatched from stations must be staffed with a minimum four firefighters. This may be revised to two firefighters for medical first response calls under the rapid response vehicle program so capacity remains at the station to respond to other calls when the need arises. This will help the City avoid scenarios where no vehicle/staff is available to respond to calls (average of 40 such cases each year). Staffing model (cont.) ® Implement a priority dispatch model: Through implementation of a priority dispatch model similar to the medical priority dispatch model in paramedic services, fire services would be able to triage its service calls and ensure it is allocating the right resources (in terms of volume and capabilities) to the right incidents based on priority and severity. The City has already begun to explore this area by cutting back responses to stroke and seizure calls. By implementing a priority dispatch model, if a station which has only two firefighters available on a vehicle (assuming two others are responding to a medical call in a rapid response vehicle), they can still be the primary responders to a call (for low severity calls) or act as the backup crew for another responding station (for higher severity calls). ® Reduce the number of permanent positions by 24 to 40 by either staffing only one engine/ladder truck from Station 1 or proceed with the closure of Stations 8 and 6 and allowing existing firefighters to operate tanker trucks. The staffing of only one engine or ladder truck from Station 1 could result in the elimination of 16 full-time positions. An additional 16 positions could be eliminated with the closure of one fire station and an additional eight with the elimination of dedicated drivers for the two tankers. Allowing three firefighters to ride in the engine truck with one firefighter driving the tanker to respond to a fire where there is no fire hydrant would support elimination of the dedicated tanker drivers. Infrastructure rationalizations ® The City currently has seven fire stations. The highway and interchange network within the City has improved significantly over the years which could improve the response time. ® An independent assessment of fire services should be performed to further examine the right size of fire services for the City of Saint John. Our recommendation is that this review be commissioned by the City and not by fire services to support an objective assessment. Refer to Appendix B which illustrates fire station proximity. Fire prevention and investigation rationalization/improvements: ® Wages for fire prevention services: The current fire prevention workforce comprises firefighters who require accommodation or prefer a more regular work schedule. However, the salary scale for these roles has not been adjusted to align with similar services provided by the provincial fire marshal's office. There is an opportunity to reduce fire prevention and investigation spend through implementation of wages and benefits that are more in line with the provinces. Implementing fire prevention enforcement capabilities ® Currently, the ability to enforce compliance with fire safety requirements is limited. Hence, fire prevention must conduct multiple inspection visits to ascertain compliance. Imposing fees for re -inspection cases can increase compliance, reduce fire prevention team workload, and provide a source of revenue for fire services. Timely replacement of fire trucks ® Annual maintenance expenses for fire trucks that are beyond their regular life cycle (-15 years) is a significant expense item for the City which may be avoided through timely truck replacement by allocations in the capital plan. The City should consider creating a reserve for fleet replacement as part of the operations budget, Explore MoUs for regional fire response ® Entering into formal agreements with the fire services of neighbouring municipalities might enable the City to improve response times, availability, and firefighter capacity across all participating municipalities. Explore cost recovery opportunities ® The City is already exploring opportunities to recover costs through fees for services such as hazmat rescue and for training services (Irving Oil, province of New Brunswick, etc.). However additional opportunities exist which can be explored. Municipalities across Canada charge fees for inspections/re-inspections and permits and fines for false alarms. Municipalities like Uxbridge and Bradford, which have populations comparable to Saint John's, have instituted fees for attending to vehicle collisions (charged to insurer of the driver at fault), and for cleaning up hazardous materials. We understand the City is currently working on by-law amendments to address false alarms and nuisance calls as well as fees for response to emergency calls related motor vehicle accidents and hazmat within the City. These revenue streams help to reduce fire services net cost of service and improve financial sustainability. Headcount reduction: The reduction of staffing associated with two engines and two tankers along with potential closure of one fire station provides the opportunity to reduce up to 40 full-time firefighters. This measure should be implemented along with a more effective model to respond to medical calls and flexible staffing on engines and tankers so the impact on fire response capability is maintained close to current levels. The savings associated with 32-40 full-time firefighters would be in the range of $4M -$5M, excluding infrastructure operating savings and recovery associated with the reduction of one station and one fire engine. Revenue generation: In addition to cost recovery efforts the City is already making, increasing cost recovery through service fees and fines would generate additional revenue for the City. For example, smaller municipalities such as Bradford (ON) recover 4% of their annual costs through revenue streams. Per capita revenues for fire services have been observed to range between $1.5 to $7 per capita (sample estimates). Applying this range to Saint John results in —$100K to —$460K per year in revenues. ® Additional benefits that can be realized include lower fuel costs by using smaller vehicles in the rapid vehicle response program and reduced wear and tear and maintenance expenses on larger fire equipment. ® Providing enforcement powers to fire services increases compliance and reduces the overall risk exposure of buildings and, as a result, reduces the number and severity of fires. ® Use of lighter vehicles to respond to medical emergencies increases fire services availability and reduces response time. It will also reduce the number of instances per year where no response is available (-40 on average). ® Reducing mandatory staffing levels on engines/tankers will increase the capacity and availability of firefighters, thus reducing fatigue and burnout. Debt reduction Cost optimization Revenue generation (annualized) (annualized) $4M - $5M $100K - $460K ® Council approval would be required for institutionalizing a fire services user fee/recovery structure. ® Fire services by-laws would be required to provide enforcement powers to the department, thereby increasing compliance with fire safety requirements and decreasing fire risk. ® Reforms are needed in the collective agreements to ease constraints such as minimum staffing levels per vehicle. ® Buy -in from labour unions is essential if additional capacity is to be made available through initiatives such as the rapid vehicle response program and eliminating duplication with paramedics on medical calls. ® Provincial consent is required for exploring cost sharing opportunities for medical first response calls ® Ability to introduce flexibility into the collective agreement to address the constant manning clause requiring four firefighters on one engine truck to leave the station. ® Lack of Council support to implement a user recovery model. ® Opposition from unions and collective bargaining groups regarding headcount reductions. ® Opposition from residents due to safety concerns over reducing firefighter headcount. ® Improper risk classification of service calls in a priority dispatch model may lead to high severity incidents being assigned a lower priority, thus causing damages. ® Obtaining agreement from neighbouring municipalities to partner with Saint John through MoUs is a challenge due to the City's elevated risk profile. Also, due to differences in procurement standards and supplies, specifications of firefighting equipment vary across municipalities which could lead to compatibility issues. Activity 2020- 2022- ` Positions can be reduced through attrition to 2021 2023 minimize separation costs. $2-$2.5M ® Flexible staffing can be implemented for medical calls and fire engines. Primary unit should respond with a minimum of four with flexibility for staffing model on supporting units (i.e., allowing smaller medical unit with two firefighters to join two firefighters responding with an engine as a support to the primary units). $2-2.5M ® Decisions are made and better triage is implemented to reduce response to medical calls by at least 50%. "A/m/A 3.2 Police services Saint John Police Force responds to approximately 55K calls per year and offers the following services: ® Crime prevention, including community policing ® Emergency response, including autism registry, 911, emergency tactical services, canine unit ® Law enforcement, including patrol division, criminal investigation division, traffic unit, Fundy integrated intelligence unit ® Public order and by-law enforcement ® Victim services and service planning At $26M per annum, policing annual expenditure represents —16% of the total operating budget, and is the City's largest spend category. The public safety communication centre which is management by the Police Commission has a budget of $2.5M. aim John polke budget (2017-19) $27,000,000 $26,666,666 $25,000,000 $24,000,000 20.17 20.18 20.19 ® Saint John's police budget has witnessed relatively stable growth of 2% between 2017 to 2019. Current expenditure is approximately $26M ® Revenue has dipped by 26% CAGR between 2017 to 2019 and currently amounts to —$460K ® The PSCC budget of approximately $2.5M is not included in the above graph ® 192 staff - 142 uniformed officers, 20 civilians and 30 public safety communication workers ® In 2019, Saint John Police Force had 26 sergeants, 110 1st class constables, one 2nd class constable, and two 4th class constables ® Lower total crime severity index and violent crime severity index compared to peer municipalities ® High focus on crime prevention and community engagement ® Increasing focus on civilianization in the police force ® High per capita service costs compared to peer municipalities pointing to service efficiency opportunities ® More areas of civilianization available to be explored ® Partnerships through regional and provincial collaboration Police services Poke Services Financial and Level of risk Moderate fiscal impact Ease of Requires 3+ years implementation significant change ® Saint John's police services costs per capita are $373, which is higher than the median cost ($332) across comparable municipalities (assessed as part of the benchmarking exercise). The number of service calls/crime incidents are also impacted by the large number of commuters who transit into the City to work, tourist footfalls, illegal activities through the port (e.g., smuggling), and entry of illegal migrants into Canada via Saint John. The need to respond to these activities increases the City's policing costs, which results in higher property taxes for residents. ® High levels of spending on police services is consistent across New Brunswick municipalities. The province has nine police forces for a population of 700,000. As a comparison, the Region of Peel has one police force for a population of 1.3M. This causes duplication among many administrative functions which leads to excess costs for all municipalities within the province. A study on the regionalization of police forces within the province is underway but not yet released. ® Restrictive collective bargaining agreements which limit the flexibility in managing workforce levels, responsibilities, and wages also contribute to rising police services costs. Improving civilianization by expanding the provisions within collective bargaining agreements ® Increase civilianization in existing roles: Civilianization can be improved in the administrative division (three sworn officers) and court services (two sworn officers) as these are allowed in the current collective bargaining agreement. The new collective bargaining agreement may also be modified to allow civilianization in forensic services and low-risk investigation services that do not require the skills of a sworn police officer (e.g., Motor vehicle accident ("MVA") investigation. Note: Positions overseeing fleet and facilities management may also be backfilled by the City of Saint John as a shared service): ® Civilization examples include by-law enforcement calls, forensics, first -on -the -scene to non -injury related accidents and accident reconstruction ® Triage dispatch based on risk: It was observed that approximately 20% of service calls (motor vehicle accidents 4%, parking/driving complaints 11%, family services and mental health 2%, disturbances, animal control and other municipal by-law violations 2%) could be classified as low risk and civilian police officers may be dispatched to manage these. (Note: By-law related calls are handled by non -police entities such as by-law enforcement in many municipalities) Collaboration at provincial and federal levels ® Increase collaboration with RCMP and/or other police forces in New Brunswick to eliminate duplication of services (especially highly specialized services such as forensics) between municipal police forces. Cost sharing mechanisms (e.g., loaning Saint John police officers to RCMP to work on specialized crimes such as cybercrimes) would help reduce costs to the City. Modification of shift timings to save in -lieu time ® The current 12 -hour shifts (two days and two nights) for police officers leads to 102 hours of in -lieu time per officer per year. For the current strength of 102 sworn officers in patrol services, this totals 10,404 hours provided as in -lieu time. Modifying the collective bargaining agreements to move to an 11 -hour shift would help the City eliminate this in -lieu time, and create additional capacity within the police force, as this in -lieu time can be used for training purposes or re -allocated to areas within policing that are in need of resources. Improved rostering and scheduling to avoid overtime ® Due to capacity constraints, the police force backfills vacant shifts by paying overtime (time -and -a -half) to its available officers. Improved rostering and scheduling practices may help the City reduce its overtime costs. Elimination of the 2.5% shift differential (pay for night shifts) would also reduce costs (e.g., Fredericton does not have this provision). Improve technology ecosystem to boost productivity ® The police force currently faces several constraints in its technology ecosystem including an outdated records management system which entails considerable duplication of efforts (re-entering information in multiple systems), thus causing data management delays or errors. The use of Dictaphones to support report writing also limits productivity when options such as voice to text technologies are available to improve the time, effort, and quality of report writing. Standardization of procurement ® Police forces across the province have different standards and specifications for their equipment and materials. If forces need to collaborate with each other on operations or service calls, there are compatibility issues with equipment (e.g., radios, rifles etc.). If the province of New Brunswick imposes standards and specifications for equipment, this could eliminate compatibility issues, but also enable police forces to conduct joint procurement of equipment and improve purchasing power through economies of scale, thus reducing costs. ® Civilianization of roles currently accepted in collective bargaining agreements: Converting five uniformed positions within administration and court services to civilian positions may enable the City to save between 20OK-250Kannually (assuming civilian pay scales are 40%-50% less than the average pay for uniformed officers, approximately 100K). ® Civilianization of additional roles: Modifying the civilianization criteria to enable civilian police officers respond to low-risk service calls (20% of total calls) would enable the City to convert 20% of its patrol strength (102) to civilians and could enable the City to save between $806K -$1.02M ® Reverting to a 11 -hour shift is estimated to save the City $400K of in -lieu time annually. ® Rostering: Improved rostering and scheduling practices may enable the City save over 10% of its overtime costs (estimate based on case studies of similar implementations in public sector organizations). This is approximately $70K based on an average of the last five years. ® Procurement consolidation: Exploring joint procurement with police forces of other New Brunswick municipalities may enable the City to reduce procurement costs due to increased economies of scale. This is estimated to be between $75K -$370K based on average spend over the last five years (the estimated savings have not been included in the total estimated savings for police services). ® Cost recovery/partnerships with RCMP: Partnering with the RCMP or entering into cost sharing agreements to address issues such as digital/cyber-crime, organized crime, illegal migration, smuggling through the ports etc. would enable the City to reduce costs. ® Reduced shift duration may increase the capacity and availability of police officers, thus reducing fatigue and burnout. ® Increased digitization and enhanced use of technology in policing would improve the productivity of both front line and support service police officers. While there is an upfront investment associated with digitization, the City should assess the benefits against those costs. ® Improved talent and performance management systems that are not solely reliant on seniority may boost the performance of police officers and increase the attractiveness of Saint John police services as an employer. Cost Revenue Debt reduction optimization generation (annualized) (annualized) $1.5M - $1.7M ® Implementing new shift durations and rostering will require a detailed assessment of the current constraints imposed by collective bargaining and the impact on service levels; this assessment should be rigorous to ensure that unintended consequences are minimized and do not need inclusion in the next round of bargaining. ® Support from the province and the RCMP would be required to explore policing partnerships and cost- sharing arrangements. ® Provincial directions would be required for all police forces to standardize equipment in a manner that facilitates cross collaboration and joint procurement. Activity ® Opposition from unions and collective bargaining groups regarding headcount reductions and increased civilianization. ® Opposition from residents due to safety concerns from increasing civilian police headcount. ® Improper training provided for civilian police officers would impact City service levels. ® Obtaining agreement from all municipalities to standardize equipment specifications would be a challenge. ® The current binding arbitration processes could pose an impediment to achieving some of these recommendations. ® Savings through civilianization may be realized only 2020 2021 2022 2023 through attrition as existing uniformed officers cannot be replaced by civilians due to constraints in the collective bargaining agreements (unless re -negotiated in the current round of bargaining). ® Calculations for savings through civilianization have been made by assuming an average salary of $100K per uniformed officer (excluding benefits). It is also assumed that civilian salaries are 40%-50% lower. Realized savings may vary based on the actual salaries of repurposed positions 3.3 Saint John Energy $6,000 $4,000 Saint John Energy rebranded in 1997. Originally created by SJ Council in 1922 as the SJ Power Commission or Civic Hydro, Saint John Energy purchases its energy from NB Power and distributes it to residential and commercial customers within the City boundaries. ® SJ Energy has a strong focus on innovation and has created a long-term growth strategy built on renewable energy, smart energy services and strategic partnerships to deliver innovative energy solutions. ® City of Saint John residents enjoy reduced energy rates —10% compared to NB Power, while Saint John Energy remains focused on being agile and efficient. ® The interpretation of existing legislation has not allowed the utility to pay a dividend to its shareholder (the City), in contrast with many other Canadian municipal utilities. Several municipal utilities provide an average dividend of approximately 50% of their net income or free cash flow to their municipalities. Net Income $0 20.16 20.17 20.18 Net income: ® Net income for SJE increased by over $5M since 2016 with the introduction of new growth initiatives ® It is also important to note that investments in property plant and equipment has also increased substantially over the past three years, which significantly impacts the cash available to support dividend payments ® There are 102 FTEs at Saint John Energy with 452 direct, indirect and induced jobs. ® Innovative growth plan ® Strong customer service ® Low energy rates ® Contribute to the City's operations ® Contribute to an opportunity to reduce property taxes for residents Saint John Energy iii n t J o h n IE n e iir ,. d iii v iii d e n d iin t iir iii b U t iii 0 11 Level of risk Ease of Requires 2-5 years implementation significant change The province of New Brunswick does not allow municipalities who own an energy utility company to collect a return on their investment. Other Canadian municipal utilities provide dividends to their municipal owners as a percentage of Net Income ("NI") ® EPCOR - Edmonton Alberta (56% of FY18 NI $295M) ® London Hydro - London Ontario (54% of FY18 NI $18M) ® Toronto Hydro - Toronto, Ontario (46% of FY18 NI $156M ® KW Hydro - Kitchener, Ontario (41% of FY18 NI $10M) ® Hydro Ottawa - Ottawa, Ontario (57% of FY18 NI $36M) ® Enwin - Windsor, Ontario ( 63% of FY18 NI $8M) There are two key opportunities that the City could explore with SJ Energy: 1. Optimize the asset and pay a dividend to the City in the range of 50 to 60 percent of net income: SJ Energy has built a growth agenda focused on innovation through renewable energy, smart energy services and strategic partnerships. SJE is in a strong financial position and could provide another source of revenue to the City by contributing a dividend: ® SJ Energy management identified that it could contribute between $1.7M and $4.8M annually to the City of Saint John based on various growth scenarios ranging from moderate to aggressive. If SJ Energy were to increase its energy rate to be consistent with NB Power's energy rate, net income and free cash flow could be further increased by $8M -$9M annually. Assuming a dividend rate of 60% for the increase in net income, SJE could pay an incremental dividend of $4.8M -$5.4M. When combining the dividend from the growth scenarios with the increase in energy rate, SJE could pay a dividend of approximately $6.5M -$10.2M. Concurrently, the City would lose current energy savings of approximately $2M annually which would reduce the net benefit to $4.5M -$8.2M. A higher dividend rate could be considered to flow the entire increase in net income arising from the increased power rate, which would provide an incremental benefit of $3.2M -$3.6M. We did not include this additional opportunity in our estimates to remain conservative as there are no guarantees associated with the forecasted growth plans. ® By increasing energy rates to be consistent with NB Power's, there is an opportunity for the City to reduce property taxes and consider providing a rebate program to ensure that low-income residents who are not property owners are not put at a greater disadvantage from increased energy rates. Decreasing the City's property taxes would be a strong measure to attract residential and commercial investments in the City which could stimulate additional growth in property tax revenue. 2. Sell the asset: An alternative scenario would be, the Province amend legislation to enable the City to sell the municipal utility asset and invest the capital or pay down the debt. ® Based on publicly available information, power distribution companies in Canada and the US trade in a range of approximately 8x -12x EBITDA, subject to: ® Most of the transactions with publicly disclosed information were for companies significantly larger than SJ Energy situated in regions with growing populations in high density areas, and ® Diversified energy companies (including distribution, generation and transmission) traded at the low end of the 8x -12x EBITDA range ® Other factors that would influence value and would need to be better understood include: ® Mini -splits division, wind power project and other adjacent growth opportunities ® Contractual relationship between SJ Energy and NB Power ® Historical and forecast mix of sustaining vs. growth capital expenditures, and ® How much of the $10M annual savings ($8M to consumers and $2M to the City) referenced on SJ Energy's website could be recovered by a private buyer through power rate increases ® We understand that the City and SJ Energy have requested valuation of the asset; therefore, this element was not in scope for our review. The municipal utility is also able to leverage federal funding which may be more difficult to attract under a different model. Recommendation: Assuming that the province interprets the existing legislation in a manner that would enable dividends to flow back to the City, our recommendation is to optimize the asset and pay a dividend to the City in the range of 50 to 60 percent of net income. If optimizing the asset is not feasible due to legislative constraints and legal barriers, the City should proceed with the sale of the asset and protect its proceeds while enabling the interest income benefit to flow through as a property tax reduction and contribute to operations. ® SJ Energy identified that they could contribute between $1.7M and $4.8M annually to the City based on various growth scenarios ranging from moderate to aggressive. SJ Energy increases energy rate to be consistent with NB Power's resulting in increased net income and free cash flow by $8M -$9M. Assuming a dividend rate of 60% for the increase in net income, SJE could pay an incremental dividend of $4.8M -$5.4M. Combined annual dividend from the growth scenario and increase in energy rate would result in $6.5M -$10.2M. Concurrently, the City would lose current energy savings, approximately $2M annually, which would reduce the net benefit to $4.5M -$8.2M. A higher dividend rate could be considered to flow the entire increase in net income arising from the increased power rate which would provide an incremental benefit of $3.2M -$3.6M. We did not include this additional opportunity in our estimates to remain conservative as there are no guarantees associated with the forecasted growth plans. Cost optimization Revenue Debt reduction (annualized) generation (annualized) $4.5M - $8.2M ® Positioning SJ Energy as an innovation hub for the City to attract new residents and businesses. ® Dependent on government appetite to support changes to/re-interpretation of current legislation Activity 2020 ® Energy rate payers may negatively react to increased energy rates. ® Low-income residents who rent housing would be negatively impacted by rate increases. Programs can mitigate this. ® The province is not willing or supportive in adapting the legislation to support return on equity and payment of dividends. ® Raising energy rates may put SJ Energy in a position where it must to be regulated, resulting in more planning and costs. The analysis was based on the following assumptions: 2021-2022 Provincial government support to modify the legislation. ® Support from SJ Energy board and management to implement a dividend policy. ® Support from SJ Energy board and management to implement an energy rate increase. ® Matching of NB Power rates over a period of time to achieve the top end of the benefit. JIv, rear SIX IT 3.4 Municipal buildings The City of Saint John owns seventy-seven (77) buildings with an additional fifty -plus (50+) Saint John Water buildings. ® These buildings were valued at approximately $100M (2019 assessment values) total, excluding the Saint John Water buildings (these buildings ranged in assessed value from $70K to over $17M). ® The City is currently undertaking opportunities with respect to municipal buildings including various sustainability ideas, public expressions of interest (EOls), relocation of City employees, improvement of City assets, and divesting of assets. ® Based on preliminary observations, of the seventy-seven (77) City -owned buildings, EY, in consultation with the City of Saint John, has identified nineteen (19) potential opportunities for the City to consider further, that have not already been presented to Council via the CSJ Sustainability Ideas. These opportunities differ in scope and magnitude, and are discussed further in the Opportunity section of this municipal buildings business case. Provided there is market demand, the following graph represents the pace of divesture in dollar value. 4 MEL 2020 202'.1. 2022 2023 2024 Revenue: Using the 2019 assessment values for municipal buildings and coordination with the City of Saint John, EY has identified approximately$6.OM in potential sales opportunities, excluding where further assessment is required per Appendix C. This has been spread out in the table above from 2021- 2024. Cost savings: ® Certain buildings' operations and utilization improvements could have a financial benefit to the City, however, further assessment is required to quantify this benefit. These are identified in Appendix C. Expenditure: ® To gain an understanding of the true market value of these opportunities, the City will need to perform operations and utilization assessments as well as property appraisals in 2020. ® N/A. ® Municipal buildings opportunities for the City to consider: ® Sales and eases; and ® Operational and utilization assessments ® Divesting of assets or developing more efficient operations and utilization of municipal buildings will result in savings for both the City and its residents. ® Appendix C identifies the nineteen (19) municipal buildings opportunities identified in coordination with the City of Saint John. Municipal buildings Assets Iln i n f ra s t IlF U C t U Ilr $5-$6M Moderate Ease of Requires 2-3 years implementation significant change ® Divesting of surplus municipal buildings will result in one-off disposal cash revenues for the City. ® Developing more efficient operations and utilization of municipal buildings will result in longer-term savings for both the City and its residents. ® In addition, disposal of properties will lead to tax savings for the City and generate revenues from third -party property taxes. ® Of the seventy-seven (77) City -owned buildings, EY has identified nineteen (19) potential opportunities for the City to explore, broken down into; divesting of certain Municipal Buildings or identifying potential cost savings by performing operational assessments (E.g. Aquatic Centre, Lord Beaverbrook, TD Station). Divesting opportunities could yield $6 million based on 2019 Assessment Values. Although, the value of the cost savings from increased operational/utilization efficiencies were not quantified, however we have identified the Municipal Buildings where operational assessments should be performed to determine potential cost savings. See Appendix C for more details. ® It should be noted that the value of opportunity column within Appendix C shows values based on 2019 assessments. These may differ from the actual market value of the opportunity and EY therefore recommends reviewing the opportunities and subsequently performing property appraisals to gain a more accurate depiction of the market value of each 0000rtunity. ® Using the 2019 assessment values for sales opportunities, EY has identified approximately $6.OM in opportunities, excluding opportunities where further assessment is required. ® EY believes operations and utilization improvements to certain buildings could have a financial benefit to the City; however, further assessment is required to quantify these and their operational savings have therefore not been included in this business case. ® The first year will require the City to invest in property appraisals to identify the true market value of the sales opportunities and operational assessments to confirm and quantify operational savings. ® The following tables are high-level estimates based on the opportunities, see Appendix C for breakdown of timing of savings. 4.0 2.0 0.0 MM 2020 2021 2023 202d nves> menf (� 1.0 IHnnefH 3 0 1.0 1.0 ® Performing operational and utilization assessments will help identify inefficiencies in the City of Saint John's municipal buildings. ® Change management to improve operations will be required after identification of inefficiencies. ® Divesting of properties or using them more efficiently and effectively can encourage growth and new businesses and opportunities which could benefit the citizens of Saint John and attract greater levels of tourism. One-time savings Annual savings Revenue $5M -$6M ® Coordination with various City departments. This includes Saint John Water, to identify opportunities with its approximately fifty (50) owned municipal buildings. ® Council approval for operational/utilization assessments and property appraisals in 2020 to gain a better understanding of the opportunities' true market value. ® Council approval for divesting of municipal buildings. Activity 1 Activity 2 Operational / Property utilization appraisals assessments Using identified Divest municipal opportunities, buildings where implement possible operational and utilization improvements Continued Continued improvements divestures Continued Continued improvements divestures ® Market interest in municipal buildings. ® Minimal inefficiencies found and clear opportunities for municipal infrastructure rationalization have already been explored. ® Push -back from the public on divesture of certain buildings (e.g., TD Station, Canada Games Aquatic Centre). The analysis was based on the following assumptions: ® There is market interest in municipal buildings ® There are operational/utilization inefficiencies in buildings identified by the City of Saint John as outlines in Appendix C Data Sources: ® 2019 Property assessments ® Input from the City of Saint John ® CSJ Sustainability Ideas presented to Council 3.5 Municipal lands The City of Saint John owns approximately fifteen -hundred (1,500) pieces of land, four - hundred and twenty-one (421) of them labelled as vacant. ® The vacant lands have a combined 2019 assessment value of approx. $4.61M. Additional work is required to confirm market values. The top 21 lands (worth $50K or higher) make up $1,927,900 or 42.0% of the total vacant land value, and the top 48 lands (worth $25K or higher) account for $2,853,500 or 62.0%. ® There are additional land opportunities that were previously rejected by Council that may be worth revisiting based on changing circumstances and the City of Saint John's current financial position. The land opportunities that were previously rejected by Council have a 2019 assessment value of approximately $1.87M.. Provided there is market demand, the following graph represents potential divesture of lands. AL Q7 2020 202'.1. 