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2017-09-18_Agenda Packet--Dossier de l'ordre du jourCity of Saint John Common Council Meeting AGENDA Monday, September 18, 2017 6:00 pm Council Chamber Please use Chipman Hill entrance S'il vous plait utiliser I'entree Chipman Hill Si vous avez besoin des services en francais pour une reunion de Conseil communal, veuillez contacter le bureau du greffier communal au 658-2862. Pages 1. Call to Order 1.1 Lieutenant Govemor's Award of Merit in Architecture for the architectural design 1 - 7 of the C.E. (Nick) Nicolle Community Centre 2. Approval of Minutes 2.1 Minutes of September 5, 2017 8-22 3. Approval of Agenda 4. Disclosures of Conflict of Interest 5. Consent Agenda 5.1 Fundy Regional Service Commission - 2018 Draft Budget (Recommendation: 23-28 Refer to Finance Committee) 5.2 Saint John Parking Commission - Appointment of Christian McIntosh - Badge 29-30 #9958 Canadian Corps of Commissionaires as a Bylaw Enforcement Officer (Recommendation in Report) 5.3 Proposed Purchase of Bunker Gear for Saint John Fire Department 31 -33 (Recommendation in Report) 5.4 Land Acquisition - Portion of Civic #491 City Line (Recommendation in Report) 34-35 5.5 Land Acquisitions - Portions of Civic #483 and #487 City Line (Recommendation 36-38 in Report) 1 Poeta Sy: (L 5.6 License Agreements - Eastiink and Bell Mobility (Recommendation in Report) 39-70 5.7 2018 Canada 55+ Games Sponsorship - Request to Present (Recommendation: 71 -73 Refer to the Clerk to Schedule) 5.8 Update: Market Place Splash Pad - ACOA Funding Application 74-75 (Recommendation: Receive for Information) 5.8.1 Province of New Brunswick - Approval of Financial Contribution 76-81 (Recommendation: Receive for Information ) 5.9 Enterprise Saint John - Summary Report presented to Regional Oversight 82-87 Committee (Recommendation: Receive for Information) 5.10 Merchant Agreement - Chase Paymentech (Recommendation in Report) 88-95 5.11 Contract No. 2017-21 Crack Sealing 2017 (Recommendation in Report) 96-98 5.12 Fall 2017 Debenture Application (Recommendation in Report) 99-106 5.13 Saint John Industrial Parks - Acceptance of a Municipal Services Easement 107-108 (Recommendation: Assent to Proposed Municipal Services Easement) 5.14 C. Kilpatrick - Rezoning of Land at Rockwood Park for Development 109-109 (Recommendation: Receive for Information) 5.15 D. Ainsworth - Rockwood Park (Recommendation: Receive for Information) 110-110 5.16 54th IMCL Conference on Public Places (Recommendation: Recieve for 111 - 114 Information) 5.17 Milford Park Committee - Request for Funding (Recommendation: Refer to City 115-122 Manager) 5.18 Lorneville Playground Restoration Project (Recommendation: Refer to the City 123-124 Manager) 5.19 Fundy Soccer - Request for Sponsorship (Recomemndation: Receive for 125-125 Information) 6. Members Comments 7. Proclamation 7.1 Wellness Week - October 1 to 7, 2017 126-126 8. Delegations / Presentations 8.1 Municipal Property Tax Issues in the City of Saint John 127-228 8.2 Saint John Arts Centre 229-240 K 9. Public Hearings - 6:30 p.m. 10. Consideration of By-laws 10.1 Amendment to the Taxi Cab By -Law (3rd Reading) 10.2 Stop Up and Close - McLean Street (3rd Reading) 11. Submissions by Council Members 11.1 Support Letter for NBCC's application to NSERC PromoScience (Mayor Darling) 11.2 Removal of Tucker Park from the Roadmap to Smart Growth (Councillor MacKenzie) 11.3 Rural Road Upgrade Program (Councillor Norton) 11.4 Support Letter for Symphony NB (Mayor Darling) 12. Business Matters - Municipal Officers 12.1 Recreation Facility Master Plan Strategy 12.1.1 Forest Hills District Park Public Consultation 12.2 2018 Water and Sewerage Utility Fund Capital Budget 12.3 2018 General Fund Capital Budget 12.4 Recommendation 1671 Sandy Point Road Development 13. Committee Reports 14. Consideration of Issues Separated from Consent Agenda 15. General Correspondence 16. Supplemental Agenda 17. Committee of the Whole 17.1 Career Transition Funding 17.2 J. Bezanson Letter re Funding for Saint John County Courthouse as New City Hall Building 18. Adjournment K3 241 -247 248-249 250-251 252-252 253-253 254-255 256-279 280-290 291-299 300-313 314-406 407-407 408-408 City of Saint John Common Council Meeting Monday, September 18, 2017 Committee of the Whole 1. Call to Order Si vous avez besoin des services en fran�ais pour une r6union de Conseil communal, veuillez contacter le bureau du greffier communal au 658-2862. Each of the following items, either in whole or in part, is able to be discussed in private pursuant to the provisions of subsection 10.(2)(4) of the Municipalities Act and Council / Committee will make a decision(s) in that respect in Open Session: 2:00 p.m., 8th Floor Boardroom, City Hall 1.1 Financial Matter 10.2(4)(c) 4:30 p.m., 8th Floor Boardroom, City Hall 1.1 Approval of Minutes 10.2(4) 1.2 Staffing Matter 10.2(4)(b) 1.3 Financial Matter 10.2(4)(c) 1.4 Financial Matter 10.2(4)(c) 1.5 Financial Matter 10.2(4)(c) 1.6 Financial Matter 10.2(4)(c) 1.7 Agreement 10.2(4)(b) C! Ville de Saint John Seance du conseil communal Lundi 18 septembre 2017 18 h, salle du conseil Comit6 pl6nier 1. Ouverture de la s6ance Si vous souhaitez obtenir des services en fran�ais pour une seance du conseil communal, veuillez communiquer avec le bureau de la greffiere communale au 658-2862. Chacun des points suivants, en totalite ou en partie, peut faire 1'objet d'une discussion en prive en vertu des dispositions prevues a Particle 10 de la Loi sur les municipalites. Le conseil/comite prendra une ou des decisions a cet egard au cours de la seance publique 16 h 30 — Salle de conf6rence, 8e 6tage, h6tel de Ville 1.1 Approbation du proces-verbal — paragraphe 10.2(4) 1.2 Question relative au personnel — alinea 10.2(4)b) 1.3 Question financiere — alineas 10.2(4)c) et d) 1.4 Question financiere — alinea 10.2(4)c) 1.5 Question financiere — alinea 10.2(4)c) 1.6 Question financiere — alinea 10.2(4)c) 1.7 Question financiere — alinea 10.2(4)c) 1.8 Question financiere — alinea 10.2(4)c) S6ance ordinaire 1. Ouverture de la s6ance 1.1 Prix d' excellence du lieutenant-gouverneur en architecture pour la conception architecturale du Centre communautaire C.E. (Nick) Nicolle. 2. Approbation du proces-verbal 2.1 Proces-verbal de la seance tenue le 5 septembre 2017 3. Adoption de Pordre du jour 4. Divulgations de conflits d'int6rets 5. Questions soumises a Papprobation du conseil 5.1 Commission de services r6gionaux de Fundy — Budget provisoire pour 2018 (recommandation : accepter a titre informatif) 5.2 Commission sur le stationnement de Saint John — Nomination de Christian McIntosh, num&ro d'insigne 9958 du Corps canadien des commissionnaires, en taut qu'agent charg& de 1'ex&cution des arrWs municipaux (recommandation figurant au rapport) 5.3 Projet d'achat de tenues de feu pour le Service d'incendie de Saint John (recommandation figurant au rapport) 5.4 Acquisition de terrains — Parcelle situ&e au num&ro de voirie 491, chemin City Line (recommandation figurant au rapport) 5.5 Acquisition de terrains — Parcelles de terrain situ&es aux num&ros de voirie 483 et 487, chemin City Line (recommandation figurant au rapport) 5.6 Contrats de licence — Eastlink et Bell Mobilit& (recommandation figurant au rapport) 5.7 Commandite des Jeux du Canada des 55 ans et plus de 2018 — Demande visant a se pr&senter levant le conseil (recommandation : transmettre a la greffi&re pour qu'une date soit fixe) 5.8 Mise a jour: Aire de jeux d'eaux a la place Market — Demande de financement a 1'Agence de promotion &conomique du Canada atlantique (recommandation : accepter a titre informatif) 5.8.1 Province du Nouveau -Brunswick — Approbation de contribution financi&re (recommandation : accepter a titre informatif) 5.9 Entreprise Saint John — Rapport sommaire pr&sent& au Comit& de surveillance r6gional (recommandation : accepter a titre informatif) 5.10 Entente avec les commer�ants — Chase Paymentech (recommandation figurant au rapport) 5.11 Contrat ri 2017-21 — Calfeutrage des fissures 2017 (recommandation figurant au rapport) 5.12 Demande d' obligation a F automne 2017 (recommandation figurant au rapport) 5.13 Saint John Industrial Parks — Acceptation d'une servitude pour services municipaux (recommandation : donner son assentiment a la servitude propose pour services municipaux) 5.14 C. Kilpatrick — Rezonage du terrain au pare Rockwood aux fins d'am&nagement (recommandation : accepter a titre informatif) 5.15 D. Ainsworth : pare Rockwood (recommandation : accepter a titre informatif) 5.16 54' conference sur les lieux publics IMCL (International Making Cities Livable) [recommandation : accepter a titre informatifJ 5.17 Comite du pare Milford — Demande de financement (recommandation transmettre au directeur general) 5.18 Projet de restauration du terrain de jeux de Lorneville (recommandation transmettre au directeur general) 5.19 Fundy Soccer — Demande de commandite (recommandation : accepter a titre informatif) 6. Commentaires pr6sent6s par les membres 7. Proclamation 7.1 Semaine de mieux-etre — Du 1' au 7 octobre 2017 8. D616gations et pr6sentations 8.1 Imp6ts fonciers municipaux dans la Ville de Saint John 8.2 Centre des arts de Saint John 9. Audiences publiques —18 It 30 10. Etude des arrWs municipaux 10.1 Modification a Farr&& sur les taxis (troisieme lecture) 10.2 Fermeture et barrage de la rue McLean (troisieme lecture) 11. Interventions des membres du Conseil 11.1 Lettre d' appui a la demande du College communautaire du Nouveau - Brunswick aupres du Conseil de recherches en sciences naturelles et en g6nie a propos du Programme PromoScience (maire Darling) 11.2 Suppression du pare Tucker de la feuille de route sur la croissance intelligente (conseiller MacKenzie) 11.3 Programme de r6fection des routes rurales (conseiller Norton) 11.4 Lettre d' appui a Symphonic Nouveau -Brunswick (maire Darling) 12. Affaires municipales 6voqu6es par les fonctionnaires municipaux 12.1 Strategie du plan d'amenagement des installations de loisirs 12. 1.1 Consultation publique sur le pare du district Forest Hills 12.2 Budget d'immobilisations du fonds du reseau d'aqueduc et d'egouts pour 2018 12.3 Budget d'immobilisations du fonds d'administration de 2018 13. Rapports deposes par les comites 14. Etude des sujets ecartes des questions soumises a Papprobation du conseil 15. Correspondance generale 16. Ordre du jour supplementaire 17. Comite plenier 17.1 Financement de transition de carriere 17.2 J. Bezanson lettre : financement du palais de justice du comte de Saint John en taut que nouveau batiment de la mairie 18. Levee de la seance a o /�rr�>trrJJl/ N + �,,, uuuuuuuuuuu��illuuuuuuuuu� 10 �111��1sstiti�� N �,,, uuuuuuuuuuu��illuuuuuuuuu� 10 �111��1sstiti�� N mc : m j 0 ix� LO I��m'� IN uuum°11lluuuuuuu Immm uuuumu umi�uuuuuuuuuuuuuum uuuumu umi�uuuuuumuuuuuuuu 0 umlumuumuuuuunn uuuuuuuuuuuuuuuuuuuuu �ummuuuuuumu omu uuuumu umi�uuuuuuuuuuuuuum I��m'� IN uuum°11lluuuuuuu uuuuuuuuuuu�uuumiili umuM� lllllllllll i �ummuuuuuumu uuuumu umi�uuuuuumuuuuuuuu � umil�uuuuuuuuuuuuuuu �. II c7l uuuumu uuuuuuui�llluuuuuuuuuuuumu uuuumu umi�uuuuuuuuuuuuuum uuuuuuuuuuuuuuuuuumu 0 0 I rl- 1► 11►10j11110011::10101WTI :aLTA 1IIIisIILI10 COMMON COUNCIL OF THE CITY OF SAINT JOHN SEPTEMBER 5, 2017 AT 6:00 PM IN THE COUNCIL CHAMBER Present: Mayor Don Darling Deputy Mayor Shirley McAlary Councillor -at -Large Gary Sullivan Councillor Ward 1 Greg Norton Councillor Ward 1 Blake Armstrong Councillor Ward 2 Sean Casey Councillor Ward 2 John MacKenzie Councillor Ward 3 Gerry Lowe Councillor Ward 3 Donna Reardon Councillor Ward 4 David Merrithew Regrets Councillor Ward 4 Ray Strowbridge Also Present: City Manager Jeff Trail Deputy City Manager N. Jacobsen City Solicitor J. Nugent Commissioner Finance and Administrative Services K. Fudge Commissioner of Transportation and Environment M. Hugenholtz Commissioner Growth and Community Development J. Hamilton Commissioner Saint John Water B. McGovern Fire Chief K. Clifford Police Chief J. Bates Common Clerk J. Taylor Administrative Officer R. Evans 1. Call to Order The Mayor called the meeting to order. 2. Approval of Minutes 2.1 Minutes of August 8, 2017 Moved by Councillor Lowe, seconded by Deputy Mayor McAlary: RESOLVED that the minutes of the meeting of Common Council, held on August 8, 2017 be approved. Moved by Deputy Mayor McAlary, seconded by Councillor Lowe: RESOLVED that the agenda of this meeting be approved with the addition of items: 17.1 Arena Canteen Operators 17.2 Tri -City Partnership 17.3 J. Bezanson Letter re Donation for New City Hall MOTION CARRIED. Moved by Councillor Lowe, seconded by Councillor Sullivan: RESOLVED that item 12.4 ACOA Funding for West Side Splash Pad be moved forward on the agenda. 1► 100000114Y1:k]k]11191 12.4 ACOA Funding for West Side Splash Pad Moved by Councillor Lowe, seconded by Councillor Armstrong: RESOLVED that the City of Saint John apply for the outstanding balance of the West Side splash project, on behalf of the Carleton Community Centre Splash Pad Committee, and that staff be directed to send the application and supporting documents as soon as possible to ACOA. MOTION CARRIED with Councillors Casey and Merrithew voting nay. 4. Disclosures of Conflict of Interest Councillor Lowe declared a conflict with item 12.6 Taxi By -Law Update and Recommended Amendments to A By -Law Respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John S. Consent Agenda 5.1 That as recommended by the City Manager in the submitted report M&C 2017-215: Designation of Community Standards Coordinator, 1. WHEREAS the Common Council of The City of Saint John has enacted certain by-laws pursuant to the authority of the Municipalities Act, R.S.N.B 1973, c. M-22, and amendments thereto, (the "Municipalities Act") including the Saint John Unsightly Premises and Dangerous Buildings and Structures By- law, By- law Number M- 30 and amendments thereto, and it may from time to time be necessary to make inspections for the administration of the By-law; AND WHEREAS subsection 102.1(1) of the Municipalities Act provides that a council may authorize officers to enter at all reasonable times upon any property within its jurisdiction for the purpose of making any inspection that is necessary for the administration the By-law: NOW THEREFORE BE IT RESOLVED, that Mark O'Leary, Community Standards Officer, is hereby appointed as an inspection officer and authorized to enter at all reasonable times upon any property within the territorial boundaries of the City of Saint John for the purpose of making any inspection that is necessary for the administration of the Saint John Unsightly Premises and shall continue until he ceases to be an employee of the Growth and Community Development Services department of The City of Saint John or until rescinded by Common Council, whichever comes first. 2. WHEREAS the Common Council of The City of Saint John has enacted certain by-laws pursuant to the authority of the Community Planning Act, R.S.N.B 1973, c. C-12, and amendments thereto, (the "Community Planning Act") including the Saint John Building By-law, By-law Number C.P. 102 and amendments thereto, and it may from time to time be necessary to make inspections for the administration of this By-laws; AND WHEREAS subsection 92(1) of the Community Planning Act provides that a council may authorize persons to enter at all reasonable times upon any property within its jurisdiction for the purpose of making any inspection that is necessary for the administration of a by-law: NOW THEREFORE BE IT RESOLVED, that Mark O'Leary, who is a Community Standards Coordinator, is hereby authorized to enter at all reasonable times upon any property within the territorial boundaries of the City of Saint John for the purpose of making any inspection that is necessary for the administration of the Saint John Building By-law, effective immediately, and this authorization shall continue until he ceases to be an employee of the Growth and Community Development Services department of The City of Saint John or until rescinded by Common Council, whichever comes first. 3. WHEREAS the Common Council of The City of Saint John has enacted certain by-laws pursuant to the authority of the Community Planning Act, R.S.N.B 1973, c. C-12, and amendments thereto, (the "Community Planning Act") including the Saint John Building By-law, By-law Number C.P. 102, and amendments thereto, and it may from time to time be necessary to make orders for the administration of these By-laws; AND WHEREAS subsection 93(1) of the Community Planning Act provides that a council may authorize persons to, when a development is undertaken in contravention of the Community Planning Act, a by-law or regulation under the Community Planning Act, a by-law or terms and conditions imposed on the development, order the cessation of the development, alteration of such development so as to remove the contravention, or the doing of anything required to restore the land, building or structure to its condition immediately prior to the undertaking of such development: NOW THEREFORE BE IT RESOLVED, that Mark O'Leary who is a Community Standards Coordinator, is hereby authorized to, when a development is undertaken in contravention of the Community Planning Act, the Saint John Building By-law or the terms and conditions imposed on the development, order the cessation of the development, alteration of such development so as to remove the contravention, or the doing of anything required to restore the and community uevelopment Services department of I he city of Saint John or until rescinded by Common Council, whichever comes first. 4. WHEREAS the Common Council of The City of Saint John has enacted certain by-laws pursuant to the authority of the Municipalities Act, including the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, By- law Number M-30, and amendments thereto, (the "Saint John Unsightly Premises and Dangerous Buildings and Structures By-law") and it may from time to time be necessary to commence proceedings in the Provincial Court of the Province of New Brunswick, when a person has contravened or failed to comply with the said By-law; AND WHEREAS subsection 14(1) of the Police Act provides that a council may appoint persons as By-law Enforcement Officers for a municipality; AND WHEREAS subsection 190.01(3) of the Municipalities Act provides that an officer appointed by council may notify the owner or occupier of premises, a building or structure by notice in the form prescribed by regulation when a condition exists pursuant to subsections 190.01(1), 190.01(1.1) or 190.01(2) of the said Act; AND WHEREAS section 101 of the Municipalities Act provides that proceedings for breach of a by-law shall be commenced in the name of the clerk of the municipality or such other person as is designated for that purpose by the council: NOW THEREFORE BE IT RESOLVED, that Mark O'Leary is hereby appointed as a By-law Enforcement Officer with respect to the enforcement of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, effective immediately, and this appointment shall continue until he ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes f rst; AND BE IT FURTHER RESOLVED, that Mark O'Leary is hereby appointed and authorized to notify owners and occupiers with respect to premises, buildings or structures that are unsightly; buildings or structures that are a hazard to the safety of the public by reason of being vacant or unoccupied; buildings or structures that are a hazard to the safety of the public by reason of dilapidation or unsoundness of structural strength, as set out in the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, effective immediately, and this appointment and authorization shall continue until he ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes first; AND BE IT FURTHER RESOLVED, that Mark O'Leary is hereby designated and authorized to lay informations in the Provincial Court of the Province of New Brunswick for breach of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, effective immediately, and this designation and authorization shall continue until he ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes first. law, By-law Number M-20, City of Saint John Flood Risk Areas By-law, By-law Number C.P. 11, Saint John Building By-law, By-law Number C.P. 101, and The Zoning By-law, By-law Number C.P. 110, including all amendments thereto, and it may from time to time be necessary to commence proceedings in the Provincial Court of the Province of New Brunswick, when a person has contravened or failed to comply with the said By-law; AND WHEREAS subsection 14(1) of the Police Act provides that a council may appoint persons as By-law Enforcement Officers for a municipality; AND WHEREAS section 101 of the Municipalities Act provides that proceedings for breach of a by-law shall be commenced in the name of the clerk of the municipality or such other person as is designated for that purpose by the council: NOW THEREFORE BE IT RESOLVED, that Mark O'Leary is hereby appointed as a By-law Enforcement Officer with respect to the enforcement of the Saint John Dog Control By-law, the Mobile Home Parks By-law, the City of Saint John Flood Risk Areas By-law, the Saint John Building By-law, and The Zoning By-law, effective immediately, and this appointment shall continue until he ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes first; AND BE IT FURTHER RESOLVED, that Mark O'Leary is hereby designated and authorized to lay informations in the Provincial Court of the Province of New Brunswick for breach of the Saint John Dog Control By-law, the Mobile Home Parks By-law, the City of Saint John Flood Risk Areas By-law, the Saint John Building By-law, and The Zoning By-law, effective immediately, and this appointment and authorization shall continue until he ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes first. 6. WHEREAS subsection 100.2(a) of the Municipalities Act provides that offences under subsection 94.2(3) or 102.1(1.2) of the said Act or offences in respect of a by-law under subsection 94(1) or 94(3) or section 190 of the Municipalities Act, are prescribed offences for the purposes of section 9 of the Provincial Offences Procedure Act, S.N.B. 1987, c. P-22.1, and amendments thereto; AND WHEREAS subsection 100.2(b) of the Municipalities Act provides that a by-law enforcement officer appointed under section 14 of the Police Act, and designated by resolution of the council is an authorized person who may serve tickets in respect to offences referred to in subsection 100.2(a) of the Municipalities Act: NOW THEREFORE BE IT RESOLVED, that Mark O'Leary is hereby designated and authorized as a person to serve tickets in respect to offences referred to in paragraph 100.2(a) of the Municipalities Act, effective immediately, and this designation and authorization shall continue until he ceases to be an employee of Growth and Community Development Services of The City of Saint John or until it is rescinded by Common Council, whichever comes first. prescribed by regulation which requires that the corporate seal of the municipality to be affixed. NOW THEREFORE BE IT RESOLVED, that Jonathan A. Taylor, Common Clerk, is hereby authorized to affix the corporate seal of The City of Saint John to a Certificate of Discharge that is issued by Mark O'Leary under the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, and such authorization shall continue until Jonathan A. Taylor ceases to be the Common Clerk of The City of Saint John or until it is rescinded by Common Council, whichever comes first. 5.2 That as recommended by the City Manager in the submitted report M&C 2017-216: Appointment of a Heritage Officer Pursuant to the Heritage Conservation Act, Common Council appoint Ms. Emma Sampson as a Heritage Officer for the City of Saint John pursuant to Section 54 of the New Brunswick Heritage Conservation Act. 5.3 That the One Change Inc. Request to Present be referred to the Clerk to Schedule. 5.4 That Letter from the NB Federation of Union Retirees re National Seniors Day be referred to the Clerk to Prepare Proclamation. 5.5 That the N.A. Manson Letter— Commercialization of Tucker Park be received for information. 5.6 That the Letters from J. Jorczak, C. Silcox and P. Stroud re South Korea's Dog Meat Industry/Friendship City Donghae be received for information. 5.7 That the Letter from the Canadian Commission for UNESCO re "What if I was wrong — When we talk, we learn" Campaign be received for information. 5.8 That the Letter from D. Scott re paving of Baywatch Lane be received for information. 5.9 That as recommended by the City Manager in the submitted report M&C 2017-221: Proposed Public Hearing Date — Cedar Point Estates Area and 104 Saint Catherine Street, Common Council schedule the public hearings for the City - initiated rezoning of undeveloped lands in the Cedar Point Estates area (PID Nos. 55180558 and 55156954) and the Section 39 Amendment application of Jim Knox on behalf of Jack Stephen (104 Saint Catherine Street) for Monday October 2, 2017 at 6:30 p.m. in the Council Chamber, and refer the applications to the Planning Advisory Committee for a report and recommendation. 5.10 That as recommended by the City Manager in the submitted report M&C 2017-218: Canada Games Aquatic Centre (CGAC) Air Handling Units Replacement - Additional Cost, Common Council approve additional cost of $59,448.40+HST required to address unforeseen mechanical, electrical and safety code issues found during the replacement of the two main ventilation systems at Canada Games Aquatic Center. 5.11 That as recommended by the City Manager in the submitted report M&C 2017-214: Contract No. 2017-16: District Meter Installations 2017, the contract be awarded to the low Tenderer. Fairville Construction Ltd.. at the tendered Brice of 5.12 That the submitted report M&C2017-222: Carleton Community Centre ASD Model Update, be received for information. 5.13 That the submitted report M&C2017-228: Public Information Session: Fundy Heights SCADA Tower, be received for information. 5.14 That as recommended by the City Manager in the submitted report M&C 2017-217: Contract No. 2017-11: Sanitary Sewer System — CSO-SSO Controls, the contract be awarded to the low Tenderer, Galbraith Construction Ltd., at the tendered price of $193,775.00 (including HST) as calculated based upon estimated quantities, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. 5.15 That as recommended by the City Manager in the submitted report M&C 2017-229: Continuous Improvement Project- Automatic Vehicle Locator System, the supply of an Automatic Vehicle Locator (AVL) System be awarded to Northern Business Intelligence at an initial cost of $33,945.00 (plus HST), and that the Mayor and Common Clerk be authorized to execute the necessary contract documents. 5.16 That the Letter from Judith Jones — Poor/Lack of Signage be referred to the Parking Commission. 5.17 That as recommended by the City Manager in the submitted report M&C 2017-232: Sculpture Saint John, Council request the assistance of the Saint John Community Arts Board with the Sculpture Saint John 2018 Symposium by recommending the 3 artists choices and proposing site locations. Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the recommendation set out for each consent agenda item be adopted. MOTION CARRIED. 6. Members Comments Council members commented on various community events. 7. Proclamations 7.1 Recovery Day— September 15, 2017 The Mayor proclaimed September 15th, 2017 as Recovery Day in the City of Saint John. 7.2 Prostate Cancer Awareness Month — September, 2017 The Mayor proclaimed September 2017 as Prostate Cancer Awareness Month in the City of Saint John. 7.3 Freedom of the City — September 16, 2017 The Mayor proclaimed the bestowing of the "Freedom of the City" on September 1 cth ')rl9 7 +- +6... -r -II—..;-- .-.;.-... I ---I f' -A-+ I Irl+,. 9 Rodney Royal Canadian Sea Cadets 268 Bras d'Or, Royal Canadian Sea Cadets 311 Halifax, Royal Canadian Sea Cadets 1691 Saint John, Royal Canadian Army Cadets 3034 Blue Mountain, Royal Canadian Army Cadets 1777 Saint John West Army Cadets 140 Kingston Peninsula, Royal Canadian Army Cadets 8. Delegations/Presentations 8.1 Regional Ice Strategy Referring to the submitted presentation, Tim O'Reilly, Deputy Commissioner of Parks and Public Spaces, and Nick Cameron, Recreation Facilitator Fundy Regional Facilities Commission, provided an overview of the Regional Ice Strategy. Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the presentation entitled Regional Ice Strategy be received for information. MOTION CARRIED. 9. Public Hearings 6:30 PM 10. Consideration of By-laws 10.1 Proposed Zoning Bylaw Amendment with Section 39 Conditions — 510 Ellerdale Street (3rd Readiniz) Moved by Deputy Mayor McAlary, seconded by Councillor Lowe: RESOLVED that the by-law entitled, "By -Law Number C.P. 111-45 A Law to Amend the Zoning By -Law of The City of Saint John", amending Schedule A, the Zoning Map of The City of Saint John, by rezoning a parcel of land having an area of approximately 2634 square metres, located at 510 Ellerdale Street, also identified as PID Number 55186720 from Two -Unit Residential (R2) to Mid -Rise Residential, be read. MOTION CARRIED. The by-law entitled, "By -Law Number C.P. 111-45 A Law to Amend the Zoning By - Law of The City of Saint John", was read in its entirety. Moved by Deputy Mayor McAlary, seconded by Councillor Lowe: RESOLVED that pursuant to Section 39 of the Community Planning Act, the development and use of the parcel of land having an area of approximately 2,634 square metres, located at 510 Ellerdale Street, also identified as PID Number 55186720 be subject to the following conditions: a) That any development of the site be in accordance with a detailed site plan to be prepared by the proponent and subject to the approval of the Development Officer, indicating the location of all buildings, structures, parking areas driveways, loading areas, signs, exterior lighting, outdoor storage areas, amenity areas, pedestrian circulation elements and other site features. This site plan is tc k- ++-,,[,^,4 +^ +1, -, I;, ,+;^- -F^, +1, k. .;1,4;-- -^r-;+ F^r +1, -r., -^,^,J b) That any development of the site shall be in accordance with a detailed landscaping plan, to be prepared by the proponent and subject to the approval of the Development Officer. This landscaping plan is to be attached to the application for the building permit for the proposed development and all landscaping illustrated on the plan must be completed within one year of completion of the building; and, c) That any building be constructed in accordance with detailed elevation plans prepared by the developer and approved by the Development Officer. These building elevation plans must be attached to the application for the building completed within one year of completion of the building. MOTION CARRIED. Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the by-law entitled, "By -Law Number C.P. 111-45 A Law to Amend the Zoning By -Law of The City of Saint John", amending Schedule A, the Zoning Map of The City of Saint John, by rezoning a parcel of land having an area of approximately 2634 square metres, located at 510 Ellerdale Street, also identified as PID Number 55186720 from Two -Unit Residential (R2) to Mid -Rise Residential, be read a third time, enacted and the Corporate Common Seal affixed thereto. 1► [0000114L1:k]k]11191 Read a third time by title, the by-law entitled, "By -Law Number C.P. 111-45 A Law to Amend the Zoning By -Law of The City of Saint John". 10.2 Proposed Zoning Bylaw Amendment with Section 39 Conditions —12, 24 and 26 Westmorland Street (3rd Readiniz) Moved by Deputy Mayor McAlary, seconded by Councillor Lowe: RESOLVED that the by-law entitled, "By -Law Number C.P. 111-46 A Law to Amend the Zoning By -Law of The City of Saint John", amending Schedule A, the Zoning Map of The City of Saint John, by rezoning a parcel of land having an area of approximately 1012 square metres, located at 12 Westmorland Street, also identified as PID Number 55222228 from Two -Unit Residential (R2) to Corridor Commercial (CC), and rezoning a parcel of land having an area of approximately 929 square metres, located at 24 and 26 Westmorland Street, also identified as PID Numbers 55158067 and 55232664 from Two -Unit Residential (R2) and Neighbourhood Community Facility (CFN) to Local Commercial (CL), be read. 1► [0000114L1:k]k]11191 The by-law entitled, "By -Law Number C.P. 111-46 A Law to Amend the Zoning By - Law of The City of Saint John", was read in its entirety. Moved by Deputy Mayor McAlary, seconded by Councillor Reardon: RESOLVED that, subject to Section 39 of the Community Planning Act, the rezoning of a parcel of land having an area of approximately 1012 square metres, located at 12 Westmorland Street, also identified as PID Number 55222228, from Two -Unit Residential (R2) to Corridor Commercial (CC), be subject to the following conditions: c. That a board -on -board fence, or a hedge used for screening purposes, be placed along the rear yard and the southern side yard of the subject site; d. That the work identified in 2(b) and 2(c) be completed within one year of the issuance of a building permit. MOTION CARRIED. Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan: RESOLVED that the by-law entitled, "By -Law Number C.P. 111-46 A Law to Amend the Zoning By -Law of The City of Saint John", amending Schedule A, the Zoning Map of The City of Saint John, by rezoning a parcel of land having an area of approximately 1012 square metres, located at 12 Westmorland Street, also identified as PID Number 55222228 from Two -Unit Residential (R2) to Corridor Commercial (CC), and rezoning a parcel of land having an area of approximately 929 square metres, located at 24 and 26 Westmorland Street, also identified as PID Numbers 55158067 and 55232664 from Two -Unit Residential (R2) and Neighbourhood Community Facility (CFN) to Local Commercial (CL), be read a third time, enacted, and the Corporate Common Seal affixed thereto. MOTION CARRIED. Read a third time by title, the by-law entitled, "By -Law Number C.P. 111-46 A Law to Amend the Zoning By -Law of The City of Saint John". Moved by Councillor Lowe, seconded by Councillor Sullivan: RESOLVED that item 12.6 Taxi By -Law Update and Recommended Amendments to A By -Law Respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John (1st and 2nd Reading) be moved forward on the agenda. MOTION CARRIED. Councillor Lowe withdrew from the meeting. 12.6 Taxi By -Law Update and Recommended Amendments to A By -Law Respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the Citv of Saint John (1St and 2nd Readiniz) Referring to the submitted presentation, N. Jacobsen, Sgt. McCaig, Taxi Inspector, Richard Lee, Chair Taxicab Advisory Committee, and Ralph Holyoke, Taxicab Advisory Committee Member, provided an update on the Taxicab By -Law and recommended amendments to said by-law. Moved by Councillor Sullivan, seconded by Councillor Reardon: RESOLVED that the by-law entitled, "By -Law No. M-12 A Law to Amend a By-law respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John", amending several sections and schedules, be read a first time. MOTION CARRIED with Deputy Mayor McAlary and Councillors Armstrong and MacKenzie voting nay. Read a first time by title. the by-law entitled. "Bv -Law No. M-12 A Law to Amend RESOLVED that the by-law entitled, "By -Law No. M-12 A Law to Amend a By-law respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John", amending several sections and schedules, be read a second time. MOTION CARRIED with Deputy Mayor McAlary and Councillors Armstrong and MacKenzie voting nay. Read a second time by title, the by-law entitled, "By -Law No. M-12 A Law to Amend a By-law respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John." Moved by Councillor Sullivan, seconded by Councillor Merrithew: RESOLVED that as recommended by the City Manager in the submitted report M&C 2017-191: Taxi By -Law Update and Recommended Amendments to A By - Law Respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John, Common Council refer the following two items to the City Manager for consideration as part of the 2018 work plan and budgeting process: 1. In cooperation with the Taxi industry, the Taxi Advisory Committee, Taxi Inspector, and City Staff should revisit plans to create a permanent taxi industry training program; and, 2. The Taxi Advisory Committee, Taxi Inspector and City Staff should establish a Working Group to explore the issues, challenges and opportunities relating to the introduction of mobile tablet technology as an alternative option to the Centrodyne meters. MOTION CARRIED. Councillor Lowe re-entered the meeting. 11. Submissions by Council Members 11.1 Deer Poqulation Problems in Millidizeville (Councillor MacKenzie Moved by Councillor MacKenzie, seconded by Councillor Sullivan: RESOLVED that the City Manager be directed to have staff investigate ways to mitigate the problems caused by the deer population, including liaising with the province, and report back to Council. MOTION CARRIED with Deputy Mayor McAlary voting nay. 11.2 Operations Savings Discussion (Deputy Mayor McAlary) Deputy Mayor McAlary moved the following motion that was seconded by Councillor Casey: That Council arrange a workshop to be held in Closed or Open Committee in the very near future where all Council Members and Senior Staff could discuss ideas and/or suggestions together for how savings can be acquired from our entire city operations as we do them presently. A referral motion was moved and seconded which took precedence over the Deputy's motion. Moved by Councillor Sullivan, seconded by Councillor Merrithew: 11.3 Financial Commitments (Councillor Merrithew Moved by Councillor Merrithew, seconded by Councillor Sullivan: RESOLVED that under their auspices of good governance, Council make no further financial commitments until such time as our Capital and Operating budgets have been set and passed. Councillor Reardon stated that she will not support this motion. Councillor MacKenzie stated that he does not support the motion due to emergency situations that come up. Councillor Lowe stated that he does not support the motion in case it interferes with Growth Committee incentives. MOTION CARRIED with Councillors Armstrong, Lowe, MacKenzie, and Reardon voting nay. 11.4 Cost Update - Lord Beaverbrook Rink - Railing around Ice Surface (Councillor MacKenzie) Moved by Councillor MacKenzie, seconded by Councillor Armstrong: RESOLVED that Common Council direct the City Manager to prepare a report to update Council on the costs to complete the installation of the safety railing at the Lord Beaverbrook Rink and if any other improvements could be implemented at no additional costs. LTA 100000114Y1:k]k1119a 11.5 West Side Splash Pad (Councillor Lowe) Moved by Councillor Lowe, seconded by Deputy Mayor McAlary: RESOLVED that Council that item 11.5 West Side Splash Pad (Councillor Lowe), be received for information. MOTION CARRIED with Councillor Merrithew voting nay. 11.6 Support for Private Member's Bill C-323 (Councillor Reardon) Moved by Councillor Reardon, seconded by Councillor Lowe: RESOLVED Saint John Common Council express its support for Private Member's Bill C-323 — An Act to create tax incentives for the rehabilitation of Historic Property. LTA 100000114Y1:k]kIif9a 12. Business Matters - Municipal Officers 12.1 City of Saint John Fiscal Update Referring to the submitted presentation K. Fudge gave an overview of the fiscal future for the City of Saint John. MOTION CARRIED. 12.2 Demolition of Vacant, Dilapidated and Dangerous Building at 192 Waterloo Street (PID # 13565) Referencing the City's procedure to allow evidence contrary to the Building Inspector's opinion, the Mayor made the following cautionary announcement: "The information which has been provided in the Council Kit includes the report of the Building Inspector stating that the building located at 192 Waterloo Street is a hazard to the safety of the public by virtue of its being, amongst other things, dilapidated or structurally unsound. Is there present an owner, including anyone holding any encumbrance upon this property, who wishes to present evidence to the contrary, that is to say, that the building is structurally sound and not dilapidated?" Moved by Councillor Merrithew, seconded by Deputy Mayor McAlary: RESOLVED that as recommended by the City Manager in the submitted report M&C 2017-224: Demolition of vacant, dilapidated and dangerous building at 192 Waterloo Street (PID#13565), Common Council direct one or more of the Officers appointed and designated by Council for the enforcement of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, to arrange for the demolition of the building at 192 Waterloo Street (PID#13565), in accordance with the applicable City purchasing policies. MOTION CARRIED. 12.3 Demolition of Vacant, Dilapidated and Dangerous Building at 202 Tower Street (PID #364695 Referencing the City's procedure to allow evidence contrary to the Building Inspector's opinion, the Mayor made the following cautionary announcement: "The information which has been provided in the Council Kit includes the report of the Building Inspector stating that the building located at 202 Tower Street is a hazard to the safety of the public by virtue of its being, amongst other things, dilapidated or structurally unsound. Is there present an owner, including anyone holding any encumbrance upon this property, who wishes to present evidence to the contrary, that is to say, that the building is structurally sound and not dilapidated?" Moved by Councillor Sullivan, seconded by Deputy Mayor McAlary: RESOLVED that as recommended by the City Manager in the submitted report M&C 2017-225: Demolition of Vacant, Dilapidated and Dangerous Building at 202 Tower Street (PID #364695), Common Council direct one or more of the Officers appointed and designated by Council for the enforcement of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, to arrange for the demolition of the building at 202 Tower Street (PID#364695), in accordance with the applicable City purchasing policies. MOTION CARRIED. Moved by Deputy Mayor McAlary, seconded by Councillor Lowe: DCC/ll %/En +6..-.+;- ........-.J.-..-........7+6. +L,- -1 D.. 1—, +L,- -- 12.5 Safe, Clean Drinking Water - West Side Ground Water System Moved by Councillor Merrithew, seconded by Deputy Mayor McAlary: RESOLVED that as recommended by the City Manager in the submitted report M&C 2017-223: Safe, Clean Drinking Water - West Side Ground Water System, the report be received for information. MOTION CARRIED. 13. Committee Reports 14. Consideration of Issues Separated from Consent Agenda 15. General Correspondence 15.1 SJPF Tee Off for Mental Health Golf Tournament Moved by Deputy Mayor McAlary, seconded by Councillor MacKenzie: RESOLVED that the funding request for the SJPF Tee Off for Mental Health Golf Tournament be approved with a $1000 hole sponsorship. MOTION CARRIED with Councillor Merrithew voting nay. 15.2 The Hardman Group Limited - New Year's Eve 2018 Partnershi Opportunity Moved by Councillor Merrithew, seconded by Councillor Lowe: RESOLVED that the Letter from The Hardman Group Limited - New Year's Eve 2018 Partnership Opportunity be referred to the City Manager. MOTION CARRIED. 15.3 New Brunswick Energy & Utilities Board - Application to Operate New Scheduled Public Motor Bus Service between Saint John and St. Stephen Moved by Deputy Mayor McAlary, seconded by Councillor Merrithew: RESOLVED that the New Brunswick Energy & Utilities Board - Application to Operate New Scheduled Public Motor Bus Service between Saint John and St. Stephen be received for information. MOTION CARRIED. 15.4 Annual General Meeting - Pension Board of Trustees Moved by Councillor Merrithew, seconded by Councillor MacKenzie: RESOLVED that the Finance Committee Chair be designated to attend the meeting and report back to Council. MOTION CARRIED. 16. Supplemental Agenda 17. Committee of the Whole RESOLVED that Committee of the Whole, having met on September 5, 2017, recommends the City enter into agreements for canteen services at the Stewart Hurley Arena, Charles Gorman Arena, Hilton Belyea Arena, and Peter Murray Arena in accordance with the respective vendors chosen through the Request for Proposals process described in M&C 2017-230, facilitated by Materials Management, and that the Mayor and Common Clerk be authorized to execute said agreements. MOTION CARRIED. 17.2 Tri -City Partnership Moved by Councillor MacKenzie, seconded by Councillor Lowe: RESOLVED that Committee of the Whole, having met on September 5, 2017, recommends that Common Council: 1. Endorse the City of Saint John's participation in a tri -city partnership with the Cities of Moncton and Fredericton as per the Memorandum of Understanding as submitted in Attachment A; 2. Authorize the Mayor and Clerk to execute the agreement. MOTION CARRIED. 17.3 J. Bezanson Letter re Donation for New City Hall Moved by Deputy Mayor McAlary, seconded by Councillor Lowe: RESOLVED that as recommended by Committee of the Whole, having met on September 5, 2017, Common Council receive the letter from J. Bezanson regarding a donation for a new City Hall for information. MOTION CARRIED. 18. Adjournment Moved by Councillor Sullivan, seconded by Councillor Norton: RESOLVED that the meeting of Common Council held on September 5, 2017 be adjourned. MOTION CARRIED. The Mayor declared the meeting adjourned at 10:11 p.m. Mayor/ maire Jonathan 11 Jonathan Taylor Common Clerk City of Saint John P.O. Box 1971 Saint John, NB E2L 4Ll Dear Mr. Taylor: T. 506 738-1212 e F. S06 738-1207 M' At the meeting of the Board of the Fundy Regional Service Commission, held August 28, 2017,,the following motion was adopted,. Motion: To have the Board Members take the 2018 draft budget to their respective communities for their information as required by the legislated 45 day notice and then bring back any comments or concerns to the October meeting; at which time the vote to approve will take place. Attached you will find the 2018 Draft budget for your review. If you require any further information or have any questions please do not hesitate to contact me. Sincerely, Ilk So Marc MacLeod Executive Director W N C) 0 CD C) uj � V Z Z a- z CN L10uj<Z) U) 7- Q) Q) CY Z) o X 0 LLJ LU C) 0ouj z <Z W z I, D C� IL Z) 0 < (-) Q 0 < Cf W LL LLJ u >- LL CL w 0 Lui GL C)Z C) 0 0 C) Ci 0 0 0 C) C7 C5 0 C) 0 CD � W,, -- , 0 (D 0 CD 0 0_ Co w x� r- LO z T- 60- LL�LL � u LU � 0 G+� d IH LLJ U) W 0 0 CD C7 0 C) 0 C) CD 0 C3 0 0 0 0, 0 0 C) < Cr C) 0 C) 0 C1 C) 0 0 � N � N fw- Cs� CO Q LO Ll l w D L1J' ry 0 z _ D U- LIJLD (D o6 F- F- 2 Ld CL. Q -n z C/) w UJ Z w U- LLLF." ILL� .tl c$ J C.) ILL 7) LL 0<tr-coc N Fundy Regional Service Commission Operating Fund Budget For the Year ended December 31, 2018 Budget Budget Revenue 2017 9 2018 Corporate and Laced Planning S8me4ces Contributions from LSD 89,183 148,799 Contributions trom Municipalities 37,575 53,851 Contributions from Landfill 211,613 192,193 Second Previous Surplus 177,485 105,662 Sub-total 515,836 500,525 Landfill Tipping Fees MunicipailBusiness Solid Waste 6,804,000 6,804,000 Construction & Demolition 168,000 168,000 Tires 3,750 3,750 International Ship's Waste 2,000 2,000 Asbestos 7,000 28,000 Compostable Organics 204,400 204,400 Efectranics Recycling 5,000 5,000 Paint Revenue 3,600 3.600 Electrical Generation 150,000 150,000 Interest 0 0 Sale of compost 5,000 5,000 Recycling 180,000 230,000 Other 30,000 30,000 Surptus of second previous year 91,867 331 176 Sub-total 7,654,617 7,964,926 Total Revenue 8,170;453 8,465,451 Less Contributlons to Corporate 211,614 192,193 Expenditures Total Revenue 7.958,839 8,273,258 CORPORATE SERVICES - Corporate Governance 68,800 68,800 Administration 210,881 185,059 Subtotal Corporate 279,681 253,859.. Cooperative & Regional Planning Services Regional Planning 3,125 3,000 Regional Policing Collaboralion 0 0 Regional Emergency Measures Planning 0 0 Regional Economic Development 0 10,000 Regional Sport, Recreation & Culture 6,875 7,000 Infrastructure Planning & Cost-Sharng Subtotal Cooperative & Regional Planning Services 10,000 20,000 Local Planning Services Planning Services 90,742 86,244 Inspection Services 135,412 138,422 Subtotal Planning & Building Inspection Services 226,154 228,666 CORPORATE SERVICES SNB-TOTAL 515,835 500,525 LANDFILL SERVICES Solid Waste Administration Office and Administration 66,912 67,621 Professional Services 119,000 119,000 Site 'Security 5,700 5,700 Personnel 181,896 190,273 Insurance 155,200 161,500 Property Taxes 234,150 244,650 Sub-total Administration 762,858 788„744 Environmental Health &, Safety Wages/Benefits 85,620 89,963 Administration 7,450 13,995 Domestic Well Sampling 11,950 12,100 On Site Well Sampling 45.000 46,000 Sub-total Environmental H & S 150,020 162,058 Household Hazardous Waste Olsposal Cast 25,000 25,000 Electrical 6,000 6,000 Building Malnte01ance 7',000 2,000 Equipment 4,500 4,500 Sub-total Household HW 42.500 37,500_ Public Education Wages and Benefits 136,498 142,987 Advertising, tours, promotional materials 98,550 98,475 Administration 22,850 21,200 Sulb-total Public Education 257,898 262,662 OR KI -I Budget Budget 2017 1 2018 Landfill Cover Material 130,500 130,500 Site Labour 761,836 781,887 Site non -labour operation (cell) 345,874 354,924 Site maintenance - roads, grounds, misc. 42,300 47,30D Re -sort 6,041 6,148 Special waste handfing 9,500 9,500 Sub -total Landfill 1,295,851 1,330,259 Scalehouse Equipment Replacement Reserve 0 0 Wages/Benefits 149,106 158,758 Scate Equip/Supplies/Bank Fees 29.200 30,400 Sub -total Scalehouse 178,306 189,158 Gas Management/Electrical Generation Labour 93,945 101,699 Administration 17,000 11,800 Electricity 3,000 3,200 Equipment Replacement 0 0 Equipment RepairsYFuels 171.900 133,400 Sub -total GM/Electrical Generation 285,845 250,099 Fiscal ServiceslOther Debt Cost Landfill 171,647 1,050,000 Composting 337,426 109,928 Cell Construction Fund 372,626 0 Capital Expenditures financed from Operating 670,000 510,000 2nd previous year deficit 0 0 Contributions to Corporate 211,614 192,193 Perpetual Care Fund 135,628 145,632 Host Community Enhancement 87,373 88,247 Support to CMEI 23,969 24,209 Sub -total Fiscal Servicest0ther 2,010,293 2,120,209 Leachate Leachate management 581,968 634,917 Sedimentation Ponds 52.500 38,800 Sub -total Leachate Management 634,468 673,717 Waste Diversion - Recycling Depot Program Equipment Replacemeril Reserve - drop off depot 0 0 Operations - Drop off depot 677,873 709:818 Sub -total Recycling Depot Program 617,873 709,818 Waste DiYersion, - MRF Labour 435,311 452,253 Equipment Replacement 25,000 25,000 Operations 159,250 160,350 Sub -total MIRE 619,561 --63-7.603 Waste Diversion - Composting Program - Plant/Carts Equipment/Biri Replacement Reserve - Composting 0 0 Processing 739,,155 803,099 Sub -total -Composting -Plant 739,155 803,099 LANDFILL EXPENDITURES SUB -TOTAL 7,654,618 7,964,926 8,170,453 8,465,451 Excess revenue over expenditure for the period 0 0 Less: ContnbLtions to Corporate 211,614 192,193 ToW Expenditures 7,958,839 6.273,258 Budget Budget 2017 2018 Tonnage summary MSW 63,000 63,000 C & D6,00D 6.000 Special Tires 25 25 International Ships Waste 10 10 Asbestos 100 400 Special Waste 0 0 Organics 7,300 7,300 76,435 76,735 KI -I ti N Ln L) >.� L c% E o ac� V G Q I a - 4 0 J C7 z N ®_ `j H LLJ W q) >- O 0 02 =? 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T 8 Iri CS t 4-; m co E -0 m 0 V Z c CLI aV c 3 Jt S 1 LA �,i Z ni I C) UT 0 Saint John Parking Commission Commission suir le station!nement do Saint Jot September 7, 2017 Jonathan Taylor Common Clerk City of Saint John 8th Floor, City Hall Saint John, NB Dear Mr. Taylor, 11th Floor, City Hall, 11 i6me bage, H6tel de Ville P 0. Box 1971 / C. P. 1971 Saint John, NR/N.-B. E2L 4L1 Tel/ Tel. (506) 658-2897 Fax / T616copieur: (506) 649-7938 E -rail / Courriek parkingftaintjohn.ca RE: Appointment of Christian Mlclntosh — Badge #9958 Canadian Corps of Commissionaires as a By-L,aw Enforcement Officer We are requesting that the, following resolution be presented to Common Council for approval-, "Resolved that pursuant to Section 14 of the Police Act of the Province of New Brunswick, the Common Council of the City of Saint John does hereby appoint the following member of the Canadian Corps of Commissionaires as By -Law Enforcement Officer with the responsibility and authority to enforce provisions of the Parking Meter By -Law and the provisions of Section 5, Section 5.1, Section 7, Section 8, Section 15 and Section 16 of the Saint John Traffic By -Law, namely: Christian McIntosh And further that this appointment shall continue until such time as the appointee ceases to be a member of the Canadian Corps of Commissionaires or until the appointment is rescinded by Common Council, whichever comes first," Yours t(, uly, Nt Marc Dionne Operations Manager Saint John Parking Commission ME 29 www.,saintjohn.ca September7, 2017 Jonathan Taylor Common Clerk City of Saint John 8#" Floor, City Hall Saint John, NB Dear Mr. Taylor, RE- Appointment of Christian McIntosh — Badair, ie #9958 Canadian Corps of Comimissionaires as a By -Law Enforcement Officer We are requesting that the following resolution be presented to Common Council for approval: "Resolved that pursuant to Section 14 of the Police Act of the Province of New Brunswick, the Common Council of the City of Saint John does hereby appoint the following member of the Canadian Corps of Commissionaires as By -Law Enforcement Officer with the responsibility and authority to enforce provisions of the Parking Meter By -Law and the provisions of Section 5, Section 5.1, Section 7, Section 8, Section 15 and Section 16 of the Saint John Traffic By -Law, namely: Christian Maclntosh And further that this appointment shall continue until such time as the appointee ceases to be a member of the Canadian Corps of Commissionaires or until the appointment is rescinded by Common Council, whichever comes first." Yours truly, Marc Dionne Operations Manager Saint John Parking Commission /jlbc 091 COUNCIL REPORT M&C No. 2017-219 Report Date August 23, 2017 Meeting Date September 05, 2017 Service Area Public Safety Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Proposed Purchase of Bunker Gear for Saint John Fire Department OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager Josh Hennessy Kevin Clifford m I Jeff Trail RECOMMENDATION It is recommended that Common Council adopt the following resolution: RESOLVED that the Mayor and Common Clerk authorize the Saint John Fire Department to purchase thirty sets (jacket & pants) of Globe G-Xtreme Turnout Gear from K & D Pratt at a cost of $86,172.00 plus HST EXECUTIVE SUMMARY The City of Saint John Fire Department requires the purchase of thirty sets of Turnout Gear for 2017 to meet its operational needs. National Fire Protection Association (NFPA) Standard 1971 specifies that all Turnout Gear have a maximum life cycle of ten years provided it does not become irreparable or contaminated prior to that mark. All SJFD personnel are issued one set of Turnout Gear and is part of the staff's Personal Protective Equipment. Turnout Gear is worn at all incidents other than medical response and is the most universal frontline exposure protectant piece of equipment that staff uses on a daily basis. PREVIOUS RESOLUTION The City of Saint John Fire Department in years of high demand for outfitting personnel has purchased Turnout Gear through the Capital Budget. Most recent operational purchases have been suspended to support favourable operating budget outcomes. 