2019-11-18_Agenda Packet--Dossier de l'ordre du jourCity of Saint John
Common Council Meeting
AGENDA
Monday, November 18, 2019
6:00 pm
8th Floor Common Council Chamber (Ludlow Room), City Hall
Si vous avez besoin des services en francais pour une reunion de Conseil communal, veuillez contacter le
bureau du greffier communal au 658-2862.
Pages
1. Call to Order
2. Approval of Minutes - November 4, 2019 6-19
3. Approval of Agenda
4. Disclosures of Conflict of Interest
5. Consent Agenda
5.1
Central Peninsula Secondary Plan, Municipal Plan, Zoning By-law and Heritage
20-31
By-law Amendments Referral Report (Recommendation in Report)
5.2
Cleanup of Unsightly Properties at Various Locations (Recommendation in
32-76
Report)
5.3
Saint John Diocesan Cemeteries Inc. — Holy Cross Cemetery correspondence
77-82
—Approval of Mausoleum (Recommendation in Report)
5.4
Council Members Wage Escalation Clause (Recommendation in Report)
83-86
5.5
West Saint John Drinking Water Transition Schedule Update
87-89
(Recommendation: Receive for Information)
5.6
Microsoft Business and Services Agreement—Annual Update Statements
90-93
(Recommendation in Report)
5.7
Security Information and Event Management (SI EM) Contract Award
94-105
(Recommendation in Report)
106-107
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5.8 Saint John Hotel Association Sponsorship of Ice Sport Non -Resident User Fees
2019-2020 (Recommendation in Report)
6.
Members Comments
7.
Proclamation
8.
Delegations / Presentations
9.
Public Hearings - 6:30 p.m.
10.
Consideration of By-laws
11.
Submissions by Council Members
11.1 Flyer Delivery Bylaw (Councillor Hickey) (Tabled on November 4, 2019)
108-108
12.
Business Matters - Municipal Officers
12.1 Continuous Improvement Initiatives (Verbal Update)
12.1.1 Presentation (Tabled on November 4, 2019)
109-115
12.2 Sustaining Saint John (Verbal Update)
12.2.1 Sustainability: Process for Approving Initiatives
116-119
12.2.2 Sustaining Saint John — A Three -Part Plan (Status Update)
120-125
12.3 Fire Service Fee Recovery — Sustainability Item
126-129
12.4 Passport to Parks — Sustainability Item (Tabled on November 4, 2019)
130-134
12.5 Lifeguards — Sustainability Item (Tabled on November 4, 2019)
135-139
12.6 Rightsizing Recreation Facilities: Rainbow Park Ice Surface - Sustainability
140-143
Item (Tabled on November 4, 2019)
12.7 Rightsizing Recreation Facilities: Seaside Park Lawn Bowling - Sustainability
144-147
Item
12.8 Playground Program — Sustainability Item
148-153
12.9 Transition to new City Hall Location (Verbal Update)
12.10 Demolition of Vacant, Dilapidated and Dangerous Buildings at 142-144
154-190
Highland Road (PID 55196711)
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12.11 Demolition of Vacant, Dilapidated and Dangerous Building at 47-49 Broad
191-221
Street (PID00000778)
12.12 Water & Sewer Rate Study
222-299
12.13 East and West Industrial Raw Water Rate Reports
300-380
12.14 Cities of New Brunswick Association Resolution — Amendments to the
381 -390
Industrial Relations Act
13.
Committee Reports
14.
Consideration of Issues Separated from Consent Agenda
15.
General Correspondence
15.1 Saint John Police Association - Code of Conduct Complaint
391 -394
15.2 Saint John Board of Police Commissioners: City of Saint John Wage
395-395
Escalation Policy (Recommendation: Receive for Information)
15.3 Saint John Police Force - 2019 Operating Budget - August Financial Results
396-402
(Recommendation: Receive for Information)
15.4 Ticket Purchase Request: 2019 4Gwanis Club of Saint John Annual Christmas
403-403
Breakfast (Recommendation: Refer to Clerk to purchase tickets for interested
Council members)
15.5 CUPE / ATU Local 1182 / Saint John Police Association - Request to Present
404-405
re: Industrial Tax Reform
15.6 ME Carpenter Letter re: Saint John Transit (Recommendation: Receive for
406-406
Information)
15.7 D. Stubbs -Lee - Saint John Transit Cuts (Recommendation: Receive for
407-407
Information and Refer to Transit Commission)
15.8 D. Bowen Letter - 348 Acamac Backland Road
408-409
16.
Supplemental Agenda
17.
Committee of the Whole
17.1 Lease Termination - The Donut Queen Inc. in the City Market
410-411
17.2 Christmas Events Budget
412-412
18.
Adjournment
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City of Saint John
Common Council Meeting
Monday, November 18, 2019
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 68(1) of the Local Governance Act and Council / Committee will
make a decision(s) in that respect in Open Session:
4:00 p.m., 8th Floor Boardroom, City Hall
1.1 Approval of Minutes 68(1)
1.2 Financial Matter 68(1)(c)
1.3 Financial Matter 68(1)(c)
1.4 Financial Matter 68(1)(c)
1.5 Legal Matter 68(1)(f)
1.6 Financial Matter 68(1)(c)
1.7 Financial Matter 68(1)(c,d)
1.8 Employment Matter 68(1)0)
1.9 Personal Matter 68(1)(b)
1.10 Employment Matter 68(1)0)
Ville de Saint John
S6ance du conseil communal
Lundi 18 novembre 2019
18h
Salle du conseil communal (salle Ludlow), an 8e 6tage de 1'h6tel de ville
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 du greffier communal au 658-2862.
Chacun des points suivants, en totalit6 ou en partie, peut faire l'objet d'une discussion en
prive en vertu des dispositions prevues au paragraphe 68(1) de la Loi sur la gouvernance
locale. Le conseil/comite prendra une ou des decisions a cet egard au cours de la seance
publique :
16h, Salle de conf6rence, 8e 6tage, h6tel de ville
1.1
Approbation du proces-verbal — paragraphe 68(1)
1.2
Questions financieres
— alinea 68(1)c)
1.3
Questions financieres
— alinea 68(1)c)
1.4
Questions financieres
— alinea 68(1)c)
1.5
Questions juridiques —
alinea 68(1)(f)
1.6
Questions financieres
— alinea 68(1)c)
1.7
Questions financieres
— alineas 68(1)c) et d)
1.8
Question d'emploi — alinea
68(1)j)
1.9
Question personnelle
— alinea 68(1)b)
1.1OQuestion d'emploi — alinea
68(1)j)
S6ance ordinaire
1. Ouverture de la s6ance
2. Approbation du proces-verbal
2.1 Proces-verbal de la reunion du 4 novembre 2019
3. Adoption de l'ordre du jour
4. Divulgations de conflits d'int6rets
5. Questions soumises a 1'approbation du conseil
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5.1 Central Peninsula Secondary Plan, Municipal Plan, Zoning By -Law and
Heritage By -Law Amendments Referral Report (Recommendation in
Report)
5.2 Nettoyage des propriWs inesth&tiques a diff6rents endroits
(recommandation contenue dans le rapport)
5.3 Correspondance &chang&e entre le Saint John Diocesan Cemetery Co. Inc.
et le cimeti&re Holy Cross — Approbation d'un mausol6e (recommandation
contenue dans le rapport)
5.4 Clause d'indexation des salaires dans le cas des membres du Conseil
(recommandation contenue dans le rapport)
5.5 Mise a jour du calendrier de transition concernant Peau potable a Saint
John Ouest (recommandation : d&p6t pour information)
5.6 Accord commercial (et prestation de services) conclu avec Microsoft —
Mise a jour annuelle (recommandation contenue dans le rapport)
5.7 Attribution d'un contrat de gestion d'information et d'&v&nements de
s&curit& (SIEM) (recommandation dans le rapport)
5.8 Commandite de la Saint John Hotel Association en cc qui concerne les
frais d'utilisation des services de sport sur glace par des non-r&sidents
(recommandation contenue dans le rapport)
6. Commentaires pr6sent6s par les membres
7. Proclamation
8. D616gations et pr6sentations
9. Audiences publiques —18 It 30
10. Etude des arrWs municipaux
11. Interventions des membres du conseil
11.1 Reglement concernant la livraison de d6pliants (conseiller Hickey) (d&p6t
le 4 novembre 2019)
12. Affaires municipales 6voqu6es par les fonctionnaires municipaux
12.1 Initiatives d'am&lioration continue (mise a jour verbale)
12. 1.1 Pr6sentation (d&pos&e le 4 novembre 2019)
12.2 Soutenir Saint John (Mise a jour verbale)
12.2.1 Durabilit& : Processus d'approbation des initiatives
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12.2.2 Soutenir Saint John — Un plan d'action en trois parties (rapport de
situation)
12.3 Recouvrement des frais des services d'incendie — Point sur la viabilit&
12.4 Passeport pour les pares — Point sur la viabilit& (depot le 4 novembre
2019)
12.5 Sauveteurs — Point sur la viabilit& (depot le 4 novembre 2019)
12.6 Redimensionnement des installations r&cr&atives : Surface de glace du
pare Rainbow — Point sur la viabilit& (depot le 4 novembre 2019)
12.7 Redimensionnement des installations recreatives : Seaside Park Lawn
Bowling — Point sur la viabilit&
12.8 Programme d'aires de jeux — Point sur la viabilit&
12.9 Transition vers le nouvel emplacement de 1'h6tel de ville (mise a jour
verbale)
12.10 Demolition de bdtiments inoccup&s, d&labr&s et dangereux situ&s au
142.144, Chemin Highland (PID 55196711)
12.11 Demolition d'un bdtiment vacant, d&labr& et dangereux situ& au 47-49, rue
Broad (PID 00000778)
12.2 Etude des couts des syst&mes d' aqueduc et d' &gouts
12.3 Rapports sur les couts de Peau industrielle non trait&e, dans 1'Est et dans
1' Ouest
12.4 R&solution de 1'Association des municipalit&s du Nouveau- Brunswick —
Modifications apport&es a la Loi sur les relations industrielles
13. Rapports d6pos6s par les comit6s
14. Etude des sujets 6cart6s des questions soumises a 1'approbation du Bureau
15. Correspondance g6n6rale
15.1 Saint John Police Association — Plainte relative au code de conduite
15.2 Comit& des commissaires de police de Saint John : Politique de la Ville de
Saint John en mati&re d'indexation des salaires (recommandation : d&pot
pour information)
15.3 Service de police de Saint John — Budget de fonctionnement pour 2019 —
R&sultats financiers pour le mois d'aout (recommandation : d&pot pour
information)
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15.4 Demande d'achat de billets : D&jeuner de Noel annuel du Club Kiwanis de
Saint John — 2019 (recommandation : voir le greffier pour acheter des
billets a 1'intention des membres du Conseil int6ress6s)
15.5 SCFP/Section locale 1182 de FATU /Saint John Police Association —
Demande de pr6sentation concernant la r6forme de la fiscalit& industrielle
15.6 Lettre de M.E. Carpenter concernant Saint John Transit (recommandation
d&p6t pour information)
15.7 D. Stubbs -Lee — Coupures a Saint John Transit Commission
(recommandation : d&p6t pour information et renvoi a la Transit
Commission)
15.8 Lettre de D. Bowen concernant le 348, chemin Acamac Backland
16. Ordre du jour suppl6mentaire
17. Comit6 pl6nier
17.1 R&siliation du bail — The Donut Queen Inc. au City Market
17.2 Budget des &v&nements de Noel
18. Lev& de la s6ance
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COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
N.
/ �—
MINUTES — REGULAR MEETING
COMMON COUNCIL OF THE CITY OF SAINT JOHN
NOVEMBER 4, 2019 AT 6:00 PM
IN THE COUNCIL CHAMBER
Present: Mayor Don Darling
Deputy Mayor Shirley McAlary
Councillor -at -Large Gary Sullivan
Councillor Ward 1 Blake Armstrong
Councillor Ward 1 Greg Norton
Councillor Ward 2 Sean Casey
Councillor Ward 2 John MacKenzie
Councillor Ward 3 David Hickey
Councillor Ward 3 Donna Reardon
Councillor Ward 4 David Merrithew
Councillor Ward 4 Ray Strowbridge
Also Present: City Manager J. Collin
City Solicitor J. Nugent
Fire Chief K. Clifford
Police Officer S. Rocca
Commissioner Saint John Water B. McGovern
Commissioner Growth and Community Development J. Hamilton
Commissioner Finance and Treasurer K. Fudge
Commissioner Transportation and Environment M. Hugenholtz
Common Clerk J. Taylor
Deputy Common Clerk P. Anglin
C.1
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
1. Call to Order
2. Approval of Minutes
2.1 Minutes of October 21, 2019
Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan:
RESOLVED that the minutes of the meeting of Common Council held on October 21,
2019, be approved.
MOTION CARRIED.
3. Approval of Agenda
Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan:
RESOLVED that the agenda of this meeting be approved with the addition of Item 17.1
Independent Business Valuation of Saint John Energy's Growth Agenda.
MOTION CARRIED.
4. Disclosures of Conflict of Interest
Councillor Sullivan declared a conflict with item 12.4 Recreation Cards: Samuel -de -
Champlain School's Request for Exemption.
S. Consent Agenda
5.1 That as recommended by the City Manager in the submitted report M&C 2019-
268: Geographic Information Systems Enterprise Software License Renewal, the City
renew its enterprise software agreement with Environmental Systems Research
Institute, Inc. (Esri) for a term of 3 years in the form submitted with M&C No. 2019-268
for $64,120 (plus applicable taxes) for the first year, $65,260 (plus applicable taxes) for
the second year and $66,420 (plus applicable taxes) for the third year; and further that
the Mayor and Common Clerk be authorized to execute the submitted documents: Esri
Small Enterprise Agreement Local Government (E214i); Esri Small Government
Enterprise Agreement (SG -EA) Quote # 00019102; and Esri Canada Sales Proposal
Proposition.
5.2 That as recommended by the City Manager in the submitted report M&C 2019-
272: National Disaster Mitigation Program (NDMP) Funding Sub -Contribution
Agreements, Common Council authorize the Mayor and Common Clerk to execute the
submitted two Funding Sub -Contribution Agreements under the National Disaster
Mitigation Program: the Saint John River Flood Mitigation Plan, and the Flood Proofing
Design for Musquash Water Pumping Station.
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COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
5.3 That as recommended by the Planning Advisory Committee in the submitted
report Subdivision (Money -in -Lieu of Land for Public Purposes) 40 Waterview Place,
Common Council authorize the acceptance of money -in -lieu of the required Land for
Public Purposes for the proposed subdivision at 40 Waterview Place (PID 00049924).
5.4 That as recommended by the City Manager in the submitted report Subdivision
(Money -in -Lieu of Land for Public Purposes) 431 Millidge Avenue, Common Council
authorize the acceptance of money -in -lieu of the required Land for Public Purposes for
the proposed subdivision at 431 Millidge Avenue (PID 00041483).
5.5 That as recommended by the City Manager in the submitted report Subdivision
(Money -in -Lieu of Land for Public Purposes) 4343 Loch Lomond Road, Common Council
authorize the acceptance of money -in -lieu of the required Land for Public Purposes for
the proposed subdivision at 4343 Loch Lomond Road (PIDs 55206114 and 55024855).
5.6 That as recommended by the City Manager in the submitted report M&C 2019-
286: Enhanced Reporting Process for Closed Session Meetings, the City Manager be
directed to implement the following closed meeting practices commencing on
November 4t", 2019: Recommendations from closed session Committee of the Whole of
Council which require a resolution to be adopted by Common Council in a regular open
session meeting are to be accompanied by a Committee of the Whole report to form
part of the public record.
5.7 That as recommended by the City Manager in the submitted report M&C 2019-
269: Amendment 1 to Unified Communications - Centrex Multi -Provincial Blended Rates
Services Schedule, the Mayor and Common Clerk be authorized to execute the
Amendment 1 to Unified Communications - Centrex Multi -Provincial Blended Rates
Services Schedule agreement with Bell Aliant for landline telecommunications at the
rates listed in the submitted existing agreement.
5.8 That as recommended by the City Manager in the submitted report M&C 2019-
280: Website Reserve for 2020, the City Manager / Commissioner of Finance place up to
$120,000, currently in the 2019 information technology operational budget, into a
reserve to be expended in 2020 to finish the website project.
5.9 That as recommended by the City Manager in the submitted report M&C 2019-
278: Carleton Community Centre HVAC Upgrades, the tender submitted by Eclipse
Construction Services Ltd., for the HVAC Upgrades, in the amount of $307,343.43 plus
HST be accepted; and further to the base tender amount, it is recommended that a
contingency allowance be carried for this project in the amount of $15,000 plus HST, for
a total project cost of $322,343.43 plus HST; and that the Mayor and Common Clerk be
authorized to execute the necessary contract documents.
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COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
5.10 That as recommended by the City Manager in the submitted report M&C 2019-
277: New Solid Waste Model Business Case, Common Council:
1. Approve setting aside $80,000 into a Capital Reserve in 2019 for the future
investment in the Solid Waste Collection Pilot Program; and
2. Adjust the 2020 Capital Budget to include the funding to support this project.
5.11 That as recommended by the City Manager in the submitted report M&C 2019-
282: Industrial Hygiene - Firefighter Training Centre Initiative, Common Council adopts
the following:
• Common Council approve the transfer of $95,500 from the Fire Department's 2019
Operating Budget surplus to a Capital Budget reserve account for the purpose of
supporting the Industrial Hygiene Firefighter Training Centre Initiative; and
• The City of Saint John enter into a Lease Contract with Canlease Inc. for a 40x24
Custom Complex designed and manufactured by Alantra Leasing Inc. at a monthly
cost of $2,375 plus HST over a 66 month period in the form attached to M&C No.
2019-282; and
• The Mayor and Common Clerk be authorized to execute the contract documents.
5.12 That as recommended by the City Manager in the submitted report M&C 2019-
283: CAER & Fire Prevention Relocation Project, Common Council adopts the following:
That Common Council approve the transfer of $195,244 from the Fire Department's
2019 Operating Budget surplus to a Capital Budget reserve account for the purpose of
advancing the Community Awareness Emergency Response (CAER) Level 1 initiative, and
further support the associated relocation of Fire Prevention and Investigation Division.
Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan:
RESOLVED that the recommendation set out in each consent agenda item respectively
be adopted.
MOTION CARRIED UNANIMOUSLY.
6. Members Comments
Council members commented on various community events.
7. Proclamations
8. Delegations/Presentations
9. Public Hearings 6:30 PM
CI
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
9.1 Proposed Municipal Plan Amendment and Zoning Bylaw Amendment — 348
Acamac Backland Road with Staff Presentation (151 and 2nd Reading)
9.1.1 Municipal Plan Amendment (151 and 2nd Reading)
9.1.2 Zoning ByLaw Amendment (151 and 2nd Reading)
Commissioner Hamilton described the application by Fundy Regional Services
Commission to extract clay for landfill liner operations from Acamac Backland Road. The
Commissioner outlined the following submitted recommendations for Common Council
to consider:
PAC recommendations:
1. Deny the application
2. If approved, apply conditions
Staff Supplemental report
• Approve the Application with conditions, including the PAC conditions.
Planner M. Reade provided a PowerPoint review on the Acamac bylaw amendment.
The Common Clerk advised that the necessary advertising was completed with regard to
the proposed Municipal Plan and Re -zoning amendments amending Schedule A of the
Municipal Plan Bylaw — City Structure, by redesignating parcels of land with an area of
approximately 5.9 hectares located at 348 Acamac Backland Road, also identified as
portions of PID No. 00289595 from Park and Natural Area to Rural Resource Area
classification; and amending Schedule B of the Municipal Plan — Future Land Use, by
redesignating the same parcels of land from Park and Natural Area to Rural Resource
classification; and by amending Schedule "A", the Zoning Map of The City of Saint John,
by re -zoning a parcel of land having an area of approximately 1.3 hectares, being the
private roadway known as Yellow Gate Road, also identified as a portion of PID Nos.
00289454 and 00289595, from Rural (RU) to Pit and Quarry (PQ); and amending
Schedule "A", the Zoning Map of The City of Saint John, by re -zoning parcels of land
having an area of approximately 16.1 hectares, located at 348 Acamac Backland Road,
also identified as portions of PID No. 00289595, from Rural (RU) to Pit and Quarry (PQ),
as requested by Fundy Regional Service Commission, with letters of objection and
support received.
Consideration was given to a report from the Planning Advisory Committee submitting a
copy of Planning staff's report considered at its October 161h, 2019 at which time the
Committee recommended that Common Council deny the application.
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ito]
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
The Mayor called for members of the public to speak against the Municipal Plan and Re-
zoning amendments with the following presenting opposed to extracting clay from a
natural wetland:
• Eric Falkjar, Chair PAC (all natural wetlands are significant, this site has been
identified by the Province and protected by Plan SJ Policy LU -100)
• Mr. Dbout, 14 Cardinal Lane, Morna Heights (impacts of climate change, impact
on the biodiversity of freshwater wetlands)
• Dale Kilpatrick, Crane Mountain Enhancement Inc. (alternate liner systems exist
to clay liners)
• David Bowen, Ketepec (Clay Pit or quarry development and residential tax
assessment)
• Jim Stubbs, 2184 Westfield Road (wetland environment)
• Fred Belyea, 29 Red Bridge Lane (blasting activity concerns presented by Jim
Stubbs)
• Peter Furness (well water concerns)
• Mark Richards, 12 Red Bridge Lane (air quality / distance from proposed quarry)
• Roberta Lee, Bay Crescent Road, Morna Heights (questioned finance savings)
• Julie Dingwell (bald eagle, wood turtle habitat in the wetland area)
The Mayor called for members of the public to speak in favour of the Municipal Plan and
Re -zoning amendment with the following presenting:
• Mark McLeod, Executive Director of the Fundy Regional Service Commission
(FRSC) (Clay alternatives investigated with CBCL and Dal Tech did not meet
mandated Provincial liner requirements)
• Marco Sivitilli, Engineer Gemtec Limited / Consultant FRSC (search for clay
material from NBDNR surficial geological mapping, access road exists for
proposed clay source area, not near housing, engineering assessments
conducted summer 2018 clay was acceptable to mandated standard of NB
Department Environment and Local Government)
The Mayor called a five minute recess at 8:20 p.m. The meeting reconvened at 8:25 p.m.
• Abigail Garnett, Gemtec Limited (EIA Process Public Consultation May 2019
concerns submitted to the Department of the Environment EIA process)
• Robert Cyr Engineer (Blasting survey and blasting operations)
• David Harper for John Law Corporation (owner)
Responding to a question on the urgency of the matter, Commissioner Hamilton
cautioned the application has a 6 month legislated timeline for approval by Council and
that the EIA may not be completed within that timeline.
t'd
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COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
Moved by Commissioner Hickey, seconded by Deputy Mayor McAlary:
RESOLVED That the matter be tabled until the Environmental Impact Assessment is
completed.
MOTION TIED with Councillors Casey, Reardon, Strowbridge, Sullivan and Merrithew
voting nay and Deputy Mayor McAlary, and Councillors Norton, MacKenzie, Hickey and
Armstrong voting in favour.
MOTION DEFEATED with Mayor Darling breaking the tie, voting against the tabling
motion.
Moved by Councillor Merrithew, seconded by Councillor Reardon:
RESOLVED that Council approve the staff recommendation, with Section 59 conditions,
in the supplemental report as follows:
• Access to excavation areas to Yellow Gate Road
• Limit use of Yellow Gate Road uses permitted in PQ and RU zones
• Clay and aggregate material from site can only be used for landfill operations
• Confirmation that all Provincial approvals (EIA, Wetland/Watercourse) must be
provided to the Development Officer
• Confirmation of all Provincial access approvals must be provided to the
Development Officer
• $5000 annual contribution to parks, green spaces and community facilities in
KBM area — via City LPP fund.
MOTION TIED with Deputy Mayor McAlary and Councillors Norton, MacKenzie, Hickey
and Armstrong voting nay and Councillors Casey, Reardon, Strowbridge, Sullivan and
Merrithew voting in favour.
MOTION CARRIED with Mayor Darling breaking the tie, voting in favour of the motion.
Moved by Councillor Merrithew, seconded by Councillor Reardon:
RESOLVED that the by-law entitled, "A Law to Amend the Municipal Plan By -Law"
amending Schedule A of the Municipal Plan Bylaw — City Structure, by redesignating
parcels of land with an area of approximately 5.9 hectares located at 348 Acamac
Backland Road, also identified as portions of PID No. 00289595 from Park and Natural
Area to Rural Resource Area classification; and amending Schedule B of the Municipal
Plan — Future Land Use, by redesignating the same parcels of land from Park and Natural
Area to Rural Resource classification, be read a first time.
MOTION TIED with Deputy Mayor McAlary and Councillors Norton, MacKenzie, Hickey
and Armstrong voting nay and Councillors Casey, Reardon, Strowbridge, Sullivan and
Merrithew voting in favour.
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COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
MOTION CARRIED with Mayor Darling breaking the tie, voting in favour of the motion.
Read a first time by title, the by-law entitled, "A Law to Amend the Municipal Plan By -
Law."
Moved by Councillor Sullivan, seconded by Councillor Merrithew:
RESOLVED that the by-law entitled, "A Law to Amend the Municipal Plan By -Law"
amending Schedule A of the Municipal Plan Bylaw — City Structure, by redesignating
parcels of land with an area of approximately 5.9 hectares located at 348 Acamac
Backland Road, also identified as portions of PID No. 00289595 from Park and Natural
Area to Rural Resource Area classification; and amending Schedule B of the Municipal
Plan — Future Land Use, by redesignating the same parcels of land from Park and Natural
Area to Rural Resource classification, be read a second time.
MOTION TIED with Deputy Mayor McAlary and Councillors Norton, MacKenzie, Hickey
and Armstrong voting nay and Councillors Casey, Reardon, Strowbridge, Sullivan and
Merrithew voting in favour.
MOTION CARRIED with Mayor Darling breaking the tie, voting in favour of the motion.
Read a second time by title, the by-law entitled, "A Law to Amend the Municipal Plan
By -Law."
Moved by Councillor Sullivan, seconded by Councillor Merrithew:
RESOLVED that the by-law entitled, "A Law to Amend the Zoning By -Law of The City of
Saint John", amending Schedule "A", the Zoning Map of The City of Saint John, by re-
zoning a parcel of land having an area of approximately 1.3 hectares, being the private
roadway known as Yellow Gate Road, also identified as a portion of PID Nos. 00289454
and 00289595, from Rural (RU) to Pit and Quarry (PQ); and amending Schedule "A", the
Zoning Map of The City of Saint John, by re -zoning parcels of land having an area of
approximately 16.1 hectares, located at 348 Acamac Backland Road, also identified as
portions of PID No. 00289595, from Rural (RU) to Pit and Quarry (PQ), be read a first
time.
MOTION TIED with Deputy Mayor McAlary and Councillors Norton, MacKenzie, Hickey
and Armstrong voting nay and Councillors Casey, Reardon, Strowbridge, Sullivan and
Merrithew voting in favour.
MOTION CARRIED with Mayor Darling breaking the tie, voting in favour of the motion.
Read a first time by title, the by-law entitled, "A Law to Amend the Zoning By -Law of The
City of Saint John."
Moved by Councillor Sullivan, seconded by Councillor Merrithew:
g
13
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
RESOLVED that the by-law entitled, "A Law to Amend the Zoning By -Law of The City of
Saint John", amending Schedule "A", the Zoning Map of The City of Saint John, by re-
zoning a parcel of land having an area of approximately 1.3 hectares, being the private
roadway known as Yellow Gate Road, also identified as a portion of PID Nos. 00289454
and 00289595, from Rural (RU) to Pit and Quarry (PQ); and amending Schedule "A", the
Zoning Map of The City of Saint John, by re -zoning parcels of land having an area of
approximately 16.1 hectares, located at 348 Acamac Backland Road, also identified as
portions of PID No. 00289595, from Rural (RU) to Pit and Quarry (PQ), be read a second
time.
MOTION TIED with Deputy Mayor McAlary and Councillors Norton, MacKenzie, Hickey
and Armstrong voting nay and Councillors Casey, Reardon, Strowbridge, Sullivan and
Merrithew voting in favour.
MOTION CARRIED with Mayor Darling breaking the tie, voting in favour of the motion.
Read a second time by title, the by-law entitled, "A Law to Amend the Zoning By -Law of
The City of Saint John."
Moved by Councillor Reardon, seconded by Councillor Hickey:
RESOLVED that following Procedural Bylaw requirements, the meeting proceed beyond
the hour of 10:00 p.m.
MOTION CARRIED with Councillors Sullivan, Strowbridge and Merrithew voting nay.
10. Consideration of By-laws
10.1 Procedural Bylaw Amendment re: Distribution of Correspondence (3rd Reading)
Moved by Deputy Mayor McAlary, seconded by Councillor Reardon:
RESOLVED that the by-law entitled, "By -Law Number L.G. 2 A Law to Amend a By -Law
respecting the Procedure of the Common Council of The City of Saint John", be
amended by adding subsection 8.6.1 which would dictate the confidentiality of
correspondence and associated material distributed to Council members by the
Common Clerk in advance of the public distribution of the Council kit, pending public
distribution of that kit, be read.
MOTION CARRIED with Councillor Sullivan voting nay.
The by-law entitled, "By -Law Number L.G. 2 A Law to Amend a By -Law respecting the
Procedure of the Common Council of The City of Saint John", was read in its entirety.
Moved by Deputy Mayor McAlary, seconded by Councillor Hickey:
01
14
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
RESOLVED that the by-law entitled, "By -Law Number L.G. 2 A Law to Amend a By -Law
respecting the Procedure of the Common Council of The City of Saint John", be
amended by adding subsection 8.6.1 which would dictate the confidentiality of
correspondence and associated material distributed to Council members by the
Common Clerk in advance of the public distribution of the Council kit, pending public
distribution of that kit, be read a third time, enacted, and the Corporate Common Seal
affixed thereto.
MOTION CARRIED with Councillor Sullivan voting nay.
Read a third time by title, the by-law entitled, "By -Law Number L.G. 2 A Law to Amend a
By -Law respecting the Procedure of the Common Council of The City of Saint John".
10.2 Supplemental: City of Saint John Tourism Accommodation Levy Bylaw
Commissioner Hamilton advised Council that the legislated mandatory tourism levy
builds on the past voluntary levy in place during the past decade. Mr. Hayes, a Bed and
Breakfast owner, has requested to present his concerns to Council. It is not
recommended that Mr. Hayes be permitted to present at this time. The bylaw does not
require a public hearing. Staff has had follow-up discussions with Mr. Hayes and a
supplemental report addresses some of Mr. Hayes' concerns dealing with his perception
of administrative hardship on small business owners. Sufficient flexibility is provided in
the bylaw with respect to reporting. Staff will conduct information sessions for business
accommodation operators in November.
Moved by Councillor Merrithew seconded by Councillor Reardon:
RESOLVED that the submitted report M&C 2019-84: Supplemental: City of Saint John
Tourism Accommodation Levy Bylaw, be received for information.
MOTION CARRIED.
10.2.1 P. Hayes Request to Present re: Tourism Accommodation Levy
Moved by Councillor Merrithew, seconded by Councillor Reardon:
RESOLVED that the request by Mr. Hayes to present, be denied.
MOTION CARRIED.
10.2.2 Tourism Accommodation Levy By -Law (3rd Reading)
Moved by Deputy Mayor McAlary, seconded by Councillor Sullivan:
RESOLVED that the by-law entitled, "By -Law Number L.G. 7 A By -Law relating to a
Tourism Accommodation Levy in The City of Saint John", be read.
10
15
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
MOTION CARRIED.
In accordance with the Local Governance Act sub -section 15(3) the by-law entitled, "By -
Law Number L.G. 7 A By -Law relating to a Tourism Accommodation Levy in The City of
Saint John" instead of being read in its entirety was read in summary as follows:
• "The new Tourism Accommodation Levy is to begin on January 15t, 2020.
• The funds collected will continue to be invested into tourism promotion and
development.
• A levy of 3.5% will be applied.
• The City of Saint John will collect and administer the levy (Finance and
Administrative Services).
• No minimum threshold of number of rooms for operators.
• Those exempt from the levy include:
o student who is accommodated in a building owned or operated by a
post -secondary educational institution while the student is registered;
o accommodated in a room for more than 31 consecutive days.
• Monthly reporting will be expected from participating operators.
• Clarity on interest, liens, enforcement and offence (fines and administrative
penalties).
The City of Saint John Bylaw defines "tourism accommodation" as: "any premises
operated to provide, for remuneration, temporary sleeping accommodation for the
public for a continuous period not exceeding 31 days, and includes hotels, motels, inns,
bed and breakfasts, resorts, hostels, campgrounds consisting of tents, yurts, cabins and
trailer sites, buildings owned or operated by a post -secondary institution, any other
facility or building which contains rooms offered as accommodations or rental units and
dwelling units that are offered as lodgings."
Moved by Deputy Mayor McAlary, seconded by Councillor Merrithew:
RESOLVED that the by-law entitled, "By -Law Number L.G. 7 A By -Law relating to a
Tourism Accommodation Levy in The City of Saint John", 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 L.G. 7 A By -Law relating
to a Tourism Accommodation Levy in The City of Saint John".
11. Submissions by Council Members
11.1 Flyer Delivery Bylaw (Councillor Hickey)
11
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
Moved by Councillor Hickey, seconded by Deputy Mayor McAlary:
RESOLVED that the Flyer Delivery Bylaw be tabled to the next meeting.
MOTION CARRIED.
12. Business Matters - Municipal Officers
12.1 Continuous Improvement Initiatives
12.2 Sustainability
12.2.1 Rightsizing Recreation Facilities: Rainbow Park Ice Surface — Sustainability
Item
12.2.2 Lifeguards — Sustainability Item
12.2.3 Passport to Parks — Sustainability Item
12.2.4 On -Street Parking Increase — Sustainability Item
Moved by Councillor Merrithew, seconded by Councillor Hickey:
RESOLVED that items Continuous Improvement 12.1 and Sustainability 12.2.1, 12.2.2,
12.2.3 and 12.2.4 be tabled to the next meeting of Council.
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Councillor Hickey withdrew from the meeting.
12.3. Recreation Cards: Overall Program Update
Referring to the submitted report entitled Recreation Cards: Overall Program Update
Deputy Commissioner O'Reilly outlined issues relating to the Recreation Card Program
implementation including cooperation by user groups, participants' ability to acquire
recreation cards, groups providing residency data, missing, incorrect, or incomplete
information circulating to the public about the program, definition of a visiting team,
elite players not requiring recreation cards, fairness of the program, and enforcement.
The City Manager commented that enforcement to check the recreation cards at the
rinks is being contracted out.
Moved by Councillor Reardon, seconded by Deputy Mayor McAlary:
RESOLVED that the submitted report M&C2019-260: Recreation Cards: Overall Program
Update, be received for information.
MOTION CARRIED.
Councillors Sullivan and Norton withdrew from the meeting.
12.4 Recreation Cards: Samuel -de -Champlain School's Request for Exemption
12
17
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
12.5 Recreation Card Program: Lord Beaverbrook Rink Participation
Moved by Deputy Mayor McAlary, seconded by Councillor Reardon:
RESOLVED that items 12.4 Recreation Cards: Samuel -de -Champlain School's Request for
Exemption and 12.5 Recreation Card Program: Lord Beaverbrook Rink Participation
be tabled until next meeting.
MOTION CARRIED.
Councillors Sullivan and Norton reentered from the meeting.
13. Committee Reports
14. Consideration of Issues Separated from Consent Agenda
15. General Correspondence
15.1 Ticket Purchase Request: PRUDE Diversity Champion Awards 2019
Moved by Deputy Mayor McAlary, seconded by Councillor Reardon:
RESOLVED that the Ticket Purchase Request: PRUDE Diversity Champion Awards 2019
be referred to the Clerk to purchase tickets for interested Council members.
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15.2 Uptown Saint John: City Infrastructure Projects in Uptown Saint John
Moved by Councillor Reardon, seconded by Deputy Mayor McAlary:
RESOLVED that the letter from Uptown Saint John: City Infrastructure Projects in
Uptown Saint John be referred to the City Manager.
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16. Supplemental Agenda
17. Committee of the Whole
17.1 Independent Business Valuation of Saint John Energy's Growth Agenda
Moved by Councillor Reardon, seconded by Deputy Mayor McAlary:
RESOLVED that as recommended by the Committee of the Whole having met on
November 4t", 2019 Common Council approve the following:
13
iF:3
COMMON COUNCIL/ CONSEIL COMMUNAL
November 4, 2019 / le 4 novembre 2019
1. Authorize the Mayor and Common Clerk to execute the submitted Letter of
Engagement dated October 30th, 2019; and,
2. Approve a maximum of $50,000 be allocated from the Restructuring Reserve Fund
to support the Independent Business Valuation of Saint John Energy's Growth
Agenda, only to be used if there are insufficient operating funds remaining in the
2019 budget to offset the associated Deloitte engagement costs.
MOTION CARRIED.
18. Adjournment
Moved by Councillor MacKenzie, seconded by Councillor Armstrong:
RESOLVED that the meeting of Common Council held on November 4, 2019, be
adjourned.
MOTION CARRIED.
The Mayor declared the meeting adjourned at 10:35 p.m.
14
COUNCIL REPORT
M&C No.
2019-287
Report Date
November 12, 2019
Meeting Date
November 18, 2019
Service Area
Growth and Community
Development Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Central Peninsula Secondary Plan, Municipal Plan, Zoning By-law and
Heritage By-law Amendments Referral Report
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Andrew Reid
Kenneth Melanson
Jacqueline Hamilton
Phil Ouellette
John Collin
RECOMMENDATION
1. That Common Council refer the adoption of the Central Peninsula
Secondary Plan, including amendments to the Municipal Plan and Zoning
By-law, to the Planning Advisory Committee for a report and
recommendation on November 26, 2019, and schedule a Public Hearing
to be held at a special meeting on December 9, 2019, at 6:30 p.m.
2. That Common Council set a public hearing date for Heritage By-law
(Phase 2) amendments for December 9, 2019, at 6:30 p.m.
3. That Common Council receive for information the attached letters of
support and frequently asked questions document and that they be
included in the public record as the Plan and related amendments move
forward in the adoption process.
EXECUTIVE SUMMARY
The Public Comment period for the Central Peninsula Secondary Plan and
accompanying Municipal Plan amendments was held between October 8t", 2019
and November 6t", 2019. During that time, three letters were received in support
of the Plan. This report positions Council to move forward with the next steps in
the adoption process including a Planning Advisory Committee meeting, Heritage
Development Board review and public hearings before Council. Copies of the
letters received during the public review period will form part of the public
record and be part of the package considered by the Planning Advisory
Committee and Council as the process moves forward. Staff have also prepared
a Q&A document to provide information on the Plan and the Council adoption
K91
-2 -
process. Copies of the plan will be made available to the public at the Common
Clerk's Office and at the One Stop Development Shop once the public advertising
period has commenced.
PREVIOUS RESOLUTION
On October 7, 2019, Common Council received and filed a recommendation
letter from the Neighbourhood Action Team related to the Central Peninsula
Secondary Plan and initiated the legislative adoption process for the Central
Peninsula Secondary Plan.
STRATEGIC ALIGNMENT
The Central Peninsula Secondary Plan is a priority related to a Vibrant, Safe City
and Growth and Prosperity, focusing strategic investment in the City's core that
will accelerate urban growth, reduced urban sprawl, and encourage a more
compact, livable, and fiscally sustainable community.
REPORT
During the 30 day public comment period, the Plan received three letters of
support from Atlantic Coastal Action Program, DevelopSJ, and Uptown SJ, which
are attached to this report. These letters are in addition to the robust public
engagement and high levels of support that have occurred throughout the
course of the project.
Next Steps
The goal of the Plan (and associated plan and zoning amendments) and the
Heritage By-law amendments is to create a streamlined approach to in -fill
development, unlock growth opportunities on the Peninsula and create an
environment that will foster growth and investment in this community. Council
approved the first phase of Heritage By-law amendments that permit more
flexibility for investment in the City's heritage areas on September 23, 2019.
Phase 2 Heritage amendments pertaining to infill development will be presented
concurrently with the Zoning By-law amendments associated with the Plan. The
proposed timeline considers inclusion of necessary steps to ensure the
documents are operational by adoption facilitating a seamless transition to
implementation. Copies of the applicable documents will be available for public
inspection at the Common Clerk's Office and at the One Stop Development Shop
during the advertising period. All inquiries can also be referred to the One Stop
Development Shop during this time.
• Council Decision — Referral to Planning Advisory Committee — Council
will review the feedback received from the 30 day comment period.
Council will be given the opportunity to refer the Plan and associated
Municipal Plan and Zoning By-law amendments to the Planning Advisory
Committee and schedule the Public Hearing. A Public Hearing date will
21
also be set for the Heritage Bylaw Amendments as required under the
Heritage Conservation Act. That hearing date is scheduled for December
9, 2019.
• Planning Advisory Committee Meeting — At a special meeting date, the
Planning Advisory Committee will consider the Plan and associated
Municipal Plan and Zoning By -Law amendments, and make a
recommendation to Council. This will be the second of three
opportunities within the legislative adoption process for the public to
provide commentary in an official capacity. The Planning Advisory
Committee Meeting is planned for November 26, 2019.
• Council Decision – Public Hearing, First and Second Reading – Council
will hold two Public Hearings to receive public feedback: one on the Plan
and amendments to the Municipal Plan, Zoning and the other on
Heritage By-law amendments. Given the significant level of public
interest in this project, it is likely that Council may receive feedback from
the public that would require further consideration and potential
amendments to any of the proposed documents. This may warrant
Council not giving first and second reading on the same night as the
public hearing and referring these items back to Staff. Therefore, Council
may, depending on the level of public feedback, give first and second
reading on the same night as the public hearing or postpone these
readings to another meeting pending review of further refinements to
the Plan or By-law amendments. The Public Hearing is scheduled for
December 9.