2022 2023 2024 Revenue: ® Using the 2019 assessment values for vacant land valued above $25,000, EY has identified $1.88M in potential sales opportunities, depending on the usability of the land. ® Using the 2019 assessment values for land previously presented to Council, EY has identified $1.87M in potential opportunities, pending Council approval. ® Following property appraisals in 2020, as noted in the expenditure section below, there is $3.71M (2019 assessment value) in revenue potential assuming there is market interest in the lands stated above. This has been spread out in the table above from 2021-2024. Expenditure: ® To gain an understanding of the true market value of these opportunities, the City will need to perform land appraisals. This is identified in the table above in 2020. ® The first year will require expenditures to the City to invest in property appraisals. ® N/A Vacant lands ® There is over $41M of vacant land owned by the City and likely additional opportunities not identified as vacant land. Otherlands ® Given circumstances for rejection may have changed and that the City is in a different financial state than when land development opportunities were previously presented and rejected by Council, revisiting them may prove financially beneficial. ® Appendices D-1 and D-2 identify vacant land opportunities and land opportunities previously presented to Council, respectively. Municipal lands Assets & IIIInih-ashII'"LICt III' $3.2M - • Lower $3.7M Ease of Requires 3+ years implementation some change Vacant lands ® The City owns over $4M in vacant land and likely additional opportunities not identified as vacant land. As the City is looking for budgetary opportunities, there is potential to divest or lease lands. ® Divesting of land for the purposes of economic and tax base growth is a strategic approach to optimizing the asset. Otherlands ® Given that circumstances for rejection may have changed and that the City is in a different financial state than when land development opportunities were previously presented and rejected by Council, revisiting them may prove financially beneficial. ® Refer to Appendix D.1 to review the vacant lands valued over $25K. Given that these lands make up 62.0% of the total vacant land value, EY recommends the City coordinate with the departments owning these lands to identify opportunities. Solely based on the 2019 assessment values and quantity of land, EY recommends the City first coordinate with the Department of Recreation and Saint John Water to identify opportunities. These departments have the top two (2) quantities of land, as well as the most land valued over $25K. ® Given the number of smaller parcels of land, the City may also consider a system for the wider public to proactively make offers for the sale of vacant City land. ® Refer to Appendix D.2 to review opportunities on land previously presented to Council with EY recommendations to be re -considered. ® Note: Opportunities are contingent on demand for the land and represent only a one-time gain that cannot be used to address the structural deficit. ® Using the 2019 assessment values for vacant land ® Encouraging better use of existing land for residents opportunities as per Appendix D-1, EY has identified and tourists. $1.88M in potential opportunities, depending on the ► Increasing the property tax base may have financial usabilityof the land. and non-financial benefit. ® Using the 2019 assessment values for land previously ► Development of land in a city implies progress. presented to Council as per Appendix D-2, EY has identified $1.87M in potential opportunities, pending Council approval. ® To gain an understanding of the true market value of these opportunities, the City will need to perform appraisals. ® The first year will require the City to invest in property appraisals. ® In some cases, the assessment value may not reflect market value and an effective way to assess the financial impact is to determine the projected annual tax revenue based on the market value of the lands. I.s G 05 GG 020 CA 'I,,,, 2022 :!i:2"l J 202d nves> menf,(�( C ( El,eneM Cost optimization Revenue Debt reduction (annualized) generation (annualized) $3.2M - $3.7M ® Coordination with various City departments to determine opportunities, specifically the Department of Recreation and Saint John Water which have the highest number of vacant land opportunities as well as the highest valued lands. ® Rezoning of certain park lands as outlined in Appendix D-2 ► Council approval for property appraisals. ► Council approval for divesting of land. ► Market interest in land. ® Push -back from the public on rezoning of park lands, for example on Sandy Point Road and development of Tucker Park. ® Business case is contingent on there being a demand for land within the City of Saint John 2020 2021 2022 2023 Property Sell land Continued Continued appraisals where divestures divestures possible Council approval Coordinate with potential buyers The analysis was based on the following assumptions: ® The vacant land is marketable ® There is market interest in the land ® The various City departments will provide required input Data Sources: ® 2019 property assessments ® Input from the City of Saint John ® EY CSJ Sustainability ideas presented to Council ® 3 and 8 cut sheets ® Land - parking lots 3.6 Procurement The City's Material Management Division is responsible for facilitating the procurement of goods, services and construction contracts for all City departments (with the exception of the Municipal Operations Department), and Police services. The Municipal Operations Department is responsible for infrastructure contracts and professional services procurement. (-) Capital payments ( $138.6M) (-) Salaries, gov orgs ($94.1M) (-) Service centers, grants, charities ($14.1M) (-) P card ($3.2M) Savings low Savings high 2% 7% $1.2M $4.4M ® Addressable spend excludes fleet (as it is included in a separate case). A baseline exercise is required to further refine savings. ® Low savings assumes City adoption of strategic sourcing and contract management principles to manage its addressable spend. ® High savings assumes creation of a shared services function responsible for category management and strategic sourcing, for various entities (ABCs) and municipalities. Key responsibilities of the procurement function includes the following: ® Assisting departments with the development of specifications ® Promoting fairness and competition; ® Establishing and maintaining a list of potential bidders ® Executing tenders and RFPs. and ® Establishing and maintaining an inventory of commonly used parts and materials ® There are three FTEs within the Material Management Department (excluding Municipal Operations Department) who are responsible for facilitating procurement of goods, services and construction contracts ® Purchasing for the most part is centralized for the City of Saint John ® The City leverages provincial contracts (on occasion) to take advantage of competitive pricing ® RFP templates are well structured and promotes competitive bidding and fairness ® Shared services ® Strategic sourcing and category management ® Contract management ® Reduction of payment vouchers ® Red -tape reduction Procurement III' L III' e I[Tieln t eln h Iln e I[Tieln t $1.2 Moderate $4.4M Ease of Requires 2-3 years implementation significant change ® The procurement function is currently viewed as a buyer of goods and services and lacks the strategic capabilities (processes and governance) to provide strategic business services to the departments. As a result, goods and services are sourced as required, and there is no formal strategy in place to look at the spend from a holistic perspective. ® Duplication of procurement activities across ABCs (i.e., each entity procures goods and services separately - case for shared services). ® Tri -city procurement occurs randomly and participation by entities is optional. ® Lack of a formal contract management process (no evidence within the City's procurement policy). EY has identified five potential opportunities to drive financial and non-financial benefits: 1. Shared services: Implementation of shared services to manage spend portfolio effectively (reducing procurement costs, increasing savings, improved contractual relationships). 2. Strategic sourcing and category management: Adoption of category management and strategic sourcing principles to reduce Total Cost of Ownership (TCO). 3. Contract management: Adoption of contract management practices to reduce value leakage. Spend can be managed effectively by automating the invoice validation process. 4. Reduction of payment vouchers: Streamline process and increase control. 5. Red -tape reduction: Increasing the spending authorization limit for department heads so that bottlenecks are not created for Council approvals to go to market for procurement for items that have already been approved in the budget. The spending limit may be categorized based on the type of purchase and its associated risk. Note: That approximately 50% of estimated savings will not affect the operating budget of the City but will flow to SJ Water, Transit and Parking Commission and the Police Commission. Savings range Lowl,3 High2,3 Comments ® Addressable spend ($68.3M) was taken to measure savings. This spend capital, salaries, charities, etc. A baseline exercise is required to further refine savings, as it considers demand and inflation ® Low savings assumes the City adopting strategic sourcing and contract management principles to manage its addressable spend ® High savings assumes creation of a shared services function responsible for category management and strategic sourcing, for various entities (ABCs) and municipalities within the region Cost optimization Revenue Debt reduction (annualized) generation (annualized) $1.2M - $4.4M ® Establishing a governance model: Roles and responsibilities for the various entities in scope ® Leadership: Ideally a director level position to overcome internal barriers ® Data visibility: Obtaining spend and contract data from the entities in scope ® Demand forecast: Ability to forecast demand over a multi-year horizon ® Council approval: For increasing the spending limit for staff Strategic sourcing and category management ® Decreased administrative effort related to issuing RFPs ® Supplier rationalization Contract management ® Decreased administrative effort related to invoice validation through automation Spend under PO ® Streamline process ® Increase controls Red tape reduction ® Decreased administrative effort related to obtaining approval and obtaining quicker turnaround time for procurement ® Impact on local supplier communities through strategic sourcing and category management ® Perceived loss of transparency and governance due to increased staff independence for procurement spending Work stream High-level activities Savings Assumptions O +1 N M N N N N ► Addressable spend: Spend excludes capital spend, O O O O salaries; payments to service centers, government organizations, charities, grants; fleet (covered in a separate business case); and p -card spend. In 2019 the addressable spend was $68.3M. A detailed spend analysis is required to calculate the baseline. Historical spend is dependent on various factors such as changes in demand, new projects. Organizations typically apply savings to baseline spend, as it factors changes in demand and inflation. See Appendix E. ® Low savings rangel,3: Assumes the procurement function adopts strategic sourcing and contract management principles to manage addressable spend for the City of Saint John only. ® High savings range2,3: Assumes creation of a shared services function responsible for category management and strategic sourcing, for various entities (ABCs) and municipalities within the region (Fredericton and Moncton) ® Savings mechanism (non exhaustive list): ® Combining volumes across entities and geographies. ® Standardization of specifications and leveraging substitutes. ® Development of processes and procurement to manage demand. ® Development of contract management processes and procedures to eliminate maverick spend and manage compliance. VA .....,ilii 3.7 Saint John Water ® Saint John's water system is one of the oldest in Canada and it is the largest and most complex in New Brunswick with approximately 500 kilometres of distribution and transmission water pipes buried beneath the ground across the City that provide drinking water to 17,000 residents, industrial water for businesses and collects and treats wastewater for the City. ® Saint John Water has been a key area of focus for the City over the past several years with large transformational changes involving large capital expenditures such as the harbour clean- up costing $1O0M from 2009 to 2014, and the Safe and Clean Drinking Water Project (SCDWP), costing $216.8M, from 2016 to 2019. Drinking water quality has moved from not meeting provincial and national drinking water standards to now meeting or exceeding provincial and national drinking water standards. ® Saint John Water has initiated various revenue generating opportunities in the past and is currently working on additional opportunities: charging for water and service as long as a building is still standing ($9OK/year); engaging in lease agreements with Bell and Eastlink to rent the water towers ($37K/year); providing watermain tapping services to the private sector ($10K-$15K/year)and exploring opportunities with Saint John Energy. ® Saint John Water has also initiated various cost reduction initiatives such as reducing fleet numbers ($62K/year), notifying the public via web instead of paper ($46K/year), eliminating staff positions ($25OK/year), funding capital through the operating budget, and conducting earlier tendering. $50,000 $49,058 $48,995 $48,775 $48,286 $49,000 $48 000 $47,000 $46000 $47,137 $46,605 $4x,000 207.7 207.7 207.7 207.8 207.9 207.9 Revenues EX perif, e_s Revenues EX perif, e_s Budget Budget Revenues EX pe. nsef, 207.7 207.8 207.9 ® Saint John Water is operating with an annual surplus that averages $1M. ® Operating budget for 2019 was estimated at $48M and the capital budget (utility share) at $4.7M. ® The largest areas for capital expenditure is for infrastructure renewal for water and sanitary ® New ground water system (2017) and new water treatment plant (2018); resulted in significant cost increases for chemicals, professional services relating to the operation of the facility, property taxes. ® Wages and benefits made up 21% of expenditures in 2019. ® 13.6 FTEs in management positions ® 0.6 legal FTEs are shared across service areas ® 14 FTEs are part of the Local 486 ® 84 FTEs are part of the Local 18 ® Completion of new water treatment facility ® Steady financial performance that turns a surplus ® Aggressive plan in place to quickly pay off debt ® Strong focus on revenue generation activities ® Expand revenue generation activities and contribute to the general fund ® Utilize the utility's capacity to serve other municipalities ® Optimize staffing and fleet operations Saint John Water iii n t JoNn Water IIP t iii IT'lizatian and n hr� iii bU t iii ill to genera� f U iin Jurisdictional evidence/research $1.1M- • Moderate $1.6M* Ease of Requires 2-3 years implementation significant change *Not all contributes to general fund ® Epcor started as Edmonton's power and water utility and today operates as a commercial entity with an independent board of directors and a single shareholder (the City of Edmonton). It has expanded and now provides water and wastewater treatment services in western Canada, Arizona, New Mexico and Texas; natural gas distribution in Ontario and Texas; electricity distribution in Edmonton and Ontario; and other lines of business. In 2019, it generated $171M in dividends for the City (this is up from $60M in 1996). ® Several cities, such as Saskatoon (SK), Edmonton (AB) and Hamilton (ON), have adopted a rate structure where lower rates are used for basic household needs and higher rates for discretionary consumption such as lawn water and pools. Internal constraints ® Management is constrained by the minimum number of Local 18 outside workers in the collective agreement. Currently, there are more workers within the division than necessary to maintain current operations. In addition, the restrictions in the collective agreement are preventing water services from achieving an optimal span of control. Contribution to general fund ® Saint John Water is producing a surplus, and could contribute to the general fund if legislation did not restrict the payment of dividends to the City's general fund. Reduce workforce and adjust the span of control : ® Reduce general workforce across Water Services areas by 6 to 11 FTEs ® Reduce operators by 4 FTEs ® Add 2 superintendent FTEs (to enhance oversight and productivity) ® Reduce the number of designated operator positions from 16 to 7 (reduction from the DO level to Job Level 6 in wages - not a reduction in FTEs), ® To optimize the span of control across departments and potentially other service areas, it is also recommended that the operators are pulled from the unions and that there is an increase in direct reports. ® Annual savings are estimated at $990K - $1.4M Serve other municipalities Currently, there are pipes in place that run from the City to Rothesay, making it possible for the City to provide Saint John Water services to the Town of Rothesay and neighbouring local service districts. Given the infrastructure in place, proximity and new facilities, the City is in a strong position to serve the Town of Rothesay, which could result in increased annual revenues of $150K to $200K. Rothesay would benefit from high-quality water service, limited maintenance and staffing costs. In addition, the City's strong operational services could be provided to other municipalities through positioning itself as a centre of excellence for operational water services. Through increased revenue generated by serving other municipalities, Saint John Water services could direct these revenue into the general fund through the payment of dividends, similar to Saint John Energy. However, given the roadblocks in place on paying dividends to the City, there is a requirement for legislation to be revised to support this funding model. Reduce number of fleet ® See Fleet Business Case for more information. Metering solution ® There are additional savings opportunities that would be contingent on a water metering installation initiative. The current business case for metering is not favourable in its current state, although there is potential for a favourable business case in the future. At this time, it is suggested that alternative opportunities be explored that could have a more considerable financial impact on addressing the City's deficit. The following outlinesthe approximate financial impact on the City for each of the proposed opportunities: ® Reduce workforce and adjust the span of control: $990K - $1.4M. ® Adjust the span of control to reach optimal efficiency. ® Serve other municipalities: $150K -$200K per year. ® Reduce fleet numbers: See the fleet business case for more information. ® Alternative metering solution: More detailed analysis on the opportunity is required. Cost optimization Revenue Debt reduction (annualized) generation (annualized) $990K -$1.4M $150K - $200K The savings would not contribute to the City's operational budget but it does allow debt reduction and a potential for stabilizing water rates in the future. Union/collective bargaining: ® Bound by minimum number in the collective agreement and a no lay-off article ® Restriction on career streams and reporting structure Legislation changes: ® Legislative changes are required to implement Opportunity A and unlock the full benefits for the City. Council approval: ® Council approval from both the City and other municipalities ® Improved operational efficiency and productivity of Water services ® More industries and businesses could be attracted to move to Saint John to leverage the state of the art water and waste facilities ® Increased City resident satisfaction through fair and affordable water rates ® Union negotiation time and effort required ® Political pressures and required negotiations with neighbouring communities ® High up -front costs for implementing a metering system ® The opportunities for Saint John Water Services can be implemented over a 5 year period. The immediate focus for water should be contributing to the general fund to assist with the City's deficit. Activity 2020 2021 2022 2023 2024 ® Annual salaries for Saint John Water Services workers are estimated at $80,000, including all associated benefits and special pensions. ® Annual salaries for Saint John Water Services operators are estimated at $99,596, including all associated benefits and special pensions. ® There would be an additional 8% in added efficiency savings ® Collective agreement restrictions can be removed for minimum numbers. ® Designated operator would be a hands on working as they are and this would remove many non -hands on operators ® From initial experience with the addition of a Superintendent, Saint John Water has seen a reduction of overtime of 8%, meal cheques have seen a reduction of 11%, operating supplies went down 40% due to improved oversight/control, apparel costs were reduced by 37%. In addition, improved management of sick time , vacation time and tool purchases have been better controlled. ® Rothesay would need to be open to opportunity for the City the serve them with their Water services. Data sources: ® Saint John Water - Fiscal Responsibility: Strategic Planning Session February 27, 2019. ® Interviews with City employees. 3.8 Economic development $2,400,000 $2,"00,000 $2,200,000 $2,.1.00,000 $2,000,000 $1,[300,000 Economic development in the City comprises three separate agencies that support the growth and develop of City in different ways: ® Economic Development Greater Saint John (EDGSJ): Focuses on achieving steady, long- term economic growth for the region by creating opportunities that improve quality of life and drive prosperity. ® Discover Saint John: Is Saint John's destination marketing organization with a mission to increase the City's tourism revenues. ® Develop Saint John: Is focused on encouraging strategic real estate development in the City of Saint John, particularly through City -owned properties. ® The Economic Development Advisory Council (EDAC) is proposing that the City work with the current agencies/partners to lead the development and implementation of a new, consolidated innovative regional economic development organization that would have all current economic development agencies (EDGSJ, Discover SJ, Develop SJ) under one umbrella, with one leader, one board and one budget. ® Currently, the City funds 90% of the budget for each of the three key agencies: ® Discover SJ: $1M ® EDGSJ: $475K ® DevelopSJ:$821K 201.7 1111111120.18 20.11) Expenditure: ® Expenditures are budgeted at $2.3M for 2019 and have grown at an average annual rate of 14% since 2017. Expenditures have been stable over the past year. ® The economic development agencies together represent 1.45% of the total operating budget. ® Discover SJ has the largest budget at $1M, with EDSJ having the lowest at $475K. ® 25 FTE ® Strong focus on regional collaboration ® Supporting immigrants and start-ups ® Implementing new real estate developments to support growth ® Tourism revenue generation initiatives ® Regionalize economic development initiatives and share costs to benefit the region as a whole ® Consolidate the three economic development agencies to create a consistent brand and enhance efficiencies Economic development RegianaHzatian of (: ill [Tl iii(: vdIIP i[Ti en t $500- • Moderate $BOOK Ease of Requires 1-2 years implementation significant change ® The City has been leading this initiative and is actively engaging advisors and consultants to help drive progress. ® Only Census Municipal Area ("CMA") without 100,000 population in the urban core. ® One of only a handful with a declining urban core population. ® One of only a few where the largest municipality alone represents less than 60 percent of the CMA/CA population (City of Saint John is 54% of the CMA). ® One of the largest household income gaps between the large municipality and the smaller municipalities of any CMA/CA in Canada. ® The interconnectedness of the CMA economy means that, in the long run, the destinies of the municipalities are intertwined ® Other jurisdictions are moving towards this model to enhance their investments in economic development, e.g., 3PIus Economic Development Organization between Riverview, Dieppe and Moncton: https://3plus.ca/. The region is now the fastest growing urban centre in Atlantic Canada. Regionalization of economic development: There is opportunity to accelerate development and implementation of a new approach to regional economic development through an innovative framework where current agencies (EDGSJ, Discover SJ, Develop SJ) consolidate under one umbrella to serve and promote the region. Participating municipalities would include: Saint John, Grand Bay -Westfield, Rothesay, Quispamsis, Hampton and St. Martins. The new organization would be governed by a consolidated board of directors and governed by a Chief Economic Development Officer, supported by selected advisory groups. The new model of economic development would: ® Consolidate multiple activities that will result in Greater Saint John having the second largest regional economic development agency in Atlantic Canada. ® Cover all economic development in Greater Saint John. ® Redeploy some current overhead costs associated with funding multiple economic growth organizations to produce annual savings for the City. ® Reduce overlapping effort in economic promotion activities across key agencies and increase consistency in messaging. ® Enhance opportunity to gain federal funding and grants. ® Allow for greater focus on leveraging both the City's and the region's key assets and attributes to attract investment and economic growth (university, hospital, water infrastructure, airport, etc.). ® Give the ultimate responsibility to the private sector -led board of directors that ensures strong regional representation and a direct line of accountability for all regional economic development activities. ® Ensure a regional approach to economic development where all contribute fairly and all benefit from the results. ® Build on the current level of funding commitments, with future material growth in economic development funding through an innovative new growth -oriented shared funding model. ® Have the full support of key external stakeholders, including ONB, ACOA and other critical partners. Industry promotion Industry promotion: Saint John has a number of key assets and resources that the City has invested heavily in that could be leveraged as a method for attracting new companies to set up business in the City, specifically industry (e.g., water treatment facility). A deeper analysis would need to be completed to fully assess the potential impact of deeper investment in promoting the City's key assets to enhance industry attractiveness. ® Municipal funding for this new organization will come from two sources. Firstly, from base funding and, secondly, from incremental growth funding. Funding will be tied to both the tax base and tax base growth. ® The new operating budget for this organization is estimated to be $6M, with partner municipalities providing $2.4M. The City would move from funding 90% of the operating budget of three entities to funding 55% of the budget for one entity. ® It is estimated that the potential annual savings would be $500K to $800K annually Cost optimization Revenue Debt reduction (annualized) generation (annualized) $500K - $800K In order to achieve the savings, it will require an equitable cost sharing and a $6M budget or under. ® Council approval from all participating municipalities ® Development of service level agreements for each municipality ® Agreement on shared funding model ® Have the full support of key external stakeholders, including ONB, ACOA and other critical partners ® While this regionalization model focuses solely on economic development, the process provides an opening to build a sense of trust and understanding of regionalization which could lead to future opportunities in other key areas, e.g., fire services, police services, etc. ® Increased efficiency and reduced duplication of efforts. ® Smaller municipalities that did not have any economic development activities will now have the opportunity to benefit from that service. ® Enhanced accountability and reporting to demonstrate results at the regional and City level. ® Standardized branding throughout the region. ® Aligned with the City's requirement to drive a material change in economic growth activities (and results) and people attraction. It will build the proper level of engagement required across the region to accelerate economic growth. ® It will implement a fair and equitable cost sharing model associated with future increases in economic development funding and initiatives. ® The future funding model will tie economic development and people attraction funding to the growth in tax base. ® It will allow the region to collectively leverage the assets and attributes of the region. ® Not engaging local service districts (LSDs) ® Conflicting priorities between municipalities e.g., desire to attract new residents ® Disruption to current agencies during the transition period could slow down progress and momentum ® Ensuring fair benefits and investments for each municipality ® Acceptance of governance model ® Acceptance of funding model Activity ► KPIs will be developed 2020 2021 2022 2023 ► The City of Saint John, as the preferred majority shareholder, will have additional rights ® There will be regional representation from each municipality 3.9 Fleet services ® The City of Saint John has a fleet of approximately 350 plus a variety of equipment, including emergency vehicles for fire and police. In addition to these, the City also operates a fleet of small or hand-held units and stationary pieces of equipment needed to support its many operational needs. ® Fleet services delivers maintenance and support to the City's fleet. It also guides the administration regarding policy development, process improvement, purchasing and tracking of fleet utilization, and costs. ® The implementation of new systems and policies has enabled real-time transparency and accountability and responsibility when using the City fleet. ® The City has tried unsuccessfully to purchase fleet components with other municipalities, as part of a tri -city initiative. However, the municipalities were unable to come to a common agreement on specifications and the City continues fleet purchases on its own. ® A feasibility study was conducted in 2017 to assess opportunity for consolidating garages with transit, reducing costs, and increasing efficiencies. The large number of garages across the City results in higher operating and maintenance costs. The feasibility study looked at and assessed the potential options for garage consolidation. The findings of the 2017 study were not sufficient to validate the recommendations. A new study was initiated in 2019 called Relocation of Fleet Management from Rothesay Avenue. That report is still in review and finalization and an interim report has not been shared at this time. Expenditures from 2017-2019 $2,..700,000 $2,6501,010101 $2,60101,010101 $2,5501,010101 $2,50101,010101 2011.7 2011.8 2011.9 Expenditure: ® Expenditures for 2019 are $2.6M ® Expenditures for fleet services are shared among the different departments and service areas ® 98% of expenditures represent general fleet operations while 2% represent fleet pooled vehicles ® Local 18 wages make up 69% of overall fleet expenditures Note that the budget for fleet is embedded within other service areas. ® 1.1 FTEs are shared across service areas ® 1.6 FTEs in management positions ® 1.5 FTEs are part of the Local 486 ® 27.5 FTEs are part of the Local 18 ® Introduction of the ClearRisk, geotab, Automatic Vehicle Location ("AVL") systems, Commander Mobile and Commander Connect that track fleet utilization, location and costs ® Implementation of a fleet pooling system to reduce overall fleet costs ® Creating increased accountability with City workers and their use of the City fleet ® Expand and enhance the fleet pooling system into other departments and other types of vehicles. ® Increase purchasing power of fleet with collaborating with the provincial government. ® Consolidate with transit where possible to enhance utilization. Fleet services R et OIPti[Tlizatian and efficiency $250K - • Moderate $300K Ease of Requires 15 years implementation some change ® The new fleet services tracking systems create broad large opportunity to further optimize fleet services. ® Fredericton has successfully merged its transit and fleet garages together. ® Savings can be received through consolidating the annual replacement fleet with the Vehicle Management Agency operating for the province. ® City fleet maintenance activities carried out in older facilities could be moved to the newer, under-utilized transit garage. Expand the Current Fleet Optimization Initiative The goal of this project is to review and assess the City's vehicle utilization to target opportunities for elimination, consolidation and pooling of vehicles (where possible) to reduce overall fleet costs (including asset and/or rental costs). Below are the key opportunities: ® Fleet optimization 2.0 & 3.0 : Determine the right size of fleet and reduce where possible, e.g., SJW, share and pool vehicles and work towards standardizing vehicle specifications (items to be presented February 24, 2020 to Council) ® Extend reach of light vehicle pooling (under 1.5 tons) to other departments, e.g., pick-up trucks to public works. ® Introduce medium and heavy vehicle pooling (over 1.5 tons). ® Seasonal rentals: Determine the optimal number of vehicles required for use by casual employees over the summer season (April till end of September) and determine whether alternatives exist to renting from an outside provider. ® Multi-purpose utilization of equipment — roll-on/roll-off vehicles, hitch -lift systems, multi -attachment review. Vehicle purchasing with the Vehicle Management Agency (VMA) for annual fleet replacement with VMA There is opportunity for the City to collaborate on City fleet purchasing with the province through VMA to reduce the annual cost of vehicle purchases. SNB has been requested to share VMA fleet data (vehicle, leasing costs, useful life, etc.) specifications with EY. Transit garage consolidation Adding to the feasibility assessment that is ongoing, there is opportunityfor optimizing maintenance staff and reducing existing building infrastructure and associated long-term operating maintenance costs through consolidation of the fleet and transit garages. ® The closure and sale of the North Depot facility would need to occur in order to relocate/consolidate similar fleet components with the transit garage. ® The collaboration would result in operations being under one roof for efficiency and cost effectiveness and better utilization of existing infrastructure. To justify the consolidation, the City must take into account revenue opportunities as well, not solely costs, such as the sale of the North Depot land and new tax revenue from the land. Fleet optimization 2.0 & 3.0: $250K - $300K Vehicle purchasing with VMA - TBD: ® Savings to be determined in collaboration with VMA Transit garage consolidation - TBD Relocating the fleet maintenance activities, except Adelaide, East, and West garages to the transit garage would not result in significant infrastructure savings based on our review. However, we believe that productivity and efficiency improvements from staff consolidation would create positive savings. In order to quantify those savings, maintenance data from transit is required. Therefore, it is recommended that maintenance staff working at the transit garage start reporting their wrench time on maintenance work orders in a Fleet Management System. We understand that a study is being completed to fully assess the opportunity and therefore, we did not include in this review. ® Approval from provincial government for collaboration with VMA ® Transit Commission would merge with the City of Saint John ® A real-estate developer interested in sanitizing and short-term development of the North Depot is found ® The North Depot lots are developed quickly so as to maximize real-estate tax revenue to the City ® Change in labour agreement to enable collaboration of fleet and transit maintenance workers ® Enhanced accountability and productivity with City workers ® Improved utilization of the City fleet ® Increased purchasing power ® City fleet maintenance personnel would work in an enhanced environment at the transit garage ® Collocation of the City fleet and transit maintenance activities in a single facility opens the door to capturing subsequently operational synergies in terms of cost and service level to users ® Rehabilitation of the four North Depot lots as a housing development might indirectly increase the value of the adjacent apartment building and other residential housing across Boars Head Road Debt reduction Cost optimization Revenue generation (annualized) (annualized) $250K -$300K ® The consolidation perimeter would yield less attractive cash flows if the merger with transit were to fail ® Without an investor to buy and develop the four North Depot lots, the case lacks financial upside ® Financial benefits will depend significantly on how and how fast the North Depot lots are developed ® Reporting of wrench time on maintenance work would Activity 2020 2021 2022 2023 2024 be required to assess the full opportunity itinue and® Assuming there is demand for the lots iance fleet® City fleet and transit are merged as a single financial �imizationentity* ivities ® No cleanup/sanitization costs at the Rothesay Avenue facility* Proval from ® No upfit cost associated with the move from the North A to share Depot to the Rothesay Avenue Facility 3.10 Public works and recreation ® Transportation and Environment services supports the community in achieving its long-term vision and goal of creating a green, attractive City where people can get around safely and easily. Transportation and Environment services provide convenient and efficient modes of transportation and protect the environment through the maintenance of parks and public spaces. ® Transportation and Environment services consists of four key areas; public works, engineering, recreation, and transportation (City Transit) - the scope of this review did not include the City Transit program. ® Activities in scope included; roadway maintenance services, side walk maintenance services, storm water management, solid waste collection and parks and recreation ® The 2020 budget for public works is over $25M, with the highest percent of spend, 55%, allocated to roadway maintenance and service (—$14M). ® Currently, divisions work in silos and there is limited sharing of resources and/or equipment. There is duplication in transportation efforts, loss of productivity and an oversupplied inventory of equipment experiencing low volume usage. ® Performance tracking and productivity measurement is challenging as foremen are part of the same collective agreement and the tools available to management are limited. 