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2017-02-28 Finance Committee Agenda Packet - Open SessionCity of Saint John Finance Committee - Open Session AGENDA Tuesday, February 28, 2017 4:30 pm 8th Floor Boardroom, City Hall Call to Order Pages 1.1 Asset Management Policy Statement 1-20 1.2 Financial Outlook and 2016 Year End Forecasts 21-60 1.3 Feedback from Committee regarding the 6 Month Pilot Expanded Scope 61-67 Po eta Sy: 0 w >- a--+ a--+ Q) U E C 0- 4 -JO N >' > •u Q 0 _0 - Q p �CL CID O _0 • Q v, ��—, > Ji 4-j Ln O Q O _0aA O O 0 •� (1) Q •� 4 CL. •C: 0 — U U � O 00 Ln c N aJ V O— Q • — ate--+ N cin U U — p _0•i +� O i � • p in '� 4-j Q QLn � c — 'N i CL Q) U O Q +-+ v C_ (1)— Q •> •Q f6 — — (� CL p 2 IMMEM 0 Ism 2 Q 0 Q u U > a� o cin � •� v N U Q; •� 4-J 4J >, Q V) on •� O cn u �U U O — U 0 O }' E E E O a) U c6 � aJ N EN Q E O s U i QJ �_ �E 465O E>. O 4- u -+U U � aJ U s +- c6 � > ;.� o a� CL s CL � c6 s Appendix A ASSET MANAGEMENT CITY OF SAINT JOHN POLICY STATEMENT POLICY SECTION: ASSET AND ENERGY DIVISION OF FINANCE AND ADMINISTRATIVE SERVICES 1. POLICY STATEMENT To confirm the City of Saint John's (City's) support for implementing asset management practices to ensure sustainable delivery of services, the City adopts the following statement. The City of Saint John shall adopt and apply recognized asset management practices in support of delivering services to its customers reflecting the vision presented in the City's Municipal Plan, PlanSJ, and related strategic plans. Specific objectives of the Asset Management (AM) policy are to: • Improve the reliability of customer service by maintaining clearly defined levels of service • Improve the decisions related to the management of the City's assets • Improve the transparency and accountability of community investments in the management of the City's assets • Improve the management of the City's exposure to risks of reduced service delivery • Facilitate the leveraging of partnerships and infrastructure funding from external sources The City shall maintain a strategy for the implementation of asset management practices across the organization. The strategy will incorporate the following asset management principles: • Incorporating industry recognized asset management protocols • Defining levels of service • Applying risk-based decision making processes • Utilizing lifecycle costing principles • Incorporating continuous improvement practices Asset management will be considered and integrated in the development of all other organizational plans. C.1 (0,11-1- Title: Subject: Asset Management Policy Category: Policy No.: M&C Report No.: Effective Date: Next Review Date: (3 years) Area(s) this policy applies to: Office Responsible for review of this Policy: Related Instruments: Policy Sponsor: Document Pages: This document consists of XX pages. Revision History: Common Clerk's Annotation for Official eRecord Date of Passage of Current Framework: I certify that this Policy was adopted by Common Council as indicated above. Common Clerk Date Date Created: Common Council Approval Date: Contact: MM DD, YYYY City Manager Pi TABLE OF CONTENTS 1. POLICY STATEMENT.....................................................................................................................3 2. SCOPE...........................................................................................................................................4 3. LEGISLATION AND STANDARDS...................................................................................................4 4. ROLES AND RESPONSIBILITIES.....................................................................................................4 5. MONITOR AND REVIEW...............................................................................................................4 6. IMPLEMENTATION.......................................................................................................................4 7. AUTHORIZATION..........................................................................................................................4 8. RESOURCES.................................................................................................................................. 5 9. STRATEGIES..................................................................................................................................5 10. GLOSSARY...................................................................................................................................6 11. INQUIRIES...................................................................................................................................6 12. APPENDICES.............................................................................................................................................7 E:3 3 ASSET MANAGEMENT CITY OF SAINT JOHN POLICY STATEMENT POLICY SECTION: ASSET AND ENERGY DIVISION OF FINANCE AND ADMINISTRATIVE SERVICES 1. POLICY STATEMENT To confirm the City of Saint John's (City's) support for implementing