• Council Decision –Third Reading– Once Council has provided first and
second reading to the amendments, the adoption process would
conclude when Council considers Third Reading of the Plan. Once Third
Reading is complete, the Plan will be registered and become legally
binding. Third Reading will likely occur in January 2020.
SERVICE AND FINANCIAL OUTCOMES
Neighbourhood planning provides a framework for enhanced service, building
community capacity, and encouraging re -investment in targeted
neighbourhoods. Capital funding has been allocated to the implementation of
the Central Peninsula Secondary Plan, which will be used to leverage private
investment in key areas as directed by the plan.
The Plan will also set the stage for significant potential growth of the Central
Peninsula, already unlocking a number of potential opportunity sites for strategic
infill and growth – before the plan has been adopted. Once adopted, it is
expected the further opportunities will arise to facilitate further growth of the
Peninsula.
WA
-4 -
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The Central Peninsula Secondary Plan is reflective of substantial input from the
community and stakeholders, including the Neighbourhood Action Team.
ATTACHMENTS
1. Letter from ACAP
2. Letter from DevelopSJ
3. Letter from UptownSJ
4. Central Peninsula Secondary Plan — Frequently Asked Questions
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59 lirirry c.c I:Awnr ' StareEc t, Suite 25
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H5 irle PrlrTIdry er1VIrUrlrTlerlid1 SidKerlUlQer and community organization in the Greater Saint
John region, ACAP Saint John is pleased to pledge our support to the Central Peninsula Plan
process and draft plan. It is our belief that the Plan put forward by the City of Saint John would
prove to be not only invaluable to the growth of the City of Saint John, but will also help ACAP
Saint John to move toward integrated models of community and environmental resiliency, and
Climate Change adaptation.
For over a quarter-century, ACAP Saint John has actively engaged our communities in
environmental education programmes, ecological restoration projects, scientific research and
job creation initiatives, and such, is prepared to offer on -the -ground support for the Central
Peninsula Plan's implementation, including, but not limited to, organizing volunteers,
promoting the plan through our stakeholder and rights -holder networks and on-going project
management support.
ACAP Saint John has a storied reputation in the community for acting as a third party mediator
on contentious environmental issues, and continues to expand our role as a public source of
knowledge and information dissemination. As Executive Director, I see the importance of
project partnerships with all levels of government in furthering our engagement throughout
our community and bringing world-class environmental work to our neighbourhoods to better
the lives of their citizens, foster resilient urbanism, and restore of our ecosystems for future
generations.
If you have any additional questions or would like more information on ACAP Saint John's
involvement or commitments, please do not hesitate to contact me.
Sincerely,
Graeme Stewart -Robertson
Executive Director, ACAP Saint John Inc.
0&1
DEVELOP
SAINT JOHN
Common Clerk's Office
City of Saint John
PO Box 1971
Saint John, NB E2L 41_1
To Whom It May Concern,
November 5, 2019
RE: Support for the Central Peninsula Secondary Plan
The Central Peninsula Secondary Plan is a visionary plan designed to direct smart
growth through thoughtful policy and action. It provides direction for new
development and reinvestment in the central peninsula while ensuring the community
remains a great place for people to live, work, play, and raise a family.
That is why Develop Saint John applauds the vision outlined in the plan.
Our mission is to relentlessly create and seize strategic real estate opportunities that
are catalysts to further development, investment and growth. We work with the City,
other levels of government and the development community to grow Saint John by
instigating investment in strategic real estate developments that add value to our
community.
The process, community engagement and guiding principles that went into the
development of the plan, all support strong neighbourhood development. We are
pleased to see it identifies transportation corridors, building and design guidelines,
height and setback policies, pedestrian -oriented streets, heritage infill and public
realm considerations. These are the things that contribute to strong place making and
overall community health and vibrancy.
We are already seeing the plan come to life.
There is growing interest and demand for development and investment in the central
peninsula. We are experiencing more and more inquiries and expressions of interest to
develop in the neighbourhood, which is reflective of the momentum. Some of the
exciting projects include:
• Development of the parking lot at the corner of Canterbury Street and Grannan
Lane into The Telegraph, a new 6 -story wood frame mixed commercial and 32
unit residential development
P.O. Box 1971, Saint John, New Brunswick E2L 41_1
25
DEVELOP
SAINT JOHN
• Conversion of the Former Salvation Army building into beautiful neo -industrial
Oceanside Urban Loft apartments, which supports the repositioning of St.
James Street as a key east -west corridor and focus for reinvestment
• Transformation of the Gothic Arches site on Wentworth Street into a new 50-80
unit high-end residential development
• High private sector interest in investing and developing Fundy Quay, the prime
six -acre site on our waterfront
• Plans for an innovative new urban K-8 school designed to contribute to the
transformation of the central peninsula into a mixed income neighbourhood
We support the City of Saint John's Central Peninsula Secondary Plan and its vision to
direct smart growth through thoughtful policy and action. It gives us a solid foundation
for relentlessly creating and seizing real estate opportunities and getting deals done.
Sincerely,
Steve Carson,
CEO, Develop Saint John
cc: Jacqueline Hamilton, Commissioner of Growth and Community Development
41.1
November 5, 2019
Uptown Saint John Inc. the local Business Improvement Association, is very pleased to support
the Central Peninsula Plan and to have been a part of the Neighborhood Action Team. We
strongly believe this is the roadmap to growth for the Central Peninsula.
A strong uptown is created through more people — who need more shops; provides opportunities
for business to grow and to create new jobs and an increased tax base. We look forward to more
action items to come to fruition in the years ahead. Together we can accomplish many of the
visions shared from the active participants that took part in shaping the plan.
Thank you to all the contributors who have focused on the Central Peninsula Plan our City's core
neighborhood — encouraging growth to the uptown and peninsula will increase the vibrancy and
opportunity of uptown businesses and to our impact areas.
Regards,
Af
Nan Tissingt
Executive Director
Uptown Saint John Inc.
Iove•Iife.uptown
17 Canterbury Street, Suite 180, Saint John, N8 Elf_ 20 27
506.633.9797 1 uptownsj.com � (@uptownsj
Central Peninsula Secondary Plan
Frequently Asked Questions
1. What is the Central Peninsula Plan?
The Central Peninsula Plan is intended to provide direction for new development and
reinvestment in the Central Peninsula of the City of Saint John while ensuring it remains
a great place to live, work, and play. The Plan is intended to further implement the City's
Municipal Plan (Plan SJ) policies, and align the City's recreation, transportation,
economic, and population growth strategies into one set of goals and direction for this
area. Together, these strategies will guide growth, development, and revitalization efforts
in the City's core for the next 30 years.
2. What are the elements of the Central Peninsula Neighbourhood Plan?
The plan contains an overall vision of the future of the neighbourhood, with targets for
new dwelling units, population, business growth and tax base growth (1,500 new units,
3,000 new residents, 350 new businesses and $350,000,000 in new tax base). The plan
contains important five elements:
a. A history and geographic context of the Central Peninsula area;
b. An overview of the neighbourhood and corridors of the Central Peninsula
includes descriptions, direction, development concepts, and actions for the
Uptown, South End and Waterloo Village Neighbourhoods;
c. Building and design guidelines for use in the Central Peninsula areas that
provide the regulatory framework for land use and guides the shape, pattern,
height and configuration of development inviting a new era of development and
investment;
d. A community action framework that provides the structure for action through
clear policy statements reflective of the components that build a growing
neighbourhood; and
e. An implementation strategy that provides a framework for immediate and long
term action in the various neighbourhoods of the Central Peninsula.
3. Why do we need a Plan now?
After decades of population decline and disinvestment, the Central Peninsula is
experiencing a renaissance supported by Council's focus on this area over the past
three years in terms of the planning process and key programs such as the urban
development incentive programs. There is increasing momentum to live, work, and
recreate in the heart of the City. Populations in the Uptown Neighbourhood are
increasing while neighbouring areas are stabilizing. Construction of new office and new
and converted residential development are set to bring more people into the area every
day. New restaurants, bars, and entertainment venues have maintained the area as the
cultural centre of the City. Public spaces, particularly along the City's waterfront, have
become important community focal points and there is increasing interest in realizing
their full potential.
As the positive momentum continues, there is increasing opportunity for economic and
population growth on the Central Peninsula. Underutilized or vacant land is an asset
prepared for repositioning and in doing so, creates potential for new housing stock and
commercial space. This Plan provides an opportunity for the community to harness the
growing momentum at the centre of the City and create positive transformative change.
K-11
4. What will the Central Peninsula Plan be used for?
Depending on who you are, the Plan will have a variety of different purposes. For
Developers/Investors, the Plan will provide a vision of how the Central Peninsula is
expected to grow and change, showcase some key growth opportunity sites and provide
a clear development process. For residents, the Plan will show the community vision for
how the neighbourhood will grow over the Plan's lifetime, as well as an action plan to
achieve this vision. For City Staff and Common Council, the Plan will be the document
to help guide decisions related to land use and planning matters for development in
Central Peninsula.
5. What kind of changes can I expect to see in the Central Peninsula neighborhoods
if the plan goals are achieved?
The Plan is a long term vision for the community with the goals of encouraging 1,500
new residential units, which would allow for up to 3,000 new residents to call the Central
Peninsula home. Along with these residential goals, the goal is the creation of 350 new
businesses over the life of the plan leading to 4,000 additional jobs in the Central
Peninsula. This will, if successful, lead to over $350,000,000 in new tax base growth.
6. As a heritage property owner, how does the neighborhood plan affect me?
Common Council made improvements to the Heritage Conservation Areas By-law a
priority. These changes were able to be carried out in concert with the Plan. The goal of
these changes is to remove barriers to development through modernizing the rules in
order to help create opportunities for new development, grow the residential tax base
and make the heritage process easier to navigate for developers and property owners.
The changes are being made in two phases, with Phase 1 already receiving Common
Council approval on September 23, 2019. Phase 1 changes improved clarity to the
demolition process and increasing exemption to heritage permits, which includes:
• non-visible areas of buildings (typically rear and sidewalls);
• windows and door replacements with no change in size;
• Fences;
• Decks, stairs and fire escapes; and
• Cladding (except masonry).
Phase 2 amendments will come forward with the Plan and will address issues such as
the current infill development guidelines (new development in heritage districts).
7. How does this plan affect me as a renter?
One of the goals of the Plan is to encourage the creation of 1,500 new dwelling units
throughout the Central Peninsula neighbourhoods. When achieved, these new units will
provide existing and new residents a variety of choices of unit forms (new buildings,
renovations to existing buildings, townhouses, apartments, etc.), location and tenancy
types (rental or ownership) to meet their needs. The increased quality of units (through
renovation of existing, which has occurred through various incentive programs, will also
provide additional affordable and quality housing options to existing and future residents.
8. How does this plan affect me as a business owner?
Business owners will benefit from the Plan's goals of growing the population, as these
new residents will need places to shop. As the Central Peninsula population grows,
businesses will have access to more shoppers to frequent their businesses. A stronger
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Business community; will help grow the commercial tax base, attract more investment
and create new job opportunities for residents.
9. How does this plan affect me as an investor?
For investors, the Plan will be the principle tool to highlight various development
opportunities on the Peninsula. The document will provide a vision of how the Central
Peninsula will grow and prosper over the life of the plan. The City of Saint John, through
various development support mechanisms offered through grants or supporting agencies
like DevelopSJ will also be showcases to enhance the attractiveness of investing in the
core region of the City.
10. 1 do not live in the Central Peninsula. How will this plan affect me?
The Central Peninsula is the core of the City of Saint John — where business, events,
and our entertainment districts come together. The Central Peninsula contains strong
regional assets like TD Station, Canada Games Aquatic Centre, Port of Saint John
Cruise Ship Terminal and the Saint John Trade and Convention Centre. A strong core,
with increased resident and business investment, creates an improved financial outlook
for the City through increased tax base, more jobs, more events, and leads to an
increased quality of life for everyone in the City and region. Increasing development in
the Central Peninsula further strengthens the value of investing in Saint John.
11. 1 am worried about the affordability of housing and challenges associated with a
rapid change of the Central Peninsula. How will the plan address this?
The Plan was created based on policies contained in the City's Municipal Plan (PlanSJ),
which encourages the creation of residential development that fits all age groups and
income levels. By encouraging a variety of different housing types to occur over the life
of the plan, all residents will benefit from greater housing options and choices in this
neighbourhood, allowing anyone to call the Central Peninsula home. The Plan also
provides a variety of incentive programs to promote new or renovated housing options,
which will further improve housing choice and availability to residents. Amendments to
the City's Zoning By-law with the Plan, will also further reduce barriers by providing
parking reductions which will reduce costs of housing options. The City will also
continue working with affordable housing providers, Federal and Provincial agencies to
monitor changes and encourage the construction of affordable housing units as part of
the neighbourhood change.
12. When would I see some of the improvements in the Plan take shape?
Many of the suggested improvements have already begun to occur even before the Plan
is adopted by Council. Work is well underway to prepare key sites like Fundy Quay for
future development with planned seawall upgrades and site improvements. DevelopSJ
is working to advocate for the construction of the new Central Peninsula School site and
Common Council recently approved a number of capital investments including to the
Saint John Market (South Market street upgrades, Night Market upgrades).
Implementation of the Night Market, a key concept from the Plan, has already occurred
before the Plan is in place. Incentive Programs, which helps with community
beautification and encouraging renewal of existing housing stock has also been helping
to encourage improvement to the quality of housing stock in the Peninsula.
091
13. How can I take an active role in supporting the plan and implementation?
The Plan is a document created in concert with residents of the Central Peninsula. The
implementation actions belong not only to the City of Saint John, but also to area
residents to be active participants in how the plan is supported to make the Central
Peninsula the best place to live, play and invest. The Plan is a call to action for
residents to play their part in making the plan a success. This could be through
community beautification, becoming actively involved in groups helping with events from
the Plan (such as the Night Market) or investing in the community — everyone has an
opportunity to play a part in making this plan a success.
14. What is the process to get the plan approved and key dates?
In order to adopt the Central Peninsula Secondary Plan, Council must initiate the
mandatory 30 day comment period, which occurred on October 7, 2019. The comment
period closed on November 6, 2019. Council will need to refer the plan to the Planning
Advisory Committee and schedule a public hearing.
The Planning Advisory Committee and Common Council will then consider the final plan.
Once Council has held a public hearing and given the plan and By-laws three readings,
the plan will officially come into force.
15. How can I comment on the draft plan?
While, the initial 30 -day comment period has closed citizens may provide their feedback
on the Plan and related amendments through the upcoming Planning Advisory
Committee public meeting scheduled for November 26th and Public Hearing of Common
Council scheduled for December 9th. Documents can be viewed through the Common
Clerk's Office (8th Floor City Hall) or at the One Stop Development Shop (10th Floor City
Hall).
If you would like to submit feedback to the Planning Advisory Committee, here is how
you can do so:
Comments may be submitted via email or by letter to the Planning Advisory Committee
at the following address: By e-mail onesta.,p. saGntiiohn.ca or by mail at PO Box 1971,
Saint John, NB E2L 41_1 by November 26.
If you would like to submit feedback to Common Council for the public hearing, here is
how you can do so:
Comments may be submitted via email or by letter to the common clerk at the following
address: By e-mail at..co.M2ncj r'k. sain iohn.ca or by mail at PO Box CP 1971, Saint
John, NB E2L 41_1 by December 9.
Citizens may also attend and speak about the final version of the plan at the Planning
Advisory Committee and Common Council Public Hearing meetings. The Planning
Advisory Committee will consider the plan on November 26, 2019, at 6pm, 8th Floor City
Hall (Ludlow Room) and the Public Hearing at Common Council will be December 9,
2019, 6:30pm, 8th Floor (Ludlow Room).
31
COUNCIL REPORT
M&C No.
2019-288
Report Date
November 12, 2019
Meeting Date
November 18, 2019
Service Area
Growth and Community
Development Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Cleanup of Unsightly Properties at Various Locations
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Christopher McKiel
Jacqueline Hamilton /
Amy Poffenroth
John Collin
RECOMMENDATION
Your City Manager recommends that 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 cleanup of the following unsightly properties:
1. 2-4 Wellesley Avenue, PID# 00371310;
2. 101 Broadway Avenue, PID# 00302406; and
3. 461 Milford Road, PID# 55017917.
EXECUTIVE SUMMARY
The unsightly conditions outlined in the attached Notices have not been remedied
within the required time frame. Pursuant to the SaintJohn Unsightly Premises and
Dangerous Buildings and Structures By-law, Staff is looking for authorization from
Council to arrange for the cleanup of the aforementioned properties.
PREVIOUS RESOLUTION
N/A
STRATEGIC ALIGNMENT
This report aligns with Council's Vibrant, Safe City priority.
0
-2 -
REPORT
As part of the Community Standards program, Growth and Community
Development Services has focused on issues that directly impact the aesthetics,
enjoyment and pride of a neighbourhood, including unsightly premises. This
involves working closely with property owners to achieve voluntary compliance
wherever possible. When voluntary compliance cannot be achieved, it is
necessary to issue a formal Notice to Comply.
Property Requiring Further Enforcement Action
Notices to Comply have been issued for the following properties after efforts to
gain voluntary compliance did not come to fruition. The unsightly conditions
outlined in the attached Notices have not been remedied within the required time
frame. Pursuant to the Saint John Unsightly Premises and Dangerous Buildings
and Structures By-law, Staff is looking for authorization from Council to arrange
for the cleanup of the aforementioned properties.
SERVICE AND FINANCIAL OUTCOMES
As is written in the Local Governance Act that a municipality must commence in
the proceedings of remedial action, approval of Common Council is required prior
to starting cleanup and demolition activities at the subject property.
Where possible, staff will use internal resources for the cleanup of unsightly
properties and the cost will be billed to the property owners. If the use of internal
resources is not possible, staff will seek competitive bidding in accordance with
the City's purchasing policy and the cost of the work will be billed to the property
owners. If the bill is left unpaid, it will be submitted to the Province with a request
for reimbursement.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City Solicitor's Office provided ownership verification by obtaining the
Certificate of Registered Ownership for the property. Additionally, the City
Solicitor's Office registered the Notice to Comply with Service New Brunswick's
Land Registry.
091
ATTACHMENTS
-3 -
Notices to Comply and Inspection Reports
Aerial Photo of Property
Photos
011
Parcel identifier:
PID # 0371310
Address: 2-4 Wellesley Avenue, Saint John,
New Brunswick
Owner(s) or Occupier(s):
Name: Keating, Brian Matthew
Address: 4 Wellesley Avenue, Saint John, New
Brunswick, E2K 2T9
Local government giving notice: The City of Saint
John
By-law contravened: Saint John Unsightly Premises
and Dangerous Buildings and Structures By -Law, By-
law Number M-30 and amendments thereto (the "By-
law").
Provision(s) contravened: Subsection 6(1) of the By-
law.
Conditions(s) that exist: The premises are unsightly by
permitting junk, rubbish or refuse to remain on the
premise. The conditions of the premises are not in
compliance with the standards provided for pursuant to
the By-law. The conditions of the premise are described
in Schedule "A", a true copy of the Inspection Report
dated Aug 8, 2019 signed by Mark O'Leary, By-law
Enforcement Officer.
What must be done to correct the condition: The
owner is to remedy the conditions by complying with
the required remedial actions of the aforementioned
inspection report and bring the building and premises
into compliance with the aforesaid By-law.
Date before which the condition must be corrected:'
Within 15 days of being served with the Notice to
Comply.
Date for giving notice of appeal: Within 14 days of
being served with the Notice to Comply.
Process to appeal: The owner may within 14 days after
having been served with this Notice to Comply, send a
Notice of Appeal by registered mail to the Common
Clerk of The City of Saint John, City Hall — 8"' Floor, 15
Market Square, Saint John, New Brunswick, E2L 4LL
(Loi sur la gouvernance locale,
L.N.-B. 2017, ch. 18, par. 132(2))
Num6ro d' identification de la parcelle :
NID : 0371310
Adresse: 2-4 avenue Wellesley, Saint John,
Nouveau -Brunswick
Proprietaire(s) ou occupant(s) :
Nom: Keating Brian Matthew
Adresse : 4 avenue Wellesley, Saint John,
Nouveau -Brunswick, E2K 2T9
Gouvernement local signifiant 1'avis : The City of
Saint John
Arrete enfreint : Arrete relatif aux lieux inesthetiques
et aux batiments et constructions dangereux de Saint
John, Arrete num6ro M-30, ainsi que ses
modifications ci-aff6rentes (1' « Arret6 >>).
Disposition(s) enfreinte(s) : Le paragraphe 6(1) de
1'Arret&.
Description de la (des) situation(s) : Les lieux sont
inesth&tiques en permettant la pr6sence de ferraille,
de d6tritus ou de d6chets. Les conditions des lieux ne
sont pas en conformit6 selon les standards pr6vus dans
1'Arr&& Les conditions des lieux sont d6crites a
1'annexe « A », une copie conforme du rapport
d'inspection en date du 8 aout, 2019 sign6 par Mark
O'Leary, un agent charge de 1'ex6cution des arr6t6s
du gouvernement local.
Ce qu'il y a lieu de faire pour y remedier: La
propri6taire doit restaurer les conditions en se
confonnant aux recommandations du rapport
d'inspection susmentionn6 et d'amener le batiment et
les lieux en conformit6s avec 1'Arret6.
Delai imparti pour y remedier : '
Dans les 15 jours qui suivent la signification de Favis
de conformit6.
Date limite pour donner Pavis d'appel: Dans les 14
jours qui suivent la notification de Favis de
conformit6.
Processus d'appel : La propri6taire peux dans les 14
jours qui suivent la notification de Favis de
conformit6, envoy6 un avis d'appel par courrier
recommand6 a la greffiere communale de la
municipalit6, a The City of Saint John, Edifice de
1'h6tel de ville, 8e 6tage, 15 carr6e Market, Saint John,
Nouveau -Brunswick, E21, 4LL
Potential penalty for not complying with notice Peine possible en cas d'omission de se conformer
within time set out in notice:2 Subsection 11 (1) of the aux exigences de Pavis dans le deiai y imparti :
. . . " I - - ______ __.i.,. r :1.. ♦_ --1- -41, tl, It, nnrnarnnhe 11 (1) He 1'Arret6 nr6voit Qulconque
terms of a Notice to Comply given under section 7 of
the said By-law, commits an offence that is punishable
under Part 2 of the Provincial Offences Procedure Act
as a category F offence.
Where an offence under subsection 11(1) continues for
more than one day, the minimum fine that may be
imposed is the minimum fine set by the Provincial
Offences Procedure Act for a category F offence
multiplied by the number of days during which the
offence continues pursuant to subparagraph 11(3)(b)(i).
Local government's authority to undertake repairs
or remedy:' Paragraph 12(1)(a) of the By-law states
that if an owner or occupier does not comply with a
Notice to Comply given under section 7 within the time
set out in the said Notice, the City may, cause the
premises of that owner or occupier to be cleaned up or
repaired. Further, subsection 12(3) of the By-law states
that the cost of carrying out such work, including any
associated charge or fee, is chargeable to the owner or
occupier and becomes a debt due to the City.
Dated at Saint John the 8 day of August, 2019
Local government: T City of Saint John
Signature of th" KIer o the to Al government:
4/1
omet de se conformer aux exigences tormuiees clans
un avis de conformit6 notifi6 aux termes de Particle 7
de ladite Arret6, commet une infraction qui est
punissable en vertu de la partie 2 de la Loi sur la
procedure applicable aux infractions provinciales a
titre d'infraction de la classe F.
Lorsqu'une infraction pr6vue au paragraphe 11 (1) se
poursuit pendant plus d'une journ6e, Famende
minimale qui peut etre impose est 1'amende
minimale pr6vue par la Loi sur la procedure
applicable aux infractions provinciales pour une
infraction de la classe F multipli6e par le nombre de
jours pendant lesquels Finfraction se poursuit
conform6ment a 1'alin6a 11(3)(b)(i).
Pouvoir du gouvernement local d'entreprendre des
reparations on de remedier a la situation :
Conform6ment aux alin6a 12(1)(a) de 1'Arret6, si un
avis de conformit6 a &6 signifi6 aux termes de
Particle 7 de ladite Arret6 et, que le propri6taire ou
1'occupant ne se conforme pas a cet avis de
conformit6 dans le d61ai imparti et tel qu'il est repute
eonfirm6 ou tel qu'il est confirm6 ou modifi6 par un
comit6 du conseil on par un juge en vertu le
paragraphe 12(3) de ladite Arret6, la municipalit6 peut
faire nettoyer ou r6parer les lieux de ce propri6taire ou
de cet occupant et les couts afferents a 1'ex6cution des
ouvrages, y compris toute redevance ou tout droit
connexe, sont mis a la charge du propri6taire ou de
1'occupant et deviennent une cr6ance de la
municipalite.
Fait a Saint John le 8 aout, 2019
Gouvernement locale The City of Saint John
Signature du fonctionnaire du gouvernement local:
Contact information of the lfficer of the local Coordonnees du fonctionnaire du gouvernement
government: ) local:
Name: Mark O'Leary
Mailing address:
Growth and Community Development Services
The City of Saint John
15 Market Square
City Hall Building, 10"' Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L1
Telephone: (506) 658-2911
E-mail: mark.o'leary@saintjolm._ca .-
�3 A
Fax: (506) 632-6199 '='
U1b
Nom: Mark O'Leary
Adresse postale :
Service de la Croissance et du D6veloppement
Communautaire
The City of Saint John
15 Market Square,
Edifice de 1'h6tel de ville, 100 6tage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L1
Telephone: (506) 658-2911
Adresse 6lectronique : mark.o'leary@saintjolm.ca
T616copieur : (506) 632-6199
Notes:
1. All appropriate pen -nits must be obtained and all relevant
legislation must be complied with in the course of carrying out the
required remedial action.
2. Payment of the tine does not alleviate the obligation to comply
with the by-law, standard or notice.
3. Costs become a debt due to the local government and may be
added to the joint local government and provincial Real Property
Assessment and Tax Notice.
Notes :
1. Tous les permis prescrits doivent etre obtenus et toute la
legislation pertinente dolt etre respectee pendant 1'execution des
mesures de remediation.
2. Le paiement de Pamende n'a pas pour effet d'annuler
]'obligation de se confonner a Parrete, a la nonne ou a ('avis.
3. Les coats deviennent une creance du gouvernement local et
peuvent etre ajoutes a ]'avis common d'evaluation et d'impot
foncier des gouvernements local et provincial.
Inspector: Mark O'Leary
Property Address: 2-4 Wellesley Avenue, Saint John, New Brunswick
PID: 0371310
The inspection of the above mentioned property on July 2, 2019 has revealed that said property, is not in compliance
with the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, By-law Number M-30, and
amendments thereto (the "By-law")
Subsection 6(1) of the By-law states:
No person shall permit premises owned or occupied by him or her to be unsightly by permitting to remain on any
part of the premises
(a) any ashes, junk, rubbish or refuse,
(b) an accumulation of wood shavings, paper, sawdust or other residue of production or construction,
(c) a derelict vehicle, equipment or machinery or the body or any part of a vehicle, equipment or machinery, or
(d) a dilapidated building.
At the property, the following items were noted:
(a) ashes, junk, rubbish or refuse.
General comments about the property:
There are several items on the subject property which are considered unsightly. On the property there are several
garbage bags, old mattresses, an old stove, a piece of luggage, cardboard boxes, a shopping cart, a computer monitor,
a bicycle frame, broken wooden chairs, a wooden table, a piece of carpet, metal food containers and a piece of
plywood with dimensional lumber attached to it. The property is in an unsightly condition and is not in compliance
with the By-law.
Required remedies:
All the items listed must be removed and properly disposed of at an appropriate landfill site.
Alternatively, should hese items remain on the premise for storage, they must be stored in a garage or shed, sufficient
in size so as to ho(. the items and pppvide full enclosure.
��i/
The unsightl(c kcditio at the I
Report 1pre ared and Sign4d by
Date
rise must be remedied and the property brought into compliance with the By-law.
Mark O'Leary
G
�^ r
Reviewed and Concurred In By Christopher McKiel, P. Eng.
`) ,) 49,
Date
File No.:
BETWEEN:
c. 18, s.1340))
Appellant(s),
- and -
THE CITY OF SAINT JOHN,
Respondent.
Parcel Identifier: PID #
N° du dossier:
ENTRE:
ch. 13, par. 134(l))
Appelant(s),
-et-
THE CITY OF SAINT JOHN,
Intimee.
Numero d'identification de la parcelle : # NID
Parcel Address: Adresse de la parcelle
Owner(s) or Occupier(s):
Proprietaire(s) ou occupant(s)
Name:
Nom :
Address:
Adresse
Telephone:
Telephone:
Name:
Nom:
Address:
Adresse
Telephone: Telephone:
that has been given under section 132(3) of the Local
Governance Act and appeals to the Saint John
Substandard Properties Appeal Committee.
The appellant's grounds for this appeal are as follows
(set out the grounds clearly but briefly):
Dated at
2018.
avis qui a ete notlIte aux lei7lies uc i UIMAC; i-1zk-1j U�
la Loi sur la gotiaverncnzce locale et fait appel au Comite
d'appel des proprietes inferieures aux normes de Saint
John.
Les motifs d'appel de V appelant(s) dans le present appel
cont les suivants (enoncer les motifs de fcaqon claire et
concise) :
the day of Fait a
Signature of owner or occupier
The appellant(s) intends to proceed in the English
or French language (Please check the appropriate
box).
Please forward your Notice of Appeal by registered
mail to the clerk of The City of Saint John within
fourteen (14) days after leaving been given the notice
at the.following address:
Common Clerk's Office
15 Market Square, City Hall Building, 8"' Floor
P, O. Box 1971
Saint John, New Brunswick
E2L 4L1
Telephone: 506-658-2862
Telecopier: 506-674-4214
Notes:
1. A notice that is not appealed within fourteen (1 4)
le
2018.
Signature du proprictaire ou l'occupant
L'appelant(s) a (ont) 1'intention d'utiliser la langue
frangaise ou anglaise (Veuillez cocker la case
appropriee).
Veuillez faire parvenir votre Avis d'appel par courrier
recommande au secretaire de The City of Saint John
dans les quatorze (14) jours qui suivent la notification
de Pavis a Vadresse suivante :
Bureau du greffier communal
15 Market Square, Edifice de Fh6tel de ville, 8` 6tage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L1
Telephone: 506-658-2862
Telecopieur: 506-674-4214
Notes :
1. Un avis dont it n'est pas interjet6 appel dans les
may be represented by counsel.
3. On an appeal, the Saint John Substandard
Properties Appeal Committee may confine, modify
or rescind the notice or extend the time for complying
with the notice.
4. The Saint John Substandard Properties Appeal
Committee shall provide a copy of its decision to the
owner(s) or occupier(s) of the premises, building or
structure who brought the appeal within Purteen
(14) days after making its decision.
5. The owner(s) or occupier(s) provided with a copy
of a decision from the Saint John Substandard
Properties Appeal Committee may appeal the
decision to a judge of The Court of Queen's Bench of
New Brunswick within ,fourteen (14) tray after the
copy of the decision was provided to the owner(s) or
occupier(s) on the grounds that (a) the procedure
required to be followed by the Local Governance Act
was not followed, or (b) the decision is unreasonable.
(ont) le droit a etre cmc
representer par un avocat.
3. Lors d'un appel, le Comite d'appel cies proprietes
rnferieures crux normes de Saint John peut eonfinner,
modifier ou annuler 1'avis ou proroger le delai pour s'y
conformer.
4. Le Comite d'appel ties proprietes inLrieures aux
normes de Saint John dolt fournir une copie de sa
decision au(x) proprietaire(s) ou a 1'occupant(s) des
lieux, du batiment ou de la construction qui lui a(ont)
interjete appel dans les quatorz e (14) fours sulvant la
date a laquelle it a rendu sa decision.
5. Le(s) proprietaire(s) ou 1'occupant(s) a qui une copie
dime decision a ete fournic par le Comite d'appel des
proprietes inferieures aux normes de Saint John
peut(vent), dans les guatorze (14) jours qui suivent,
interjeter appel de la decision devant un juge de la Cour
du Banc de la Reine du Nouveau -Brunswick au motif
que (a) la demarche a suivre en vertu de la Loi sur la
gotavernance locale n'a pas ete suivie, ou (b) la decision
est deraisonnable.
Parcel identifier:
PID # 00302406
Address: 101 Broadway Avenue, Saint John,
New Brunswick
Owner(s) or Occupier(s):
Name: Fournier, John Ernest
Address: 101 Broadway Avenue, Saint John,
New Brunswick, E2H 1 Z9
(Loi stir la gouvernance locale,
L.N.-B. 2017, ch. 18, par. 132(2))
Numero d'identification de la parcelle :
NID :00302406
Adresse : 101 avenue Broadway, Saint John,
Nouveau -Brunswick
Proprietaire(s) on occupant(s)
Nom: Fournier, John Ernest
Adresse : 101 avenue Broadway, Saint John,
Nouveau -Brunswick, E2H 1 Z9
Local government giving notice: The City of Saint Gouvernement local signifiant Pavis : The City of
John Saint John
By-law contravened: Saint John unsightly Premises
and Dangerous Buildings and Structures By -Law, By-
law Number M-30 and amendments thereto (the "By-
law").
Arrete enfreint : Arrete relatif aux lieux inesthetigues
et aux bdtiments et constructions dangereux de Saint
John, Arrete num6ro M-30, ainsi que ses
modifications ci-afferentes (1' « Arrete »).
Provision(s) contravened: Subsection 6(1) of the By- Disposition(s) enfreinte(s) : Le paragraphe 6(1) de
law. 1'Arret6.
Conditions(s) that exist: The premises are unsightly by
permitting junk, rubbish or refuse to remain on the
premise. The conditions of the premises are not in
compliance with the standards provided for pursuant to
the By-law. The conditions of the premise are described
in Schedule "A", a true copy of the Inspection Report
dated August 8, 2019 signed by Mark O'Leary, By-law
Enforcement Officer.
What must be done to correct the condition: The
owner is to remedy the conditions by complying with
the required remedial actions of the aforementioned
inspection report and bring the building and premises
into compliance with the aforesaid By-law.
Date before which the condition must be corrected:'
Within 15 days of being served with the Notice to
Comply.
Date for giving notice of appeal: Within 14 days of
being served with the Notice to Comply.
Process to appeal: The owner may within 14 days after
having been served with this Notice to Comply, send a
Notice of Appeal by registered mail to the Common
Clerk of The City of Saint John, City Hall — 8°i Floor, 15
Market Square, Saint John, New Brunswick, E2L 4L1.
Description de la (des) situation(s) : Les lieux sont
inesthetiques en permettant la presence de ferraille,
de detritus ou de d6chets. Les conditions des lieux ne
sont pas en conformite selon les standards pr6vus dans
1'Arrete. Les conditions des lieux sont d6crites a
l'annexe «A », une copie conforme du rapport
d'inspection en date du 8 aout, 2019 signe par Mark
O'Leary, un agent charge de 1'execution des arr6t6s
du gouvernement local.
Ce qu'il y a lieu de faire pour y remedier: La
proprietaire doit restaurer les conditions en se
conformant aux recommandations du rapport
d'inspection susmentionne et d'amener le batiment et
les lieux en conformit6s avec 1'Arret6.
Delai imparti pour y remedier : '
Dans les 15 jours qui suivent la signification de l'avis
de conformit6.
Date limite pour donner Favis d'appel: Dans les 14
jours qui suivent la notification de Favis de
conformite.
Processus d'appel La propri6taire peux dans les 14
jours qui suivent la notification de Favis de
conformite, envoy6 un avis d'appel par courrier
recommand6 a la greffiere communale de la
municipalit6, a The City of Saint John, Edifice de
1'h6tel de ville, 8' 6tage, 15 Market Square, Saint
John, Nouveau -Brunswick, E2L 4L
Potential penalty for not complying with notice Peine possible en cas d'omission de se conformer
within time set out in notice:2 Subsection 11 (1) of the aux exigences de Pavis dans le delai y imparti : 2
— 1__-. -`-`-- `,_-` - ---1-- l-[1_ — ---_-]al_ A__ T - L.- 11/1\ A- 11 Aa.nl-' a
terms of a Notice to Comply given under section 7 of
the said By-law, commits an offence that is punishable
under Part 2 of the Provincial Offences Procedure Act
as a category F offence.
Where an offence under subsection 11(1) continues for
more than one day, the minimum fine that may be
imposed is the minimum fine set by the Provincial
Offences Procedure Act for a category F offence
multiplied by the number of days during which the
offence continues pursuant to subparagraph 11(3)(b)(i).
Local government's authority to undertake repairs
or remedy:; Paragraph 12(1)(a) of the By-law states
that if an owner or occupier does not comply with a
Notice to Comply given under section 7 within the time
set out in the said Notice, the City may, cause the
premises of that owner or occupier to be cleaned up or
repaired. Further, subsection 12(3) of the By-law states
that the cost of carrying out such work, including any
associated charge or fee, is chargeable to the owner or
occupier and becomes a debt due to the City.
Dated at Saint John the 8idayj of August, 2019
Local government: TY Vity of Saint John
Signature of th// f 7 local
1.,
Contact inforniation of the
government:
Name: Mark O'Leary
Mailing address:
omet de se conformer aux exigences formulees dans
un avis de conformit6 notifi6 aux termes de Particle 7
de ladite Arret6, commet une infraction qui est
punissable en vertu de la partie 2 de la Loi sur la
procedure applicable aux infractions provinciales a
titre d'infraction de la classe F.
Lorsqu'une infraction pr6vue au paragraphe 11(1) se
poursuit pendant plus d'une journ6e, 1'amende
minimale qui peut etre impos6e est Pamende
minimale pr6vue par la Loi sur la procedure
applicable aux infractions provinciales pour une
infraction de la classe F multipli6e par le nombre de
jours pendant lesquels Pinfraction se poursuit
conform6ment a Falin6a 11(3)(b)(i).
Pouvoir du gouvernement local d'entreprendre des
reparations on de remedier a la situation :
Conform6ment aux alin6a 12(1)(a) de 1'Arret6, si un
avis de conformit6 a 6t6 signifi6 aux termes de
Particle 7 de ladite Arret6 et, que le propri6taire ou
Poccupant ne se conforme pas a cet avis de
conformit6 dans le d6lai imparti et tel qu'il est r6put6
confirm6 ou tel qu'il est confirm6 ou modifi6 par un
comfit& du conseil ou par un juge en vertu le
paragraphe 12(3) de ladite Arret6, la municipalit& peut
faire nettoyer ou r6parer les lieux de ce propri6taire ou
de cet occupant et les couts aff6rents a 1'ex6cution des
ouvrages, y compris toute redevance ou tout droit
connexe, sont mis a la charge du propri6taire ou de
Foccupant et deviennent une cr6ance de la
municipalit6.
Fait a Saint John le 8 aout, 2019
Gouvernement locale : The City of Saint John
Signature du fonctionnaire du gouvernement local:
of the local Coordonnees du fonctionnaire du gouvernement
local:
Growth and Community Development Services
The City of Saint John
15 Market Square
City Hall Building, 10`x' Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L1
Telephone: (506) 658-2911
E-mail: mark. o'leary@saintjoku -,ca_
Fax: (506) 632-6199 "' s
Nom: Mark O'Leary
Adresse postale :
Service de la Croissance et du D6veloppement
Communautaire
The City of Saint John
15 Market Square,
Edifice de 1'h6tel de ville, 10' 6tage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L1
Telephone: (506) 658-2911
Adresse 6lectronique : mark. o'leary@saintj ohn.ca
T616copieur : (506) 632-6199
Notes:
1. All appropriate permits must be obtained and all relevant
legislation must be complied with in the course of carrying out the
required remedial action.
Notes :
1. Tous Ics permis prescrits doivent etre obtenus et toute la
legislation pertinente doit etre respectee pendant 1'execution des
mesures de remediation.
2. Payment of the fine does not alleviate the obligation to comply 2. Le paiement de 1'amende n'a pas pour effet d'annuler
with the by-law, standard or notice. ('obligation de se confonner A 1'arrete, A la norme ou A ('avis.
3. Costs become a debt due to the local government and may be 3. Les couts deviennent une creance du gouvernement local et
added to the joint local government and provincial Real Property peuvent etre ajoutes A Pavis commun d'evaluation et d'impot
Assessment and Tax Notice. foncier des gouvernements local et provincial.
U -J"
Inspector: Mark O'Leary l
Property Address. 101 Broadway Avenue, Saint John, New Brunswick
S dS a''�i�"1�' i
PID: 00302406 1
The inspection of the above mentioned property on July 2, 2019 has revealed that said property is not in compliance
with the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, By-law Number M-30, and
amendments thereto (the "By-law")
Subsection 6(1) of the By-law states:
No person shall permit premises owned or occupied by him or her to be unsightly by permitting to remain on any
part of the premises
(a) any ashes, junk, rubbish or refuse,
(b) an accumulation of wood shavings, paper, sawdust or other residue of production or construction,
(c) a derelict vehicle, equipment or machinery or the body or any part of a vehicle, equipment or machinery, or
(d) a dilapidated building.
At the property, the following items were noted:
(a) ashes, junk, rubbish or refuse.
(b) an accumulation of wood shavings, paper, sawdust or other residue of production or construction.