3&0 Based 2017,2018 actuals and 2019 budgeted 37.17 23% 36.0 35.E 20.17 20.18 20.19 Percent of overall City budget ® The 2019 transportation and environment budget (excluding transit)was $37M, 23% of the total City budget. Three-year budget ® The budget for public works and recreation has increased by $3M over three years ® The road maintenance and service division accounts for 37% of the budget, estimated at $14M for 2019, and is the primary contributing factor to the overall budget increase Approximately $2M of the budget increase is due to the increase in "capital from operating". The amount of borrowing to support the yearly road resurfacing program has decreased accordingly. This trend of reducing the amount of borrowing for recurring, predictable asset renewal will continue in the future, and is aligned with the long-term financial plan for the City. There are approximately 218 FTEs within the Transportation and Environment Services, including management, professional staff, inside and outside worker (excluding transit). The majority of this group are members of the Canadian Union of Public Employees, Local 18 (Outside Workers). ® Sharing of resources from Engineering division with water utility ® Performance improvement initiatives underway to address City deficit, e.g., solid waste modernization ® Strong leadership and management team working together to improve operations and gain efficiencies and knowledge ® Winter workforce reduction ® Winter maintenance program ® Waste management modernization Transportation and environment IPUNic warksEfficiency and Warkfarce $4.2M+ Moderate Ease of Requires 3-4 years implementation significant change ® Over the last five years, 276 working days have been lost in the Solid Waste Management Program due to injury on the job, and there is a constant loss in productive man hours due to daily physical constraints. The City pays approximately $1.3M/annually in tipping fees for waste disposal and there is no curbside recycling program in place. ® The winter road maintenance program does not have a complete complement of staff during the night shift resulting in equipment sitting idle. The City currently has an inventory of 53 pieces of equipment for snow removal and the night shift is not manned to operate available equipment. By balancing the night and day shift complement, fleet size can be reduced by three and overtime can be reduced. ® There are periods of time throughout the year when public works are over and understaffed. Flexibility in collective agreements could see a reduction in the winter work force that aligns with needs. Having additional crew on when demand is not there results in foreman doubling up on crew to keep workers on job sites when they are not needed. ® The City employs up to 70 casual employees during the summer months as part of their parks and recreation crews. The maintenance of park and recreation infrastructure is costly, and participation in many services is low. As the City looks to become more sustainable, it must be considered where parks and recreation services are located, how they are managed and the workforce level required. ® The City manages a large number of fleet that are used to provide operational services across a broad landscape. A considerable amount of time is spent travelling from site to site as oppose to time spent on value added activities. There is a desire to collaborate on the use of vehicles, with more multifunctional use vehicles being purchased (as covered under the fleet business case) however, there is still an opportunity to look at routes travelled, idle time and other non -value-added activities. ® Foreman and sub- foreman are part of the same collective agreement as the skilled workers they supervise. This makes it challenging for management to have a clear line of sight on performance management issues and productivity. There are instances of poor performance not being managed, additional crew members per job and unnecessary overtime. Solid waste management The modernization of the City's Solid Waste Service will allow the City to move to an automated cart pick up service for regular household refuse, provide curbside recycling and bag tags for excess refuse. By moving to an automated pick up service, the City will be protecting the health and safety of their employees by limiting the manual material handling of household refuse. Adding curbside recycling and bag tags will encourage waste diversion and in turn reduce the overall cost of this service's tipping fees. The implementation of bag tags for any additional refuse outside of the aforementioned services will give citizens the ability to deal with the rare occasions when they may need to put out excess refuse. This initiative will reduce tipping fees with an estimated savings of $350k/year and generate revenue ($2 per bag), estimated at $550k/year. (total opportunity savings + revenue= $750 annually). Winter road maintenance ® The distribution of day shift and night shift workers is not balanced which contributes to overtime incurred bringing staff in to prepare for the morning traffic and wasted productivity of equipment as the night crew is not staffed to utilize existing equipment. By balancing the night and day shift compliment, the amount of overtime can be reduced (eliminating -$28k annually) and the number of fleet can also be reduced as there would no longer be access staff available on day shift to utilize all of the existing inventory. The current fleet could be reduced by 20% generating a one-time revenue for the City of approximately $180k and a decrease in annual operating costs of $303k. There are also two contracted loader routes that could be eliminated yielding an annual savings of $16k. This may have an impact on service levels, specifically when winter equipment is down, which occurs frequently, and on summer operations where multi -use vehicles are used. (total opportunity overtime cost avoidance + contracting costs + annual savings + one-time revenue = $520k). It is recommended that a snow -clearing re -design be completed that takes into account all service areas of the City where snow clearing activities occur (water services, sidewalk services, road clearing and recreational areas). Impact on service levels need to be assessed and the fleet to be removed need to be identified and appraised. Likewise, the spring and summer road maintenance program could likely see benefits gained through a continues improvement program. This would be reliant upon changes to collective agreements that would allow for broader span of control for supervisors/foreman, performance metrics and tools, and collaboration between fleet management and public works operational managers who currently assign daily work plans. Better scheduling and more collaboration across divisions could see a 20% savings by implementing continuance improvements and controls. Winter workforce reduction ® The current minimum numbers and no lay-off clauses (293, less 5% with no lay-off article) in the collective agreement significantly constrains the City to manage staffing levels appropriately and effectively. There are periods of time throughout the year when public works division is under and over staffed. Given the ability to effectively manage staffing levels through a call-in bases would provide the City with the opportunity to lay off staff during the winter months when the work is not there to justify the current staffing levels. This could see a possible reduction of 50% of the workforce for 4 months of the year - an anticipated savings of $1.2 million annually (57workers at $68,000/year laid off 4 months of the year). This is based on management's knowledge of demand and past experiences. A detailed analysis of work orders and work plans need to be completed to validate the numbers prior to management decisions being made. The Public Works division does not have an accurate way to manage or track productivity which inhibits the ability for informed decision making. Management relies on the information communicated through foreman who are also members of the same collective agreement, where there is a strong culture of protectionism. (total potential opportunity = $1.2M) Casual workforce reduction ® Reduce the casual workforce over the next two years by 25% while still maintaining service levels. This would see a reduction in casual staff for parks and recreation from -70 workers down to 52 and eliminate 22 summer positions. This would result in -468k annual operating savings. Improve travel time ® The City has implemented a ClearRisk geographical information system that tracks location and idle time by vehicle. With the new information and data available, there is an opportunity to complete an analysis on the shortest routes to travel, travel that is inconsistent with work plans, and to identify simultaneous routes to determine if there are opportunities for workers from different departments to commute together. Preliminary reviews of the data available indicate that additional travel may be occurring. A complete analysis of routes taken should be conducted to assess the situation and identify opportunities for efficiencies and cost savings. Transform the role of foreman ® There is an opportunity to remove foreman and sub -foreman from the collective agreement putting more rigour around performance management and productivity which would reduce the amount of overtime incurred (as was the case when supervisors were introduced under water), increase the span of control for foreman, which currently ranges from 1:2 to 1: 11 (sub -foreman to skilled workers), and improve productivity. Transform the role of foreman (cont.) ® It is recommended that superintendents replace foreman (contingent on change to collective agreement minimum numbers and based on opinions that foreman/sub-foreman do not need to be replaced under the existing collective agreement), and the number of foreman/sub-foreman is decreased by 10% (3 foreman/sub-foreman 0 $80k including benefits-$240k)(Admin has an estimated 6% reduction based on new mix, and water has 14% - 10% is conservative for Public works). This will require an increase span of control and a adjustments to the role of the sub -foreman who could take on more of the foreman responsibilities and leave performance management and scheduling to supervisors. Like wise, under Administrative Services, which are a sub group o the Transportation and Environment Services Division, by implementing a mix of superintendents and expanded roles of sub -foreman, there is a potential for an additional 3 FTE reduction (30$80,000 - $240,000). Total opportunity - $480k. ® Introducing superintendents (non -unionized) will improve productivity (as evident in water services) by at least 5% (including goods and services) yielding an annual savings of $719k. ® With tighter supervision and better productivity and performance management in place, it is estimated that overtime can be reduced by approximately 30% (based on results from water) ($346K overtime in 2019 excluding winter maintenance, parks and recreation)(30% of $346k = $103k). ® In addition, once foreman restructuring is in place, a productivity analysis should be completed to inform a lean staff structure. ® ($480 + $719 + $103 = $1.2M+) ® Modernizing waste side management program could see potential financial benefits of $750k (savings plus revenue). ® Winter Road Maintenance $520k (Totals prorated at 75% to account for expected increases on remaining equipment due to increased utilization) (20% of existing inventory) ® Winter Workforce Reduction $1.2M (52 positions over 4 months, equivalent to 17 FTEs) ® Casual Workforce Reduction $468k (eliminate 22 summer positions and reduce casual workforce by 18) ® Reduce travel time ® Transforming the role of foreman and increasing the span of control could yield a potential $1.2M in operational spend (3 FTEs) Debt reduction Cost optimization Revenue generation (annualized) (annualized) $180K $3.5M $550K Minimum numbers in collective agreements ® Ability to lay off staff when demand is low and have an option to call in ® Amendments to City bi-laws ® Public consultation for solid waste management program ® Council support ® Fewer workplace injuries ® Improve work moral ® Decrease carbon footprint by reducing the amount of household waste ® Provide citizens with common everyday services such as curbside recycling, improving the residential experience ® Improve public perception of public works Opportu ri ty Savun,f s (000'x) Waste Winter Road 'Winter Casual Trairrsforirrn Vlanaprnentl runtenance Workforce WorI(force Icrernarn RerfrucHort teduction flndes Public consultation required and consideration of tagging fees for additional garbage ® Push back from unions ® Public outcry for summer programs ® Annual salaries for Public Works workers are estimated Activity 20 21 22 23 at $68,000, including all associated benefits. ® Annual salaries for foreman/sub-foreman are estimated at $80,000, including all associated V waste benefits. ernization public Collective agreement restrictions regarding layoffs can _ :•- • •• • be removed - ,nnd solid waste Collective agreement restrictions around career paths ernization can be amended to be more flexible ® Management's ability to estimate work levels based on impactLrmine on past experience and knowledge of down time, non- ice levels man hours, and over staffing of crews. e I quipment_ ® Market value of equipment averaged at $15,000.00 3.11 Agencies, boards & commissions ® The City initiated a review of its agencies, boards and commissions (ABCs) in 2019 as part of the sustainability efforts. The scope of work included the identification of profiling each ABC, including documenting its inception, purpose and authority as well as funding envelopes. The review resulted in four categorizations guided by Chartwell: (1) regional commissions; (2) City commissions; (3) incorporated companies of the City; and (4) other affiliates (not owned by the City but rather have members appointed by the City to their board). Phase II of this work identified opportunities to explore changes that would improve the sustainability efforts of the City, reduce overlap and reinforce the City's growth agenda. ® A recommendation was already underway to explore consolidating the regional economic development activities (three commissions) under one regional entity (EDGSJ, Develop SJ, Discover SJ and Population Growth) intended to include the Census Metropolitan Area (CMA), and this opportunity is profiled under Regional Economic Development in our Report. ® A recommendation was also made as part of the review to reduce grants/partnerships for smaller projects. The City has also made strategic recommendations in respect of larger projects that need to be further refined and analyzed. EY supports the City's recommendations and has outlined key considerations below for those that were not included as part of other business case profiles, such as Aquatic Centre and TD Station (profiled under the Infrastructure business case). These asset opportunities may require further impact and market value assessments for asset divestment. The expected opportunity ranges are outlined as follows: ® Imperial Theatre - current funding $360K. EY is recommending that the City proceed with removing the theatre from the RFC legislation as part of the sustainability efforts to maintain core services for the City. Opportunity: $360K. ® Lord Beaverbrook - current funding $159K. EY is recommending that the City amend the Lord Beaverbrook Rink Trust and align the partnership similarly to other rinks and to ensure the rink is offering market fees to its users. Statistical profile I ® N/A ■ Regional Commissions Cily Commissions nc:orpc:>rated Enlilies & Companies U'Lher Affilia'Les ® Significant opportunities for strategic alignment and deficit reduction reside within the ABCs ® Eliminating Aquatic Centre deficit and re -imagining the Aquatic Centre asset ® TD Station financial sustainability ® Optimizing parking revenue ® Transit optimization ® Police commission efficiencies ® Lord Beaverbrook fee alignment ® Fair agreement with Trade and Convention Centre Agencies, boards & commissions C re f o F iir I $500K- • Moderate $650K Ease of Requires 1-2 years implementation some change ® With the City's current structural and financial challenges, the City is under tremendous pressure to improve efficiencies and align services/funding with strategic priorities and the City's ability to fund. The recommendations that the City has brought forward in respect of the smaller and larger projects be actioned and actioning necessary legislative amendments to support these changes. ® The City of Saint John has an opportunity to action significant opportunities presented to Council in relation to removing, consolidating and re -negotiating terms and funding requirements for various ABCs under the City's umbrella. The most material opportunities include TD Station, Market Square, Aquatic Centre, Lord Beaverbrook, and Imperial Theatre. An economic impact assessment should be performed along with a realignment to the City's mandate, strategic priorities and ability to fund. ® EY is recommending that investments in economic development activities be considered for retention, including enhanced governance models and reporting performance for projects such as public gardens and arts and culture, while funding envelopes for the Canada Games Foundation is recommended for realignment to another partners such as private sponsorship/not-for-profit organizations. This will enable investments with aligned strategic focus areas and priorities for the City: . ® Public Gardens (Horticultural Association) $40K ® Saint John Jeux Canada Games Foundation $17K ® Arts and culture $50K ® Imperial Theatre $360K, overall reduction in contribution /exploring partnership options ® Lord Beaverbrook $159K, amend trust and align market fees with other rinks with overall reduction in contribution ® Accountability framework should be implemented for all contributions for recreation and community partnerships as well as alignment with the City's capacity to contribute ® Total opportunity profiled for this business case ® Aligned services with the City's ability to pay, which (excluding shared services and infrastructure) include sets an important precedent for the City $500K -$650K: ® The opportunity of reducing grants has not been costed but there is a clear need to establish criteria/ alignment protocols in determining grant funding. Reporting measures and performance should be a requirement for all grant funds ® The grant funding model should be tier -based with clear criteria, avoiding traditional and historical funding as a basis for funding Debt reduction Cost optimization Revenue generation (annualized) (annualized) $500K -$650K ® Legislative amendments will be required to action ® Negative public reaction with advocacy claims to some opportunities profiled politicians to re -instate funding/services ® Partnerships will need to be explored for the Imperial Theatre ® The noted opportunities within this profile opportunity ® Grants will be covered under a separate area could occur within 12 months. ► Trade and Convention centre is not considered an ABC but a city asset ® Aquatic Centre and TD Station are profiled under the Infrastructure business case ® Shared services opportunity for parking, transit and police is profiled under a separate business case. Data Sources: ® Service budgets ® 2020 Budget, 2019 actual financials ® Review of City ABCs, November 18, 2019 document ® Committee of the Whole Report of ABCs, November 18, 2019 4.0 Sustainability enablers The following enablers have been identified as core drivers of sustainability opportunities for the City of Saint John and are foundational to future sustainability. It should be noted that some of these enablers require partnership and support from the Provincial Government. • Labour relations Performance management & 0 accountability • Governance & • structure Tax reform Regional . �;��. collaboration ••\I'• Culture 0 Sustainability enablers .1.. II...... abOLUF rdatians The City of Saint John currently has four collective agreements that govern the working conditions and environments of various employee groups employed by the City. Currently, two of the four collective agreements are in negotiations with the City (#2 and #3 above, Local 18 and No. 771). Local 486 expires December 2021 and the working agreement for the police expired December 2019. This enables the City with a timely opportunity to negotiate terms that are more aligned with the current objectives of the City of Saint John and its citizens. We learned through our fieldwork that the City of Saint John's union professionals are extremely valued by Council, city management and staff. We also learned that there are significant constraints and barriers held within all collective agreements that inhibit the city's path towards sustainability. Under the New Brunswick Industrial Relations Act, firefighters and police officers cannot go on strike and, instead, binding arbitration is used when collective bargaining is unsuccessful. Three unintended consequences have resulted in respect of the binding arbitration process. Historically, a cohesive, long-term, strategic approach to collective agreement negotiations has not been observed. Instead, management has focused on short-term goals in each round of negotiation. There is desire/action taken by management to develop a comprehensive labour relations strategy that encompass the plan, principles and roadmap for all collective agreements, aligning towards long-term sustainability for the City as well as transparency for citizens. To lead labour negotiations currently in motion, management has compiled a diverse team to manage negotiation however given the magnitude of changes and complexity, additional expertise is recommended, including a labour relations lawyer and financial expertise. The IAFF, as an example, deploys a consistent resource that understand a depth of the challenges and risks across the country, which enable a much stronger knowledge and negotiation skillset to compliment the negotiation efforts. Financial expertise responsible for quickly understanding and translating articles and decisions to financial impacts is also a necessary resource to support the team. Additional information, current state analysis, key recommendations and considerations pertaining to constraining collective agreements can be found in Appendix F. Sustainability enablers .1.. II...... abOLUF rdatians In summary, EY has the following key recommendations: Binding arbitration: ® It is recommended that the City fully document its recommended criteria which the legislation should include for assessing ability -to -pay, and work collaboratively with the province to co -develop and implement the changes. ® Given the active nature of negotiations at present and the in -progress legislative process around ability -to -pay, the City should consider entering into a shorter -term agreement, if needed, to avoid an ability -to -pay clause not being legislated prior to the close of collective bargaining. The risk to be avoided is being in an arbitration process before an ability -to -pay clause is legally formalized. Examination of the labour relations environment: ® To further enhance the understanding of the labour landscape, we recommend the City fully examine the landscape, considering both a SWOT and a PEST (political, economic, socio -cultural and technological) analysis to support each set of negotiations. It is important that the negotiating team have a full understanding of the landscape and avoid the temptation to presume awareness. Negotiation approach & strengthening the bargaining team: ® Develop a comprehensive labour relations strategy including the Identification of all constraining and limiting, or risk inherent articles in the collective agreements (please • refer to Appendix F for a detailed listing of constraining article which also includes a space to be used to perform a ranking/scoring for risk and impact) and fully cost all constraints identified within the finance and service areas. Additionally, it is essential that the negotiating team conduct a comprehensive review of wages in other jurisdictions outside of the province to compare its ability to pay, including per capita costs of all services and benchmarks as comparison. Using local jurisdictions exclusively for comparison is not adequate. The common counter argument is that protective services were significantly underpaid for an extended period of time and needed to catch up; however, this argument is no longer relevant. ® The City would benefit from strengthening the negotiating team in some areas. It is recommended that an independent evaluation of the negotiating teams be conducted to critically assess and understand skill gaps. Performing this assessment will enable gap closure and build bench strength and transfer critical knowledge or enhance negotiating strategies and bolster the team during this critical time. ® EY also strongly advises the City to include a labour lawyer on their negotiating team. ® Additionally, the Human Resources team should inventory and pull together significant arbitration decisions that have impacted collective agreements not only in New Brunswick but in multiple jurisdictions to support the team. Long-term actions of management/the union, as well as any decisions, should be fully considered to understand the terms and practices of the collective agreement. Sustainability enablers 4.2 1... lire f o F iir I Municipal revenues are collected and distributed by the provincial government, while municipalities set the tax rate. At present, of City of Saint John revenues, 78% come from property tax, resulting in a heavy reliance on taxes to support services. The city's structural deficit is partially rooted in the shrinking tax base. While the City has experienced low growth rates, it is struggling to grow at a pace that covers its growth in wages. Strong advocacy for provincial tax reform has been in motion for years and the province of New Brunswick has committed to performing a property tax review, tabled for next fiscal year 2021/22. The city's goal is to realize sustainable services for the region, population growth and retention, and greater benefits for citizens. The City has the highest provincial property tax rate in New Brunswick and is 40 cents higher than neighbouring cities'. These realities have triggered a compelling need for an evaluation of tax practices, laws and policies. This review may reveal potential changes to legislation that will enable the city's growth and revenue generation opportunities. Some of the key issues that will be addressed through this property tax review include: ® Determining a fair proportionate share between municipalities and the provincial government ® Flexibility in differential property tax rates (residential, commercial and industrial) ® Tax exemptions 4 ® Property assessment practices © EY's review did not include a tax reform review or an evaluation of property tax practices and rules. This review is scheduled and will be performed by the provincial government in 2021. In summary, EY has the following key recommendations: ® In preparation for the provincial review, the City should formally prepare its current state assessment of all the key issues above and outline the contributing factors that inhibit city growth and economic prosperity for government's consideration. Sustainability enablers 4.3 I&F f F i[Ti ne lire iir e i[Ti i n t and aCCOLUntabflity During our review of the city's operations, it was noted that management does not have the tools or processes to measure workers' productivity. This was apparent when assessing the staff complement for outside workers and their volume of work. There were many instances shared of crews being overstaffed and work orders being closed without work being complete. Management relies on site supervisors/foremen to ensure crews are staffed appropriately and that work is completed efficiently and accurately in the time reported. The effectiveness and accuracy of this system is hampered by three factors; ]... The minimum number of workers prescribed by the collective agreement and the no lay-off clause prohibits the City from manning appropriately throughout the year. Additional crew are often placed on jobs during the winter months to allocate staff when, in fact, they are not needed. 2. Foremen are members of the same collective agreement as the workers they supervise. There is a strong culture of protectionism and brotherhood among union members; very rarely, if ever, will issues regarding productivity be raised with management 3. Career advancement is based on seniority rather than work performance and skill matching. Collective agreements make it challenging for management to dissuade the use of overtime as it is a long-standing practice and a traditional source of income for members and is currently being used inconsistently with its intent. There is a need to clearly ® understand how much is being spent on overtime each year, where there are areas for improvement/adjustments, and use that information to adjust the workforce and o scheduling practices. This information could also aid in collaborating on opportunities to increase flexibility within collective agreements to benefit both members and the city's sustainability efforts. EY did not observe a robust set of accountability measures governing the grant process for the city's funding of outside entities. Rigorous reporting and performance indicators should be implemented to ensure that the City is allocating funds towards mandates that align with city priorities. The granting process has been largely guided by historical practices to provide contributions, and stronger criteria and accountability measures need to be implemented to track outcomes. In summary, EY has the following key recommendations: ® Significantly reduce the minimum number requirement in the collective agreements. ® Implement a rigorous accountability program and funding criteria to guide the granting process to external organizations. This will ensure that the City is allocating funds towards mandates that align with city priorities. ® Remove foremen from the collective agreement so that they may act independently and subjectively. This will be in line with other jurisdictions, such as Fredericton, foremen are not part of the same collective agreement as the workers they supervise. Sustainability enablers While the concept is widely accepted by some as a viable opportunity for such a small regional population, implementing regionalization has encountered many debates and particular difficulty in establishing a funding model that is considered fair. During our review, several key service areas were identified for regional collaboration; these options could enable delivery of higher quality services that benefit both the region, and citizens. The Greater Saint John area relies heavily on the City of Saint John to provide employment, services, entertainment and recreation opportunities to the surrounding areas. Currently, the City has invested in blueprinting the concept of regional economic development with the greater census metropolitan area. A regional approach to promoting the area and providing services would enable a reduction in duplicated administrative functions, and a focused approach to serving and promoting the region to enhance tourism and grow and retain the population. Other opportunities include police and fire services, and the water utility, to name a few. The proximity of the surrounding municipalities to the City of Saint John and the close connection the residents of those municipalities have with the City make the Saint John region a prime candidate for regionalized services. Other jurisdictions have successfully implemented regionalization, and on a much larger scale. There is unique opportunity here and the ability to be agile and responsive given the region's small population. It simply does not make sense to continue a territorial governance model with such small municipalities, when the alternative would improve services, lower risks for citizens, and reduce costs. moll In summary, EY has the following key recommendations: • \\ I/ • • ® Continue the path set to establish a single regional economic development entity for the broader CMA. ® Engage with the province to foster regional collaboration for specific services. ® Explore other regional opportunities with neighbouring communities; namely, fire, waste, water treatment and police services. Sustainability enablers The City has historically operated in a service by service organizational structure. Most recently, the City engaged in a planning exercise to better align the organizational workforce to optimize its resources. Technology services, payroll and human resources are examples of these. Further opportunities exist to consolidate leadership and services that are currently governed by ABC structures. As an example, Transit is currently undergoing a review to determine the optimization opportunities it could explore, including amendments to legislation and removing its commission status. The city's organizational structure and governance model requires realignment to alleviate the following challenges: ® Duplication of effort and work across all entities/ABCs ® Tri -city procurement practices are inconsistent and optional for entities to participate in ® Lack of a formal contract management process(no evidence within the city's procurement policy) ® Bureaucratic practices that include the requirement of Council approval for items that are already approved by Council through the budgeting process ® Span of control limitations • In summary, EY has the following key recommendations: ® Once the city has refreshed its strategic plan and prioritized its sustainability • initiatives, it will need to align its organizational structure and governance to align and support the plan. The recommendations to enhance governance and structure span across all city entities to determine opportunities for long-term efficiencies. Sustainability enablers The City currently employees 628 workers; 85% are part of unionized agreements. There is a strong historical unionized workforce in Saint John built on a culture of member trust and loyalty. The culture of trust among union members is admirable and has enabled members over time to enhance working conditions. On the other hand, it has contributed to an us versus them approach which can hinder working relationships and cause tension between front- line workers and management, or ultimately result in low productivity and engagement. In the case of the City of Saint John, the collective agreement articles are heavily protected and, as such, have inhibited the City and the unions from enabling a modernization that aligns with the current environment. Management, in the past, has made decisions in silos, based on previous experience or practices. The current environment demands a more evidence -based decision-making approach, long-term planning, and policies and procedures that are not rooted in an exceptions approach (80/20 rule). The City is facing a serious structural deficit with limited reserves in place, forcing some decisions to be made based on what -if scenarios and creating a culture that is risk averse. These behaviours are driven in part because of the city's financial position and lack of reserves. The city's special pension liability has further strained the City beyond its capacity to maintain. Culturally, the behavioursthat will enable the city's future must be embedded by leadership and that will involve challenging the status quo at every turn. It will require bold decisions that will condemn and challenge current behaviours and practices over the long term. It must be recognized that cultural change is difficult and takes time. In summary, EY has the following key recommendations: ® As part of the strategic refresh, as well as the organizational and governance structural alignment, the City must also include culture and change management as a foundational part of the transformational plan. Specifically, the City should identify the behaviours that currently impede its sustainability path and identify those it wants to permeate the organization to support change and a culture of continuous improvement. ® Leadership training and a roadmap to shift culture should be adopted to successfully execute on the sustainability plan. Summary of sustainability enablers ® Document recommended criteria which the legislation should include ® Enter into a shorter -term agreement if needed to avoid the ability -to -pay clause not being enacted ' ' ® Examine the landscape, to support each set of negotiations ® Develop a comprehensive labour relations strategy ® Conduct an independent evaluation of the negotiating teams ® Include a labour lawyer on the negotiating team 4.1 Labour relations ► Inventory and pull together significant arbitration decisions that have impacted collective agreements ® Formally prepare current state assessment of all the key issues above and outline the contributing factors that inhibit city growth and economic prosperity for government's consideration 4.2 Tax reform ® Establish a single regional economic development entity for the broader CMA • ��►� • ® Explore other regional opportunities with neighbouring communities; namely, fire, waste, water treatment and police services 4.4 Regional collaboration ® Align organizational structure and governance to align and support the strategic plan ® The recommendations to enhance governance and structure span across all city entities to determine opportunities for long-term efficiencies 4.5 Governance & structure ® Include culture and change management as a foundational part of the transformational plan ® Identify the behaviours that currently impede its sustainability path ® Identify those that it wants to permeate the organization to support change and a culture of continuous improvement ® Adopt leadership training and a roadmap to shift culture to successfully execute on 4.6 Culture the sustainability plan ® Significantly reduce the minimum number requirement in the collective agreements ® Implement a rigorous accountability program and funding criteria to guide the o granting process to external organizations. ® Remove foremen from the collective agreement so that they may act independently and subjectively. This will be in line with other jurisdictions, such as Fredericton, 4.3 Performance foremen are not part of the same collective agreement as the workers they supervise. management and accountability ® Establish a single regional economic development entity for the broader CMA • ��►� • ® Explore other regional opportunities with neighbouring communities; namely, fire, waste, water treatment and police services 4.4 Regional collaboration ® Align organizational structure and governance to align and support the strategic plan ® The recommendations to enhance governance and structure span across all city entities to determine opportunities for long-term efficiencies 4.5 Governance & structure ® Include culture and change management as a foundational part of the transformational plan ® Identify the behaviours that currently impede its sustainability path ® Identify those that it wants to permeate the organization to support change and a culture of continuous improvement ® Adopt leadership training and a roadmap to shift culture to successfully execute on 4.6 Culture the sustainability plan Years Y1 Y2 Y3 Y4 Y5 Eliminate 16 - 20 FTEs (close station 8) Staff one unit in station 1 (dedicated driver for tankers) Enhance medical response model Execute remaining FTE reduction Negotiate changes to civilization in collective bargaining Implement rostering and changes to shift duration Negotiate partnerships with RCMP on cost sharing and procurement consolidation Propose legislative changes Implement energy rate escalation and declare first dividend Conduct operational/utilization assessments Implement operational and utilization improvements Property appraisals Divest municipal buildings where possible Continued improvements & divestures Conduct property appraisals Divest were possible Continue divestures Implement shared services Define & Implement benefits tracking Conduct spend and contract analysis Develop sourcing strategies Execute sourcing and non -sourcing opportunities Develop and implement contract management process See individual business cases for more details Years Y1 Y2 Y3 Y4 Y5 111,11110,XW11,11M111111 ON Streamline and optimize workforce through staff reductions and reporting restructuring Conduct opportunity assessment to serve other municipalities Continue implementing cost reduction and revenue generation initiatives 11 Assess metering solutions Receive final approvals Transition to new organization III Fully implement new organization III Develop strategic growth goals and KPIs Continue and enhance fleet optimization activities Share vehicle purchasing with VMA Confirm decisions by City and Transit of the merger and move Uplift transit garage and move fleet activities from Rothesay Avenue Move North Depot activities to Rothesay Avenue facility. Sell 4 lots Develop four lots into apartment/residential housing and sell/rent Solid waste modernization public engagement and pilot project Winter road maintenance Winter workforce reduction Casual workforce reduction Improve Travel time Transform the role of foreman Removing, consolidating and ONEEMOMMINEM re -negotiating terms and funding requirement See individual business cases for more details 6.1 Revenue diversification The City has identified several areas where it is diversifying opportunities for additional and increased revenues. In 2019, enabling legislation by the province of New Brunswick provided authority to permit municipalities to establish and collect a Tourism Accommodation Levy. Starting January 1, 2020, the accommodation levy by-law in Saint John will add a further 3.5% to the price of accommodations. This change will enable a $1.4M revenue opportunity for the City. The City has also created additional areas of cost recoveries for police and fire services, such as charging industry for fire suppression training and charging for security at public events. Where possible, the City has improved rental agreements and optimized market rental opportunities. There is still work to be done in this area and the City has identified the targeted agreements that require realignment. The City is also considering enhancements to parking rates and additional levies for vehicles that do not have Saint John permits. The sale of unused land for the purpose of economic development and growth in the tax base is also being explored as part of the sustainability efforts. Two other areas that have been identified include Saint John Energy and Saint John Water. These opportunities require legislative changes, in language or interpretation, to enable a flow of surpluses/dividends back to the city's operational budget. Tax reform is a significant opportunity: this assessment is planned for 2021 by the province and will tackle key questions that include the fair proportionate share of property tax to be allocated between the province and the municipality as well as industry rates, exemptions and assessment practices. 