asset management practices to ensure sustainable delivery of services, the City adopts the following statement. The City of Saint John shall adopt and apply recognized asset management practices in support of delivering services to its customers reflecting the vision presented in the City's Municipal Plan, PlanSJ, and related strategic plans. Specific objectives of the Asset Management (AM) policy are to: • Improve the reliability of customer service by maintaining clearly defined levels of service • Improve the decisions related to the management of the City's assets • Improve the transparency and accountability of community investments in the management of the City's assets • Improve the management of the City's exposure to risks of reduced service delivery • Facilitate the leveraging of partnerships and infrastructure funding from external sources The City shall maintain a strategy for the implementation of asset management practices across the organization. The strategy will incorporate the following asset management principles: • Incorporating industry recognized asset management protocols • Defining levels of service • Applying risk-based decision making processes • Utilizing lifecycle costing principles • Incorporating continuous improvement practices Asset management will be considered and integrated in the development of all other organizational plans. 4 2. SCOPE This policy applies to all City of Saint John activities related to all assets of the City. 3. LEGISLATION AND STANDARDS Province of New Brunswick Municipalities Act 4. ROLES AND RESPONSIBILITES • Council is responsible for adopting policy and ensuring sufficient resources are available to manage the City's assets. • Senior Management is responsible for maintaining a strategic plan designed to implement the policy and for reporting to Council on the progress of meeting the policy objectives. • Program Manager — central AM coordination for common approach to AM across the City. • Departmental Asset Management Groups — manage assets supporting service delivery mandate of each group following corporate AM strategies and vision. • Corporate Support Groups — provide support to Departments in implementing AM. 5. MONITOR AND REVIEW This Policy will be reviewed every 3 years, and as determined by the City Manager. 6. IMPLEMENTATION This Policy will be implemented under the authority of the City Manager by the Asset & Energy Management Division of Finance and Administrative Services. 7. AUTHORIZATION This Policy shall be authorized by the City Manager pursuant to a resolution of Common Council approving the associated "Asset Management" Policy Statement. 8. RESOURCES iK I: The City recognizes that a successful asset management program depends upon the employees of the City of Saint John along with Common Council. 9. STRATEGIES The following represent the current asset management strategies to set the direction from Senior Management to Department staff for improving and sustaining asset management practices and to ensure these practices are applied consistently across the organization. These current strategies are presented to illustrate the continuity from the Asset Management Policy to the Asset Management Strategies, and it should be noted that staff will adjust these strategies as asset management practices evolve. 9.1 Improve Departmental Interaction Improve the work flow business processes between departments to increase the integration of asset renewals and replacements between both different hard -asset departments as well as between these departments and finance. 9.2 Improve Data Sharing Improve the asset management tools that integrate data sources and systems to increase the availability and sharing of asset data within the entire organization. 9.3 Improve Data Software Improve the asset management tools to facilitate the generation and extraction of asset management information from stored asset management data. 9.4 Define Asset Risks Improve/increase the asset management activities and resources needed to prioritize asset renewals and replacements based on defined and quantified asset risks. 9.5 Define Performance Metrics Implement/refine asset management activities to define levels of service and monitor and report on the effectiveness of asset management. 9.6 Define Asset Renewal and Replacement Needs Implement asset management activities to define and quantify the (financial) asset renewal and replacement requirements. 9.7 Lengthen Planning Horizon 11 M. Implement asset management activities to increase the depth (duration) of asset management and financial plans. 10. GLOSSARY 11. INQUIRIES Inquiries regarding this Policy can be addressed to the City of Saint John's Asset & Energy Management Division of Finance and Administrative Services. 