General comments about the property:
There are several items on the subject property which are considered unsightly. On the property there are garbage
bags, old lamps, two broken metal swings, a plastic cooler, a metal bucket, a wicker basket, wooden footboard, scrap
wood, a piece of a broken wooden fence, scrap metal, an old mattress, an old rusted metal wood burning stove, a
broken lawn chair, clothing, a plastic fuel can, broken plywood shed doors, a broken trampoline, plastic tarps, vinyl
siding, a rusted barbeque, a rusted mini refrigerator, old resin lawn furniture tables and chairs, a broken string of
outdoor lights, plastic bins, a metal truck box, a plastic truck box, a rubber tired metal trailer and rubbish. The property
is in an unsightly condition and is not in compliance with the By-law.
Required remedies:
All the items listed must be removed and properly disposed of at an appropriate landfill site.
Alternatively, should tl}ese items remain on the premise for storage, they must be stored in a garage or shed, sufficient
in size so as to hold t46 it6ms and provide full enclosure.
The unsightly comfy ic�is VI / premise must be remedied and the property brought into compliance with the By-law.
Repot Pr ar6d and Signed beR.Mark O'Leary
Date
Reviewed and Concurred In By Christopher McKiel, P. Eng.
A �T T �� C:1cl
Date
File No.:
BETWEEN:
e. 18, s.134(1))
Appellant(s),
-and-
THE CITY OF SAINT JOHN,
Respondent.
Parcel Identifier: PID #
N° du dossier:
ENTRE:
ch. 18, par. 134(l))
Appelant(s),
- et -
THE CITY OF SAINT JOHN,
Intimee.
Numero d'identification de la parcelle : # NID
Parcel Address: Adresse de la parcelle :
Owner(s) or Occupier(s):
Proprietaire(s) ou occupant(s)
Name:
Nom:
Address:
Adresse
Telephone:
Telephone:
Name:
Nom:
Address:
Adresse
Telephone:
Telephone:
that has been given under section 132(3) of the Local
Governance Act and appeals to the Saint John
Substandard Properties Appeal Committee.
The appellant's grounds for this appeal are as follows
(set out the grounds clearly but briefly):
Dated at
the
2018.
Favis qui a ete notifie aux termes de I'article 132(3) de
la Loi sur la gouvernance locale et fait appel au Comite
d'appel des proprietes inferieures aux normes de Saint
John.
Les motifs d'appel de 1'appelant(s) dans le present appel
sont les suivants (enoncer les motifs de fagon claire et
concise) :
day of Fait a
Signature of owner or occupier
The appellant(s) intends to proceed in the English
or French language (Please check the appropriate
box).
Please forward your Notice of Appeal by registered
mail to the clerk of The City of Saint John within
fourteen (14) days after having been given the notice
at the_following address:
Common Clerk's Office
15 Market Square, City Hall Building, 8"' Floor
P. O. Box 1971
Saint John, New Brunswick
E21, 4L1
Telephone: 506-658-2862
Telecopier: 506-674-4214
Notes:
2018.
Signature du proprietaire ou 1'oecupant
le
L'appelant(s) a (ont) 1'intention d'utiliser la langue
franQaise ou anglais e (Veuillez cocher la case
appropriee).
Veuillez faire parvenir votre Avis d'appel par courrier
recommande au secretaire de The City of Saint John
dans les quatorze (14) jours qui suivent la notification
de Vavis a Vadresse suivante :
Bureau du greffier communal
15 Market Square, Edifice de Fh6tel de ville, 8e etage
Case postale 1971
Saint John (Nouveau -Brunswick)
E21, 4L1
Telephone: 506-658-2862
Telecopieur: 506-674-4214
Notes :
1. A notice that is not appealed within fourteen (14) 1. Un avis dont it n'est pas interjete appel dans les
may be represented by counsel.
3. On an appeal, the Saint John Substandard
Properties Appeal Committee may confirm, modify
or rescind the notice or extend the time for complying
with the notice.
4. The Saint John Substandard Properties Appeal
Committee shall provide a copy of its decision to the
owner(s) or occupier(s) of the premises, building or
structure who brought the appeal within fourteen
(14) days after making its decision.
5. The owner(s) or occupier(s) provided with a copy
of a decision from the Saint John Substandard
Properties Appeal Committee may appeal the
decision to a judge of The Court of Queen's Bench of
New Brunswick within fourteen (14) days after the
copy of the decision was provided to the owner(s) or
occupier(s) on the grounds that (a) the procedure
required to be followed by the Local Governance Act
was not followed, or (b) the decision is unreasonable.
(ont) le droit d'etre entendu(s) et peut(vent) se faire
representer par un avocat.
3. Lors d'un appel, le Comite d'appel des proprietes
inferieures aux normes de Saint John peut confinner,
modifier ou annuler 1'avis ou proroger le delai pour s'y
conformer.
4. Le Comite d'appel des proprietes inferieures aux
normes de Saint John doit fournir une copie de sa
decision au(x) proprietaire(s) ou a 1'occupant(s) des
lieux, du batiment .ou de la construction qui lui a(ont)
interjete appel dans les quatorze (14) jours suivant la
date a laquelle it a rendu sa decision.
5. Le(s) proprietaire(s) ou 1'occupant(s) a qui une copie
d'une decision a ete fournie par le Comite d'appel des
proprietes inferieures aux normes de Saint John
peut(vent), dans les quatorze (14) jours qui suivent,
interjeter appel de la decision devant un juge de la Cour
du Bane de la Reine du Nouveau -Brunswick au motif
que (a) la demarche a suivre en vertu de la Loi sur la
gouvernance locale n'a pas ete suivie, ou (b) la decision
est deraisonnable.
Parcel identifier:
PID #55017917
Address: Milford Road, Saint John, New
Brunswick
Owner(s) or Occupier(s):
Name: Theriault, Scott Paul
Address: 461 Milford Road, Saint John, New
Brunswick, E2M 4R5
Local government giving notice: The City of Saint
John
By-law contravened: Saint John Unsightly Premises
and Dangerous Buildings and Structures By -Law, By-
law Number M-30 and amendments thereto (the "By-
law").
Provision(s) contravened: Subsection 6(1) of the By-
law.
Conditions(s) that exist: The premises are unsightly by
permitting junk, rubbish or refuse to remain on the
premise. The conditions of the premises are not in
compliance with the standards provided for pursuant to
the By-law. The conditions of the premises are
described in Schedule "A", a true copy of the Inspection
Report dated October 2, 2019 signed by Mark O'Leary,
By-law Enforcement Officer.
What must be done to correct the condition: The
owner is to remedy the conditions by complying with
the required remedial actions of the aforementioned
inspection report and bring the building and premises
into compliance with the aforesaid By-law.
Date before which the condition must be corrected:
Within 15 days of being served with the Notice to
Comply.
Date for giving notice of appeal: Within 14 days of
being served with the Notice to Comply.
Process to appeal: The owner may within 14 days after
having been served with this Notice to Comply, send a
Notice of Appeal by registered mail to the Common
Clerk of The City of Saint John, City Hall — 8`' Floor, 15
Market Square, Saint John, New Brunswick, E2L 4L1.
(Lor sur la gouvernance locale,
L.N.-B. 2017, ch. 18, par. 132(2))
Numero d'identification de la parcelle :
NID :55017917
Adresse: chemin Milford, Saint John,
Nouveau -Brunswick
Proprietaire(s) ou occupant(s) :
Nom: Theriault, Scott Paul
Adresse : 461 chemin Milford, Saint John,
Nouveau -Brunswick, E2M 4R5
Gouvernement local signifiant Pavis : The City of
Saint John
Arrete enfreint : Arrete relatif aux lieux inesthetiques
et aux bfrtirnents et constructions dangereux de Saint
John, Arrete numero M-30, ainsi que ses
modifications ci-afferentes (1' « Arrete >>).
Disposition(s) enfreinte(s) : Le paragraphe 6(1) de
1'Arrete.
Description de la (des) situation(s) : Les lieux sont
inesthetiques en permettant la presence de ferraille,
de detritus ou de dechets. Les conditions des lieux ne
sont pas en conformite selon les standards prevus dans
1'Arrete. Les conditions des lieux sont decrites a
Fannexe « A >), une copie conforme du rapport
d'inspection en date du 2 octobre, 2019 signs par
Mark O'Leary, un agent charge de 1'execution des
arretes du gouvernement local.
Ce qu'il y a lieu de faire pour y remedier: La
proprietaire doit restaurer les conditions en se
conformant aux recommandations du rapport
d'inspection susmentionne et d'amener le batiment et
les lieux en conformites avec l'Arr6t6.
Mai imparti pour y remedier : '
Dans les 15 jours qui suivent la signification de 1'avis
de conformite.
Date limite pour Bonner Favis d'appel: Dans les 14
jours qui suivent la notification de Pavis de
conformite.
Processus d'appel : La proprietaire peux dans les 14
jours qui suivent la notification de Favis de
conformite, envoy# un avis d'appel par courrier
recommande a la grcffiere communale de la
municipalite, a The City of Saint John, Edifice de
Fh6tel de ville, 8` etage, 15 Market Square, Saint
John, Nouveau -Brunswick, E2L 4L1.
Potential penalty for not complying with notice Peine possible en cas d'omission de se conformer
within time set out in notiee:Z Subsection 11(1) of the aux exigences de Favis dans le d6lai y imparti :
r r,,, — ,.„ i., -411 rl,P r P nnrnarnnhe. 11(1) de 1'Arret6 prevoit quiconque
terms of a Notice to Comply given under section 7 of
the said By-law, commits an offence that is punishable
under Part 2 of the Provincial Offences Procedure Act
as a category F offence.
Where an offence under subsection 11(1) continues for
more than one day, the minimum fine that may be
imposed is the minimum fine set by the Provincial
Offences Procedure Act for a category F offence
multiplied by the number of days during which the
offence continues pursuant to subparagraph 11(3)(b)(i).
Local government's authority to undertake repairs
or remedy:; Paragraph 12(1)(a) of the By-law states
that if an owner or occupier does not comply with a
Notice to Comply given under section 7 within the time
set out in the said Notice, the City may, cause the
premises of that owner or occupier to be cleaned up or
repaired. Further, subsection 12(3) of the By-law states
that the cost of carrying out such work, including any
associated charge or fee, is chargeable to the owner or
occupier and becomes a debt due to the City.
Dated at Saint John the 2"/day of October, 2019
Local government: T�6,ty'of
Signature of theAl lyca1 government:
omet de se conformer aux exigences formulees dans
un avis de confonnite notifie aux termes de Particle 7
de ladite Arrete, commet une infraction qui est
punissable en vertu de Ia partie 2 de la Loi sur la
procedure applicable azar in provinciales a
titre d'infraction de la Glasse F.
Lorsqu'une infraction prevue au paragraphe 11 (1) se
poursuit pendant plus d'une journee, 1'amende
minimale qui peut etre imposee est Pamende
minimale prevue par la Loi sur la procedure
applicable aux infractions provinciales pour une
infraction de la Glasse F multipliec par le nombre de
jours pendant lesquels Finfraction se poursuit
conformement a 1'alinea I I(3)(b)(i).
Pouvoir du gouvernement local d'entreprendre des
reparations on de remedier ii la situation : ;
Conformement aux alin6a 12(1)(a) de 1'Arrete, si un
avis de conformite a ete signifie aux termes de
Particle 7 de ladite Arrete et, que le proprietaire ou
Poccupant ne sc conforme pas a cet avis de
conformite dans le delai imparti et tel qu'il est repute
confirme ou tel qu'il est confirme ou modifie par un
comite du conseil ou par un juge en vertu le
paragraphe 12(3) de ladite Arrete, la municipalite peut
faire nettoyer ou reparer les lieux de ce proprietaire ou
de cet occupant et les coots afferents a 1'execution des
ouvrages, y compris toute redevancc ou tout droit
connexe, sont mis a la charge du proprietaire ou de
Poccupant et deviennent une creance de la
municipalite.
Fait a Saint John le 2 octobre, 2019
Gouvernement locale : The City of Saint John
Signature du fonctionnaire du gouvernement local:
Contac'' information o e o icer of the local Coordonnees du fonctionnaire du gouvernement
government: local:
Name: Mark O'Leary Nom: Mark O'Leary
Mailing address: Adresse postale :
Growth and Community Development Services
The City of Saint John
15 Market Square
City Hall Building, 10"' Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4LI
Telephone: (506) 658-2911
E-mail: mark.o'leary@saintjohn.ca
Fax: (506) 632-6199
Service de la Croissance et du Developpement
Communautaire
The City of Saint John
15 Market Square,
Edifice de 116tel de ville, 10° etage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4LI
Telephone: (506) 658-2911
Adresse electronique:mark.o'leary@saintjohn.ca
T616copieur : (506) 632-6199
Corporates.1'ocit, government Sceau du gouvernement local
Notes: Notes :
1. All appropriate permits must be obtained and all relevant 1. Tous les permis prescrits doivent etre obtenus et toute la
legislation must be complied with in the course of carrying out the legislation pertincnte dolt etre respectee pendant 1'execution des
required remedial action. mesures de remediation.
2. Payment of the fine does not alleviate the obligation to comply 2. Le paiement do l'amende n'a pas pour eftiet d'annuler
with the by-law, standard or notice. ]'obligation de se confonner a l'arrete, a la nonne ou a ('avis.
3. Costs become a debt due to the local governmcnt and may be 3. Les coots deviennent une creance du gouvernement local et
added to the joint local government and provincial Real Property peuvent etre ajoutes a ]'avis commun d'evaluation et d'imp&t
Assessment and Tax Notice. foncier des gouvernements local et provincial.
Inspector: Mark O'Leary - -- -- 1
Property Address: Milford Road, Saint John, New Brunswick
as il
PID: 55017917 / !
The inspection of the above mentioned property on September 17, 2019 has revealed that said property is not in
compliance with the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law, By-law Number M-
30, and amendments thereto (the "By-law").
Subsection 6(1) of the By-law states:
No person shall permit premises owned or occupied by him or her to be unsightly by permitting to remain on any
part of the premises
(a) any ashes, junk, rubbish or refuse,
(b) an accumulation of wood shavings, paper, sawdust or other residue of production or construction,
(c) a derelict vehicle, equipment or machinery or the body or any part of a vehicle, equipment or machinery, or
(d) a dilapidated building.
At the property, the following items were noted:
(a) ashes, junk, rubbish or refuse.
(b) an accumulation of wood shavings, paper, sawdust or other residue of production or construction.
(c) a derelict vehicle, equipment or machinery or the body or any part of a vehicle, equipment or machinery.
General comments about the property:
There are several items on the subject property which are considered unsightly. On the property there are old tires, a
car hood, garbage bags, pallets, cabinets, plastic tarps, upholstered chairs, a love seat, a large plastic bin, power tools,
scrap wood, a car seat, a hard top for a Jeep, metal frames, a head board, a box spring and mattress and a lawn
mower. The property is in an unsightly condition and is not in compliance with the By-law.
Required remedies:
All the items listed must be removed and properly disposed of at an appropriate landfill site.
Alternatively, should these items remain on the premise for storage, they must be stored in a garage or shed, sufficient
in size so as to hold the items and provide full enclosure.
The unsightly conditiAl
the premise�nust be remedied and the property brought into compliance with the By-law.
Report Prepared and Signed byA. M6rk O'Leary
�/ -7 1
C 4�e0.,�er
Date
_1
te,
Reviewed and Concurred In By Christopher McKie[, P. Eng.
l
Date
File No.
BETWEEN:
c. 18, s.134(1))
0
Appellant(s),
- and -
THE CITY OF SAINT JOHN,
Respondent.
Parcel Identifier : PID #
Parcel Address:
Owner(s) or Occupier(s):
Name:
Address:
Telephone:
Name:
Address:
Telephone:
N° du dossier:
ENTRE:
ch. 18, par. 134(l))
Appelant(s),
-et-
THE CITY OF SAINT JOHN,
Intimee.
Numero d'identif cation de la parcelle : # NID
Adresse de la parcelle :
Proprietaire(s) ou occupant(s)
Nom:
Adresse
Telephone:
Nom:
Adresse
Telephone:
that has been given under section 132(3) of the Local
Governance Act and appeals to the Saint John
Substandard Properties Appeal Committee.
The appellant's grounds for this appeal are as follows
(set out the grounds clearly but briefly):
Dated at
2018.
1'avis qui a ete notitie aux termes de Particle 1:12(3) de
la Loi sur la gouvernance locale et fait appel au Comite
d'appel des proprietes inferieures aux normes de Saint
John.
Les motifs d'appel de 1'appelant(s) dans le present appel
sant les suivants (enoncer les motifs de fagon claire et
concise) :
the day of Fait a
Signature of owner or occupier
The appellant(s) intends to proceed in the English
or French language (Please check the appropriate
box).
Please ,forward your Notice of Appeal by registered
mail to the clerk of The City of Saint John within
fourteen: (14) days after having been given the notice
at the.following address:
Common Clerk's Office
15 Market Square, City Hall Building, 8"' Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L1
Telephone: 506-658-2862
Tel ecopi er: 506-674-4214
Notes:
2018.
Signature du proprietaire ou Foccupant
le
L'appelant(s) a (ant) Fintention d'utiliser la langue
fran�aise ou anglaise (Yeuillez cocher la case
appropriee).
Yeuillez faire parvenir votre Avis d'appel par courrier
recommande au secretaire de The City of Saint John
dans les quatorze (14) fours qui suivent la notification
de l'avis ci l'adresse suivante :
Bureau du greffier communal
15 Market Square, Edifice de I'hetel de ville, 8' etage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L1
Telephone: 506-658-2862
Tel ecopi eur: 506-674-4214
Notes :
1. A notice that is not appealed within fourteen (14) 1. Un avis dont it West pas interjete appel dans les
may be representee by counsel.
3. On an appeal, the Saint John Substandard
Properties Appeal Committee may confirm, modify
or rescind the notice or extend the time for complying
with the notice.
4. The Saint John Substandard Properties Appeal
Committee shall provide a copy of its decision to the
owner(s) or occupier(s) of the premises, building or
structure who brought the appeal within fourteen
(14) clays after making its decision.
5. The owner(s) or occupier(s) provided with a copy
of a decision from the Saint John Substandard
Properties Appeal Committee may appeal the
decision to a judge of The Court of Queen's Bench of
New Brunswick within fourteen (14) days after the
copy of the decision was provided to the owner(s) or
occupier(s) on the grounds that (a) the procedure
required to be followed by the Local Governance Act
was not followed, or (b) the decision is unreasonable.
(ont) le droit cretre entendu(s) et peut(vent) se taire
representer par un avocat.
3. Lars d'un appel, le Comite d'appel des proprietes
inferieures aux normes de Saint John peut confirmer,
modifier ou annuler 1'avis ou proroger le delai pour s'y
conformer.
4. Le Comite d'appel des proprietes inferieures aux
normes de Saint John doit fournir une copie de sa
decision au(x) proprietaire(s) ou a l'oecupant(s) des
lieux, du batiment ou de la construction qui lui a(ont)
interjete appel dans les quatorze (14) jours suivant la
date a laquelle it a rendu sa decision.
5. Le(s) proprietaire(s) ou 1'occupant(s) a qui une copie
d'une decision a ete fournie par le Comite d'appel des
proprietes inferieures aux normes - de Saint John
peut(vent), dans les quatorze (14) jours qui suivent,
interjeter appel de la decision devant un juge de la Cour
du Banc de la Reine du Nouveau -Brunswick au motif
que (a) la demarche a suivre en vertu de la Loi sur la
gouvernance locale n'a pas ete suivie, ou (b) la decision
est deraisonnable.
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COUNCIL REPORT
M&C No.
2019-291
Report Date
November 08, 2019
Meeting Date
November 18, 2019
Service Area
Growth and Community
Development Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT. Saint John Diocesan Cemeteries Inc. — Holy Cross Cemetery
correspondence —Approval of Mausoleum
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Kenneth Melanson
Jacqueline Hamilton
John Collin
RECOMMENDATION
That Common Council hereby approves of the proposed establishment of a
mausoleum at Holy Cross Cemetery, Sand Cove Road, Saint John, New Brunswick
by Saint John Diocesan Cemeteries Inc. as shown on Attachment 2 to this report.
EXECUTIVE SUMMARY
The purpose of this report is to authorize Saint John Diocesan Cemeteries Inc. for
the installation of a second mausoleum at Holy Cross Cemetery. Written Council
approval is required as per the Cemetery Companies Act of New Brunswick.
PREVIOUS RESOLUTION
At its meeting of October 7, 2019 meeting, Common Council referred general
correspondence received from the Saint John Diocesan Cemeteries Inc. to the City
Manager. This correspondence is requesting written approval by Council for the
placement of an additional mausoleum at Holy Cross Cemetery.
REPORT
In response to the motion above, the correspondence was referred to Growth and
Community Development Services staff for investigation of any permitting
requirements. Staff have determined that no permits will be required from the City
for the proposed mausoleum. The applicants still cannot proceed until written
authorization from Common Council is necessary as per section 13(3) of the
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Cemetery Companies Act, is provided. This report recommends Council provide this
support through adopting the proposed resolution.
STRATEGIC ALIGNMENT
This proposal aligns with Council's priority to provide a Vibrant, Safe City by
supporting the operation of various cemetery resources throughout the City of
Saint John.
SERVICE AND FINANCIAL OUTCOMES
Authorizing the mausoleum will enable the Holy Cross Cemetery to proceed with
necessary approvals and construction in a timely manner.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Not Applicable
ATTACHMENTS
Attachment 1 - Saint John Diocesan Cemeteries Inc. — Holy Cross Cemetery
correspondence —Approval of Mausoleum
Attachment 2 — Site Plan location of proposed mausoleum
N-11
,gin.
0
SUBMISSION TO COUNCIL FORIV
The Qty ofSaint John
First Name: Leann Last Name: Nogueira
Name of Organization/Group (where applicable): Saint John Diocesan Cemeteries Inc
Mailing Address: P.O. Box 2281
City or Town: Saint John Province: NB Postal Code: E21 -3V1
Day Time Phone Number: 506-653-6861 Email: catholiccemeteries@nb.aibn.com
D If you do NOT wish to have your personal information (address, phone number,
ttmail) become part of the public record, please check this box.
W
Topic of Submission: Mausoleum Placement in Holy Cross Cemetery
Purpose for Submission (what is the as of Council): The Saint John Diocesan
Cemeteries Inc. Is requesting approval to place an above ground Mausoleum with 2 crypts for
full casket burials within Holy Cross Cemetery.
Executive Summary: City Council approval is required for the Saint John Diocesan
Cemeteries Inc. to move forward and apply to the Minister of Health in accordance with
Section 13(3) of regulation 94-129 under the Cemeteries Act. I have attached a copy of the act
along with the requirements of the Minister of Health. We have two Mausoleums that have
been previously approved by council that were on a much larger scale and are asking approval
for the third to be placed.
U61110,1RU019 I I
Signature: Leann Nogueira Manager Date: 2019-09-24
r
„129 Loi sur les compagnies de cimeticre C-1
V.
(B) the security features in the crematorium; (B) des dispositifs de s6curit6 du cr6matorium;
(iv) if the crematorium is or will be located within
a municipality, the written approval of the council of
the municipality for the establishment, alteration or
extension of the crematorium;
(iv.l) if the crematorium is or will be located
within a rural community, the written approval of the
rural community council for the establishment, al-
teration or extension of the crematorium; and
(v) if the crematorium is or will be located within
an unincorporated area, the written approval of the
Minister of Local Government for the establish-
ment, alteration or extension of the crematorium.
1998, c.41, s.17; 2000, c.26, s.33; 2005-83; 2006, c.16,
8.19
(1)� No person shall establish, alter or extend a crypt,
mausoleum or vault unless
(a) the person is a company incorporated in accor-
dance with the Act, and
(b) the person obtains the written approval of the
Minister and the approval of the Lieutenant -Governor
in Council.
13(2) A company shall apply for an approval under
paragraph (1)(b) by submitting a written application to the
Minister.
3 , An application submitted under subsection (2)
shall
(a) contain the following information:
(i) the name and address of the applicant;
(ii) the name and address of the crypt, mausoleum
or vault;
(iii) if areas are being created or eliminated in the
crypt, mausoleum or vault, the number of areas be-
ing created or eliminated; and
(iv) any other information that the Minister may
require; and
10
(iv) si le crdmatorium est situts dans une municipa-
lite, ('approbation 6crite du conseil municipal aux
fins de la crdation, de la modification ou de 1'agran-
dissement du cr6matorium;
(iv. 1) si le crematorium est situ6 dans une commu-
nautd rurale, 1'approbation 6crite du Conseil de la
communaut6 rurale aux fins de la creation, de la mo-
dification ou de 1'agrandissement du cr6matorium;
et
(v) si le crdmatoriurn est situ6 dans un secteur non
constitud en municipalit6, I'approbation 6crite du
ministre des Gouvernements locaux aux fins de la
cr6ation, de la modification ou de I'agrandissement
du cr6matorium.
1998, c.41, art.17; 2000, c.26, art.33; 2005-83; 2006, c.16,
art. 19
13(1) Nul ne peut cyder, modifier ou agrandir une
crypte, un mausolee ou un caveau A moins que
a) la personne ne soit une Compagnie constitu6e e
corporation confor►ndment A la Loi, et
b) is personne n'obtienne une approbation 6crite du
Ministre et du lieutenant-gouverneur en Conseil.
13(2) Une Compagnie doit demander une approbation
en vertu de I'alin6a (1)b) en soumettant une demande
6crite au Ministre.
13(3) Une demande soumise en vertu du paragraphe (2)
doit
a) contenir les renseignements suivants
(i) le nom et 1'adresse du demandeur;
(ii) le nom et 1'adresse de is crypte, du mausol6e
ou du caveau;
(iii) le cas 6ch6ant, le nombre d'espaces 6tant
crMs ou dliminds dans la crypte, le mausolde ou le
caveau; et
(iv) tout autre renseignement que le Ministre peut
exiger; et
E:ii]
Cemetery Companies Act
0
w (b) be accompanied by
(i) a copy of a plan of the crypt, mausoleum or
vault and the property on which it is or will be lo-
cated that shows the location and dimensions of ev-
ery area, path, fence, structure, building, road or
body of water adjacent to the crypt, mausoleum or
vault;
(ii) a certified copy of a deed or other documentary
evidence showing that the applicant owns the prop-
erty where the crypt, mausoleum or vault is or will
be bated;
(iii) a copy of a design of the crypt, mausoleum or
vault that is prepared by a person who is a member
of the Association of Professional Engineers of the
Province of New Brunswick or is licensed to prac-
tise as a professional engineer under the Engineering
Profession Act that contains
(A) a list of the materials used or to be used in
the construction of the crypt, mausoleum or vault,
(B) the number of areas in the crypt, mauso-
leum or vault, and
(C) the security features in the crypt, mauso-
leum or vault;
'(iv) „e;crlrpt,, mausoleum or vault is or will be
locati~d°within a,municipality, the wrtten..approvnl
of the council of Ahe municipality, for the establish -
Ment, alteration< or, extension ,of the crypt, mauspr
leutr+ orr vault;
(iv.l) if the crypt, mausoleum or vault is or will be
located within a rural community, the written ap-
proval of the rural community council for the estab-
lishment, alteration or extension of the crypt, mau-
soleum or vault; and
(v) if the crypt, mausoleum or vault is or will be lo-
cated within an unincorporated area, the written ap-
proval of the Minister of Local Government for the
establishment, alteration or extension of the crypt,
mausoleum or vault+
13(4) If the Minister approves an application submitted
under subsection (2), the Minister shall submit the appli-
cation to the Lieutenant -Governor in Council for ap-
proval.
11
E -11I
b) etre accompagnee
94-129
(i) d'une copie d'un plan de la crypte, du mausolee
ou du caveau et de la propriete oil it est situe mon-
trant 1'empiacement, les dimensions et les limites de
chaque espace, sentier, cloture, construction, bati-
ment, chemin on gtendue d'eau adjacent A la crypte,
an mausolte on an caveau;
(ii) d'une copie certifiee conforme d'un acte de
transfert ou de tout autre preuve documentaire de-
montrant que le demandeur est propribtaire du ter-
rain od la crypte, le mausoIde on le caveau est situe;
(iii) d'une copie d'un pian de la crypte, du mauso-
lee ou du caveau pr€pare par un membre de I'Asso-
ciation des ingenieurs du Nouveau -Brunswick on
par un ingenieur titulaire de permis en vertu de la Loi
sur to profession d'ingenieur et qui contient une liste
(A) des materiaux utilises dans la construction
de la crypte, du mausolee ou du caveau,
(B) du nombre d'espaces dans la crypte, le
mausolee on le caveau, et
(C) des dispositifs de securitd de la crypte, du
mausolee ou du caveau;
(iv) si la crypte, le mausolee on le caveau est situs
dans une municipalite, Papprobation &-rite du Con-
seil municipal aux fins de la creation, de la modifi-
cation on de I'agrandissement de la crypte, du mau-
solee ou du caveau;
(iv.l) si la crypte, le mausolee ou le caveau est si-
tue dans une Communaute rurale, I'approbation
ecrite du Conseil de la Communaute rurale aux fins
de la creation, de la modification on de I'agrandisse-
ment de la crypte, du mausolee ou du caveau; et
(v) si la crypte, le mausoiee on le caveau est situe
dans un secteur non constitue en municipalite, ('ap-
probation ecrite du ministre des Gouvernements lo-
caux aux fins de la creation, de la modification ou de
I'agrandissement de la crypte, du mausolee on du ca-
veau.
13(4) Si le Ministre donne son approbation A une de-
mande soumise en vertu du paragraphe (2), le Ministre
dolt soumettre la demande au lieutenant-gouverneur en
Conseil pour approbation.
E:YA
COUNCIL REPORT
M&C No.
2019-271
Report Date
October 24, 2019
Meeting Date
November 18, 2019
Service Area
Corporate Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Council Members Wage Escalation Clause
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Patricia Anglin
Jonathan Taylor
John Collin
RECOMMENDATION
It is recommended that Common Council adopt the following:
RESOLVED THAT Common Council will follow the provisions of the Wage
Escalation Policy FAS -007 for annual salary adjustments to Council Members'
Salaries based on the following considerations:
• Council will receive an annual salary adjustment based upon the Wage
Escalation Policy's three-year rolling average of Assessment Base Growth
calculation or
• Council will receive an annual salary adjustment based on the
Management Professional Non -Union (MPNU) Association salary
adjustment
• Whichever is less.
AND THAT Common Council amend the Bylaw LG -1 A Bylaw to Provide for
Salaries to the Members of the Common Council of the City of Saint John to
incorporate the annual salary adjustment.
EXECUTIVE SUMMARY
Many municipalities have provisions in their Council salary bylaws which
prescribe cost -of -living adjustments based on particular formulas. This type of
approach can help mitigate the significant one-time increases that often occur
when compensation levels have not been adjusted in a number of years.
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The City of Saint John Wage Escalation Policy FAS 007 ensures:
➢ The City spends within its means;
➢ Wage escalation does not exceed the City's assessment base growth,
➢ Wage and benefit budget increases shall be based on the previous three
year rolling average of Assessment Base Growth;
➢ Wage and benefit increases shall not exceed CPI plus 1% unless supported
by a business case and approved by Common Council.
Common Council's compensation was increased in 2016 based upon
recommendations from an independent firm hired by the City to review salary
and benefit levels. In 2019 Council adjusted its compensation to address the
Canada Revenue Agency's elimination of the 1/3 tax free allowance for elected
officials.
Currently there are no provisions in Council's salary bylaw to provide for future
cost -of -living adjustments or to provide safeguards against potentially
unreasonable future increases. It is therefore recommended that Council
incorporate a wage escalation mechanism into its salary bylaw based upon the
provisions of the City's Wage Escalation Policy.
PREVIOUS RESOLUTION
Council resolution of October 21, 2019 (agenda Item 11.3):
"RESOLVED that Council Members Wage Escalation be referred to the City
Manager to determine how best to include Wage Escalation policy within future
consideration of Council salaries."
REPORT
Many municipalities have provisions in their Council salary bylaws which
prescribe cost -of -living adjustments based on particular formulas. This type of
approach can help mitigate the significant one-time increases that often occur
when compensation levels have not been adjusted in a number of years.
The City of Saint John Wage Escalation Policy FAS 007 ensures:
➢ The City spends within its means
➢ Wage escalation does not exceed the City's assessment base growth
➢ Wage and benefit budget increases shall be based on the previous three
year rolling average of Assessment Base Growth
➢ Wage and benefit increases shall not exceed CPI plus 1% unless supported
by a business case and approved by Common Council
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An example of a 3 -year rolling average calculation of assessment base growth
percentages is illustrated below.
The findings of the 2016 Korn Ferry (Hay Group) Council Compensation Report
included the following:
• All Council positions at the City of Saint John receive salaries that are the
second lowest in the peer group
• All municipalities provide benefits (health, dental, life, etc.) in addition to
base salary
• 5 of the 7 municipalities provide some form of pension to elected officials
• 5 of the 7 municipalities provide perquisites to elected officials, the most
common being vehicle allowance
• Salary adjustments:
0 6 of the 7 municipalities provide on a regular basis, usually
annually
o Methods used to determine salary increase include:
- Collective bargaining agreements
- CPI
- Published compensation data
As a result of the Hay Group recommendations, the salary for members of
Common Council was increased.
In 2019 a salary adjustment was approved by Council to compensate for the
Canada Revenue Agency decision to eliminate the 1/3 tax free allowance for
elected officials. Council chose not adopt the staff recommendation to add an
annual CPI clause to its Salary Bylaw.
On September 23rd, 2019 Council adopted the City of Saint John Wage Escalation
Policy FAS 007 for City employees. The Wage Escalation Policy is an important
component of Long -Term Financial Plan and strengthens governance related to
fiscal responsibilities and improves the overall financial health of the City.
On October 21, 2019 Council made a resolution to incorporate the CPI provisions
of the Wage Escalation Policy into the Council Members Salary Bylaw.
E:16'7
2013
2014
2015
2016
2017
2018
2109
2020
Tax
3.26%
-0.48%
0.56%
1.53%
0.59%
0.39%
1.86%
Base
Growth
3 Year
1.11%
0.54%
0.90%
0.84%
0.95%
Rolling
Average
The findings of the 2016 Korn Ferry (Hay Group) Council Compensation Report
included the following:
• All Council positions at the City of Saint John receive salaries that are the
second lowest in the peer group
• All municipalities provide benefits (health, dental, life, etc.) in addition to
base salary
• 5 of the 7 municipalities provide some form of pension to elected officials
• 5 of the 7 municipalities provide perquisites to elected officials, the most
common being vehicle allowance
• Salary adjustments:
0 6 of the 7 municipalities provide on a regular basis, usually
annually
o Methods used to determine salary increase include:
- Collective bargaining agreements
- CPI
- Published compensation data
As a result of the Hay Group recommendations, the salary for members of
Common Council was increased.
In 2019 a salary adjustment was approved by Council to compensate for the
Canada Revenue Agency decision to eliminate the 1/3 tax free allowance for
elected officials. Council chose not adopt the staff recommendation to add an
annual CPI clause to its Salary Bylaw.
On September 23rd, 2019 Council adopted the City of Saint John Wage Escalation
Policy FAS 007 for City employees. The Wage Escalation Policy is an important
component of Long -Term Financial Plan and strengthens governance related to
fiscal responsibilities and improves the overall financial health of the City.
On October 21, 2019 Council made a resolution to incorporate the CPI provisions
of the Wage Escalation Policy into the Council Members Salary Bylaw.
E:16'7
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It is recommended that Common Council amend the Bylaw LG -1 A Bylaw to
Provide for Salaries to the Members of the Common Council of the City of Saint
John to incorporate the provisions of the Wage Escalation Policy FAS -007 for
annual salary adjustment to Council Members' Salaries based on the following
considerations:
• Council will receive an annual salary adjustment based upon the Wage
Escalation Policy's three-year rolling average of Assessment Base Growth
calculation or
• Council will receive and annual salary adjustment based on the
Management Professional Non -Union (MPNU) Association salary
adjustment
• Whichever is less.
STRATEGIC ALIGNMENT
Fiscally responsible
SERVICE AND FINANCIAL OUTCOMES
Fiscally responsible salaries and benefits.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Finance and Administrative Services, Legal Services
ATTACHMENTS
N/A
E:11.1
COUNCIL REPORT
M&C No.
2019-300
Report Date
November 14, 2019
Meeting Date
November 18, 2019
Service Area
Saint John Water
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: West Saint John Drinking Water Transition Schedule Update
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Dean Price
Brent McGovern
John Collin
RECOMMENDATION
It is recommended that Council receive and file this report.
EXECUTIVE SUMMARY
The purpose of this report is to provide Council with an update regarding the
schedule associated with the construction of the interim water pumping station
that will support the delivery of drinking water from the new Loch Lomond
Drinking Water Treatment Facility to Lower West, Milford, Randolph, Fundy
Heights, Duck Cove and Sand Cove neighbourhoods.
Work is scheduled to be completed on the interim water pumping station in
January 2020. Saint John Water will commission the new pumping station and
put it into service shortly thereafter in late January or February 2020.
Staff plan to return to Council with a further update on the timeline of the
drinking water transition in January 2020.
PREVIOUS RESOLUTIONS
On August 19, 2019, Common Council resolved to accept the proposal of Fairville
Construction Ltd. for the purchase of a new Packaged Pumping Station at a cost
of $466,000 plus HST in M&C No. 2019-212.
On July 29, 2019, Common Council resolved to approve an adjustment to the
2019 Water & Sewerage Utility Fund Capital Program to establish a new project
entitled Fallsview Drive — Interim Booster Pump Station, with a budget of
$575,000 ($525,000 net cost after HST rebate) with the overall 2019 Water &
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Sewerage Utility Fund Capital Program to remain at the original approved
envelope amount as the Fallsview Drive — Interim Booster Pump Station project
will be offset from a $525,000 budget surplus from the Metcalf Street project.
Also in the same report (M&C No. 2019-189), Common Council resolved to
award tender No. 2019-081204T: Package Pump Station — Civil Works, in the
amount of $228,107.66 plus HST to Keel Construction Ltd.
On July 8, 2019, Common Council resolved that the City implement the interim
solution described in M&C No. 2019-168 "South Bay Wellfield Performance" to
supply water from the Loch Lomond Drinking Water Treatment Facility to Lower
West, Milford, Randolph, Fundy Heights, Duck Cove and Sand Cove
neighbourhoods, while it develops a long-term solution to ensure a sustainable
supply of safe, clean drinking water for West Saint John.
STRATEGIC ALIGNMENT
Saint John invests in sustainable City services and municipal infrastructure.
SERVICE AND FINANCIAL OUTCOMES
N/A
REPORT
The project to deliver drinking water from the new Loch Lomond Drinking Water
Treatment Facility to Lower West, Milford, Randolph, Fundy Heights, Duck Cove
and Sand Cove neighbourhoods has been progressing well.
The design and construction of the interim or packaged water pumping station is
underway. Knowing that the pumps would be the item that would take the
longest time to deliver and that they are key to beginning the assembly of the
packaged pumping station, staff proceeded with ordering the pumps first. The
pumps arrived in Saint John on November 4, 2019.
The fabricator has all of the major components on hand at this time and has
begun to assemble the pumping station at their Saint John facility. The
fabrication and assembly will be completed in the next 4-8 weeks (mid-
December 2019 to mid- January 2020) and, once completed, the pumping
station will be delivered to the site at Fallsview Drive. Once on site, power and
water connections will be made and the station will undergo required testing.
Pipes will then be disinfected before the station is commissioned and entered
into service.
Timeline
A public call for proposals was issued June 25, 2019 for a packaged pumping
station that includes the provision of all labour, materials and equipment
E:1:3
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required to provide a complete packaged pumping system housed in a portable
prefabricated building.
A civil works tender package was approved by Council on July 29, 2019. The
contractor is currently preparing the site to accept the station, and the station is
being assembled.
Work is scheduled to be completed in January 2020 with commissioning and
entering into service the new interim pumping station shortly thereafter in late
January or February 2020. Staff plan to return to Council to provide a further
update on the timeline of the drinking water transition in January 2020.
Once the new pumping station is commissioned, water will begin to flow from
the new Loch Lomond Drinking Water Treatment Facility to the neighbourhoods
of Lower West, Milford, Randolph, Fundy Heights, Duck Cove and Sand Cove.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City's Communications Department is developing public communications
that will be used to further inform the west side customers who will be
experiencing a transition in their drinking water source. Communications
methods to inform residents will include social media, traditional media,
website, and direct mail shortly prior to the drinking water transition.
ATTACHMENTS
N/A
E-lue
COUNCIL REPORT
M&C No.
2019-308
Report Date
November 13, 2019
Meeting Date
November 18, 2019
Service Area
Corporate Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Microsoft Business and Services Agreement — Annual Update
Statements
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadCity
Manager
Robert James
Stephanie Rackley -Roach
Neil Jacobsen
John Collin
RECOMMENDATION
The City Manager recommends that the Mayor and Common Clerk be authorized to
execute the necessary documents to complete the annual Enterprise Update
Statements process for Year 1 and Year 2 in accordance with the terms of the Microsoft
Business and Services Agreement signed on May 15, 2017 in M&C No. 2017-129.
EXECUTIVE SUMMARY
In 2017, the City entered into a three (3) year Business and Services Agreement with
Microsoft for Software Assurance. Software Assurance is a collection of benefits
included with Microsoft products such as free software upgrades, e -training, and backup
recovery. For each year of the agreement, the City is required to complete an
Enterprise Update Statement. This process essentially accounts for any new licenses
that have been added during the year. Enterprise Update Statements for Year 1 and
Year 2 are now required. The statements are required to be signed in order to purchase
any additional licenses in the final year, Year 3, of the agreement.
PREVIOUS RESOLUTIONS
May 15, 2017: 5.12: RESOLVED that as recommended by the City Manager in the
submitted report M&C 2017-129: Microsoft Business and Services Agreement, the City
enter into a three (3) year term Enterprise Enrollment Agreement with Microsoft
Corporation for Volume Licensing Renewal of Microsoft's Software as outlined in the
form attached to M&C 2017-129.