6.2 Spending authority Current state Currently, there are significant levels of approval involved in the city's procurement process. Regardless of whether an item or service has been approved in the budget, it must still go through Council for approval and be signed by the mayor and the common clerk. These processes and spending limits are based on provincial legislation and have an impact on the ability of city executives to efficiently drive operations and initiatives on behalf of the City. A. Signing authority Approve by Council: All contracts the City enters into are required to go to common Council for approval, regardless of the value. Signed by mayor and common clerk: The only city staff with the authority to bind the City to a contract are the mayor and the common clerk. Spending authority Amount: The City manager has the authority to approve all expenditures up to a value of $75K, in accordance with the application of this policy and upon the identification of funds in Council - approved budgets. Process: Only the City manager can approve expenditures, and any expenditure which exceeds the above limit or for which funds are not available in the budget, requires common Council approval. High-level jurisdictional findings The procurement processes and spending authority were explored across several municipalities. It was found that many municipalities have high spending and shared signing authority to help drive efficient operations and service delivery through timely expenditures and awarding of contracts. However, it is important to note that spending authority differs by individual municipalities and their needs. There are many municipalities where spending authority is relatively low, e.g., The Greater Toronto Area. Common highlights from jurisdictional findings include: Shared signing authority for City managers, directors, managers and delegates (e.g., Ottawa and Halifax) Increased spending limits for City managers, directors, managers and delegates (e.g., Ottawa and Halifax) Transparent reporting to the public and Council on expenditures and awarding of contracts Special/specific types of contracts still go to Council for approval Recommendations EY recommends the following changes be brought to Council for approval once the City has confirmed through legal opinion any legislative changes required and after a contract management system is in place that would support quarterly reporting requirements: Increase in spending authority for the City manager to $500K to be in line with Moncton (for pre - approved budget items). Expansion of spending authority, to include directors with an amount of $100K and approved delegates, with an amount of $50K (for pre -approved budget items). Expansion of the signing authority beyond the mayor to include the City manager, directors and approved delegates for pre -approved budget items. Legal review would still be required. All non -budgeted items continue to go to Council for approval. Note that legislative changes would be required to expand signing authority beyond the mayor and common clerk. 6.2.1 Spending authority: overview of jurisdictional findings Ottawa Directors have responsibility for procurement activities within their service area and branches and are accountable for achieving the specific objectives of the procurement project. Directors have the authority to award contracts in the circumstances specified in this by-law. The director or supply services on behalf of the concerned director may award a contract of $500K or less . Awards emanating from a request for proposal require general manager approval where greater than $500K. Non-competitive awards require general manager and Supply Services approval where greater than $100K. Where a formal agreement is required, as a result of the award of a contract by delegated authority, the director shall execute the agreement in the name of the City of Ottawa. The Chief Procurement Officer shall submit to Council an information report semi-annually containing the details relevant to the exercise of delegated authority for all contracts awarded by directors exceeding $25K and Supply Services shall certify in the report that the awards are in compliance with the purchasing by-law. Where authority is delegated to a specific staff member in this by-law, the authority may further be delegated to staff members within the applicable department as outlined in the city's organizational chart, or to Supply Services, provided that such delegation is authorized in writing and does not exceed the authority delegated by this by-law to the authorized person. Sub -delegation of authority will be limited to two reporting levels below the authorized person and cannot be further delegated. Despite any other provision of this by-law, the following contracts are subject to Council approval: (a) any contract requiring approval from the Ontario Municipal Board; (b) any contract prescribed by statute to be made by Council; (c) where the cost amount proposed for acceptance is higher than the Council - approved branch estimates and the necessary adjustments cannot be made; (d) where the revenue amount proposed for acceptance is lower than the Council approved branch estimates; (e) where a major irregularity precludes the award of a tender to the supplier submitting the lowest responsive bid (2010- 291); (f) where authority to approve has not been expressly delegated (2010-291); and, (g) where a contract is a result of a public private partnership ("P3") opportunity (2010-291). https://ottawa.ca/en/living-ottawa/laws-licences-and-permits/laws/law-z/procurement-law-no-50-2000 City of Hamilton Council must approve budgetary funding for any procurement of a value of $250K or greater. City manager must approve any procurement of a value of $100K up to but not including $250K. The city manager may sub -delegate such approval authority to their staff, who are referred to as an authorized delegate in the table below, at the procurement values they deem appropriate. All authorized delegates will complete the Notification of Signing Authority Form, which shall not be effective until approved and executed by the general manager or city manager. https://www. ha mi lton.ca/sites/defau It/f iles/media/browser/2017-04-13/procurement-policy- bylaw17064.pdf 6.2.1 Spending authority: overview of jurisdictional findings Halifax The Chief Administrative Officer (CAO) has signing authority for any contract on behalf of the city. The procurement manger can sign any contract where the vendor is bound to the municipality's standard terms and conditions. Directors can sign any contract where the award has been approved by the director or by an employee in the director's business unit. Managers can sign any contract per delegation of authority from their director. The CAO as the authority to award contracts up to $1.25M . Only expenditures over $1.25M must go to Council for approval. The CAO as the authority to approve any expenditure amounts that are exempt from the application of this administrative order. Directors have the authority to approve up to $100K. Managers have the authority to approve up to $50K. "Changes in limits are based on a jurisdictional scan and an analysis of publicly tendered purchases for 2015/16. The changes in limits will allow the Municipality to seek administrative efficiencies for the approval of contracts between $500,000 and $1,250,000. Under the current policy, all awards over $500,000 require Council approval, despite the fact that Council has pre -approved budgets and the municipality's limited ability to award to tender contracts other than to the low bidder. Providing conditional authority to directors reflects similar practice to the province of Nova Scotia and other jurisdictions, recognizes Council's budget approval process, and could allow paving, sidewalk and other time sensitive tenders to be approved for award. https://www.ha lifax.ca/sites/default/files/documents/city-ha ll/regiona l-Council/170704rc4l i.pdf Tyler City, TX The Tyler City Council has given its staff more authority to approve spending items, passing a new ordinance. The action means that city law requires fewer contracts to go before city Council for approval at its regular meetings. The ordinance increases spending authority for the city manager from $25K to $50K; for the city's key leaders from $10K to $25K; and for the city's department leaders from $5K to $10K. https://tylerpaper.com/news/local/tyler-city-Council-gives-staff-increased-spending- authority/article_72448b98-7lc3-1leg-b644-232539f48928.html Charlotte, NC Charlotte city Council will soon vote on a resolution that is recommending giving the city manager the authority to award contracts up to $500K without obtaining consent from Council. Currently, the city manager has delegated authority for up to $100K. https://www.charlotteobserver.com/news/local/article223212020.htmi 6.3 Shared services The City has explored a shared services model for IT services; however, there are opportunities to expand this portfolio to include other services that are common across various divisions/departments. Additional efficiencies may be obtained by expanding the purview of shared services to ABCs, as noted in the ABC review conducted by the City in November 2019. The City may consider moving common services (e.g., finance, HR, IT, etc.) to a shared services model to optimize the workforce and reduce duplication of efforts across the City. Consolidation of resources could improve interaction, communication, and responsiveness while providing a single corporate -wide view to support decision making instead of operating in silos. Some of the non-financial benefits of a shared service model include: Operational efficiencies, by reducing duplication and allowing for faster decision making Improved quality and reduced turnaround time for activities and processes due to removal of bottlenecks Consistent and uniform approach to collective bargaining across the City and its ABCs, allowing greater control of labour costs Optimization of existing resources (e.g., IT) and implementing a common governance structure for all assets and infrastructure 6.4 Grants In 2020 the City of Saint John budgeted over $750K in grants for community events, programs and neighbourhood activities. When funds are provided to third -party organizations to deliver community-based services, there is no mechanism in place to measure the effectiveness of such programs. The City should consider implementing a policy giving the ability to audit and measure the impact of grant funding. This would provide the City with the tools to track how and when funds are being spent as well as the successfulness of programs/events. Having this baseline in place would provide the City with information to make informed decisions on where to spend public funds to have the greatest community impact. 6.5 Transit The Saint John Transit Commission plays a critical role in supporting the citizens of the City of Saint John, especially those living in priority neighbourhoods. In a previous review of the 2016 Census, EY found that Saint John has six census tracts where the percentage of the population living in a low-income bracket exceeds 38.0% (Moncton - has one), and ten census tracts where the percentage is between 23.7% and 37.9% (Moncton - has five). For comparison, the national average in the 2016 Census was 14.2%. The Central Peninsula has a high concentration of low-income families, and children living in poverty is also over 30%. Service is also provided to low-density and rural settlement areas within the municipal boundaries. As a result, reported ridership is approximately 50% higher than the average for Canadian cities with a population between 50,000 and 150,000 (at approximately 2.1M passengers per year). Since 2010, ridership has declined 21%, while operating costs have not dropped at the same rate as the service level (therefore, the hourly cost to operate the service has increased). The municipality has been proactive, working on a new strategic plan called Move SJ. Additionally, the subsidy provided to Saint John Transit is facing a significant targeted cut of $2M out of $5.63M (36%) due to the City facing a budget shortfall. In fall 2019, the City solicited the services of a third party to conduct an operational audit of Saint John Transit's service offering and operations. This included the identification of support processes and procedures to ensure the successful implementation of proposed changes (before November30, 2020) to maintain/or improve service levels for citizens of Saint John, and specifically Transit passengers. The goal is to maintain and/or improve service offerings, while receiving up to $2M less in City subsidies for Transit operations. It is anticipated that the outcome of this study will be available in the fall of 2020. Benchmarking analysis As part of the operational review, a benchmarking assessment was conducted to compare how Saint John is performing against other Canadian cities. It is recognized that Saint John is a unique city; therefore, Canadian municipalities that shared the most similar qualities were selected as comparable municipalities for this assessment. The jurisdictions selected included the following: Halifax, Thunder Bay, Sudbury and Regina. Characteristic Population Households 34,070 430,512 195,529 161,531 75,612 107,909 234,177 95,194 Geographic area 3,509 5,927 3,625 2,556 4,324 (sq. km) Total budgeted 828 4,366.90 2,546.00 2,365 2,836.40 FTEs Municipal 175,194,925 976,736,401 611,406,751 540,245,680 594,141,996 expenses Municipal 52,858,226 374,576,181 297,070,673 2,652,936,915 257,978,872 purchases While Saint John has a smaller population, the four municipalities chosen are similar in size and share common characteristics in other areas such as a strong working class base, similar key industries, infrastructure risks and common economic challenges such as a shrinking tax base, ageing population and poverty. Rational for selection of comparable municipalities Halifax Regional Factors Municipality City of Greater Sudbury City of Thunder Bay City of Regina Halifax has a population Sudbury, with a population Thunder Bay has a Regina has a population of of 430,512, which of 107,909, has the lowest population of 234,177 and 161,531. The city is one of the includes the entire population of the cities is also relatively dense, with lowest included in the 2018 Halifax Regional included in the 2018 MBN a population density of MBN report. However, Regina Municipality. Halifax report. The city has a low 330.1 persons per km2. has a very dense population has a dense population population density of with 1,327 persons per km2. of 71 persons per km2. 47.1 persons per km2. The geographic area of The geographic region of The geographic region of The geographic region of Halifax is large at Sudbury is the largest in Thunder Bay is relatively Regina is 3,625.00 km2. While 5,927.54 km2. The city Ontario with 328.24 km2. small at 182.43 km2. Regina is flat, there is an is situated in the Sudbury is surrounded by Thunder Bay is situated on abundance of parkland and southern region of bodies of water and Lake Superior and borders greenspace. Similarly to Saint Nova Scotia and acts as wilderness. Additionally, the State of Minnesota and John, Regina is separated into the main port of entry Sudbury is prone to snow- is surrounded by rocks, key neighbourhoods. The for the province. Halifax covered, harsh winters. lakes and forests. majority of its residents live in borders New Brunswick its urban centre, resulting in and is the only Atlantic the dense population. municipality included in the 2018 MBN report. Halifax is a maritime Sudbury has a large French- Thunder Bay is a port city Regina has a large working port city with a strong speaking population with and has a strong working class but also struggles with an working class and 16% identifying as French class. The city has few ageing population and tourism industry. While first language. However, it visible minorities, attracting people to the city. the city has a minority has few visible minorities, representing only 4.5% of However, Regina has a large population of 11%, it representing only 3.8%. The the population. It also aboriginal population (8.3%) struggles with its city struggles with its ageing struggles with an ageing and is the cultural centre of the ageing population and population (19% over the population, with 21% of province, attracting residents attracting people to age of 65). Sudbury acts a people over the age of 65. and tourists. Regina has high move to and work in the northern hub for education Thunder Bay acts as a hub crime/severity rates compared city. and healthcare, for smaller in the north-western part of to other Canadian cities. nearby communities. the province for smaller nearby communities. Halifax is home to Sudbury has one of the Thunder Bay has the second Regina, while more modern multiple universities highest property tax rates in highest property tax rate in than some, has a large number and an abundance of Ontario. The city also Ontario. Its port is the sixth of historic buildings and historic infrastructure. struggles with poor road largest in Canada. The city infrastructure. In addition, the Halifax also has a large quality across the city, is home to some of the top city has a number of large number of industrial among other infrastructure medical centres in the buildings that have become sites, including concerns, and has a province and also has a costly, such as theatres, sports shipbuilding and other significant deferred deficit. large number of cultural, and recreation facilities. manufactured goods sports and recreational sites. facilities. Halifax's largest Sudbury's economy over the Thunder Bay has a strong Regina's largest economic economic driver is trade last decade includes mining, industry base in pulp/paper driver is trade jobs (energy and jobs, with public sector professional services, public mills and sawmills, as well as natural resources), with the jobs a close second. sector, science and public sector, and growing economy relying heavily on The Halifax economy is technology. Key economic industries such as industry. In addition, public growing but still challenges include technology and health. The entities, produce jobs and struggles with a high attracting more students to city has invested in its attract students to the city. level of poverty, with the region, encouraging medical and research Craft breweries have large some HRM people to join the workforce facilities to attract people to point of growth in the city. neighbourhoods and encouraging the region but has struggled showing poverty rates immigration. with poverty, mental health, of 33.6%. addiction and crime. Summary for selection of comparable municipalities Halifax : Thunder Bay : D. Only Atlantic Canada city in the 2018 MBN D. Strong working class in a port city with similar report key industries (pulp/paper mills, public sector) D. Strong working class in a port city with similar D. High property tax rate key industries D. Similar economic challenges (poverty, attraction D. Low population density and retention of residents) D. Comparable state and age of infrastructure D. Mental health, drugs and addiction issues D. Similar economic challenges (poverty, D. Strong sense of community and culture attraction and retention of residents) D. Strong sense of community and culture Sudbury: Regina: D. Strong working class with similar key D. Strong working class with similar key industries industries (oil refining, public sector) D. Low population density D. Large, underutilized infrastructure D. High property tax rate D. Similar economic challenges: (poverty, D. French-speaking population attraction and retention of residents) D. Poor quality of roads D. Mental health, drugs and addiction issues D. Similar economic challenges: (poverty, D. Police relationship and presence with the attraction and retention of residents) community D. Strong sense of community and culture D. No volunteer firefighters D. Strong sense of community and culture Selected benchmark service areas Benchmark Service Area Building permits and inspection By-law enforcement Culture Fire services Fleet Parks Planning Police services Roads Sports and recreation Transit Waste management Benchmarking analysis Benchmark Focus Benchmarks Saint John Areas • Total number of medium and Fleet heavy vehicles (municipal 118.09 equipment) door rate �0% • Fire services total cost per 't Comparator* Difference Difference /o 102 16.09 +16% cape a Fire services total cost per $346 $236(Tbay)** $110 +46% Fire services household $698 $567(Tbay)** $131 +23% • Fire services total cost per $7,580 11,653 (Tbay )** %n sq. km • Police services total cost per capita Police services total cost per $373 $314 (HFX)*** $729 (HFX)*** $59 ° +19/0 Police services household $698 $21,324 �n Police services total cost per $8,076 (HFX)*** .'.2�1 1611111t% sq. km Waste • Total cost for solid waste management diversion per tonne - all $275 $83 $192 +231% property classes • Operating cost of building Building permits permits and inspection services $10.32 $4.3 (HFX) $6.02 ° +140% and inspections per $1,000 of residential and ICI construction value • Operating cost of enforcement By-law for noise, property standards, enforcement yard maintenance and zoning $1,402,998 492,049 $910,949 ° +185/0 by-laws per 100,000 population Culture • Culture: Total costs per capita $12.60 $23.31 10. "71 X16% Parks • Operating cost of parks per $40.25 $64.38 2 '1.13. l 7% capita Planning • Total cost for planning per $17.74 $23.505 capita Roads • Total cost for paved roads per $16,136 $11,809 $4,327 +37% lane KM (hard top) • Annual number of unique users Sports and for directly provided registered 15.71% 6.30% 0.094 +149% recreation programs as a percent of population • Transit Total cost (expenses) per $130 $136 �)t/n revenue vehicle hour Assumptions *The median, not including Toronto, Montreal and Calgary is used as the comparator, unless otherwise stated ** Thunder Bay was used as the key comparator for fire services cost per capita and household as it is the next highest benchmark in the comparison group, it holds several common characteristics including: being a port city, similar key industries (e.g., trades, public sector, pulp and paper), has a high property tax rate and struggles with poverty and addictions. ***Halifax was used as the key comparator for police services cost per capita and household as it shares a similar crime severity index SJN (54.32), HFX (67), along with being a port city, with similar industries, in the Maritimes. **** More discussion and analysis are required to understand the makeup of this benchmark Source of benchmarking data for comparable municipalities is the 2018 Municipal Benchmarking Network Report Source of benchmarking data for the City of Saint John is city staff (note that special pensions were not included in benchmarking calculations) Key location data pulled from the Statistics Canada 2016 Census Saint John Area fire stations ° Fire Station # 2 i'J Search this area .��. din . 2 BAS yi.. ..:.:_ i, lye, a aSaint Jo Awpuri Kennebecosis �! Island J Grand Bay -Westfield 1163 Fire Department P a Rockwood Saint John Fire Park Department Station # 2 Sent John Fire Department Station # 8 3rJu" Ihdmv '° Fire Station #4 Saint ,John - Cill Fire and Rescue Services Saint John �`nCaI117aG r Saint John Fire Department Station # 6 qq;j t� ry Fire Station #7 Irving h„VA;'P " g�'. IIS iii iirW e s t a t iii o iiri IUB iirW o x iii Fn iii Distance and travel time between Stations 7 and 6 and Stations 5 and 6 ranges between 2.6km to 4km with travel times between 4 and 6 minutes. Fire Station 6 is old and the requirement to maintain Station 6 should be re- evaluated in accordance with a risk assessment. l5tynan' 14. SVtari�n # 6 f f 113 h. m f'1 MIIrnNPa pKb ,n f hn t';ry Ivx 9 f y el A) # Ir $ im John IFirttn # I I tl= nii.r ,¢.ritN. r3Oa °,aRiv 3, io s n u i ii-@ r �` ;� &� , ori 0 a I+3 rr ii �yi ,.< 3YG i nirry iii�iyi�r a ii�m it r r" at Mancna�sRer aueeuMe{p,�. r/ 3 rr, 5i1 0o -,r Mrnr"inr,rnrt n,a AINVIHAFo�n� ivi .l H Ii Rr I i I i_ nou,i3i��' k r.d h i ,r ioi I I Go Oplrr; r .ails ,vn, ry,J„,:� Pi 9aVntJ. FII t ___ _. ___ .__. Chepmrtme.Ilt Station dYR PW, Disclaimer: The source is Google Maps. Please note that fire apparatus could be faster as the public tend to yield to them. Fire station proximity (cont.) �' a�lrll JbX n k tG� %��n3epzramuana �ta'91uir ffi H �uU{. �Iunnm r r � Distance and travel time between Stations 8 and 5 is 2.6km and 4 minutes. b e A risk analysis should be performed to support the closure of Station 8. 0 K 0 K I 11111 1 //141,na{ 6 t J M C IVIL% � ¢XYwV7~iran�et�M1 Staroeon Jt 409 µIv { r R 181X451 V'II. II.I" �0I 1I 1I„ U, / A, „N 4p 5 A t J Ian IFive Go ("k, V, K a a I Nwx'ma WdRsile-91. INF rIIA )ICI AIIU Rands Schaal Ct np Distance and travel time between Stations 8 and nl 4 to the middle of Sandy Point Road - Hazen,.' FIte STataon 44 SMI Jelin White St. Francis School is between 4-4.5km and within one minute with the new highway interchange. �r IN 111 i41N 1 Ik i1 (xa�7lrvGia7 Scree S allo�h �U '11, Disclaimer: The source is Google Maps. Please note that fire apparatus could be faster as the public tend to yield to them. Municipal buildings opportunities (1/3) Val ue of opportunity Opportunity (2019 MME EM assessment) Forest Hills Maintenance Depot operations and utilization is dependent Forest Hills $272,500 on the outcome of the Boars Head Road's North Depot closure and Maintenance 707 and 651 Operational relocation of employees. Depot/Office Westmorland assessment Operational One-time 01532563 and Road assessment If personnel from North Depot are not relocated to Forest Hills Ballfield/Canteen required Maintenance Depot, there is opportunity to assess its use and whether there is a divestment opportunity. Dominion Park The Dominion Park city -owned buildings and the beach itself take up Canteen/Clubhou Percentage of only a small portion of the total land the city owns in this area. se 730 Dominion Sale total assessment One-time 01718703 and Park value ($150,900) There may be opportunity to develop in the large forested area to the Dominion Park northeast of the beach. Developer interest in this area is required as Storage Building well as an assessment of utilities. Further Lease holders must abide by Rockwood Park regulations. The current Rockwood Park 175 Fisher Lease/ assessment lease holders' agreement is expiring soon and the Cherry Brook Zoo Horse Barn Lakes Drive sale required/ One-time N/A may be interested in moving into this space. If the zoo is relocated, it (potential sale of also opens up the opportunity to sell the current zoo location (value zoo $226,000) not available; smaller neighbouring property assessed at $226,000) This is a small building near Lily Lake within Rockwood Park. The building is currently used by the city's naturalist as well as summer Rockwood Park Further 10 Fisher Lakes Utilization workers. Interpretation assessment Annual N/A Centre Drive review required As the building is not utilized outside of summer, there may be opportunity to find a use for it during other seasons. Note that the building is not winterized. These washrooms were previously used by participants of Reversing Falls Jet Boat, which has since closed. There is now a zipline operation in the area which uses them. Further There was a previous plan regarding the harbour passage working Fallsview Park 100 Fallsview Operational assessment Annual group that has since fallen through which would increase use of these 04087046 washrooms Avenue assessment required washrooms. Many bus tours stop in the area to observe the Reversing Falls. There may be opportunity to charge buses per visit (per bus or per passenger) Similarly to other cities with high density boardwalks, walkways, and pedestrian passages, there is opportunity for short-term rentals to generate revenue. Further Using the Halifax Boardwalk as an example, there is a total of 22 Harbour Passage Operational N/A assessment Annual different types of vendor spaces. Some of the kiosks have power and N/A assessment required water, others only have electricity and some are operated out of shipping in containers. It is understood there was a shipping container art contest recently along the Harbour Passage. These containers could potentially be used as short-term lease spaces. There should be an assessment of this land to determine any sale opportunities. This ballpark may be underutilized and there is also land St. Peter's Park Douglas Street Sale 82,200 One-time 01655531 beyond the outfield where development is possible. West It is understood that an assessment of the land is needed both topographically and archeologically to determine feasibility. There is a beach, playground area, and trails surround the watershed in this area. Little River Further Further 60 Wayne Way Sale assessment Assessment N/A As there has been new water utility infrastructure installed in the city, Reservoir required Required an assessment could determine whether the eastern watershed continues to need protection. If it does not, there may be development opportunities in this area. There is opportunity to assess the operational cost of this asset and compare it against the amount that primary stakeholders pay the city Lorneville Operational to use it per year (Lorneville Community Centre). Recreation 1141 Lorneville Operational assessment Annual 04839778 Centre Road assessment required Opportunity to pass operations cost to stakeholders and not charge usage fees if operational assessment deems appropriate. Need to confirm city manages operations. Municipal buildings opportunities (2/3) Assessment of EOls required/ Aquatic Centre 50 Union Street Operational 805,800assessment/ (building) sale $552,000 (parking) The garage on 171-173 Rothesay Avenue was original designed as a horse barn in 1918 and is not fit -for -purpose for the fleet there; therefore, it is understood that Stantec is undertaking a review to determine if the fleet can be moved into the under-utilized Transit Facility. It was noted that it would likely be very expensive to retrofit the garage to become fit -for -purpose. 04129953 If Stantec's assessment concludes it is possible to move the fleet to the Transit facility, it is understood they will then look into the costs associated with the move, as well as moving the North Depot employees and equipment to 171-173 Rothesay Avenue, which is more fit for their purposes. If further space is required than that available at 171-173 Rothesay Avenue, the city is planning on moving some employees/equipment to the Forest Hills Maintenance Depot on 01663136 Westmorland Road. The City does not believe it will need to use Forest Hills for this; therefore, there may be opportunity to utilize it for something else. There is an Expression of Interest (EO1) due February 21, 2020 to determine potential opportunities with the Canada Games Aquatic Centre. Using the City of Saint John's Land - Parking Lots document, the One-time 01630612 eastern parking lot is valued at $465,000 (appraisal information) and the southern parking lot is valued at $87,000, using $25/ft^2. Assessment of EOls is necessary to determine opportunities. As per the City of Saint John's Land - Parking Lots document, the Refer to fleet lower parking lot at the Lord Beaverbrook Rink is valued at $979,000 using $15/ft^2. Utilization assessment required to business case determine if development opportunities are available. Municipal 171-173 Operational Rink Refer to fleet Operations Rothesay assessment (Not included in business case Complex Avenue 19 municipal (savings legislation. The City owns the building and it appoints members to building excluded TD Station is partially funded by the regional facilities commission opportunities) from There is currently an EO1 out to determine the interest in the Assessment of buildings and Operational EOls required/ has been interest in this. 99 Station TD Station Street assessment/ $324,000 lands sale (arena)** $2.4M (parking) opportunity to divest sections of the parking lot. business southwestern parking lot is valued at $1.1M and the northeastern Refer to fleet cases) Assessment of EOls is necessary to determine opportunities. business case **$324,000 assessment value for TD Station seems substantially Works North 100 Boars Head Sale (Not included in Garage/Office Road 19 municipal building opportunities) Assessment of EOls required/ Aquatic Centre 50 Union Street Operational 805,800assessment/ (building) sale $552,000 (parking) The garage on 171-173 Rothesay Avenue was original designed as a horse barn in 1918 and is not fit -for -purpose for the fleet there; therefore, it is understood that Stantec is undertaking a review to determine if the fleet can be moved into the under-utilized Transit Facility. It was noted that it would likely be very expensive to retrofit the garage to become fit -for -purpose. 