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2022-03-23 Finance Committee Minutes - Open SessionFinance Committee Meeting Open Session March 23, 2022 MINUTES —OPEN SESSION FINANCE COMMITTEE MEETING MARCH 23, 2022 AT 4:45 PM 2nd FLOOR COMMON COUNCIL CHAMBER, CITY HALL Present: Mayor D. Noade Reardon Councillor G. Sullivan Councillor P. Radwan Councillor G. Norton Absent: Councillor D. Hickey Also Present: Commissioner of Finance and Treasurer K. Fudge Commissioner Transportation & Environment M. Hugenholtz Commissioner Saint John Water B. McGovern Commissioner Growth & Community Services J. Hamilton Commissioner Human Resources S. Hossack Director Finance J. Forgie Director Finance C. Lavigne City Clerk J. Taylor Fire Chief K. Clifford Director Public Works T. O'Reilly Mayor's Strategic Advisor K. Stevens Administrative Officer R. Evans Administrative Assistant K. Tibbits 1. Meeting Called to Order Councillor Sullivan called the Finance Committee open session meeting to order. Moved by Mayor Noade Reardon, seconded by Councillor Norton: RESOLVED that the agenda of March 23, 2022, be approved. MOTION CARRIED. 1.1 Approval of Minutes — January 26, 2022 Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the minutes of January 26, 2022, be approved. MOTION CARRIED. 1.2 Integrated Bilateral Agreement— Funding Application Capital Budget Referring to the submitted report "Integrated Bilateral Fund," Mr. McGovern provided an overview of the application and possible projects. The funds can be used for Public Transit Infrastructure or can be transferred to the Green Infrastructure stream to be utilized for eligible projects under this category. The Green Infrastructure stream focuses on investments through a climate lens and the projects would deliver green results. Moved by Councillor Radwan, seconded by Mayor Noade Reardon: Finance Committee Meeting Open Session March 23, 2022 RESOLVED that as recommended by the City Manager in the submitted report Integrated Bilateral Fund, the Finance Committee endorse the proposed application for Integrated Bilateral Agreement (IBA) funding opportunity; and direct Staff to bring back recommendations as part of the 2023 Capital Budget process. MOTION CARRIED. 1.3 Grant Policy Mr. Fudge reviewed the submitted presentation entitled "Grant Policy." A Grant Policy would formalize best practices of grant oversight by including policy respecting application, eligibility, evaluation, reporting, strategic alignment, and accountability. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that as recommended by the City Manager in the submitted report FAS 023 — Grant Policy, the Finance Committee endorse FAS 023 - Grant Policy as presented and that the Chair of the Finance Committee bring forth a recommendation to Common Council for approval. MOTION CARRIED. (Councillor Norton withdrew from the meeting) 1.4 Internal Audit Health and Dental Recommendations Ms. Forgie reviewed the submitted presentation "Internal Audit of Health and Dental Plan." The objective of the audit was to ensure that the health and dental plan provides the most effective benefits at the most efficient cost to employees and the employer, and to ensure it is the right fit for the city's workforce. Over the past five years there has been a disparity between the premiums paid and the cost of the plan. In the past a reserve fund was used to offset the costs however, that has been depleted and the plan is now in a deficit position. Moved by Councillor Radwan, seconded by Mayor Noade Reardon: RESOLVED that the Internal Audit Health and Dental Recommendations presentation be received for information. MOTION CARRIED. 1.5 Internal Audit 2022 Program Ms. Forgie reviewed the submitted presentation "Internal Audit" and discussed the proposed audit plan for 2022. Two proposed audits for 2022 include the Market Square Contract Compliance Audit and a Health and Safety Audit (Saint John Water). Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that as recommended by the City Manager in the submitted report Internal Audit 2022 Program, the Finance Committee recommend Common Council approve the 2022 Internal Audit Plan. MOTION CARRIED. 