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2020-07-20_Agenda Packet--Dossier de l'ordre du jourCity of Saint John Common Council Meeting AGENDA Monday, July 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 3. Approval of Agenda 4. Disclosures of Conflict of Interest 5. Consent Agenda 5.1 Contract No. 2020-21 Crack Sealing 2020 (Recommendation in Report) 5-7 5.2 Environmental Trust Fund Letter of Offer - City of Saint John Flood Risk 8 - 14 Reduction and Overflow Mitigation Strategy (Recommendation in Report) 5.3 Enbridge Gas New Brunswick Inc. — Municipal Operating Agreement 15 - 34 (Recommendation in Report) 5.4 ABC Written Reports — May 2020 (Recommendation: Receive for Information) 35 - 126 5.5 Proposed Public Hearing Dates — 30 King George Court, 445 St. Martin's Road 127 - 128 and 4001 King Wiliam Road (Recommendation in Report) 6. Members Comments 7. Proclamation 8. Delegations / Presentations 8.1 Emst & Young: City of Saint John Operational Review 129 - 261 9. Public Hearings - 6:30 p.m. 10. Consideration of By-laws 10.1 Proposed Zoning Bylaw Amendment - 913 Latimore Lake Road (3rd Reading) 262 - 264 10.2 Public Presentation - 2304-2310 Ocean West Way 265 - 270 10.3 Economic and Community Recovery — Street Events and Traffic Bylaw 271 - 294 Amendment (1 st and 2nd Reading) 11. Submissions by Council Members 12. Business Matters - Municipal Officers 12.1 Sustainability Update (Verbal) 295 - 298 12.2 New Economic Development Model: Collaborating to ensure the municipalities 299 - 341 in Greater Saint John will prosper in the 2020s 12.3 Saint John Local Immigration Partnership - Contract 342 - 376 13. Committee Reports 14. Consideration of Issues Separated from Consent Agenda 15. General Correspondence 15.1 Letters of Support for Regional Economic Development Model (Recommendation: Receive for Information) 15.1.1 Premier B. Higgs 377 - 378 15.1.2 Aquila Tours Inc. 379 - 379 15.1.3 Area 506 380 - 380 15.1.4 Cooke Aquaculture 381 - 381 15.1.5 Develop Saint John 382 - 382 15.1.6 Dr. Shelley Rinehart 383 - 383 15.1.7 Elias Management Group 384 - 391 15.1.8 Frank McKenna 392 - 392 15.1.9 Ispire Connexionworks 393 - 394 K 16. 17. 18. 15.1.10 James D. Irving 395 - 395 15.1.11 Living SJ 396 - 396 15.1.12 MP Wayne Long 397 - 397 15.1.13 Peter Stoddart 398 - 398 15.1.14 Saint John Airport 399 - 399 15.1.15 Saint John Hotel Association 400 - 401 15.1.16 YMCA of Greater Saint John 402 - 402 15.2 Premier B. Higgs: Racial Discrimination (Recommendation: Receive for 403 - 403 Information) Supplemental Agenda Committee of the Whole Adjournment K 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 Financial Matter 68(1)(c) Ville de Saint John Seance du conseil communal Lundi 20 juillet 2020 18h Reunion tenue grace a la participation electronique Comite plenier 1. Ouverture de la seance Si vous souhaitez obtenir des services en frangais 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 l'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, Reunion tenue grace a la participation electronique 1.1 Question financiere — alinea 68(1)c) 1.2 Question 1'emploi - alinea 68(1)j) Seance ordinaire 1. Ouverture de la seance 2. Approbation du proces-verbal 3. Adoption de I'ordre du jour 4. Divulgations de conflits d'interets 5. Questions soumises a I'approbation du conseil 5.1 Contrat n° 2020-21 Scellement de fissures 2020 (recommandation clans le rapport) 5.2 Lettre d'offre du Fonds en fiducie pour 1'environnement — Strategie de reduction des risques d'inondation et d'attenuation des debordements de la Ville de Saint John (recommandation clans le rapport) K 5.3 Enbridge Gas New Brunswick Inc. — Entente d'exploitation municipale (recommandation clans le rapport) 5.4 Rapports ecrits d'ABC — Mai 2020 (Recommandation : recevoir pour information) 5.5 Dates proposees pour les audiences publiques — 30, King George Court, 445, St. Martin Road et 4001, King William Road (recommandation clans le rapport) 6. Commentaires presentes par les membres 7. Proclamation 8. Delegations et presentations 8.1 Ernst & Young : Examen operationnel de la Ville de Saint John 9. Audiences publiques —18 h 30 10. Etude des arretes municipaux 10.1 Modification proposee au reglement de zonage — 913, Latimore Lake Road (3e lecture) 10.2 Presentation publique — 2304-2310, Ocean West Way 10.3 Reprise economique et communautaire — Modification du Reglement sur les evenements de rue et la circulation (1,e et 2e lectures) 11. Interventions des membres du conseil 12. Affaires municipales evoquees par les fonctionnaires municipaux 12.1 Mise a jour sur la durabilite (verbale) 12.2 Nouveau modele de developpement economique : Collaborer pour assurer la prosperite des municipalites du Grand Saint John clans les annees2020 12.3 Partenariat local en matiere d'immigration de Saint John — Contrat 13. Rapports deposes par les comites 14. Etude des sujets ecartes des questions soumises a I'approbation du Bureau 15. Correspondance generale 15.1 Lettres d'appui au modele de developpement economique regional (Recommandation : recevoir pour information) 3 15.1.1 Premier ministre B. Higgs 15.1.2 Aquila Tours Inc. 15.1.3 Area 506 15.1.4 Cooke Aquaculture 15.1.5 Develop Saint John 15.1.6 Dre Shelley Rinehart 15.1.7 Elias Management Group 15.1.8 Frank McKenna 15.1.9 Ispire Connexionworks 15.1.10 James D. Irving 15.1.11 Living SJ 15.1.12 Wayne Long, depute 15.1.13 Peter Stoddart 15.1.14 Aeroport de Saint John 15.1.15 Saint John Hotel Association 15.1.16 YMCA of Greater Saint John 15.2 Premier ministre B. Higgs : Discrimination raciale (Recommandation recevoir pour information) 16.Ordre du jour supplementaire 17. Comite plenier 18. Levee de la seance CI COUNCIL REPORT M&C No. 2020- 181 Report Date July 13, 2020 Meeting Date July 20, 2020 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT. Contract No. 2020-21 Crack Sealing 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 Mahoney Michael Hugenholtz/Brian Keenan John Collin RECOMMENDATION It is recommended that Contract No. 2020-21: Crack Sealing 2020 be awarded to the low Tenderer, Road Savers Maritime Limited, at the tendered price of $83,950.00 (including HST) as calculated based upon estimated quantities, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. 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- 21: Crack Sealing 2020 to the low Tenderer. PREVIOUS RESOLUTION 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. 61 -2- REPORT BACKGROUND The 2020 General Fund Operating Budget for Transportation and Environment Services includes a provision for the Crack Sealing of a number of streets in the City. Crack Sealing is an annual preventative maintenance activity applied to asphalt surfaces to preserve and extend their service life. The work consist generally of cleaning the asphalt pavement cracks by high velocity blowers and immediately filling the cracks with a hot rubberized joint sealing compound which adheres and seals cracks in the asphalt pavements. A sprinkle of cement or agricultural lime is then applied to prevent tracking of the sealant by vehicular traffic until the sealant cures. 111:111►101:1all ;O&il10W Tenders closed on July 7, 2020 with the following results, including HST: 1. Road Savers Maritime Ltd., Chester, NS $83,950.00 2. Classic Construction (2012) Ltd., Saint John, NB $123,050.00 The Engineer's estimate for the work was $101,200 including HST. ANALYSIS The tenders were reviewed by staff and were found to be formal in all respects. 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 General Fund Operating Budget. 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. C.1 -3- The analysis is as follows: Budget $ 100,000 Project net cost $ 76,100 Variance (Surplus) $ 23,900 Ili11[W=010101:1ilk] 1►[eIi]9K07►1.11:i0Ly1Eel ►[K07►11IIA_Ty161 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. SERVICEAND FINANCIAL OUTCOMES Asphalt pavements 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 N/a ATTACHMENTS N/a r51 COUNCIL REPORT M&C No. 2020-182 Report Date July 15, 2020 Meeting Date July 20, 2020 Service Area Saint John Water His Worship Mayor Don Darling and Members of Common Council SUBJECT: Environmental Trust Fund Letter of Offer, Re: City of Saint John Flood Risk Reduction and Overflow Mitigation Strategy OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Kendall Mason Brent McGovern I John Collin RECOMMENDATION It is recommended that: The Mayor and Common Clerk be authorized to sign the attached Environmental Trust Fund Letter of Offer, Re: City of Saint John Flood Risk Reduction and Overflow Mitigation Strategy. EXECUTIVE SUMMARY The purpose of this report is to recommend that the Mayor and Common Clerk be authorized to sign the attached Environmental Trust Fund Letter of Offer for The City of Saint John Flood Risk Reduction and Overflow Mitigation Strategy. PREVIOUS RESOLUTION August 2019; 2020 Utility Fund Capital Program Approved. (M&C No. 2019-204) December 4, 2019; Utility Fund Operating Budget Approved. (M&C No. 2019-318) STRATEGIC ALIGNMENT This report aligns with Council's Priority for Sustainable Infrastructure and this initiative supports the Council priority of making Saint John a community to live, work and play. E:3 -2- REPORT The City of Saint John operates its five -wastewater treatment facilities and associated sanitary collection systems under five approvals to operate, one per facility. These five approvals have requirements to immediately report environmental emergencies and provide all relevant information on any environmental emergency. This new requirement to report combined sewer overflows immediately has greatly increased the reporting workload for Staff. Within five days, the City of Saint John must submit a detailed emergency report to Department of Environment outlining the following: 1. Description of the environmental emergency; 2. Description of the problem that occurred; 3. The impact of the environmental event; 4. What was done to minimize the impact, and 5. Preventative measures being put in place for the future. The Approval to Operate for each facility also requires the City of Saint John to have a long-term plan to reduce combined sewer overflows and reduce overflows from infiltration of water into sewers. Considering the new requirements in the approval to operate collection systems for the immediate reporting of combined sewer overflows (CSO) and the need for a long-term plan to reduce combined sewer (CSO) overflows, the team at Saint John Water sought funding to develop a strategy to achieve both requirements. Saint John Water applied to the Environmental Trust fund to support a project to develop a strategy to accomplish the following: 1. Establish a baseline estimate of overflow frequency, duration and volume occurring at all CSO's / SSO's in the collection system. 2. Profile each location for water quality implications and human health. 3. Prioritization of CSO and SSO locations for future flow monitoring and SCADA integration (remote monitoring); and 4. Prioritization of areas for investments to reduce overflow events and improve water quality. Saint John Water received a letter from Hon. Jeff Carr, Minister of Environment and Local Government, Province of New Brunswick dated April 24, 2020, advising that our submission to the Provincial Environmental Trust Fund had been accepted and that the City of Saint John would receive $25,000 support towards the expense of developing a Flood Risk Reduction and Overflow Mitigation Strategy for the City of Saint John. Saint John Water received the Environmental Trust Fund Letter of Offer for The City of Saint John Flood Risk Reduction and Overflow Mitigation Strategy on July 8, 2020. In order to receive the funds under this program, it is necessary for the Mayor and Common Clerk to sign the Letter of Offer (copy attached). -3- SERVICE AND FINANCIAL OUTCOMES The $25,000 funding allocated through the Environmental Trust Fund is estimated it will cover two-thirds of the cost of the strategy development with the remaining balance approximately $15,000 being included in the Saint John Water operating budget. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Legal has reviewed the Letter of Offer and has advised that they "do not see any issue from a legal perspective". ATTACHMENTS Environmental Trust Fund Letter of Offer, Re: City of Saint John Flood Risk Reduction and Overflow Mitigation Strategy ito] ENVIRONMENTAL TRUST FUND LETTER OF OFFER Re: City of Saint John Flood Risk Reduction and Overflow Mitigation Strategy Project No.: 200119 The goals of this project are consistent with ongoing departmental initiatives and as such will contribute to important environmental objectives. Designated staff within the Department of Environment and Local Government (ELG) will be following the project to ensure that the outcomes are properly incorporated into appropriate departmental program areas. With respect to your application to the Environmental Trust Fund (ETF), an offer of financial assistance is hereby authorized by the Department of Environment and Local Government, hereafter referred to as the "Department" for the project herein contained subject to the following conditions. For the purposes of this project, the project costs are as follows: Award Amount: $25,000 Eligible Project Costs: • must submit a revised budget as per the attached form for approval • must work closely with Department staff - Prativa Pradhan Ineligible Project Costs: In addition to the foregoing, this offer is subject to the following terms and conditions: This offer is governed by the laws of the Province of New Brunswick. No contributions shall be made by the Department from the ETF with respect to any costs incurred other than the eligible project costs. The Department may approve eligible costs other than those set out above, but no costs except those specifically approved in writing by the Department will be considered eligible project costs for the purposes of this offer. The total Environmental Trust Fund contribution to the project will not exceed the original Environmental Trust Fund award. No changes shall be made in the scope, specifications and budget of the project without written consent from the Department. . A mandatory interim progress report is to be submitted to etf-ffe@gnb.ca by October 3V 2020. All financial claims received after this date will not be processed until the interim progress report has been received. . Financial claims requesting re-imbursement for expenditures may be submitted as required. Each financial claim for payment under the ETF must be submitted using the Detailed Claim Form to summarize expenditures and indicate the total amount requested, name of the project and contact information. If you are eligible for an HST rebate, subtract recoverable HST from the subtotal on 11 Page 1 of 3 200119 "' the ETF Claim Form. Photocopies of all paid invoices and photocopies of proof of payment, such as cancelled cheques, bank statements, receipts, must be included to support the request. Signed claim forms with related invoices and proof of payment can be emailed to etf-ffe r1,gnb.ca At the end of the funding period, there will be a 10"'/o holdback of project funding until a final report and all financial back-up, including proof of expenditure, has been received by the Department. A signed request must be submitted to the Departmental contact (Levis Th6riault) before the 10% holdback will be paid. Expenses incurred after March 31, 2021 will not be reimbursed. The final financial claim must be received by the Department no later than March 17, 2021. 8. A final report must be provided to etf-ffe@gnb.ca by March 1, 2021. The report must include a description of the project, how it was carried out and also elaborate on the project results and the measures of success. Any written material developed and printed for public distribution that promotes responsible environmental activities that may have regulatory requirements must be reviewed by the Department prior to publication. 10. In the event of an intentional breach of any of the terms and conditions of this Letter of Offer by the Recipient, no further contributions shall be made by the Department and all previous payments shall be returned to the Department within 30 days of written notification to that effect. 11. The New Brunswick Wordmark and the slogan "Your Environmental Trust Fund at Work" shall be displayed in a prominent location on all documents, signage and other printed media related to the project. The logo can be found at: htt://www2. b.ca/contentl blen/departments/government services/wordmark idelines.html or phone: (506) 457-4947. 12. The project site shall be accessible to Departmental staff on a continuing basis. Project records shall be made available to the Department for the purposes of auditing the financial records at a time mutually agreed upon. All records must be retained for audit purposes for a period of seven years following final payment on the project. 13. The Recipient must receive prior approval for any public announcement concerning the project, from the Department of Environment and Local Government. 14. The Recipient will at all times indemnify and save harmless New Brunswick, its officers, servants, employees, or agents, from and against all actions, whether in contract, tort or otherwise, claims and demands, losses, costs, damages, suits or other proceedings by whomsoever brought or prosecuted in any manner based upon or occasioned by any injury to persons, damage to or loss or destruction of property, economic loss or infringement of rights caused by, in connection with or arising directly or indirectly from this contract, or a project, except to the extent to which such actions, claims, demands, losses, costs, damages, suits or other proceedings relate to the negligence or breach of this Agreement by an officer, servant, employee or agent of New Brunswick in the performance of his or her duties. 15. This offer is to remain open until August 31, 2020. To indicate your acceptance, please return this Letter of Offer, signed by an authorized person to Levis Th6riault, Department of Environment and Local Government, PO Box 6000, Fredericton, NB E313 5111. It is important to note that any form Page 2 of 3 12 200119 of conditional acceptance of this offer renders the offer null and void. 1 . Is your organization eligible to receive an HST rebate from the Canadian Revenue Agency? Yes _ If yes, recoverable HST percentage: No — Sara eGr ce Assistant Deputy Minister, Department of Environment and Local Government This offer accepted this day of (month)„m (year) Signature of Recipient Name and title of Recipient (please print) Group name and address Witness: Signature of witness Name and title of witness (please print) Page 3 of 3 13 14 COUNCIL REPORT M&C No. 2020-186 Report Date July 13, 2020 Meeting Date July 20, 2020 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT. Enbridge Gas New Brunswick Inc. — Municipal Operating 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 Barb Crawford Michael Hugenholtz I John Collin RECOMMENDATION RESOLVED that Common Council authorizes the Mayor and Common Clerk to execute the Municipal Operating Agreement in the attached form between Liberty Utilities (Gas New Brunswick) LP, as represented by its general partner Liberty Utilities (Gas New Brunswick) Corp. ("Liberty") and the City of Saint John. EXECUTIVE SUMMARY Liberty's 20 year Municipal Operating Agreement with the City has expired and the parties have been involved in lengthy negotiations leading to the new Municipal Operating Agreement (10-year term) which features several changes that are more advantageous for the City. There were issues in the previous 20 year agreement that have been addressed through a collaborative negotiation process involving legal and infrastructure staff from the three large municipalities. These efforts, albeit extended, have led to a much better agreement for the 3 large municipalities and each municipality's staff is bringing the same agreement forward to their respective municipal council for approval. PREVIOUS RESOLUTION On May 25, 2020 resolved by Council to execute the revival and amending agreement between The City of Saint John and Liberty Utilities (Gas New Brunswick) LP, as represented by its general partner Liberty Utilities (Gas New Brunswick) Corp. 15 -2- On March 9, 2020 resolved by Council to execute the revival and amending agreement between The City of Saint John and Liberty Utilities (Gas New Brunswick) LP, as represented by its general partner Liberty Utilities (Gas New Brunswick) Corp. On September 9, 2019 resolved by Council to execute the revival and amending agreement between Enbridge Gas New Brunswick Inc. (Liberty's predecessor) and the City of Saint John. On August 14, 2000 resolved by Council to approve the Municipal Operating Agreement with Enbridge Gas New Brunswick Inc. (Liberty's predecessor), and authorize the Mayor and Common Clerk to execute the agreement. STRATEGIC ALIGNMENT Growth & Prosperity REPORT In 1999, the City entered into a Municipal Operating Agreement with Enbridge Gas New Brunswick ("EGNB") which sets the terms for the installation, operation and maintenance obligations respecting their natural gas distribution infrastructure within the bounds of the City. The Agreement's 20 year term came to an end effective August 315t, 2019. In the fall of 2019 and twice in the spring of 2020, the agreement was revised and amended to include an extension of the term. The revised and extended term ended June 30, 2020 and was necessary to accommodate the conclusion of negotiations between Liberty and Saint John, Moncton and Fredericton. The joint negotiation with the three large municipalities has led to a much stronger Municipal Operating Agreement with common terms. In October 2019, Liberty announced the acquisition of EGNB. Discussions between Liberty and representatives from Fredericton, Moncton and Saint John, respecting the provisions of a new Municipal Operating Agreement, took place between September 2019 and July 2020. The proposed 10 year agreement will commence July 1, 2020 and end June 30, 2030. As part of the proposed Municipal Operating Agreement, Liberty is now bound by the following new requirements: • Liberty shall, for any service lateral to a customer's property, make any and all reasonable efforts to have the meter for said service installed on a -3- non-street-facing fagade when a property is located within an area described as a "heritage conservation area" or a "municipal heritage conservation or preservation area" (collectively "Heritage Conservation Area"), established by by-law or pursuant to statute as the case may be. • Where the installation of bollard(s) is required in a Heritage Conservation Area, established by by-law or pursuant to statute as the case may be, such bollards shall conform to any specifications adopted by the Municipality, as amended from time to time, provided that such specifications do not compromise any safety protection to be provided by the bollard(s). • Liberty shall be subject to the pavement degradation fees prescribed by by-law of the Municipality, if any, as may be amended from time to time. • Liberty will pay, at the time of submission of drawings for installation and construction of pipeline, a fee for the processing of the submission by the Municipality in an amount equal to the current value of a Street Excavation Permit, as set by by-law. Such fee is intended to reimburse the costs incurred by the Municipality for administration and review of the submission, processing the necessary approvals and/or permits, record keeping and inspections. • In a case where Liberty directionally drills within the Municipality: o Liberty shall perform a CCTV video inspection of any municipal infrastructure (including laterals) that may have been impacted as a result of new construction at the request of the Engineer. Attached is a copy of the recommended Municipal Operating Agreement for Common Council's consideration. SERVICEAND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS From the outset of and throughout negotiations, legal counsel for each of the three large municipalities were involved in the drafting of the Municipal Operating Agreement and the respective engineering departments were engaged in providing ongoing policy input and advice. Accordingly, review of the proposed Municipal Operating Agreement has engaged the City Solicitor's Office, Transportation and Environment Services, Heritage and Infrastructure Development. ATTACHMENTS Recommended Municipal Operating Agreement that has been reviewed by the City's Solicitor's Office. 17 Municipal Operating Agreement THIS AGREEMENT is made effective on July 1, 2020 and reduced to writing on July 14, 2020. 1:1ByI S•Aof01 THE CITY OF SAINT JOHN, a municipal corporation under the laws of the Province of New Brunswick (the "Municipality") -and- LIBERTY UTILITIES (GAS NEW BRUNSWICK) LP, as represented by its general partner LIBERTY UTILITIES (GAS NEW BRUNSWICK) CORP. ("Liberty") WHEREAS Liberty has a general franchise pursuant to the Gas Distribution Act, 1999 to distribute gas and provide customer services in the Province of New Brunswick until August 30, 2044; AND WHEREAS the Municipality and Enbridge Gas New Brunswick Limited Partnership, as represented by its general partner Enbridge Gas New Brunswick Inc. ("EGNB") entered into a Municipal Operating Agreement dated August 14, 2000; AND WHEREAS on October 1, 2019, the name "Enbridge Gas New Brunswick Inc." was changed to "Liberty Utilities (Gas New Brunswick) Corp." and the name of "Enbridge Gas New Brunswick Limited Partnership" was changed to "Liberty Utilities (Gas New Brunswick) LP"; AND WHEREAS Liberty desires, at its own cost, to install and operate its gas distribution system within the geographic bounds of the Municipality upon the terms and conditions provided in this Agreement; AND WHEREAS the Municipality owns and maintains highways within the Municipality; AND WHEREAS the parties consider natural gas to be an alternative to traditional sources of energy and wish to ensure the timely availability of natural gas to residents of the Municipality; AND WHEREAS by Resolution adopted by the Council of the Municipality, the Mayor and the Common Clerk have been authorized to execute this Agreement on behalf of the Municipality; (33997104_1) 18 IBM NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the sum of $1.00 paid by each party to the other and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Municipality and Liberty agree as follows: I. Definitions 1. In this Agreement: (a) "Claim" means a claim, demand, writ, process, notice or written proceeding pertaining to damages to any property and/or injuries, including death, to any person or persons and includes any mandatory order, direction or notice from a governmental authority requiring a party, its servants, agents or employees, to monitor, remediate, repair, neutralize or otherwise address any environmental pollutant or contaminant; (b) "Engineer" means the engineer appointed pursuant to the terms of the Local Governance Act with responsibility for the Municipality's engineering needs or his or her designate, or the director responsible for the engineering department of the Municipality or his or her designate; (c) "gas" means any hydrocarbon or mixture of hydrocarbons that, at a temperature of 15 degrees Celsius and an absolute pressure of 101.325 kilopascals, is in a gaseous state; (d) "gas distribution system" means all property and works within the Municipality between the city gate station up to and including the meter including such mains, plants, pipes, meters, pipelines, conduits, services, valves, regulators, curb boxes, stations, drips or such other equipment as Liberty may reasonably require for the distribution of gas in or through the geographic bounds of the Municipality; (e) "highway" means all common and public highways (which includes any public street, road, lane, alley, way or catchbasin with roadwork) and shall include any bridge, viaduct or structure forming part of a highway, and any road allowance or walkway and shall include not only the travelled portion of such highway, but also ditches, driveways, sidewalks, and sodded areas forming part of the road allowance, now or at any time during the term hereof, under the jurisdiction or authority of the Municipality; M "municipal infrastructure" means structures owned by the Municipality contained within a highway including but not limited to water pipelines and all appurtenances thereto, sanitary and storm sewer pipelines and all appurtenances thereto, culverts, traffic control devices, signs, curbs, sidewalks, asphalt surface including sub -base, landscaping, trees, bridges, viaducts, street light standards, parking meters, civic monuments, and bus shelters; (g) "Municipality" means the territorial limits of the Municipality on the date when this Agreement takes effect, and any territory which may thereafter be brought within the jurisdiction of the Municipality, and "Municipal" shall have a like meaning. i&6] -3- I1. Non-exclusive Licence To Use Highway Allowances (a) Subject to the provisions of this Agreement, the Municipality hereby grants to Liberty a non-exclusive licence irrevocable for the Term and any renewal thereof to enter upon all highways now or at any time hereafter under the jurisdiction of the Municipality and to install, construct, maintain, replace, remove, operate and repair a gas distribution system for the distribution of gas in and through the geographic bounds of the Municipality. (b) Notwithstanding the definition of highway, this Agreement does not grant a right to attach gas lines or other parts of a gas distribution system to any bridges or viaducts owned by the Municipality; the attachment of gas lines or other parts of the gas distribution system to such structures must be applied for explicitly by Liberty on a case by case basis and are subject to the prior written approval of the Engineer. (c) The exercise of the non-exclusive irrevocable licence granted in accordance with the terms and conditions of this Agreement must be carried out by Liberty in compliance with all applicable federal and provincial statutes, laws and regulations and municipal by-laws of general application. For greater certainty, municipal by-laws that are not of general application shall not be binding upon Liberty. (d) The non-exclusive licence granted by this Agreement does not extend to the construction, operation or maintenance of any fibre optics cable or any other electronic communication system, except such communications as may form an integral part and be required for the proper operation of the gas distribution system. 2. Alternative Easement The Municipality will, in the event of the stopping up and closing of any highway or any part of a highway where a gas line has been constructed in accordance with this Agreement, give Liberty reasonable notice of such stopping up and closing and will provide Liberty with easements over that part of the highway stopped up and closed sufficient to allow Liberty to preserve any part of the gas distribution system in its then existing location, provided however where a stopping up and closing of any highway is carried out to facilitate development of adjacent lands, any gas line located within that part of the highway stopped up and closed may at the election of the Municipality and without cost to Liberty be relocated. 3. Duration of Agreement and Renewal Procedures (a) Notwithstanding the date signed, this Agreement and the non-exclusive licence hereby granted to Liberty shall be for a term of ten (10) years (the "Term"), commencing on July 1, 2020 and ending on June 30, 2030. (b) This Agreement may be extended by mutual consent of the parties, acknowledged in writing at any time prior to July 1, 2030, for one (1) additional ten (10) year term upon KII -4- the same terms and conditions. The extended term would commence on July 1, 2030 and would end on June 30, 2040. (c) In the event the parties do not agree to extend the Term upon the same terms and conditions prior to July 1, 2029, either party may apply to the New Brunswick Energy and Utilities Board (the "Board") at any time after July 1, 2029 to establish an appropriate extension term and to resolve any other contractual issues that may not have been agreed to. 4. Ownership of Gas Distribution System The Municipality and Liberty acknowledge and agree that title to and ownership of the gas distribution system shall at all times during the Term, any renewal thereof and at all times following the expiration or termination thereof, be vested in Liberty notwithstanding any rule of law as to the immediate vesting of title to and ownership of the gas distribution system in the owner of the freehold. III. Approvals and Other Conditions 1. Construction at Gas Company's Cost Subject to the terms and conditions contained herein, Liberty shall pay the costs of installing and operating its gas distribution system within the municipality. 2. Approval of Construction/Permits (a) Liberty shall meet with the Engineer from time to time, at the request of either party upon reasonable notice, for the purposes of exchanging known or proposed projects of the Municipality and proposed servicing plans of Liberty respecting work that is anticipated to take place during the following calendar year. (b) At least twenty (20) business days before beginning construction of, or any planned extension or change to, the gas distribution system saving and excepting service laterals, Liberty shall file with the Engineer a plan, stamped by a Professional Engineer registered in the Province of New Brunswick, satisfactory to the Engineer, drawn to scale and of sufficient detail considering the complexity of the specific location, showing the highways in which it proposes to lay its gas distribution system and the particular parts thereof it proposes to occupy. The plan shall show the location, depth and dimensions of the proposed pipelines and, to the extent information is provided by the Municipality in hard copy and/or electronic format, all existing municipal infrastructure, including existing sewer pipes, water mains, service connections and other underground utilities within the highway and, to the extent information is provided by the Municipality in electronic format, pavement surface, curbs, drainage ditches, sidewalks, trees, street lights, fire hydrants, curb stops, valve boxes, property lines and other relevant features with respect to the construction to be undertaken. With respect to short main extensions, the Municipality shall make every effort to expedite the process unless the Engineer is of the opinion that the circumstances are sufficiently unusual to require further review. 21 -5- (c) Geodetic (vertical) information will not be required from Liberty except in complex urban intersections or in other locations specified by the Engineer in order to facilitate known or proposed projects which are reasonably anticipated by the Engineer to be installed or constructed in the future. Unless otherwise approved by the Engineer, Liberty and the Municipality agree that the gas distribution system, including new service laterals in the highway off of new mains, will be installed at a minimum depth of 900 mm from the existing or planned finished grade and Liberty will relocate, as required by the Municipality, gas lines originally installed less than 600 mm in depth and shall be responsible for all costs associated with the relocation. (d) The Engineer may require sections of the gas distribution system to be laid at a greater depth than required by CSA-Z662, or any successor standard to CSA-Z662, to facilitate known or proposed projects or existing municipal infrastructure. (e) The location of the work as shown on the plan submitted in accordance with subsection (b) above must be approved by the Engineer before the commencement of the work and the timing, special terms and conditions relating to the installation of such works shall be to his or her satisfaction. The Engineer shall be the final approval authority for the location of all portions of the gas distribution system located within the highways. (f) No excavation, opening, or work in, on or under a highway by Liberty will be commenced until an approval and/or permit therefor has first been obtained from the Engineer as provided in subsection (e). An application for an approval and/or permit shall be processed within ten (10) business days of receipt unless there are unusual circumstances. The approval of the Engineer shall not be unreasonably withheld. (g) Notwithstanding subsection (f) above, where Liberty is undertaking construction of a customer's service lateral in the highway, Liberty shall, before undertaking construction, obtain an approval and/or permit. An application for an approval and/or permit under this subsection shall be processed within five (5) business days of receipt unless the Engineer is of the opinion that further time is required owing to technical considerations. The approval of the Engineer shall not be unreasonably withheld. On or before January 31 of each calendar year, Liberty shall provide the Municipality with a list of service laterals installed in the municipality in the immediately preceding calendar year. (h) In the event of any emergency, Liberty shall not be required to obtain an approval and/or permit prior to excavation but shall, on the next business day, submit a report and sketch to the Engineer for the work undertaken. IV. Construction Reinstatement (a) Liberty shall, to the satisfaction of the Engineer, restore or cause to be restored, at its cost, all highways or municipal infrastructure which it may excavate or interfere with in the course of installing, constructing, repairing or removing its gas distribution system WA M located within highways, and shall, to the satisfaction of the Engineer, make good any settling or subsidence thereafter caused by such excavation or interference. Unless otherwise agreed by the parties, where the excavation takes place on a highway that has been paved within the previous five (5) years and where the excavation requires a longitudinal cut of the asphalt surface in excess of ten (10) metres, Liberty will restore and resurface the affected area for the length of the excavation, from curb to curb, provided that if an excavation (which shall not include daylight holes) involves more than one (1) longitudinal asphalt cut and those asphalt cuts are within ten (10) metres of each other (measured closest asphalt edge cut to closest asphalt edge cut) and the total of their lengths exceeds ten (10) metres, Liberty will restore and resurface the affected area from curb to curb (measured from furthest asphalt edge cut to furthest asphalt edge cut). Liberty shall be subject to the pavement degradation fees prescribed by by-law of the Municipality, if any, as may be amended from time to time. (b) Unless otherwise agreed by the parties, to guarantee against the cost of restoration of highways to the satisfaction of the Engineer, Liberty shall provide (at its option) to the Municipality either: (i) an irrevocable standby letter of credit issued by a chartered bank in the amount of $25,000 (to be replaced and provided annually to the Municipality); or (ii) a certified cheque issued by a chartered bank or a cash deposit in the amount of $25,000 (to be replenished annually by Liberty, if necessary, to ensure an amount of security of $25,000 is maintained), ((i) or (ii), as applicable hereinafter referred to as the "Guarantee") Should Liberty fail within a reasonable time to do any work required by Article IV L(a), the Municipality may do or cause such work to be done and Liberty shall, on demand, pay any reasonable account therefor as certified by the Engineer. Should Liberty fail to pay such amounts forthwith on demand, the Municipality will draw on the Guarantee to pay the sum demanded (but only to such extent). The Municipality agrees to return the Guarantee to Liberty as soon as practicable upon the expiration or termination of this Agreement. (c) Liberty hereby warrants and agrees that all restorations or reinstatement of highways carried out by EGNB under the previous agreement or by Liberty under this Agreement will endure until the road foundation is reconstructed. 2. Heritage (a) Liberty shall, for any service lateral to a customer's property, make any and all reasonable efforts to have the meter for said service installed on a non -street -facing fagade when a property is located within an area described as a "heritage conservation area" or a "municipal heritage conservation or preservation area" (collectively "Heritage Conservation Area"), established by by-law or pursuant to statute as the case may be. W -7- (b) Where the installation of bollard(s) is required in a Heritage Conservation Area, established by by-law or pursuant to statute as the case may be, such bollards shall conform to any specifications adopted by the Municipality, as amended from time to time, provided that such specifications do not compromise any safety protection to be provided by the bollard(s). 3. Damage to Municipal Property (a) If any portion of any highway or municipal infrastructure is damaged by reason of defects in any portion of the gas distribution system, as carried out by EGNB under the previous agreement or by Liberty under this Agreement, or by reason of any other cause arising directly from the presence of the gas distribution system, Liberty shall, at its own expense, immediately repair any such damage and restore such portion of such damaged highway or municipal infrastructure to as good or better condition as existed before such defect or other cause of damage occurred, such work to be done under the direction of the Engineer, and to his satisfaction. (b) Trees within highways are to be protected at all times. The gas distribution system is to be designed on the premise that, unless approved by the Engineer, municipal trees are not to be adversely affected by the installation or operation of the gas distribution system. (c) If any trees within highways are damaged or destroyed by reason of defects in any portion of the gas distribution system maintained or constructed under this Agreement, or by reason of any other cause arising directly from the installation or operation of any gas distribution system constructed or maintained under this Agreement, Liberty shall, at its own cost and expense, repair any such damage or replace such trees under the direction and to the satisfaction of the Engineer. (d) In a case where Liberty directionally drills within the Municipality: (i) Liberty shall perform a CCTV video inspection of any municipal infrastructure (including laterals) that may have been impacted as a result of new construction at the request of the Engineer; and (ii) in the event that Liberty drills through or otherwise damages any municipal infrastructure subsequent to the execution of this Agreement, as discovered at the time or subsequently by the Municipality or Liberty, Liberty shall reinstate such municipal infrastructure of the Municipality to the satisfaction of the Engineer at its sole expense, failing which the security identified in Article IV L(b) hereof shall be available to recover such costs. 4. Traffic Control Liberty shall be responsible for appropriate traffic and pedestrian control measures, and adhere to the Municipality's Work Zone Safety Manual, Work Area Traffic Control Manual or other traffic control requirements where applicable, while working within the highways. Where such work requires the temporary re-routing 0&1 WIN of traffic within the highway, Liberty shall request approval from the Engineer at least two (2) business days in advance of the re-routing. If requested by the Engineer, Liberty shall also notify the general public of such traffic diversions, through the local media, at least twenty-four (24) hours prior to the re-routing. 5. Construction Methods The Engineer may request that construction of gas lines including service laterals be by directional drilling and not by trenching, provided that Liberty will determine the manner of construction, acting reasonably. 6. As -Constructed Drawings (a) Liberty shall not deviate from the approved location for any part of the gas distribution system unless the prior approval of the Engineer to do so has been received. (b) Liberty must, at its own expense, supply to the Municipality stamped "As Constructed" drawings in electronic format compatible with the Municipality's corporate GIS system by the end of the calendar year of commissioning that portion of the gas distribution system. The As -Constructed drawings must horizontally locate the gas distribution system relative to the New Brunswick Grid Co -Ordinate System (NAD 83CSRS) or any system substituted in lieu thereof and show depth of cover. Liberty must also supply an X - Y co-ordinate list of each point surveyed (and a Z co-ordinate where required by Article III 2.(c)) and shown on the As -Constructed drawings. (c) Subsections (a) and (b) do not apply to service laterals. 7. Emergencies In the event of an emergency involving the gas distribution system, Liberty will proceed with the work to address the emergency and in any instance where prior approval of the Engineer is normally required, shall use its best efforts to immediately notify the Engineer of the location and nature of the emergency and the work being done. 8. Indemnification (a) Liberty shall, at all times, indemnify and save harmless the Municipality, its agents, officers, elected officials and employees from and against all losses, damages, claims, costs or expenses incurred in connection with Claims arising out of Liberty installing, operating, constructing, relocating and maintaining its gas distribution system in the municipality, or utilizing its gas distribution system for the carriage of gas owned by others. Provided that Liberty shall not be required to indemnify or save harmless the Municipality from and against losses, damages, claims, costs or expenses incurred in connection with Claims resulting from the negligence or wrongful act of the Municipality, its servants, agents, officers, elected officials or employees, or for losses, damages, claims, costs or expenses incurred in connection with Claims related to environmental pollutants or contaminants not caused by Liberty. OR (b) The obligation of Liberty provided in subsection (a) above shall survive the termination of this Agreement. 9. Insurance Liberty shall deliver to the Municipality a Certificate of Insurance naming the Municipality as an additional insured evidencing a policy of commercial general liability coverage on "an occurrence basis" and containing a cross -liability clause which policy has an inclusive limit of not less than $10,000,000. The aforesaid certificate must provide that the coverage will stay in force and not be amended, cancelled or allowed to lapse without thirty (30) business days' prior written notice being given to the Municipality. The insurance coverage must remain in full force and effect during the term of this Agreement and any renewal(s) thereof. These insurance policies shall be provided from an insurance company licensed to do business in the Province of New Brunswick. 10. Public Notification At the request of the Engineer, Liberty will give reasonable notice to the public of all major construction taking place within a highway and respond to all inquiries relative to the installation of the gas distribution system. V. Operational Pipeline Relocation If in the course of constructing, reconstructing, changing, altering or improving any highway or any municipal infrastructure located in the highway, the Municipality, acting reasonably, deems that it is necessary to take up, remove or change the location of any part of the gas distribution system, Liberty shall upon notice from the Municipality remove and/or relocate within a reasonable period of time such part of the gas distribution system to a location approved by the Engineer. 2. Pa gnent Where any part of the gas distribution system relocated in accordance with this section is located other than on a bridge, viaduct or structure, the costs of relocation shall be shared between the Municipality and Liberty on the basis of the total relocation costs, excluding the value of any upgrading of the gas distribution system, and deducting any contribution paid to Liberty by others in respect to such relocation as follows: (a) where the relocation is a result of highway work or conflicts in elevation with any sewer crossing(s) and occurs within two years of the installation of the portion of the gas distribution system to be relocated, the costs shall be paid 100% by the Municipality; (b) where the relocation is a result of highway work, or conflicts in elevation with any sewer crossing(s) and occurs after the end of the second year following the installation of the portion of the gas distribution system to be relocated, but within five years, the costs shall be shared 65% by Liberty and 35% by the Municipality; (c) where the relocation is a result of highway work or conflicts in elevation with any sewer crossing(s) and occurs after the end of the fifth year following the installation of the portion of the gas distribution system to be relocated, the costs shall be paid 100% by Liberty; and 41.1 -10- (d) where the relocation is a result of any municipal infrastructure other than highway work or conflicts in elevation with any sewer crossing(s), the costs shall be paid 100% by the Municipality. Where any part of the gas distribution system relocated in accordance with this section is located on a bridge, viaduct or structure, Liberty shall alter or relocate, at its sole expense, such part of the gas distribution system. 3. Disposition of Gas Distribution System (a) During the term of this Agreement, if Liberty abandons a part of its gas distribution system affixed to a bridge, viaduct or structure owned by the Municipality, Liberty shall, at its sole expense, remove that part of its gas distribution system affixed to the bridge, viaduct or structure. (b) If at any time Liberty abandons any part of its gas distribution system located within highways, it shall deactivate that part of its gas distribution system in the municipality in accordance with applicable industry/regulatory standards, as amended from time to time. Thereafter, Liberty shall have the right, provided the part of its gas distribution system was properly decommissioned, but nothing herein contained shall require it to remove that part of its gas distribution system. Liberty shall provide notice to the Municipality if it chooses not to remove that part of its gas distribution system. If Liberty fails to remove that part of its gas distribution system and the Municipality requires the removal of all or any of the gas distribution system for the purpose of altering or improving a highway or in order to facilitate the construction of utility or other works in any highway, the Municipality may remove and dispose of so much of the deactivated gas distribution system as the Municipality may require for such purposes and neither party shall have recourse against the other for any loss, costs, expenses or damage occasioned thereby. (c) Any portion of the gas distribution system which has been abandoned shall be noted and submitted to the Municipality via an As -Constructed drawing for gas mains or an abandoned pipe listing for service laterals. When Liberty completes a gas locate for the Municipality, Liberty will indicate (on the locate sheet) the presence of any abandoned gas plant in the comments section of the locate form. VI. Fees and Contributions 1. Permit — Processing Costs (a) [Intentionally deleted] (b) Liberty will pay, at the time of submission of drawings for installation and construction of pipeline as set out in Article III 2.(b), a fee for the processing of the submission by the Municipality in an amount equal to the current value of a Street Excavation Permit, as set by by-law. Such fee is intended to reimburse the costs incurred by the Municipality WA USE for administration and review of the submission, processing the necessary approvals and/or permits, record keeping and inspections. (c) Where Liberty is proposing to construct a service lateral which will not materially interfere with any municipal infrastructure or impede traffic on the relevant highway, no fee for processing the notification will be required. (d) Payment of the fee under Article VI L(b) is in lieu of any municipal fees and, except to the extent provided in Articles IV L(a) and IV L(b) of this Agreement, Liberty shall not be required to make any other payments to the Municipality that in any way relate to the gas distribution system. 