04129953 If Stantec's assessment concludes it is possible to move the fleet to the Transit facility, it is understood they will then look into the costs associated with the move, as well as moving the North Depot employees and equipment to 171-173 Rothesay Avenue, which is more fit for their purposes. If further space is required than that available at 171-173 Rothesay Avenue, the city is planning on moving some employees/equipment to the Forest Hills Maintenance Depot on 01663136 Westmorland Road. The City does not believe it will need to use Forest Hills for this; therefore, there may be opportunity to utilize it for something else. There is an Expression of Interest (EO1) due February 21, 2020 to determine potential opportunities with the Canada Games Aquatic Centre. Using the City of Saint John's Land - Parking Lots document, the One-time 01630612 eastern parking lot is valued at $465,000 (appraisal information) and the southern parking lot is valued at $87,000, using $25/ft^2. Assessment of EOls is necessary to determine opportunities. As per the City of Saint John's Land - Parking Lots document, the lower parking lot at the Lord Beaverbrook Rink is valued at $979,000 using $15/ft^2. Utilization assessment required to Lord determine if development opportunities are available. Beaverbrook 536 Main Street Sale 979,000 One-time 01649239 Rink Note: The LBR is operated by a committee, was a gift from Lord Beaverbrook to the citizens of Saint John and will forever to be operated by the citizens of the community unless a change in legislation is made. TD Station is operated by a commission existing under provincial legislation. The City owns the building and it appoints members to the committee. TD Station is partially funded by the regional facilities commission (different municipalities) There is currently an EO1 out to determine the interest in the Assessment of facility. Private operation is a possibility for the arena and there Operational EOls required/ has been interest in this. 99 Station TD Station Street assessment/ $324,000 One-time 01659006 Depending on what proponents propose in the EOls, there may be sale (arena)** $2.4M (parking) opportunity to divest sections of the parking lot. Using the City of Saint John's Land - Parking Lots document, the southwestern parking lot is valued at $1.1M and the northeastern parking lot is valued at $1.3M, both using $15/ft^2. Assessment of EOls is necessary to determine opportunities. **$324,000 assessment value for TD Station seems substantially lower than what the true market value would be. Municipal buildings opportunities (3/3) The parking structure is operated by the Saint John Parking Commission. The parking structure was built to have additional levels built on top of it. Utilization Further As the coast guard parking on the waterfront land is being Peel Plaza Carleton -Sewell Operational assessment assessment 05977943 removed for development, parking may be relocated to this Parking Garage Streets assessment required required parking structure. Also, depending on the EOI outcomes of the Canada Games Aquatic Centre and TD Station, if parking is impacted, the parking structure may be used. Recommend undertaking utilization assessment of parking structure to determine opportunities. As there has been recent water utility infrastructure implemented in the City, there may opportunities to decommission or repurpose SJ Water properties that have become redundant. Operational Further Further assessment is required to determine if the east and Approximately Various Operational assessment assessment Various west watersheds need continued protection due to the new 50 buildings assessment required required infrastructure installed. Examples include the Spruce lake and Loch Lomond areas. As there are many Saint John Water buildings and lands, it is recommended the City undertake an assessment of the properties still in use, and which are now surplus to requirements in order to identify opportunities. Lands opportunities (1/2) Land Value Department Quantity (2019 Opportunity Occurrence Assessment) Falls View Drive ($96,100) - Adjacent to the Reversing Falls Restaurant parking lot. The 14%2 Restaurant is currently overholding their lease. Opportunity for City to sell. (PAN 06230881) Green Head Road ($76,700) - Formally leased to JDI prior to 2016. Opportunity to lease space or sell. (PAN 01719042) Lock Lomond ($70,700) - Building was demolished in November 2013, leaving goalposts and fenced court remaining. Opportunity to sell. (PAN 04882886) Fallsview Ave ($70,000) - (PAN 04087046) Milford Road & Francis Ave ($69,800) - Donated by Emera Brunswick in 2012. Opportunity to utilize or sell. (PAN 01713818) Recreation 13 $639,300 Lake Drive South ($45,000) - Beach lot beside Lily Lake Pavilion (PAN 05748580) One-time sale Kennebecasis Drive ($39,400) - (PAN 01679755) Sandy Point Road ($34,700) - (PAN 04667993) Morris Street ($30,000) - (PAN 03819709) mount Pleasant Ave ($28,900) - (PAN 06148725) Edgehill Row ($27,900) - (PAN 01707540) Greendale Cr ($26,100) - Wooded area in centre of block - Potential for development (PAN 03548162) Silver Falls Park / Mark Dr ($25,100) - Public Park (PAN 04584632) 66 Gaelic Drive ($296,800) - (PAN 06459817) Route 820 ($60,600) - (PAN 03815894) Sands Road ($55,900) - (PAN 03815860) Route 820 ($51,500) - (PAN 06564523) Route 820 ($33,700) - (PAN 03832773) Saint John 7 $551,400 One-time Water Off Golden Grove Road ($26,600) - (PAN 03815852) sale Route 820 ($26,300) - (PAN 06564565) Recommend consulting with Saint John Water to determine utilization of land and potential opportunities. There are many Saint John Water properties used to protect the east and west watersheds. Given there has been new water utility infrastructure installed in Saint John, the City believes the watersheds may not need to be protected any longer, therefore, there are potential development opportunities or sale of land opportunities with Saint John Water. Saint John 2 $247,000 Smythe Street ($219,800) - (PAN 01658929) One-time Parking Station Street ($27,200) - The City purchased this from CN Rail in 2014. (PAN 06388943) sale 188 Lancaster Ave ($115,500) - Large, empty lot next to Canadian Union of Public Employees (PAN Roads 3 $181,800 01700661) One-time 660 Sand Cove Road ($38,700) - For future Intersection reconfiguration (PAN 05230171) sale 46 Station Street ($27,600) - (PAN 04729355) Leeward Lane ($26,500) - (PAN 05323916) LPP 3 $76,500 Gault Road ($25,000) - Opportunity to be used for well & engineered septic for a single family (988 ft^2) One-time (PAN 01720506) sale Kennebecasis Drive ($25,000) - (PAN 03884097) Real Estate 1 $60,000 Beaverbrook Ave ($60,000) - (PAN 06297663) One-time sale N/A 1 $41,400 Mispec Beach ($41,400) - Mispec Beach used to belong to the county of Saint John, when this was dissolved, One-time it was given to the City. Potential to sell this as it is outside the City. (PAN - 01602847) sale Surplus 1 $44,700 MacLaren Blvd ($44,700) - (PAN 04141272) One-time sale Impaired 1 $33,300 154 Germain Street West ($33,300) - (PAN 01617321) One-time sale Total 48 $2,853,500 Total Opportunity 32 $1,875,400 This total excludes the "Assumed No Opportunity" vacant lands Value Lands opportunities (2/2) Land Value Description (2019 Opportunity Occurrence Assessment) The Wall (PID 8979) is a commercial parking lot on the corner of Princess St and Canterbury St in uptown Saint John. An RFP for potential development of the lot closed in May 2017, receiving no proposals. The Wall One-time Princess St. and $140,000 Since this time, there has been interest from the developers of "The Telegraph", a residential building currently sale Canterbury St. under construction. The Union Club, owned by Irving, is also interested in the lot for parking purposes. EY recommends and EOI process be released to gauge the current interest in the property. The Sugar Lands is adjacent to the Port site and is broken into two sections. Section A is a Landlocked Commercial Land worth $700,000 (PAN 055071005) and Section B is a Paved Parking Lot/Snow Dump worth $300,000 (PID 55147482). There has been interest shown from the Port to purchase this land from the City. Currently, the Port's land in the The Sugar Lands area is not big enough for laydown space for offshore wind turbines, which they plan to begin investing in. One-time 330 Charlotte St. $1,000,000 sale One constraint to working on a deal with the Port, is the City has gland -use plan in place, where this land is planned to eventually become recreation space. There is an opportunity to lease the space to the Port with specifications of what they can do with the land, as to not take away from future recreation space potential (ex: limit contamination) There may also be an opportunity to use Section B as a paid parking lot. Tucker Park (PID 446633) is an area of parkland with a beach that was gifted to the City. Though this was gifted, there are not as many restrictions as other City "gifts" such as the Lord Beaverbrook Rink. Tucker Park does not have formal restrictions within its deed that states it cannot be developed. Tucker Park One-time Kennebecasis $39,400 As this area is under-utilized and is a waterfront property in Millidgeville, the City should consider options to sale Drive develop the land. There has been push -back from the public in the past, but from EY's understanding, it was only a select few amount of people. Note: The property next to Tucker Park with roughly the same land mass is assessed at $1,743,700. Harrigan Lake (PID 418129) is a cleared area just north of the Rockwood Golf Course. It is currently zoned as a "Park", though it does not fall within the boundaries of Rockwood Park. The last time this area was presented to Council to be rezoned as an area that could be developed, the Friends of Rockwood Park group pushed back heavily, which resulted in Council rejecting the proposition. This area has already been cleared when it was used as a laydown space when millions of dollars of utility Harrigan Lake infrastructure was installed on Sandy Point Road. These utilities were installed to support development in this area. One-time Sandy Point Road $24,300 There are now tie-ins for water and sanitary sewer to Harrigan Lake as well as a reserve easement for existing sale storm sewer onsite. EY recommends this area be reconsidered for development and the "Park" designation be reviewed. Other lands in this area have similar potential and constraints including Green View Acres and the Trail Head. Details on these areas are below. Note: The property next to Harrigan Lake with less land mass is assessed at $356,700. Both properties adjacent to the Harrigan Lake property have houses on them, therefore, development has not been a constraint in the past. Green View Acres (PIDs 55196380, 55059034, 55059026) is a property lining the western edge of the Rockwood Golf Course. This property has similar constraints as Harrigan Lake. Green View Acres $25,000 EY recommends this area be reconsidered for development and the "Park" designation be reviewed. One-time Sandy Point Road sale There may also be an opportunity to partner with the leaseholders of the golf course for this land and discuss possible development opportunities. In other jurisdictions, residential properties lining golf courses sometimes have deals associated with the course. EY recommends the City look into this opportunity further. The Trail Head (PID N/A - vested as public street) is a property in a residential neighbourhood on the corner of The Trail Head $50,000 Sandy Point Road and Foster Thurston. This property has similar constraints as Harrigan Lake. One-time Sandy Point Road sale EY recommends this area be reconsidered for development and the "Park" designation be reviewed. The 17th Opportunity (PID 55020770, 55059018, 55059158) is a forested area between Rockwood Golf Course The 17th and the Rockwood Golf Course Aquatic Driving Range. Though this land has a "Park" designation, it is not an issue Opportunity with the public for development. One-time Sandy Point Road $52,400 In coordination with the City of Saint John, EY has identified two potential opportunities for this land. The first sale at Tucker Park includes extending discussing with the leaseholders of the golf course to determine their interest in further Road development. The second is to coordinate with the Regional Hospital and determine if out-patient housing is an option to be developed in this area. Rainbow Park Rainbow Park (PIDs 885, 893, 919, 927, 901, 2212, 794, 802, and 810) in a large parking lot with potential for Sydney St and $65,500 development. One-time Broad St The City of Saint John has indicated this land is set aside for other uses and opportunities are being explored sale already. The Falls View (PIDs 55217657, 55217665) is land adjacent to the Reversing Falls Restaurant. Currently, the 14 The Falls View $474,000 1/2 Restaurant is the leaseholder on this land, having an overholding lease that expired a year ago. One-time 450 Falls View Dr sale The owner of the 14 1/2 has shown interest in the land, therefore, EY recommends the City consider the sale. Total Opportunity $1,870,600 Value Procurement data The assessment for procurement is based on materials provided to EY by the City of Saint John. A high-level spend analysis was conducted considering the supplier names to develop the business case. EY recommends conducting a detailed spend and contract management analysis. $13.49,'M 7% of totalsp6,hd' $138.610 M 4A of total spend; 1430,M OA of total spend 514J9 M 4%,of total spend i $86,77 Mt 47%, of total spend 594.10 Mfi 291 of total spend, $3,31 M A of total spend $3.2Z M Iris of total spend) $67.65 M, til of total spend $71.51 M, 2Z% of total spend Spend excludes Flleet $63.77 M $68,37 M Spend increased by 7(0 Spend on Purchase Orders (POs)is approximately 50"% (2018) and 54% (2019) 801 vendors (2018), 794 vendors (2019) Spend overview Total = Total = $ 185.9M $ 321.8M 2018 $19.64 M $22.43 M $12.86 M $13.71 M 2019 Operational spend, an overview Addressable Spend of the spend is provided on the right P -card Spend on Master Card Payment to Includes salaries, government Government financing, WorkSafeNB premiums organizations Payments to Payments made SJ transit, service centers & Discover Saint John, Harbour Grants Station etc. Note: This chart excludes the visualization of capital payments. The following capital payments were identified in the spend file 2018 Capital spend was approximately $138.5 M (port city Water Partner - Substantial Completion) 2018 Capital spend was approximately 13 M (Nova Bus n7rDr5—d7=n n�- Overview Covered in fleet business case Sl S��J �e� aca Qac Q`°fie Fa\ ti �J o� Q �S ,`moo �a Qe 0 ¢9ac tia�`o �eoo c5a� Qac �e�\a Foo o� �e �a Ar�aQ�\ ��A �eF rac \°0Jc�' ca0 saw e a�a Fie¢ Q°\ aca aaa So�� a yoaQ �a �a �a tea`' 141 AS c� P �e uuuuu 2418 uuuuui 2419 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Total addressable spend for procurement workstream excludes fleet, as it is covered in a separate business case, i.e., 2019 addressable spend: $71.61M - $3.24M = $68.37 $7.62M ;$3.88M $8.36M $4.84 M $3.53 N'' $ .24 M $3.38 M $2.57 $2.49 M $0.66 M $4.78 M $4.04 M $3.72 M $3.85 $1.36 M $1.32 M $1.22 "'^ ' / 7 $3.33 $2.72 M $1.43 M 2 $1 20.55 / M Sl S��J �e� aca Qac Q`°fie Fa\ ti �J o� Q �S ,`moo �a Qe 0 ¢9ac tia�`o �eoo c5a� Qac �e�\a Foo o� �e �a Ar�aQ�\ ��A �eF rac \°0Jc�' ca0 saw e a�a Fie¢ Q°\ aca aaa So�� a yoaQ �a �a �a tea`' 141 AS c� P �e uuuuu 2418 uuuuui 2419 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Total addressable spend for procurement workstream excludes fleet, as it is covered in a separate business case, i.e., 2019 addressable spend: $71.61M - $3.24M = $68.37 ¢9ac tia�`o �eoo c5a� Qac �e�\a Foo o� �e �a Ar�aQ�\ ��A �eF rac \°0Jc�' ca0 saw e a�a Fie¢ Q°\ aca aaa So�� a yoaQ �a �a �a tea`' 141 AS c� P �e uuuuu 2418 uuuuui 2419 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Total addressable spend for procurement workstream excludes fleet, as it is covered in a separate business case, i.e., 2019 addressable spend: $71.61M - $3.24M = $68.37 �a yoaQ �a �a �a tea`' 141 AS c� P �e uuuuu 2418 uuuuui 2419 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Total addressable spend for procurement workstream excludes fleet, as it is covered in a separate business case, i.e., 2019 addressable spend: $71.61M - $3.24M = $68.37 O Binding arbitration Current state Under the New Brunswick Industrial Relations Act, firefighters and police officers cannot go on strike and instead, binding arbitration is used when collective bargaining is unsuccessful. Three unintended consequences have resulted in respect of the binding arbitration process. .1.. . Existing legislation in New Brunswick does not currently consider municipalities' ability to pay as part of the binding arbitration process. A provincial initiative is underway to amend the legislation to consider municipalities' ability to pay as part of the negotiation process. Risks and caution must be exercised when including the criteria in this legislation to ensure clarity around how ability -to -pay will be determined. 2. Over the past 15 years, police and firefighters have received a cumulative pay raise of —70%. During that same period, CPI has increased by 27.5% and the city's ability to pay these increases has been compromised significantly by the reduction in tax base as well as the pension plan liability. 3. Cost of benefits has increased in correlation to wage increases and the cost of special pensions has also risen. All contribute to the destabilized sustainability of the City over the next 10 years. Note that binding arbitration is not a process under the collective agreement for outside workers. Instead, conciliation efforts are undertaken prior to strike/lock out or work stoppage. Recommendation: It is recommended that the City fully document its recommended criteria which the legislation should include to assess ability -to -pay and work collaboratively with the province to co -develop and implement changes. Given the active nature of negotiations at present and the in -progress legislative process around ability -to -pay, the City should consider entering into a shorter -term agreement, if needed, to avoid the ability -to -pay clause not being enacted prior to the close of collective bargaining. The risk to be avoided is being in an arbitration process before the ability -to -pay clause is formalized legally. OLabour relations landscape Current state As noted earlier, there is a strong value attributed to the workers of all four of the City of Saint John's unions and there is generally a view that there is a positive relationship with the unions; however, the city's current financial challenges draw a very compelling case for change since the financial landscape has significantly degraded. Some key highlights were shared in respect to recent improvements: 11� Non-union staff have received labour relations training to improve their understanding of the labour environment. 11� City management has focused, consistent performance management processes as well as disciplinary approaches. 11� The City is interacting, learning and sharing learnings and approach with and from other municipalities to improve insight and understanding in how other municipalities' agreements are different and how they are working collaboratively with their unions. 11� There is also a great effort in coordinating efforts with all boards/commissions. 11� In addition to the above, a focus on business continuity planning has been established to ensure protection in the event of work disruption. Recommendation: To further enhance the understanding of the labour landscape, we recommend the City fully examine the landscape, considering both a SWOT and a PEST (political, economic, socio -cultural and technological) analysis to support each set of negotiations. It is important that the negotiating team have a full understanding of the landscape and avoid the temptation to presume awareness. OLabour relations negotiation approach Current state Historically, a cohesive, long-term, strategic approach to collective agreement negotiations has not been observed. Instead, management focused on short-term goals in each round of negotiation. 11� There is desire/action taken by management to develop a comprehensive labour relations strategy that encompasses the plan, principles and roadmap for all collective agreements, aligning towards long-term sustainability for the City as well as transparency for citizens. Recommendation: Develop a comprehensive labour relations strategy including the following elements: 11� Identify all constraining and limiting, or risk inherent articles in the collective agreements. 11� There is also a space included that should be used to perform a risk and impact ranking/scoring. 11� Fully cost out all constraints identified with finance and service areas. 11� Strengthen stakeholder engagement across all stakeholders, including union representatives/members. 11� Improve transparency with stakeholders and the public. 11� Align labour relations objectives with service levels and talent/skill requirements and multi-year resource plans. 11� Improve work culture. oD. Ensure sustainability/affordabilityalignment. 11� Align staffing model with city service levels/needs. 11� Integrate strategy with all city affiliates/commissions (including SJ Police and Transit). 11� Improve performance management model to reward top performers. 11� Include a clear roadmap with phased approaches for each round of negotiations as well as opportunities where business continuity efforts will be required if negotiations are unsuccessful. It is important that the City take exceptional measures to protect the future of the city's services and doing so may result in strike/lockout measures. The purpose and primary goal is to achieve a labour model that enables long-term sustainability of the city's financial capacity, while maximizing services and service levels to the community at the best possible cost. Additionally, it is essential that the negotiating team conduct a comprehensive review of wages in other jurisdictions outside the province to compare its ability to pay, including per capita costs of all services and benchmarks as comparison. Using local jurisdictions for comparison exclusively is not adequate. The common counter argument is that protective services were significantly underpaid for an extended period of time and needed to catch up; however, this argument is no longer relevant. OStrengthen the labour relations team Current state Management has engineered a diverse, mature team to lead negotiation efforts; however, it is known that for some union negotiations, e.g., IAFF, the union will deploy a consistent resource that understands the depth of the challenges and risks across the country, which enables strong knowledge leading into negotiation efforts. Engaging a labour relations advisor who can provide provincial strength/advice to all municipal negotiating teams is strongly recommended. Recommendation: The City would benefit from strengthening the negotiating team in some areas. It is recommended that an independent evaluation of the negotiating teams are conducted to critically assess and understand skill gaps. Commonly, labour negotiating teams self - assess team members competencies' higher than they actually are. This is a common pitfall, often damaging the strength of the negotiations. A very strong manager who is extremely competent in their work will not necessarily have the skills to respond in a distressing, negotiating environment. Performing this assessment will enable gap closure and build bench strength and transfer critical knowledge or enhance negotiating strategies. Other common pitfalls include lack of financial expertise; for example, an experienced financial person who can translate the proposal terms into financial impact quickly to determine the viability of the proposal. Secondly, a strong requirement is to have decision makers with autonomy, who are empowered to make timely and advantageous decisions on the spot. We believe that the City has most of these characteristics but that a fulsome review should be undertaken to bolster the team during this critical time. EY also strongly advises the City to include a labour lawyer on its negotiating team. Different lawyers encompass different skillsets and experience with police, fire, and outside/inside workers; the experience of negotiating resources should be considered. The reason some union negotiations have been so successful historically is because of their continuous use of very experienced labour lawyers who have a comprehensive understanding of the service area as well as the pitfalls and tactics. It must be stressed that strong union negotiations are highly political in nature. The regimes of binding arbitration vs. lockout are very different and the City should consider finding the very best resource for the particular engagement. Additionally, the Human Resources team should inventory and pull together significant arbitration decisions that have impacted collective agreements not only in New Brunswick but in multiple jurisdictions to support the team. It is clear that the black letter of the collective agreement is not always the best determinate of how the agreement is applied and practices also matter. Long-term actions of management/the union, as well as any decisions, should be fully considered to understand the terms and practices of the collective agreement OSpecial Mention to alarming articles held within the collective agreements 11� Article 6 in the Local 18, outside workers, collective agreement references a minimum labour number of 293, less 5% with a no lay-off article. This particular term is not typical language seen in collective agreements of this nature and was negotiated more than 30 years ago. It is significantly constraining the City from managing the City's work flow effectively; for example, there may be a need for more workers in the summer and a smaller workforce during the winter months. The City cannot work with the ebbs and flows of business/service needs under these constraints. 11� Article 3, Constant Manning, in the Fire Services collective agreement, is also a constraining article as it is not always necessary or logical depending on the type of response or the personnel already on the scene. The number of expected manning staff is atypical for this article. 11� Currently, Local 18 has foreman/supervisory positions as part of the collective bargaining unit. This is very difficult as it is contributing to a protectionist culture. The culture is currently quite rigid, and this configuration of supervisory/staff is not allowing true transparency/efficiencies across the teams and workforce. This configuration is not seen in the City of Fredericton's collective agreement. Management can negotiate to have these members removed from the bargaining unit. Barring successful negotiation, management can also apply to the labour board to have members excluded from bargaining; however, negotiating removal is likely more probable. 11� Local 486 has restrictive articles specifically in relation to contracting out/lay-off procedures. Dismissal article 14.02 means it would be problematic for the City to dismiss an underperforming employee since the only reason for dismissal is just cause. Performance management article 11.07 is focused on the workplace environment rather than performance, which could impact true performance assessment and dismissal linkages. 11� Long -service awards articles are increasingly under attack by management/tax payers as gratuitous payments. Long -serving employees receive other benefits such as seniority, increased pension benefits, prime choice of vacation time, etc. This area should be part of the negotiating targets. 11� Sick time banks are problematic and can accumulate significant accruals and potential payouts/abuse behaviour. Hard caps could be placed on the number of hours that can be accrued in a period or overall. 11� It is anticipated that the recruitment of younger generations who are seeking more flexible work environments and an expectation of promotion primarily on performance, not seniority, will disrupt the viability of these agreements. This disruptor will take some time to adjust in this current environment. About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global - Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. For more information, please visit ey.com/ca. © 2020 Ernst & Young LLP. All Rights Reserved. A member firm of Ernst & Young Global Limited. This publication contains information in summary form, current as of the date of publication, and is intended for general guidance only. It should not be regarded as comprehensive or a substitute for professional advice. Before taking any particular course of action, contact EY or another professional advisor to discuss these matters in the context of your, particular circumstances. We accept no responsibility for any loss or % o, 9, damage occasioned by your reliance on information contained %„✓ in this publication. ey.com/ca/private 157 TABLE OF CONTENTS SECTION 1: |NTR{]DU{]l{]N SECTION lHUMAN RESOURCES ADMINISTRATION Pie i�reariizahionaiEs�abUshrnent HeaWh8enefits SECTION 3:WORKFORCE PLANNING Dam� hi bxEmpi (Dece� 3l,2[D9) VYorkfc-.)ircementEiigibiiitynaxt5years TbrnoverT��nds Stk: mentand CaraarDeve��pmant Tbtai E(�nmup EmpbyeeTirainingandDavaiopment VVork�)rceUtiiizationRaka EmpAcyeeE)urve�y SECTION 4:EMPLOYEE HEALTH, SAFETY AND WELLNESS S f Srd A�andancaandAbsantaaism |njury oni Du�y Em[icyaaVV(-Ainas SECTION 5:LABOUR RELATIONS (�riavancas SECTION 6:SALARY &BENEFITS 2019 ( 2019Saiary8c By Empi (.-Al 2019[)pel8udge��lkxaiSaiary8c8anaOts 2019 8vEmpioyaanmupand Pay Band �|TY[)FSA|NT]()HN CUPE Locai4% |nsideVVorkao CUPE Locail&[)utsideVYorkars Saint]ohnFiilo|AFF77l ��ana t/Pn��ssionai Non-UnionAdministmtiva SA|NT]()HNTRANS|T��|SS|[)N SA|NT][)HNPOL|(.ERORCE Saint]ohnPmiicaAssociation Saint]ohnPmiicaFoil ��ana�amant Saint]ohnPmiicaFoil|nsidaVYorkaoCUPELocai4B6 ��ana�amant�PubUcCommunilcahorlis (911) CUPELocai4%PubUc�af(-.��-vCmmmunications811\ |nicil 15��a Su SECTION 7.- RECOMMENDATIONSFROM THE DIRECTOR, HUMAN RESOURCES AHil and SECTION 8: MESSAGE FROM THE CITY MANAGER SECTION 1: INTRODUCTION THS is LhE? firsL E?ditioin Of t+)E�, Annual Workfor-c.:e RE?pOl't f(.)r- LhE? C."iLy Of: Si3illlltjOhlll. FhE? f�epoft [.:)rc)Hes the labor .jr-/�.?irTipl(.)yiru�iieii"it cointri[x.itioin k�omul'Ilidpi.31 SE?r-viCE?S i.3101111�,' WiLh C."iLy SE?r-viCE?S i.re dekver-ed by a nuimbE?r of: work gr-OUPS, 1IIi31FT1E?1y: irsidE? wor-kE?r-s, ou�sidE? WOr kers, fi a..�iind IrVlkblrlla3�)IE?IME?ii ii Vpr-(.)f:E?s!,-,ioina ✓1/i iioii ii uii flu 1i sLaf b La [ill ll�,� 62.8 E?IFTIPI(.)YE?E?S, hn a..�idditioin, there a..�i.re nuimbE?r of: agE?rdes, boards and coirnmissiorsare CIOSE?ly LiE?d to the Aw..�i.A�..�J.)e and applicable and irforma�Join r'E?1i.AE?d LO LhE? Si3ill'IlLjOhl'11 :'01iCE? &..�dintjohin Frarsi�.. C."017111FIIIISSIO1111 i.31111d Sairtjohin :'<arkirg C."ornmissioin has bE?E?Illl induded lilru this Report. FhE? C."iLy Of: Si3illlltjohin wor-kf:or'CE' pr-ovidE?S i.3 WidE? rallll�E? Of: SE?r-viCE?S LO I k+iain 67,000 r'E?sidE.'1`IIN 01111 a daily basis, i3S WE?[[ i3S i.3 laq,'E? I'lluimbE?r- of: visi�:ors and work coirnmLAE?rs, As C."arada's oldE?SL ircorpori.AE?d cik.y, our bourdariE?S cover approxiimi.AE?ly 315 Kims'of urbar, suburbar, and rural 11116ghbour-hoods, :�.E?sidE?111ILS Of: LhE�' C."iLy E?rjoy rich and diVE?r-SE? 1111E,'ighbourhoods and lifE?SLYIE? ChOiCE?S Lhi.A Sll.jik rnomcuhural or PE?rsoral pr'E?f:E?r'E?IlllCE?S, WE? are kinowin as a ciy 01111 LhE? Wi.AE?r; M+i mor'E? COi3MJi1`IIE? Lhi.31111 i.31111y d+1E?r- NiEw Brunswick muriciba: liLy, O. .jr-CE?iiii�':r-i.�[b�.isil[IIE?ssdIs' r-ic(kiiiiowiiiii.�s"V.jp�"owiiiiSi.�iiiii�':.JO'11111"),i.�SWE?Ili.�sirTii.�iiiiy of: our r'E?sidE?1`II1Ji31 11116ghbour-hoods, are urIiCjLJE?1y Sih.Ji.AE?d aloing, LhE? world fi3imous Bay of: ::�urdy and E?Illlj(.)y soi-TIE? Of: LhE�' I pich.jr'E,SCjLJE? ViE?WS Ei.3SLE?rn C."arada has �.o offer, Our r'E?sidE?1`IIN E?Illlj(.)y OVE?r- 110 kims Of: COi3MJi1`IIE? i.3101111�,LhE? IBay of: ::�urdy and OVE?r- 70 kims of: Wi.AE?rfrort aloing LhE? SLJOhllli :�iVE.,r sairt.johin Was fourldE?d as a poa cik:y, and r'E?imairs very i3dJVE? iin �+ds irdusfty ��oday, M+l LhE? �+dr-d--1ar'gE?SL LO11 ]l' Ili.3�E? of: ary por-�. iin (."aradaWE? i.31SO hi.M? i.3 WE?[[--dE?VE?IOPE?d ba SE? Of: prii-ria ry E.X.racioin and SE?cordary ill llckjm�:riE?S, i311 Of: WhiCh E?irTip[(.)y 0iousainds Of: PE?OPIE? across LhE? GrE?i.3 LE?r Saiii ii �.Johii ii regiai ii, F<abl,E?l asummaryof: mE?��ricseXi3imil1lE?dinmor'E? dE?N.3i[WhLhinLhE, body of�+IE? Report, Genera[|st+)eC."itv'svvorkfon�? Car becharaCehzedasstab[ein2[D9,ah+iougha reductionOf: thenunnberof: pernnanentpositionsisnotab[e, [}verthePasttenYears,the overall estab[ishnnenthas been reduCed by 55 positions, notinc[uding Saint]ohn Po[iCe ForCeorSaint]ohnFra nsiL TheCitYexpeCtsfurtherred uctionsgoing,fnrv/ardarising,fnonn normal attrition and the innp[ennentation ofvvorkfnrCe rea[ignnnent and optinnization initiativesin2O2Oand beyond, I cl��Ael Nunnberof: PemnanerltEmpl(.)yees 631 628 Avera�,'E? [Eimployee Age 46 46 /4vera�,'eEimpl(.)meeYears ofSen/ice 13 l59 Nunnberof: GrievarcesFi[ed 7 3 Nunnberof: Externa[Hires 34 30 Nunnberof: |nterna[Moves 40 32 [:imp[ TuRi.Ae 61% 46� [:imp[ Reti ts 29 20 /4vera�,'eSick DaysperEnnp[OYee 9O 10�6 bd oin 7 hour d TR.ta[Ennp[cYeeAcddents 60 51 LostTinne/\ccidents 33 24 Trainin�,� (."ostperEnnp[(.)yee $830 $770 VVorkfon�?Uti[izationRate* 83% 82� 6�,, � SECTION 2: HUMAN RESOURCES ADMINISTRATION This SE?Cion addr-�".?sses the pr-oCE.SSE?S buiH strt.jch.ne around E?imp1(.)yirT1E?111t illldudirg perima.1111E?int ap[.)rOVEd f:LJ11--lJ1FT1E? e(.p..jiva1E?111t!:1 and E?IF(IPIOYE?E? bE?111E?f:iLS, THE ORGANIZATIONAL ESTABLISHMENT -FhE? ESN.3blishirneint (Ta�."Ibie 2) is l+)E? approved 11111.117111DE?r- Of: fUll-IJIFTIE? PE?r-iFT1a111E?111t posilJors iin E?i3Ch""E?imp1(.)y(..'rre gra..jp. The EsLablishimE?1111t is apprOVE?d arinually by C."arnmoin C."ourcil, FhE? a.�und teirnporA..iry p0Siti0111& C."i.3SUi.31, LE?imporaliry, cointrac and Ol+1E?r- forms Of: 111101111 PE?rmarelllt coirripierneint a:."i.re not irdudE?d iin l+ie Est..�ibliishimE?1111L I cd�)le 2 TO TA L C i "FY 631 628 ' The Sahl: John IPolic.e IForc e and Sahl: John Fransi : :oNds ind ude rnanagernenl:, civil an and unionizec.] sl-aff. N,iOLE? Lhi.A Si3illlt JOhin Frarsil� and l+)E? Si3ill1t.jOhIlli :'OhCE? lbr'CE? ar'E? includE?d l�o allow for- comparisoin LOOlfiE?r, FTKJ111iCipi31ilJE?S, EiKh regioin variE?S i1111 01E? dE?livery Of: SE?r-viCE?S, f:Or'E?xaimp1E?, irch.jdE?S Si31ll1t.jOhIlli Wi.AE?r'E?imp1(.)YE?E?S, I GROUP HEALTH BENEFITS FheC."iLy Of: Si3illrt]ohnhas ain Adminisft'i.AiVE? SE?r-viCE.S 0111ily (ASO) Gir-oupBE�'1111E?fiNP� The P[an isgoverned by joint&1ana�)'ennent/Unioil COnnnnitteeand has been inan exCe[[entfinanda[positionfor- thepastnunnberofyearsvvit+iasurplus of: approxinnate|s $l nni[[ion do[[arsasof]anuaryl, 2019� Hovveve� increasi1`1�,1 hea[t+1 Costs, prinnari[yfnr presaip�iondrugs,haveexCeededthetota[ContributionsinthepasttvvoYears(T'<-3b[e3)� The BenefitsSteering �onnnnittee Will addressthese shortfa[[stoensurethe P[an rennainsstab[e, P1ammembE?r-saneLhE? car-dholdE?rfor- �+)E? Gir-ompBene4:it&P1ainmembE?r-s hi.v LhE?ocLicm tose[ectasilior- fanni|splain, and total nunnbersbe[ovvdonotinc[udedependarts, Thefu[[nnonth|scost for- t+Iesilirzteis$l63,2Dand $27,3Ofor- fanni|s Theseprenniunns arecost-shared 75%/25% bsthe ennp[C)yerand ennp[C)yee; retireesare responsib[efnr 100%ofthepr'E?1FT1iu1FT1, Retir'E?eshi.WE?theopLionuponretir'E?menttor'E?mainamember ofthep[an� P[anprenniunnsren1ai1`1edunchangedsinCe1.1)eCennber20l0, 1\1ennbersh1p intheplain isnnandatoryfor- all pemnanentennp[c)yees Ta�l�)[e 3 $4,601,217 $4.760\241 $4,267,138 $4,298,314 l622 1630 +SaintJohn Poiice Force mem6ersare inc iucecl intheGtyofSaintJohn Group BeneGts, SECTION 3: WORKFORCE PLANNING TI uiS SE?CtiOlI ]I profi[es the C."I'lly's dyinaimics of wc.)r-kf(.)r-(-:e dE?imographics, k�urncwer; and ul�JlizakJor, which influerice thE� effE?CiVE?1`llE?S!:, Of thE? "h..jirnain di1FT1E?1`llSiO1`ll " Of: LCE? wark for-CE?, 7O�."Ibµe 4 depicts the lr0..it.io of re!,-,Iser(E?d by a Si1`1,F,-)11E? IFTILI'llidpi.31 E?1FT1pk.)YE?E? for- LhE? �+ir'E?E? larg,em� -Tu.jnidrx..�ihties iin New Bruinswick, _he tot�..�il 71:. for- SairtJohin irch.jdE?S i311 C."iLy E?imp1(.)YE?E?S, &.1JI'AjOhn FIcAlce ::br-c:e alrcambilrllEa, Marconi has policing SE?r-viCE?S �+irc.x..jgh the RCMPA.ird, 01E?ref "o does nc.)�� irckjdE? nuimbE?rs for- PO[iCE? ill LhE?ir- FIE� :br- coirnp..'irisoin rx.jrposes, LhE? C."odiac I (. :'�"MP Divisioin Lhi.A SE?r-VE.S 1\401111CLO1111 would add LO "0'"1E? Mor"11cd; n esi.:�blis'iirTIE?Illl�':i.�iiiid wald adjum.01E.ir'E?1mp1(.)yE?E? lr�..it.io to 1:82. Sairt.Jc)hn'!:1 lr�...it.io (1:74) is reflectiVE? Of: LhE.' laq,'E? laind ar'E?i.3 SE?r-viCE?d, ain ar'E?i.3 laqIE?r- �+iain bo�+i r-�.?dE?r-ic�':oiiiii.�iiiidl\Aoiiiic�':oiiiicoirTibil[IIE?d, johin's r'E?sour'CE? r-ecjuir-e1FT1E?1`llN as basic sEr-viCE?S SUCh i3S S1111OW CIE?i3rirg, mr'E?E?L -T1i3i1`lltE?1`lli31`lCE? a. 1111. r'E?pa1r-1 Wi.AE?r- irfram,ruch.jre r-ecjuir'E,,irT1E?1`llN, and �,rarlSiL SE?r-viCE?S l r'E?f:1E?C LhE?spread of: populakJoin across 01E? E?rtir'E? Ci Ly I al:Ae 4 IN DEMOGRAPHICS BY EMPLOYEE GROUPS (DECEMBER 31, 2019) i`<-3blE? 5 dE?rnorm�raLE?S 01i.A i.3 I I Of: 01E? C."ity's E.implc)yE?E,' groups ar'E? E?SSE.'11 ]I Lii.3 I ly LhE? saimE.' averag'E? i.3�,'E?, (i,E?, mid--lif:E?), and our' E?impl(.)yE?E?s ar'E? mid--car'E?E?r- iin LE.,rms of: Of: SE?r-viCE?, I X,dl:)[e 5 ::'ur01E?rFnor,e, kala.? C."ity Of: Si3iPLjOhIn haa f:E?imalE? k.o ima lE? rakJoof:15 for LhE? OVE?rall E?IrTlpl(.)YE?E? baSE?, FhE? group, iridudirg, POPI LJ111iO111,i3lO111E? hasa ra�Joa�: 11E1ar-ly 36% f : E?imalE?S, ihiS is i1111 liPE? WiLh SN.AiMks Canada daa, which rE?poas Lhi.A 35% Of: LYa. SE' i1111 F11illli.3�,�ET1IE?1111L occupa�Jors are f:E?imalE., WORKFORCE RETIREMENT ELIGIBILITY. NEXT 5 YEARS A pr(.)jE?dJO1111 Of: 01E? irlu. imb&- Of: E?impl(.)yE?E?S who will have reaChE?d reireimE?1111L i.3�,�E? by LhE? E?rd Of: E?i.Kh Of: LhE? 11E?XL Lhr'E?E? YE,ars is illum.ri.AE?d iin E<ab[E, & Eligibili�y �,o re�Jr'E? is baSE?d oin LhE? aktairimE?1111t Of: i.3�,'E? 65 for- i3ll E?impl(.)yE?E?S, E?XCE?pL prcAE.dJVE? SE?r-viCE.S, WhiCh includE?S fire, pOliCE? i.31111d mallli.3,IETTIE?1111L i1111 LhE?SE? ar'E.i.3S, v may reLir'E? i.A i3gE? 60WhilE? marda�.ory r'E?Lir-eirT1E?111L i.A i.3�E? 65 11110 101111�,1E.,ri3ppliEwa , LhE? daa "LJ ggE?SN i.3 POLE?1111tii.31 i3CCE?l&-a�Join of: �:urnover- beginning iin 2021 and cortinuing k+ircxjgh 2022, I a,dlAe 6 SLJCCE?SSiO1` ]I Pli.3111111 Ili ` 11,� is, LhE?refore, E?SSE?Il ]I Lii.31 LOE?rsure WE? 01E1 ClUi3lifiE?d, ��rai ` IIE?d individua [s availablE? LO fill ViKi.31111CiE?S and l LhE? 'IE?E?ds Of: LhE? orgariza�Join iin �+)E? l 3 5 years, Resigni.AJOIIIS ill SPE?Cii3liZE?d, LE.ChIl11Ci3l r-(.)[E?S i3CCOLJ1`I1LE?d for- over- 2% Of: 01E? h.jr,rover, iin 2018, ihis highlighN LhE? 'IE?E?d for- focusE?d and m.raLE?,IiC m.affirg and dE?VE?lOp1mE?1nit �:O E?rsure WE? are ablE? Lo i.Aft,aC and re'N.3illll 01E? r'E,'SOur'C.E?S 1[]iE?E?dE?d, TURNOVER TRENDS WhilE.' WE? ar'E? Lhi.A fiA�ure h.jr,rOVE?r- ri.AE?S Will likE?ly ircr'E?i3SE?, LhE? following k:a [E? il,kjmaLE?S Lhi.A h.KnOVE?r- Mtdin LhE? or-gainizaLiori is cur-r-el'Itly WE?[[ cortrol[E?d and CIE?arly WiLhill ]I E?m' abliShE?d irdu`' ry i3VE?r-a,1E?S, FhE? V01,urtary PE?r-imarE?1`Ilt E?IFTIPI(.)YE,E? k.urnOVE?r ri.AE? is Ci3lCLJli.AE?d LJSillll�,' LhE? �.o�.al inuimbE?r-of 1: E.,rFna1`IE?1`It ill Idividua[s who rekJred or r-E?Sig`IlE.,d dividE?d by LhE?avera�,'E? PE?r-irTii.�ll]iE?Illi�E?IFTIPI(.)YE?E? hE'adcourt, FhE? NALT'lliCipi.31BE?rchimarkNiE.'Mork C."arada (MNNK.") r'E?poaE?d k+IE? aVE?r-a g'E? volurtary h.jr,rover, ri.AE? i.A 5,68% for- 2017 I I cdlAe 7 Re-tirrarnents "TotA 1-kesignations 10 9 "TotA Vokintary Separation 39 29 641 628 FurnOVE?r r'E?dLJCE?d slightly iin 2019 OVE?r- 2018; hOWE?VE?r-I iL iS E?XPE.CLE?d Lhi.A LhE? 1111u1mbE?r- of: r-E?Lir'E?irTIE?I1IN Will COI10JI1ILJE,' �.o rernaiin over Merly (20) PE?r-YE?ar, i."his cambiIIIIE?d Mti rTRJhJplE? resiginaLions crei.AE?S as C01111SN.31111L 11]IE?E?d for recruihFTIE.'Int and SE?lE?dJOIII, ��ri3illlilll�� IIIIE?W E?irTipl(.)YE?E?S, LE?IFTIporarily filling posiLioinS WhilE? r'E,cr-uibFTIE?I1IL E.ffoas ar-E? 0111�,1011111�.' illld i3ddilllC iI1ICJ'E?i3SE?d workload �.o reimairiin,' E?irTipl(.)YE?E?S, WhilE? E?f:fiCiE?IlllCiE?S hi.M? bE?E?In Imaa. E? iIIII LhE? r'E?cn.V irTIE?I1IL pr-oCE?ss, reducing �.urnOVE?r and reLairirg our'E?XiMJIIII�,� E?irTipl(.)YE?E?s reimairs iimpoftart aS WE? mrikE? LhE? Corr' 'c balaIlICE? bE?ME?E?I1II E?XPE?r-iE?11110E? and f:r'E?Sh fi.3CE?S WiLhillli LhE? orgariza�Jor, STRATEGIC RECRUITMENT AND CAREER DEVELOPMENT Wi 0 1 over- 50% of: our- m�ai rg, d0l' 11E.'O ir-ough ill ILE?ni ral pr-ogr-essioii ii, we 1liZE? 0 IE? i1mpor �,aii ic'e of: gr-omh oppor h.jiniLiE?S and �,r-ainsf:E?r- of: kinowlE?dgE? aimollll�,�SL SE?r-viCE? ar'E?i3S LO C011 r Li r r LJE? Lo irTiov� .?6JIE?ori ,�i.�iiiiizi.��.ioiiii6,(.")wi.�rdso� .jr-goi.�[si.�iiiidobjE?CiV.?S, O. .jr-w(.)r-kf:OrCE?ci.r'�.?E?r-dE?V" .?IopirTIE?Illl�. SYSLE?ims link job aa. vainCETTIE?Illlt LO LhE? iKC]LjisikJoin of: kinowlE?dgE.aind skills, pr'Epar-ing our- E?irTipl(.)YE?E?S for- LhE? SE.r-viCE? dE?imainds of: oimor-row AL LhE? sai-TIE? LiIFTIE?, LhE?SE? SYSLE?Irmi.31SO hE�'lp idE?1`11tify coimpE?LE?1`llC)/ gaps, WhiCh WE? addr'E?SS k+ir-ough mr-aLE?gic r'E?cr-uiLirT1E?1`llL TOTAL HIRES BY EMPLOYEE GROUP A suirnmary of: our- maffiing adJviLy for- 2019, including irlLEr,inal and E?XLE?nnal r'E?cr-uiLirT1E?1`llL ill boJici.�su.ii.�li.�iiiidPE?r-irTii.�ll]iE?iiiik,r,(.")[E?S,ispr-(.)vidE?diiiii i<-3blE?9 our- PE?r-iFfii.�11]IE?Illlk.W(.)rkf:or'(..