31 -2 - STRATEGIC ALIGNMENT Asset Management— "Develop an integrated asset management plan that aligns with PlanSJ to prioritize investment." Financial Health — "Develop long-term sustainable financial plans and budgets that align capital investment and fiscal capacity with service objectives." This proposal eliminates this asset from being purchased through the Capital Budget. On a go forward basis all Turnout Gear will be sustained through the Operating Budget decreasing the fiscal burden on the Capital Budget. Great Neighbourhoods — "Ensure that the delivery of efficient public safety services address the evolving needs of a growing community. " PlanSJ- Policy MS -56— "Provide police, fire, and emergency management services to residents and businesses in the City, as required to meet community needs, with particular emphasis on the risks involved with managing large scale industrial emergencies." SERVICE AND FINANCIAL OUTCOMES As discussed in the Executive Summary, the Saint John Fire Department requires the use of Turnout Gear to meet employment standards set forth by the NFPA to provide an effective, safe service. Turnout Gear has historically been purchased through the Capital Budget. The SJFD is actively working towards maintaining current asset levels through the Operating Budget. The department is working towards implementing an equipment replacement program incorporating the asset life cycle across all assets. This will result in more consistent annual purchasing obligations to minimize fluctuations for the Operating and Capital Budgets. The following estimated purchase schedule will be supported by the following Annual Operating Budgets. Fiscal Year Turnout Gear Set Required Purchase 2017 30 2018 30 2019 30 2020 27 W -3 - The maximum asset life cycle of Turnout Gear is ten years. The proposed purchase of Globe G-Xtreme Turnout Gear is the current gear used by the department since 2002. A comprehensive field trial test was completed in conjunction with the Purchasing Department. Globe G-Xtreme is a reliable, durable, field tested product that fits the needs of the response for SJFD. K & D Pratt is the sole Maritime distributor of Globe G-Xtreme Turnout Gear. Past experience with K & D Pratt has resulted in a firm working relationship and exceptional customer service. There have been no issues with defects or retirement of an asset early due to the quality of the product. Current pricing including a quantity discount of approximately $130 per set of gear is being offered. Purchasing- Individual Set is $2,872.40 Total Purchase- $86,172 INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS This report has been reviewed by staff from Materials Management. ATTACHMENTS 091 COUNCIL REPORT M&C No. #2017-241 Report Date September 12, 2017 Meeting Date September 18, 2017 Service Area Legislative Services His Worship Mayor Don Darling and Members of Common Council SUBJECT. Land Acquisition — Portion of Civic #491 City Line OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager John L. Nugent John L. Nugent m I Jeff Trail RECOMMENDATION That Common Council adopt the following resolution: That the City enter into an agreement to acquire an easement for municipal services from Phillip E. Greenlaw at the price and upon the terms and conditions set out in the Agreement of Purchase and Sale attached to M & C 2017-60 save and except the closing date which will now be on or before December 31, 2018; and 2. That the Mayor and Common Clerk be authorized to execute any document(s) necessary to finalize this transaction. EXECUTIVE SUMMARY By resolution adopted March 20, 2017 Common Council resolved to acquire an easement for municipal services (sewer piping) on or before August 31 past. By agreement the Vendor must provide a postponement of the mortgage encumbering his land. (This will ensure, in the event of a sale by the mortgagee, that the City's easement is not lost.) To date the postponement has not been acquired. The Vendor is still willing to grant the easement; the sewer piping has been installed. A new Agreement of Purchase and Sale is required; the terms and conditions to be as previously agreed but with a closing date extended to on or before December 31, 2018. 011 -2 - PREVIOUS RESOLUTION March 20, 2017: 5.10 That as recommended by the City Manager in the submitted report M&C 2017-060: Easement Acquisition — Portion of Civic #491 City Line, Common Council adopt the following resolution: 1. That the City acquire an Easement for Municipal Services in a 45.40 sq. m +/- portion of said PID # 389353, for $883.00 upon the terms and conditions set out in the Agreement of Purchase and Sale attached to M&C 2017-60; and 2. That the Mayor and Common Clerk be authorized to execute any document(s) necessary to finalize this transaction. STRATEGIC ALIGNMENT N/A REPORT Council has previously adopted resolutions to acquire other lands necessary for this project from Dufferin Point Inc. which acquisition is completed and from Amy E. Lanteigne which is the subject matter of a report M & C 2017-239. Mr. Greenlaw owns the property at civic #491 City Line and remains willing to sell to the City the easement required for the sanitary sewer improvements upon the terms and conditions previously agreed. SERVICE AND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS None W COUNCIL REPORT M&C No. #2017-239 Report Date September 12, 2017 Meeting Date September 18, 2017 Service Area Legislative Services His Worship Mayor Don Darling and Members of Common Council SUBJECT. Land Acquisitions —Portions of Civic #483 and #487 City Line OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager John L. Nugent John L. Nugent m I Jeff Trail RECOMMENDATION That Common Council adopt the following resolution: 1. That the City enter into an agreement to acquire two (2) parcels of land from Amy Elizabeth Lanteigne at the price and upon the terms and conditions set out in the Agreement of Purchase and Sale attached to M & C 2017-46 save and except the closing date which will now be on or before December 31, 2018; and 2. That the Mayor and Common Clerk be authorized to execute any document(s) necessary to finalize this transaction. EXECUTIVE SUMMARY By resolution adopted March 6, 2017 Common Council resolved to acquire two (2) parcels of land on or before August 31 past to install sewer piping and to vest the lands as public streets. By the agreement the Vendor must provide partial discharges of the mortgages encumbering the lands being acquired (this will ensure, in the event of a sale by the mortgagees, that the City's title is not lost). To date these discharges have not yet been acquired. The Vendor is still willing to provide the lands; the sewer piping has been installed and the lands paved. A new Agreement of Purchase and Sale is required; the terms and conditions to be as previously agreed but with a closing date extended to on or before December 31, 2018. 01.1 -2 - PREVIOUS RESOLUTION March 6, 2017: 5.15 That as recommended by the City Manager in the submitted report M&C 2017-046: Land Acquisitions — Portions of Civic #483 and #487 City Line, Common Council adopt the following resolution: 1. That the City acquire from Amy Elizabeth Lanteigne: Freehold interest in a 39.35 sq. m. +/- portion of land designated PID # 389346, and Freehold interest in a 46.34 sq. m +/- portion of said PID # 388736, for a total price of $5,000.00 upon the terms and conditions set out in the Agreement of Purchase and Sale attached to M&C 2017- 46; and 2. That the Mayor and Common Clerk be authorized to execute any document(s) necessary to finalize this transaction. May 1, 2017: 5.8 That as recommended in the submitted report from the Planning Advisory Committee entitled Subdivision Application - 483 & 487 City Line, Common Council assent to the submitted photo -reduced Amy E. Lanteigne Subdivision Plan with respect to the vesting of two parcels of land having an area of approximately 46 square metres and 39 square metres as part of the City Line public street right-of-way. STRATEGIC ALIGNMENT N/A REPORT Council has previously adopted resolutions to acquire other lands necessary for this project from Dufferin Point Inc. which acquisition has been completed and from Phillip E. Greenlaw which is the subject matter of a subsequent report. Ms. Lanteigne owns both properties at civic #483 and #487 City Line and remains willing to sell to the City the land required for the sanitary sewer improvements upon the terms and conditions previously agreed. SERVICE AND FINANCIAL OUTCOMES N/A Kul -3 - INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS None 9.11 COUNCIL REPORT M&C No. 2017-245 Report Date September 13, 2017 Meeting Date September 18, 2017 Service Area Saint John Water His Worship Mayor Don Darling and Members of Common Council SUBJECT. License Agreements — Eastlink & Bell Mobility OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager J. Brent McGovern J. Brent McGovern Jeff Trail RECOMMENDATION It is recommended that: 1) the City enter into a 20 year License Agreement with Bell Mobility Inc. generally in the form as attached to this report, for the purpose of allowing Bell Mobility to place telecommunication antenna on a Saint John Water Tower for a yearly fee; and that the Mayor and Common Clerk be authorized to execute the said License Agreement; and that 2) the City enter into a 20 year License Agreement with Bragg Communications Incorporated (Eastlink) generally in the form as attached to this report, for the purpose of allowing Bragg Communications to place telecommunication antenna on a Saint John Water Storage Reservoir for a yearly fee; and that the Mayor and Common Clerk be authorized to execute the License Agreement. EXECUTIVE SUMMARY The Licence Agreements were presented to the Finance Committee on September 7, 2017 for review and consideration and it was recommended by the Finance Committee that Council authorize the Mayor and Common Clerk to execute the License Agreements in regard to the rental of space on the new SCADA tower to be constructed in 2017 at the site of the Lancaster Water Storage Tank and on the Churchill Heights water storage tower. 061 -2 - PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT This report aligns with Council's Priority for Fiscal Responsibility and specifically relates to action within that priority that states "Leverage opportunities to generate alternative revenue sources". BACKGROUND Saint John Water has within its operations a total of 7 water storage reservoirs at this time and three additional water storage reservoirs at the new east water treatment facility site are currently under construction. This will bring the total number of water storage reservoirs to 10. The existing total number of SCADA (Supervisory Control and Data Acquisition) towers in the network total 4 towers and 7 utility poles however in 2017 as part of the funding received under the Clean Water Wastewater Fund (CWWF) a new tower will be erected at the Lancaster Water Storage Reservoir location to replace an existing pole so as to improve the communications system and create an alternative communications backbone to the SCADA network. This critical communications system is the monitoring and control system for all water and wastewater infrastructure in the City and at any one time there are approximately 8,000 data points actively being monitored to determine if one of the any 3,000 alarms should be issued. Saint John Water is seeking opportunities to generate alternative revenue sources in accordance with Council Priorities and in doing so has identified an opportunity to enter into a long term (20 year) License Agreement with Bragg Communications Incorporated, the parent company of Eastlink (who will be soon commencing service in the Saint John area) and an opportunity to enter into a new long-term (20 year) License Agreement with Bell Mobility Inc. The current 10 year Bell License Agreement expires on September 30, 2017. The new License Agreements provide Saint John Water with new long term predictable revenue streams to help offset costs associated with the Water and Sewer Utility customers. In both instances the Licensee shall ensure that the installation of the antennae in no way interferes with the SCADA system. Eastlink (Bragg Communications) License Highlights The License would be for a period of 20 years commencing the 1s' day of September, 2017 and expiring on the 31St day August, 2037. -3 - The License fee is $15,000 (plus HST) for the first year and for years 2 — 10 of the term the feel shall be adjusted by the increase in Consumer Price Index (CPI) for the preceding year. For years 11— 20 of the term the fee shall be adjusted by the increase in CPI for the preceding year plus 2%. The Agreement would also allow for the installation of 6 colour matching antennae and related equipment on the Reservoir for the purpose of providing telecommunication services. A rendering is included as Appendix B. The License would allow for the construction of a small building that would be located at the foot of the Churchill Heights water storage reservoir for purposes of housing Eastlink equipment as shown in Appendix B. The Licensee shall be responsible for all costs and permits related to the construction, and ongoing use of the building, including electricity costs. The Licensee is required to provide an annual workplan that stipulates planned maintenance and any costs associated with access required outside of normal business hours incurred by Saint John Water will be paid by Eastlink. Either party may terminate the License Agreement at any time during the Term by providing the other party with 12 months prior written notice of its intent to terminate. Upon termination of the agreement the Licensee shall remove its equipment, antennae, etc at the Licensee's sole expense. The City will upon expiry or early termination have the option to purchase the building for an amount equal to the purchase price equal to the cost of demolition and removal. Bell License Highlights The License would be for a period of 20 years commencing the 1s' day of October, 2017 and expiring on the 30th day September, 2037. The License fee is $20,000 (plus HST) for the first year and for years 2 — 10 of the term the feel shall be adjusted by 2.5% for the preceding year. For years 11 — 20 of the term the fee shall be adjusted by 3%. The Licensee must maintain its existing building in good repair. The Agreement would allow for the maximum installation of 15 antennae on the Tower for the purpose of providing telecommunication services, a photograph of a similar tower and a schematic of the tower is included in Appendix B. The City will, upon expiry, have the option to purchase the building for an amount equal to the cost of demolition and removal. MI -4 - SERVICE AND FINANCIAL OUTCOMES These License Agreements would provide Saint John Water with an increased long term predictable revenue stream with no new associated costs. The revenue from Eastlink is an annual fee of $15,000 (plus HST) increased annually by CPI for years 2 - 10 and for years 11- 20 increased by CPI plus 2% to account for maintenance. Over the life of the Agreement with Eastlink assuming Consumer Price Index of 2.5% and considering the 2% adjustment on top of CPI, the total revenue is approximately $408,604 as shown in the table below. The revenue from Bell is an annual fee of $20,000 (plus HST) increased annually by 2.5% for years 2 - 10 and for years 11 - 20 increased by 3%. Over the life of the Bell Agreement and considering adjustments, the total revenue is approximately $518,994 as shown in the table below. Totaling both agreements over 20 years results in additional revenue of approximately $927,598 as shown in the table below. * NOTE - Assume CPI = 2.5% for demonstration purposes :1 PA, Bell Bell Eastlink ear ( Adjustment Annual Fee IEastlink Adjustment Annual Fee 6TAL 1 I $ 20,000 I $ 15,000 2 I 2.50% $ 20,500 I CPI* $ 15,375 3 I 2.50% $ 21,012 I CPI $ 15,759 2.50% $ 21,537 I CPI $ 16,153 5 I 2.50% $ 22,076 I CPI $ 16,557 6 I 2.50% $ 22,628 I CPI $ 16,971 7 I 2.50% $ 23,193 I CPI $ 17,395 8 I 2.50% $ 23,773 I CPI $ 17,830 9 I 2.50% $ 24,368 I CPI $ 18,276 10 I 2.50% $ 24,977 I CPI $ 18,732 11 I 3.00% $ 25,726 I CPI + 2% $ 19,575 12 I 3.00% $ 26,498 I CPI + 2% $ 20,456 13 I 3.00% $ 27,293 I CPI + 2% $ 21,377 14 I 3.00% $ 28,112 I CPI + 2% $ 22,339 15 I 3.00% $ 28,955 I CPI + 2% $ 23,344 16 I 3.00% $ 29,824 I CPI + 2% $ 24,395 17 I 3.00% $ 30,718 I CPI + 2% $ 25,492 18 I 3.00% $ 31,640 I CPI + 2% $ 26,640 19 I 3.00% $ 32,589 I CPI + 2% $ 27,838 20 1 3.00% $ 33,567 CPI + 2% $ 29,091 OTALS $ 518,994 $ 408,6034 $ 927,598 * NOTE - Assume CPI = 2.5% for demonstration purposes :1 PA, -5 - INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Legal staff drafted the License Agreement attached to this report. Real Estate has been involved in the process. Growth and Community Development have been consulted. Public Open was held on Thursday September 7, 2017 at the Hillcrest Baptist Church for the new tower at the Lancaster Water Storage Tank. ATTACHMENTS Bragg Communications Incorporated License Agreement Bell Mobility Inc. License Agreement !i93 September 13, 2017 Your Worship Mayor Don Darling & Members of Common Council: As Chairman of the Finance Committee, I aim writing on behalf of the Committee to advise that at the meeting of September 7, 2017, two license agreements, one with Eaistlink and one with Bell Mlobility were presented. At that meeting, it was "RESOLVED that the Finance Committee recommend to Common Council: 1) the City enter into a 20 year License Agreement with Bell Mobility Inc. generally in the form as attached to this report, for the purpose of allowing Bell Mobility to place telecommunication antenna on a Saint John Water Tower for a yearly fee; and that the Mayor and Common Clerk be authorized to execute the said License Agreement; and that 2) the City enter into a 20 year License Agreement with Bragg Communications Incorporated (Eastlink), generally in the form as attached to this report, for the purpose of allowing Bragg Communications to place telecommunication antenna on a Saint John Water Storage Reservoir for a yearly fee; and that the Mayor and Common Clerk be authorized to execute the License Agreement. Please find attached a copy of M&C 2017 — 245 with the attached agreements. YoUfs sincerely, Dav'i'a Merrithew Chairman, Finance Committee C. ity of Saint John P.O. 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The Licensee acknowledges that it has inspected the Lands and has found same satisfactory for its purposes and its operations under this License. 1.02 Term The term of this License shall be for a period of ten (20) years (the "Terra") commencing as of and with effect from the 1st day of October, 2017, and expiring on the 30"' day of September, 2037. 1.03 License Fee The Licensee covenants to pay to the Licensor a yearly license fee ("the License Fee") as follows: a) $20,000 for the first year of the term, plus DIST payable in advance on the 1st day of October, 2017. b) For years 2 to 10 of the Term, the License Fee shall be adjusted by 2.5% of the fee for the preceding year plus HST and shall be payable in advance on the l't day of October each year. c) For years l 1 to 20 of the Term, the License Fee shall be adjusted by 3.0% of the fee for the preceding year plus HST and shall be payable in advance on the 15t. day of October each year d) The Licensor shall provide the Licensee with 90 days prior notice of the License Fee each year. MR ARTICLE 2 - LICENSEE'S WORK 2.01 Licensee's Installation The Licensee shall, at its own cost, using competent workmen compatible with those employed by the Licensor, install the Equipment and the Antennae. The Licensee shall ensure that the installation of the Antennae on the Tower in no way interferes with the Licensor's Supervisory Control and Data Acquisition (SCADA) system. 'The Licensee shall maintain the Building in good repair and ensure that the Building and its Equipment do not interfere with the underground infrastructure of the Licensor. 2.02 Consultants Prior to commencing any work under this License, the Licensee shall submit to the City information relating to its communication design, for review and input from the City, so as to ensure the Licensor's network operations are not interfered with. ARTICLE 3 - USE AND OPERATION OF PREMISES 3.01 Use of Premises The Licensee covenants and agrees that the License will be used for the purposes described in Section 1.01 hereof and for no other purpose. All alterations to the Lands will require prior approval by the Licensor, which approval will not be unreasonably withheld. 3.02 Applicable Laws The Licensee covenants that it will abide by and comply with all laws, by-laws, rules, regulations and orders which in any manner relates to or affects the Lands and the Building and the Licensee's use thereof. 3.03 Maintenance and Repair by the Licensee All of Licensee's wiring and Equipment and Antennae from time to time used in connection with this License shall be first class quality communications equipment, The Licensee shall be responsible for maintenance and repair in good order to the foregoing standard, of its wiring and Equipment and Antennae. 3.04 Non Interference 'The Licensee covenants and agrees that its use of the Building and its Equipment and Antennae shall not interfere with any other rights granted by the Licensor to others nor shall the Licensee's use interfere with any of the equipment of the Licensor. Al -4- 3.05 Rules and Regulations The Licensee shall comply with any decisions, rules and policies as shall from time to time be made by the Licensor and notice of which is given to the Licensee in writing. 3.06 Access Except when prevented by events and causes beyond the reasonable control of the Licensor, the Licensee, its agents, clerks, servants, employees and other persons property engaged by the Licensee shall be entitled to obtain access to the Building Equipment and Antennae twenty-four (24) hours a day, seven (7) days a week, subject to the Licensor's reasonable security and scheduling requirements. The Licensee shall have eXCIUSiVe use and access to the Building in which the Equipment is located. In accessing the lands after normal business hours, the Licensee shall ensure its employees, workmen and agents give due consideration to the residential nature of the surrounding area. 3.07 Hazardous Substances The Licensee covenants and agrees to operate its business in a manner so that no part of the Lands or surrounding lands are used to generate, manufacture, refine, treat, transport, store, handle, dispose of, transfer, produce, or process any hazardous substances. ARTICLE 4 - INSURANCE 4.01 Licensee's insurance Licensee shall take out and keep in full force and effect, at its own cost, throughout the Term, and during such other time as Licensee uses the Lands, commercial general liability insurance. Such insurance shall cover but not be limited to property damage, bodily injury liability, non -owned automobile liability and owners' and contractors' protective insurance coverage with respect to Licensee's use of the Building and the Lands. The coverage thereunder shall include the activities conducted by Licensee and any other person acting within its control, or for whom Licensee is in law responsible and any person performing work on behalf of Licensee in any part of the Lands. Such policy shall have inclusive limits of at least Five Million Dollars ($5,000,000.00) for each occurrence involving personal injury, bodily injury, death or property damage, or such higher limits as Licensor may from time to time reasonably require. The policy shall contain: (i) a provision stating that such policy shall be primary and shall not call into contribution any other insurance available to Licensor or I'M Licensee; and (ii) an undertaking by the insurers that no material change, cancellation or tennination of any policy will be made unless Licensor has received not less than thirty (30) days prior notice thereof, delivered in accordance with the provisions of this License. The Licensor shall be added as an additional insured on the commercial general liability insurance policy described herein. The Licensee shall provide a Certificate of Insurance to the Licensor at the time of the execution of this License evidencing the insurance coverage described herein. The Licensee shall provide said Certificate of Insurance to the Licensor yearly for the term of this License. 4...02 Licensee Not to Jeopardize Licensor's Insurance Licensee shall neither do, permit or omit to be done, nor beep anything in or about the Lands or the Building, which might result in any increase in the premiums for Licensor's insurance coverage or which might result in the actual or threatened reduction or cancellation of or material adverse change in such coverage. In the event the Licensee does any of the things aforementioned, and the City incurs extra cost, the Licensee shall be liable to the City for said costs, ARTICLE 5 - DESTRUCTION AND REPAIR OF PREMISES 5.01 Damage If the Building, the Antennae or the "Tower are substantially damaged or destroyed, either party shall have the option to terminate this license on notice to the other party. ARTICLE 6 - LICENSOR'S COVENANTS 6.01 Licensor's Covenants The Licensor covenants with the Licensee as follows: a) that it will complete the construction of the Tower on or before December 31, 2017 in a location that is sufficiently near to the Building so as to allow use of sane and the Equipment located therein for the purpose of the Antenna that are to be installed on the Tower. b) that the Licensee will peaceably and quietly have, hold, use, occupy, W M exclusively possess and enjoy the License without interruption or disturbance on the part of the Licensor or anyone claiming through or under the Licensor; and b) to observe and perform all of the covenants and obligations of the Licensor tinder this License. ARTICLE 7 - ASSIGNMENT AND SUBLETTINO 7.01 Assignment or Sub -Letting The Licensee shall not assign its rights under this License or otherwise part with possession of all or any part of the Building, the Tower or the Lands under this License without the prior written consent of the Licensor, which consent may be unreasonably withheld. Notwithstanding the foregoing, the Licensee may assign this License to an affiliate or to a limited partnership affiliated with the Licensee upon written notice to the Licensor. The Licensee shall not sub -let its rights under this License under any circumstances. 7.02 Assignment or Sale by Licensor The Licensor may assign or transfer the Lands and/or this Agreement to any person or entity, in whole or in part. To the extent such person or entity assumes the Licensor's obligations Linder this Agreement, the Licensor will be released from those obligations assumed by such assignee or transferee. ARTICLE 8 _ LICENSEE'S REMOVAL OF FIXTURES 8.01 Licensee's Removal Subject to the provisions of Section 8.02, the parties agree that all of the Licensee's Equipment and antennae and all of the Licensee's other chattels and personal property on or in the Building (collectively, the Licensee's Property") are and shall remain the property of the Licensee. The Licensee may remove from time to time, at its cost, all of the Licensee's Property in the ordinary course of its business, for the purpose of repair or replacement or if the same shall have become excess for the Licensee's purposes. The standard of care required in the removal of any or all of the Licensee"s Property shall be to the satisfaction of the Licensor. A*I 8.02 Option to Purchase The Licensor shall, upon expiry or early termination of this License, have the option to purchase the Building for a purchase price equal to the cost of the demolition and removal of the Building. In the event that the Licensor does not exercise its rights under this option, the Licensee shall, at its own cost, remove and dispose of the Building. ARTICLE 9 - DEFAULT PROVISIONS 9.01 Default in Payment of License Fee Should the Licensee make default in the payment of the [license Fee or any part thereof under this License and such default continues for 30 days after receipt by the Licensee of written notice thereof by the Licensor, or should the Licensee be in default of fulfilling any of the other covenants in this License and such default continues for a period of thirty (30) days after receipt by the Licensee of written notice thereof by the Licensor, except in the case of default which is to be cured with all due diligence would require a longer period, then after such longer period, or if the Licensee fails to proceed promptly after the service of such notice and with all due diligence to cure the same, then in any such event the Licensor shall have the right to terminate this License. 9.02 Insolvency, Etc, In case Licensee shall become insolvent or bankrupt or make an assignment for the benefit of its creditors, or shall take the benefit of any Act that may be in force for bankrupt or insolvent debtors, or in case the Lands and the Building; or any part thereof becomes or is used by any other person or persons, or for any other purpose than permitted by this License without the written consent of Licensor, or if a writ of execution shall issue against the goods and chattels of Licensee and remain unsatisfied for .live (5) days, this License shall, at the option of Licensor, cease and be void and the Term expire, anything hereinbefore to the contrary notwithstanding, and Licensee shall remove all its Equipment and Antennae therein, but Licensee shall remain liable to Licensor for any and all loss occasioned by reason of such termination before expiry of the Term. ARTICLE 10 - GENERAL 10.01 Ileadings The Section and/or paragraph headings in this License are inserted for convenience of reference only and shall not affect the meaning or interpretation of this License or any provision hereof. AW M 10.02 Successors and Assigns This License and everything contained herein shall enure to the benefit of and be binding upon the parties hereto, their respective successors and permitted assigns, and all words in the neuter or masculine shall include the masculine and neuter respectively and also the feminine and all words in the singular shall include the plural, and vice versa, when the context so requires. 10.03 Entire Agreement This License sets forth all the covenants, promises, agreements, conditions and understandings between the Licensor and the Licensee concerning the License and there are no covenants, promises, agreements, conditions or representations, either oral or written between them other than as are herein and in the said Schedules set forth. No subsequent alteration, amendment, change or addition to this License shall be binding upon the Licensor or the Licensee unless reduced to writing and signed by them. 10.04 No Partnership Nothing contained herein shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the parties hereto, it being understood and agreed that neither the method of computation of license fee nor any other provisions contained herein, nor any acts of the parties herein shall be deemed to create any relationship between the parties other than the relationship of Licensor and Licensee. 10.05 Force Majeure In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lock -outs, tabour troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war or other reason of a like nature not the fault of the party delayed in performing work or doing acts required under the terms of this License, then performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay, provided however that nothing herein shall be deemed to extend any specific date set out in this License. This Section shall not operate when the delay or restriction is due to the lack of or unavailability of funds. 10.06 Governing Law This License is to be governed by and construed and interpreted in accordance with the laws of the Province of New Brunswick and the taws of Canada applicable therein. 111.07 Partial Invalidity If any term, covenant or condition of this License or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this License and/or the application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this License shall be separately valid or enforceable to the fullest extent permitted by law. 10.08 Time to be of the Essence Time shall be of the essence of this License. 1.0.09 Waiver Failure by either party hereto to require performance of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or of any other terra, covenant or condition herein contained. The subsequent acceptance of a License Fee hereunder by the Licensor shall not be deemed to be a waiver of any preceding breach by the Licensee, as the case may be, of any term, covenant or condition of this License, other than the failure of the Licensee to pay the particular Licensee Fee so accepted, regardless of the Licensor's or Licensee's knowledge of such preceding breach at the time of acceptance or payment, as the case may be, of such License Fee, No covenant, term or condition of this License shall be deemed to have been waived by the Licensor or the Licensee unless such waiver be in writing by the waiving party. 10.10 Notice Any notice or consent including any invoice, statement or request or other communication (a "Notice") herein required or permitted to be given by either party to the other shall be in writing and shall be delivered by hand or sent by registered mail (except during a postal disruption or threatened postal disruption) or by telecopier to the applicable address (and telecopier number, if applicable) set forth below: a) in the case of the Licensor, to: The 'Common Clerk The City of Saint John 15 /Market Square $`h floor City Halt P.C.Box 1971 Saint John, N.B. L2L 4L1 b) in the case of the Licensee, to the address set out on page 1 of this License to AYA _10 - the attention of : Bell Mobility Inc. Real Estate Services 15 Western Parkway, 3 West Bedford, N.S. B4B OV I Attention: Real Estate Manager 1-800-707-6485 bmresi@bell,caID. ( -� U 7 3 - " ) FL any notice delivered by hand shall be deemed to have been validly and effectively given on the day of such delivery if delivered before 4:00 p.m. on a business day or on the next business day if delivered on a non -business day or after 4:00 p.m. on the previous business day. Any Notice sent by registered mail (except during a postal disruption or threatened postal disruption) shall be deemed to have been validly and effectively given on the third business day following the date of mailing. Any Notice sent by telecopier shall be deemed to have been validly and effectively given on the day it was sent if sent before 4:00 p.m. on a business day or on the next business day if sent on a non -business day or after 4:00 p.m. on the previous business day. Either party may from time to time by Notice to the other party change its address for service hereunder. 10.11 Statement re License Standing Licensor and Licensee, at any time and from time to time, upon not less than ten (1.0) days' prior notice to the other, may execute, acknowledge and deliver to the other, a statement in writing stating that this License is unmodified and in full force and effect, or if there has been a modification, that the same is in full force and effect as modified, and the dates to which License Fees and other monies payable under this License have been paid, and stating whether or not, to the best knowledge of the signatory Of Such certificate, Licensor or Licensee, as the case may be, is in default of any covenant, agreement or condition contained in this License, and if so, specifying each such default of which the signatory may have knowledge, it being intended that any such statement delivered pursuant hereto may be relied upon by any prospective purchaser and/or assignee of Licensor's or Licensee's respective interest in this License. 10.12 No Interest Licensee hereby acknowledges and agrees that this License and Licensor's permission granted hereby to use the Lands creates no property or leasehold rights by Licensee to the Lands or the Building, but this License permits Licensee to use the Lands and Building on the terms and conditions herein contained for the Term, - 1I - IN I - IN WITNESS WHEREOF the parties have duly executed this Agreement as of the day and year first hereinabove appearing. The City of Saint John per: tMayor and: Common Clerk Common Council Resolution: Bell Mobility Inc. per: C C, Pamela Ke and: Senio�r Manager Netwo* RQ -2-1. E -St -2f -g - We have authority to bind Beli AJobility Inc. rill iI umum mnmuo mo um mi iilw uuuum � � umill��w, uuum I�uI jI��II�{,m I�� N ig wN 01 a '"mll PRESENT wl V Ummnuum m' imu r The City Of Unt John ..:,.,III' .... ...�.. .w...""... F:Jrst Nu rw Emil Last Nan"�,em Olsen Na Rre of Oi ganiado r)/Grm.ilp wli r aap'icabl+ ,. 2018 SJ Canada 55+ Games Inc. fM a d i u Address., 15 Market Square, Floor 11 City Hall City or ..'Fown. Saint JohnProvince: NB Postaolde: E21. 1E8 I) i iu�u Nio i�.uu� L)er: 506-647-4783 i.� ra llu 2018sj55plus@gmail.com J ff'' ua do N O1i w i s � IMc) have u,j r, � ) e l' s c)° �.4 � ri fo a rr, at i s. rl (address, II :O`�i o ri e n uu.0 lTi er ABO:....:...........�.........�...,IU��.��.:.�..r I : I�:` F'resentation. 2018 Canada 55+ Games Sponsorship Purpose ose fum FIr''� ritation (Wiat is the ask of Cuu d)Uck Mere to enter text 'I,,Pa kgrot..ilnd 4i fou"""ratbn: This Canada 55+ Games are a multi -activity event that is open to adults aged 55 and above as of December 31 of the year in which the games are held. All participants must qualify through their Provincial Organization in order to be eligible to participate in the National Event. The Games focus on social, physical and psychological involvement with a quality event and encourage older adults to remain involved as either participants or volunteers. Provinces and Territories that are currently members of the CSGA (Canada Senior Games Association): AB, BC, MB, NB, NT, NS, ON, PE, PQ SK, YK. The Greater Saint John Area will host the following 24 events: 8 Ball Pool, 5 Pin Bowling, Bocce, Contract Bridge, Cribbage, Darts, Duplicate Bridge, Floor Shuffleboard, Golf, Ice Curling, Ice Hockey, Scrabble, Pickleball, Swimming, Slo-Pitch, Tennis, Whist, Track & Field, Ice Hockey, Badminton, Lawn Bowling, Cycling, Horseshoes, 5K and 10K run. The Games are expected to bring over 1500 participants to the City for 5 days. The event could have an economic impact of over $3 Million and it provides an excellent opportunity to showcase the City, its first class facilities, infrastructure, large volunteer base, and of course, its hospitality. The potential for repeat tourism is also huge. Y01,,1R SIGNATURE SIgllrNll1,ll e', Click here to enter text. i)aRe Click heire to enter a aJa9e., lbe City of SaWl jo!m HAT"TO musamir"ro (C01 JNCIL FORM The City of Saint John INSTRUCTIONS * All requests numt be auwkmd by no Imer than 4 pit. on fie %Mednesday 1xior to the CouncH rneeUng * Submislons must not contain defannatoryoioffenslve langV.mge * SubnAssions trust UnJude the name and Mng address oir the teiq-flrone nuirnber ol" the authoii- Any par sori oir group vWshhg t(�) speak at a CouncH rneeUng (except for Pubik Ideadrigs) n5 requked to suM NO Komi In order for COLM tO dedde H a Iliii esentadoiri wlll If!)e alI�iproved and ��kche(Jul&J at a subequoit Council rneeting. If your request is approved, youXAA receNe a letter humqhe Caaanori Clock w d the c0ce MH reach OLq tO YOU V) mhedWe the pwoRaHon. Thk kwm; can be Ned out MtranMy andthen emailed to flre C(�)inmon Clerk's off Ice at qqqqrngnqjejQp5gjpjqhayup , or R can be printed out and rnailed cN- hand delikered to the faHoM& MWIng Addmss: Office of tl'�e Conirnon Oerk City HA BuHdkg F10 Box Saint lohn, NB E21.4L L Street Addy as: Office ofthe Cmnrnon Clerk City Hall Buillng 8u1' f1oor — 15 fvlaii'ket SqUare Saint Jchin, NB E2L. IEE8 If ycwj have attachnwi& that you would Re to add, MQ attadli tic) ernafll attaich to paper o:)py tfmt yc)u rnzfll odehver, A11OU I YOUR I,)VISONAL INF�!C)RIVIATION Fleiisonal pirfoVmadon aind N��)pliiiIons in caninundcadons shaH become part of the public record, uniess the author of the cornrciwdaton regiests the rernoval of lfls pemonalinformadon when subnAtting it, or the Oerk detenwines that the Cease of the peu'sonai ii'doi matiorli cientravenes the Flight to Infonnation and pyo tection of Privacy Ac -Q SNB 2009, c R 10,6, aiird a ion en�J rneints theireto. ff �(ou liave further auestimins IMase call us at 658-2862 COUNCIL REPORT M&C No. M&C 2017-244 Report Date September 13, 2017 Meeting Date September 18, 2017 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Update: Market Place Splash Pad - ACOA Funding Application OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager Tim O'Reilly Michael Hugenholtz m I Jeff Trail RECOMMENDATION City staff recommends Common Council receive and file this report. PREVIOUS RESOLUTION At its September 5, 2017 meeting, Common Council endorsed a funding request to ACOA in the amount of $100,000 that, if approved, would fully fund the capital investment needed to construct a splash pad at the Market Place West District Recreation hub. REPORT The application was promptly submitted to ACOA for consideration following the September 5 direction from Council. ACOA has since advised city staff that the Market Place Splash Pad project is not eligible for funding due to its proposed completion date of July 1, 2018. Projects must be completed in full and all expenses submitted before March 31, 2018. STRATEGIC ALIGNMENT N/A SERVICE AND FINANCIAL OUTCOMES The project remains $100,000 short of the $652,000 Capital investment needed to proceed to the project's detailed design, tender and construction phases. rL! INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The ad-hoc community group spearheading this project has been notified of the denied application and is assessing options. ATTACHMENTS Ist attachments here or [Ype None nCno attachments. Nal July 19, 2017 His Worship Don Darling Mayor of Saint John P.O. Box 1971 15 Market Square Saint John, New Brunswick E21L 4L1 SUBJECT: Project No.: 9699 (2018-2019) Project Name: City of Saint John - Community Development Mr. Mayor: We are pleased to inform you that the above -noted project has obtained support from, the Regional Development Corporation (RDC), A financial contribution up to $200,000 for the City of Saint John (the Applicant) has been approved for this project. Eligible costs and funding for this project are described in Appendix A. Financing Conditions The Applicant must provide confirmation to RDC within 60 days of this offer that all other financing has been obtained prior to release of any fund's for the project. Any claim for reimbursement of the contribution must be supported by copies of invoices and proof of payment of those invoices. Each claim shall be submitted by March, 31, 2019 on forms herein provided. Electronic copies may be obtained at: www.qnb.ca/rdc. All payments will be done by electronic funds transfer. Please complete the attached Direct Deposit Service form, Terms and Conditions No public announcement of funding or milestone events such as official openings and ribbon -cuttings shall be made by the Applicant without the prior written approval of RCC. 2. The Applicant shall not change the project scope, purpose or eligible costs without prior written, approval of IRDC. I RDC may refuse further disbursements if there is a materially adverse change in the financial position, of the Applicant or status of the project. www.gnb.ca Regional Development Corporation/Socikb de d6veloppement r6gional P.O Box/C.P. 6000 Fredericton New Brunswick/Nouveau-Brunswick E3B 5HI Canad Pge 2 4. The Applicant shall' not sell or dispose of any assets purchased under this agreement for a period of 36 months following the completion of this project without prior written approval from an authorized representative of RDC. 5. The Applicant shall keep, for 36 months following project completion, all accounting books, records and statements pertaining to project costs and make these available for auditing and provide any statistical data required by RDC. 6. The Applicant shall allow any authorized representative of RDC reasonable access to the project sites) and information. 7. The Applicant shall indemnify and save harmless the provincial government from and against all claims, demands, losses, damages, costs of any kind based upon any injury to or death of a person or damage to or loss of property arising from any willful or negligent act, omission or delay on the, part of the applicant or its servants or agents in carrying out the contract. 8. Any costs incurred prior to April 1, 20118 are not considered eligible expenses under this offer. 9. The Applicant must adhere to all labour and environmental laws and regulations, M No Members of the Legislative Assembly, their staff, or their immediate family members shall be a party to this project or derive any benefit arising therefrom.. 11. Information and documents providedto RDC may be subject to release under Right to Information and Protection of Privacy Act. If you are in agreement with the terms and conditions of this offer, please sign and return it and your Direct Deposit Service, form to RDC at rdc-sdr�ginb.ca. Please note that failure to do so withiin 45 days renders this offer null and void. NO 3 Al inquiries with respect to the project are to be forwarded to Lisa Hay-Busson at 453-8545 or lis,a.hay-bussoni@gnb.ca, We nook forward to the successful completion of this project. Sincerely, "'imJ ill Levesque President Enc. MM Werk: Date. - -Ifis offer accepted on behalf of City of Saint John for Troject- 9699 - Gommunity Development M -11 OOME Project 9699 City of Saint John - Community Development Total Approved Contribution 2018-2019 Special Initiatives $200,000 'Project T6tak` '$200,0,00 Regional Development Corporation will reimburse 33% of eligible costs up to the total approved contribution. Eligible Cost(s) Market Place Splash Pad Project $652,000 Total $652,000 The portion of Harmonized SaAes Tax (HST) refunded by Canada Revenue Agency is considered ineligible, Regional Development Corporation Claim No: BNe Nouvearu P.O. Box 6000, Fredericton, New Brunswick E38 5H1 ffiffswck Finai Claim: List all eligible project costs with invoices and cheque numbers on this form. Include a copy of each invoice and proof of payment. Failure to record and support each cost will cause a delay in processing. Project Number: Project Name: 96'99 City of Saint John -Community Development Description of costs Name of Supplier Cheque No. Cheque Amunt o Invoice Total HS'T .. . ........... Total Eligible & supported costs (total -HST refurrdj %, of HST refunded by Canada Revenue Agency 71,43% - munidpafity El 2233% - university [:] 50% - noin-profit organization Ell 00% - other 0% - none The undersigned hereby certifies that: a. the invoices above represent eligible project costs that have been paid in full and the work completed; and b. no other public financial assistance has been received or is to be received for the part of the project against which this reimbursement is claimed. Signature Print Name Date Title Company Telephone For office use only Eligible & supported costs Claim Reviewer Date Less: previous advance 122320-14-14 Project Officer Date Add - current advance 12�2320-14-14 Payment Authority 4253 CITYSJ Vendor Payment request account Claim Auditor t 42 —0 E -11 I 93 cU mum m - a '15 lig, INN NO Igo ON',, 44 p mood E -11 I 93 cU 44 Sq O Qu CCiJ Li Summary Report presented to Regiona Oversight Committeel E-19 enterprise JOHN CANADA', MOST CONNECTED COMMUNHY •1 -1 -1 -1 Ft 1 -111 TZ' ff s • sno] Potential 750 students and 542 Entrepreneurs young people reached Start -Ups and Existing Entrepreneurs High Potential Business External Investors Overall T7, 20 sta rtu ps 16 sta rtu ps 40 jobs 22 jobs 500 new and retained 427 jobs jobs 250 new jobs 189 jobs 75% of objectives and On track workplan delivered 80% of growth -within a community 20% of growth -outside a community 6 Create Jobs Grow Business 6 Attract Investment enterprise JOHN MOST CONNECTED CCSMMUNlh Y KPI Criteria: To track the number of individuals, (students, young entrepreneurs, etc.) who have received formal training through an education program presented by or partnered with Enterprise SaintJohn. Potential Entrepreneurs 750 students and young people reached 542 • 168 students from 5 high schools ran 113 businesses for local Campus Markets. Generated $13,000 in sales and $7,000 in profit. • 5 students from NBCC carpentry program attend 'Are You Ready to Start a Business' workshop. • 23 students from Bayside Middle School develop an app to help Saint John Food Basket with food donations. Won BMO Financial Group National Student Innovation Award (based on impact on school/ community). • 10 entrepreneurs complete the Kickstart Your Business Program. • 74 students from Southern New Brunswick competed in PitchFest where they learned to deliver a business pitch and competed to deliver the best product pitch to guest judges and ultimately their peers. • 34 high school students participate in Youth Preloaded Clubs and participated in events such as the UNBSJ High School Coding Competition • 22 NBCC students present business ideas in a Dragon's Den format. E:il `)_1SA1N'r JOHN enterprise CANADA', MOST CONNECTED CCSMMUNlh Y i KPI Criteria: Startups: To track the number of new businesses started up as a direct result of coaching, mentoring and/or funding activity by Enterprise Saint John. A new business start-up is counted as of the date that the business is officially incorporated or registered to operate a business in the Saint John region. Jobs: Totrack the number of new full-time equivalent (FTE) jobs created by start-up businesses in the first twenty-four months of operation for those businesses started up as a direct result of coaching, mentoring and/or funding activity by Enterprise Saint John. Start -Ups and Existing 20 startups 16 startups Entrepreneurs 40 jobs 22 jobs • 14 startups funded by Seed Loan Program for a total value of $260,000 in first two quarters. • 6 companies successfully completed 13 -week Venture Validation Program in Spring 2017. • 2 Venture Validation Program graduates have legally registered their business and acquired first customers. • 7 high potential technology companies currently enrolled in Incubator program • 72 hours of business mentoring provided to high potential companies by Entrepreneur in Residence, Dan Doiron thth • 6 Saint John companies sponsored to attend Startup Fest in Montreal Quebec, July 13 —16 Companies who have received SEED Loans Busy Day Cooking and Catering Canvas and Cocktails Cowan Construction Ever After Bridal Boutique Knuckle Down Studios Momentum Nobel Exotic Pangea Spa gCheeza Resonance Inc Rogue Coffee Compa ny Stephen Chase Professional Corporation Summer Set Eye Clinic The age Friendly Innovation Group Inc. E:16'7 Companies who have received business mentoring Break the (Barricade Busy Day Chefs dGreif Dornair products Eheye Empress of Inspiration ESL Cafe Fishybill Four Eyes Financial Lettuce Turnip The Beet Night Puck Tech Origln Creative Studios Paint Brush Cover gCheeza Qpros Sensory Friendly Simply Stylish enterprise ��[�l��se JOHN CANADA', MOST CONNECTED cuwwuwm KPI Criteria: Totrack the number of new or retained full time equivalent (FTE) jobs created by existing businesses in the first calendar year of operation. FTE positions are a direct result of coaching, mentoring, funding and/or other activity byEnterprise 3aint]ohn High Potential Business 500 new and retained 427 jobs AWIT-7 M11 KPI Criteria: Totrack the contribution that ESJ staff make to the regional economy by helping companies new to the region establish new businesses area and in the process, create new employment opportunities. Companies included in this KPI are new businesses that E3] has provided support to in the form of information, introductions, advice or any other services necessary to help them locate in the region. C External Investors 250new jobs 189 Sector %mfTotal ° Business Service Centers continue to bring job growth tothe region Bus. Service Center 62% Energy 2096 ° Energy sector jobs continue tobea IT 9% key contributor tojob growth in Manufacturing 396 the region. Prof. Services 396 ° Several |Tcompanies showing Retail 3Y& strong job growth with high Total 10096 qua|ityjobs Notes: Trends based ""sampling ofeau/e"tmv°*""rs. Not based "" overall Saint John economy. Summary: ~ eaclient companies share significant om8demua|onfonnauonw/U`euono|omnonew)obsanta. ~ Thea companies share this information based on a trusted relationship where confidentiality mparamount. Any job number ESJ receives is based solely on companies willingness to share new job information. ~/nmany cases there is a reluctance to give this information based on confidentiality and competitive concerns. ~eadoes not provide incentives uncompanies and they are not required toshare information. enterprise JOHN MOST CONNECTED CCSMMUNlh Y Business Problem: Saint John region has a significant number of skilled jobs that are going unfilled. Companies are experiencing many difficulties finding talent for these jobs. • We are attempting to do something new to alleviate the gaps. Proposed method is new and innovative in a collaborative forecasting model • Benefits of compiling data through this model include: a) It would give us a comprehensive snapshot of the gaps and opportunities in this area b) It would allow us to be in a better position to attract new skilled immigrants c) It would greatly assist educational partners with intel for relevant program delivery d) Short term goal to build pilot in the Saint John region and if successful expand throughout NB. • • 1 Bell Aliant Irving Coil Ltd. Alurna J.D. Irving, Limited Bird Construction CMG - Owen's Brunswick McFadyen Group Square (Hotel Revolution LP Strategies Cox & Saint John Energy Palmer East (Point Scotiabank lnc. Downey Ford Emera lnnovatia *$ 184,000 of $250,000 target reached E:1l COUNCIL REPORT M&C No. 2017-240 Report Date September 12, 2017 Meeting Date September 18, 2017 Service Area Finance and Administrative Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Merchant Agreement — Chase Paymentech OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager Anne Drew Kevin Fudge m I Jeff Trail RECOMMENDATION That Common Council adopt the following resolution: 1. That Common Council authorize the Mayor and Common Clerk to execute the attached agreement between The City of Saint John and Chase Paymentech Solutions. EXECUTIVE SUMMARY The Saint John Parking Commission is upgrading several parking meters that will enable customers more payment options. In order to facilitate the upgrade an additional merchant agreement must be entered into with our existing payment provider Chase Paymentech. PREVIOUS RESOLUTION October 13, 2015 — M&C 2015-203 STRATEGIC ALIGNMENT The move to more efficient parking meters aligns with the continuous improvement initiatives, Council has endorsed. These parking meters will result in immediate savings for the 2018 budget. E:1:3 -2 - REPORT The Saint John Parking Commission is going to be replacing parking meters on the Waterfront as a pilot project. This will allow customers in the higher traffic areas to pay with credit card, debit cards, as well as cash. These new meters will also reduce costs in administration and maintenance of the existing meters and the anticipated savings in approximately $30,000 annually. In order to facilitate the processing of payments through the meters, the City needs to enter into an Addendum Agreement with Chase Paymentech to open a merchant account through which the City will receive payment from these transactions. In November 2008, the City entered into an agreement with Chase Paymentech Solutions to process payment card transactions for the City of Saint John. The existing Merchant Account currently includes transactions from the Finance Department, Building Inspection, Parking Commission Municipal Operations and Saint John Police. SERVICE AND FINANCIAL OUTCOMES Newer parking meters will provide more payment options for people coming to park in the uptown area and provide more enhanced reporting on the use and methods of payment used in these meters. There is also an expected savings of approximately $30,000 to be gained through reduced physical supplies for newer machines and time spent by staff in handling complaints from customers who have problems with the permits issued by existing meters. This amount of savings has been taken out of the budget for the 2018 submission for Parking Administration. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Legal has reviewed both agreements with Chase Paymentech and JJ MacKay Canada Limited. ATTACHMENTS Chase Paymentech Merchant Agreement Addendum: Additional Locations/Services Chase Paymentech Schedule A to Merchant Agreement E-lue CHASE 00�� Add Location/Services Set Up Form Please print clearly. If you make any corrections, please initial each change. MCC APPLICATION ID 9399 Company Number Sales Rep. Name 1751080 Danine Ferguson ® Additional Location # of locations being added: 1 ❑ Additional Service Model from Existing Merchant number: 5729403 Is this location's bank account information the same as the existing merchant number noted above? ® Yes By selecting Yes, Merchant understands that the existing location's bank account information will be applied to this new location. ❑ No Please attach bank account information (e.g. void cheque) Preferred Language: Website Address ® English ❑ French LEGAL INFORMATION Business Legal Name City of Saint John Legal Address (no P.O. Box) Telephone Number 15 Market Square, 10th Floor 506-658-4033 City Province Postal Code Fax Number Saint John I NB I E21-41-1 1 Primary Merchant Contact Legal Email Address Anne Drew I anne.drew@saintjohn.ca DOING BUSINESS AS" DBA AND LOCATION INFORMATION Merchant "Doing Business As" Name Location Open Date (mm/dd/yyyy) Citv of Saint John - Meters 08/31/2017 Complete this section if different from Legal Information Location Address (no P.O. Box) Telephone Number I City Province Postal Code Fax Number Name of Individual/Sole Proprietor or Entity/Parent Company Date of Birth (mm/dd/yyyy) Street Address (Individual/Sole Proprietor use home address) (no P.O. Box) % of Ownership Home Telephone I I City Province Postal Code SIN Number B Name of Individual/Sole Proprietor or Entity/Parent Company Date of Birth (mm/dd/yyyy) Street Address (Individual/Sole Proprietor use home address) (no P.O. Box) % of Ownership Home Telephone City Name of Authorized Representative Province Postal Code SIN Number Don Darling Address (provide residential address. No P.O. Box) 15 Market Square, 10th Floor City Province Postal Code Saint John I NB I E21-41-1 'Optional. 