2. Trainin (a) Liberty will, in cooperation with and to the satisfaction of the Municipality, provide without charge to the Municipality training (including refresher courses as necessary) for the municipal operations or public works staff as to the appropriate measures for excavating and working in the vicinity of gas pipelines. (b) Liberty will, in co-operation with and to the satisfaction of the Municipality, provide without charge to the Municipality training (including refresher courses as necessary) for firefighting staff and Emergency Management Organization (EMO) officials as to how to respond to emergencies arising in connection with the construction or operation of the gas distribution system. 3. Locations Liberty will provide without charge, line location services to the Municipality, together with a 24 hour 7 day emergency locate service. VII. Miscellaneous 1. Condition of Municipal Infrastructure (a) The Municipality makes no representations or warranties as to the state of repair of its highways or municipal infrastructure or the suitability of same for any business, activity or purpose whatsoever and Liberty hereby takes the said highways or municipal infrastructure on an "as is, where is" basis. Provided, however, that this paragraph shall not in any way limit the Municipality's responsibility or liability for its own negligence or wrongful acts. (b) Notwithstanding Article VII L(a), in the event that Liberty encounters any existing environmental pollutant or contaminant while installing its pipelines, Liberty shall, at its cost and in an environmentally responsible manner, dispose of the material it removes in the course of installing its pipelines; provided, however, that the Municipality shall indemnify Liberty, its agents, officers, directors and employees from and against all losses, damages, claims, costs or expenses incurred in connection with or as a result of any order, direction or notice from a governmental authority requiring Liberty, its K-11 -12- agents, officers, directors or employees to monitor, remediate, repair, neutralize or otherwise address the remaining environmental pollutant or contaminant, and the Municipality shall make no Claim against Liberty in relation to that environmental pollutant or contaminant except to the extent that such a Claim arises as a result of a breach of this Agreement by or on behalf of Liberty or the negligence or willful act or omission of Liberty. The foregoing shall survive the termination of this Agreement. 2. Dispute Resolution In the event of any dispute arising out of or relating to this Agreement, the parties agree that the matter at issue shall be referred to the City Manager, City Administrator or Chief Administrative Officer (as the case may be) on behalf of the Municipality and the Manager, Operations on behalf of Liberty for resolution. In the event that the said City Manager, City Administrator or Chief Administrative Officer (as the case may be) and Manager, Operations cannot resolve the matter at issue, either the Municipality or Liberty may refer the matter at issue to the Board whose decision shall be final and conclusive. Any responsibility for costs shall be determined by the Board. 3. Acting Reasonably The Engineer, in carrying out his functions and obligations (which shall include granting approvals) pursuant to this Agreement shall act in a reasonable manner. 4. Most Favoured Nation Liberty will provide to the Municipality copies of any other licence or operating agreements entered into between Liberty and other municipalities situated in the Province of New Brunswick. To the extent that provisions in such agreements are more favourable to the municipalities than the provisions in favour of the Municipality in this Agreement, the Municipality may request that the benefit of such provisions be extended to the Municipality and Liberty and the Municipality shall amend this Agreement accordingly. The election to adopt provisions from such other agreements shall be in the entire discretion of the Municipality but shall be made in a timely manner once the Municipality becomes aware of the provisions in such other agreements. 5. Amendments Except as herein otherwise provided, no amendment, waiver, discharge or termination of any provision of this Agreement and no waiver of any breach by any party of any provision of this Agreement shall be effective unless it is in writing, and then the amendment, waiver, discharge or termination shall be effective only in the specific instance, for the specific purpose and for the specific length of time for which it is given. 6. Notice Any notice, demand, approval, consent, information, request or other communication (hereinafter referred to as a "Notice") to be given under or in connection with this Agreement shall be in writing and shall be given by personal delivery, or by fax or other electronic communication which results in a written or printed notice being given, addressed or sent as set out below or to such other address or electronic number as may from time to time be the subject of a Notice: We%] -13- (a) the Municipality: The City of Saint John 15 Market Square, PO Box 1971 Saint John, NB E21, 4L1 Attention: Common Clerk Email: commonclerk a@saintjohn.ca Fax: (506) 674-4214 (b) Liberty: Liberty Utilities (Gas New Brunswick) Corp. 440 Wilsey Road, Suite 203 Fredericton, NB E3B 7G5 Attention: Vice -President Email: Mlles.volpe@libertyutilities.com Fax: (506) 452-2868 Any Notice, if personally delivered, shall be deemed to have been validly and effectively given and received on the date of such delivery and if sent by fax or other electronic communication with confirmation of transmission, shall be deemed to have been validly and effectively given and received on the business day following the day it was sent. 7. Entire Agreement This Agreement is the entire agreement between the Municipality and Liberty regarding the subject of this Agreement and it can be amended or supplemented only by a document executed in writing by both the Municipality and Liberty. 8. Relationship (a) Nothing herein or any acts of, nor arrangements between, the Municipality and Liberty shall be construed to mean or imply that the Municipality and Liberty are carrying on business as a joint venture, in partnership, as principal and agent, master and servant, or any other relationship. (b) The Municipality acknowledges that it will not assert that a joint venture, partnership or principal and agent relationship exists between the Province of New Brunswick and Liberty. 9. Further Assurances Each party to this Agreement shall from time to time promptly upon the reasonable request of the other party take such action, and execute and deliver such further documents, as shall be reasonably required in order to fully perform the terms of, and carry out the intention of, this Agreement. Such action, execution or delivery shall be done at the expense of the party so requesting. 10. Assignment Neither the Municipality nor Liberty shall assign or transfer this Agreement or the privileges given by it without the written consent of the other party first had and 091 -14- obtained, and the consent shall not be unreasonably withheld. Together with any request for consent, an assignor shall provide the other parry with the assignee's written confirmation that the assignee is familiar with the terms of this Agreement and agrees to be bound by the terms of this Agreement. 11. Enurement This Agreement shall enure to the benefit of and be binding upon the Municipality and Liberty and their respective successors and permitted assigns. 12. Counterparts This Agreement may be executed and delivered in counterparts, each of which, when so executed and delivered, shall be deemed to be an original and such counterparts together shall constitute one and the same agreement. 13. Number and Gender Unless otherwise specified, words importing the singular include the plural and vice versa and words importing gender include all genders. 14. Governing Law This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the Province of New Brunswick and of Canada applicable therein and Liberty and the Municipality irrevocably submit to the jurisdiction of the Courts of New Brunswick. 15. Severability Any provision of this Agreement which is illegal, invalid or unenforceable shall not affect the legality, validity or enforceability of the remaining provisions. 16. Time of the Essence Time shall be of the essence in this Agreement. 17. Headings The headings used in this Agreement are for reference only and do not define, limit or otherwise affect the meaning of any provisions hereof 18. Representation Liberty represents and warrants to the Municipality that it will install, construct, maintain, replace, remove, relocate, operate and repair the gas distribution system in a competent and professional manner that is consistent with the same standards of professional skill and competence applicable to generally recognized providers of services of the same type. 19. Force Majeure The parties shall not be responsible for any failure or delay in the performance of any obligations hereunder caused by acts of God, earthquake, flood, fire or other natural disaster, war, terrorism, blockade, strike, labour dispute, civil commotion, epidemic, pandemic, stop -work order, injunction or other causes beyond their reasonable control. 20. Right to Information and Protection of Privacy Act The parties acknowledge and understand that the Municipality is subject to the Right to Information and Protection of Privacy Act (SNB 2009, c. R-10.6, as amended), and as such, disclosure and confidentiality obligations are governed thereunder. 31 -15- 21. Costs It is acknowledged that each party shall pay its own costs, charges and expenses of and incidental to the preparation of this Agreement. IN WITNESS WHEREOF the parties hereto have duly executed these presents with effect from the date first above written. THE CITY OF SAINT JOHN by Don Darling Mayor Jonathan Taylor Common Clerk LIBERTY UTILITIES (GAS NEW BRUNSWICK) LP, as represented by its general partner LIBERTY UTILITIES (GAS NEW BRUNSWICK) CORP. by ides Volpe " Vice -President WA PROVINCE OF NEW BRUNSWICK COUNTY OF SAINT JOHN AFFIDAVIT OF CORPORATE EXECUTION I, JONATHAN TAYLOR, of The City of Saint John, in the County of Saint John and Province of New Brunswick, MAKE OATH AND SAY AS FOLLOWS: 1. I am the Common Clerk of The City of Saint John, one of the parties named in the foregoing instrument and as such I have personal knowledge of the matters herein deposed to. 2. The seal affixed to the foregoing instrument purporting to be the seal of The City of Saint John is the Corporate Seal of The City of Saint John and was so affixed by order of the City Council. 3. The signature "Don Darling" subscribed to the foregoing instrument is the signature of Don Darling, the Mayor of The City of Saint John, and the signature "Jonathan Taylor" subscribed thereto is my signature. 4. The Mayor and Common Clerk are officers of The City of Saint duly authorized to execute the foregoing instrument. SWORN TO BEFORE ME at The City of Saint John, in the County of Saint John and Province of New Brunswick, this day of July, 2020. A Commissioner of Oaths Being a Solicitor JONATHAN TAYLOR 091 PROVINCE OF NEW BRUNSWICK COUNTY OF YORK 1, GILLES VOLPE, of the City of Fredericton, in the County of York and Province of New Brunswick, MAKE OATH AND SAY THAT: 1. I am the Vice -President of Liberty Utilities (Gas New Brunswick) Corp. (hereinafter called the "Company"), and as such have personal knowledge of all matters sworn to herein. 2. The signature "Gilles Volpe" subscribed thereto is my signature. 3. The Vice -President is the officer of the Company duly authorized to execute the foregoing instrument. SWORN TO BEFORE ME at the City ) of Fredericton, in the County of York ) and Province of New Brunswick, this ) 14th day of Jul , 2020. ) } _1,4 A issioner o Oa s ILLES O Being a Solicitor COUNCIL REPORT M&C No. 2020-180 Report Date July 09, 2020 Meeting Date July 20, 2020 Service Area Corporate Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: ABC Written Reports — May 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 Richard Evans Jonathan Taylor John Collin RECOMMENDATION That Common Council receive for information the May 2020 ABC written reports. PREVIOUS RESOLUTION The following resolution was adopted by Common Council in February 2016: RESOLVED that as recommended by the City Manager in the submitted report entitled, M&C 2016-025: 2016 Reporting Program for ABCs, Common Council direct the Common Clerk to schedule and implement the 2016 ABC reporting program. EXECUTIVE SUMMARY In February 2016, the ABC reporting framework to Common Council was approved. Within this framework was the provision for the ABCs listed below to submit two written reports annually (May and September): • Discover Saint John • Develop SJ • Economic Development Greater Saint John (Formerly Enterprise Saint John) • Harbour Station • Saint John Aquatic Centre Commission • Saint John Arts Centre • Saint John Board of Police Commissioners • Saint John Energy • Saint John Parking Commission/Transit Commission W -2- • Saint John Trade and Convention Centre ATTACHMENTS ABC Written Reports — May 2020 01.1 2020 ABC Written Submission Develop Saint John May 2020 To grow Saint John's tax base. We relentlessly grow the Saint John tax base by providing services, expertise and network connections to get deals done. Through our efforts we: 1. Increase a project's probability of success; 2. Expedite project development timelines; and, 3. Proactively seek out new development opportunities with current clients, prospects and other community stakeholders. 1. Leslie Magee, Chair —appointed by City of Saint John 2. Cynthia Goodwin, Vice -chair —appointed by City of Saint John 3. Peter Allaby, Secretary/Treasurer — appointed by the Province of New Brunswick 4. Francis Power, Past Chair — appointed by City of Saint John 5. Gerry Lowe, Director and MLA — appointed by City of Saint John 6. Alanna Waberski, Director — appointed by City of Saint John 7. Stephen Kopp — appointed by City of Saint John 8. Mayor Don Darling — Ex -off icio 9. City Manager John Collin — Ex-Officio 5 total. (currently 1 vacant position not to be filled for remainder of 2020) $838,727 Revenues Operating grant — City of Saint John 838,727 Other Revenue 100,000 Government of Canada 180,000 Province of NB 74,000 SJ Industrial Parks 225,000 TOTAL Revenue 1,417,727 Functions, roles and responsibilities are being mapped out for Develop Saint John, the One Stop Development Shop and the Real Estate Department to identify gaps, minimize overlap, maximize overall efficiency and improve customer service. Expenses 2020 Budget Wages and Benefits 635,000 Office, Admin and IT 98,630 Marketing 80,000 Strategic Projects 140,000 Professional Development 6,000 Business Development 130,000 Kul Saint John Industrial Parks Affordable Neighbourhood Expenses rDepreciation Surplus (deficit) before depreciation Depreciation Annual Surplus (deficit) 205,000 173,000 1,467,630 -49,903 210,590 -260,493 Develop Saint John has reduced expenses, including not filling a vacant position, to mitigate the impact of the current COVID-19 crisis. 2020 Corporate Goals • Drive $96M in tax base growth by getting 90% of potential construction projects out of the ground. • Drive $127M in tax base growth by getting 50% of proposed projects through the Land Use Approvals phase. As of mid -May 2020 • Develop Saint John is involved in $40M in construction projects currently underway (out of the ground). We are on track to meet our 2020 target. • Develop Saint John is involved in $30M in approved construction projects. We should be on track to meet our 2020 target, however, there are a few risks associated with some large projects. Develop Saint John was active in the following projects: • Leading negotiations with Provincial and Federal partners and private sector developers in three key strategic project: o The Fundy Quay development site o Leading the Central Peninsula school project, as requested by the District Education Council and the Premier's Office as a catalyst to transforming the area into a mixed- income neighbourhood o Spearheading the business case for the Province to build a new Highway 1 Interchange as a catalyst to further private sector investment and development • Specific projects include: o The Telegraph (Canterbury & Grannan) heritage approval and Parking Commission purchase and sale agreement. Construction of The Telegraph is currently underway (crane is up). o The Wentworth (95 Wentworth Street) permitting, communications and community relations support. Construction of The Wentworth is currently underway (crane is up). o Sea Bird Suites (819 Millidge Ave & Daniel Ave) support design engineer, permitting, community relations. 011 • We are an active proponent and supporter of developing and implementing a new, integrated economic development model. Develop Saint John: • Significant progress made on the three key strategic development projects: Fundy Quay, Central Peninsula Community School and Highway 1 interchange • Project portfolio contains dashboard with a total tax base growth potential of $684million • Feedback from developers and consultants has been positive - customer service is improving • Successfully transitioned office operations to remote home -based operations in response to the COVID-19 state of emergency. Regular and ongoing proactive contact with all of our development customers continues. May 15, 2020 To increase tourism revenues in Saint John by marketing our unique and competitive tourism experiences to high -potential markets. Destination marketing, Visitor information and Experience, Meeting and Convention Sales, Sports Tourism attraction, Festival and Events support and attraction, member services, Travel Trade Glenda MacLean, Hilton Saint John, representing the Saint John Hotel Association Jasmine Mosher, Best Western PLUS, representing the Saint John Hotel Association Kurt Peacock, Parks Canada, representing Industry Stephany Publicover, Irving Oil, representing the City of Saint John David Drinnan, Nocturne, representing the City of Saint John David Alston, TimberTop Adventures, representing the City of Saint John Greg Norton, City Councillor, representing the City of Saint John Elizabeth Rowe, Urban Deli, representing Industry Gillian Nadeau, Uncorked Wine Tours, representing Industry Terry Hutchinson, McInnes Cooper, representing the City of Saint John Corey McGill, McGill's, representing industry Phillippe Ouellette, City of Saint John for City Manager, John Collin Pre COVID-19 - 8 Full-time (and seasonally 15 additional VIC staff) Post COVID-19 — 5 Full-time with CEWS (no seasonal staff) $593,200 plus HST Pre COVID-19 — Legislated Levy Forecast for 2020 to $1,400,000.00 minus 5% Post COVID-19 - Legislated Levy - $130,737.49 (accommodation levy for Jan and Feb minus 5 %) Pre COVID-19 - other revenue (advertising and membership fees) - $121,000 Post COVID-19 - other revenue (advertising and membership fees) $15,125 Our organization uses national and provincial benchmarking to evaluate and redirect our efforts annually. Pre COVID-19 - $1,991,562 Post COVID-19—$1,060,462 (includes CEWS and spending deferred revenue) • COVID-19 will reduce the Levy by 85% • Demand drivers like 2020 Jeux de L'Acadie, AREA 506, Moonlight Bazaar, International Barbershop Symposium, ERAPPA Committee Meetings, Canadian Masters Curling Championships, East Coast Games, Canadian Mid -Amateur Gold Championships and many more events worth over $5 million in economic impact have been cancelled • Some events booked for 2021 and 2022 are being moved to later years as there is domino effect with commitments to other host cities • Membership Goals • # of New Contacts Generated • # of FAM/Site Visit Participants • # of Leads Generated • # of Bids Submitted • # of Successful Bids • See attached • Signed 2022 Canadian Junior Girls Golf Championships • Lack of clarity around proposed Economic Development Realignment • Contract beyond December 31, 2020 • Tourism is big business — with millions of dollars of Economic Impact from Conventions, Sporting events and Festivals • The loss of this custom has very broad financial implications Updated skills matrix for appointees to each ABC Every dollar that comes out of a DMO is put toward its economic development mission of attracting visitors who spend money in local small businesses and support jobs. TripAdvisor suggests that leisure will be the first travel to rebound as business/corporate will still be facing cash flow implications/more use of technology etc. Leisure is the best opportunity in latter 2020 according to Tourism Economics. We need to be ready to market to those drive -markets (NB at a minimum with the addition of PEI if the borders open). To date, of the estimated 500 employees that work in our local hotels, 425 now have been placed on layoff. This represents 85% of their workforce. Major restaurant groups are fully closed leaving approximately 850 employees laid off. At least two major attractions will not be opening for the 2020 season. Cruise may not be recoverable for 2020 considering that our visiting cruise lines homeport out of NY. HI Discover Saint John Report to Common Council — City of Saint John Q1 Statistics May 2020 MEETINGS & CONVENTIONS Measurement # of New Contacts Generated # of FAM/Site Visit Participants Leads # of Leads Generated # of Delegates # of Lead Room Nights ....Estimated Economic Impact Bids # of Bids Submitted # of Delegates # of Bid Room Nights ....Estimated Economic Impact Wins # of Successful Bids # of Delegates # of Bid Room Nights ....Estimated Economic Impact Lost/Cancelled Events # of Lost or Cancelled Events # of Delegates # of Bid Room Nights ....Estimated Economic Impact Leads in Lead Status : Leads in Bid (Development) Status MAJOR EVENTS Measurement # of New Contacts Generated Leads # of Leads Generated .....# of Participants & Spectators .....# of Lead Room Nights ....Estimated Economic Impact Bids # of Events in Development .....# of Participants & Spectators .....# of Lead Room Nights ....Estimated Economic Impact Assits # of Successful Bids # of Delegates # of Bid Room Nights ....Estimated Economic Impact Q12020 YTD Target 59 200 2 30 17 35 4427 8407 $3,565,358 12 2832 6034 $2,511,240 3 857 2093 $842,528 16 3247 6350 $2,635,613 14 11 20 Q12020 YTD Target 1 100 1 15 50 650 $21,750 0 5 0 0 $0 1 10,000 300 $1, 585,500 [V,(oA1w F1( WVRJ SAINT 10411, :1 PA, Discover Saint John Report to Common Council — City of Saint John Q1 Statistics May 2020 Leads in Lead Status : Leads in Bid (Development) Status SPORT EVENTS Measurement # of New Contacts Generated Leads # of Leads Generated .....# of Participants & Spectators .....# of Lead Room Nights ....Estimated Economic Impact Bids # of Events in Development .....# of Participants & Spectators .....# of Lead Room Nights ....Estimated Economic Impact Wins # of Successful Bids # of Delegates # of Bid Room Nights ....Estimated Economic Impact Leads in Lead Status: Assists # of Successful Bids # of Delegates # of Bid Room Nights ....Estimated Economic Impact Leads in Lead Status: Leads in Bid (Development) Status [V,(oA1w F1(XX1VRJA Wr SAINT 10411, 2 0 Q12020 YTD Target 4 100 3 15 1,200 550 $426,750 0 5 0 0 $0 1 1,100 0 $1, 200,000 15 4 3,454 1,020 $915,600 15 0 TRAVELTRADE Measurement 2020 YTD Target # of Marketplace Appointments 32 80 # of New Tour Operator Contacts 34 15 # of FAM Tour/Site Visit Participants 0 13 !E91 2020 ABC Written Submission - EDGSJ Economic Development Agency for the Five Municipalities Consistent, long-term economic growth for the Greater Saint John region. Andrew Oland, Eric Poirier, Amy Lynn Patterson, Ryan Mitchell, Joel Richardson, Andy McPherson, Danielle Timmons, David Irving, Jennifer Arsenault 13 Please see the attached budget Please see the attached zozo work plan and the recovery and response plan to Covid-19 Please see the attached budget Please see the attached work plan, response and recovery plan, January dashboard, February dashboard, March dashboard, and the Q1 report. Please see the attached work plan, response and recovery plan, January dashboard, February dashboard, March dashboard, and the Q1 report. Please refer to the Q1 report, and the dashboard reporting for January, February and March. Please refer to the Response and Recovery Plan for assisting the economy through Covid-19 • The KPIs are captured in the attached work plan, the dashboard reports, and the quarterly report. zozo Budget; zozo Work Plan; the Response and Recovery Plan, January Dashboard, February Dashboard, March Dashboard, and the first quarter report. GREATER SAINT JOHN April 30, 2020 Mr. Richard Evans Office of the Common Clerk City of Saint John 15 Market Square PO Box 1971 Saint John, N B EzL 41_1 Dear Mr. Evans: In January of 2019, we had released an Economic Development Plan for 2019 — 2021 and a Work Plan for 2019 that rolled into the strategic goals listed in the Economic Development Plan. There were four focus areas identified: Workforce Development, Business Investment and Innovation, Entrepreneur Development and Marketing the Greater Saint John Area. Our zozo Work Plan continues to build on the foundation of the Economic Development Plan. All focus areas have an overarching theme of innovation. Under Workforce Development, we are continuing to build a talent pipeline with employers with a focus on international students, newcomers and their spouses, seeing 150 international students become employment ready, and will engage 25 companies in workforce solutions to hiring these students. In Business Investment and Innovation, we are focused on the creation of an Innovation District, with a focus on additive manufacturing. The Entrepreneur Development team will work to support the launch of 35 start-ups and 70 new jobs. We also added two new programs, bringing our programming to to for future entrepreneurs. Several of these programs will be run out of the UNBSJ MBA Grand Hall location uptown. This partnership will see the MBA students participate in entrepreneur training. We will continue to build an entrepreneurial pipeline, engage industry and post- secondary partnerships that will drive a new level of growth in Saint John for start-ups and scale -ups. 40 King Street 506 658 2877 r Saint John, NB E2L 1G3 info@edgsj.com E [ ` . I, ` It`A 45 Several marketing campaigns were launched in 2019 showcasing Saint John as a place to live, work and invest in. The Ask GSJ and We Asked campaigns tracked really well. Phase Two of the Ask GSJ will be developed and executed in zozo, and we will continue to provide monthly, quarterly and a year in review report. These reports have been well received in the community. Economic Development Greater Saint John has an important role to play in leading regional economic response and recovery efforts during the COVI D-19 crisis. During this critical time, the local economy of the Greater Saint John region is facing a period of great stress and uncertainty. Businesses are challenged to stay open, support their employees, and navigate the rapidly changing provincial and federal relief programs. As a direct result of these challenges, EDGSJ will work with its partners to implement a regional response and recovery plan that focuses on three priorities. 1) Prepare for Tomorrow's Economy, 2) Enable Entrepreneurs to Succeed, and 3) Restore Confidence and Build Momentum. We remain dedicated to achieving steady, long-term economic growth for the region by creating the kind of opportunities that improve quality of life and drive prosperity. The initiatives that we have identified provides a solid base for this growth. The Saint John region has proven their resiliency, and by continuing to work together, we will get through this crisis. Sincerely, Ron Gaudet Chief Executive Officer cc: Andrew Oland, Chairperson of EDGSJ LI40 King Street 506 658 2877 Saint John, NB E2L 1G3 info@edgsj.com t' [ .` J, , ` i "'A 46 M O O O M Cf; M ++ a1 O O O 01 © 01 rq LG 00 V4 ^ 00N O co O N N LL Q m O o O M V4 W} O O O �t CF 00 Ol O O O O1 Lr1 �} Ln Oc r, Oc O` C N LLJ o rn n cn N` u 0 N LO a O O O O O O O O O O O O O O O O O O O C O 00 rl 01 LL O �..� bo N� O m N m s Q E O a1 • 0 O LL QJ QJ }� NU- ba '1 do `� � N `n N a o " Qj W r .� v v v a > 10 � U 4" co QC U N O to LL U ++ M O O O O O O O O O M O M m rl Ln n O O O O O O O O O O O O cc O O 01 O M O Ln O N N 00 O V O� 00 to to --�1 V--1 V--1 � � 0000 e� j 00 LL C N Q O N O N 0 0 0 0 0 0 0 m L,O 00 00 Ln O O O O O O l0 00 LA r O O Ln Ol O Ln LA O o m o o ri ri r, oo ri -zF r,� %6 M` O rn m -i � Ln ooi ►�.� o Nq a 01 ei 0 N O O O O O O O O O O O O O Ln Ln O O cc O O O O O V I� N O O O O LA O O O p -a Ln lG O ei M RT N e�-1 eLn-1 00 00 01 LO O m ei O N N � > i _ N O O 0) GO a-4L 4� C O W ate+ _ � Q O '� + V m o o L.L o f o L a m u ro Q o Q C CL L a a C : c, � C •o o Luu • Q r z: ... 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Our annual subsidy from municipalities equates to about 27% of our funding (Down from over 40% in 2018). This compares favourably to other recreational assets in the region. We continue to improve internal controls to increase efficiencies and decrease expenses, including a number of capital improvements relating to energy that will decrease our ongoing costs. We continue to look for opportunities to increase revenues and have rationalised operations to decrease expenses. $2.8 million We anticipate that revenues will be down $500,000 compared to budget. We took decisive action in March in response to our COVID-19 imposed shutdown. This included laying -off the vast majority of our staff. Because of these and other measures, we have reduced our expenses by an amount equal to the reduction in revenues ($500,000). As a result, we expect that our approved 2020 funding from GSJRFC will be sufficient. No further financial contribution will be required from the City. rrA Continue to offer programming and services that serve the needs of our community, our members, and to increase our user base. Significantly improve internal controls and improve the efficiency of our operations Significantly reduce our year -over -year requirement for municipal funding in 2020 and beyond. Despite being closed for nearly three months, we will not require additional financial resources from the City this year beyond the approved contribution from GSJRFC • Our requirement for GSJRFC funding decreased by nearly $200K from 2018 to 2019 and will be down over $200K from 2019 to 2020 • Revenues increased 7% in 2019 • We have removed the chlorine gas disinfection system from the facility • We are on track to reduce our need for GSJRFC funding by another $200,000 for 2021. That is a $600,000 reduction over the contribution we received in 2018, cutting our funding requirement by more than half. Although operations have largely returned to normal, the COVID-19 pandemic will continue to affect our operations. Should the current situation worsen, the full impact is unknown. The facility's general changes rooms do not meet current standards for accessibility and public expectations. This affects the ability of some residents to equitable and appropriate access to the facility. We are looking at options to secure significant funding for renovations from federal programs. We also believe that we should work with the City to pursue funding under the community, culture and recreation infrastructure stream of the current Canada — New Brunswick Integrated Bilateral Agreement for the Investing in Canada Infrastructure Program. New Brunswick is scheduled to host the Canada Summer Games in 2029. No matter the host city, we should argue that the aquatics events be held here rather than building a second 50 meter pool in the province. Our facility will need upgrading to meet current standards for national competitions. • The financial picture for the Commission continues to improve and the need for municipal funding is decreasing significantly • We currently have one vacancy on the Commission. It is a Saint John seat. • The Commission requests to be actively involved in the decision making around capital spending in the facility None M-11 2020 ABC Written Submission Template The Saint John Arts Centre advances the culture and economy of Saint John, by providing critical infrastructure for the growth and development of the arts. By incubating and developing talent, the Arts Centre strengthens our community by fostering connections and collaboration, locally and beyond. 1. Art Gallery. The Arts Centre provides five exhibition galleries. There are six exhibition sessions per year each lasting seven weeks. 2. Workshops: We provide art -based workshops to people of all ages. 3. Rentals: For weddings, concerts or private functions. Including rentals of our printmaking and ceramics studios. 4. Performing Arts: Symphony NB, Early Music Festival, SJ String Quartet and the Summer Classics Series all hold their concerts in our main gallery on a regular basis. Chair —John Runcie, Vice Chair - Emily Saab, Treasurer - Pat Joas, Secretary — Bailey Campbell Director - Lisa -Ann Scichilone, Director - David Emerson, Director — Kara Stonehouse, Director - Leona Laracie Four Full time: Andrew Kierstead -Executive Director, Kelly Cunningham -Promotions and Events Coordinator, Larry Morin -Building Maintenance and Maggie Higgins —Education & Outreach Coordinator. Contract: Nora Bowes -Business Administrator. Regional Facilities Commission — Operational Grant of $125,000. New in 2020, Utilities, Property tax, Lease - $83,326 Workshops, facility rentals, project grants, sponsorships, donations, memberships. Our annual fundraiser was cancelled due to the COVID-19 crisis. Provide feedback on your organization's ongoing effort to identify efficiencies in your operations and cost -savings Since our closure to the public on March 17, The Arts Centre held a virtual emergency strategic session to review short term and long-term goals which will meet our current financial restrictions. The board also plans to meet twice a month (once a week if necessary) so decisions that impact our organization, can be made quickly. We are certainly planning on taking advantage of the Federal wage and subsidy programs that are available. Provide total annual operating budget incorporating all funding and revenue. SJAC budget for 2020 was approved for $337,326 (revised numbers attached) Provide feedback on YTD budget actuals, and any noteworthy issues that should be brought to the attention of the City of Saint John The Saint John Arts Centre provides a year-to-date report to the Regional Facilities Commission in June and again in September when we also present our new budget. The budget for 2020 which includes the operational grant and the new utilities, lease and property tax component, has been approved. r�%1 Prior to the COVID-19 crisis the SJAC was able to purchase equipment and make necessary renovations, to be able to offer silkscreen printing as an additional workshop. Funding for this project was made available through a provincial OF grant. Since March 17, when we closed our doors to the public, our focus has been to find ways of still having a meaningful presence with our community by offering our exhibitions online and updates through social media. Although the reopening date has yet to be determined, the SJAC stands ready to offer an aggressive set of programing and workshops to meet public's needs. Due to the COVID-19 crisis, we realize that meeting our performance target during this time will be impossible. However, during the post -recovery phase, with the hard work of the staff and volunteer board members, we are planning on making a positive impact for our community. • We have completed our first year of partnering with the New Brunswick College of Craft & Design by offering their Foundation Visual Arts program at the SJAC. In September of 2020 we will be offering this program again to students in southern New Brunswick. • As mentioned above, we have expanded our printmaking capacity by offering silkscreen printing as an additional workshop. This will be an important source of revenue when we reopen. Funding for this project was made available through a provincial OF grant • New bifold doors were installed in the City Gallery with the majority of funding coming from a donation. This will allow us the offer a second private space for small concerts and rentals. The COVID-19 crisis has had a profound impact on all of us. The SJAC continues to seek a balance when it comes to services being provided to the public and maintaining staff (working from home). Cash flow and the uncertainty of traditional operational grants is a major concern. During the post -crisis phase, we are not sure if the public will easily adjust to large gatherings (exhibition openings) and attending our fundraiser (originally scheduled for April 16). We are not concerned about attendance to our workshops. • The SJ Arts Centre continues to provide excellent value as a Regional Facility to the Greater Saint John area. • We continue to work with other provincial arts centres in the sharing of ideas and possible solutions to a post-COVID-19 world. • The SJAC is seen as a leader of our arts community and welcomes the challenge of finding ways of serving our community in an efficient and cost effective way. SJAC -ABC Budget 2020 E:191 Saint John Arts Centre Financial Statement BUDGET 2020 - Projections Based on opening by the summer Revenue Budget As of Projected Projected 2020 March 31/20 June 31/20 Dec. 31/20 1 Grants - Operating - Regional Facilities 125,000 31,250 62,500 125,000 2 - Rental, Property Tax and Utilities - Regional Facil 83,326 20,832 41,664 83,326 3 - Operating - Prov. of NB 14,000 - 14,000 14,000 4 - Summer Student Work Project 7,000 - - - 6 - Administration of Grants 25% 3,000 1,875 1,875 1,875 8 - Sponsorship 3,000 - - 6,000 9 - Shelia Hugh Mackay907 2907 2,907 10 - Sculpture Saint John 9,000 - - - 11 lWorkshops 40,000 15,141 15,141 30,000 12 Rentals 15,000 5,152 5,152 6,000 12A - NBCCD 12,000 4,500 4,500 10,000 13 Performing Arts 3,000 - - 500 14 Donations/Fundraising/Membership/Artist Rights Fees 18,900 6,744 7,000 10,000 15 Exhibitor sales / Openings 4,000 585 1,139 1,500 16 Interest earned 100 24 35 50 Totals 337,326 87,009 155,913 291,158 Expenses 17 Grants - Operating - Wages and Benefits 157,100 46,493 85,000 150,000 18 - Rental, Property Tax and Utilities (after HST rel 83,326 20,831 41,663 83,326 19 - Summer Student Work Project 8,000 - - - 20 - Music in Millid eville 100 - - - 21 - Summer Classic Series 2,500 - - 1,500 22 - Government of Canada - - - 23 - Sculpture Saint John 7,000 - - 24 - Shelia Hugh Mackay- 2,000 2,000 25 1 Programs and Workshops 26,100 6,995 6,995 17,000 26 Rentals 8,500 136 136 2,424 27 Donations/Fundraising/Membership 8,000 169 200 2,000 28 - Artist Rights Fees 7,800 800 2,600 6,500 29 Exhibitions/Receptions 5,000 953 953 2,000 30 lAdvertising and Promotion 900 688 688 2,000 30A - IT (Website) 1,500 564 564 1,500 31 Furniture and Equipment 5,000 12,435 12,435 15,000 31A - Kitchen upgrade - - - - new printer - - - 32 10ffice (toner, postage, etc.) 2,500 745 745 1,500 33 Re airs / Maintenance / Cleaning 1,800 3,090 3,500 6,000 34 Professional Fees (Teed Saunders Doyle) 3,000 - 3,000 3,000 35 Insurance 2,800 - - 2,800 36 Telephone and Internet Services 3,000 635 1,385 2,885 37 1 Bank Charges 400 94 188 375 38 Debit Machine/E-commerce (website) 3,000 411 500 2,000 Totals 337,326 95,039 162,552 303,810 Projected surplus (deficit) - 8,030 - 6,639 - 12,652 E-11I ABC Written Submission — May 15, 2020 SAINT JOHN BOARD OF POLICE COMMISSIONERS community, to provide oversight, and to ensure accountability in the application of Police resources to accomplish the objectives. The Saint John Board of Police Commissioners has a responsibility under the Police Act to "provide and maintain an adequate police force" and to advise Common Council accordingly, so the municipality can budget the necessary money. In determining what constitutes an adequate police force, the Board (in consultation with the Chief of Police) has established priorities and objectives. The Saint John Board of Police Commissioners comprises seven members. are appointed by Common Council. Two of these may also be members of Common Council. The seventh member is appointed by the Minister of Public Safety. Appointments Saint John Board of Police Commissioners Mayor Don Darling Appointed by Common Council on July 30, 2018 to the end of his term. Councillor Gary Sullivan Appointed by Common Council on July 30, 2018 to the end of his term. Michael Costello (Secretary) Appointed by Common Council on July 30, 2018 for a three year term - July 30, 2018 to July 29, 2021. Douglas Jones (Vice Chair) Appointed by Common Council on December 3, 2018 for a three year term - December 3, 2018 to December 3, 2021. Jeff McAloon Appointed by Common Council on December 11, 2017 for a three year term — December 11, 2017 to December 11, 2020. Maike White (Provincial Appointed by the Minister of the Department of Justice Representative) and Public Safety on November 10, 2017 for a three year term - November 10, 2017 to November 10, 2020. Edward Keyes (Chair) Appointed by Common Council on November 18, 2018 for a three year term — November 19, 2018 to November 19, 2021 147 police / 27 civilians E:3A • Automation and integration of SJPF records, data and digital evidence reporting review underway • Automation and integration of Case Management process review- underway. • Strategic Plan 2019-2022 (25) underway • Fleet optimization- underway • Sworn and Civilian resources — Best -fit analysis -underway • Revenue opportunities within police headquarters (ongoing) • New communications plan and civilian information officer -underway • Evidence Based Policing (E.B.P.) (trust and legitimacy in policing) police science lens /E.B.P. — a shift in thinking, going from process oriented (output based) to innovative- function orientated (outcome based) - underway. $25,575,633 The Saint John Police Force is expected to be on Budget for 2020. • Crime Reduction • Emergency Response Calls • Law Enforcement • Public Safety • Community Engagement • Crime Reduction • Public Satisfaction • Effectiveness / Efficiency / Economy Process Metrics • Employee Recognition Program • Introduction of Online Mental Health Platform for all Employees • The Commission is cognizant of the financial realities faced by the Saint John Police Force as a result of Common Council's recent budget decisions, as well as Collective Bargaining which is currently underway / potential arbitration. • Rallies • Increased engagement with community groups and individuals as a result of recent events • COVID-19 Response • Modified Service Delivery Response • Collective Agreement Bargaining • Establishment of Mental Health Response Team • N.B. Department of Public Safety - Review of Policing in New Brunswick E:191 The Saint John Board of Police Commissioners is pleased to announce that Chief Superintendent Stephan Drolet, formerly with the RCMP in British Columbia, was appointed as the new Chief of Police for the Saint John Police Force. Chief Drolet assumed his new role and responsibilities on February 24, 2020. The Saint John Board of Police Commissioners is focused on providing excellent service to the citizens of Saint John in order to ensure they are safe and feel safe, which will also provide the right environment to drive economic growth in our city. As the civilian oversight body for the Saint John Police Force the Commission is committed to ensuring the concerns of the citizens and the community as a whole are reflected in the work of the Saint John Police Force. 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U ' U C cz U u U U y �.'CZ � ,0�., ,�-� P � � � � • O ,rU-I ct cz 0 ICt SC cd U 'C r N U r- O �' p O bA O �. �. . s C U U Ccz r U' cn 0 ,�'-� N cC •,��, cC U U p bCA cz 50 czbA N �. sU-i N bA cn �"" •., O •.U. "C sU-i O .� N 4 cz 00 G U GA N C cz cz rA cun cz N U O cn bA pp N 'C U U C U U U bA R. � C O bA " O cd �bA yak c S' pU z'' • U r--U N 'C O 'C �.' .�. r-- �.' O U U N O"�. "�" cC U U ,r�I •'~•" ,r�I �' �"„ Nct U cC p U U C U U cn U U bA U c U cn �, '� U �- Ucz cn U cnto U 0 �O �O U ' cz �O bA ccn E U ' j . U .0 bOcz A cz U c� C O� . E 'C U U O U .O U U bA C U "� U cz O bA lc$ O bA U bA y C cz ,r-I O 3 �U NU �4 O 2 �4 i." O U U 00 d C IX U 0 a He 2020 ABC Written Submission Template Saint John Energy provides innovative customer -centred energy and utility solutions. Saint John Energy is the principal supplier of electrical energy to the Residential, General Service and Industrial sectors in the City of Saint John, as well as, a provider of Street and Area lighting rentals and various consumer products and services. Bill Edwards (Chairperson), Stephen MacMackin, (Vice Chairperson), Commissioners - Ross Galbraith, Shelley Courser, James Shaw, John Mackenzie, Dave Alston, Board Secretary -Jonathan Taylor. President and CEO — Ray Robinson 103 fulltime Staff Saint John Energy provides a net benefit to the City of Saint John totaling over $2M annually and provides additional rate payer and community support benefits to the public in excess of $8M per year. See attached 2019; Business Plan Documentation • SJE heat pump deployment expanded by 1,115 units in 2019 and a further 333 units in Q1 2020 to bring the total deployment to 5,666 with 34% of the units being outside of Saint John. The original view was to grow by an additional 1,000 in 2020 although COVID-19 has introduced uncertainty in achieving the original 2020 target. • SJE is in the second year of its $13M+ NRCan Smart Grid project which includes the development of artificial intelligence to optimize electricity flows and includes the deployment of smart consumer products... A recent highlight included the successful commissioning of the first Tesla Megapack to be deployed in the world. This 1.25MW utility scale battery which will contribute to green house gas emission reductions and energy cost savings up to $200k per year. E-lue • SJE's Voltage Reduction program in 2020 achieved an incremental $228k in savings when compared to 2019 savings bringing the total to $1,569k in 2020. • The Burchill Wind project continues to advance with the property having been successfully re -zoned and the developer Natural Forces has submitted their Environmental Impact Assessment. All engineering work continues to progress as planned with the operational date forecast to be on schedule for early 2022. • SJE continues to support the Sustaining Saint John work led by city management and continues to engage with various levels of government with respect to legislative amendments that will support the growth vision • SJE has been approved to receive funding of $4.56 million under the City's DMAF application. 90 Paradise Row has been selected as the site for the new substation, which, when commissioned, will facilitate the decommissioning of SJE's Union Street and Crown Street substations. The new site is currently going through the rezoning process. N/A Updated skills matrix was provided to nominating committee 0191 BUDGET 2020 Capital, Operating and Cash Budgets Ten -Year Business Plan & Financial Forecast Page 1 021 Saint John Energy Table of Contents BUDGET2020......................................................................................................1 INTRODUCTION..................................................................................................3 Strategic Focus and Financial Plan............................................................................................. 4 Material Risks and Uncertainties............................................................................................... 10 2020 Capital Expenditures Budget............................................................................................ 12 Ten -Year Financial Forecast....................................................................................................... 14 Consolidated Budgeted Statement of Earnings 2019 — 2029............................................................... 15 Segmented Budgeted Statement of Earnings 2019 — 2029 - Core Utility ........................................... 16 Segmented Budgeted Statement of Earnings 2019 — 2029 — Consumer Products ............................. 17 Significant Assumptions Impacting the Budgeted Statement of Earnings ........................................ 18 Budgeted Statement of Cash Flow........................................................................................................ 19 Capital Expenditures Budget by Year and Class 2019-2029.............................................................. 20 Graphical Representation of Earnings and Capital Investments 2019 — 2029.................................. 21 Page 2 My Introduction The Management of Saint John Energy presents the Capital, Operating and Cash Budgets for the fiscal year 2020. Saint John Energy is the principal supplier of electrical energy to the residential, general service, small industrial and municipal sectors of the City of Saint John offering rates that are among the lowest in our region. On average, residential rates are 10% lower and commercial rates are 3% lower than elsewhere in the province. Saint John Energy provides savings to the City of Saint John of approximately $2 million per year and our customers more than $7 million per year benefiting Saint John and our province as a whole. Saint John Energy has been proudly serving Saint John since 1922. We provide reliable, innovative energy services by keeping our 36,500 customers and community at the heart of everything we do. We have a long-term plan to grow in a progressive and sustainable manner, complementing our core distribution business with renewable energy and expanding into new markets. We will undertake this growth while maintaining our position of fiscal strength. The projections contained within reflect the known, present financial position of Saint John Energy at the date of preparation of this document and incorporates Capital, Revenue and Expense and Cash Flow projections for the coming ten years based on the plans and requirements set forth by the Management of the Company through the budget and strategic planning and review process. In certain instances, comparative numbers are given for the year 2019 that include a combination of actual (known at the date of this document) and projected figures. Year-end audited financial statements for the year 2019 will vary from those depicted reflecting the actual circumstances resulting from the complete operations for 2019. Page 3 019] Strategic Focus and Financial Plan The financial stability and sustainability of the Company constitutes one of the four strategic themes for Saint John Energy. The ability of the Company to maintain competitive rates while providing industry leading products and services is dependent on achieving and maintaining an appropriate financial structure. Strategic Focus The following factors have guided management in the plans and priorities discussed or listed in the following pages and are reflected in the financial forecasts shown for the 2019 Budget, as well as the greater 10-year business plan. Purpose: We are a community -owned energy company that cares, above all, about people. We are relentless in our goal to provide our customers innovative, convenient, reliable energy choices that provide comfort, save money and help protect the environment. We care about our teams and we care about the communities we serve. We invest in them every day. In all that we do, we seek to leave the world a better place. 