�E.' iSSi�,IlllifiCiInL in )019i.3101111E?, LhE? (.1'itycoindLJCtE?d'i80 hir-ing pr(.)CE?SSE?S f : or- casua [ or, LE?impor'ary posi kJoii is, I cdl)[e 9 111 �,�E?1111E?ral, WEw hi.WEw a good r'E?SPOIIIISE? Lo our, job POMJIIII�,'S WiLh i.31111 i3VE?r-agE? of: 96 applicarts PE.,r- posLirg iin 2019 FhE? C."iLy Of: Si3i1`I1k..JOh1`II is as iin Imaalrly r-o[E?S, ill paaicul,ar [abour'E?r- and ski[[E?d ��radE?S POSiLiOIIIIS, WE? had i.31111 i3VE?r-agE.' of: 137 applicarts PE?r, pomJrg for- our pE?r-ima1`IE.11`It ou�.sidE' wor-kE?r- pomJrgs iin 2019, i.31111d OftE?in r-E?CE?iVE?d OVE?r- 200 al-pplicarts for -casual r-o[E.S ill k+ds workgroU. p, Our prii-Tiary r'E?cn.A�iFT1E?1`IIt Chi311E?1`II�,1E?S are for- mor'E? SPE'dalizedmari.3��E?IFTIE?rt r-(.)[E?S SUCh i3S plail III[ Ili 11 11g, �� iand f:i1`IIi31`II1E?, Cl'ardidi.AE.S for- LhE?SE? r-o[E?S E?XPE?C as �:o��al c1.SimpE?1`IISi.AiO1`II packagE? campar-ablE? LO LhE?ir- pr-M.AE? SE?cor- CO11E?i3�,1LJE?s and for- mom� Of: LhE? SpE?1.ii31iZE?d malllli.3��E?rial POSiLiOIIIIS, WE? siimply cal'111111OL i31::hiENE? Lhi& :Iroimo�Jrg and highhghkJrl�, LhE? C."iLy Of: Si3i1`IIt.JOh1`II LoLal coimpE?1`IISi.AiO1`II packagE? and E?Vi.31,Ui.Aillll4",our posiLions ini 01E? OVE?rall markE?L are IIIE?CE?ssary Lo reimaiin cornpE?LiLiVE?, FhE? CJy is coirnmiLLE?d �:o offer-ing SE?r-viCE?S iin bo+i official li.31111�,'Ui.3�,'E?S; hOWE?VE?r-1 SE?curirg ClUi3lifiE?d i.3 1.hi.311E?1`11�,IE?, i""hE?SE? POSiLi011lsare, typically iin froint-4i3cing I SUCh i3S CLJSLO1FT1E?r, SE?r-vicE? and adimirim':ra�JVE? i3SSiSLi.31111N, WE? Of:tE?Illl hi.WE? LE?I-nporary posi�Jors x.o fill iin for LhOSE? 01111E?i.M-', i3dJllll�� ill i.31111001E?r- r -(.)[E? Wi0lilill LhE? orgariza�Join or for- SPE?cial pr(.)jE?CN x:o bE? coimp1E?LE?d, LhE?SE? LE.imporary posiLions Of:LE.'1111 �.akE?S Si�,11`IIif:iCi31`IIL r'E,sour'CE?S i.31111d Lii-TIE., FhE? 011111y E.XCE?pLiO1`II is Mti ourcasual ou��sidE? workfor'(..�E?, �ypically duriinl�,' 01E,suim11"11E?r- mO11111+1S, WhE?re WE? OftE?in have as laq,'E? Pool LO SE?1E?1:.x. frorn and as WE?11--E?m" ab1iShE1d r-cm.ftiIIIIE? for- hiring, AHIOUgh WE.' hi.WE.' a1111 adE?CJLJi.AE? respoinISE' LO our casua[ or LE?imporary POMJIIII�,'S, LhE?SE? r'E?pr-E?SE?1`IIL LhE? majori�y of: our m� affirg recjuisi�Jors, E?i.Kh �akirg,oin i3VE?r-agE?, 45 days ��fill, EMPLOYEE TRAINING AND DEVELOPMENT [:imp11.1yE?E?S are pr-ovidE?d w 0 various k:rairirg opporh.jriLiE.'s rainging, froim S1,aE?1.ii31iZE.,d Si3f:E?Ly cour'SE?S i.31111d prograims �'o rerch ft -airing and SUPE?rvisory and E?ad&-ship cour'SE?S, in 2018, LhE? C."iLy Of: Si3ir1k.j1. hin par-b`IIE?r'E?d WiLh SE?HJE?irT1E?1`IIt i.3��E?11116E.S Lo providE? C 'u I �. u ra I (.1'OimpE?LE?1`IIC.�y Fil'i.3 ill lill 11�,"L0 `IIE?i3I"1y 90% Of: 01E? w1.1rkf1.1r'1:E? as pi.wOf: 01E? C."iLy's :(.)pLJ1i.AiO1`III Gromh AdJoin :'k.31111, FhE? kRAICh Of: i.31111 01111[il[IIE? ft -airing, plafform has pr-(.)vidE?d i.31111 E?XCE?11E?1`IIt i.31LE?r[IiAive Lo classroam E?arnirg, i3l,[OWillll�,' E?irTipl(.)YE?E?S Lo rE?CE?iVE? LhE? IIIE?CE?ssary ft -airing oin LhE?ir- owin a sCheduIE?, Thisisr-E?f:IE?CLE?dill t+Iesignificart decr-E?i3seill Costsfr-oim2OlDto2[D9,phimari|s duetofEvvertrzve[-reIi.ted costs VVe will be innp[ennenIJn� a rIIEvvTrave[ PD[icyfnr C."itY +The totalcos of:rainingIncludes all eal:ectraveLconfeencefees, mem6eshipassociation TheC]tvofSi3intkOh1`IIiscmtIe[(.)m/erlldforirxesti-Terlltill IE?annngand deve soeriidin�,, vvhf$789pereirT)pl(.)meein2Ol9,which inch.jdesreli.tedtrzve[costs not tYpical|sinc[uded intIe-Tetrc. VVhert'ave[costs a�� tIE? avera�,'epereirT)ol(.)meedr-ops to$579 The C."oriif:E?rence Board ofC."anada reports t+Ie avera�,'e [earning and deve[opnnent Cost per ennpI(.)Yeevvas$889in2017 Niotabk/tIenunnberoff�r-aining, cam PIE? Lic]IS for- C."itYennp[(.)yees increasedsignificantly in2[D9duetonevvinterna[cour'Seofferingsand requiredtraining,fnr a[[ ennp[(.)Yeestfinough tIeon[ine p[at6nrnn |naddhicmtoan in�,'eirT)o�'iasiscmsu000rdn�,�car'�.erdeve as iousk/ disCussed, ourtraining and deveIopnnenteffoas will be cerIItered upor IE?veraging staff experdsettinough ardguidedexperienfJa[IE?anningpnogr-aims Exoarlded USE? Of: existin�on[inetrainingsof�vvaretodeve[opand de[iverinterna[training,will resuIL ingreaterre[evanCe,f[exibi[itYand reachinpnogrannde[ivery Anennpl(.)mee surv*?y CorrduCLed ill SePLeimber2Ol9 hi�,Ih[i�,IhLed eIrT)pl(.)mee innE?EXJ(.)f.im �-(.)irTio�.irE,irTip�E�E?S'PE?r-�,o�� itIE? i3bi I iiy LO i3ChiE?+l E? i+IE.ir- ca r'E?E?r- aspir-aiJoins Wit) 011111Y SIX i ` ]I LE?in responding fi3vourab[y A focus for- 2020 will bE? LO i ` ]I LE.'gri.AE? individual dE?VE?lopirT1E?1` ]I Lplars, par ikularly f:or'E.'IrTlpl(.)yE?ES rE?quir-ing Lir-airing i'o mairtaiin prof:E?ssioral designaiJors i.31111d IENE?ra,'E? OPPOrh.jriiJE?S for- PE,rsoral gromh and ircrei.3SE?d pariJIIE?r-ships irtE?rnally. WORKFORCE UTILIZATION RATE AL a sft'i.AE?�,IiC IE?VE?I, itIE? iimpac Of: hE?i3li+I' Sid:E?Ly and WE?111111E?SS prograirnming oin OVE?r-all workfor'(..E? E?f:FiCiE?1111CY and E?ffECiJVE?1`IE?SS is rE?pr'E?SE?1`IILE?d by i+IE? Wor-kf:or'CE? L.ftilizaiJoin :�i.AE? (WLY:�)FhE? WLY:� is calCLJli.AE?d by dividing i+IEw i:oi:al aimourt Of: i+IE? various LYPE?S Of: 111101111 prodUCLiVE? iJIME?, SUCh as vacaiJoin iJi-TIE?, paid sick lE?i3VE?, ft-airil`118, E?LC� LO iJIE? i.oi�a[ hours paid, FhE? WLY: pr-ovidE?S i+IE? LrUE? i3imourlt of: Lii-TIE.' E?irTipl(.)YE?E?S ar'E? 01111 i+IE? job, PE.,rformillll�,' i+)E? dLJiJE?S Of: i+16ir- r'E?SPE?CiJvE., r-o[E?S, as coili LO i+IE? i.oi.al iJi-TIE? paid, WhilE? E?VE?ry irdusi�ry is diff :Er'E?1`IIt, and rT1E?asur'E.'1-T1E?1`IIt WiLhilill i+1E.' SE?r-viCE? SE?Corcain bE? i.3 WLY:� of: 85% is corsidE?r'E?d opiJimal iin mary Ci3SE?S, SiIIIICE? i+IiS is i+IE? firsL uSE? of: i+ds Ir 7C E?asur'E? i.A i+)E? C."iLy, WE? Will iIIIIiiJi.311y bE?rchimark ill 11 LE?ri iially, and E?xpard LO E?XLE?rral bE.'ii ichimarks 011 ]ICE? coimpari.Aors wi i+dii ii i+IE? Imu.Vlr11lcipal public SE?CiDir- iii ii i+IE? Mail iJi-TIE.'s becoi-TIE? availa blE?, I a,dl:)[e 11 Y). EMPLOYEE ENGAGEMENT SURVEY Our IrrlosL iimpoaarit wor-kf:or'CE? Pli.3111111 ]I i ` ll�� i ` ]I iLii.AiVE? of: 2019 was LhE? E?irTipl(.)YE?E' E?Illlgla��E?i-TIE?11 ]I L sur'VE?y, i""his pr(.)jE?C cr-E?i.AE.,d as variE?Ly of: kE?yE?ading, iridicak.ors of: wor-kf:or'CE? p&-for-nallICE? around mor-alE?, cuh:ur'E?, i1lid a.J��udE? i3S WE?[[ as bE?richimarkIrl g agairim. public and priva�.E? SE?Cor orgariiza�Jorl& FhE? iriforma�Joinl YiE?[dE?d Will SE?r-VE? i3S LhE? basis of: fu�':ur'E? prograim dE.'VE?lopirTIE.'1`IIt i1i'lid pir-ii-Tiary aciorsdE?Li3ilE?d i1i'll 01E�, 2020 work plar, FhE? resuhs of: 0iis iriikJakJve are r'E?f:lE?CE?d ini �+IE? r'E.COirTiirTIE?iiiidi.��.iOlIlIS SE.Ci011ll of: �+ds repoft, FhE? C."iLy Of: Si3illlltjohri coridUCLE?d LhE? E?impl(.)yE?E? E?1`II�,1i3�,1E?irTIE.'1`IIt sur-VE?y k+irough Niarri.AiVE? :�E.'SE?arch i1i'll LhE? fi.311 of: 2019 OVE?r- a PE?r-iod of: approxiimi.AE?ly 01111E?morith, 565',, Of: E'ligib[E? E?irTipl(.)YE?E?s resporidE?d, FhE? resuhI s of: k+IEw survey have bE?E.'Illl i31`IIi3lyZE?d and bE?richimarkE?d k.o i3SSE?SS WhiCh areas WEw should focus oin for- iimpr'OVE?irTIE?1`IIL Nii..�rri.AiVE? :\E?SE?ar-c.:h suirnmariZE?d Lha..' r'E,SLJlN i1i'll I'lliIIIIE? I ci.AE?gor-iE?S for- LhE? or-gi31`IIiZi.AiO1`II i3S i.3 WhOlE?, and E?i.Kh SE.,r-viCE? ar'E?a SE?par-aLE?ly OVE.,rall, Niarri.AiVE? :\E?SE?arch dE?LE?r-imiinIE?S i1i'll "[Dmployee Erigagei-TIE?Illlt 1111CIE?X" i3S ShOW1111 i1i'll C'hadl, FhE? C."ity Of: Sairit.johin had reSUIN high&- Oiari �+)E? da�abaSE? avera,�E? Wi0l i1i'll E?IrTlpl(.)yE?E? E?1`181i.3�,IETTIE?I'lit score of: 77 over LhE? i3VE?r-ag1E? of: "74, WhilE? WE? ar'E? PIE?i3SE?d Mti LhE?SE? resuh°. , WE? will aiim ��o ircr'E?i3SE? �+ds I ini fu��ure sur'VE?yS, Ove,r6ghL i1i'll LE?1111 Of: LhE? resporidE?Illlts said 01E?y hi.WE? i.3 hi��h E?VE?l of: coirnmik.i-TIE?Illlt LO LhE? C."iLy. 1:impl(.)yE?E?S also r'E?poaE?d b6li'll�,1 pi3SSiO1`IIiAE? abouworking for- LhE? CJky of: Sairitjohri and looking forward k.o caming Lo work E?ach day, i""hiS high IENE? I of: coirnmih-TIE?1I ]I L aii lid pr-idE? are ShOW1111 i1i'll LhE.' IE?VE?l Of: SE?r-viCE,' pr-(.)vidE?d by our dE?diCi.AE.,d E?impl(.)yE?E?S, As previously diSCUSSE?d, E?irTlpl(.)YE?E? �.rairiirig and dE?VE?lopirTIE?1`IIL i3re areas i1i'll `IIE?E?d of: arreinitiorl i1i'll "LYE. caming YE?ar Ahtiough LhE.,rE? Wi.3S i.3 siginificarit iricrei.3SE? i1i'll "L'YE. availabili�y of: �.rairiirig ini 2019, LhE.' Imajoriky of: resporidE?1111N f:E?lL Lhi.A LhE?y do iniahi.WE? i3CCE?SS k.o oppor h.jl[ Ili LiE?S LO dE.'VE?lOp 01E?ir-car'E?E?r-s, i""his coirTibil[IIE?d wi0i E.SS Oiari 70% f:E?E?l Lhi.A LhEy hi.WE.w ali'll oppofturity daily �.o do whack LhE?y do bE?M� dE?imorimaLE?S LhE? `IIE?E?d �.o iirTipr(.)VE? our'SLJCCE?SSiO1`II pli.311 Iff Ili 11 ll�,' i1i'lid dE?VE?lopirTIE?1`IIL oppor �.ull Ili LiE?S orgaii dzi.Abi ii widE, m Aino+)E.,r- kE?y focus iin 2020 will bE? 01111 COI FTIlMunlicaLion, f : E?E?dback and lr'E?CO�1111 Ili Li011 ll. FhE? major-iky r'E?spoindE?d LhE?y do IrlloflE?E?l LhE?y ar'E? r-eCOg1`IliZE?d for LhE.ir- i3ChiE?VE?1F1iIE?1`IlN Irllor, LhE? OpportuiniLy Lo pr-ovidE? irllpuk:o dE.CiSiO1`IlS Lhi.A Will i3ffE.CL LhE?ir- job, WhilE? k+IE? or-gainiza�Join is going, Oir-ough soi-TIE?Si�,'1111ificall r �� Changes iinckjdillll�,' E?IIISLA-iinga pa0i of: sus��aiinability f or- 01E? fu�:ure, iL is E?SSE?1`Il1Ji3l Oiaour'E?1mPl(.)YE?E?S ar-e kepinfor-i-TIE?d and have muhJPIE? i3Ve1`IlR.JE?S floc, coimimuii dca �Joii r aii iid f : E?E?dback k+ir-ough 01E? pr-oCE?SS, Employee Engagement Index I would recommend my organization'a (D general, at work t feet wm as a good place to ork otivated to do a good job CRA D9 72 CRA Dfi 78 77 74 I feet a sense of Pride In thI feel Passionate about 0 working for my organization hments of my organization accomplis 1411, (D CRADB 73 C RA D3 72 In general, I fookforward to coming to work Avrra,ge of (1,12, 0 3,0, (A 7, rV4 0 8 1H dow goot fioMOADG) Note, oat), 'V%pan dent, mth Oaswero to afl onp9ornent Ondequestdom wep L Ortuded do thi dndc, (,,-, 36,11✓ 14 SECTION 4: EMPLOYEE HEALTH, SAFETY AND WELLNESS ,( )ectioin 4 f:OCLJSE?S 0111 peopi[E? lr-a�+IE?r- Lhzin strt.ich.jr,e, oin �fie E?IFT-lpl(.)YE?E?S who dE?[iVE?r-SE?r-viCE? Lo Lhe coirnininjinity, and oin LhE? OVE.,r-ak he�..�dth and WE?11--bE?i1`II�,1 Of: LhE? wor-kf:or'CE?, i1r-opE?r-ly coinsidered, the irnetrics re��..�it.ed to O..�J)se1F1ItE?E.iS1FT1 iin of: il��s for-ims, induding, sick E?ae and irrjt.jry of (..-Juty (workpi�..�ice a..�iccidE?1111N), ar-E? �aggiin,,g, iindica�'or-s of: wor-kf:or'CE? pE?rf:or-irT1i31`ICE?, E?SSE.'1`II1Ji311y thasoinnethiin,,g, is wroing,, bu�� C. himiLE?d USE? ill LhE? dE?VE?1Op1-T1E?1`IIL of: sokj1Joins. Nevertheliess, LhE.SE? FT1E?asur'E?S help il,h.jmr-aLE? LhE' pr-ob[E?irTi and pr-ovidE? opporlITIfties for beinchirnar-king, Going fow..�ird, our iI`IItE?1`IIL is k.o bui[d a SLALE? Of: E?ading, heahfi,saf:E?�.y and m4iiness bsftE?1`IIgthE?1`r pr-ograimiming, and pr-evention, -�.?ci.�r-(.IiiiiiCh�.�.i.rt!:12&3iSOIllIE?S�.C'IEX.PE 7he ')�..•�iSco fety r j i- ?✓a1m I ?. Soi-TIE? 2019 iinck.ided coinducing, a workpli.KE? ViOIE?11 ]ICE? r-isk i3SSE?SS1-T1E?1`IIt; C. saf:E?l.y m' aindar-ds Omough policy and pr'OCE?dur'E? dE?VE?1Op1rT1E?1nIt; i.31111d E?Illlhi.3111161111�� C. E?fforl"s ill E?i7r1p1(.)yE.E? Sid:E?Ly awarE?1`IE?SS, CORPORATE SAFETY SCORECARD KE?y E?adiing iindica�:or-sof: saf:E?Ly PE?rfor-imainic:e, ci&-ived fr-oim 01E? (."ftys 5-22Saf:E?Ly MiIllli.3�,�ETTIE?Illlt SYSLE?im, ar-e, suimimar-iZE?d ill LhE? (."orpori.AE? Scor-ecar-d ((."haa 2 & ), Wor-kSaf:E? Ir iB adviSE?S Lhi.A or-gainizaLions Lhi.A CO1IISiSLE?1`II1Jy ca r-ry aft LhE?SE? Sid:E? work aciviLiE?S�,E?1111E?r-ally E?XPE.,r-iE?11]iCE? f : E?wE?r-accidE?1`IIN and IOWE.,r-com, s over- Lii-TIE?, ExaimplE?S includE? i3dJViLiE?SSLJCh as Ima lllli.T�E,TTIC_'Irllt i.31111d SUPE?rvisor-job SiLE? ViSiN, Sid:E?Ly N.31ks, wor-kpli.KE? i1`IISpE?dJO1`IIS, and incidE?1`11L ill IIVE?MJ�,�i.Ai011 I& FhE? E?ffE?dJVE?1`IIE?ss lr-i.Aiing ((."haa 2) r-E?flE?CN LhE? nuimb&- Of: i3dJViLiE?S COImp[E?��E?d as campar-ed LO LhE? E?SN.3bliShE?d m�aindar-ds ill LhE? Sid:E?Ly mi.31111i.3�,�ETTIE?Illlt SYSLETTI. ::'ur01E?r-1 01E? C."i Lys dUE? diligE?ll ]ICE? pom':ur-e is pr-(.AE?CLEX.1 by 01E?SySLE?im Sill ]ICE? E?i.Kh Of: 01E? iindiCi.AE?d i3dJVi LiE.S is Ir11C:)` E?,IiSlaLiVe[y r-equir-_d giveii r ai-TIE.ii rdi-TIE?11 IN LO 0 IE? NiEW Br-ui[ rswick Occupa�Joii ral i 1E?i3h+I and Saf:E?Ly AC ([,,BO�i ISA) iin 2014 w iaii t 2 120% 100% 80% 60% 40% 20% 2019 SUMMARY BY SAFETY ACTIVITY 0% immmmmmmmmmmmmmmmm A WHIMIN Mul Mul A--- H WMr INNINNOMM Weekly 80% Man. Job Safety Sup, Job Corporate Safety Inspections Hazard I Site Visits Meetings Site Visits 'ralks Wide 5*22 Activibes 97% 90% 96% 77% 101% 98% 95% iaii t 3 2019 EFFECTIVENESS RATING: SERVICE AREA 120% 100% .............. 80% 60% 40% 20% CP/O A& Corporate Corporate Transportation Growth &Dev Engineering S.) Water Fire Admin Services Wide ss Rate ............ 10 t k 86% 920,6 86% I 97% ........ ...................... . ...................................................... 104% 9546 . ............................................. 95% a ATTENDANCE AND ABSENTEEISM FhE? AVE?ra�,�E? INiu imbE?r- of: Sick II )ays k.abl,E? irch.jdE?S E?i.Kh E?irTipl(.)YE?E,' group and is baSE?d oin I�ypici.ldi.ilywor-kiiiii�,,�'io�.jr-sf:or-I'IE?gr-(.)u.jp,i.�siiiiidici.�k:E?diiiiibr-i.ckE?k�S, sick days PE?r' E?irTipl(.)YE?E? illickjdE,s bo+i PE?r-ima1`IIE?l`IIt illIld Ci3SUi.31 E?irTipl(.)YE?E?S, Our, corpori.AE? i3VE?ra�,'E? days om dUE? Lo sick E?i3VE? is COl`IISiSLE?l`IIt Mti bE?rchimarkirg fram sourCE?S SuCh as Sa�JmJcs Canada repoaE?d i.31111 i3VE?r-agE? of:10 days om� dUE? LO i[IIIIIE?SS PE?r'E?IFTIPI(.)YE?E? for- LhE? AL[artic Canada regioin iin 2019 WhE?1`11 carareaagairm. :lub[ic Adimirisft-i.Aior, SLi.AisLics Canada repoaE?d ain aver-agE?of:143 sick days iin 2019 Whi E? our r-E?CE?l` It E?XPE?r-iE?ll ]ICE? is bE?IOW LhisaveragE?, i�" is urdE?sir-ab1E?, Givel'll 01E? SE?VE?r'E? E?Ffecsof: sick �Ji-TIE? ori producivity, CLJSLOlFTlE?r, SE?r-viCE?, E?irTipl(.)YE?E? Irr1a. ra[E?, and safE?ty, hEahjl, WE?1ll`IIE?SSard a�teii idall ]ICE? FT1i3l`IIi3�,lE?ir11E?l`IItis iYT101111�11 our kE?y ar'E?i3S Of: fOCUS for- 2020, I cd�)[e 12 m INJURY ON DUTY F<-3b1E?Sl3 aind14 pr-(.)fl:i[E? LhE? iimpac of: Ilirju ry a. in I (workpli.KE? accidE.'1111N), Whi[E? our E?irTipl(.)YE?E?S hi.WE? hiSLorici.ffly suffer'E?d f:E?WE?r, lom,--JimE? accidE?I[IN Lhillll LhOSE? Of: OL E., Nk?W Bruinswick rTajinicipaMJE?S, 01E? COS.Of: 01E? C."ity's losL LiimE? accidE?llits have, iinicreaSE?d draima�Jcally over LhE? lamDir' E?E?yE?ar's, resuhJinig iin il[ll LAlif : avour-ablE? preimiuim raLE? for'E?iKh Of: LhOSE? YE?ars, FhE? iincr'E.li3Sil1lg cosN are priimar-ily r'E?li.AE?d LO E?XLE.indE?d r'E?COVE?ry PE?r-iods and reli.AE?d Wi3gE? r'E?Pli3CE?irTlE?lllt COSN, :lr'E?VE?ll0JOl1ll E?ffoas and r'E?irTlE?dia�Joini (Ci.3SE? ar'E? crical �,o reVE.,r-sing, LhE., reCE?l[lit ��reinid of: cosL E?SCi3li.AiOl1ll iin �+ds ar'E?il 0 All informaLioin was pr-(.)vidE?d by WorkSaf:E? NiB, FhE? Si3il`IIL.JOh1II :OliCE? Il:':br'CE? is indudE?d ini LhE? dak:a. FhE? C."iLy Of: Si3il`IIL.JOh1II is il'll LhE? Municipal Goverril-TIE?l[lit illldumry ard, i3S SUCh, WE? ar'E? 4% hi4a",,rhE?r �+iarl LhE? IIIE?L ri.AE? for �+IE? group iin 2019� Whil,E? OUr inuimbE?r- of: incidE?IIIIN hi.3S r'E?dLJCE?d by 16%, LhE? of: �.ii-TIE? E?irTip[OYE?E?S ar'E? ou�. has ircr'E?i3SE?d by 7X EMPLOYEE WELLNESS All pE.,r-ima1`IIE?l`IIt EirTlpl(.)YE?E?S for- LhE? C."iLy of: Sairtjohin and k+)E? Si3il`IIt.JOh1II :OliCE? Il:':br'CE? have i3CCE?SS LOillll IEimpl(.)yE?E? and '<-.1mily AssisLail ]ICE? :lrograim ([D:W:1) 0ir-ough Marulif:E?, i""his bE?1`IIE?f:iL offers shoa-LE.,rim ca. LJl`IISE?1lil`II�l and i3SSiSN31`IICE? for- a variE?�:y Of: iSSuE?S rainging, frorn m:ress and mari��al and filmily pr-ob[E?irTis k:o ref:Errals for- firaincial and E?�,li.31 adviCE?, .� A i S E� FhE? ful,[ com. for- ID:: 'implOYE?r-paid baSE?d oin as morthly preimiuim PE.,ri.3CLiVE? E?impl(.)yE?E?, FhE' Li3b[E?s bE?[(.)W ilkjmaLE? 0 IE'ill Iff ]Ui.31 Ca. SL illIld 01E? uLilizi.Aioin ri.AE?S for- LhE? repoaE.,d PE?r-iods, FhE? (.Jk.y rE?cogl`IIiZE?S LhE? ii-TiporNallICE? illId il-f1pi.3C Lhi.A OVE?r-all hE'i3h+l and WE.'IlllllE?SS hi.3S 01111 E?irTipl(.)YE?E?s bo+i a�. work and a�. hoi-TIE? ard, k+I&'E?fore, suppor �.s as ralllls,'E? of: r'E?li.AE?d prograiars, AS E?xaimplE?S, as C."iLy E?irTlpl(.)YE?E?S Ci.31111 Li3kE? adVi.31111N.3�,'E' Of: 01E? variE?ty of programs illIld f: i3d li LIE'S availabl,E? i.A LhE? Cl'ilnada Gai-TIE?s AcluaLic (.l'E?rtr'E? i.A as corpori.AE? ri.AE?; RU Shoclinics ar'E? or-gall1liZE?d arinually ak: various locakJors for- i3ll E?irTipl(.)YE?E?S; illIld LhE? C."iLy Pli.3YE?d as kE?y r -(.)[E? il'll proi-TioLing BeH Let'sFaCk iin 2019 wiLh a Rag raising and a inuimbE?r- Of: i3dJViLiE?S and resour'(..�E?S pr-(.)vidE.,d LO E?irTipl(.)YE?E?S, 19 SECTION 5: LABOUR RELATIONS The C."iLy has bing, recoginized LhE? iffiporV..�vnce of for -ging resPE?d1:LJ1, mu�,ui.ffly bE?1`IIE?f:iCii31 lr-(..'hli.Jonships wit[ � itS ENmpk.)YE?E?S, iinck.jdrn,1j,>, itS 111 r i0111iZed wor-kfor'C�E?S and LhE? r-E?prE?SE?1` r Li.AiVE?S: C.A.-TE L(:)c..�d 18, ()�..jtside Work(..��rsl- C.A.-TE Local 486, linsidE? Wor-kE?r-s; and Saiintjohin ::.ir-efighLE?r-s A::J:� 77L hr Wir"h 0-1Ew unions, we rmplETTIEN11ILE?d pr-ogr-essive -TIE?�+iods of: col-T11-TRAllicaHoin �..�Iind dispr.jte rE?SOlLJti01F1I, rF1ckjdin,,,, the adop�Join of: mu�,ua[ irlILE?rem� pr,(.)CE?SSE?S, WhE?r-E? We hO..�ive collabor-aLE?d oin nuimbE?r- of: ir Iff 1IOVi.AiVE? wor-kfor'(..�E? irriLii.AiVES Lo incr-ease the effidency and E?FFE?dJVE?1`IIE?SS of serviCE? dE?[iVE?r-Y, and Coll r Li r lILJE? LO ENOIVE? LO 0..�dilow -nore flexiHe O..�und rE?SPOIIIISiVE? SE?rvices. Thr-ough mu�,ua[ iI`IILE?r-E?sL pr,(.")CE?SSE?S, WE.' addr-ess iss�..jes O..�und coincerIFIS 0.)S LhE?y ar-iSE?, i3S by our- SUCCE?SS i.A r'E?SO1Vi1`II�,1 al,[ diSPLAE?S iinterin�..�iky rn the MO YE?ar's. GRIEVANCES agr'E?E?irT1E?ints for- (.,'LY:1[:. Ik..ocal 18, and 11 11::] 771 E?xpir'E?d ill I .,)E?CE?IrTibE?r- 2019 and L'wAll i1`I[lLL -iI?loLiaions arE1 LAIdE?ray riE?V3ICE?S fiE?d il hE? Pi3SMO YE?ars hi.M? bE?E?n rE?SOVEdIrEgg ill 11 LE?ni iially, ImaIny Of: WhiCh i.A LhE? fir-mor SE?coind SN.3gE? Of: LhE? pr-oCE?SS,lt is nl�. ab[E? gr-iE?Vi31`IICE.'S f:i[E?d dE?cr-E.,i3SE?d by 57% iin 2019 SECTION 6: SALARY &BENEFITS TI ne C."iLy's sabry and beinef its pr-ogr-aims a.�ire a.'lirnoillg a.jr- Imost innpor Laint i':ools for- SLJCCE,SSfi.J I [y coimp)eLiing iin bead , mgbIlli.31 and nabcxw..�drn�.."ir'kE?N, Lo ailr'acL and r-ei�aiin i:opi�a[E?llllt' -FhE?(.'iiy's 0 . COI PE?lllSi.AiOl1lpackagE? �..�und to provide fir!:t-r�..i.t.e !:eMce to a..jr C0lFTllFTKJll0.-,y9 L La I FTI pr-ovides a. stra..�it.egic [hi.A WE? cian aind shou[d IENE?r-a�,'E? lmor'E.' E?ffE?CiJVE?1y I.X3N.3 illll -i"<'-3b1E?'i7 indudes the , ')..idintjohini Pc.)hce Force, $61,238,565 $62,224,866 $89,992,427 $91,509,934 $156,090,793 $160,257,783 39 23% 3&83% 5765% 5710% 'Fbi�al Salary includE?s overiJIFTIE?l rE?ft'c)--i3CiJVE? pi3y, E?ar-ly r-eiJr-eirTIE?int bE?111E?f:iN, E?llliJiJE?d paycx.ji°s Upol[li r-E.,iJr-E?irTlE?lllL or, LE.,r-1millli.AiOl1l, E?irTlpl(.)YE?r- cointr-ibuiJoins for gr-oupbE?111E?f:iN, IID, C ]:l:' ' PE?IlllSiOlIll illrd SPE?Cii.31 PE?IlllSiOlIll Pi3ylFTlE?lllN E?ClUi.31 i�oW% Of: E?Iigib[E? Wi.3�,1E?S in, addiiJoin i�o baSE? Si3lary, t is Irlla. i�ab[E? fr-oim i"'< -3b1 (aind showin iin C."haft 4) itiai, 57% of: i+)E? C."iLy's OPE?r-i.Aiing budgE?L is coirnmiiTE?d LO i+)E? wor-kfor'(..�E? iin salary and bE?111E?f:iN, t is i.31SO 11110N.NE? itiaiiindir'E.0 COSN Of: E?impl(.)yirTlE?lllL, including inveshrTIE?l[lit illll E?impl(.)yE?E? i.r-aiiniing and dE?VE?1opirTlE?lllL pr'c)gr'airTls,ar'E? E?xdudE,,d, FhE? over -al[ aimount Of: Wi.3�,'E?S i3ind bE?111E?f:iN fuindE?d fr-oim i+)E? C."iLy OPE?raiJing, budgE?L is acui.ffly Imuch high&- WhE?1111 coinsid&-iing our-subsidiE?S LO IMaaany Of: i+)E? as ,lE?lllCiE?s, boar -cls and coirnmissions pr'E?doimillli.AE?ly fund Wi3gE?S, a .• 201[1 open atiiig()u(.1cgetbyexpeiise $160.2 million SALARIES& BENEFITS ABCs& GRANTS PENSION &x LTD GOODS& SERVICES FISCAL CHARGES OTHER INFRASTRUCTURE 0 33, F 7 o 11 1 Sdl I[ ies, benel its an<l I wt 1001 paymo its) I , todelivek theseivicesof the City. 2019 SALARY & BENEFITS: SUMMARY BY EMPLOYEE GROUP FhE? following f:ab[E? (F<-3b1E?l8) pro" idE?S f+)E? disf�ribufJoin of: salary and bE?111E?f:iN Pi3ylFTlE?lllN i.:IFTIOI[li�,1��'IE?(."i�.Y'Swor-kgr-(.)�.jpS, �""�'IE?E?f:f�.?C��Of:SPE?Cii.�IPE?IlllSiOlIllpi.�yirTIE?Illll.S(.)f:'117%of:bi.lSE'Si�li.�ry isrof�ab[E.', C01MIFTli L LE?d LO f+lE?SE? workgroups, lcd�)le]8 �x"46Z 795 �) 12 354 749 $11,68B,499 $17,36808P $1,956,42f: l9% $23,351,331.�,$4,730,420 $2,645,985 26'�'/,, $14,378089 1)2. 1177,31696 III I uu I milia ILII ��IIIIIw � IIIIII VIII 111111 III II III IVIIIII��I UIII�I�IVII III 'Casuals only cua I if y for a 1�)ension under sj�)ecific circurnisrar ices. $2,407,710 24% I 22. 2019 OPERATING BUDGET: TOTAL SALARY & BENEFITS Ma naget n c If t Non -Union I Sly') Locat 77 1 /Hokidav Reftef 201%n v Association 2 4 "V'a 2019 BASE SALARY BY EMPLOYEE GROUP AND PAY BAND F<-3b1E?Sl9--30 pr-(.)vidE? a mor'E? grainiu[ar- ViE?W Of: Si3li3ry da��a, i[kjm�ra�Jinig LhE? dim�ribu�Joilli of: E?irTipl(.)YE?E?S WiLhillll pi3y bards and LhE? i3SSOCii.AE?d salary iimplica�Joinis forE?i.Kh IE?VE?I, All iiniforimakJoini repoaE?d i3S Of: E)E?CE?imbE?r- 31, 2019 AVE?ra,'E? salary and imaxiimuim LoNal salary iinickidE?s baSE.' salary iin addi�Joini LOOVE?HJimE? for- LhE?yE?ar-, FhE? # iin bard r-epr'E?SE?llll N E?very c)l1lE? paid iin pay bard dur-iing 2019 N�oLE? Lhi.A SOIFTIE? ar'E? paaii.31 YE?ars &JE? LO LE?rimiriaLioin or 1111E?W hires durilini�ll .L Y1'..' YE?ar', '). 3 CITY OF SAINT JOHN CUPE Local 486: Inside Workers FhE? Il I[ ISidE? Wor-kem E?imp1(.)YE?E? gr-oup irc[udE?S is ri.rg'E? Of: pr-ofE?ssiors fr-oim bui[dirg i I[ ISPE?Cor-s i3111d E?111�,1i111E?E?r-irg ��E?Chl[11010�,IiSN, ChE?imici.�[ LE?Chl[11010�,IiSN, i.�dimirim�ri.��Jve, i.�ssim.i.�rtsi.�rd fillli.311110E? CIE?r-ks wor-kirg, i1111 i311 SE?r'ViCE? i.�r-ei.�s Of: LhE? C."iLy. FhiS E?1FT1P1(.)YE.E? �,Toup i.�r'E? FT1E?imbE?r-s of: (.1'LY:1[E [..oci.�[ 486: rsidE? Wor-kE?r-s i.�rd hi.M' i.� cur-r'E?111L CO11E?dJVE? i.�gr'E?E?1FT1E?111L E?ffE?dJVE? fr-oimji.�rui.�ry 1, 2015, LO1.1)E?CE?1FT1bE?r- 31, 2021 I cll:)[e 19 $37,61'56 $41,303 Only Casuals in these uoui�)s ).4 $41r.5173(13 r- .)84 17 $44,077 $11,240 $7,493 $62,810 $72,031 $49,786 $8,768 $73,1r.,)00 $61,616 $ 4 ,i%% r,97I 7 r64 $14,067 $9,378 $78,608 $71,8615 S64,766 24 $64,81r.52 ")1F'>,,r:537 $11, 02. Ir.,) $92,414 $86,604 ` 63,264 69,7 Ir.,) Ir.,) iii $7).,)93 $18,431r.,) $II,I90 $103,018 $98,143 �67,71r.53 74,744 20 $68,72.(13 17 $11,684 $97,937 $81r.,),404 ).4 CUPE Local 18: Outside Workers The(]utsideVVorkerennpl(.)meegroupinc[udesski[[ed[abourno[esinavarietyOf: sen/ice areasrangingfr-onnParksandRecreations,Pub[icVVorks,&1ateria[sandF[eet&1ana�ennent and Saint]ohnVVatec Ennp[(.)Yeesint+isgnouppnovideessentia[serviCessuChassnovv rennovaLsanitation,vvaterandvvastevvatertreatnnentandnnaintenanCeof: our- parksand recreationfi3d[ities, Ennp[(.)Yeesint1isgnouparennennbersof: Loca[lDandarecover-ed by a Co[[eCtive agreennentthat vvas effedive fronn]u[y l, 2014, to DeCennber 31, 2019� +Foemanand OperatorsinLevel 9Swork ana66idonai30minutesper clay. � �E.) 374 9 $r.�7 14�73 $ 9,7S $Bl4�5 $60,)48 �2�B7 ".)S3'B0 lB $Sl9B $14769 $9,846 $B2,B@ $64]07 $2. 6.S4l� $6174S $S74S $10,497 $87,987 $71,067 $Z7Zl �S6'S97 30 $14,9715 $9,983 $83'6E1 $64'678 $2788 $S7,990 60 $62,487 $11E.5,934 $lO'f2.3 $89,044 $E1768 $2. B�SS 7 $f2, 4S4 $lS�2. 6 $10'617 $88,997 $84'E.5 7� $2.924 $60'819 46 $89,349 $17,684 $11789 $98'823 $104'384 $2990 $66'079 7 $73'033 $lB'f2.3 $12/16 $104'07). $81E.51198 $30S9 $67,604 Jl $637S9 $l6').S8 $10'839 $90'81E.56 $70]90 $ 3 12S $89,063 S $68,424 $17,448 $11'632. $97,S0S )711'251 $ 32. �fJ $72'068 29 $79,442. $2. O'�SB $13'1E.5015 $113'I015 $110773 +Foemanand OperatorsinLevel 9Swork ana66idonai30minutesper clay. � Saint John Firefighters 1AFF 771 i"T)E? Si3i ` ]I Ljohri ::'ir-e SE?rviCE? hi.�s beE?1` ]I OPE.,r-i.Airg sii`IICE?'i786, SE?rvic:es pr-(.)vidE?d by LhE? ::�ir-ef:ighLE?r,s iridudE' f:ir'E? r'E?SCUE? i.�rd suppr'E.SSiO1111, LE.Chrici.�[ r'E,SCUE?, hi.zi. r-dousmi.3 LE?r-ii.IS E?i-T1E?q,1E?1` ]ICY r-eSP01111SE?, f:ir'E? pr'E?VE?1`II1Jo11II, f:ir'E? it IIVE?MJ�,i.Ai011 ii i.: rd-TIE?dici..[ fir-." r'E?spordE?r-, [:impI(.)YE?E?S ill LhiS gr-cxjpi.ir-e, irrlETTiber-s of: k+IE? II:':'ir-c.?f:ig�'lk.E?r-s'Associi.�k.ioiiiILoci.[ 771 i.�rd i.�r-e cover -ed by i.3 COIIE?dJVE? i.�g,r'E?E?1-T1E?1`IIL Lhi.3L Wi3S E?f:f:E?CLiVE? fr-oim Ji.urui.ry 1, 2015, LO E)E?CE?imbE?r- 31, 2019� 1 cdAe 21 103,809 9 $10".51186 $30,820 $17,882. $11'.53,888 $106,839 $101,347 $2.9,69".5 $17,)).9 $148,). 70 $149,91'.59 96,889 29 $99,41'58 $2.9,141 $16,908 $14".5"E507 137,592.. $9').,)71'.') 60 $91,1'544 ".)2.6>'(82.2. $1.`.>,.`.>62. $133,92.9 $108,)7). $87,661 E, $86,464 $).,E.,334 $14,699 $12.6,496 $87,306 $78,434 4 $70,871E.,) $2.0,766 $12,049 $103,690 $ 7 E.5, 4 62. $64,1E.,)93 4 $61,199 $17,931 $10,404 $89,1E.5315 $61E.5,4151 ' Fhe fringe ral:e for Pro :ec hve Sery ices is higher :o ref I ec I- I: he Increase 1�)ension con I: ribu I: ons. '6 Management/Professional g�-cxjp i.�r-e i.3 II E?IrTlpl(.)YE?E?S Who w -e roL covered by i.3 CO I 1E?dJVE? i.gr'E.'ETTIE?1`11L FhE? R.?? -Tis i.rd ClbrdikJors of IEE -rip loyi-TIE?1111t, li�M� updi.AE?d i.�rd i. ppr-oVE?d by Clbi-TwTiori C."ourcil or Apr-il 8, 2019, COVE.,r- LhE.SE? E?IrTlpl(.)YE.E?S, [:i-Tip1(.)YE?E?S i1`11 k+ds gr-oup irch.jdE,' SE?rJor- posikJorssuch i3S LhE? City iFnilrila3�,�E?r- coi-TwTiiSSiO1`IIE?r-s, fire ChiE4, ciky sohcik.or-, i. rd coi-TwTiori CIE?r-k, OLhE?r- Fflillli.3�,ETTIE?rt r-o[E?S "vary fr-o1-Tl OPE?r-i. �kJors I li.3,'E.,r-s, plill Iff IIE?r,s, fill li.�11 licii.�[[Tli.11 1Ii.T1E?r,s i.�i[ iid LE?Chll IiCi.31 E?11 IIE?E?r-iii lig I li.T�E?r-s, :�O[E?S Cli.3SSifiE?d i.ss1:1r-of:E?ssiori.[" ircludE? LhOSE? k. a k. do Ir ohiwe dir-ec SUP&-visory r'E?sporsibiMy i. rd hiwe bE?E?ri dE?LE?r-iiTfl1`IIE?d cli.3SSifiE?d i.s ror-uriori dUE? LO LhE.' ri. n.jr'E? of: work (, I TQ ') E-1 7 (,K.)A TZQ 11 (,'Y') 7 E-1 Y (, r") (, 'Z E-1 ' )Q Q 70A $11'51,724 $167,47".5 1 $164,884 $42,04".5 $28,030 $234,960 $164,884 $137,642. $11'.51,933 6 $1.r.'),).98 3 $39,091 $26,061 $2.18,449 $110,".56".) $ 0 62. 16 `11)1,5 . 0 $30,988 $2.0,6158 $173,166 $140,430 $96,166 $111,961 1). $108,392. $2. 7,640 $18,42.7 $11'54,41'58 $89,07".5 $98,31".5 13 $91E.511(84 ".)24,272. $16,1(?1 ")1:S,E5,6'37 $82,842. $91,438 28 $89,449 $22,809 $11'.'),)06 $12.7,464 $100,960 $76,396 $84,347 11 $81,482. $20177(13 ".)13'(13,152 $116,111 '.7 Non -Union Administrative [,,bri Uriori AdiTiirisft-i.AiVE? SN.3ff illICILAE?s r-(.)[E?S SUCh i3S E?XE?CLAJVE? i.�ssisN.�rt, huiTii.�ri r'E?sourCE? i.:�&Tiiri°"~ r,i.:�Lor, i.:�rd i.�&Tiiri°"~ r-i.:��JVE? i3SSiSLi31`llL i1`11 LYE? CiLy SO[id�.or`s OFFiC., F EhE?SE? r -( E .)[?S Pn E?rforr dLAJ?S s EiirTi. ii1�r- irl r i ��o isor idE? w-kE?r-S, hOWE?ver-, i.�r'E.E?XCILAE?d f:r-(.)irTi LhE? uriori bi.�SE?d ori Coll llfidE?1` lltii.3[i Ly i.�rd OiE? ri.� ur-e Of: LhE?ir- work [,,bri uriori f:0110WS LhE? Pi3y Ki.. of: CLY:1:'Loci.�[ 486; hOWE?ver-, i.r-e' cover -ed by R.?rTis i.�rd (."or&Jors of: [:.i7Yip1(.)yiT1E?1`llL 01i.A WE?r-e li.mi.ppr-cwed by (."ourci[ ir, Apr-il 2018, 1 cl)[e 23 $54,277 r,97 11I. '.>60,001 $11r.,,300 $10,200 $8r',r'O'). $60,001 $64,766 1 $63,91r.,)). $16,308 $10,87). $91,131 $63,91r.,)). SAINT JOHN TRANSIT COMMISSION $2. 6.9 `a.`.')0,1,!.`.>) $111,341 $60,(132. $68,1'.')86 DD1218 $2. 9.4 $ 61 J 6 61 $ 7,4,E.') 0 $12,639 $70,088 $76,144 $19.33 $40,206 3 $32,144 $7,07). $ 39,). 1 IE.,) $39,374 $32.30 $68,)).4 13 $62,994 $13,81E.59 768"1 $76,988 $32.30 $68,)).4 $,E.,)9,86). $13,170 $03 2. 73, $61E.5,9151 $2. 9.4 IE.,) $ 6 1,). IE.,) 6 $62,743 $13,804 $76,1E.547 $64,178 110101010101= $87,09".5 $14".5,339 $91,264 $2.0,078 $111,341 $108,488 $60,(132. $13,)07 $73,239 $61'.),071 1111111111111 11111 '0F0 included in Managernenl:, 1�)osihon funcleci l'.')O',/,, by Sairflohn Fransill: and Sr: hl: John Parking Cornir-nission 28 SAINT JOHN POLICE FORCE Saint John Police Association I cd[e 26 $94,627 110 $104,990 $30,762. $17,848 $11'.53,600 $137,671 1 $106,81".5 $31,297 $18,1,'.')9 $11'.)6,)70 $106,8115 Fhe fringe rale for Prol:echveServices is higher :c) reflecl- :he increase 1�)ension cc: wribuhons Saint John Police Force Management I cd�)[e 27 `137,6I.. 4 $11'.51,933 1 $134,037 $34,1(82. ".)2.2,T88: $191,017 $134,037 $ 110,".56".) $ 0 62. 62. 6 $31,270 $20,846 $174,74 2. Y)." 342 $96,166 $111,961 6 $100,849 $).,'.'),717 $17,144 $143,710 $117, 1'.') 16 $89,07".5 $98,3115 $82,842. $91,438 4 $62,911 $16,064 $10,709 $89,769 $ 7 9, 1'.')'). 7 $76,396 $84,347 $66,911 $17,062. $11,37".5 $91'.),348 $66,911 29 Saint John Police Force: Inside Workers CUPE Local 486 1\AE?i-T6E?r-s of: CLY:1:'[..oci.�[ 486 wi Lh LhE? Si3illlit jOhli'll :OliCE? If':br'CE? irickjdE? POSi LiOIIIS il[li k+IE? i.�di-TiirisLr,i.Aive suppoa i.�rid SpE?Cii31iZE?d posi{Joris iri cr-ii-Tiirii.�[ i.�r-ei.�s such i.�s ViCii-Tl SE?r-viCES i.311 lid ExhibiNi.�rid :'r-opEOy (."oritr-ol, I cll Ae 2( S $33,614 $36,802. OnIv in $41,697 $4,'.),793 7 $ 31'..'),862... ' $9,141'.) $6,097 $49,786 $ E. 4177.`.> $,E.,)).,779 $13,41E.59 $8,97). $7.`. ,2..110 '.))..,779 $ 4 1') 7 7 7 E'97 1$2.3,1Y).. $2. 3,1 Y). $ 3,92. 9 $32,9315 $,'.')8,770 $64,766 S67,71'53 S 74,744 $ 77, 1'.') 8 0 $19,783 $13,189 $110,1'51'52 '78 032 Management Public Safety Communications Centre (911) I cll Ae 29 $96,166 $111,961 1 $1071804 $2. 7,490 $18,32.7 $11'53,620 $1071804 CUPE Local 486: Public Safety Communications Centre (911) I cll Ae 30 $49,170 $ 1'.') 4, (1 15 $76,334 $19,461E.5 $12,977 $108,776 $113,084 $68,008 $74,987 4 $97,437 $24,846 $16,1E.,)64 $138,848 $116,702. 0 WAGE INCREASES: 15 YEAR SUMMARY FhE? resul"LiI[ll�,'Wi.3�,'E? Ilrllcrei.:�°"%E,'`'%O" E?r a fif: E?E?'Ir']1,,,YE?ar PE?r-la: d dE?i r'iorll°"% a"f:E,''f':hE? OVE?raa II Ill paa:'f""Oia" rIsIlrllg salary ry/ E,'°"%Ci3li.AiOl1ll, i3S COI lr'ips r'E?d "f:o a.:ol[ll` LJl TlE??r, priCE? IlrlldE? �C. � �> has had 01111 'f hE? C."iLy/s OPE?ri.Ailrllg budgE,'L 1.45, 7 :)..90',,, 7 3.00`,, 7 4.00`,, 7 :).:75, 7 3.50',,, 7 3.: 8,,7 180',,'f7 :).._ 0',,'f7 3.50',,,%') 5 751 7 3.25, 7 ` 75,f7 4.:).6,%') 0.66`,, 7 :).._ 50',%' 0,%') 4.00`,, 7 3.00`,, 7 6 51<, y,, 5.0_?l7 I.46,,7 :).._ 50',%') :)..90',,, 7 4.00`,, 7 3.50',,, 7 75,f7 6.41,f7 215,f) 1751,1 y 2 25,%') .... 7 9T y ). 50',%') .... ) 75,%') 7.14',f 7 742,%') 7.00,%') 2 25,%') 799 y ). 50',,'f7 ....) 50',,'fy.... 7 09',,'f7 7 I4`,'f7 7.00,%') 2 25,%') 799 y ).50',,'f7 ....) 50',,'fy.... 7.05',,'f7 172,%') I._ 01,,11 7 :)..25, 7 :)..96,, 7 :).._ 50',%') :).._ 50',%') :)..01,f 7 of 1,1'.')0 � .�,. 'IriC,.: l.l<::� C r� f r:�i Car�'.> increase < r- 1�`,'�cr fC)r f`rt C I ass Cor irfa,:7 I e ari<:: a wage increase of 31 CPI and Wage Trends (compounded): 2004 — 2019 M 01 4 5 6 7 a 9 10 11, 12 11 14 15 16 17 18 771 BNfek SPA (Pokce0 IM �hiside) -I'*,--- IS gOutsldeq Ma n age 11 le [ t 1118'1 QTr@nsit) — W , CPI knpact R.) put i.1 dol,[i.1r- figur'E? 01111 thE? i3b1.1VE? chi.w., if: LhE�' C."iLy of: Si.,irt.Johri would hi.WE? hi.1d pi.y ircr'E1i3SE?SLhi.A Mi.AChE?d irfii.1 Jori OVE?r- LhE? Pi.3SL 15 YE?i3r-s, il[IISLE?i.d Of: LhE? Si�,Illlifkilllltly �'lig'IE?r-i.1wi.1r-(.Iss�'iowiiii i.1bove, LhE?rTajricipi.1[ity woul,d hiwe siwed i.ppr-oxiirTii.AE?ly $100 rTiilliori ilIll LON.31 Wi.3�,'E?& Ilf: LhE? C."iLy's cu r-r-ert wi.��,'E? E?SCi3li.AiOlIll p0h(..�y hi.�d bE?E.'Illl ilIll E?ffE?CL for LhE? SilrTIE? 15 YE?i.tir-s, SiIIIICE? 'L E? policy dOE.'s r'E?CO,1111liZE?Lhi.A LhE.,r'E? i.tir'E? 1::1r-1:U.JIFTISN31111.E?S WhE?r'E? pi.y r -i. iSE.S coul,d bE? hi�,IhE?r- k+ii.�ri illIfli.AiOlIll, LhE? siwirgs would hi.WE? bEE?Illi i3ppr,oxIlFTli.AE?ly $50 irriillior11 iri 32. SECTION 7.- OBSERVATIONS & RECOMMENDATIONS The Annual Workforce Repor-L 2019 gIVE�'1111 LhE? IIIIJIFIFIi.311-11 :rykE?sour-CE?S E')E?par'L1FT1E?1`IIt i.31111 opporh..jriLy to refiec�-orli a I I i3SPE?CN of the rain,'E? Of SE?r-viCE?S "a EE? providE? k.o ourworkfor-(..�E?, the is 0111" y thE? firststep iin E?rsurirg our focus and dir'E?dJO1111 is a.hgne(..-.1 with those of the orgainizaLioin ian(..1 prioriLiE?S, WE? hi.WE? SUIrnmar-iZE?d kE?y ��'IE?SE?r-�.?coirTilFTIE?iiiidi.U�.ioiiiis will providE?cfirectioin iin.2020for l IIIA SPE?Cif:iCi�[�yWik: 'is�.ippork:i.�iiiid iirTip[E?irTIE?Illl�:i.�k:i011lI k+irough i3ll SE?rvice HEALTH, SAFETY AND WELLNESS KE?Y&SErva6Joins oin �+iis are�..i iinck.jde: • FhE? nuimb&- of: "L.osL-1JirT1E? incidE?I[IN" is high i.A 24 • AVE?r-agE? nuimbE.,r of: sick days is high i.A10& • Group bE?1`IIE.'f:iL COSN E?XCE?E?dE?d cortribukJors by $300,000 iin 2019 I A fOCUS 01111 E?IFTIPI(.)YE?Err hE?i3h+I, saf:E?�y ard WE?111111E.SS illickidirg, accidE?Pit pr'EVE?1`II1JO11II Lhrough irrovi.Aior, colla borakJoin i.31111d ft-airding, should redUCE? iimpacs of: IOSL LiIFTIE? iii icidE?11 11 N aii iid sick days, Z FhE? Workfor'(..�E., L.ftiliZi.AiO1111 :�i.AE,' Will pr-(.)vidE.' iIIIISighL 01111 01E,' SUCCE?SS of: iri�Ja�Jvesaii-TIE?d i.A hmproving, producivi�y and firding bE?LLE?r' ways LO FT1E?asur'E,' and ��rack pr-ogr'E?SS, improve,i-TIE?1111N i1`11 E?impl(.)yE?E? hE?i3hh, saf:E?�y and WE?111111E?SS, including accidE?1111L prevertioin i.31111d i.A LE?ii idall ]ICE? are kE?Y, 3� Maintaining a sum�airab[E? group bel'IE?fiN pli.31111 Oia�� rT1E?E?N LhE? curreint and fu�'ure IIIE?E?ds of: our wor-kf:or'CErr and reJrE?E?S, is E?SSE?1`II1Ji3l, :SE?gular- r'E?ViE?W of: our cortribu�Jori raLE?S, provid&-sard bel'IE?fiL lE?VE?lS by 01E' C."Orn-fliftE?E? Will E?rsure sum` airabilfty Of: LhE? plain and plarring, k�owards POLE?rtial fu. ur'E? iimpacLs, m EMPLOYEE ENGAGEMENT OVE.,r- 56 % Of: LhE? wor-kf:or'CE? r'E?spordE?d LO LhE? 2019 [:impl(.)yE?E? Survey Major findings are: • A high IE?VE'[ of: coirnmik.i-TIE?1111t LO LhE? C."iLy fram E?irTipl(.)YE?E?S (8 iin 10 r'E?spordE?1`IItS), • Scor'E?dhighE?r- (77 %) oin LhE? indE?X"Lhi.31111 LhE? da��abaSE? i3VE?ra�,'E? ("74 • SE?VE?1`II il[li LE?1111 E?irTipl(.)YE?E?S i.:�gr'E?E?.LC E?y ar'E? coimpE?1`IISi.AE?d fi3irly. •Eimpl(.)yE?E.S SE?E.,k addikJoral prof:E?ssioral dE?VE?lopirT1E?1`IIt and Lrairing opporturiLiE?S, RECOMMENDATIONS WhilE? WE? ar'E? PIE?i3SE?d Mtl LhE?SE? r'E?SLJlN, WE? Will CE?rtairly ahm Lo ircr'E?i3SE? E?IrTlpl(.)YE?E? E?1`181i.3�,IETTIE?I[It and sa�Jsfi.x:�Jori �+Ircxjgh OmE?E? i1`IIiLii.AiVE?S iin 20M I Ain Ernpl(.)yE?E? :�E?CO�,=IlflLioin :Irograim will prc")IFTIOLE? and E?1`IICOLjr-agE? regularard C0111ISiSLE?I[It f : E?E?dback and CE?lE?br-aLE? SUCCE?SS i1`11 i3ChiE?virg, resuh°s, I all ii-Tiproved E?impl(.)yE?E? digik�a[ coiFnmurIiCi.AiO1`IIS i1`IItE?r-f:i3CE? will pr-(.)vidE? US WiLh LhE? abiliky k�o quickly and E?Ffecive[y coirnmuriCi.AE? WiLh i3ll E?irTipl(.)YE?E?S, �,IiVE? us a mE?diuim LOsh(.)WCi3SE? our-SLK..K..�E?SSE?s, pr-(.)vidE? iIIIISN.31111t, COIIIISiSLE.'Illt FTIE?SSi.3�,�irg, and i.31,10W E?irTipl(.)YE?E?S Lo coii ii ft -i bu LE'. TRAINING AND DEVELOPMENT FhE? )'isL CE?rtury workfor'(..E.' I bE,' E,'CjLJippE,,d �:o adap�� k.o LE?Chl11010�,y and SE?r-viCE? dE.'Ifflilrds, KE?y firdings iin k+ds ar'E?i.3 irch.jdE?: Ernpl(.)yE?E?s respordilll�, LhE? E?impl(.)yE?E? E?1`II�,1i3,1E?irT1E?1`IIt SUrvey do nc)�f:E?E?l LhE?y hi.WE? k� airirg or dE?VE?lopirT1E?1`IIt Lo suppoft LhE?ir- ca r'E?E?r- goals (6 irlO r'E?spordE?1`IItS), (."omof: k.rairirg and dE?VE?lopirT1E?1`IIL PE?r- C."iLy E?impl(.)yE?E? iS Si�,I`Iifkillltly [OWE?r- �+iain LhE? i3VE?ra,'E? pr-ovidE?d by k+IE? (."oii if:E?rell ]ICE? Board of: C."arada ($579 vs, $889), FhEa inuimbE?r- of: k.rairirg coimplE?LiO1`Is ircr'E?i3SE.,d significantly iin 2019 dUE? LO LhE? USE' Of: "Si3f:E?Ly Il h.Jl)" LhE? C."iLy'S 01111[il[IIE? k.rairirg plaHbrrn FhE? C."iLy'sllli fillldi.31 a. Yah 11E?1`11�,IE?s dicaLE? rem.rairt iin all areas Of: SPE?rdirgl, FhE?refore, a m.raLE.giC approach E?VE?r-i3�,1E?S LhE? kinowlE?dgE? WiLhillli LhE? workfor'(..E? Will hE?lp us fuahE.,r dE?VE?IOP 4 eirT)pl(.)mees Mary kp?yooshorIISattheC."iLvOf: Saint]ohnrequire ora[desonators (e4�,', e1`II�,1i1`IIeers,vvatertreat1FT)e1`IItoperators,p[anners,accourtarts [avvYers,teChno[o�,IirN) which diCtate training requirennents for nnaintenanCe and Certification, I nvo[vesupen/isorsand ot+Ierennp[(.)Yeesinthecreationof: divisional and sectiona[ work plans indudeindividual goa[sand deve[opnnentopportunities, 2, Pnovideennp[(.)Yeesvariousoppmrtunitiesfor- trainingand deve[opnnentt+Inough job nztation and partidpation on speda[ pr'qeCtsvvhere possib[e, 3� ("ontinuetoexpandontheofferingsprovidedt+inoughtheon[inetrainingp[at6nrnn, ATTRACTION AND RETENTION TR.Aal coimoe?1`IIsato1`work erwinorl-Ter11Lar11dorgarizatora[ repuN.Aioin are arnnoing'themost innporLanttools for- suCCessfu[|s connpetin� in local and re�,Iiona[ [abour nnarkets�R.)attrac and re��ainta[entneCessarytopn.)videfirsLri.tesen/icetoour, connnnunitYWE? nnustensure vve rennain Connpetitive �iven our available resourCes, Key observations inc[ude: • Niunnberinterna[pnonnotionstoexterna[hires vverea[nnostequaL • VVe hired a[nnost25O ennp[(.)Yees, including casuals, in 2019The response rzte per, ooshLiu was 96cmaverage, �:�ecruh-Ten Chm��e were ima lyin �[E.sThE? ChmIE?1`II81e mnosLoftE?inreli.tedtocoimoe?1`IIsatcmar11d re�JrenTent prii-Tiar|sinmore serior', exeCutiven(.)[E?s �0VE?r-a[[our ��uri]OVE?r raLE?sare low :Iosi�Jve ��o �+iisircludE' Salary [Dmployee Survey I ncrei.3se proimdJoin and avva�?1`IIessOf: thetotal coimoe.'1`IIsatc1`II offered by 01E? C."ityof: Saint ]ohn vvithinour' ennp[(.)Yeegroups, Salary and benef:itsoffered are COnnpetitive, particu[ar|s in entryto nnid[eve[ no[es, Explore possib[e increasesto Connpensation packages for- se[eCtspeCia[ized and senior, nnana�ennent position& 2, Revievv recruitnnentstrzte�,�y and tota[ connpensation packagefor- senior no[esto attractand retaincandidatesf:OrexeCutive[eve[positions, Exp[orethepossibi[itYof additiona[incentivesfor- speCia[izednnana�,'ers, m y SECTION 8, CITY M CONCLUDING REMARKS | ann pIeased to presentour first VVorkforceAnnua[ Report, This Report, connbined with rneny ot+Ier docunnents �nd pub[ic|s-shared information, reaffrnns ourconnnnitrnent to tr�nsparenCYand acmuntabi[ii�y, It isbest-practice annongst [argeoorporationsto pn��uoeemnu�[repor-i�sont+)ehe�thoft+Ieirvvorkf:orCe, WE? are now doin,,g, the sarne�nd vveare doing so based onfacsand ernpirica�datl |tisessentia[t+IatWE? take careof: our' ennp[0Yees;t+IatWE? ensuret+Ieyaregiven t+Ietoo[sand trainingneCessarytoacconnp[isht+Ieir vvork; and thatt+Iey are vve[[ [ed and vve[[ nnana�,Ied, ThisReporthe[psinfnrnna[[of: usonour- progressand on our, cha[[en�,les in nnoving, furt+Ier for -war -d, [}urennp[oYees aret+Ie kevsto oursuCCess VVe are, afLera[L in t+Ie sen/ice de[ivery businessand t+IereisnoexCe[[enCeinsen/icevvithoutexCe[[entennp[oYees, As C."ity Our- aim,of: courSE?,isi�o kE.E?pt+1e\��f:or'CehE?i.�H+iy (orE?XCE?