'Personal information is collected, used and disclosed as described herein and in accordance with our applicable Privacy Policy (available at www.chasepaymentech.ca or upon request) or otherwise as permitted by law. Trademark of Paymentech, LLC. Chase Paymentech Solutions authorized user. Add Loc Merchant Agreement Rev. 07/2016 1 90 Describe the merchandise sold or service provided Parking Meters Type of Ownership: Method of Selling: ❑ Sole Proprietorship ❑ Public Corp 100 % Card is present ❑ Partnership ❑ Non -Profit % Keyed (eg. Mail or Phone Order) ❑ Limited Partnership ® Government Corp % E -Commerce accepted on your website ❑ Private Corp100 % Total Visa Credit Volume: 20,000 MasterCard Credit Volume: 11,750 Debit Volume: 0 Amex Credit Volume: 2,625 Average Ticket Size: .25 ® Visa ® MasterCard ❑ Interac ❑ Visa Debit ❑ MasterCard Debit ❑ Interac Flash ® American Express (includes the acceptance of JCB cards) If applicable, enter existing American Express Merchant Number: 9326911063 ❑ Discover Credit If applicable, enter existing Discover Merchant Number: This Add Location/Services Setup Form is attached to and forms a part of the Agreement between Paymentech, Member and Merchant, as may be amended from time to time and will be effective as of your first processing date for the applicable additional location or service(s), and shall continue in accordance with the terms of the Agreement. In addition, the pricing from the existing merchant location will apply to this new location except as otherwise noted in any applicable Schedule A Addendum attached hereto. I, the undersigned, certify: • that I am an owner, partner, officer or other authorized representative of the Merchant ("Authorized Representative"); and • that I am duly authorized to enter into agreements on behalf of Merchant and to legally bind Merchant to such agreements. Furthermore, by signing below as an owner of Merchant, I authorize Chase Paymentech, Member, or their designees to: • investigate and verify personal credit and financial information about me; and • obtain and use consumer credit reports on me from time to time in connection with establishing Merchant's account and maintaining the Agreement. By submitting this Add Location/Services Setup Form, Merchant, through the undersigned Authorized Representative: • represents and warrants that the person submitting this Add Location/Services Setup Form on behalf of Merchant is duly authorized to enter into agreements on behalf of Merchant and to legally bind Merchant to such agreements; • represents and warrants that all information contained within the Add Location/Services Setup Form as well as any information submitted in conjunction with the Add Location/Services Setup Form is true, complete, and not misleading; • represents and warrants that it owns the bank account referenced in Section 1 Merchant Legal Name: City of Saint John Owner / Authorized Representative: Signer's name must appear in Section 2 X Don Darling Signature Print Individual Name Date (mm/dd/yyyy) Owner / Authorized Representative: Signer's name must appear in Section 2 X Signature Print Individual Name Date (mm/dd/yyyy) APPROVED: CHASE PAYMENTECH SOLUTIONS ("Paymentech", "we", "our" or "us") for itself and on behalf of JPMorgan Chase Bank, N.A. for the purposes of Visa and MasterCard acceptance. By Title Date (mm/dd/yyyy) Add Loc Merchant Agreement Rev. 07/2016 2 91 " r.w CHASE CF Pt y m e,i, rUJ Itbe i "t Visa Sales Vofurne ........ ........_. _ __,...... ... ..— ......... ......................... MasterCard) Sales Volume AmexIJCB Sales Volume Interac Sales Volum Average Transaction Size Number of Debit Gard Transactions .. _........,.._, .......... .. .. ............ Foreian Card V6WT19 Estimate Schedule A to Merchant Agreernent (Other Fee Disclosure Box) 0 Number of locations I Charoeback 0.o'10% Visa Discount Rate_ l 800 o Visa 'Domestic Consumer Fllectronic Fate _. - MasterCardsterMasterCard Discount Rate iTOeta MasterCard Domestic Consumer Public Sector Amex JCC OptB9rle Dlstot'nt Rate N.A L/AMoxIJCB �N1A Vtsa Debit Discount Rate" 0,350% Visa Debit Standard Discount Rate"" 14504y pw d lyVmiiiuuou°I bi ruiuoolpwwgolm'°° ___ 0.350°u---- Vel° NlCeVisa DebilU Debit Into M IIVIIV MC Debit Discount Rate* IV1C Debit Interchange &Assessment No to C Dealt Standard Discount Rafe 1 450°°.. -- -- AmexuJCB Whoiesale DN Discount & Additional Fees !A Interac Debit Discount Rate �N A Interac Flash lnterchaln e o Interac Online Discount Rate IN'A Interac Switch fee No - -- -- - - Discount Frequency --- Monthly Interac Online AcquirerProcessing Fee No App lies to VisalMaslerCard 0sod transactions inserted or tapped at the point-af-sale - - Appirves to VisalMaznerCard Debit transactions other than inserted or tapped transactions trnduding, without 9irritabon, card -not -present or any premium debit cards) Visa Assessment Fee MasterCard Assessment Fee MasterCard Acquirer License Fee Visa_per transaction MasterCard per kran attoon Amex/JCJ tBlua per traD5action Visa Debit & Visa Deblit Std per transaction Maestro Debit per transaction Visa Return per transaction MasterCard Return per transaction Amex/JCB OptBlue Return per transaction AMEXIJCB per tr-1111- rrrransaI r"ction Discover r Diners/ Private Label 0.120% Amex'JCB OptBlue Network Fee N/A O.t20°fcVisa Debit Assessment Fee - _ — _._ 0.120% 0 00 0/e `J MasterCard Debit Assesslment Fee _ ... 0.1200Ia _ _._ ...._ IIm�IIIIIIIIIII M'N.N'M ryII�IIIIIIMI�IIII'I'II Iu��NVNIi°1�4f�°EtMUU$N/A VISa/Maa d per attthC7rlZatlon $NIA $lVlA — _..... I Amex/JCB OptBlue. er autho izat�oro $ r'A $NIA $02000 Tokeii tta % ��u zat'�,o°l-"etoohl Entryptlon per tra�sactMoua $NIA ion goer transaction $SIA $NIA Lateww'ay Product per transaction $0.0800 $0.0800 The above credit discount rates are based on the assumption that all transactions will qualify at the Target qual kation Levet set out above. Fon example, transactions must meet certain qualification cr feria established by Visna and MasterCard for your Target Qua&'ificatirn Level in order to receive the Merchant Discount Rate. For each transaction not qualifying at the Target qualification Level, we will charge you both the Merchant Discount Rate and addibona8 tae(s) calculated as described below under the heading 'Additional information About Your (Fees-" Visa Cross Border Fee Single Currency - 0 800°0 ! MasterCard Cross Border Fee" Q 4QQ°10 - — _ Visa Gross Border Fee Multi Current - _ . Y ...... 0 400°o Amex OptBlue international Fee N/A Visa International Service Fee (Q 500m/a ..... ,. Fee assessed for cross-border transactions for nor -Canadian issued MasterCard, Citrus, or Maestro credit or debit transactions acquired from Canadian imerohaM5 and submitted to MasterCard. Merchant Signature X Please sig) n to acknowledge page 1 pf the Schedule A pricing sheet CONTROL NUMBER 445594.203 � Page 'I of 4 ON Chargeback Processing Fee ........ ........_ ......... ............................ ........ ... .... Voice Authorization Fee MC SecureCode Fee _.. MC Address Verification Sery Fee MC Card Validation Code Fee C Account Status Inquiry Fee {Intraregional'} MC Account Status Inquiry Fee (Interregional) MC Ineligible Chargeback Blocking Fee MC Pre -Authorization Non -Compliance Fee (Effective May 2017) MIC Final -Authorization Non-Cornoiiance Fee lEffectwe duly 2017) -- -. - ........ ........................ _._ __._.._ _.... . Amex/JCB OptBllue Card Not Present Fee. Application Fee Ot�etirne Fee On-site Eauirament Installation Fee On-site Wireless Consultation Fee Wireless Setue_fee _ __ _ Safeteoh Encrphon Setup Fee Terminal Setur, Fee $1 i 01, Charged when a cardholder or card-issunng bank formally protests a charge. --- — ....._.. — - _ _.._ w. $iJ. tll�g Charged when you call the Voice Authorrzation phone nor to authorize a credit carni US'$0.030 1 Charged on MasterCard SecureCode transactions that are sent for verification. U'S$q 0.} Q Charged wheat a merchant uses the MasterCard Address Verification Service to validate a cardholder's address. US$d .. CiCl25 Charged on iMasterCard when a marclnant submwts glee Card Vaiidakion Code QCVC2} in an avthonzabon request,. ....r .... ....__. US$a 025 Chained on MasterCard when a merchant uses this service to do an enquiry that a card number is valid. US$a.030 _ _., .... US$3 000 I Charged for every chargeback that has been blocked by MasterCard above prescribed CIS limit. US$0.0'45 I Charged when Pre-authonzabon is either not completed or reversed within 30 calendar days 0.25% of authorized amount with a Charged when, a merchant faiils to settle their batch of transactions within minimum Of US$OrD4 per tran 7 days Each transaction in the batch will be charged this fee. ------- NIA. ( Charged on Amex for non -swiped transactions. $NIA $NIA Othe r ee pppppp�� pp�� $N1A Statement Fee. $N/ A A......._ ........ Fee -- I � Admin FeeOnline .... _._.... ..... _ $3!A Minimurn Discount Fee ffor egt h Visa & MC}. $N/A Oatewa',Produot $NIA ml � II lu r U c�idar i ni i Ifi'p LAnnuak Fee (Per LacaTion� — — _-- _N_ /A ------- —� Gateway Product N/A Interac Onitnea'Acxs s Testin TeehntcI Sufrpa �Na'A y_ g .. None of the Equipment set out above is enabled to accep6 D=ver EMV credit card transactions. If you elect to accept Discover credit card tra nsacbons as of he date hereof, be aware of the folio wirg 0) in carder to accept Discover FM v credit cards in the Munn, asdgtianal oasts may be applicable„ including wdhoul lirnutation, costs to upgrade your Eopmenryt acrddrop you may have iiabdity for certain chargebacks on Discover EMV credit c=ards if your Equipment is not enabled to accept Discover EMV credit card transactions. Merchant Signature X Please sign to acknowledge page 2 of the Schedule A prlctng sheet Page 2 of 4 019] Additional Information about your fees interchange : A significant amount of the fees that we charge you for processing your credit eared transactions represent charges that we must pay to the card issuing banks (or that are otherwise charged to us by MasterCard and Visa) under MasterCard and "Visa ithe "Payment Brands') rules, 'these charges are often referred to as "Interchange fees' or simply 'Interchange'. Interchange fees are set by the Payment Brands based upon a series of Interchange levels that they establish and modify from time to time. Thus, the Interchange fee charged for a given transaction depends on he Interchange level applicable to that transaction; and that Interchange level depends on a number of factors established by the Payment Brands, such as the type of card presented, specific information contained in the transaction. ,how and when the transaction is processed, your industry and other factors. For a transaction to quaf €y at any specific Interchange level' he applicable qualification criteria must be met_ Note that the Payment Brands may add new Interchange Ievrels and change the tnteruhange rates and qualification criteria for existing Interchange levels. (Merchant discount Rate and Target QuaRfication Level : Every credit carol transaction will be charged the Merchant Discount Rate. Paymentech has set your Merchant Discount Rale based on the assumption that your transactions will satisfy he crroarra established by the Payment Brand rules to meet the Target Qualification Level set forth above. The Target Qualification Level is the Interchange level that we expect fa apply to your transactions It is determined based on the I of transactions you submit and how they will most likely be processed, Howevar, It is possible [hat some of your transactions will be processed at a higher Interchange level, resulting in higher Interchange fees for your business. This may occur because these "Non -Qualified Transactions' do not meet the criteria to qualify at your Target Qualification Level. Such transactions are subject to fees in addition to the Merchant discount Rate (see 'Non -Qualified Transactions" below). Non -Qualified Transactions : Non -Qualified Transactions will be downgraded by the Payment Brandi, resulting in higher Interchange fees. For processing such Non-Quatified Transaction, we will charge you (a) the :Merchant discount Rate,, (b) an additional fee (the "the Non-Quaffying Amount') equal to the difference between he Interchange fee associated with your Target Qualification Level and the Interchange fee for the fnterchange level at which the Non -Qualified Transaction was actually processed; and to the extent appficable, depending on the nature of your priming with us or your program eligrbilihy (c) a Non - Qualified Transaction Processingi Fee (which is catculsied as a ,percentage at the amount of the Nan -Qualified Transaction)... The combined totall of the Non -Qualifying Amount and the Nan -Qualified Transaction Processing Fee will appear on your statement Merchant Signature CONTROL NUMBER: 445504.203 OL! Please sign to acknowledge page 3 of the Schedule A pricing sheet Page 3 of 4 New Product- Visa Staged Digital Wallet 0 Staged Digital Waflet Per Tran Fee - USD $0,10 (Effective 13..Oct-17) New Product: 0 Visa'020 Fee : Effective 01 -Oct -17 MasterCard Assessment. Fee increase by 0.003% (Effective Date: 1 -Nov -17) MC Debit : (Effective Date : '16 -Oct -17) • Debit Contactless Transaction fee : USD $0,004 • Debit Contactess Assessment Waived MasterCard Utifties: (Effectve Date : 16 -Oct -17) • Transaction Fee : USD $0.02 • MC Assessment Fee Waived MasterCard Unterchange Program Changes Printed Name X S i g na tur e CONTROL NUMBER: 445594.203 Date (Month/Day/Year) Pleas* ensure you have signed pages 1, 2. 3 and 4 OR Page 4 of 4 COUNCIL REPORT M&C No. 2017-238 Report Date September 12, 2017 Meeting Date September 18, 2017 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT. Contract No. 2017-21 Crack Sealing 2017 OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Rod Mahaney Michael Hugenholtz/Brian Keenan Jeff Trail RECOMMENDATION It is recommended that Contract No. 2017-21: Crack Sealing 2017 be awarded to the low Tenderer, AVL Construction Group Inc., at the tendered price of $89,125.00 (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 The purpose of this report is to recommend that Council award Contract 2017- 21: Crack Sealing 2017 to the low Tenderer. PREVIOUS RESOLUTION December 12, 2016; 2017 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. -2 - REPORT BACKGROUND The 2017 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. TENDER RESULTS Tenders closed on September 12, 2017 with the following results, including HST: 1. AVL Construction Group Inc., Drummond, NB $89,125.00 2. Road Savers Maritime Ltd., Chester, NS $106,375.00 3. Classic Construction (2012) Ltd., Saint John, NB $196,765.00 The Engineer's estimate for the work was $98,000 including HST. ANALYSIS The tenders were reviewed by staff and were found to be formal in all respects, with the exception of a tender from Eastern Infrastructure Inc. which was rejected by the Tender Opening Committee in accordance with General Specifications Division 2 — Instruction to Tenderers and Tendering Procedures, item 2.8.03 h as the tenderer, Eastern Infrastructure Inc. did not obtain the tender documents directly from the City of Saint John and the tenderer did not register on the City's official list of bidders for this project. 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. Work is expected to begin the first week of October and continue until October 15, 2017. MA -3 - 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. The analysis is as follows: Budget $ 100,000 Project net cost $ 80,800 Variance (Surplus) $ 19,200 POLICY—TENDERING OF CONSTRUCTION CONTRACTS The recommendation in this report is made in accordance with the provisions of Council's policy for the tendering of construction contracts, the City's General Specifications and the specific project specifications. SERVICE AND FINANCIAL OUTCOMES Asphalt pavements 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 01:3 COUNCIL REPORT M&C No. 2017-235 Report Date September 11, 2017 Meeting Date September 18, 2017 Service Area Finance and Administrative Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Fall 2017 Debenture Application OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager Craig Lavigne Kevin Fudge m I Jeff Trail RECOMMENDATION Whereas occasion having arisen in the public interest for the following public civic works and needed civic improvements, that is to say: GENERAL FUND General Government $ 200,000 Protective Services $ 150,000 Transportation Services $ 1,000,000 Economic Development $ 200,000 Parks and Recreation $ 450,000 $ 2,000,000 SAINT JOHN TRANSIT COMMISSION $ 1,000,000 WATER AND SEWERAGE UTILITY Safe, Clean Drinking Water $45,000,000 REFINANCE DEBENTURES Debenture No. AX 13-2007 $ 1,900,000 (General Fund — 5 years) Debenture No. AX 14-2007 $ 3,500,000 (Water & Sewerage —10 years) Debenture No. AX 15-2007 $ 170,000 (Transit Commission — 5 years) $ 5,570,000 TOTAL $ 53,570,000 06%] -2- 1. Therefore resolved that debentures be issued under provisions of the Acts of Assembly 52, Victoria, Chapter 27, Section 29 and amendments thereto to the amount of fifty three million, five hundred and seventy thousand dollars ($53,570,000). 2. Commissioner of Finance be authorized to issue and to sell to the New Brunswick Municipal Finance Corporation (the "Corporation") a City of Saint John bond or debenture in the principal amount of fifty three million, five hundred and seventy thousand dollars, ($53,570,000) at such terms and conditions as are recommended by the Corporation. 3. And further that the City of Saint John agrees to issue post-dated cheques to the Corporation, or other such arrangements as the Corporation may from time to time accept, in payment of principal and interest charges on the above bond or debenture as and when they are required by the Corporation. 4. And further that the Commissioner of Finance be hereby authorized to receive an offer in connection with the foregoing debentures at a price not less than $98 per $100 of debenture, at interest rates not to exceed an average of 4.50% and at a term not to exceed 15 years for the issue related to the General Fund and Saint John Transit Commission and not to exceed 30 years for the Water & Sewerage Utility. For refinancing debentures from 2007, term not to exceed 5 years for the General Fund and Saint John Transit Commission and refinancing term not to exceed 10 years for the Water and Sewerage Utility. 5. And further that the Commissioner of Finance report to Common Council the exact values for price per $100 of debenture, interest rate and term in years, together with the date of the issue. EXECUTIVE SUMMARY Notice of motion was giving at the August 8t", 2017 meeting of Common Council regarding the need to borrow eight million, five hundred and seventy thousand dollars ($8,570,000). Staff presented to the Finance Committee on September 7th a report and recommendation to borrow an additional forty five millions dollars ($45,000,000) for the Safe Clean Drinking Water Project. The Finance Committee passed a motion fully supporting the recommendation. The Bank of Canada raised its key interest rate by 25 basis points on July 12, 2017 and again in September. These increases were the first in almost seven years (September 2010). Based on the 10 year Government of Canada interest rate projections sourced through Bloomberg, there is an expectation rates will continue to increase over the next five quarters. `tell] -3 - The change in interest rates, as well as the potential of more rate increases served as the basis for staff's recommendation to borrow early given every increase of 25 basis points represents approximately $1.5 million in interest costs over the life of the debt. Staff provided the Finance Committee with the attached report to reduce this risk by borrowing early. The next step in the debenture financing is to submit application to the New Brunswick Municipal Finance Corporation. In order to proceed with the debenture financing this recommendation requires Council's adoption. PREVIOUS RESOLUTION M&C — 2017-202 — Fall 2017 Debenture Issue — Notice of Motion REPORT The New Brunswick Municipal Finance Corporation is planning a bond issue in the near future and applications are to be submitted by September 27, 2017. While the issue will not be sold until the Corporation feels that rates are reasonable, they have provided ranges within which the issue could be sold. These are as follows: Interest Rate: Not to exceed an average of 4.50% Price, Net: Not to be less than $98.00 per $100.00 of debenture Term: Serial form to mature in equal annual amounts over a term not to exceed 15 years for the General Fund Saint John Transit Commission and 30 years for the Water & Sewerage Utility. Notice of motion was given at the August 8t", 2017 at the meeting of Common Council to borrow eight million, five hundred and seventy thousand dollars ($8,570,000) and a recommendation to the Finance Committee on September 7th to borrow an additional forty five million dollars ($45,000,000) for a total borrowing of fifty three million, five hundred and seventy thousand dollars ($53,570,000) The amount to be borrowed is a combination of new debt, forty eight million ($48,000,000) and the refinancing of debentures issued in 2007 for five million, five hundred and seventy thousand dollars ($5,570,000). Market conditions in 2007 resulted in a fixed period of ten years on the debentures even though the City borrows for 15 years for General Capital and 20 years for Water and Sewerage. `to]I -4 - There is interest rate risk for the City when debentures require refinancing due to market conditions. The City has received debentures since 2012 that are for the full term and will not require refinancing, therefor eliminating interest rate risk. The City has also benefited from historically low interest rates when refinancing the balance owed on debentures. The average yield on 2007 debentures was 4.869%, where the average yield on debentures in June 2017 was 2.455%. Market conditions are still favorable and the City will see a reduction in interest costs for these refinanced debentures. For Water and Sewerage, the forty five million ($45,000,000) being borrowed relates to the Safe Clean Drinking Water Project which will be borrowed for a term of 30 years to match the length of the contract in place to manage and operate the water treatment plant. SERVICE AND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS Letter from Finance Committee — Chairman David Merrithew Finance Committee Report — Safe Clean Drinking Water Project - Borrowing `[oya The CRY of Saint John Your Worship Mayor Don Darling & Members of Common Council: Rei Safe Clean Drinking Water Project — Fall 2017 Borrowiing As Chairman of the Finance Committee, I am writing on behalf of the Committee to advise that at the meeting of September 7, 2017, staff from the Finance team presented a report and presentation outlining the financial analysis completed around borrowing of $45,0100,000 as part of the substantial completion payment for the Safe Clean Drinking Water Project, At that meeting, it was "RESOLVED that the Finance Committee recommend borrowing an additjonal $45,000,000 for the Utility Fund, Safe Clean Drinking Water Project, as part of the fail debenture issue". f Yours.sicere ly) Davids, errithew Chairman, Finance Committee City of Saint John P.O. Box 1971 C.P. 1971 Saint John, NB Saint John, N. -B. Canada Canada E2L4L1 SAINT JOHN www.4hn.ca FINANCE COMMITTEE REPORT Report Date August 21, 2017 Meeting Date September 07, 2017 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT. MC 2017 - 235 Supporting Document 2.docx OPEN OR CLOSED SESSION This matter is to be discussed in open session of Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager Craig Lavigne Kevin Fudge m I Jeff Trail RECOMMENDATION It is recommended that the Finance Committee approve borrowing $45,000,000 for the Safe Clean Drinking Water Project as part of the Fall Debenture issue and approve amending Council Report M&C 2017-202, 2017 Fall Debenture — Notice of Motion to reflect borrowing $45,000,000 as part of the 2017 Fall Debenture issue. EXECUTIVE SUMMARY The Safe Clean Drinking Water Project is anticipated to be substantially completed by November 2018. Once the project is considered substantially completed there will be a requirement for the City to make the substantial completion payment. The City will have approximately $17,000,000 in reserves to offset the payment required and will need to borrow an estimated $47,000,000 for the balance of the payment obligation. The purpose of this report it to discuss timing of the borrowing and recommend when and how much to borrow for the substantial completion payment. PREVIOUS RESOLUTION M&C 2017-202 - 2017 Fall Debenture — Notice of Motion `[eLI -2 - STRATEGIC ALIGNMENT The report and recommendation is aligned with Councils' priorities of being Fiscally Responsible. REPORT The Bank of Canada raised its key interest rate by 25 basis points on July 12, 2017. This increase was the first increase in almost seven years, September 2010. This rate increase signals strength in the economy and all indications is that the key interest rate will continue to increase based on current economic data. The change in interest rates, as well as the potential of more rate increases will have a significant impact on debt; particularly with the estimated $47,000,000 the City will need to borrow by the fall of 2018 as part of the Safe Clean Drinking Water Project. The projected amount the City will have to borrow based on funding commitments, contruction costs and reserves is $47,000,000. However, there is still risk that that number could change for various reasons, therefor staff are recommending borrowing $45,000,000 at this time. Staff have had several discussions with NB Municipal Finance Corporation to discuss interest rates as well as borrowing terms for the $45,000,000. Based on the 10 year Government of Canada interest rate projections sourced through Bloomberg, there is an expectation rates will increase by almost 70 basis points over the next five quarters. Using these assumptions staff did several borrowing scenarios. Senerios involved looking at borrowing in the fall of 2017, spring of 2018 and fall of 2018. The results showed that for every increase of 25 basis points of the key interest rate, Saint John Water rate payers would pay an additional $1,500,000 in interest over 20 years. Based on anticipated rate increases over the next five quarters, rate payers may be at risk of paying anywhere between $1,500,000 to $4,180,000 more in interest over 20 year depending on timing of the borrowing. Staff is recommending borrowing $45,000,000 as part of the fall 2017 debenture issue to mitigate the risk of interest rate increases. The 2018 Utility Operating budget has been drafted to include the principle and interest payments for this debt. Also built into the operating budget will be the anticipated $540,000 in interest revenue that will be earned on the $45,000,000 since the money will not be needed for approximately twelve months. `Wee -3 - SERVICE AND FINANCIAL OUTCOMES The borrowing for the Safe Clean Drinking Water Project will become a fixed cost for the next 30 years. The payments will be spread over 30 years whether the money is borrowed in 2017 or 2018. The financial implications of borrowing in 2017 will result in less interest costs for rate payers if market indicators hold true. The impact on the 2017 Operating Budget will result in additional $525K in expenditures for interest and borrowing cost associated with the debenture. However, based on the year end forcast projections, the Utility is currently running a surplus that can absorb this unbudgeted item. SAINTJOHN WATER- YEAR END PROJECTIONS 2017 BUDGET 2017 YE FORECAST VARIANCE REVENUES 45, 250, 000 46, 050, 345 800,345 EXPENSES 45, 250, 000 45, 076, 203 173,797 SCDWP DEBENTURE -525,000 -525,000 TOTAL VARIANCE - 449,142 449,142 INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Input has been received from NB Municipal Finance Corporation, Saint John Water and Finance team. ATTACHMENTS N/A 8[91:1 saintj ohnindustrial.ca F uui�u��urfi a aw°IE IIL°u September 13, 2017 His Worship Mayor Don Darling and Members of Common Council Your Worship and Councillors: SUBJECT: Acceptance of a Municipal Services Easement BACKGROUND: Saint John Industrial Parks has entered into an agreement of Purchase and Sale for 6 acres of land off Whitebone Way in the McAllister Industrial Park. The agreement is set to close in late September. There is a small pvc drain pipe that daylights at the southerly tip of Lot 17-1, the lot to be conveyed. In order to transfer the lot, Council must first accept the 15 meter wide Municipal Services Easement (MSE) as designated on the tentative plan attached hereto this report. Assent from Common Council for the acceptance of the MSE is required pursuant to Section 55(5.1) of the Community Planning Act and Regulation 84-217. The attached Tentative Plan has been reviewed by the City's Manager of Infrastructure Development. RECOMMENDATION: It is recommended that Common Council assent to the proposed Municipal Services Easement as shown on the attached Tentative Saint John Industrial Parks Plan of Subdivision. Respectfully submitted, �"a �Fg� ez.-4� Saint John Industrial Parks Ltd. Lois E. Vincent, President iroalginit.iohin hidt,gstiriW Piair,,,s ...td, - P 506 658.1418 F 505658233.715 1Kr.aketSi quivaire, '11 Ot:h flooir��, F.0. Box 197115�ahrfll JclhronN MB E2L 41.1 107 iDU] Sept. 12, 2017 To: The Mayor and Councilors of the City of Saint John I am writing you again about my concerns with the process of rezoning land at Rockwood Park for development. Now that the Growth committee has sent the recommendation to sell and develop #1671 Sandy Point Road to council to consider; I am wondering when the public will consulted? After the rezoning or before? Besides the fact that I believe selling the lot is unethical, backward and financially foolish; I am also concerned that the process is rushed and seems backwards. Surely public consultation with a presentation of the facts about exactly what is proposed should come next? Apparently the moratorium against development in the park has been bypassed without any public consultation. So, I am wary about what else might happen without public consultation. I would like to know what is the type of housing proposed? Who is the developer interested in the land? How much money will the land be sold for? What type of environmental study will take place? What are the required legal steps and what is next? What other City owned lots in that area are also being looked at to sell and develop? The citizens have a right to know soon if not right now....... before the rezoning process starts. I do not consider Twitter and Facebook postings and videos by the mayor to be public consultation. Thank you. I look forward to an answer to my questions. Cindy Kilpatrick 60 Candlewood Lane Millidgeville, Saint John `[ole.] From: Denise Ainsworth [mailto:denise60Cd)nbnet.nb.ca] Sent: September -13-17 11:18 PM To: MacKenzie, John; McAlary, Shirley; Norton, Greg; Armstrong, Blake; Casey, Sean; Reardon, Donna; Merrithew, David; Strowbridge, Ray; Sullivan, Gary; Lowe, Gerry; Darling, Don; External - CommonClerk Subject: Rockwood Park Dear Mayor & Council, There are citizens in Saint John who are feeling very frustrated that they are not being heard. Over the past 7 years, the city has generated numerous reports at considerable taxpayer expense. To name a few: Sandy Point Road Planning Study 2010, Plan SJ 2011, Parks and Recreation Strategic Plan 2012 and now the Growth Strategy. Plan SJ alone was a 2 year process with numerous round table consultations with citizens including a drop-in Plan SJ storefront for citizens to get information and give feedback. In the end, it generated a 288 page comprehensive & progressive plan for the city, much of it based on citizen's vision to "grow the city smarter." Most noticeable when browsing Plan SJ is its emphasis on developing the urban core neighborhoods, limiting urban sprawl, conservation of natural areas, and encouraging a more compact & sustainable city. It recommends that housing and employment growth be concentrated in areas that already have existing services & infrastructure. It recommends restricting development in environmentally sensitive areas including water courses and wetlands. So how did we go from this to now proposing a residential development in Rockwood Park and next to a wetland and lake? The people's voice is in PlanSJ and it says that this kind of development is NOT what people envisioned in 2011 and still do not want in 2017. You will not get the "buy in" from citizens to gradually carve up and sell pieces of Rockwood Park for some meager amount of money that will not solve the spending problems of the city. You could sell off every park in the city but it willl never make up for the mounting expenditures For example, 60% of the city's operating budget ($90 million) projected to be spent on wages, benefits and special pension funding in 2018. Let's be honest. Rockwood Park is the low hanging fruit in the discourse about tough fiscal decisions. Citizens are looking to you to do more to rationalize costs at City Hall. Start by undertaking an independent audit of all city departments. Can we please move past this notion that selling parts of Rockwood Park & Tucker Park is a viable financial path forward It is sheer lunacy and sadly desperate. Sincerely, Denise Ainsworth Saint John, NB is[( DIRECTOR Suzanne H. Crowhurst Lennard (Portland) ADVISORY BOARD Krzysztof Bleda (Krakow) Mayor James Brainard (Carmel l David Cloutier (Santa Fe) Derek Drummond (Montreal) Andreas Feldtkeiler (Tubingen) Mayor George Ferguson (Bristol) Tigran Haas (Stockholm) Mayor Dietmar Hahlweg (Erlangen) Richard J. Jackson (Los Angeles) Ferd Johns, (Bozeman) Gianni Longo (New York) Michael Lykoudis (Notre Dame) Donald MacDonald (San Francisco) Lamine Mandioubl (Bristol) Tom Martineau (Tallahassee) Ettore Maria Mazzola (Rome) Michael Mehaffy (Portland) Alain Miguelez (Ottawa) Rolf Monheim (Bayreuth) Judge Robert Morrow (Hamilton) Rick Phillips (San Jose) Tatia Prieto (Huntersville) Mayor Joseph P Riley Jr. (Charleston) Edoardo Salzano (Venice) Philip Stafford (Bloomington) Sven von Ungern-Stemberg (Freiburg) Hartmut Topp (Kaiserslautern) Mayor Hermann Vogler (Ravensburg) PROGRAM( COMMITTEE CHAIRS Suzanne H. Crowhurst Lennard Ph.D.(Arch.) Director IMCL Conferences 1209 SCJ 61h Avenue, #404 Portland, OR 97204 USA Tel: 643.206-2617 uzanne.Lennard LivableCities.org Dr. Sven von Ungern- Sternberg Regierungsprasident State of South -Baden (Freiburg LB, GERMANY wuw w-,Iivablecities.org ,August 24, 2017 Dear Mayor and Council, l�m� � Jtr� J i' Please join colleagues October 2-6 in Santa Fe for the 541h IMCL Conference on Public Places. Share your city's achievements and learn from others how to ensure that our streets are walkable and bikeable, that green spaces are easily accessible for all, and that every neighborhood has safe, hospitable places where social networks and community can flourish. The IMCL Conference is unique. It brings together elected officials, professionals and scholars from diverse disciplines committed to the mission of making our cities more healthy and livable. At this conference, we hear from some of the best models from around the world, we examine innovative new ideas and the latest findings. In discussion groups and workshops we share viewpoints and experience. This year, Barcelona will receive the IMCL City of Vision Award. Freiburg, Germany, Bristol, UK, Carmel, Indiana, and Quebec, Canada will be specially featured, and we shall hear about outstanding projects and programs from across the US .and Canada, as well as Australia, Italy, Brazil, China, and around the world. Please circulate the enclosed brochures among council members, and with your planning and parks department staff. They will also be interested in the opportunity to obtain 30 AICP CM credits. The IMCL Board and I look forward to seeing you in. Santa Fe! With best regards, 6AbWVIff Suzanne H. Crowhurst Lennard, Ph.D.(Arch.) Co-founder, Director, International Making Cities Livable 111 `spa ou o cl m y > -v o -u m n q to - T ;a - 3:0 cm g (D n o =-v n n a (D :� o qf3 n -u :* :D (D 0 io =r m n 0 0 < C 0 (D < C m 0 < 0 (D (D 07 a =r =r 0 =r D- a- 3 3 (D " n -:2 0- 6 5. ca :� -, 3: opo r- m 1�1. 0. 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At this time there are large cracks with grass, and weeds growing in the crevices. With a new surface, we envision the youth playing basketball or ball hockey in a safe and secure location. In the past we have witnessed youth playing ball hockey while their parents prepare a BBQ. Their siblings might be playing in the playground, the ball field or enjoying a walk in our 27 acre park. A true family experience. With the addition of ball hockey we feel it will build team chemistry and provide kids with different recreational opportunities and enable them to make friends for life, On September 18, 2011 the city made promises to Emiera NB and the residents of Milford. I have included the following: - A copy of the city's press release, where they are pleased to partner with the residents in the development and maintenance of the park, - Our secretary's notes at the opening when the city stated that they would initiate the improvements to the playground, the ball field and the resurfacing of the basketball/tennis court area. - The city placed posters around the event, showing their proposed project phases. - I have also included our recent request for help in 2016. The only thing we received was 2 loads of topsoil for the ball field, - I have also included two copies for an estimate on the resurfacing of the basketball/tennis court, Both estimates are under $15,000,00. To date, the city has not kept any of these promises. As a community we need the city to step up and help us as we are starting to lose a number of our enthusiastic volunteers, after six years. If anyone wishes to ask any questions, make comments or to see the pictures of the day's event, please call me at 672-4269.Thank you for your consideration in this matter. I remain, Ken Palmer, Milford Park Committee MR JaW AM FOR) - E vald Wpm Tvair 16"Naw Olin - Antre Court. We're here 110 O'a-cc�'Ur'dze Emare for Us, �F -7 U,rtj� vzpcs of vve.wrOwnt property W: L-'cj" .. . . . . . Mkv 451 ANT, . . ,?.O _U. W wed roz so gled'tvv 1 1 r d c q E4" fr. "'v'- lva V1 Cowl anti membars crSah"/"' calebrated it and """celfc- all t spots for ortivity roptknis Mr ul pleased to dearvatc W r t Pies m L cy e Ganarx"", quy aw a 5""n! 1PZ MIR Wd to w true, nr 'z vald Wpm Tvair 16"Naw Olin behy vNIVAi Court. We're here 110 O'a-cc�'Ur'dze Emare for Us, U,rtj� cy""" at at `m1.1 K!""ITS 16"Naw Olin behy vNIVAi g"C(", MAP U,rtj� cy""" at at `m1.1 Under sunny skies nearly 300 people attended the official opening of the trail system at the newly expanded Lois Murphy Park on Sunday, September 18"'. The newparkr has approximately 35 acres of prime waterfront property, sitting high on the hill overlooking the beautiful Saint John River and the Reversing Falls - Rapids. The Park's entrance is at 247 Milford Road,. The trail system is only part of the first phase initiated by the city to enhance the Milford community recreation facilities, Other phases include playiround development and improvements to the existing ball field. The land for the trail system was given to the city by Brunswick Pipeline (Emera NB) on .August 2a", 2011 after the rezoning and transfer were completed at a regular Common Council meeti Parc Lou Murphy 9111, V U Proposed Project Phases I ftapes proposees du projet Phase 1 Playground Development I Terrain de jeu Trail Development I Sentiers Phase 2 Ball field Developments I Terrain de balle Phase 3 Asphalt Resurfacing I Asp,haltage Phase 4 Land Behind Milford Community Centre Am6nagement du terrain derri&e le centre communautaire Milford Trails & Lookouts I Sentiers et 7belv6&res SAINT JOHN 118 November 10, 2016 Our various committees in Milford have worked on the following projects: 1. The complete restoration of the Milford War Memorial —over $65,000,00 2. The establishment of a beautiful park on, the 27 acres of land donated by Emera NB. 3. The building of Senior Housing on the Lou Murphy property— 6 units. 4. The restorations to the Donnie Dwyer Ballfield in Milford —over $55,00.00 We are now asking the city for some help to complete the following projects: Ballfield: 1. A load of topsoil to be spread now on the new extension to the ballfield. 2. In 2017 we would like the city to consider putting a concrete floor in the dugouts and under the bleachers. This would make the area far more attractive and save the city yearly maintenance costs., Park: 1. The Milford Park Committee would like to mulch the trails once again. This was done in 2012. The Committee would get the mulch and have it delivered to the Ballfield. We, hope that the city would then take the mulch out into an area, we call the Summit. Then we would spread the mulch on the various trails. We would also provide a free BBQ for all the volunteers. 2. Another suggestion is for the city to help us come up with a better idea for signage in the park. 3. We would also like the city to help in the maintenance of the park —at least twice a year. —June and September. The city has done nothing in their park for the last four years. Basketball -Tennis Court: 1. We would like the city to consider fixing the cracks and perhaps putting in anew asphalt surface. We believe the basketball —tennis court was installed when Shirley McAlary was Mayor in 1997. It would be nice to have a new surface 20 years after it was initially installed. Playground: 2018. Our committee is contemplating doing fundraising in 2017 and installing a new playground in Thanking you for your consideration now and in the future. Ken Palmer 672-4269 Darlene Richard 672-1222 Marilyn Upton 672-4185 i§&61 PO Box 2676 FUNDY PAVING Saint John, NB PAVING CONTRACT E21- 4Z1 I/we hereby authorize Fundy Paying, Telephone: 657-7341 of Saint John, N.B. to do the following 1-800-838-3466 Date: work and installation, Eina& fund ypaving@hotma il.ca Zone: Job, Location: Job Description Sr)ecification-q rr%.# 11 Regrade Total Area E Proof Roll The Sub Base K Pave With El Remove The Clear Stone D Place Crusher Run Gravel, & Compact El M Remove any clay or large rock from within 6" of the new pavement 'WORK ORDER: 7" /7 I Az o Total cost $ for which l'/we agree to pay $ deposit and the balance of $ —upon completion, Workmanship is guaranteed for two full years from job completion date. Customer: Phone: Company Representative Address: City/Town: 14gnature: L 11 Regrade Total Area E Proof Roll The Sub Base K Pave With El Remove The Clear Stone D Place Crusher Run Gravel, & Compact El M Remove any clay or large rock from within 6" of the new pavement 'WORK ORDER: 7" /7 I Az o Total cost $ for which l'/we agree to pay $ deposit and the balance of $ —upon completion, Workmanship is guaranteed for two full years from job completion date. Customer: Phone: Company Representative Address: City/Town: 14gnature: Black Seal Paving & Chi*psealing P.0, Box 27027, RPO Manawagonish, SaintJohn, NB E-2NI -;S8 PO Box 2676 FUNDY PAVING Saint John, NB PAVING CONTRACT E2L 4ZI I/we hereby authorize Fundy Paving Telephone ' -657-7341 of Saint John, N.B, to do the fallowing 1-800-838-3466 Date: Email: fundypaving@hotrnail,ca work and installation. Zone: Job Location: Job Descrir)tion Snecifirrit;nnq re%cf D Regracle Total Area Z Proof Roll The Sub Base El Pave With IE Remove The Clear Stone 2'Place Crusher Run Gravel, & Compact, E13 2 Remove any clay or large rock from within 6" of the new pavement WORK ORDER: ri Total cost $ for which I/we agree to pay deposit and the balance of $ —upon completion, Workmanship is guaranteed for two full years from job completion date. Customer: Phone: Company Representative Address: City/Town: 12iignature: 4, r 7 D Regracle Total Area Z Proof Roll The Sub Base El Pave With IE Remove The Clear Stone 2'Place Crusher Run Gravel, & Compact, E13 2 Remove any clay or large rock from within 6" of the new pavement WORK ORDER: ri Total cost $ for which I/we agree to pay deposit and the balance of $ —upon completion, Workmanship is guaranteed for two full years from job completion date. Customer: Phone: Company Representative Address: City/Town: 12iignature: Lorneville Restoration Project September -14-17 City of Saint John LPP Fund 15 Market Square, Saint John NB RE: Request for Donation — Lorneville Playground Restoration Project We are a group of community volunteers from the Lorneville Playground Restoration Project, writing to submit an application to the Land for Public Purposes Fund to further assist in the purchase and installation of new playground equipment for the Lorneville Community. Our group of very dedicated volunteers are striving to bring back outdoor play for the children in and around the community of Lorneville; by means of rebuilding / restoring our only playground located behind our community centre. This original structure has been in place for upwards of 26 years. The structure is in disrepair and has been deemed at the end of its useful life by city parks and recreation staff. Our group has sanded and repainted portions of the structure and members of the recreation and parks department have welded the broken columns to allow the structure to stand until the eventual decommission or replacement of the unit. Community Volunteers have been working with members of the parks and recreation departments as well as our ward 1 city councillors to be sure we are aligned with the Play SJ strategic plan. This has also helped us to move in a positive direction. We have received a provincial FYCAP grant for 2017 as well as one from the Regional Development Commission. We have received funding from corporate donors as well as we have been engaging our community in fundraising projects such as bottle drives, craft sales, raffles, 50/50 draws and an entry into the Aviva community grant fund. Feedback from the community is very positive in regards to replacing our aging playground and revitalizing the basketball court and sitting areas. The closest playground to Lorneville is located 8 km away, at Island View School, which is only accessible to public when school is dismissed. We are currently at 96% of our fundraising goal. In order to purchase the new equipment we need approximately $2700 which needs to be received by Sept 30th. We do have several smaller fundraisers coming up this month and are still approaching potential donors for this project but are asking for assistance with the final amount needed for this project. On behalf of our committee and community, thank you for your time and consideration on this matter. Thank you, Deanna Allan 1141 Lorneville Road • Saint John, NB - (506) 639-1050•lorneviIleplaygroundrestoration. com Oil Lorneville Playground Restoration Project `f►4c3 Lorneville Restoration Project 1141 Lorneville Road • Saint John, NB - (506) 639-1050•lorneviIleplaygroundrestoration. com Oil Lorneville Playground Restoration Project M1111 ................. —.1 .......... .......... . . ........ . .. . ................. T_ 20,17 .... ..... 48 Hampton Road Rothesay, NB E2E 51_2 Phone: (506) 847-9406 funqysoccer nb.aibn com_ wyv.furaysoccernb ori Fundy Soccer is proud to announce that two of our Premier teams have qualifled to compete in this year's Club National Soccer Championships. Teams will be traveling to the host province from Oct.3rd -Oct 10th. The U15 Boys will be traveling to Calgary, Alberta and the U17 Boys will be competing in Fredericton, NB. We are looking for your support in their effort to raise money to assist with team travel expenses, the cost per team ranges between $20,000 and $40,000 depending on location. Fundy Soccer will be running a congratulatory spread in the Telegraph Journal Oct. 9th in support of the teams and we are hoping you can help them reach their goal by purchasing one of the following newspaper ads. -Business Card - $250.00 -Banner - $1000.00 Thank you for your support for youth sports in the community. For further information -egarding fundraising please contact the Fundy Soccer office at 847-9406. r. pt I Cheryl ac aster Office Administrator Fundy Soccer i MI WHEREAS: New Brunswick's Wellness Strategy has a vision of a healthy New Brunswick where, together, we team, work., play and live in a culture of wellness, and where we recognize the instrumental role that local governments play in promoting and supporting this vision-, and WHEREAS: wellness is about having a good quality of life and the ability of people and communities, to, reach their full potential in terms of health and fulfillment of purpose; WHEREAS: New Brunswick Wellness week provides opportunities for communities, organizations, schools and workplaces to promote and celebrate wellness by hosting wellness activities and events that address all dimensions of well- being and determinants of health, and WHEREAS: New Brunswick Wellness Week is held annually and this year takes place frorn October 1-7, 2017; NOW THEREFORE: 1, Mayor Don D, arling, of Saint John do hereby proclaim the week of October I" to 7`h, 2017 as Wellness Week in the City of Saint John. 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This is the context that has the city wondering if the current property tax is fair and equitable for all taxpayers and whether it has the capacity to support the City's current and future growth objectives. The purpose of this report is to evaluate the fairness and equity of the property tax in Saint John and to suggest changes that could be made in the short run to improve the tax. It also explores whether changes can be made to the property tax to stimulate economic growth and promote fiscal sustainability The report reviews the theoretical and empirical literature on the property tax, focusing on features that are relevant to Saint John. It summarizes the characteristics of the property tax in Saint John and compares them to property taxes in other cities in New Brunswick and across Canada. It raises a number of issues around the property tax and makes some suggestions for what the city can do, as well as what the province can do, to improve its fairness and equity. The report does not discuss and evaluate the assessment system in New Brunswick, which is currently under review, because this is a technical issue beyond the mandate of this study. The Issues Ten issues relating to the property tax in Saint John are addressed in this report: 1. The apropriate relationship between the property tax for different property classes Throughout New Brunswick, the municipal property tax on business properties is legislated to be 1.5 times the tax on residential properties. Although there is no justification for a higher tax on business because business properties use fewer services than residential properties and they are more likely to move in response to a tax increase, the over -taxation of business by municipalities in New Brunswick is much less than in most other Canadian jurisdictions. Indeed, other cities in Canada, such as Vancouver and Toronto, have made a conscious effort in recent years to reduce the property tax on business because it has been much higher than the tax on residential properties. 2. Property tax differentials across jurisdictions Although there is no general agreement about the importance of property taxes on location decisions, the available evidence suggests that different property tax rates matter for location decisions in neighbouring jurisdictions. For example, the significant difference between property tax rates in the City of Saint John compared to the neighbouring municipalities and Local Service Districts may have an impact on residential and non-residential location decisions. It cannot be concluded that the tax differential, by itself, has had an effect in Saint John, but the city is experiencing slower growth in its tax base compared to its immediate neighbours. At least part of the explanation for the higher tax rate in Saint John is that the city provides services that benefit neighbouring communities. Evidence from other jurisdictions also suggests that people in surrounding areas use services that are paid for urban residents, such as roads, for example. Addressing the problem of service spillovers in the Saint John region where each municipality has its own independent governing structure is not something that can be resolved with changes to the property tax. Indeed, this issue was identified in the Finn Report where he recommended the creation of regional service districts and the amalgamation of municipalities. The creation of larger municipalities or two-tier districts, for example, could result in all of the beneficiaries of local services paying their share of the cost of services. 3. Property tax incentives Cities everywhere want to attract businesses and are often keen on offering property tax incentives on the grounds that businesses provide benefits to the community that exceed the municipal costs for services and potential environmental degradation. When incentives succeed in attracting new businesses to the city, they can result in increased employment and income, a larger property tax base, and the revitalization of depressed areas. Property tax incentives have had a poor record in promoting economic development, however. They are often wasted on firms that would have located there anyway and they `A are unfair because new businesses benefit from lower taxes at the expense of existing residents and businesses. Tax incentives can lead to unfair competition among businesses and result in a situation where no major investment occurs without them. Tax incentives might be effective for the first jurisdiction that implements them but once they proliferate across many jurisdictions, they lose their effectiveness to promote economic growth. It might be preferable to invest in services and infrastructure which will also attract new businesses and, at the same time, provide benefits to existing residents and businesses. 4. Taxation of special properties Special or unique properties include, for example, oil and gas refineries, linear properties (railway lines, pipelines), farmland, and forests. For the City of Saint John, property tax revenues from oil and gas refineries are a major issue in part because machinery and equipment (M&E) is not taxed in New Brunswick. M&E is not taxed in Ontario either but is taxed in Newfoundland and Labrador, Quebec, Saskatchewan, Alberta, and British Columbia. Although this exemption can be justified on the grounds that it encourages manufacturing and processing and expands economic activity, it provides an incentive to alter production so as to minimize property taxes. Including M&E in the property tax base, on the other hand, will result in fairer property tax treatment of all manufacturing and processing plants. If there are concerns about the impact of including M&E in the tax base on economic activity or the over -taxation of business properties more generally, a preferred approach would be to include it in the tax base but lower the tax rate on all non- residential properties. 5. Exemptions for some properties Property tax exemptions are unfair because exempt properties use municipal services similar to other properties and exemptions narrow the tax base thereby necessitating higher taxes on non-exempt properties or a reduction in services. Differential tax treatment of similar properties is likely to affect location decisions, choices about what activities to undertake, and other economic decisions. If there is a sound public policy reason for an exemption, it should be made explicit and, at the very least, exempt properties should be assessed on the same basis as non-exempt properties so the foregone `[E:3 tax revenue can be made explicit. If there is no public policy rationale for the exemption, it should be terminated. In the case of Saint John, federal properties are tax exempt but payments in lieu of property taxes are made by the federal government which are pretty close to what the property taxes would be. Hospitals and universities pay property taxes to the city but only at the residential rate. There are also commercial components to these properties (e.g. food courts, gift shops, etc.), however, which should be assessed and taxed at the higher commercial tax rate to place them on a level playing field with similar non -institutional properties. 6. Concessions for some taxpayers Although it is generally true that richer people live in more expensive houses, property taxes can be a problem for some taxpayers. In particular, taxpayers who are asset rich and income poor, such as seniors on a fixed income, face a cash flow problem. It is important to protect low-income taxpayers from property taxes that create an excessive burden. A number of programs are used across North America to address this problem, such as tax deferral schemes for the elderly and property tax credits against income for income tax purposes (also known as circuit breakers). In New Brunswick, for example, there is already a provincial property tax deferral scheme for seniors as well as grants that are credited against property taxes on the principal residence of low income owner -occupied homeowners. 7. Special tax on vacant land Current practice in New Brunswick is to assess vacant land at its market value — the value in its highest and best use. Although some have suggested that a higher tax should be levied on vacant land to encourage development and expand the tax base, there is no justification for it because the current system of assessing vacant land at its highest and best use already provides an incentive for development. In other words, the taxes levied reflect the property value as if it were developed so there is an incentive to develop the land to generate the income to pay the property tax. Moreover, it would be unfair to levy 4 `[�7 a special tax on vacant land since it does not benefit from local services nearly as much as land that is occupied. 