12. APPENDICES Appendix A -City of Saint John Asset Management Strategy Document 12 7 APPENDIX A Saint John Asset Management Strategy 1. PURPOSE The purpose of the Saint John Asset Management Strategy is to set out the long-term approach to the management of the City's Assets and the development of the City's Asset Management practices. The Strategy sets the direction from Senior Management to Departmental staff for improving and sustaining asset management practices and ensuring these practices are applied consistently across the organization. In its simplest form, the improvement of asset management practices relates to the City's ability to answer the six questions of asset management ... What have you got? What is it worth? What condition is it in? What needs to be done to it? When does it need to be done? How much will it cost? 2. CONTEXT The Asset Management Strategy is not a standalone document, Figure 1 but is part of a document hierarchy and a broader context for Document Hierarchy for AM the overall management of the City's assets, as noted in Figure 1 and detailed below.. "Plan - 1. SY' (COLMdl r" �'Uhc) COMMUNITY PLAN 2.1. Plan SJ (approved 2011) Plan SJ is Saint John's Municipal Plan. It establishes a community vision to guide the development and investment in the City of Saint John over the course of the 2. AM Policy 5alrrt John Asset Management Plan's 25 -year planning period. Importantly, Plan SJ (COLMd) Policy incorporates guidance and strategies for municipal services and infrastructure. Prepared through a significant public consultation engagement process, Plan SJ is an over -arching guidance document for the development and growth of the 3. AM Strategy City and management of the City's assets. n rfl o r Asset Management Strategy Responsibility—Council and public 2.2. AM Policy The Asset Management Policy articulates Council's 4. AM Roadmap' �Il���1��rll N commitment to asset management and Council's direction Staff) np 13 EJ to guide staff in improving AM practices in the organization. It is a document approved by City Council supporting the implementation of the community vision represented in Plan SJ specific to infrastructure in delivering services to the public. Responsibility—Council 2.3. AM Strategy The Asset Management Strategy articulates senior management's commitment to implementing the City's Asset Management Policy. The document sets the direction from Senior Management to Departmental staff for improving and sustaining asset management practices and to ensure these practices are applied consistently across the organization. Responsibility — Senior Management team 2.4. AM Roadmap The Asset Management Roadmap is a set of activities to be implemented by Departmental staff in accordance with the Strategic directions established by the Senior Management Team, and includes required resources and timing details to complete the plan. The Roadmap activities developed in this hierarchy of linked asset management documents ensures a connectivity between Council priorities and the day-to-day activities and resources required to improve the asset management processes supporting the City's delivery of services. 3. STRUCTURES There are several "structures" on which an asset management program is founded. These include a governance structure required to establish a hierarchy of corporate responsibilities within the organization, and an activities structure represented in a framework that includes asset management activities and the work flows, resources and tools required to ensure these activities are integrated and coordinated across the City 3.1. Governance Structure The governance structure is a foundational component of the asset management program. It provides an organizational structure for the development of asset management tools, guidelines and processes, as well as oversight for their application across the organization. The Saint John governance structure is shown in Figure 2, below. 14 E Figure 2 — AM Governance Structure Key responsibilities in the governance structure are noted generally as follows: 00 Council — approve AM vision within Policy document and ensure resources available Senior Management Team — establish and monitor key strategies to implement Policy Program Manager — central AM coordination for common approach to AM across the City Departmental Asset Management Groups — manage assets supporting service delivery mandate of each group following corporate AM strategies and vision EM Corporate Support Groups — provide support to Departments in implementing AM 3.2. Activities Structure - Asset Management Framework The Asset Management Framework is a structure representing asset management activities. The activities in this framework have been developed based on the simple process of asset management defined by answering the 6 basic questions of asset management. The six questions represent the core Lifecycle Management as shown in Figure 3, below. 15 Figure 3 — Asset Management Framework and Six Questions of AM 10 1. What doyou have? 2. What isitworth? 3. What isits condition? 