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. Vision: To empower people and communities so they thrive. Guiding Principles Our Guiding Principles are the values that guide us every day. The thread through all that we do. Safety & Wellness Safety and wellness are our top priority. We act with compassion and understanding. We are like family. We also care about the safety and wellness of our customers and community. Customer & Community We believe in our community and are committed to strengthening it. We treat our customers with respect and always act in their best interests, which includes providing them with choice. We work hard to ensure our community is prosperous, healthy and flourishing. We value sustainability and protect the environment. Page 4 0L! Integrity We act with honour and in good faith. We are trustworthy and responsible. We strive to always do the right thing. We deliver on our promises. Bravery We are always forward thinking. We are ambitious and pioneering. We seek out new ways of doing business with thoughtful consideration. We challenge the status quo and encourage creativity, curiosity and continuous learning. We put plans into action that are smart and sustainable. We are explorers. The Operating and Capital Budgets are resourced to achieve our Vision and will focus on our 4 overarching strategic themes: 1. Financial Stability and Sustainability 2. Customer Focus 3. People 4. Organizational Effectiveness The results of this ten-year forecast reflect recapitalization challenges stemming from the implementation of the Long -Term Integrated System Capital Plan, the growth of new lines of business, new initiatives and the resources to meet the normal operations, maintenance and administrative requirements of the utility. Page 5 OR Financial Outlook The following Budgeted Statement of Earnings and Budgeted Statement of Cash Flows (see pages 15 & 19) depict the projected financial situation of Saint John Energy throughout the ten- year plan for existing lines of business and include allowances for future plans where specifics are not currently known. For presentation purposes, Segmented Budgeted Statement of Earnings are also shown for each the core utility and consumer products segments. Gross Margin - Electrical Operations Gross IMargin Electrical OperationsSales and purchases of electricity are forecasted based ($000's) on actual volume results from the most recent 12- $35 ccc month period and efficiency experience from the most $30,000 � :p25,000 recent 2-year period available at the time the plan was $20 ccc prepared. The 2020 Budget is expected to see an $.J.5P000 increase in Electrical Operations Gross Margin of $0.7 K;Y ccc million. Increasing the Gross Margin are a 2.48% r'c average rate increase implemented in July 2019, and an anticipated 2% increase on April 1, 2020. Additional rate increases of 2% have been budgeted in each year of the plan. Actual changes to revenues and purchase rates will depend on wholesale power purchase costs and the specific sustainability needs of the Company in future years. The plan estimates that starting in 2022 a portion of the power purchases will come from the Spruce Lake Industrial Park windfarm operated by Natural Forces (Burchill Windfarm). Anticipated reductions in electrical sales volume during years two through ten of the plan are included as a provision for the estimated impact of new technologies, demographic changes and energy efficiency initiatives that may have an influence Other Ilncome ($000°s) 'm � on sales and related energy purchases. :p$.J.6pccc ccc .J.2pccc .,.1.cpccc Other Income Y,. p�pccc Other Income is comprised of revenue derived from ;;cpccc �� water heater rentals, mini split heat pump rentals, street :;$4pccc ccc and area light rentals, facilities rentals, customer 0 connection and other collection charges, pole _6 attachment fees and third -party service work. Other non -electrical incomes are budgeted to increase by $0.6 million in 2020. The major factors for this increase are the anticipated growth of the mini split heat pump rental program and projected rate Page 6 increases of 1.5% on heat pump rentals and 2% on other income streams. There is no projected rate increase for water heater rental units in 2020. Projected in the 10-year plan is continued growth for the mini split heat pump rental program and future rate increases beyond 2020 of 2% annually. Operations, Maintenance and Administrative Expenses (OM&A) OM&A includes labour, equipment, materials, OICVn &A Expenses ($000s) contracted services, depreciation, insurance, taxes and $40 ccc other costs related to operating, managing and $35,0cc � maintaining the utility and distribution system. These $30,000 $25,ccc expenses are forecasted to increase by $0.9 million :p20p000 over 2019 projected results in 2020 before a $1.0 K;:pc ccc million increase to a non -cash pension charge. This ,;5?000 change is primarily driven by increased variable costs ;90 related to the growth of the mini split heat pump �' ry° �' 4 rental program, increased amortization and utility tax costs related to distribution system investments and increases to employee costs due to cost of living increases and new positions related to product development, corporate communications, and smart grid technology implementation. Results beyond 2020 are influenced by inflationary provisions for wages, benefits and other expenses estimated to affect costs in the years 2021 through 2029 (see assumptions table page 18). Net Cash Earnings Net Cash Earnings ($Q 00's) Net cash earnings are a measure of the Company's ;plc°ccc earnings adjusted for non -cash items including .J5p000 amortization and non -cash future employee benefit .;:mc ccc actuarial charges for pension and other $5?000 retirement benefits. Net cash earnings for 2020 are budgeted at $8.7 million, an increase of $0.4 million 1�) °, � 'b � � A �b � c rV C `"� �`1, SIT AI'}, �`�, �I C V �7 from the projected 2019 result due to the cash impacts revenue and expense variances noted above. Earning projections for future years are significantly impacted by the forecasted growth of the mini split heat pump rental program, power purchase mix and future rate increases while including the provision for reduced electrical sales volumes mentioned above. Page 7 Otl Regulatory Stabilization Reserve Contingent reserve amounts have been included in the plan in the years 2022 through 2029 to project core utility operations at a break-even net income basis. These amounts are a provision for future unknowns and could result in many scenarios including forgoing forecasted future rate increases, incremental investments into distribution and/or smart grid technology, investment to integrate future renewable energy projects, and if legislation change permits return of capital by way of dividend payments to the City of Saint John. Cash & Debt Position The Budgeted Statement of Cash Flows that projects the cash position of the Company at the end of each $20 ccc year shows a projected deficit ending cash balance $.J.5,00c in 2019 of $8.3 million. Saint John Energy will ;'a Y.5p000 manage cash flows as diligently as possible to �";c attempt to leverage its current $15 million operating :;5p000 line of credit to finance the continued growth of the .. . .'.I...0p000 ...;9..L5p000 mini split heat pump program and capital investments however term borrowing of $25 million has been projected in the years 2020 ($15 million) and 2021 ($10 million). These term loans are projected to be repaid over five-year intervals. Debt servicing costs on the net cash used/generated by :;25,000 the mini split rental program are charged internally $20p000 to the consumer products division and credited back K;.J.Y. pccc to core utility operations. K;;mc,ccc ;9Y.5p000 The ten-year plan includes net investments in $0 Property Plant and Equipment of $109.6 million ($24.8 million for 2020) which includes $22.8 million in mini split heat pump systems ($3.8 million for 2020). Sensitivity Analysis IEnding Cash IBallance ($Q 00's) Debt IBallance ($Q 00's) As with any budgeting process, there are estimates used that are based or depend on historical trending and time sensitive information. Actual results may be different or affected by unforeseeable circumstances. The following is an analysis of several of the largest items that Page 8 could affect the actual outcomes for the 2020 financial year with their impact on the Budgeted Statement of Earnings: Gross Margin • 1% variations to sales volume or rates change gross margin by approximately $0.1M • Other changes in weather patterns are assumed to be nominal, variances would have a similar affect to the sales volume sensitivity above Operations and Maintenance Expense (including other revenues and expenses) Management has identified known or specific cost changes and has included assumptions for inflationary effects over the period of the plan for both Capital and Expense related costs as follows: • Planned installations of new mini split heat pump rental units of 1,000 in 2020 and 5,900 units over the ten-year plan. A +/-10% variance in actual volumes would have an effect on net cash earnings of $38k in 2020 and $1.2M for the total of the 10-year plan. • Inflation on applicable expenses assumed at 1% per year. A +/-1% variance would have an $0.1M effect on earnings in the second year of the plan. • Employee Remuneration (dependent on actual complement). Base compensation increases are assumed to be 2% in 2020 for staff and unionized employees. Future years of the plan include an annual 2% base compensation increase for all employees. A +/- 1% change for all employees' results in an increase in expense of $0.1M in the first year of the plan. Other Post -Retirement Benefits Expense (OPEB) & Non -cash Pension Expense Other post -retirement benefit costs are anticipated to increase by 5% annually in the years 2020-2029. A 0.5% reduction in the discount rate used in the actuarial valuation of the liability would increase the non -cash expense in the first year of the plan in the amount of $0.4 million. A 1% variance in the forecasted cash benefit payments in the first year of the plan would result in an incremental cash outlay of approximately $4,100. Financing Costs Interest costs on Saint John Energy's operating line of credit and projected term borrowings utilized to fund the growth of the mini split heat pump rental program and distribution investments has been estimated to carry an interest rate of 4% during the 10-year plan. A +/-1% variance to the interest rate assumption would have a $0.2 million effect on earnings in the first year of the plan. Page 9 061 Acknowledging the fact that actual experience will be different than the forecast, Saint John Energy's operational plans need to be flexible and dynamic enough to adjust throughout the year in order to achieve our commitment to meet or exceed the budgeted results. Management will undertake to adjust this plan as necessary to achieve the strategic and financial goals as outlined. Management will inform and/or seek Board approval where a material variance from this plan necessitates. Material Risks and Uncertainties In the normal course of operations, Saint John Energy's earnings and capital investments plans can vary due to changes in several factors. Information on some of the key factors that could potentially impact actual results from the forecast presented in the 10-year plan is provided below. Legislative Landscape - Legislative changes to both the Municipalities Act and the Electricity Act would allow Saint John Energy to expand products and services offerings, increase revenues and reduce operating costs to customers, as well as flow dividends back to the City of Saint John. Saint John Energy is continuing to take steps now to advocate for necessary change. Changing Business Landscape —The energy industry is undergoing a period of significant change highlighted bythe dual challenges of legacy infrastructure renewal and industry disruption. Legacy infrastructure dating from the electrification period of the nineteen sixties and seventies is now at end -of -life. Consumer choice is and will be driving the industry from its traditional position of monopoly seller of electricity to a bi-directional system where the customer has the choice to be buyer and seller. Recognizing these challenges Saint John Energy has moved from its traditional business outlook of a legacy electricity delivery company to one that emphasizes the importance of growth for the sustainability of the legacy system and the ability to continue to provide our customers with energy related choices and a high level of reliability and customer satisfaction. Electrification — Saint John Energy continues to evaluate and prioritize opportunities to adapt and encourage the adoption of technologies that will replace fossil fuels (e.g. propane, natural gas, heating oil, and gasoline). Potential developments of electric vehicles and alternative electric home heating methods are an opportunity for Saint John Energy to expand customer offerings through smart energy services. Page 10 `[eIl] Energy Conservation & Technological Advancements - While Saint John Energy is actively seeking new programs and services to encourage its customers to reduce demand and energy consumption, the market, demographics or technology advancements could drive customers to reduce consumption faster than the utility can transition. Alternative Heating Solutions (natural gas and propane) - The Saint John area currently has a significant percentage of electric space and water heating customers. Without offsetting economic or population increases, market share could be affected by the adoption of alternative solutions for these requirements. Electrical Sales/Purchase Volume - Saint John Energy, due to its significant percentage of electric space heating customers and the mix of demand and energy which forms the basis of its wholesale power purchase rates, can be subject to short-term swings in weather especially during seasonal transition periods. This can lead to fluctuations in cost which, given certain circumstances, may not be fully recovered in revenue from its customers. Electrical Purchase Costs — By legislation, only NB Power Corporation may sell electricity to a consumer or municipal distribution utility within the Province of New Brunswick except where the electricity supplied was generated within the territorial limits of the municipality and in compliance with the utilities distributed generation or net metering policies. As such, alternative supplies of electricity are limited within the territorial limits of Saint John. The majority of the utility's power purchase costs (its largest expense) are subject to the business decisions of NB Power Corporation and/or other Provincial authorities and policy setters. Adverse Weather - Extreme weather conditions such as ice storms and high winds can affect the utility's ability to maintain system reliability, safety and the security of its supply. In addition to customer inconvenience, these unplanned events can significantly add to the operational cost of the utility. Carbon Costs — The implementation of climate change actions and associated potential cost of carbon legislation could materially impact power purchase costs over the 10-year plan. Page 11 `O 2020 Capital Expenditures Budget The following items represent the planned core Capital Budget for 2020. These estimates include approximately 25% of the annual unionized labour/benefits payroll costs. For all major projects, approximately 10% has been added as contingency to the estimate to allow for potentially unidentified costs and/or cost escalation. Distribution Equipment —Total $2,701,053: Overhead Conductors and Equipment $550,000 Underground Services Historical Average 275,000 Woodward Avenue Circuit Extension 228,000 Central Business District Corrective Actions - 12U4 214,000 Overhead Primary Conductor Relocations - Phase 3 175,000 Manawagonish Conversion to Hendrix 130,000 Pole Replacements 127,500 Vault & Manhole Upgrades 110,000 Underground Conductor System Upgrades 100,000 Three Phase Padmount Transformer Upgrades 92,000 Padmount Switch Replacements 86,725 Candlewood Lane Underground Renewal 84,885 Westgate Loop 76,026 Single Phase Padmount Transformer Upgrades 60,125 Read Head - System Hardening Phase 1 50,000 Bell Weather Meters 50,000 Bayside Drive - System Hardening 50,000 Installation of URD Boxes 48,000 Metal Pole Replacements 40,000 Milford Lateral Replacement 39,292 Submersible Transformer Refurbishment 35,000 Metering Tanks 18,000 Driscoll Drive Underground Renewal 14,500 Three Phase Meters 14,000 Single Phase Meters 14,000 Street Lighting 10,000 Current Transformers 5,000 Potential Transformers 4,000 Strategic Investment: Burchill Wind Farm Connection Line $9,522,393 Strategic Investment: DMAF Funded Substation Project $4,247,153 Strategic Investment: LCEF Funded Rental Lighting Conversion to LED $840,400 Page 12 `[oya Strategic Investment: Electric Vehicle Chargers $38,000 Substation Equipment —Total $57,429: Substation Equipment Additions $57,429 System Technology/NRCAN —Total $2,371,213: NRCAN Water Heaters $1,068,000 NRCAN Project Management 809,605 NRCAN Utility Scale Battery 791,607 NRCAN Smart Electric Thermostats 187,000 NRCAN Integrated System Manager 165,874 NRCAN Living Lab 159,167 NRCAN Smart Control Centre 124,960 NRCAN Residential Battery 102,000 Regulator Communication Panels 75,000 Remote Terminal Unit (RTU) Upgrades 50,000 NRCAN Smart Heat Pumps 15,000 NRCAN Funding Contributions (1,177,000) Mini -Split Heat Pump Rental Units $3,787,500 Vehicles —Total $459,800: Double Bucket Truck Unit # 21 $266,800 Two Trailer Units 137,000 Underground Service Vehicle Overhauls 56,000 Technology Hardware Equipment Purchases— Total $394,400 Water Heater Rental Units (Non-NRCAN) - $303,000 Building & Furniture Upgrades - $55,000 Various Small Tools & Equipment - $40,000 Grand Total 2020 Net Capital & Equipment Purchases Budget $24,817,340 Page 13 `NQ H GJ dA U m N _ L O m 4-0L.L -EL V ca � m � s L H ca M V N � bu0 L m W 0) N O N 01 r-I O N QA O (C) O m L r CO V m o r O LO O 0) a q N O co N � � Lf N co co LC) C O O C N O O O LO N C N C C7 N O r- (C) a co V Lf o m r N Lf 00 O V � � c C (6 C O L S i i N N Q f 0- 7 O C i i (1) U N C f �ofLUu U (U LU N o O N (C) O 00 (D CO O O 00 V O O (D O CD (D r- O ' (C) N r C)ITr- N CO (D co O V= r- C) 00 CO r- = V N N V O N O IT IT N O N 00 N O IT O 0 mN CO 00 � (D CO = V V 00 CO O r- O (C) N O r- O CO O N (fl O 00 N (D O V (fl = CO 1-- 00 = LO r- = V 00 V V co (D V V V (D r- co (D 1` 00 O r- O V N O O O O (D O) 0 - co N ('� I` � L Lr; C�- - C7 V - C'7 O) r- O IT LO I* (D CO O CO C) C) N (D C) co (D IT C) r ' 00 1, r- LO O C) N IT IT (D (D (D r- CI O IT IT co (D N V C ' (C . LO N N (fl * V (D r- N V N O CD co (D V O) 0 - C) co C7 r- � � C7 V - co N L c CO 00 O O V M 00 O O r- 00 O r (D O 1-- 00 = O 00 O r- (D r- O O O O V (C) V V O V V O CO (C) V O) (C) r- N (C) O CO (D O V CO O N N co co O) 0 - O M N C7 (O M V c C7 V r- N N \° LO IT CO Cn (D N 00 LOITC)O (D C) (D LO (D C)(( I O o N IT O IT IT O (fl (D LOITI-- IT N 0) O N ITC N M V N N f() 00 f() O (D 00 V co O CA 00 O co O) r - O N C7 (fl V c N V C'9 C'9 (fl N r o (C) (C) = CO O (D (D r- (C) V O (D O I-- (D (D O C r- CO N = CD = 00 00 O V r- V N V (D O 00 = IT 0 (C) CO 00 N (C) LO N O (C) (D V 00 O CIO co LO 00 co O r - 00 N N C'7 p C'M M (fl N O O r- CO O CO N O O 00 O O CIO (D O V r- O O 00 O 00 co N (C) V CO CO O V LO V (D I* O O V Q 1 O) CO CO = V N 00 r- (C) (C) V co O) 00 r- (D co O r - r- N C7 f0 CA CO N C7 = C'9 C'9 (fl NM M O (fl = V V Cn CO O O N N N O I-- (D O Cl) (D r- O C V N r- (C) * r- N O V CO V V CIO V N_ (C) O V N O IT 0) co LOLOCh IT O O co CIO N N O) r N M N N= C'M N (fl (C) CO CO (D O V (D r- O (C) ' O O (fl O Cn (C) (C) C:)f( N O 00 (C) LO CO NCO ITr- IT N (D V= C) N IT IT O N NCO- IT (D co (D 00 (D N IT O) r N N f0 N " Cl) = V \ V O 00 CO (D (C) r- (D ' O (D 00 O (C) O C (C) N O N O O N (C) CO CO O V V r- 1` r- r- V C (D = (D CO_ 0) 00 00 IT 00 co O 1� O 1� O N O) r C0 I,-('7 ('7 O O N N 00 \ V N LO (D 00 O 00 (C) ' r- V O O co 00 r- 0 r- O N_ O O O O f() 0)O CO O O LO f() 00 (D N f() O I-- N IT C)O N 00 N CO N f() C O (( C:6- C7 N C N N V N (U c (U S2 (U X O i CU C-)X � i 7 (V U ) (6 S 0 U O N (U (Oj X -C (6 N -0 N N N o •U sz s Q 0 O x S2 � m U m I (6 O 7 E _ _ (6 E C- � N C CU N -O O S] C S N = O '~ (6 ) O S (, > ' E u) C 1 E � N N OO O O C OC (UE O � i6 O O 2 C O (U E 7 .L L S2 t� U) � N CU i N I O> J O U U t3 U C ++ Ln -O 'E im C U) (C6 (C6 C_ C_ 7 O O O E O C S O N Z O Q> >Oc G J rNv LL O Z N w LL LL N Z Q O Q J O C Z 2 Ln alo cts a LO O LO O N \° LO O 00 (O M 00 V O O (O O ' N LO O LO N w i m LO 00 Vj!�: LO V 1— N m (O co I-- I-- N V V= V N 00 V T (O LO V (O N= CO � N O� N 00 � N N L (O C V LO CO 0j coO ('7 M s V N O N_ \ O 00 LO N O M O LO O ' (O N O N O� 1- 00 N N N (h V co (0 co 00 = I� = V M 00 O V N 00 c LO Na- LO LO V LO O= 00 � O 00 --a co N O m M O U O ('7 V O O \° V LO 00 (O M M O O O (O O O ' 0 M 0 0 0 0 (O 00 O O (0 N (0 00 T V 0 F- V LO Na- (O Na- N 00 � O V � � I'- V V V CO = 00 � O.� LO N O co L � V V f� � z (CM O rz V O LO ('7 O V 00 (0 1--N LO CO 1- 00 O O (O LO V V I-- O = ',a -I-- ' 00 (0 O 00 V V N M 0)O O O) 00 0) N LO 00 O (h Na-(h 00 M N co (O 00 M ->; N (O N N V V I.: CT) M N � 00 N O LO N \° V ('7 O O N = V O m LO O O 0 ' LO V O (0 LO N L(7 00 O V V N N N LO r O) (O = V O LO O V ('7 00 coM N N V � V V = V � 00 1 r � N M y (O ('6 O O O) N N VN z V r i N N M V O 00 LO \ M N O (O (O LO V O LO CO IT 1— ITO LO O O (O ' N O V� CD V O 00 O a" O (O N O N LO M N O V 00 00 00 LO ('7 LO = 00 N O (O N N M V CO � N C) O O_ LOO N 1— CO O 00 co N 00 O O 00 N LO M O V O V I--(h O 00 1— (O ' CO CD CO LO (h V O N O N - O O V LO 00 � V Co 00 LO 1— (h = 00 (O O CO p� 0 C, N �� N N N M U v I-- LO 00 O V V 00 CO O N N O IT IT (O O ' LO O = IT 00 � ('7 V O (O LO LO ITI- I-- � N CO (h LO IT O 00 O N LO (O LO CO 00 00 (O O 00 p � 00 �_ = Z O) O L I' N N O '7 N V (D N N N O O N (O LO \° (O N V 0LO ' CD O _ O r _ 00 ('7 O O O I* a" (O ('o N j� LO N O (7 V N V N (O IT coIT A N O O O V (D 1- N V 00 c O (7 LO 00 = 00 (O 0)00 � N N N - = � = N (h M rz -i co 00 V O 00 (O LO ' O ^ O 00 1- O O 00 IT LO j (O O 00 N LO N O (O CO 00 N LO O V O � 00 00 ('7 00 M 1- 1- LO 0-)M (07 1'-CO LO N = 00 (O � LO p (O 00 O O w � N �- N ('7 rz O 00 O ' IT 00 o N O (O 00 LO ' 1 O ('M V (O 00 O (O N p 1—O O O O LO (D O 00 O (D O O N O) CO O = O 1 O CO O O (O 1-- 1— O V O 0) U ('7 ('7 (3 N O N O N O U v O O 4.; G — X O x O al U 0) O- O Z w m c 0 c O E O O > U y (6 Q (6 0 OU 0) V 0) rz LO (6 (6 � (6 .� O 0) ' N � tM� O ( w O n n C (6 (6 s N O O � Q N O O c Q O N s O L L i i C � -C (6 — X — � O O (n 0O -O C +-' O (6 N 0 0) N 'O -O N 0) U .O Q 7 E a� O O C O Q w 00 O � O N TD-cL 7 Q O U Q O O U> c c > a� O O E I 0) 0) E N (6 U) al ) W W .� a� U J O .O m m d c ,� +' U U c3 � m m ar ar N N _0 tM a) O O N �_ E N o E p O O t)rz N U a-� W O Z O Q J it Z U w LL LL Z Q Q J Z Z Z 0) C7 N C7 O O (O cD O cD V N O U cm i O N O M O LO N N (O co O C O N 0)00 C7 0) 0) C7 C7 N co00 T- V N co 1— co O rn 1— C) 1— 1-- rn co (D co C) c C14 IT (O LO C) CO rn co C) rn C) c o (D 1— I* I— = C7 rn rn rn v cV c7 c7 N 1,- 1— (3) cD (3) O (3) O O co (D V O r N 1— LO M (O O= M LO co C7 1— C) 0 O LO N 00 � N = C7 00 = cD 1— N N co 00 O co O C7 O= O =I-- O LO O 0 N O 1-1-- (D V O O co 1— O (D C) C) 0 0..... LO 1— N (O O = C7 LO N N (O N N LO CO 00 LO O CO V co O N O C C14 V C7 Cl) = (O O 00 1-- 1— O N 00 O I` 0...... V N r (D 00 = 00 N co co LO N (h (fl O = N 4 M N ' LO LO O = 1— O (O CO C7 1-- V (O O LI N 1— co O 00 C7 O (O co LO O 00 O r Q......:. c7 00 N LO (O = 00 0) V LO CO N c'7 Lci O = N c•M c•M N M O C7 co C7 O O C7 co C7 O c N.. `. = 00 O V co O V A N LO (O O h O co co co LO LO = 00 CO LO N N N c7 Lci 06 N c•M c•M N U 3 0 N (O = r C7 N O N Cl) O M LO N C) 0 N V N CO O V O co co 1— O (O O U f3 C) N C7 LO CO = 00 Cl) LO co y c'6 V 06 N c•M N N QJ 3 V) e- co co I-- m C) (0 co LO 1— N CD LI O 00 (O * (0 CD CDLO 1— co LO CD 0 = CO LO V = = CO O LO I* M (, N c7 V r N c•M N Ol N 0 O V LO 1-- (0 C) C) N c7 O 1— = CO C' N C14 O N M = (O co co C) C) 00 V CO = CO I* co cD LO O m V O U (O N c7 c7 cD N N Ol r-I 0 N rn +- IT LO C) co C) m co C) co LO co CD c N r '. � _ M LO LO CO r 1— O V co LO U O ca N1 M O LO (0 (0 (0 LO (0 a L; CO N cD N i LL. fC W x O o QJ O o i E o O (6 O C s +O+ c0 o 0 fA O_ O +U) i C C-)X 0 c V) a) a) us f CM C a) E a) `m •U ++ V a) s-� a) Q O O C a) a) i O cC bA _ _ O U us cc O U E 2E C U S O �' C C Z) O_ Z, 4- (6 .0 c C C)N m C O y C S O s— CL a) a) a) o WO 0, O C a) w �C 0 U- a) O c 4+ r T a N L N.0 U E L s O cz cz a) E> a m E U) °) L N M m c pE> >� rn U E U c O +� C C U) 7 O C c +, C ++ QJ f:"i >' Z > Z U LL Z Q Q J Z c N Significant Assumptions Impacting the Budgeted Statement of Earnings Year (s) Assumption Impacted Comment Future Rate Increases on 2020-2029 Rate increases of 2% in each year of the plan for both electrical Electrical Sales/Purchases sales and purchases from NB Power. A +/- 1% would result in a +/- $199k annual change to electrical sales gross margin. Sales Mix 2020-2029 Sales mix by customer class is assumed to remain constant over the term of the forecast. Base kWh Reduction 2021 - 2029 Sales reductions in the years 2021 thru 2029 estimated to total 4.95% of the base year kWh sales by 2029. The cumulative effect of this reduction on the 10-year plan is a reduction of $4.4 million in gross margin with an annual reduction in 2029 of $1.1 million. Purchase Demand Load 2020-2029 Purchase demand load factor used in forecasting power purchase Factor costs is based on average monthly demand factors over the previous two-year period. A +/- 1% variance to the monthly load factor variance would result in a +/- $390k annual change to power purchase costs. Employee Compensation 2020-2029 Assumptions for the 2020 year were based on a known increase of 2.0%for the collective bargaining unit on April 15T, 2020 and estimates for both inflationary (2%) and progression (1.5%) increases for staff. For future years beyond 2020, an annual 2% base compensation increase has been assumed. A 1% +/- variance to this assumption would result in an annual +/- $101k of employee compensation costs. Employee Benefits 2020-2029 Increases for both current and future employee benefits were assumed to increase by 5% annually beginning in 2019. A 1% +/- variance to this assumption would result in a +/- $55k annual change to employee benefit costs. Mini -split Heat Pump Rentals 2020-2029 Planned installations of new mini -split heat pump rental units of 1,000 units in 2020 and 5,900 units over the 10-year plan. A +/- 10% variance in actual rental volumes would have a +/- $38k impact on 2020 net cash earnings and a +/- $1.2M impact over the 10-year plan. General Inflation 2021 - 2029 In all cases where a previous assumption did not exist for a budgeted item (sales, employee compensation, benefits, etc.) a 1% general inflation assumption was used. A +/- 1% variance to this assumption would result in a +/- $101k change to forecasted annual net cash earnings. Page18 `DU] 3 � N O � CO V CO 00 N 0 O V 00 (0 V V V O) O) O O) 00 00 0 Na- O I— M (C (00 V 0000 I— CO O O co Ln V N N N Na- N 00 O) m O) I -- co (0 O O 000 V 000 LO 00 ('7 O) I -- co (0 V O O V 0 (7 (0 ( 2 0 I— O O LO O Na-V 00 N N O) I— N (0 LO LO O LO (0 00 Na-co a0 � N O) I-- LO O LO O O I— � V N I— O m co 00 1— 00 O 00 N LO N N (0 N O LO N V O co O O (7 O LO V LO LO co 11-1 N L(7 O C7 O N V C O O 1— LO LO O N O V O 00 LO 00 O 00 LO O co 00 O O O O N N O O O O LO LO O O O O O O LO LO O O O O L6 O O O O O O LO LO O O O O O O C) O O O O O O O L L i m LO 1- 00 co 00 00 N (0 N O) I� N LO N LLOO 000 V O) (O LO � 00 O I� L(7 00 V N O O 00 O (o O LO N LO (0 N 00 m co 1— LO = (0 N O CO O) LO 0000 (coo LO O I— 00 N LO N O CD (0 (0 O N O LO LO 00 N 00 I— LO O _^ I— N O (0 ONO I� 00 V 00 00 N O LO N I— 1— LO Na I— LO N 00 O) LO 00 00 O N O ONO O N V c C7 LO O) I� CO 00 N O CO I— O 00 CO C V V 00 (7 00 N O I— V N O V 00 V C6 V C6 C a) E Q Z) 07 0) a> -0 O � O O0 (6 U a) a)O .> O O O C O O O O Q (U6 N O a) s a> 0) a> n O E c O 2 N Q U (6 N 0) C' O O O) E C U) E OD O E O O O _ O E O O O N a) fn > M w O m -O C U) fn O m C N C O M L1J a) N C U 6) N E L L L E ", C E p O m 'V E a) -" z) z) s a> U) Q J z O U c 0 �; 0- 0- m a> z m > U Z -tf Z LL U L fA R V O N V R R _0) V a) O f4 y V E c O V � C C U Z m 0) N O N 01 'I O N fC A 00 O M M O w -* w ci rl rl r- 0 N co N M MM q m M 00 O 00 O N N M l0 N N Ql m o (n (n (n 00 W 00 ci co (n co m W Ln N W 0 O N N Il N N O a -I qt o0 Ln O (n Ln ci 00 Ol O O 1l N ry 00 w N N O 00 O 00 Ql O N m ui N N 1l Ol (n (n O m (n 1� w ci O N I� (o m 1, qt oo ci r, in oo o ci a-1 m N 00 r, N M n 00 O 00 In 0 N M' ri (O N N of M Ln O Ol Ln Ln m O m O M (n m r-I N 1, .-i 1, .-i M M M 00 M N l0 4 r-I N N M O 1, m n 00 O N m (n r-I N 1l O (n O qt m (n qt M w .-i w O O O qT 00 .-i 1, 00 O 00 1, N W N N M M n In O N M I 1 .--I N I� O O O (n (n (n w r1 00 ci Ql O M M M t m ci 1, w n n M N O N 1� ci W n n O N M .--I N 1l w O O O M O w 1� O .-i a i 00 N O w qT O -1 O w 00 1, M N O N 00 0) r1 1l n m n In O N M l!1 c-I' N 00 1n (n N O M M 1, M M O M O O N 00 a i M N r-1 O r-1 1, m In w w N N N Ql N a -I N qT qT ci M ID N n O 00 (n (n lC tc Ql O N M ui m rn ri a ui i..1 ci 1� O O (n (n qT N M 00 ai N 00 O M r� N ^ l0 I� N 00 O 1l O O m qt w Ln N Ol M O 00 Ql Ol w w r-I 00 O * -* N M -q a-1 N I� qT ci M 00 M 1, O n O N r-I r-I N N (n 00 00 N N M m .-i r-I -i N v Ql N N w qt O oo 1, qT w n qT Ol a) 1� O Ln (n 00 1- N M M r-I 1� N qTO ' O l0 l0 -* m ni w oo ci Ln ci r, co ci m LnO M 0 Ln r, rl V t r-I 1, ci ci 00 ci M w ci ci 00 00 ci Ln N M Ql N i O m r-I M r-I N r-I Lr a -I N LL C + + C C v : � n : v o QE � °/ D � E n Es w 0Tn •7 V LL 0- C M 15 W C O E M M m I 00 w w u= M w a M O_ p o V } O +- Cc: o L 00 O a) :t C ° a) -2 N E N t N f0 =s+ C: ^ 0n x + x H o c �VI �VI •VI U N OU f0 O/ 'O Q V) H> m n H 3 cn n x vEi H m R � O � o H H O +�' O LL E E i0 (n (n N — (6 00 LL Q L L J LL U 3 U > W oo O *' Z Z . . 7 N C C C C C C (A -0 -am N N N N N Oi E Oi E 0 0 N N Q N Q y y C C C C C C L (n (n W W U U U U U U In C C £ £ 00 00 00 00 00 00 N N +0 N +0 N 16 MMMMMM � Vf Vf U U Vf Vf Vf Vf Vf Vf C7 0 r (7) rA zz 0 rA E (A no no S. 00 ..2 E. r14 0 0 c UJ raj raj 0 eaak W m rA Ll 0 rA no c i 5 .a. u 5 aj F..n L.n 0 r14 as rA c rA aj 0 E rA u aj m 0 rA 0 rA aj E u 0 0 0 0 0 0 0 0 0 0 0 0 0 0 tf)� 0 Ci. Ci. Ci. Ci. Ci. Ci. Ci. 0 0 0 0 0 0 0 The Power C,"otamission of the """I, of Sit John SAINT JOHN ENERGY THE POWER COMMISSION OF THE CITY OF SAINT JOHN is located at 325 Simms Street Saint John, N.B. Canada E2M 3L6 Voice - 506-658-5252 Toll Free-1-877-907-5550 Fax - 506-658-0868 Page22 MN May 2020 — Saint John Parking Commission The Commission exists for the purpose of conducting the necessary activity, to maintain the efficient operation of both on -street and off-street parking facilities. These business processes are for the fulfillment of public needs in relation to: • Parking in general; • The establishment of a permanent coordinated system of parking facilities; • Parking planning, design, location and acquisition; • Maintenance, operation, ownership, leasing, in the capacity of lessor or lessee, land, buildings and facilities allocated to parking; To effectively and efficiently manage On and Off -Street Parking while supporting Municipal growth and priorities. Chair - Patricia Ellsworth Secretary Treasurer - Tim Peterson Members: Kay Gillis, Michael McGovern, Charles Bryant, Donna Reardon, 1 vacancy 22 staff - comprised of Saint John Parking Commission staff and contract services members. Note: Employment staffing consists of 3 local 486 members, 2 maintenance employees, 2 full time Market Square supervisors, 3 rotational Market Square commissionaires, 3 rotational Sydney St booth commissionaires, 6 On and off-street enforcement commissionaires, 1 Enforcement Supervisor, 1 Operations Manager and 1 General Manager. Saint John Parking Commission does not receive an operating subsidy from the City; There are two (2) revenue streams for the Saint John Parking Commission- - On -Street Parking: Net income generated by this business process is directly allocated to the City of Saint John. Saint John Parking Commission recoups a small fee for services. Off -Street Parking inclusive of the Peel Plaza Parking Garage. Note: 100% of revenue from off street lots and Peel Plaza is realized by the Saint John Parking Commission. Off- Street Parking as it relates to Market Square Parking Garage operates in a similar fashion to On -Street Parking, whereby the net lifig] income generated from the garage is directly allocated to the City of Saint John. SJPC recoups a small fee for services. For 2020, SJPC has four Cl plans in the works or currently completed as projected. 1. Increase On -street parking rates, up to $2.25/hour 2. Increase initial penalty notice infractions by $10, as well as increases when a ticket ages 3. Increase monthly parking rates by a minimum of 10% ➢ Already implemented as of April 01st, 2020 4. Commence planning for differential parking for non-residents of Saint John • 17 new Pay by Plate machines have replaced the old Pay & Display machines Investigating the launch of an electronic permitting system. This will allow the public to purchase any type of permit online. Improves customer experience, creates efficiency and will allow for accurate data collection. On -Street Parking 2020 Annual Budget Revenue: $1,841,000, Expenses: $616,655, Net Income: $1,224,345 Off -Street Parking 2020 Annual Budget — Surface Lots Revenue: $2,054,578, Expenses: $1,981,971 Net Income: $72,607 Off Street Parking 2020 Annual Budget — Market Square Revenue: $1,544,240, Expenses: $338,955, Net Income: $1,205,285 Off Street Parking 2020 Annual Budget — Peel Plaza Parking Garaqe Revenue: $411,385, Expenses: $1,109,265, Net Income ( 7, ) On -Street Parking 2020 YTD — April YTD Revenue: $370,431 Expenses: $141,374 Actual Net Income: $229,057 Budgeted Net Income: $400,851 Off -Street Parking 2020 YTD — April YTD - Lots Revenue: $578,505 Expenses: $703,225 Actual Net Income: (1 ,7 ) Budgeted Net Income: (3 ,373) ME1 Off Street Parking 2020 YTD — April YTD — Market Square Revenue: $370,958 Expenses: $69,644 Actual Net Income: $301,314 Budgeted Net Income: $398,470 Off Street Parking 2020 YTD — April YTD — Peel Plaza Parking Garage Revenue: $132,467 Expenses: $337,043 Actual Net Income ($204,576) Budgeted Net Income: ( 33,1 2) **Note: Covid-19 has significantly impacted the revenue stream of all Parking related income statements. Until such a time that businesses are re -opened, this trend will continue. • Identify strategic land use opportunities as it relates to the overall Growth Plan; • Work toward On and Off street parking availability representation, electronically (Hotspot application); • Electronic permitting • Performance Area Targets will continue to evolve as a result of Phase II of the Transportation Plan and through the Commission'(s) efforts in development of a multi -year Strategic Plan; • Addition of 17 new Pay by Plate Machines in the uptown core. • Minimum 10% rate increase to all Off-street parking lots managed by the Saint John Parking Commission. • Beginning the implementation of a new electronic permitting platform. • Update of the new Parking and Traffic By-laws to comply with the new Local Governance Act. • New penalty notices created, to comply with regulations under the new Local Governance act. • Sale of the Canterbury Parking Garage, in lieu of a new multi level commercial and residential building. (The Telegraph). This will help improve the tax base for the City of Saint John. • Effective April V 2020 we introduced anew monthly parking lot in SCP known as Vulcan St lot with 37 spots rented. `sM • Covid-19. Significant revenue loss, as it relates to all aspects of Parking, both On and Off-street • Dredging of the Water Street lot. This may result in reduced capacity in the lot, thereby requiring monthly parkers to be displaced. • Development of the new Multi -level building at the corner of Canterbury Street and Grannan lane, will cause the loss of both On -street parking revenue and potentially the loss of monthly revenue in the Princess lot (required for lay -down space), during construction. • Until the majority (if not all) restrictions are lifted as a result of Covid-19, there will be dramatic impacts to the revenue side of all Parking income statements. None `sr -I May 2020 - Transit Commission The Commission exists to provide municipal transit service in alignment with the municipal and transportation plan(s). (PlanSJ & MoveSJ) An efficient and safe operation / strategic planning of municipal transit services. Chair - Patricia Ellsworth Secretary Treasurer - Tim Peterson Members: Kay Gillis, Michael McGovern, Charles Bryant, Donna Reardon, 1 vacancy 70 staff comprised of- - 45 Full Time / 8 Part Time Drivers; - 15 Maintenance staff; - 8 Administration/Supervision staff; Plus 2 Part time Note: Reduction is the result of layoffs in April $5,894,787 $4,315,215 $10,210,002 Year To Date Budget Year To Date Actual Cost of Operations: $2,099,967 Cost of Operations: $2,343,487 City Subsidy: $1,964,928 City Subsidy: $1,964,928 ��135,039) Deficit - Adapt to the ever changing effects of Covid-19 - Development of service standards. Standards will define when to add or decrease services. Upon approval and adoption, standards will be posted publically; this has been halted and not complete. - Develop new website for easier access to transit information, email notifications and service updates; - Continuing talks with a vendor for a new pay by phone app. - Continue to work on employers and post -secondary transit programs to increase ridership; Ii§rA - Performance Area Targets will continue to evolve as a result of Phase II of the Transportation Plan and through the Commission(s) efforts on a multi -year Strategic Plan; - Rapid adaption to the impacts of Covid -19 o First Transit system in Canada to reinstate the collection of fares, by implementing security shield between the operators and the public o One of only a few transit systems who actioned layoffs to help reduce costs o Reduced service hours by 27%. 97,000 down to 71,200 o Reduced subsidy to Para transit by over 25% - Stantec: Transit Operational Audit Review, currently on going and to be completed by Aug 2020, on target. - Recently amended the Vehicle for hire By -Law to assist the Taxi industry during Covid-19 o Temporarily allowed taxis to be 8 years of age instead of 7 o Deferred the payment of both the Operators and Owners licence o Permanently added the ability to use a laptop as a taxi meter. - Commenced contract negotiations with ATU Local 1182 -temporarily suspended as a result of Covid-19 - Continued focus on part time roster of drivers to reduce overtime expenditures while developing a pool of trained candidates to address eminent retirements; - Covid-19 o March 19, suspended fare collection to ensure social distancing between the operator and the public o March 21, started social distancing on SJTransit buses, thereby limiting capacity to only 9 passengers plus one operator/bus o April 18, resumed fare collection, albeit at a much lower volume, as a result of social distancing. o April 26, 2020, 27% reduction in service hours o May 09, layoffs of approximately 20% of permanent staff o Insufficient revenue, to remain cashflow positive after mid July. - Nextbus: on going legal issues which is currently being handled by our legal team at Cox and Palmer. - Significant increase insurance premiums ($45,000) Ii§F:3 - Significant school board ridership continues to decline. There is a provincial initiative to move students from City Transit ridership to school bus network use; - Collective Agreement has expired - Efforts required to find Federal or Provincial funding to aid with the impacts of Covid-19 - Advocacy that our— and all for that matter -Transit systems be Carbon Tax exempt; - None lifi�7 2020 ABC Written Submission Template To operate a first class Conference Centre comparable to other centres of its size in North America. To be an economic driver for the community. The facility functions as a venue in which to host meetings, conventions & special events and as a hub for a broad range of events for the local community. Hilton Saint John manages the Centre on behalf of the City of Saint John. Management reports to both the 'Greater Saint John Regional Facilities Commission' and to the 'Saint John Trade & Convention Centre Oversight Committee'. Peter Murray is the chair of the Oversight Committee. Provides employment for up to 90 people during peak events. The Centre operates within a budget approved by the 'Greater Saint John Regional Facilities Commission' The Centre's primary revenue streams are : a) meeting room rentals b) food and beverages sales c) audio visual / power / broadband. Revenues have been and are anticipated to continue to be severely impacted for the balance of the year due to COVID-19 are expected to decline by a minimum of $300,000 depending on how long current closure lasts. Only weeks into the 2020 season, the centre closed its doors as a result of the current state of emergency in the province. Since that time all capital projects and planned improvements have been put on hold. Hilton continues to work on a number of improvement initiatives with the city and their consultants, Deloitte. All revenue and expense numbers are shared with both the Regional Facilities commission and the TCC Oversight Committee at various times throughout the year. As of April 30, results are better than budget by $47,909. For the full year we have prepared several versions of our forecast contemplating several operating scenarios all subject to when restrictions on large gatherings will begin to lift. The 2020 budget as approved by both the Oversight Committee and the Regional Facilities Commission and our recent forecasts in light of projected COVID-19 impacts guide expenditures for the balance of the year. Due to a strong start to the year, YTD actuals as at April 30 are better than budget by $47,909. In mid March, the centre ceased operations in compliance with New Brunswick State of Emergency directives. The centre remains closed to date. We continue to monitor the current situation to understand when operations can resume. Given the extensive cuts made to payroll and other unapportioned expenses, much of the financial impact has been mitigated despite revenues anticipated to decline by $300,000 at a minimum. Current forecasts project up to an additional $ 40,000 in contribution may be required depending on how long the current closure lasts. Hilton has applied for CEWS relief for the .6 of one FTE that is still required to manage essential centre administration. The team at the Trade and Convention Centre is very anxious to get back to work on our critical mission to bring visitors to our area and drive spend at the centre and surrounding businesses. Like all those engaged in the meeting and convention industry, we are in a holding pattern as we see what size events will be permitted and what procedures and processes will need to be in place to safely host these events. We are fortunate to have the resources of Hilton assist with evaluating market conditions and providing guidance, policies and procedures for safe and successful reopening. In the meantime, we are laser focused on two things — minimizing costs due closure and watching for new opportunities to serve our community and local businesses that have been so hard hit by the impacts of COVID. Delegates to events at the Trade and Convention spend at local restaurants, retailers and service providers. This source of business and revenue for many Saint John operations is often the difference in keeping operations viable. ` el • Keep product fresh, relevant and competitive with new centres in Halifax and Moncton coming online. Fredericton now has a hotel connected to their facility. • Ensure pedway system is maintained and accessible to guests with varying mobility, as this is a key competitive advantage for Saint John. • Ensure escalator and elevator infra structure within Market Square is maintained as recent unplanned outages have created considerable challenges to operation and accessibility. • Enhance and amplify marketing efforts in order to expedite recovery from COVID-19 • Ensure Saint John Trade and Convention Centre has the city's support to retain it's blue chip reputation for professionalism and hospitality so it can continue to be a key economic driver for our region. • In partnership with Discover Saint John, support required to market to high potential meeting and convention markets and continue to "punch above our weigh" in this very competitive arena. The Trade and Convention is a key economic driver in the city generating millions in ancillary event attendee spending annually. It ensures viability for many business operators within the uptown area and beyond, enhancing the vibrancy of the uptown life style and supporting GDP and tax revenues. The visitors the TCC attracts bring new money into our region and are a target market for potential new residents and entrepreneurs for our city. See attached Meetings Mean Business PowerPoint. Power point — Saint John Trade and Convention Centre — Meetings Mean Business *Objective is to have each written submission no longer than three (3) pages in length. 121 Iw AI1P1, An 'N 04 ell m ltj 1w p- 4.0 v v,,- 9 M 4 4, N", I tl Is �E N19 0 q ca 4-" 11) Al M M 710 m q4 re g, mll 4", ;6, ri ter z s, 4, n, -4 Aj 2 g". 4i TIT, n c4 4j; 0 III a, "roA TN: r! h ib d.J � 1 6 dN �K b r.,b r,.v ry rb m -r- fn LA w I'm' N, A' tot 11,11 1,11 17111 1:1 C,', 4A Lm 4a c LA iyl �L LL ez) 0 M 0 OW 0 Pil ff!l I- X. W N� M 0 w7 Vi T1 0 1,p f;71 pq IN fl, -j m Nis A V 0, W Op o, IRI 1 0 04 1 110 mm 'Sly, w,Kr r uuw m ru il r, w uwm 'o '&,"I Ixrw 5 '04 N, fjO C". 0 11% F) 't ol 41% rb oA 546 v aN 'd, mC$ N Ire (a up ol Z", fh i IP N fo'm mir, �f) #Q ld M I'll R, 41 — — I 2 t5 Rf 4r N YY MYWYYI� • 3: -0 O O cu N N O E O U U N to cn O cn (u m � E c m cu o o - 3 z o O U J _0 cu H U) U � � O N N N E � � O Z CD U � O � O � � N N N � � ai cU CU cu cu W CU c N E O 0 cu cu O N (�f U O 0 a� a� U) cu U) (u N U U) cu cli U) U) cu U) cu (�f RN U N O cc > cn c cu cu E O N ' cn 0 � cn U C- E o N O c o 4- o C- L>, O a� o o 0 > U U) c U U O (u c O (u N N U cu U 0 N � N C- CU > -0 O Q U U) N CU a) C: C)) U) O � U cn -0 a� E C- cn 0) a O O U � W (n COUNCIL REPORT M&C No. 2020-183 Report Date July 15, 2020 Meeting Date July 20, 2020 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of Common Council SUBJECT. Proposed Public Hearing Dates — 30 King George Court, 445 St. Martin's Road and 4001 King William Road 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 I John Collin RECOMMENDATION That Common Council: 1. Schedule the public hearings for the rezoning and Section 59 applications for Gordon Breau (30 King George Court), Dana Whitenect (445 St. Martin's Road) and Natural Forces (4001 King William Road) for Monday September 14, 2020 at 6:30 p.m. to occur via web conference, and 2. Refer these applications to the Planning Advisory Committee for a report and recommendation. EXECUTIVE SUMMARY The purpose of this report is to advise Common Council of the rezoning and section 59 applications received and to recommend an appropriate public hearing date. The next available date is Monday, September 14, 2020. 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 591 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. MAN -2- REPORT In response to the motion above, this report indicates the applications received and recommends an appropriate public hearing date. Monday, September 14, 2020 is the first meeting available. The following applications were received: Name of Applicant Location Existing Proposed Reason Gordon Breau 30 King George General Section 59 To permit the Court Commercial Amendment construction of an (CG) accessory storage building. Dana Whitenect 445 St. Martin's Rural (RU) Neighbourhood To permit a Road Community daycare. Facility (CFN) Natural Forces 4001 King Medium Green Energy For expansion of William Road Industrial (IM) (GE) the future Burchill and Rural (RU) Wind Farm. 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: • 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. SERVICEAND 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. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Not Applicable ATTACHMENTS None `f01:3 City of Saint John Operational Review Final Report March 31, 2020 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 11111111, ABC: Agencies, Boards and Commissions 11111111, CAGR: Compound Annual Growth Rate 11111111, CMA: Census Municipal Area 11111111, EBITDA: Earnings before interest, tax , depreciation and amortization 11111111, EDGSJ: Economic Development Greater Saint John 11111111, FMS: Fleet Management System 11111111, FTE: Full-time equivalent 11111111, HR: Human Resources 11111111, IT: Information Technology 11111111, MoU: Memorandum of Understanding 11111111, NPV: Net present value 11111111, PSCC: Public Safety Communication Center 11111111, RFP: Request for proposal 11111111, SCDWP: Safe and Clean Drinking Water Project: City of Saint John 11111111, SOP: Standard operating procedure 11111111, TCO: Total cost of ownership 11111111, VMA: Vehicle Management Agency 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 restructurethe 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 ]IF I 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. ]IF I 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%. aaaaaaaaaaaaaaaaaaaa �� r rAdvocacy for' iiiiiiiiiiiiiiiiiiiMIX/i �' Four main themes have surfaced through ongoing work by the City: Key areas of change undertaken U 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. Thesethemes 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 Cityservices 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 - $9,400 The City also has additional revenue generation and cost reduction ideas that have not been included in the estimates. The City and Council are encouraged to prioritize a limited number of larger transformative changes rather than seeking to implement a large number of small changes. Our experience has shown that implementing a significant number of small changes will be difficult with limited resources and it will be difficult to sustain these many changes over time. Summary of key opportunities (000,$) Fire and rescue services -Transform service delivery through 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 - Optimizesolid 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. DTax 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 'Add itionaI 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 Saint John 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 III IIIIIII 68,808 430,512 161,531 107,909 234,177 hllllllll 34,070 195,529 75,612 50,388 95,194 III�IIIIIIIIIIIIIIIII tllll I�IIIIIIIIIII �I IIII I�I�I�I�II� 3,509 5,927 3,625 2,556 4,324 i IIIIII IVi II II illllllll 111 I IIII I IIII 828 4,366.90 2,546.00 2,365 2,836.40 go RWM 175,194,925 976,736,401 611,406,751 540,245,680 594,141,996 aim= 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 m111. IT m111. Finance m111. Human Resources m111. Procurement m111. Fleet services m111. Infrastructure m111. 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. ffj�1/� �IXX O o J Summary of key opportunities (000,$) Fire and rescue services -Transform service delivery through 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 - Optimizesolid 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. .J IF D Hire ire Spending ..... 01.7....:1 $25, 000, 000 $24, 000, 000 $22, 000, 000 ® 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 Ill r&nsfarlmhng the d� iii iir of the Rre s&rvices, $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 identify call 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%. 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. $2 7, 000, 000 $26,000,000 $24, 000, 000 20.3..7 20.3..8 20.3.9 ® 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 ��Vice 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-250K annually (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:Exploringjoint 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 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. Met incoirne $6,000 $4,000 $2,000 $0 201.6 201.7 201.8 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 lil III III m„., o III III III ...... III IIIe III C' J d livid e lnd 0 IIn t r lil I t i 0 Ilr 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) ® Positioning SJ Energy as an innovation hub for the City to attract new residents and businesses. $4.5M - $8.2M ® Dependent on government appetite to support changes to/re-interpretation of current legislation Activity 2020 2021-2022 ® 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: ® 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. 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 220220 220211.. 22022 22023 22024 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 eats and i n f ra s, t Ilr t.i c t t.i 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 20 00 2020 2021 IM 202< 2024 Investment 1.0lienefH ;i 0 0 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. $4.6M. 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 maybe 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. JIL 0 2020 2.02.11.. 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 $3.7M (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 $4M 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 t III P III'" III'".. 