0191
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REPORT
Microsoft software products are used by over one thousand (1000) users, including
employees of the City of Saint John and our agencies, boards, and commissions.
Products include:
• Operating Systems (OS) for desktop computers, laptops, and tablets
• Microsoft Office Suite (Word, Excel, PowerPoint, Outlook, etc.)
• Operating Systems for application servers
• Application software for servers (e.g., email — Exchange, internal web site
service — SharePoint, databases — SQL)
Microsoft software powers and enables City communication systems (saintjohn.ca,
email), financial systems, protective services (911 dispatch, Police records, Fire Resource
Management), road maintenance tracking, Saint John Water Utility infrastructure
monitoring and design, property planning, and Council agendas.
Software Assurance is a comprehensive volume licensing program that includes a range
of software and service benefits. Software Assurance provides the City with 240
technical support, deployment planning services, end-user and technical e -training,
exclusive technologies and rights, backup disaster recovery rights, as well as the latest
Microsoft software version releases. Software Assurance allows the City's Information
Technology administrators to ensure that these enabling technologies remain secure, up
to date, and operational while remaining fiscally responsible.
The agreement with Microsoft also provides the flexibility to grow without the need to
purchase incremental licenses every time they are required. Once a year, the City is
required to align the agreement with the total number of licenses that may have been
added in the previous twelve (12) months. This true -up process involves an inventory of
all the qualified computers, users, and servers added over the course of the year, along
with any additional product use requiring a license from Microsoft.
STRATEGIC ALIGNMENT
The Microsoft operating system, Windows, and the Microsoft Office products (Word,
Excel, PowerPoint, Outlook, etc.) are integral to City operations. The agreement signed
in 2017 provides fiscal stability and enables strategic policies and improvements. The
Enterprise Update Statements are required in the terms of this agreement.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City's Legal team was consulted in reviewing the Enterprise Update Statements and
support the recommendation.
ATTACHMENTS
Microsoft Enterprise Update Statements, Year 1 and Year 2
021
Microsoft
Enterprise Update Statement
Enterprise Agreement Number 75E61130
Enrollment Number 7203748
Company Name The City of Saint John.
Volume Licensing
In accordance with the terms of entity's Enterprise Agreement and Enrollment, a true -up order must
be submitted for each Enrollment's anniversary (including at Enrollment expiration and prior to any
renewal) to account for License quantity increases for:
a. Qualified Desktops/Devices or Qualified Users
b. Online Services (where permitted)
c. Previously ordered Additional Products
d. Products included in the Server and Cloud Enrollment or Enrollment for Core
Infrastructure
e. Products included in the Enrollment for Application Platform. Products selected with the
three year true -up option must place the true -up order only upon enrollment expiration
and prior to renewal.
If entity has ordered any additional quantities since its last Enrollment anniversary, this annual true -up
order is still required. Entity must submit an Enterprise Update Statement for each anniversary when
there has been no increase in required License quantities as described above.
® In checking this box, entity confirms that under the above referenced Enrollment, there has been
no increase in the number of required Licenses not already ordered in a prior placed True Up
Orders. Entity understands that it is the responsibility of the entity to ensure that all licenses
installed are used according to the Enterprise Agreement and Enrollment referenced above.
Select applicable year for this Update statement: Year 1
Customer/Government Partner (as applicable)
Name
.. .. -
Name of Entity*
The City of Saint John.
Signature*
Printed Name*
Printed Title*
Signature Date*
* indicates required fields
EAU nive rsal U pdateStatem ent(WW)(E N G)(J u1201 5) 92 Page 1 of 1
Microsoft
Enterprise Update Statement
Enterprise Agreement Number 75E61130
Enrollment Number 7203748
Company Name The City of Saint John.
Volume Licensing
In accordance with the terms of entity's Enterprise Agreement and Enrollment, a true -up order must
be submitted for each Enrollment's anniversary (including at Enrollment expiration and prior to any
renewal) to account for License quantity increases for:
a. Qualified Desktops/Devices or Qualified Users
b. Online Services (where permitted)
c. Previously ordered Additional Products
d. Products included in the Server and Cloud Enrollment or Enrollment for Core
Infrastructure
e. Products included in the Enrollment for Application Platform. Products selected with the
three year true -up option must place the true -up order only upon enrollment expiration
and prior to renewal.
If entity has ordered any additional quantities since its last Enrollment anniversary, this annual true -up
order is still required. Entity must submit an Enterprise Update Statement for each anniversary when
there has been no increase in required License quantities as described above.
® In checking this box, entity confirms that under the above referenced Enrollment, there has been
no increase in the number of required Licenses not already ordered in a prior placed True Up
Orders. Entity understands that it is the responsibility of the entity to ensure that all licenses
installed are used according to the Enterprise Agreement and Enrollment referenced above.
Select applicable year for this Update statement: Year 2
Customer/Government Partner (as applicable)
Name
.. .. -
Name of Entity*
The City of Saint John.
Signature*
Printed Name*
Printed Title*
Signature Date*
* indicates required fields
EAU nive rsal U pdateStatem ent(WW)(E N G)(J u1201 5) 93 Page 1 of 1
COUNCIL REPORT
M&C No.
2019-307
Report Date
November 14, 2019
Meeting Date
November 18, 2019
Service Area
Corporate Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Security Information and Event Management (SIEM) Contract Award
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
I Commissioner/Dept. Head
City Manager
Stephanie Rackley -Roach
I Neil Jacobsen
John Collin
RECOMMENDATION
The City Manager recommends that:
1. The City enters into a three (3) year Agreement with Bulletproof
Solutions ULC for Security Information and Event Management (SIEM)
Software as a Solution (SaaS) and 24/7/365 Security Operations Center
(SOC) Monitoring with an option for two (2) additional two (2) year
extensions.
2. The Mayor and Common Clerk be authorized to execute the necessary
contract documents.
3. Common Council pre -approve the funds allocated in the draft 2020
General Fund Operating budget required to award the contract.
EXECUTIVE SUMMARY
A Security Information and Event Management (SIEM) solution provides an
organization's Information Technology administrators with network security
intelligence and real-time monitoring of network devices, systems, and
applications. Not only can this technology log security events, they have the
ability to analyze the log entries to identify signs of malicious activity.
Organizations use SIEM to protect their most sensitive data and to establish
proof that they are doing so, which allows them to meet compliance
requirements. While SIEM technology has been around for more than a decade,
it has become a critical component of a comprehensive security strategy in
today's threat environment.
SLI
-2 -
The City issued an RFP on June 14, 2019 to select a competent Proponent who
has sufficient experience supplying, installing, training and supporting industry
leading SIEM solutions. The solution could be either on -premise solutions, cloud
managed services and/or other hosted solutions, or a combination thereof. The
RFP also requested submissions for SIEM management and/or monitoring
services. Closing on July 18, 2019 with ten (10) responses received, City staff
from Materials Management lead an evaluation team through a process to select
a solution based on technical and financial criteria.
Through the processs, it became evident that Software as a Solution (SaaS) or a
hosted solution with 24/7/365 monitoring would provide the best value to the
City over an on -premise solution. Based on the evaluation results, Bulletproof
Solutions ULC was selected as the successful Proponent. Bulletproof will be
responsible for supplying, installing, training and supporting an industry leading
SaaS SIEM and monitoring service through their Security Operations Center
(SOC). The total cost over the three-year contract is $358,200 plus HST. Funds
have been allocated into the draft 2020 general fund budget for a SIEM solution.
REPORT
Cyber attacks on municipal governments are on the rise. With thousands of
attacks launched daily around the world, it is not a matter of "if", but "when" an
organization will experience a cyber attack. Local governments are attractive
targets for cyber attacks given they house private data (on -premise servers),
cybersecurity is not a top priority, attacks have been successful, and are public -
facing. The cost of successful cyber attacks includes interruptions in essential
service delivery, loss of data or records, loss of productivity, cost recovery at the
expense of taxpayers, inability to collect revenue, and erosion of trust. There
have been numerous examples of successful cyber attacks on municipal
government, many of them making headlines in national media outlets.
Council was presented with a number of strategic activities in January 2019 that
were to be undertaken to enhance cybersecurity. One of the priorities was to
invest in a Security Information and Events Management (SIEM) system. This
action was strongly recommended as a first step from our partners at the
Canadian Institute for Cybersecurity (CIC) to improve the City's ability to detect
and respond to cyber threats.
Security Information and Events Management (SIEM)
A SIEM provides an organization's Information Technology administrators with
network security intelligence and real-time monitoring of network devices,
systems, and applications. The SIEM monitors system event logs produced by
the various network components to generate alerts to the organization to flag
security issues and track incidents back to an original security event.
OR
-3 -
Using a SIEM, the City's Information Technology administrators can better
mitigate sophisticated cyber attacks and data breaches, monitor user activity,
and meet regulatory compliance requirements, such as Payment Card Industry
Data Security Standard (PCI DSS).
The City's investment in a SIEM will allow for faster reaction to security events,
thereby reducing downtime of services, avoid reputational damage caused by
security breaches, and costs associated with disclosure and remediation of cyber
attacks. Maximizing the benefits of a SIEM requires constant monitoring and
response plans to potential cyber threats. Based on the type of solution
implemented, a SIEM can reduce information security related costs through
automatic report generation for security compliance and operational efficiency.
The City issued a Request for Proposals for a SIEM solution and options for
monitoring. Respondents were invited to propose on -premise solutions, cloud
managed services and/or other hosted solutions, or combination of. The RFP
also requested proposals for monitoring options including 24/7/365 monitoring,
management and incident response, 24/7/365 monitoring only, and after
business hours monitoring only.
RFP Evaluation and Selection Process
The RFP was issued on June 14, 2019 and closed on July 18, 2019 with 10
responses. An evaluation team that was comprised of members of the City's
Information Technology Team and the City's main technical contact at the CIC
with expertise in cybersecurity and SIEMs. The team evaluated the proposals
based on the following;
a. Provision, installation, training, supporting of SIEM
b. Management and monitoring of SIEM
Once technical scores were tallied for the service offering outlined in the RFP,
financials were opened and factored in. It was obvious to the team that pricing
for an 'on -premise' solution was going to be significantly higher in price than a
'hosted' solution or a Software as a Service (SaaS) model; therefore, the decision
was made to move towards a SaaS solution, which offered the City better value.
The team then short listed to the top five (5) proponents that had the highest
technical scores. All top five (5) proponents had an option for a hosted solution.
Interviews were held with each of the five (5) proponents, which included a brief
demo of their proposed SaaS solution. They were also required to answer a list
of questions. Considering the interviews and the answers provided to the
questions posed by the City's evaluation team, the evaluators then
modified/rescored their technical evaluations based on the knowledge and
information gathered.
The team made a decision to further short list to the top three (3) proponents
that had the highest technical scores. Each of the top three (3) proponents was
-4 -
asked to provide pricing based on 2,000 events per second (EPS) for SaaS and
24/7/365 monitoring and support to ensure consistency in evaluating the
proposals. Once pricing was received, it was incorporated into the evaluation
score in order to make a recommendation to Common Council.
Successful Proponent
Bulletproof Solutions ULC (Bulletproof) is based in Atlantic Canada and provides
a wide range of IT professional services, spanning security services, managed IT
services, solutions delivery, and learning. Bulletproof has extensive experience
in deploying SIEM solutions and providing security monitoring through their
Security Operations Center (SOC). This includes experience in the public sector.
Bulletproof will be responsible for supplying, installing, training, and supporting
an industry leading SaaS SIEM. SaaS is a service delivery model whereby
software is accessed on a subscription basis and hosted by the provider as a
service rather than purchased and installed on an organization's own IT
infrastructure.
Benefits to the City in a SaaS model include: lower upfront costs; lower operating
costs, as upgrades and support are included in the single subscription cost; no
capital costs for new hardware or hardware replacement; scalability to quickly
meet additional requirements; redundancy to minimize downtime of the
solution; innovation in providing a continuously improved service; extensibility
to easily add additional capabilities or functionality; no additional staff required,
as resources required to deploy and maintain the software and hardware are
managed by the service provider.
Bulletproof will also provide monitoring on a 24/7/365 basis through their SOC.
This level of monitoring allows detection and containment of threats to be
completed in a timely manner to reduce the risk of the threat spreading across
the City's network and compromising additional systems. The City does not have
the capacity to manage and monitor the SIEM, as this would require three to
four additional staff members with the appropriate technical skills. External
monitoring also mitigates staffing risks due to vacations, illness, and other
staffing challenges such as 24/7/365 availability and overtime costs. The City's IT
team will work with the Bulletproof SOC for any containment, recovery, and
implementation of recommended improvement measures to enhancesecurity.
STRATEGIC ALIGNMENT
The implementation of a SIEM solution supports Council's priority of being
fiscally responsible. Continuous improvement of the City's information systems
and security provides safeguards for the City's financial data and personal
information.
SERVICE AND FINANCIAL OUTCOMES
Otl
-5 -
The cost proposed by Bulletproof for the SaaS SIEM solution and 24/7/365
monitoring through their SOC is $9,950 plus HST per month. All costs associated
with implementation and training are included as part of the monthly cost. The
total cost over the three-year contract is $358,200 plus HST. Funds have been
allocated into the draft 2020 general fund budget for the recommended SIEM
solution.
The award of the contract would be pending the approval of the 2020 general
fund operating budget. The need for enhanced cybersecurity has become
paramount with the increasing number of potential successful cyber attacks. A
successful attack has the ability to interrupt service delivery, result in financial
losses, enable theft of information, and adversely affect the reputation of the
City. Current cybersecurity controls and processes employed by the City have
been adequate in detecting the majority of attacks; however, there remains
limited capacity to mitigate or prevent a major attack without a SIEM and the
monitoring benefit of a SOC.
The SaaS solution with constant monitoring provides better security value to the
City than an on -premise solution. Depending on the SIEM selected, total
investment of an on -premise solution for software, hardware installation,
training, and support can range between $180,000 to $200,000 plus HST in
capital costs. Monitoring costs can also range widely depending on the service
provided; however, in all cases it is more cost-effective to secure external
services given the additional staffing requirements with appropriate expertise
required to leverage the benefits of a SIEM.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City's Materials Management team managed the procurement process.
Input was provided from the purchasing lead and incorporated into the report.
Materials Management has reviewed the report and is supportive of the
recommendation.
The City's Finance team has reviewed the requirements for a SIEM and the value
of recommending a SaaS solution. The Finance team is supportive of the
recommendation.
The City's Legal team has reviewed the recommendation and Agreement. The
Legal team is supportive of the recommendation.
ATTACHMENTS
AGREEMENT 2019-080601P: Security Information and Event Management
(SIEM)
01:3
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M��p}p}.wV�mYff� W MMM
AGREEMENT
2019-080601P
Security Information and Event Management
(SIEM)
Saint John, NB
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AGREEMENT
This Agreement made in duplicate copies this day of , 2019.
BETWEEN: THE CITY OF SAINT JOHN, having its City
Hall at 15 Market Square, Saint John, New
Brunswick, a body corporate by Royal Charter,
confirmed and amended by Acts of the
Legislative Assembly of the Province of New
Brunswick, hereinafter called the "City"
OF THE FIRST PART
And
[Name of Organization], a [type of
organization], having offices located at
[address], in the City of [City] and the
Province of [Province], hereinafter referred to
as the "Consultant"
OF THE SECOND PART
WHEREAS the City issued Request for Proposal [2019-080601P] for [Security Information
and Event Management (SIEM)] (the "Request for Proposal"); and
AND WHEREAS the Consultant submitted a technical proposal and a financial proposal,
both dated [Date] in response to the Request for Proposal (collectively, the "Proposal"); and
AND WHEREAS the Request for Proposal and the Proposal are attached hereto as Schedules
"A" and "B" respectively and form part hereof,
AND WHEREAS the financial proposal which forms part of the Proposal, is attached hereto
as Schedule "C"; and
AND WHEREAS the Common Council at its meeting held on [Date] resolved that:
"[Resolutionj."
NOW THEREFORE THIS AGREEMENT WITNESSETH, that in consideration of the
mutual covenants and agreements herein and subject to the terms and conditions set out in the
Request for Proposal and the Proposal, the parties for themselves, their successors and
permitted assigns respectively, mutually agree as follows:
1. The Consultant shall perform the services and carry out the terms and conditions set out in
the Request for Proposal and the Proposal.
RFP 2019-080601P —The City of Saint John
SECURITY INFORMATION AND EVENT MANAGEMENT
`O
Page 2 of 6
2. The City shall pay the Consultant, in return for the services performed, fees as outlined in
the financial proposal which forms part of the Proposal, plus HST.
Term
3. Any resulting contract from this RFP for hardware, software, maintenance, support and
monitoring services is expected to be valid for three (3) years. The City with the
Consultant's mutual agreement may choose to purchase maintenance support for up to
two (2) additional two (2) year periods.
Termination
4. The City may immediately terminate this Agreement upon giving notice to the
Consultant where:
a. The Consultant makes an assignment for the benefit of its creditors, is
declared bankrupt or commits an act of bankruptcy, becomes insolvent, makes
a proposal or otherwise takes advantage of provisions for relief under the
Bankruptcy and Insolvency Act (Canada) or similar legislation in any
jurisdiction, or any other type of insolvency proceedings being commenced by
or against the Consultant under the Bankruptcy and Insolvency Act (Canada) or
similar legislation;
b. The Consultant breaches any of the terms or conditions of the within
Agreement;
c. In the City's reasonable opinion, the Consultant, prior to or after executing this
Agreement, makes a material misrepresentation or omission or provides
materially inaccurate information to the City;
d. The Consultant undergoes a change of control which, in the reasonable opinion
of the City, adversely affects the Consultant's ability to satisfy some or all of
its obligation under the within Agreement;
e. The Consultant subcontracts for the provision of part or all of the services
without first obtaining the written approval of the City.
The above rights of termination are in addition to all other rights of termination available at
law, or events of termination by operation of law.
Performance
5. Both parties agree to do everything necessary to ensure that the terms of this
Agreement take effect.
Non -Performance
6. The failure on the part of either party to exercise or enforce any right conferred upon it
under this Agreement shall not be deemed to be a waiver of any such right or operate
to bar the exercise or enforcement thereof at any time or times thereafter.
RFP 2019-080601P —The City of Saint John Page 3 of 6
SECURITY INFORMATION AND EVENT MANAGEMENT
102
Indemnification
7. The Consultant hereby agrees to indemnify and hold harmless the Indemnified Parties
from and against any and all liability, loss, costs, damages and expenses (including
legal, expert and consultant fees), causes of action, actions, claims, demands, lawsuits
or other proceedings, (collectively "Claims"), by whomever made, sustained, brought
or prosecuted, for third party bodily injury (including death), personal injury and
damage to real or tangible personal property, in any way based upon, occasioned by or
attributable to anything done or omitted to be done by the Consultant, its
subcontractors or their respective directors, officers, agents, or employees in the
course of performance of the Consultant's obligations under, or otherwise in
connection with, this Agreement. The obligations contained in this paragraph shall
survive the termination or expiry of this Agreement.
Remedies
8. Upon default by either party under any terms of this Agreement, and at any time after
the default, either party shall have all rights and remedies provided by law and by this
Agreement.
9. No delay or omission by either party in exercising any right or remedy shall operate as
a waiver of them or of any other right or remedy, and no single or partial exercise of a
right or remedy shall preclude any other or further exercise of them or the exercise of
any other right or remedy. Furthermore, either party may remedy any default by the
other party in any reasonable manner without waiving the default remedied and
without waiving any other prior or subsequent default by the defaulting party. All
rights and remedies of each party granted or recognized in this Agreement are
cumulative and may be exercised at any time and from time to time independently or
in combination.
Mediation
10. All disputes arising out or in connection with this Agreement, or in respect of any
legal relationship associated with or derived from this Agreement, shall be mediated
pursuant to the National Mediation Rules of the ADR Institute of Canada, Inc.
Despite this Agreement to mediate, a party may apply to a court of competent
jurisdiction or other competent authority for interim measures of protection at any
time. The place of mediation shall be the City of Saint John and Province of New
Brunswick.
Force Majeure
11. It is agreed between the parties that neither party shall be held responsible for damages
caused by delay or failure to perform his undertakings under the terms of the
Agreement when the delay or failure is due to fires, strikes, floods, acts of God, lawful
acts of public authorities, or delays or defaults caused by common carriers, which
cannot be reasonably foreseen or provided against.
No Assignment
12. This Agreement is not assignable. Any attempt to assign any of the rights, duties or
obligations of this Agreement is void.
RFP 2019-080601P —The City of Saint John Page 4 of 6
SECURITY INFORMATION AND EVENT MANAGEMENT
103
Time
13. This Agreement shall not be enforced, or bind any of the parties, until executed by all
the parties named in it.
Notices
14. Any notice under this Agreement shall be sufficiently given by personal delivery or by
registered letter, postage prepaid, mailed in a Canadian post office and prepaid courier,
addressed, in the case of notice to the City of Saint John, to the Common Clerk, 15
Market Square, P. O. Box 1971, Saint John, New Brunswick, E2L 4L1 and in the case
of notice to the Consultant to [Address], or to any other address as may be designated
in writing by the parties, and the date of receipt of any notice by mailing shall be
deemed conclusively to be 5 days after the mailing.
Amendments
15. No change or modification of this Agreement shall be valid unless it is in writing and
signed by each party.
Acknowledgment of Terms and of Entirety
16. It is agreed that this written instrument embodies the entire agreement of the parties
with regard to the matters dealt within it, and that no understandings or agreements,
verbal or otherwise, exist between the parties except as expressly set out in this
instrument.
Further Documents
17. The parties agree that each of them shall, upon reasonable request of the other, do or
cause to be done all further lawful acts, deeds and assurances whatever for the better
performance of the terms and conditions of this Agreement.
Validity and Interpretation
18. Descriptive headings are inserted solely for convenience of reference, do not form part
of this Agreement, and are not to be used as an aid in the interpretation of this
Agreement.
19. It is intended that all provisions of this Agreement shall be fully binding and effective
between the parties, but in the event that any particular provision or provisions or part
of one is found to be void, voidable or unenforceable for any reason whatsoever, then
the particular provision or provisions or part of the provision shall be deemed severed
from the remainder of this Agreement and all other provisions shall remain in full
force.
Governing Law
20. This Agreement shall be governed by and construed in accordance with the laws of the
Province of New Brunswick.
RFP 2019-080601P —The City of Saint John Page 5 of 6
SECURITY INFORMATION AND EVENT MANAGEMENT
104
Successors, Assigns
21. This Agreement shall enure to the benefit of and be binding on the respective
successors and permitted assigns of each of the parties.
Independent Legal Advice
22. The parties each acknowledge having obtained their own independent legal advice
with respect to the terms of this Agreement prior to its execution.
Acknowledgment of Receipt of Copy
23. Each party acknowledges receipt of a true copy of this Agreement.
Defined Terms
24. When used in this Agreement, the following word or expression has the following
meaning:
"Indemnified Parties" means the City, its officers, directors, employees or agents.
IN WITNESS WHEREOF the parties have affixed their respective corporate seals,
attested by the hands of their respective officers duly authorized in that behalf on the day
aforementioned.
SIGNED, SEALED & ) THE CITY OF SAINT JOHN
DELIVERED ) per
In the presence of: )
Mayor
RFP 2019-080601P —The City of Saint John
SECURITY INFORMATION AND EVENT MANAGEMENT
Assistant Common Clerk
Common Council Resolution:
[Organization]
Per:
[Title]
`Wee
Page 6 of 6
COUNCIL REPORT
M&C No.
M&C 2019-296
Report Date
November 13, 2019
Meeting Date
November 18, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Saint John Hotel Association Sponsorship of Ice Sport Non -Resident
User Fees 2019-2020
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Tim O'Reilly
Michael Hugenholtz
John Collin
RECOMMENDATIONS
Your City Manager recommends Common Council:
1. Accept a $60,000.00 sponsorship from the Saint John Hotel Association in
lieu of charging the previously approved $200.00 + HST Non -Resident
User Fee for ice sport use of City arenas for the 2019-2020 season.
2. With endorsement of #1, direct your City Manager to immediately cancel
roll-out of the Recreation Card Program for ice sports at City arenas for
the 2019-2020 season and issue refunds to any non-residents that have
paid the $200.00 + HST Non -Resident User Fee.
3. Endorse that recommendations in this M&C 2019-296 generally
supersede all previous resolutions related to Non -Resident User Fees and
the Recreation Card Program for ice sport use of City arenas for the 2019-
2020 season.
4. Reaffirm that Council's direction on non-resident user fees for the 2020-
2021 season remains in effect unless an alternative solution is presented
for review and approval by Common Council.
5. Ask the Mayor to officially thank the Hotel Association for their
sponsorship.
REPORT
The Saint John Hotel Association has offered a $60,000.00 sponsorship in lieu of
the City rolling out the Recreation Card Program for ice sport use of City arenas
for the 2019-2020 season. The sponsorship, combined with program costs spent
to date, is generating net revenues to the City similar to what would otherwise
`191-1
have reasonably been expected to be generated through full rollout of the
program.
City staff is of the opinion that the Hotel Association's offer would permit the
region more time to agree on a collaborative regional cost sharing model for
arenas. This Common Council has consistently agreed that a regional cost-
sharing model is the fairest and most sustainable long term solution and has
offered the region a specific set of principles as the foundation for agreement of
that model.
City staff is also of the opinion that the association's offer, in isolation, is not a
long-term sustainable solution. Status quo, where City taxpayer subsidization of
non-resident use of recreation exists is not viable. The City's current difficult
financial state, where City services to City residents are at risk, only amplifies this
inequity. Whether a regional outcome can be endorsed, or a City of Saint John
solution is developed, an approach where regional contributions to recreation
services and facilities that more closely matches regional use of that
infrastructure is a fairer and more sustainable approach than the status quo.
With continued support from Common Council, City staff intends to continue its
efforts to contribute to a regional cost sharing approach in a collaborative way
while continuing to have backup plans for equitable cost recovery if a regional
model proves impossible to achieve.
PREVIOUS RESOLUTION
On June 17, 2019 Common Council endorsed the "Recreation Card & Non -
Resident User Fee" along with a $200.00 + HST, and a $350.00 + HST non-
resident user fee, for the 2019-2020 and 2020-2021 seasons, respectively.
FINANCIAL AND SERVICE IMPLICATIONS
The amount offered by the Saint John Hotel Association is equivalent to the
anticipated net proceeds of the Recreation Card Program and as such there will
be no negative financial implications.
ATTACHMENTS
N/A
`[9tl
Received Date October 29, 2019
Meeting Date November 04, 2019
Open or Closed Open Session
His Worship Don Darling and
Members of Common Council
Your Worship and Councillors:
Subject: Flyer Delivery By -Law
Background:
Whereby, the City of Saint John and its residents consistently face an onslaught of unsolicited flyers.
Whereby, these flyers pollute our driveways, sidewalks, and streets; while impeding snow removal and
sidewalk cleaning.
Whereby, our stance on climate change demands we take action on reducing our waste.
Motion:
That Council direct staff to draft a "Flyer Delivery" by-law, with specific focus to an "opt -in" model for
residents.
Respectfully Submitted,
(Received via email)
David Hickey
Councillor, Ward 3
City of Saint John
(P4
SAINT JOHN
---- — I
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
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COUNCIL REPORT
M&C No.
2019-301
Report Date
November 12, 2019
Meeting Date
November 18, 2019
Service Area
Corporate Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Sustainability: Process for Approving Initiatives
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
I Commissioner/Dept. Head
City Manager
Stephanie Rackley -Roach
I Neil Jacobsen
John Collin
RECOMMENDATION
It is recommended that Common Council approve the two-step process designed
to approve the sustainability initiatives that will be implemented to address the
entirety of the deficit in 2021 and 2022.
EXECUTIVE SUMMARY
In early October 2019, Council was presented over sixty (60) ideas that the staff
would explore in order to address the entirety of the deficit in 2021 and 2022. In
total, there were approximately $15 million of ideas to address a forecasted
requirement of $11 million of adjustments. As the staff continues to develop
these ideas, it is time for Council to provide their initial input in order to help
triage the possibilities.
Addressing the entirety of the deficit in 2021 and 2022 requires a holistic
approach to decision-making. Rather than making one-off decisions on whether
to implement a particular sustainability initiative, a two-step approach is
proposed to guide Council's decision-making.
The first step involves Council evaluating business cases to determine if a
sustainability idea should be considered as an option to address the deficit.
Those ideas that Council approves as options will be placed in a 'sustainability
hopper'. In other words, a list of sustainably options that will continue to be
considered for implementation must be developed. For those ideas that Council
does not approve as sustainability options, they will be taken off the list and no
further work will be completed.
`§1.1
-2 -
As part of the second step of decision-making, City staff will bring forward a
recommendation on which sustainability initiatives from the hopper to
implement and reflect revenue or savings in the 2020 budget the week of
December 2, 2019. A recommendation on the remaining initiatives in the
sustainability hopper that should be implemented to address the entirety of the
deficit will be brought forward for Council's consideration in late March 2020.
The proposed approach provides Council with another opportunity to review
sustainability ideas and provide direction to City staff on what options should be
considered. It also allows staff to more efficiently focus resources and effort on
only those sustainability initiatives that will be implemented to address the
deficit.
REPORT
At the October 7, 2019 meeting of Common Council, a three -pronged approach
was presented to address the City's structural deficit: effectiveness and
efficiency reviews; sustainability initiatives; and transformational reforms. As
part of the overview on the sustainability initiatives, over sixty (60) ideas were
presented that will either generate revenue or reduce operating costs. Council
was advised that once those ideas were refined, City staff would return to
Council for deliberation and decision on those ideas that will be implemented to
address the entirety of the deficit in 2021 and 2022.
In order to support Council in its decision-making on which initiatives will form
part of the solution to address the deficit in the short term, City staff has
developed a process that will allow Council to consider the initiatives as a
collective, rather than as one-off projects. The proposed two-step approach also
supports Council in making a decision as to whether savings or revenue targeted
in specific initiatives is incorporated into the 2020 or 2021 operating budget.
The proposed process essentially provides Council with another opportunity to
review sustainability ideas before making a decision as to what initiatives will be
implemented. In providing Council with more detail on each of the sustainability
ideas, this opportunity allows Council to provide direction to City staff on what
ideas they would continue to consider supporting as part of the solution to
addressing the deficit in 2021 and 2022. This includes direction on what ideas
should not be considered. The proposed approach allows City staff to focus
efforts on sustainability initiatives that will eventually form part of the solution
to the short-term deficit.
Proposed Process
The first step of decision-making involves the presentation of a business case on
each of the initiatives. Business cases will be presented as part of Council's
standing agenda item 12.2 Sustainability Initiatives. The business case will
-3 -
include the appropriate amount of detail in terms of a description of the
initiative, the steps required for implementation, the anticipated service and
financial impacts, and critical requirements to successfully achieve desired
results (i.e., either revenue generation or cost reductions). Based on the
information outlined in the business case, Council will decide whether the
initiative is an option that should be considered to address the 2021 and 2022
deficit. Initiatives that Council approves as options will be placed in a
'sustainability hopper'. In other words, a list of approved sustainability options
that will continue to be considered to address the deficit will be developed. The
ideas that are not approved as options will no longer be considered and City staff
will no longer work towards implementation on the initiative.
As part of the second step of decision-making, the Sustainability Team in
consultation with the Senior Leadership Team will develop a recommendation on
which initiatives from the sustainability hopper should be undertaken to address
the deficit. The recommendation of which initiatives to proceed with will
consider feedback from Council and the evaluation of selection criteria for each
initiative.
The recommendation for initiatives to be implemented and incorporated into
the 2020 general fund operating budget will be brought forward to Council
during the week of December 2, 2019. This will allow for time to make
adjustments for Council's approval of the 2020 budget.
City staff will continue to present business cases for sustainability ideas in the
new year. The recommendation for initiatives from the hopper to be
implemented and incorporated into the 2021 general fund operating budget will
be brought forward to Council in late March 2020. Although timelines are
ambitious, approval of sustainability initiatives by the end of March 2020 will
provide the time necessary to fully evaluate, implement, and incorporate
revenue or a savings into the 2021 operating budget.
A number of the sustainability ideas presented to Council on October 7, 2019 are
continuous improvement initiatives that focus on improving the cost-
effectiveness of service while not impacting service levels or the public. These
initiatives will be presented as part of Council's standing agenda item 12.1
Continuous Improvement. A recommendation on incorporating the revenue or
savings into the 2020 or 2021 budget will be brought forward as part of the
recommendations for Council's consideration the week of December 2, 2019 or
late March 2020. Figure 1 illustrates the proposed process.
`§F:3
-4—
STEP 1 STEP 2
Develop Yes Sustainability Prioritize for
Business Case Hopper 2020/2021
w
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No I
I No—WeEk VV
of Dec 2 V �II , Yes Implement
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la"� NNN Iluu
No
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Figure 1: Proposed process for approving sustainability initiatives for implementation
STRATEGIC ALIGNMENT
The proposed process for approving the implementation of sustainability
initiatives provides for a balanced approach to decision-making as it relates to
the impact on each of Council's Priorities: Growth & Prosperity; Vibrant, Safe
City; Valued Service Delivery; and Fiscally Responsible.
SERVICE AND FINANCIAL OUTCOMES
The objective of the proposed process is to guide Council through a decision-
making process that addresses the projected deficit in 2021 and 2022. Based on
feedback from Council and the re-evaluation of the projected deficit, City staff
will recommend initiatives that achieve combined revenue and cost savings
targets to address the deficit while making efforts to minimize the impact on
Council's Priorities.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The Senior Leadership Team has been made aware of the proposed process and
has provided feedback.
ATTACHMENTS
N/A
flfl�7
COUNCIL REPORT
M&C No.
2019-293
Report Date
November 14, 2019
Meeting Date
November 18, 2019
Service Area
Corporate Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Sustaining Saint John — A Three -Part Plan (Status Update)
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Neil Jacobsen
John Collin
John Collin
RECOMMENDATION
Receive for information.
EXECUTIVE SUMMARY
The purpose of this Report is to provide Saint John Common Council, Members of the
Legislative Assembly from the Greater Saint John Region, and the general public with a joint
update and progress report regarding the Action Items and commitments contained within
Sustaining Saint John —A Three -Part Plan.
The progress report will also be shared with the Premier's Office and all four political parties
currently represented in the Provincial Legislature in order to ensure broad situational
awareness.
PREVIOUS RESOLUTIONS
Common Council —August 19, 2019
Moved by Councillor Sullivan, seconded by Councillor Strowbridge and passed by majority vote:
RESOLVED that:
1) Common Council endorse the report while continuing to voice its reservations over:
• Failure to solve the financial gap for the years of 2021 and 2022
• Lengthy timelines and uncertainty for the significant reforms
`we]
-2-
• Lack of detailed implementation plans for the significant reforms
2) Common Council formally re -consider in March 2020, in Open Session, their
endorsement of this Plan based on the progress made. This date would be concurrent
with the Provincial commitment to re -assess in Part Three of the Plan, and also be
concurrent with the City's commitment to have all implementation plans for financial
restructuring approved.
3) City Staff, working through Finance Committee, continue with their efforts/plans to
address the entirety of the deficit for 2021 and 2022; respecting the motion passed by
Common Council on this issue.
4) Common Council request to the Province that detailed implementation plans be
produced for each of the 20 Action Items.
5) That the working committee established to produce this Plan remain extant and assist in
the coordination and implementation of the entire Plan.
6) City staff provide a report to Council every two months as a minimum (and more often if
deemed necessary) on the progress on the 20 Action Items, and on Parts Two and Three
of the Plan, through the creation of a Sustaining Saint John Report Card. Furthermore,
that this report card be provided to Saint John Common Council, Members of the
Legislative Assembly from the Greater Saint John Region, the Premier's Office, and all
four political parties currently represented in the Provincial Legislature in order to
ensure broad situational awareness.
7) Common Council create an ad-hoc three-member Committee of Council to be named at
a later date, to continue the communication with appropriate Provincial elected officials
regarding potential future amendments to the Plan.
MOTION CARRIED.
Common Council — September 9, 2019
Moved by Deputy Mayor McAlary, seconded by Councillor MacKenzie:
RESOLVED that the Mayor be directed through the Office of the Common Clerk, to formally
request to the Regional Caucus Chair and Government House Leader that there be three
meeting dates established, between the Greater Saint John Progressive Conservative caucus,
the Premier and Common Council before the revaluation of the Sustaining Saint John plan, in
March 2020.
MOTION CARRIED.
121
-3 -
BACKGROUND - MUNICIPAL SUSTAINABILITY WORKING GROUP
A final version of the Sustaining Saint John —A Three -Part Plan was approved by the Provincial
Cabinet and Saint John Common Council on August 19, 2019, and released to the community
and general public on the same day.
The plan includes 20 distinct sustainability action items. Some of the action items are specific to
Saint John, while others have regional and/or province wide applications.
Part Two of the plan involves the creation of a regional management task force representing all
the local governments in the Greater Saint John region, as well as representatives from the local
service districts. The task force is mandated to identify and agree on arrangements for shared
service delivery and shared use of services within the region; and to achieve associated
equitable cost-sharing.
Part Three of the plan outlines a commitment from the provincial government to reassess the
city's financial status after it has reviewed the status of the 20 actions and the
recommendations of the regional management task force in March 2020.
The August 191h Council Resolution includes a commitment City staff to "provide a report to
Council every two months as a minimum (and more often if deemed necessary) on the progress
on the 20 Action Items, and on Parts Two and Three of the Plan, through the creation of a
Sustaining Saint John Report Card. Furthermore, that this report card be provided to Saint John
Common Council, Members of the Legislative Assembly from the Greater Saint John Region, the
Premier's Office, and all four political parties currently represented in the Provincial Legislature
in order to ensure broad situational awareness."
Attachment A provides the first status update or Report Card with respect to Sustaining Saint
John —A Three -Part Plan.
The final version of the Sustaining Saint John -A Three -Part Plan, as approved by Saint John
Common Council and the Province of New Brunswick, is available at:
https://www2.gnb.ca/content/dam/gnb/Departments/eco-bce/pdf/SustainingSaintJohn-August2019.pdf
STRATEGIC ALIGNMENT
Sustaining Saint John -A Three -Part Plan and its various actionable commitments are fully
aligned with Council's Priority 'Economic Health', as well as with the City's Service Principles of
"Sustainability" and "Partnerships".
00A
M
SERVICE AND FINANCIAL OUTCOMES
The actions and outcomes embedded within Sustaining Saint John —A Three Part Plan are
critical to the long-term sustainability and financial viability of the City of Saint John, as well as
other municipalities in New Brunswick.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Implementation of the Sustaining Saint John —A Three Part Plan is being co -led by the City
Manager's Office (representing the City of Saint John) and the Department of Environment and
Local Government (representing the Province of New Brunswick).
The City Manager's Office continues to draw on support from the Commissioner of Finance,
Finance and Administrative Services, Corporate Planning and Continuous Improvement, and all
service areas (as required).
ATTACHMENTS
Attachment A: Sustaining Saint John —A Three Part Plan (Status Update).
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COUNCIL REPORT
M&C No.
2019-310
Report Date
November 12, 2019
Meeting Date
November 18, 2019
Service Area
Public Safety Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Fire Service Fee Recovery — Sustainability Initiative
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Josh Hennessy/ Dan
Leblanc
Kevin Clifford
John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed Fire Service Fee Recovery Sustainability Initiative as an
option to be considered in addressing the entirety of the deficit in 2021 and
2022.
EXECUTIVE SUMMARY
The City of Saint John Fire Department currently does not recover costs for work
allocated towards False Alarm Activations, invalid Fire Alarm and Suppression
Systems, Stand -By Services, Non -Fire Service Requests and Non -Emergency
Rapid Entry System Access.
Given the City's sustainability challenges, this report proposes that the City
recover costs for the staff work related to the above activity. This cost recovery
solution would result in the following approximate savings (before HST and HST
rebate):
• 2020 season: $17,650.00
• 2021 season: $45,600.00
`PU
PREVIOUS RESOLUTIONS
On October 7, 2019, it was resolved by Council to receive and file M&C 2019-
249: 'Sustainability: Addressing the Deficit 2021-2022'.
REPORT
The City of Saint John Fire Department currently does not recover costs for work
allocated towards False Alarm Activations, invalid Fire Alarm and Suppression
Systems, Stand -By Services, Non -Fire Service Requests and Non -Emergency
Rapid Entry System Access.
No recovery efforts are currently in place to address the above activity. The
Saint John Fire Department believes that it is equitable to begin recovering costs
as this will increase code compliance, decrease false alarms activity, and match
other municipal rates for requests for service.
Approach to implementation
Implementation of cost recovery will be based on updates to two existing by-
laws and the creation of one.
Tentative dates for By -Laws to Council are as follows.
Fee for Service By -low - to be brought before Council May 2020
Fire Prevention By -low - to be brought before Council December 2020
Fire Service By -low - to be brought before Council September 2021
Please note that both Fee for Service By-law and Fire Service By-law will require
community stakeholder engagement and consultation with varying stakeholder
groups.
The Fire Prevention By-law will involve collaboration from the Office of the Fire
Marshall (Province).
STRATEGIC ALIGNMENT
The revenue realized by recovering costs for Fire service activity for False Alarm
Activations, invalid Fire Alarm and Suppression Systems, Stand -By Services, Non -
Fire Service Requests and Non -Emergency Rapid Entry System Access supports
Council's Priority to be Fiscally Responsible by contributing to the overall
Sustainability effort.
HOW
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on
Council's Priorities and ability to implement to address the deficit of 2021 and
2022. In addition to Feasibility, criteria include Growth & Prosperity; Vibrant,
Safe City; Valued Service Delivery; and Fiscally Responsible (see Initiative Criteria
Evaluation Appendix).
There will be no reduction to service for the public. This initiative supports
Council's Priorities of a Vibrant, Safe City and Valued Service Delivery.