4. What doyou need todotoit? E When doyou need to do it? 6. How much money doyou need? Figure 3, above represents the asset management activities as a framework for continuous improvement in the delivery of services to the public utilizing infrastructure systems (assets). There are several other important aspects of the asset management process associated with the execution of the life cycle management activities: * the work flow business processes that describe how the City of Saint John undertakes the AM 0 the resources (staff) with AM capabilities / training to undertake the activities described in the work flow processes, and * the tools (particularly information technology tools, ie. data storage, data transfer and analytical systems) that support the City Departments in their application of asset management activities. Figure 4, below, represents these other components required to implement the asset management activities. Figure 4 — Work flow Processes, Resources and AM Tools Asset Management Activities crar�rmrwar�„IsrrmuW'carwrirrcus+raow �r saprrrey ,r Work Flow Business Pr'oce'sses Corporate Vision / Strategic Goals (Levels of Service) IVSAipAXffaU t}piNrrb cul Yfl Xabb®I12?S I Nuditical Igrlup s I& ti mra Cavo r s 1 �I uwmwm r � , ® 1A areas O r,1� . —` aU K �� •. J o„ �.r vvaml f MaA)nEx )run Mryy De unxll .. ' I9unru p a/r Av'ws ruu n n w IeWmgvd em I f J I J � �” Ni �dFn�rr U� m @ Management M ire Ore M arzµdi r� ' r "I'll US.kxpYNUs@ bK�pgMYYPM iPik r �RWJY. +i�v N �,f( � N ^"'� amrlywrcre , .ANMN1vrV Corporate Vision / Strategic Goals (Levels of Service) IVSAipAXffaU t}piNrrb cul Yfl Xabb®I12?S I Nuditical Igrlup s I& ti mra Cavo r s 1 �I ,,,,(II ,,,, ,,,,,,, .. Demand Life Cycle Management Financiat Marimern-n! „,,,„,„„, .,. = ^-� — ,..,u Demand Ute cyclo Management fflnancM1ai 9Wyr n Management .. �•^^ Management De unxll Cvu nt/ [mga 4roa z is iAW4Ytldrele ... rreultG,u guIIIWI '�. b",narMaNW .......... trematd �dFn�rr U� m S f bl � F Y � 4 Management rr! fl adoa4al Ma,ne� Nllannine +i�v N �,f( � N ^"'� amrlywrcre f �IllllllUNNI T� p II�� Sp'ottxn cuaanmmdba pubNir, Nmy yNut ran ce t&WVuk � ah Ifam ------------------ mwient . 111 iNo-.sn�m easu� Monitoring andl Reporting , , , Ir f ,,, aim, aatBro � R Ail kVt tgrs+4wbYKM Cnammacrermcu /�enrcyr IC'ry Wmriorrmwgs f Ata ras � e F004h Nada, g, J Asset Management Resources 11 Asset Management Tools corporate Vision,/ Strategic Goals (levels of Service) Nuditical Igrlup s I& ti mra Cavo r s 1 �I ,,,,,,,,�,,,,,, - .. Demand Life Cycle Management Financiat Marimern-n! „,,,„,„„, .,. = ^-� — ,..,u aMu i Management Currant/..�, 9Wyr n f) r De unxll loan na Mwer uAn�uNwv z is cllanwraVrug .......... trematd wruN nmixor” n S f bl � F Y � 4 Management rr! PNaa � u � rWmui 1, Monitoring and Repo"I ne Sp'ottxn cuaanmmdba pubNir, Nmy yNut ran ce t&WVuk N,°au rfsnaw7r�rq.., l ------------------ Based on the representations of the Asset Management Framework above, the key components of the AM Framework used to evaluate the City's current asset management practices includes the following: 1. The six questions of Asset Management: a) What do you have? b) What is it worth? c) What is its condition? d) What do you need to do to it? e) When do you need to do it? f) How much money do you need? 17 2. The four dimensions of the AM Framework including: a) AM activities b) AM work flow business processes c) AM resources d) AM tools 4. Issues 12 The City's current asset management practices were evaluated based on information gained during a series of interviews conducted between December 14, 2016 and January 05, 2017 with the various service groups and departments. The detailed information gathered during these interviews provides the basis for the asset management activities to be included in the department -specific Asset Management Road Map to be developed as part of the current project Phase 1, while recurring and organization -wide issues provides the basis of the asset management improvement strategies presented below. The following recurring and organization -wide issues were identified: 1. Organization is fragmented 2. Data is fragmented; 3. It is difficult to extract information from data systems; 4. Priority/risk ratings for assets are not (well) defined; 5. Levels of service and key performance indicators are not (well) defined; 6. Asset renewal and replacement budget is based on financial capacity, not asset needs; 7. Financial and asset management plan is a single year deep; and 8. Asset management is reactive, not pro -active. iF:3 13 5. Strategies The asset management improvement strategies presented below were formulated by identifying which of the six questions of asset management could not be answered due to the recurring and organization -wide issues, and which of the four dimensions of the asset management framework were the root causes of this. 5.1. Improve Departmental Interaction The fragmentation of the organization (limited interaction between service groups/departments) interferes with answering the following asset management questions in an integrated manner (i.e. between different departments owning assets that affect each other, as well as between finance and other departments): what is its condition, what do you need to do to it, when do you need to do is, and how much money do you need? The root cause of this is a lack of work flow business processes, while the fragmentation of data (issue 2) and the difficulties in extracting information from the data systems (issue 3) are related and aggravate the organizational fragmentation. Strategy: Improve the work flow business processes between departments to increase the integration of asset renewals and replacements between both different hard -asset departments as well as between these departments and finance. 