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 ► usability of the land. Increasing the property tax base may have financial 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. 1.s 0 w of 00 2020 2021 2.02.2. 2.023, 2.02A nvesfsrient 0.5 � 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 rIt N'k l i r + J _ f ,,, Ay. IIIN✓ � �i, 11 ., ,��.1. mil,✓!".,: 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 iir. iir iir iir enhancement lira iir 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 Low1.3 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 i 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. 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 ($1OK-$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 $49:000 $48,000 $47,000 $46 00011 $47,137 $46,605 $4S,2S6 $[45,000 2017 2017 2017 2018 201.9 201.9 Revenues Expenses Revenues Expenses Budget Budget Revenues Expenses 2017 2018 201.9 ® 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 iir t JoNn Water opthmizatian and fund 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 outlines the 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: Seethe 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 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: ® DiscoverSJ:$1M ® EDGSJ:$475K ® DevelopSJ:$821K $; t'900,000 ro:i. r uuuu ro: 8 ro: 9 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 ��Rlegianahzatian of a iir air. m iiic devd o pii m iir t .;; Level of risk • - 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. ® Redeploysome 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 tothese, 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 `.i50,000 $2,500,000 201.7 201.8 201.9 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 �eet opthmizatian 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* i1roval 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. 38.0 Based 2017,2018 actuals and 2019 budgeted 7.0 A y�� 4J.0.1 11 35.0 01.7 201.8 201.9 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 III�.�iiic w oiir ............ iiiiiiiirand Warldarce $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 @ $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 (3@$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 Savants (000"s) Waste Winter Road Winter Casual Trairasforirra Vlanagernentvauntenance 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 Activity ® Annual salaries for Public Works workers are estimated 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 benefits. ® Collective agreement restrictions regarding layoffs can be removed ® Collective agreement restrictions around career paths can be amended to be more flexible ® Management's ability to estimate work levels based on past experience and knowledge of down time, non- productive man hours, and overstaffing of crews. ® 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. taflsflcM pr0fllI ® N/A l Regional Commissions City Commissions Incorporated :..:J itlties & Companies uuuui (Aher Affiliates ® 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 III; iirf iir lira $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 ,� uu4VVVVVVV�, �a R 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 A.. III...... abour lirdt iii a iir 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). Local486 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 agreementsthat 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 A.. III...... abour lirdt iii a iir 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...111...E iirf iir lira 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 2021122. 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 4.3III: iir f o iir iir n a ir iir n a n a g e iir n e ir L, a n d a c c o i.i n L, a b iii � iii 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; .L. 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 .mm .III: giiionar o��aboiiratiiioiir 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 . !, 1 5 G overiirstructure i.i 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 behavioursthat 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 ® 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 Yea rs 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 Yea rs Y1 Y2 Y3 Y4 Y5 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 III Winter road maintenance Winter workforce reduction Casual workforce reduction ME Improve Travel time Transform the role of foreman Removing, consolidating and NEEMENESEEM 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. B. 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.hamiIton.ca/sites/default/files/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.halifax.ca/sites/default/files/documents/city-hall/regional-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_72448b98-71c3-11e9-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.html 6.3 Shared services The City has explored a shared services model for IT services; however, there are opportunitiesto 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 2.1 M 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 50,388 234,177 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)* * �I :'��P'�:', �a�l."�� 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 �J 4%n • Police services total cost per $8,076 (HFX)*** J 3,248 L64%n sq. km Waste • Total cost for solid waste management diversion per tonne - all $275 �0% $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% by-laws per 100,000 population Culture • Culture: Total costs per capita $12.60 $23.31 J0.7'J -46%n Parks • Operating cost of parks per $40.25 $64.38 °- 7"Xn capita'I.:l.�.:',', Planning • Total cost for planning per $17.74 $23.505 , 5 s °a 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 27 0"' "" 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 # 21 Search this area .. , ....... ..vafrx aSaint ,Jo Alrpu rl Kennebecosis Island u ;Grand Bay -Westfield �a Fire Department 1a _. Rockwood Saint John Fire xd Park Department Station # 2 John Fire 9rk Department Station # 8 SlyFlu,Mx'mv "' Fire Station #4 Saint John - �V„!•.. Fire. and Rescue a Services Saint John Acainaa 9Saint x John Fire Department Station # 6 Fire Station #7.. It, III'2 M _ Irving h.,VO"91le III... iii airµ le s f a f iii o iiii proxirnity 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. ��. n lSenamkrment Rtarinn# 6 f f 1I1J h. 1 rh1111UN1t D .n r hnC'1Vr/a D [ l 1P, dIrad # tr , � u ,. F# # „ SeYntl John lFn. vv CIIkI ,k {YNHI o� im�ilCxl' '4 fi II Q I trillu I c,; ff I r k A In---------------- n` �iaa:�alfn 1 my islrr rlrair f u ry St Manch.acEer A.rlul, 11 M clnlrvld,l,r rv'1 Isn e IIG+&aP nllrr , "B'.i p,W 1 /i 11, q _ � mark IIl v arM , rk, i, AfICAJ r,�i ifri ii 11.. 1._ Sir 1 u,1f g , " atli, ri'C7emrtmrltt fit+atik of sakk 11111 IIBYI, yc rrd @'^ ` d int,.hln a 1 rr+i 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.) � &uBirll JbX n k tG� %��n3ePzrtmuane S,Ya'cliair � H u ��IUIIV��V Distance and travel time between Stations 8 and 5 is 2.6km and 4 minutes. A risk analysis should be performed to support the closure of Station 8. � �a,,.`, nti I I Arri,nrr 6 tJ M C Ids 04"1Same. +f rry'Rif, f;CP" 0 5 A t JauB�n IFive I�epn imcnf Sta7urv. N �' ff,'�,A V k Ham WNPsi1e-91. W f r 1 l� , R L A I I U a iOMNI, .. Distance and travel time between Stations 8 and 4 to the middle of Sandy Point Road - Hazen�� Rt. S1.11w 44 S11ttrJtt White St. Francis School is between 4-4.5km and within one minute with the new highway interchange. Saaorh .UnRaiin 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) Value . (2019 =ME EM a.ssessmenyt) 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 BallfieId/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 10 Fisher Lakes Utilization Further workers. Interpretation assessment Annual N/A Drive review Centre 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 Operational Harbour Passage 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). 1141 Lorneville Operational Recreation 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) Refer to fleet business case Municipal 171-173 Operational Refer to fleet Operations Rothesay assessment (Not included in business case Complex Avenue 19 municipal (savings building excluded opportunities) from buildings and lands business Refer to fleet cases) business case 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 (E01) 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 E01 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 assessmentvalue 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 (112) 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) Saint John 7 Water Saint John 2 Parking Roads 3 LPP 3 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) $551,400 Off Golden Grove Road ($26,600) - (PAN 03815852) Route 820 ($26,300) - (PAN 06564565) $247,000 $181,800 $76,500 Real Estate 1 $60,000 N/A Surplus Impaired Total Total Opportunity Value 1 $41,400 1 $44,700 1 $33,300 48 $2,853,500 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. One-time sale Smythe Street ($219,800) - (PAN 01658929) One-time 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 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) 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) Beaverbrook Ave ($60,000) - (PAN 06297663) One-time sale 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 Mac Laren Blvd ($44,700) - (PAN 04141272) One-time sale 154 Germain Street West ($33,300) - (PAN 01617321) One-time sale 32 $1,875,400 This total excludes the "Assumed No Opportunity" vacant lands Lands opportunities (212) 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 E01 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 areajust 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 easementfor 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 total sp6,hd ' $138.60 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 594A0 Mfi 29% of total spend, $3,31 M A of total spend $3,2Z M lris of total spend) $67.65 M, 6% of total spend $71.61 Mfi 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 = $ 185.91M $ 321.81M 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 Overview Covered in fleet business case $7.62 M $3.88 M $8.36 M $4.84 M $3.53 N $a.24 M $3.38 M $2.57 $2.49 M $0.66 M �- $4.78 M $4.04 M $3.72 M $3.85 M' � $1.36 M $1.32 M $1.22 ICI $3.33 VI $2.72 M $1.43 M $1.72 �$O- �a oaQ ay a� 141 �a a`z, AS �e �e IIIIIIII 2018 11111111112019 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 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. .L. 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 examinethe 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. 11� Ensure sustainability/affordability alignment. 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/adviceto 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 advisesthe 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 Resourcesteam 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. 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L o Q W co -o E O O W O J>--6 co L0 i OO Q H O O E .� BY-LAW NUMBER C.P. 111-92 A LAW TO AMEND THE ZONING BY-LAW OF THE CITY OF SAINT JOHN ARRETE No C.P. 111- 92 ARRETE MODIFIANT L'ARRETE DE ZONAGE DE THE CITY OF SAINT JOHN Be it enacted by The City of Saint The City of Saint John, reuni en John in Common Council convened, as conseil communal, edicte cc qui suit: follows: The Zoning By-law of The City of Saint John enacted on the fifteenth day of December, A.D. 2014, is hereby amended as follows: 1. Section 3.1 is amended by deleting the definitions for "garden suite", "mobile or mini home", "semi-detached dwelling", and "two -unit dwelling" and replacing them with the following: "garden suite" means any secondary use to a one -unit dwelling or a mobile or mini - home containing one dwelling unit, where another dwelling unit is established in a separate building on the same lot. "mobile or mini -home" means a detached dwelling containing one or two dwelling units having a length or width of less than five metres, but does not include: (a) A detached dwelling comprised of two or more sections with a width and length of five or more metres at all points; or (b) Major recreational equipment "semi-detached dwelling" means a building containing two dwelling units arranged side by side and separated vertically by a common wall that extends from the foundation to the roof, but does not include a mobile or mini home. "two -unit dwelling" means a building containing two dwelling units, but does not include a semi-detached dwelling or mobile or mini home. L'Arrete de zonage de The City of Saint John, edicte le 15 decembre 2014, est ainsi modifie : 1. L'article 3.1 est modifie par suppression des definitions de « habitation bifamiliale », « habitation jumelee », maison mobile» on « mini-maison» et pavillon-jardin» et leur remplacement par cc qui suit : habitation bifamiliale » Bdtiment comportant deux logements; sont exclues les habitations jumelees, les maisons mobiles et les mini-maisons. (dwelling, two -unit) habitation jumelee» Bdtiment comportant deux logements agences cote a cote et separes sur le plan vertical par un mur mitoyen allant de In fondation jusqu'au toit; sont exclues les maisons mobiles et les mini-maisons. (dwelling, semi-detached) maison mobile» on « mini-maison» Habitation isolee comportant un on deux logements dont In longueur et In largeur sont inferieures a cinq metres, a 1'exclusion de cc qui suit : a) les habitations isolees composees de deux on plusieurs sections dont In longueur et In largeur sont superieures a cinq metres en tons les points; b) les gros equipements recreatifs. (mobile or mint -home) pavillon jardin» Vise un usage secondaire par rapport a une habitation unifamiliale, a une maison mobile on a une mini-maison ou un autre logement se trouve dans un bdtiment distinct sur le meme lot. (garden suite) 2. Section 9.8 Garden Suites is 2. L'article 9.8 Pavillons-jardins est repealed and replaced with the following: abroge et remplace par cc qui suit : 9.8 Garden Suites 9.8 Pavillons-jardins Where permitted by this By-law, a lot La ou le present arrete le permet, les lots containing a one -unit dwelling, or a mobile comportant une habitation unifamiliale on 262 or mini -home containing one dwelling unit, as a main use may also contain a garden suite as a secondary use in separate building subject to the following requirements: (a) [Repealed: 2016, C.P. 111-35] (b) The garden suite shall not exceed a maximum gross floor area of 70 square metres; (c) The garden suite shall not exceed a maximum height of: (i) Six metres when located on a lot in a RC, RM, RE, R2, or RI zone; and (ii) Eight metres when located on a lot in any other zone; (d) The garden suite shall be in the rear yard and not be closer than: (i) Two metres from a side and rear lot line when located on a lot in a RC, RM, RE, R2, or RI zone; and (ii) Three metres from a side and rear lot line when located on a lot in any other zone; (e) The garden suite shall be serviced in the same manner as a main building or structure in accordance with section 8.16; (f) Notwithstanding paragraph (e), electrical service shall be provided underground when located on a lot in a RC RM, RE, R2, or RI zone; (g) The required setbacks mentioned in paragraph (d) shall be landscaped in accordance with section 6.2; (h) In accordance with Part 4, there shall be at least one on -site parking space for the garden suite in addition to those required for any other uses of the lot; and (i) [Repealed: 2016, C.P. 111-35] 0) No bed and breakfast, home day care, home occupation, neighbourhood day care, secondary suite, or supportive housing is permitted in any building on the lot. une maison mobile on mini-maison comportant un logement en tant qu'usage principal peuvent 6galement comporter un pavilion jadin en tant qu'usage secondaire exerc6 dans un bdtiment distinct, sous reserve des conditions suivantes : a) [abroge : 2016, C.P. 111-35]; b) le pavillon-jardin ne peut avoir une afire de plancher brute superieure a 70 metres carr&s; c) le pavilion jardin ne peut avoir une hauteur superieure, selon le cas : (i) a six m6tres, s'il est situ& sur un lot dans une zone RC, RM, RE, R2 on RI, (ii) a huit m6tres, s'il est situ& sur un lot dans toute autre zone; d) le pavilion jardin doit &tre situ& dans In cour arriere, a une distance minimale, selon le cas : (i) de deux metres d'une limite lat&rale du lot on de In limite arriere du lot, s'il est situ& sur un lot dans une zone RC, RM, RE, R2 on RI, (ii) de trois metres d'une limite lat&rale du lot on de In limite arriere du lot, s'il est situ& sur un lot dans tome autre zone; e) le pavilion jardin doit &tre viabilis6 de In m&me maniere qu'un bdtiment principal on qu'une construction principale et conformement a Particle 8.16; f) malgr& 1'alin6a e), s'agissant des lots situ&s dans une zone RC, RM, RL, R2 on R1, le branchement d'&lectricit& doit &tre souterrain; g) les marges de retrait obligatoires mentionn&es a 1'alin6a d) doivent &tre paysag&es conformement a Particle 6.2; h) conforni&ment a In partie 4, it doit y avoir an moins un emplacement de stationnement sur les lieux pour le pavilion jardin en plus de ceux exig&s pour les autres usages exerc&s sur le lot; h) [abroge : 2016, C.P. 111-35]; i) les gates touristiques, foyers-garderies, activit&s professionnelles a domicile, garderies de quartier, logements accessoires et logements avec services de soutien ne sont permis dans aucun bdtiment situ& sur 263 IN WITNESS WHEREOF The City of Saint John has caused the Corporate Common Seal of the said City to be affixed to this by-law the * day of *, A.D. 2020 and signed by: Mayor/Maire le lot. EN FOI DE QUOI, The City of Saint John a fait apposer son sceau communal sur le pr6sent arret6 le 2020, avec les signatures suivantes : Common Clerk/Greffier communal First Reading - July 6, 2020 Premiere lecture Second Reading - July 6, 2020 Deuxieme lecture Third Reading - Troisieme lecture le 6 juillet 2020 le 6 juillet 2020 264 PROPOSED MUNICIPAL PLAN AMENDMENT RE: 2304-2310 OCEAN WESTWAY 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: Re -designate on Schedule A of the Municipal Development Plan, a parcel of land with an area of approximately 1.61 hectares, located at 2304-2310 Ocean Westway, also identified as PID No. 55007074 and a portion of PID No. 00465856, from Stable Area to Employment Area as illustrated below; Re -designate on Schedule B of the Municipal Development Plan, a parcel of land with an area of approximately 6258 square metres located at 2304-2310 Ocean Westway, also identified as PID 55007074 and a portion of PID No. 00465856 from Stable Residential to Stable Commercial as illustrated below; Re -designate on Schedule B of the Municipal Development Plan, a parcel of land with an area of approximately 9879 square metres located at 2310 Ocean Westway, also identified as a portion of PID 00465856, from Rural Resource to Stable Commercial as illustrated below. A public presentation of the proposed amendment will take place at a regular meeting of Common Council, to be held via web conference, on Monday, July 20, 2020. PROJET DE MODIFICATION DU PLAN MUNICIPAL OBJET : 2304-2310, VOIE OUEST OCEAN Par les presentes, un avis public est donne par lequel le conseil communal de The City of Saint John a 1'intention d'6tudier la modification du plan d'amenagement municipal comme suit: Modifier la designation, a l'annexe A du plan, d'une parcelle de terrain d'une superficie d'environ 1.61 hectares, situ6e au 2304-2310, vole Ouest Ocean, et portant le NID 55007074 et une partie de NID 00465856, afin de la faire passer de secteur stable a secteur de d'emploi, comme it est indique ci-dessous; 2. Modifier la designation, a 1'annexe B du plan, d'une parcelle de terrain d'une superficie d'environ 6258 metres carres, situee au 2304-2310, vole Ouest Ocean, et portant le NID 55007074 et une partie de NID 00465856 afin de la faire passer de secteur residentiel stable a secteur commercial stable, comme it est indique ci-dessous; Modifier la designation, a 1'annexe B du plan, d'une parcelle de terrain d'une superficie d'environ 9879 metres carres, situee au 2310, vole Ouest Ocean, et etant une partie du NID 00465856, afin de la faire passer de secteur de ressources rurales a secteur commercial stable, comme it est indique ci-dessous. Une presentation publique du projet de modification aura lieu lors de la reunion ordinaire du conseil communal, qui aura lieu par conference Web le lundi 20 juillet 2020. NOW REASON FOR CHANGE: To permit a commercial development. Written objections to the proposed amendment may be made to the Council, in care of the undersigned, by August 20, 2020. Enquiries may be made at the office of the Common Clerk or Growth and Community Development Services, City Hall, 15 Market Square, Saint John, N.B. between the hours of 8:30 a.m. and 4:30 p.m., Monday through Friday, inclusive, holidays excepted. Jonathan Taylor, Common Clerk 658-2862 REASON DE LA MODIFICATION: Permettre un developpement commercial. Veuillez faire part au conseil par ecrit de vos objections au pro.]et de modification au plus tard le 20 aofit 2020 a 1'attention du soussigne. Pour toute demande de renseignements, veuillez communiquer avec le bureau du greffier communal ou le bureau de service de la croissance et du developpement communautaire a l'hotel de ville au 15, Market Square, Saint John, N.-B., entre 8 h 30 et 16 h 30 du lundi au vendredi, sauf les.]ours feries. Jonathan Taylor, Greffiere communale 6582862 Q-1-1 CIVICADDRESS: 12304 Ocean Westway Saint John I PI D #: 1155007074 and 00465856 HERITAGE AREA: Y / N INTENSIFICATION AREA: Y / N FLOOD RISK AREA: Y / N APPROVED GRADING PLAN: Y / N Ll CATI ON #: 1 (20-109 DATE RECEIVED: RECEIVED BY: APPLICANT EMAIL PHONE Long Beach Enterprises joe.thompson@nb.aibn.com 506 659-2781 MAILING ADDRESS POSTAL CODE c/o Coastal Enterprises 48 Dipper Harbour Rd Dipper Harbour, NB E5J 1X2 CONTRACTOR EMAIL PHONE Coastal Enterprises joe.thompson@nb.aibn.com 506 659-2781 MAILING ADDRESS POSTAL CODE As above OWNER EMAIL PHONE Long Beach Enterprises joe.thompson@nb.aibn.com 506 659-2781 MAI LING ADDRESS POSTAL CODE c/o Coastal Enterprises 48 Dipper Harbour Rd Dipper Harbour, NB E5J 1X2 PRESENT USE: Seafood Retail and packaging PROPOSED USE: Seafood Retail and Packaging FJINTERIOR RENOVATION n NEW CONSTRUCTION nVARIANCE FISTREET EXCAVATION LJ HERITAGE DEVELOPMENT EXTERIOR RENOVATION F -]ACCESSORY BLDG nPLANNING LETTER F DRIVEWAYCLILVERT F1 HERITAGE SIGN 7, ADDITION Q POOL F -TAC APPLICATION DRAINAGE HERITAGE INFILL El DECK � DEMOLITION COUNCIL APP WATER & SEWERAGE HERITAGE DEMO "CHANGE OF USE SIGN FSUBDIVISION OTHER OTHER []MINIMU M STANDARDS OTHER OTHER Construct a new facility to replace the existing on the adjoining property. Existing operations of . ...... .. . . . and limited will be relocated to the new facility and the existing retail, packaging processing F,711 consent to the City of Saint John sending to me commercial electronic messages, from time to time, regarding City initiatives and incentives. -- . ..... ...... --.1-- General Collection Statement This it is being collected in order for the City of Saint John to deliver an existing program = service: the collection is tanned to that vvInch is necessae), to deliver the program service. Unless required to do so by law, the City of Saint John svill not share your personal information with any third party without your express consent. The legal authority for collecting this information is to be found in the Municipalities /let and the Right to Information and protection of Privacy Att. For further information or questions regarding the collection of personal information, please contact the Access & Privacy Of CityHall Building 8ih Floor - 15 Market Square Saint John, N13 E2L JE8 c,)ininoi,it,lerka)ianitit)hn,t'a (506) 658-2862 Ift C* � soft PM 1, the undersigned, hereby apply for the permit(s) or approval(s), indicated above for the work described on plans, submissions and forms herewith submitted. This application includes all relevant documentation necessary for the applied for permit(s) or approval(s). I agree to comply with the plans, specifications and further agree to comply with all relevant City By-laws and conditions imposed. Richard Thompson Appli;,ar"5'f I me Z 1:,' Applicant Signature"` (32, Date lial-YA D V "' h 68k Sh GROWTH & COMMUNITY DEVELOPMENT SERVICES CITY OF SAINT JOHN TYPE OF APPLICATION Land for Public Purposes Non -Conforming Use Satisfactory Servicing Release Service Fee: $200 Service Fee: $200 Service Fee: $300 F--1 38Amendment Service Fee: $2,500 | | Section F]ZoningBy-|mwAmendment [�l Zoning By-law Amendment wbh SemioeFee: so.nun �N1unkjpo|pkanAm�ndmen --- ' Service Fee: un.nno DETAILED DESCRIPTION OF APPLICATION Where applicable, indicate the changes to existing Section 39 conditions, zoning, or Municipal Plan designation being requested. Attach site plans, building elevations, floor plans, and other documentation to fully describe the application. The submission of a preliminary proposal and a Pre -Application Meeting is encouraged prior to seeking approval. Please contact the One -Stop Development Shop at (506) 658-2911 for further information. The current Misty Harbour facility is on a property zoned General Commercial. The admoining property where the new facility is proposed to be built, is R2 Residential. We are requesting the zoning be changed to a Special Zone in L warehouse area. Most seafood products which received at the plant are dressed prior to arrival so on site processing is minimal. After packaging, products are sold through the onsite retail outlet or shipped to wholes le Clients. ENCUMBRANCES Describe any easements, restrictive covenants, and other encumbrances affecting the land. AUTHORIZATIOKI As of the date of this application, 1, the undersigned, am the registered owner of the land described in this application or the authorized agent thereof, and I have examined the contents of this application and hereby certify that the information submitted with the application is correct insofar as I have knowledge of these facts, and I hereby authorize the applicant to represent this matter and to provide any -a ditional information that will be necessary for this application, ,Keg igter4dbw'ner or Authorized A�) p Additional Registered Owner Date Date The information contained in this application and any documentation, including plans, drawings, reports, and studies, provided in support of this application will become part of the public record. Council Application Form 20/01/2017 BY-LAW NUMBER C.P. 106- A LAW TO AMEND THE MUNICIPAL PLAN BY-LAW Be it enacted by The City of Saint John in Common Council convened, as follows: ARRETE N° C.P. 106- ARRETE MODIFIANT L'ARRETE RELATIF AU PLAN MUNICIPAL Lors d'une reunion du conseil communal, The City of Saint John a edicte cc qui suit : The Municipal Plan By-law of The L'arrete concernant le plan City of Saint John enacted on the 30th day municipal de The City of Saint John of January, A.D. 2012 is amended by: decrete le 30 janvier 2012 est modifie par : 1 Amending Schedule A — City Structure, by redesignating a parcel of land with an area of approximately 1.61 hectares, located at 2304-2310 Ocean Westway, also identified as PID No. 55007074 and a portion of PID No. 00465856, from Stable Area to Employment Area classification; 2 Amending Schedule B — Future Land Use, by redesignating a parcel of land with an area of approximately 6258 square metres located at 2304-2310 Ocean Westway, also identified as PID 55007074 and a portion of PID No. 00465856 from Stable Residential to Stable Commercial classification; 3 Amending Schedule B — Future Land Use, by redesignating a parcel of land with an area of approximately 9879 square metres located at 2310 Ocean Westway, also identified as a portion of PID 00465856, from Rural Resource to Stable Commercial classification. - all as shown on the plans attached hereto and forming part of this by-law. IN WITNESS WHEREOF The City of Saint John has caused the Corporate Common Seal of the said City to be affixed to this by-law the * day of *, A.D. 2020 and signed by: Mayor 1 In modification de 1'annexe A — Structure de In municipalite, afin de faire passer In designation d'une parcelle de terrain d'une superficie d'environ 1.61 hectares, situee an 2304-2310, voie Ouest Ocean, et portant le NID 55007074 et une partie de NID 00465856, afin de In faire passer de secteur stable a secteur de d'emploi; 2 In modification de 1'annexe B — Utilisation future des sols, afin de faire passer In designation d'une parcelle de terrain d'une superficie d'environ 6258 metres carres, situee an 2304-2310, voie Ouest Ocean, et portant le NID 55007074 et une partie de NID 00465856 afin de In faire passer de secteur residentiel stable a secteur commercial stable; 3 In modification de 1'annexe B — Utilisation future des sols, afin de faire passer In designation d'une parcelle de terrain d'une superficie d'environ 9879 metres carres, situee an 2310, voie Ouest Ocean, et etant une partie du NID 00465856, afin de In faire passer de secteur de ressources rurales a secteur commercial stable. - toutes les modifications sont indiquees sur les plans ci-joints et font partie du present arrete. EN FOI DE QUOI, The City of Saint John a fait apposer son sceau communal sur le present arrete le 2020, avec les signatures suivantes : Common Clerk/Greffier communal 269 First Reading - Premiere lecture Second Reading - Deuxieme lecture Third Reading - Troisieme lecture 270 COMMON COUNCIL REPORT M&C No. \Mlic, 2020i 811) Report Date July 14, 2020 Meeting Date July 20, 2020 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Economic and Community Recovery —Street Events OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager David Dobbelsteyn/ Kate Wilcott Jacqueline Hamilton John Collin RECOMMENDATION 1. RESOLVED that Common Council give first and second reading of A BY-LAW TO AMEND A BY-LAW RESPECTING THE TRAFFIC ON STREETS IN THE CITY OF SAINTJOHN, BY-LAW NUMBER MV-10.1, AND AMENDMENTS THERETO as attached to M&C No. 2020-185; and 2. Establish a Special Events Task Force in order to facilitate community initiated street events. EXECUTIVE SUMMARY At a meeting on June 22n6, Council directed staff to return with a new process for community initiated street events. Staff have met with local event organizers, every City department, Saint John Police, Saint John Transit, and consulted with other municipalities. The enabling legislation attached to this report will streamline event applications, establish a Special Events Task Force which will be the City's single point of contact for event organizers, provide new authority to the City Manager to expedite event applications, and significantly reduce event application timelines which often are between 90 and 180 days. REPORT Staff began meeting with Event Organizers in the winter of 2019 about simplifying and streamlining the existing process for hosting street events. The process for approving a street event was taking in excess of 180 days for large events such as 271 -2- Moonlight Bazaar. Staff also began internal consultations about streamlining the process, and started consulting with other municipalities about best practices. This specific project was on the work plan for later in 2020, however it became quickly prioritized through the Economic and Community Recovery initiatives by Growth Committee and Common Council in June. The attached By -Law amendment is backbone legislation that will enable the following: 1. Remove the current 90 day application requirement for all street event applications. 2. Establish an internal Special Events Task Force (SETF) — this is a best practice across Canada. a. The SETF will be made up of staff from each department that will meet regularly to evaluate applications for street events. b. The SETF will be the single point of contact for all event applicants, c. An event organizer will be invited to present to the SETF all at once, if needed. d. The SETF can reject events that are untenable, or can request that an applicant make changes to their application. e. The SETF will have authority to create and edit application forms and guides for event planners, without needing to go back to Council for every change. This will allow for greater flexibility with event organizers as we refine the process over the next year. f. The SETF will recommend to the City Manager if an event should be approved for a permit. g. The SETF will make a unanimous recommendation to the City Manager with regards to which events should be issued a permit 3. Provide new Authority to the City Manager or his delegate to: a. Issue a permit for events on streets upon the recommendation of the SETF, and without having to go to Council for approval b. Permit the applicant to serve alcohol in licensed areas — with proper provincial permits. This provision alone can shorten an application turnaround by two weeks. c. Issue a permit without a unanimous recommendation from the SETF while taking into account the City's ability to address the concerns raised by the objecting member(s) of the SETF. NO -3- 4. Permit neighbourhoods to host play streets or block parties 5. Provide a simplified appeal process if an event is turned down by the SETF or the City Manager 6. Allow the City to start charging fees for events, or to provide municipal goods and services and charge organizers for their use. Cost Recovery The City is undertaking a Continuous Improvement Process that will review cost recovery for municipal services, including services provided in support of events. Once this By -Law is approved, staff will start to meet with event organizers and departments to determine whether or not the City should charge fees for event applications, what municipal services should be partial cost recovery if provided to an event, and what should be full cost recovery. Once those are assessed, staff will return to Council at a later date with a schedule of fees to be attached to this by-law amendment. An additional avenue the City is exploring is the provision of municipal services as mediated through our existing community grants and arts grants processes. In practice this might mean, that the City in lieu of providing direct financial support to an organization, could offer in -kind support for events that the City has a vested interest in supporting. These contributions would be tracked, and organizations would be expected to provide recognition of municipal support. Operationalizing the process Growth and Community Services will be the coordinating department for the SETF, and will be the main point of contact for dealing with event inquiries, applications, and issuing permits for street events. The Chair of the SETF will be a staff person in that same department. The SETF has already been meeting for a number of weeks, and has consulted widely on the process, as well as the by-law amendment. Council directed staff to implement an open streets program for the summer as an Economic and Community Recovery Initiative, effectively pedestrianizing uptown streets. In a process that typically would take more than 90 days, the SETF has been coordinating the approvals for these open streets in less than 3 business PAFW -4- days. While it is unlikely that we will be able to process all applications that quickly, it demonstrates that the process works while still addressing all the security and operational concerns from various service areas. Next Steps Staff are currently monitoring the process, and will continue to improve it in the coming months. Staff have created a new application form, and it will be released along with a new event planning guide for event organizers when the new City website is launched. In the interim staff are still working with event organizers as we transition to the new process. Staff will be returning with 3r6 reading on August 41". The attached by-law amendment only provides the SETF jurisdiction for street events. As a result, at that same meeting staff will also present Council with a new policy on the Special Events Task Force that will grant the SETF jurisdiction over special events on City property, and will enable the City to charge fees, or cost recovery for events on public property, or on private property in some instances. PREVIOUS RESOLUTION June 22n6 Council Resolution Direct the City Manager to present Common Council with by-law amendments to introduce a new community initiated application form and process for street events, including elimination of the 90-day requirement as further detailed in M&C No. 2020-167 on the 6th of July, 2020; STRATEGIC ALIGNMENT Vibrant City Invest in arts, culture and recreation experiences that create a sense of community pride. Customer -Focused Services Explore service improvements through innovation, technology and developing partnerships with other organizations. 0 Define service levels for all City services. Innovation and Improvement Advance a culture of continuous improvement to drive operational efficiencies. fPXLI -5- Leverage opportunities to generate alternative revenue sources. SERVICEAND FINANCIAL OUTCOMES This new process will significantly reduce the turnaround time for large third party street events. This in turn will likely lead to more organizations wanting to host large events. These events are major drivers for tourism, our local economy, and creating a vibrant City. There are minimal costs to the City to implement this process. When the City begins to implement fees and cost recovery in the future, the City will realize additional revenues each year. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS This new process was developed with the support all City Departments, Saint John Police, Saint John Transit, and Saint John Parking Commission. The City consulted widely with local event coordinators, the Saint John Community Arts Board, and a number of Canadian municipalities. This new process borrows heavily from best practices in Halifax. Legal assisted with the drafting of the by-law. ATTACHMENTS -BY-LAW RESPECTING THE TRAFFIC ON STREETS IN THE CITY OF SAINT JOHN -Schedule P -Annexe P 18XN91 A BY-LAW TO AMEND A BY-LAW RESPECTING THE TRAFFIC ON STREETS IN THE CITY OF SAINT JOHN, BY-LAW NUMBER MV-10.1, AND AMENDMENTS THERETO ARRETE MODIFIANT L'ARRETE RELATIF A LA CIRCULATION DANS LES RUES DE THE CITY OF SAINT JOHN, ARRETE NUMERO MV-10.1, ET MODIFICATIONS AFFERENTES Be it enacted by the Common Council of Lors d'une reunion du conseil municipal, The City of Saint John as follows: The City of Saint John a decrete ce qui suit : A By-law of The City of Saint John entitled "A By-law respecting the Traffic On Streets in The City of Saint John, By-law Number MV-10.1" and amendments thereto, enacted on the 7fh day of October, A.D. 2019, is hereby amended as follows: 1. Subsection 2(2) is amended by repealing the definition of "street event". Par les presentes, 1' arrete de The City of Saint John intitule « Arrete relatif a la circulation dans les rues de The City of Saint John, Arrete numero MV-10.1 » et modifications afferentes, decrete le 7e jour d'octobre 2019, est modifie comme suit: 1. Le paragraphe 2(2) est modifie par abrogation de la definition de « evenement sur rue ». 2. Subsection 4(4) is repealed and replaced 2. Le paragraphe 4(4) est abroge et remplace with the following: par ce qui suit : "4(4) the Chief of Police is authorized in connection with a street event permit issued under Schedule "P" to this By-law to re-route traffic on any street in the City." 3. Schedule "P" - Regulation Respecting Processions and Assemblages on Public Streets is repealed and replaced with the following: See new Schedule "P" attached IN WITNESS WHEREOF The City of Saint John has caused the Corporate Common Seal of the said City to be affixed to this by-law the day of , A.D., 2020 signed by: 4(4) le chef de police est autorise, aux fins d'un permis d'evenement sur rue delivre en vertu de I'annexe « P » du present arrete, de detourner la circulation sur toute rue situee dans la municipalite. » 3. L' annexe « P » - Reglement concernant les corteges et rassemblements sur les rues publiques est abrogee et remplace par ce qui suit : Voir la nouvelle Annexe « P » ci jointe EN FOI DE QUOI, The City of Saint John a fait apposer son sceau municipal sur le present arrete le 2020, avec les signatures suivantes Mayor / maire PAN-1 First Reading Second Reading Third Reading Common Clerk / greffier communal Premiere lecture Deuxieme lecture Troisieme lecture PxrA -1- ANNEXE « P » REGLEMENT CONCERNANT LES CORTEGES ET RASSEMBLEMENTS SUR LES RUES PUBLIQUES 1. Champ d'application Cc reglement s'applique chaque fois qu'une demande est revue pour un evenement qui dolt se derouler, en tout ou en partie, dans les rues de la municipalite (un « evenement sur rue )>). Cc reglement n'a aucune incidence sur le statut public des rues ou des evenements pourraient se derouler. Cc reglement ne s'applique pas aux fermetures permanentes de rues, aux fermetures temporaires tors de travaux routiers, ou aux fermetures de rues effectuees sous 1'autorite du chef du Service d'incendie ou du chef de police lors de situations d'urgence ou sous 1'autorite de l'ingenieur-chef municipal. 2. Objectif Chaque annee, de nombreux evenements sur rue se tiennent dans les rues de la municipalite. Ces evenements sur rue, souvent organises par des organismes communautaires et des benevoles, enrichissent considerablement notre vie culturelle et nos collectivites. La municipalite reconnait que les evenements sur rue jouent un role important dans la qualite de vie de la municipalite. Les evenements sur rue augmentent le tourisme, enrichissent la culture, les loisirs et 1'education, tout en procurant des retombees economiques aux entreprises de la municipalite. Cc reglement a pour but de fournir aux demandeurs de 1'information sur cc qui est requis pour pouvoir tenir un evenement sur rue et sur la deviation temporaire de la circulation routiere, qui lui est associee. 3. Definitions acces raisonnable aux vehicules, pietons et fauteuils roulants » signifie un acces aux vehicules, pietons ou fauteuils roulants pour se rendre aux proprietes ou quitter les proprietes qui sont touchees par 1'evenement sur rue. Cet acces dolt etre accorde aux proprietaires, residents et invites des dites proprietes dans un Mai de trente (30) minutes suivant leer demande d'acces, ou immediatement en cas de menace imminente a la sante ou a la propriete; demande pour la tenue d'un evenement sur rue » designe une demande pour un evenement sur rue deposee aupres du groupe de travail sur les evenements speciaux (GTES); demandeur » designe l'organisateur d'un evenement sur rue ou une personne qui depose une demande all nom de l'organisateur conformement all present reglement; evenement sur rue » designe des corteges ou des rassemblements temporaires, et inclut, mais sans s'y limiter, des defiles, des marathons, des triathlons, des courses sur rue, des defiles publics, un passage continu de personnes, objets ou evenements, des fetes de quartier, des rues destinees all divertissement et des marches sur rue. La deviation de la circulation routiere dans le cadre d'evenements sur rue est temporaire, en cc sens qu'elle n'est que pour une duree inferieure a 48 heures; PAN-13 -2- fete de quartier » Usigne une fete organs&e par des voisins du quartier sur la rue devant leer propri&t& et a laquelle la grande communaut& n'est pas invitee; permis d'evenement sur rue » designe un permis d&livr& par le directeur municipal pour un &v&nement sur rue; rue destinee an divertissement» designe une rue you&e uniquement a la circulation pi&tonni&re jusqu'a un maximum de douze (12) heures afin de rendre possible la tenue d'activit&s r&cr&atives; et service » designe un service administratif de la municipalit& et inclut le SPSJ. 4. Groupe de travail sur les evenements speciaux Le GTES est &tabli par les pr&sentes pour les fins suivantes : a) examiner les evenements sur rue proposes, &valuer les risques potentiels pour la municipalit& et formuler des recommandations all directeur municipal et, all besom, all conseil communal, quant a la faisabilit& et all potentiel de r&ussite des evenements sur rue; b) agir en tant qu'organe consultatif aupr&s des demandeurs actuels et potentiels concernant les biens et services, les propri&t&s, la logistique, les arret&s municipaux et les r&glements applicables de la municipalit&; c) fournir aux demandeurs un m&canisme pour obtenir de 1'information financi&re exacte concernant les biens et services de la municipalit&; et d) agir en tant que comit& d'experts sur 1'61aboration d'un plan strat&gique a long terme et des politiques sur les &dements sur rue dans la municipalit&. 5. Composition du GTES a) Le GTES comprend un minimum de six (6) employ&s de la municipalit&. Chaque employ& dolt etre membre des services suivants et etre nomm& par le directeur du service correspondant : • Service de la Croissance et du D&veloppement communautaire, • S&curit& publique et Incendies, • Transports et Travaux publics, • Services publics et Infrastructures, • Finances, • SPSJ. b) Un directeur de service peut nommer all GTES des employ&s de la municipalit& suppl&mentaires qui d&tiennent une expertise pertmente dans un secteur de service touch& par un &venement sur rue. PIM61 -3- c) Le directeur municipal pent exiger qu'un repr&sentant d'une autre municipalit&, d'un minist&re provincial on federal, d'une agence, d'un comit& on d'une commission soit nomm& au cas par cas. 6. President du GTES Le directeur municipal nomme le president du GTES, et le president, ou son d&1&gu& : a) planifie les reunions du GTES au besoin; b) organise le soutien administratif au besoin; c) invite un demandeur, si n&cessaire, a venir faire une presentation lors d'une reunion du GTES, si necessaire, le plus tot possible; d) s'assure que les demandes sont trait&es de mani&re acc&1&r&e si possible; e) planifie les reunions ult&rieures du GTES avec le demandeur afin de r&soudre tout probl&me logistique non r&gl& et de r&pondre aux preoccupations particuli&res de n'importe quel service; f) s'assure que tout probleme lie a une demande pour la tenue d'un &v&nement sur rue est transmis au haut responsable du service concern&, si necessaire; g) s'assure que tout devis pour les couts associ&s a la fourniture de biens et s&vices de la municipalit& est examin& et approuv& par &crit par le demandeur avant la tenue de 1'6v&nement sur rue; et h) prend les mesures n&cessaires pour que le demandeur re�oive une facture pour les biens et services fournis par la municipalit&, au plus tard trente (30) jours apr&s la tenue de 1'6v&nement sur rue. 7. Responsabilites du GTES Le GTES: a) examine chaque demande pour la tenue d'un &v&nement sur rue du point de vue de chaque service respectif et &value si une demande pour la tenue d'un &v&nement sur rue est conforme aux exigences pr&vues dans le pr&sent r&glement; b) rejette ou ordonne a un demandeur de modifier une demande pour la tenue d'un &v&nement sur rue incomplete ou qui ne r&pond pas aux conditions pr&vues dans le pr&sent reglement; c) rgette une demande pour la tenue d'un &v&nement sur rue qui contribue a la promotion d'un discours haineux on qui pourrait raisonnablement etre consid&r& comme causant un pr&judice &conomique, physique ou un dommage social a la communaut&; W-1191 d) s'assure que les devis pour les biens et services de la municipalite sont fournis par chaque service touch& par un evenement sur rue au plus tard quinze (15) jours suivant la reunion du GTES avec le demandeur; e) s'assure que tons les plans, permis, cartes et autres documents pertments sont envoyes an demandeur sept (7) jours ouvrables avant la tenue de 1'ev&nement sur rue; fl aide le demandeur a comprendre 1'applicabilite des arretes municipaux et de la legislation provinciale aux evenements sur rue et de son obligation de s'y conformer; et g) comptabilise tous les couts associ&s aux evenements sur rue pour les services concerns. 8. Autorite a) Le directeur municipal a 1'autorite de delivrer un permis d'&v&nement sur rue. b) Sous reserve du paragraphe c), le GTES pr&sente une recommandation unanime au directeur municipal d'approuver une demande pour la tenue d'un evenement sur rue et de delivrer le permis d'&v&nement sur rue qui lui est associ&. c) Si le GTES est incapable de presenter une recommandation unamme pour 1'approbation d'une demande pour la tenue d'un evenement sur rue, le directeur municipal decide s'il approuvera la demande en prenant en consideration les capacit&s de la municipalite de r&pondre aux preoccupations soulevees par le membre on les membres du GTES qui s'y opposent. d) Si une demande pour la tenue d'un evenement sur rue est rget&e, le demandeur a le droit de presenter un appel &crit an directeur municipal. Si 1'appel an directeur municipal est rget&, le demandeur peut faire appel devant le conseil communal pour decision definitive. e) Le directeur municipal peut, en tout temps, choisir de renvoyer au conseil communal une demande pour la tenue d'un evenement sur rue pour deliberations et decision definitive. fl Le GTES a 1'autorite de delivrer et de mettre a jour les formulaires de demande pour la tenue d'un evenement sur rue, les guides et toute documentation pertinente tant et aussi longtemps qu'ils respectent les exigences &tablies dans cc reglement. 9. Conditions generales a) Les evenements sur rue seront consid&r&s sur le fond en cc qui a trait aux conditions &nonc&es dans le present reglement; et selon le principe du premier arrive, premier servi. Nonobstant ceci, des demandes pour la tenue d'Mnements sur rue subs&quentes, pour le meme endroit ou pour des endroits situ&s a proximit& et/ou pour la meme joum&e et la meme heure seront aussi &valu&es sur la base de preoccupations qui pourraient etre soulevees par 1'effet cumulatif de plusieurs evenements sur rue on par la disponibilit& des ressources municipales. W-15I -5- b) La priorit& sera accord&e aux &v&nements sur rue qui sont orient&s vers la collectivit&; b&n&fiques pour le centre-ville, pour des quartiers en particulier ou pour la collectivite dans son ensemble, et qui font la promotion de la municipalit& on de 1'endroit ou 1'6v&nement a lieu en tant que lieu de rassemblement. c) Nonobstant le fait que 1'approbation de la tenue d'un &v&nement sur rue puisse permettre la deviation temporaire de la circulation routi&re ou conf&rer un acc&s restreint a des lieux publics, un certain niveau d'acc&s demeure n&cessaire. Une vole d'au moins quatre metres et demi (4,5) et pas plus de six (6) metres, r&serv&e all service d'incendie, demeure d&gag&e afin de permettre 1'acc6s aux v&hicules d'urgence. Des dispositions sont aussi prises par le demandeur pour permettre un acces raisonnable aux vehicules, pi&tons et fauteuils roulants. d) Conform&ment a la Loi sur les vehicules k moteur, les b&n&voles ne sont pas autoris&s a diriger la circulation. Les benevoles peuvent toutefois guider les participants et diriger 1'6quipement mobile, mais seulement lorsque cela est jug& necessaire. e) La deviation de la circulation routi&re et les restrictions d'acc&s par les commerces et les r&sidents en raison d'un evenement sur rue sont identifi&s et pris en compte par le demandeur. f) Les impacts et pr&occupations Us a la circulation des v&hicules, aux activit&s de construction, a la disponibilit& de protection ad&quate en cas d'incendie, ainsi qu'au nettoyage des rues, sont identifi&s et pris en compte par le demandeur. g) Lorsque la demande pour la tenue d'un evenement sur rue requiert un plan de gestion des d&chets, le demandeur pr&volt comment les ordures, les matieres organiques et les matieres recyclables seront tri&es et g&r&es. Cette responsabilit& repose uniquement sur le demandeur qui dolt retenir, a ses frais, les services d'un entrepreneur qui fournira des bacs a ordures, a matieres organiques et a matieres recyclables, dument identifi&s ainsi que le service de collecte desdits bacs. h) La deviation de la circulation routi&re pour la tenue d'&v&nements sur rue, dans la mesure du possible, d&bute et se termine a une intersection. i) Le demandeur se conforme a toute la 16gislation et tous les r&glements f&d&raux et provinciaux, ainsi qu'aux arret&s municipaux. Le demandeur est tenu, sur demande, de presenter son permis d'&v&nement sur rue. j) La fermeture on la deviation de parcours du Saint John Transit n'a pas lieu sans une consultation directe entre le demandeur et le GTES. k) Plusieurs &v&nements incluent une forme de vente quelconque. En pareils cas, le demandeur s'assure que chaque vendeur d&tient les permis et licences requis. Les vendeurs de nourriture sont tons assuiettis a 1'approbation et a l'obtention de licences de la province du Nouveau -Brunswick. 