This item is feasible. Provincial support through the Office of the Fire Marshall
would enhance the timeliness for fee recovery.
There will be minimal investment requirements associated with implementation.
Costs will relate to the education and enforcement of Fire Department staff. All
costs will be covered through the annual operating budget.
Implementing the Fire Service Fee Recovery Sustainability Initiative could result
in savings to the general operating budget of approximately $17,650 in 2020 and
$45,600 in 2021.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input for this report was provided by the staff of Saint John Fire Department and
the Sustainability Initiatives Team.
ATTACHMENTS
N/A.
liW-13
Appendix: Initiative Criteria Evaluation
100
90
80
70
60
0
® •'40
30
20
10
0
Impact
0 .A. G 3 4 5
If iinanciiall " 'arget
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
Evaluation Notes on Fire Department Fee Recovery:
• Vibrant, Safe City — Potential minor impact on number reported emergencies due to perception
of billing
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of November 18, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
4
`M�1
COUNCIL REPORT
M&C No.
2019-302
Report Date
November 08, 2019
Meeting Date
November 18, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Passport to Parks — Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Brad Adams /
Amy McLennan
Michael Hugenholtz
John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed elimination of funding for the 'Passport to Parks' initiative
as an option to be considered in addressing the entirety of the deficit in 2021
and 2022.
EXECUTIVE SUMMARY
The City of Saint John's Parks and Recreation Department organizes free
'Passport to Parks' events at City -owned locations over the summer season.
These events include live music, water activities, games, day adventures, etc.,
and are available free of charge to the public.
Given the City's sustainability challenges, this report proposes the City no longer
fund the 'Passport to Parks' initiative. This would result in annual savings of
$35,000.00, which is a combination of the total in wages paid to sessional staff
hired to put on the events and the PlaySJ Recreation Programming Grant
included in the general operating budget.
Should Council decide at a future date to proceed with elimination of funding for
this initiative, 'Passport to Parks' would end; however, if any interested parties
come forward with a private sponsorship model that covers all costs usually
provided with public funds and staffing resources are sufficient, the initiative
could continue. Pending available capacity, assistance would be provided by the
City's Parks and Recreation team to assist interested parties if there was will to
`[till
-2 -
assume full responsibility for the initiative under a "Community Development"
model.
A "Community Development" model to support community partners to assume
responsibility for delivery of recreation services is one of a few focus areas
highlighted throughout PlaySJ. A change in model from direct City delivery of
Parks and Recreation services is already being actioned in many ways. In
addition to aligning with the financial goals of this Sustainability Item, a
community partner assuming responsibility would help build community leaders
and pride.
PREVIOUS RESOLUTIONS
On October 7, 2019, it was resolved by Council to receive and file M&C 2019-
249: 'Sustainability: Addressing the Deficit 2021-2022'.
REPORT
The City of Saint John's 'Passport to Parks' initiative was established in 2014 with
the purpose of showcasing the assets and natural resources of our regional and
district parks, while promoting inclusion and healthy, active living. Events are
held over the summer season and are available free of charge to the public.
The 2019 event locations and dates were as follows:
1. Rockwood Park—June 30; fpm-3pm
2. Station One Skate Plaza, 'Annual Mayor's Cup Skateboard Competition'
—July 1; 10am-fpm
3. Little River Reservoir—July 13; fpm-3pm
4. Dominion Park Beach, 'Summer Welcome Event'— July 20; fpm-3pm
Should the elimination of funding for the 'Passport to Parks' initiative be
approved by Council at a later date, the Parks and Recreation Department would
advise external stakeholders of the decision, including:
• Vendors and service providers
for past 'Passport to Parks'
events/programming
• Organizers of other events
previously supported by staff
• Businesses operating in parks in
which 'Passport to Parks'
events/programming
traditionally take place
The City of Saint John Communications Department would also be engaged to
assist in informing the public of the elimination of these events.
131
-3 -
STRATEGIC ALIGNMENT
The savings realized by the elimination of funding for the 'Passports to Parks'
initiative supports Council's Priority to be Fiscally Responsible by contributing to
the overall Sustainability effort.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on
Council's Priorities and ability to implement to address the deficit of 2021 and
2022. In addition to Feasibility, criteria include Growth & Prosperity; Vibrant,
Safe City; Valued Service Delivery; and Fiscally Responsible (see Initiative Criteria
Evaluation Appendix).
Recreation experiences that create of a sense of community pride support
Council's Priority of a Vibrant, Safe City. Elimination of 'Passport to Parks' will
result in a minor reduction in the availability of free recreational
programming/events at City parks.
The sessional staff traditionally hired to coordinate 'Passport to Parks' provide
backup support for the Playground Program and provide backfill when
permanent Recreation staff are on vacation. The absence of these sessional staff
will mean that in-kind support to events run by community groups or other
organizations and response to 'Green Machine' community clean-up events may
be impacted, as the workload will rest solely with permanent staff.
This item is 100% feasible, as it is based solely on a decision of Mayor and
Council and can be implemented to address the deficit within the timeframe.
There will be minimal investment requirements associated with implementation.
Costs will relate to any communications carried out to advise the public of the
change. All costs will be covered through the annual operating budget.
The following is a breakdown of costs associated with 'Passport to Parks' in
2019:
Special Events Coordinators (2 staff)
$20,000.00
PlaySJ — Recreation Programming Grant
$15,000.00
TOTAL SAVINGS
$35,000.00
Elimination of funding for the 'Passport to Parks' initiative would result in annual
savings to the general operating budget of $35,000.00.
`19%
-4 -
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input for this report was provided by the staff of the Parks and Recreation
Department.
ATTACHMENTS
N/A.
R9191
Appendix: Initiative Criteria Evaluation
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
,u nn
90
80
70
60
0
® •'40
30
20
10
0
0 1 G 3 4 5
If iinanciiall " 'airget
Evaluation Notes on Passport to Parks:
• Minor impact to a Vibrant, Safe City with minor reductions of free recreational
programming/events at city parks, in-kind support to events run by community groups or other
organizations, and support of 'Green Machine' community clean-up requests.
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of November 18, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
`Kz"I
COUNCIL REPORT
M&C No.
2019-303
Report Date
November 08, 2019
Meeting Date
November 18, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Lifeguards — Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Marc Doucet/
Amy McLennan
Michael Hugenholtz
John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed elimination of lifeguard services at the Fisher Lakes beach
location as an option to be considered in addressing the entirety of the deficit in
2021 and 2022.
EXECUTIVE SUMMARY
The City of Saint John currently funds lifeguard services seven days a week from
late June until Labour Day at four (4) locations: Dominion Park, Lily Lake, Fisher
Lakes, and Little River Reservoir beaches. The Canada Games Aquatic Centre
(CGAC) has provided these services for multiple contracts in the past, most
recently for the 2015 through 2019 seasons.
At the request of City staff, the CGAC also quoted contract renewal options for
the 2020, 2021, and 2022 seasons, which were presented to Mayor and Council
June 17, 2019 as follows:
• 2020 season: $170,111.52, plus HST
• 2021 season: $173,513.75, plus HST
• 2022 season: $176,984.00, plus HST
Given the City's sustainability challenges, this report proposes the City no longer
provide lifeguard services at the Fisher Lakes beach location, but maintain
funding for lifeguarding at the remaining three (3) locations.
`19191
-2 -
That reduction in locations would result in the following approximate savings
(before HST and HST rebate):
• 2020 season: $37,000.00
• 2021 season: $37,000.00
• 2022 season: $38,000.00
The Fisher Lakes beach location was chosen for elimination, because lifeguarding
services will continue to be offered at the nearby Lily Lake beach, a location
which has better support facilities in the adjacent building.
Should Council decide at a future date to proceed with this item, lifeguarding
services at the Fisher Lakes beach location would end; however, if any interested
parties come forward with a private sponsorship model that covers all costs
usually provided with public funds, lifeguarding services at that location could
continue.
PREVIOUS RESOLUTIONS
On May 21, 2019, Common Council unanimously adopted the following
resolution: That as recommended by the City Manager in the submitted report
M&C 2019-126: 2019 Lifeguard Service, Common Council authorize the Mayor
and Common Clerk execute the 2019 Lifeguard Services contract with the
Canada Games Aquatic Centre as attached to M&C 2019-126.
On June 17, 2019, Common Council received and filed M&C 2019-147, which was
an amendment of M&C 2019-126 to include contract renewals options for the
2020, 2021, and 2022 seasons.
On October 7, 2019, it was resolved by Council to receive and file M&C 2019-
249: 'Sustainability: Addressing the Deficit 2021-2022'.
REPORT
The City of Saint John currently funds lifeguard services seven days a week from
late June until Labour Day at four (4) locations: Dominion Park, Lily Lake, Fisher
Lakes, and Little River Reservoir beaches.
The Fisher Lakes location was chosen for elimination, because lifeguarding
services will continue to be offered at the Lily Lake beach location, which is also
in Rockwood Park and in close proximity to Fisher Lakes beach. The Lily Lake
beach location also has better support facilities in the adjacent building,
including changing rooms and washroom facilities.
The costs associated with the lifeguard services at the Fisher Lakes beach
location for the 2020, 2021, and 2022 seasons were provided by the CGAC.
Should the elimination of lifeguard services at the Fisher Lakes beach location be
`Ki.1
-3 -
approved by Council at a future date, the Parks and Recreation Department
would engage Materials Management to request a Lifeguard Services contract
for the upcoming season from the CGAC accordingly, which would be brought
forth to Mayor and Council for approval. The request would also be made to the
CGAC to include revised renewal options for the 2021 and 2022 seasons as part
of that contract, which reflect the removal of the Fisher Lakes beach location.
Prior to the upcoming beach season, the Parks and Recreation Department
would post signage at the Fisher Lakes beach location indicating it is no longer
guarded, remove any lifeguarding chairs/equipment from that location, and
engage the City of Saint John Communications Department to assist in informing
the public of the change. Messaging would encourage the public to swim at the
nearby Lily Lake beach location, where lifeguarding services would continue to
be offered.
STRATEGIC ALIGNMENT
The savings realized by reducing the number of lifeguarded beach locations
funded by the City supports Council's Priority to be Fiscally Responsible by
contributing to the overall Sustainability effort.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on
Council's Priorities and ability to implement to address the deficit of 2021 and
2022. In addition to Feasibility, criteria include Growth & Prosperity; Vibrant,
Safe City; Valued Service Delivery; and Fiscally Responsible (see Initiative Criteria
Evaluation Appendix).
There will be a reduction in the availability of guarded swimming locations for
the public. This has minor impacts in terms of Council's Priorities of a Vibrant,
Safe City and Valued Service Delivery.
This item is 100% feasible, as it is based solely on a decision of Mayor and
Council and can be implemented to address the deficit within the timeframe.
There will be minimal investment requirements associated with implementation.
Costs will relate to the production and installation of signage at the Fisher Lakes
beach location, as well as any communications carried out to advise the public of
the change. All costs will be covered through the annual operating budget.
The target has been validated, as the following breakdown of costs was provided
to the Parks and Recreation Department by the CGAC on October 18, 2019:
`19YA
-4-
*All costs above are before HST and HST rebate.
The elimination of lifeguard services at the Fisher Lakes beach location would
result in savings to the general operating budget of approximately $37,000.00 in
2020, $37,000.00 in 2021, and $38,000.00 in 2022 (before HST and HST rebate).
The current provider of lifeguard services for the City of Saint John is the CGAC,
the operations of which are funded in part by the City in accordance with the
Greater Saint John Regional Facilities Commission formula. This reduction in
lifeguarding revenue has the potential to negatively impact the overall CGAC
budget and increase the annual deficit that is funded through that formula.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input for this report was provided by the staff of the City's Parks and Recreation
Department.
The City's Risk Manager and the City Solicitor were consulted with regard to risk
management.
In addition, the Canada Games Aquatic Centre provided the breakdown of costs
for lifeguard services, which allowed for the savings by location to be
determined.
ATTACHMENTS
N/A.
`191:3
2020
2021
2022
Fisher Lakes Location Costs
$37,131.38
$37,874.01
$38,631.49
Lily Lake Location Costs
$37,131.38
$37,874.00
$38,631.43
Dominion Park Location Costs
$39,824.38
$40,620.87
$41,433.29
Little River Reservoir Location Costs
$39,824.38
$40,620.87
$41,433.29
General Fixed Costs
$16,200.00
$16,524.00
$16,854.50
TOTAL*
$170,111.52
$173,513.75
$176,984.00
*All costs above are before HST and HST rebate.
The elimination of lifeguard services at the Fisher Lakes beach location would
result in savings to the general operating budget of approximately $37,000.00 in
2020, $37,000.00 in 2021, and $38,000.00 in 2022 (before HST and HST rebate).
The current provider of lifeguard services for the City of Saint John is the CGAC,
the operations of which are funded in part by the City in accordance with the
Greater Saint John Regional Facilities Commission formula. This reduction in
lifeguarding revenue has the potential to negatively impact the overall CGAC
budget and increase the annual deficit that is funded through that formula.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input for this report was provided by the staff of the City's Parks and Recreation
Department.
The City's Risk Manager and the City Solicitor were consulted with regard to risk
management.
In addition, the Canada Games Aquatic Centre provided the breakdown of costs
for lifeguard services, which allowed for the savings by location to be
determined.
ATTACHMENTS
N/A.
`191:3
Appendix: Initiative Criteria Evaluation
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
:WU
90
80
70
60
0
® •'40
30
20
10
0
If iinanciiall " 'airget
Evaluation Notes on Lifeguards:
• Vibrant, Safe City — Minor reduction in the availability of guarded swimming locations for the
public; alternative location is in close proximity at Lily Lake.
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of November 18, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
COUNCIL REPORT
M&C No.
2019-304
Report Date
November 13, 2019
Meeting Date
November 18, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Rightsizing Recreation Facilities: Rainbow Park Ice Surface - Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadCity
Manager
Tim O'Reilly/
Holly Young
Michael Hugenholtz
John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed Rightsizing Recreation Facilities: Rainbow Park Ice Surface -
Sustainability Item as an option to be considered in addressing the entirety of the deficit in
2021 and 2022.
EXECUTIVE SUMMARY
The City of Saint John currently operates a seasonal outdoor skating rink service at
Rainbow Park. This service, provided from December — March each year (weather
dependent) has been in effect since 2012.
Given the City's current sustainability challenges, this report proposes the City no longer
provide this winter ice skating service. The reduction in service would result in an
estimated savings of $10,000.
Should Council decide at a future date to proceed with elimination of funding for this
initiative, 'Rainbow Park — Winter Ice Skating'would end; however, if any interested parties
come forward with a private sponsorship model that covers all costs usually provided with
public funds, the initiative could continue. Pending available capacity, assistance would be
provided by the City's Parks and Recreation team to assist interested parties if there was
will to assume full responsibility for the initiative under a "Community Development"
model.
A "Community Development" model to support community partners to assume
responsibility for delivery of recreation services is one of a few focus areas highlighted
M191
-2 -
throughout PlaySJ. A change in model from direct City delivery of Parks and Recreation
services is already being actioned in many ways. In addition to aligning with the financial
goals of this Sustainability Item, a community partner assuming responsibility would help
build community leaders and pride.
PREVIOUS RESOLUTION
On October 7, 2019, resolved by Council to receive and file M&C 2019-249: Sustainability:
Addressing the Deficit 2021-2022.
REPORT
The Rainbow Park winter ice skating service is being chosen for elimination for the
following reasons: The skating oval is too small for a suitable skating facility; usage at this
facility is low; the location provides weather challenges (very windy); difficulties
operationally in maintaining consistent ice thickness; and given its low priority for snow
removal, accumulation of snow on the ice surface breaks down the ice surface.
The cost associated with the operation and maintenance of providing this outdoor skating
rink service is not sustainable. It is recommended that this facility move to a "Community
Development" model or close. Should this service reduction be implemented,
communication will be provided to the existing neighbourhood school and to P.U.L.S.E.
STRATEGIC ALIGNMENT
Supporting Council's Priority to be Fiscally Responsible and will contribute to the
Sustainability Initiative included within Rightsizing Recreation Facilities.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on Council's
Priorities and ability to implement to address the deficit of 2021 and 2022. In addition to
Feasibility, criteria include Growth & Prosperity; Vibrant, Safe City; Valued Service Delivery;
and Fiscally Responsible (see Initiative Criteria Evaluation Appendix).
With respect to Vibrant, Safe City, there will be little to no impact. Input through the
Central Peninsula Secondary Plan's public engagement for this area included comments for
further improvements to Rainbow Park; however, the provision of a seasonal ice surface
for this area was not raised. For this service to continue it will need to move to a model of
"Community Development" and will need private sponsorship. If this service does not
transition to a different model it will result in a discontinuation of the service. In either
case, there will be a minor impact on Valued Service Delivery with a reduction in free
winter recreation service.
This item is 100% feasible, as it is based solely on a decision of Mayor and Council and can
be implemented to address the deficit within the timeframe.
-3 -
There will be no investment required to discontinue this service. The estimated reduction
is $10,000. The target has been validated with the following annual costs provided by
Facilities Management:
Operating Cost*
2018
2017
2016
$10,560
$12,419
18,019
* Costs are exclusive of HST
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input was provided by Transportation & Environment Services; Growth & Community
Development Services; and Finance & Administrative Services.
ATTACHMENTS
N/A
M11%
Appendix: Initiative Criteria Evalutation
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
,u nn
90
80
70
60
0
® •'40
If iinanciiall " 'airget
Evaluation Notes on Rightsizing Recreation Facilities — Rainbow Park Ice Surface:
• Vibrant, Safe City — No impact, aligns with stakeholder engagement on Neighbourhood Plan
• Valued Service Delivery — Minor impact with a reduction in a free winter ice service
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of November 18, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
`[1191
COUNCIL REPORT
M&C No.
2019-305
Report Date
November 13, 2019
Meeting Date
November 18, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Rightsizing Recreation Facilities: Seaside Park Lawn Bowling - Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadCity
Manager
Tim O'Reilly/
Holly Young
Michael Hugenholtz
John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed Rightsizing Recreation Facilities: Seaside Park Lawn Bowling -
Sustainability Item as an option to be considered in addressing the entirety of the deficit in
2021 and 2022.
EXECUTIVE SUMMARY
The City of Saint John currently assists in the operation of a seasonal lawn bowling facility at
Seaside Park. This service, provided from May — October each year (weather dependent) has
been active at this facility since 1989.
Given the City's current sustainability challenges, this report proposes that the City no longer
support this seasonal service. The reduction in service would result in an estimated savings of
$10,000.
Should Council decide at a future date to proceed with elimination of funding for this initiative,
'Seaside Park Lawn Bowling' would end; however, if any interested parties come forward with a
private sponsorship model that covers all costs usually provided with public funds, the initiative
could continue. Pending available capacity, assistance would be provided by the City's Parks
and Recreation team to assist interested parties if there was will to assume full responsibility
for the initiative under a "Community Development" model.
A "Community Development" model to support community partners to assume responsibility
for delivery of recreation services is one of a few focus areas highlighted throughout PlaySJ. A
change in model from direct City delivery of Parks and Recreation services is already being
`E
-2 -
actioned in many ways. In addition to aligning with the financial goals of this Sustainability
Item, a community partner assuming responsibility would help build community leaders and
pride.
PREVIOUS RESOLUTION
On October 7, 2019, resolved by Council to receive and file M&C 2019-249: Sustainability:
Addressing the Deficit 2021-2022.
REPORT
Seaside Park, located off Fundy Drive, currently includes a lawn bowling green and a small
facility/clubhouse. The Seaside Lawn Bowling Club currently is the only user of this City facility.
With a low membership, annual operating subsidies from the City, infrastructure that the City
may need to continue to invest in, it is recommended that this facility move to a "Community
Development" model or close. Either option would eliminate future operating and capital
subsidies from the City.
Should this service reduction be implemented, communication will be provided to the existing
Lawn Bowling Association.
STRATEGIC ALIGNMENT
Implementing this Sustainability Initiative supports Council's Priority to be Fiscally Responsible
and will contribute to the Sustainability Initiative included within Rightsizing Recreation
Facilities.
The City Parks & Recreation team's transition to more of a facilitation role supports Community
delivery of recreation services as envisioned in PlaySJ.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on Council's Priorities
and ability to implement to address the deficit of 2021 and 2022. In addition to Feasibility,
criteria include Growth & Prosperity; Vibrant, Safe City; Valued Service Delivery; and Fiscally
Responsible (see Initiative Criteria Evaluation Appendix).
With respect to Vibrant, Safe City, there will be little to minor impact. If the club is successful in
moving to a model of "Community Development" there will likely need to be private
sponsorship, an increase in membership fees, or some other type of business model. If they are
not able to transition to a different model it may result in the club closing its doors. In that case
there will be a minor impact on Valued Service Delivery with a reduction in free recreation
service.
This item is 100% feasible, as it is based solely on a decision of Mayor and Council and can be
implemented to address the deficit within the timeframe.
Mal
-3 -
There will be no investment required to discontinue this service. The estimated reduction is
$10,000. The target has been validated with the following annual costs provided by Facilities
Management:
Operating Cost*
2019
2018
2017
$8,100
$12,100
$9,700
* Costs are exclusive of HST
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input was provided by Transportation & Environment Services; and Finance & Administrative
Services. Verbal input was received from the Lawn Bowling Association's President.
ATTACHMENTS
N/A
M111.1
Appendix: Initiative Criteria Evalutation
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
,u nn
90
80
70
60
0
® •'40
If iinanciiall " 'airget
Evaluation Notes on Rightsizing Recreation Facilities—Seaside Park Lawn Bowling:
• Vibrant, Safe City — Minor impact
• Valued Service Delivery — Minor impact with a reduction in a free recreation service
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of November 18, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
[N/
COUNCIL REPORT
M&C No.
2019-297
Report Date
November 08, 2019
Meeting Date
November 18, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Playground Program — Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Brad Adams /
Amy McLennan
Michael Hugenholtz
John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed elimination of funding for the City of Saint John's
Playground Program as an option to be considered in addressing the entirety of
the deficit in 2021 and 2022.
EXECUTIVE SUMMARY
The City of Saint John's Parks and Recreation Department offers a free summer
Playground Program for children ages 6-12 at various locations throughout the
city and provides support for additional playground locations operated by third
parties.
Given the City's sustainability challenges, this report proposes the City no longer
fund the Playground Program, nor provide the support previously offered to
third parties. This would result in annual savings of $90,000.00, which is the
total in wages paid to sessional staff hired to carry out the program.
Should Council decide at a future date to proceed with elimination of funding for
this item, the Playground Program would end; however, if any interested parties
come forward with a private sponsorship model that covers all costs usually
provided with public funds and staffing resources are sufficient, the program
could continue. Pending available capacity, assistance would be provided by the
City's Parks and Recreation team to assist interested parties if there was will to
`[E:3
-2 -
assume full responsibility for the initiative under a "Community Development"
model.
A "Community Development" model to support community partners to assume
responsibility for delivery of recreation services is one of a few focus areas
highlighted throughout PlaySJ. A change in model from direct City delivery of
Parks and Recreation services is already being actioned in many ways. In
addition to aligning with the financial goals of this Sustainability Item, a
community partner assuming responsibility would help build community leaders
and pride.
PREVIOUS RESOLUTIONS
On October 7, 2019, it was resolved by Council to receive and file M&C 2019-
249: 'Sustainability: Addressing the Deficit 2021-2022'.
REPORT
The City's summer Playground Program provides a safe and inclusive youth
development opportunity for hundreds of families. The eight-week program
runs on weekdays (9:00am-12:00pm and 1:00pm-4:00pm) from June to August,
excluding holidays. Designed to promote recreation and healthy
neighbourhoods, the program includes daily sports, recreation, arts, crafts,
outings, and games.
In addition, the program partnered with Brilliant Labs in recent years to offer a
free weeklong tech camp called S.T.E.A.M. (Science, Technology, Engineering,
Arts, and Math) at each of the playground site locations.
Historically secured free of charge to the City through the Lorneville Community
Centre and Anglophone School District — South, washrooms and inside facilities
are available at all City operated locations.
In 2019, the playground locations operated by the City of Saint John included:
• Beaconsfield School
• Barnhill School
• Lorneville Community Centre
• Glen Falls School
• Lakewood Heights School
• Champlain Heights School
Program registration information for City -operated locations was as follows:
• Total Registered —428 youth
• Average Daily Attendance —18 youth per location
• Ages 6-8 years — 54% of Attendees
• Ages 9-12 years —46% of Attendees
-3 -
Third -party playground programs also receive support from the City of Saint John
in the form of training, supplies, special events and, in some cases, registration.
The 2019 locations of those third -party programs were as follows:
• Carleton Community Centre
• Crescent Valley Resource
Centre
• Milford Community Centre
• Nick Nicolle Community
Centre
Should the elimination of funding for the City of Saint John's Playground Program
be approved by Council at a later date, the Parks and Recreation Department
would advise external stakeholders of the decision, including, but not limited to:
• Anglophone School District —
South
• Lorneville Community Centre
• Carleton Community Centre
• Crescent Valley Resource
Centre
• Milford Community Centre
• Nick Nicolle Community Centre
• Brilliant Labs
• Saint John Transit
• Canada Games Aquatic Centre
• New Brunswick Museum
• DJ Dave Duffy
• Canada Games Stadium
• Estey Group
• Kiwanis Club
• Go Fundy Events
• ZAP Magic
The City of Saint John Communications Department would also be engaged to
assist in informing the public of the elimination of this program.
STRATEGIC ALIGNMENT
The savings realized by the elimination of funding for the Playground Program
supports Council's Priority to be Fiscally Responsible by contributing to the
overall Sustainability effort.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on
Council's Priorities and ability to implement to address the deficit of 2021 and
2022. In addition to Feasibility, criteria include Growth & Prosperity; Vibrant,
Safe City; Valued Service Delivery; and Fiscally Responsible (see Initiative Criteria
Evaluation Appendix).
With the elimination of the Playground Program, families without the means to
afford paid programming will experience a loss of structured recreation
opportunities during the summer months. For those living in close proximity to
program locations without the means of transportation, the loss of this program
will provide additional barriers to participation in recreation. These effects may
have a minor impact on Council's Priorities of Valued Service Delivery and a
Vibrant, Safe City.
In terms of Council's Priority of Growth & Prosperity, the elimination of the
program may also have an impact on growth. The target growth market of
newcomers and immigrants use the Playground Program as an affordable service
to integrate new youth with the community. Removal of this program may
impact whether immigrants stay in the city versus leaving for communities with
more youth programming available, and it has the potential to impact the
retention of other residents as well.
Playground programs offered by third parties will also no longer receive support
from the City of Saint John.
The sessional staff traditionally hired for the Playground Program also provide
backup support for 'Passport to Parks' and assist with other recreational
programming carried out by Parks and Recreation during the summer months.
The absence of these staff will mean that work will rest solely with permanent
staff.
This item is 100% feasible, as it is based solely on a decision of Mayor and
Council.
There will be minimal investment requirements associated with implementation.
Costs will relate to any communications carried out to advise the public of the
change. All costs will be covered through the annual operating budget.
The following is a breakdown of costs associated with the program in 2019:
Playground Coordinators (2 staff)
$16,892.91
Playground Supervisors (18 staff)
$79,537.91
Subtotal
$96,430.82
Employment Grants
-$6,435.89
TOTAL SAVINGS
$89,994.93
Elimination of funding for the City of Saint John's Playground Program would
result in annual savings to the general operating budget of $90,000.00.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input for this report was provided by the staff of the Parks and Recreation
Department.
151
ATTACHMENTS
N/A.
-5 -
`W
Appendix: Initiative Criteria Evaluation
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
100
90
80
70
60
0
® •'40
30
20
10
0
If iinanciiall " 'airget
Evaluation Notes on Playground Program:
• Impacts on a Vibrant, Safe City and Valued Service Delivery with the reduction in free, structured
recreation opportunities; impact on Growth & Prosperity, as program used by newcomers.
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to
address the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there
are no other options to address the deficit.
Sustainability Initiatives Evaluated as of November 18, 2019 (Not including Continuous Improvement
Items)
1. Passport to Parks
2. Lifeguards
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
My
COUNCIL REPORT
M&C No.
2019-292
Report Date
November 08, 2019
Meeting Date
November 18, 2019
Service Area
Growth and Community
Development Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Demolition of vacant, dilapidated and dangerous buildings at 142-
144 Highland Road (PID 55196711)
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Rachel Van Wart
J Hamilton /A Poffenroth
John Collin
RECOMMENDATION
RESOLVED, that the House and Shed located at 142-144 Highland Road, PID#
55196711, are to be demolished as they have become a hazard to the safety of
the public by reason of dilapidation; and
BE IT FURTHER RESOLVED, that the Shed is to be demolished as it has become a
hazard to the safety of the public by reason of unsoundness of structural
strength; and
BE IT FURTHER RESOLVED, that one or more by-law enforcement officers
appointed and designated under the Saint John Unsightly Premises and
Dangerous Buildings and Structures By-law are hereby authorized to arrange for
the demolition, in accordance with the applicable City purchasing policies.
EXECUTIVE SUMMARY
The purpose of this report is to advise Council that a Notice to Comply was
issued under Part 13 of the Local Governance Act for the building at 142-144
Highland Road. The hazardous conditions outlined in the Notice have not been
remedied by the owners within the required time frame and staff is looking for
authorization from Council to arrange the demolition of the building.
`N'il
-2 -
PREVIOUS RESOLUTION
N/A
REPORT
Inspections of the property at 142-144 Highland Road, PID# 55196711, have
revealed that there are two buildings on the premise; a two-storey, single family
dwelling, and a two-storey, wood framed shed. The building is currently assessed
at $111,300. Staff first became aware of the property's vacancy in February 2017
and began standard enforcement procedures. The property is located on the
City's North End in a two -unit residential zone. The Buildings are a hazard to the
safety of the public by reason of being open, by reason of being vacant, and by
reason of dilapidation. The Shed is a hazard to the safety of the public by reason
of unsoundness of structural strength.
For the reasons described in the attached Inspection Report, a Notice to Comply
was issued on August 30, 2019 and was posted to the building on September 19,
2019, as per section 132(3) of the Local Governance Act that outlines acceptable
methods of service. The Certificate of Registered Ownership lists two individuals
as the owners. The Notice provided the owners with 45 days to remedy the
conditions at the property. The owners did not file a formal appeal and did not
take remedial action to comply with the requirements of the Notice. A
compliance inspection was conducted on November 7, 2019 which revealed that
the conditions which gave rise to the Notice have not changed since the Notice
was issued.
Attached for Council's reference is the Notice to Comply that was issued and the
affidavit attesting to service. Also included are photographs of the building. The
Local Governance Act indicates that where a Notice to Comply has been issued
arising from a condition where a building has become a hazard to the safety of
the public by reason of dilapidation or unsoundness of structural strength, the
municipality may cause the building to be demolished. As required in the Act a
report from an engineer is attached, forming part of the issued Notice to
Comply, and provides the evidence to the buildings' vacancy, dilapidation,
unsoundness of structural strength and resulting hazard to the safety of the
public. A copy of the letter advising of the Common Council Hearing date and
affidavit is attached; it was posted to the building on November 1, 2019 and sent
to the owners via registered mail on October 31, 2019.
STRATEGIC ALIGNMENT
Enforcement of the Saint John Unsightly Premises and Dangerous Buildings and
Structures By-law aligns with Council's Vibrant, Safe City priority.
-3 -
SERVICE AND FINANCIAL OUTCOMES
As is written in the Local Governance Act that a municipality must commence in
the proceedings of remedial action, approval of Common Council is required
prior to starting demolition activities at the property. Total cost of the
demolition work is approximated at $15,000 and will take about 4-5 weeks
before it is complete. Staff will seek competitive bidding in accordance with the
City's purchasing policy and the cost of the work will be billed to the property
owner. If the bill is left unpaid, it will be submitted to the Province with a request
for reimbursement.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City Solicitor's Office provided ownership verification by obtaining the
Certificate of Registered Ownership for the property. Additionally, the City
Solicitor's Office registered the Notice to Comply with Service New Brunswick's
Land Registry.
ATTACHMENTS
Notice to Comply
Affidavit of Posting - Notice to Comply
Affidavit of Posting - Notice of Common Council Hearing Letter
Photos
`&V
(1) UJ
Parcel identifier:
PID #55|907|i
Address: 142-144 Highland Road, Saint John,
New Brunswick
Owner(s) or Occupier(s):
Nunno: Liu, Hui
Address: 142 EDuh|mnd Road, 3urk John, New
Yiumc: Cao, Jia
Address: 142 }Uuh|mod Road, Saint John, New
Brunswick, B2K|Pg
Local government giving notice: The City of Saint John
By-law contravened: Saint John Unsightly Premises and
Duogem/o Buildings and Structures 8v-lcw, By-law
Number M-30and amendments thereto (the "By -|un~).
(Loi sur &uguuvmrmu/molocale,
Nunm6nod'idmmtificatuodmla parcelle :
ND]:55|987||
Adresse : 142-144, rue Highland, 8uro John,
Propri6taire(s) :
Nono: Liu, Hui
/\dm:aae : 142 num Highland, Saint John,
Nouveau -Brunswick, E2K I P9
Nono : Cao, Jia
Adresse : 142, rue Highland, Suint John.
Gwmveroaoammklocml signifiantl,mvis : The City of
Saint John
/krr0(6 eofreint :Ar/etereka6faux ficoximsthedqou/
xtaux Witioeo/s e/ mx/xtnxtionx doorcrcxxdx Saint
John, /\n-Wounn600M-30'uinxiguesnxmodifications
ci-aff6rcn(eu(|` ^AnW»).
Provision(s) contravened: Subsections 0(|), 0(2) and (a) emJramtw(a) : Leo paragraphes 8(|),
6(3) of the By-law. 6(2) et paragraphe 6(3) de I'ArrW.
that exist: The prernise is unsightly by
permitting junk, rubbish, refuse and u dilapidated
building to remain m the prernise. The building has
heconneuhazard tnthe safety ofthe public bvreason of
being vacant orunoccupied and has hecnnsuhazard to
the safety of the public by rcumno of dilapidation and by
o:uaon of unsoundness of u(noc0mru| strength. The
conditions of the building and premise are described in
Schedule ^'&^',utrue copy ofthe inspection report dated
August 30, 2O|9prepared byCatherine Lowe, BTTand
reviewed and concurred inhyAmy9offenroih,P.Eng.,
By-law Enforcement Officers.
What must be done to correct the uwodidmm: The
owner iy0mronnedythe conditions bycomplying, with the
required remedial actions of the aforementioned
inspection report and bring the building and premises into
compliance with the aforesaid By-bw.
Inthe event that the owner does not remedy the condition
ofthe building and premises inthe bneprescribed hythis
Notice 0oComply, the building may hedcnno|isheduuthe
corrective action toaddress the hazard iothe safety n[the
public and the prenoiecmmay hec|ounedup.
Description de lm (des) situation(s) : Lea |ioux xoni
ineath6tigue*enyenncUani|a pr6sencedrferruiUo,do
d6Uituxet |o bdhmnn{d6 uhr6. Lo b& iouenteXdovenu
dungerouu:pour |u s6uuhu6du public du fait de soil
inhabitation ou de soil inoccupuiion et est devonu
dungcrouoc pour |uo6cuhh6du public du fait de soil
d6iuhrenneni et du fait de mnunque de mo|idiL6. Loa
conditions du h81innoni et desUmox son( d6uhteu �
|'unnoxe «A », unc cnpie confbrxe du rapport
d'inopecbon on date du 30 uo8i 2019 c( yo6pur6 par
Catherine Lowe, IS n( r6vix6 et en d'occuvde uvno par
Amy 9offenvoih, iug., agentes charg6 de 1`ox6oudon
des arr6t6s du gouvernernent local.
Cc qm`il y a Deo de faire pour y remu6dier: Lu
pnoph6tain: doi( reutuoror |oa conditions nn se
con[o,nounL aux rccononoanduhona do rapport
d`inapeohon susnoendon16 eid`umcnar|e b8dnncn\et
les |iouxcncnnfonnit6aavec |`Arr&6.
Dans )'6vcntuu|it6guc|u propri6tairenernn6dientpas
le b8 inxen( c4 les |icux duns |e temps preaudL pm' |o
pr6aent avis deonnfonmic6` |e h8|imonipounnnt6tre
d6mn|iocomunoemneuurocorrective connpte(enuqu`i|
rep/6aon\o undanger pour |ua6ourit6do public et les
In the event of demolition, all debris and i|oma on the Dans 1'6vexuufii6 de d6mo idou. kmu les d6brx et
The afore men boned remedial actions relating W the
demolition ofthe building and the disposal ofdebris and
items oil the premises do not include the carry -out clean-
up, site rehabilitation, restoration of |mnd, premises or
personal property or other ,onnediu| action in order to
control uvreduce, eliminate the release, alter the manner
of release or the n:|euao of any ooniuxoinnnt into or upon
the environment orany part ofthe environment.
Date before which the condition must beomrrcctcd:/
nnoxuro corrective duox |n but d$ rmn6dior |c danger
pour |ua6uuhK!dupublic.
Les nnesuremcorrectives auxmmVionu6emnelobvenen1b
|ud6nuo|idondub81innentc{}odisposition des d6hdset
autres itennw xur les |ieux ne ounoprennent pas |n
noUvyuge, lurenniae en6(ctdes |ioux.des terrains on
des bienayemonnds ou (uutenutru memurccornecbvo
duns lo but de contn5|cr on dc r6duire. d`61inniner |e
d6vemomeni, do noodificr |c mode dud6vnmoonen(ou
|e d6vomement d'un po||uunt dans ou our
1'envioonnmmcn1outootepurhede|`envi,nnnonnent.
uf The demolition of the building, clean-up of the oJ Lad6moUhon du b8 innent et !e nettoyugtdnm
property and vn|ukxd ronnedics must be complete, |icuxdoivoni6Ueconnp|&¢6s` ou A|ugud|e |om
orplans and permit applications for repair related y|une etdeonondedc yermoia pour les neyunou
rcnnedice, must bosubmitted: within 45days o[ des r6parations,doivent8Ursounu\sox,dans|cx
being served with the Nc4ioc to Comply. 45 jnurygui ouivont\usignification do|`uviado
confo,mi(6.
b) The repair related rernedicx must be complete
within 120 days of being served with the Notice
to Comply.
Date for giving notice of appeal: Within 14 days of
being served with the Notice to Comply.
Process twappeal: The owner may within 14 days uKe'
having been uo,vod with this Notice to Comply, send u
Notice ofAppeal by registeredu)u |tothe Common Clerk
ofThe City ofSaint John, City Hal |-8mFloor, 15 Market
8guorc, Saint John, New Brunswick, B2L4l.[.
Potential penalty for not complying with notice within
time set outimnwtiou:cSubsection )\(|)ofthe By-law
states that uperson who fails to comply with the terms of
a Notice toComply givenunder section 7nfthe said 8y-
lmv,commits ail offence that is punishable under Part 3
ofthe Pn/v/nc/u/Qft�,/cus/`roce/li/ruAct uyucategory F
offence.
Where un offence under subsection |\(|) continues for
more than one dm, the minimum fine that may be
imposed is the nnininnumn fine set by the prov/no/x/
0fenxex Procedure Ac/ for u ou(e8nry F offence
multiplied by the nunube, of days during which the
offence continues pursuant tosubparagraph \l(3)(b)(i).
Loc�e�`am����teun�r�ke r���nr
remedy:' Paragraphs 12(l)(n)' 12(l)(b) and 12(|)(o) of
the By-law state that iFail owner oroccupier does not
oon'y|y with uNohce to Comply given under section 7
within the bnxe aoi out in the said Notice, the City may,
@V Les r6parations n]fi6en aux nneuurea doivon(
etrocnnny|6t6to dans les 120joomqui muiveni
|usignification do|`uviadeconfornoii6.
Date limite pour donnerI`avis d`appel:Dans les |4
joumgui xuivnnt |unotification de[uviude
confonniL6.
X»rwcemouad'apme : Lu propri6tairep*uxdans les 14
joumqui ouiven(|unotification de[uvisdeconfonniL6.
envoy' un uvisd`uppo| par counie,reonnnnx/nd6 �|u
crreffi6rn cnmnoonu|n de |u municipu|it6. kThc City of
Saint John. ' ificu dc [h8to| do vU|c. 81 6|ugn, 15
Market Square, Saint John, Nouveau -Brunswick, E2L
Peine '���mncum�,�mm�ommdmnmuwoforommr
-
aux exigences de}^avis b
��molo��i y' �z �� Le
paragraphe l|(U do |`ArrW or6vnit quicongue onn:
de mcconformer aux exigences fornm|dnxdans unavis
deconfonni(dnobU6aux Kx�noxdn|`mrtic|e7do|udi|c
&,i -W, connmet unu infraction qui oai puniaoub|c en
vertu de \u podie 2 do |u Loi stir /u procedure
u/p//cub/x aux /n6ocr/o/// yxuvinc/u/xv 4 titre
d`infnaction do |nc|uxsoP.
lumgu`une infraction pnfvue au pmngrayhe |i(\) so
pououit pendant plus d`une journ6e, [unnendc
nninimu|egui peu|Ako inqpox6uest [unnonde nnininnue
pr6vus par |u Loi stir /u procedure applicable uxz
inftac//ooxpro viooiu/uxpour oncinfraction dc|uc|uxxe
F mu|dy|i6c par |c nombre de 'ours pendant |oequJa
]'infraction me pou,muit conform6onnnt it |`a|in6a
Pemvoir dm &�a d, o�d�o
-
r4pmratwmm on do ruon6diur � lo situation : z
Conformdn}ontuox uUo6ua 12(1)u), 12(1)b) et )%(|)c)
de |'Arr&6, ai un avis dnoonformii6a6h6 aigniO6uux
teroea de |`urtido 7 dc |uditn An6\6 oi. que |c
=|`o,nmxntnrxrcnnformoDas &cotavis
any associated charge or fee, is chargeable to the owner
or occupier and becomes a debt due to the City.