5.2. Improve Data Sharing The fragmentation of data both between different departments and within individual departments interferes with answering all six asset management questions. The root cause for this is a lack of asset management tools, while the organizational fragmentation (issue 1) and the difficulties in extracting information from the data systems (issue 3) are related and aggravate the data fragmentation. Strategy: Improve the asset management tools that integrate data sources and systems to increase the availability and sharing of asset data within the entire organization. 5.3. Improve Data Software The difficulty in extracting information from the current software packages used to collect and store data interferes with answering all six asset management questions. The root cause for this is a lack of asset management tools, while the organizational fragmentation (issue 1) and the data fragmentation (issue 2) are related and aggravate the difficulties in extracting asset management information from the data systems. Strategy: Improve the asset management tools to facilitate the generation and extraction of asset management information from stored asset management data. iLel 14 5.4. Define Asset Risks The lack of priority/risk ratings for all the assets being managed interferes with answering the following asset management questions: what is its condition and when do you need to do it? The root causes for this are deficiencies within the asset management activities (condition assessments and risk quantification) and resources. Strategy: Improve/increase the asset management activities and resources needed to prioritize asset renewals and replacements based on defined and quantified asset risks. 5.5. Define Performance Metrics The lack of defined levels of service and key performance indicators interferes with answering the following asset management questions: what do you need to do to it and how much money do you need? The root cause for this is a deficiency within the asset management activities. Strategy: Implement/refine asset management activities to define levels of service and monitor and report on the effectiveness of asset management. 5.6. Define Asset Renewal and Replacement Needs The lack of well-defined asset renewal and replacement needs interferes with answering the following asset management questions: what do you need to do to it, when do you need to do it, and how much money do you need? The root cause for this is a deficiency within the asset management activities. Strategy: Implement asset management activities to define and quantify the (financial) asset renewal and replacement requirements. 5.7. Lengthen Planning Horizon The lack of planning horizon depth (currently a single year) interferes with the following asset management questions: what do you need to do to it, when do you need to do it, and how much money do you need? The root cause for this is a deficiency within the asset management activities, while the lack of well-defined asset renewal and replacement needs is related and aggravates the lack of planning horizon depth. Strategy: Implement asset management activities to increase the depth (duration) of asset management and financial plans. The reactive (rather than pro -active) nature of asset management activities in the City of Saint John is a direct result of the short planning horizon and the lack of well-defined asset renewal and replacement needs. Implementing the two strategies presented above to address these two issues will also make the asset management activities more pro -active. 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AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager Kevin Fudge Kevin Fudge m I Jeff Trail RECOMMENDATION Staff recommends that the Finance Committee: Provide feedback to the City Manager on the six month pilot of the expanded mandate of the Finance Committee structure of governance. EXECUTIVE SUMMARY This report seeks input from the Finance Committee on the effectiveness of the standing committee structure, intended to be piloted by the City for a six month period. PREVIOUS RESOLUTION On July 18 2016 it was resolved that Common Council: "Directs the City Manager to establish two Committees (Finance and Growth) as a six month pilot project commencing September 2016" and "Directs the City Manager to schedule a review of the Committee structure in March of 2017 following six months of assessment". STRATEGIC ALIGNMENT The standing committee structure is intended to optimize governance, ensure