1) Le demandeur est present pour toute la dur&e de 1'&v6nement sur rue. WIN m) Le demandeur s'assure que 1'6v6nement sur rue commence et se termine a 1'heure pr&vue. 10. Fourniture des biens et services de la municipalite a) Si un demandeur a besoin de barricades, de sacs de sable, de bacs de d&chets solides, de tables, de pylones ou autres biens et services, tels la collecte des dechets solides, le nettoyage des rues, la collecte et la livraison, du travail general, etc. de la municipalit&, le demandeur peut en faire la demande dans la demande pour la tenue d'un &v&nement sur rue. b) Les biens et services de la municipalite sont offerts selon le principe du premier arrive, premier servi, en fonction de leer disponibilit&. c) Si le GTES determine qu'un evenement sur rue requiert les services du SPSJ, les exigences sp&cifiques seront examinees avec le demandeur et un plan op&rationnel sera &labor& et remis all demandeur. d) La responsabilit& de tous les couts associ&s aux services offerts par le SPSJ repose uniquement sur le demandeur et ces couts doivent etre n&goci&s pr&alablement a la tenue de 1'6v6nement sur rue. e) Le demandeur dolt confirmer si un permis de construction est requis pour toute &rection de tente, gradin, scene ou toute autre structure en communiquant avec le Guichet unique pour 1'am6nagement. Si un permis de construction est requis, it dolt etre obtenu avant que le permis d'&v&nement sur rue soft d&livr&. 11. Bruit Volume (intensit& sonore) ainsi que la nature et les heures du bruit g&n&r& par 1'6v6nement sur rue et par les participants a 1'6v6nement sur rue sont raisonnables dans les circonstances. 12. Boissons alcoolisees La consommation de boissons alcoolis&es dans des lieux publics est interdite, toutefois, un demandeur pent deposer une demande d'exemption. Sur recommandation &crite du GTES, le directeur municipal a 1'autorite de permettre la vente et la consommation de boissons alcoolis&es lors d'un &v&nement sur rue, a condition que le demandeur r&ponde a tons les cnt&res specifies dans la demande pour la tenue d'un &v&nement sur rue et qu'il obtienne &galement la ou les licences n&cessaires d&livr&es par la province du Nouveau -Brunswick. 13. Plan de gestion des urgences (<< PGU ))) a) Si le GTES le requiert, le demandeur dolt joindre un PGU a la demande pour la tenue d'un &v&nement sur rue. b) Le GTES dolt approuver par &cnt le PGU avant qu'un permis d'&v&nement sur rue soit d&livr&. WIN -7- c) Les preoccupations liees a la securite publique seront evaluees en fonction de menaces ou de preoccupations connues. d) Dans les cas ou un PGU est requis et lorsque 1'evenement sur rue propose requiert la creation d'une enceinte par 1'erection de clotures ou de barricades ou si certaines entrees all site doivent titre bloquees, it se peut qu'une personne doive demeurer en tout temps aux entrees bloquees. Cette personne designee dolt titre en mesure de deplacer rapidement les clotures, barricades ou tout autre equipement afin de permettre aux vehicules d'urgence de circuler. e) Un acces raisonnable aux vehicules, pietons et fauteuils roulants est offert lors de tout evenement sur rue qui requiert un PGU 14. Fetes de quartier et rues destinees an divertissement a) La municipalite entend alder les residents a celebrer dans leer quartier en leer permettant d'organiser des fetes de quartier ou des rues destinees all divertissement pour une periode predeterminee. Les fetes de quartier et les rues destinees all divertissement sont prevues pour les quartiers residentiels ou la circulation est faible afin d'offrir un lieu ou les voisins peuvent se rassembler en toute securite et profiter d'activites recreatives partagees. b) L'approbation pour qu'une rue soit 1'h6te d'une fete de quartier ou qu'elle soft designee rue destinee all divertissement peut titre donnee que jusqu'a un maximum de quatre (4) fois par annee. c) Une demande pour la tenue d'un evenement sur rue pour qu'une rue soft destinee all divertissement ou pour une fete de quartier dolt titre remplie par un resident actuel de la rue concernee. d) Pour qu'un permis d'evenement sur rue soft delivre, le demandeur dolt obtenir 1'appui par ecrit de 80 % des residents de la rue concernee. e) Nonobstant toute disposition de cc reglement, les boissons alcoolisees ne sont pas permises sur la rue durant une fete de quartier ou sur une rue destinee all divertissement. Les boissons alcoolisees ne peuvent titre consommees par les residents et les invites que sur leer propriete. f) Une demande pour la tenue d'un evenement sur rue pour une fete de quartier ou pour une rue destinee all divertissement a un formulaire simplifie. Si un demandeur entend presenter une demande pour une fete de quartier ou pour une rue destinee all divertissement ou la grande communaute est invitee, le demandeur utilise la demande pour la tenue d'un evenement sur rue standard. 15. Assurance a) Un individu ou un groupe, autre que les services, agences, comites, commissions et agents de la municipalite, qui depose une demande de permis d'evenement sur rue, a l'obligation de prendre une assurance responsabilite civile pour la tenue de 1'evenement sur rue. b) Que 1'evenement sur rue se deroule ou passe, en totalite ou en partie, sur une propriete publique ou sur une propriete de la municipalite, it se peut que le demandeur soit tenu d'obtenir et de maintenir en vigueur, pendant toute la duree de 1'evenement, une police d'assurance responsabilite civile des entreprises avec une limite d'au moins 2 000 000 $ designant The City of Saint John comme « assure additionnel ». c) Dans les cas ou des boissons alcoolisees seront servies ou vendues lors d'un evenement sur rue, le demandeur obtiendra et maintiendra en vigueur, pendant toute la duree de 1'evenement, une police d'assurance responsabilite civile des entreprises avec une limite d'au moins 5 000 000 $, designant The City of Saint John comme « assure additionnel ». De plus, une assurance responsabilite civile en matiere d'alcool devrait etre obtenue. d) Une preuve de toute couverture d'assurance requise est acheminee au GTES au moins dix (10) jours ouvrables precedant la tenue de 1'evenement sur rue. 16. Dommages a) Le demandeur est responsable pour tout dommage cause aux rues, terrains et infrastructures connexes de la municipalite par suite d'un evenement sur rue et tel que determine par le personnel de la municipalite. b) Le demandeur fait preuve de prudence lors de 1'evenement sur rue afin d'assurer que personne n'est blesse, qu'aucun bien ou propriete n'est endommage ou perdu et qu'aucun droit n'est enfreint. c) Le demandeur est entierement responsable et garantit la municipalite, le SPSJ et ses officiers, employes et agents, les defend et les degage de toute responsabilite a 1'egard des pertes eprouvees, reclamations, dommages et demandes decoulant de ou de quelque fa�on que cc soit accessoirement lie a ou directement lie a l'utilisation de la rue, incluant sans s'y limiter la mort, des blessures causees a des personnes et toute perte de ou tout dommage cause a des biens materiels. 17. Permis d'evenement sur rue a) Un permis d'evenement sur rue inclut les modalites applicables a 1'evenement sur rue. b) Le permis sera presente, sur demande, lors de la tenue de 1'evenement sur rue. c) Des membres du SPSJ ou un agent charge de 1'execution des arretes peuvent, en tout temps, revoquer un permis d'evenement sur rue a la suite de la violation de toute modalite associee au permis d'evenement sur rue. 18. Avis public W-119'7 M A 1'exception d'un cotege funebre ou d'un evenement sur rue exempte par le GTES de se conformer a cette section, le demandeur : a) fournit un avis ecrit de 1'evenement sur rue a toutes les proprietes donnant sur la rue all moins quinze (15) jours ouvrables avant la tenue de 1'evenement sur rue. Ledit avis dolt etre passe en revue par le GTES avant sa distribution; b) fournit la preuve all GTES all moins dix (10) jours ouvrables avant la tenue de 1'evenement sur rue que 1'avis ecrit a ete distribue. Le defaut de fournir une telle preuve est un motif pour rq eter une demande pour la tenue d'un evenement sur rue; c) travaille de concert avec les representants des entreprises afin de minimiser les desagrements; et d) negocie un horaire avec les entreprises et residents concernes pour les livraisons essentielles. 19. Droits La municipalite per�oit des droits pour 1'administration de cc reglement ainsi que pour les biens et services fournis par la municipalite pour un evenement sur rue comme decrit dans 1'annexe « P-1 ». WIN -1- SCHEDULE "P" REGULATION RESPECTING PROCESSIONS AND ASSEMBLAGES ON PUBLIC STREETS 1. Scope This regulation applies whenever a request is received to facilitate an event occurring wholly or in part within the streets in the City (a "street event"). This regulation does not affect the public status of streets where events are sought to be held. This regulation does not apply to permanent closure of streets, temporary closure for road construction, or street closures made under the authority of the Fire Chief or the Chief of Police in emergency situations or under the authority of the Chief City Engineer. 2. Purpose Every year numerous street events are held throughout the City. These street events — often organized by community groups and volunteers — greatly enrich our cultural lives and our communities. The City recognizes street events as an important part of the City's quality of life. Street events enhance tourism, culture, recreation and education as well as providing an economic benefit to businesses in the City. This regulation is intended to provide applicants with information about what is required to obtain approval for street events and the associated temporary traffic rerouting. 3. Definitions "applicant" means the organizer of a street event or a person applying on behalf of the organizer in accordance with this regulation; "block party" means a party organized by local neighbours on the street in front of their properties and where the broader community is not invited; "department" means an administrative department of the City and includes the SJPF; "play street" means a street designated for pedestrian traffic only for up to a maximum of twelve (12) hours to facilitate recreational activities; "reasonable vehicular, pedestrian and wheelchair access" means vehicular, pedestrian or wheelchair access to and from the properties affected by the street event by owners, residents and guests of the said properties within thirty (30) minutes of their request for access, or, in case of imminent threat to health or property, immediately; and "street events" are temporary processions or assemblages and include, but are not limited to, parades, marathons, triathlons, road races, public processions, a continual passing by of people, objects or events; block parties, play streets and street markets. Traffic rerouting for street events is temporary, in that it is less than 48 hours in duration. W-11FA -2- "street event application" means an application submitted to the Special Event Task Force for a street event; and "street event permit" means a permit issued by the City Manager for a street event; 4. Special Events Task Force ("SETF") The SETF is hereby established for the following purposes: a) to review proposed street events, assess potential risks for the City and make recommendations to City Manager and, if required, to Common Council, on the feasibility and potential success of street events; b) to act as an advisory body to existing and potential applicants regarding City goods and services, property, logistics, applicable by-laws and regulations; c) to provide applicants with a mechanism for acquiring accurate financial information regarding City goods and services; and d) to act as an expert forum on the development of long-term strategic planning and policy regarding street events in the City. 5. Membership of the SETF a) The SETF shall consist of a minimum of six (6) City employees. Each employee must be a member of the following departments and appointed by the corresponding department Head: • Growth and Community Services, • Public Safety and Fire, • Transportation and Public Works, • Utilities and Infrastructure, • Finance, and • SJPF b) A department Head may appoint additional City employees to the SETF with relevant expertise in a service area impacted by a street event. c) The City Manager may require that a representative of another City, Provincial or Federal department, agency, board or commission be appointed on a case by case basis. 6. Chair of the SETF The City Manager shall appoint the Chair of the SETF and the Chair, or his delegate, shall: a) schedule meetings of the SETF as needed; b) arrange for administrative support as needed; N-11.1j -3- c) schedule the applicant to make a presentation at a SETF meeting, if required, at the earliest available date; d) ensure applications are expedited if possible; e) schedule subsequent SETF meetings with the applicant in order to resolve outstanding logistical issues and to address any department specific concerns; f) ensure any issues with a street event application are elevated to the senior manager of the relevant departments if required; g) ensure all quotes for costs associated with the provision of City goods and services are reviewed and approved in writing by the applicant prior to the street event; and h) arrange for the applicant to receive an invoice for City goods and services provided, no later than thirty (30) days after the street event. 7. Duties of the SETF The SETF shall: a) review each street event application from the perspective of each of the respective departments and assess whether or not a street event application complies with the requirements set forth in this regulation; b) reject or direct the applicant to amend a street event application that is incomplete or doesn't meet the conditions set forth in this regulation; c) reject a street event application that promotes hate speech or could reasonably be seen to cause economic, physical, or social harm to the community; d) ensure that quotes for City goods and services are provided by each department involved in a street event no later than fifteen (15) days following the SETF meeting with the applicant; e) ensure all approved plans, permits, maps and other relevant materials are sent to the applicant seven (7) business days prior to the street event; f) assist the applicant in understanding the applicability of City by-laws and Provincial laws to the street event and its obligation to comply therewith; and g) track all costs associated with street events for the corresponding departments. 8. Authority a) The City Manager has authority to issue a street event permit. W-116.1 b) Subject to paragraph c), the SETF shall make a unanimous recommendation to the City Manager to approve a street event application and issue the corresponding street event permit. c) If the SETF is unable to provide a unanimous recommendation for approval of a street event application, the City Manager shall decide whether or not to approve it while taking into account the City's ability to address the concerns raised by the objecting member(s) of the SETE d) If a street event application is rejected, the applicant has the right to submit a written appeal to the City Manager. In the event of an unsuccessful appeal to the City Manager, the applicant may appeal to Common Council for final determination. e) At all times, the City Manager may elect to refer a street event application to Common Council for deliberation and final determination. f) The SETF has the authority to issue and update street event application forms, guides, and relevant documentation as long as they are consistent with the requirements of this regulation. 9. General Conditions a) Street events will be considered on their merits with respect to the within conditions; and on a first come, first served basis. Notwithstanding this, subsequent street event requests for same or proximate locations and/or same day/time will also consider concerns arising from the possible compound effect of multiple street events, or available municipal resources. b) Priority will be given to street events which are community -oriented (beneficial to the Uptown, specific neighbourhoods, or the community as a whole) and promote the City or subject area as a gathering place. c) Notwithstanding that approval of a street event may allow for temporary rerouting of traffic or restricted access to public areas, a degree of access remains necessary. A fire lane of not less than four and a half (4.5) metres and not more than six (6) metres shall be left clear to allow access for emergency vehicles. Provisions shall also be made by the applicant for Reasonable Vehicular, Pedestrian and Wheelchair Access. d) Pursuant to the Motor Vehicle Act, volunteers are not authorized to direct traffic. Volunteers may however direct participants and moving equipment, but only when deemed necessary. e) Traffic rerouting, and limits to access by businesses and residents as a result of a street event shall be identified and addressed by the applicant. f) Impacts and concerns respecting vehicle flow, construction activity, availability of adequate fire protection, and street cleaning shall be identified and addressed by the applicant. P4%I97 -5- g) Where the street event application requires a waste management plan, the applicant shall address how refuse, organic material and recyclables will be separated and managed. It is the sole responsibility of the applicant to secure a contractor to supply properly signed containers for refuse, organic material and recyclables; and collection services, at the cost of the applicant. h) Traffic rerouting for street events shall begin and end at street intersections wherever practical. i) The applicant shall comply with all Federal and Provincial legislation and regulations, and City by-laws. The applicant is required to show its street event permit upon request. j) The closure or rerouting of Transit routes shall not occur without direct consultation between the applicant and the SETE k) Many events have some form of vending. In any such case, the applicant shall ensure that each individual vendor has the proper permits and licenses. All food vendors are subject to approval and licensing by the Province of New Brunswick. 1) The applicant shall be present at the street event at all times. m) The applicant shall ensure that the street event starts and ends on time. 10. Provision of City Goods and Services a) If an applicant requires barricades, sandbags, solid waste containers, tables, pylons, or other goods and services, such as solid waste collection, street cleaning, pick-up and delivery, general labour, etc. from the City, the applicant may request these goods and services in the street event application. b) City goods and services are to be provided on a first come -first served basis, and are subject to availability. c) If the SETF determines that a street event requires the services of the SJPF, the specific requirements will be reviewed with the applicant and an Operation Plan will be drafted and provided to the applicant. d) All costs for SJPF services are the sole responsibility of the applicant and must be negotiated in advance of the street event. e) The applicant is required to confirm if a building permit is required for any tent(s), bleacher(s), stage(s) or any other structure(s) by contacting One Stop Development Shop. If a Building Permit is required it must be obtained before a street event permit is issued. 11. Noise P40.2 Volume (loudness), nature and hours of noise created by the street event and by participants in the street event shall be reasonable in the circumstances. 12. Alcohol The consumption of alcohol in public places is prohibited; however, an applicant may apply for an exemption. Upon the written recommendation of the SETF, the City Manager has authority to grant permission for the sale and consumption of alcohol in a street event, provided that the applicant meets all the required criteria in the street event application and also obtains the necessary license(s) from the Province of New Brunswick. 13. Emergency Management Plan ("EMP") a) Applicants must attach an EMP to the street event application if required by the SETF. b) The EMP must be approved in writing by the SETF before a street event permit is issued. c) Public safety concerns will be assessed based on whether there are any known threats/concerns. d) In instances where an an EMP is required and where the proposed street event requires enclosing the site with fencing or barricades, or blocking some of the entrances to the site, a person may be required to stay at the blocked entrance(s) at all times. This designated person must be prepared to move the fencing, barricades or other equipment quickly to allow emergency vehicles through. e) Reasonable vehicular, pedestrian and wheelchair access shall be provided for all street events that require an EMP. 14. Block Parties and Play Streets a) The City intends to help residents celebrate in their neighbourhoods by allowing them to host block parties or play streets for a specified period of time. Block parties and play streets are intended for residential neighbourhoods with low traffic in order to provide a venue for neighbours to gather safely and enjoy shared recreational activities. b) A street may be only approved for a block parry or as a play street up to a maximum of four (4) times per year. c) A street event application for a play street or block parry must be completed by a current resident of the relevant street. d) In order for a street event permit to be issued, the applicant must obtain the written support of 80% of all residents of the relevant street. e) Notwithstanding any provision on this regulation, alcohol is not permitted on the street during a block parry or play street. Alcohol may only be consumed by residents and guests on their own property. NO-% -7- f) A street event application for a block parry or play street shall have a streamlined form. If an applicant intends to apply for a block parry or play street where the broader community is invited, the applicant shall use the standard street event application. 15. Insurance a) A person or group requesting a street event permit, except for a City department, agency, board, commission or agent, must carry third parry liability insurance for the street event. b) Whether part of the street event takes place on or passes over City owned property or public property, the applicant may have to obtain and maintain in full force a Commercial General Liability insurance policy with limits of not less than $2,000,000.00 naming The City of Saint John as an "Additional Insured". c) Where liquor will be served or sold at a street event, the applicant shall obtain and maintain in full force a Commercial General Liability insurance policy with limits of not less than $5,000,000.00 naming The City of Saint John as "Additional Insured"; and additional liquor liability insurance shall also be obtained. d) Evidence of all required insurance coverage(s) shall be forwarded to the SETF at least ten (10) business days before the street event. 16. Damage a) The applicant is responsible for all damage to City streets, land and associated infrastructure that occurs as a result of the street event and as determined by City staff. b) The applicant shall use due care in the permitted street event to ensure that no person is injured, no property is damaged, or lost and no rights are infringed. c) The applicant shall be solely responsible for, and shall indemnify and save harmless the City, the SJPF and its officers, employees and agents from and against, all losses, claims, liabilities and demands arising from or in any way incidental to or connected with the use of the street, including but not limited to the following: death, injury to persons, and/or any damage to or loss of property. 17. Street Event Permit a) A street event permit shall include the terms and conditions applicable to the street event. b) The street event permit shall be available upon request at the street event. c) Members of the SJPF or a by-law enforcement officer may revoke a street event permit at any time upon violation of any of the terms and conditions of the street event permit. 18. Public Notice P4%Ic3 Except for a funeral cortege or a street event expressly exempted from compliance with this section by the SETF, the applicant shall: a) provide written notice of the street event to all properties abutting the street at least fifteen (15) business days prior to the street event, such notice must be reviewed by the SETF prior to its circulation; b) provide proof to the SETF that the written notice was circulated at least ten (10) business days prior to the street event. Failure to provide proof is grounds for rejection of a street event application; c) work with business representatives to minimize inconvenience; and d) negotiate a schedule with affected residents and businesses for essential deliveries. 19. Fees The City shall collect fees for the administration of this regulation and goods or services provided by the City for a street event as described in Schedule "P-1". NOMI,1 9 ! tlV I I 9U X � I r zi O � 0 O o O N -� CD o O U N W o-i 0 i O I N E H N Vf LLI H LL M Ti li N LLI F- LL M N V--1 V--1 N r_ W > L Lm O O W to '� O > o .� tl) O O .� a� ' V F- 00 O o- F- > O r O V- a _ 0 +; O o W E toME 0 v Q LO W 4— O o 0 c L..00 Q � _ W �_ = m O LU MMMMMM L 4-M, O U. to o0 0 w N O O m L o .0 y, L a) CL N 0) 0 L CL O af Q a J uj O O s.. L L � CQ 0 0 0 0 E 0 L N N •� o '> Q V L CD CD•; CD L- G) O N i CL O V tCf �- s.. O CL O N Q O _O V > (CCCf W V Q W 0 G Collaborating to ensure the municipalities in Greater Saint John will prosper in the 2020s A new economic development model Prospectus Prepared for: City of Saint John Town of Quispamsis Town of Rothesay Town of Grand Bay -Westfield Town of Hampton Village of St. Martins Submitted by: Economic Development Advisory Council July 2020 P"0 01 Table of Contents Page 1. Introduction/Mandate.............................................................................................................................. 2 Summary of the proposed regional economic development model............................................................3 2. Why now?.................................................................................................................................................4 2.1 Saint John is at a critical juncture.......................................................................................................4 2.2 Reason for optimism...........................................................................................................................5 2.3 Why the Saint John CMA?...................................................................................................................6 2.4 The Covid-19 pandemic......................................................................................................................7 3. What will the new organization do?.........................................................................................................8 3.1 A new economic development direction for the Saint John CMA ......................................................8 3.2 The functions of the new economic development organization........................................................8 3.3 Why a consolidated economic development organization?............................................................11 3.4 Staffing the new organization...........................................................................................................12 4. Funding the new economic development model...................................................................................13 4.1 Fair and equitable funding................................................................................................................13 4.2 The proposed municipal contributions.............................................................................................14 4.3 Other sources of funding..................................................................................................................15 4.4 Putting municipal funding into context............................................................................................16 4.5 Growing the core municipal funding................................................................................................16 4.6 Spending the budget by function......................................................................................................16 4.7 The need for a multiyear funding commitment...............................................................................17 5. Governance and oversight......................................................................................................................18 5.1 Overriding governance principles.....................................................................................................18 5.2 Board and committee structure.......................................................................................................18 6. Transition to the new economic development model...........................................................................21 1 KON 1. Introduction/Mandate Background In the Spring 2019, the City of Saint John convened a group of business leaders and economic development stakeholders to advise the city on how to maximize the value of its investment in economic development (hereafter referred to as the Advisory Council). The City was concerned that despite spending a considerable amount on economic development each year, tax base growth has been anemic as has been organic growth in tax revenues. The city's goal is to bring annual tax base growth back to at least two percent per year. After considerable research and deliberations, the Advisory Council recommended a new way forward. The Advisory Council proposed a brand-new, innovative approach and mindset that aligns the key players in the ecosystem focused on economic growth. This new regionally funded model will have a budget and the scale to compete with the other larger urban centres across Atlantic Canada and beyond. The development of a new consolidated economic development model IS NOT about achieving cost efficiencies. The focus is GROWTH. This new economic development model will be funded equitably by all the municipalities in the Saint John Census Metropolitan Area (CMA) and will provide the impetus for a broad -based economic development program to increase the population to ensure there are enough workers to meet labour demand, expand strategic industries, foster new entrepreneurs and build economic development infrastructure that drives growth. In August 2019, the Advisory Council prepared a report entitled "Economic Development Model and Framework for Growth in Greater Saint John" that detailed the approach to the new model, funding and governance. David Campbell from Jupia Consultants and Cathy Simpson from The CASM Group were retained to undertake a process meant to conclude with agreement and support for the new, consolidated economic development model and single entity. David and Cathy have prepared this prospectus under the guidance of the Advisory Council. This is an ideal time to be embarking on this new collaborative approach to economic development for Greater Saint John. The City of Saint John will continue to invest at the same level over the next five years and the new funding from the partner municipalities and LSDs will provide much needed incremental funding to support priorities such as people attraction which will be critical to move our region forward. Economic Development Advisory Council Paulette Hicks — Delta Saint John Francis Power — Intangible Power Dan Doiron - UNBSJ Chris MacDonald —JD Irving Andrew Carson — Irving Oil Stephen Lund — GNB/ONB [till Summary of the proposed regional economic development model Objectives and scope (Section 2) Awo A brand-new, innovative approach to regional economic development that is equitably funded by all municipalities, aligns the key players in the ecosystem focused on economic growth, and has a budget and the scale to compete with the other larger urban centres across Atlantic Canada and beyond. W'W'z Functions of the new economic development organization (Section 3) IM — Community marketing/promotion/branding People attraction — Growth sector(s) development including tourism — Entrepreneurship ecosystem growth and development — Economic data/decision support — Economic infrastructure development — Stakeholder relations/ecosystem development/private sector collaboration Funding the new economic development organization (Section 4) Equitable funding from all municipalities (including LSDs) (evolving to per capita municipal funding over time). Over the five years, core municipal government funding will be amplified by an estimated $7.6 million from the accommodation levy and $10.3 million from provincial and federal government funding as well as the private sector. Specific municipal funding levels are: — Saint John: $1.7 million in 2021 and 2022 rising to $1.9 million/year through 2025. — Rothesay: $148,000 in 2021 rising to $283,000 by 2025. — Quispamsis: $168,000 in 2021 rising to $454,000 by 2025. — Grand Bay -Westfield: $36,000 in 2021 rising to $118,000 by 2025. — Hampton: $31,000 in 2021 rising to $102,000 by 2025. — St. Martins/others: TBD, initial commitment of $500,000 made by GNB. Board of directors and governance (Section 5) The board will consist of Inside Municipal/Government Directors and Outside Private Sector Directors. The Chair will be an outside director. The inside directors will be appointed by the municipalities from senior staff members; primarily the city and/or town managers. No elected reps. will sit on the board. — Municipalities (the shareholders) will have preferred shareholder status and will have to approve certain essential and material decision of the board such as: strategic goals and objectives; new funding arrangements of a material and/or directive nature; organization bylaws; and annual business plans that vary in a material way from the approved strategic plans. — The board will be made up of 14-15 directors: 7-8 outside private sector directors, 6 inside municipal directors, and potentially 1 provincial government nominated director. — Preferred shareholder representation will include: 2 from the City of Saint John — with four (4) board votes and one each from the four other municipalities — with one vote each. — The board executive will consist of a Chair, 1 or 2 Vice Chairs and a Treasurer (all outside directors). The Saint John City Manager will sit on the executive committee ex officio (i.e. not voting). Transition (Section 6) IIIIIIIIIIIIIIIIIIIII — Early July 2020: New model voted on by municipal councils. — July 2020: Transition committee of six community leaders to be set up as recommended by the five municipalities — to recruit the new board Chair/initial board of directors. — August 2020: Firm to facilitate the process of Chief Economic Development Officer recruitment. — Fall 2020: Transition activities take place including working with GNB on the funding formula for LSDs. — October 2020: Municipal government priorities established. — December 2020: KPIs developed and approved by councils. 1919% 2. Why now? 2.1 Saint John is at a critical juncture In 2020, at the start of a new decade, the Advisory Council believes the City of Saint John and surrounding municipalities are at a critical and exciting juncture. The previous decade has been a time of turbulence for the Saint John CMA economy. It ranked 33rd out of 35 CMAs across Canada for population growth between 2009 and 2019 and 315T for workforce growth (a 0.7% increase over the decade). On the broadest measure of economic growth, the Saint John CMA real gross domestic product (GDP) expanded by an average of only 0.9% per year between 2009 and 2019 which was one of the worst GDP growth rates among Canada's 35 CMAs (Figure 1). And there are currently a number of challenges that could impact the region's ability to grow in the years ahead. First, the Saint John CMA has a demographic challenge. Among the 35 CMAs, for every 100 deaths each year there are 150 births. In other words, the natural population growth rate is positive. By contrast, in the Saint John CMA there are only 85 births per 100 deaths or a negative natural birth rate. Further, there has been a 40% increase in the number of people in the Saint John workforce over the age of 55 in recent years and more than 15,000 will be heading towards retirement in the next decade or so. Over 40% of the region's entrepreneurs (self-employed) are over the age of 55. The region needs a new and ambitious population attraction strategy. Second, the decline in economic activity in the Saint John region over the past decade is impacting municipal finances. As GDP growth has declined so has average annual municipal tax revenue growth — down 44% since 2009'. The region needs to boost economic growth to help grow municipal tax revenues without the need to raise tax rates. Third, the Saint John CMA is more exposed to global competition than many other urban centres in Canada. Upwards of 80% of the value of goods exports from New Brunswick either ships through Saint John or is controlled by Saint John -based companies. This exposure to global markets is very good for New Brunswick as it results in billions of dollars flowing into the province each year. But it means Saint John is particularly vulnerable to global market conditions and competition. 1 Based on the average combined annual revenue growth among the five largest municipalities in the Saint John CMA between 2002-2008 compared to 2009-2019. 4 303 Fourth, the Saint John region historically has been reliant on large projects or big new industries to drive growth. From shipbuilding to energy, the regional economy has tended to grow in spurts. Now there is currently no large new industry or project on the horizon'. This means if the economy is to grow it will need broad -based contribution from sectors such as manufacturing, ICT, finance, professional services, tourism, etc. Fifth, there is some concern that Saint John has a brand problem. It needs to be positioned as a place where entrepreneurs thrive, and people can have great careers combined with a high quality of life. It needs to be known as a place where industries are supported and can succeed. We need more focus on all the things that are great about our region even as we work to address our challenges. Sixth, new technology and business processes are set to have a profound impact on the global economy in the coming years. Saint John's local and export -focused industries need to embrace change and adapt for the new realities. In short, the competition for new business investment, people attraction and the fostering of new entrepreneurs has never been more pronounced than it is today. The Advisory Council does not believe that deploying a new, consolidated economic development model for the Saint John CMA will singlehandedly change the trajectory of the regional economy. The Council believes a reinvigorated economic development model with strong support from the private sector aligned with provincial and federal government economic development and people attraction efforts will ensure the region transforms and is set up for growth in the 2020s. 2.2 Reason for optimism Despite the aforementioned challenges, there is much reason for optimism. Collectively, we see a new way forward. The region is home to a number of global companies that are leaders in their respective industries and are significant employers. A number of the region's important industries are poised for growth including ICT, insurance, energy, transportation, tourism and health care. The Saint John region has many institutions that could drive new economic growth including its post -secondary education sector, port and airport. And on the crucial issue of people attraction, Saint John offers a strong value proposition. If offers reasonable housing costs, short commute times and relatively low crime rates. Residents benefit from a mix of urban and rural amenities. But optimism is not a strategy. The region must focus its economic development efforts on incremental growth leveraging its unique assets, attributes and strengths. ' A notable exception could be nuclear energy. If this sector takes root in New Brunswick it could be very beneficial to the Saint John economy. 19191111 2.3 Why the Saint John CMA? The Saint John Census Metropolitan Area (CMA) is comprised of the City of Saint John, the towns of Rothesay, Quispamsis, Grand Bay -Westfield and Hampton as well as the Village of St. Martins. There are also 19,000+ people living in Local Service Districts (LSDs) in the CMA area (Table 1). As defined by Statistics Canada, these communities are all part of an integrated regional economy. Labour markets are integrated. Shopping and services markets are integrated. In the longer run, the destinies of these communities are intertwined and therefore they ideally should be collaborating on efforts to foster economic development and people attraction. Table 1: Estimated 2019 population, municipalities included in the Saint John CMA Change Change Municipality: Population since 2016 Local service districts: Population since 2016 Saint John 70,817 +2.5% Simonds 3,970 +0.9% Quispamsis 18,970 +1.8% Kingston 2,981 +0.4% Rothesay 11,940 +0.3% Hampton 2,877 +0.4% Grand Bay -Westfield 4,968 -1.5% Westfield 2,052 +2.5% Hampton 4,333 -0.7% Norton 1,328 +0.5% St. Martins 287 +2.1% Upham 1,299 +0.4% Six municipalities 111,315 +1.8% Musquash 1,229 +0.8% St. Martins 1,181 +2.3% Greenwich 1,082 +0.4% Lepreau 748 +4.0% Petersville 674 -3.0% Rothesay 347 +4.8% LSDs -Total 19,768 +0.9% Source: Statistics Canada. Table 17-10-0142-01. The total population in this economic zone is estimated to be 132,000 (2019). The Saint John CMA is the smallest metropolitan area by population east of Ontario and the fourth smallest across the country. This bolsters the case for greater regional collaboration. Even though the metropolitan area is small, by working together the regional municipalities will better be able to compete with larger urban centres. Most municipalities small and large across Canada spend in the 1.0 to 2.0% of budget range on the economic development function. Some include tourism and other functions but very few across the country are not investing in economic development. The argument here is that by working together the communities within the Saint John CMA will maximize impact and be able to compete and win against other larger CMAs. Not all of these LSDs may end up in the final decision about LSD participation in the regional economic development model. Some may be considered part of another region/zone. The determination of which LSDs are included will be decided during the negotiation process (See Section 6). 6 305 2.4 The Covid-19 pandemic The Covid-19 pandemic has created a lot of uncertainty. It is not clear how long it will take for the regional economy and labour market to bounce back to pre -pandemic levels. As shown in Table 2, the negative impact on the employment situation was significant but actually the employment losses were less than in the average metropolitan area across the country buffered by government and large employers retaining staff and by the early exit from the lockdown which helped the employment figures in May. Table 2: The impact of Covid-19 on the Saint John CMA labour market Labour force characteristics May-19 May-20 # change % change Labour force 71,000 64,800 -6,200 -9% Employment 66,700 57,600 -9,100 -14% Unemployment 4,300 7,200 +2,900 +67% Unemployment rate 6.1% 11.1% +5.0 Participation rate 66.6% 60.1% -6.5 Employment rate 62.6% 53.4% -9.2 Source: Statistics Canada Table: 14-10-0294-02. Moving forward the pandemic effects could linger. Will local services return to pre -pandemic levels? How will the pandemic impact the region's critical export industries? There are concerns the toll on our exporters will continue to linger into 2021 and possibly well beyond. How will immigration and international student attraction be impacted? Tourism, which has been a bright spot in recent years, has a weak short- and medium -term outlook. As a result of Covid-19, the Economic Development Advisory Council believes there is even more impetus now for the new Saint John economic development model. We will need to come out of this strong with a clear path forward. The new, integrated economic development approach will be an important part of this renewal. 7 306 3. What will the new organization do? 3.1 A new economic development direction for the Saint John CMA In order to effectively compete in the 2020s, the consensus view of stakeholders is that the Saint John region requires a different model — a regional model that aligns and combines economic development, people attraction, infrastructure development, tourism development and related activities into a single organization with one board, one mandate, one leader (CEDO -Chief Economic Development Officer) and one budget. Fragmented spending and divergent municipal investment is holding back the potential to maximize returns on economic development investment in the region. A recent paper published by the U.S.-based Brookings Institution concluded that industrial development and labour markets happen in economic regions (metro areas) and not just in individual cities or towns and therefore metropolitan areas are the "right scale for economic strategies and governance". Based on numerous examples across the United States, Brookings concludes "regions benefit from having a backbone organization coordinating economic development activities and bringing actors together." This is exactly the proposed role for the new, consolidated economic development organization for the Saint John CMA. It will be a backbone organization concerned with all aspects of economic growth in the Saint John region — not just on the delivery of specific services. It will also play a coordinating role with its many local, provincial and federal government partners. A symbiotic economic development relationship: The five municipalities and LSDs The City of Saint John is the primary industrial and commercial economic engine for the regional economy. Growth in the city's manufacturing, transportation, information technology and other sectors benefits the regional economy by boosting the population settling around the CMA and by increasing consumer spending in all of the communities. It also helps create secondary commercial development in the surrounding municipalities to meet the growing local demand for goods and services. 3.2 The functions of the new economic development organization It will be the responsibility of the new private sector -led Board of Directors and the CEDO to establish specific activities and the budget associated with each activity, subject to alignment with municipal government shareholder priorities. As input to this new Board of Directors, the feedback from the municipalities, other stakeholders and the Advisory Council focused on a number of key functions that will be important. These are summarized in the table below. It is very important to note that the incremental funding support from the regional municipalities and LSDs will ensure there is proper funding for activities such as people attraction, community promotion and analysis of the regional economy. These functions, and others, are not properly funded today relative to other competitor jurisdictions. 8 307 Function: Description: Community Much discussion and education has occurred around embracing place marketing/promotion branding and the benefits of this mindset and focus for the region. We need / branding to market and sell the Saint John region to attract investment, entrepreneurs, people, students, R&D and visitors. People attraction The new entity will be engaged in a focused and increased effort to attract people to the region including immigrants, persons living elsewhere in Canada, national and international post -secondary education (PSE) students, etc. The primary focus will be on attracting people into specific jobs on offer and entrepreneurial opportunities. We will look to boost international student enrolment, again, with a focus on programs where there is a stronger likelihood of retention in the community after graduation. It is important to point out that other organizations are involved (e.g. UNB SJ, NBCC, etc.) — the new entity will lead on this initiative for the region and will ensure alignment with other entities. There must be an increased emphasis on this function. Growth sector(s) We must develop the value proposition for specific growth sector development opportunities and promote these opportunities to attract local, national and international investment. How do we leverage our health research assets, our strengths in ICT, finance and insurance, ocean -based shipping, energy, etc. Some of this work is currently being done but the new entity needs to increase this focus. The new entity will lead on this initiative for the region and will ensure alignment of effort with provincial and federal government strategies and private sector partners. Tourism development Tourism development will be a pillar of this new organization. Because of the accommodations levy and municipal commitment, a large portion of the budget will focus on this sector. The new entity will put even more focus on tourism asset development (i.e. investments that boost the tourism capacity in the region). Entrepreneurial This is a core function of regional economic development agencies across ecosystem growth and Canada. It can involve startup incubation spaces, new company acceleration development programming, support services, partnerships with public sector enterprises to incubate new research -based startups, attracting startup capital, small business loan funding programs, and more. The focus will be on innovation and growth sector opportunities with an increased emphasis on scaling up company opportunities. Economic data/ The new entity must be the go -to organization for data, research and insight decision support into the Saint John CMA economy and population. More emphasis on KPI's, results and accountability for financial success to the major investors is a must. KOU] Function: Description: Economic The new entity will work on large economic infrastructure (e.g. Fundy Quay, infrastructure Innovation District, etc.) in the City of Saint John and in the surrounding development municipalities. It will support the development of the value proposition for investment in related projects and will foster strong relationships with real estate -related investors and developers both locally and nationally. The new economic development organization will focus on the region as a whole and will look broadly at land development and how to leverage existing assets in all municipalities. It will manage several key regional economic development assets including the three industrial parks and the barge terminal. There is no expectation the new economic development organization will own any buildings or land. The reason why the Saint John industrial parks and barge terminal were included in the responsibilities of the new organization was that they are important economic assets that will be promoted for economic development and new company investment in and will be beneficial to the whole region as workers, and in many cases owners, reside across the region. There will be commercial/industrial real estate developments across the region that will be supported by the regional economic development organization but any land sales, as one example, will accrue to the owner of the properties (public or private). Support for municipal The organization will provide support for municipal -level economic economic development subject to the principle that regional economic development development activities will benefit the entire region (new residents will be dispersed, new company investments will lead to spending across the region, etc.). At a high level, municipal support will include: • Support for strategic economic development projects in each municipality. • Support for local entrepreneurs in each community (in conjunction with other provincial and federal service providers). • Support for tourism development in the municipalities. • Etc. Stakeholder This new entity will be at the centre of the economic development ecosystem relations/ecosystem in the Greater Saint John region. It will deliberately strengthen relationships development/private with all key partners and ensure alignment of effort, the development of sector collaboration multi -organization projects and the ongoing sharing of information. This must include a renewed engagement with the private sector. 