Dated at Saint John thearday of August, 2019
Local government: The City of Saint John
Signature of the officer of the local government:
nettoyer ou r6parer les lieux de cc propri6taire ou de cet
occupant ou de faire r6parer ou d6molir le batiment ou
autre construction de ce propri6taire ou de cet occupant,
et les coots aff6rents a 1'ex6cution des ouvrages, y
compris toute redevance on tout droit connexe, sont oris
a la charge du propri6taire ou de l'occupant et
deviennent une cr6ance de la municipalit6.
Fait a Saint John le _ aout, 2019.
Gouvernement locale : The City of Saint John
Signature du fonctionnaire du gouvernement local:
Contact information of the officer of the local Coordonn6es du fonctionnaire du gouvernement
government: local:
Name: Catherine Lowe, EIT
Mailing address:
Growth and Community Development Services
The City of Saint John
15 Market Square
City Hall Building, 101" Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L I
Telephone: (506) 658-2911
E-mail: catllerine.lowe@s iintiohn.c<t
Fax: (506) 632-6199
Corporate seal of the I
Notes: \koro !`,aiP;iri,ri;,
1. All appropriate permits must �iajncd'and all relevant
legislation must be complied with in the course ol' carrying out the
required remedial action.
2. Payment of the line does not alleviate the obligation to comply
with the by-law, standard or notice.
Nom : Catherine Lowe, IS
Adresse postale:
Service de la Croissance et du D6veloppement
Communautaire
The City of Saint John
15 Market Square
Edifice de 1'h6tel de ville, 10e 6tage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L l
T616phone : (506) 658-2911
Adresse 6lectronique: catherine.lowe@saintjohn.ca
T616copieur : (506) 632-6199
Sceau du gouvernement local
Notes :
I. Tolls les permis prescrits doivent &re obtenus et toute la
16gislation pertinente doit etre respectOe pendant I'ex6cution des
mesures de rem6diation.
2. Le paiement de I'amende n'a pas pour el'Fet d'annuler
l'obligation de se conformer a 1'arret6, a la norme ou a l'avis.
3. Costs become a debt due to the local government and may be 3. Les co6ts deviennent une cr6ance du gouvernemcnt local ct
added to the joint local government and provincial Real Properly peuvent etre aioutos a ('avis commun d'6valuation et d'impA
Assessment and Tax Notice. Foncier des gouvernements local et provincial.
142-144 Highland Road
Saint John, New Brunswick
PID# 551.96711
thiss'=--may U` 2d .
,,,rds C)I`fiiCer
t
c
Inspection Date: July 29, 2019 `
Inspection Conducted by: Catherine Lowe, EIT &
Vincent Chan, By-law Enforcement Officer
Introduction
Inspections of the property at 142-144 Highland Road, PID# 55196711, have revealed
that there are two buildings on the premise (the `Buildings"); a two-storey, single family
dwelling (tile "House"), and a two-storey, wood framed shed (the "Shed"). Staff first
became aware of the property's vacancy in February 2017 and began standard
enforcement procedures. The property is located on the City's North End in a two -unit
residential zone. The Buildings are a hazard to the safety of the public by reason of being
open, by reason of being vacant, and by reason of dilapidation. The Shed is a hazard to
the safety of the public by reason of unsoundness of structural strength.
Discussion
The Buildings are not in compliance with the Surat John Unsightly Premises and
Dangerous Buildings and Siructure ' By-la6V, By-law Number M-30, and amendments
thereto (tile `By-law").
Unsightly Premise Conditions
Subsection 6(1) of the By-law states:
NO person shall permit premises owned or occupied by him or her to be
unsightly by permitting to remain on any part of such premises
(a) any ashes, junk, rubbish 0r refuse;
(h) an accumulation of wood shavings, paper, sawdust or other residue of
production Or conStruC6011;
(c) a derelict vehicle, equipment, machinery or the body of any part of a
vehicle equipment or machinery, or
(d) a dilapidated building.
There is an accumulation 01' junk, rubbish, and refuse on the property. These
items include, but are not limited to; a damaged mattress, a discarded blanket,
rotten pieces of wood, rusted metal barrels, tires, a green garden hose, a small
collapsed wooden shed, broken glass, exposed nails, as well as other various loose
garbage. There is also a large rusted metal satellite with a concrete base at the rear
of the property. The aforementioned accumulation of junk, rubbish, zinc[ refuse is
unsightly.
2. The House is dilapidated. The paint on the siding is peeling. The exposed sections
of the stone foundation are colored green due to algae growth. The right side and
rear entrance to the House have been found open. The door to the rear entrance
rests against the House. The door to the crawl space at the rear of the house has
been broken and removed; the door now lies on the ground. A window at the rear
of the House is covered with a plastic film. The screen of a window on the right
rear of the House is sticking out from the window frame. There is a rusted pulley
system on the right side of the House. These conditions are unsightly.
deteriorated and peeling. Windows on the ►►gnt, reit, ana real -o► u►c a,1c« WU
►hissing glass, exposing the interior of the Shed to the elements. The stone
foln elation of the Shed is Crumbling. A section of foundation at the rear of the
Shed has partially failed, causing the left rear corner of the She([ to be
inadequately supported. The front wall and roof of the Shed is no longer plumb
but is sagging downward on the left and right side. These conditions are unsightly.
Vacant and Unoccupied
Subsection 6(2) of the By-law states:
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of` the public by reason of
being vacant or Unoccupied.
The Buildings are a hazard to the safety of the public by reason of being vacant or
unoccupied for the following reasons:
Buildings in a dilapidated condition that are known to be open and vacant can
attract vandalism, arson and criminal activity. The property's condition affects
the quality of life of neighboring residents and negatively affects property
value of real estate in the arca clue to negative perceptions ole unsafe and
deteriorating conditions. There are signs of trespassing in the Buildings as
some items appear intentionally broken and there are mattresses on the floor
in the living room of the House. There are two separate energy meters on the
House. Saint John Energy confirmed that power for 144 Highland Road was
disconnected in May 2015 and power for 142 Highland Road has been
disconnected since May 2018. The City of Saint John Finance department
confirmed that the water has been turned off since November 2015.
2. There is a higher risk of a fire event occurring at the property since it is known
to the public that the Buildings are vacant. There is a neighboring single
family home at 138 Highland Road that is currently vacant due to ongoing
renovations. If a fire event were to occur within the Buildings, it could easily
spread to the neighboring property, which could cause significant clarnage to
the building. In addition, since both of these buildings are vacant, a fire may
not be detected right away. This could allow the blaze to intensify and become
out of control.
3. There is a concern for emergency personnel safety in the event of an
emergency. If firefighters suspect there may be people inside the House, it
would be reasonable to expect they may be required to enter it. They play also
need to enter the House to fully extinguish the fire. The condition of the
interior is not known to firefighters, which poses a hazard to their safety and
others who may be inside in the event of a fire. Household items, broken
glass, garbage and other debris cover the floors inside the House. There is a
mattress lodged in the front stairwell leading to the second storey. These
conditions are hazardous as they could hinder the movement of emergency
personnel or anyone else inside the House during an emergency.
4. The two-storey Shed is open and accessible to the public. Emergency
personnel may be required to enter the Shed if they suspect there may be
people on the second storey of the Shed. The first storey of the Shed is filled
with discarded items and junk. The stairs leading to the second storey do not
sleet the National Building Cocle qf'Canada standards and therefore would be
hazardous clUrillg all emergency event. The Shed is also structurally unsound,
,oc the left rear corner of the Shed is not properly supported. This is a hazard to
Subsection 6(3) of the By-law states
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of the public by reason of
dilapidation or unsoundness of structural strength.
The Buildings are a hazard to the safety of the public by reason of dilapidation for the
following reasons:
1. The House is dilapidated. The ceiling of the kitchen on the first storey is
sloped and stained from water damage. This is likely due to water leaking
from the second storey bathroom. The flooring around the toilet in this
bathroom is warped, suggesting water damage. Floors can become soft and
unsound due to water damage and can fail under load.
2. The rear staircase that provides access to the only the second storey of the
House is sloped. This may be caused by a shift in the House or the foundation,
Which could indicate structural unsoundness of the House. On the first storey,
there is a small storage area beneath the staircase that is deteriorated and
shows signs of rot. This may be due to water damage, which could worsen the
condition of the stairs as well as this section of wall of the House.
3, The House has been open to the public for a number of years as the right side
and rear doors to the House have remained open and unsecured. The door
leading to the crawl space of the House has also been open, providing access
to the House's foundation, and electrical and plumbing equipment. The
interior condition of the House suggests that it has been vandalised. There is
household items, garbage, and other ,Junk strewn throughout the House. There
are also piles of broken glass in sections of the House that appear to be from
broken dishes. Furniture such as mattresses and couches have been upturned
and damaged. Trespassers are a hazard to the safety of the neighborhood.
These conditions could also give rise to pest and rodent infestation, creating a
nuisance to neighbors and increasing the dilapidation of the House.
4. The Shed is dilapidated and has remained open for a number ofd years. The
doors are damaged and cannot be closed. The first storey of the Shed is filled
with discarded items and junk. There are many wooden boards with exposed
nails on the second storey of the Shed. Exterior siding along the base of the
Shed is rotten. The roof shingles are worn and peeling. High winds could
dislodge the shingles, creating a hazard for people or property in the area. The
front wall and roof ole the Shed is sagging, suggesting structural issues. This is
also evident at the left rear corner of the Shed where the stone foundatiOn has
failed and left this section of the Shed improperly supported. These conditions
could cause the Shed to fail, which would be hazardous for anyone in or
around the Shed.
Structurally Unsound Building Conditions
Subsection 6(3) of the By-law states
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of' the public by reason of
dilapidation or unsoundness of structural strength.
The Shed is a hazard to the safety Of the public by reason of unsoundness of structural
strength for the following reasons:
3ccbOnx of the [our ak)nc wall K)unocx/nn nave /anou. x/c /u/ 'ou' u/mVA m
the Shed rests oil only one stone block that is deteriorated. The r8uu\ining
stone foouduhon is cnunnblin�. The leftreal- sCCtion of the Shed c0u}d c0l|upxoifthe Shed is left in this condition.
Required Remedial Actions
The owner must cornply with one ofthe two options stated below:
Option 1.' 800nody the conditions of the BuUdings (boouuh all ropuir and vcnnndiu| actions
Lis follows:
[. The Buildings nlU6t he C0ouoJcttly [cVuirnd to vno)ocy [lie above n\eoti0nod
huzun1x to public safety vvhi>o onooiin� the requirements of the National B///d/unCode qfCanada (2010) as well as all other applicable by-laws.
2. The Buildings rnux(be noaintuincd, krni xcounc, and monitored on u routincbuaix
while the property rernains vacant or LHIOCCUpied.
9. & detailed plan mua|iesubmitted to the Growth and CommuniNDove|oprneni
3crvkccx D� ^uUnucni of the City of Saint ]nbn (the "Department") for review and
approval. The nJun mbnu1d also include u schedule for the work that is to be
carried out. The [cpuin:d Buildings muxt nunoi the National Building Code o/
Canada (2010) as well as other applicable codes.
4. The detailed I)1un` inClUding xrhCdu}ex and any on�inoe,iDg reports, nlux( be
approved bythe FespanLnoeu(prior i0o0nunocncio�repair v/ork.
5. A building pouoi( nouo1 be obtained [or any and all applicable work prior to
C0nnnleDCiDg said vv0[k [r0Dn the City of' Saint John in 0D]Cr to c0[Op|y with the
Saint John. /}x//d/ng By-law, By-law NunnberC.P. 102 and uooendnuon(x (ho»c(o
(ibc "Saint John /7///ldi/X 8v'/ow").
6. The p,enniye onuai be o|oun:d of all debris found on the property, inn]oding any
and all rubbish that cnuybcconsidered buxonJouaorUnsightly. Tile debris (iom
the pvcnoixn nooyi be disposed of at all approved solid waste disposal site, in
accordance with all applicable by-laws, uCLs and rngluiiOnx. [)0Cunnen{ed p00O[
that clearly d0000ns[ruk:x an approved solid waste disposal Site vvux uxm] for the
disposal of debris, rnList be provided to the Departnient. The prernise IIILISt COIlIply
with all applicable 8y-|uvva,Acts, Codes and Rcgi|ud0na.
Optioit 2: Demolition O{ the Buildings and dnanup o[ all debris on the prernise by
cornplying with all the remedial actions as follows:
|. The Bui1dinQs 0ux| be dernOliahed to re�
nv U� hazard to safety of the
public by reason o[di|upidu1iOn and by [euxOn of'bcingvacant 0ruuoucupiod.
2. A den/oli(ion Pcnnit nnuut he obtained /,onu the City of Saint John in order to
comply with the Saint John B01ding By-hm%
3. The prerrilse 111LIst be cleared of the debris frorn the dernolition and the lot niust be
noude rouxooub|y |cvu| with grade so as to not create u tripping or falling hazard.
All dohbu nnoxL be disposed of' at all approved solid vvuaio diwpnxu| site, and in
accOn]unon with all applicable By-laws, Acts and Regulations. [)ncunncntnd
proof' ihuic|nurlyderoonxtnutCs all approved o0/id vvaxie disposal site was used for
the disposal o[debris, nnux(boprovided iothe [Jepurinncnt.
4. All debris that is CUrrently oil the preniise rnList be rernoved and disposed of at all
5. The property must be in compliance with all applicable By-laws, Acts and
Regulations.
Prepared by:
k)Aj
Catherine Lowe, EIT Date
Technical Services Officer
Growth and Community Development Services
Reviewed by and concurred in by:
Arny—Po—ffengiot O,P.pEn�g., MBA
Building Inspector
Deputy Commissioner
Growth and Community Development Services
6A�hL'vs+ ..:3
Date L'
FORM 1
NOTICE OF APPEAL
File No.:
BETWEEN:
Appellant(s),
-and-
THE
and -THE CITY OF SAINT JOHN,
FORMULE I
AVIS WAPPEL
N' du dossier :
ENTRE:
Appelant(s),
-et-
THE CITY OF SAINT JOHN,
Respondent. Intin-i6e.
Parcel Identifier : PID # NUm6ro d'identification de la parcelle : # NID
Parcel Address: T Adresse de la parcelle
Owner(s) or Occupier(s):
Name:
Address:
Telephone:
Name:
Address:
Propri6taire(s) ou occupant(s)
Nom :
Adresse :
T616phone:
Nom :
Adresse
Telephone: T616phone:
The above named appellant(s) is (are) not satisfied L*appelant ou les appelants susnomm6(s) ri'accepte(nt)
with the terms and conditions set out in: pas les modalit6s ou les conditions qui sant 6nonc6s
dans :
(a) a Notice that was given under section 7 of the (a) un AVis qui a 6t6 donn6 en vertu de I'article 7 de
Saint John Unsightly Premises and Dangerous I'ArrCW relatif aux lieux inesthetiques et aux
Buildings and Structures By -Law; or Witiments et constructions dangereux dans The
City of'Saint John; ou
(b) an Order that was issued under section 25 of the (b) une ORDONNANCE qui a 6t& &mise en vertu de
Saint John Minimum Property Standards By- I'article 25 de 1'Arr6te concernant les normes
Law; minimales regissant les residences de Saint John
and therefore appeals to the Saint John Substandard et fait ainsi appel levant le Comite des appels sur les
Properties Appeal Committee. residences non confbr1nes aux normes de Saint John.
The appellant's grounds for this appeal are as follows Les motifs d'appel de I'appelant(s) dans le pr6sent
Dated at
20
Signature of owner or occupier
the
day of Fait A
The appellant(s) intends to proceed in the English [ ]
or French [ ] language (Please check the appropriate
box).
Please.forward your Notice gf'Appeal by registered
mail to the Common Cleric within fourteen (14) clays
after having been given the Notice or Order at the
following address:
Common Clerk's Office
15 Market Square, City Hall Building, 8"' Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L1
Telephone: 506-658-2862
Facsimile: 506-674-4214
Notes:
1. A Notice or Order that is not appealed within
fourteen (14) days after having been given or issued
shall be deemed to be confirmed.
2. On an appeal, the Saint John Substandard
Properties Appeal Committee shall hold a hearing
into the matter at which the owner(s) or occupier(s)
bringing the appeal has (have) a right to be heard and
may be represented by counsel.
3. On an appeal, the Saint John Substandard
Properties Appeal Committee may confirm, modify
or rescind the Notice or Order, or extend the time for
complying with the Notice or Order.
4. The Saint John Substandard Properties
Appeal Committee shall provide a copy of its
decision to the owner(s) or occupier(s) of the
premises, building or structure who brought the
appeal within fourteen (14) days after making its
20
Signature du propri&taire ou de ('occupant
le
L'appelant a ou les appelants ont ]'intention d'utiliser la
langue frangaise [ ] ou anglaise [ ] (Vetaillez cocker la
case appropriee).
Vetullez faire parvenir votre AVIS D'APPGL par courrier
recommande au greffier communal dans les quatorze
(14) jours dtti suivent la notification de PAVIS ou de
VORDONNANCG it Vadresse suivante
Bureau du greffier communal
15 Market Square, Edifice de 1'h6tel de ville, 81 6tage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L1
T616phone : 506-658-2862
Facsimile : 506-674-4214
Notes :
1. Un AVIS ou Line ORDONNANCE dont it West pas
inter jet& appel dans les quatorze (14) jours qui suivent
la notification de I'AVIS ou I'&mission de
l'ORDONNANCE est r&put& confirm&.
2. Lors d'un appel, le Comite des appels sur les
residences non conformes aux normes de Saint John
Boit tenir, sur le point en litige, Line audience au cours
de laquelle le(s) proprietaire(s) ou ]'occupant ou les
occupants qui interiette(nt) appel a (ont) le droit d'etre
entendu(s) et peut (peuvent) se faire repr&senter par un
avocat.
3. Lors d'un appel, le Comite des appels sur les
residences non conformes aux normes de Saint John
peat confirmer, modifier ou annuler I"AVIS ou
l'ORDONNANCE ou proroger le delai pour s'y conformer.
4. Le Comite des appels stir les residences non
conformes aux normes de Saint John dolt fournir Line
copie de sa d&cision au(x) proprietaire(s) ou a
I'occupant ou aux occupants des lieux, du batiment ou
de la construction qui lui a (ont) interjet& appel dans les
5. The owner(s) or occupier(s) who is provided
with a copy of a decision from the Saint John
Substandard Properties Appeal Committee regarding
a Notice, may appeal the decision to a judge of The
Court of Queen's Bench of New Brunswick within
fourteen (14) days after the copy of the decision was
provided to the owner(s) or occupier(s) on the
grounds that (a) the procedure required to be
followed by the by-law was not followed, or (b) the
decision is unreasonable.
5. Le(s) propri6taire(s) OU I'OCCLIpant ou les
occupants A qui Line copie d'une d6cision a 6t6 fournie
par le Confite des appels sur les residences non
con1brines aux norines de Saint John concernant un
AVIS peut (peuvent), dans les quatorze (14) jours qui
suivent, interjeter appel de la d6cision devant un juge de
la Cour du Banc de la Reine du Nouveau -Brunswick au
motif que (a) ]a d6marche a suivre en vertu de Parr&6
Wa pas W suivie, ou (b) ]a d6cision est d6raisonnable.
CANADA
PROVINCE OF NEW BRUNSWICK
COUNTY OF SAINT JOFIN
IN THE MATTER OF THE BUILDING THAT IS LOCATED AT'
SAINT JOHN, N.B. (PID number jq (all I
AFFIDAVITOF SERVICE
11 130(AaA of Saint John, N.B., Make Oath And Say As Follows:
I am employed by The City of Saint John in its Growth and Community Development
Services Department. I have personal knowledge of the matters herein deposed except
where otherwise stated.
2. On tq Lq at approximately .3,1 06901 " I posted a
copy of the attached Notice to Comply, marked Exhibit "A" and Notice of Appeal,
marked Exhibit "B" to the front door of the building that is located at
( 4 7- 0 'ril' Saint John, N.B.
Sworn To before me at the
City of'Saint John, N, B.,
on the ___fj_!day of
4 6 -
vi 2019
RACEL A VAN WART
COMMISSIONER OF OATHS
MY COMMISSION EXPIRES
DSCEMBER 31s', 2022. 169
kl,ocal LIU Furn(MUG titt, 4WU A I,
1* Is Exhibit (Loi stir la gonvernance locale,
Referred to in the Affidavit Of L.N.-B. 2017, ch. 18, par. 132(2))
0 u
(e,
Parcel identifier: bmbefolki -L-4—
kl
atftCftyof Nuiii6rod'ideittificatioiidelaparcelle:
js��o_(ekrll M 4e4—
Saint John, New BrunsWck
< eo, Nit) � 55196711
IIID -455196711 the day of
Address: 142-144 Adresse 142-144, nie Highlati(, Saint Johil,
New Brunswick C t NOLlVCaL1-Bl`UuS%tCl(
Owner(s) or Occupier(s):
Name: Liu, HUI
Address: 142 Highland Road, Sault John, New
Brunswick, E2K 1 P
Name: Cao, Jill
Address: 142 Highlaild Road, Saint Jahn, New
III-1111swick, F2K IP9
Local government giving notice: The City cif Saint John
By-law contravened: Saint John UnsightlY Premises ond
Dtingerous Buildings and S11-1,1('110TS B 'v -Lai r,
v -Lair, By-law
Number N4-30 aud amendments thereto (the "By-law").
Proprikaire(s) on occupant(s) :
Nom : Li U, I IU i
Adresse : 142, i-ue Highland, Saint Jahn,
Nouveau -Brunswick, E2K I P9
Nom: Cao, Jia
Adresse : 142, rLle Highland, Saint Joliti,
NOLIV0,1U-1311111SWick, E2K I P9
(Youvernement local signifiant I'avis : The City of
Saint John
ArrW ent'reint : Arnle relatifmfx lieux inestUtiques
el oux hilliments el constructions clang roux de Saint
John, Assoc 1ILlulel-0 M-30, aiusi que ses modifications
ci-aff6teittes (F << Atr&td >>).
provision(s) contravened: SUbscctlous 60), 6(2) and Disposition(s) enfreinte(s) : Les pai-agi-aphes 60),
6(3) of the By-law. 6(2) et pai-agraphe 6(3) de I'Arr&t6.
Conditions(s) that exist: Tile premise is unsightly by
permitting; junk, rubbish, refuse and a dilapidated
building to i-emaiii oil the pt°emise. The building has
become a hazard to the safety of the public by reason of
being WICaut or unoccupied and has become a hazard to
the safety of the public by reason of dilapidation and by
I-eaSoll Of 1111SOUndiiess Of structural strength,. The
cotiditims of the building and premise are described in
Schedule "A", a true copy ofthe iusPecti0l' I-ePOl-1 dated
August 30, 2019 prepared by Catherine Lowe, ELT and
reviewed aud C011CUITOCI ill by Arny Poffeuroth, PEnz:1g.,
By-faw Eliforcemeut Officers.
What must be done to correct the condition: 'File
owner- is to remedy the conditions by complying; will' the
required remedial actions of' the aforementioned
inspection i-eportandbritig the building and premises into
Z-1
COMpliallCe with the aforesaid By-law.
11, the event that the owner- clues nett remedy the couditioll
ofthe building and pi-enuses ill the time prescribed by this
L,
Notice to Comply, the building may be demolishecl as the
corrective action to address the hazard to the safety ofthe
public and the premises may be cleaned Lip.
Description de la (des) situation(s) : Les helix sant
iiies(HtiqLICS ell pei,mettaut la presence cle fetraille, de
C16tLitlAS et le batitneut d6labi-6. Le N-ttiment est deVeTILI
daiigel-eUSC p0111- Vat s&urit6 du l)LlbhC CIU (',,tit de soil
inhabitation ou de son iiioccupation et est. deveml
Clall(lel'CUSe pOLll_ 1,1 S&L11-46 Chi public chl fait de soil
d6labi-emetit et (ILL fait de mauqUC cle sofidit6. Les
conditions du biltuncm et CleS fiCUX sunt d6crites a
]'annexe «A >>, Mie copic coif6rme CILI I'app011
d'iiispectiou ell (Lite clu 30 aoCit 2019 et pi-61)aL6 pan -
Catherine Lowe, IS ct revise et ell d"accol-de zlvec par
Amy Poffeuroth, ilia., ageiltes chai-ge dc I'CX6CLIti011
CICS airretes (,Ill L�IYOUNTI]Mllellt local.
Cc (lu'il y a lieu de faire pour y rcin6dier: La
pi-opi-i6taite Boit Lestatu-ei- les conditions en se
cotifol-maut aux recommaudatious du I'appOl't
d'irispectiou stisillentiom16 et d'amenej- le bi-itiment et
les lieux oil cotifonnit6s avec I'Arl-et6.
Dans 1'6veiituaht6 qLle la pl-Opfidtaire Ile I-C1116(fiCut pars
le b5timent et ICS lieL]x dans le tenips pi-esci-it par le
pr6sellt avis dc cotiforillit:6, le bfttilllCut pOL11T011t intl"e
de molis comme mesure corrective compte temi qLl'il
repr6seutc Lill I)OUr la s6cui,46 clu public et les
lieLIX p0111 -1 -Out Otl_e uettoy6s,
Iii the event of' detuolitiou, all c1cloi-is and items oil the Daus UVeutUalit6 de d6molitiou, taus les d6bris et
premises will be disposed of as the corrective aeti011 to aLltl_CS ItOMS Sill' ICS IiOLIX scrout dispos6s comme
The aforementioned remedial actions relating to the
demolition of the building and the disposal of debris and
items on the premises do not include the carry -out clean-
up, site rehabilitation, restoration of land, premises or
personal property or other remedial action in order to
control or reduce, eliminate the release, alter the manner
of release or the release of any contaminant into or upon
the environment or any part of the environment.
Date before which the condition must be corrected:'
a) The demolition of the building, clean-up of the
property and related remedies must be complete,
or plans and permit applications for repair related
remedies, must be submitted: within 45 days of
being served with the Notice to Comply.
b) The repair related remedies must be complete
within 120 days of being served with the Notice
to Comply.
Date for giving notice of appeal: Within 14 days of
being served with the Notice to Comply.
Process to appeal: The owner may within 14 days after
having been served with this Notice to Comply, send a
Notice of Appeal by registered mail to the Common Clerk
of The City of Saint John, City Hall — 8`r' Floor, 15 Market
Square, Saint John, New Brunswick, E2L 4L 1.
Potential penalty for not complying with notice within
time set out lin notice:' Subsection 11(1) of the By-law
states that a person who fails to comply with the terms of
a Notice to Comply given under section 7 of the said By-
law, commits an offence that is punishable under Part 2
of the Provincial Offences Procedure Act as a category F
offence.
Where an offence under subsection 1 I(l) continues for
more than one day, the minimum fine that may be
imposed is the minimum fine set by the Provincial
Offences Procedure Act for a category F offence
multiplied by the number of days during which the
offence continues pursuant to subparagraph 11(3)(b)(i).
Local government's authority to undertake repairs or
remedy:; Paragraphs 12(l)(a), 12(1)(b) and 12(1)(c) of
the By-law state that if an owner or occupier does not
comply with a Notice to Comply given under section 7
within the time set out in the said Notice, the City may,
rnesure corrective dans le but de remedier le danger
pour ]a securitd du public.
Les mesures correctives susmentionndes relativement a
la demolition du batiment et la disposition des debris et
autres items sur les lieux ne comprennent pas ie
nettoyage, la remise en etat des lieux, des terrains ou
des biens personnels ou toute autre mesure corrective
dans le but de controler ou de reduire, d'eliminer le
deversement, de modifier le mode de deversernent ou
le deversement d'un polluant dans ou sur
1'environnement ou toute partie de 1'environnement.
DOW imparti pour y remedier :
a) La ddrnolition du batiment et le nettoyage des
lieux doivent etre completees, ou a laquelle les
plans et demande de permis pour les mesures
des reparations, doivent etre soumises, dans les
45 jours qui suivent la signification de ]'avis de
conformite.
b) Les reparations reliees aux rnesures doivent
Etre completees dans les 120 jours qui suivent
la signification de Favis de conformite.
Date limite pour donner Favis d'appel: Dans les 14
jours qui suivent la notification de I'avis de
conformite.
Processus d'appel : La propridtaire peux dans les 14
jours qui suivent la notification de ]'avis de conformite,
envoys un avis d'appel par courrier recommandd a la
greffiere comtnunale de la municipalite, a The City of
Saint John, Edifice de ]'hotel de ville, 8` etage, 15
Market Square, Saint John, Nouveau -Brunswick, E2L
4L 1.
Peine possible en cas d'omission de se conformer
aux exigences de ]'avis dans le delai y imparti : 2 Le
paragraphe l 1(1) de I' Arrate prevoit quiconque ornet
de se conformer aux exigences formuldes dans un avis
de conformite notifie aux termer de ]'article 7 de ladite
Arrete, commet une infraction qui est punissable en
vertu de la partie 2 de la Loi sur la procedure
applicable aux infractions provinciales a titre
d'infraction de la classe F.
Lorsqu' une infraction prevue au paragraphe 11(]) se
poursuit pendant plus d'une journee, I'amende
minimale qui peut etre imposee est 1'amende minimale
prevue par la Loi stir la procedure applicable aux
infractions provinciales pour une infraction de la classe
F multipliee par le nombre de jours pendant lesquels
]'infraction se poursuit conformement a I'alinea
I I (3)b)i).
Pouvoir du gouvernement local d'entreprendre des
reparations ou de remedier a la situation :
Conformement aux alindas 12(1)a), 12(1)b) et 12(1)c)
de ]'Arrete, si un avis de confonrritd a ete signifre aux
termer de ]'article 7 de ladite Arrete et, que le
' "_' _`"____ ___ I•. .. ,....�...-.r ..... o nr.r.fr,rmw nic �l rad 91f11`
any associated charge or fee, is chargeable to the owner
or occupier and becomes a debt due to the City.
Dated at Saint John the_4fday of August, 2019
Local government: The City of Saint John
Signature of the officer of the local government:
nettoyer ou reparer les lieux de cc proprietaire ou de cet
occupant ou de faire reparer ou demolir ie batiment ou
autre construction de cc proprietaire ou de cet occupant,
et les coots afferents a 1'execution des ouvrages, y
compris toute redevance ou tout droit connexe, sont anis
a la charge du proprietaire ou de ]'occupant et
deviennent une creance de la rnunicipalite.
Fait a Saint John le — ao6t, 2019.
Gouvernement locale : The City of Saint John
Signature du fonctionnaire du gouvernement local:
Contact information of the officer of the local Coordonnees du fonctionnaire du gouvernement
government: local:
Name: Catherine Lowe, E1T
Mailing address:
Growth and Community Development Services
The City of Saint John
15 Market Square
City Hall Building, 10°i Floor
P. 4, Box 1971
Saint John, New Brunswick
E2L 4L I
Telephone: (506) 658-2911
E-mail: catherine.lowe@saintJohn.ca
Fax: (506) 632-6199
Corporate seal of the 1
Notes: o�ouI IS` --z'!;,:! "
1. All appropriate permits must "rblaaned `and all relevant
legislation must be complied with in the course of carrying out the
required remedial action.
Nom : Catherine Lowe, IS
Adresse postale:
Service de la Croissance et du Developpement
Communautaire
The City of Saint John
15 Market Square
Edifice de l'h6tel de ville, l0e etage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L 1
Telephone: (506) 658-2911
Adresse dlectronique: catherine.lowe@saint'ohn.ca
Telecopieur : (506) 632-6199
Sceau du gouvernement local
Notes :
1. Tous les permis prescrits doivent etre obtcnus et toule la
Idgisiation pertinente doit etre respectce pendant 1'exdcutiorn des
mesures de remediation.
2, Payment of the fine does not alleviate the obligation to comply 2. Le paiement de Pamendc Wa pas pour cffet d'annuler
with the by-law, standard or notice. ('obligation de se conformer a Parrctd, a la norme ou a ]'avis.
3. Costs become a debt due to the local government and may he 3. Les cools deviennent une creance du gouvernement local ct
added to the joint local government and provincial Real Property peuvent etre ajoutds i ]'avis common d'dvaluation ct d'imp8t
Assessment and Tax Notice. foncicr des gouvernements local et provincial.
142-144 Highland Road
Saint John, New Brunswick
PID# 55196711
this 5( clay LL4J
•,.
20 kq
t
ctondards Officer
Inspection Date: July 29, 2419
Inspection Conducted by: Catherine Lowe, EIT &
Vincent Chan, By-law Enforcement Officer
Introduction
Inspections of the property at 142-144 Highland Road, PlD# 55196711, have revealed
that there are two buildings on the premise (the "Buildings"); a two-storey, single family
dwelling (the "House"), and a two-storey, wood framed shed (the "Shed"). Staff first
became aware of the property's vacancy in February 2017 and began standard
enforcement procedures. The property is located on the City's North End in a two -unit
residential zone. The Buildings are a hazard to the safety of the public by reason of being
open, by reason of being vacant, and by reason of dilapidation. The Shed is a hazard to
the safety of the public by reason of unsoundness of structural strength.
Discussion
The Buildings are not in compliance with the Saint John Urtsightly Premises and
Dangerous Buildings and Structures By-law, By-law Number M-30, and amendments
thereto (the "By-law").
Unsightly Premise Conditions
Subsection 6(1) of the By-law states:
No person shall permit premises owned or occupied by him or her to be
unsightly by permitting to remain on any part of such pl'enllses
(a) any ashes, junk, rubbish or refuse;
(b) an accumulation of wood shavings, paper, sawdust or other residue of
production or construction;
(c) a derelict vehicle, equipment, machinery or the body of any part of a
vehicle equipment or machinery, or
(d) a dilapidated building.
There is an accumulation 01' junk, rubbish, and refuse on the property. These
items include, but are not limited to; a damaged mattress, a discarded blanket,
rotten pieces of wood, rusted metal barrels, tires, a green garden hose, a small
collapsed wooden shed, broken glass, exposed nails, as well as other various loose
garbage. There is also a large rusted metal satellite with a concrete base at the rear
of the property. The aforementioned accumulation of junk, rubbish, and refuse Is
unsightly.
2. The House is dilapidated. The paint oil the siding is peeling. The exposed sections
of the stone foundation are colored green due to algae growth. The right side and
rear entrance to the House have been found open. The door to the rear entrance
rests against the House. The door to the crawl space at the rear of the House has
been broken and removed; the door now lies on the ground. A window at the rear
of the House is covered with a plastic film. The screen of al window on the right
rear of the House is sticking out from the window frame. There is a rusted pulley
system on the right side of the House. These conditions are unsightly.
deteriorated and peeling. Windows on the right, ►ett, anu real V1 LW- 0111 u
missing glass, exposing the interior of the Shed to the elements. The stone
foundation of the Shed is crumbling. A section of foundation at the rear of the
Shed has partially failed, causing the left rear corner of the Shed to be
inadequately supported. The front wall and roof of the Shed is no longer plumb
but is sagging downward on the left and right side. These conditions are unsightly.
Vacant and Unoccupied
Subsection 6(2) of the By-law states:
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of the public by reason of
being vacant or unoccupied.
The Buildings are a hazard to the safety of the public by reason of being vacant or
unoccupied for the following reasons:
Buildings in a dilapidated condition that arc known to be open and vacant can
attract vandalism, arson and criminal activity. The property's condition affects
the quality of life of neighboring residents and negatively affects property
value of real estate in the area due to negative perceptions of unsafe and
deteriorating conditions. There are signs of trespassing in the Buildings as
some items appear intentionally broken and there are mattresses on the floor
in the living room of the House. There are two separate energy meters on the
House. Saint John Energy confirmed that power for 144 Highland Road was
disconnected in May 2015 and power for 142 Highland Road has been
disconnected since May 2018. The City of Saint John Finance department
confirmed that the water has been turned off since November 2015.
2. There is a higher risk of a fire event occurring at the property since it is known
to the public that the Buildings are vacant. There is a neighboring single
family home at 138 Highland Road that is currently vacant due to ongoing
renovations. If a fire event were to occur within the Buildings, could easily
spread to the neighboring property, which could cause significant damage to
the building. In addition, since both of these buildings are vacant, a fire may
not be detected right away. This could allow the blaze to intensify and become
out of control.
3. There is a concern for emergency personnel safety in the event of an
emergency. If firefighters suspect there may be people inside the House, it
would be reasonable to expect they may be required to enter it. They may also
need to enter the House to fully extinguish the fire. The condition of the
interior is not known to firefighters, which poses a hazard to their safety and
others who may be inside in the event of a mire. Household items, broken
glass, garbage and other debris cover the floors inside the House. There is a
mattress lodged in the front stairwell leading to the second storey. These
conditions are hazardous as they could hinder the movement of emergency
personnel or anyone else inside the House during an emergency.
4. The two-storey Shed is open and accessible to the public. Emergency
personnel may be required to enter the Shed if they suspect there may be
people on the second storey of the Shed. The first storcy of the Shed is filled
with discarded items and junk. The stairs leading to the second storcy do not
meet the National Building Cade q%' Canada standards and therefore would be
hazardous during an emergency event. The Shed is also structurally unsound,
i_.. i-ra — –ar n f thn .ChwCi iv. not nronerly supported. This is a hazard to
Subsection 6(3) of the By-law states
No person shall permit a building or other structure owned or occupied by
the person to become it hazard to the safety of the public by reason of
dilapidation or unsoundness of structural strength.
The Buildings are a hazard to the safety of the public by reason of dilapidation for the
following reasons:
The House is dilapidated. The ceiling of the kitchen on the first storey is
sloped and stained from water damage. This is likely due to water leaking
front the second storey bathroom. The flooring around the toilet in this
bathroom is warped, suggesting water damage. Floors can become soft and
unsound due to water damage and can fail under load.
2. The rear staircase that provides access to the only the second Storey of the
House is sloped. This may be caused by a shift in the House or the foundation,
which could indicate structural unsoundness of the House. On the first storey,
there is a small storage area beneath the staircase that is deteriorated and
shows signs of rot. This may be due to water damage, which could worsen the
condition of the stairs as well as this section of wall of the House.
3. The House has been open to the pubiic for a number of years as the right side
and rear doors to the House have remained open and unsecured. The door
leading to the crawl space of the House has also been open, providing access
to the House's foundation, and electrical and plumbing equipment. The
interior condition of the House suggests that it has been vandalised. There is
household items, garbage, and other junk strewn throughout the House. There
are also piles of broken glass in sections of the House that appear to be front
broken dishes. Furniture such as mattresses and conches have been upturned
and damaged. Trespassers are a hazard to tite safety of the neighborhood.
These conditions could also give rise to pest and rodent infestation, creating it
nuisance to neighbors and increasing the dilapidation of the House.
4. The Shed is dilapidated and has remained open for a number of years. The
doors are damaged and cannot be closed. The first storey of the Shed is filled
with discarded items and junk. There are many wooden boards with exposed
nails on the second storey of the Slled. Exterior siding along the base of the
Shed is rotten. The roof shingles are worn and peeling. High winds could
dislodge the shingles, creating a hazard for people or property in the area. The
front wall and roof of the Shed is sagging, suggesting structural issues. This is
also evident at the left rear corner of the Shed where the stone foundation has
failed and left this section of the Stied improperly supported. These conditions
could cause the Shed to fail, which would be hazardous for anyone in or
around the Shed.
Structurally Unsound Building Conditions
Subsection 6(3) of the By-law states
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of the public by reason of
dilapidation or unsoundness of structural strength.
The Shed is a hazard to the safety of the public by reason of unsoundness of structural
�trwnath for the following reasons:
Sections of the rear stone wall tounctanon nave taiuwu. ► &A- 1414 =�. ��•••
the Shed rests on only one stone block that is deteriorated. The remaining
stone foundation is crumbling. Tile left rear section of the Shed could collapse
if the Stied is left in this condition.
Required Remedial Actions
The owner must comply with one of the two options stated below:
Option 1: Remedy the conditions of the Buildings through all repair and remedial actions
as follows:
I. The Buildings must be completely repaired to remedy the above mentioned
hazards to public safety while meeting the requirement~ of the National Building
Code of Canada (2010) as well as all other applicable by-laws.
2. The Buildings must be maintained, kept secure, and monitored on a routine basis
while the property remains vacant or unoccupied.
3. A detailed plan must be submitted to the Growth and Community Development
Services Department of the City of Saint John (the "Department") for review and
approval. The plan should also include a schedule for the work that is to be
carried out. The repaired Buildings must meet the National Building Coda (?f
Canada (2010) as well as other applicable codes.
4. The detailed plan, including schedules and any engineering reports, must be
approved by the Department prior to commencing repair work.
5. A building permit must be obtained for any and all applicable work prior to
commencing said work from the City of Saint John in order to comply with the
Saint John Building By-larv, By-law Number C.P. 102 and alliendlilents thereto
(the "Suint John Building By-la+v").
6. The premise must be cleared of all debris found on the property, including any
and all rubbish that may be considered hazardous or unsightly. The debris from
the premise must be disposed of at an approved solid waste disposal site, in
accordance with all applicable by-laws, acts and regulations. Documented proof,
that clearly demonstrates an approved solid waste disposal site was used for the
disposal of debris, must be provided to the Department. The premise "lust comply
with all applicable By-laws, Acts, Codes and Regulations.
Option 2: Demolition of the Buildings and cleanup of all debris on the premise by
complying with all the remedial actions as follows:
1. The Buildings must be demolished to remove the hazard to the safety of the
public by reason of dilapidation and by reason of being vacant or unoccupied.
2. A demolition permit must be obtained frons the City of Saint John in order to
comply with the Saint John Building By-la1•v.