[1E?l`IIL)inall ��s, NioL on|s is itt+Ie rightt+iingto do, ita[so nnairLains and idea[|s innproves produciJvitK effectivenessandeffdenCY, Therearennanynecessarycriteriafor- asuCCessfu[and hea[t+ly vvorkfnrCe, /\nnon�,Istt+Ie most innportantare: nnotivation, Connpensation, discip[ine,vvorket+IiC,overa[[ nnora[e,safeLy, persona[and professiona[ grovvth,and a work environnnentvvhere everyone istreated vvit+i dignity and respeCL This report shovvsthatWE? are in �,,00d shape but have areast+Iatnnust be addressed, As | have often nnentioned,t+)eday vve be[ievet+IatWE? no [on�,'erneed to innprove ist+Ie be�innin�,'of: our' end, 0 ErIISurin�thebestfor- our vvorkforCedoesnot coirT)evvithanendIE?ssbudget TheCity of: Saint]ohnhas significantfinanda[Cha[[en�es, Our overa[[costs areincreasingat aratet+ireetinnesfi.3stert+ianour overa[[revenues, WE? nnustincreaseour revenues but vve must also contno[ our costs, The budget ofa city is no differentthan the budgetOf: afanni[]/ WE? nnust[ivevvithinour, nneans, |fWE? can'tnnakennorennonE?Y, thenWE? needtocut back, TheC."itYOf: Saint]ohnhas doounnerlteda[[Of: itsor�oin�,'effnrtstoincreaserevenues thnou�,Ih [oCa[ initiatives and, nnore innportant|s t+inough refornns such asconnprehensiveLax refnrnnand re�,,iona[cost-sharing, ncreasingour, revenue isa[argepart Of: theso[utionbut costs must a[sobecurtai[ed, Fb contno[expenseS,theC."ityisexploring,all possib[evvaystoreduceopera��ing costs, Aspart of: t+is,theC."itYmust reCO�,�nisethat57%Of: itsoperi.ting budgetisspenton vva�,'esand benef:itsand our avera�,'eYear[yvvageincreaseshoveraround 3%,vvhi[e our, revenue grovvth is significantly [ovvec This is notsustainab[e, VVe are spending nnorethanWE? nnake, WE? must Co[[eCtive[yWork toget thesecosts undercontro[so thatWE? CanensurethefutureOf: a[[serviCestoOur taxpaYers, ThisReporthas not deta1E?dtheCha[[erl�,lesM+i[innhing vvithintheCO[IE?ddve ag,reennents, This is intentiona[ since vve are currently in CO[[ective bargaining with severa[ union groups vvherethese nnattersare being, disCussed, Thatsaid, it isC[ear thatWE? nnustConnp[eteanexhaustiverefnrnn(overaperiodof: tinne)of: our current Co[[ediveagreennentstoaddress restriciveC[ausesare [innitingour abi[itYto bef[exib[e, a�,Ii[e and innovative, VVe must be as effedive and effiCientas possib[e vvhi[eContinuin�,ltocarefor- theneedsof: our vvorkfnrCe, m M)i[ea reducicm in ennpl(.)meecosts is kp?ytoMir- firarda[sustainabi[i�y,WE? arefu[|s Connnnitted tofurt+Ieringour- �)ea[t+l and safety pnogrannsand t+)etrainingand deve[opnnent of: our' ennp[OYees, Sonne oft+)e reconnnnendations put fnrt+i in t+iis report,suC�)ast+)einnp[ennentationOf: anennp[(.)YeereCo�Ili tionprogrann,will begin ill t+)es�,iortternn, (}t+)ers,suc�'iascreating,acu[tureOf: [earningand deve[opnnent, will unfold over a nunnber ofYears, Hovvever, t+)e work nnust beglin novv� Our- Ei-Tip[oYee En�agennentSurvey �'iasso[idif:ied sonnet+lin� | susPeCLed about our vvorkf:orCe, Our' ennp[oYeesarepassionateabout de[iverin�sen/icestot+)eresidents of: our- (.i�y, VVe Will Continue to find ways to do so in our, resourCe-constrained envinonnnentandWE? will dosohill annannerisappnopriatetoour' ennp[(.)Yees, T�)eSurveya[so�'lig�'l[ig�)tedsevera[snna[[erideastopursue, /\[t+ioug�'it+Ieyarenot part oft+iis Report, t+)ey Will for -Ti part of: our- work plan for- 2020 and 2021 KYsPE.Cia[�+iarks ��oour- HumariRE?smr-CE?SDeparti-TIe1`IlL forpr'E?parirg, �+isdocumE,'1111L | fu[|s support t+)eirobservatcms, findings and recoirT)nnendz�ons, More innportart|s WE? novv�)avea[[Of: t+)ere[evantdataori our- vvorkforCeinasingu[ardoCunnenL Since t+iis is our firstYear preparing t+Iis Report, vve Will seek feedback for- possible VVe are in t+)e nnidd[e ofgreat C�)an�,'e and vve �)ave a lot of �ard work a�)ead of: us, | ann Coll f identt+)e sanne passion and profE?ssiona[isnn our ennp[OYees app|sto "Grow the City. Serve the City. Become the community of choice/ 0 COUNCIL REPORT M&C No. 2020-108 Report Date April 14, 2020 Meeting Date April 20, 2020 Service Area Finance and Administrative Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: 2020 Capital Budget Reallocations General and Utility Fund OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Craig Lavigne Kevin Fudge John Collin RECOMMENDATION That Common Council approves the 2020 capital budget reallocation as presented in this report. EXECUTIVE SUMMARY The 2020 and 2021 General Fund and Utility Funds Capital budgets included projects that the City was seeking funding support through the Bilateral Funding program. The City received notification from the Province on March 2, 2020 advising that the City will not be receiving any infrastructure renewal funding under this program, however the projects put forward are considered priority projects by the Province and could move forward if the funding became available. The purpose of this report is to allocate the City share of projects that were not approved and to approve some revisions to projects funded solely under the gas tax program. PREVIOUS RESOLUTION Finance Committee has endorsed this report at its meeting on April 15, 2020. 61191:3 -2 - STRATEGIC ALIGNMENT The proposed adjustment to the 2020 General and Utility Fund Capital Budgets is aligned with Councils' priorities, Debt Management Policy, Financial Principles, Capital Budget Policy, Asset Management Plan, Central Peninsula Neighborhood Plan, PlaySJ, MoveSJ, PlanSJ with a focus on growth REPORT The 2020 and 2021 General Fund and Utility Funds Capital budgets included projects that the City was seeking funding support through the Bilateral Funding program. The City received notification from the Province on March 2, 2020 that the projects will not be receiving infrastructure renewal funding under this program, however the projects put forward are considered priority projects by the Province and could move forward if the funding became available (Appendix A). The total contribution from the City for these capital projects for 2020 was $977,400 in the General Fund and $1,000,350 in the Utility Fund (Appendix B). A number of projects proposed in the 2020 Capital Budget assumed the City would be successful with receiving funding. In order to ensure Waterloo Street Reconstruction project and Union Street project moves forward, staff is proposing reallocating the City's share of funding for projects that assumed bi- lateral funding in the 2020 Capital Budget. No additional City funding is required. Waterloo Street has the highest risk of failure when it comes to underground infrastructure. It currently has a condition rating of 5 which is the worst in terms of condition and the infrastructure dates back to 1869. The new work proposed on Union Street will help facilitate growth in that area. Summary of the General Fund Changes: No additional City Funding Summary Of Changes 2020Approved General Fund Capital Budget City Share of Bilateral Projects -$977,400.00 Engineering, Investigation and Design -$200,000.00 Waterloo Street (Haymarket Sq. -Castle St. Street reconstruction $1,077,400.00 Union Street - Civic 107-117 (Growth) $100,000.00 Net Change $0.00 N7i10.1 -3 - Summary of Changes for Utility Fund: Reduction of $850,000 Utility Share and an addition of $590,000 for the Gas Tax Program Summary Of Changes 2020Approved General Fund Utility Budget City Share of Bilateral Projects -$1,000,350.00 Waterloo Street (Haymarket Sq. -Castle St. Street reconstruction $1,000,350.00 Douglas Ave (Civic 399-425) -$25,000.00 Wastewater Pumping (Prospect St. - Walnut St.) -$520,000.00 Ocean Westwest/Route 7Overpass -$150,000.00 Engineering, Investigation and Design $25,000.00 Hayes Avenue Area 289-484Gault Road -$180,000.00 Net Change -$850,000.00 Changes under the Gas Tax Fund Program Utility Fund Douglas Ave (Civic 399-425) $115,000.00 Champlain Heights - 900mm Watermain $975,000.00 2020 Watermain Cleaning and Lining -$500,000.00 Net Change $590,000.00 The overall changes to the 2020 capital budgets have no additional financial impact on the General Fund and the Utility will see a reduction of $850,000 from its contribution due to deferring capital from operating. It is also proposed that Gas Tax Funding be reallocated to invest in the Champlain Heights watermain, funded from of portion of the $1.5M watermain cleaning project that was budgeted in 2019 that will be not moving forward, as well as the 2020 watermain cleaning and lining project budgeted for 2020. Staff will also bring forward a revised 2021 budget for both funds due to the unsuccessful application for Bilateral funding at a later date. SERVICE AND FINANCIAL OUTCOMES The City's portion for the General fund will have no impact and the Utility is deferring its capital from operating by $850,000 N7d97 -4 - INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Input and coordination was received from Engineering, Saint John Water, Senior Leadership Team, Growth and Community Development, Finance, Transportation and Environment and Develop S.I. ATTACHMENTS Appendix A: Letter from Province of New Brunswick Appendix B: 2020 Bilateral Funding Projects 511 March 2, 2020 His Worship Don Darling Mayor of Saint John 15 Market Square P.O. Box 1971 Saint John, New Brunswick M, � s ,,.Nouv(j--a E2L 41_1 Re: Integrated Bilateral Agreement Dear Mr. Mayor: (A W E ��%MAR 0 6 2020 I want to thank you for your interest in the Integrated Bilateral Agreement (IBA) funding. The Regional Development Corporation had a strong response to the first call for Expressions of Interest (EOI) under the IBA, receiving 163 submissions for infrastructure projects. All EOls have been reviewed to ensure that they meet the required immediate outcomes of the IBA. Each project was evaluated by our multi -disciplinary team following a consistent and objective methodology. Given limited budget capacity, it was determined that water and wastewater projects would receive priority at this time, with a focus on projects that had identified public health issues. Thus, we consulted the specialists in the Departments of Environment and Local Government and Health. Following the evaluation, each project was included in one of four categories. Appendix A contains important information as well as the evaluation results for your submission(s) and an explanation of each category. I do not anticipate another call for interest for funding this year, however, your EOI will be kept open for future consideration. Should any details regarding your EOI change and you wish to bring it to the attention of the Regional Development Corporation, please contact us at (506) 453-2277. 1 appreciate the work that has gone into preparing your EOI and wish you the best in the completion of your infrastructure project(s). Sincerely, '1_7�/ Z' z z Cade Libby Acting President Enc. Regional Development Corporation/Societe de developpement regional www„gnb ca P.O. 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CL Cc Ca Ca CA asC- 0 rm tD rL Appendix B - 2020 Approved General and Utility Capital Budget - Subject to Bilateral Funding P514 age 1 BUDGET -OTHER BUDGET - CITY CATEGORY DEPARTMENT DESCRIPTION SHARE SHARE Waterloo Street - (W&S) - Haymarket Square to Castle Storm Transportation & Street - Sewer Separation (Subject to Bilateral $ 350,400 $ 129,600 Environment Services Funding) St. James Street - (W&S) - Prince William Street to Storm Transportation & Germain Street - Sewer Separation (Subject to $ 69,350 $ 25,650 Environment Services Bilateral Funding) Wentworth Street - (W&S) - Elliot Row to King Street Storm Transportation & East Intersection- Sewer Separation (Subject to $ 69,350 $ 25,650 Environment Services Bilateral Funding) Princess Street - (W&S) - Wentworth Street to Crown Storm Transportation & Street - Sewer Separation (Subject to Bilateral $ 156,950 $ 58,050 Environment Services Funding) Germain Street- (W&S) - St. James Street to Lower Storm Transportation & Cove Loop - Sewer Separation (Subject to Bilateral $ 109,500 $ 40,500 Environment Services Funding) Broadview Ave. - (W&S) - Charlotte Street to Storm Transportation & Carmarthen Street - Sewer Separation (Subject to $ 193,450 $ 71,550 Environment Services Bilateral Funding) Waterloo Street - (W&S) - Haymarket Square to Castle Transportation Transportation & Street - Street Reconstruction (Subject to Bilateral $ 591,300 $ 218,700 Environment Services Funding) St. James Street - (W&S) - Prince William Street to Transportation Transportation & Germain Street - Street Reconstruction (Subject to $ 153,300 $ 56,700 Environment Services Bilateral Funding) Wentworth Street - (W&S) - Elliot Row to King Street Transportation Transportation & East Intersection- Street Reconstruction (Subject to $ 131,400 $ 48,600 Environment Services Bilateral Funding) P514 age 1 Appendix B - 2020 Approved General and Utility Capital Budget - Subject to Bilateral Funding P515 age 2 BUDGET -OTHER BUDGET - CITY CATEGORY DEPARTMENT DESCRIPTION SHARE SHARE Princess Street - (W&S) - Wentworth Street to Crown Transportation Transportation & Street - Street Reconstruction (Subject to Bilateral $ 346,750 $ 128,250 Environment Services Funding) Germain Street- (W&S) - St. James Street to Lower Transportation Transportation & Cove Loop - Street Reconstruction (Subject to Bilateral $ 124,100 $ 45,900 Environment Services Funding) Broadview Ave. - (W&S) - Charlotte Street to Transportation Transportation & Carmarthen Street -Street Reconstruction (Subject to $ 346,750 $ 128,250 Environment Services Bilateral Funding) 2020 General Fund Capital Budget - Projects subject to Bilateral Funding $ 2,642,600 $ 977,400 Water Saint John Water Waterloo Street - Haymarket Square to Castle Street - $ 434,350 $ 160,650 Sewer Separation (Subject to Bilateral Funding) St. James Street - Prince William Street to Germain Water Saint John Water Street - Sewer Separation (Subject to Bilateral $ 120,450 $ 44,550 Funding) Wentworth Street - Elliot Row to King Street East Water Saint John Water Intersection- Sewer Separation (Subject to Bilateral $ 124,100 $ 45,900 Funding) Water Saint John Water Princess Street -Wentworth Street to Crown Street - $ 299,300 $ 110,700 Sewer Separation (Subject to Bilateral Funding) Water Saint John Water Germain Street - St. James Street to Lower Cove Loop - $ 87,600 $ 32,400 Sewer Separation (Subject to Bilateral Funding) P515 age 2 Appendix B - 2020 Approved General and Utility Capital Budget - Subject to Bilateral Funding Page Pe3 BUDGET -OTHER BUDGET - CITY CATEGORY DEPARTMENT DESCRIPTION SHARE SHARE Lower Cove Loop- Charlotte Street to St. James Street Water Saint John Water to Lower Cove Loop - Install Watermain (Subject to $ 131,400 $ 48,600 Bilateral Funding) Water Saint John Water Broadview Ave. - Charlotte Street to Carmarthen Street $ 219,000 $ 81,000 - Sewer Separation (Subject to Bilateral Funding) Sanitary Saint John Water Waterloo Street - Haymarket Square to Castle Street - $ 299,300 $ 110,700 Street Reconstruction (Subject to Bilateral Funding) St. James Street - Prince William Street to Germain Sanitary Saint John Water Street - Street Reconstruction (Subject to Bilateral $ 94,900 $ 35,100 Funding) Wentworth Street - Elliot Row to King Street East Sanitary Saint John Water Intersection- Street Reconstruction (Subject to $ 83,950 $ 31,050 Bilateral Funding) Sanitary Saint John Water Princess Street - Wentworth Street to Crown Street - $ 219,000 $ 81,000 Street Reconstruction (Subject to Bilateral Funding) Sanitary Saint John Water Germain Street - St. James Street to Lower Cove Loop - $ 105,850 $ 39,150 Street Reconstruction (Subject to Bilateral Funding) Lower Cove Loop - Charlotte Street to St. James Street Sanitary Saint John Water to Lower Cove Loop - Install Sanitary Sewer (Subject to $ 248,200 $ 91,800 Bilateral Funding) Page Pe3 Appendix B - 2020 Approved General and Utility Capital Budget - Subject to Bilateral Funding CATEGORY DEPARTMENT DESCRIPTION BUDGET -OTHER SHARE BUDGET - CITY SHARE Broadview Ave. - Charlotte Street to Carmarthen Street Sanitary Saint John Water $ 237,250 $ 87,750 -Street Reconstruction (Subject to Bilateral Funding) 2020 Utility Fund Capital Budget - Projects subject to Bilateral Funding $ 2,704,650 $ 1,000,350 Page 4 ewA7N March 111, 2020 Mayor Don Darling City of Saint John P.O. Box 1971 Saint John, NB E2L 41,1 Dear Mayor Darling: This is in response to your letter dated February 6, 2020, concerning conversion therapy in New Brunswick and the rest of Canada. There is no mechanism in place in New Brunswick through which a clinical referral to conversion therapy can be made. Medicare does not pay for conversion therapy or referrals to it, whether within, the province or in, an out -of -province jurisdiction. Therapeutic services provided through New Brunswick's addiction and mental health system are based on values entrenched in a person -centered and recovery -based approach. Our Government agrees with the 2015 statement from the Canadian Psychology Association confirming that "scientific research does not support the efficacy of conversion or reparative therapy," and also supports the Canadian Pediatric Association, that "conversion or reparative therapy where attempts are made to turn gay males or lesbians into heterosexuals is clearly unethical and should not be provided by physicians, nor should physicians refer patients for such therapy'. We are aware that conversion therapy its happening to some extent in non -clinical settings outside the health care system in New Brunswick, and we are considering how to address the issue. We also understand that the federal government is considering a change to the Criminal Code to ban conversion therapy across the country. Thank you for taking the time to write and share your concerns, Sincerely, "13 aine M. Higgs cc: Honourable Hugh J. Flemming, Q,C,, Minister of Health Off Ice of the Premier /Cabinet du premier ministre www.gnb.ca ROAVU6000 Fredericton New Brunswick/Nouveau-Brunswick E3135H11 Canada TeUTOL(SOQ49-2144 Fax/T6Ik-:(506)453-7407 Email/Courrid ; premiu@gnb.Wpremier.ministrepgnb.ca 4�18 SUBMISSION TO COUNCIL FORM 'I he. City of Saint Bohn ABOUT PERSON/GROUP PRESENTING First Name: Les Last Name: LeBlanc Name of Organization/Group (where applicable): chck heire heirto entert xt. Mailing Address: City or Town: Saint John Province: Ili°icl Ili urve to enter text. Postal Code: chck lh urve to enter text. Day Time Phone Number: Chck Ihere to enter text, Email: ,% If you do NOT wish to have your personal information (address, phone number, email) become part of the public record, please check this box. ABOUT YOUR SUBMISSION Topic of Submission: Clearing Virus measures. Purpose for Submission (what is the ask of Council): chdk heire to entertext. �o smtch t a new Iln iragrvallDh Ilhft SIhfft+Ent urv. Executive Summary: Chck Iheirto enter text, ..� sMtch t a new IIDa ira girapIh IIht t SII'tffft+Entery YOUR SIGNATURE Signature: Les LeBlanc Date: 06/04/2020 SUBMISSION TO COUNCIL FORM The city needs to plan for when rapid testing kits are available in sufficient quantity for the entire population. The nature of covid-19 means constant reinfection is going to be an issue. To eliminate this the city will need to use the social distanceing and remain home orders in addition to setting up a city border for streets coming into the city. Noone comes into the city without being tested and cleared. Movement between sectors curtailed and only permittted with extreme sanitation measures. The city itself needs to be divided into sectors. The one by one each sector have the entire population tested and cleared and anyone testing positive further quarantined. Once the population of a sector is cleared the remain home order can be lifted and businesses in that sector reopen. Create a cleared center and work out from there until the entire city is cleared. As sectors are cleared movement is once again allowed between cleared sectors. Random testing needs to continue until the city is cleared for a few months. The city border needs to remain up testing all that want to come in until the same procedure is repeated in all cities. The province should also set up similar procedures for those coming into the province. Those cleared of course can't leave the sector until other sectors are cleared Within the city the tests should be allocated to the highest bidder first devolving to free for those that wait. Those that can bid high are more likely to be business owners that need to get those businesses opened back up. For those coming into the city it is first come first served with a fee. You could of course try just testing the entire city without all this but reinfection means that someone you test on Monday could be infected by someone on Tuesday and silently infect others thinking they are clear as you continue to test others. Mr. Mayor and Council With regards to a recent article in Rise Up SJ concerning the economy of our city as well as the Taxi By-law of the Saint John City, I would like to request, on behalf of many taxi drivers and taxi private owners, a couple changes to the City's Taxi By-law. First of all, I will state that, in the last year, the number of taxi stands in Saint John have shrunk from 7 to 4. Even more importantly, since the pandemic outbreak: • the number of privately owned cars has dropped in numbers by 45 to 50. • At least 40 drivers have left the business because of the fear of catching the COVID 19 virus. • Business for cab companies has dropped between 60-80 percent. Therefore, I would like to propose an Amendment to article 10(1) is iv to read "in 2020 all subsequent years 8 years old or newer". This would mean that, when licenses are renewed this year, 2012 cars will not have to be removed and could be entered into the business. This change would make an enormous difference to cab drivers that are presently driving 2012 cars. I would also request that the date for renewing cars — May 31, 2020, be moved to August 31, 2020. Article 12 2, the fee for a Taxicab Owner's License be changed from $150 to $75, and that article 8(2)c, the fee for a Taxicab Operator's License be changed from $50 dollars to $25. If these changes are made, it would be a move in the right direction to assist in eventually bringing drivers and cars back when our economy starts to pick back up and businesses are reopened. Please note that, although I do have a private car in the taxi business, this amendment does not affect me personally regarding the age of vehicles. Thank you for your consideration in this matter. Regards Gerry Lowe MLA 521 COUNCIL REPORT M&C No. 2020-115 Report Date April 17, 2020 Meeting Date April 20, 2020 Service Area Corporate Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Cisco WebEx Licenses — Video Conferencing OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author I Commissioner/Dept. Head City Manager Stephanie Rackley -Roach I Stephanie Rackley -Roach John Collin RECOMMENDATION The City Manager recommends that the Mayor and Common Clerk be authorized to execute the WebEx Conferencing ("WebEx") Service Schedule with Bell Canada to purchase WebEx licenses for twelve months (attached). EXECUTIVE SUMMARY With the Province of New Brunswick's declaration of a State of Emergency and Mandatory Order that was issued on March 19, 2020, the City has an immediate need to obtain a reliable, flexible and secure video conferencing tool to support the delivery of critical public services. Through a trial period to test Cisco WebEx to host virtual meetings, the WebEx tool has proven to fit the City's needs. This includes the City's short-term needs as we continue to work virtually through COVID-19 and the potential in the future to improve service delivery and find efficiencies. The costs associated with a one-year agreement for Cisco WebEx licenses with Bell Canada is $18,239.72 plus HST. PREVIOUS RESOLUTION N/A REPORT The Province of New Brunswick declared a State of Emergency and issued a Mandatory Order on March 19, 2020, due to the increased presence of COVID- 19 and its risk to the health and safety of all citizens. Since then, the City has moved to a virtual model for collaboration and meetings to support the delivery RM of critical public services to comply with the safety measures outlined in the declaration. Prior to COVID-19, the City had started a trial with Bell Canada to determine how Cisco WebEx could meet our video conferencing, team collaboration, and calling needs. Prior to the trial, the City had limited access to video conferencing tools to host meetings with a large number of participants. The Cisco WebEx trial started mid-March of this year and has proven to be a reliable, functional tool for the City to host meetings virtually with internal and external participants. The tool is used daily by a number of people hosting meetings, with many more people participating in these meetings. This includes the successful delivery of a virtual meetings for Common Council, as wellas for Finance and Growth Committee meetings, all of which were streamed live to the City's YouTube Channel and/or through Rogers Communications. While many organizations are using a variety of tools for video conferencing, Cisco WebEx is a secure tool, as data is encrypted. There is also functionality that will continue to support streamlined delivery of service after restrictions around COVID-19 are eventually lifted. With the limitations of the trial period, more specifically, the number of individuals who can host meetings, it is recommended that the City purchase licenses for Cisco WebEx that meet our needs. Purchasing licenses also ensures that we have reliable access to video conferencing tools. The Information Technology team has worked with two vendors to determine needs and costing. Through the evaluation, it has been determined that Bell Canada provided the best flexibility, with no additional costs over the term of the agreement. They also provided good customer service and training throughout the trial. Based on a term of one year, the agreement (attached) provides for 40 active user accounts, with the flexibility to expand to 360 knowledge workers (people). This will allow additional employees to host meetings than what is currently available. The agreement also provides the City with the ability to test calling features as telephony systems evolve. Based on the analytics of the first year of the contract, the plan can be scaled back in future years in terms of the licenses required, should the City choose to renew. STRATEGIC ALIGNMENT As outlined in Council Priorities, the City is looking for innovative ways to streamline and improve service delivery. While there is an immediate need to [•1093 -3 - ensure wide spread access to video conferencing, the Cisco WebEx tool has functionality that can be leveraged for operational efficiencies. SERVICE AND FINANCIAL OUTCOMES The cost associated with the purchase of licenses for Cisco WebEx is $18,239.72 plus HST. While this cost was not allocated for in the 2020 budget, the financial analysis completed for COVID-19 has accounted for this cost. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The Materials Management team is supportive of proceeding with Bell Canada. The City Solicitor's office has reviewed the agreement. ATTACHMENTS 1. WebEx Service Schedule to Master Communications Agreement RM111 DocuSign Envelope ID: C10368F5-11214FD1-BEAF-OCFF03F51EA8 Bdl Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 WEB CONFERENCING ("WEBEX") SERVICE SCHEDULE Customer Name: City Of Saint John (the "Customer") The services described in this Web Conferencing ("WebEx") Service Schedule (the "Service Schedule") are provided in accordance with and governed by either: i) a Master Services Agreement between the Customer and Bell Aliant Regional Communications, Limited Partnership ("Bell Aliant"), subsequently assigned by Bell Aliant to Bell Canada (the "MSA"); or ii) a Master Communications Agreement between the Customer and Bell Canada ("Bell") (the "MCA'), whichever is applicable. The MSA and MCA, whichever is applicable, shall herein be referred to as the "Master Agreement". Bell and the Customer agree that this Service Schedule is attached to and forms part of the Master Agreement and is governed by its terms and conditions, with effect from the date of execution of this Service Schedule by the Customer. Capitalized terms used but not defined in this Service Schedule have the meanings given to them in the Master Agreement. For the purposes of this Service Schedule, references to the "Agreement" shall include both the Master Agreement and the Service Schedule. t;_1016 This Service Schedule sets forth the additional terms and conditions which, together with the terms and conditions of the main body of the Agreement, are applicable to WebEx services to be provided by Bell to the Customer during the Service Term (as hereinafter defined). 2. TERM: a) Service Commencement Date and Initial Service Term: Notwithstanding the date of its execution, this Schedule shall come into effect on the day the WebEx Site is made available by Cisco and unless terminated sooner persuant to its terms, shall remain in effect for a term of 12 months (the "Initial Service Term"). If customer does not sign this Service Schedule within 30 days of the Scheduled Start Date, the Initial Service Term will begin on the date the WebEx Site is made available by Cisco. b) Service Renewal Term: At the end of the Initial Service Term, there shall be automatic consecutive renewal periods (each a "Service Renewal Term") each equal in length to the Initial Service Term, unless either party provides the other with written notice of termination at least 60 days prior to the end of the Initial Service Term or Service Renewal Term. The notice of termination or non -renewal of service shall be provided in writing to webconfsupport@bell.ca. Bell may change the Fees for a Service Renewal Term by providing the Customer with at least 90 days prior written notice of the change before the end of the then current Initial Service Term or Service Renewal Term, as the case may be. Any additional licenses purchased during the term of this Service Term will be included in the auto renewal quantity. c) Use of Services beyond Service Term: If the Customer has sent a notice of non -renewal but for any reason continues to receive the Service after expiry of the Initial Service Term or final Service Renewal Term, the terms and conditions of the Agreement including this Service Schedule shall continue to apply and Bell and the Customer shall be deemed to have agreed to a new Service Renewal Term equal in length to the Initial Service Term. 3. SERVICE: a) Description of the Service: Bell shall provide to the Customer the WebEx services specified below ("Service"), in accordance with the terms and conditions set out or referenced in the Agreement and this Service Schedule. The Service to be provided by Bell is the WebEx service. The service provides the ability for users to share content on their computers and to collaborate with others in real time. The WebEx service is licensed for use strictly in accordance with its license terms as described in more detail at the website currently located at http://www.webex.com/terms-of-service.htmi as this description may be amended from time to time. Customer agrees to abide by the Terms of Service accessible using the above-mentioned link. Web Conferencing (WebEx) Service Schedule Version 1.2 Page 1 of 21 525 August 1, 2018 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 W I Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 b) Customer requirements: In addition to those Customer obligations listed in the Agreement, the Customer shall: (i) not nor shall its End Users use any Service to communicate any message or material that is harassing, libelous, threatening, obscene, that would violate the intellectual property rights of any party or is otherwise unlawful, that would give rise to civil liability, or that constitutes or encourages conduct that could constitute a criminal offense, under any applicable law or regulation. Although neither Bell nor the Bell Providers are responsible for any such communications, Bell or the Bell Providers may delete any such communications of which they become aware, at any time without notice; or (ii) not nor shall its End -Users use the Service to send unsolicited mass mailings outside Customer's company or organization. 4. FEES & PRODUCT DESCRIPTION a) Webex Services Cisco Deal ID: 47113585 Item# Qty Part No Description Units Price Extension Term 1 1 A -FLEX Collaboration Flex Plan None 0.00 0.00 12 2 1 SVS -SPK -SUPT -BAS BASIC SUP FOR CISCO SPARK Each 0.00 0.00 12 3 40 A-FLEX-EDGAUD-USER A -FLEX Webex Edge Audio User 0.00 0.00 12 4 40 A -FLEX -CCA -SP -USER CCA SP User License 0.00 0.00 12 5 360 A -FLEX -MEET -ENT Cloud Meetings Entitlement User 0.00 0.00 12 6 7200 A-FLEX-FILESTG-ENT File Storage Entitlement User 0.00 0.00 12 7 360 A -FLEX -MSG -ENT Messaging Entitlement User 0.00 0.00 12 8 1 A-SPK-VOIP Included VoIP Each 0.00 0.00 12 9 40 A-FLEX-AUCM1 AU Cloud Meetings Tier 1 (1) User 33.10 15,887.52 12 10 360 A-FLEX-DEVREG-ENT Cloud Device Registration Entit User 0.00 0.00 12 11 40 BELL-CCA-AU-TNU+ Active User Bell TNU+ Each 4.89 2,347.20 12 12 0 Bell—Toll—free Toll -Free Access Minute 0.05 0.00 12 13 40 Bell_International_calling International access Each 0 0 12 b) Setup Fees Service Rate per Moderator Moderator Set-up $10.00 A one time charge that is applied for the set up of a moderator subscription. Customer must choose between the following billing options for the Service. c) Subscription license types License Type Description Named User A Named User is any individual who may schedule and host meetings. User accounts are (NU) individualized and may not be shared or used by anyone other than the one employee to whom the user account is assigned. Active User In this model, the initial subscription is based on 15 percent of the total employee count or a (AU) minimum number of licenses, whichever is greater, yet all employees receive access to the Cisco WebEx service. In year two, the number of active users averaged over the immediate) Web Conferencing (WebEx) Service Schedule Version 1.2 Page 2 of 21 1�U August 1, 2018 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 B4 1 Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 d) Webex Services WebEx Centre preceding three-month period (months 9, 10, and 11) will be used to determine the new Meeting Center subscription count. An employee becomes an Active User when the employee hosts one (1) or 25,200 more meetings per month using the Cisco WebEx or WebEx TeamsTM service. The subsequent year subscription is the number of active users calculated in the audit or the amount of the initial subscription, whichever is greater, meaning that if the number of active users falls below 15 percent of the total employee base, the customer still needs to renew for the full 15 percent Employee This subscription is designed for a company to purchase the offering for each knowledge Count (EMP) worker employee within their entire organization. For example, a 1000 -employee organization will need to purchase 1000 licenses. This model offers simplicity in procurement and predictable cost for organizations willing to make an enterprise wide licensing commitment. Ports With the Ports model, customers have access to a specific number of Ports, which are shared (PORTS) among all subscribers (hosts) on their WebEx site. For example, if a customer purchases a 100, 500, 1000, license for 100 ports, 100 people (participants) can use the Cisco WebEx service at any one 3000 time. The breakdown might be anything from a single meeting with one host and 99 attendees, or 50 meetings each with a single host and a single attendee. Whatever the breakdown, the total number of users across the system at any one time cannot exceed 100. If the 101st erson tries to attend or host a meeting, that person will count toward overage. d) Webex Services WebEx Centre Description Meeting Center Cisco WebEx Meeting Center is an integrated web conferencing service designed for 25,200 interactive online meetings by incorporating audio, video and real-time content sharing. It enables the sharing of documents, applications and desktops over the web. WebEx Meeting Center is a service that can be provisioned without the need for the involvement of information technology professionals and is delivered through the Cisco Collaboration Cloud. WebEx Meeting Center allows users to give presentations, demonstrate software, view and annotate any document electronically, with integrated audio and video communications. In addition, WebEx Meeting Center has additional features such as record and playback and the ability to attend a meeting from different platforms including mobile devices. Available in meeting sizes of 25 and 200 participants. Event Center Cisco WebEx Event Center is an integrated service that is designed for large online events 100, 500, 1000, such as press briefings, product announcements and marketing events delivered over the 3000 web. Cisco WebEx Event Center combines interactive meeting capabilities such as the sharing of documents, applications and desktops with pre and post program and campaign management. Cisco WebEx Event Center includes customized attendee registration, automated email invitations, reminders, audience feedback collection through polling and Q&A, live chat, recording and archiving of seminars for on -demand playback, and lead source tracking enrollment/lead scoring. Can accommodate up to 3000 participants. Support Center 5 Allows technical service representatives to diagnose and solve problems remotely using two-way desktop and application control and easy, drag -and -drop file transferring. Accommodate up to 5 participants per meeting. Training Center Cisco WebEx Training Center is an integrated service that is designed for online training 30,200 and e -learning applications delivered over the web. It enables users to coordinate training from announcement, to enrollment, to follow-up. Cisco WebEx Training Center allows users to deliver live instruction from a variety of sources directly to learners' desktops and give presentations that include integrated audio, video and interactive multimedia. Cisco WebEx Training Center allows users to administer tests, organize multiple simultaneous breakout sessions, hands-on labs, and record and playback entire sessions for future use. Hold session of 30 or 200 participants. Enterprise Cisco WebEx Enterprise Edition is a bundle that includes four of the Cisco WebEx Edition 200, 1000 conferencing services: 1) Cisco WebEx Meeting Center 2) Cisco WebEx Training Center 3) Cisco WebEx Event Center and 4) Cisco WebEx Support Center Remote Support. This bundle of services offers collaboration across four distinct business -specificprocesses: Web Conferencing (WebEx) Service Schedule Version 1.2 Page 3 of 21 527 August 1, 2018 Meeting Type Description WebEx Teams Subscribers can exchange messages and share files with another person or a group of (M1) people. Message anyone. Choose someone from their company directory