10 191916.1 3.3 Why a consolidated economic development organization? The Advisory Council believes this new economic development entity for Greater Saint John will achieve greater results than the current model with multiple different organizations, leaders, and board of directors. In order to compete effectively in the 2020s, the new entity will be better positioned to: What Rationale: Attract more municipal The new model will attract significant new funding from the various investment and leverage municipal governments in the region. As shown in Section 4 below, it is other funding sources estimated $4.7 million will be invested over the first five years of the new model from the other municipalities and LSDs, in addition to Saint John's contribution. It is anticipated that other government and private sector partners will be better engaged financially in the new model. Drive success in key activity The scale of the new entity will allow for increased investment in key areas focus areas. For example, currently the region is doing limited work to foster people attraction. The new model will have the capacity to significantly expand these efforts. The old, fragmented model had limited capacity to develop and analyze data to support decision making. The new model will have this capacity. Section 3.2 above provides a broad overview of the various focus areas of the new organization. Optimize economic In addition to being better positioned to attract funding from other development spending and government sources as well as the private sector, there will be cost people attraction savings as the disparate functions are consolidated into one investment organization (back office, management, overhead, aligned marketing and partner management to name a few). Generate functional The new entity will benefit by bringing the various strengths from each synergies function into one consolidated plan. The branding and expertise that has led to a significant boost in visitors in recent years will align with efforts to attract population. The expertise related to the development of larger economic infrastructure projects will align with efforts to attract investment to the region. Focus on regional strengths, In the Saint John CMA, the whole is greater than the sum of its parts. assets and attributes The new economic development entity will focus on leveraging the strengths, assets and attributes of the entire Greater Saint John region. Align the economic The new entity will be better positioned to align the activities of the development ecosystem other organizations involved in economic development and people attraction with provincial and federal partners. 11 310 What Rationale: Provide greater A single entity with a Chief Economic Development Officer (CEDO) and accountability for results board of directors, aligning the work of local, provincial and national partners, will be better able to achieve results but also to be accountable for results. The challenge of a fragmented economic development model is the "that is not my responsibility" problem. The new entity will be able to identify and work on a wide range of activities that support economic growth and not be restricted to a few specific functions. Both the silo effect and work priority overlaps will be eliminated. 3.4 Staffing the new organization The new organization will have in the range of 20-25 core staff supplemented by summer students and contract employees as needed. There are many talented staff working in EDGSJ, Discover SJ and Develop SJ and most will be integrated into the new organization. There will be some redundancies and staff efficiencies to be achieved through the amalgamation. The new board of directors and CEDO will be mandated to build the appropriate staffing and executive leadership model for the new organization. 12 311 4. Funding the new economic development model The focus of this prospectus is on the core municipal funding of the new economic development entity and not on the other sources of funding. It is important to point out, however; that the new entity will be tasked with leveraging other sources of government funding where there is alignment with the goal of driving economic development and people attraction to the Saint John region. It will also be mandated to secure private sector funding support —to drive specific outcomes. Asa result, securing core and stable municipal funding is critical to the ability to leverage other sources of funding and better ensure alignment of effort between the new entity and other partners in the region. 4.1 Fair and equitable funding A fundamental principle of the new municipal government funding model is that all municipalities in the Saint John CMA are contributing equitably to the new entity. The LSDs and economic development funding The Local Service Districts (LSDs) located in the Saint John region are economically integrated into the regional economy in the same manner as the city and towns. LSD funding support and participation in the governance of the new organization is considered to be crucial moving forward. However, determining which LSDs should be included in the model and negotiating a separate funding agreement with each LSD would have been very problematic in the timeframe allotted. The consulting team had ongoing discussions with the provincial government on the strategic importance of funding support for the new regional economic development model. The provincial government has committed $500,000 over the first two years and has committed to work with the new entity on a funding formula for the LSDs that would see them financially support regional economic development out of their annual property taxes. The process of LSD integration into the funding and governance model will be a top priority of the new board of directors and leadership. The Advisory Council realizes there are concurrent discussions in the region related to the funding and provision of other regional services. The Council recognizes the importance of these discussions and believes the negotiation and implementation of the new and innovative approach to economic development outlined in this document, supported by a fair and equitable funding formula, is a good example of how the area's municipalities can come together to develop and implement an important regional service. 13 312 4.2 The proposed municipal contributions The City of Saint John The City of Saint John has been investing a considerable amount into economic development in recent years. It is recommended this funding be allocated to the new, external economic development agency. The city's annual funding for the first two years of the five-year revenue forecast will be $1.7 million. Starting in 2023 Saint John's contribution rises to $1.9 million per year. The city's continued commitment will ensure significantly more money will be invested into economic development so we can compete and win in the 2020s. Over the 2021 to 2025 period, the city's funding will leverage approximately $4.7 million in other municipal funding and another $18 million in other funding including the accommodation level, other levels of government and the private sector (Table 3). Quispamsis, Rothesay, Grand Bay -Westfield and Hampton Table 3 includes the proposed funding levels for the four towns from 2021 through 2025. The funding target by 2025 is the same as the original prospectus but the increases from 2021 through 2025 have been adjusted. The first year (2021) increase for the three municipalities that have been funding EDGSJ has been dropped to reflect uncertainty over municipal budgets post-Covid-19. Hampton's initial funding level in 2021 has also been proportionately reduced. As was proposed in the original prospectus, the objective is to evolve to an equivalent per capita funding for the new entity within five budget years. The annual increases have been set to ensure the municipalities reach parity in the future. Village of St. Martins Once ratified by the core municipal partners of Saint John, Grand Bay -Westfield, Rothesay, Quispamsis, and Hampton, St. Martins will be engaged to get their buy -in and participation. The proposed funding levels are $2,800 starting in 2021 rising to $6,800 by 2025. These levels are consistent on a per capita basis with the other municipalities. Why should municipalities make this level of investment into economic development? • To transform the Greater Saint John region. • To demonstrate municipal commitment to economic development and people attraction. • To ensure the combined investment in economic development from all municipal partners rises significantly in the coming years. • To ensure the new entity will have the capacity to invest more in key areas such as people attraction, community marketing/promotion/ branding and the development of stronger economic and demographic data for decision support. • To boost population growth, business investment, visitors and new entrepreneurs in the city and region. • In order to effectively compete with other urban centres, there needs to be a strong, regional economic development effort. 14 313 4.3 Other sources of funding The new regional economic development organization will leverage other sources of funding to amplify the municipal investment. As detailed in Table 3, over the five-year forecast period the combined $13.8 million municipal funding contribution is expected to leverage another $17.9 million. For every municipal dollar contributed, a total of $2.3 will be spent to support economic development across the Greater Saint John region. These other sources of funding can be grouped into three categories: the accommodations levy, other government funding and private sector funding. Accommodations levy: It is anticipated as a result of the pandemic that accommodation levy funds raised will drop to around only $400,000 in 2020 with a modest rebound to $700,000 in 2021. For this forecast model, it is assumed that the dollars raised from the levy will start to approach 'normal' by 2023 and increase through 2025. It is assumed the accommodation levy will be applied to other regional accommodations providers by 2022/2023 and these funds will be provided to the regional economic development organization to fund tourism development and promotion. The projections are still well below the amount in the original prospectus and have been provided by Paulette Hicks in consultation with the Saint John Hotel Association. It is important to point out these funds are restricted by legislation and must be used for tourism development and promotion activities. Provincial/federal government funding: The provincial and federal governments already provide considerable funding to local agencies in support of economic development. This funding is tied to specific contracts and projects and is invested in areas such as workforce development, community promotion and people attraction. It is anticipated this funding will continue with the new regional organization. Opportunities New Brunswick and ACOA have been engaged during this process and have indicated a willingness to continue funding projects in the region moving forward and are very supportive and in favour of this new model. Private sector funding: As outlined in the original prospectus, it is expected the private sector will provide funding support for this new organization. This funding could be generic or tied to specific activities and initiatives of the organization. Because of the Covid-19 pandemic the ramp up period for this funding has been adjusted — starting at $200,000 in 2021 and rising to $450,000 by 2025. It will be imperative for the new organization to put a plan in place as soon as possible to engage the private sector in the support of regional economic development. 15 314 Table 2: Proposed Five -Year Revenue Forecast, New Economic Development Organization Core municipal funding: 2021 2022 2023 2024 2025 Saint John $1,700,000 $1,700,000 $1,900,000 $1,900,000 $1,900,000 Rothesay $148,000 $192,000 $250,000 $266,000 $283,000 Quispamsis $168,000 $219,000 $284,000 $370,000 $454,000 Grand Bay -Westfield $36,000 $48,000 $64,000 $86,000 $118,000 Hampton $31,000 $41,000 $56,000 $74,000 $102,000 St. Martins 2,800 3,600 4,700 6,000 6,800 Other communities (LSDs) 250,000 250,000 275,000 300,000 330,000 Core municipal funding: $2,335,800 $2,453,600 $2,833,700 $3,002,000 $3,193,800 Accommodation levy:* $700,000 $1,500,000 $1,700,000 $1,800,000 $1,900,000 Other potential funding Prov/federal government** $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 Private sector** 200,000 300,000 400,000 450,000 450,000 Total - other $1,900,000 $2,000,000 $2,100,000 $2,150,000 $2,150,000 Funding forecast (proforma): $4,935,800 $5,953,600 $6,633,700 $6,952,000 $7,243,800 *Estimated by the Saint John Hotel Association. **Based on current provincial and federal funding of local economic development and people attraction initiatives. **Recommended private sector contribution. 4.4 Putting municipal funding into context The original prospectus provided to each municipality included an assessment of municipal economic development funding compared to other similarly sized cities and towns across Atlantic Canada. The funding levels proposed in this model will bring the municipalities into a similar economic development funding range as others across the region. 4.5 Growing the core municipal funding Moving forward, it will be the role of the Board of Directors and the Chief Economic Development Officer (CEDO) to propose a sustainable and growing funding model for the new economic development entity. From the original report prepared by the Advisory Council, the concept of linking municipal funding to growth (e.g. population, tax base, etc.) is a good guiding principle. For example, if one municipality's population grows faster than another, it would pay slightly more over time based on the differential. This future model will need to be negotiated between the new organization and its municipal government funding partners. 4.6 Spending the budget by function The Advisory Council believes the new board, CEDO and leadership team should determine how the budget will be allocated by functional area subject to input from the municipal government shareholders to ensure alignment with their priorities. Section 3.2 above outlines the functional areas for the new entity. 16 315 The Advisory Council is of the view that the new entity can be fully in place by January 1, 2021 (subject to the timeline outlined in Section 6 below) but it is important to note there will be a necessary budgetary expenditure transition period as the current activities are transitioned into the new entity. 4.7 The need for a multiyear funding commitment The Advisory Committee is asking each municipality to make a multiyear commitment to the new economic development entity. This will be critical to the success of the new organization. The research and consultations completed for this project confirmed the perceived instability of funding for economic development has negatively impacted the community's ability to develop and implement successful strategies. The new entity, of course, will be subject to strong oversight and will work towards key performance indicators (KPIs) each year but the annual funding commitment should be in place for an extended period of time. Upon agreement of participation in the new regional economic development model under the terms outlined in this prospectus, municipalities will be asked for a letter of commitment to support the organization for five years. However, municipalities will be offered an opt -out provision after Year 3 but this opt -out provision will require material underperformance relative to the goals set for the organization. 17 316 S. Governance and oversight 5.1 Overriding governance principles The governance model was designed around the notion that strong governance will drive exceptional organizational performance. There is a growing body of evidence that would suggest this is in fact the case. The following core governance principles guided the design of the governance process: 1. The governance process will be modeled around state-of-the-art governance practices using the latest NPO board certification standards, like those found in the Imagine Canada board certification guidelines. The goal is to have this board certified. 2. The board will consist of Inside Municipal / Government Directors and Outside Private Sector Directors. The outside directors will consist of the majority of the board members, and thus control the board. 3. The Chair will be an outside director. 4. The CEDO will report directly to the board and will also be an ex-officio director of the board. 5. The inside directors will be appointed by the municipalities from senior staff members; primarily the city and/or town managers. No elected representatives will sit on this board. 6. We recognize that the municipalities will require a measure of control over the direction of the organization, thus we have designed a structure giving them preferred shareholder status, which in effect will require a majority of municipal director's approval surrounding certain key directional decisions of the board and, by extension, the organization. 5.2 Board and committee structure Board Structure The board will be made up of 14-15 directors, which by todays governance standards is a relatively big board; the average is 11. This is required to ensure proper representation across the various stakeholders. The board will have the opportunity to appoint up to 7 - 8 outside private sector directors and six inside municipal directors as well as 1 provincial government nominated director. Inside Municipal Directors Inside Municipal Directors will be appointed to the board on 4-year terms coinciding with municipal election cycles. These directors will be appointed by the municipalities and will have no term limit. Representation is anticipated as follows: Two (2) from the City of Saint John, including the City Manager. Each city board member will have two votes. The City Manager will sit ex officio on the Executive Committee (in a non -voting role). • Four (4), one from each of the other municipalities. Each board member will have one vote. The municipal directors will be appointed from staff positions and are not meant for political appointees. 18 317 Inside Government Nominated Director The provincial government will be asked to appoint a director on 4-year terms, which will coincide with municipal election cycles for continuity with the appointment of the inside municipal directors. This director will have full voting rights on the board but will not share the preferred privileges of the municipal directors. Outside Private Sector Directors Outside Directors will be appointed to the board on three-year terms, with the opportunity for one three-year extension based on performance. This will, among other things, ensure effective rotation of board members outside of the four-year municipal election cycle. Initially board representatives will serve staggered terms to ensure an orderly transition. Outside Directors will be selected through a nominating committee of the board (see committee structure below) which will consist of 100% outside directors. The nomination process will be driven by a transparent skills matrix which will include requirements for directors surrounding 1. skills / experience, 2. gender balance, 3. diversity and 4. geographic representation. NOTE: The initial board of directors will be selected by a transition committee of private sector/community leaders. This transition committee will be appointed by the five municipalities. See Section 6 below for details. Committee Structure The work of any board is through its committees. This board will have three required committees, plus the ability to appoint additional committees as its needs arise. The three required committees are as follows: 1. Governance / Nominating Committee —This committee will consist of 100% outside directors and be responsible for defining, setting and recommending any changes to the organization's bylaws and governance practices. They will monitor and manage the effectiveness of the governance processes and oversee the governance certification process. They will strike an annual Nominating sub -committee to recommend required changes to the board slate, any allowable extensions, along with replacement board member recommendations. Its mandate only relates to the outside directors. The governance committee will require at least one director who is deemed a legal expert. 2. Finance / Audit Committee —This committee will be responsible to work with the finance team in preparing the annual audit. They will hire and oversee the auditor in having this work completed. They are responsible to report to the board, at least quarterly, on the financial results of the organization. This committee will require at least one director who is deemed a financial expert. 3. HR Committee —This committee will consist of 100% outside directors and will oversee the selection and performance of the Chief Economic Development Officer and her/his senior executive team, including compensation packages and performance bonuses. This committee will also be responsible for setting the compensation plans for the organization. 19 318 Board Executive The board executive will consist of a Chair, one to two Vice Chairs and a Treasurer along with the Saint John City Manager in an ex officio role. This will ensure a transparent and clear progression for board leadership. It is anticipated the Chair will have a two-year term with no opportunities for extension. The process to nominate and elect Vice Chairs and future Chairs will be managed by the Governance Committee yet will involve all directors of the board. The board executive will be made up of 100% outside directors with the exception of the City Manager. Note that directors who are elevated to the executive may end up spending slightly more than six years on the board. Preferred Shareholder Status Inside Municipal Directors, who are effectively representing their communities on the board, will be part of a block of directors with preferred voting rights against a number of key criteria. Essentially this block of six directors will have to approve certain essential material decisions of the board. Majority will rule in these instances, with a tie to be broken by a vote of the broader board. Once agreed, standard board majority rules governance practices will apply. The following items will require approval from a majority of the inside municipal directors and by extension, the municipal shareholders. • Four-year Strategic Goals and Objectives. Pursuant with the municipal election cycles, the organization will prepare a set of four-year strategic goals and objectives for the organization, along with anticipated measurable outcomes and an associated budget. This will set the direction for the CEDO to build plans for the organization to achieve these goals. • New Funding Arrangements. Any new funding arrangements, of a material and/or directive nature, will require approval of the inside directors. For example, taking on a material amount of new debt. • Bylaws. Changes to the organization's bylaws and/or governance structure. • Annual Business Plans. Annual business plans that vary in a material way from the approved strategic plans. These rights will give the municipal shareholders a measure of control over the direction of the organization, while ceding day-to-day control to the outside private sector directors. Once these have been defined the municipal shareholders will have the opportunity to suggest any additions and/or changes to the strategic direction with a goal to build consensus on the organizations four-year strategic goals. Additional Board Committees It is anticipated there will be additional board committees, with oversight responsibilities, surrounding key functional areas of the organization: tourism, economic growth, real estate, place branding and people attraction. This will, among other things, allow the board to bring in outside expertise in these respective areas, building more community involvement in the economic growth of the Saint John region. These committees are not required under the governance structure but are anticipated to be an important way to engage community leaders with specific subject matter expertise. This is an attractive way to build volunteer expertise in critical growth areas to ensure the organization is benefiting from the top talent in the region. 20 319 6. Transition to the new economic development model An effective transition process will ensure the new organization has the team, structure and support to hit the ground running in 2021 and be able to tackle the key challenges and opportunities coming out of the Covid-1- pandemic. The timeline for transition will be as follows: • End of June/early July 2020: The municipal Councils vote and approve the new regional economic development model. Letters of commitment will be asked from each municipality after the vote. • July 2020: After the Councils approve the proposal, a transition committee of six community leaders will be set up immediately as recommended by the five municipalities. For continuity, some members of the current Advisory Council could be appointed to the transition committee. The transition committee's mandate will be the recruitment of the new board Chair and initial board of directors for the new organization. • August 2020: The new board of directors will hire an executive recruitment firm to facilitate the process of CEDO recruitment. • August 2020-December 2020: The board and facilitator* will work on a number of transition issues in advance of and in parallel with the recruitment of the new CEDO including by-laws development, contract template between the new organization and the municipalities, merging of existing organizations, etc. Any material decisions related to the structure and strategy for the new organization will only be decided after the new CEDO is in place. • October 2020: After the board and CEDO are in place, a municipal priorities planning process will be implemented to ensure the new organization reflects the priorities of the municipal funding partners. • Fall 2020: Existing organizations wind down and merge into new entity. • Fall 2020: The new board of directors and CEDO will start working with the province to determine the LSDs in the new economic development model and their funding participation. • December 2020: A set of Key Performance Indicators (KPIs) will be developed and approved by councils. • January 2021: New entity is fully operational. *It is highly recommended a transition coordinator be hired full time for a one-year period to help guide and support the transition. 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AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager David Dobbelsteyn Jacqueline Hamilton I John Collin RECOMMENDATION RESOLVED that the Mayor and Common Clerk be authorized to execute Contribution Agreement No. 5211600015 with the Government of Canada in the form attached to this report and become the Contract Agreement holder for the Saint John Local Immigration Partnership for a period between Sept 1, 2020 and March 31, 2024 and with a total Federal contribution of $372,124; And, further be it RESOLVED that, That Council approve up to $15,000 per year from the Growth Reserve for the years 2020 through 2024, with a maximum total contribution of up to $65,000, to be used to fulfil the City's portion of funding the operating costs for the Saint John Local Immigration Partnership. EXECUTIVE SUMMARY In April 2019, Council directed staff to apply to the Federal Government for the City to be the Contract Agreement holder for the Saint John Local Immigration Partnership (SJLIP). The City's bid was successful, and staff have negotiated a Federal contribution of $372,124 in total for the City to operate the SJLIP for 5 years. -2- The Human Development Council has been the contract agreement holder for SJLIP for that past three years and is supportive of the City becoming the contract agreement holder. Approximately 87% of programming and administrative costs for SJLIP will be borne by the Federal Government. Staff recommend that the remaining 13% be funded from the Growth Reserve in order for the City to meet the obligations of operating the SJLIP. In other words, the City's investment of $65,000, will leverage $372,124 over five years. With the signing of this agreement the City will complete one of the few remaining items on the City's Roadmap for Smart Growth - action item #9: "Transfer of existing local immigration partnership." HDC to CSJ REPORT Local Immigration Partnerships (LIPS) are Federally funded community -wide, multi-sectoral partnerships working to strengthen a community's capacity to welcome immigrants and improve integration outcomes through enhanced economic, social, political and civic participation. Simply put, LIPS are made up of all the member organizations of the partnership that play a role in supporting immigrants, with one of the members holding the contract with the Federal Government for the day to day operations of the LIP. The Saint John Local Immigration Partnership (SJLIP) is currently made up of a number of local member organizations who meet regularly to coordinate services and supports for immigrants: Standing Members of SJLIP Council include: • The City of Saint John; The Province of New Brunswick; The Federal Government; Horizon Health; Anglophone School District South; District Scolaire Francophone Sud; UNB Saint John; NBCC; EDGSJ; ONB; YMCA Newcomer Connections; The Saint John Newcomers Centre; and PRUDE Inc; and the Human Development Council. As the vast majority of immigration is occurring in Canadian cities, including Saint John, municipalities are well placed to play a local leadership role in hosting Local Immigration Partnerships for their respective communities. One of the primary function of a LIP is to provide a table for cross -collaboration of all local stakeholders in a community as well as assist local agencies and stakeholders in capacity building, avoiding duplication of services, and achieving greater local 19M191 -3- alignment in the settlement sector. Municipalities are uniquely poised to play this role as community convener, and this is the primary reason why the majority of the 77 local immigration partnerships across the Country are hosted in a municipality, including Halifax, Moncton, and St. John's in Atlantic Canada. As LIPS are primarily Federally funded, they not permitted by the Federal Government to be involved in talent attraction or recruitment of immigrants, lobbying, or direct service delivery to newcomers. However, LIPS do play a major role in immigrant retention in ensuring the right tools and resources are in place in a community to welcome and support newcomers. LIPS assist their host community in developing strategies to support immigrants, promote strategic alignment of its partners' plans and priorities, facilitate collaboration across sectors, and mobilizes engagement and resources to develop effective responses to complex and persistent barriers and challenges. Economic Development Alignment As the City is undertaking a new economic alignment exercise, staff also viewed this contract through that lens. While the work of the SJLIP cannot be construed as population growth per se, it nevertheless plays an important role in that ecosystem where its member organizations work together to build a welcoming community for all residents. As the SJLIP is not permitted to be involved in talent attraction and is instead focused on improving immigrant outcomes related to: • Basic needs, • education, • language acquisition, • foreign credential recognition, • settlement services, • improving health, • settlement, • racial discrimination, etc The City, rather than an aligned economic development structure, is better positioned to host SJLIP at this time, where the City can more easily facilitate those necessary and important community development conversations that are unrelated to economic development. -4- The SJLIP can fully accomplish the objectives set out by IRCC when hosted by City of Saint John while also contributing to the outcomes of the new aligned economic development agency. As almost all population growth for Greater Saint John if forecast to be through immigration, it is assumed that the new aligned economic development structure would likely join LIP Council as a member organization and actively participate in relevant working groups wherever there is alignment. Conversely, SJLIP would be a valuable resource to the aligned economic development structure when they develop strategies that may seek to attract immigrants. In the event that a new regional economic development entity is formed and there is the view that additional synergies with SJLIP would be beneficial, City staff and SJLIP Council will entertain that discussion and evaluate options for greater integration. Transitioning Local Immigration Partnership to the City In Saint John, The Human Development (HDC) received federal funding in May 2017 for a period of three years from Immigration, Refugees, and Citizenship Canada (IRCC) to be the agreement holder for the Saint John Local Immigration Partnership (SJLIP). That contract ends on Aug 31, 2020. The HDC viewed its role as the incubator of SJLIP until such time as the City was ready to host the SJLIP. This transition began when Common Council set its priorities for 2016-2020 with a new focus on growth, and was prioritized through the Roadmap for Smart Growth exercise. Housing the SJLIP within the City of Saint John will invite added synergy with the City's existing growth initiatives and portfolios, including the community planning team, growth team and the community services team. There are further synergies that can be found as every City Department plays an active role in facilitating growth throughout the City, and all City staff are currently receiving cultural awareness training. As early as 2017, the HDC and the City have been working together to prepare to transfer the existing SJLIP from HDC to the City of Saint John. The City has been acting as co-chair of the LIP Council since that time and has briefed them on the proposed transfer, and received their endorsement. The City and HDC have also worked collaboratively to prepare for the eventual transition of the SJLIP from KMlei -5- HDC to the City, by aligning some key initiatives of SJLIP with that of the City's Population Growth Framework (adopted by Common Council in February 2018). In addition, over 2019, the current Project Manager for the SJLIP has started working partially out of City Hall, to begin the transition of the SJLIP into the City of Saint John. HDC fully supports the City's application to house the SJLIP and a letter of support from HDC can be found attached to this report. SJLIP has broad engagement from a variety of organizations and community member and has over 100 different stakeholders actively working in 4 different working groups with particular focus on Health; Labour and Training; Welcoming; & Language SJLIP also has a Newcomer Advisory Panel made up of immigrants from over 20 countries who live and work in the City. This standing focus group will be an invaluable resource for the City in obtaining valuable feedback from our immigrant community on policy decisions from Council. The contract with the federal government requires that the City begin operations September 1, 2020. Funding from the Federal Government is for 5 years, and also assumes that the City will assign a full time coordinator for operating the program. Staff intend to have a Manager hired on contract by September 1 to manage the day-to-day operations of SJLIP, and the federal government has allocated approximated $60,000 annually for this specific ongoing expenditure. In addition to negotiated delivery costs of approximately $13,000 annually, staff have also negotiated an administrative contribution of approximately $7000 annually from the Federal Government to offset the City's administrative costs (e.g. Laptop, Phone, Office space, etc.) associated with running this program. PREVIOUS RESOLUTION • Common Council Meeting April 23, 2019: 13.2 Saint John Local Immigration Partnership RESOLVED that as recommended by the Growth Committee in the submitted report entitled M&C 2019-100: Saint John Local Immigration Partnership, Common Council adopt the following: That the City of Saint John apply to Immigration, Refugees and Citizenship Canada for funding to host the Saint John Local Immigration Partnership starting in 2020. EcM[.1 -6- • Saint John Common Council adopted the Roadmap for Smart Growth in March 2017, which included action item #9: "Transfer of existing local immigration partnership." HDC to CSJ • "Strategic focus on attraction, integration, and retention of all Saint Johners is needed in the community, and our new Local Immigration Partnership will be essential in developing a longer term strategy for our community." — Population Growth Framework STRATEGIC ALIGNMENT The Transfer of SJLIP aligns with the Roadmap for Smart Growth and the Population Growth Framework. Common Council has adopted a new set of Council Priorities: 2016-2020 in early November 2016, and under the heading of "Growth and Prosperity," the following is stated: "Saint John is recognized by residents and businesses as a positive and supportive city. We grow in a smart way and attract talent, innovation and opportunities so all people can thrive." In addition, Council adopted key performance indicators to evaluate its ability to GrowSJ, including, among others: "Building permit value," "Change in tax base assessment within the City," "Change in population." SERVICEAND FINANCIAL OUTCOMES The intended outcomes of the City of Saint John's growth -related efforts and investments are to achieve new levels of employment, population and tax base growth. The Federal Government has committed funding according to the following schedule. It should be noted, that for year 1 the contract runs from September 1, 2020 to March 31, 2021 and as a result the funding allocation is pro -rated. EctVA -7- 2022-2023 $90,598 $80,000 88.30% $10,598 11.70% 2023-2024 $91,928 $79,999 87.00% $11,929 13.00% 2024-2025 $93,281 $79,997 85.80% $13,284 14.20% TOTAL COST $426,197 $372,124 87.31% $54,071 12.69% It should be noted, that the City has the option of renegotiating funding amounts with IRCC annually to increase service outcomes, reduce costs to the City, or both. Staff recommend that the City's portion of funding this program be taken from the Growth Reserve, as this aligns with the mandate of Growth reserve, and will considerably aid the City in its growth efforts. Due to the inability to forecast an exact contribution required by the City annually, the Finance Department would recommend that there is 15% buffer in the request made to growth reserve. Annually, the Finance department would determine the actual amount required to withdrawfrom Growth reserve on an annual basis. Staff recommend Council allocate up to $15,000 annually from Growth Reserve with a maximum total contribution of up to $65,000 The total funds in the Growth Reserve Fund as of April 151", 2020 was $928,608.00, and $245,774 of those funds were committed and active. Therefore, as of April 15t", there was a total of $682,834 of uncommitted funding in the Growth Reserve Fund. In May 2020, Common Council adopted a resolution to earmark $546,267.20 from the uncommitted funds of the Growth Reserve to support economic recovery programming. Therefore, the total amount of uncommitted funding within the Growth Reserve is currently $136,566.80. Assuming the City would invest $65,000 into SJLIP for the five years, the City would have a total of $71,566.20 of remaining uncommitted funds in the Growth Reserve. The City's sustainability plan has frozen any further "top ups" into the Growth Reserve for 2021 and 2022. It is possible that replenishment of the Growth Reserve could begin in 2023 — subject to Council approval at that time. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS This report was developed with the support of the Human Development Council. The Budget was reviewed by the Finance Department, and the Legal Department reviewed the Contract with the Federal Government. The inclusion of the SJLIP within the City of Saint John has been discussed with the consultants working on the development of a new regional economic development model. Ect1:3 -8- ATTACHMENTS Letter of support from Human Development Council Letter of support from SJLIP Council CouncilHuman Development Identifies and addresses social issues in Greater Saint John through research, information, coordination and networking. April 10, 2019 Mayor Don Darling City of Saint John PO Box 1971 Saint John, NB E2L 4L.1 Dear Mayor Darling, The Saint John Human Development Council (HDC) has been pleased to host our community's Local Immigration Partnership (LIP) since 2017. As Agreement Holder with Immigration, Refugees and Citizenship Canada (IRCC), the HDC has provided oversight, office and meeting space, along with many in -kind supports to bolster the city's efforts to integrate and retain newcomers. This is in keeping with our role of incubating organizations to address issues of local concern. We believe that the LIP has made solid progress and is on track to meet its initial three-year objectives. We also believe that it is time to embed the LIP within the City to ensure that the retention and integration of newcomers contributes to, and aligns with, Saint John's new focus on population growth. The ambitious goal of growing our population requires a coordinated, connected effort with strong municipal leadership. Accordingly, the HDC is happy to support the City's application to IRCC for Agreement Holder status for the next round of federal funding. We are prepared to assist in the preparation of the formal application. If the City is successful, we commit to ensuring a smooth transition of the LIP to City Hall. If you have any questions or require any additional information, please do not hesitate to contact the undersigned. Yours tr ly, Randy Zielcd*l Executive Director 3rd Floor- Social Enterprise 1--Iub, 139 Prince Edward St., Saint Jahn, id.B E21, 3S3 Main Line: 506-63 3503 « www.sjhdc.ca Immigration, Refugees and Citizenship Canada c/o Call for Proposals Part 2Evaluation Committee To whom it may concern, Re: Contract Agreement Holder for the Saint John Local Immigration partnership Onbehalf ofthe Saint John Local Immigration Pertnerdhip(SJUP)Coumd[it ismypleasure tnprovide a recommendation letter in support of the City of Saint John, and their application to be the new contract agreement holder of the SKIP. The City is committed and eager to play an active and important role in coordinating and improving newcomer settlement and integration outcomes. Saint John sees the SJUP as great opportunity to engage and strategize with local organizations and citizens regarding how we can work together and provide value tmour newcomers. Formed in 2017, the SKIP is currently housed under the Saint John Human Development Council. As a non-profit organization and the only social program planning council in the province of New Brunswick, the S|HDCisahighly respected and well-connected think-tank.The Human Development Council has a strong reputation in developing partnerships and relationship with its community members, organizations, and service providers, and was chosen as the ideal host to incubate and grow the SKIP. Through SJHDC's leadership, they were able to nearly double their resources by gaining additional funds for two -years from the Canadian Institutes of Health Research and the New Brunswick Health Research Foundation. This funding helped the SKIP retain a PhD graduate (specializing in population and public health) full-time es the SKIP project manager, and allowed the SJL|Ptodouble its staff and hire aproject officer. To date, the SJL|P|s115members strong and growing. Through careful networking, the SJL|Phas engaged membership from awide variety ofsectors, including government, education, employment, business, ethnV-cw|tuna|organizations, health, public servants, settlememtand more. Toset astrong foundation for the SJUP, Terms of Reference have been developed for each SKIP group, and the SJL11P has been heavily involved with the local community and helped planned various events such as Saint John's first newcomer hiring fair, Saint John's first Cu|tureFest, and provides newcomer representation omvarious community groups. Overall, the S1L|Pincludes adedicated Council, Newcomer Advisory Panel, and four priority working groups (i.e,Welcoming Community, Employment and Training, Language Inclusion, and Health). With the support and guidance of the Council and Newcomer Advisory Panel, the working groups are actively engaged in strategizing relevant actions that will help improve newcomer settlement and integration outcomes. 351 Throughout the operation ofthe S]UP,the City ofSaint John has been akey stakehoVdecFor example, over the past two years, the City has assisted with: 1\the hiring process for both SJL|Pstaff; 2) establishing the Council, Newcomer Advisory Panel and four working groups; 3)finalizing the Terms of Reference; and 4) Co-chairing the SJLIP Council. More recently, the City of Saint John is sharing significant resources to help inform the development of a relevant, evidence -based SJUP strategy. The City of Saint John was successful in obtaining funding to support their Succeed and Stay Program. More than $500,000 was granted from three levels of government to help fund local research regarding newcomers, develop resources to monitor and evaluate existing services and programis, and develop materials and future strategies to improve newcomer attraction, settlement, integration, and retention inSaint John. In partnership with the SJUP, the University of Saint John, and several community partnens,theCityofSaint]obmareconductimghAorouyendethicaUreseerchthatvvi|Ubeusod1oinfmrm the SUL|Pstrategy. In closing, the City of Saint John is the ideal recipient of the contract agreement of the, SJLIP, as they have the resources and capacity to continue the great work that was started and nurtured by SJHDC. With the SJUP housed under the City of Saint John for the next funding cycle, the City can ensure they provide a newcomer lens to the great work they are doing, and lead through example as an organization that promotes and embraces diversity and inclusion. Furthermore, the, City iuina great position to further help support and leverage SJLIP's community partners and members as they work to achieve greater success imnewcomer settlement and integration, I am very excited and proud to be the co-chair of the SJLIP Council, and highly recommend the City of Saint John receive federal support for their application as SJLIP's contract agreement holder for 2020- 2025.|fyowhavma,nyqueotinmsnrnaquirefurtherimformnatimn,p|easedomothesitatetocontantme. Sincerely, J/&w Ala, &* Theresa Phillips, Co-chair SJUPOounci| Workforce Strategist/ Strat6ge delamain d'oeuvre Opportunities N8/(]ppo/tunit6sNB 4OKing Street, Saint John, N8 E2L1G3 RM 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 1 OF 13 CONTRIBUTION AGREEMENT AGREEMENT NUMBER: S211600015 ORIGINAL BETWEEN: HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the Minister of Immigration, Refugees and Citizenship, hereinafter referred to as the "Department'. 495 Prospect Street Fredericton, NB, E313 9M4 Canada AND: City of Saint John, hereinafter referred to as the 'Recipient'. 15 Market Square Saint John, NB, E2L 41_1 Canada Whereas the Recipient wishes to provide services and/or activities to Eligible Clients under the Settlement Program and has applied to the Department for funding under the said Program; and the Department wishes to provide a Contribution to the Recipient to assist it in carrying out such services and/or activities; the Department and the Recipient undertake and agree as follows: 1.0 AGREEMENT 1.1 This Agreement, including the attached schedules, any written instructions issued pursuant to its provisions, and any subsequent amendments thereto, constitute the entire Agreement between the Department and the Recipient, and supersedes all previous documents, negotiations, understandings and undertakings related to its subject matter. ® The Contribution Agreement ® Schedule 1, entitled Statement of Planned Activities and Intended Results ® Schedule 2, entitled Description of Eligible Costs ® Schedule 3, entitled Terms of Payments and Financial Reporting ® Schedule 4, entitled Supplementary Terms and Conditions 2.0 INTERPRETATION In this Agreement, unless otherwise defined herein: 2.1 "Contribution" means a conditional transfer payment for a specified purpose pursuant to an Agreement that is subject to being accounted for and audited. 2.2 "Project' means the services and/or activities described in Schedule 1 which are directly delivered to Eligible Clients or which contribute indirectly to the resettlement, settlement and integration of Eligible Clients. 2.3 "Eligible Costs" means the costs described in Schedule 2 required by the Recipient to deliver the Project which are: A) incurred and paid by the Recipient in relation to the Project during the Funding Period or during the fiscal year in the case of multi -year funding; or B) incurred by the Recipient in relation to the goods and services purchased during the last two (2) months of the Funding Period and paid within 60 days of the conclusion of the Funding Period, and whose validity has been substantiated to the satisfaction of the Department by means of Supporting Documentation as described in clause 2.12; Restrictions i) Costs associated with validating credentials of Eligible Clients are not eligible. ii) Profit is neither a "cost' nor an "expense" and therefore may not be included as an Eligible Cost. C) deemed to have been incurred based on a funding formula. 2.4 "Capital Costs" means costs that the Recipient expects to incur and pay for capital assets purchased and/or leased (with the option to buy and where there is reasonable assurance that the lessee will obtain ownership at the end of the lease term), in whole or in part, and costing is in excess of $1000. Canada 353 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 2 OF 13 Capital assets must be recorded taking into account the quantity of items purchased and according to the "whole asset' approach which considers an asset to be an assembly of connected parts and where costs of all parts would be capitalized and amortized as one asset. 2.5 "Eligible Client' means: A) For the Settlement Program i) Permanent Residents of Canada. ii) Protected persons as defined in section 95 of the Immigration and Refugee Protection Act (IRPA). iii) Individuals who have been selected, inside or outside Canada, to become permanent residents (pending verifications) and who have been informed, by a letter from the Department. iv) Convention refugees and protected persons outside Canada who have been selected for resettlement in Canada by the Department. v) Live-in Caregivers: Temporary foreign workers who hold or received approval of a work permit under section 112 or received initial approval for permanent residence under section 113 of the Immigration and Refugee Protection Regulations (IRPR) are eligible for all settlement services with the exception of language training. Notes vi) "Individuals selected" described in A) iii) above means individuals who have received a positive eligibility decision on their application for permanent residence. vii) Eligible persons include both the principal applicant and eligible dependants (spouse and children). Restrictions viii) To access language training, persons must be of legal school -leaving age within their applicable province or territory. ix) Canadian citizens and non -permanent residents are not eligible persons. However, the Settlement Program provides opportunities for citizens and other residents of Canada to participate in settlement services to clients as volunteers. B) For the Resettlement Assistance Program (RAP), the following individuals and their accompanying dependents, as defined in the RAP Terms and Conditions: i) Government Assisted Refugees (GAR), including those sponsored under the Joint Assistance Sponsorship (JAS) Program. ii) Privately Sponsored Refugees (PSR), including Blended Visa Office -Referred (BVOR) clients, primarily for Port of Entry services. iii) Other groups admitted under a public policy established by the Minister and deemed eligible forth e RAP. iv) Eligible resettled refugees arriving on temporary resident permit. v) One -Year Window (OYW) arrivals. vi) Other groups admitted as members of any current or future humanitarian -protected person abroad class. Restrictions vii) RAP clients must reside, during the eligible period, in a province where the federal government administers RAP in order to remain eligible for assistance. 