3. The premise must be cleared of the debris from the demolition and the lot must be
made reasonably level with grade so as to not create a tripping or falling hazard.
All debris must be disposed of at an approved solid waste disposal site, and in
accordance with all applicable By-law~, Acts and Regulations. Documented
proof, that clearly demonstrates an approved solid waste disposal site was used for
the disposal of debris, must be provided to the Department.
A Ail A_1-;; tl,nt is rirrrr.nYly on the Dremtse must be removed and disposed of at all
5. The property must be in compliance with all applicable By-laws, Acts and
Regulations.
Prepared by:
CCS. -CA -mac-{-
Catherine Lowe, EIT Date
Technical Services Officer
Growth and Community Development Services
Reviewed by and concurred in by:
Amy Poffenrot , P. Eng., MBA
Building Inspector
Deputy Commissioner
Growth and Community Development Services
Date
FORMULE I
FORM 1
- - -- --g- , AVIS DIAPPEL
NOTICE OF APPEAL Cof�mjsioner of Oath's
file �'ile No.:
BETWEEN:
Appellant(s),
- Mid -
THE CITY Of, SAINT JOHN,
Respolidelit.
Parcel Identifier: PID 4
Parcel Address:
Owiler(s) or Occupier(s):
Name:
Address:
Telephone:
Name:
Address:
Telephone:
N" du dossier :
E NTI2 E :
Appelant(s),
- et -
THE CITY Of, SAINTJOHN,
Intim6e.
NUm&o d'identificatiori de la parcelle: 4 NID
Adresse de la parcelle :
Proprletaire(s) OLI occupant(s):
Nom :
Adresse --
T&plione:
Nom :
Adresse :
T616plione:
Tlie above named appellant(s) is (are) not satisfied [..,'appelant ou les appelants SLIS1101111116(S) Waccepte(rit)
with the terms and conditions set out III: pas les modallt6s OU les conditions qui sant a nonc6s
(falls :
(a) a Notice that was giVen Under section 7 of the (a) Lill AVIS qui as 6t6 donn6 ell vertu de Particle 7 de
S(iint khn (Insiglal.l.) Premises and D(mgemus IAri-r Ic relca�f (nix lieux ineslh&iques el aux
Buil(lings and Structures BJ)-Lmv,- or btitin7ents et (,.,ojjstj-jteijons dungei-eux clans The
City raj 'Sointdohn; OLI
(h) all Order that was issued Under section 25 cat the (b) Line ORDONNANc'ii (pUi a W 6111ise ell vertu de
S(finl John Minitnum Proj)ei,-t1V Shindai-cls BY- I'article 25 de I'Ai,retc conccrn(nit les noi-mes
Lcnv; /),I in im (Iles 1-cgisscnit les rc sidences cleScibilJohn
and flierefore appeals to the Saint John Substeindard et fait ainsi appel devant le Comite des al)j)els, sur les
Proj)erties Aj)peal Comniftee. residences non conAP-mes aux norines deS(finlJohn.
Tlie appellant's grounds for this appeal are as l'oHows Les motifs d'appel de I'apliclant(s) dans le pr6sent
Dated at
20
Signature of owner or occupier
the day of Fait a
The appellant(s) intends to proceed in the English [ ]
or French [ ] language (Please check the appropriate
box).
Please forward your Notice of Appeal by registered
mail to the Common Clerk within fourteen (14) clays
after having been given the Notice or Order at the
following address:
Common Clerk's Office
15 Market Square, City Hall Building, 8`E' Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L 1
Telephone: 506-658-2862
Facsimile: 506-674-4214
Notes:
1. A Notice or Order that is not appealed within
fourteen (14) days after having been given or issued
shall be deemed to be confirmed.
2. On an appeal, the Saint John Substandard
Properties Appeal Committee shall hold a hearing
into the matter at which the owner(s) or occupier(s)
bringing the appeal has (have) a right to be heard and
may be represented by counsel.
3. On an appeal, the Saint John Substandard
Properties Appeal Committee may confirm, modify
or rescind the Notice or Order, or extend the time for
complying with the Notice or Order.
4. The Saint John Substandard Properties
Appeal Committee shall provide a copy of its
decision to the owner(s) or occupier(s) of the
premises, building or structure who brought the
anneal within fourteen (14) days after making its
20
Signature du proprietaire ou de 1'occupant
le
L'appelant a ou les appelants ont ]'intention d'utiliser la
langue fraise ou anglaise [ ] (Veuillez cocker la
case appropriee).
Vettillez faire parvenir votre AVIS D'APPEL par courrier
recomnzande au greffier communal dans les quatorze
(14) fours qui suivent la notification de VAVIS ou de
l 'ORDONNANCE 6 1 'adresse suivante :
Bureau du greffier communal
15 Market Square, Edifice de 1'h6tel de ville, 8` ctage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L 1
Telephone : 506-658-2862
Facsimile : 506-674-4214
Notes :
1. Un AVIS ou une ORDONNANCE dant it West pas
interjete appel dans les quatorze (14) jours qui suivent
la notification de I'AVIS ou 1'emission de
l'ORDONNANCE est repute confinne.
2. Lors d'un appel, le Comite des appels stir les
residences non conformes aux normes de Saint John
doit tenir, sur le point en litige, une audience au tours
de laquelle le(s) proprietaire(s) ou ('occupant ou les
occupants qui interjette(nt) appel a (ont) le droit d'etre
entendu(s) et peut (peuvent) se faire representer par un
avocat.
3. Lors d'un appel, le Comite des appels sur les
residences non conformes aux normes de Saint John
petit confirmer, modifier ou annuler I'AVIS ou
1'ORDONNANCE ou proroger le delai pour s'y conformer.
4. Le Comite des appels sur les residences non
conformes aux normes de Saint John doit fournir une
copie de sa decision au(x) proprietaire(s) ou a
]'occupant ou aux occupants des lieux, du batiment ou
de la construction qui lui a (ont) interjete appel dans les
5. The owner(s) or occupier(s) who is provided
with a copy of a decision from the Saint John
Substandard Properties Appeal Committee regarding
a Notice, may appeal the decision to a judge of The
Court of Queen's Bench of New Brunswick within
fourteen (14) clays after the copy of the decision was
provided to the owner(s) or occupier(s) on the
grounds that (a) the procedure required to be
followed by the by-law was not followed, or (b) the
decision is unreasonable.
5. Le(s) proprietaire(s) ou I'occiipant ou les
occupants a qui une copie d'une decision a dtd fournie
par le Comite des appels sur les residences non
conformes aux normes de Saint John concernant un
AVIS peut (peuvcnt), dans les quatorze (14) jours qui
suivent, interjeter appel de la decision devant un juge de
la Cour du Banc de la Reine du Nouveau -Brunswick au
motif que (a) la demarche a suivre en vertu de Farretd
n'a pas ete suivic, ou (b) la decision est ddraisonnable.
CANADA
PROVINCE OF NEW BRUNSWICK
COUNTY OF SAINT JOHN
IN THE MATTER OFTHE BUILDING THAT IS LOCATED AT
SAINT JOHN, N.B. (PID number
AFFIDAVIT OF SERVICE
1, )bcjav) _jnk(kj"� of Saint John, N.B., Make Oath And Say As Follows:
1. 1 am employed by The City of Saint John in its Growth and Community Development
Services Department. I have personal knowledge of the matters herein deposed except
where otherwise stated.
j ) e
On 1, at approximately I I ( �?p —, I posted a
copy of the attached Notice of Common Council Hearing letter, marked Exhibit "A"
to the front door of the building that is located at q 7 jj&,qj Pj Saint
John, N.B.
Sworn To before me at the
City of Saint John, N.B.,
on the day of
_6E,itr -, 2019
RACHEL A VAN WARI
COMMISSIONER OF OATHS
My COMMISSION EXPIRES
DECEMBER 31s", 2022
i F-11 i
f
October 31, 2019
Permitting & Inspection / Service des inspections et de I'application
By -Law Enforcement / Service d'Application des Arrk6s Municipaux
Phone/ T61: (506)658-2911
Fax / T06c. (506) 632-6199
Case Number: 18-0317
VIA REGISTERED MAIL
Hui Lin & Jia Cao
142 Highland Rd
Saint John, NB
E2K I P9
This is Exhibit A
Referred to in the Affidavit of
:����Sworn before
�MeattheC��of
Saint John, New Brunswick
the day of
Dear Sir/Madarn: NOTICE OF COMMON COUNCIL HEARING
Re: 142 Highland Rd, PID 4 55196711
Dangerous and Vacant Building Program
On August 30, 2019, a Notice to Comply was issued for the abov,c mentioned property which
required remedial action to bring the building and premises into compliance with the Sainl John
(,'nsightly Premises anct Dangerou.s, Br(jj(hn unci ,5"17 --uclza
es By-lcm, The Notice to Comply was
posted on the said property on September 19, 2019,
"I"he fourteen (14) days appeal period has now expired. Therefore, a compliance inspection will be
carried out on November 4, 2019, If the property is not in compliance with the aforesaid By-law at
the time of the inspection, City Staff will be attending the Common Council meeting scheduled on
November 18, 2019 at 6:00 p.m. to recommend that the building be demolished because it has
become a hazard to the safety of the public by reason of dilapidation or by reason of unsoundness
of structural strength. Please be advised that at this meeting, you can present evidence that the
building is not dilapidated or structurally unsound; however, note that this meeting will be your
only opportunity to do so.
If you have any questions, don't hesitate to contact me at (506) 658-2911.
Regards,
Rachel Van Wart, P.Eng
Standards Officer
The Royal Bank of Canada
P.O. Box 1971 C.P. 1971
Sacra John, NB Saint John, N, -B.
Canada E2L4L1 Canada E21_41_1
wwwsaintjohn.ca
182
I
I
I
I
I
I
COUNCIL REPORT
M&C No.
2019-294
Report Date
November 08, 2019
Meeting Date
November 18, 2019
Service Area
Growth and Community
Development Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Demolition of vacant, dilapidated and dangerous building at 47-49
Broad Street (PID 00000778)
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Rachel Van Wart
J Hamilton /A Poffenroth
John Collin
RECOMMENDATION
RESOLVED, that the building located at 47-49 Broad Street, PID# 00000778, is to
be demolished as it has become a hazard to the safety of the public by reason of
dilapidation; and
BE IT FURTHER RESOLVED, that the building is to be demolished as it has become
a hazard to the safety of the public by reason of unsoundness of structural
strength; and
BE IT FURTHER RESOLVED, that one or more by-law enforcement officers
appointed and designated underthe Saint John Unsightly Premises and Dangerous
Buildings and Structures By-law are hereby authorized to arrange for the
demolition, in accordance with the applicable City purchasing policies.
EXECUTIVE SUMMARY
The purpose of this report is to advise Council that a Notice to Comply was issued
under Part 13 of the Local Governance Act for the building at 47-49 Broad Street.
The hazardous conditions outlined in the Notice have not been remedied by the
owners within the required time frame and staff is looking for authorization from
Council to arrange the demolition of the building.
PREVIOUS RESOLUTION
N/A
-2 -
REPORT
Inspections of the property at 47-49 Broad Street, PID# 00000778, have revealed
that there is one building on the premise; a two-storey, three -unit apartment
building. The building is currently assessed at $48,800. Staff first became aware of
the property's vacancy in February 2018 and began standard enforcement
procedures. The property is located in the South Central Peninsula in an urban -
centre residential zone. The Building is a hazard to the safety of the public by
reason of being vacant, by reason of dilapidation and by reason of unsoundness
of structural strength.
For the reasons described in the attached Inspection Report, a Notice to Comply
was issued on October 2, 2019 and was and was posted to the building on October
4, 2019, as per section 132(3) of the Local Governance Act that outlines acceptable
methods of service. The Certificate of Registered Ownership lists two individuals
as the owners; however the property owners refuse responsibility for the property
due to bankruptcy. The bankruptcy trustees were also personally served with a
copy of the Notice. The Notice provided the owners with 30 days to remedy the
conditions at the property. The owners did not file a formal appeal and did not
take remedial action to comply with the requirements of the Notice. A compliance
inspection was conducted on November 8, 2019 which revealed that the
conditions which gave rise to the Notice have not changed since the Notice was
issued.
Attached for Council's reference is the Notice to Comply that was issued and the
affidavit attesting to service. Also included are photographs of the building. The
Local Governance Act indicates that where a Notice to Comply has been issued
arising from a condition where a building has become a hazard to the safety of the
public by reason of dilapidation or unsoundness of structural strength, the
municipality may cause the building to be demolished. As required in the Act a
report from an engineer is attached, forming part of the issued Notice to Comply,
and provides the evidence to the buildings' vacancy, dilapidation, unsoundness of
structural strength and resulting hazard to the safety of the public. A copy of the
letter advising of the Common Council Hearing date and affidavit is attached; it
was posted to the building on November 8, 2019 and sent to the owners via
registered mail on November 8, 2019.
STRATEGIC ALIGNMENT
Enforcement of the Saint John Unsightly Premises and Dangerous Buildings and
Structures By-law aligns with Council's Vibrant, Safe City priority.
SERVICE AND FINANCIAL OUTCOMES
As is written in the Local Governance Act that a municipality must commence in
the proceedings of remedial action, approval of Common Council is required prior
`11106%,
to starting demolition activities at the property. Total cost of the demolition work
is approximated at $15,000 and will take about 4-5 weeks before it is complete.
Staff will seek competitive bidding in accordance with the City's purchasing policy
and the cost of the work will be billed to the property owner. If the bill is left
unpaid, it will be submitted to the Province with a request for reimbursement.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City Solicitor's Office provided ownership verification by obtaining the
Certificate of Registered Ownership for the property. Additionally, the City
Solicitor's Office registered the Notice to Comply with Service New Brunswick's
Land Registry.
ATTACHMENTS
Notice to Comply
Affidavit of Posting - Notice to Comply
Affidavit of Posting - Notice of Common Council Hearing Letter
Photos
`&OW
Parcel identifier:
PID #00000778
Address: 47-49 Broad Street, Saint John, New
Brunswick
Owner(s) or Occupier(s):
Name: Losier, Joseph Gerard
Address: 19 Cranberry Hill, Saint John, New
Brunswick, E2K 5E4
Name: Losier, Vanessa Eileen
Address: 19 Cranberry Hill, Saint John, New
Brunswick, E2K 5E4
(Loi sur la gouvernance locale,
L.N.-B. 2017, ch. 18, par. 132(2))
Numero d'identification de la parcelle :
NID :00000778
Adresse : 47-49, rue Broad, Saint John,
Nouveau -Brunswick
Proprietaire(s) on occupant(s) :
Nom: Losier, Joseph Gerard
Adresse : 19 Cranberry Hill, Saint John,
Nouveau -Brunswick, E2K 5E4
Nom : Losier, Vanessa Eileen
Adresse : 19 Cranberry Hill, Saint John,
Nouveau -Brunswick, E2K 5E4
Local government giving notice: The City of Saint Gouvernement local signifiant Pavis : The City of
John Saint John
By-law contravened: Saint John Unsightly Premises
and Dangerous Buildings and Structures By -Law, By-
law Number M-30 and amendments thereto (the `By-
law").
Arrete enfreint : Arrete relatif aux lieux inesthetiques
et aux batiments et constructions dangereux de Saint
John, Arrete numdro M-30, ainsi que ses
modifications ci-affdrentes (1' o Arrete »).
Provision(s) contravened: Subsections 6(1), 6(2) and Disposition(s) enfreinte(s) : Les paragraphes 6(1),
6(3) of the By-law. 6(2) et paragraphe 6(3) de i'Arretd.
Conditions(s) that exist: The premise is unsightly by
permitting junk, rubbish, refuse and a dilapidated
building to remain on the premise. The building has
become a hazard to the safety of the public by reason of
being vacant or unoccupied and has become a hazard to
the safety of the public by reason of dilapidation and by
reason of unsoundness of structural strength. The
conditions of the building and premise are described in
Schedule "A", a true copy of the inspection report dated
September 25, 2019 prepared by Rachel Van Wart,
P.Eng, By-law Enforcement Officer and reviewed and
concurred in by Amy Poffenroth, P. Eng., By-law
Enforcement Officer.
What must be done to correct the condition: The
owner is to remedy the conditions by complying with
the required remedial actions of the aforementioned
inspection report and bring the building and premises
into compliance with the aforesaid By-law.
In the event that the owner does not remedy the
condition of the building and premises in the time
prescribed by this Notice to Comply, the building may
be demolished as the corrective action to address the
hazard to the safety of the public and the premises may
be cleaned up.
Description de la (des) situation(s) : Les lieux sont
inesthetiques en permettant la presence de ferraille,
de detritus et le batiment ddlabrd. Le batiment
est devenu dangereuse pour la sdcurite du public du
fait de son inhabitation ou de son inoccupation et est
devenu dangereuse pour la securite du public du fait
de son ddlabrement et du fait de manque de soliditd.
Les conditions du batiment et des lieux sont ddcrites a
i'annexe <<A », une copie conforme du rapport
d'inspection en date du 10 juin 2019 et prepare par
Rachel Van Wart, ing, agente charge de 1'exdcution
des arretes du gouvernement local et rdvisd et en
d'accorde avec par Amy Poffenroth, ing., une agente
chargde de 1'ex6cution des arretds du gouvernement
local.
Ce qu'il y a lieu de faire pour y remedier: La
propridtaire Boit restaurer les conditions en se
conformant aux recommandations du rapport
d'inspection susmentionnd et d'amener le batiment et
les lieux en conformitds avec 1'Arrete.
Dans 1'6ventualite que la propridtaire ne remedient pas
le batiment et les lieux dans le temps prescrit par le
prdsent avis de conformitd, le batiment pourront etre
ddmolis comme mesure corrective compte tenu qu'il
reprdsente un danger pour la sdcuritd du public et les
lieux pourront etre nettoyds.
premises will be disposed of as the corrective action to
address the hazard to the safety of the public.
The aforementioned remedial actions relating to the
demolition of the building and the disposal of debris and
items on the premises do not include the carry -out clean-
up, site rehabilitation, restoration of land, premises or
personal property or other remedial action in order to
control or reduce, eliminate the release, alter the manner
of release or the release of any contaminant into or upon
the environment or any part of the environment.
autres items sur les lieux seront disposes comme
mesure corrective dans le but de remddier le danger
pour la sdcuritd du public.
Les mesures correctives susmentionndes relativement
A la demolition du batiment et la disposition des debris
et autres items sur les lieux ne comprennent pas le
nettoyage, la remise en stat des lieux, des terrains ou
des biens personnels ou toute autre mesure corrective
dans le but de controler ou de reduire, d'dliminer le
ddversement, de modifier le mode de deversement ou
le deversement d'un polluant dans ou sur
1'environnement ou toute partie de 1'environnement.
Date before which the condition must be corrected: 1 Delai imparti pour y remedier : 1
a) The demolition of the building, clean-up of the
property and related remedies must be complete,
or plans and permit applications for repair
related remedies, must be submitted: within 30
days of being served with the Notice to Comply.
b) The repair related remedies must be complete
within 120 days of being served with the Notice
to Comply.
a) La demolition du batiment et le nettoyage des
lieux doivent titre compldtdds, ou a laquelle
les plans et demande de permis pour les
mesures des reparations, doivent etre
soumises, dans les 30 jours qui suivent is
signification de Favis de conformitd.
b) Les reparations relides aux mesures doivent
etre completees dans les 120 jours qui suivent
la signification de Pavis de conformitd.
Date for giving notice of appeal: Within 14 days of Date limite pour donner Pavis d'appel: Dans les 14
being served with the Notice to Comply. jours qui suivent la notification de Favis de
conformitd.
Process to appeal: The owner may within 14 days after
having been served with this Notice to Comply, send a
Notice of Appeal by registered mail to the Common
Clerk of The City of Saint John, City Hall — 8`h Floor, 15
Market Square, Saint John, New Brunswick, E2L 4L1.
Potential penalty for not complying with notice
within time set out in notiee:2 Subsection 11(1) of the
By-law states that a person who fails to comply with the
terms of a Notice to Comply given under section 7 of
the said By-law, commits an offence that is punishable
under Part 2 of the Provincial Offences Procedure Act
as a category F offence.
Where an offence under subsection 11 (1) continues for
more than one day, the minimum fine that may be
imposed is the minimum fine set by the Provincial
Offences Procedure Act for a category F offence
multiplied by the number of days during which the
offence continues pursuant to subparagraph 11(3)(b)(i).
Local government's authority to undertake repairs
or remedy:3 Paragraphs 12(1)(a), 12(1)(b) and 12(1)(c)
of the By-law state that if an owner or occupier does not
comply with a Notice to Comply given under section 7
within tha times eat nrnt in tha eairl Mntica tha ("itxr may
Processus d'appel : La propridtaire peux dans les 14
jours qui suivent la notification de l'avis de
conformitd, envoys un avis d'appel par courrier
recommandd a la greffiere communale de la
municipalitd, a The City of Saint John, Edifice de
1'h6tel de ville, 8e stage, 15 Market Square, Saint
John, Nouveau -Brunswick, E2L 4LL
Peine possible en cas d'omission de se conformer
aux exigences de Pavis dans le delai y imparti : 2
Le paragraphe 11(1) de 1' Arretd prdvoit quiconque
omet de se conformer aux exigences formuldes dans
un avis de conformitd notifid aux termes de Particle 7
de ladite Arretd, commet une infraction qui est
punissable en vertu de la partie 2 de la Loi sur la
procedure applicable aux infractions provinciales a
titre d'infraction de la classe F.
Lorsqu'une infraction prdvue au paragraphe 11(1) se
poursuit pendant plus d'une journee, 1'amende
minimale qui peut etre imposde est 1'amende
minimale prdvue par la Loi sur la procedure
applicable aux infractions provinciales pour une
infraction de la classe F multiplide par le nombre de
jours pendant lesqueis Finfraction se poursuit
conformdment a Palinda 11(3)b)i).
Pouvoir du gouvernement local d'entreprendre des
reparations on de remedier a la situation : 3
Conformdment aux alindas 12(1)a), 12(1)b) et 12(1)c)
de 1'Arretd, si un avis de conformitd a ete signifid aux
termPe ria Particle 7 rhe ladite ArrkA et mit-, le
states that the cost of carrying out such work, including
any associated charge or fee, is chargeable to the owner
or occupier and becomes a debt due to the City.
n
Dated at Saint John th day of October, 2019
Local government: The City of Saint John
Signature of the officer of the local government:
paragraphe 12(3) de ladite Arret6, la municipalit6 peut
faire nettoyer ou r6parer les lieux de ce propri6taire ou
de cet occupant ou de faire r6parer ou d6molir le
batiment ou autre construction de ce proprietaire ou de
cet occupant, et les coots aff6rents a 1'ex6cution des
ouvrages, y compris toute redevance ou tout droit
connexe, sont mis a la charge du propri6taire ou de
l'occupant et deviennent une cr6ance de la
municipalit6.
Fait a Saint John le octobre, 2019.
Gouvernement locale : The City of Saint John
Signature du fonctionnaire du gouvernement local:
Contact information of the officer of the local Coordonn6es du fonctionnaire du gouvernement
government: local:
Name: Rachel Van Wart, P.Eng.
Mailing address:
Growth and Community Development Services
The City of Saint John
15 Market Square
City Hall Building, 10`h Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L1
Telephone: (506) 658-2911
E-mail rache „van art c lain ohn.ca
Fax: (506) 632-6199
Corporate seal of the loc
Notes:
thi itiu!adFX
1. All appropriate permits must be` ' �y�'`m� ittd all relevant
legislation must be complied with in the course of carrying out the
required remedial action.
Nom: Rachel Van Wart, ing.
Adresse postale:
Service de la Croissance et du D6veloppement
Communautaire
The City of Saint John
15 Market Square
Edifice de I'hdtel de ville, 1 O 6tage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L1
T616phone : (506) 658-2911
Adresse 6lectronique: rach_el.vanwari ct�salr ohn ca
T616copieur : (506) 632-6199
Sceau du gouvernement local
Notes :
1. Tous les permis prescrits doivent Etre obtenus et toute la
legislation pertinente doit etre respectee pendant 1'ex6cution des
mesures de remediation.
2. Payment of the fine does not alleviate the obligation to comply 2. Le paiement de 1'amende n'a pas pour effet d'annuler
with the by-law, standard or notice. ]'obligation de se conformer a 1'arrete, a la norme ou a ]'avis.
3. Costs become a debt due to the local government and may be 3. Les coots deviennent une creance du gouvernement local et
added to the joint local government and provincial Real Property peuvent etre ajout6s a ('avis commun d'6valuation et d'imp6t
Assessment and Tax Notice. foncier des gouvernements local et provincial.
4 /-4y 15roau a reef Ln►S �
Saint John, New Brunswick
PID# 00000778 �--
r Officer
Inspection Date: August 20, 2019
Inspection Conducted by: Catherine Lowe, EIT & Rachel Van Wart, P.Eng.
Introduction
Inspections of the property at 47-49 Broad Street, PID# 00000778, have revealed that
there is one building on the premise (the "Building"); a two-storey, three -unit apartment
building. Staff first became aware of the property's vacancy in February 2018 and began
standard enforcement procedures. The property is located in the South Central Peninsula
side in an urban -centre residential zone. The property owners refuse responsibility for the
property due to bankruptcy. Attempts were made to contact any other party that may have
interest in the property, however attempts were unsuccessful. For this reason, an entry
warrant was obtained in order to conduct an internal inspection to assess the interior
conditions of the Building. The Building is a hazard to the safety of the public by reason
of being vacant, by reason of dilapidation and by reason of unsoundness of structural
strength.
Discussion
The Building is not in compliance with the Saint John Unsightly 'remises and
Dangerous Buildings and Structures By-law, By-law Number M-30, and amendments
thereto (the `By-law").
Unsightly Premise Conditions
Subsection 6(1) of the By-law states:
No person shall permit premises owned or occupied by him or her to be
unsightly by permitting to remain on any part of such premises
(a) any ashes, junk, rubbish or refuse;
(b) an accumulation of wood shavings, paper, sawdust or other residue of
production or construction;
(c) a derelict vehicle, equipment, machinery or the body of any part of a
vehicle equipment or machinery, or
(d) a dilapidated building.
1. There is an accumulation of junk, rubbish, and refuse on the property. These
items include, but are not limited to; discarded wood, a lawn mower, a wooden
dresser, a broken door, dilapidated steps, as well as other bagged and loose
garbage. Based on previous inspections, it is likely that the overgrown foliage is
covering other items. The aforementioned accumulation of junk, rubbish, and
refuse is unsightly.
2. The Building is dilapidated. The wooden shingle siding is peeling and shingles are
missing in numerous locations. The front door providing access to the second
floor is boarded. Windows are open with broken glass hanging. The wooden soffit
at the rear courtyard of the Building is rotten and missing in sections. The awning
over a rear entrance doors is rotten. The carport on the left side of the Building is
dilapidated. Pieces of thin plywood are loosely attached to the tops of the support
Subsection 6(2) of the By-law states:
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of the public by reason of
being vacant or unoccupied.
The Building is a hazard to the safety of the public by reason of being vacant or
unoccupied for the following reasons:
Ownership is currently caught up in bankruptcy proceedings. It is acknowledged that the
registered property owners are proceeding through bankruptcy.
1. Buildings in a dilapidated condition that are known to be vacant can attract
vandalism, arson and criminal activity. The property's condition affects the
quality of life of neighboring properties and negatively impacts property value
of real estate in the area due to negative perceptions of unsafe and
deteriorating conditions. The registered owners refuse responsibility as the
property is part of a bankruptcy claim. No other party has come forward to
claim care and control of the property. There is evidence of vandalism within
the Building. Wiring and piping have been stripped throughout the units with
missing and broken drywall. Saint John Energy confirmed that the power has
been disconnected since October 2017. The City of Saint John Finance
department confirmed that the water has been turned off since May 2016.
2. There is a higher risk of a fire event occurring at the property since it is known
to the public that the Building is vacant. The Building is located beside an
office located at 43 Broad Street. If a fire event were to occur within the
Building, it could easily spread to the neighboring property, which could
cause significant damage to the building and endanger the lives of the
occupants.
3. There is a concern for emergency personnel safety in the event of an
emergency. If firefighters suspect there may be people inside the Building, it
would be reasonable to expect they may be required to enter it. The condition
of the interior is not known to firefighters, which poses a hazard to their safety
and others who may be inside in the event of a fire. Walls and ceilings
throughout the Building are damaged, the drywall and other material covers
the floors. The floors and ceilings in the Building are sloped. These conditions
would be hazardous for any emergency responders required to enter the
Building.
Dilapidated & Structurally Unsound Building Conditions
Subsection 6(3) of the By-law states
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of the public by reason of
dilapidation or unsoundness of structural strength.
The Building is a hazard to the safety of the public by reason of dilapidation and
unsoundness of structural strength for the following reasons:
Exterior Conditions:
1. The Building is dilapidated. The wooden shingle siding is peeling and
shingles are missing in numerous locations. The front door providing access to
door is rotten and dilapidated. Deteriorated pieces of the tsuuamg couia
dislodge and potentially cause damage to property or harm anyone near the
Building.
2. The carport on the left side of the Building is dilapidated. Pieces of thin
plywood are loosely attached to the tops of the support members lining the
left -side property line.
Interior Conditions:
3. There is water damage on second floor of the Building with hanging drywall
and loose insulation covering the floor. There is peeling paint throughout the
surfaces in the Building. On the second storey, there are water damaged floors
with dark water stains between floor boards. These conditions are evidence of
the dilapidation of the Building.
4. Numerous rooms within the Building are in a state of disrepair inappropriate
for habitation. Numerous wails and ceilings are missing drywall or plaster;
exposing wooden framing members, insulation and electrical wires.
5. It appears as though structural repairs have been made to the Building in the
ground floor unit without an approved Building Permit. This work cannot be
confirmed if it meets the National Building Code of Canada. A wooden beam
has been installed in lieu of a stud wall spanning the length of the living room,
in addition to a series of doors installed on the right side wall of the Building.
6. There is evidence of structural movement and unsoundness within the interior
of the Building. Floors within the Building are sloped. There are significant
cracks spanning entire walls, in addition to other cracked drywall/ plaster
locations. The ceiling on the ground floor unit is sloping. Numerous door
frames within the Building are severely crooked.
Required Remedial Actions
The owner must comply with one of the two options stated below:
Option 1: Remedy the conditions of the Building through all repair and remedial actions
as follows:
1. The Building must be completely repaired to remedy the above mentioned
hazards to public safety while meeting the requirements of the National Building
Code of Canada (2010) as well as all other applicable by-laws.
2. The Building must be maintained, kept secure, and monitored on a routine basis
while the property remains vacant or unoccupied.
3. A detailed plan must be submitted to the Growth and Community Development
Services Department of the City of Saint John (the "Department") for review and
approval. The plan should also include a schedule for the work that is to be
carried out. The repaired Building must meet the National Building Code of
Canada (2010) as well as other applicable codes.
4. The detailed pian, including schedules and any engineering reports, must be
approved by the Department prior to commencing repair work.
5. A building permit must be obtained for any and all applicable work prior to
commencing said work from the Citv of Saint John in order to comply with the
and all rubbish that may be consiaerea nazaraous or unsignuy. ine uearis liUlll
the premise must be disposed of at an approved solid waste disposal site, in
accordance with all applicable by-laws, acts and regulations. Documented proof,
that clearly demonstrates an approved solid waste disposal site was used for the
disposal of debris, must be provided to the Department. The premise must comply
with all applicable By-laws, Acts, Codes and Regulations.
Option 2: Demolition of the Building and cleanup of all debris on the premise by
complying with all the remedial actions as follows:
1. The Building must be demolished to remove the hazard to the safety of the public
by reason of dilapidation and by reason of being vacant or unoccupied.
2. A demolition permit must be obtained from the City of Saint John in order to
comply with the Saint John Building By-law.
3. The premise must be cleared of the debris from the demolition and the lot must be
made reasonably level with grade so as to not create a tripping or falling hazard.
All debris must be disposed of at an approved solid waste disposal site, and in
accordance with all applicable By-laws, Acts and Regulations. Documented
proof, that clearly demonstrates an approved solid waste disposal site was used for
the disposal of debris, must be provided to the Department.
4. All debris that is currently on the premise must be removed and disposed of at an
approved solid waste disposal site, and in accordance with all applicable By-laws,
Acts and Regulations. Documented proof, that clearly demonstrates an approved
solid waste disposal site was used for the disposal of debris, must be provided to
the Department.
5. The property must be in compliance with all applicable By-laws, Acts and
Regulations.
Prepared by:
aeh 1 Van Wart, P.Eng. Date
Technical Services Officer
Growth and Community Development Services
Reviewed by and concurred in by:
Amy Poffenroth, P. Eng., MBA
Building Inspector
Deputy Commissioner
Growth and Community Development Services
tm&r- 2,5120my
Date
CANADA
PROVINCE OF NEW BRUNSWICK
COUNTY OF SAINT JOHN
IN THE MATTER OF THE BUILDING THAT IS LOCATED AT
SAINT JOHN, N.B. { PID number
4
AFFIDAVIT OF SERVICE
of SaintJohn, N.B., Make Oath And Say As Follows:
I am employed by The City of Saint John in its Growth and Community Development
Services Department. I have personal knowledge of the matters herein deposed except
where otherwise stated.
2. On 0 at approximately pc I posted a
copy of the attached Notice to Comply, marked Exhibit "A" and Notice of Appeal,
marked Exhibit "B" to the front door of the building that is located at
AIAI-13 ft e -A
-- --2 Saint John, N.B.
Sworn To before me at the
City of Saint Phn, N,B.,
on the day of
2019
RACHEI N WART
COMMISSIONER OF OATHS
MY COMMISSION EXPIRES
DECEMBER31 ST 2022
201
v k_l All U113 1 ljvI IYULI3
This is EWbit (Lai sur la gou vernance locale,
Referred to in the Affidwvit of L.N.-B. 2017, ch. 18, par. 132(2))
A i,7 ( C
Parcel identifier: rc;�V_ �I�ki�,
vkrn befmat urn6ro dlidentification de la parcelle
Sore e the
PID #00000778 Saint J, hn, New ns Ick
da 7
NID: 00000778
Address: 47-49 Broad streeL' Adresse : 47-49, rue Broad, Saint John,
Brunswick Commissioner of Oaths Nouveau -Brunswick
Owner(s) or Occupier(s): Propriftaire(s) ou occupant(s)
lanae: Losier, Joseph Gerard Not', : Losier, Joseph Gerard
Address: 19 Cranberry Hill, Saint John, New Adresse : 19 Cranberry Hill, Saint John,
Brunswick, E2K 5E4 Nouveau -Brunswick, E2K 5E4
Marne: Losier, Vanessa Eileen Moen : Losier, Vanessa Eileen
Address: 19 Cranberry Hill, Saint John, New Adresse : 19 Cranberry Hill, Saint John,
Brunswick, E2K 5E4 Nouveau -Brunswick, E2K 5E4
Local government giving notice: The city of Saint Gouvernernent local signifiant I'vivis : The City of
.John SaintJohn
By-law contravened: &iinl John Unci hely PI-Cmises
and Daiwerous Buildings and BY-Lavv, By-
law Number M-30 and amendments thereto (the "By-
law").
Provision(s) contravened: Subsections 6(1), 6(2) and
6(3) of the By-law.
Conditions(s) that exist: The premise is unsightly by
permitting junk, rubbish, refuse and a dilapidated
budding to remain on the prernise. The building has
become a hazard to the safety of the public by reason of
being vacant or unoccupied and has become a hazard to
the safety oFthe public by reason ofdilapidation and by
reason Of unsoundness of structural strength, lrvlae
conditions of the building and premise are described in
Schedule "A", a true copy of the inspection report dated
September 25, 2019 prepared by Rachel Van Wart,
P.Eng, By-law Elillorcernent Officer and reviewed and
concurred in by Arny Poffenroth, P. Eng., By-law
Etil'orcenient Officer,
What must be done to correct the condition: The
owner is to rernedy the conditions by complying with
the required remedial actions of the aforementioned
inspection report and bring the building and premises
into compliance with the aforesaid By-law.
In the event that the owner does not remedy the
condition of the building and premises in the time
prescribed by this Notice to Comply, the building may
be demolished as the corrective action to address the
hazard to the safety of the public and the premises may
be cleaned up.
Arr&6 cnfreint : ArrcW relalffena lieux ine.sIh&iques
cl aux Mlimenis el construetioiis dangeremi dc &,lini
Joh17, Arr6t6 IILI11161-0 M-30, ainst clue ses
modifications ci-aff6rentes (J' (< Arr&6 >>).
Disposition(s) enfi-einte(s) : Les paragraphes 6(1),
6(2) el paragraphe 6(3) de I'Arr&6.
Description de ]a (des) situation(s) : Les lieux sant
itiesth6tiques ell perniettant ]a pr6sence de 1erraille,
de d6tritus et le bitiment d&labr6. Le batirnent
CStd0VCllU dangereuse pour la S&Lirit6 du public du
fait de son inhabitation OU de son inoccupation et est
devenu dangereuse pour la s6curit& du public du fait
de son de labrernent et du fait de nianqUe dc solidit6.
Les conditions du b5tinient et des lieux sant d6crites a
I'annexe << A >>, Lille topic confionric du rapport
d'inspection ell date du 10 juin 2019 et pr&par6 par
Rachel Van Wart, ing, agente charge: de 1'ex6cution
des arr6t6s du gouvernernent local et r6vis6 et ci)
d'accorde avec par Amy 11offlenroth, ing., une agente
charg&c de I'CX&LItIon des arr&6s du gOLIverneirient
local.
Cc qu'il y a lieu de faire pour y rcniMicr: La
propri6talre doit restaurer les conditions ell se
conforniant aux reco rn manda t i oil s du rapport
d'inspection susrnentlonn6 et d'arnener le biltiment et
les lieux ell Coll fornii t&s avec I'Arr&6.
Dans 1'6VClItLlaJit6 qtw la propri6taire ne rern6dient pas
le b5tinient et les lieux dans le temps prescrit par le
pr6sent avis de conforniit6, ie bdtiment pourront �,tre
d6rnol is conillie Illesure corrective corripte tenu qu'i I
repr6sentC Lin danger pour la S6CUrit6 du public et les
lieux pourront etre nettoyes.
premises will be disposed of as the corrective action to autres items sur les lieux seront disposes comme
address the hazard to the safety of the public. mesure corrective dans le but de remedier le danger
pour la securite du public.
The aforementioned remedial actions relating to the
demolition of the building and the disposal of debris and
items on the premises do not include the carry -out clean-
up, site rehabilitation, restoration of land, premises or
personal property or other remedial action in order to
control or reduce, eliminate the release, alter the manner
of release or the release of any contaminant into or upon
the environment or any part of the environment.
Date before which the condition must be corrected: f
a) The demolition of the building, clean-up of the
property and related remedies must be complete,
or plans and permit applications for repair
related remedies, must be submitted: within 30
days of being served with the Notice to Comply.
b) The repair related remedies must be complete
within 120 days of being served with the Notice
to Comply.
Les mesures correctives susmentionnees relativement
A la demolition du batiment et la disposition des debris
et autres items sur les lieux ne comprennent pas le
nettoyage, ]a remise en etat des lieux, des terrains ou
des biens personnels ou toute autre mesure corrective
dans le but de controler ou de reduire, d'eliminer le
deversement, de modifier le mode de deversement ou
le deversement d'un polluant dans ou sur
Penvironnement ou toute partie de Penvironnement.
Delai imparti pour y remedier : 1
a) La demolition du batiment et le nettoyage des
lieux doivent etre completees, ou a laquelle
les plans et demande de permis pour les
mesures des reparations, doivent etre
soumises, dans les 30 jours qui suivent la
signification de ]'avis de conformite.
b) Les reparations reliees aux mesures doivent
etre completees dans les 120 jours qui suivent
]a signification de Pavis de conformite.
Date for giving notice of appeal: Within 14 days of Date limite pour donner Pavis d'appel: Dans les 14
being served with the Notice to Comply. jours qui suivent la notification de I'avis de
conformite.
Process to appeal: The owner may within 14 days after
having been served with this Notice to Comply, send a
Notice of Appeal by registered mail to the Common
Clerk of The City of Saint John, City Hall — 8`h Floor, 15
Market Square, Saint John, New Brunswick, E2L 4L1.
Potential penalty for not complying with notice
within time set out in notice:2 Subsection 11(1) of the
By-law states that a person who fails to comply with the
terms of a Notice to Comply given under section 7 of
the said By-law, commits an offence that is punishable
under Part 2 of the Provincial Offences Procedure Act
as a category F offence.
Where an offence under subsection 11(1) continues for
more than one day, the minimum fine that may be
imposed is the minimum fine set by the Provincial
Offences Procedure Act for a category F offence
multiplied by the number of days during which the
offence continues pursuant to subparagraph I I (3)(b)(i).
Local government's authority to undertake repairs
or remedy:3 Paragraphs 12(1)(a), 12(1)(b) and 12(1)(c)
of the By-law state that if an owner or occupier does not
comply with a Notice to Comply given under section 7
Processus d'appel : La proprietaire peux dans les 14
jours qui suivent la notification de Pavis de
conformite, envoye un avis d'appel par courrier
recommande a la greffiere communale de la
municipalite, a The City of Saint John, Edifice de
I'hotel de ville, 8` stage, 15 Market Square, Saint
John, Nouveau -Brunswick, E2L 4L1.
Peine possible en cas d'omission de se conformer
aux exigences de Pavis dans ie delai y imparti : 2
Le paragraphe 110) de I'Arrete prevoit quiconque
omet de se conformer aux exigences formulees dans
un avis de conformite notifie aux termes de I'article 7
de ladite Arrete, commet une infraction qui est
punissable en vertu de ]a partie 2 de la Lai star la
procedure applicable aux infractions provinciales a
titre d'infraction de la classe F.