1.6 Transit Capital Funding Opportunity Mr. Hugenholtz stated that transit redesign is changing fleet needs at the same time that the city is trying to decarbonize. The available funding under this program will allow both of these priorities to be addressed simultaneously. Mr. Fogan, referring to the submitted report "Application to Zero Emission Transit Fund," stated that the city has recently completed a decarbonization study of its fleet and transit, towards a goal of being carbon neutral by 2040. An opportunity was identified to leverage a federal grant funding program to help switch transit vehicles to zero emission vehicles. The program can provide a 50% grant and 50% financing for the purchase of zero emission vehicles. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: Finance Committee Meeting Open Session March 23, 2022 RESOLVED that as recommended by the City Manager in the submitted report Application to Zero Emission Transit Fund, the Finance Committeee direct staff to submit application to Federal Zero Emission Transit Fund and refer the purchase and funding opportunity to the Capital Budgeting process. MOTION CARRIED. 1.7 Active Transportation Funding O000rtuni Mr. McGovern stated that this funding opportunity relates to the Active Transportation Fund and noted that staff is seeking permission to submit funding applications for various capital and planning projects. Mr. Yammine provided an overview of the funding opportunity and Mr. O'Reilly commented on specifics of the projects. It provides an opportunity to leverage capital funding from the Active Transportation Fund (ATF) toward the capital cost of several City active transportation initiatives. This funding, if successful, would reduce the City capital costs over the next 5 years. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that as recommended by the City Manager in the submitted report The Active Transportation Fund — City Submissions, the Finance Committee approve the following: 1. Request Staff submit an application to Infrastructure Canada under the Active Transportation Fund (ATF) for the following capital projects: a. "The Cove" Extension of a portion of Harbour Passage b. Boars Head Road Sidewalk Extension 2. Request Staff submit an application to Infrastructure Canada under the Active Transportation Fund (ATF) for the following Panning and Design Projects: a. Identification, Design Features, and Prioritization of Needed Crosswalks Crossing Arterial and Collector Streets b. Sidewalk Infill Strategy Completion c. Preliminary Road Safety Public Education Plan d. Assessment of Data (Currently Available, Gaps, and Opportunities) for Supporting a Road Safety Strategy MOTION CARRIED. 1.8 Reauest for adiustment to the 2022 Capital Program for Solid Waste Collection Referring to the new solid waste collection model, Mr. Hugenholtz noted that the pilot project recently ended, and the program is being rolled out more broadly to the community, which requires the procurement of carts and totes. Money was approved in the 2022 capital budget but there is a shortfall due to supply chain issues and the disbursement of the carts within the community. Referring to the submitted report "Solid Waste Modernization — Procurement and Delivery of Bins and Totes", Mr. O'Reilly noted that this is a cost -neutral project over a number of years. Staff is seeking direction and approval for funds not covered by the 2022 Capital Budget allocation for this solid waste project. The unbudgeted amount is approximately $360K ($400K including contingency amount). The entire Solid Waste service transformation is expected to cost $2.6M. Accounting for expected savings from waste diversion, revenue from estimated bag tag sales and a yearly 10% operating cost for cart and tote replacement, it is estimated that the investment will be paid back in approximately 6 years. Moved by Mayor Noade Reardon, seconded by Councillor Sullivan: RESOLVED that as recommended by the City Manager in the submitted report Solid Waste Modernization — Procurement and Delivery of Bins and Totes, the Finance Committee endorse the allocation of up to $400,000 from capital reserve funds to cover an unfunded portion of the expenses required to implement the new Solid Waste Collection Model. MOTION CARRIED with Councillor Radwan voting nay stating that she wants to ensure all risks are mitigated before spending the money and that she is concerned that the program will cause undue financial hardship for some citizens. Adjournment Finance Committee Meeting Open Session March 23, 2022 Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the Finance Committee meeting be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on March 23, 2022, was adjourned at 6:35 pm.