2.6 "Care for Newcomer Children" means unlicensed childcare that is provided to the children of Eligible Clients while they attend short term and/or long term services under the RAP or the Settlement Program. 2.7 For RAP, "Temporary Accommodation" means any form of accommodation, as deemed suitable by the Department, provided to house and shelter eligible clients following their arrival in Canada. 2.8 "Funding Period" means the period specified in Schedule 2 in the section entitled Duration of Activity/ Funding Period. 2.9 "Term of the Agreement' means the period during which this Agreement shall be effective, which period commences on the date the Agreement is signed by both parties and terminates one (1) year after the 354 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 3 OF 13 end of the Funding Period. 2.10 "Compliance Audit" means an independent assessment done by an accredited auditor in accordance with section 5815 of the Chartered Professional Accountants Canada Handbook, to provide assurance of a Recipient's compliance with the Agreement. Audited financial statements do not constitute a compliance audit. 2.11 "Fiscal Year" means the period commencing on April 1 st in one calendar year and ending on March 31 st in the next calendar year. 2.12 "Supporting Documentation" means but is not limited to original vouchers, invoices, statements of account, receipts, contracts, lease agreements, and timesheets or other data supporting the Recipient's actual costs incurred. The term also includes cancelled cheques, bank drafts and other forms of data supporting costs incurred. 3.0 CONTRIBUTION 3.1 In order to assist the Recipient in delivering the Project, and subject to the terms of the Agreement, the Department will make a Contribution to the Recipient in respect of the Eligible Costs of the Project of an amount not exceeding the lesser of: A) 100% of the Eligible Costs; or B) the Total Maximum Contribution specified in Schedule 2. 3.2 Costs are Eligible Costs for the purposes of this Agreement only if they are, in the opinion of the Department: 3.3 A) directly related to and necessary for the delivery of the Project; B) reasonable; and C) allowable expenditures. A) The Recipient will notify the Department in writing with respect to all proposed adjustments to the Agreement. Depending upon the extent and significance of the adjustments, prior written approval by the Department or an amendment to the Agreement may be required. B) The Recipient may reallocate Eligible Costs from the Capital Cost category to the Program Delivery category, without prior written approval, when the sum of all transfers is less than 5% of the Capital Cost category's original fiscal year budget, to a maximum of $50,000. The Recipient will notify the Department in writing following such a reallocation. C) The Recipient may reallocate Eligible Costs between existing line items within the same cost category, without prior written approval, when the sum of all transfers is less than 5% of the cost category's original fiscal year budget, to a maximum of $50,000. The Recipient will notify the Department in writing following such a reallocation. D) In addition to any decision made by the Department under 3.3 A), amendments to the Agreement will be required for: i) increases to the Total Maximum Contribution identified in Schedule 2; ii) the inclusion of new line items or cost categories; iii) increases in fiscal year allocations; iv) changes to the Funding Period; and v) changes related to the scope of the Project outlined in Schedule 1. E) With respect to Temporary Accommodation under the RAP, food and incidentals per person rates as set out in Schedule 2 cannot be changed without prior written approval of the Department. F) With respect to prior written approval described in subclauses 3.3 A), B), C) and E), the written communication between the Recipient and the Department shall constitute part of the Agreement and will supersede the relevant details indicated in the Agreement schedules. 3.4 In cases where the Recipient receives more funding than anticipated from any or all sources for the activities specified in the Agreement under clause 5.1, repayment of the pro rata share of the Contribution from the Department will be required. 3.5 Notwithstanding any other provision of this Agreement: A) No Contribution is payable by the Department in respect to any portion of the cost of any Eligible Costs for which the Recipient receives a rebate or reimbursement, except in the case of property 355 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 4 OF 13 tax rebate where the procedure is as follows: i) Recipients that receive a property tax rebate from a municipality must notify the Department in writing. ii) Recipients can retain the Department's share of the rebate on condition that they provide a description of how the funds will be used to support activities described in Schedule 1. iii) Should a Recipient wish to use the rebate for other programming, approval must first be obtained by the Department. iv) Recipients must retain records substantiating that the rebate has been reinvested to support activities described in Schedule 1. B) Only the portion of the provincial and/or federal tax (GST/HST) which is not refundable by the Canada Revenue Agency as an input tax credit or as a rebate can be claimed as an Eligible Cost. C) Any interest or any other income earned on advances of the Contribution shall be accounted for by the Recipient and considered part of the Contribution, be included in the calculation of claims, and may result in a repayment. 3.6 Notwithstanding clause 3. 1: A) No Contribution shall be paid for costs incurred with respect to a member of staff who is a member of the immediate family of an employee of the Recipient, or, if the Recipient is a corporation or an unincorporated association, who is a member of the immediate family of an officer or a director of the corporation or the unincorporated association, unless the Department is satisfied that the hiring of the staff was not the result of favoritism by reason of the staff's membership in the immediate family of the Recipient or officer or director of the Recipient, as the case may be. B) For the purposes of this section, "immediate family" means father, mother, stepfather, stepmother, foster parent, brother, sister, spouse, common-law partner, child (including child of common-law partner), stepchild, ward, father-in-law, mother-in-law, daughter-in-law, son-in-law, brother-in-law, sister-in-law or relative permanently residing with an employee of the Recipient, or officer or director of the Recipient, as the case may be. 4.0 CONDITIONS GOVERNING PAYMENT OF THE CONTRIBUTION 4.1 Subject to clauses 4.5 and 4.6 and an appropriation by Parliament of required funds, the Department will make payments of the Contribution by reimbursement, upon receipt from the Recipient of claims for Eligible Costs as identified in clause 2.3. 4.2 Any payment by the Department under this Agreement is subject to there being an appropriation for the fiscal year in which the payment is to be made and to there being funds available. Should the Department's funds be reduced by Parliament, the Department may reduce or cancel the Contribution. 4.3 Claims for reimbursement of Eligible Costs are to include Supporting Documentation, if requested by the Department, as described in clauses 6.6 and 6.7 and in Schedule 3 of this Agreement. 4.4 Claims from the Recipient for the Project should be submitted according to the reporting frequency specified in Schedule 3. 4.5 The Department may make advance payments of a Contribution in approved cases, where the Recipient has requested such payments and the request aligns with conditions specified in Schedule 3. 4.6 The Department shall not contribute to costs incurred prior to or subsequent to the Funding Period. 4.7 Any overpayments, unexpended balances, amounts disallowed on audit, amounts received by the Recipient from other sources that are in excess of total anticipated amounts under clause 5.1, and any refunds, rebates, and discounts that have been billed to the Department as part of actual costs, or other amounts owing to the Department by the Recipient shall be recognized as debts due to the Crown, and repaid within 30 days of receipt of notice to do so by the Department, after which time, the Interest and Administrative Charges Regulations will apply. 4.8 The Recipient declares and guarantees that at the time of signing the Agreement, it does not have an amount owing to the Crown. Should this change during the implementation of the Project, the Recipient shall promptly inform the Department by submitting a true and accurate list of all amounts owing. Amounts due to the Recipient under this Agreement may be set off against amounts owing to the Crown under legislation or previous agreements. 4.9 Where the Department determines that a change in reporting frequency identified in Schedules 3 and 4, or holdback amount identified in Schedule 3 is warranted, it will notify the Recipient in writing and provide details of any changes. The written communication between the Department and the Recipient 356 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 5 OF 13 shall constitute part of the Agreement and supersede the reporting frequency or holdback amount indicated in Schedule 3 of the Agreement. 4.10 The Department reserves the right not to process or pay Contribution funds in relation to claims for Eligible Costs submitted more than 60 days after the end of the Funding Period. 5.0 RECIPIENT'S OBLIGATIONS The Recipient also agrees to abide by the following obligations during the entire Funding Period and where relevant, during the entire Term of the Agreement: 5.1 To submit to the Department, prior to the start of the Agreement, a disclosure of all confirmed or potential sources of funding or in -kind contributions for program activities and/or Eligible Costs related to the Agreement. The Recipient shall notify the Department of any changes in funding from other sources for activities related to the Agreement set out in Schedule 1, and shall do so within 30 days of their occurrence. The Recipient shall submit any changes in the funding level through an updated Forecast of Cash Flow, or as otherwise specified in Schedule 3. 5.2 To keep all records and provide all services and/or activities during the Funding Period in a sustained, diligent, efficient and cost-effective manner, using qualified personnel. 5.3 To ensure that all personnel designated by the Recipient to deliver the Project described in Schedule 1 of this Agreement are authorized to work in Canada, familiar with the community they serve, and sufficiently familiar with Canadian sociocultural, economic and institutional realities to achieve the objectives identified in Schedule 1. 5.4 To adhere to the following Official Language requirements: ❑ A) To inform Eligible Clients of services available in the client's official language through other organizations. ® B) To organize activities, projects, and programs to forge ties between Canada's two official language communities. ® C) To annually consult with francophone minority communities about settlement and resettlement programming as determined appropriate by the Department. ❑ D) To offer services in both official languages based on an assessment of needs by the Department; this will include: i) making the public aware of services through greetings, recorded messages, announcements, broadcasts, signs, documents and other means of communication; and ii) provision of equal quality services for the public in both official languages, and for individuals in the language of their choice. ❑ E) Identify the Project participants/beneficiaries and take all necessary measures to communicate and provide Project -related services and/or activities to the participants/beneficiaries in English and in French as the case may require. ❑ F) The Department has deemed that the requirements under this section are not applicable. 5.5 To deliver the Project in accordance with all applicable laws, by-laws, regulations, guidelines and requirements and, prior to beginning the Project, obtain required permits, licences, consents, authorizations and insurance coverage, including directors' liability insurance and replacement insurance for capital assets, as may be required. 5.6 Recipients shall ensure that clients receive services in a safe, secure and respectful environment, and that their staff have the tools and training to ensure that this occurs. The Recipient must have in place, or will have in place within six (6) months of the Agreement start date, and shall maintain in place for the entire Funding Period of the Agreement, a code of conduct to prevent, investigate and respond, as required, to misconduct and wrongdoing. 5.7 To ensure that all members of the Board of Directors: A) are chosen in conformity with applicable federal and provincial legislation governing corporations or unincorporated associations; B) are fully informed about the management and operations of the Recipient; and C) are familiar with the principles of board governance. 5.8 To conform to the reporting requirements found in section 6.0 for each Agreement it has with the Department. 5.9 In the case of an Agreement that includes the provision of funds for Care for Newcomer Children 357 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 6 OF 13 services or licensed daycare services, the following requirements must be met: A) The Recipient must ensure all provisions of the national Care for Newcomer Children Requirements, and, where applicable, the provincial or territorial legislation(s) for licensed daycare are met, where dependent children receive such services on the same premises in which their parent(s) / guardian(s) receive services under the RAP or the Settlement Program. B) The Recipient must ensure that any contracted third party is licensed by the province or territory, where dependent children are placed in facilities on premises separate from those where their parent(s) / guardian(s) receive services under the RAP or the Settlement Program. 5.10 The Recipient shall notify the Department in writing within 14 days of any staff changes that relate to the management of this Agreement, as well as of any changes in the membership of the Board of Directors. 5.11 The Recipient shall notify the Department in writing of any changes to organizational policies which impact this Agreement. Should any changes to such policies occur during the course of the Agreement, the Recipient shall provide the Department with a copy of the amended policy within 14 days of the change. 5.12 Where special training needs of clients with disabilities have been identified, the Recipient shall submit to the Department for consideration a rationale and a budget for the cost of such enhancements. 6.0 MONITORING AND REPORTING REQUIREMENTS In order to fulfill the Department's management and accountability requirements, the Recipient further agrees to abide by the following obligations: 6.1 During the entire Funding Period, the Recipient will: A) ensure that authorized representatives of the Department are permitted reasonable access to all premises where the Project is being delivered under this Agreement, or which provide support for this Project, in order to monitor all aspects of the Recipient's compliance with its obligations under this Agreement, including the delivery of services in both official languages where applicable; and B) keep and maintain a secure data collection system containing protected information, as required by the Department, about each Eligible Client to whom services are provided. 6.2 During the entire Term of the Agreement, the Recipient will: A) keep and maintain proper books and records in accordance with generally accepted accounting principles and business practices, of all assets and liabilities held, all revenues from all sources, and all expenses incurred and paid out in connection with this Agreement; and B) retain all Supporting Documentation relating to the financial books and records. 6.3 During the entire Term of the Agreement and for each reporting period identified in Schedules 3 and 4, the Recipient shall submit claims for Eligible Costs with Supporting Documentation if requested by the Department, and complete statistical and narrative reporting against progress towards and achievement of expected results, which are satisfactory to the Department in scope, detail, format and frequency. 6.4 The Recipient shall complete an annual project performance reporting exercise by submitting an annual report. Recipients delivering direct services under the Settlement Program must submit an annual report using the template provided by the Department. Annual reports must be submitted to the Department at the end of the Agreement for single -year agreements (or less), or at the end of each fiscal year for multi -year agreements. 6.5 During the entire Term of the Agreement, and for seven (7) years afterwards, the Recipient agrees to: A) make such information as described in clauses 6.1, 6.2, 6.3 and 6.4, regardless of format, available for inspection, audit and monitoring by representatives of the Department, who may make copies thereof and take extracts therefrom, ensuring that all protected information is protected as per departmental policies; B) make available facilities for any such inspection, audit and monitoring by representatives of the Department; C) show evidence of a documented disposition procedure and provide any other information that may be required with respect to the books and records described in clauses 6.1, 6.2, 6.3 and 6.4; D) send copies of any information to the Department, which has been collected on its behalf, at such intervals, in such format and by such means as the Department may specify, for use in monitoring and evaluating the Project; and E) safeguard appropriately for its level of classification or designation, collected protected information 358 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 7 OF 13 as described in subclause 6.1 B). Protected information must be retained only for as long as the client continues to receive services, after which all copies of the record must be immediately destroyed. The manner of destruction must be appropriate to the level of classification or designation and the storage media in which it has been retained. If the Recipient is required to maintain the record for uses outside of the Agreement, all identifying information specific to the Department must be removed. 6.6 During the entire Term of the Agreement, and for greater certainty further to subclause 6.1 B), the Recipient shall comply with instructions by the Department relating to performance measurement, research, evaluation, monitoring and policy analysis of the program under which it is receiving funding. The Recipient also agrees: ❑ A) to use the system(s) provided by the Department and maintain a comprehensive security awareness training program available to all staff; or ® B) that additional requirements under this section as identified by the Department, are not applicable. 6.7 The Recipient shall submit to the Department, within 60 days of the end of the Funding Period or as otherwise specified in Schedule 3 or 4: A) a final claim for Eligible Costs with Supporting Documentation if requested by the Department; B) a final financial report detailing actual expenditures incurred as well as a declaration of revenues received, including in -kind contributions, for the Project; and C) a Final Progress Report as detailed in Schedule 4. 6.8 Recipients shall be subject to monitoring by the Department, as set out in clauses 6.1 to 6.7, in relation to their planned objectives and deliverables. The Department will assess whether satisfactory outcomes have been achieved; whether demand for a particular service still exists; and whether administrative documents, reports, financial records and statements, and any other required documentation, are in order. 6.9 The Department may request a Compliance Audit of the Project to ensure compliance with the terms of the Agreement. The scope and timing of such an audit will be determined by the Department. 7.0 PRIVACY AND SECURITY OBLIGATIONS 7.1 Personal information collected or maintained by the Recipient within Canada is subject to the provisions of the applicable federal, provincial or territorial privacy and access to information legislation or the Personal Information Protection and Electronic Documents Act (PIPEDA). Recipients delivering a Project overseas will: A) comply with the current national or domestic laws of the countries where services are being provided, including any laws that may be enacted after the beginning of the Agreement; and B) acknowledge that nothing in the applicable laws derogates from, prevents compliance with or conflicts with the requirements of this Agreement. The Recipient must notify the Department immediately, and where possible in advance, of a change to applicable laws that derogates from, prevent compliance or conflict with the requirements of this Agreement. 7.2 Recipients will limit their collection of personal information to only that which is necessary for them to carry out their programming, and must be proportional to the benefit to be derived from the expected outcomes of the Project. 7.3 Personal information shall be treated as confidential and not disclosed to any person, other than the client, except in accordance with applicable law. When requested, the Recipient shall provide clients with reasonable access to view their information that was collected for purposes of programming funded by the Department. 7.4 The Recipient shall take all security measures reasonably necessary to protect any such personal information using methods that are generally used by prudent public and private sector organizations. These measures must meet the requirements, standards or guidelines found in applicable policy, directives or protocols of the Government of Canada, including those set out in any instructions issued by the Department for the protection of personal information against unauthorized use or disclosure. Recipients delivering a Project outside Canada will ensure cross -border transmission of personal 359 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 8 OF 13 information between its offices in countries where the Recipient is delivering the Project and fulfilling its obligations pursuant to this Agreement must only be done when necessary or required for the performance of the Project and shall be in compliance with all sections of this Agreement. If requested by the Department, the Recipient shall provide a description of cross -border transmission of information that is necessary for the Project. 7.5 Where the Recipient has reasonable grounds to believe that there has been loss, theft, unauthorized access, disclosure, copying, use, modification or destruction of personal information, or any incident that may jeopardize the security or integrity of personal information, it will immediately notify the Department of the privacy breach. The Recipient will also immediately take all reasonable steps to stop and contain the impact of the breach, assess and resolve the problem, and prevent its recurrence. The Department may direct the Recipient to take specified steps to resolve and prevent a recurrence. 7.6 Despite the provisions of this Agreement, in the event that the Recipient is compelled to produce any personal information pursuant to any applicable legislation, regulation, or any order of any court, tribunal, administrative body or other authority with jurisdiction, whether in or outside of Canada, the Recipient shall notify the Department and the affected client immediately, and where possible, in advance. 7.7 In addition to the above as it relates to clause 6.6 specifically, the Recipient agrees: ❑ A) i) to make available the "Gathering Information" pamphlet that explains the purpose and privacy implications of collecting a client's information; ii) if the client is illiterate, to verbally transmit the contents of the pamphlet; and iii) to comply with the systems' related privacy and security manual and other departmental policies and instructions governing security matters. ® B) that additional requirements under this clause as identified by the Department, are not applicable. 7.8 Without limiting the generality of section 9.0, the Recipient shall be liable for claims resulting from the breach of the privacy and confidentiality of the information in the course of the performance by the Recipient of its obligations pursuant to this Agreement. The Department will not accept any liability for damage, loss, injury, or claims of any kind, including, but not limited to, breach of confidentiality of information arising out of the performance by the Recipient of its obligations pursuant to this Agreement. The Department is not liable for the physical safekeeping and privacy of documents provided to the Recipient while such documents are in the possession or control of or under the responsibility of the Recipient, or in the process of being transferred or transmitted to the Department. 7.9 Any violation of the above -noted clauses will be considered a default pursuant to section 8.0 of the Agreement. 8.0 DEFAULT 8.1 The following constitute events of default: A) The Recipient becomes bankrupt or insolvent, is placed in receivership, or takes the benefit of any statute relating to bankrupt or insolvent debtors. B) An order is made or a resolution is passed for the winding up of the Recipient, or the Recipient is dissolved. C) The Recipient is in breach of the performance of, or compliance with, any term, condition or obligation on its part to be observed or performed. D) The Recipient has submitted false, misleading, or inaccurate information to the Department. E) In the opinion of the Department, the Recipient has failed to deliver the Project in an acceptable manner. F) The activities or anticipated activities of the Recipient are contrary to Canadian law. 8.2 In the event of default and after consultation with the Recipient, the Department may direct that changes be made to the Project. 8.3 The Department may avail itself of either or both of the following remedies, as well as any remedies otherwise available: A) by written notice to the Recipient in the event of default, immediately suspend any obligation by the Department to contribute or continue to contribute to the Eligible Costs of the Project as per clauses 3.1 and 3.2 of this Agreement, including any obligation to pay an amount owing prior to the date of such notice, until such default is corrected to the Department's satisfaction; and/or B) by written notice to the Recipient in the event of default, immediately terminate any obligation to CM 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 9 OF 13 contribute or continue to contribute to the Eligible Costs of the Project as per clauses 3.1 and 3.2 of this Agreement, including any obligation to pay an amount owing prior to the date of such notice, where the Department is of the opinion that the needs of Eligible Clients would be better met by such termination or has determined that it would not otherwise be in the Department's interest to continue with its obligation to contribute. 8.4 In the event of default and termination of the Agreement by the Department: A) the Recipient shall dispose of capital assets acquired with the Contribution as outlined in section 11.0 of this Agreement; and B) the Department shall recover any amount remaining from any advance payment, as described in Schedule 3, as well as any debts due to the Crown as referred to in clause 4.7. 8.5 The fact that the Department refrains from exercising a remedy it is entitled to exercise under this Agreement shall not be considered to be a waiver of such right. The partial or limited exercise of a right conferred on the Department by this Agreement shall not prevent the Department in any way from later exercising any other right or remedy under this Agreement or other applicable law. 9.0 THIRD PARTY 9.1 This Agreement is for a Contribution to the Recipient only, and nothing in it or done pursuant to it is to be construed as constituting the Recipient as the Department's agent, representative, employee or co -venturer. The Recipient is in no way authorized to make a promise, agreement or contract on behalf of the Department. 9.2 The Recipient shall indemnify and save harmless the Department from and against all claims, losses, damages, costs and expenses related to the performance by the Recipient of its obligations pursuant to this Agreement, including, but not limited to, the following: A) non-payment by the Recipient of debts, loans, capital leases or other obligations to third parties, including but not limited to the case that the Recipient becomes bankrupt or insolvent or is placed in receivership; B) any injury or death of a person; C) any loss or damage to property caused or alleged to be caused by the Recipient or its servants or agents in carrying out the Project; D) any settlement for wrongful dismissal by the Recipient; and E) any infringement of the third party's Intellectual Property Rights, including claims that stem from the use of hardware or software provided to the Recipient by the Department or acquired by the Recipient with funds pursuant to this Agreement. 9.3 As soon as the existence of a claim from a third party as described in subclause 9.2 E) is made known to the Department, the Department is entitled to prohibit the Recipient from making further use of the hardware or software described above and to issue instructions to the Recipient regarding such claims. If the Recipient does not comply with instructions issued by the Department pursuant to subclause 9.2 E) and this provision, then the Department is entitled to terminate the present Agreement pursuant to section 8.0. 9.4 Where the Recipient is an unincorporated association, it is understood and agreed by the persons signing this Agreement on behalf of the Recipient, that they shall also be personally, jointly and severally liable for any and all obligations of the Recipient under this Agreement, and for any debt that may become due to the Department hereunder. 9.5 The Recipient shall not assign this Agreement in whole or in part without the prior written consent of the Department, and any assignment made without that consent is void and of no effect. 9.6 When the Recipient contracts for products or services which are the subject of this Agreement, the Recipient must: A) use a fair process in obtaining price quotes from prospective contractors; B) ensure value for money; C) retain, and readily provide to the Department on request, copies of all contracts with third parties; and D) maintain accurate records of all transactions with third parties, and provide the Department with reasonable access to these records: i) during the entire Term of the Agreement; and ii) for seven (7) years afterwards. 361 'Immigration, Refugees Immigration, Refuges PAGE 10 OF 13 and Citizenship Canada et Citoyennete Canada 9.7 The Recipient must ensure that any contract entered into with third parties is consistent with this Agreement, including the following terms and conditions: A) Nothing in this contract or in work done pursuant to it is to be construed as creating a contractual relationship of any kind between the Department and the third party. B) The third party must make available Supporting Documentation, and books and records to the Department's representatives for inspection and audit. C) The third party must be bound to the same privacy and security obligations that apply to the Recipient under section 7.0 of the Agreement. 10.0 INTELLECTUAL PROPERTY 10.1 "Intellectual Property Right" means any Intellectual Property Right recognized by law, including any protected through legislation or arising from protection of information as a trade secret or as confidential information. 10.2 Where in the course of carrying out the Project, the Recipient produces any work subject to Intellectual Property Rights, these rights shall vest in the Recipient. 10.3 Recipients should, or must if applicable, negotiate a copyright licence with one of the Canadian copyright licensing agencies to have rights on all copyright materials for use by clients and recipient staff. 10.4 Where the production of the work has been funded, in whole or in part, by the Contribution made by the Department under this Agreement, the Recipient hereby grants to the Department a non-exclusive, fully paid and royalty -free licence to reproduce, distribute and translate the work for purposes of carrying out the Department's program objectives. 10.5 With respect to any work licensed under this section, the Recipient: A) warrants that the work shall not infringe on the copyrights, trademarks or proprietary rights of others; B) agrees to indemnify and save harmless the Department from all costs, expenses and damages arising from any breach of any warranty given in subclause 10.5 A) of this Agreement; and C) shall include an acknowledgment, in a form satisfactory to the Department, on any work which is produced by it with funds contributed by the Department under this Agreement, acknowledging that the work was produced with funds contributed by the Department and identifying the Recipient as being solely responsible for the content of such work. 10.6 If the Recipient is involved, either in or out of court, in a claim by a third party relating to the infringement of its Intellectual Property Rights, the Recipient must inform the Department immediately in writing of the claim. 10.7 Section 10.0 shall remain in effect after the expiration of the Agreement. 11.0 CAPITAL ASSETS With regard to capital assets purchased in whole or in part with Contribution funds, the Recipient and the Department agree that ownership of such assets rests with the Recipient, subject to the following: 11.1 That such assets be insured for replacement costs. 11.2 That an inventory of capital assets purchased with Department funds (or purchased with insurance funds, when insurance costs have been paid with funds from the Department) be kept by the Recipient. The inventory should include sufficient information such as the purchase date, purchase price, make, model and serial number for easy identification of the assets. 11.3 That the Recipient neither sell, transfer, mortgage, lease nor otherwise dispose of any capital assets purchased with such funds without the prior written consent of the Department. 11.4 That at the termination of the Agreement and ending of the funding relationship between the Department and the Recipient, the latter will ensure that any capital assets which have been purchased with Department funds (or purchased with insurance funds, when insurance costs have been paid with funds from the Department) but which have not been physically incorporated into the premises of the Recipient, at the discretion of the Department: A) be sold, at fair market value, and that the revenue be applied to eligible Project costs, which may no longer be claimed for reimbursement; 362 'Immigration, Refugees Immigration, Refuges PAGE 11 OF 13 and Citizenship Canada et Citoyennete Canada B) be turned over to a registered charitable organization; C) assigned to another recipient funded by the Department; or D) be retained by the Recipient. 12.0 GENERAL 12.1 This Agreement may be signed in counterparts, each of which when taken together, will constitute an original Agreement. 12.2 The terms of this Agreement take effect as of the date the Agreement is signed by the last of the two parties to do so. 12.3 This Agreement is binding on the parties and their successors and permitted assigns. 12.4 This Agreement may be amended with the mutual consent of the Recipient and the Department. To be valid, any amendment must be in writing, in a form satisfactory to the Department, and signed by the designated representatives of both the Recipient and the Department. Any amendment shall take effect when signed by the last of the two parties to do so. 12.5 The Department may, by notice to the Recipient, suspend or terminate this Agreement, in whole or in part, at any time without cause upon not less than one month written notice of intention to terminate. In the event of a suspension, the Department will notify the Recipient of the obligations to be met. In the event of a termination notice being given by the Department under this section: iwv A) the Recipient shall make no further commitments in relation to the Agreement and shall cancel or otherwise reduce, to the extent possible, the amount of any outstanding commitments in relation thereto; B) all Eligible Costs incurred by the Recipient up to the date of termination, not exceeding the maximum amount of the Department's Contribution payable under this Agreement, will be paid by the Department, including the Recipient's costs of, and incidental to, the cancellation of obligations incurred by it as a consequence of the termination of the Agreement; provided that payment and reimbursement under this paragraph shall only be made to the extent that it is established to the satisfaction of the Department that the costs mentioned herein were actually incurred by the Recipient and the same are reasonable and properly attributable to the termination of the Agreement; and C) the amount of any Contribution funds which remain unspent shall be promptly repaid to the Department, and such amounts shall be a debt due to the Crown. All communication with respect to this Agreement shall be sent: A) in the case of the Department, to: Director of Integration 495 Prospect Street Fredericton, NB, E313 9M4 Canada B) in the case of the Recipient, to: David Dobbelsteyn Ville de Saint John 15 Market Square Saint John, NB, E2L 41_1 Canada 12.7 Any communication that is delivered will have been received on delivery; any communication sent by facsimile will be deemed to have been received one (1) day after having been sent; any communication sent by email will be deemed to have been received on the date that the email is sent, and any communication mailed by regular mail will be deemed to have been received five (5) working days after being mailed. The Recipient represents and warrants that the signatories to this Agreement have been duly authorized to execute and deliver this Agreement on its behalf. 12.8 The Recipient represents and warrants that the execution, delivery and performance of this Agreement have been duly and validly authorized and when executed and delivered will constitute a legal, valid and binding obligation of the Recipient enforceable with its terms. 12.9 The Recipient represents and warrants that it is under no obligation, prohibition or other disability, nor is it subject to or threatened by any actions, suits or proceedings which could or would prevent compliance with this Agreement and undertakes to advise the Department forthwith of any such occurrence during 363 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 12 OF 13 the Term of the Agreement. 12.10 The Recipient and the Department expressly disclaim any intention to create a partnership, joint venture or joint enterprise. Nothing arising out of, related to, occasioned by or attributable to, in any way, to this Agreement shall constitute or be deemed to constitute that the Recipient and the Department are related as partners, joint venturers or principal and agent in any way or for any purpose. 12.11 Neither the Department, nor its employees, officers or agents, will have any liability in respect of claims of any nature, including claims for injury or damages, made by any person involved in the activities that are required of the Recipient in carrying out its obligations under this agreement, and the Recipient will indemnify and save harmless the Department, its employees, officers and agents, in respect of any such claims. 12.12 The Recipient will obtain any necessary third party authorizations, as required to carry out its obligations under this Agreement, from third parties who have Intellectual Property Rights or other rights affected by this Agreement. The Department will have no liability in respect of claims from any person relating to such rights, and the Recipient will indemnify and save harmless the Department from any such claims. 12.13 When direct services and/or activities are provided to clients, the Recipient shall erect at a suitable location on its premises a sign in both of Canada's official languages, which the Department considers appropriate, indicating that the Recipient's Project is funded by the Government of Canada. 12.14 Where in the opinion of the Department there is a demand, the Recipient will ensure that services and documentation intended for public use be available in both official languages. 12.15 In consultation with the Department, the Recipient shall ensure visibility and provide public recognition of the Government of Canada's support to the Project in publications, speeches, press releases, websites, social media or other communication material. This shall be done in a manner compliant with Canada's Federal Identity Program using a visual identifier and/or wording satisfactory to the Department, for example: "This project is funded [in part] by the Government of Canada / Ce projet est finance [en partie] par le gouvernement du Canada". The Department may, at its discretion, withdraw the requirement for recognition of federal funding, and will consult the Recipient to determine when the public recognition activities may resume. 12.16 Materials copyrighted to the Department and the Crown in right of Canada, remain the property of these institutions. 12.17 The Recipient warrants that it has not, nor has any person on its behalf, offered or promised to any official or employee of Her Majesty the Queen in Right of Canada, for or with a view to obtaining this Agreement any bribe, gift or other inducement, and it has not nor has any person on its behalf employed any person to solicit this Agreement for a commission, fee or any other consideration dependent upon the execution of this Agreement. 12.18 No member of the Senate or the House of Commons shall be admitted to any share or part of this Agreement or to any benefit arising from it that is not otherwise available to the public. 12.19 No current or former public servant or public office holder to whom the Conflict of Interest Act, the Conflict of Interest and Post -Employment Code for Public Office Holders, the Policy on Conflict of Interest and Post -Employment or the Values and Ethics Code for the Public Sector applies shall derive direct benefit from this Agreement unless the provision or receipt of such benefits is in compliance with such legislation and codes. 12.20 Any person lobbying on behalf of the Recipient must be registered pursuant to the Lobbying Act, as amended from time to time. 12.21 The parties agree that unless otherwise specified in writing in this Agreement, the law of the province or territory where the Recipient's head office is located shall be the applicable provincial or territorial law. 12.22 The Recipient shall declare in writing to the Department if the Recipient, members of its Board of Directors or any of its officers or employees engaged in this Project: A) were convicted during a period of three (3) years prior to the Agreement by a court of law in Canada or in any other jurisdiction for an offence involving bribery or corruption; or B) are under sanction, for an offence involving bribery or corruption, imposed by a government or a governmental organization. The Department may terminate the Agreement forthwith for default where it is found that the Recipient has omitted to declare, prior to entering into, or during the Funding Period of the Agreement, such 364 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 13 OF 13 conviction or sanction. 12.23 The Recipient acknowledges that the name of the Recipient, the amount of the Contribution and the general nature of the Project funded may be made publicly available by the Department in accordance with the Government of Canada's commitment to proactively disclose the awarding of grants and contributions. 12.24 The Recipient acknowledges that the Department is subject to the Access to Information Act, RSC 1985, Chapter A-1, and information obtained by the Department pertaining to this Agreement may be disclosed to the public upon request under the aforementioned act. The Recipient acknowledges having read and understood the Agreement in its entirety and agrees with its contents. The parties hereto have signed this Agreement through duly authorized representatives: Recipient Name (Print) Position (Print) Signature Date (YYYY-MM-DD) Department Name (Print) Position (Print) Recipient Name (Print) Position (Print) Signature Date (YYYY-MM-DD) Signature Date (YYYY-MM-DD) 365 Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 1 OF 2 Settlement Program — Schedule 1 Statement of Planned Activities and Intended Results Recipient Name: Agreement Number: City of Saint John S211600015 Agreement Title: Amendment Number: Saint John Local Immigration Partnership PROJECT DESCRIPTION AND OBJECTIVE(S): The Saint John Local Immigration Partnership (SJLIP) is a collaborative community initiative, in Saint John New Brunswick, designed to improve newcomer settlement and integration outcomes, and to strengthen Saint John's ability to better address the needs of newcomers.The SJLIP brings together stakeholders from Saint John to develop a coordinated settlement, integration, and retention strategy. Objectives: - To engage a strong and diverse Saint John LIP Council made of up members with experience in settlement and integration of newcomers; - To strengthen and support the SJLIP Working Groups, and work collaboratively to improve outcomes for newcomers; - To increase organizational capacity of member organizations to better support immigrants moving to Saint John; To work collaboratively to improve settlement outcomes and increase immigrant retention rates; To increase public awareness of the importance of immigration and promote a more inclusive & welcoming community; - To foster greater awareness of the activities, services and programs that the SJLIP partners offer in Greater Saint John, and work together to overcome gaps in services; - To form partnerships at the community level. PLANNED ACTIVITIES: Activity: 1.0 - Indirect - Local Immigration Partnership Activity Narrative: Saint John Local Immigration Partnership (SJLIP) Council Meetings and working groups. The LIP Council will meet six times a year and focus on developing a five-year strategy, discussing research areas and gaps and opportunities. Specific working groups will also be organized surrounding identified priorities. This will be ongoing throughout years 1-5. Output Description: SJLIP Council is estbalished and inclusive. Activity: 2.0 - Indirect - Local Immigration Partnership Activity Narrative: Implementation of the SJLIP communications plan, and update when necessary. The primary goals of the communications plan will be to help inform the local community regarding what is a LIP and the benefits it provides to the community, educating the community on the value of newcomers and what Saint John can provide to newcomers, identify and share newcomer success stories, and encourage the development of a more welcoming and inclusive community. This will be implemented through the SJLIP website, social media platforms, and various communication tools. Output Description: Communications plan implemented. Activity: 3.0 - Indirect - Local Immigration Partnership Activity Narrative: Support LIP partners in the development and implementation of collaborative projects; including logistical support with the coordination of partners, assistance with identifying and securing funds, etc. Output Description: LIP partners are supported. Activity: 4.0 - Indirect - Local Immigration Partnership Activity Narrative: Participate in local committees to raise awareness of newcomers' needs in the community and inform decisions and priorities. Output Description: Local committees were attended. Activity: 5.0 - Indirect - Local Immigration Partnership Activity Narrative: Conduct local research to validate initial SJLIP strategy and assist with new 5 year City C.. Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 2 OF 2 of Saint John Population Growth Strategy. SJLIP will play a pivotal role in the research, engagement, design, and delivery of this new overall growth strategy for the City of Saint John. This will be conducted in year 2 and 3. Output Description: Research conducted. SPECIFIC OUTCOMES: • Broad -based partnerships developed for planning and setting community priorities. • Enhanced engagement of a diversity of members in settlement and integration of newcomers • Community and newcomer needs assessed in a coordinated manner, and enhanced awareness of needs among a wider array of local actors. • Increased capacity to support the integration of newcomers and foster welcoming communities, including welcoming and receptive labour markets at the community level. EXPECTED OUTCOMES: • Partners & stakeholders are engaged in settlement and implement strategies to address newcomers needs 367 Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 1 OF 6 Settlement Program — Schedule Description of Eligible Costs Recipient Name: Agreement Number: City of Saint John S211600015 Address: 15 Market Square Saint John, NB, Canada E21- 4L1 Telephone Number: Facsimile Number: Amendment Number: Agreement Title: Saint John Local Immigration Partnership Duration of Activity / Funding Period From: 2020-09-01 To 2025-03-31 Fiscal Years: 5 YYYY-M M-D D YYYY-MM- D D DEPARTMENTAL CONTRIBUTION — SEE ATTACHED SHEET FOR COST CATEGORY DETAILS FISCAL YEAR PROGRAM DELIVERY ADMINISTRATIVE CAPITAL TOTAL CONTRIBUTION 2020-2021 $47,458 $4,670 $0 $52,128 2021-2022 $72,661 $7,339 $0 $80,000 2022-2023 $72,602 $7,398 $0 $80,000 2023-2024 $72,542 $7,457 $0 $79,999 2024-2025 $72,481 $7,516 $0 $79,997 TOTAL COST CATEGORY $337,744 $34,380 $0 $372,124 C.: Immigration, Refugees Immigration, Refuges PAGE 2 OF 6 and Citizenship Canada et Citoyennete Canada Recipient Name: Agreement Number: City of Saint John S211600015 Fiscal Year: 2020-2021 PROGRAM DELIVERY oty Line ltem Description/Details Amount for Fiscal Year Salaries, wages and benefits SJLIP Project Manager - IRCC $31,315 funding up to $31,315 Salaries, wages and benefits MERCs/Benefits - IRCC funding $4,570 up to $4,570 Research Research, Outreach and Data $5,000 Collection Training and professional Costs associated with attending $750 development P2P Conference and Atlantic LIP Learning Conference Travel, accommodation and related Travel costs associated with $1,200 costs attending meetings, consultations and conferences Delivery assistance Office supplies, room / facility $2,147 expenses, small meeting expenses, printing Publicity Branding / printing materials / $2,000 LIP promotional materials GST/HST 28.57% of Eligible GST/HST $476 Total - Program Delivery: 1$47,458 ADMINISTRATIVE Line Itorh Descripti ' n/Details Arrrount for Fiscal Year Negotiated Administrative Rate 9.84% $4,670 Total - Administrative: I$4,670 Total Maximum Contribution for Fiscal Year: $52,128 C.