8. Assessment freeze The Province of New Brunswick recently announced an assessment freeze for 2018 while the newly proposed provincial assessment agency has a chance to complete a province - wide reassessment. The problem with freezing assessments is not so much the reduction in local tax revenues that may result because municipalities could potentially increase the local tax rate to collect the same amount of revenues. Rather, the more serious problem is the inequities among properties that will result because properties with similar market values will not be paying the same tax. Furthermore, assessment freezes can result in property tax increases for some taxpayers because a reduction in assessment can be more than offset by an increase in the tax rate required to keep revenues the same. Lastly, it is difficult to remove a freeze if it has been there for a long time so it is advisable to remove the freeze as soon as possible. 9. Progressive property tax rates Progressive property tax rates are rates that increase as the value of the assessment base increases. Though not permitted in New Brunswick or the rest of Canada, they are levied in some European jurisdictions. Progressive municipal property tax rates are not a good idea. If one jurisdiction levies progressive rates while another does not, high-income people will leave the progressive tax rate jurisdiction and low-income people will move in. In other words, this type of redistribution through taxes breaks down unless it is carried out at a broader scale. The role of property taxes is to pay for services and not redistribute income. From an administrative point of view, progressive property tax rates are a problem because they are more difficult to understand than a uniform rate and because the division of property taxes into different classes according to their value provides an incentive for taxpayers to appeal their assessments to move to a lower property value class. Concessions to low- income taxpayers are a better way to introduce progressivity into the property tax system. 10. Provincial property taxes Although the property tax is a good tax to fund municipal services that increase the value of property, the case for provincial property taxes is not strong because the province delivers services that have an element of redistribution (such as education and health) which is not an appropriate role for the property tax. Eliminating the provincial property tax in New Brunswick would reduce the pressure on the municipal tax and increase the accountability and transparency in the property tax system because municipalities such as Saint John would be solely responsible for the taxes. Municipalities would also benefit from the increased tax room. Conclusions Overall, there is not much that Saint John can do on its own to improve the fairness and equity of the property tax because property tax policy is largely governed by provincial legislation. The city should not fall prey, however, to some of the bad ideas that are being talked about such as putting an additional tax on vacant land, taxing businesses at an even higher ratio of the residential tax rate than currently, or increasing property tax incentives to attract businesses. The city does have the power to make some modifications such as substituting some user fees for property taxes, e.g. for solid waste collection and disposal. Not only would an increase in user fees allow the city to lower property taxes, it would give people an understanding of what the services they are using actually cost and could result in a reduction in the demand for services. As already noted, the city's higher tax rate compared to neighbouring municipalities reflects, in part, the services it provides to residents in those jurisdictions. The problem of service spillovers in the region cannot be resolved with changes to the property tax but rather requires changes to the governing structure to ensure that all the beneficiaries of local services are taxed to pay for them. The Province should look at gradually getting out of levying property taxes both to improve the transparency and accountability of the property tax and to provide tax room for municipalities. ri 151 Municipal Property Tax Issues in the City of Saint John A report prepared for the City of Saint John Harry Kitchen and Enid Slack August 2017 Harry Kitchen is Professor Emeritus in the Economics Department at Trent University. Over the past thirty years, he has completed more than 100 articles, reports, studies, and books on a range of issues relating to local government expenditures, finance and governance in Canada and abroad. In addition, he has served as a commissioner, advisor, and consultant for a number of municipal and provincial governments in Canada, the federal government in Canada, and has worked on projects in Russia and China. In 2013, he was awarded a Queen's Diamond Jubilee medal for his work with the Federation of Canadian Municipalities. Enid Slack is the Director of the Institute on Municipal Finance and Governance (IMFG) and Adjunct Professor at the Munk School of Global Affairs at the University of Toronto. Enid has worked on municipal finance issues for over 30 years and advises governments and private companies on public finance issues in Canada and abroad. She chaired the Municipal Port Property Tax Fairness Commission in Metro Vancouver in 2010 and was a Commissioner on the Vancouver Property Tax Policy Review Commission in 2007 and again in 2013. In 2012, Enid was awarded the Queen's Diamond Jubilee Medal for her work on cities. `W TABLE OF CONTENTS Executive Summary 1. Introduction 2 Role of Municipal Property Taxes 2.1 General evaluation of the property tax 2.2 Is the property tax fair? 2.3 Is the property tax regressive? 3 Property Taxation in New Brunswick 3.1 Tax base 3.1.1 Three city comparison of tax base per capita over the past five years 3.1.2 Tax base growth in Saint John, 2005 to 2017 3.2 Tax rates 3.3 Comparative importance of assessment and tax revenue, Saint John, 2005, 2010 and 2016 3.4 Comparison of the property tax rate and tax base in Saint John with neighbouring municipalities 3.4.1 The municipal tax rate 3.4.2 The municipal tax base 3.5 Property taxes per capita in selected Canadian cities 3.6 Relationship between property taxation of residential and non-residential properties 4. Inter -provincial comparison of property assessment and taxation 4.1 General Assessment Categories and Tax Rate Structure 4.2 Property Taxes and School Funding 4.3 Assessment Administration 4.4 Frequency of Reassessment 4.5 Limits on the Impact of a Reassessment 4.6 Exemptions 4.7 Payments in Lieu of Taxes 4.8 Treatment of Machinery and Equipment (M&E) 4.9 Treatment of Linear Properties 4.10 Business Occupancy Taxes 4.11 Property Tax Relief Programs 4.12 Property Tax Incentives 5 Specific Issues in Property Taxation 5.1 Should the tax rate be different on residential and non-residential properties? 5.2 Is it fair to exempt some properties from property taxes? 5.2.1 How should hospitals and universities be taxed? 5.3 Should property tax relief be available for low income taxpayers? 5.4 Do property tax rate differentials have an impact on the tax base? `W F. 10 11 13 14 15 16 16 17 18 21 22 23 23 24 27 30 30 31 31 32 32 33 34 34 35 35 35 36 38 38 40 41 42 42 2 5.5 Is there a role for property tax incentives? 5.6 Should municipalities be able to set progressive property tax rates? 5.7 Should there be a special tax on vacant land? 5.8 How should special properties be taxed? 5.8.1 Machinery and equipment 5.8.2 Oil and natural gas refineries 5.8.3 Linear properties 5.8.4 Farmland 5.8.5 Forest land 5.9 Is there a role for provincial property taxes? 5.10 Why is an assessment freeze a bad idea? 6 The role of the property tax in meeting growth objectives and fiscal sustainability 7 Conclusion Appendix Table A-1: Assessment Categories and Municipal Tax Rate Structure Appendix Table A-2: School Property Tax Structure Appendix Table A-3: Frequency of Assessment Appendix Table A-4: Property Assessment and Taxation of Machinery and Equipment Appendix Table A-5: Property Tax and Assessment Treatment of Linear Properties Appendix Table A-6: Provincial Property Tax Relief Schemes Appendix Table B-1: Tax ratios in Municipalities with Two Property Tax Rates, 2015 Appendix Table B-2: Tax ratios for Regina, 2015 Appendix Table B-3: Tax ratios for Prince George, BC, 2015 Appendix Table B-4: Tax Ratios for Three Ontario Municipalities, 2015 — Sarnia, Sault Ste. Marie, Greater Sudbury (Municipal Only) References W1511 43 45 46 47 47 48 50 50 51 52 53 54 56 59 65 67 68 69 71 73 73 73 74 75 3 Executive Summary Saint John faces a declining population, slow growth in its property tax assessment base, and high property tax rates, especially when compared to the municipalities that surround the city. This is the context that has the city wondering if the current property tax is fair and equitable for all taxpayers and whether it has the capacity to support the City's current and future growth objectives. The purpose of this report is to evaluate the fairness and equity of the property tax in Saint John and to suggest changes that could be made in the short run to improve the tax. It also explores whether changes can be made to the property tax to stimulate economic growth and promote fiscal sustainability The report reviews the theoretical and empirical literature on the property tax, focusing on features that are relevant to Saint John. It summarizes the characteristics of the property tax in Saint John and compares them to property taxes in other cities in New Brunswick and across Canada. It raises a number of issues around the property tax and makes some suggestions for what the city can do, as well as what the province can do, to improve its fairness and equity. The report does not discuss and evaluate the assessment system in New Brunswick, which is currently under review, because this is a technical issue beyond the mandate of this study. The Issues Ten issues relating to the property tax in Saint John are addressed in this report: 1. The apropriate relationship between the property tax for different property classes Throughout New Brunswick, the municipal property tax on business properties is legislated to be 1.5 times the tax on residential properties. Although there is no justification for a higher tax on business because business properties use fewer services than residential properties and they are more likely to move in response to a tax increase, the over -taxation of business by municipalities in New Brunswick is much less than in most other Canadian jurisdictions. Indeed, other cities in Canada, such as Vancouver and Toronto, have made a conscious effort in recent years to reduce the property tax on business because it has been much higher than the tax on residential properties. F 2. Property tax differentials across jurisdictions Although there is no general agreement about the importance of property taxes on location decisions, the available evidence suggests that different property tax rates matter for location decisions in neighbouring jurisdictions. For example, the significant difference between property tax rates in the City of Saint John compared to the neighbouring municipalities and Local Service Districts may have an impact on residential and non- residential location decisions. It cannot be concluded that the tax differential, by itself, has had an effect in Saint John, but the city is experiencing slower growth in its tax base compared to its immediate neighbours. At least part of the explanation for the higher tax rate in Saint John is that the city provides services that benefit neighbouring communities. Evidence from other jurisdictions also suggests that people in surrounding areas use services that are paid for urban residents, such as roads, for example. Addressing the problem of service spillovers in the Saint John region where each municipality has its own independent governing structure is not something that can be resolved with changes to the property tax. Indeed, this issue was identified in the Finn Report where he recommended the creation of regional service districts and the amalgamation of municipalities. The creation of larger municipalities or two-tier districts, for example, could result in all of the beneficiaries of local services paying their share of the cost of services. 3. Property tax incentives Cities everywhere want to attract businesses and are often keen on offering property tax incentives on the grounds that businesses provide benefits to the community that exceed the municipal costs for services and potential environmental degradation. When incentives succeed in attracting new businesses to the city, they can result in increased employment and income, a larger property tax base, and the revitalization of depressed areas. Property tax incentives have had a poor record in promoting economic development, however. They are often wasted on firms that would have located there anyway and they are unfair because new businesses benefit from lower taxes at the expense of existing 5 `&V residents and businesses. Tax incentives can lead to unfair competition among businesses and result in a situation where no major investment occurs without them. Tax incentives might be effective for the first jurisdiction that implements them but once they proliferate across many jurisdictions, they lose their effectiveness to promote economic growth. It might be preferable to invest in services and infrastructure which will also attract new businesses and, at the same time, provide benefits to existing residents and businesses. 4. Taxation of special properties Special or unique properties include, for example, oil and gas refineries, linear properties (railway lines, pipelines), farmland, and forests. For the City of Saint John, property tax revenues from oil and gas refineries are a major issue in part because machinery and equipment (M&E) is not taxed in New Brunswick. M&E is not taxed in Ontario either but is taxed in Newfoundland and Labrador, Quebec, Saskatchewan, Alberta, and British Columbia. Although this exemption can be justified on the grounds that it encourages manufacturing and processing and expands economic activity, it provides an incentive to alter production so as to minimize property taxes. Including M&E in the property tax base, on the other hand, will result in fairer property tax treatment of all manufacturing and processing plants. If there are concerns about the impact of including M&E in the tax base on economic activity or the over -taxation of business properties more generally, a preferred approach would be to include it in the tax base but lower the tax rate on all non- residential properties. 5. Exemptions for some properties Property tax exemptions are unfair because exempt properties use municipal services similar to other properties and exemptions narrow the tax base thereby necessitating higher taxes on non-exempt properties or a reduction in services. Differential tax treatment of similar properties is likely to affect location decisions, choices about what activities to undertake, and other economic decisions. If there is a sound public policy reason for an exemption, it should be made explicit and, at the very least, exempt properties should be assessed on the same basis as non-exempt properties so the foregone tax revenue can be R `RYA made explicit. If there is no public policy rationale for the exemption, it should be terminated. In the case of Saint John, federal properties are tax exempt but payments in lieu of property taxes are made by the federal government which are pretty close to what the property taxes would be. Hospitals and universities pay property taxes to the city but only at the residential rate. There are also commercial components to these properties (e.g. food courts, gift shops, etc.), however, which should be assessed and taxed at the higher commercial tax rate to place them on a level playing field with similar non -institutional properties. 6. Concessions for some taxpayers Although it is generally true that richer people live in more expensive houses, property taxes can be a problem for some taxpayers. In particular, taxpayers who are asset rich and income poor, such as seniors on a fixed income, face a cash flow problem. It is important to protect low-income taxpayers from property taxes that create an excessive burden. A number of programs are used across North America to address this problem, such as tax deferral schemes for the elderly and property tax credits against income for income tax purposes (also known as circuit breakers). In New Brunswick, for example, there is already a provincial property tax deferral scheme for seniors as well as grants that are credited against property taxes on the principal residence of low income owner -occupied homeowners. 7. Special tax on vacant land Current practice in New Brunswick is to assess vacant land at its market value — the value in its highest and best use. Although some have suggested that a higher tax should be levied on vacant land to encourage development and expand the tax base, there is no justification for it because the current system of assessing vacant land at its highest and best use already provides an incentive for development. In other words, the taxes levied reflect the property value as if it were developed so there is an incentive to develop the land to generate the income to pay the property tax. Moreover, it would be unfair to levy a 7 `P1.11 special tax on vacant land since it does not benefit from local services nearly as much as land that is occupied. 8. Assessment freeze The Province of New Brunswick recently announced an assessment freeze for 2018 while the newly proposed provincial assessment agency has a chance to complete a province - wide reassessment. The problem with freezing assessments is not so much the reduction in local tax revenues that may result because municipalities could potentially increase the local tax rate to collect the same amount of revenues. Rather, the more serious problem is the inequities among properties that will result because properties with similar market values will not be paying the same tax. Furthermore, assessment freezes can result in property tax increases for some taxpayers because a reduction in assessment can be more than offset by an increase in the tax rate required to keep revenues the same. Lastly, it is difficult to remove a freeze if it has been there for a long time so it is advisable to remove the freeze as soon as possible. 9. Progressive property tax rates Progressive property tax rates are rates that increase as the value of the assessment base increases. Though not permitted in New Brunswick or the rest of Canada, they are levied in some European jurisdictions. Progressive municipal property tax rates are not a good idea. If one jurisdiction levies progressive rates while another does not, high-income people will leave the progressive tax rate jurisdiction and low-income people will move in. In other words, this type of redistribution through taxes breaks down unless it is carried out at a broader scale. The role of property taxes is to pay for services and not redistribute income. From an administrative point of view, progressive property tax rates are a problem because they are more difficult to understand than a uniform rate and because the division of property taxes into different classes according to their value provides an incentive for taxpayers to appeal their assessments to move to a lower property value class. Concessions to low-income taxpayers are a better way to introduce progressivity into the property tax system. `U10.1 10. Provincial property taxes Although the property tax is a good tax to fund municipal services that increase the value of property, the case for provincial property taxes is not strong because the province delivers services that have an element of redistribution (such as education and health) which is not an appropriate role for the property tax. Eliminating the provincial property tax in New Brunswick would reduce the pressure on the municipal tax and increase the accountability and transparency in the property tax system because municipalities such as Saint John would be solely responsible for the taxes. Municipalities would also benefit from the increased tax room. Conclusions Overall, there is not much that Saint John can do on its own to improve the fairness and equity of the property tax because property tax policy is largely governed by provincial legislation. The city should not fall prey, however, to some of the bad ideas that are being talked about such as putting an additional tax on vacant land, taxing businesses at an even higher ratio of the residential tax rate than currently, or increasing property tax incentives to attract businesses. The city does have the power to make some modifications such as substituting some user fees for property taxes, e.g. for solid waste collection and disposal. Not only would an increase in user fees allow the city to lower property taxes, it would give people an understanding of what the services they are using actually cost and could result in a reduction in the demand for services. As already noted, the city's higher tax rate compared to neighbouring municipalities reflects, in part, the services it provides to residents in those jurisdictions. The problem of service spillovers in the region cannot be resolved with changes to the property tax but rather requires changes to the governing structure to ensure that all the beneficiaries of local services are taxed to pay for them. The Province should look at gradually getting out of levying property taxes both to improve the transparency and accountability of the property tax and to provide tax room for municipalities. E 10 I . Introduction A recent decline in population, combined with slower growth in the property tax assessment base and a reduction in assessment of Canaport's LNG property, has raised concerns about how well the property tax system is working in Saint John. At the same time, the municipalities which surround the city are experiencing growth in their assessment base and enjoy lower tax rates than the city. Is the current property tax 'fair and equitable" for all taxpayers? Does it have the capacity to support the City's current and future growth objectives? Are there short term changes or refinements that would improve its fairness while, at the same time, ensuring fiscal sustainability and the capacity of the City to attract and retain people, businesses and investment? The purpose of this report is to evaluate the fairness and equity of the property tax in Saint John and to suggest changes that can be made in the short run to improve the tax. It also explores whether anything can be done with the property tax to stimulate economic growth and promote fiscal sustainability. The report reviews the literature on property taxation around the world with a particular emphasis on features that are relevant to Saint John; summarizes the characteristics and trends in the property tax in Saint John and compares them to property taxes in other cities in New Brunswick, as well as cities across Canada; and makes some suggestions for what the city and the province could do to improve the fairness and equity of the property tax as well as ensure fiscal sustainability and promote economic growth. The report does not discuss the assessment system in New Brunswick, which is currently under review, because assessment is a technical issue and beyond the scope of this report. The report is organized in seven parts plus two appendices. Following this introduction, part two highlights a few issues around the role of property taxes in general. Part three reviews recent trends in the tax base and tax rate in Saint John, and provides some comparative data on other municipalities in New Brunswick and Canada. Part four highlights a number of salient features of property assessment and property tax systems across Canada. Part five discusses and evaluates ten property tax issues that are relevant to Saint John and the province. Part six provides a general overview of the role of property taxes in meeting growth objectives and ensuring fiscal sustainability. Part seven concludes the report. 11 i"M As will be seen from the following discussion, many questions posed in this report are difficult to answer: in fact, for many issues faced by the city, the answer may not lie in municipal changes to the property tax. Some of the issues will have to be addressed by the provincial government through changes in legislation; others will need to rely on other policies, for example to attract new people and business to the city. Nevertheless, some suggestions are made in this report to improve the fairness and equity of the property tax. 2 Role of Municipal Property Taxes As a starting point, it is important to understand the role of property taxes in financing municipal services. The benefit model of local public finance suggests that, for the public sector to operate efficiently, it is important to establish a clear link between expenditure and revenue decisions -- those who make decisions about expenditures should be the same as those who make the decisions about how to pay for them.i Moreover, funding sources should relate to the characteristics of the services being provided. With that in mind, Figure 1 illustrates the funding tools that are appropriate for different services.2 For those services with "private good" characteristics (such as water, sewers, garbage collection and disposal, transit, and most recreation) where individual beneficiaries can be identified, user fees are efficient and fair. In general, user fees should be adopted wherever there is a clear link between the fee and the benefit received. Appropriately designed user fees allow residents and businesses to know how much they are paying for the services they receive from local governments and to make decisions about how much to consume. At the same time, user fees allow governments to make efficient decisions about how much to provide. When users do not pay for a service or do not pay its full cost, they consume more than they would otherwise. The resulting demand sends a signal that more of the underpriced service should be provided leading to more expensive infrastructure investment than is economically efficient or justified. This link is what one author refers to as the Wicksellian connection (Breton 1996). For more on the Wicksellian connection in financing local public services, see Bird and Slack (2014), Slack and Bird (2015), and Kitchen and Slack (2016). z This categorization first appeared in Slack (2009). 12 `W Figure 1: Different Financing Tools for Different Services Private Public Redistributive Spillovers Water Police Social assistance Roads/transit Sewers Fire Social housing Culture Garbage Local parks Social assistance Transit Streetlights User Fees Property Tax Income Tax Transfers Sales Tax A question that often arises around user fees is "what percentage of costs should municipalities recover through user fees?" The answer depends on the nature of the service.3 For water and sewers, for example, efficiently set user fees should recover all costs; indeed full cost recovery is now legislated in Ontario (Fenn and Kitchen, 2016). For solid waste collection and disposal, user fees (bag tags, for example) have replaced property taxes as a means of financing operating and capital costs in a growing number of Canadian municipalities (Kitchen and Tassonyi, 2012). For public transit, by comparison, transit fares should not cover all costs because automobile users do not cover all their road operating and environmental costs (Kitchen and Lindsey, 2013). The use of user fees for recreational services depends on the nature of the program or the users of the facility. Beer league hockey players or oldtimer slow -pitch participants, for example, should cover all costs. For youth programs where part of the benefit is keeping them out of trouble, thus reducing potential social and criminal costs, user fees may appropriately and efficiently be set to cover only a portion of the costs. Thus, the percentage of the costs that should be covered by user fees depends on the nature of the service and the people who use it. If the service benefits only those who use it, all costs should be covered; if use of a service by one individual or group generates externalities (spillovers) or benefits for others, user fees should only cover a portion of the costs. This portion will depend on local circumstances.4 s There is an extensive literature on user fees and they have been examined in detail in a number of places - see Bird and Slack, forthcoming 2017, for example. 4 Equity concerns arising from user fees can be addressed either by targeting lower-income individuals with existing provincial income -transfer programs or by lowering or waiving fees for low-income users. 13 fi[:�1 Services with "public good" characteristics (for example, police and fire protection, neighbourhood parks, local streets, and street lighting) generate collective benefits that are enjoyed by all local residents. Benefits from these services cannot be assigned to individual beneficiaries and therefore, specific charges cannot be levied. Here, the property tax is an appropriate funding source. Services that redistribute income should be funded from income tax revenues because it is the most progressive tax available. For cities, these services may include social assistance and social housing. For some services or facilities provided locally, benefits (or costs) may spill over municipal boundaries. Positive spillovers (externalities) occur if residents of neighbouring jurisdictions receive a service for free or at less than the cost of its provision. For example, roads constructed in one jurisdiction may be used by residents of another jurisdiction without any charge to the latter. Recreational facilities (baseball diamonds, soccer fields, neighbourhood parks, for example) are often provided in a hub community and used by residents of neighbouring communities. There are two issues here — fairness and efficiency. In terms of fairness, users from outside the providing community are underpaying and users who live inside are overpaying. In terms of efficiency, the providing municipality does not charge users from other municipalities and may base its expenditure decision on the benefits captured within its jurisdiction alone, thus leading to an under -allocation of resources to this service. One way to provide an incentive to the municipality to allocate more resources to the service generating the externality is a transfer from the provincial government. Another way to internalize spillovers would be to provide the service at an area -wide or region -wide level .5 2.1 General evaluation of the property tax For decades now, the literature has identified a number of criteria that a fiscally sound local tax should meet. These criteria are summarized in Box A. 5 See part 6 for a more detailed discussion of how to address spillovers through structural changes. 14 `M BOX A: urlterla for Evaluatlne a Local Tax The literature identifies a good local tax as having the following characteristics: • Fairness: the tax is perceived to be fair in terms the benefits they receive from local public services; • Immobile tax base: the tax is levied on a base that is immobile -- if the tax base can't move, the tax will be borne by local residents and not passed on to people living in other jurisdictions; • Sufficient, stable and predictable revenues: the tax generates sufficient, stable and predictable revenues for local governments; • Visible, transparent, and accountable: the tax is visible and transparent to taxpayers so that governments can be held accountable; • Ease of administration: the tax is easy to administer locally. Source: Bird and Slack (2004) The property tax stacks up very well against these criteria. The property tax base is largely immobile — the residential portion of the tax cannot be exported to taxpayers in other jurisdictions — and therefore, is relatively neutral or efficient because distortions in economic behaviour are minimized .6 It is largely effective in funding services for which the collective benefits accrue to the local community; hence, it satisfies the fairness criterion based on benefits received. Revenues are relatively stable and predictable. It is highly visible, so it makes local governments accountable for the tax levied. This visibility makes it a politically contentious tax and one that is difficult to increase or reform. As such, the property tax may have difficulty generating sufficient revenue to fund the complex and increasing demands that local governments face. In that case, municipalities should turn to an increasing reliance on user fees and accessing new local taxes (Kitchen and Slack, 2016). Two criticisms frequently directed at the residential property tax, however, are that it is unfair and regressive. The validity of each of these assertions is addressed next. 2.2 Is the property tax fair? Discussions of fairness or equity (in reality, both mean the same thing) have been the subject of debate for decades. In general, fairness may be measured in one of two ways; first, on the basis of benefits received from the public services that are available and second, on the basis of a 6 The same is not true of the non-residential property tax, however, which can be exported to other jurisdictions. For a discussion of the economic impact of non-residential property taxes in Ontario, see Smart (2012). 15 taxpayer's ability to pay taxes. Each produces a different result - what does each mean and when should each be used? The benefits received concept for fairness in taxation is based on the principle that one should pay for the public services that one uses. In other words, property taxation should be viewed as a benefits -based tax as long as it is used to fund those services that provide collective benefits to the local community. Ability to pay, by comparison, argues that one's tax liability should be based on one's ability to pay taxes as measured by taxable income.7 The larger (lower) is one's taxable income, the greater (lower) is one's ability to pay taxes. Ability to pay is the basis for the personal income tax system in Canada and, indeed, in many other countries. Fairness or equity based on ability to pay has two components: horizontal equity and vertical equity. Horizontal equity is achieved when all individuals with the same ability to pay incur the same tax liability; for example, each taxpayer with $50,000 in taxable income (gross income minus deductions) pays the same amount in taxes. Vertical equity is achieved when those with greater ability to pay (a higher level of taxable income) face a proportionately higher tax liability compared to those with less ability to pay, although the literature on what the differential should be is never clearly defined. Given that the index for measuring fairness according to ability to pay is taxable personal income and given that municipalities do not have access to an income tax, income is not an appropriate base for measuring fairness or equity in funding municipal services. 2.3 Is the property tax regressive? As noted in the previous section, the property tax is fair as long as it funds services that provide collective benefits to the local community. A common criticism, however, is that the property tax is regressive; that is, it takes a higher percentage of a poor person's or poor family's income when compared with the income of a rich person or a rich family. The same argument, by the way, could be made about any tax that is not based on income. For example, sales taxes are based on spending and not on income. As such, a person who earns $30,000 per year with taxable expenditures of $10,000 will pay the same amount of sales tax as a person who earns $50,000 a In some countries where there is a wealth tax (a tax on inheritance or estates), the base may be broadened to include both income and wealth. 16 `ff- A year with $10,000 of taxable expenditures. If one calculates this tax as a percent of each person's income, the tax is regressive. It cannot be any other way. The same can be said for a tax on gasoline and diesel fuel, beer and alcoholic beverages, and theatre tickets, and so on. The issue of regressivity is important but it should not be an argument against the property tax. Furthermore, it can be handled, as it is at the moment in New Brunswick, through the provincial property tax relief program where grants may be credited against property taxes on the principal residence of low income owner -occupied homeowners. There is also a provincial property tax deferral program for eligible seniors who may defer the annual increase in the property tax on their principal residence (see Appendix Table A-6). 3. Property Taxation in New Brunswick The property tax system consists of two components: the tax base and the tax rate 3.1 Tax base New Brunswick's real property assessment base is broadly defined to cover "land and buildings, including machinery, installation and equipment for providing services to the buildings" (Chapter A-14 of the Assessment Act). Properties are assessed at market value on an annual basis. For assessment purposes, property is classified as residential or non-residential (business properties). Residential property is further classified as owner -occupied (homeowners) or non -owner occupied (rental properties, cottages, and so on). All properties are assessed at market value with responsibility for assessment resting with Service New Brunswick - a provincial assessment authority. The Province recently announced that a new independent assessment authority would be created to handle all future assessments (details are being worked out). Three principal methods are used to value property: market (or sales) method, income method, and cost method. The market approach determines property values based on the sale price of comparable properties. For properties where there are similar or comparable properties and recorded sales, property assessments are generally based on observed market transactions with adjustments to reflect differences (location, size, condition, etc.) between the subject property and the observed sales. The market method is generally used for residential properties. 17 Where there is a scarcity of observed sales, provincial assessors may use the income method or replacement cost (with depreciation) to establish assessed values. The income method determines property values based on the earning power of an income producing property. This method is applied to business properties, apartments, and some light industry. The cost approach to assessing property value is based on a standardized estimate of construction costs. This method is used for properties that do not trade in the market. Special provisions apply to the assessment of farmlands, farm woodlots, freehold timberland, golf courses, charitable and not-for-profit organizations, and horse racing parks — they are assessed at value in current use. Farm properties in excess of five hectares are assessed at their value as farmland (i.e. current use); farm buildings and up to five hectares of land are assessed at market value. Freehold timberland is assessed at $100 per hectare. 3.1.1 Three city comparison of tax base per capita over the past five years It makes sense to compare the tax base in Saint John with the tax base of cities of similar population -- Fredericton and Moncton -- rather than with smaller municipalities in New Brunswick. Table 1 lists the proportion of the assessment base that is made up of residential and non-residential properties for these three cities for the last five years. The percentage of assessment that is residential is lower in Saint John (70 percent) than in the other two cities and, on the flip side, the percentage that is non-residential is higher (close to 30 percent). These percentages have been fairly stable over the five-year period in all three cities. Table 2 records the municipal tax base per capita for these three cities for the same years. The per capita tax base is considerably lower in Saint John than in the other cities and it has been for the past five years. At the same time, the tax base in Saint John has only grown by 2.1 percent over this five-year period whereas Fredericton and Moncton, by comparison, experienced growth rates of 9.9 percent and 15.6 percent, respectively. For 2017, the tax base per capita in Saint John is almost $29,000 per capita lower than Fredericton and more than $20,000 lower than Moncton. `Me] Table 1: Percent of total assessment that is residential and non-residential in three cities in New Brunswick, 2013 to 2017 Table 2: Municipal Tax Base Per Capita in Three New Brunswick Cities, 2013 to 2017 2013 2014 2015 2016 2017 City Res. Non -res. Res. Non -res. Res. Non -res. Res. Non -res. Res. Non -res. 2013 to 2017 Saint John 70.0 30.0 70.7 29.3 70.6 29.4 70.4 29.6 70.4 29.6 Fredericton 79.1 20.9 80.0 20.0 79.6 20.4 79.3 20.7 79.4 20.6 Moncton 74.9 25.1 74.7 25.3 74.3 25.7 74.1 25.9 74.3 25.7 Res. is the percentage of the total assessment base attributed to the residential sector. Non -res. is the percent of the total assessment base attributed to the non-residential sector. Source: Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick. Table 2: Municipal Tax Base Per Capita in Three New Brunswick Cities, 2013 to 2017 3.1.2 Tax base growth in Saint John, 2005 to 2017 This section examines the growth rate in the total property tax base, rather than per capita tax base, and it considers a longer time period, from 2005 to 2017, for Saint John alone. Table 3 lists the annual percentage increase in the residential property tax base (column 2), non-residential property tax base (column 3), and the total of both sectors (column 4). From 2005 to 2010, Saint John experienced an impressive growth in its assessment base. From 2011 to 2013, the growth rate slowed down somewhat, primarily because of the recession and 19 2013 2014 2015 2016 2017 Per capita Per capita Per capita Per capita Per capita %age growth from 2013 to 2017 Saint John 94,669 94,150 94,648 96,093 96,666 2.1 Fredericton 114,074 118,471 121,598 123,631 125,345 9.9 Moncton 101,263 106,310 110,932 112,824 117,014 15.6 Source: Calculated from tax and population data in the Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick. 3.1.2 Tax base growth in Saint John, 2005 to 2017 This section examines the growth rate in the total property tax base, rather than per capita tax base, and it considers a longer time period, from 2005 to 2017, for Saint John alone. Table 3 lists the annual percentage increase in the residential property tax base (column 2), non-residential property tax base (column 3), and the total of both sectors (column 4). From 2005 to 2010, Saint John experienced an impressive growth in its assessment base. From 2011 to 2013, the growth rate slowed down somewhat, primarily because of the recession and 19 because residential assessment increases were capped at three percent for 2011 and 2012. From 2014 to 2017, the rate of growth dropped dramatically for both the residential and non-residential sectors. For 2014, in particular, much of the decrease was attributed to a reassessment (lowering the value) of pulp mills (non-residential properties) but much of the remainder may be attributed to a slowdown in the overall growth in economic activity and a higher growth rate in the tax base in neighbouring municipalities. This decline has put considerable pressure on the property tax base to fund municipal services. Table 3: Percentage increase in tax base in Saint John, 2005-2017 Year (1) Residential (2) Non-residential (3) Total (4) 2005 6.15 4.61 5.52 2006 6.47 4.70 5.69 2007 5.32 4.76 5.12 2008 8.39 6.41 7.57 2009 11.07 6.85 9.08 2010 8.46 3.06 6.42 2011 5.12 2.24 4.01 2012 4.94 5.75 5.23 2013 3.21 3.48 3.26 2014 0.70 -2.49 -0.48 2015 0.29 0.90 0.56 2016 1.19 2.06 1.53 2017 0.73 0.39 0.59 Source: Calculated from data in the Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick. 20 171 Figure 1 illustrates the downturn in the yearly growth rate in the tax base in Saint John since 2009. ,,,,iii mire 1: Yearly Growth elate iiiin the ,,,rBase iiiin Safint Johin .10.00 4.00 / 6.00 0 4.00 IN j O 2.00 O 0.00 O O o 0 200.1 2002 2003 2004 2005 2006 2007 2008 2009 20.10 20.11. 20.12 20.13 20.14 20.15 20.16 20.17 2.00 Year Figure 2 compares the annual growth rate in the tax base for Fredericton (first column in the bar chart for each year), Moncton (the second column), and Saint John (the third column). Over the past seven years, the annual increase in the tax base in Saint John has trailed the other two cities. h air ° Compariison ofnnualaI Growth Kaes iiia the Fax Base iiia it iriicton, Moncton, and Sairrt John MW 4.00 004 2005 2006 2007 2008 2009 2 01. 0 20.11. 20.12 20.13 20.14 20.15 20.16 20.17 I= IIIIIIIIII Frederlc'Lon 11111111111 VV onc'Lon 10 SrainL .loon 21 6.00 0 R.. kuJ QJ kuJ 4.00 0 0 QJ 2.00 f..'.h... p 0 0.00 ... 200.1 2002 2003 s 004 2005 2006 2007 2008 2009 2 01. 0 20.11. 20.12 20.13 20.14 20.15 20.16 20.17 I= IIIIIIIIII Frederlc'Lon 11111111111 VV onc'Lon 10 SrainL .loon 21 3.2 Tax rates Two property taxes are levied on the assessment base in New Brunswick - one is a provincially set tax rate and the other is a locally set tax rate. Provincial regulations stipulate that the local tax rate on non-residential property must be 1.5 times the rate on residential property. This requirement no longer exists for the provincial property tax rate, however. Table 4 reports provincial and local property tax rates for three cities for the last five years. The provincial rate has not changed over this period, nor has the local rate in Saint John and Fredericton. Moncton's rate increased slightly in 2016. Saint John's tax rate exceeded the rate in the other two cities in every year; it was more than 25 percent higher than the rate in Fredericton and more than 8 percent higher than the rate in Moncton. Table 4: Residential and non-residential property tax rates, 2013 to 2017 Owner -occupied residential properties within cities, towns, and villages receive a full credit on the provincial tax rate. These properties include a single-family residence, a duplex, a triplex or an apartment building. In the case of a duplex, triplex or apartment building, only the portion of the property maintained as the owner's principal residence and up to 0.5 hectares of land is eligible for the credit. An additional tax of $0.0194 per $100 is imposed on all taxpayers to pay for assessment costs. As well, there is a residential tenancy fee of 0.0486 cents per $100 of assessed value on rented 22 `IFW 2013 2014 2015 2016 2017 Res $ Non Res $ Res $ Non Res $ Res $ Non Res $ Res $ Non Res $ Res $ Non Res $ Prov. rate 1.3973 2.1035 1.3373 2.021 1.2773 2.1860 1.1233 2.1860 1.1233 2.1860 Local Tax Rates Saint John Fredericton Moncton 1.7850 1.4211 1.6393 2.6775 2.1317 2.4590 1.7850 1.4211 1.6393 2.6775 2.1317 2.4590 1.7850 1.4211 1.6393 2.6775 2.1317 2.4590 1.7850 1.4211 1.6497 2.6775 2.1317 2.4746 1.7850 1.4211 1.6497 2.6775 2.1317 2.4746 The local transcribed taxes are inside the city. Some cities have outside rates as well. Source: Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick. Owner -occupied residential properties within cities, towns, and villages receive a full credit on the provincial tax rate. These properties include a single-family residence, a duplex, a triplex or an apartment building. In the case of a duplex, triplex or apartment building, only the portion of the property maintained as the owner's principal residence and up to 0.5 hectares of land is eligible for the credit. An additional tax of $0.0194 per $100 is imposed on all taxpayers to pay for assessment costs. As well, there is a residential tenancy fee of 0.0486 cents per $100 of assessed value on rented 22 `IFW properties classified as residential that do not receive the residential tax credit or that are not exempt from the levy under the Residential Tenancies Act. Section 87(4) of the Municipalities Act permits municipalities to use area rates where services differ by area of the municipality. Cities are permitted to levy a business improvement area tax (BIA) on non-residential properties, and many do, at a rate determined locally but the rate cannot exceed $0.20 per $100 of assessed value. Saint John currently has a BIA rate of $0.16. Area rates are not permitted for different levels of a specific service such as snow ploughing or frequency of garbage pickups, however. 3.3 Comparative importance of assessment and tax revenue, Saint John, 2005, 2010 and 2016 Table 5 compares the assessment and tax revenue for each of seven property types for 2005, 2010 and 2016 for Saint John. The more salient features are: • Residential assessment accounted for slightly more than 51% of total assessment in 2010 and 2016 (columns 3 and 4), up from around 49% in 2005 (column 2). Residential property taxes accounted for 40% of municipal property taxes (columns 6 and 7) in the latter two years, an increase from 36% in 2005 (column 5). • Commercial assessment and property taxes accounted for roughly the same proportion in each year although the percentage of assessment was significantly lower than the percentage of tax revenue, a consequence of the higher tax rate on commercial properties compared to residential properties. • Industrial assessment accounted for about 16.5% of all assessment in 2005, 18.1% in 2010 and 16.2% in 2016. Property taxes on these properties have exhibited the greatest change in relative importance over the three years falling from 26.6% of all property taxes in 2005 to 20.7% in 2016. • Institutional assessment accounted for a higher percentage of all assessment in 2005 and 2016, but a lower percentage in 2010. When compared with commercial assessment, it accounted for a higher percentage in each year. Property taxes from institutional property, on the other hand, were considerably less important in terms of revenue compared to industrial and commercial property taxes. • The other property types showed little change in relative importance over the three years. 23 ` E"I Table 5: Relative Importance of Property Assessment and Taxes for Saint John, 2005, 2010 and 2016 Assessment Percent of Current Assessment Percent of Property Taxes Category 2005 2010 2016 2005 2010 2016 (1) (2) (3) (4) (5) (6) (7) Residential 49.11 51.62 51.36 35.94 40.41 39.94 Commercial 14.34 13.31 13.58 23.84 23.65 24.84 Industrial 16.46 18.11 16.17 26.62 23.55 20.69 Institutional 18.73 15.90 17.41 13.05 11.94 13.86 Recreational 1.29 1.01 1.36 0.48 0.38 0.65 Farms 0.04 0.03 0.02 0.04 0.03 0.02 Woodland 0.03 0.03 0.00 0.04 0.04 0.00 Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: From data provided by Saint John 3.4 Comparison of the property tax rate and tax base in Saint John with neighbouring municipalities This discussion is separated into two parts - a comparison of municipal tax rates and a comparison of the tax base over the past five years for Saint John, Quispamsis, Rothesay, Hampton, and Grand Bay/Westfield. 3.4.1 The municipal tax rate Table 6 shows the municipal residential property tax rate for Saint John and its four neighbouring municipalities for the last five years. It shows clearly that the tax rate in Saint John is considerably higher than in all of the other municipalities -- about 40% higher than in Quispamsis in 2017; about 47% higher than Rothesay; almost 42% higher than Hampton; and 30% higher than Grand Bay/Westfield (see Table 7). In addition, all of these municipalities have higher tax rates than the nearby Local Service Districts (LSDs). MAN 24 Table 6: Municipal Property Tax Rate on Residential Property Table 7: Percentage by which the residential property tax rate in Saint John exceeded the residential tax in neighbouring municipalities Saint John Quispamsis Rothesay Hampton Grand Bay/ 46.3 50.0 42.8 30.3 2014 Westfield 2013 1.785 1.22 1.19 1.25 1.37 2014 1.785 1.24 1.19 1.25 1.37 2015 1.785 1.25 1.20 1.25 1.37 2016 1.785 1.27 1.21 1.25 1.37 2017 1.785 1.28 1.22 1.26 1.37 The non-residential property tax rate in each municipality is 1.5 times the residential rate. Source: Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick. Table 7: Percentage by which the residential property tax rate in Saint John exceeded the residential tax in neighbouring municipalities 3.4.2 The municipal tax base Table 8 records the percent of the tax base that is made up of residential and non-residential assessment in each municipality. In Saint John, 61 percent of the tax base is residential and 39 percent is non-residential. In Rothesay and Hampton, approximately 90 percent is residential and 10 percent non-residential. In Quispamsis and Grand Bay/Westfield, 94 to 96 percent of the tax base is residential. Table 9 lists the percentage change in both the residential tax base and the non-residential tax base from 2013 to 2017 for each municipality. Panel A records the annual percentage change and panel B lists the total percentage change from 2013 to 2017. The residential assessment base increased in each year in every municipality although the rate of increase varied from very high to very low; indeed, it was less than one percent in some years. The change in the non - residential growth rate 25 Quispamsis Rothesay Hampton Grand Bay/ Westfield 2013 46.3 50.0 42.8 30.3 2014 44.1 50.0 42.8 30.3 2015 43.0 48.8 42.8 30.3 2016 40.6 47.5 42.8 30.3 2017 39.5 46.3 41.7 30.3 Source: Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick. 3.4.2 The municipal tax base Table 8 records the percent of the tax base that is made up of residential and non-residential assessment in each municipality. In Saint John, 61 percent of the tax base is residential and 39 percent is non-residential. In Rothesay and Hampton, approximately 90 percent is residential and 10 percent non-residential. In Quispamsis and Grand Bay/Westfield, 94 to 96 percent of the tax base is residential. Table 9 lists the percentage change in both the residential tax base and the non-residential tax base from 2013 to 2017 for each municipality. Panel A records the annual percentage change and panel B lists the total percentage change from 2013 to 2017. The residential assessment base increased in each year in every municipality although the rate of increase varied from very high to very low; indeed, it was less than one percent in some years. The change in the non - residential growth rate 25 varied much more dramatically, ranging from comparatively large increases to modest decreases (as indicated by a negative sign). Table 8: Percentage of the tax base made up of residential and non-residential assessment Year Saint John Quispamsis Rothesay Rothesay Grand Bay/ Hampton Grand Bay/ Westfield Panel A: Annual percentage change Res. Non -res Res. Non -res Westfield Non -res Res. Res. Non -res Res. Non -res Res. Non -res Res. Non -res Res. Non -res 2013 3.2 3.5 2.7 10.7 1.1 4.2 6.6 13.6 5.5 2013 60.9 39.1 94.0 0.4 6.0 91.1 4.5 8.9 90.0 10.0 96.2 2015 3.8 2014 61.6 38.4 93.9 3.1 6.1 90.8 2.1 9.2 89.8 10.2 96.1 1.4 3.9 2015 61.5 38.5 93.9 0.9 6.1 90.7 0.7 9.3 89.6 10.4 96.0 -0.2 4.0 2016 61.3 38.7 94.0 2013 to 6.0 90.8 % 9.2 89.8 10.2 96.0 % 4.0 2017 61.4 38.6 93.9 7.64 6.1 91.0 7.85 9.0 1 89.9 10.1 96.2 Source: Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick 3.8 Source: Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick The overall growth (from 2013 to 2017) in each component of the tax base is reported in panel B of Table 9 where it is noted that the growth in Saint John trailed the other municipalities by a considerable amount. Specifically, the five-year growth rate in the residential tax base was slightly less than three percent (2.94 percent). By comparison, the residential tax base grew by 7.64 percent in Quispamsis; 6.11 percent in Rothesay; 5.27 percent in Hampton; and 5.11 percent in Grand Bay/Westfield. Table 9: Percentage change in the residential and non-residential tax base Year Saint John Quispamsis Rothesay Hampton Grand Bay/ Westfield Panel A: Annual percentage change Res. Non -res Res. Non -res Res. Non -res Res. Non -res Res. Non -res 2013 3.2 3.5 2.7 10.7 1.1 4.2 6.6 13.6 5.5 2.3 2014 0.7 -2.5 0.4 1.8 0.9 4.5 1.9 3.0 2.2 7.0 2015 0.3 0.9 3.5 4.3 2.4 3.1 2.0 4.8 2.1 4.1 2016 1.2 2.1 1.4 0.6 0.9 0.2 0.2 -2.1 0.9 0.2 2017 0.7 0.4 2.1 3.7 1.8 -0.2 1.1 0.5 -0.1 -5.4 Panel B: Total percentage change from 2013 to 2017 2013 to % % % % % % % % % % 2107 2.94 0.81 7.64 10.78 6.11 7.85 5.27 6.24 5.11 5.51 Source: Annual Report of Municipal Statistics, Environment and Local Government, New Brunswick 26 ` FAM The overall growth rate in the non-residential tax base showed much greater variation. For example, in Saint John, it was less than one percent (0.81 percent); in Quispamsis, it was 10.78 percent; in Rothesay, it was 7.85 percent; in Hampton, it was 6.24 percent; and in Grand Bay/Westfield, it was 5.51 percent. Figure 3 illustrates the annual change in the total tax base (residential plus non-residential) in Saint John (last column in the bar chart for each year), Quispamsis (first column), Rothesay (second column), Hampton (third column), and Grand Bay/Westfield (fourth column). Of these five municipalities, Saint John had the lowest growth rate in 2014 (actually showing a decrease) and 2015 and the second lowest growth rate in 2017. Rgure Innuala I Percentage Change iiia ...FotaII Fax Base -from 2013 to 2017 8.0 7.0 C) k'uJ 6.0 CCS X" 5.0 cu kuJ 4.0 QJ 3.0 cu K�... 2.0 a 1.0 20.13 2 0.1gid ......... 