or simply enter anyone's email address and start messaging customers, partners, or anyone they need to work with. Features include: WebEx storage is included with purchase. The amount of storage given will be the number of users purchased times 5 GB, which is pooled across users. In addition, the subscriber administrator will have access to administration capabilities and information, such as Single Sign -On (SSO), call logs, and usage reports. a With WebEx Control Hub (standard), administrators can provision, manage, and analyze the entire WebEx Teams experience (meetings, messaging, and calling). Note: WebEx sites that were provisioned using Cisco WebEx Site Administration will continue to be managed using Cisco WebEx Site Administration. WebEx WebEx Teams Advanced Meetings (M3) includes everything in WebEx Teams (M1) plus Meetings (M3) these capabilities: Advanced Video and content sharing take place within the WebEx Teams app with up to 25 users. Because these meetings are linked to a WebEx Teams space, they are joinable via the WebEx Teams app and WebEx devices. Capabilities include: m Instant WebEx meetings are initiated from within the WebEx Teams app with a simple click. When in the relevant space, simply click the Call activity circle. Once started, anyone in the space can join or add guests from outside of the space. Ability to join a scheduled meeting from the WebEx Teams app or any device registered to WebEx Teams. b Users have the ability to schedule meetings in spaces with 2 to 25 participants to talk with everyone in a space at a certain date and time. Each space with 3 to 25 participants has its own meeting link and video address to make scheduling and joining the meeting easy. Spaces with 2 participants has its own meeting link. a Scheduled meetings are also possible with WebEx Hybrid Services. Specifically, by enabling the Calendar Service, users can add @spark to their Microsoft Outlook invite, which will not only create a WebEx Teams space, but will also put the click -to -join information at the bottom of the invite. Host meetings with all the capabilities powered by Cisco WebEx@. This includes Cisco WebEx Meeting Center video conferencing (formerly CMR Cloud). Anyone can join on any device, including mobile devices, web, phone via Public Switched Telephone Network (PSTN), device and Cisco IP phones registered to WebEx Teams, Microsoft Skype for Business endpoint, third -party standards-based video endpoints, and more. Each user with an M3 license has a Personal Room with their own meeting link and video address to make scheduling and joining meeting easy. The link and video address can be used by anyone to join the meeting, and they are constant and associated with the host that owns them. Prior to the host's arrival, the attendees wait in a lobby. • Users have the ability to schedule meetings (no WebEx Teams Hybrid Services required). o Meetings can have up to 200 participants. • WebEx Teams Hybrid Services can be used to make scheduling and WebEx Teams space creation easier. The Calendar Service allows you to add @webex to the Microsoft Outlook invite so that the Cisco WebEx meeting information is automatically populated in the body of the invite. Web Conferencing (WebEx) Service Schedule Version 1.2 Page 4 of 21 August 1, 2018 Iola.,] DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 Bdl e) WebEx Audio Options for Webex Teams Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Cisco Audio bridge offerings must be purchased as either Flat rate, per minute or a combination of both. 1. Cisco WebEx Audio flat -rate monthly subscriptions WebEx audio conferencing from Cisco may be purchased at the configurations below. In these plans, each entitled user has unlimited access to the specified services for a flat monthly fee per user. Please note that these products do not integrate with Bell Audio conferencing services. Toll User: Each entitled user has unlimited access to global toll call-in services. Local toll call-in number(s) in --27 countries (refer to Country Coverage Listing for coverage details) are provided to enable participants to join a Cisco WebEx powered meeting. Toll Plus User: Each entitled user has unlimited access to global toll call-in plus bridge country callback services. Local toll call-in number(s) in -27 countries (refer to Country Coverage Listing for coverage details) are provided to enable participants to join a Cisco WebEx online meeting, and participants can also join a Cisco WebEx powered meeting by having the meeting call them at the number they specify after they've joined over the web. Callback coverage is available to the bridge country as defined below. Toll Plus International User: Each entitled user has unlimited access to global toll call-in plus callback to these same countries, plus callback to India and China. Local toll call-in number(s) in -27 countries are provided to enable participants to join a Cisco WebEx powered meeting, and participants can also join a Cisco WebEx powered meeting by having the meeting call them at the number they specify after they've joined over the web. Callback coverage is available to the same -27 countries plus India and China; refer to Country Coverage Listing for coverage details. Bridge country is defined based on the customer's provisioned Cisco WebEx site locale, which is normally based on the customer's billing address and time zone. There are four (4) Cisco WebEx Audio bridge countries: United States and Canada, United Kingdom, Singapore, and India. Cisco WebEx Audio services are provided and billed at the bridge country rates for each of these countries as follows: Countries Covered for Global Tall Dial -in: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Hong Kong, Hungary, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Poland, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, United Kingdom, USA. 2. Cisco WebEx Audio: Per- minute offerings A. Uncommitted billing: Changes are based on actual usage over the billing period. Per -use fees are subject to change. The subscriber will be charged at the applicable rate in effect at the time the service is used. Invoiced monthly in arrears. B. Committed billing: Charges are based on a minimum monthly committed dollar amount. Usage in excess of committed amounts is invoiced monthly in arrears at the discounted rate. Committed amounts that are not used by the subscriber during the month may not be carried forward into the next month. Invoiced monthly in advance for the duration of the audio service subscription term. Committed Billing rates Tiers will be determined according to the following monthly committed spending limits. Tier From To Tier 1 $299 $1,319 Tier 2 $1,320 $3,299 Tier 3 $3,300 $99,999,999 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 5 of 21 529 August 1, 2018 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51 EA8 Master Agreement Number: CN -0807-8441 EMI Service Schedule Number: CN -2004-67424 Bridge Country Per Min Offerings Bridge country toll-free call-in:* Toll-free call-in number(s) are provided in the bridge country to enable participants to join a Cisco WebEx powered meeting. • Bridge country toll call-in:* Local toll call-in number(s) in the bridge country are provided to enable participants to join a Cisco WebEx powered meeting. • Bridge country callback:* Participants can join a Cisco WebEx meeting by having the meeting call them at the number they specify once they've joined over the web. Callback coverage is available to the bridge countries as outlined below. * Bridge country is defined based on the customer's provisioned Cisco WebEx site locale, which is normally based on the customer's billing address and time zone. There are four (4) Cisco WebEx Audio bridge countries: United States and Canada, United Kingdom, Singapore, and India. Cisco WebEx Audio services are provided and billed at the bridge country rates for each of these countries as follows: • United States: For customers that are provisioned in the United States, bridge country services and rates apply to U.S. toll and toll-free dial -in, and to the United States and Canada for callback. Service Committed Spend SKU Uncommitted Spend SKU Bridge Country Toll Call-in A -SPK -CS -TA -BCT A -SPK -US -TA -BCT Bridge Country Toll -Free Call-in A-SPK-CS-TA-BCTF A-SPK-US-TA-BCTF Bridge Country Call Back A-SPK-CS-TA-BCCB A-SPK-US-TA-BCCB Global Per min offerings (see Appendix A to F for individual country rates) Global Toll Call-in: Local toll call-in number(s) in approximately 27 countries (refer to the Country Coverage Listing for coverage details) are provided to enable participants to join a Cisco WebEx powered meeting. Global Toll Free Call-in: Toll-free call-in number(s) are provided in approximately 47 countries to enable participants to join a Cisco WebEx meeting. Global Call Me: Participants can join a Cisco WebEx powered meeting by having the meeting call them at the number they specify once they've joined over the web. Callback coverage includes approximately 195 countries; refer to the Country Coverage Listing for coverage details. Service Committed Spend SKU Uncommitted Spend SKU Global Toll Call-in A -SPK -CS -TA -IT A -SPK -US -TA -IT Global Toll -Free Call-in A-SPK-CS-TA-ITF A-SPK-US-TA-ITF Global Call Me A-SPK-CS-TA-ICB A-SPK-US-TA-ICB 3. TSP Audio TSP audio allows customers to use the Bell Canada integrated audio conferencing service with their Webex service. Cisco WebEx TSP Audio is tightly integrated and includes features such as active talker, mute/unmute, call in, callback, on -net callback, video switching, subconferencing, invite by phone, CMR, NBR, and more. Customers using this option will require a separate contract for Bell Audio Conferencing Services. 5. SPARK DEVICE LICENSES Web Conferencing (WebEx) Service Schedule Version 1.2 Page 6 of 21 August 1, 2018 1191 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 U I Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 WebEx Devices can be purchased in two ways, Subscription and Upfront purchase: A. Cisco WebEx Devices — Subscription Cloud deployment only. Cisco WebEx device subscriptions provide the ability to register devices purchased via the subscription model to the WebEx service in the cloud, with no need for on -premises infrastructure. The corresponding WebEx device subscription for each device with a minimum duration of 12 months must be purchased at the same time the WebEx device for subscription is purchased. Important note: One corresponding WebEx device subscription is required per subscription device purchased. There are separate SKUs for the hardware and subscription. B. Cisco WebEx Devices — Upfront purchase activation (GPL) Full upfront cost plus lower monthly subscription for CapEx budgeting. Cloud or on -premises flexibility, with a lower recurring cost if decide to register the devices to the cloud. The WebEx device — Upfront purchase activation provides the ability to register WebEx Board Series, DX Series, MX Series, SX Series, Room Kit Series and WebEx Room 55 devices purchased via upfront purchase directly to the WebEx service in the cloud, with no need for on -premises infrastructure. An upfront purchase activation (A -SPK -SH -ND -SR or A -SPK -ND -SR) is required for each WebEx device for upfront purchase to register the device to WebEx Teams. For WebEx Flex Employee Count and Active User, A -SPK -SH -ND -SR is included at 1 per Knowledge Worker. WebEx Devices for Upfront purchase activation, excluding WebEx Board 55 and WebEx Board 70, can be registered on -premises. There are separate SKUs for the hardware and subscription. Note: Cisco Hardware devices purchased separately. a) Additional Services and Fees: WebEx Meeting Center Video conferencing (formerly Collaboration Meeting Rooms Cloud): This a video conferencing feature available to all users in a Cisco WebEx Meeting Center subscription for no additional cost. Users can collaborate by joining meetings from standards-based video device, including mobile, desktop endpoint, soft client, or room -based video system. Cisco WebEx Meeting Center video conferencing enables integrated audio, video, and content sharing, all in one meeting experience. Cisco WebEx Meeting Center video conferencing is included with Cisco WebEx Meeting Center and Enterprise Edition for the Named User, Active User, and Employee Count licensing models. It is not available with the Ports licensing model. II. Storage Meetinq Rooms: Should Customer choose one of the billing options described in section 5.a) (ii) or (iii) hereof, customer shall have access to storage as part of the Service, in consideration for the rates set out below: Min Committed GBs Status Monthly rate per commit level Minimum Charge/Month 10 Included Free Optional Committed /GB Uncommitted additional GBs 17 As required /GB Note: Storage GB consumed in excess of the committed min level shall be charged at the committed level rate/GB. ill. Enhanced Services —Web Recording, Monitoring, VoIP, Audio Broadcast & Branding Services Definitions: WebEx Recording This service provides an audio recording of the entire WebEx event. The Bell call agent Web Conferencing (WebEx) Service Schedule Version 1.2 Page 7 of 21 531 August 1, 2018 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 U I Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 will be available for the beginning of call only to initiate call recording. WebEx Monitoring The Bell call agent will be available for the duration of the call to assist with delivery of the Web Conference. vole A computer to computer connected voice call that uses voice over IP protocol data connections rather than conventional telephones. WebEx Enhanced Service Name Pricing Per Units (recording/hour/Attendee) Additional min rate if applicable WebEx Recording $115 Recording n.a. WebEx Monitoring $355 Hour $6 voIP Included per minute per participant n.a. WebEx Audio Broadcast The Audio Broadcast option included in Event Center provides one-way audio stream from the host's telephone to attendees' computers. Rather than using their telephones, attendees can listen to the audio portion of the event through their speakers or headsets. This feature is convenient for large events where attendees will listen to a presentation without the need to speak into the session; it's also a good way to cut costs for an event, since attendees do not need to connect to a teleconference. If attendees want to speak, they can request permission to join the teleconference from the host. The host can allow the attendee to join, or deny request. WebEx Audio Broadcast Event Attendee Size Standard Pricing (Annuity) 0 - 25 Attendees $0.00 26 - 99 Attendees $92.89 100 - 249 Attendees $184.76 250 - 499 Attendees $332.78 500 - 999 Attendees $628.81 1,000 - 2,999 Attendees $1,776.19 iv. Pro -rated Fee Adjustment As all pre -paid orders will be invoiced at the first of each month additional Fees may be assessed and charged for a prorated fractional month when Service commences prior to the first billing date. 5. OTHER TERMS AND CONDITIONS: a) Early termination by Customer: There shall be no Termination Fee applicable if Customer has chosen the billing option described in section 5.a) (i) hereof, which is a pay per use service that Customer may cancel at any time. The Termination Fees applicable if Customer has chosen the other billing options described in section 4 hereof are equal to the total fees to the end of the Service Term. b) Bell termination without cause: At any time during during the Service Term, Bell may terminate any portion of the Service and/or this Service Schedule by providing the Customer with at least 30 days written notice. c) Maintenance: Customer acknowledges that Bell may interrupt the Service from time to time in order to provide maintenance in respect of the Service. In the event of Service interruptions lasting 24 hours or longer from Bell receipt of notification Web Conferencing (WebEx) Service Schedule Version 1.2 Page 8 of 21 August 1, 2018 1�% DocuSign Envelope ID: C1 0368F5-1121-4FD1-BEAF-OCFF03F51 EA8 EWI Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 thereof by the Customer, Bell, upon the Customer's written request, will provide to the Customer a credit or refund of the Fees proportionate to the length of the service interruption commencing from Bell receipt of the Customer's notification. Notwithstanding any provision to the contrary, such credit or refund will be the Customer's sole and exclusive remedy, at law or in equity, relating to non-performance of the Service. By signing below, Bell and the Customer agree that this Service Schedule is attached to and forms part of the Agreement, and is governed by the terms and conditions of the Agreement. City Of Saint John SIGNATURE: NAME: TITLE: I am authorized to bind Customer to the terms and conditions of this Service Schedule. DATE: YYYY-MM-DD City Of Saint John SIGNATURE: NAME: TITLE: I am authorized to bind Customer to the terms and conditions of this Service Schedule. DATE: YYYY-MM-DD Bell Canada EDcuSigned by: SIGNATURE: NAME: Glen Gnazdowsky TITLE: I am authorized to bind Bell Canada to the terms and conditions of this Service Schedule. DATE: 2020-04-17 YYYY-MM-DD Web Conferencing (WebEx) Service Schedule Version 1.2 Page 9 of 21 August 1, 2018 533 DocuSign Envelope ID: C1 0368F5-1121-4FD1 -BEAF-OCFF03F51 EA8 EWI Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Appendix A: Global Call Me - Uncommitted Rates (WebEx Teams) A-SPK-US-TA-ICB Participants can join a Cisco WebEx powered meeting by having the meeting call them at the number they specify once they've joined over the web. Callback coverage includes approximately 195 countries; refer to the Country Coverage Listing for coverage details. Global Call Me - Uncommitted Country Sell Price (Per Minute) Country Sell Price (Per Minute) Country Sell Price (Per Minute) Afghanistan $0.86 Gabon $1.47 Niger $1.73 Albania $0.55 Gambia $2.44 Norfolk Island $0.26 American Samoa $0.61 Georgia $0.65 Northern Mariana Islands $0.35 Andorra $0.32 Germany $0.28 Norway $0.29 Angola $0.40 Ghana $1.20 Oman $1.73 Anguilla $1.31 Gibraltar $2.11 Pakistan $0.68 Antigua (including Barbuda) $1.28 Greece $0.29 Palau $1.88 Argentina $1.01 Grenada $1.36 Panama $1.09 Armenia $1.06 Guadeloupe $1.25 Papua New Guinea $2.81 Aruba $1.38 Guatemala $1.01 Paraguay $0.54 Australia $0.54 Guinea $2.81 Peru $1.12 Austria $0.29 Guinea - Bissau $4.05 Philippines $1.29 Azerbaijan $1.62 Guyana $2.38 Poland $0.60 Bahamas $0.43 Haiti $2.06 Portugal $0.74 Bahrain $0.53 Honduras $1.67 Puerto Rico $0.16 Bangladesh $0.41 Hong Kong $0.27 Qatar $1.56 Barbados $0.72 Hungary $0.78 Romania $0.83 Belarus $2.11 Iceland $0.94 Russia $0.39 Belgium $0.43 India $0.24 Rwanda $1.30 Belize $2.03 Indonesia $0.67 San Marino $1.92 Benin $1.54 Iran $0.89 Senegal Republic $1.75 Bermuda $0.44 Iraq $0.71 Serbia $0.87 Bhutan $0.97 Ireland $0.28 Seychelles Islands $0.84 Bolivia $1.04 Israel $0.88 Singapore $0.14 Bosnia-Herzegovina $1.81 Italy $0.28 Slovakia $0.88 Botswana $1.41 Ivory Coast $1.75 Slovenia $0.87 Brazil $1.09 Jamaica $1.42 South Africa $1.22 British Virgin Islands $1.45 Japan $0.67 South Korea $0.27 Brunei $0.31 Jordan $0.58 Spain $0.29 Web Conferencing (WebEx) Service Schedule Version 1.1 Page 10 of 21 N�ct! March 1, 2017 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 Bdl Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Bulgaria $1.83 Kazakhstan $0.68 Sri Lanka $0.95 Burkina Faso $1.94 Kenya $1.15 St. Kitts & Nevis $1.68 Burundi $1.11 Kyrgyzstan $1.06 St. Lucia $1.15 Cambodia $0.58 Laos $0.56 St. Pierre & Miquelon $0.92 Cameroon $1.72 Latvia $0.86 St. Vincent $1.15 Canada $0.14 Lesotho $1.30 Sudan $1.61 Cape Verde Islands $1.91 Liberia $1.96 Suriname $1.52 Cayman Islands $1.19 Libya $2.25 Swaziland $1.22 Central African Republic $0.72 Liechtenstein $0.86 Sweden $0.29 Chad Republic $1.48 Lithuania $0.74 Switzerland $0.29 Chile $1.17 Luxembourg $0.29 Syria $1.05 China $0.21 Macao $0.34 Taiwan $0.76 Colombia $0.48 Macedonia $1.67 Tajikistan $0.97 Comoros $3.67 Malawi $0.84 Tanzania $1.19 Congo, Democratic Republic of the Congo $2.38 Malaysia $0.25 Thailand $0.37 Congo, Republic of the Congo $3.26 Maldives $1.78 Trinidad & Tobago $0.72 Costa Rica $0.51 Mali $2.12 Tunisia $2.19 Croatia $1.10 Malta $1.01 Turkey $0.62 Cyprus $0.27 Marshall Islands $0.35 Turkmenistan $1.01 Czech Republic $1.35 Mauritania $0.85 Turks & Caicos $1.41 Denmark $0.29 Mauritius $0.85 Uganda $1.14 Djibouti $3.16 Mayotte Island $1.49 Ukraine $0.94 Dominica $1.52 Mexico $0.36 United Kingdom $0.14 Dominican Republic $0.62 Micronesia $0.26 United States $0.14 Ecuador $1.16 Moldova $1.39 Uruguay $1.11 Egypt $0.98 Monaco $0.74 Uzbekistan $0.35 EI Salvador $1.63 Mongolia $0.63 Vanuatu $0.33 Equatorial Guinea $2.35 Montserrat $1.39 Vatican City $0.36 Eritrea $2.35 Morocco $2.08 Venezuela $0.67 Estonia $1.45 Mozambique $1.32 Vietnam $0.48 Ethiopia $2.12 Myanmar $3.25 Western Samoa $1.73 Faroe Islands $1.01 Namibia $1.20 Zambia $1.09 Fiji Islands $3.05 Nepal $1.43 Zimbabwe $1.46 Finland $0.29 Netherlands $0.28 Other $4.15 France $0.30 Netherlands Antilles $0.92 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 11 of 21 1�R August 1, 2018 Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 French Depts. (Indian Ocean) $2.06 New Caledonia $0.60 French Guiana $1.14 New Zealand $0.54 French Polynesia $2.38 Nicaragua $1.69 Web Conferencing 0WebEx Service Schedule Version 1.2 Page 12 of 21 August 1.20U8 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Appendix B: Global Tall Call In - Uncommitted Rates (WebEx teams) A -SPK -US -TA -IT Local toll call-in number(s) in approximately 27 countries (refer to the Country Coverage Listing for coverage details) are provided to enable participants to join a Cisco WebEx powered meeting. Country Sell Price /min Country Sell Price /min Australia $0.09 Luxembourg $0.09 Austria $0.09 Netherlands $0.09 Belgium $0.09 New Zealand $0.09 Canada $0.09 Norway $0.09 Czech Republic $0.09 Poland $0.09 Denmark $0.09 Russia $0.09 Finland $0.09 Singapore $0.09 France $0.09 South Africa $0.09 Germany $0.09 Spain $0.09 Hong Kong $0.09 Sweden $0.09 Hungary $0.09 Switzerland $0.09 Ireland $0.09 United Kingdom $0.09 Italy $0.09 United States $0.09 Japan $0.09 Other $0.09 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 13 of 21 August 1, 2018 1�YA DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 Bdl Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Appendix C: Global Toll Free Call In - Uncommitted Rates (WebEx Teams) A-SPK-US-TA-ITF Toll-free call-in number(s) are provided in approximately 47 countries to enable participants to join a Cisco WebEx meeting. Country List Price /min Country List Price /min Australia $0.24 Latvia $0.79 Austria $0.34 Lithuania $0.79 Belgium $0.52 Luxembourg $0.34 Brazil $0.36 Malaysia $0.57 Bulgaria $1.51 Mexico $0.63 Canada $0.19 Netherlands $0.75 China $0.73 New Zealand $0.32 Croatia $1.99 Norway $0.34 Czech Republic $0.62 Poland $0.47 Denmark $0.29 Portugal $0.34 Estonia $0.49 Romania $1.05 Finland $0.59 Russia $0.61 France $0.34 Singapore $0.19 Germany $0.38 Slovakia $0.72 Greece $0.34 South Africa $1.38 Hong Kong $0.45 South Korea $0.45 Hungary $0.61 Spain $0.49 Iceland $0.45 Sweden $0.34 India $1.53 Switzerland $0.34 Indonesia $1.93 Taiwan $0.45 Ireland $0.36 Thailand $1.73 Israel $0.34 United Kingdom $0.19 Italy $0.30 United States $0.19 Japan $0.69 Other $2.25 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 14 of 21 1�1:j August 1, 2018 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Appendix D: Global Call Me - Committed Rates (WebEx Teams) A-SPK-CS-TA-ICB Participants can join a Cisco WebEx powered meeting by having the meeting call them at the number they specify once they've joined over the web. Callback coverage includes approximately 195 countries; refer to the Country Coverage Listing for coverage details. Bell Sell / min Country Tier 1 Tier 2 Tier 3 Country Tier 1 Tier 2 Tier 3 Afghanistan $0.45 $0.37 $0.30 Laos $0.29 $0.24 $0.19 Albania $0.29 $0.24 $0.19 Latvia $0.45 $0.37 $0.30 American Samoa $0.32 $0.26 $0.21 Lesotho $0.68 $0.55 $0.45 Andorra $0.17 $0.14 $0.11 Liberia $1.60 $1.31 $1.06 Angola $0.21 $0.17 $0.14 Libya $1.18 $0.96 $0.78 Anguilla $0.69 $0.56 $0.45 Liechtenstein $0.85 $0.85 $0.84 Antigua (including Barbuda) $0.67 $0.55 $0.44 Lithuania $0.39 $0.32 $0.26 Argentina $0.53 $0.43 $0.35 Luxembourg $0.27 $0.26 $0.26 Armenia $0.56 $0.45 $0.37 Macao $0.18 $0.14 $0.12 Aruba $0.72 $0.59 $0.48 Macedonia $0.87 $0.71 $0.58 Australia $0.38 $0.30 $0.24 Malawi $0.44 $0.36 $0.29 Austria $0.18 $0.15 $0.12 Malaysia $0.13 $0.11 $0.09 Azerbaijan $0.85 $0.69 $0.56 Maldives $0.93 $0.76 $0.62 Bahamas $0.22 $0.18 $0.15 Mali $1.11 $0.91 $0.74 Bahrain $0.28 $0.23 $0.18 Malta $0.53 $0.43 $0.35 Bangladesh $0.21 $0.17 $0.14 Marshall Islands $0.19 $0.15 $0.12 Barbados $0.38 $0.31 $0.25 Mauritania $0.44 $0.36 $0.29 Belarus $1.11 $0.90 $0.73 Mauritius $0.44 $0.36 $0.29 Belgium $0.38 $0.34 $0.32 Mayotte Island $0.78 $0.64 $0.52 Belize $1.06 $0.87 $0.71 Mexico $0.32 $0.29 $0.27 Benin $0.80 $0.66 $0.53 Micronesia $0.14 $0.11 $0.09 Bermuda $0.23 $0.19 $0.15 Moldova $0.73 $0.59 $0.48 Bhutan $0.51 $0.41 $0.34 Monaco $0.59 $0.48 $0.39 Bolivia $0.54 $0.44 $0.36 Mongolia $0.33 $0.27 $0.22 Bosnia-Herzegovina $0.95 $0.77 $0.63 Montserrat $0.73 $0.59 $0.48 Botswana $0.74 $0.60 $0.49 Morocco $1.09 $0.89 $0.72 Brazil $0.73 $0.60 $0.48 Mozambique $0.69 $0.56 $0.46 British Virgin Islands $0.76 $0.62 $0.50 Myanmar $1.70 $1.39 $1.13 Brunei $0.16 $0.13 $0.11 Namibia $0.63 $0.51 $0.42 Bulgaria $0.99 $0.81 $0.66 Nepal $0.75 $0.61 $0.50 Burkina Faso $1.01 $0.83 $0.67 Netherlands $0.26 $0.26 $0.25 Burundi $0.58 $0.48 $0.39 Netherlands Antilles $0.48 $0.39 $0.32 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 15 of 21 August 1, 2018 1�M] DocuSign Envelope ID Bd C10368F5-1121-4FD1-BEAF-OCFF03F51 EA8 Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Cambodia $0.30 $0.25 $0.20 New Caledonia $0.31 $0.26 $0.21 Cameroon $0.90 $0.73 $0.60 New Zealand $0.51 $0.46 $0.43 Canada $0.08 $0.06 $0.04 Nicaragua $0.89 $0.72 $0.59 Cape Verde Islands $1.00 $0.82 $0.66 Niger $0.91 $0.74 $0.60 Cayman Islands $0.62 $0.51 $0.41 Norfolk Island $0.14 $0.11 $0.09 Central African Republic $0.37 $0.31 $0.25 Northern Mariana Islands $0.19 $0.15 $0.12 Chad Republic $0.77 $0.63 $0.51 Norway $0.27 $0.27 $0.26 Chile $0.62 $0.50 $0.41 Oman $0.90 $0.74 $0.60 China $0.11 $0.09 $0.07 Pakistan $0.35 $0.29 $0.23 Colombia $0.25 $0.20 $0.17 Palau $1.07 $0.87 $0.71 Comoros $1.92 $1.57 $1.27 Panama $0.57 $0.46 $0.38 Congo, Democratic Republic of the Congo $1.25 $1.02 $0.83 Papua New Guinea $2.51 $2.16 $1.89 Congo, Republic of the Congo $1.71 $1.39 $1.13 Paraguay $0.28 $0.23 $0.19 Costa Rica $0.27 $0.22 $0.18 Peru $0.59 $0.48 $0.39 Croatia $0.58 $0.47 $0.38 Philippines $0.67 $0.55 $0.45 Cyprus $0.14 $0.12 $0.09 Poland $0.31 $0.26 $0.21 Czech Republic $0.71 $0.58 $0.47 Portugal $0.50 $0.41 $0.33 Denmark $0.28 $0.26 $0.25 Puerto Rico $0.08 $0.07 $0.06 Djibouti $1.66 $1.35 $1.10 Qatar $0.90 $0.76 $0.66 Dominica $0.79 $0.65 $0.53 Romania $0.44 $0.36 $0.29 Dominican Republic $0.33 $0.27 $0.22 Russia $0.21 $0.17 $0.14 Ecuador $0.61 $0.50 $0.40 Rwanda $0.68 $0.55 $0.45 Egypt $0.51 $0.42 $0.34 San Marino $1.01 $0.82 $0.67 EI Salvador $0.86 $0.70 $0.57 Senegal Republic $0.91 $0.75 $0.61 Equatorial Guinea $1.23 $1.00 $0.82 Serbia $0.46 $0.37 $0.30 Eritrea $1.23 $1.00 $0.82 Seychelles Islands $0.44 $0.36 $0.29 Estonia $0.76 $0.62 $0.51 Singapore $0.08 $0.06 $0.04 Ethiopia $1.11 $0.91 $0.74 Slovakia $0.46 $0.38 $0.31 Faroe Islands $0.53 $0.43 $0.35 Slovenia $0.45 $0.37 $0.30 Fiji Islands $1.60 $1.30 $1.06 South Africa $0.64 $0.52 $0.42 Finland $0.24 $0.21 $0.20 South Korea $0.14 $0.12 $0.10 France $0.23 $0.19 $0.15 Spain $0.25 $0.22 $0.21 French Depts. (Indian Ocean) $1.08 $0.88 $0.72 Sri Lanka $0.50 $0.40 $0.33 French Guiana $0.60 $0.49 $0.40 St. Kitts & Nevis $0.88 $0.72 $0.58 French Polynesia $1.24 $1.02 $0.82 St. Lucia $0.60 $0.49 $0.40 Gabon $0.77 $0.63 $0.51 St. Pierre & Miquelon $0.48 $0.39 $0.32 Gambia $1.86 $1.52 1 $1.23 1 St. Vincent $0.60 $0.49 $0.40 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 16 of 21 1�R August 1, 2018 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 M I Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Georgia $0.34 $0.28 $0.22 Sudan $0.84 $0.69 $0.56 Germany $0.24 $0.23 $0.22 Suriname $0.80 $0.65 $0.53 Ghana $0.63 $0.51 $0.42 Swaziland $0.64 $0.52 $0.42 Gibraltar $1.10 $0.90 $0.73 Sweden $0.19 $0.16 $0.13 Greece $0.25 $0.23 $0.21 Switzerland $0.27 $0.26 $0.25 Grenada $0.71 $0.58 $0.47 Syria $0.55 $0.45 $0.36 Guadeloupe $0.66 $0.54 $0.43 Taiwan $0.40 $0.32 $0.26 Guatemala $0.53 $0.43 $0.35 Tajikistan $0.51 $0.41 $0.34 Guinea $1.83 $1.49 $1.21 Tanzania $0.63 $0.51 $0.41 Guinea-Bissau $2.12 $1.73 $1.41 Thailand $0.20 $0.16 $0.13 Guyana $1.25 $1.02 $0.83 Trinidad & Tobago $0.37 $0.31 $0.25 Haiti $1.08 $0.88 $0.72 Tunisia $1.21 $0.99 $0.80 Honduras $0.87 $0.71 $0.58 Turkey $0.33 $0.27 $0.22 Hong Kong $0.14 $0.12 $0.09 Turkmenistan $0.53 $0.43 $0.35 Hungary $0.41 $0.34 $0.27 Turks & Caicos $0.74 $0.60 $0.49 Iceland $0.49 $0.40 $0.33 Uganda $0.60 $0.49 $0.39 India $0.13 $0.10 $0.08 Ukraine $0.49 $0.40 $0.33 Indonesia $0.35 $0.28 $0.23 United Kingdom $0.08 $0.06 $0.04 Iran $0.47 $0.38 $0.31 United States $0.08 $0.06 $0.04 Iraq $0.37 $0.31 $0.25 Uruguay $0.58 $0.48 $0.39 Ireland $0.25 $0.25 $0.24 Uzbekistan $0.19 $0.15 $0.12 Israel $0.63 $0.57 $0.53 Vanuatu $0.17 $0.14 $0.11 Italy $0.24 $0.20 $0.17 Vatican City $0.29 $0.24 $0.20 Ivory Coast $0.92 $0.75 $0.61 Venezuela $0.35 $0.29 $0.23 Jamaica $0.74 $0.61 $0.49 Vietnam $0.25 $0.21 $0.17 Japan $0.52 $0.44 $0.37 Western Samoa $0.91 $0.74 $0.60 Jordan $0.31 $0.25 $0.20 Zambia $0.57 $0.47 $0.38 Kazakhstan $0.35 $0.29 $0.23 Zimbabwe $0.76 $0.62 $0.51 Kenya $0.61 $0.49 $0.40 Other $2.20 $1.68 $1.21 Kyrgyzstan $0.56 $0.45 $0.37 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 17 of 21 August1,2018 DocuSign Envelope ID: C1 0368F5-1121-4FD1-l3EAF-OCFF03F51 EA8 Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Appendix E: Global Toll Call In - Committed Rates (WebEx Teams) A -SPK -CS -TA -IT Local toll call-in number(s) in approximately 27 countries (refer to the Country Coverage Listing for coverage details) are provided to enable participants to join a Cisco WebEx powered meeting. Bell Sell t min Country Tier 1 Tier 2 Tier 3 Australia $0.05 $0.04 $0.03 Austria $0.05 $0.04 $0.03 Belgium $0.05 $0.04 $0.03 Canada $0.05 $0.04 $0.03 Czech Republic $0.05 $0.04 $0.03 Denmark $0.05 $0.04 $0.03 Finland $0.05 $0.04 $0.03 France $0.05 $0.04 $0.03 Germany $0.05 $0.04 $0.03 Hong Kong $0.05 $0.04 $0.03 Hungary $0.05 $0.04 $0.03 Ireland $0.05 $0.04 $0.03 Italy $0.05 $0.04 $0.03 Japan $0.05 $0.04 $0.03 Luxembourg $0.05 $0.04 $0.03 Netherlands $0.05 $0.04 $0.03 New Zealand $0.05 $0.04 $0.03 Norway $0.05 $0.04 $0.03 Poland $0.05 $0.04 $0.03 Russia $0.05 $0.04 $0.03 Singapore $0.05 $0.04 $0.03 South Africa $0.05 $0.04 $0.03 Spain $0.05 $0.04 $0.03 Sweden $0.05 $0.04 $0.03 Switzerland $0.05 $0.04 $0.03 United Kingdom $0.05 $0.04 $0.03 United States $0.05 $0.04 $0.03 Other $0.05 $0.04 $0.03 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 18 of 21 August 1, 2018 1�% DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 Master Agreement Number: CN -0807-8441 EW1 Service Schedule Number: CN -2004-67424 Appendix F: Global Toll Free Call In - Committed Rates (WebEx Teams) A-SPK-CS-TA-ITF Toll-free call-in number(s) are provided in approximately 47 countries to enable participants to join a Cisco WebEx meeting. Bell Sell / min Country Tier 1 Tier 2 Tier 3 Country Tier 1 Tier 2 Tier 3 Australia $0.20 $0.19 $0.18 Latvia $0.46 $0.38 $0.31 Austria $0.27 $0.26 $0.25 Lithuania $0.65 $0.59 $0.57 Belgium $0.43 $0.35 $0.28 Luxembourg $0.19 $0.17 $0.15 Brazil $0.31 $0.31 $0.30 Malaysia $0.29 $0.24 $0.20 Bulgaria $1.22 $1.00 $0.82 Mexico $0.41 $0.34 $0.28 Canada $0.11 $0.09 $0.07 Netherlands $0.53 $0.43 $0.36 China $0.72 $0.72 $0.70 New Zealand $0.21 $0.17 $0.14 Croatia $1.32 $1.24 $1.21 Norway $0.34 $0.34 $0.33 Czech Republic $0.41 $0.39 $0.38 Poland $0.36 $0.34 $0.33 Denmark $0.19 $0.18 $0.18 Portugal $0.30 $0.29 $0.29 Estonia $0.31 $0.29 $0.29 Romania $0.82 $0.76 $0.74 Finland $0.59 $0.59 $0.58 Russia $0.43 $0.40 $0.40 France $0.19 $0.16 $0.13 Singapore $0.11 $0.09 $0.07 Germany $0.23 $0.20 $0.19 Slovakia $0.65 $0.61 $0.59 Greece $0.28 $0.23 $0.19 South Africa $0.71 $0.59 $0.48 Hong Kong $0.38 $0.35 $0.34 South Korea $0.34 $0.28 $0.23 Hungary $0.34 $0.29 $0.26 Spain $0.42 $0.40 $0.39 Iceland $0.42 $0.38 $0.35 Sweden $0.29 $0.28 $0.28 India $0.80 $0.70 $0.63 Switzerland $0.26 $0.21 $0.18 Indonesia $1.27 $1.04 $0.86 Taiwan $0.40 $0.39 $0.37 Ireland $0.36 $0.36 $0.36 Thailand $0.94 $0.77 $0.63 Israel $0.29 $0.27 $0.26 United Kingdom $0.11 $0.09 $0.07 Italy $0.27 $0.25 $0.25 United States $0.11 $0.09 $0.07 Japan $0.59 $0.56 $0.55 Other $1.80 $1.44 $1.21 Web Conferencing (WebEx) Service Schedule Version 1.2 Page 19 of 21 August 1, 2018 The Customer is solely responsible for use of the Service by any of its employees, officers, directors, agents and any other end user of the Service (collectively, the "End Users"). The Customer agrees to comply, and to ensure that, the End Users comply with the following policies and procedures associated with the use of the Service (the Customer and/or End Users are sometimes hereinafter referred to as "you"). 1. While using the Service, you may not, and you are responsible for ensuring that End Users do not: a) post, transmit or otherwise distribute information constituting or encouraging conduct that would constitute a criminal offense or give rise to civil liability, or otherwise use the Service in a manner which is contrary to law or would serve to restrict or inhibit any other user from using the Service; b) post or transmit messages constituting "spam", which includes but is not limited to unsolicited e-mail messages, inappropriate postings to news groups, false commercial messages, mail bombing or any other abuse of e-mail or news group servers; c) post or transmit any information or software which contains a virus, "cancelbot", "trojan horse", "worm" or other harmful or disruptive component; d) upload or download, post, publish, retrieve, transmit, or otherwise reproduce, distribute or provide access to information, software or other material which: (i) is confidential or is protected by copyright or other intellectual property rights, without prior authorization from the rights holder(s); (ii) is defamatory, obscene, contain child pornography or hate literature; or (iii) constitutes invasion of privacy, appropriation of personality, or unauthorized linking or framing; e) send mass unsolicited e-mail messages and use of another site's mail server to relay mail; or f) violate any system or network security measures including but not limited to engaging in unauthorized access or use of Bell's or a third party's network, data or information, including the following: i) End Users are prohibited to interfere with service to any user, host or network including without limitation, mail bombing, flooding, deliberate attempts to overload a system and broadcast attacks; ii) End Users are prohibited to forge any TCP -IP packet header or any part of the header information in an e- mail or newsgroup posting. Bell considers the above practices to constitute abuse of its service. Engaging in one or more of these practices may result in termination or suspension of the offender's account and/or access to Bell's Service in accordance with the Customer's agreement with Bell. 2. It is your responsibility to ensure that your computer system meets the minimum requirements stated by Bell as being necessary to use the Service. These requirements may change from time to time. Accordingly, your computer equipment may cease to be adequate to access and use the Service. 3. Bell has no obligation to monitor the Service. However, in order to protect itself and its subscribers, Bell will be entitled to electronically monitor the Service from time to time and disclose any information concerning an End User required by the Customer or that is necessary to satisfy any law, regulation or lawful request or as necessary to operate the Service or to protect itself or others. Bell will not intentionally monitor or disclose any private e-mail message unless required by law. Bell reserves the right to refuse to post, or to remove any information or materials, in whole or in part, that it determines, in its sole discretion, are unacceptable, undesirable, or in violation of these policies. 4. You acknowledge that some content, products or services available with or through the Service ("Content") may be offensive or may not comply with applicable laws. You understand that neither Bell nor any of its affiliates attempt to censor or monitor any Content. You also acknowledge that neither Bell nor any of its affiliates have any obligation to monitor your use of the Service and, except as provided herein, have no control over such use. Customer understands, however, that such Content may be subject to "caching" at intermediate locations on the Internet when being accessed through the Service. You assume total responsibility and risk for access to or use of Web Conferencing (WebEx) Service Schedule Version 1.2 Page 20 of 21 August 1, 2018 DocuSign Envelope ID: C10368F5-1121-4FD1-BEAF-OCFF03F51EA8 Master Agreement Number: CN -0807-8441 Service Schedule Number: CN -2004-67424 Content and for your use of the Service and the Internet. Bell and its affiliates assume no liability whatsoever for any claims or losses arising out of or otherwise relating to your access to or use of Content. 5. Bell cannot guarantee privacy for the Internet Service. Your messages may be vulnerable to unauthorized third party interception and review. Bell therefore recommends that you use caution in using the Internet Service for transmitting confidential information. Any such use shall be at your sole risk and Bell, its affiliates and its agents shall be relieved from all liability in connection therewith. 6. Nothing contained in this policy shall be construed to limit Bell's actions or remedies in any way with respect to any of the foregoing activities. Bell reserves the right to take any and all additional actions it may deem appropriate with respect to such activities, including without limitation taking action to recover the costs and expenses of identifying offenders and removing them from the Bell Service, and levying cancellation charges to cover Bell's costs. In addition, Bell reserves at all times all rights and remedies available to it with respect to such activities at law or in equity. Complaints regarding email, or USENET abuse, SPAM or Illegal Use or System or Network Security issues, should be sent to abuse(ra),bell.ca. Web Conferencing (WebEx) Service Schedule Version 1.2 Page 21 of 21 August 1, 2018