• Immigration, Refugees Immigration, Refuges PAGE 3 OF 6 and Citizenship Canada et Citoyennete Canada Recipient Name: Agreement Number: City of Saint John S211600015 Fiscal Year: 2021-2022 PROGRAM DELIVERY oty Line ltem Description/Details Amount for Fiscal Year Salaries, wages and benefits SJLIP Project Manager - 12 $56,780 month contract - IRCC funding up to $54,280 International Summer Student - Co-op Placement 9 weeks - IRCC funding up to $2,500 Salaries, wages and benefits MERCs/Benefits - IRCC funding $6,565 up to $6,565 Research Research, outreach and data $2,000 collection Training and professional Costs associated with attending $680 development P2P Conference and Atlantic LIP Learning Conference Travel, accommodation and related Travel costs associated with $1,800 costs attending meetings, consultations and conferences Delivery assistance Office supplies, room / facility $2,500 expenses, small meeting expenses, printing Publicity Branding / printing materials / $1,901 LIP promotional materials GST/HST 28.57% of eligible GST/HST $435 Total - Program Delivery: 1$72,661 ADMINISTRATIVE Line Item Description/Details Amount for Fiscal Year Negotiated Administrative Rate 10.1 % $7,339 Total - Administrative: I$7,339 Total Maximum Contribution for Fiscal Year: $80,000 370 Immigration, Refugees Immigration, Refuges PAGE 4 OF 6 and Citizenship Canada et Citoyennete Canada Recipient Name: Agreement Number: City of Saint John S211600015 Fiscal Year: 2022-2023 PROGRAM DELIVERY oty Line ltem Description/Details Amount for Fiscal Year Salaries, wages and benefits SJLIP Project Manager - 12 $56,824 month contract - IRCC funding up to $54,280 International Summer Student - Co-op Placement 9 weeks - IRCC funding up to $2,544 Salaries, wages and benefits MERCs/Benefits - IRCC funding $6,565 up to $6,565 Research Research, outreach and data $2,000 collection Training and professional Costs associated with attending $680 development P2P Conference and Atlantic LIP Learning Conference Travel, accommodation and related Travel costs associated with $1,800 costs attending meetings, consultations and conferences Delivery assistance Office supplies, room / facility $2,450 expenses, small meeting expenses, printing Publicity Branding / printing materials / $1,852 LIP promotional materials GST/HST 28.57% of eligible GST/HST $431 Total - Program Delivery: 1$72,602 ADMINISTRATIVE Line Item Description/Details Amount for Fiscal Year Negotiated Administrative Rate 10.19% $7,398 Total - Administrative: I$7,398 Total Maximum Contribution for Fiscal Year: $80,000 371 Immigration, Refugees Immigration, Refuges PAGE 5 OF 6 and Citizenship Canada et Citoyennete Canada Recipient Name: Agreement Number: City of Saint John S211600015 Fiscal Year: 2023-2024 PROGRAM DELIVERY oty Line ltem Description/Details Amount for Fiscal Year Salaries, wages and benefits SJLIP Project Manager - 12 $56,868 month contract - IRCC funding up to $54,280 International Summer Student - Co-op Placement 9 weeks - IRCC funding up to $2, 588 Salaries, wages and benefits MERCs/Benefits - IRCC funding $6,565 up to $6,565 Research Research, outreach and data $2,000 collection Training and professional Costs associated with attending $680 development P2P Conference and Atlantic LIP Learning Conference Travel, accommodation and related Travel costs associated with $1,800 costs attending meetings, consultations and conferences Delivery assistance Office supplies, room / facility $2,450 expenses, small meeting expenses, printing Publicity Branding / printing materials / $1,752 LIP promotional materials GST/HST 28.57% of eligible GST/HST $427 Total - Program Delivery: 1$72,542 ADMINISTRATIVE Line Item Description/Details Amount for Fiscal Year Negotiated Administrative Rate 10.28% $7,457 Total - Administrative: I$7,457 Total Maximum Contribution for Fiscal Year: $79,999 372 Immigration, Refugees Immigration, Refuges PAGE 6 OF 6 and Citizenship Canada et Citoyennete Canada Recipient Name: Agreement Number: City of Saint John S211600015 Fiscal Year: 2024-2025 PROGRAM DELIVERY oty Line ltem Description/Details Amount for Fiscal Year Salaries, wages and benefits SJLIP Project Manager - 12 $56,914 month contract - IRCC funding up to $54,280 International Summer Student - Co-op Placement 9 weeks - IRCC funding up to $2,634 Salaries, wages and benefits MERCs/Benefits - IRCC funding $6,565 up to $6,565 Research Research, outreach and data $2,000 collection Training and professional Costs associated with attending $680 development P2P Conference and Atlantic LIP Learning Conference Travel, accommodation and related Travel costs associated with $1,800 costs attending meetings, consultations and conferences Delivery assistance Office supplies, room / facility $2,400 expenses, small meeting expenses, printing Publicity Branding / printing materials / $1,700 LIP promotional materials GST/HST 28.57% of eligible of GST/HST $422 Total - Program Delivery: 1$72,481 ADMINISTRATIVE Line Item Description/Details Amount for Fiscal Year Negotiated Administrative Rate 10.37% $7,516 Total - Administrative: I$7,516 Total Maximum Contribution for Fiscal Year: $79,997 373 Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 1 OF 1 Settlement Program — Schedule 3 Terms of Payments and Financial Reporting Recipient Name: Agreement Number: City of Saint John S211600015 Agreement Title: Amendment Number: Saint John Local Immigration Partnership TERMS OF PAYMENTS Reimbursements 1.0 The Department will make payments of the Contribution amount by reimbursements, upon receipt from the Recipient of claims for Eligible Costs, with Supporting Documentation if requested by the Department, in accordance with clause 4.1 of the Agreement. 2.0 During the course of the Agreement, should it be determined that advance payments are warranted for achievement of program objectives, the Department will ensure that the conditions governing the need for advances as per clause 4.5 are met. For the purposes of advance payments, the written communication between the Recipient and the Department shall constitute part of the Agreement and will supersede the advance payment clause. Holdback 3.0 An amount of up to 5% of the total Agreement value will represent the holdback and be disbursed to the Recipient as a final payment on receipt and approval by the Department of the final claims for Eligible Costs and deliverables, including any requested Supporting Documentation. Material submitted to the Department to support release of the holdback must be certified by a duly authorized representative of the Recipient. FINANCIAL REPORTING 4.0 The Recipient agrees to submit to the Department: Forecast of Cash Flow 4.1 An initial Forecast of Cash Flow prior to the beginning of each Fiscal Year and following any amendment to the Agreement. The Department may request submission of a revised Forecast of Cash Flow should significant variances to projected spending occur. Claims 4.2 Claims for reimbursement of Eligible Costs that support the achievement of objectives shall be submitted by the Recipient, for each Fiscal Year of the Agreement, as follows: 1. April, May, June and July 2. August and September 3. October and November 4. December, January, and February 5. March Claim 4 (December, January, and February) shall be accompanied by an estimate of anticipated costs for March. A revised Forecast of Cash Flow should be used for this purpose. Claims are to be submitted to the Department within 15 days of the end of the reporting period. Annual Audited Financial Statements 4.3 For multi -year agreements, the Recipient shall submit to the Department, the organizational annual financial statements (audited if available), within six (6) months of the Recipient's fiscal year end date. 374 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 1 OF 2 Settlement Program — Schedule 4 Supplementary Terms and Conditions Recipient Name: Agreement Number: City of Saint John S211600015 Agreement Title: Amendment Number: Saint John Local Immigration Partnership The provisions of this Schedule shall be interpreted in conformity with those of the Agreement concluded by the Department with the Recipient. Lobbying and Advocacy: 1. Further to clause 8.1 of the Agreement, the parties agree that the Recipient will be considered in default of the Agreement should any of the services and/or activities contemplated by this Agreement, such as, but not limited to, advisory committee meetings, outreach and networking efforts, content development workshops, or the final product(s) be organized with the express intent of lobbying or advocating against government policies or programs. The parties further agree that where the Recipient has shared plans with the Department about planned services and/or activities and the Department has raised no objections in advance about those plans, they will not be considered to be organized with the express intent of lobbying or advocating against government policy or programs, provided that they are carried out with strict adherence to the pre -approved plans shared with the Department. Where plans are shared with the Department and the Department does object to any of the services and/or activities, the Recipient will either eliminate the services and/or activities objected to, or to make changes sufficient to address the Department's concerns. Where the Recipient either refuses to eliminate the services and/or activities in question or to make the changes requested by the Department, the Recipient shall be considered in default of the Agreement. Communications Protocol: 1. The Recipient shall obtain the approval of the Department before preparing and issuing any announcements, press releases, brochures, advertisements or other materials that will display the Department's logo or otherwise make reference to the Department. 2. The Recipient will advise the Department at least 30 days in advance of any special event the Recipient wishes to organize in connection with the Agreement. A special event shall only be held on a date which is mutually acceptable to the Department and the Recipient. The Recipient consents to having the Department or its designates participate in any such event. Requirements in Support of the Francophone Integration Pathway: 1. The Recipient shall enquire as to the official language preference of all clients. 2. The Recipient shall ensure that all clients are adequately informed about the availability of French settlement services and the possibility of settling in French in Canada when accessing services in person and when visiting the Recipient's website. 3. The Recipient shall refer clients choosing to be served in French to Francophone recipients if it does not have the capacity to deliver settlement services in French. 4. The Recipient shall develop and maintain partnerships with Francophone service providers offering settlement services in order to meet the service requirements above. Performance Monitoring and Outcome Reporting: 1. Further to section 6.0 of the Agreement, the Department may request that the Recipient carry -out project -level performance monitoring and assessment activities in accordance with requirements to be set out by the Department to inform project -level outcome reporting and analysis. These requirements may include, but not be limited to, Recipient -run surveys to measure project -level outcomes of clients in priority areas determined by the Department. Narrative Reporting: 375 'Immigration, Refugees Immigration, Refuges and Citizenship Canada et Citoyennete Canada PAGE 2 OF 2 Narrative reports shall be submitted by the Recipient for each Fiscal Year of the Agreement, as follows: 1. April to June (before July 30) 2. July to December (before January 30) Narrative reports are to be submitted to the Department within 30 calendar days of the end of the reporting period. Final Progress Report: Following completion of the Project, the Recipient shall submit a Final Progress Report detailing the actual achievements of the Project against the Project objective(s), planned activities, and expected results identified in Schedule 1. This report is to be submitted to the Department within 60 days of the end of the Funding Period. Other: 1. The Recipient shall notify the Department 14 days before the start of the Annual General Meeting of the date, time and location of the meeting. 2. International travel is not an eligible cost and will not be reimbursed by the Department under this Agreement. 376 B New A, ffins'wouviea& C A N A D A June 25, 2020 Mayor and Councils Saint John, Grand Bay -Westfield, Rothesay, Quispamsis, and Hampton Dear Mayor and Council Members, For the past year, the Economic Development Advisory Council and consultants in dialogue with the regional Mayors, CAOs, and councillors have been building a new Greater Saint John economic development model designed to be governed and funded by all the municipalities in the region. This letter is to confirm the support of my government for the new, consolidated economic development organization covering the Greater Saint John region. The Saint John region is an important economic zone in New Brunswick and holds significant potential for growth in the coming years. Having a single economic development organization funded by the region's municipalities and working with our government on crucial issues such as people attraction, entrepreneurship development, industry growth and tourism promotion will help the region achieve its potential. A main guiding principle of the new economic development model is that it will be equitably funded by all municipalities in the region. Because all municipalities benefit from being part of the urban region and they all benefit from regional economic development activities, we believe this is an excellent example of a regional service that should be funded and governed by the municipalities. The time for action is now. The Covid-19 pandemic amplifies the need for a new approach to economic development in the region that is focused on growing key industry clusters, attracting talent and boosting the number of visitors to the region each year. For the past twelve months, you have been engaged and participated in this process to evaluate a regional approach to economic development. Now is the time to embrace change to build a strong path forward. We look forward to working with the municipalities in the Greater Saint John region to help it grow and prosper in the years ahead. Sincerely, Blaine M. Higgs C.c. Honourable Jeff Carr, Minister, Environment and Local Government Mr. Thomas MacFarlane, Deputy Minister, Environment and Local Government Office of the Premier / Cabinet du premier ministre www.gnb.ca P.O.BoxIC.P.6000 Fredericton New Brunswick/Nouveau-Brunswick BB5H1 Canada TeIJT61.:(506)453-2144 Fax/TdI6c.:(S06)453-7407 Email/Courdel: premier@gnb.calpremier.ministre@gnb.ca 47 W1.13 JOIN US IN RAISING THE, LEVEL OF EXCELLENCE June 23, 2020 Mayor Grace Losier & Council Town of Grand Bay -Westfield Aquila Tours would like to express its support for a consolidated, regional Economic Development model for the Greater Saint John area, including Grand Bay -Westfield, Rothesay, Quispamsis, Hampton & St. Martins. The COVID-19 pandemic has severely impacted local businesses, including ours with a projected 85% revenue loss for 2020 due to the cancellation of the cruise season. It's more important than ever that strategic recovery must be our collective priority. We believe that we are stronger together and that having a new, consolidated economic development model for the Greater Saint John region has the potential to change the trajectory of the regional economy. A reinvigorated economic development model, with strong support from the private sector, aligned with the provincial and federal government's economic development and people attraction efforts will ensure the region transforms and is set up for growth in the 2020's. We hope we can count on your support! More than ever, we need a model that aligns and blends economic development, people attraction, tourism promotion/development and infrastructure investment into a single entity with one board, one leader, one team and one budget. The power of our region, coming together with all municipalities and private sector investors in a collaborative model will set the stage for growth. We are naturally set to take full advantage of our assets; the City of Saint John is anchored with complementing municipalities that defines our world class offerings. The organization would be led by a high-performance Board of Directors, let by private sector, skilled based, diverse and with municipal representation, but not elected officials. This new model will grow the core municipal funding. We must have regional collaboration for economic growth, have more municipal investment with representation, leverage more funding sources to scale and drive results, focus on key sectors with deliberate intent and targeted outcomes for success, optimize economic development spending & people attraction, and obtain functional synergies to leverage opportunities. We live regionally, and we need to start acting it like it. As one of the owners of Aquila Tours, I'm a perfect example of why we need a regional approach and why municipalities acting in individual silos is not working. I own a house in Grand Bay -Westfield, our office (which we own) is in Sant John, I shop and dine in both Grand Bay -Westfield and Saint John, our kids play sports in every community in the Greater Saint John region, and our team is made up of individuals who live in every community in the Greater Saint John region. This is our opportunity to align and strengthen the economic development ecosystem at a time when recovery is most needed. We must come together as one team in our region. Yours sincerely, Danielle Timmons, Vice President AQUILA TOURS INC. www.aquilatours.com GmndBay-Wegfie|d'Hampton'Quispamsis,Rothesay,5aint]ohn'5t.[Nartins ToWhom bMay Concern: for their review of a consolidated approach to Economic Development for the Greater Saint John region and to communicate support behind the recommended model. Our region will only reach its full potential under a well -led, jointly funded, aligned & focused economic development gmtegy. The economic success of your towns and cities are interdependent and you have many of the same challenges and competition — other similar regions have seen gains through economies of scale & a well -branded and diversified economic development strategy. AREA 5O6was developed in2O15following the clear insight that our region did not have amarquee event that could be leveraged tobuild 'pride ofp|aue'. Our festival has grown torepresent more than $4[Ninannual economic spinoff for the region, and we have attendees from each of one of your towns and cities. To be specific, Greater Saint John attendance in 2019 represented 37% of all attendees, 1/3 of which was made up of attendees from outside of the City of Saint John proper including the towns ofRothesay, Quispamsis,St. Martins, Hampton and Grand Bay-Wesdie|d.VVealso have sponsors, volunteers, and even committee members from each one of your areas! AREA 5O6isagreat example of a product that both thrives and depends on the collective success of the City of the Saint John and the outlying areas through a strategic focus and alignment on clearly defined priorities for economic development. VVehave enough challenges competing with those outside ofour region; I'm convinced that if weface them together with a model that deals with both region -based and town/city-based challenges and needs, it will result in a stronger economic development strategy for everyone involved. This strategy is a clear example of the sum being far greater than its parts, and it's what our region needs NOW. Sincerely, Area 506 1 Music. Culture. Goods. 506.645.1653 191-1191 July 7, 2020 Paulette Hicks Chair, Economic Development Advisory Council General Manager, Delta Hotels by Marriott Saint John 39 King Street Saint John, New Brunswick E2L 4W3 Dear Ms. Hicks, I am pleased to offer my support in principle for a new regional economic development model which covers Greater Saint John, including Saint John, Grand Bay -Westfield, Rothesay, Quispamsis, Hampton and St. Martins. It is positive that the Advisory Council is aiming to consolidate multiple agencies which will no doubt generate stronger results and will provide for an enhanced level of cross - functional integration and collaboration. I was also pleased to read that Premier Higgs is supportive and that the new model will have the full support of key external stakeholders, including ONB and ACOA. We believe these agencies are critical to the success of the regions growth across multiple sectors, and to attract investment and talent. Ourfamily company has invested significantly in Saint John and we believe the community and region has a lot to offer our people and our business. However, it is important to note that Saint John Common Council has recently considered additional taxes and fees on local businesses through regressive measures that we simply have not agreed with — including the machinery & equipment tax, highway tolls and a truck tax. Going forward, I would encourage the city of Saint John and the other participating municipalities to utilize this new regional economic development entity as an avenue to identify and implement support programs, policies and practices which enable further company investments in order to lead to increased private sector spending across the region. Best regards, Glenn Cooke CEO BEST Learn more about our family of companies at cookeseafood.com Best MANAGED Aquacutture COMPANIES Practices Platinum member 381 Paulette Hicks Economic Development Advisory Council Dear Paulette,, Thank you very much for sharing your May 15th status update and taking the time to provide us with more detail on all of the work that is taking place to develop a new economic development framework for our region. As we discussed, the Board of Directors and staff of Develop Saint John strongly endorse a new economic development model that would integrate and align the efforts to grow our region's population, jobs, visitors and tax base. In particular, we believe that this provides us a unique opportunity to fundamentally transform how we, develop, manage and promote our region's Place Brand. We understand and appreciate the challenges in bringing the region together under a new integrated model. We do, however, firmly believe that this is the only way that we will be able to compete to retain and attract the population required to drive the growth of our region. While we are formally made up of a number of separate municipalities and LSDs, we are really much stronger when we put[ together as one community. Thank you very much for all of the efforts of Advisory Council to bring this important initiative to where we are today. We remain optimistic that the final details will come together in the coming weeks. In the meantime, if Develop Saint John can be of any assistance, please let us know. Once finalized, we are committed to helping with the transition to this new model in the coming months. Sincerely, Leslie Magee Chair Develop Saint John inc. P.O. Box 1971, Saint John, New Brunswick E2L 4L1 382 To: Mayor Chorley, Mayor Clark, Mayor Don Darling,Mayor Grant and Mayor Grace Losier Re: Support for a consolidated, focussed economic development organization for our region Dear Mayors; I'm writing today in support of the newly proposed regional economic development model. I am passionate about our region and its potential and have done my best to contribute in a positive manner, having been Chair of what was then called ESJ twice and having been involved in the development of two regional growth strategy documents. What I learned over those years is that economic development does not recognize municipal boundaries, requires a great deal of collaboration, cooperation and partnership to be successful and benefits the whole as opposed to a specific part of our region, regardless of where the focus of activity may appear to be. I have also learned that what kills economic development in our region is competition for a bigger piece of the pie as opposed to a combined effort to grow the pie bigger, inefficient use of resources due to duplication of efforts and a lack of focussed, cooperative strategy. We lag behind other regions in New Brunswick when we were, and should still be, leaders. Everyone is tired of the public conflict, not to mention the image we create for those considering investment in our region. A series of reviews have taken focus away from economic development activities and if we are unable to refocus our efforts we will continue to lose ground. Nothing is ever perfect, there is always room for improvement. What we do know is that our present model of economic development in our region is not working. The proposed model brings focus to the task — allowing for greater collaboration, consistency of message, and economies of scale. This model has the potential to change our story! With strong leadership, a collective vision and the time to develop, implement and evaluate a focussed strategy our region we have the opportunity to make a difference in not only our region but our Province. My congratulations to the members of the Advisory Council. Sincerely, Dr. Shelley M. Rinehart M-1191 E"ASMANAGEMENT GROUP INC Elias Management Group PO Box 4753 Rothesay, NB E5N 5N8 July 3, 2020 To: Mayor Nancy Grant Re: Support for proposed Regional Economic Development Model Dear Mayor Grant; I am writing today to voice my support for the newly proposed regional economic development model. Building on the work of the various agencies, I am convinced that we are stronger as a region when we work together. While we have made some strides in the right direction, much more must be done. All economic indicators show that we must take decisive action if we are to compete in the new environment. The Elias Management Group and its affiliated companies and likeminded companies will thrive and be able to invest more into our province and communities with a strong unified approach. The proposed model focuses on just that - a greater collaboration, consistency of message, and economies of scale. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. The time is now. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Dr. David Elias President Elias Management Group Ec�:il E"ASMANAGEMENT GROUP INC Elias Management Group PO Box 4753 Rothesay, NB E5N 5N8 July 3, 2020 To: Councillor Miriam Wells Re: Support for proposed Regional Economic Development Model Dear Councillor Wells; I am writing today to voice my support for the newly proposed regional economic development model. Building on the work of the various agencies, I am convinced that we are stronger as a region when we work together. While we have made some strides in the right direction, much more must be done. All economic indicators show that we must take decisive action if we are to compete in the new environment. The Elias Management Group and its affiliated companies and likeminded companies will thrive and be able to invest more into our province and communities with a strong unified approach. The proposed model focuses on just that - a greater collaboration, consistency of message, and economies of scale. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. The time is now. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Dr. David Elias President Elias Management Group Ec1:19 E"ASMANAGEMENT GROUP INC Elias Management Group PO Box 4753 Rothesay, NB E5N 5N8 July 3, 2020 To: Councillor Bill McGuire Re: Support for proposed Regional Economic Development Model Dear Councillor McGuire; I am writing today to voice my support for the newly proposed regional economic development model. Building on the work of the various agencies, I am convinced that we are stronger as a region when we work together. While we have made some strides in the right direction, much more must be done. All economic indicators show that we must take decisive action if we are to compete in the new environment. The Elias Management Group and its affiliated companies and likeminded companies will thrive and be able to invest more into our province and communities with a strong unified approach. The proposed model focuses on just that - a greater collaboration, consistency of message, and economies of scale. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. The time is now. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Dr. David Elias President Elias Management Group 191:1.1 E"ASMANAGEMENT GROUP INC Elias Management Group PO Box 4753 Rothesay, NB E5N 5N8 July 3, 2020 To: Councillor Tiffany Mackay French Re: Support for proposed Regional Economic Development Model Dear Councillor Mackay French; I am writing today to voice my support for the newly proposed regional economic development model. Building on the work of the various agencies, I am convinced that we are stronger as a region when we work together. While we have made some strides in the right direction, much more must be done. All economic indicators show that we must take decisive action if we are to compete in the new environment. The Elias Management Group and its affiliated companies and likeminded companies will thrive and be able to invest more into our province and communities with a strong unified approach. The proposed model focuses on just that - a greater collaboration, consistency of message, and economies of scale. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. The time is now. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Dr. David Elias President Elias Management Group E"ASMANAGEMENT GROUP INC Elias Management Group PO Box 4753 Rothesay, NB E5N 5N8 July 3, 2020 To: Councillor Matt Alexander Re: Support for proposed Regional Economic Development Model Dear Councillor Alexander; I am writing today to voice my support for the newly proposed regional economic development model. Building on the work of the various agencies, I am convinced that we are stronger as a region when we work together. While we have made some strides in the right direction, much more must be done. All economic indicators show that we must take decisive action if we are to compete in the new environment. The Elias Management Group and its affiliated companies and likeminded companies will thrive and be able to invest more into our province and communities with a strong unified approach. The proposed model focuses on just that - a greater collaboration, consistency of message, and economies of scale. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. The time is now. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Dr. David Elias President Elias Management Group Ec1:1:3 E"ASMANAGEMENT GROUP INC Elias Management Group PO Box 4753 Rothesay, NB E5N 5N8 July 3, 2020 To: Councillor Grant Brenan Re: Support for proposed Regional Economic Development Model Dear Councillor Brenan; I am writing today to voice my support for the newly proposed regional economic development model. Building on the work of the various agencies, I am convinced that we are stronger as a region when we work together. While we have made some strides in the right direction, much more must be done. All economic indicators show that we must take decisive action if we are to compete in the new environment. The Elias Management Group and its affiliated companies and likeminded companies will thrive and be able to invest more into our province and communities with a strong unified approach. The proposed model focuses on just that - a greater collaboration, consistency of message, and economies of scale. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. The time is now. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Dr. David Elias President Elias Management Group Ec1:10.1 E"ASMANAGEMENT GROUP INC Elias Management Group PO Box 4753 Rothesay, NB E5N 5N8 July 3, 2020 To: Councillor Don Shea Re: Support for proposed Regional Economic Development Model Dear Councillor Shea; I am writing today to voice my support for the newly proposed regional economic development model. Building on the work of the various agencies, I am convinced that we are stronger as a region when we work together. While we have made some strides in the right direction, much more must be done. All economic indicators show that we must take decisive action if we are to compete in the new environment. The Elias Management Group and its affiliated companies and likeminded companies will thrive and be able to invest more into our province and communities with a strong unified approach. The proposed model focuses on just that - a greater collaboration, consistency of message, and economies of scale. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. The time is now. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Dr. David Elias President Elias Management Group 06191 E"ASMANAGEMENT GROUP INC Elias Management Group PO Box 4753 Rothesay, NB E5N 5N8 July 3, 2020 To: Councillor Peter Lewis Re: Support for proposed Regional Economic Development Model Dear Councillor Lewis; I am writing today to voice my support for the newly proposed regional economic development model. Building on the work of the various agencies, I am convinced that we are stronger as a region when we work together. While we have made some strides in the right direction, much more must be done. All economic indicators show that we must take decisive action if we are to compete in the new environment. The Elias Management Group and its affiliated companies and likeminded companies will thrive and be able to invest more into our province and communities with a strong unified approach. The proposed model focuses on just that - a greater collaboration, consistency of message, and economies of scale. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. The time is now. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Dr. David Elias President Elias Management Group 06% July 9, 2020 MAYOR & COUNCIL Saint John, Grand Bay -Westfield, Rothesay, Quispamsis, Hampton, and St. Martins Legacy file for Southern New Brunswick — Regional Economic Development Model Dear Mayor and Council Members, A game changer for New Brunswick has always been my mantra. Today, I believe you have this opportunity in front of you. As a native New Brunswicker, I am as committed today, as I ever was in seeing New Brunswick succeed and to grow. Southern New Brunswick, the beautiful region you all call home has been a "hidden treasure" to the world. I applaud the outstanding work of the Economic Development Advisory Council and your commitment as municipal leaders to be at the table as a collective region. You may have heard me say "catch the rope" .... This is one of those times. The world is facing great uncertainty, and the regions that are soundly aligned, with coordinated sector strategies, focused on meaningful growth opportunities will be the ones to watch. I believe that you will be one of those regions to watch, if this model is implemented with the right leadership, strong accountability, and collective commitment from each of you. Southern New Brunswick is ripe for growth and opportunity... this strategy is what New Brunswick needs. Sincerely, Frank McKenna 392 Internal o July 71h, 2020 To: Mayor Don Darling Re: Support for proposed regional economic development model Dear Don; I'm writing today to voice my support for the newly proposed regional economic development model. I believe this plan is based on cooperation, openness, and a true focus on building the Greater Saint John area. Through my life I've grown up in Saint John, lived in Hampton and am a current resident of Quispamsis. Our people, our city and towns, our river system and our resources are second to none and our economy could be as well. We have proven through the current pandemic that we are able to rise above almost anyone else in the world through cooperation and taking new approaches. It is time that we do the same thing for our economy. I've started two companies in Saint John and my staff live across all the municipalities. My company iSpire has provided and still provides business support for 5 of these municipalities. As co-founder of ConnexionWorks, community lead of Startup-YSJ and co-chair of StartupNB. I've been involved in many aspects of our region. As much as I am proud of our accomplishments, this has also given me a front row view into mis-alignment, lack of support and competition within economic agencies and between these agencies, businesses and our people. I see daily, the loss of opportunity, the loss of passion, the discouragement of our current efforts. Yes, we have made efforts and we have some great people in our different agencies, but until we are aligned and working together, we will not move ahead. As part of WMI and Startup Canada, I've had visibility into challenges across Atlantic Canada and nationally. We all face many of the same challenges but Saint John has an opportunity to revamp our approach, collaborate and move forward. I believe the proposed model will tear down siloes — allowing for greater collaboration, consistency of message, and economies of scale. Personally, and as a business owner, I am committed to further invest in our communities, but it must be under a structure that will allow us to work together and grow. As with many people in our region I am tired of the conflict, the battle over funding, the fight for power and control. We must not only have the right leadership but we must engage our people to be involved. We need to end the discouragement that I and many others face when they try to step up to create a better region only to be shot down for their efforts. I urge you to support a new structure. I also urge you to watch it carefully and stay involved. The future of so many things in our area depends on what we do now. Sincerely, Doug Jenkins, P.Eng. CEO of iSpire — Inspired Technologies Co-founder & President of ConnexionWorks Startup-YSJ Community Leader ME I RVI N G J D. Irving,, Limite PO�. Box 5777, 300 Union Street, Saint John, New Brunswick, Canada E21- 4M3 Tel.: (506) 632-7777 July 13, 2020 Mayor and Councils Saint John, Grand' Bay -Westfield, Rothesay, Quispamsis, and Hampitor MMU-41"11PT-M I am writing today to voice my support for the newly proposed regional ;tconomic development model. We are very aware that the greater Saint John region has struggled to attract new businesses to the area and to generate increased economic development from existing business. We believe that, an economic development agency that acts as a "one- li,top shop" and is supported by all communities in greater Saint John would be 2 huge boost for the region. Our head office is located here, and we employ 3,000 people in the region. We certainly want to see the entire area grow and thrive. In order to compete in the global marketplace, we need to thiink and act differently than in the past. We believe the focus of this new agency on selected pillars such as people attraction and workforce development could result in the Saint John i area being leader in New Brunswick on these critical initiatives. To conclude, we completely support the, proposed reg�ional economic 4evelopment model and hope that you and your Council will as well. Yours truly, J.D. IRVING, LIMA ITED James D. Irving Co -Chief Executive Officer 06191 lt III,,,,,,,, I G � ;� J July 3, 2020 Mayor and Councils Saint John, Grand Bay -Westfield, Rothesay, Quispamsis, Hampton and St. Martins Dear Mayor and Council Members, Re: Support for proposed regional economic development model The outstanding work of the Economic Development Advisory Council and consultants in dialogue with the local municipalities has produced an excellent model to drive our economic future. I am in full support of its adoption. Successful cities around the world have embraced the `collective impact' model to address their biggest problems, ones that are complex and cannot be solved by single organizations or silos of service. Locally, Greater Saint John has been successfully applying this model to `end generational poverty'. The power of collective leadership builds lasting solutions with highest return on investment. I have been proud to be part of this work and have seen, first hand, the seismic shift GSJ has made to embrace the problem and forge ahead with better solutions. There is no silver bullet to eradicating a complex problem but the common will to work together and stay together to build a better future, is the key to progress. Today our city is a recognized `poverty reduction' leader among cities in Canada. I firmly believe the collective leadership approach, with common purpose and priorities, is the essential engine we urgently need to build a thriving economic region and province. Please embrace this new model and actively participate in its success, to benefit all! Sincerely, 0r;W_OWr6- Brice Belyea Interim Chair, Living SJ Room 461, Confederation Building Ottawa, Ontario KlA OA6 TOL: 613-947-2700 Fax.: 613-947-4574 I Market Square Suite N306 Saint John, New Brunswick F2L 4Z6 To].: 506-657-2500 Fax.: 506-657-2504 July 3, 2020 To: Mayor Nancy Grant HOUSE,OF COMMONS CHAMBRE DES COMMUNES CANADA cWqIIIeC,'c0/q \Iclijl,Eq (�I P,Ifli,mncni , " I , )II lqltc (" dW iohm R. Support for proposed regionial economic development model Dear Mayor Grant; 1%,ce 461, Edifice de la Confederation Ottawa (Ontario) KI A OA6 T61. 613-947-2700 T61ec. 613-947-4574 1, Market Square suite N306 Saint John (Nouveau -Brunswick) E2L 4Z6 T61,: 506-657-2500 T&,c. : 506-657-2504 I'm, writing today to voice my support for the newly proposed regional economic development model. Our region has struggled, to gain the traction we need on economic development and whiile we have made some, strides in the right direction, much more must be done. All economic indicators skow that we must take decisive action, if we are to make a difference, believe the proposed model will tear down siloes —allowing for greater collaboration, consistency of message, and economies oscaile. Moreover, the public is tired of the conflict and lacklustre results on this file. We are starting to believe that success can't happen here — and if that is allowed to take root, it will become a self-fulfilling prophecy. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. Let's go for iit, and see where it takes us. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game changer for our region. Sincerely, Al ) I, Membf-Parlia nt Saint JV- RotWsa , ON June 29, 2020 Mayor and Councils Saint John, Grand Bay -Westfield, Rothesay, Quispamsis, and Hampton Dear Mayor and Council Members, I've been brought up to speed on the Economic Development Advisory Council and building a new Greater Saint John economic development model designed to be governed and funded by all the municipalities in the region. As an entrepreneur with interests in Saint John and Quispamsis and a resident of Rothesay, this letter is to confirm my support for the new, consolidated economic development organization covering the Greater Saint John region. The Saint John region holds significant potential for growth in the coming years. Collaborating on projects, aligning goals and working together will lead to a stronger regional industry and increased growth potential and sustainability. The principle of the new economic development model is that it will be equally funded by all municipalities in the region. Because all municipalities benefit from being part of the regional economic development activities, these communities c n thrive, by working together. Teamwork and collaboration is not a new cone pt and I am very excited to see these steps taking place. Now is the time to embrace this substantial change. We need economic development in the region that is focused on growing key industry clusters, attracting talent and boosting the number of visitors to the region each year. Sincerely yours, Peter Stoddart Saint John Ale House, Toro Taco, Barred Rock Chicken, Smoking Pig BBQ, Trinity Center for Business, Saint John Beerfest, NMWCA, Restaurants Canada. 28 ALLAN AVE, ROTHESAY NB, E2S 1A2 PETEROSJAH.CA 061-11 SJJL* July 5th, 2020 To: Mayors & Councils Re: Support for proposed regional economic development model Dear Your Worships, I am writing today to voice my support for the newly proposed regional economic development model. Our region has struggled to gain the traction we need on economic development, and while we have made some strides in the right direction, much more must be done — especially in a post- COVID world. All economic indicators show that we must take decisive action if we are to make a difference. I believe the proposed model will tear down siloes — allowing for greater collaboration, consistency of message, and economies of scale. A unified and stronger voice will help to resonate and elevate our mission. Moreover, the public is eager for a "win" with regards to economic development and historic efforts have struggled to deliver the outcomes we seek. Some are starting to believe that success is not possible here — and if this sentiment is allowed to take root, it will become a self- fulfilling prophecy. Now is not the time to be tentative about economic development. The strategy behind this idea is sound. There is an old saying that suggests if we always do what we have always done, we will get exactly what we currently have. I believe that with the right leadership, some determined goodwill, and some patience, this new model will be a game -changer for our region. Sincerely, Derrick G Stanford President & CEO Saint John Airport 506-644-8607 0616.1 M'"wn June 22, 2020 Attn: Mayor and Councils Saint John, Hampton, Grand Bay -Westfield, Quispamsis, Rothesay, St. Martins Re: New regional model for economic development in Greater Saint John Cc: Advisory Council, CAO's We are pleased to take this opportunity to comment on the proposed new regional model for economic development in Greater Saint John. As you are no doubt aware, Saint John Hotel Association members, like many hospitality industry businesses, are experiencing an unprecedented downturn due to COVID-19. A current snapshot of the Provincial tourism industry is as follows: • Year -over -year revenue for hotels in New Brunswick will be down $110M. We currently sit at 5% occupancy rates. • Relaunch start-up costs for a restaurant that seats 80-100 is $46,136. • Outdoor adventure and tour operator cancellations are running at 75%. • Spring was a total loss for outfitters and 50% believe they will not survive this pandemic. • 95% of Meetings and Conventions have been cancelled for the remainder of 2020 and into Q1 2021. These impacts are devastating. Over the next 12 to 24 months, tourism operators will not achieve pre- COVID booking volumes and revenues comparable to 2019. We expect a punishingly long and gradual recovery period well into 2022. As we look at the financial picture at our municipal and provincial governments, they were already in financial distress prior to the pandemic, and now our governments expect deeper deficits and lower revenues in the short- to medium -term. We may face the potential of higher taxes. If our community is to successfully weather this difficult new reality, we must be decisive, consistent, and collaborative. We must take this opportunity to coordinate our actions on the economic development front — not just to conserve precious financial resources, but to get the best possible return on investment in the shortest possible timeframe. We have no more runway for fragmented investment, competing priorities, and siloed workplans. HoN It is time for our community to come together as a region and start pulling in the same direction. A single regional economic development agency will strengthen our sectors, including the local tourism industry — but moreover, it will build the foundation to achieve the community -wide results we have been striving after for so long. Our visitor economy is directly linked to population growth, which is directly related to job creation, and to property development. We are an interconnected ecosystem and our current economic development model must reflect that reality. This new model moves forward if all the six municipalities in our region come together, as the foundational investors for the Greater Saint John economic development entity. We need this model to drive better results, to leverage more private sector engagement/investment and for higher accountability. We appreciate the leadership and determination on this file from all partners to bring our region together. We know, more than ever, that it is the only way forward. Sincerely, Members of the Saint John Hotel Association Paulette Hicks, Delta Saint John by Marriott Jasmine Mosher, Best Western Plus Saint John Hotel & Suites Sue Palmer, Chateau Saint John Glenda MacLean, Hilton Saint John Brian Lawrence, Holiday Inn Express & Suites Ankit Amin, Canada's Best Value Inn & Days Inn Saint John Pam Mabee, Travelodge Suites Nibu Thomas, Hampton Inn & Suites Lokesh Kant, Hillside Motel Wei (David) Wu, Homeport Historic Bed & Breakfast Inn Ingrid Woodhouse, BaunkHaus Boutique Hostel C[O YMCA of Greater Saint John 191 Churchill Blvd. Saint John, NB E2K 3E2 Tel: 693-9622 Fax: 634-0783 June 30, 2020 Mayor and Councils Saint John, Grand Bay -Westfield, Rothesay, Quispamsis and Hampton Dear Mayor and Council Members, it is my pleasure to write a letter in support of the new Regional Economic Development model proposed by the Economic Development Advisory Council. I wish to commend the Advisory Council for building a framework and principles that will lead us into the future following a sound governance model. As a leader in my organization I have always tried to ensure the YMCA was serving the Greater Saint John area, from Sussex to St Stephen, this new model reflects this and will help strengthen our community now and in the future. Greater collaboration and sharing resources will move us forward, allowing us to grow and fill gaps in our collective communities. Our goal is and has been for the past 166 year to have a significant and positive impact in our community. We serve over 22,000 people each year, in 19 locations, 66 percent of whom receive some form of financial assistance. Supporting all of this are over 300 full and part-time staff and more than 700 volunteers. The YMCA of Greater Saint John is committed to building the economy in a supportive and collaborative approach. To ensure future prosperity and economic success, it is important that we continue to champion and foster population retention and increased connection to our community while contributing to regional community development and stimulating economic growth. I look forward to helping and continuing to be part of this powerful network, ensuring Greater Saint John is vibrant and growing. Sincerely, J4*4&4&_� Shilo Boucher, CPA, CA, ICD.D President & CEO YMCA of Greater Saint John guiidin, 1,1ectI , 402 communiii e.s ew rqouveaul July 14, 2020 Mayor Don Darling City of Saint John c/o Colleen. O'Con nor@saintjohn.ca Your Worship: Thank you for your correspondence dated July 7, 2020, providing details of the Saint John Common Council's July 6, 2020 unanimous motion on, racial discrimination. As you point out, the conversation being held about racial discrimination in our province, around the country and across the world, is indeed overdue. I appreciate the City of Saint John's leadership in raising the profile of issues associated with racial discrimination in New Brunswick. You are no doubt aware of the June 25, 2020 first minister's statement on anti -racism, in which we emphasized that diversity is one of Canada's strengths and condemned all forms of racism, discrimination, intolerance and bigotry. I am proud to have joined with my colleagues in committing to exercise leadership in addressing the root causes of inequity, ensuring that the perspectives of racialized communities inform strong: and continued action. Just last week, my colleagues and I met with representatives from the Black Lives Matter and PRUDE to discuss next steps and we look forward to continuing this discussion. Also, in recent days, I have been clear in my statements about the necessity of continued open, dialogue and exchange of ideas at the provincial and national level on how to address racial discrimination. In this spirit, I look forward to, further discussing your proposals and ideas at your convenience. Sincerely, laine M. Higgs C, Mr. Wayne Long, MP Honourable Dorothy Shephard, Minister, Social Development Honourable Trevor A. Holder, Minister, Post -Secondary Education, Training and Labour Mr. Bill Oliver, MLA, Kings Centre Mr, Glen Savoie, MLA, Saint John East Mr. Gary Crossman, MLA, Hampton Mr. Ted Flemming, MLA, Rothesay Ms. Andrea Anderson -Mason, MLA, Fundy the Isles Saint John West Mr. Matthew Martin, Saint John Black Lives Matter Mr. Mohamed Bagh:a, Managing Director, Saint John Newcomers Centre Mr. Ralph Thomas, President, Prude Inc. Ms. Shilo Boucher, President and CEO, YMCA Greater Saint John Dr. Tim Christie Off ice of the Premier I (abinetdu premier ministre www.gnb.ca PO. Box/C.P.6000 Ftederkton New Brunswick/Nouveau-Brunswick E3135,H1 (anada Tel./M.:600453-2144 FaxfTk1k:(506)453-7407 Imall/CourTiel: premki@gnb.(a/premiermlnistre(&gnbca