20.15 20.16 20.17 ...I.0 IIIII QG.uisp arnsis 11111111111 V offiessay 11111 H arr7p Lon 11111111111 Grand Bay/Wdes�ffield IIIII SrainL .loon For the entire five-year period (Figure 4), the total tax base (residential plus non-residential) in Saint John grew by only 2.11 percent, well below the other municipalities. By comparison, the tax base in Quispamsis grew by 7.83 percent; in Rothesay, by 6.27 percent; in Hampton, by 5.37 percent; and in Grand Bay/Westfield, by 5.12 percent. For all of these municipalities combined, the total regional growth in the tax base was 3.7 percent from 2013 to 2017. 27 Rg u r ° I irc ire -t by wNdh -t lh -to-tall it a rfl d pa ll -tax base grew 'from 2013 -to 2017 Sraint.John 2.11 Grand Bay/Westfield H arnpLon V offiesay Quisp arnsis 5.12 5.37 6.27 7.83 6 1 2 3 4 5 6 7 8 9 Percent uncrease 3.5 Property Taxes per Capita in Selected Canadian Cities Moving to the rest of the country, Table 10 records property taxes per capita in twelve Canadian cities. These comparator cities were chosen in consultation with the City of Saint John for the following reasons: Fredericton and Moncton are provincial comparators. St. John's is an Atlantic comparator as well as being a coastal city with similar population density and covering a large geographic area. Cape Breton Regional Municipality is an Atlantic comparator with declining population, slowing economy, industrial presence (steel), and a large area with very low density. In Ontario, Sarnia, Sault Ste. Marie, and Greater Sudbury all have major industrial properties and similar populations. Regina, Strathcona County, and Prince George all have oil refineries. At the outset, it must be emphasized that any interprovincial comparison of municipal property tax data has to be treated with extreme caution. Provincial and municipal expenditure responsibilities differ across provinces. Provincially set service standards/requirements that affect service costs and hence property taxes, may also vary across provinces. Provincial grants to municipalities differ across provinces. Reliance on user fees differs. With this caution in mind, one notes that variation in property taxes per capita across cities within the same province (New Brunswick and Ontario, in particular) is relatively small, while variation across provinces is much larger. Table 10: Property Taxes per Capita in Selected Canadian Cities, 2015 City Province 2016 Population Municipal Property Taxes Per Capita Saint John New Brunswick 67,575 1,751 Fredericton New Brunswick 58,220 1,654 Moncton New Brunswick 71,889 1,747 St. John's Newfoundland/Labrador 108,860 Not available Cape Breton RM Nova Scotia 94,285 951 Sarnia Ontario 71,594 1,533 Sault Ste. Marie Ontario 73,368 1,410 Greater Sudbury Ontario 161,531 1,450 Brandon Manitoba 48,859 789 Regina Saskatchewan 215,106 1,067 Strathcona County Alberta 98,044 2,188 Prince George British Columbia 74,003 1,411 Notes: With the exception of St. John's, provincial property taxes are also levied in each province. Data for Brandon and CBRM exclude PILs. Brandon did a reassessment in 2016. Sources: Population from the 2016 Census. Property tax data are taken from municipal budgets or provincial compilations of municipal financial information. 3.6 Relationship between property taxation of residential and non-residential properties The general practice in Canada and around the world is to levy higher property tax rates on multi - residential properties (although this is not the case in New Brunswick) and commercial/industrial properties than on residential properties.8 Table 11 shows the differential tax rates between residential and non-residential properties in a number of Canadian jurisdictions. These jurisdictions were chosen because of their similarities to Saint John. This cross country comparison indicates that the ratio of municipal non-residential (commercial/industrial) to residential property taxes in Saint John and all of New Brunswick is 1.5. This is lower than in the other comparator municipalities. In Regina, it is a little higher than 1.5. For the other s This may be achieved by levying higher tax rates on some property types or by assessing some property types at a higher percentage of market value. 29 `E:191 municipalities, the ratio is much higher. For more detail on the ratio between residential properties and other property classes, the reader is referred to Appendix Tables B.9 Table 11: Municipal Tax Ratios in Selected Canadian Municipalities, 2015 City Commercial Industrial Major/large industrial Saint John, New Brunswick 1.5000 1.5000 1.5000 Fredericton, New Brunswick 1.5000 1.5000 1.5000 Moncton, New Brunswick 1.5000 1.5000 1.5000 Sydney, Nova Scotia 2.4942 2.4942 2.4942 St. John's, Newfoundland 3.2346 3.2346 3.2346 Strathcona County, Alberta 1.9842 1.9842 1.9842 Regina, Saskatchewan 1.5123 1.5123 1.5123 Prince George, BC 2.0509 3.2980 6.0228 Sarnia, Ontario 1.6271 2.0476 3.0035 Sault Ste. Marie, Ontario 2.1404 2.9624 5.2614 Greater Sudbury, Ontario 2.1397 3.1038 3.5180 Notes: Tax ratios are calculated relative to the residential tax rate. These tax ratios do not include the provincial property tax. Source: Appendix Tables B.1, B.2, B.3, and B.4. 4 Inter -provincial comparison of property assessment and taxation 9 The tables in Appendix B also show that, in many provinces, non-residential properties are divided into several sub- classes with different tax rates. 30 This section provides a brief overview of the characteristics of the property assessment base and tax rate structure across Canadian provinces and territories, based on tables in the Appendix. 10 4.1 General Assessment Categories and Tax Rate Structure An inter -provincial comparison of property assessment categories and municipal tax rate structures (see Appendix Table A-1) suggests the following. • All provinces have at least two assessment categories — residential and non-residential — but many have more. • Most provinces levy a provincial property tax, often justified because of the provincial role in funding public education. • In some provinces, municipalities are free to set their own property tax rates without provincial restrictions whereas in other provinces, the provincial government directly controls or limits tax rates on some property classes. For example, in New Brunswick, each municipality sets its own local property tax rate but it is a provincial requirement that the non-residential (commercial and industrial) municipal tax rate be 1.5 times the residential rate. In some provinces, however, (e.g. Alberta, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador), municipalities are free to set their own property tax rates without provincial restrictions. 11 In other provinces, municipalities are free to set their own tax rates but the provincial government reserves the right to intervene. For example, municipalities in British Columbia set their own tax rates but the province can, by regulation, make special rules about tax rates. It used this power to cap the taxes on the utilities class and impose a maximum municipal tax rate on designated port properties. In Saskatchewan, there are no restrictions on setting municipal property tax rates but the province can set limits on mill rate factors through regulation. It has not exercised this power to date. In Quebec, different tax rates can be applied to different property classes but the province specifies minimum and maximum differentials (Quebec 2017). In Ontario, municipalities are permitted to set different tax rates (relative to the residential 10 This section includes expanded and updated material from Kitchen and Slack (2012); Kitchen and Slack (2014); and from the websites for the Provincial and Territorial Departments or Ministries of Municipal Affairs. " Manitoba only has one municipal property tax rate so differentials do not apply. See BC Ministry of Community, Sport and Cultural Development (2012). 31 rate) for different property categories but provincially set ranges of fairness limit local flexibility. Where differential property tax rates are used, the residential rate (except for farm land and resource properties) is always lower than the commercial/industrial rate. 4.2 Property Taxes and School Funding In terms of property taxes to pay for elementary and secondary schooling, the following can be noted (see Appendix Table A-2): • Most provinces fund a portion of local schooling costs from the property tax. The exception is Newfoundland and Labrador. • In most provinces, property tax rates for education are set by the province. • The provincial property tax on each class of property is generally uniform across the province, but differential rates may apply to different classes of property. 4.3 Assessment Administration Each province has established a central assessment authority to minimize unintended variation in assessment practices and to achieve intended variation where it is desired. Responsibility for assessment rests with the provincial government in some provinces; in others, it is the responsibility of an independent provincial agency. Some examples include the BC Assessment Authority (BCAA) in British Columbia; the Saskatchewan Assessment Management Authority (SAMA) in Saskatchewan with the exception of Saskatoon and Regina and a few other municipalities; the Municipal Property Assessment Corporation (MPAC) in Ontario, and the Property Valuation Services Corporation (PVSC) in Nova Scotia. In Quebec and Alberta, local governments are responsible for the assessment function, although they operate under a standard provincial assessment manual. In Newfoundland and Labrador, local assessors are used exclusively in St. John's; the rest of the province relies on provincial assessors. In Manitoba, local assessors are used in Winnipeg and provincial assessors elsewhere. Every province maintains an assessment manual to guide assessors and it is the practice that assessors follow the manual. Moreover, all provinces exercise a certain measure of control through compulsory educational standards and training courses for provincial assessors. Similar standards have been laid down where the cities, rather than the provinces, assume responsibility. 32 `E:191 Where assessment is a local responsibility, it is funded locally. Where it is a provincial responsibility or the responsibility of a non-profit corporation or agency, it is funded on a full or partial cost recovery basis from participating municipalities 4.4 Frequency of Reassessment Assessment practice over the past two decades has moved towards more frequent and up-to-date reassessments in every province (see Appendix Table A-3). New Brunswick, Nova Scotia, Alberta, and British Columbia are on annual reassessment cycles. In the decades of trying to update their assessment system, Ontario reached annual reassessments in 2004. In 2006, however, the province announced that all assessments would be frozen for two years and in 2007, announced a move to a four-year reassessment cycle which is still in place. Municipalities in Saskatchewan and Manitoba are on a four-year cycle. Municipalities in Quebec and Newfoundland and Labrador are on a three-year cycle. 4.5 Limits on the Impact of a Reassessment Some provinces have instituted limits on the impact of reassessments by constraining either assessment or tax increases. Nova Scotia's cap assessment program (CAP) limits annual taxable assessment increases for eligible properties to the annual consumer price index (CPI). Ontario uses a four-year phase-in of assessment increases for residential properties and caps tax increases on commercial and industrial properties. At municipal option, the tax increase on commercial and industrial properties arising from a reassessment can vary between 10 percent of the previous year's taxes and 5 percent of the taxes based on the full Current Value Assessment of the property (uncapped taxes). In 2009, the provincial government in Prince Edward Island froze all residential assessments at 2007 values until time of sale. Beginning in 2010, the property assessment freeze was replaced by annual increases based on the change in the CPI to a maximum annual increase of 5 percent (if the CPI is negative, assessments remain fixed). New Brunswick instituted a 3 percent cap on increases in assessment of owner -occupied property as a temporary measure for the 2011 and 2012 taxation years. In 2013, the 3 percent cap was removed and replaced with a permanent assessment exemption. The assessment gap (difference 33 `E:i! between the 2012 market value and 2012 capped assessment) serves as a permanent exemption from taxation. Those properties that benefited from capping will be able to keep the savings until the house is sold or changes use. It was anticipated that the phase out would take 20 years. The province also adopted "assessment spike protection" to protect homeowners from unanticipated assessment spikes. Any increase greater than 10 percent would be phased in over a number of years. New construction and major improvements were exempt from this protection. Recently, the province announced that legislation would be introduced in the fall of 2017 to freeze all property tax assessments in 2018 for at least as long as it takes the newly proposed provincial assessment agency to reassess all properties. Exceptions include new construction, major improvements with a building permit and real estate transactions, or where a property assessment decreases due to market forces. 4.6 Exemptions Local governments do not have legislative power to collect property taxes from properties owned by federal and provincial governments or their enterprises. 12 Section 125 of the British North America Act (now the Constitution Act) states that "no lands or property belonging to Canada or any Province shall be liable to taxation." This clause was enacted to ensure that the legislative powers of taxation of one level of government would not interfere with the control of property of another level of government. Other institutions, such as churches and cemeteries, and many charitable organizations, are also exempt from property taxes. Individual provinces have additional exemptions - in some cases from school taxes only and in other cases from both municipal and school taxes. As an illustration, housing for the low income elderly and infirm, museums and buildings used by war veterans are exempt or partially exempt from school taxes in Manitoba; eligible small theatres and conservation land are exempt from both municipal and school property taxation in Ontario; and Alberta has a list of exempt properties that includes non-profit day-care centres, certain sports and recreational facilities, thrift shops, and sheltered workshops. Public libraries are exempt in all provinces except New Brunswick, Nova Scotia, and Prince Edward Island. Public hospitals are exempt except in New Brunswick, and agricultural societies receive some exemption in all " Federal government enterprises generally include crown corporations while provincial government enterprises are made up of a number of diverse entities including provincial housing corporations and provincial liquor control boards. 34 provinces except for Newfoundland and Labrador and Prince Edward Island. Additional exemptions are provided through municipal by-laws in each province. 4.7 Payments in Lieu of Taxes To compensate for forgone property tax revenue on government-owned property (including universities, colleges, hospitals, and penal institutions), the federal and provincial governments make payments in lieu of taxes to local governments in some cases. The impact on municipal revenues from payments in lieu depend on two factors: the number of federal and provincial government properties or crown corporations located within the municipality and the extent to which these payments reflect the value of property taxes that would have been paid otherwise. In some provinces, payments in lieu are equal to full property taxation; in other provinces, payments fall short. Ontario is an anomaly when it comes to payments in lieu for provincial hospitals, universities, colleges, and penal institutions. Instead of a payment or grant based on assessed value, it is a fixed amount. The current rate is $75 per bed for hospitals, $75 per resident place for penal institutions, and $75 per full time student equivalent for qualifying post -secondary institutions. This payment, which is often referred to as the "heads and beds" tax, was introduced in 1987 at a fixed rate of $50 per head/bed. 4.8 Treatment of Machinery and Equipment (M&E) Provinces vary in terms of how they tax machinery and equipment under the property tax (Appendix Table A-4). Machinery and equipment are taxed in Newfoundland and Labrador, Quebec, Manitoba, Saskatchewan, British Columbia and Alberta (but machinery and equipment is excluded from the uniform province -wide property tax on education). The calculation of the assessed values for M&E in the western provinces varies widely from province to province (Conger and Dahlby, 2015). In Prince Edward Island and New Brunswick, only machinery, equipment, and other fixtures that provide services to the buildings are liable to property taxation - machinery and equipment used in the oil refinery properties in Saint John are excluded. Nova Scotia excludes all machinery and equipment from the property tax base. Ontario exempts machinery used for manufacturing, farming, ore smelting and so on. 35 `RIN 4.9 Treatment of Linear Properties Most provinces provide special assessment rules for electrical, telecommunications, and natural gas distribution systems; railway property other than land and buildings; and pipelines. Depending on the province and the utility, valuation may be based on: assessed property value; gross revenue or gross receipts for natural gas, electricity distribution, cable television and other telecommunications; pipe length and/or diameter for pipelines; and length of tracks or tonnage per kilometre for railways (see Appendix Table A-5). 4.10 Business Occupancy Taxes A business occupancy tax is a local tax which is frequently, but not always, based on the assessed value of commercial and industrial property. Statutory liability for payment almost always falls on the occupant. Inter -provincially, there is considerable variation in the extent to which business occupancy taxes are used and in the way in which they are imposed. Over the past few years, the trend has been to move away from business occupancy taxation to higher property tax rates on commercial and industrial properties. The business occupancy tax, as a separate tax, does not exist in Nova Scotia, Prince Edward Island, New Brunswick, and Ontario. It is optional in Alberta, Saskatchewan, and Manitoba. In Newfoundland and Labrador, a business tax is levied as a percentage of assessed property. It tends not to be used in British Columbia; instead, municipalities impose higher tax rates on non-residential property. The business tax in Quebec is based on the annual gross rental value of business properties. 4.11 Property Tax Relief Programs There are two categories of property tax relief: • The first includes the exemption of certain properties, preferential assessment, and differential tax treatment of some properties (residential and farm properties, for example) compared to other properties (non-residential), as noted earlier. • The second category is direct property tax relief. Each province (and some municipalities) provides direct property tax relief programs, but almost always for residential properties only. It is this category of relief payments that is considered here. 36 A brief overview of property tax relief programs suggests the following (see Appendix Table A- 6): • Provincial programs include grants, exemptions, tax credits, and deferrals. • Property tax relief schemes tend to be used more extensively where property taxes are relatively more important as a revenue generator. • Property tax relief is allocated almost exclusively to residential and farm properties - it often takes the form of grants or credits (in addition to lower effective tax rates) through the personal income tax system. • Property tax relief is broadly available in some provinces and more specifically targeted to particular groups such as seniors and the permanently disabled in other provinces. In addition to provincial programs, municipalities in most provinces have the power to enact relief schemes at the local level to alleviate the burden for low-income taxpayers. These initiatives may include reductions, cancellations, or refunds of property taxes, but they are not discussed here. 4.12 Property Tax Incentives A few provinces have passed legislation that permits municipalities to reduce property taxes on business properties as a way to stimulate economic development. In British Columbia, the Community Charter and the Vancouver Charter provide municipalities with the authority to exempt property from municipal property taxes. The municipal council is required to establish a revitalization program with reasons and objectives. Exemptions may apply to the value of the land or improvements, or both. Councils are free to specify the amounts and extent of tax exemptions available. In Alberta, the Community Revitalization levy (CRL) came into effect through an amendment to the Municipal Government Act in 2005. The CRL is similar to the tax increment financing (TIF) programs used in the US. 13 The CRL is an economic development tool to encourage the redevelopment of areas in need of revitalization. Under a CRL, municipalities can dedicate future property tax revenues in a specific area to pay for a new public facility or new infrastructure in " TIFs were first introduced in California in 1952 and, since that time, they have spread to almost all US states. TIFs are a much newer instrument in Canada and not nearly as widespread as in the US. TIF legislation was passed in Manitoba in 2008 but TIFs are not yet being used in that province. TIF legislation was passed by the provincial government in Ontario in 2006 but regulations were never enacted. 37 `E:1:3 that area. These projects are designed to encourage new development and revitalize a specific part of the city and encourage private sector investment. The provincial government also contributes the education portion of the new tax revenue. There is no grant portion to the CRL; it merely diverts the revenues from the increment in property values arising from the investment to pay for the investment. In Ontario, under section 28 of the Planning Act, municipalities can designate an area or the entire municipality as a community improvement project area. They can then implement a community improvement plan (CIP) with grants and/or loans which can, if the municipality chooses, be calculated on a tax increment basis. In other words, the municipality can offer developers a grant or loan that is based on the higher property tax that is generated from development (the tax increment). Such incentives are known as tax increment equivalent grants (TIEGs) and are used in a number of communities across Ontario. It is important to note that TIEGs are not the same as Tax Increment Financing (TIFs), for the most part because TIEGs include a subsidy component and TIFs do not. Under a TIF, property tax revenue from the designated area is divided into two categories for a specified period of time (long enough to recover all of the public funds used to redevelop the property, usually between 15 and 35 years). Taxes based on pre -developed assessed property values are retained by the municipality for general use. Taxes on increased assessed values arising from redevelopment (the tax increment) are deposited in a special fund to repay bonds that have been issued to finance public improvements in the redeveloped area. In other words, increases in property tax revenue from the redevelopment of an area are dedicated to financing public improvements in that area. Montreal introduced a program to enable property owners who invest in their industrial facilities to be reimbursed for their property tax increase. The program, which was announced in October 2007, is designed to encourage the owners of industrial buildings in the metropolitan area to accelerate investment in buildings, improve the competitiveness of Montreal, maintain a diversified economic structure in Montreal, and increase the value of the stock of industrial buildings. The program offers owners of non-residential buildings the possibility of a grant to reimburse them for any increase in their property taxes as a result of improving their property (through construction, conversion, or increasing the size of the building) for five years. to `E:1%7 5 Specific Issues in Property Taxation This section raises a number of issues or potential issues of relevance to property taxation in the City of Saint John and the Province of New Brunswick by addressing ten questions. 5.1 Should the tax rate be different on residential and non-residential properties? Although there is no clear answer to the question about the appropriate relationship between non- residential and residential property taxes, three principles of taxation -- equity based on benefits received from local services, accountability, and efficiency -- suggest that non-residential properties should be taxed less than residential properties. To the extent that the property tax is intended to pay for services that provide collective benefits to the local community, fairness or equity dictates that the tax rate should be the same for all properties receiving the same services or levels of service, regardless of property type. For properties that benefit from more services or higher levels of service, the tax rate should be higher. A number of Canadian studies over the past two to three decades have compared the benefits received by residential properties compared to non-residential properties. In general, they have all concluded that the residential sector receives proportionately more benefits from local government services than the non-residential sector. In particular, the non-residential sector is often responsible for providing its own garbage collection, security, and fire protection and it relies less heavily on social services, social housing, elementary and secondary education, libraries, and recreational facilities. One argument that is often cited to justify higher property taxes on businesses is that they can deduct all expenses incurred in earning income (including property taxes). Owner -occupiers of residential dwellings, by comparison, are not allowed similar deductions. The higher tax on business, it is often argued, is justified on the grounds that it evens out the disparities in taxes that would otherwise exist. Although it is true that owner -occupiers are not able to deduct property taxes from income for income tax purposes, it is also the case that owner -occupiers are not 39 `RM required to include in taxable income either imputed income from their owner -occupied dwellings or capital gains earned on the disposal of their principal residences. Such exclusions are similar to a deduction from income for tax purposes (as in the case of the tax on businesses) in that both reduce the taxable economic income of the taxpaying unit. In terms of accountability, non-residential property owners generally do not have the right to vote (in their capacity as business owners) in local elections 14 and have less ability than residents to hold elected officials accountable for expenditure and tax decisions. In keeping with this principle, residential taxpayers should shoulder a larger portion of the tax burden. Moreover, efficient municipal service levels will not be achieved if property taxes on business properties are used to subsidize services consumed by the residential sector. Since service levels in any municipality are driven largely by the demands of the residential sector (because residential taxpayers vote), their subsidization means that the residential tax rate will be less than it would be in the absence of the subsidy and an oversupply of municipal services could follow. In terms of efficiency, businesses are more likely to leave a municipality in response to taxes than residential property owners because the former are more mobile. Hence, business properties should be taxed more lightly than residential property Single residential versus multi -residential properties The practice in some provinces (not in New Brunswick) has been to assess multi -residential properties at higher values than single unit residential properties and/or to levy a higher tax rate on multi -residential properties. This leads to higher effective tax rates on the former. Similar to the discussion on the tax treatment of residential and non-residential properties, there is no basis for treating multi -residential and single unit residential properties of equal value differently unless it can be demonstrated that they receive different municipal services or levels of service. 5.2 Is it fair to exempt some properties from property taxes? Exemptions have an impact on the fairness of the property tax. Exemptions may be categorized in different ways. For example, there are constitutional exemptions which prevent municipalities 14 It should be noted that businesses were recently given two votes per business in municipal elections in New South Wales, Australia. .R MOS from levying property taxes on federal or provincial properties. In the place of property taxes, federal governments make grants or payments -in -lieu (PILs). In some provinces, such as Ontario, the province also makes payments in lieu on their properties. In New Brunswick, by comparison, provincially- owned properties do not make payments -in -lieu; instead, they pay municipal property taxes on the assessed value of their properties. PILs, on average, are not large revenue generators for local governments, but at the margin, they are not insignificant either. In Saint John, federal PILs account for $1.5 million which is equivalent to 1.24% of property tax revenues. PILs do not create a revenue problem if they are equal to what the property tax would be; in other words, their revenue shortfall is not being subsidized by property tax paying properties. If, however, payments in lieu are not paid by exempt properties or if they are paying less than they would pay in property taxes, the resulting impact is unfair. Table 12 records residential and non- residential assessment totals for properties on which federal government PILs are paid to Saint John. Federal residential and non-residential properties are assessed at almost $22,000 and $57.5 million respectively. Expected payments and actual payments are almost identical. Actual payments fell short of expected payments by $18,700 or less than 1% of the total expected. This suggests that federal payments -in -lieu of taxes are not really a problem in terms of revenue shortfall. Other exemptions include places of worship (churches, temples, mosques, for example) and also cemeteries. A third group includes public or quasi -public organizations such as hospitals, educational institutions, libraries, nursing homes, non -profits organizations, etc. Finally, some exemptions, such as for machinery and equipment, are given to encourage economic development. For each of these categories, property taxes or PILs are not paid. In some cases, properties which are exempt are not assessed (churches and cemeteries, for example); in other cases, properties are assessed even though they are not taxed. 'able 12: Federal Properties and Payments -in -Lieu of Taxes, Saint John, Federal residential assessment 21,800 Federal non-residential assessment 57,450,700 Payment expected 2,165,720 Payment received 2,147,050 2016 41 Shortfall Municipal portion of Payment 18,670 1,513,813 Source: Disaggregated data provided by City of Saint John On fairness grounds, exemptions are difficult to justify. Exempt properties use municipal services like other properties that occupy space and, hence, should be taxed. Second, exemptions narrow the tax base resulting in increased taxes (higher than they would be otherwise) on non-exempt properties or a reduction in service levels. Third, differential tax treatment may affect location decisions, choices about what activities to undertake, and other economic decisions. If there is a sound public policy reason or rationale for the exemption, it should be made explicit. If there is not a solid public policy rationale, the exemption should be terminated and the property should be subject to the tax rate that is paid by non-exempt properties. Finally, exempt properties should at least be assessed on the same basis as non-exempt properties even if they are not taxed. The property tax rate, then, could be applied to the tax base to calculate the value of forgone tax revenue. In this way, local government officials and the taxpaying public would be aware of the real cost of the exemptions and better able to judge whether they are acceptable and fair. 5.2.1 How should hospitals and universities be taxed? Hospitals and universities in New Brunswick pay municipal property taxes at the residential rate. This practice has, on occasion, raised the question of whether the residential rate or the higher non-residential rate should be applied. The theoretical and empirical literature is basically silent on the property tax rates that should be applied to these institutions. One can, however, consider the services they provide as a basis for determining the appropriate tax rate. There are two components to both types of properties. One is residential in nature including rooms and services provided for these rooms. The assessed value of this part of the property should be taxed at the residential rate. The second is commercial, including food courts, book and gift shops, and other types of commercial activities that are also available outside the institutional setting. The assessed value of the portion of the property with these activities should be taxed at the higher 42 `RX non-residential tax rate. This distinction would establish a level playing field with similar non - institutional properties. 5.3 Should property tax relief be available for low income taxpayers? Property tax relief is delivered in in New Brunswick through provincial grants that are credited against property taxes on the principal residence of low income owner -occupied homeowners. If income is less than $22,000, the maximum grant is $300. For homeowners with incomes from $22,001 to $25,000, the maximum credit is $200 and for homeowners with incomes from $25,001 to $30,000, the maximum credit is $100. There is also a property tax deferral program for eligible seniors who may defer the annual increase in the property tax on their principal residence. Unlike most provinces in Canada, municipalities in New Brunswick are not permitted to offer property tax relief. As with any tax that creates a liquidity problem for low income taxpayers, income transfer or tax relief programs are appropriate. In most Canadian provinces, municipalities can offer property tax deferrals which permit the property owner to defer some or all property taxes. The outstanding amount becomes a lien against the property and is payable when the property is transferred. It is a deferral of taxes and not a tax rebate. In some cases, an interest charge (often below the market rate of interest) applies to the deferred taxes. These programs are generally restricted to seniors. Another option and one that is in place in N.B. is a provincial property tax relief scheme based on income. This introduces an important element of progressivity in the property tax system 5.4 Do property tax rate differentials have an impact on the tax base? There is no general agreement about the impact of property taxes on location decisions and hence, on the tax base. The available evidence, most of which is drawn from the United States, suggests that property tax differentials are relatively unimportant in inter -municipal or inter -regional location decisions but do play a role in intra -municipal or intra -regional location decisions. For example, a business may not be affected by a property tax differential between Saint John and Halifax but it could be affected by a property tax differential between Saint John and Rothesay. These findings are not surprising. In terms of inter -regional location decisions, business activity is most influenced by market conditions, the availability and cost of a skilled labour force, access to 43 `OL'! transportation, the presence of necessary production materials, and proximity to markets. Since property taxes account for a relatively small proportion of the total costs for most businesses, it is unlikely to be large enough to initiate a relocation decision or encourage significant business activity. Intra -regional location decisions, on the other hand, may be affected by property tax differentials. The smaller the area over which the business may locate, the more similar are the non -tax factors. Within a regional area such as greater Saint John, for example, market conditions and cost variables (such as labour, transportation, and energy costs) tend to be reasonably similar. In this context, fiscal factors take on more significance: lower property taxes in one community generate lower costs at the margin and higher profits for businesses locating in that particular area. As noted earlier, there has been a significant difference between the municipal property tax rate in the City of Saint John and its neighbouring municipalities (see section 3.4 above). In recent years, the growth in the tax base in Saint John has been noticeably slower than in neighbouring municipalities. Although one cannot conclude unequivocally what has driven this, it suggests that the higher tax rate in Saint John likely had an impact on both non-residential and residential location decisions. Similarly, lower tax rates in the nearby Local Service Districts have likely had an impact. 5.5 Is there a role for property tax incentives? There is a significant literature on the pros and cons of non-residential property tax incentives in the United States but very little in Canada. In large part, this is due to the proliferation of tax incentives in that country where it has been estimated that they cost state and local governments between $5 and $10 billion each year (Kenyon, Langley, & Paquin, 2012).15 Property tax abatements are used to discourage existing businesses from leaving a city, to steer businesses to a particular location within the city, or to change the use of the property. The idea behind reducing the property tax is to compensate a business for pursuing an economic activity that is in the public interest but which may not necessarily be in its private interest. is A study of stand-alone property tax abatements in the U.S. indicates that 35 states allowed for these abatements in 2004 (Dalehite, Mikesell, & Zorn, 2005). In 2007, there were at least seven other states that allow municipalities to offer a reduction in property taxes but only in conjunction with a larger economic development program (Wassmer, 2007). While not nearly as extensive as incentive programs in the U.S., Saint John has a suite of Urban Development Incentive Programs for the Central Peninsula area of Saint John. These incentives target the redevelopment of vacant spaces for new residential development. There are three separate grant programs that address specific challenges of building in the historic urban centre of the City. The grant programs are structured to reduce financial barriers to development and leverage new private sector investment. The main grant offered through the Urban Development Incentives Policy provides a rebate of 5.25% of the cost of construction for approved projects over the course of five years. These projects may also be eligible for two other complementary grants: the Construction Challenges Grant and the Building Permit Rebate Grant. 16 Those who favour property tax incentives argue that recipient firms provide benefits to the community that exceed the costs to the municipality for business services and environmental degradation caused by the businesses. When incentives succeed in attracting new business to a city, they can increase income and employment, expand the property tax base, and revitalize distressed areas (Wagaman, 2017). Critics of property tax incentives, however, argue that they actually have a poor record in promoting economic development. They are often wasted on firms that would have located there anyway. Lower taxes are offered to new businesses locating in the municipality at the expense of existing residents and businesses. Tax incentives can lead to unfair competition among businesses and can lead to a situation where no major investments occur without them (Wagaman, 2017). Tax cuts need to be financed in some way and, if they are financed by cutting public services that businesses want, the net effect on economic development could be negative. Indeed, the extensive US evidence suggests that such incentives often lead to a deterioration of the tax base and lower levels of public services. 5.6 Should municipalities be able to set progressive property tax rates? Progressive property tax rates are tax rates that increase as the value of the assessment base increases. This idea has recently surfaced and gained some exposure in Vancouver and Toronto. Progressive property tax rates are not currently permitted in New Brunswick nor, for that matter, 16 Foi- aiol•a„ &.11tar'1 http://www.saintj ohn.ca/en/home/cilyhall/developmentgrowth/urbandevelopmentincentives.aspx 45 `L6Z:1 in other provinces, but they are used in a few European countries where they are one component of an annual wealth tax. Proponents argue that progressive property tax rates would lead to a progressive taxation of wealth; in other words, it would serve as a partial wealth tax (Piketty, 2014). Although true, this argument needs to be considered in the context of financing municipal services. Local governments in Canada do not and are not permitted to impose an annual tax on wealth. For good reason, municipalities should not be responsible for taxes that are designed to redistribute income (Youngman, 2016). If income redistribution is attempted at the local level, one jurisdiction might implement progressive taxes while another might not. As long as people can move between the two jurisdictions, high-income people will move out of the progressive tax rate jurisdiction and low-income people will move in, other things being equal. Redistribution breaks down unless it is carried out on a broader geographic scale. As noted earlier, the major role for property taxes is to pay for goods and services that provide "collective benefits," such as fire and police protection, parks, and street lighting. These services benefit taxpayers but it is difficult or inappropriate to identify the individual beneficiaries and charge them directly so a property tax acts as a benefit -related tax. There is no evidence to suggest that the benefits received from these types of services increase with property value so there is no justification to charge higher tax rates to more expensive properties. One of the complaints about the property tax is that it hurts those who are asset rich but income poor. For example, seniors on fixed incomes who purchased their properties many years ago face high property taxes because their values have increased but their incomes are low. A progressive property tax would exacerbate the liquidity problem faced by these taxpayers. Lastly, from an administrative point of view, a uniform tax rate has the advantage of being simple, transparent, and predictable in terms of the amount of revenue that will be collected (Zorn 2013). Taxpayers find one tax rate easier to understand and it is less complicated for tax officials to administer a uniform tax rate than progressive tax rates. Moreover, where property values are divided into different classes by property value, there will be an incentive for those taxpayers at the bottom of a value class to appeal their assessment to get into a lower class. The number of appeals would surely increase. we `LOtl Although a progressive rate structure is not advised for the property tax, the earlier discussion of concessions for low-income taxpayers identified a number of ways to introduce progressivity for low-income taxpayers. 5.7 Should there be a special tax on vacant land? Current practice in New Brunswick is to assess vacant land at its market value. The assessed value of vacant land and vacant lots in Saint John amounts to 1.2% to 1.3% of all property assessment. 17 It has sometimes been suggested that a special tax (higher) should be levied on land to encourage development and expand the local tax base. Because market value generally captures the value of property in its highest and best use, however, the property tax already provides an incentive to encourage development. In other words, the taxes levied reflect the property value as if it were developed so there is an incentive to develop the land to generate the income to pay the tax. Thus, there is no justification for a higher tax rate. Moreover, current legislation does not permit a higher tax rate on vacant land because the property tax is levied on the total value of the property and does not differentiate between the value of land and the value of buildings. Should there be a special tax? If we go back to the role of property taxes - to fund those services that provide collective benefits to the local community - the vast majority of these services benefit occupied properties. By and large, most public services do not benefit vacant land. To impose a higher tax rate on these properties compared to similarly assessed occupied properties, one could argue, is unfair. If anything, one might suggest that the tax on vacant land should be lower than similarly priced occupied properties. The rationale, then, for a special tax is neither apparent nor justified. 5.8 How should special properties be taxed? Special or unique properties include oil and gas refineries, linear properties, farmland, and forests. Before considering each of these properties, this section looks at the tax treatment of machinery and equipment (M&E). 5.8.1 Machinery and equipment 17 This is different than a vacancy tax on residential properties which is permitted in BC and now permitted in Ontario. 47 `RU] Provinces vary in the property tax treatment of M&E: some tax it as long as it is affixed to real property; others tax it if it provides services to the building; and still others partially or entirely exclude it from the tax base (see Appendix Table A-4). In New Brunswick, machinery and equipment that provides a service to buildings is assessed and subject to property taxation, but machinery and equipment in oil and natural gas refineries is not subject to property taxation (see next section). At one time, every province taxed M&E, but concerns over the cost impact on the manufacturing sector two or three decades ago led to some provinces removing or partially removing it from the property tax base. It may be an open debate as to whether or not excluding one component of the manufacturing sector (M & E) from the property tax base while taxing other components (buildings and land) is the fairest and most effective way to assist the manufacturing sector. A simple example may illustrate the point. Suppose we have two neighbouring industrial properties assessed at $2 million each, but with different assessed proportions of M & E versus land/buildings. In this scenario, the property with the higher percent of M & E pays proportionately less in property taxes compared to the property with the lower percent of M & E (assuming that M&E is tax exempt). It could be argued that this situation is not fair because one property pays less property tax than the other even though each benefits from the same level of public services. Moreover, a policy of exempting taxes on one factor of production creates an incentive for companies, wherever possible, to use more of the non-taxable factor (M&E) and less of the taxable factors (land/buildings), thus distorting their economic decisions and also reducing the local assessment base. On the other hand, if one were to draw an analogy to the property tax treatment of residential properties, personal property (furnishings, appliances, motor vehicles, and so on) is not taxed while furnaces, air conditioners, and plumbing fixtures that are affixed to property and provide services to the property are factored into property values and hence, are taxed. Taxation of these fixtures is similar to the taxation of M & E that provides services to buildings. Excluding personal property may be similar to excluding M & E that does not provide services to the building. In any case, exempting machinery and equipment to assist the manufacturing and processing sector is a second-best solution. A fairer and less distorting way of helping the manufacturing and `Pl%7 industrial sector would be to lower the property tax burden on the entire sector as opposed to exempting or partially exempting one factor of production. 5.8.2 Oil and natural gas refineries Property tax revenue from oil refineries is a major issue in the City of Saint John. Until 2016, Canaport's LNG property was exempt from the City's non-residential property tax. Instead, the City received a payment of $500,000 per year. In 2016, the city requested that the province return the LNG Terminal to the same taxation rules as are faced by all other industrial properties in New Brunswick. Under this scenario, the assessed value of the property was reported to be $299.5 million; an amount that would generate slightly more than $8 million dollars in tax revenue at the current municipal tax rate. A subsequent reassessment, however, lowered the property's assessed value to $98.6 million - this would generate more than $2.6 million in annual property taxes. The difference between the reported assessed value and the reassessed value has stirred up controversy in Saint John. We are not in a position to comment on the accuracy of this reassessment for it is a technical issue that requires the expertise of assessment authorities based on current assessment practices. A critical issue in the property taxation of oil and natural gas refineries, however, revolves around the treatment of machinery and equipment (M&E) which was discussed above. Table 13 lists the oil refineries in Canada and the tax treatment of M&E, which mirrors the more general treatment of M&E in each province. Briefly, M&E is excluded from the property tax base in New Brunswick and Ontario. It is included in the property tax base for refineries in Newfoundland/ Labrador, Quebec, Saskatchewan, Alberta and British Columbia. As discussed in section 5.8.1, there are two opposing approaches to the property tax treatment of M&E: excluding them has been justified on the basis of encouraging manufacturing and processing and expanding economic activity; including them minimizes incentives to alter production decisions so as to minimize property taxes and is fairer in the property tax treatment of all manufacturing and processing plants. Table 13: Canadian refineries and property tax treatment of machinery and eq ui ment Province Operator Location Property tax Capacity treatment of M&E bbl/day . • M9191 Newfoundland/Lab. North Atlantic Refining Come -By -Chance Taxed 130,000 New Brunswick Irving Oil Saint John Exempt 300,000 Quebec Suncor energy Montreal taxed 140,000 Valero (Ultramar) Levis taxed 265,000 Ontario Imperial Oil Nanticoke exempt 112,000 Imperial Oil Sarnia exempt 120,000 Shell Canada St. Clair exempt 75,000 Suncor Energy Mississauga exempt 15,600 Suncor Energy Sarnia exempt 85,000 Saskatchewan FCL Regina taxed 145,000 Gibson Energy Moose Jaw taxed 19,000 Alberta Imperial Oil Edmonton taxed 187,000 Shell Canada Strathcona County taxed 114,000 Suncor Energy Edmonton taxed 140,000 Husky Energy Lloydminster taxed 28,000 British Columbia Chevron Burnaby taxed 52,000 Husky Energy Prince George taxed 12,000 Source: http://www.oilsandsmagazine.com/projects/canadian-refineries If one looks at provinces that include M&E in the tax base for oil refineries as the comparator group, one could argue that machinery and equipment should be subject to property taxation in New Brunswick. On the other hand, if one looks at Ontario as the comparator province, one would suggest the opposite - all machinery and equipment in refineries should be excluded from property tax base. Given these opposing practices, there is no clear direction to follow. Perhaps the best that can be said is that if there are concerns about the impact that including M&E in the tax base might have on economic activity or the over -taxation of business properties more generally, a preferred approach and one that was suggested in section 5.8.1, would be to include all M&E in the tax base and lower the tax rate on all non-residential properties. 5.8.3 Linear properties Linear properties include railway rights of way, pipelines, telecommunications and cable properties, gas and oil wells, and electric power property (including generation, transmission, and distribution). Often these properties cross municipal boundaries, complicating the levying of the 50 Wel property tax. For this reason, assessment of linear properties in Alberta, for example, is a responsibility of the province. Depending on the type of linear property, property taxes can be levied on the basis of assessed property value, gross revenue (receipts), pipe length, diameter of pipe, length of track, or tonnage. Each of these methods is intended to measure the value and in every case, the measure chosen is likely the one that is most practical. Using market value for railway rights of way, for example, can mean that property taxes in major cities will be much higher than in the rural hinterland. For this reason, regulated rates are often used instead. In Ontario, railway rights of way and land used as transmission or distribution corridors owned by power utilities have not been assessed on market value since 1998. As part of the 1998 property tax reform, the Ontario provincial government sets tax rates to be imposed by local municipalities on these linear properties. The tax rates (expressed as dollars per acre) differ for railway rights-of- way and electrical corridors and also by eight geographic regions. 5.8.4 Farmland Farm properties are favoured in the property tax system across Canada and in many other countries as part of a more general policy of protecting farmland. A common way to favour farm properties is to assess them at their value in current use rather than market value (which reflects the highest and best use). The value of a farm is determined by its selling price if it were to continue to be used as a farm. Alternative uses of the farm, or its speculative value, are not considered in the determination of value. Other ways of favouring farm properties include providing exemptions for part or all of the farm property, lowering tax rates on farms, or providing farm tax rebates. Taxing agricultural land on the basis of its value in current use was originally designed to reduce development pressure, reflecting the widespread perception that it is unfair to tax farmers for non - farming uses such as real estate development (Youngman 2005). Although protecting family farms is the main justification for current use assessment, these provisions seldom differentiate between family farms, hobby farms, corporate farms, and land being prepared for subdivision: these tax breaks in practice thus often benefit land developers (Youngman 2005). 51 WIN The extent to which development will be delayed depends on (1) the difference between value in current use as a farm and the market value in its developed use and (2) the rate of property tax. The greater the difference between value in current use and market value, the greater the impact on delaying development. The higher the property tax rate, the more effective is value in current use at delaying development. Value in current use does not benefit farmers in truly rural areas, however, because where farming is the most profitable use of the land, the value in current use is the same as the value in highest and best use. Even in areas where agricultural owners are free to sell their land for development at any time, current use assessment by itself will not ensure the long-term preservation of farmland. Theoretical research suggests that current use assessment can defer, but not permanently prevent, development of land on the urban fringe (England and Mohr 2002). Preferential property tax treatment is not sufficient to preserve farmland because the resulting tax differential is unlikely, given the generally low effective tax rates on land, to be large enough to compensate for the much higher prices that would be paid if the land were converted to urban use (Maurer and Paugam 2000). 5.8.5 Forest land Managed forest land is taxed in different ways across the country. In Ontario, for example, the tax rate on forest property is set at 25 percent of the residential property tax rate (as is farm property). In Newfoundland and Labrador, it is a fixed tax per hectare. In Nova Scotia, forest land is taxed on a per acre basis with the tax rate set by the municipality, but the province sets the upper limit for this rate. In New Brunswick, freehold timberland is assessed at a fixed value of $100 per hectare with a tax rate of approximately $1.70 per $100. There are a couple of problems with a fixed rate per acreage approach. First, the rates often remain fixed from year to year even when commercial and residential property tax rates on other taxable properties are increasing. Second, concerns arise over the increasing hectares of forest land on which these relatively low rates are applied when, in reality, the land is no longer used for forestry. 