greater accountability and to strengthen the role of Common Council in providing strategic leadership. The Finance Committee appointed by Council enables leadership by Council in one of its key priorities related to Fiscal Responsibility. -2 - REPORT On July 18, 2016 Common Council approved the formation of two standing committees, namely the Finance and Growth Committees, as a pilot for a standing committee model of governance. The City Manager was directed to report back to Council in March of 2017 on the effectiveness of the standing committee structure. This report is intended to seek the Finance Committee's input on the success of the pilot project. Attached as background, is the terms of reference approved by Council for the Finance Committee. Staff has provided a series of questions to guide the Committee's feedback on the following topic areas: • Mandate and core responsibilities; • Committee Structure and meeting procedures; • Relationship with Agencies, Boards and Commissions; • Council reporting; • Focus on the Committee's priorities; • Information required to support the Committee's operations; and • Measuring success. Mandate & core Responsibilities The mandate for the Finance Committee is defined in sections one and four of terms of reference. It will be the work of the Committee to review the financial information respecting the City's activities, monitor the audit process, make budget recommendations to Common Council, monitor continuous improvement initiatives, and assess the existence and adequacy of systems of corporate control and management of business risk. 1. How effective has the Committee been in delivering on the mandate and core responsibilities? Are there any changes you would suggest? Committee Structure and Procedures The Committee terms of reference (section two and three) addresses the committee structure, membership, voting and meeting procedures. The frequency of meetings is identified as monthly, with the opportunity to meet more frequently as required. Over the course of the six month pilot program, the Committee has met a total of 10 times since August, 2016. These meetings have involved significant commitment of time for Committee members, with meetings occurring on a more frequent basis. The quality of input and thoughtful discussion has been valuable and contributed positively to the development of the General and Utility Operating and Capital Budgets. 2. Does the Committee have any feedback to share on the Committee's structure and meeting procedures? Are there are any areas of change or improvement you would highlight in terms of enabling more efficient meetings? I' -3 - Council's Strategic Priorities The terms of reference also identified that the Committee would receive regular reporting and presentations on other strategic initiatives such as Continuous Improvement and Asset Management. Over the course of the past several months the Committee has received detailed updates and presentations on both initiatives. 3. How satisfied is the Committee on the regular updates in Continuous Improvement and Asset Management and are there further areas of improvement Committee members would identify going forward to improve the process? Council Reporting The Committee is required to provide regular reporting to Council and at minimum on an annual basis. Since its creation the Committee has provided direction to Council on the following items: • An approved terms of reference for the Committee • Approved General Operating & Capital Budgets • Approved Utility Operating & Capital Budgets • Approved the Year End Audit Plan • Approved Year End Forecast Reports • Approved $2 million Dollar General Operating Reserve • Approved $500,000 in additional funding for the SCDWP Reserve • Asset Management Policy Information reauired to suaaort the Committee's operations The Committee has received a significant volume of materials as background to guide the Committee's discussions on topics related to Finance. These include presentations on variety topics. 4. Has the Committee received adequate information required to support the Committee's operations? Are there changes you would suggest to deliver this information more effectively to the Committee in the future? Measuring Success The Committee successfully achieved the expanded mandate of budget recommendations for all City budgets in early December. It also has approved the Audit Plan for 2017, endorsed Asset Management and Long Term Planning principles, and recommended expanded reserves to support fiscal responsibility. S. Does the Committee believe it has made progress towards its desired outcomes during the six month pilot project? Overall, does the W -4 - Committee see the pilot project as a success for the standing committee governance structure, why or why not? SERVICE AND FINANCIAL OUTCOMES These recommendations will support and improve delivery of Council priorities related to Fiscal Responsibility. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The content has benefitted from the input and feedback from the City Manager and the Finance & Administration team as well as through discussions with the Commissioner of Growth & Community Planning. ATTACHMENTS Finance Committee Terms of Reference City of Saint John Finance Committee Terms of Reference 1. MANDATE Common Council has established a Finance Committee and has given the Committee the administrative powers and duties set out herein. The mandate of the Finance Committee includes review of financial reporting, audit, accounting systems, and internal controls for purposes of making recommendations. Common Council has directed the City Manager to establish an expanded mandate for the Finance Committee as a 6 month pilot project, commencing September 2016. The expanded mandate of the Finance Committee includes budget development, forecasting, fiscal management, resource allocation, open data, information management and continuous Improvement. 2. MEMBERSHIP a. The Finance Committee will be comprised of a Chair, Vice Chair, and 3 other members. (All Council Members); b. The Chair of the Finance Committee shall be selected by the Committee; c. Common Council shall make appointments to the Committee with rotating membership every two years; d. Where a member of the Finance Committee fails to attend three consecutive meetings of the Finance Committee without approval of the Committee, the member can be struck from the Committee membership and replaced by an appointment of Council; e. In the event that any member ceases to be a member of the Finance Committee before the expiration of their term, Council may appoint another person to be a member for the un -expired portion of the term; f In all other respects, the rules of procedure for the Committee shall be governed by the City's Council Procedures Bylaw insofar as it may be applicable; and g. The Chairperson will act as a liaison between the Committee and City Council. ICU 3. MEETINGS a. The Finance Committee shall meet monthly and/or as required at the call of the Committee Chair; b. Finance Committee meetings will be open to the public in accordance with the requirements of Section 10.2 of the Municipalities Act. The public may be excluded only in the circumstances identified therein; c. Meetings shall be set for 1 to 2 hours in duration, but can extend beyond 2 hours at the discretion of the Committee; d. All decisions of the Committee shall be in the form of resolutions duly passed by a majority of its members present. The Committee shall strive to reach consensus on issues, and shall forward recommendations in the form of Finance Committee resolutions to the Council; e. Quorum for any meeting will be at least fifty (50) percent of the number of members of the Committee; f Finance Committee meetings shall be attended by the City Manager, the Commissioner of Finance, the Deputy City Manager and a representative from the External Auditors. In the event of the Commissioner of Finance's inability to attend, a person designated by him or her for that purpose shall do so; g. The Commissioner of Finance or the City Manager may have other employees attend with them provided the Committee consents; and h. The External Auditors shall have free and confidential access to the Finance Committee. 4. ADMINISTRATIVE POWER AND DUTIES It will be the work of the Committee to review the financial information respecting the City's activities, monitor the audit process, make budget recommendations to Common Council, monitor continuous improvement initiatives, and assess the existence and adequacy of systems of corporate control and management of business risk. As a consequence of performing that work the Committee will report in writing to Council and/or provide written policy recommendations to Council with respect to: a. The independence, professional qualifications and audit scope and approach used by auditors; b. The planned activity and results of the external audit; c. Assessment of business risk and internal controls; d. The results of the annual financial audit and recommendation of approval of the financial statements; e. The General Operating and Capital Budgets; f The Utility Operating and Capital Budgets; C�� g. Property Tax Rates and Utility rates; h. Proposals for tendering for External Audit services; i. Long Term Financial Plans; j. Continuous Improvement initiatives; and k. Other matters as the Committee believes are relevant to the financial management of the City's affairs or as referred to them by Common Council. 5. REPORTING a. The Finance Committee will be provided with secretarial support by the Common Clerk's Office; b. The Common Clerk will ensure that as soon as practicable after each meeting, minutes of that meeting including the names and titles of all persons present and a record of all decisions reached, are prepared and distributed to all Members; and c. The Committee Chair shall report to Common Council at least annually on the activities of the Committee and a copy of the minutes of each meeting of the Committee will be made available to members of Common Council. MA