5.9 Is there a role for provincial property taxes? 52 `IN With the exception of Newfoundland and Labrador, every provincial government in Canada levies a property tax. The original and ongoing rationale for provincial levies is to fund a portion of public schooling. In practice, however, property taxes are simply part of provincial general revenue. As noted earlier, the property tax is an appropriate tool for funding a range of municipal services. It is not, however, a good tax for funding provincial services such as education. Provincial service responsibility should be primarily income redistributional in nature and for services that generate significant spillovers. Elementary and secondary schooling qualifies on both counts (Auld and Kitchen, 2006) and should be funded by taxes more closely aligned with ability to pay. Education, therefore, should be funded from revenues generated by income taxes and the HST. Moreover, eliminating provincial property taxes would reduce the pressure on the municipal property tax and increase transparency in the property tax system. Indeed, one of the recommendations in a discussion paper released by the Department of Finance in New Brunswick in June of 2008 (New Brunswick, 2008) called for a reduction in the provincial property tax. Accountability and transparency could also be improved if provincial property taxes were eliminated. At the moment in New Brunswick, the provincial government sends out the tax bills and collects the property tax for both municipal and provincial purposes. If the province were to vacate the property tax field, it would increase transparency and accountability because the municipality would be responsible for the tax bill. It would also provide municipalities with needed tax room. 18 5.10 Why is an assessment freeze a bad idea? The provincial government in New Brunswick recently announced an assessment freeze for 2018 to allow the newly proposed provincial assessment agency a chance to complete a province -wide 18 One argument that has been made in defense of property taxes for education is that the public education system provides direct benefits to its students along with indirect or collective benefits to residents of the community and the province. This argument assumes, however, that local school boards have the power to set the local education tax rate and retain the revenue for local school needs. Provincial property taxes are not administered in this way. The province sets the tax rate and spends the revenue where it chooses — it may be on schools, but it may not be on schools. In this way, revenue from the provincial property tax is really no different than revenue from the provincial income tax or the Harmonized Sales Tax (HST). Since neither of these taxes is shared with municipalities, one may very well ask why the municipal sector should share the property tax with the province. 53 Well reassessment (section 4.5 above). If the freeze is for one year only, the inequities in the treatment of properties will be short term. If, however, it lasts for a longer period, these inequities and harmful effects will increase The problem with freezing assessments is not so much a reduction in local tax revenue because municipalities could increase their local tax rate to collect the same amount of revenue; the problem is the inequities between properties that will result because properties with similar market values are not paying the same taxes. Furthermore, the frozen assessment creates a much larger benefit (in terms of taxes saved) for those who are benefitting from increasing property values at the expense of those whose property values are rising slowly or not at all (Kitchen and Slack, 2014). In addition, assessment limits, such as freezing, result in what Mark Haveman (the executive director of the Minnesota Taxpayers Association) refers to as "phantom tax relief' — the appearance of property tax relief where none actually exists (Haveman and Sexton, 2008). This situation arises because an increase in the tax rate that is required to raise revenues when the size of the tax base has been reduced (by limiting assessment) can offset relatively small reductions in assessed value. The result is that, for some properties, a reduction in market value assessment actually results in higher property taxes. Freezing assessment until the property is sold reduces the incentive to move and may distort economic decision-making. For example, homeowners may not move if their job location changes because their property taxes would rise even if they move to a house of equal value. Freezing also creates a disincentive for skilled labour to move to the province because new homeowners would pay the full property tax (not capped). It could also discourage new construction which is not included under the freeze, leading to a lower level of economic activity than might otherwise exist. Finally, it is difficult to remove a freeze if it has been in place for a long time: "once a freeze is imposed, the process of thawing may be too painful to bear" (Youngman, 1999). The not too distant situation with the capping and clawbacks of commercial and industrial properties in Ontario provides an example of this point. It is difficult to go back to a straight market value assessment, even if it is a fairer system, after assessment -related tax increases have been capped 54 W9191 for a period of time. Fortunately, New Brunswick was able to extricate itself from the temporary freeze in 2011 and 2012, but Nova Scotia has had a much more difficult time because its cap has been in place for much longer. 6 The role of the property tax in meeting growth objectives and fiscal sustainability In addition to the issues around property taxation discussed in section 5 above, there are two other concerns that have been raised in Saint John. First, how does the property tax support the City's current and future growth objectives? Second, what changes could be made to the property tax system to ensure that the City is fiscally sustainable and has the capacity to attract and retain business, people, and investment? Clearly, there is no easy answer or any clear cut response. There are, however, some comments that may be made to shed light on these issues. Behind any growth plan is the goal of implementing policies that could attract and retain people, businesses, and investment. The City of Saint John, like other cities in Canada, has adopted a population growth plan but, unfortunately, population in Saint John is declining and the growth in the assessment base has slowed dramatically in recent years. More specifically, over the past five years, the growth in the tax base in Saint John has trailed the growth in its neighbouring municipalities and by a fairly large percentage. Part of the explanation lies in the much higher tax rate in Saint John. This begs the question of what can the City do with its property tax that would help to meet its growth objectives. The short answer is that there may not be much that it can do on its own because the municipal property tax is highly controlled by provincial legislation and any change would require provincial approval. As noted throughout this report, the main role for property taxes is to fund those services that provide collective benefits to the local community. Municipal services are funded largely from local taxes and user fees. As long as revenues are set to cover costs (municipalities cannot budget for operating deficits), it is the cost of services that will largely determine municipal tax rates and user fees. At least part of the explanation for the higher tax rate in Saint John is that it provides services that benefit neighbouring communities. This problem was recognized in 2008 by Commissioner Finn's Report on the future of local government in New Brunswick where he noted that population growth was occurring outside the municipal boundaries of the larger centres in the province and that tax rates were increasing in the larger centres to pay for services used by people 55 WIN in neighbouring communities. This phenomenon is not uncommon for urban -centered regions in general: research in the U.S. has come up with the same conclusion (Chernick, 2002; Chernick and Tkacheva, 2002) Addressing the problem of service spillovers in the Saint John region where each municipality has its own independent governing structure is not something that can be resolved with changes to the property tax. Indeed, this issue was identified in the Finn Report where he recommended the creation of regional service districts and the amalgamation of municipalities. The creation of larger municipalities and districts could put all of the beneficiaries of local services within the boundaries of the municipality. Another option would be to levy taxes that capture the benefits of services used by commuters and visitors (see Kitchen and Slack, 2009, for more detail). The property tax is not an effective tax to pay for services that are used by non-residents (such as roads and police and fire protection). Additional taxes, such as a payroll tax (an income tax that is deducted at place of work and piggybacked onto the provincial income tax ) and excise taxes (for example, a tax on fuel or hotel occupancy) would help capture the cost of services used by non-residents (Kitchen and Slack, 2016). Saint John currently has a voluntary hotel tax but the revenues are dedicated to tourism and not used to pay for local services. To minimize cross border impacts, these taxes should be levied on a regional basis. All of these changes, however, would require provincial approval and support. The City does have the power to make a very few modifications, in particular substituting some user fees for property taxes (Kitchen and Slack, 2009). Not only would an increase in user fees allow the city to lower property taxes, it would give people an understanding of what the services they are using actually cost and could result in a reduction in the demand for services. Other than substituting user fees for property taxes, however, there is not much that local officials can do with the property tax to encourage growth. Although the city may provide some tax incentives to new businesses, it is unclear whether property tax incentives actually play a significant or long lasting role in attracting business and fostering growth (see sections 5.4 and 5.5 above). Moreover, the foregone revenues have to be made up by existing taxpayers which many regard as unfair. In the current governance and property tax structure, tax incentives may not be doing anything more than transferring growth from one municipality to another municipality rather than increasing growth overall. 56 KIYA There are a few things that the province could do to improve the fairness and equity of the property tax and these have been flagged in this report. For example, they could restrict the use of exemptions; include machinery and equipment in the assessment base for industrial properties; and, perhaps most significantly, vacate provincial property taxes leaving more room for municipal property taxes (Kitchen and Slack, 2009; Finn, 2008). These suggestions may be a tall order, but they could help municipalities that are struggling with stagnant growth and a slow growing local tax base. 7. Conclusions This report has evaluated the fairness and equity of the property tax in the City of Saint John and suggested changes to improve the tax. It also explored whether changes can be made to stimulate economic growth and promote fiscal sustainability. Overall, there is not much that the city can do on its own to improve the property tax because property taxation is governed by provincial legislation. The city does have the power to make some changes in municipal finance, however, such as substituting user fees for property taxes e.g. for solid waste collection and disposal. User fees not only permit the city to lower property taxes, they give users an indication of how much services cost and may result in reduced demand for those services. Ten specific questions were addressed in the report with the following conclusions: 1. The over -taxation of business properties by municipalities in New Brunswick, which is set by the Province to be 1.5 times the residential rate, is much less than in most Canadian jurisdictions and should not be increased further. 2. Property tax differentials between the City of Saint John and the surrounding municipalities and Local Service Districts likely have an impact on decisions about whether to locate in Saint John or elsewhere in the region. Part of the reason for the differential is that the city is providing services to neighbouring residents without being reimbursed for the cost. This problem is a governance problem, however, and cannot be resolved by changes to the property tax. 3. Property tax incentives have a poor record in promoting economic development and have to be paid for by existing residents and businesses. They are often wasted on firms that would have located there anyway. W91-13 57 4. Including machinery and equipment in the property tax base (for example, for oil and gas refineries) would result in fairer treatment of all manufacturing and processing plants and reduce the distortion in production techniques created by exempting one factor of production. If, by doing so, there is a concern about the impact on economic activity, the non-residential property tax rate could be lowered. 5. Property tax exemptions are unfair and should be removed unless there is a sound public policy reason for the exemption. At the very least, exempt properties should be assessed on the same basis as non-exempt properties so that the foregone tax revenue is made explicit. 6. It is important to protect taxpayers who cannot afford property taxes through tax deferrals and tax credit programs, as is currently done in New Brunswick. 7. A special tax on vacant land is not needed because vacant land is already taxed at its highest and best use. Moreover, the services received by vacant land are less than for land that is occupied. 8. An assessment freeze creates serious inequities in the property tax system and, where implemented, should be removed as quickly as possible. The longer a freeze is in place, the more difficult it is to remove. 9. Progressive property taxes are not a good idea because redistribution is not an appropriate role for local governments. 10. The property tax is a good tax for local government but not necessarily appropriate to pay for the redistributive services provided by the provincial government, such as education and health care. The Province should gradually get out of levying property taxes. This would improve accountability and transparency and provide tax room for Saint John and other municipalities. W916.1 O N 0 N t y �" �C' U U S•, � v� v� U O x, Q. cd � O cd O `�", n7=3O � cd � � U • Q U O U cn � � U O yy .y_ U U U 0 E O O U O ycl O 75 `oo� a i oo75 ee o • cli � � v v bq cd O ^C cd v 4� N '� Cd tj) cd 4 cd N ct vi Cj o U Cid •� O Cd SU. F- U —CJy OU a O O O cd +. 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This revenue is not earmarked specifically for education, however. The School Act allows regional administrative units to levy and collect a local tax for supplementary education programs (upon approval by the Ministry and a plebiscite), but this power has not yet been used. Nova Scotia Public schools are financed from the general revenues of the province and municipalities. The provincial share of school financing comes from the province's general revenues. The municipal portion comes from a uniform property tax rate set by the province plus the Halifax Regional Municipality has discretion to levy an additional property tax. New All public education costs are funded from general provincial revenues. Included in these Brunswick revenues is a provincial property tax on all properties. The property tax is not earmarked specifically for schools, however. Legislative provision for using local property taxes to raise revenue for supplementary programs is permitted but seldom used. Quebec The province funds about eighty-five percent of all public school costs from general revenues and school boards fund the remaining 15 percent from a local property tax levy. There is no provincial property tax. Local school boards must levy a property tax but it cannot exceed $0.35 per $100 of standardized assessment unless referendum approval is obtained from the taxpayers within the school district. No such referendum has ever been held. Local property taxes are used to finance the maintenance of school facilities. The province sets the property tax revenue to be collected by each board (or grouping of school boards on the island of Montreal) as follows: it sets the dollar amount per school board (set annually by Ministry of Education) plus per student dollar amount times the number of students. Ontario Education is 100% provincially funded. Part of this funding comes from a property tax. The province sets the property tax rate (residential) or amount to be raised (commercial and industrial) for education. The tax rate on residential/farm and multi -residential properties is uniform across the province. The province sets the amount that is to be raised by the tax on commercial and industrial properties. Manitoba Provincial funding comes from the general revenues of the province and from locally generated school board revenues (almost entirely from property taxes on both non-residential and residential property). Local school boards have the power to set local property tax rates and this power is used extensively. Saskatchewan The province sets a uniform property tax rate for each of four major property classes - residential, commercial/industrial, agricultural, and resource. Alberta The province is responsible for funding education. About half of its funding requirement is supported from general provincial revenues and the remainder from a uniform province -wide 65 Ph 1.1 •. PON mill rate on residential property and a higher uniform rate on commercial/industrial property. Municipalities collect the tax and remit it to the province. School boards may also seek elector approval to levy an additional property tax to a maximum of 3 percent of their budget. In 2016-17, the uniform mill rate is $2.48 per $1000 of equalized assessment for residential properties and farmlands and $3.90 per $1000 of equalized assessment for non- residential properties. British Schools are funded entirely by provincial grants generated from provincial government Columbia revenue that includes provincially imposed non-residential and residential property taxes. Everyone within a school district pays the same residential tax rate, but the province varies the rate between districts in order to moderate the effects of differences in assessed values across the provinces. If school boards wish to spend more than their provincial grant, the board must seek local taxpayer approval through a referendum for additional expenditures to be financed through local property taxes. This has never been used, however. Source: Same as Table 1. •. PON Appendix Table A-3: Frequency of Assessment Newfoundland & Labrador Three year cycle with the lag in assessed values being twenty-two months. Prince Edward Island In 2009, the provincial government froze all residential assessment at 2007 values until time of sale. Beginning in 2010, the property assessment freeze was replaced by annual increases based on the change in the CPI to a maximum annual increase of 5 percent. Commercial and industrial property is assessed annually. Nova Scotia Annually with each year's assessed value based on the property's value two years prior. New Brunswick Annually as of Jan. 1 each year. Quebec Three year cycle with the assessed value being finalized before March 1st (for appeals) of the first year of the cycle. Ontario Four year cycle. Manitoba Four year cycle Saskatchewan Four year cycle Alberta Annual British Columbia Annual Source: Same as Table 1. W PARI Appendix Table A-4: Property Assessment and Taxation of Machinery and Equipment Newfoundland Machinery and equipment are subject to the municipal property tax. and Labrador Prince Edward Only machinery, equipment, and other fixtures that provide services to the Island buildings are liable for property taxation. Nova Scotia All machinery and equipment are excluded from the property tax base. New Brunswick Machinery and equipment providing services to buildings are assessed. All machinery, equipment, apparatus and installations other than those for providing services to buildings are exempt from assessment. Quebec Machinery and equipment are assessed and taxed Ontario All machinery and equipment used for manufacturing, and the foundations upon which they rest are exempt from taxation. However, any item of machinery and equipment affixed to the land that is not used in the manufacturing process, including items such as heating, lighting and cooling systems, are taxable. Manitoba Machinery and equipment are taxed. Saskatchewan Machinery and equipment are assessed as industrial property and taxed using provincially set regulated rates. Both the municipal property tax and provincial property tax are levied. Alberta Machinery and equipment (M&E) is assessed for municipal tax purposes. M&E includes components or equipment within commercial and industrial properties where manufacturing or processing occurs. These properties include refineries, chemical plants, pulp and paper plants, upgraders, food processing facilities, grain and fertilizer handling facilities, bakeries and butcher shops. Within these sites, M&E property includes such things as storage tanks, separators, fuel gas scrubbers, compressors, chemical injectors, metering and analysis equipment, ovens, mixers, grinders, and other equipment and components. Land and buildings are assessed at full market value; whereas, M&E is assessed at 77% of its assessed value. The municipal tax is levied on M&E but the provincial education tax is not levied on M&E. British Columbia Machinery and equipment are assessed as major industrial or light industrial and taxed using regulated rates set by the province. Both municipal and education property taxes are levied. • : Ph &61 Appendix Table A-5: Property Tax and Assessment Treatment of Linear Properties Newfoundland/ • Utilities pay a tax of 2.5 percent of revenues collected in the municipality Labrador Nova Scotia • Transmission lines and distribution assets for telecommunication, cable and electric power systems are not assessed; instead, property owners pay taxes based on special legislation. • Land and buildings are valued and taxed on commercial tax rates. • According to the existing Nova Scotia special legislation, Bell Aliant pays 4 percent of gross subscribers exchange service revenues to each municipality. • Nova Scotia Power Inc. (NSPI) makes a grant in lieu of taxes to the Province with a portion of the grant distributed among municipalities based on the assessed value of NSPI property. • Low pressure natural gas distribution pipelines are exempt from taxation based on assessment, and are taxed based on the amount of gross distribution revenues raised in each municipality (4 percent for 2014-2018 and 5 percent thereafter). • High pressure distribution pipeline or pressure reduction stations are liable for assessment (value determined by pipe size, length, depreciation for high pressure distribution pipelines and value on actual cost less depreciation for pressure reduction station) and taxed on commercial rate, with the exception of serving single end-user, in which case taxation is based on 8% of gross revenue. • Main railway operating rights of way are exempt from taxation. New • Pipelines are assessed on a cost per sq. ft. that varies by size of pipe. Brunswick . Wire, cable, pipe, pole, tower, installation equipment, or structures other than buildings, forming part of a television broadcasting, transmission or rebroadcasting or retransmission system including a cable television system, a telephone, an electric light, a telegraph or a telecommunication system or any electric power distribution system, including the New Brunswick Power Corporation are assessed as non-residential property, • Railway rights of way are valued as a rate per mile. This is based on the sales of comparable vacant land. The rate varies across the province. Quebec • Operators of electricity, gas or telecommunication networks pay a "public service tax" to the provincial government. The tax is levied, at variable rates, on the net value of assets. The province does not transfer revenues from these properties to municipalities. Ontario • Real estate (land and buildings) holdings for telephone, cable, municipal electric utilities and gas companies are assessed and taxed as commercial or industrial properties. • Crown agency utilities are fully taxable but make payments in lieu of taxes. • Utility poles, transmission towers, wires, and underground cables are not valued and taxed. • Underground pipes for natural gas distribution are taxed on a per metre (length) basis. • "Rights of ways" owned by utilities and railways are taxed at a fixed rate •s PIXII 70 221 per acre — the province sets the rate for nine geographic regions and indexes it to average provincial commercial tax rate changes. Manitoba • Railway roadways are assessed on the basis of gross tonnes of freight per kilometre. • Gas distribution systems are assessed at market values — based on values of abutting properties. • Pipeline assessment is based on the outside diameter of the pipe. Saskatchewan • Railway "rights of way" and pipelines are taxed on 100 percent of assessed values. Assessed values are estimated from values of abutting properties. Alberta • Assessment of railway "right-of-way" property is a fixed dollar amount per kilometre based on the annual tonnage transported on the "right-of- way." Each rail company must annually report the type and length of line in each municipality to the local assessor. Tax rates are set by the province. • Linear property is assessed (based on values of abutting properties) and tax rates are set by the province — properties include oil and gas wells; pipelines to transport petroleum products; electric power systems (generation, transmission and distribution); and telecommunication systems and cable TV. Each municipality taxes the assessed value of properties within its jurisdiction. British Electricity, oil, natural gas and telecommunications pay a gross receipts Columbia tax (1 percent) instead of aproperty tax. • Railway "rights of ways" are assessed on the basis of weighted average assessed values for an area as approximated by assessed values of abutting properties. Source: Same as Table 1. 70 221 N N N �� ,moo �.a `� � p �•�" �� ° a,� o U oci N u U cn yCq a U 0 00 U on ° N ocl -0-0 � � U 'C�' 4� �f.' U U Q., f.' "� � � ,�' � � 64 � cn � r � O • � l � y m Q s N O ° bq70 bA v p cd U 0 N O cl Cj Fb.m bq 0 � 00 cd 4 cd bn bA ^, U C yN y 'rj p O DC p N N O c� y cd cd Cj u 'M Q o m s� o O O O C15N O O p O O U DC U n N 4N Ukn U Q bn y n v +. O ^� m o 64 "0 N� Q„ a 0. U ci N 0 �' U rj N a v O 64 p � 0 O bA z U O cn � U � U � �•' s.. � Q.' O v' � � ,�.' � � �, O y �' rn o..o o o p �, tb o CJo•Q. -0 � CJ .72 � � ooi a, ' � � o p • � cn p • � �, E-C,j ci o o o cn o ooi o rGoq a s cq o o w w o y U 4. �s o o� o� o� ct Cc aU Q. 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O U S O U ¢, U O N C) N N Appendix Tables B Appendix Table B-1: Tax ratios in Municipalities with Two Property Tax Rates, 2015 City Commercial/Industrial Tax Ratio Saint John 1.5000 Fredericton 1.5000 Moncton 1.5000 Sydney (Cape Breton Regional Municipality)* 2.4942 St. John's, Newfoundland 3.2346 Strathcona County, Alberta 1.9842 *Each of the municipalities in CBRM sets its own tax rates; only Sydney appears in this table Appendix Table B-2: Tax ratios for Regina, 2015 Property Class Tax Ratio Commercial and industrial 1.5123 Golf courses 0.9827 Agriculture 1.5123 Note: Residential which equals 1.00 includes condominiums and multi -family residential Appendix Table B-3: Tax ratios for Prince George, BC, 2015 Property Class Tax Ratio Commercial 2.0509 Major Industry 6.0228 Light Industry 3.2980 Utilities 5.1272 Farm 0.6631 Managed Forest 1.0000 Recreational Non -Profit 1.0000 Supportive Housing 1.0000 fPO►z! 73 Appendix Table B-4: Tax Ratios for Three Ontario Municipalities, 2015 - Sarnia, Sault Ste. Marie, Greater Sudbury (Municipal Only) Property Class Sarnia Sault Ste. Marie Greater Sudbury Multi -Residential 2.4000 1.2943 2.1845 New Multi- Residential 1.0000 1.2943 1.0000 Farmland 0.2500 0.2500 0.2500 Managed Forest 0.2500 0.2500 0.2500 Commercial 1.6271 2.1404 2.1397 Parking Lot 1.0912 1.5825 2.1397 Office Building 1.5358 3.1262 2.1397 Shopping Centre 2.0835 2.2722 2.1397 Industrial 2.0476 2.9624 3.1038 Large Industrial 3.0035 5.2614 3.5180 Pipelines 1.3424 2.0056 2.1715 Notes: 1. Optional property classes appear in italics. Professional sports facilities are another optional class but is not used in any of these three cities. 2. Provincial legislation requires a tax ratio of 0.25 on farmland and managed forests. 3. Vacant commercial land is taxed at 70 percent of the commercial tax rate. Municipalities are now permitted to eliminate the vacancy rebate for both commercial and industrial properties in Ontario. 4. Vacant industrial land is taxed at 65 percent of the industrial tax rate. 5. Farmland awaiting development is taxed differently depending on the nature of the development, e.g. residential, commercial, industrial, etc. and the phase of development. 74 pati References Auld, Douglas and Harry Kitchen (2006) Financing Education and Training in Canada, Second Edition, Canadian Tax Foundation, Toronto, Ontario. BC Ministry of Community, Sport and Cultural Development (2012). Municipal Revenue Sources Review: Inter jurisdictional Comparison of Assessment Systems. Bird, Richard, M. and Enid Slack (2017 forthcoming) Financing Infrastructure: Who Should pay? (Toronto: McGill -Queen's University Press for the Institute on Municipal Finance and Governance). Bird, Richard, M. and Enid Slack (2014). "Local Taxes and Local Expenditures in Developing Countries: Strengthening the Wicksellian Connection," Public Administration and Development, Vol. 34, No. 5, pp. 359-369. Bird, Richard M. and Enid Slack (eds.) (2004) International Handbook of Land and Property Taxation, (Northampton, Mass: Edward, Elgar Publishing Limited) Bird, Richard M., Enid Slack, and Almos Tassonyi (2012), A Tale of Two Property Taxes: Property Tax Reform in Ontario, Lincoln Institute of Land Policy, Mass, US. Breton, Albert (1996). Competitive Governments (Cambridge: Cambridge University Press). Chernick, Howard (2002) "The Effect of Commuters on the Fiscal Costs of the District of Columbia", mimeograph, 36 pages. Chernick, Howard and Olesya Tkacheva (2002) "The Commuter Tax and the Fiscal Cost of Commuters in New York City," State Tax Notes, 25 (6): 451-6. Conger, Brian and Bev Dahlby (2015) Taxation of Machinery and Equipment and Linear Property in Alberta", Canadian Tax Journal, 63:2, 487-99. Dalehite, E. G., Mikesell, J. L., & Zorn, C. K. (2005). "Variations in Property Tax Abatement Programs among States", Economic Development Quarterly, 19, 157-73. England, R. W., and R. D. Mohr (2002) Property taxation and current use assessment: A theoretical note. Working Paper. Cambridge, MA: Lincoln Institute of Land Policy. Glaeser, Edward (2002) Comment on'Tax Incentives and the City'. Brookings -Wharton Papers on Urban Affairs, 115-24. Fenn, Michael and Harry Kitchen (2016) "Bringing sustainability to Ontario's water systems: A quarter-century of progress, with much left to do", a study for the Ontario Sewer and Watermain Construction Association, available at www.OSWCA.org. 75 NOU Finn, Jean -Guy (2008) Building Stronger Local Governments and Regions, An Action Plan for the Future ofLocal Governance in New Brunswick, The Report of the Commissioner on the Future of Local Governance Haveman, Mark, and Terri A. Sexton (2008) Property Tax Assessment Limits: Lessons from Thirty Years of Experience. Cambridge, Mass.: Lincoln Institute of Land Policy. Kenyon, Daphne, A., Adam H. Langley, A., and B.P. Paquin, B. (2012). Property Tax Incentive Pitfalls. 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Available at www.pvsc.ca/en/home/partners/municipal-property-taxation-in-nova-scofa.aspx Kitchen, Harry and Enid Slack (2012) "Property Taxes and Competitiveness in British Columbia", a report prepared for the BC Expert Panel on Business Tax Competitiveness, available at www.fin.gov.bc.ca/docs/expert panel_ submissions/Business%20Property%20TaxCompetitivene ss%20Report.pdf Kitchen, Harry and Enid Slack (2009) "Options for Financing Services and Infrastructure in the City of Saint John ", a report prepared for the City of Saint John. Kitchen, Harry and Almos Tassonyi (2012) "Municipal taxes and user fees", in Heather Kerr, Ken McKenzie and Jack Mintz (eds.), Tax Policy in Canada, Canadian Tax Foundation, Toronto, ch. 9. Maurer, R., & Paugam, A. (2000). Reform toward Ad Valorem Property Tax in Transition Economies: Fiscal and Land Use Benefits Land and Real Estate Initiative. Washington, DC: World Bank. 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Wagaman, Andrew (2017) " GASB 77:Revealing the Cost of Property Tax Incentives for Business", Land Lines, July 2017. Available at www.lincolninst.edu/publications/issues/land- lines-july-2017 Wassmer, Robert (2007) "The Increasing Use of Property Tax Abatement as a Means of Promoting Sub -National Economic Activity in the United States." Sacramento, CA: California State University. Youngman, Joan (2016) A Good Tax: Legal and Policy Issues for the Property Tax in the United States. Cambridge, Mass.: Lincoln Institute of Land Policy. Youngman, Joan (2005) Taxing and Untaxing Land: Current Use Assessment of Farmland State Iax Notes, 37(10). Youngman, Joan (1999) "The Hardest Challenge for Value -Based Property Taxes: Part IL" State Tax Notes. Zorn, Kurt (2013) Establishing a Tax Rate. In A Primer on Property Tax Administration and Policy, First Edition, edited by William J. McCluskey, Gary C. Cornia and Lawrence C. Walters, John Wiley & Sons Ltd., ch. 5. 77 PIM] faint John Arts Centre 017 ABC Presentation to Saint John Common Council ie Saint John Arts Centre is a multidisciplinary venue dedicated to servi e community through the arts, educational and cultural programming ;cessible to all. The Saint John Arts Centre is a non-profit organization With a volunteer Board of Directors (11 members maximum) hair — Bob Boyce, Vice Chair - Christine Gilliland, -reasurer - Ian Stead, Secretary - Janice MacMillan )irectors - Pat Joas, Jill Whitehouse, Gary A. Davis, and Leslie Oland 3ernard Cormier is Ex Officio Board members can serve a maximum of two - three year terms. Board members are not appointed, but are selected by our Board hrough the Nomination Committee, who seek out interested ndividuals from the Greater Saint John area. The Board of Directors develops the mandate that provides broad iirection for organizational decision-making and the activities of the krts Centre. m )ur full time staff: kndrew Kierstead — Executive Director flora Bowes — Business Administrator, (elly Cunningham — Promotions and Events Coordinator _arry Morin — Building Maintenance. )ntrary to popular belief, we are not City of Saint John employees. ks a community Arts Centre we also rely on Volunteers. In 2016 there were a tal of 572 man-hours volunteered. n partnership with the City of Saint John, which owns the Carnegie building, he Saint John Arts Centre provides day-to-day maintenance to ensure a warr and welcoming experience for those who visit. kny major alterations or improvements to the building are coordinated througl he Facility Management Dept in City Hall. We also help to monitor any issues vvith the condition of the exterior of the building. (The sandstone is starting to ;rumble and is in need of repairs.) Recent improvements undertaken by the Arts Centre in 2017 include Bi -fold Doors in the Frazee Gallery. The installation of six exterior banner signs. Scheduled for September. r • ;11111 Pill i• ilii • • Saint John Arts Centre exhibits a wide variety of artworks in five galleries, six times a year. Each exhibition is seven weeks long. • One of these galleries, the City Gallery, is managed by Bernard Cormier who is the Cultural Affairs Office of the City of Saint John. • There is no admission charge to enter the Arts Centre (Donations only) Attendance is about 10,000 a year with between 200-400 attending our exhibition openings. Our mandate ensures that our exhibitions feature both professional and emerging artists. • We receive applications to exhibit from artists from New Brunswick, the Maritimes, from across Canada and internationally. • We offer artists rights fee to each exhibiting artist which helps to pay for transportation and other costs associated with exhibiting. lint John Arts Centre provides workshops for people of all ages 2016 we offered: 7 adult workshops with 778 attending. youth workshops with 360 attending children's workshops with 515 attending e employ local artists who teach the workshops. have dedicated workshop studios and offer courses in: Ceramics, Printmaki Animation. ar children's workshops continue to be popular throughout the year. In the sur offered Art with Maggie and our week long SPaRT program which includes vi; 'he Aquatic Centre, NB Museum and the SJ Free Public Library. its summer we offered an adult workshop called: Classic Figure Drawing. The ructor is NB born Melissa Kennedy who is a graduate and instructor at the -ence Academy of Art in Florence Italy. III 111111111� 1111111111liq 11111111 111 1' , 7. ,TF[M aint John Arts Centre is developing a reputation as a unique, attractive and Drdable venue for such events as, weddings, receptions, business functions icerts. 12016, we hosted 60 rentals with 2823 people attending. lur rental clients are a broad cross-section of local, provincial and federal lanizations and we are constantly looking for ways to improve to meet their ids. ✓e also rent our ceramic and printmaking studios to qualified artists who are a .ase these facilities to create works of art that will be for sale. -he Saint John Arts Centre continues partnering with a number of organizatioi ich as Symphony NB, and the Early Music Festival to provide a variety of incerts throughout the year. 'artnering with Early Music Festival, the Arts Centre played host to an eight eek, noon time classical music series called Summer Classics Series. We ha\ �t completed our 2nd year. Sponsors for this series were, Emera New 'unswick, The Province of NB, The City of Saint John and the SJ Community )undation. ?017 was the final year for Music in Millidgeville at the Anglican Church in illidgeville. The Saint John Arts Centre and Province of NB have sponsored th immunity program. It is hoped that a new location for this event will be found. Fhe Cool Chicks and Ugly Doclings performed a benefit concert for the Arts 1.ntre this year. Ne are the host venue to the Early Music Festival's, Baroque Festival each -he Saint John Arts Centre is proud to be a Regional Facility serving the immunities of Grand Bay -Westfield, the City of Saint John, the Town of Rothe: id the Town of Quispamsis. Ne meet with the Regional Facility Commission twice a year (May and �ptember) and provide updates on our finances and events at the Arts Centre Ne presented our 2018 budget, ($232,840) to the Regional Facilities )mmission for approval on September 7 meeting. We are requesting an )erational grant of $125,000. -he remaining balance of our revenue is generated from money generated rough workshops, facility rentals, project grants, donations, membership, ,hibition sales, and our annual fundraiser. Over the last five years we have improved how we operate, provide services e public, and present budgetary reports to Regional Facilities Commission. TI irtnership we have with all the municipalities in Greater Saint John Area is ked it success. 18 Budget avenue Grants - Operating — Regional Facilities...........................125,000 - Operating — Province of NB.................................12,000 - Summer Student Work Project................................6325 -Administration of Grants (25%) ...............................2000 - ArtsVest (matching grant program)..........................4000 Workshops.................................................................. 26,000 Rentals.......................................................................27, 000 Donations, Fundraising, Membership & Artists Rights Fee.....24,500 Exhibitor Sales, Reception and Openings.............................6000 Interest Earned..................................................................15 Totals cpenses 232,840 Grants - Wages and Benefits..........................................157,100 - Summer Student Work Project.................................7550 '. - Summer Classics Series........................................2500 sWorkshops....................................................................15,000 Rentals...........................................................................5000 i Donations, Fundraising, Membership & Artists Rights Fee......... 7500 > Artists Rights Fees............................................................7300 Exhibitor Sales, Reception and Openings..............................5000 Advertising and Promotion ..................................................7000 - IT (Website).......................................................1000 Furniture and Equipment ....................................................1400 Office (printer toner and postage).........................................2000 '. Repairs, Maintenance and Cleaning......................................3750 s Professional Fees (Teed Saunders Doyle)..............................2800 Insurance........................................................................2600 i Telephone and Internet ......................................................2400 > Bank Charges...................................................................325 > Debit Machine and E-commerce..........................................2615 Totals 232,840 The SJAC is poised to meet or exceed our expected targets in all the services we provide. This is due to the hard work of the staff and the positive reputation we have with the public. As a Community Arts Centre, we are constantly changing and adapting to meet those needs of the community we serve. immary # CommonCouncil Fhe Saint John Arts Centre is very much alive and a vibrant part of the krts Community not just in the Greater Saint John Area, but in this part )f the province. Ne hope that Council agrees that there is good value in continued unding of the Saint John Arts Centre, through the Greater Saint John Regional Facilities Commission. would like to offer an open invitation to give individual tours of the Arts .,entre to the Mayor and members of Common Council at their ;onvenience. BY-LAW NO. M-12 A Law to Amend A By-law respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John ARRETE NO M-12 Arrete Modifiant I'Arrete portant rdglementation des activites des proprietaires et exploitants de voitures-taxis et de ]'octroi de permis aux proprietaires et exploitants de taxis dans The City of Saint John Be it enacted by the Common Council of Le conseil communal de The City of Saint The City of Saint John as follows: John ddcrdte ce qui suit: A By-law of The City of Saint John entitled "A By-law respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John", enacted on the 22"d day of June, A.D. 2015, is hereby amended as follows: The definition of "Taxicab", as set out i section 2 of this By-law, is amended by deleting the words "or trolley" in both instances and adding the words immediately after the first reference to "bus" "(as defined in section 1 of the Motor Vehicle Act)". 2. Section 9 of this By-law is amended by deleting the words "(m) Not have the roof sign of his Taxicab illuminated unless the Taxicab is at that time available for hire" and replacing them with the words "(m) At all times during which a Taxicab is available for hire, except for when a Taxicab is occupied by a passenger or passengers for which a Contract Rate or Hourly Rate fare is being paid pursuant to the terms of this By-law, the roof light shall be on which shall signify its availability for hire 3. Section 9 of this By-law is further amended by adding immediately after subsection 9(o) the words "(p) In all circumstances in which a Taxicab Meter must be used to calculate a fare pursuant to the provisions of this By-law, the Taxicab Meter shall not Par les prdsentes, l'arrete de The City of Saint John intitule << 1'Arrete portant rdglcmentation des activitds des proprietaires et exploitants de voitures-taxis et de ]'octroi de permis aux proprietaires et exploitants de taxis dans The City of Saint John >>, ddcrdtd le 22 juin 2015, est modifie comme suit: 1. La definition de << taxi >>, tel que prdvu A ]'article 2 du present ARRETE, est modifide par 1'adjonction des mots o (tel que ddfmi a ]'article l de la Loi sur les vehicules a nroteur) » immediatement apres la premiere reference a « autobus >>. 2. L'article 9 du present ARRETE est modifie par la suppression des mots (<m) s'abstient d'allumer 1'enseigne lumineuse sur le toit de son TAXI a moins que le TAXI ne soit disponible pour le transport de voyageurs » et leur replacement par les mots « m) en tout temps lorsque le TAXI est disponible pour le transport de voyageurs, sauf lorsqu'un TAXI est occupe par un ou des passagers pour lequel ou lesquels le prix d'une course determine par TARIF CONTRACTUEL ou par TARIF HORAIRE est pays en vertu des modalitds du prdsent ARRETE, 1'enseigne lumineuse sur le toit est allumde, ce qui indique qu'il est disponible pour le transport des voyageurs )>. 3. L'article 9 du prdsent ARRETE est dgalement modifie par 1'adjonction immddiatement apres le paragraphe 9o) des mots (< p) Dans toutes les circonstances oiz un TAXIMETRE doit etre utihsd pour calculer le prix d'une course en vertu des be started until all passengers are inside the Taxicab and all doors of the Taxicab are closed and shall be stopped immediately upon the Taxicab having come to a complete stop at the destination of the passenger or passengers". 4. Section 9 of this By-law is further amended by adding immediately after subsection 9(p) the words "(q) Shall, in no circumstances in which a Taxicab Meter must be used to calculate a fare pursuant to the provisions of this By-law, charge a passenger or passengers a fare that is either higher or lower than the fare which has been calculated using the Taxicab Meter" and 5. Section 9 of this By-law is further amended by adding immediately after subsection 9(q) the words "(r) Shall, in no circumstances, tamper or otherwise interfere with the Taxicab Inspector's calibration of a Taxicab Meter or break, damage or otherwise interfere with the seal affixed to the Taxicab Meter by the Taxicab Inspector at the time of inspection or calibration. Any broken or damaged seal on a Taxicab Meter shall be prima facie evidence regarding whether the Taxicab Meter has been tampered or otherwise interfered with. Notwithstanding the foregoing, in any circumstance where the seal affixed to the Taxicab Meter by the Taxicab Inspector at the time of inspection or calibration becomes damaged or broken by accident or inadvertence on the part of a driver or passenger or as a consequence of wear and tear over time, which seal should be examined daily by the Taxicab Operator, the Taxicab Operator is under a positive obligation to immediately notify the Taxicab Inspector so that a follow-up inspection is performed and, if necessary, a recalibration of the Taxicab Meter is carried out by the Taxicab Inspector in order to protect the integrity of the Taxicab Meter and passengers." dispositions du present ARRETE, le TAXIMETRE nest pas ddmarre avant que tous les passagers soient A 1'int6rieur du TAXI et que toutes les portes du TAXI soient fermdes et est immediatement arrete lorsque le TAXI est immobilise une fois que le ou les passagers sont arrives A destination ». 4. L'article 9 du present ARRETE est dgalement modifie par 1'adjonction immediatement apres le paragraphe 9p) des mots «q) en aucun cas, lorsqu'un TAXIMETRE doit est utilise pour calculer le prix d'une course en vertu des dispositions du prdsent ARRETE, n'impose au passager ou aux passagers un prix qui est superieur ou inferieur au prix qui a dtd calcule par le TAXIMETRE », et 5. L'article 9 du prdsent ARRETE est egalement modifie par Padjonction immediatement apres le paragraphe 9q) des mots «r) en aucun cas, n'altere ou autrement ne porte atteinte an calibrage d'un TAXIMETRE effectue par 1'INSPECTEUR DES TAXIS, ou ne brise ou n'endommage ou autrement ne porte atteinte au sceau appose au TAXIMETRE par I'INSPECTEUR DES TAXIS lors de ]'inspection ou du calibrage. Tout sceau brise ou endommage constituc une preuve prima facie que le TAXIMETRE a ete altere ou qu'on y a porte atteinte. Nonobstant ce qui precede, quelles que soient les circonstances ou le sceau apposd au TAXIMETRE par 1'INSPECTEUR DES TAXIS, au moment de ]'inspection ou du calibrage, devient endommage ou brise par accident ou par inadvertance de ]a part d'un conducteur ou d'un passager ou en consdquence de l'usure normale, ledit sceau qui devrait etre examine quotidiennement par I'EXPLOITANT DE T.VXI, ]'EXPLOITANT DE TAXI est dans I'obligation positive d'aviser immediatement 1'INSPECTEUR DES TAXIS afin qu'une inspection de suivi puisse etre 6. Subsection 10(1) of this By-law is amended by adding to paragraph 10(1)(g) the words "The Taxicab Meter shall be connected at all times to the roof sign of the Taxicab in which it is installed in such a way that when the Taxicab Meter is in use, the roof sign shall not be illuminated and when the Taxicab Meter is not in use, the roof sign shall be illuminated. Whether the roof sign is or is not illuminated while a Taxicab is occupied by a passenger or passengers shall be prima .facie evidence regarding whether the Taxicab Meter is or is not in use at any particular time. At all times, the illuminated roof sign shall be free of obstructions and maintained in good working order by the Taxicab Owner, complete with a functioning/operable light", with such amendment taking effect on May 3151, 2018. 7. Subsection 12(1) of this By-law is amended by adding to paragraph 12(1)(b) the words ", is, at all times, in safe working order, which shall include but not be limited to tires with a tread depth not less than that stipulated under the Motor Vehicle Act or its corresponding Regulations. 8. Schedule "B" to this By-law is amended by deleting the words "Contract Rate. By Taxicab Meter with contract discount by arrangement between the Taxicab Owner/Taxicab Operator and client " and replacing them with the words "Contract Rate: By prior written contractual arrangement between the Taxicab Owner and any business or corporation, provided that: (1) the existence of a written contractual arrangement between the Taxicab Owner and any business or corporation seeking to have the benefit of a Contract Rate is first eN idenced by the P►z191 effectuee et, si necessaire, un nouveau calibrage du TAXINIETRE Boit effectue par 1'INSPECTEUR DES TAXIS afin de prot6ger l'int6grit6 du TAXINIETRE et des passagers. �) 6. Le paragraphe 10(1) du present ARRETE est modifi6 par Padjonction A 1'alin6a 10(1)g) des mots « Le TAXIMETRE est branche en tout temps a 1'enseigne lumineuse sur le toit du TAXI dans lequel it est place, d'une maniere a ce que lorsque le TAXIMETRE est en service, 1'enscigne lumineuse sur le toit soit eteinte, et lorsqu'il n'est pas en service, Penseigne lumineuse sur le toit soit allum6e. Que Penseigne lumineuse sur le toit soit allumee ou eteinte lorsqu'un on des passagers se trouvent dans le TAXI constitue une preuve prima facie selon laquelle, A quelque moment que ce soit, le TAXIMETRE est ou n'est pas en service. En tout temps, 1'enseigne lumineuse sur le toit est libre de toute obstruction et elle est gard6e en bon Etat de fonctionnement par le PROPRIETAIRE DE TAXI, avec une lumiere utilisable qui fonctionne o, Iadite modification entrera en vigueur le 31 mai 2018. 7. Le paragraphe 12(1) du pr6sent ANTE est modifi6 par Padjonction a 1'alin6a 12(1)b) des mots <<, est, en tout temps, en bon Etat de fonctionnement, ce qui inclut sans s'y limiter les pneus dont la profondeur de la rainure n'est pas inferieure aux specifications pr6vues dans la Loi sur les vehicules a moteur ou ses reglements correspondants. 8. L' annexe « B » du pr6sent ARRETE est modifi6e par la suppression des mots TAR1F CONTRACTUEL : Par TAXIMETRE avec un rabais contractuel selon une entente entre le PROPRIETAIRE DE TAXI et/ou 1'EXPLOITANT DE TAXI et le client » et leer remplacement par les mots TARIF CONTRACTUEL : Par une entente contractuelle pr6alable par ecrit entre le PROPRIETAIRE DE TAXI et toute entreprise ou compagnie, pourvu : 1) qu'il existe une filing of a completed "Contract Rate Form" with the Taxicab Inspector on an annual basis, which appears as Schedule "E" to this By-law, and (2) each Contract Rate fare only involves the use of a paper chit as payment (there shall be no exchange of cash or any other in -car payment method, such as credit card or debit card, used to pay a Contract Rate fare), with the Taxicab Owner subsequently direct billing the recipient of a Contract Rate at regular intervals and on a global basis for all paper chits collected as payment for fares for a particular period (for example, if a car dealership has a Contract Rate with a Taxicab Owner to prov=ide transportation to its customers, as evidenced by the filing of Schedule "E", paper chits will be issued and used as in -car payment and the car dealership will Iater be billed by the Taxicab Owner at regular intervals for all Contract Rate fares that were paid using a paper chit for a particular period). The paper chit shall identify the name of the party with whom the Contract Rate exists respecting each Contract Rate fare as well as the corresponding Contract Rate Number that has been assigned by the Taxicab Inspector. Any fares not paid by a Contract Rate pursuant to the terms of this By-law shall be calculated in accordance with the other provisions of Schedule "B" using a Taxicab Meter in every instance with the exception of the Hourly Rate provision. Any Contract Rate fare that does not comply with the strict terms of Schedule "B" shall constitute a violation of this By -Law on the part of the Taxicab Owner. QzE11 entente contractuelle ecrite entre le PROPRIETAIRE DE TAXI et toute entreprise ou compagnie qui cherche a se prevaloir d'un TARIF CONTRACTUEL se traduisant d'abord par le depot annuel d'un FORMULAIRE DE TARIF CONTRACTUEL », qui se trouve a « 1' annexe E » du present ARRETE, aupres de PINSPECTEUR DES TAXIS et 2) que le prix de la course determine par TARIF CONTRACTUEL implique uniquement ]'utilisation d'un coupon en guise de paiement (aucun echange d'argent nest effcctue ou toute autre methode de paiement qui s'effectue dans la voiture, tel le paiement par carte de credit ou la carte de debit, utilisee pour payer le prix d'une course determine par TARN' CONTRACTUEL nest utilisee), ou le PROPRIETAIRE DE TAXI procedera ulterieurement a la facturation directe du beneficiaire d'un TARIF CONTRACTUEL a intervalles reguliers et, dune maniere globale, pour tous les coupons requs A titre de paiement pour le prix des courses, pour une periode donnee (par exemple, si un concessionnaire automobile a negocie un TARIF CONTRACTUEL avec le PROPRIETAIRE DE TAXI qui fournit le transport a ses clients, comme Ie demontre le depot de « l'annexe E », les coupons seront emis et utilises en guise de paiement dans la voiture et le concessionnaire recevra, a intervalles reguliers, une facture du PROPRIETAIRE DE TAXI, pour le prix de toutes les courses determine par TARIF CONTRACTUEL qui ont ete payes avec des coupons pour une periode donnee). Le coupon specifie le nom de la partie qui beneficie d'un TARIF CONTRACTUEL, respectant chaque TARIF CONTRACTUEL pour le prix d'une course, ainsi que le NUMIRO DE TARIF CONTRACTUEL correspondant qui a ete attribue par I'INSPECTEUR DES TAXIS. Tout prix d'une course qui nest pas paye par TARIF CONTRACTUEL en vertu des termes du present ARRETE est calcule conformement aux autres dispositions de « Pannexe B », par ]'utilisation, dans tous les cas, d'un TAXIMETRE, A ]'exception des dispositions qui regissent le TARIF HORAIRE. Tout prix Schedule "B" to this By-law is further amended by deleting the words "Hourly Rate: Fifty Dollars ($50.00) (Taxicab Meter off) by arrangement between the Taxicab Owner/Taxicab Operator and passenger(s)" and replacing them with the words "Hourly Rate: an hourly rate of Fifty Dollars ($50.00) (Taxicab Meter off) may be charged by arrangement between. the Taxicab OwnerlTaxicab Operator and passenger(s). Under this By-law, an hourly rate can only be charged by arrangement for periods of travel of One (1) hour or longer in duration. Rates for periods of travel of less than One (1) hour in duration shall be calculated by Taxicab Meter unless the Contract Rate provision of this By-law applies." 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. 2017 signed by: First Reading Second Reading Third Reading Mayor /Maire d'une course determine par TARIF CONTRACTUEL qui ne respecte pas les termes stricts de « I'annexe B » constitue une ,% iolation du present ARRETE de la part du PROPRIETAIRE DE TAXI. 9. « L'annexe B » du present ARRETE est egalement modifiee par la suppression des mots « TAUX HORAIRE : Cinquante dollars (50 $) (TAXIMETRE eteint) par entente entre le PROPRIETAIRE DE TAXI et/ou PEXPLOITANT DE TAXI et le ou les passagers » et leur remplacement par les mots « Taux horaire : un taux horaire de cinquante dollars (50 $) (TAXIA9ETRE eteint) peut etre facture par entente entre le PROPRIETAIRE DE TAXI et/ou FEXPLOITANT DE TAXI et le ou les passagers. En vertu du present ARRETE, UN TAUX HORAIRE peut etre seulement facture par entente pour des voyages d'une duree d'une (1) heure ou plus. Les taux pour des voyages d'une duree inferieure a une (1) heure sont calcules par TAXIMETRE sauf si la disposition relative au TARIF CONTRACTUEL s'applique. » EN FOI DE QUOI, The City of Saint John a fait apposer son sceau communal sur le present arrete le 2017, avec les signatures suivantes : Common Clerk/greffier communal - September 5, 2017 Premiere lecture - September 5, 2017 Deuxieme lecture - Troisieme lecture - le 5 septembre 2017 - le 5 septembre 2017 SCHEDULE "E" CONTRACT RATE FORM a Taxicab Owner duly licensed pursuant to the terms of By-law Number M-12 - A By-law respecting the Regulation and Licensing of Owners and Operators of Taxicabs in the City of Saint John, hereby certifies that a written contract exists between and a business or corporation, under which the former provides to the latter taxicab services pursuant to a Contract Rate, as that term is used in the aforementioned By-law. In completing this form, it is also hereby certified that Contract Rate fares are only paid using paper chits that fully conform to the requirements of the aforementioned By-law and that no other payment mechanism, in -car or otherwise, is to be used for the payment of Contract Rate fares. Upon the filing of a Contract Rate Form with the Taxicab Inspector, the Taxicab Inspector shall assign a corresponding Contract Rate Number, which shall subsequently be recorded on every paper chit that is used as payment for a Contract Rate fare. Dated this day of ........- 20 Taxicab Owner Contract Rate Recipient ANNEXE o E >> FORM ULAIRE DE TARIF CONTRACTUEL Un PROPRIETAIRE DE TAXI, dement autorise en vertu des termes de Farreti numero M-12 — Arrete portant riglementation des activitis des proprietaires et exptoitants de voitures-taxis et de Poctroi de permis aux proprietaires et exptoitants de taxis dans The City of Saint John, certife par la presente qu'un contrat ecrit existe entre et une entreprise ou une compagnie, en vertu duquel le premier fournit au second un service de taxi conformement a un TARIF CONTRACTUEL, tel que ce terme est utilise dans 1'ARRETE susmentionne. En remplissant ce formulaire, it est aussi certi& par la presente que le prix des courses determine par tarif contractuel est uniquement paye par Putilisation de coupons qui se conforment pleinement aux exigences de 1'ARRETE susmentionne et qu'aucun autre mecanisme de paiement, que ce soit dans la voiture ou autrement, nest utilise pour le paiement du prix des courses determine par tarif contractuel. Apres le depot d'un FORMULAIRE DE TARIF CONTRACTUEL aupres de FINSPECTEUR DES TAXIS, FINSPECTEUR DES TAXIS attribue un numero de tarif contractuel qui sera par la suite inscrit sur chaque coupon utilise en guise de paiement pour le prix d'une course determine par tarif contractuel. Fait ce jour de/d' 120 Proprietaire de taxi Beneficiaire du tarif contractuel fPzVA is Y -LA W 1V U MITER M-23 A BY-LAW TO AMEND A BY-LAW RESPECTING THE STOPPING UP AND CLOSING OF HIGHWAYS IN THE CITY OF SAINT JOHN Be it Council of T follows: ARRETE N" M-23 ARRETE MODIFIANT VARRETA SUR L'INTERRUPTION DE LA CIRCULATION ET LA FERMETURE DES ROUTES DANS THE CITY OF SAINT JOHN enacted by the Common Lors dune r Th City of Saint John as communal, The City decrete ce qui suit : 1 A by-law of The City of Saint John entitled, "A By-law Respecting The Stopping Up and Closing of Highways in The City of Saint John", enacted on the nineteenth day of December, A.D. 2005, is hereby amended by adding thereto Section 245 immediately after Section 244 thereof, as follows: 245 The City of Saint John does hereby stop up and close permanently the following highway: MCLEAN STREET: All that portion of McLean Street, a public street in the City of Saint John in the County of Saint John and Province of New Brunswick, intending to be the entire width of the said street for a length more particularly described as follows: Beginning at the intersection of the northern sideline of Spencer Street (formerly known as Northumberland Avenue) with the western sideline of McLean Street; going thence in a northerly direction along the western sideline of McLean Street a distance of 29.0 metres; thence in an easterly direction and at right angles to the western sideline of McLean Street a distance of 20.12 metres or to the eastern sideline of McLean Street; thence in a southerly direction along the eastern sideline of McLean Street a distance of 29.0 metres; thence in a westerly direction and at right angles more or less to the eastern sideline of McLean Street to the place of beginning. 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. 2017 and signed by: Bunion du conseil of Saint John a I Par les prdsentes, 1'arrete de The City of Saint John intitule, <<L'arrete sur Pinterruption de la circulation et la fermeture des routes dans The City of Saint John», decrete le 19 decembre 2005, est modifie par Pajout de Particle 245 immediatement apres Particle 244, comme suit : 245 Par les presentes, The City of Saint John barre et ferme de fagon permanente la route suivante : RUE MCLEAN: Toute la partie de la rue McLean, une rue publique dans The City of Saint John, dans le comtd de Saint John, dans la province du Nouveau - Brunswick, a savoir toute la largeur de ladite rue sur une longueur plus particulierement decrite comme suit -.partant de l'intersection de la. limite latdrale nord de la rue Spencer (anciennement connue sous le nom d'avenue Northumberland) et de la limite laterale ouest de la rue McLean; de 1A, en direction nord, longeant la limite laterale ouest do la rue McLean, sur une distance de 29 metres; de la, en direction est et perpendiculairement a la limite laterale ouest de la rue McLean sur une distance de 20,12 metres ou jusqu'a la limite latdrale est de la rue McLean; de la, en direction sud, longeant la limite latdrale est de la rue McLean, sur une distance de 29 metres; de 1A, en direction ouest et plus ou moins a angle droit jusqu'a la limite laterale est de la rue McLean jusqu'au point de depart. EN FOI DE QUOI, The City of Saint John a fait apposer son sceau communal sur le present arrdte le **** ***** 2017„ avec les signatures suivantes : M ay. or . aire Common Clerk/Greffier communal First Reading June 26, 2017 Premi6re lecture - le 26 juin 2017 Second Reading - June 26, 2017 Deuxi&me lecture - le 26 juin 2017 Third Reading m Troisi6me lecture Received Date September 12, 2017 Meeting Date September 18, 2017 Open or Closed Open Session Members of Common Council Deputy Mayor and Councillors: Subject: Letter of support for NBCC's application to NSERC PromoScience Background: Through its proposed three-year project, NBCC intends to bring interactive, hands-on technology experiences to young people with the purpose of motivating them to pursue further studies, careers and/or entrepreneurial ventures in the information and communications technology sector. The goal is to encourage the next generation of innovators. NBCC is seeking funding support for the development and delivery of summer camps for young people, particularly under -privileged under -represented youth, to excite and encourage them about science and technology opportunities and better prepare them for post -secondary education. The proposed project will involve numerous partners, including the University of New Brunswick, Brilliant Labs, Up and Go, and the City of Saint John. The project will focus on creating an intensive hands-on technology program for youth that will enhance and build upon existing coding programs within public schools and the community. The intent is to go beyond and deeper than the introductory programming/coding camps that are currently offered. This program will be designed to strengthen and expand current efforts and build on basic coding skills and delve into experimenting with mobile platforms, technology systems, robotics, mechatronics, artificial intelligence, and mediated reality. Participants will learn about design thinking and how to innovate. They will develop creative and critical thinking skills while solving problems and having fun with faculty, students and alumni. (P4 SAINT JOHN ---- — I P.O. Box 1971 Saint Jahn, NB Canada E2L 4L1 I www.saintjohn.ca I C.P 1971 Saint John, N. -B. Canada E2L 4L1 WIN Motion: That the Mayor be directed to send a letter of support for NBCC's application to NSERC PromoScience. Respectfully Submitted, (Received via email) Don Darling Mayor City of Saint John SAINT JOHN P.Q. Box 1971 Saint John, NB Canada E2L 4L1 ! www„saintjohn.ca I C.P 1971 Saint John, N. -B. Canada E2L 4L1 251 Received Date September 11, 2017 Meeting Date September 18, 2017 Open or Closed Open Session His Worship Don Darling and Members of Common Council Your Worship and Councillors: Subject: Removal of Tucker Park from the Roadmap to Smart Growth Background: At the Growth Committee meeting of September 9, 2017, a motion was put forward to remove Tucker Park from the Roadmap to Smart Growth and allow Leisure Services along with the Tucker Park Recreation Association to decide on any ideas for enhancing or developing improvements to the park. The motion ended in a 3-3 tie and thus was defeated. As the committee was split on the vote, Common Council is being requested to decide on this issue. Motion: That Council direct staff to remove #38 Tucker Park from the Roadmap to Smart Growth and have Leisure Services work with the Tucker Park Recreation Association in making any further decisions regarding Tucker Park. Respectfully Submitted, (Received via email) John MacKenzie Councillor (Ward 2) City of Saint John (P4 - SAINT JOHN ---- — I P.O. Box 1971 Saint Jahn, NB Canada E2L 4L1 I www.saintjohn.ca I C.P 1971 Saint John, N. -B. Canada E2L 4L1 PM Received Date September 12, 2017 Meeting Date September 18, 2017 Open or Closed Open Session His Worship Don Darling and Members of Common Council Your Worship and Councillors: Subject: Rural Roads Upgrade Program Background: All roads off of the Westfield Road are part of the Rural Roads Upgrade Program, which has been stalled for many years. There had been a verbal commitment to bring a report to Council regarding this program, and this motion aims to bring that report forward. Motion: Request that the City Manager prepare a report detailing the condition of the roads identified under the Rural Road Upgrade Program. Furthermore, the future impact on those roads at present levels would also be described. Lastly, a recommendation regarding the future of the Rural Roads Upgrade Program. Respectfully Submitted, (Received via email) Greg Norton Councillor (Ward 1) City of Saint John (P4 - SAINT JOHN ---- — I P.O. Box 1971 Saint Jahn, NB Canada E2L 4L1 I www.saintjohn.ca I C.P 1971 Saint John, N. -B. Canada E2L 4L1 NX Received Date September 14, 2017 Meeting Date September 18, 2017 Open or Closed Open Session Members of Common Council Deputy Mayor and Councillors: Subject: Support Letter for Symphony NB Background: Symphony New Brunswick is seeking an additional continuing commitment of $50,000 per year from the Department of Tourism, Heritage and Culture in addition to the approximately $113,000 it presently receives. Symphony New Brunswick is a vital part of Saint John's cultural and economic infrastructure. A quality symphony orchestra is a valuable selling point in our efforts to attract highly skilled new residents. The existence of the symphony advertises that Saint John is a progressive city with much to offer people considering moving to the area. Motion: That the Mayor be directed to send the attached letter of support for Symphony New Brunswick's Provincial funding request to the Minister of Tourism, Heritage and Culture. Respectfully Submitted, (Received via email) Don Darling Mayor City of Saint John GO - SAINT JOHN ---- — I P.O. Box 1971 Saint Jahn, NB Canada E2L 4L1 I www.saintjohn.ca I C.P 1971 Saint John, N. -B. Canada E2L 4L1 Ke! DRAFT July xx, 2017 The Honourable John Ames Minister of Tourism, Heritage and Culture Province of New Brunswick P.O. Box 6000 Fredericton, N.B. Dear Minister: It is my understanding that Symphony New Brunswick Inc. is seeking an additional continuing commitment of $50,000 per year from the Department of Tourism, Heritage and Culture in addition to the approximately $113,000 it presently receives from your department. I wish to advise that I have reviewed the business plan of the Symphony with Symphony officials and the City of Saint John views SNB's request as a high priority and urges you to give it your immediate attention. Symphony New Brunswick is a provincial performing arts organization and takes its performances to many communities in the Province. The organization's many school and outreach concerts are also a very valuable component of the Province's overall education program which is delivered to the school system at very modest incremental cost to the Province. Notwithstanding its provincial mandate and activities, we regard the Symphony as a vital part of Saint John's cultural and economic infrastructure. As you are well aware, all of New Brunswick's major urban centres are competing nationally and internationally for new investment and job creation. A quality symphony orchestra is a valuable selling point in our efforts to attract highly skilled new residents. The existence of the symphony advertises that Saint John is a progressive city with much to offer people considering moving to the area. I personally attend the Symphony's concerts whenever time permits and can attest to the quality of their performances. The organization is a credit to the Province and deserves the extra provincial support needed to help it solidify its business and artistic aspirations. Yours truly Don Darling Mayor COUNCIL REPORT M&C No. M&C 2017-237 Report Date September 12, 2017 Meeting Date September 18, 2017 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Recreation Facility Master Plans Strategy OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadL4 City Manager Tim O'Reilly Michael Hugenholtz m I Jeff Trail RECOMMENDATIONS Common Council adopt the following strategic approach to investing in recreation facilities: The lifecycle costs of new assets proposed as part of Recreation Facility Master Plans shall be budgeted in the General Fund Operating budget before a decision is made to install those assets, Nothwithstanding minor renewal projects at other District and Regional Parks, the Rainbow Park Master Plan shall be the priority recreation master plan to receive future investment commitments until completion of that plan, 3. Revisit remaining recreation facility master plans (other than Rainbow Park) for overall affordability, and 4. A revisited Rockwood Park Master Plan shall be the focus of investment following investment in Rainbow Park. EXECUTIVE SUMMARY Staff is suggesting strategies to guide Common Council's recreation facility investment decisions going forward. The strategies are based on a holistic approach, affordability, guidance by corporate initiatives such as PlaySJ, PlanSJ and Neighbourhood Plans, Asset Management and growth opportunity. PREVIOUS RESOLUTION N/A 1847-1 -2 - STRATEGIC ALIGNMENT This report touches on each of the four categories of Council's priorities. It also aligns with several corporate initiatives. REPORT There have been a number of developed Master Plans for recreational facilities in the past. The below table summarizes the status of these Master Plans: Location Work Completed Remaining Work Rockwood The first two phases of the There are four phases left to the Park existing Master Plan is complete existing plan previously valued at and included reconstruction of approximately $7.9 million Mount Pleasant Avenue and involving reconstructing a Lake Drive South at the main portion of Sandy Point and Arrow entrance to the park. The Walk roads, repaving parking playground has been expanded, lots, work at the entrance to and lighting around the Lily Lake trail in the campground, work to the installed, significant renovation Causeway and adjacent pond and of the Pavillion complete and at Public Gardens, a proposed work continues on trails around splash pad. the park. Shamrock The first phase of the existing There are three phases left to the Park Master Plan is complete and existing plan previously valued at included installation of the approximately $6.5 million Emera artificial turf field. Work involving clubhouse renovations to some fencing at the fields and upgrades, improvement to have been completed. the Visart and Albert Street entrances and parking lots, trails and lighting, a splash pad, playground and basketball court, score clock, ballfield irrigation. Rainbow The first two phases of the There are two phases left to the Park existing Master Plan is complete existing plan previously valued at and included installation of the approximately $2.3 million splash pad/outdoor ice rink and involving replacement of supporting maintenance playground equipment and building. safety surface, lighting, pathways, tennis courts, basketball courts, seating for splash pad/outdoor ice pad. Dominion No work to the existing Master There is one phase to the existing Park Plan is completed yet except plan previously valued at rehabilitation to the washroom approximately $600,000 facilities planned for this Fall- involving parking lot reductions, P4'tl -3 - Note: Cost estimates in table are historic estimates and are not adjusted for inflation. P491:3 Winter. landscape enhancements, improvements to playground and basketball areas, picnic shelters and trail signage. Market Work on the existing Master There are two phases left to the Place Plan included installation of a existing plan previously valued at West new playground and safety approximately $1.2 million surface. involving the splash pad construction, new Commons area and picnic area, dog park and ballfield improvements. Little With the support of a Some minor additions to this River community partner a Master park include a planned dog park Reservoir Plan for this park was developed and picnic shelters in 2017. and essentially completed already. Forest Preliminary Master Planning had Two phases are envisioned for Hills been completed. A more this Master Plan valued at Complex focused plan is being completed approximately $1.3 million in 2017 given interest in a splash involving a splash pad, safety pad being built at this park. surface for the existing playground and reconfiguration or repurposing of the existing pickleball courts site. King With the support of a Only minor improvements are Square community partner the planned for the near future. bandstand at King Square was revitalized. Queen A Master Plan was created and No further improvements are Square implemented for Queen Square planned at this time. South South. Fallsview/ A lookout and picnic shelter A Master Plan was completed Reversing were recently installed at approximately 10 years ago at an Falls Fallsview Park. estimated cost of $36.5 million. Memorial Replacement of fencing at the No overall Master Plan is Complex hardball and softball fields were developed yet for this complex. completed in 2016. There have been requests to repurpose and enhance amenities at this complex that should be explored in the future. Note: Cost estimates in table are historic estimates and are not adjusted for inflation. P491:3 -4 - Although the preceding table demonstrates there has been investment in the City's recreational facilities in recent years, it also depicts a list of significant outstanding work totaling nearly $20 million with a further $36.5 million for the Reversing Falls plan. Further, many phases of these Master Plans are multi- million dollars each requiring annual investments that are difficult to budget. Added assets proposed with some plans would have ongoing and new operating costs that need to be budgeted. These plans have been developed with community engagement, with a level of expectation they would be implemented. It is clear to staff however that the City's strategy regarding upgrading recreational assets needs to be revisited and expectations managed. Factors to Consider in Updating the Strategy There are several factors that City staff advise Council consider in re-evaluating the strategy of recreational facility capital investment: Play SJ — The City adopted its new Parks and Recreation Strategic Plan (Play SJ) in recent years. This plan included some recommendations applicable to this discussion. First, it identified a hierarchy of recreational assets with a small number of Regional and District recreational hubs that should receive priority for investment. Second, it identified an over -abundance of some recreational facilities with the strategy being "quality over quantity"; decommissioning of some facilities or turning these facilities over to the community to manage in combination with targeted investment in the regional or district hubs. It should be noted that the Master Plans described in this report are primarily at these regional and district hubs. Asset Management — The City has now adopted an asset management policy with further work on this file in progress. With recreational facilities being assets, it is now incumbent to consider the full lifecycle costs of assets with investment decisions. Investment in existing recreation facilities that are at the end of service life as part of these Master Plans aligns with the Asset Management policy. However, finding the Capital funds needed to upgrade or build new recreational facilities can no longer be the only hurdle and should only be considered after existing assets are managed. Identifying the funds needed to service the debt when Capital funds are borrowed and to operate and maintain new recreation facilities is also required upfront. Current Financial Situation —The City's current financial situation is not ideal. Affordability within this current financial context needs to be respected and therefore expectations managed, at least for the short term. Current or Expected Recreation Facility Obligations —The City has current financial obligations to recreation facilities among its other commitments. The Exhibition Park Fieldhouse project has Capital commitments. The City remains responsible for Capital investment in recreation facilities that are part of the 18401 -5 - Regional Facilities Commission as well as the Lord Beaverbrook Rink. Investment in future phases of Harbour Passage is likely. The City's four civic arenas have approximately 10 years useful life remaining. Replacement of these arenas will require significant investment from the City. Common Council's Capital Investment Priorities — Common Council decides where its Capital investment priorities lie. These priorities help guide the City's annual General Fund Capital Program. These priorities also provides focus when advocating for funding from the Provincial or Federal governments or other sources. There are government programs focused on recreation investment, such as the Provincial Family and Youth Capital Assistance Program (FYCAP) and it makes sense for the City to apply to these programs without likely impacting Council's investment priorities. However, a perceived loss of focus or potential negative impact on funding for projects that are among Council's priorities can result where funding for other projects (recreation or otherwise) are also sought. Aligning with other Corporate Initiatives — A number of high quality, appropriately situated recreation facilities are an important component of a livable community. Plan SJ identifies targeted areas of future growth. Neighbourhood Plans (the first being in the South Central Peninsula) adds further priority to particular areas of the City. The City's Roadmap for Growth will need to be supported with key investment decisions. The location and timing of recreation facility investment that aligns with these other corporate initiatives will be important. Co -Location Opportunities — Opportunities can arise with partner interested in enhancing recreation offerings at or near District or Regional Parks. The City's investment in these parks can support these opportunities. Proposed Strategy City staff are proposing the following strategies to guide Recreation Facility Capital Investment decision-making: 1. The lifecycle costs of new assets proposed as part of Recreation Master Plans shall be budgeted in the General Fund Operating budget before a decision is made to install those assets, Rationale: Aligns with the City's Asset Management Strategy 2. Nothwithstanding minor renewal projects at other District and Regional Parks, the Rainbow Park Master Plan shall be the priority recreation master plan to receive future investment commitments until completion of that plan, Rationale: Rainbow Park is within the area identified for the Neighbourhood Plan of the South Central Peninsula and is within an Intensification Area identified in PlanSJ. N091 -6- 3. Revisit remaining recreation facility master plans (other than Rainbow Park) for overall affordability, and 4. A revisited Rockwood Park Master Plan shall be the focus of investment following investment in Rainbow Park. Rationale: Rockwood Park is the City's Regional Park as identified in PlaySJ. Because of its regional status, improvements are expected to be enjoyed by most citizens of the City and the Region. Staff notes that decisions on recreational investment in Tucker Park will need to be made in the future as per a recent Council resolution. SERVICE AND FINANCIAL OUTCOMES The strategies recommended in this report should result in a more focused and financially attainable plan to enhance recreation facilities. ATTACHMENTS Staff presentation K -q at OEM I m X� E SLO." m & ml \\ u 0 � 00 I m pq,� i E m m d a m a m aC C L O O'+ O O c E E E E M I.11 I� I11 ' I`•• G O 076 Q; d aC L c LU J > O 076 Q; d c ( L _" LU =3 4A U l 0 o z3 co cL > 'L U CD 0 X Lu > Q L OL- 3 U - U a- "0 0 L Q (i3 :5 =3 R3 J a N M 4 Ill H �f so O O O;' O C O E E E E .E O t -I 110 N I- M r4 r4 Q 00 cB L Q i O V� L 3 Q O N > O ti O c c�i� — N ::3 U ::3 L M N 4-1 O O 0- 0 w' L C U `1 Q:: .� c L c Vf fLL3 Q C: (LS U 4--J a+ 4-J i x m oCL cn a, Q cn J O N M 4 Uf H a a m 2 0 O 0' O 0' O O 0' O O O O O O O O O O Lr O Lr O O O Lr O ce°h�Nr�i} cV ci � m c -I s= a� a� a,o c,z s= c,z U N 0 L N N 0 `n L 3 N — N C: M LL L w T3 Q CL C: ::3cu s= cn p -CN Q) (10 O s= m M — + U m _ 0 N M 4 of l6 I- 00 c3 r1 2 It MIN �I O O O O O O O' O O O O O O O O O O O O 0) u1 -;F Lri M N V)- c -I �' l!7 t/} t/? t/? �I L L cB N Vf ate' M cB 4 of Q Q l6 `� I-� O 00 t31 LUCL r -i W cr EE Q) 4--) D H COUNCIL REPORT M&C No. 2017-242 Report Date September 12, 2017 Meeting Date September 18, 2017 Service Area Transportation and Environment Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: Forest Hills District Park Public Consultation OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. HeadCity Manager Lori Lambert/Tim O'Reilly Michael Hugenholtz Jeff Trail RECOMMENDATION City staff recommends Common Council receive and file this report. EXECUTIVE SUMMARY This report updates Common Council on the results of the Public Consultation process held in June 2017 regarding proposed future development of Forest Hills District Park; namely the installation of a splash pad. PREVIOUS RESOLUTION Moved by Councillor Strowbridge, seconded by Councillor Merrithew: RESOLVED that the submitted report M&C 2017-162: Public Input: Forest Hills District Recreation Facility Master Planning, be received for information. (June 12, 2017) STRATEGIC ALIGNMENT Prioritization of capital investments and consideration of life -cycle cost implications on new and existing assets demonstrates fiscal responsibility and strategic investment decisions. SERVICE AND FINANCIAL OUTCOMES f►1:ii1 -2- A decision to construct any facilities proposed from this planning exercise would be left to future budget and investment priority deliberations and vetted through the City's asset management program. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Chc k here to enter text, ATTACHMENTS Forest Hills District Park Public Consultation Report W -15l Forest Hills District Park Public Consultation Report Date: August 3, 2017 Background Author: Lori Lambert Forest Hills is a district park located at 651 Westmorland Road. It currently features 4 ballfields, pickle ball courts, a basketball court and playground structures. The playground assets are shared among Forest Hills Elementary School, the YMCA daycare and afterschool program, and the general public. In discussions with residents during his election campaign, Councillor Ray Strowbridge identified a strong desired to build a splash pad for users of the park. The proposed site is in an area once occupied by tennis courts, adjacent to the playground area. (see image below) The size and functionality of the splash pad would be comparable to Flemming Court located in Crescent Valley. Summary A public consultation process was undertaken by city staff and the Glenn Group Ltd. The pubic session aimed to validate the desire for a splash pad in this location. It also served to identify more specific desires in terms of design, themes, features and other site-specific considerations, as well as provide an opportunity for residents to express concerns. The public consultation took place on June 14 at Forest Hills School with approximately fifteen (15) people in attendance. Following the meeting, an online survey was administered through social media to collect additional feedback. Results of the public meeting and online survey are attached. Overall response was positive to a proposed future splash pad in the designated area. Home to the largest school population in the province, many expressed a sentiment that the East Side has been neglected in terms of recreational assets and such investment is long overdue in the area. Highlights ■ 181 people responded to the survey. (This includes those collected at the public meeting.) ■ 96% of respondents were in favour of a splash pad development in the designated area of Forest Hills. ■ Respondents were more or less equally split between residents and non-residents of Forest Hills. ■ The majority of residents indicated their household included children aged 6-12 years old. ■ Vandalism was the primary concern for any future park development. Concerns were also raised over traffic and pedestrian safety as well as lack of transit service to the area. ■ In addition to splash pad features, respondents identified washroom and changing rooms and sitting areas as important elements in the park's development. ■ A nautical theme for the splash pad was a popular choice among respondents. WIN ■ Overall comments suggest a fun, safe and accessible splash pad would be a desirable asset in Forest Hills. The possibility of the park's use during other seasons was discussed at the public meeting. The desire for recreational space that appealed to the middle school children was also discussed, with the idea to incorporate some skateboarding elements into the park. Proposed Development Area WIN r/lIffm/ A. Survey Ilsesporid erets SrurveRespondents, 11 81 1 Total Connection to Forest Hills Forest 11 lills Survey IRewelt s Yes, I suipport a splash pad iml Forest 111111111111s. 11741 YES No, I do not support a splash pad in Forest Hills. 17 NIO, Have you visited other Saint John splash pads? I Jo not lhve in Forest Hills but spend time in the area. (sports fields, chuich, community centre, etc.) 0 Yes, several times. I am 3 resident of Forest Hills. 0 Yes, once or twice. 4 1 am a property owner in Forest Hills but do not We there. 0 No, not at all. Household Make Up Cholces Percentage Count 1 or more adults aged 30 — 45 129 1 or more adults aged 19-29 �llsommom 20�3996 55 1 or inure adults aged 46 — 60 24�3191, 44 Total Entries 181 Wldren Cholces Percentage Count My IrDLIseirold includes children ages 6-12 years 116, My IrOLIsehold includes children ages 0-5 years 37571, 68 My IrClUsehold includes children ages 13+ 23.7696 43 My household does not include children. 11.6011, 21 Total Entries ll IB. Park Features s The following elements were identified in comments as being important to users. Feature Respondents Splash Pad 83 Washroom/Changing Rooms 25 Sitting Area (benches/tables) 25 Picnic Area (BBQs etc) 19 For it to be FUN and SAFE 18 Different Areas for Ages 16 Sufficient Lighting 13 Shaded Area 12 Upgrades to Playground 12 Multipurpose Park 12 Green Space 11 Fencing 9 C. Park Descriptors Feature Respondents Surveillance 9 Skatepark 9 Extra Garbage Cans 7 Dog Section 7 Tennis Court 6 Pickleball Court Updates 6 Canteen 6 Soccer/Football Fields 5 More Parking 5 Drinking Fountain 4 No -Slip Surface 3 Public Pool 3 Wheel Chair Accessible 1 Respondents repeatedly used words such as "Fun"; "Art"; "Creative"; "Engaging"; "Variety"; "Safe"; and "Accessible" in their comments. Theme ideas included, Ocean; Aquarium; Nautical; Pirate; Under the Sea; Paradise Island; Nature; Books; Baseball; Falcons School Mascot; Sports; and Canadian. Concerns Choices lPerceinitage Count I have no concerns. 53. S31 97 vandalism 32.6170% 59 safety 16.021 29 parking 12.15°!0 22 access 7.18% 13 traffic 15.1181 11 other 3.311 6 Other I view I Total Entries 181 81-11911 Additional concerns indicated in comments are as followsS Concern Respondents Vandalism 13 Outdated Playground 12 The playground needs outdated 5 Increased Traffic Concerns 7 School Hours Affecting Splash Pad 3 It's a windy area 3 No city transit route 3 No Concerns 3 Slippery Ground 2 Lighting pointed at neighbouring properties 1 Not having signs displaying speeds during time schools closed 1 Children attending park with no adult supervision (should be sign) 1 If:u Additional Comments: Supportive comments and suggestions Other • It would be great up by the school so • This would be better suited for little river reservoir X2 students can use it too. • 1 don't agree at this time • This is exactly what East Saint John • Not the right area needs • No more dog parks X2 • My family is thrilled with this idea • Would like to see a new road from splash pad to the subdivision • 1 encourage the development of • Anything would be better than rundown tennis courts community areas for our kids • Teacher worries about losing playground space • Thank you for considering Forest Hills to • Playground really needs updates place this excellent idea for a splash pad • There should be rentals for games like washer toss, bocce, etc. • Amazing idea all around • Guaranteed another property tax increase coming. No accountability, • Love the idea of a splash pad unbelievable • It would be a great asset to the Forest • Grass needs to be seeded and garbage collected more regularly Hills Community • If you plan on making Forest Hills the hub of recreation then might as well • 1 have five grandchildren and it is about make it worth the travel time we had something here for them. • Get with the times and upgrade the pickleball court so that we have money We've lived here for 44 years and paid spent on adults and seniors taxes all the time and worked. So it • Would hate to lose any surrounding playground space that is grass would be nice for us. Thank you! • The parking lot behind the school itself is not line very well. The other one • Very excited! could be extended some to keep people from parking in the ball field parking • Looking forward to this! lots. • Good luck with your design • 1 suggest the public path that runs between my property and the tennis court • thank you for considering East it often fence be closed and fenced off feels we can get overlooked • 1 feel East Saint John is being neglected, we are the largest ward and no • Thank you for putting this all together usable soccer fields for over age 10 players • Public art would be fantastic!! There is • 1 propose that instead of removing the tennis court, the City or Province so much talent in our city it would be a install permanent Pickleball Nets to the courts where pickleball players have great way for some local artist to show already painted court lines and provide wind screens on the fence. I can off their skills assure you that this area will be widely used by all ages of the community. • It would also be nice to see something May 11th, 2017, marked the date of the first AGM of the Provincial Pickleball that provides some family fun for the Association... Federation of Pickleball Inc. Of NB. We have 700 members from winter months, such as an outdoor 13 clubs all over NB. Pickleball is now also being actively played in NB school skating rink like that in Rothesay. Phys Ed programs thanks to our group running clinics at the Phys Ed • More playground features would be a teacher's conference. I recently taught bayside teachers and students how to nice addition play and provided them with paddles and balls. (R. Doiron) WIN Forest Hills Splash Pad Public Meeting Meeting minutes: June 14, 2017 Question 1: Is this site ideal for a Splash Pad? Why? • Yes — the east side is a recreation hub, the splash pad ties in with the existing playground • We have the space, and it is not currently well used • Concerns: will it be turned off during school hours • This is a safe place, a centralized site • Lots of parking currently, this is a plus • This site is geographically well positioned within the city • Will the washroom be open? • Extra garbage cans required • Question: are there a lot of people who desire this splash pad? Response: Three other families are known to have wanted to be at the meeting — they have had to take their families elsewhere this evening because there is no facility for them in the nearby area • Given more opportunities to respond to this idea, response is anticipated to be positive / large • Question: is this splash pad a number one concern in the neighbourhood? • Concern: there are a finite amount of resources for the whole area • A challenge throughout the year: grass isn't ideal, lots of wear and tear (in response to discussing the repair and rebuilding of sports fields) • Heather from The Y: many children come here as their main area, lots of demand • Washrooms: pedestrian traffic and security issues, flooding concerns based on some other projects, new/ larger bathrooms could be considered • This splash pad would likely draw children from other areas, this location is central • Question: Would people use the bathroom in the school itself? Response: Yes, they would have to be buzzed into the building until 9 pm when it closes • Concern: Children crossing a busy road to use the bathroom — traffic volume Question 2: Should a Pad be Integrated or Fenced Separation from the Pickle ball or School Playground? • Question: Are we incorporating both pickle ball fields and a splash pad? Response: Having both would appeal to many demographics (several people in the audience agree with this statement). Response: There is a lot of demand for pickle ball here. • Concern: Pickle ball balls flying into the splash pad area, fencing proposed here • Fence the students from the general public during school hours (esp. recess and lunch hours) • Program the splash pad to only work after school and in the summer • City councilor: forest hills location is a hub, alternate location by the ball fields —would this location be preferable because of less traffic. Response: the soil conditions and structural base available in the current proposed site may make the construction less expensive to install the splash pad. • Pathway from Westmorland so that people don't have to cross the road 1881:11 • People parking on the sides of the ball fields and road = an issue, restrict this parking, should we be widening the road? • No parking signs on the driveway that the school owns to reduce traffic • Grassy area by the canteen — not owned by the city? Can't develop here. • Lighting — back parking — nefarious things occur when the area is not properly lit = automated lighting by the splash pad Question 3: What issues do you currently have at this site? • A $60,000-$70,000 piece of wood play structure was set on fire. Question: Will there be surveillance? Response: Lighting is enough here, splash pad elements are noncombustible. • The community will take ownership of this site if the site is well constructed and those past issues won't happen Question 4: Playground Theme — CTU World Travel — Universal Access. What should Forest Hills Splash Pad — Theme be? • All children welcome • Inclusion • The Falcons (sports team) • School colors: Red, White & Black Question 5: What features should the Splash Pad contain? • Frog = toddlers • Running activities and older kids separated from the young kids • Artist designed fountain • Spray guns and movable parts — animals — not looking like a gun Question 6: What features should surround the Pad? • Shade • Grass — picnicking, reading, sun tanning (not all concrete) • Picnic tables —family activities • Skate park type feature area for middle school age children (mentioned by the school principal because of strong desire from students within the school). Question: Would this fit where the pickle ball courts are? Response: Could we have concrete benches that act as seating and can be used for skating as well, skateboarding can be an activity that is complimentary, but the splash pad and skating activities should not be happening simultaneously 181:1:3 Question 7: What should we consider in the design? • Other months of the year — off season use — so that the splash pad isn't only used in June / July / August. (Skateboarding = Sept / Oct / Nov before the snow?) • Can some of the objects within the splash pad be removed / moved = more value = transitional space • Love the idea, however some concerns: Traffic on Westmorland road, esp. speed (speed signs are only operational during school hours, can these hours be extended, even to run 24/7). There is no bus service here — how will people access this site, reduce traffic by reintroducing a route / bus stops — inclusion. Can a three way stop be implemented, drag racing occurs frequently. • This area is lacking an arena for kids — an arena will keep people in the area • Westmorland road is dividing the community, people don't want to cross it, it's too fast for children to cross safely to use the facilities in the area. • The school has 700 kids (k-8) the largest in the province • Quality of life = opportunities & services. This area is ignored, not prioritized. This is the perfect area for a splash pad because it doesn't cost anything to participate (poverty in this area = a free amenity is hugely beneficial) • The $200,000 version of the splash pad will be too small to have 300-400 kids playing on it— value for money • Flemming is a good example of something the community would like to see here, that project was about $500,000, people are interested in the bucket features at the Flemming splash pad • Bike racks needed • Do something that will last, do it right, not cheap • Corporate sponsors, fundraising possibilities • Goal -2020 (x81:1%1 Meeting with neighbouring residents August 14, 2017 Lori Lambert (CSJ Parks & Recreation Staff) and Dan Glenn (Glenn Group Ltd.) met with a couple whose property borders Forest Hills District Park. Discussion items: - Primary concerns are related to noise, lighting and vandalism that may impact their property and park property. - Couple not opposed to the splash pad. The proposed location of the pad was identified, along with general discussion on its anticipated activity level and operating hours, which eased many of their concerns regarding potential impact to their property. - Couple would like the City to consider closing off access to the easement currently used as a footpath to access the park. The lack of lighting and large shaded trees currently invite unfavourable activity at night (ie. drugs, loud gatherings including drinking) - Couple would like to the park plan to include security measures such as cameras and motion lighting to deter unfavourable activity. - Couple supports the Pickleball courts remaining to serve the growing population of seniors who use them regularly. - Couple expressed concerns over the lack of recreational activity available to middle school students, which may contribute to vandalism and other destructive activity. Couple supports the consideration to include skate park features for use by this age group. - Couple appreciated time to meet and discuss these concerns with staff and Mr. Glenn. They were satisfied with outcomes of the meeting. P4%I97 COMMON COUNCIL REPORT M&C No. 2017-234 Report Date September 11, 2017 Meeting Date September 18, 2017 Service Area Saint John Water His Worship Mayor Don Darling and Members of Common Council SUBJECT: 2018 Water and Sewerage Utility Fund Capital Budget OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. City Manager Recommended by Head Craig Lavigne Brent Jeff Trail Finance Committee McGovern/Cathy Councillor Merrithew Graham Finance Chair RECOMMENDATION It is recommended that members of Common Council reflect upon the attached draft of the 2018 Water and Sewerage Utility Fund Capital Budget and make any and all inquiries and recommendations to staff; and receive and file this report. EXECUTIVE SUMMARY The first draft of the 2018 Water and Sewerage Utility Fund Capital Budget was presented to the Finance Committee on July 19th. A project was added to the budget and was again presented to the Finance Committee on September 7th for review and feedback. It was recommended by the Finance Committee that the draft Utility Capital Budget at Finance Committee be forwarded to Council for receive and file at the September 18th meeting. The draft budget will then be brought before Council again on October 2, 2017 for approval. The draft 2018 Water and Sewerage Utility Fund Capital Budget reflects the completion of the largest municipal infrastructure project in the history of the Province of New Brunswick, the Safe Clean Drinking Water Project (SCDWP). The 2018 capital budget reflects the largest financial portion of this project. The renewal of assets in 2018 is much less than previous years due to the pressure and cost associated with the SCDWP and the efforts being made to limit spending on infrastructure renewal to essentially those projects that are necessary to ensure service continuity. The completion of the asset management f84%SI -2 - plan will play a critical role in determining the state of the utilities assets, the risk of failure, service that the asset provides for and how to close the gap on the overall infrastructure deficit. The asset management plan will be a critical piece in the development of the long term financial plan of Saint John Water. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT The proposed 2018 Water and Sewerage Utility Fund Capital Budget is aligned with Councils' priorities; Vibrant, Safe City, Value Service Delivery and Fiscally Responsible. REPORT The draft 2018 Water and Sewerage Utility Capital Budget totals $147,054,519. Funding from other sources, (Gas tax, P3 Canada, RDC, Reserves) is $95,560,619 and Saint John Water's share is $51,493,900. The previous report on debenture application has the City borrowing $45,000,000 for a portion of the substantial completion payment on this project in the fall of 2017. The majority of the project is anticipated to be completed the end of 2018, with the water treatment plant being fully operational by that date. The operation of the new treatment plant along with the increase in debt which is expected to peak at approx. $107,451,000 in 2017 will put significant pressure on rate payers and the continued asset renewal for Saint John Water. The reinvestment in assets, other than the SCDWP, in 2018 is $6.50M with $1.96M coming from others, leaving the Utility share at $4.54M. Amortization in 2016 was $12.4M. This gap will not be sustainable, however the asset management plan will help identify how to close the gap and support the creation of Saint John Water's long term financial plan. Infrastructure Renewal —Water The total amount including funding from other sources for water infrastructure renewal is $3,824,019 for 2018. The two largest projects in this budget is phase 15 of the ongoing watermain cleaning and lining project and phase 2 of a 2 year project at the Musquash pumping station. Also noteworthy is approximately 700 meters of watermains will be renewed which includes a strategic decision on 130 meters on Leinster Street to coincide with the construction of Irving Oil's new parking garage. NO-% -3 - Infrastructure Renewal — Sanitary The total amount of funding for renewal in sanitary 2018 is $2,675,000. Reinvestments call for renewing vintage 1891 and 1925 sewer lines, replacing components of and upgrading the SCADA system and replacement of pumps at Carpenter Place pumping station. Also work will be done to replace sanitary services on Leinster Street in coordination with the watermain renewal. Safe Clean Drinking Water Proiect Funding from P3 Canada, Regional Development Corporation and internal reserves will be $93,601,600 and Saint John Water portion which will be funded through debt and operating of $46,953,900. SERVICE AND FINANCIAL OUTCOMES The infrastructure renewal portions of the 2018 Water and Sewerage Utility Fund Capital budget will be funded from the operations, so there will be no borrowing for this. The borrowing for the Safe Clean Drinking Water Project will become a fixed cost for the next 30 years. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Input has been received from Saint John Water Operations, members of the Senior Leadership Team and the Finance Committee. ATTACHMENTS Exhibit 1 - 2018 Water and Sewerage Utility Fund Capital Budget P4%Ic3 September 8, 2017 Your Worship Mayor Don Darling & Members of Common Council: . . I . 1, . • PM =-K� As Chairman of the Finance Committee, l am writing on behalf of the Committee to advise that at the meeting of July 19, 2017, the 2018 Water and Sewer Utility Fund Capital Budget was presented. The budget was then updated and presented again for further review at the September 71h Finance Committee meeting. At that meeting, it was "RESOLVED that the Finance Committee recommend that the 2018 Water and Sewer Utility Fund Capital Budget be submitted to Common Council with a recommendation to receive and file." Please find attached a copy of M&C 2017 — 234 which includes the 2018 Water and Sewerage Utility Fund Capital Budget. Yours sincerely, "David/Merrithew Chai "man, Finance Committee City of Saint John Encl.: M&C 2017 - 234 c/w supporting documents SAINT JOHN RO. Box 1971 C,R 1971 S Saint John, N. -B. Canada Canada E21-41-1 www.'6t'Whn.ca , Prc� �s� rc�r Sal Iry Fc�r ®1 Category No. of Other Utility Total Projects Share Share Infrastructure Renewal - Sanitary 12 $600,000 $2,075,000 $2,675,000 Infrastructure Renewal - Water 9 $1,359,019 $2,465,000 $3,824,019 Safe, Clean Drinking Water 1 $93,601,600 $46,953,900 $140,555,500 TOTALS: 22 $95,560,619 $51,493,900 $147,054,519 r it I t ( tilit r) Infrastructure Renewal - Sanitary 4.0% Infrastructure Renewal - Wate r 4.8% Safe, Clean Drinking Wate r 91.2% MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS RDH: REGIONALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - SanitAl_y Project Location Description Other Utility Share Share G&D Beach Crescent Lift Millidgeville Area Analysis and design for storm sewer separation 0 45,000 Station from the sanitary sewer at the Beach Crescent lift station, including easement acquisition. Currie Avenue Pugsley Avenue to Balfour Line approx. 175 m of 300 mm Concrete 0 130,000 sanitary sewer, including design and construction management services. Energy Efficiency Various Locations Technical analysis regarding energy 0 75,000 conservation opportunities on various Saint John Water facilities. Glen Road Glenview Drive to Morgan Road Renew 215m of existing 200mm Concrete 0 210,000 sanitary sewer, including construction management services. Jack's Field Gooderich Street to Wright Line approx. 150 m of 375 mm, 50 m of 300 0 190,000 Street mm and 10 m of 450 mm T.C. Sanitary sewer, including design and construction management services. Leinster Street Sydney Street to Carmarthen Renew approx. 130m of 300mm T.C. with new 0 145,000 Street 200mm sanitary sewer, including construction management services. Mill Street At railroad track crossing Line approx. 28m of 750 mm sanitary sewer 0 110,000 under tracks, including design and construction management services. Paddock Street Paddock Street to Cliff Street Line approx. 80 m of 375 mm T.C. sanitary 0 75,000 sewer, including design and construction management services. Rockland Road Parks Street to Cranston Avenue Renew 210 m of 225 mm and 300 mm T.C. 0 235,000 sanitary sewers (1891), including design and construction management services. SCADA System Various Locations Design, purchase and install the equipment for 600,000 350,000 a PLC -5 Migration, Fournier SLC / Panel View Migration, Polymer SLC / Local DTAM HMI Migration at the Millidgeville Wastewater Treatment Facility. Design, purchase and install radio equipment and Twido PLC's at various locations. Project proposed to be partially funded under the Small Communities Fund (SCF). Visart Street Adelaide Street to Natalie Street Renew approx. 110m of 225 mm T.C. (1925) 0 110,000 with new 200 mm sanitary sewer, including construction management services. MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS RDH: REGIONALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council, G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Project Location Description Wastewater Pumping Carpenter Place Wastewater Replacement of two pumps with new chopper Pumping Station style pumps, including design and construction management services. Other Utility Share Share 400,000 TOTAL: $600,000 $2.075.000 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS RDH: REGIONALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Rl - Water Project Location Description Other Utility Share Share Glen Road Glenview Drive to Morgan Road Leinster Street Sydney Street to Carmarthen Street Loch Lomond Watershed McBrien and Taylor Lakes Renew approx. 210m of existing 200mm 0 240,000 watermain, including design and construction management services. Renew approx. 130m of 200mm C.I. 0 150,000 watermain, including design and construction management services. Investigate and design the requirements to do 0 90,000 some civil works at Taylor Lake to invest in further securing the separation of this lake from the watershed and Investigate and design the requirements to fix the damaged control structure at McBrien Lake. Musquash Industrial Musquash Industrial Water Chamber Upgrades and Electromagnetic 0 50,000 Water Supply Supply Pipeline Inspection — Preliminary Assessment and Engineering Design Musquash Pumping Musquash Pumping Station Relocate substation across the road under the 0 1,275,000 Station 69KV Transmission Line, including design and construction management services. Phase B Ocean Drive Pumping Civic # 103 Ocean Drive Installation of a back-up power generator at the 0 265,000 Station Harbourview Subdivision Ocean Drive Pumping Station, including design and construction management services. Rockland Road Parks Street to Cranston Avenue Renew 210 m of 200 mm C.I. watermain, 0 230,000 including design and construction management services. Visart Street Adelaide Street to Natalie Street Renew approx. 150m of 200 mm C.I. (1957) 0 165,000 watermain, including design and construction management services. * Watermain Cleaning and Various locations Cleaning and lining of existing unlined C.I. 1,359,019 0 Lining Phase 15 watermains to improve pressure, water quality, and fire flows. Project to be funded under G.T.F. TOTAL: $1.359.019 $2.465.000 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS RDH: REGIONALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS I'll, 11 11#_ #� IJ111 1 #_ Project Location Safe, Clean Drinking TBD Water Program Description Safe, Clean Drinking Water Program envelope for 2018. TOTAL: Other Utility Share Share 93,601,600 46,953,900 $93.601.600 $46.953.900 COMMON COUNCIL REPORT M&C No. 2017-233 Report Date September 11, 2017 Meeting Date September 18, 2017 Service Area Finance and Administrative Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: 2018 General Fund Capital Budget OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. City Manager Recommended by Head Craig Lavigne Kevin Fudge/Cathy Jeff Trail Finance Committee Graham Councillor Merrithew Finance Chair RECOMMENDATION It is recommended that members of Common Council reflect upon the attached draft of the 2018 General Fund Capital Budget and make any and all inquiries and recommendations to staff; and receive and file this report. EXECUTIVE SUMMARY The first draft of the 2018 General Fund Capital Budget was presented to the Finance Committee on July 19th. The information was updated to reflect comments and feedback from committee members and was presented to the Finance Committee on September 7th for review and approval. It was recommended by the Finance Committee to forward the 2018 Draft General Fund Capital Budget to Council for receive and file at the September 18th meeting. The draft budget will then be brought before Council again on October 2, 2017 for approval. The 2018 General Fund Capital Budget reflects the current fiscal challenges that face the City of Saint John. The City assets are currently being amortized at a rate that is much higher than the amount of reinvestment. There is additional pressure on the capital budget due to lack of reserves and low levels of pay as you go capital funding in the operating budget. Council has made it a priority to develop an asset management plan. This plan is critical for the City to determine what is the true state of its infrastructure, what [00] -2 - level of service does the asset provide and what level of funding will be needed to sustain the level of service that asset provides. The asset management plan will feed directly into and be a critical part of the long term financial plan of the City. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT The proposed 2018 General Fund Capital Budget is aligned with Councils' priorities; Vibrant, Safe City, Value Service Delivery and Fiscally Responsible. REPORT The 2018 General Fund Capital Budget aligns with Council's priorities to support investment in creating a Vibrant, Safe City, offering Valued Service Delivery and being Fiscally Responsible. The budget also heavily invests in existing financial assets to close the gap in the infrastructure deficit the City has on its assets. Common Council approved the Asset Management Policy in 2017. This plan will give Council the ability to make evidence and strategic based decisions on where best to invest the limited capital dollars to help achieve Council's priorities. The asset management plan sets the foundation for long term debt planning, long term financial planning and supports fiscally responsible spending focused on service. The Finance Department received approximately $27.3 million in capital budget requests from service areas for 2018. The requests exceed the $10-$12 million that the City has established as a financial measure to keep long term debt from growing to an unsustainable level. Long term debt for the General Fund reached $117 million by the end of 2016. The proposed 2018 General Fund Capital Budget totals $18,308,260 of which $6,318,130 is to be funded from other sources (gas tax, reserves, etc.) and the remainder $11,990,130 is to be funded by debt issue ($10,172,500 in 2017). 2018 CAPITAL BUDGET HIGHLIGHTS The capital budget includes investments that support sustainable city services and municipal infrastructure. Key re -investments include road improvements, investments in municipal buildings, storm water, fleet and information technology that will maintain service delivery and contribute to reducing the infrastructure deficit. [till -3 - Reinvestment in Existing Assets Transportation —The 2018 General Fund Capital Budget includes $5.44 million of investment in asphalt, curb and sidewalk and street reconstruction. This represents a year over year increase of $95,000 compared to the 2017 General Fund Capital Budget ($5.345 million). Overall PCI is intended to remain at a similar level with an operating and capital funding equal to the amount in 2017. There is risk around the unknown price of asphalt for 2018 and could affect the amount of roadwork that can be completed. Drainage — Continuing to invest in Westgate Park, funds have been included in the amount of $495,000. There are also three projects included for storm sewer separation that is being done in conjunction with Saint John Water for $370,000 which will continue to advance the reliability of the wastewater network through separation of storm water and wastewater as well as additional work on Sandy Point Road for $115,000. Fleet — Funding of $2.5 million from the fleet reserve is included to ensure the City has the equipment and fleet required to provide necessary public services without having to increase borrowing. A new fleet model was developed and approved by Common Council in 2017, which has seen a reduction of vehicles due to initiatives such as pooling that aligns strongly with a value service delivery model and continuous improvement. Information Technology - The City's information technology is key in supporting Council and staff initiatives, as well as supporting effective and efficient delivery of the services provided to residents. The proposed budget includes $280,000 in replacement of firewall and network infrastructure with the funding all coming from the computer reserve fund. Parking — Nine pay and display machines are being replaced with more advanced technology that will no longer require receipt paper. The cost allocated for these nine machines is $78,300 and this investment will result in a reduction of $35,000 yearly in the parking administration budget. Facility and Equipment Renewal — This budget includes $877,000 for reinvestment in buildings and machinery and equipment in those buildings. Work includes replacement and repairs on the Visitor Information Center West, Saint Patrick Pedway, Harbour Station Pedway and various arenas. Harbour Station will receive $97,000 to replace vintage equipment needed for contractual and safety reasons. Canada Games Aquatic Center will receive $610,000 to replace vintage 1983 domestic hot water tanks, heat exchangers, as well as other facility related items. 1919% -4 - Transit — Funding is included for a bus shelter on Charlotte Street ($35,000) and twelve new buses. The buses have been ordered and anticipate being in service by early 2018. Access to reliable cost-effective public transportation plays an important part in creating great neighborhoods. The budget includes $3.086 million that is split 50/50 between external funding and City Share and brings the total cost of replacing twelve buses to $6.636 million. Public Safety Services — An additional $2.8 million for the replacement of the trunk radio system currently being used by the City's first responders has been earmarked in this budget. This project is critical for the safety of the first responders and as well as the Citizens who live and visit the City. Economic Development — The Trade & Convention Centre's $82,000 for replacement of unreliable kitchen equipment and an ice machine could have potential health and safety issues if not replaced. Parks and Public Spaces - The budget includes $100,000 for facility renewal in assets related to parks and public spaces with a concentration on facilities at Shamrock and Dominion Park. Neighborhood Plan - $500,000 has been earmarked in relation to the Central Peninsula neighborhood plan that is underway. The capital budget allocation is intended for the funding of high impact projects furthering the implementation of the neighborhood plan and staff will bring a list of proposed projects for Council approval at a later date. New Assets/Service Enhancements Saint John Fieldhouse — Official announcement has been made securing funding from all levels of government. The City has committed $4.2M over three years and 2018 is the first year of that commitment for $1.4M. Intersection Improvements - The budget earmarks $150,000 for enhancements to various intersections throughout the City. Council Priorities Fiscal Responsibility The 2018 capital budget aligns with Council Priority of fiscal responsibility. The capital budget set forth is based on $11,990,130 of new borrowing. Staff continues to recommend that Council limit new debt to $11-$12 million per year in order to reduce the debt over time to ensure fiscal sustainability. 1919191 -5 - The second stage of the asset management plan is underway and is anticipated to be completed by the end of 2018. This will set the foundation for current and future Councils, staff and all stakeholders enabling better sound financial decisions, setting levels of service and feeding the long term financial plan. This will be a living document to help guide financial decision making. Growth and Prosperity The $500,000 earmarked for the Central Peninsula neighborhood plan will assist helping make strategic investments that will continue to drive development and promote Saint John as a community to live, work and play. Staff will advise and seek approval from Council on what capital investments to make with the allocated funds at a later date. Vibrant, Safe City The purchase of the twelve new buses for Transit and the replacement of the trunk radio system align directly with the priority of a Vibrant, Safe City. The addition of the buses will provide accessible and cost-effective transportation. The continued reinvestment in the trunk radio system for first responders will replace a legacy system with a system that is safe, reliable and allow delivery of an efficient public safety service. Value Service Delivery The 2018 General Capital Budget focuses a continued renewal to the roadway system. The monies allocated to the roadways focuses on maintaining the level of PCI and avoid roads falling into the rebuild stage, which is five times the cost of repaving. CONCLUSION Planned capital expenditures total $18,308,260, with $6,318,130 to be funded from other sources (gas tax, reserves, etc.) and the remainder $11,990,130 funded through debt. The annual funding from the gas tax program as well as funding from other government programs, has helped reduce projected borrowing costs and has allowed the City to undertake needed infrastructure improvements. This level of capital expenditures is within the City's borrowing capacity. The 2018 capital budget is investing 91.53% ($16.76M) in existing assets. This amount falls short compared to the amount assets are being amortized on a yearly basis. The asset management plan becomes an extremely important living document to address the infrastructure deficit and will feed into the long term financial plan that is starting to be developed in 2018. 191911 -6 - SERVICE AND FINANCIAL OUTCOMES The 2018 General Fund Capital budget will become a fixed charge for the next 15 years for the General Operating Budget. The projects chosen for the capital program considers this factor with assets that have a useful life of 15 years or more. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Input has been received from all Service Areas, the ABCs, Senior Leadership Team and members of the Finance Committee. ATTACHMENTS Letter from Finance Committee - Chairman David Merrithew Exhibit 1 - 2018 General Fund Capital Budget Exhibit 2 - 2018 Deferred General Fund Capital Budget 1919191 MIGMH,, 1 Your Worship Mayor Don Darling & Members of Common Council: Re: 2018 General Fund Capital Budget As Chairman of the Finance Committee, I am writing on behalf of the Committee to advise that at the meeting of September 7, 2017, Finance presented the 2018 General Fund Capital Budget. At that meeting, it was "RESOLVED that the Finance Committee recommend that the 2018 General Fund Capital Budget be presented to Common Council with, a recommendation to approve in error. The recommendation from staff was that the2018 General Fund Capital Budget be presented to Common Council with a recommendation receive and file." This will provide Council with the opportunity to review and make inquiries. Please find attached a copy of M&C 2017 — 233 which includes the 2018 General Fund Capital Budget, Yours sincerely, D,avid/Merrithew , d Chairman, Finance Committee City of Saint John Encl.: M&C 2017 - 233 c/w supporting documents SAINT JOHN P.O. Box 1971 C.P. 1971 Saint john, NB Saint John, N. -B. 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AUTHORIZATION Primary Author Commissioner/Dept. HeadCity Manager Jody Kliffer/Phil Ouellette Jacqueline Hamilton Jeff Trail RECOMMENDATION Growth Committee recommends that Common Council: 1. Initiate the Municipal Plan Amendment and Rezoning process for a parcel of land with an area of approximately 5.18 hectares, located at 1671 Sandy Point Road also identified as being PID No. 00418129 on September 18, 2017. The Municipal Plan Amendment and Rezoning would seek to: • Redesignate, the parcel of land on Schedule A of the Municipal Plan from Park and Natural Area to Stable Area; • Redesignate, the parcel of land on Schedule B of the Municipal Plan from Park and Natural Area to Stable Residential Area; and • Amend the Zoning By -Law by rezoning the parcel of land from Park (P) to Mid -Rise Residential (RM). 2. Direct the City Manager to undertake additional public engagement, as defined in this report, with the community and key stakeholders in order to enhance public awareness, clarify the scope of the rezoning and plan amendment and details of the intended and future use. Ec5i[I -2 - EXECUTIVE SUMMARY The purpose of this report is to present the options for the subject site at 1671 Sandy Point Road. The site is a 15 hectare lot located in the northern part of Sandy Point Road between the golf course and Cherry Brook Zoo. The site is a predominantly cleared site located on the perimeter of Rockwood Park that is capable of supporting future development. Staff have researched various options for the site and based on a sound planning rationale are recommending Council consider the option of developing the site for medium -density residential. This option infills a vacant property on a developed corridor within the Primary Development Area where infrastructure exists, is compatible with adjacent development, provides an opportunity to improve public access into the Park while creating a boundary to conserve the Park and generates revenue and tax -based growth which can support future investment in the park. Staff recommend that several conditions be considered as part of the purchase and sale agreement that would regulate the form of development to ensure a high quality development, and that Rockwood Park benefits from the development. PREVIOUS RESOLUTION Direct the City Manager to report back to the Growth Committee by August 2017 with a detailed plan to initiate necessary approvals, public engagement, timelines and other considerations for potential development of PID No. 00418129 on Sandy Point Road. On September 6t", 2017, Growth Committee adopted the resolution included in this report as the Committee's recommendation to Common Council. STRATEGIC ALIGNMENT 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 Grow SJ, including, among others: "Building permit value," "Change in tax base assessment within the City," "Change in population." Finally, Saint John Common Council adopted the Roadmap for Smart Growth on Monday March 27t", 2017. 2 315 -3 - REPORT Background: History of Events Prior to the installation of water and sewer services along Sandy Point Road in 2004, the water pressure in the northern part of Sandy Point Road and Kennebecasis Drive was poor. The land owners of what is now Fieldstone Estates stated that they would not be able to go forward with the development of the proposed subdivision if the servicing was not enhanced. In addition, several private wells along this section of Sandy Point Road were reportedly in poor condition. Allowing these residents the opportunity to hook into City infrastructure provided a more reliable service delivery of water and sewer. The City consulted with the community during this time to get feedback on rezoning a portion of the road to single-family residential in order to maximize the city's investment made in the installation of piped water services to the area. The community largely supported the concept, and the process to amend the Municipal Plan and rezone the property was advertised and vetted through a public hearing process at Common Council. The properties between Cranberry Hill and the Zoo were rezoned to low-density residential in 2005 as a result. The property at 1671 Sandy Point Road was owned by the City and functioned well for a laydown area for the reconstruction of the road. The rock placed on the site from the street reconstruction was graded in a way to facilitate future development as that was the intention with the rezoning of the area to low- density residential. Water and sewer services were stubbed to the edge of the property to support eventual development. In 2008, a proposal for a high-density development came forward for the property at 1671 Sandy Point Road. The developer began the rezoning process that would place the site in a high-density residential zone to construct two buildings that would have a total of approximately 160 units. The public reacted strongly in opposition to the proposed rezoning, which led to the withdrawal of the application and the City to undertake a planning study for the corridor to better understand the highest and best use for the entire length of Sandy Point Road. The study was conducted in 2010 by ADI on behalf of the City, which included a public workshop, an open house, one-on-one meetings with interest groups, and a public survey as engagement tools used to solicit public feedback. 3 316 -4 - The consultant's recommendations reflected themes that arose during the public engagement and included a proposed expansion of Rockwood Park, proposed development along Sandy Point Road in areas that were already disturbed to capitalize on previous infrastructure investment, and increased access to the park for the general public. The recommendation was to use the proceeds from the sale of the land to enhance the trail systems of the Park, including trails that would integrate the proposed developments and link to Harrigan Lake. The report also recommended that the boundary of Rockwood Park be formally established, and that no development beyond medium residential density be permitted. The recommendations included a set of design guidelines to ensure environmentally sensitive design would be incorporated into a unique 'Rockwood Park' design style. Staff generally supported the findings of the ADI report, with modest changes proposed to the recommendation. The Rockwood Park Advisory Board also approved of the concept, with minor changes recommended. In April, 2011 Council rejected the staff recommendation and voted in favour of beginning the process to rezone the lands on Sandy Point Road to "P-2" Park, which did not allow for residential development. For more detail on the sequencing of events as it relates to the ADI proposal, please see the attached presentation (Appendix 1) given to Growth Committee in July 2017. Previous reaorts and aresentations to Growth Committee In March 2017, Growth Committee and Common Council adopted the Roadmap for Smart Growth, which included action item number 30: "Review and pursue Sandy Point Road municipal property development opportunities." At the June 2017 meeting of the Growth Committee, Staff prepared a presentation of past research and considerations associated with development of municipal lands along Sandy Point Road. The presentation included: • A Chronology of events since 2004; • Summary of the consultant's recommendation; • Staff 2011 recommendation; • Staff current recommendation. Staff committed to providing the Committee with the following information that outlines next steps to proceed with development 1671 Sandy Point Road (PID No. 00418129): 4 317 -5- • Analysis on maximum and best use; • Proposed municipal approvals; • Key zoning considerations; • Necessary public engagement; • Timelines. During the July Committee meeting of the Growth Committee, the Friends of Rockwood Park were invited to present before Committee Members and share their feedback and concerns associated with the proposed development of the subject site. Among various feedback, representatives from Friends of Rockwood Park stated during that presentation that they had reservations about the development of the site and questioned whether there was adequate market demand for new residential development. Building a Recommendation In order for staff to bring forward an evidence -based and professional recommendation to the Growth Committee and Common Council, staff have investigated various filters (Section A) to inform a recommendation, including: 1. Interpretation of existing development trends; 2. Direct feedback from existing local developers; 3. Legal feedback; 4. Water and sewer capacity feedback. In addition to the above broad -level review, staff have also completed the following more detailed assessment (Section B): 1. Planning analysis of different site development scenarios with corresponding sample renderings as well as assessment of land -use compatibility, which include options for: a. Status Quo; b. Low -Density Residential; c. Medium -Density Residential; d. High -Density Residential; 2. Recommended conditions on future developments; 3. Why proceed with a proactive rezoning and plan amendment. Finally, in order to effectively define the parameters, timelines and engagement associated with the staff recommendation, another section (Section C) will include: 1. Timelines; 2. Necessary public awareness. 5 318 -6 - Site Context: 1671 Sandy Point Road The site at 1671 Sandy Point Road is approximately 5.15 hectares with approximately 184 metres of lot frontage (see Appendix 2: Site Location). Harrigan Lake is located to the rear of the site. The lot contains a predominantly forested area to the lake, and a large area in the middle of the property that was cleared several years ago and graded for potential development (see Appendix 3: Site Photos). The surrounding context of Sandy Point Road has urbanized over the past several decades given its proximity to Tuckey Park University and hospital campus. The property is bookended by existing residential developments to both the north and south. These properties are located in the One -Unit Residential (R1) zone, and are in the Stable Residential future land use designation on Schedule B of the City's Municipal Plan. Residential dwellings also exist across the street from 1671 Sandy Point Road. Although there is visual access into the Park, given the higher elevation of the site, it is physically separated from the Park, and lacks a formal connection to the remainder of the Park. In addition, it should be noted that site -prep work was completed on 1671 Sandy Point Road during the road reconstruction in 2004 was designed, constructed and inspected to be strong enough to build on. Good quality blast rock only was used in the fill. An engineering firm supervised the work. Only the top few inches of the soil have changed in the last decade. Section A — Overview of Market and Development Trends 1. Interpretation of current development trends Through engagement with several developers in the region and current market research, staff have heard that high-end rental options for people predominantly in the baby -boomer generation are in short -supply in the City. This is consistent with national trends that reflect similar housing style choices from Vancouver to Halifax. Baby -boomers or "empty nesters" are downsizing from their large suburban homes and are seeking smaller housing or rental options with less maintenance requirements. As identified in Appendix 4, the national and local trends reflect a demographic shift towards a larger percentage of the Canadian population being comprised of the baby -boomer cohort. In addition, projections also indicate that millennials will comprise 50% of the Canadian workforce by 2020 (see Appendix 5: Canadian Workforce). Both of these cohorts prefer smaller dwelling sizes in comparison to previous generations. 6 319 2. Direct feedback from local developers Staff have reviewed the option to develop 1671 Sandy Point Road with six developers from the Saint John region who have been active in various forms of residential developments around the community, from single detached dwellings to the construction of new neighbourhoods. The majority of the developers consulted have led successful projects in the Millidgeville area in the past. The intention was to better understand if there is existing demand to develop the site, and what challenges, if any, should be considered through a plan amendment and rezoning process. Of the developers engaged, two stated that they would have an active interest in developing the property if Council were to positively consider the rezoning of the site. It was also expressed that a medium -density residential development would be a good form of development that would offer a return on investment reasonable enough to consider the project. The following insights were offered by the developers, which provide valuable perspective that will be useful if Council wishes to contemplate development for 1671 Sandy Point Road. • The proximity of the Park and the recreational opportunities offered is the differentiating feature of the property. Access to the park in terms of a trail system would create a unique selling proposition which competing developments do not have. • The target market for the development mentioned would likely include professionals that work at the university or hospital and have an active outdoor lifestyle. • Concern that low density housing on the site would not be economical for developers given the site infrastructure requirements of installing new streets and services. • The highest return on investment would undeniably be high density residential. Further, it was noted that the Harrigan Lake site is not an ideal high density location as it is removed from amenities and bus routing. • Support for mid -scale development was consistent in most conversations. There is a general lack of mid -scale offerings in the area, which creates immediate opportunity in terms of supply. A medium - density development could be designed in a manner that is respectful to the surrounding context of Sandy Point Road. It would also provide a 7 320 reasonable tax lift for the City, and would likely provide a return on investment to a prospective developer. • Developers consistently noted there is significant risk with a conditional purchase and rezoning requirement. The existing lobby to prevent development in this location would preclude most if not all potential developers from undertaking such a project. By -right development would create a scenario that removes risk and creates value in the land. The consensus was the site would generate considerable interest by at least two of the interviewed developers if the site was zoned for medium - density residential development. 3. Legal Feedback There is no legal impediment to Council's ability to rezone and sell the subject parcel for development. The parcel was never owned by the Saint John Horticultural Association and, consequently, is not fettered by their legislation restricting the use of the Association's lands. It should also be noted that the subject site was included in the area subject to the development moratorium that was placed on publicly -owned lands along Sandy Point Road by Council in 2010. This moratorium was lifted once the new Municipal Plan was adopted in 2012. 4. Water and Sewer Capacity Feedback Staff engaged CBCL to conduct some analysis on the capacity of water and sewer pipes that exist in the area of the subject site. Analysis indicates that existing infrastructure can support the build -out of 1671 Sandy Point Road. Section B — Review of Site Options 1. Building four different scenarios: In order to generate a greater awareness of the appearance of potential development options on the site of 1671 Sandy Point Road, this report includes sample renderings of low, medium and high density residential. These renderings are not being proposed by any developer at this time, as they are simply meant to provide a much needed perspective on the site in the event a plan amendment and rezoning was granted. These renderings should be referenced in conjunction with the written rationale for each of the following four options. g 321 -9- i. Status Quo Option As mentioned in the previous staff report, staff believe that 1671 Sandy Point Road (PID 00418129) is an ideal first step for development focus along Sandy Point Road. It is the only site among the several municipally -owned properties along Sandy Point Road that has a pre-existing water and sewer connection running into the site. As stated above, it is also the only site that has already received significant site preparation for development, which includes clearing the site, grubbing the land and adding fill where necessary. Also, as previously mentioned, there was past geotechnical assessment of the soil, and it was deemed suitable for development. The option to proceed with no residential development on the site would result in no new investment, and no taxed -based growth on the subject property. The Park (P) zone does permit the development of the site as it would relate to land uses permitted in the Park (P) zone, which does not include a residential dwelling among the options. However, considering the existing state of the property, the immediate context of residential development on both sides of the subject site, and the investment the City made in placing services in the ground to support development, this option is not recommended by staff. As the site has been subject to pre-existing site preparations, it is geographically sandwiched between two existing private dwellings, and it has no formal connection to the existing pathways of Rockwood Park, this site will remain ambiguous and underutilized for years to come without a proactive approach. The existing parcel of land at 1671 Sandy Point Road is far from reaching its potential of value for the community, and recognizing that there was and remains some interest in the site from the development community, staff believe a decision to leave the site in its existing condition is a missed opportunity. 9 322 -10 - ii. Low -Density Residential Option Description (see Appendix 6 for reference) The low density development scenario consists of various single family dwelling types. This scenario ensures public access to the park and utilizes the existing topography. A ring road brings vehicles and pedestrians into the site, following the top of the slope which overlooks the parkland below. In keeping a public road to this edge, the new trailhead and access to Rockwood Park is retained as part of the public realm and the public view to the lake is preserved. Semi-detached homes border the site's southwest while detached homes dominate the northern edge, consistent with the scale of neighbouring residences. In this scenario, approximately 86% of the site is retained as green space. The small footprint of the single family dwelling typology creates opportunity to follow the land, building into the topography and thus adding to the visual interest and diversity of the development. The second option is to permit low-density residential development to occur, which is generally defined as single -unit or two -unit dwellings. If development were to occur on the site at this scale, it could accommodate nine single family homes at approximately 2,200 square feet each, and 24 semi-detached units at approximately 1,800 square feet each. Approximate Tax Revenue The "low scenario" projection for the low-density build -out scenario shown above assumes an average quality new construction for the proposed single -unit dwellings, whereas the "high scenario" assumes high-quality new construction. This option, while in keeping with the existing development context, would disturb a greater site area, potentially provide a less marketable product, and generate less revenue as higher density options. The development of the site for low-density residential dwellings would still require the construction of a public right-of-way to access the new units, including the extension of City services. From feedback collected during the developer engagement to formulate this report, the cost associated with form of 10 323 Low Scenario High Scenario Assessment Assessment Value Tax Revenue Value Tax Revenue Low Density $7,920,000 $141,372 $11,850,000 $211,523 The "low scenario" projection for the low-density build -out scenario shown above assumes an average quality new construction for the proposed single -unit dwellings, whereas the "high scenario" assumes high-quality new construction. This option, while in keeping with the existing development context, would disturb a greater site area, potentially provide a less marketable product, and generate less revenue as higher density options. The development of the site for low-density residential dwellings would still require the construction of a public right-of-way to access the new units, including the extension of City services. From feedback collected during the developer engagement to formulate this report, the cost associated with form of 10 323 -11 - development may not provide the return that a developer would need to pursue this option. Further, the tax lift after the development is finished would be minimal, while there would be costs associated with the upkeep of the new infrastructure and the provision of regular City services over time. Appendix 6 provides a rendering of what a low-density build -out would look like. iii. Medium -Density Residential Option Description (see Appendix 7 for reference) The medium density development scenario offers a mix of semi-detached homes and multi -unit buildings. A tree -lined public boulevard brings vehicles and pedestrians into the site and terminates with a cul-de-sac and entrance to the trailhead. Proceeding into the trail, there is a signature public look off to the lake. Similar to the low density scenario, semi-detached homes border the site's edges, and are consistent with the scale of neighboring residences. The small footprint of this form of development also creates opportunity to follow the land, building into the topography and thus adding to the visual interest and carefully placed midrise density of the development. Three to four storey, walk up multi -unit buildings are located at the heart of the site and oriented to the ground. Furthermore, the height of these units is buffered from the street by trees and semi-detached homes. In this scenario, approximately 85% of the site is retained as green space. Community green space and walking paths link the site to new trails and access points to Rockwood Park. The third option is to pursue a medium -density residential development. A development of this nature could result in 60 units with a mix of housing types, including 32 semi-detached dwellings at approximately 1,800 square feet each and 28 apartment units. The "low scenario" projection for the medium -density build -out scenario shown above assumes an average quality new construction for the proposed row and semi-detached dwellings, whereas the "high scenario" assumes high-quality new construction. 11 324 Low Scenario High Scenario Assessment Assessment Value Tax Revenue Value Tax Revenue Medium Density $9,440,000 $168,504 $13,900,000 $248,115 The "low scenario" projection for the medium -density build -out scenario shown above assumes an average quality new construction for the proposed row and semi-detached dwellings, whereas the "high scenario" assumes high-quality new construction. 11 324 -12 - The development of the site at this density threshold would remain at a scale that can accommodate construction that limits the impact on the surrounding environs, while generating significant benefit to the City. This option is most appealing as it would be compatible with the site context, minimize site disturbance, would match current market demands and could generate fairly significant tax revenue for the City, while providing a good return on investment for a prospective developer. The option for a medium -density build -out would include a mixture of housing types. The area abutting Sandy Point Road could be subdivided into three or four new lots for single -unit dwellings to match the existing residential context to the north and south of the subject site. As stated above, the existing infrastructure along Sandy Point Road has capacity to easily support this scale of development. Entering the site from Sandy Point Road, a medium -density development would include a right-of-way leading from the road to the developed area largely sheltered by a bank of trees. The area would be developed with a mixture of garden homes, townhouse units, and a low-rise, multi -unit dwelling. Feedback from the development community indicates that two-bedroom high-end rental units with off-street parking and access to green spaces are in low -supply in the Saint John area. A development satisfying this niche would provide a housing form that is competitive to the baby -boomer age cohort who are actively seeking to down -size their housing needs. As well as providing positive tax -based growth on the existing vacant lot, a medium -density residential development could also be constructed to a scale and massing that minimizes the impact on the surrounding environment and is sensitive to the context of the Park located to the rear of the site. It should be noted that any development along the edges of a significant regional park must be sensitive to the surrounding context of a valued green space for the community and the built environment in the immediate vicinity of the subject site. How a new development interfaces with an existing park area can play a large role in defining the edge of the park and contributing to its function for the broader community. Appendix 7 offers an illustration of what a medium -density build -out would look like. 12 325 -13 - iv. High -Density Residential Option Description (see Appendix 8 for reference) The high density development strategy could yield a variety of unit types including apartments, condominiums and townhomes. Four to five storey buildings along the road edge terrace down to two stories at the park edge breaking up not only the building massing, but softening development as it nears the park edge. A public boulevard flanked by a mixture of midrise buildings brings vehicles and pedestrians to the rear of the site, where there are multiple access points to trailheads. By building up, the footprint of the development is reduced, allowing for the retention of park and communal green space. In this scenario, approximately 88% of the site is retained as green space. This contributes to a maximized forested buffer to Rockwood Park, which is connected to the site by way of new trails and public access points. The final option would be to contemplate a high-density residential development, which would involve the greatest degree of change from the existing developed context. The development of the site in this format would include 100 apartment units, the site would consist of a mix of townhouse units, semi-detached housing options and four -storey apartment buildings situated at a high -point on the site that would offer commanding views of the Park and Harrigan Lake. The "low scenario" projection for the high-density build -out scenario shown above assumes an average quality new construction for the proposed row and semi-detached dwellings and apartment buildings, whereas the "high scenario" assumes high-quality new construction. It is noteworthy that the high density option yields lower tax revenue than the medium density option (see high density option for comparison). This is due to lower property assessment values for rental apartments than owner occupied homes. At the densities proposed for the high density option, the additional number of units is not significant enough to overcome the lower assessment value per unit for rental apartments. 13 326 Low Scenario High Scenario Assessment Assessment Value Tax Revenue Value Tax Revenue High Density $8,000,000 $142,800 $12,500,000 $223,125 The "low scenario" projection for the high-density build -out scenario shown above assumes an average quality new construction for the proposed row and semi-detached dwellings and apartment buildings, whereas the "high scenario" assumes high-quality new construction. It is noteworthy that the high density option yields lower tax revenue than the medium density option (see high density option for comparison). This is due to lower property assessment values for rental apartments than owner occupied homes. At the densities proposed for the high density option, the additional number of units is not significant enough to overcome the lower assessment value per unit for rental apartments. 13 326 -14- A high-density development would most likely appear out of place in the surrounding context. It is much more of a challenge to 'blend' a large number of units into the boundary of a municipal park and preserve the character of the park. An appealing component of a proposed development is to create a definitive edge to the Park that is non -intrusive and provides added value to the general function of the Park. As such, a maximum of four storeys, or approximately 14 metres, is recommended for any development that should occur on the subject site. A height of 14 metres is not an uncommon height for trees in this area of the City, which provides opportunity for some level of screening from the road. Further, a development that provided high-quality design features, and incorporated sustainable material components, would be appropriate for a development at the edge of Rockwood Park. Appendix 8 offers an illustration of what a high-density build -out of the site would look like. 2. Recommended conditions on future developments Parks and green spaces are more functional if they have clearly defined edges that illustrate definitive boundaries. The boundaries often offer a transitional space that is framed by residential buildings and animated with passive recreational opportunities, such as walking paths and trails. More active features are also common along the edges of parks, such as bicycle paths. However, spatial relationships between the public and the park become confused without a proper public zone that separates the public from the private realm. There are several houses that currently exist along the eastern side of Sandy Point Road, including the properties immediately adjacent to the subject site, which creates an ambiguous boundary separating the park from private property. Staff recommend that, if any of the above options for development of the site were to go forward, a trailway that straddles the rear yard of the property and the edge of the park be established that connects to Harrigan Lake. The trailway, as proposed by the report submitted by ADI in 2010, would function as a boundary of the park, granting an edge feature that would be also help animate the northern part of the park, which is currently underutilized. As the ADI report argued, "Within Rockwood Park's 'edges' it is appropriate to encourage park activities such as walking, hiking, bird watching, and other activities that reflect the interests of our aging demographic. Appropriate residential land uses immediately adjacent to, and somewhat integrated with the park landscape helps to ensure that the elderly have safe and secure access to the park." 14 327 -15 - In addition, staff recommend that conditions be established for any development that occurs on the subject site to ensure a high-quality development that is sympathetic to the surrounding environment. Because the site is adjacent to Rockwood Park, sustainable design features that tastefully reflects the surrounding natural context should be required. Staff recommend additional conditions be placed on the rezoning of the site to ensure that an appropriate development is constructed with high quality finishes, mature landscaping and that it incorporates environmental features that consider the ecological sustainability of the site. The mass and scale of the development should not be beyond the typical height of a mature tree to help ensure that the development blends with the surrounding environment, and does not dominate the aesthetics of the site. Should the property be considered for a plan amendment and rezoning, the following features would be considered as conditions of approval: • Any development should be medium density residential; • The height of any structure on the property shall not be greater than four storeys; • All finishes shall be high-quality finishes in keeping with the Rockwood park design guidelines; • That a park buffer / boundary be established and no development shall encroach beyond a distance of 180 metres from the Sandy Point Road; • development of the land shall include the establishment of a public look - off to view Harrigan Lake and a formalized walking trail that connects the site into the Park and forms a part of the Park boundary; • Funds from the sale of the land be directed toward the upkeep of the park, which could include costs associated with the establishment of the walking trail mentioned above; • That high-quality landscaping be established throughout the site, and including the front yard abutting Sandy Point Road; • A traffic study will be required for any development on this site. 3. Why proceed with a proactive rezoning and plan amendment Staff are recommending that the Municipal Plan Amendment and Rezoning process for the site begin prior to a specific proposal coming forward from the private sector. This approach provides Council with the opportunity to engage with the public and consider appropriate parameters for development that are in 15 328 -16 - the public interest up front before marketing the site and will in turn create greater certainty for investors, making the site more marketable. It is proposed that Common Council initiate a Municipal Plan Amendment and rezoning of the site. This would seek to change the Municipal plan designation from Park and Natural Area to Stable Residential and rezone the site from Park (P) to a zone which would allow for residential development such as Mid -rise Residential (RM). There is strong planning rationale supporting the potential rezoning of the site to accommodate medium -density residential development. The site is a previously - disturbed site that has been prepped for development with servicing stubs reaching the front property line. Geotechnical tests of the site have illustrated that it is in good condition to support development. There are several existing dwellings along Sandy Point, including other areas disturbed by development impacts, such as the golf course. The sale of the lands would increase the revenue stream for the Park, which would be directed in part to the construction of a trail system that connects to Harrigan Lake and other existing trails in this area of Rockwood Park. Finally, after the build -out of the site has occurred, the tax benefits to the City would be substantial. Section C —Timeline and Engagement 1. Timelines The following timelines identified the important milestones in the event Common Council chooses to proceed with a proactive rezoning and plan amendment for the site. Staff are recommending that a formal public information session be held within the 30 -day objection period that is required prior to a Plan amendment. This session will help inform the public of the details of the development proposals and how it complements the park. Within this scenario, it is important to acknowledge that Council will be given six (6) decision -points before development occurs at1671 Sandy Point Road, including: 16 329 -17- The public will be offered the following formal opportunities to provide input to the six milestone decision -points from Common Council, including: 1. 30 Day Public Presentation Period which will include public awareness program and the opportunity for written submissions to Council (September 18,2017 to October 18, 2017); 2. Planning Advisory Committee Meeting (December 12, 2017); 3. First and Second Reading (January 8, 2018). 17 330 II I111 I� � ® . ® iu iu Y iu Report to Growth Committee 06 -Sep -17 Report to Common Council (Initiate Public Engagement / Commence Municipal Plan Amendment) 18 -Sep -17 Yes Public Presentation Ad in Newspaper 21 -Sep -17 Proposed Public Presentation 22 -Sep -17 Public Presentation (at Common Council Meeting) 02 -Oct -17 Expiry of 30 -day Objection Period 01 -Nov -17 Council consideration of input received from 14 -Nov -17 Yes Public presentation period Potential Referral of Application to PAC PAC Meeting 12 -Dec -17 Public Hearing 08 -Jan -18 Yes Third Reading 22 -Jan -18 Yes Presentation of draft RFP for 1671 Sandy Point Date: TBD Yes Road for Common Council's consideration Signed agreement from successful proposal Date: TBD Yes through RFP process for Council ratification The public will be offered the following formal opportunities to provide input to the six milestone decision -points from Common Council, including: 1. 30 Day Public Presentation Period which will include public awareness program and the opportunity for written submissions to Council (September 18,2017 to October 18, 2017); 2. Planning Advisory Committee Meeting (December 12, 2017); 3. First and Second Reading (January 8, 2018). 17 330 -18- 2. Public engagement As indicated in the timelines illustrated below, there are several points in which Council and the public are able to get involved in the process to offer input on the proposed rezoning. Staff recommend that Council direct the City Manager to establish an additional opportunity for the public to learn more about the recommendations and provide input through a public information session and related public awareness campaign during the 30 day Public Presentation period where staff can share with the public: (1) a profile of the existing site and surrounding area, (2) a rendering that illustrates what development on the site would look like, and (3) options for conditions for development. As with any Plan amendment process, Council retains the option to not proceed with the rezoning of the site after the 30 -day objection period has expired. Hosting a public information session prior to this allows the public access to all relevant information regarding the development of the site. There are multiple opportunities for public input and Council decision throughout the Plan amendment process. If the Council were to vote after the 30 -day Public Presentation period to move forward with the Plan amendment and rezoning of the property, Council would still have the opportunity to re- consider the rezoning of the site following the Public Hearing. Beyond this point, Council would still have the opportunity through the RFP process to negotiate, and re -consider, any applications that they did not wish to entertain. The timelines for the process are presented below. Alternative timeline Staff understand that development on 1671 Sandy Point Road is a challenging matter for Council and the community. As such, and alternative to the above recommended sequencing of the process to consider a Plan amendment for the subject site would be to test the recommended development approach with the public prior to initiating the plan amendment. A public information session could be hosted within the next month along with social media public awareness campaign to solicit feedback that could inform Council in its decision to pursue the plan amendment process. If done this way, the process would be lengthened by approximately one month, but it would introduce an opportunity for input that could shape Council's decision to move forward with the process. 18 331 -19 - SERVICE AND FINANCIAL OUTCOMES The objective through the Roadmap for Smart Growth to pursue and review key parcels of municipal property is to investigate the potential of suitable development opportunities in order to generate tax base growth for Saint John. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS This report was assembled with the support of the following departments and divisions within the City of Saint John: Planning, Infrastructure Planning, City Manager's Office and Saint John Development Corporation. ATTACHMENTS Map of municipally owned properties along Sandy Point Road Appendix 1: Previous Power Point Appendix 2: Site Location Appendix 3: Site Photos Appendix 4: National and Local Development Trends Appendix 5: Canadian Workforce Appendix 6: Low Density Build Out Appendix 7: Medium Density Build Out Appendix 8: High Density Build Out 19 332 Map of Municipally Owned Properties along Sandy Point Road ON Appendix 1: Previous Power Point KNE11 . .... . . .. .. &Ilpl_ m IP(I s1��LGHSJ=f .. ... . ..... .... . . . ..... .. . . ........ IDN . .. . ...... . . . . . ...... 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K -N pl cn ■ N 4-J U (3) •0. 4-J 4-J Jill 4- 0 -04-J Ln 0- 4-J -0 (3) -0Z3 Z > (1) 2 - - = 0 _0 _0 < c 0 E -j •- o 13 - 113- 2 % 0 0 im *dz mal 9P 49 llll:s / � LO LO (Y) 49 s,� llll:s � bo, �4 ?eg Y (� k�cG lid m c � Q o o to r 4:11 L- CL O � o tv ++ c� N a CL 0 a L N CL .w Q LJ Q Q O 0 0 0 rrw is is m m i 0 va S�G ump / 1111 ��{ �� it I ➢ � �I��hiR1`� 9 , rii //, wv ^". �;.. m N ax ell" ✓ 11 va S�G 49 llll:s � bo, �4 OA 4-0 Q N Q _ L L N '0ao L (� ° ° a N a 0 CL 3 00 •- v O a E 3 ++ O 3 - °C c w 0 o QQr�cc � N N_ CL CL 0 V v G°C Q 44 0 0r 0 4a4-0 a '°E °1 °1 >Z, O m CL OCLE s+� 0.oc >O N �' N N G1 G1 vi ++ U N V N w 4a O 4a 0 0 0 OA 49 3 HSI J s, llll:s � bo, �4 `IJ 'Q1s' \ ?eg Y 0') k��rG LO C7 Q O M a N 3 L a Q 0 0 E L Q 6 E - 0o UE o 3 O c- N s o to •N U CL N 0 'Q1s' \ ?eg Y 0') k��rG LO C7 Appendix 2: Site Location Appendix 4: Development Trends Population living in private d�wellings by agei grouX Saint John: 2016 C�ensus, tib' 141) 0 04p 411 9 4r q — Single -detached houses — Other private dwellings Private dwelling refers to a separate set of living quarters with, a private entrance either from outside the building or from a common hail or lobby. 7 SCUrce- Statlsdcs Canada Source- Statistics Ciriada - 2016 CenSLIS. Catalogue Number 98-400-X2016021 SAINT JOHN 371 Appendix 5: Work Force 111111111111111pilpir 1 1111 Illilillil I F] RITOW, ulul SCLJrce,: ReaB Estate Market Cutlook, Canadla, CBRE Research (20 7) 19YA m Appendix 6: Low Density Concept D—.4—+inl Example of Scale and Materiality ; MAI Appendix 6: Low Density Concept Law Density, Single Family residential f KYAL! 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U r a..+ _0 '� c>0 cc N 0O C: E O • aj 'Uaj U � a O a--� M y— ai a--+ aj C: a--+ O C: .— a o a C: W C:a, O aj C � O C: aj O -a m m E E ai U C: ai O C: ai U N -0 'ai C: O 0 U ai cn Q rl N U M I u O �C:00`- � �n r -I ._ U � •� M - N N -0w O .,cc •� = •— c � G U N C . _ 4A U O N O cu 'U O N to � 4- Q � O O •� O p_ N U N 00 � m � 32 Z3 p Q f6 a--+ O U Oa) 0 N N N Z3 E O - -a cn E_� M _0N O O � Q 'X (0 N _ . _ E Q� Utn a v a J� ,+�--' cin O �`�`•- `ate `ate °°��_ u Ln Of _0 O _ � — O O o '� c� �� oc oc Q2 o� 'O O N Ur rl O 6- N • • • N N m Meeting Date I September 18, 2017 Deputy Mayor McAlary and Councillors, Subject: Career Transition Funding RESOLVED that as recommended by the Committee of the Whole, having met on September 18, 2017, Council authorize the Commissioner of Finance to make payment of Career Transition Funding, inclusive of any obligations under the Employment Standards Act, to the individual identified by Employee No. XXXX in an amount equal to one month per year of service or part thereof based on that individual's current salary, together with applicable benefits, less applicable statutory and other deductions, with such payment being conditional upon the receipt of a fully executed Full and Final Release that is satisfactory to the City Manager by a date to be specified by the City Manager." Sincerely, Don Darling Mayor SAINT JOHN P.O. Box 1971 Saint Jahn, NB Canada E2L 4L1 I www.saintjohn.ca I C.R 1971 Saint John, N. -B. Canada E2L 4L1 ---- — I 11NFA Im 13 September, 2017 Mayor Darling and Members of Common Council 8'h Floor City Hall Saint John, NB '3EP 15 201? $5,000,000. Funding for Saint John County Courthouse as New City Hall Building I apologize for the lack of clarity of the full magnitude and benefit to the citizens of Saint John, of my previous donation offer. I will do my best to correct my oversight. My previous offer was intended to act as "seed money". With it the City of Saint John would be able to leverage at a minimum the following additional finds: $1,000,000. National Cost Share Program (non Parks Canada National Historic Sites); $ 500,000. Province of New Brunswick Tourism Heritage and Culture; $1,750,000. Province of N13 Heritage Property Tax Abatement Program; $ 438,000. Saved by purchasing the building for $1 as has happened elsewhere; $ 312,000. Consulting fees in addition to my previous donation. $4,000,000, Sub Total $ 1,000.000. Previous Donation Offer $5,0010.000. Grand Total funds only available for Saint Jol-m County Courthouse I appreciate that the City of Saint John is committed to proceeding with a process that was established. It is also encouraging and refreshing to see that the City is intent upon making sure that this process is fair and transparent for all developers. However, given that these funds noted above are only available for heritage buildings, Council may wish to reconsider and possibly amend, the terms of reference of the request for proposals for a new City Hall, such that heritage buildings and specifically the former Saint John County Courthouse, could be included. In doing so, Council could eliminate the anticipated $5 million deficit not only next year, but also into the future. Resp tfully submitted, Jim Bezanson Jim ERU] may",