Lorsqu'une infraction prevue au paragraphe 11(1) se
poursuit pendant plus d'une journee, Pamende
minimale qui peut etre imposee est I'amende
minimale prevue par la Loi sur la procedure
applicable aux infractions provinciales pour une
infraction de la classe F multipliee par le nombre de
jours pendant lesquels ]'infraction se poursuit
conformement a Palinea I I(3)b)i).
Pouvoir du gouvernement local d'entreprendre des
reparations ou de remedier a la situation : 3
Conformement aux alineas 12(1)a), 12(1)b) et 12(1)c)
de I'Arrete, si un avis de conformite a ete signifie aux
states that the cost of carrying out such work, including
any associated charge or fee, is chargeable to the owner
or occupier and becomes a debt due to the City.
nJ
Dated at Saint John th+C—,?— day of October, 2019
Local government: The City of Saint John
Signature of the officer of the local government:
paragraphe 12(3) de ladite Arrete, la municipalite peut
faire nettoyer ou reparer les lieux de cc proprietaire ou
de cet occupant ou de faire reparer ou demolir le
batiment ou autre construction de cc proprietaire ou de
cet occupant, et les couts afferents A 1'ex6cution des
ouvrages, y compris toute redevance ou tout droit
connexe, sont mis a la charge du proprietaire ou de
I'occupant et deviennent une creance de la
municipalite.
Fait A Saint John le octobre, 2019.
Gouvernement locale : The City of Saint John
Signature du fonctionnaire du gouvernement local:
Contact information of the officer of the local Coordonnees du fonctionnaire du gouvernement
government: local:
Name: Rachel Van Wart, P.Eng.
Mailing address:
Growth and Community Development Services
The City of Saint John
15 Market Square
City Hall Building, 10`x' Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L1
Telephone: (506) 658-2911
E-rnail: rachel.vanwartRsaintjohn.ca
Fax: (506) 632-6199
Corporate seal of the loc
Notes:
1. All appropriate permits must be,ps d all relevant
legislation must be complied with in the course of carrying out the
required remedial action.
Nom: Rachel Van Wart, ing.
Adresse postale:
Service de la Croissance et du D6vcloppement
Communautaire
The City of Saint John
15 Market Square
Edifice de 1'h6tel de viIle, IOe 6tage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L1
T616phone : (506) 658-2911
Adresse electronique: rachel.vanwart(ii)saintiohn.ca
T616copicur : (506) 632-6199
Sceau du gouvernement local
Notes :
1. Tous les permis prescrits doivent etre obtenus et toute la
legislation pertinence doit etre respectee pendant 1'execution des
mesures de rem6diation.
2. Payment of the fine does not alleviate the obligation to comply 2. Le paiement de 1'amende n'a pas pour effet d'annuler
with the by-law, standard or notice. ]'obligation de se conformer a 1'arrete, a la norme ou a ]'avis.
3. Costs become a debt due to the local government and may be
added to the joint local government and provincial Real Property
Assessment and Tax Notice,
3. Les touts deviennent one creance du gouvernement local et
peuvent etre ajout6s a I'avis commun devaluation et d'imp6t
foncier des gouvernements local et provincial.
41-49 Broad Street this
Saint John New Brunswick
PID# 00000778
4nr,. OMcef
Inspection Date: August 20, 2019
Inspection Conducted by: Catherine Lowe, EIT & Rachel Van Wart, P.Cng.
Introduction
Inspections of the property at 47-49 Broad Street, PID# 00000778, have revealed that
there is one building on the premise (the "Building"); a two-storey, three -unit apartment
building. Staff first became aware of the property's vacancy in February 2018 and began
standard enforcement procedures. The property is located in the South Central Peninsula
side in an urban -centre residential zone. The property owners refuse responsibility for the
property due to bankruptcy. Attempts were made to contact any other party that may have
interest in the property, however attempts were unsuccessful. For this reason, an entry
warrant was obtained in order to conduct an internal inspection to assess the interior
conditions of the Building. The Building is a hazard to the safety of the public by reason
of being vacant, by reason of dilapidation and by reason of unsoundness of structural
strength.
Discussion
The Building is not in compliance with the Saint John Unsightly Premises and
Dangerous Buildings and Structures By-law, By-law Number M-30, and amendments
thereto (the "By-law").
Unsightly Premise Conditions
Subsection 6(1) of the By-law states:
No person shall permit premises owned or occupied by flim or her to be
unsightly by permitting to remain on any part of such premises
(a) any ashes, junk, rubbish or refuse;
(G) an accumulation of wood shavings, paper, sawdust or other residue of
production or construction;
(c) a derelict vehicle, equipment, machinery or the body of any part of a
vehicle equipment or machinery, or
(d) a dilapidated building.
1. There is an accumulation of junk, rubbish, and refuse on the property. These
items include, but are not limited to; discarded wood, a lawn mower, a wooden
dresser, a broken door, dilapidated steps, as well as other bagged and loose
garbage. Based on previous inspections, it is likely that the overgrown foliage is
covering other items. The aforementioned accumulation of junk, rubbish, and
refuse is unsightly.
2. The Building is dilapidated. The wooden shingle siding is peeling and shingles are
missing in numerous locations. The front door providing access to the second
floor is boarded. Windows are open with broken glass hanging. The wooden soffit
at the rear courtyard of the Building is rotten and missing in sections. The awning
over a rear entrance doors is rotten. The carport on the left side of the Building is
dilapidated. Pieces of thin plywood are loosely attached to the tops of the suboort
Subsection 6(2) of the By-law states:
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of the public by reason of
being vacant or unoccupied.
The Building is a hazard to the safety of the public by reason of being vacant or
unoccupied for the following reasons:
Ownership is currently caught up in bankruptcy proceedings. It is acknowledged that the
registered property owners are proceeding through bankruptcy.
Buildings in a dilapidated condition that are known to be vacant can attract
vandalism, arson and criminal activity. The property's condition affects the
quality of life of neighboring properties and negatively impacts property value
of real estate in the area due to negative perceptions of unsafe and
deteriorating conditions. The registered owners refuse responsibility as the
property is part of a bankruptcy claim. No other party has come forward to
claim care and control of the property. There is evidence of vandalism within
the Building. Wiring and piping have been stripped throughout the units with
missing and broken drywall. Saint John Energy confirmed that the power has
been disconnected since October 2017. The City of Saint John Finance
department confirmed that the water has been turned off since May 2016,
2. There is a higher risk of a fire event occurring at the property since it is known
to the public that the Building is vacant. The Building is located beside an
office located at 43 Broad Street. If a fire event were to occur within the
Building, it could easily spread to the neighboring property, which could
cause significant damage to the building and endanger the lives of the
occupants.
3. There is a concern for emergency personnel safety in the event of an
emergency. If firefighters suspect there may be people inside the Building, it
would be reasonable to expect they may be required to enter it. The condition
of the interior is not known to firefighters, which poses a hazard to their safety
and others who may be inside in the event of a tire. Walls and ceilings
throughout the Building are damaged, the drywall and other material covers
the floors. The floors and ceilings in the Building are sloped. These conditions
would be hazardous for any emergency responders required to enter the
Building.
Dilapidated & Structurally Unsound Building Conditions
Subsection 6(3) of the By-law states
No person shall permit a building or other structure owned or occupied by
the person to become a hazard to the safety of the public by reason of
dilapidation or unsoundness of structural strength.
The Building is a hazard to the safety of the public by reason of dilapidation and
unsoundness of structural strength for the following reasons:
Exterior Conditions:
1. The Building is dilapidated. The wooden shingle siding is peeling and
shingles are missing in numerous locations. The front door providing access to
door is rotten and dilapidated. Deteriorated pieces of the Building could
dislodge and potentially cause damage to property or harm anyone near the
Building.
2. The cat -port on the left side of the Building is dilapidated. Pieces of thin
plywood are loosely attached to the tops of the support members lining the
left -side property line.
Interior Conditions:
3. There is water damage on second floor of the Building with hanging drywall
and loose insulation covering the floor. There is peeling paint throughout the
surfaces in the Building. On the second storey, there are water damaged floors
with dark water stains between floor boards. These conditions are evidence of
the dilapidation of the Building.
4. Numerous rooms within the Building are in a state of disrepair inappropriate
for habitation. Numerous walls and ceilings are missing drywall or plaster;
exposing wooden framing members, insulation and electrical wires.
5. It appears as though structural repairs have been made to the Building in the
ground floor unit without an approved Building Permit. This work cannot be
confirmed if it meets the National Building Code of Canada. A wooden beam
has been installed in lieu of a stud wall spanning the length of the living room,
in addition to a series of doors installed on the right side wall of the Building.
6. There is evidence of structural movement and unsoundness within the interior
of the Building. Floors within the Building are sloped. There are significant
cracks spanning entire walls, in addition to other cracked drywall/ plaster
locations. The ceiling on the ground floor unit is sloping. Numerous door
frarnes within the Building are severely crooked.
Required Remedial Actions
The owner must comply with one of the two options stated below:
Option 1: Remedy the conditions of the Building through all repair and remedial actions
as follows:
I. The Building must be completely repaired to remedy the above mentioned
hazards to public safety while meeting the requirements of the National Building
Code of Canada (2010) as well as all other applicable by-laws.
2. The Building must be maintained, kept secure, and monitored on a routine basis
while the property remains vacant or unoccupied.
3. A detailed plan must be submitted to the Growth and Community Development
Services Department of the City of Saint John (the "Department") for review and
approval. The plan should also include a schedule for the work that is to be
carried out. The repaired Building must meet the National Building Code of
Canada (2010) as well as other- applicable codes.
4. The detailed plan, including schedules and any engineering reports, must be
approved by the Department prior to commencing repair work.
5. A building permit must be obtained for any and all applicable work prior to
C:(1171lTlP.11! incr cmid uunrlc frnm the Chir of 1Zn;nf Tniii, In nrdl r to nn-l..*r.o
anu ail IUUUlblL ULM 1114y oe conswereu nazarcious or unsightly. The debris from
the premise must be disposed of at an approved solid waste disposal site, 'in
accordance with all applicable by-laws, acts and regulations. Documented proof-,
that clearly demonstrates an approved solid waste disposal site was used for the
disposal of debris, must be provided to the Department. The premise must comply
with all applicable By-laws, Acts, Codes and Regulations.
Option 2: Demolition of the Building and cleanup of all debris oil the premise by
complying with all the remedial actions as follows:
1. The Building must be demolished to remove the hazard to the safety of the public
by reason of dilapidation and by reason of being vacant or unoccupied.
2. A demolition permit must be obtained from the City of Saint John in order to
comply with the Saint John Building By-law
3. The premise must be cleared of the debris from the demolition and the lot must be
made reasonably level with grade so as to not create a tripping or falling hazard.
All debris must be disposed of at ail approved solid waste disposal site, and in
accordance with all applicable By-laws, Acts and Regulations. Documented
proof, that clearly demonstrates an approved solid waste disposal site was used for
the disposal of debris, must be provided to the Department.
4. All debris that is currently on the premise must be removed and disposed of at an
approved solid waste disposal site, and in accordance with all applicable By-laws,
Acts and Regulations. Documented proof, that clearly demonstrates an approved
solid waste disposal site was used for the disposal of debris, nlust be provided to
the Department.
5. The property must be in compliance with all applicable By-laws, Acts and
Regulations.
Prepared by:
ach 1 Van Wart, P.Eng. Date �
Technical Services Officer
Growth and Community Development Services
Reviewed by and concurred in by:
Amy Poffenroth, P. Eng., MBA
Building Inspector
Deputy Commissioner
Growth and Community Development Services
`5�p`tQ n-�r 2 SSC
Date
FORM I
FORMULE I
NOTICE OF APPEAL Zo-m AVIS D'APPEL
File No,: N" du dossier :
BETWE-EN:
Appellant(s),
- and -
THE CITY OF SAINT JOHN,
Respondent,
1"zircel Identifier: PID 4
Parcel Address:
owner(s) or Occupier(s).
Name:
Address:
Telephone:
Name:
Address:
Telephone:
ENTRE:
Appelant(s),
- et -
THE CITY OF SAINT JOHN,
11101116c,
NUm6ro d'identificatioii de la parcek : 4 N[D
Adresse de la parcelic :
Propri6taire(s) ou occupant(s) :
Nom :
Adresse :
T616phonc:
Nom :
Adresse :
T616phone:
The above named appellant(s) is (are) not satisfied L'appelant ou les appelants SUSn0u`U116(S) ri'accepte(lit)
witli the terms and conditions set Out in: pas les modalit6s OU les conditions qui sunt 6nonc&s.
dans :
(a) a Notice that was given under section 7 of the (a) U11 AVIS qUi a &6 donne en vertu de ]'article 7 de
Saint John Unsighlly Premises and Dangerous ]'Arr&c� rel0l' aux fieux inesthetiquc�y et aux
Buil(fings an(I Struetures By -Law; or bdtimenls el constructions &ingereux (lans The
City qf'Saiw John; on
(b) an Order that was issued under section 25 of the (b) une ORDONNANCE qui a W 6mise en vertu de
Saint John Minimum Proj)erty Slandar(ls .1 y- ]'article 25 de ]'Ari -CW concei-nant les normes
Laiv,' mininialay re'ssanl les s rc�sidences cle Saint John
and therefore appeals to the Saint John Suhstamlar(l et fait ains] appel deviant le Cotnit(� tiles al-)pels stu- les
Prol)erlies Appeal Committee. re,sidences non coqftwmes aux normes de Sainl,John,
Thc appellant's grounds for this appeal are as follows Les motif's d'appel de I'appelant(s) dans le oresent
Dated at
20
Signature of owner or occupier
the
day of Fait a
The appellant(s) intends to proceed in the English [ ]
or French [ ] language (Please check the appropriate
box).
Please . forward your Notice of Appeal by registered
mail to the Common Clerk within fourteen (14) days
after having been given the Notice or Order at the
following address:
Common Clerk's Office
15 Market Square, City Hall Building, 8" Floor
P. O. Box 1971
Saint John, New Brunswick
E2L 4L1
Telephone: 506-658-2862
Facsimile: 506-674-4214
Notes:
1. A Notice or Order that is not appealed within
fourteen (14) days after having been given or issued
shall be deemed to be confirmed.
2. On an appeal, the Saint John Substandard
Properties Appeal Committee shall hold a hearing
into the matter at which the owner(s) or occupier(s)
bringing the appeal has (have) a right to be heard and
may be represented by counsel.
3. On an appeal, the Saint John Substandard
Properties Appeal Committee may confirm, modify
or rescind the Notice or Order, or extend the time for
complying with the Notice or Order.
4. The Saint John Substandard Properties
Appeal Committee shall provide a copy of its
decision to the owner(s) or occupier(s) of the
premises, building or structure who brought the
appeal within fourteen (14) days after making its
20
Signature du proprietaire ou de ('occupant
le
L'appelant a ou les appelants ont ]'intention d'iutiliser la
langue francaise [ ] ou an laise [ ] (Veuillez cocker la
case appropriee).
Veuillez faire parvenir votre AVIS D'APPEL par courrier
recommande au greffier communal dans les quatorze
(14) fours qui suivent la notification de 1 'AVIS ou de
l 'ORDONNANCE a 1 'adresse suivante :
Bureau du greffier communal
15 Market Square, Edifice de I'hotel de ville, 8e etage
Case postale 1971
Saint John (Nouveau -Brunswick)
E2L 4L 1
Telephone : 506-658-2862
Facsimile: 506-674-4214
Notes :
1. Un AVIS ou une ORDONNANCE dont it West pas
interjet6 appel dans Ies qualorze (14) jours qui suivent
la notification de I'AVIS ou 1'emission de
I'ORDONNANCE est repute confirme.
2. Lors d'un appel, le Comite des appels sur les
residences non conformer aux normes de Saint John
doit tenir, sur le point en Iitige, une audience au cours
de laquelle le(s) propridtaire(s) ou ('occupant ou les
occupants qui interjette(nt) appel a (ont) le droit d'6tre
entendu(s) et peut (peuvent) se faire representer par un
avocat.
3. Lors d'un appel, le Comite des appels sur les
residences non conformes aux normes de Saint John
peut confirmer, modifier ou annuler ]'AVIS ou
l'ORDONNANCE ou proroger le ddlai pour s'y conformer.
4. Le Comite des appels sur les residences non
conformes aux normes de Saint John doit fournir une
copie de sa decision au(x) proprietaire(s) ou a
('occupant ou aux occupants des lieux, du batiment ou
de la construction qui lui a (ont) interiete appel dans Ies
5. The owner(s) or occupier(s) who is provided
with a copy of a decision from the Saint John
Substandard Properties Appeal Committee regarding
a Notice, may appeal the decision to a judge of The
Court of Queen's Bench of New Brunswick within
fourteen (14) days after the copy of the decision was
provided to the owner(s) or occupier(s) on the
grounds that (a) the procedure required to be
followed by the by-law was not followed, or (b) the
decision is unreasonable.
5. Le(s) propridtaire(s) ou 1'occupant ou les
occupants a qui une copie d'une decision a ete fournie
par Ie Comite des appels sur les residences non
conformer aux normes de Saint John concernant un
Avis peut (peuvent), dans les quatorze (14) jours qui
suivent, interjeter appel de la decision devant un juge de
la Cour du Banc de la Reine du Nouveau -Brunswick au
motif que (a) la demarche a suivre en vertu de 1'arrete
n'a pas ete suivie, ou (b) la decision est deraisonnable.
CANADA
PROVINCE OF NEW BRUNSWICK
COUNTY OF SAINT JOHN
IN THE MATTER OF THE BUILDING THAT IS LOCATED AT
_L 51 - ,SAINT JOHN, N.B. ( PID number _L060() -1 1 )
AFFIDAVIT OF SERVICE
1, of Saint John, N.B., Make Oath And Say As Follows:
1. 1 am employed by The City of Saint John in its Growth and Community Development
Services Department. I have personal knowledge of the matters herein deposed except
where otherwise stated.
2. OnNhiitm6r. w, at approximately I posted a
copy of the attached Notice of Common Council Hearing letter, marked Exhibit "A"
to the front door of the building that is located at 9 1 - qT daj j ''I I , Saint
John, N.B.
Sworn To before me at the
City of Saint John, N.B.,
on:B "k— day of
oy�crv%6cr- 2019
...... .....
4<ACHtL A VAN WART
COMMISSIONER OF OATHS
MY COMMISSION EXPIRES
DECEMBER 318T, 2022
PAN
November 8, 2019
Permitting & Inspection / Service des inspections et de 1'application
By -Law Enforcement / Service d'Application des Arr6tks Municipaux
Phone/ Te1: (506) 658-2911
Fax / Telec: (506) 632-6199
Case Number: 18-0075
VIA REGISTERED MAIL
Joseph & Vanessa Losier
19 Cranberry Hill
Saint John, NB
E2K 5E4
Dear Sir/Madam:
This is Exhibit It
Referred to in the Affidavit of
C
Sworn before me at the City of
Saint John, New Brunswick
the day of
m... ............... ......
�_,-
Commissioner of Oaths
NOTICE OF COMMON COUNCIL HEARING
Re: 49 Broad St, PID # 00000778
Dangerous and Vacant Building Program
On October 2, 2419, a Notice to Comply was issued for the above mentioned property which
required remedial action to bring the building and premises into compliance with the Saint John
Unsightly Premises and Dangerous Buildings and Structures By-law. The Notice to Comply was
posted on the said property on October 4, 2019.
The fourteen (14) days appeal period has now expired. Therefore, a compliance inspection was
carried out on November 8, 2019. City Staff will be attending the Common Council meeting
scheduled on November 18, 2019 at 6:00 p.m. to recommend that the building be demolished
because it has become a hazard to the safety of the public by reason of dilapidation or by reason of
unsoundness of structural strength. Please be advised that at this meeting, you can present
evidence that the building is not dilapidated or structurally unsound; however, note that this
meeting will be your only opportunity to do so.
If you have any questions, don't hesitate to contact me at (506) 658-2911.
Regards,
Rachel Van Wart, P.Eng.
Standards Officer
c: Bank of Nova Scotia
P.O. Box 1971 C.P. 1971
Saint John, NB Saint John, NA.
Canada E2L 4L1 Canada E2L 41
SAINT JOHN www.saintjohn.ca
213
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COUNCIL REPORT
M&C No.
2019-290
Report Date
November 14, 2019
Meeting Date
November 18, 2019
Service Area
Saint John Water
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Water & Sewer Rate Study
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head+Jcci
ty Manager
Brent McGovern
Brent McGovern
hnCollin
RECOMMENDATION
It is recommended that Common Council:
1. Endorse the attached Water & Sewer Rate Study;
2. Support removing the third consumption tier from the rate structure
given no water consumption has been billed to Tier 3 since 2008;
and
3. Direct staff to communicate the results of the of the rate changes to
water only and sewer only customers given they will see a change in
their 2020 billing.
EXECUTIVE SUMMARY
Hemson Consulting Ltd. in working with staff recently completed Rate Studies
that cover the Water (potable) & Sewer Rate Report, the two East Industrial
Water customers (Irving Paper and Irving Oil) and the two West Industrial Water
customers (NB Power—Coleson Cove and Irving Pulp and Paper).
The plan is to implement the new water and sewer rate structure via by-law
effective January 1, 2020.
While there are changes made, a balanced 2020 Utility Operating budget is being
presented to Finance Committee at its next meeting that holds the flat rate at
the same in 2020 as the 2019 flat rate.
Metered properties serviced by both water and sewer will experience a change
similar to those flat rate users, regardless of the amount of water consumed. The
exception rests with properties serviced by water only or by sewer only. In these
0%
-2 -
cases, which are limited to less than 2%, the rate changes are more significant as
those users would not see the benefit of the decreased sewerage surcharge
which is moving from 122% of the water charge to 81% of the water charge.
Water only customers will see a rate increase upwards of about 23% in 2020 only
and sewer only customers will see rate decreases on the order of 19%.
PREVIOUS RESOLUTION
N/A
STRATEGIC ALIGNMENT
Aligns with Council's priority of fiscal responsibility where it specifically states
"Investigate options to allocate water costs among ratepayers".
REPORT
Background
The City of Saint John provides potable water to about 14,000 residential
accounts and about 3,100 ICI accounts.
Currently, residential customers in Saint John are charged for water and
sewerage services on a flat rate basis. Under this rate structure, the total bill
remains constant regardless of the amount of water consumed. Non-residential
and multi -unit residential customers are metered and water is charged on a per
cubic metre basis. A fixed charge relative to the size of the water meter is levied
in addition to the consumption based charge. The City currently employs a three
tier declining block structure for water services — under this structure the unit
price of water decreases relative to use. Sewerage services are levied on a
surcharge basis, equal currently to 122% of the water bill.
As part of the Safe, Clean Drinking Water Project (SCDWP) the Loch Lomond
Drinking Water Treatment Facility went into operation on August 30, 2018. With
the construction of the new plant, separation of the potable and industrial water
supply on the east system was possible (the west industrial systems were already
separated however there had been some infrastructure sharing between
industrial and potable water customers before the move to groundwater)
thereby requiring an adjustment in the way the City delivers services to
residential and non-residential customers. These changes combined with
Council's Priority to "Investigate options to allocate water costs among
ratepayers" required a review of the water and sewer rates.
The last water and sewer rate study was completed in 2008 when the City of
Saint John undertook a water and sewer rate study to analyze the full cost of
providing services, and the results of this study form the basis for which the City
bills its customers today. Since 2008 and particularly more recently with the
investments in the SCDWP there have been changes in the water system.
f�0�3
-3-
Hemson was retained by the City of Saint John to undertake a comprehensive
Water and Sewer Rate Study with a view of calculating utility rates. The key goals
of this assignment were as follows:
• Determine water consumption and sewer usage by different types of
users;
• Estimate total anticipated water and sewer demand;
• Calculate rates that reflect full recovery of system operating costs;
• Calculate rates that reflect full recovery of capital infrastructure
financing needs; and
• Establish reserves to fund the rehabilitation and replacement of
infrastructure.
Water Consumption
In the City water consumption has been declining since 2007. In this regard,
metered consumption has declined from about 7.0 million m3 in 2007 to about
5.5 million m3 in 2017. For the purposes of this study, consumption has been
moderated and maintained at about 5.46 million m3 per annum over the
planning period.
Operating Expenditures
Operation and maintenance costs are comprised of four distinct components for
the purposes of this report:
1. General Operations: treatment, pumping, storage, metering,
distribution, etc.;
2. Fiscal Charges (Debt servicing costs incurred);
3. Industrial Water; and
4. Corporate Administration: municipal engineering, internal charges and
post -employment benefits.
The operational costs of the new Loch Lomond Drinking Water Treatment
Facility represent a significant share of total costs ($7.0 million or 30%). The cost
projections in the study will be closely monitored and compared to actuals
regularly to ensure sufficient revenues are being generated to cover expenses
given the treatment facility is a relatively new.
Debt — Principal and Interest Payments
There is no plan to issue any further debt for capital related infrastructure
investments over the next ten years, and as a result, total debt payments are
anticipated to decline over the long-term. As debt is retired over the planning
period, the plan is to increase the amount of funds contributed to reserves for
future asset replacement. The annual debt payments (principal and interest) for
the potable water system and sewerage system are shown below.
f81zI
IIS
Figure 5: Projection of Debt Costs (Principal + Interest):
Potable Water System Only and Sewer
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budget
® Potable Water ®Sewer
Note: Principal and Interest payments associated with the SCDWP are included
The outstanding debt related to both the water and sewer systems by the end of 2020
will be approximately $88.3 million.
Corporate Administration
The 2019 Utility Operating budget includes about $3 million of corporate
administration costs which are identified independently from regular
distribution, treatment, metering or debt related expenses. These costs relate to
internal charges, infrastructure management and municipal engineering, as well
as additional post -employment benefits and is allocated evenly (at $1.5 million
each) between the water and sewerage system.
Non -user Rate Revenues
Previous year's surplus funds are being phased out and removed starting in
2023. The Fire Protection and Stormwater Levies are treated as non -rate
revenues and are calculated based on a share of the operating expenditures
associated to each service — consistent with past methodology.
Projected Capital Expenditures
The total capital expenditures which the City will be responsible for funding over
the ten-year period is estimated at $58.8 million. Overall, about 62%, or $36.5
million, of the infrastructure is required to support water services while the
remaining $22.2 million is to support the sewer capital projects. It should be
noted that the City does not anticipate any additional debt financing measures
to fund the in -year capital expenditure requirements; therefore no additional
principal and interest payments beyond the existing debt are included in the
analysis. It is important to note that the figures noted below do not include any
potential cost sharing or grant funding from upper levels of government, and
therefore, any funds received will be applied towards further reducing the
existing infrastructure deficit.
OR
-5 -
Note: The allocation of capital expenses is based on the 2019 capital
plan with costs allocated 60% water and 40% sewer.
Asset Repair and Replacement Provision
When assets require rehabilitation or replacement, the source of funds is
essentially limited to reserves or contributions from operating. In maintaining a
user -pay approach, it is important for the City to build sufficient reserves for the
scheduled replacement of infrastructure through contributions from operating.
To mitigate an impractical increase of the user rates, contributions to the City's
asset management reserve and infrastructure renewal related investments are
phased in gradually. By the end of the planning period, 2029, the City will be
making more significant annual renewal investments and reserve contributions -
providing a funding source for future infrastructure repair and replacement.
The 2029 asset investment includes the in -year rate funded share of capital
identified in Table 1 plus an additional allocation for future asset repair and
replacement — the City will be at 29% of total sustainable investment
requirement by the end of the period.
Note*:Thesustainableannualfundingrequirementshove been adjustedtoaccountforinflation.The figureshown
represents the sustainable investment in 2029 dollars.
Rate Structures and Calculated Rates
Various water and sewer rate structures are in place across Canadian
municipalities. The varying rate structures include flat rates, constant rates,
humpback block rates, declining and inclining block rates. The rate structure
selected depends on whether the end-users are equipped with a water meter.
Tables 3 and 4 below provide a summary of the existing 2019 water rates in Saint
John for customers who are charged on a flat rate basis (Table 3) and customers
charged both a fixed and consumption based fee (Table 4).
WOU
Program
000
Cumulative Ten-year
Capital 2020 —
Water Services
$36,546.2
Sewer Services
$22,286.5
Total Net Rate Funded
$58,832.7
Capital Program (from
Note: The allocation of capital expenses is based on the 2019 capital
plan with costs allocated 60% water and 40% sewer.
Asset Repair and Replacement Provision
When assets require rehabilitation or replacement, the source of funds is
essentially limited to reserves or contributions from operating. In maintaining a
user -pay approach, it is important for the City to build sufficient reserves for the
scheduled replacement of infrastructure through contributions from operating.
To mitigate an impractical increase of the user rates, contributions to the City's
asset management reserve and infrastructure renewal related investments are
phased in gradually. By the end of the planning period, 2029, the City will be
making more significant annual renewal investments and reserve contributions -
providing a funding source for future infrastructure repair and replacement.
The 2029 asset investment includes the in -year rate funded share of capital
identified in Table 1 plus an additional allocation for future asset repair and
replacement — the City will be at 29% of total sustainable investment
requirement by the end of the period.
Note*:Thesustainableannualfundingrequirementshove been adjustedtoaccountforinflation.The figureshown
represents the sustainable investment in 2029 dollars.
Rate Structures and Calculated Rates
Various water and sewer rate structures are in place across Canadian
municipalities. The varying rate structures include flat rates, constant rates,
humpback block rates, declining and inclining block rates. The rate structure
selected depends on whether the end-users are equipped with a water meter.
Tables 3 and 4 below provide a summary of the existing 2019 water rates in Saint
John for customers who are charged on a flat rate basis (Table 3) and customers
charged both a fixed and consumption based fee (Table 4).
WOU
-6 -
Table 3. ..
HouseholdTypical
Current vs. Calculated
vs. Calculated 2020 Rates
2019
Existing
2020
Calculated
Change ($)
1. Water S643
S789
+ S146 +22.7°0
2. Sewerage 785
639
- 146 -18.61%
3. Total Water + Sewer $1,428
$1,428
+$0(0.0%)
Table 4. 2019
Current Rates
vs. Calculated 2020 Rates
Categories
All Accounts
Water 2019
Sewer 2019
(122% of
Water
Water 2020
Sewer 2020
(81% of Water)
Metered: Fixed Charge:
$/Month
2
In -year rate funded capital
$3,723,800
$1,546,550
5/8"
518.03
822.00
822.20
517.97
3/4"
$22.07
$26.93
$27.17
$22.00
1"
$30.14
$36.77
$37.10
$30.04
112"
$39.63
$48.35
$48.79
$39.50
2"
$79.06
$96.45
$97.32
$78.80
3"
$164.29
$200.43
$202.24
$163.74
4"
$285.71
$348.57
$351.71
$284.76
6"
$449.02
$547.80
$552.75
$447.52
8"
$645.20
$787.14
$794.25
$643.05
10" and over
$873.83
$1,066.07
$1,075.70
$870.92
Consumption Charge: $/m3
Tier 1: 0 - 50m3 /month
$1.6123
$1.9670
$1.9848
$1.6069
Tier 2: > 50m 3/month
$1.0267
$1.2526
$1.2639
$1.0233
Non- Metered:
Fixed Charge: Per Month
$53.58
$65.42
$65.76
$53.24
Note: The third consumption tier is eliminated and further explained in this report.
Table 5 below provides a summary of the 2020 rate funding requirements for
each of the water and sewer systems. Revenue from the potable water and
sewer system in 2020 is forecast to be $38.2 million ($22.0 million and $16.2
million respectively). This is the amount of revenue which must be collected
through the sale of potable water and the sewerage surcharge to fully recover
the operating, capital, rehabilitation and replacement costs of the systems.
Note: Non -metered rate revenue includes funds received for. Stormwater levy, fire protection levy,
previous year's surplus and other minor sources.
PGA
Table S. Calculation of the 2020 Net Rate Funding Requirement
Ref #
Categories
Water
Sewer
1
Operating Expenditures (including repayment of debt)
$21,586,107
$16,333,667
2
In -year rate funded capital
$3,723,800
$1,546,550
3
Transfer to/(from) Reserve
$0
$0
4
Less: Non -metered Rate Revenue
$3,270,676
$1,687,150
Total Net Rate Funding Need = (1+2+3-4)
$22,039,231
$16,193,066
Note: Non -metered rate revenue includes funds received for. Stormwater levy, fire protection levy,
previous year's surplus and other minor sources.
PGA
Historically, all costs and revenues for all users have been captured under the
potable water budgets, however now both the costs of providing east and west
raw water services and the revenues generated for each are recorded
independently from the potable system to allow for full cost recovery from
industries.
A summary of the full cost analysis is summarized as follows:
• Despite the lower city-wide net rate funding requirement in 2020, the
transition to raw water based user fees for industrial customers, from
the city-wide potable rate calculation, will put additional pressure on
the potable water user rates to cover the foregone revenue. However
staff have anticipated and have been planning for this change and
therefore the plan is to maintain the 2019 existing flat rate in 2020.
• Over the long-term, it is expected the net rate funding requirements
for both the City's water and sewer system are to increase at an
average rate of 2.3% per annum (with 2020 at 0%), similar to the long-
term average increase in operational expenditures.
• There is a commitment to continuing to explore initiatives in an effort
to maintain and improve services while reducing costs — savings have
been incorporated into the analysis and estimated to be $100,000 per
year and calculated on a cumulative basis starting in 2021.
In order for the City to recover the costs associated with providing these
services, necessary adjustments to the utility rates are required and Tables 3 and
4 provide a summary of the calculated 2020 utility rates.
To test the impact of the new rates on the City's residents and businesses, a
sensitivity analysis was undertaken to quantify the range of rate impacts and the
results are as follows.
Metered properties serviced by both water and sewer will experience a similar
rate change to those flat rate users identified in Table 3, regardless of the
amount of water consumed. The exception rests with properties serviced only by
water or only by sewer. Rate changes for water customers are more significant
as those users would not see the benefit of the decreased sewerage surcharge.
Overall, the properties that are serviced only by water will see a rate increase
upwards of about 23 per cent in 2020 only (as shown in Table 3). It is anticipated
that users who see an increase of that magnitude is limited to less than 2% of all
connections and represent about 8.5% of all potable water revenue generated.
Furthermore, approximately two-thirds of the water only customers in this
category are relatively low volume users with consumption only in Tier 1 and the
calculated 2020 rates translate into an increase of about $12 per month over the
existing rates.
PIN:]
Likewise those properties serviced only by sewer will see rate decreases on the
order of 19% as shown in Table 3 as those users will not see the offsetting cost
increase associated with water. Those sewer only customers seeing a decrease
of that magnitude are just over 1% of the connections.
MOVING FORWARD
Moving forward the following rate structure recommendations have been
provided by Hemson.
Maintain Declining Block Rate Structure
A declining block rate structure is a tiered approach in which the unit price of
water decreases relative to water use and Hemson is recommending maintaining
the declining block rate structure.
Reduce the Number of Consumption Tiers
As consumption in the City has changed over the last decade and the existing
consumption tiers do not accurately reflect potable non-residential water
consumption patterns. Also as the City transitions some existing large industrial
water customers to a raw water based billing structure, these customers will be
billed separately which will not make use of the existing three tier structure.
Furthermore, only in 2007 and 2008 did some potable water consumers reach
the third tier. No water consumption has been billed to Tier 3 since 2008 and
therefore Hemson has recommended removing the third consumption tier from
the rate structure as shown in Table 5. Since no flow has billed since 2008 in Tier
3 this change will be purely administrative, and existing non-residential
customers will not see any change on the total bill as a result.
ProposedTable 5
Existing Water Rate Structure vs.
Existing Consumption Tier
Proposed Consumption Tier
Tier 1 0-50 m3Tier
1: 0 — 50m3
Tier 2 (50-125,000 m3Tier
2: > 50m3
Tier 3 (>125,000 m3
-
Maintain Fixed Charges by Meter Size
The City's current fixed charge is differentiated by the size of the water meter
and generally follows municipal best practices — the fixed charge is greater for
those customers with a larger meter size (or service size) to reflect either the
flow arising from the size of the meter or the investment required to install the
meter.
Since the existing equivalent factors are already differentiated by meter size and
are somewhat reflective of sample investment equivalent ratios used by the
American Water Works Association (AWWA)/Canadian Water and Wastewater
Association (CWWA) and change is not warranted.
Wel
-9 -
Long Term Financial Plan — 2020 - 2029
In undertaking the analysis, a long term financial planning model covering a ten-
year period from 2020 to 2029 was developed using the 2019 approved budget
to inform new utility rates for 2020.
The overall rate impact, per year, is anticipated to be lower than the annual rate
adjustments implemented in recent years. The figure below indicates that the
cumulative rate increase for customers receiving both water and sewerage
services is expected to be around 2.3% per annum post 2020 (with 2020 at 0%),
which is less than half of the average annual rate increases experienced over the
last 10 years which were driven by the harbour clean-up and the SCDWP.
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$80
0
$60
0
$40
Typical Flat Rate User Rate Projection
Historical vs. Projected Increases to
2029
6% Average 0%
annual
2.3% Average
�fwwwwwwww _
tiQ PN P^"
yL �3 tia PN PN
y� y1 y9� tih do �� ti� c+ w", tib' �A "� "o
,yc.! �O LO 10 PO l0 �O � „�O ,LO LO y0 �0 �O '01 ,ti0 .LO '0 0 0
As part of its process for updating rates Hemson has recommended the City
undertake a comprehensive rate review every three to five years to ensure that
a nexus between costs and revenues is maintained overtime.
SERVICE AND FINANCIAL OUTCOMES
N/A
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The Water & Sewer Rate Study has been reviewed by staff at Saint John Water and the
City of Saint John's Finance team.
ATTACHMENTS
1. Water & Sewer Rate Study
2. Water & Sewer Rate Study Presentation
P49191
231
WATER & SEWER
RATE STUDY
M3,1211IM11
HEMSONConsulting Ltd.
November 2019
TABLE OF CONTENTS
EXECUTIVE SUMMARY...............................................................................................1
1 BACKGROUND AND STUDY OBJECTIVE.........................................................8
A. BACKGROUND.........................................................................................8
B. STUDY OBJECTIVE....................................................................................8
II DEMAND ANALYSIS........................................................................................11
A. GROWTH FORECAST..............................................................................11
B. METERED CONNECTIONS......................................................................12
C. WATER CONSUMPTION FORECASTS....................................................14
D. WATER CONSUMPTION ADJUSTMENTS...............................................17
III OPERATION AND MAINTENANCE COSTS.....................................................20
A. OPERATING EXPENDITURES..................................................................20
B. NON -USER RATE REVENUES..................................................................24
IV INFRASTRUCTURE AND CAPITAL...................................................................26
A. WATER AND SEWER INFRASTRUCTURE................................................26
B. CAPITAL AND CONTRIBUTIONS TO RESERVE......................................27
V RATE STRUCTURES..........................................................................................31
A. BACKGROUND.......................................................................................31
B. MOVING FORWARD..............................................................................32
VI CALCULATED RATES........................................................................................36
A. LONG-TERM RATE OUTLOOK...............................................................40
VII RECOMMENDATIONS AND FINDINGS..........................................................43
Appendix A Detailed Rate Calculations
Appendix B Rate Structure Survey of Canadian Municipalities
HEMSON
EXECUTIVE SUMMARY
The City of Saint John provides quality drinking water from the South Bay Wellfield
and Loch Lomond/Latimer Lakes. The water is then distributed through
approximately 500 kilometres of distribution and transmission water pipes. The City
has recently embarked upon the construction of a 75 million litre per day water
treatment plant, the renewal and installation of 26 kilometres of water
transmission/distribution mains, the renewal of 3 dams and the development of the
new South Bay Wellfield at a cost upwards of $200 million to bring safe, clean drinking
water to the citizens of Saint John. The construction of the water treatment plant
titled the "Safe Clean Drinking Water Project" became operational in August 2018 to
reduce the occurrence of boil water orders and service interruptions.
In 2008, the City of Saint John undertook a water and sewer rate study to analyze the
full cost of providing services, and the results of this study form the basis for which the
City bills its customers today. The City of Saint John has not completed a thorough
review of their water and sewer rates since 2008 and there have been changes to the
pattern of water consumption in the City. Furthermore, with the new water treatment
plant now complete and operational, there will be an adjustment in the way the City
delivers services to both residential and non-residential customers. These changes
necessitate a review of the water rates for non-residential users, most notably large
industrial users using non -potable (or raw water) which would also impact user rates
for potable users.
Hemson was retained by the City of Saint John to undertake a comprehensive Water
and Sewer Rate Study with a view of calculating utility rates under the City's existing
rate structure and to examine the costs and benefits of universal metering in the City
while evaluating the user rate implications under this scenario. This report only
addresses the utility rates under the City's existing structure while an independent
universal metering research report was issued under separate cover. The key goals of
this assignment are as follows:
• Determine water consumption and sewer usage by different types of users;
• Estimate total anticipated water and sewer demand;
• Calculate rates that reflect full recovery of system operating costs;
• Calculate rates that reflect full recovery of capital infrastructure financing
needs; and
• Establish reserves to fund the rehabilitation and replacement of infrastructure.
HEMSON
I
In undertaking the analysis, a long-term financial planning model covering a ten-year
period from 2020 to 2029 was developed using the 2019 approved budget and 2020
draft budget to inform new utility rates for 2020.
With the Safe Clean Drinking Water Project now online, 2020 will represent a shift
in service delivery. Historically, all costs and revenues for all users have been captured
under the potable water budgets. The costs of providing east and west raw water
services and the revenues generated for each are now recorded independently from the
potable system. The table below summarizes the 2019 consumption and billing for
each customer relative to the new billing structure moving forward. It should be noted
that all east and west industrial customers will transition to raw water based rates in
2020. For the purposes of this report, 2020 is considered to be the first full year of raw
water billing for all industrial customers.
Non -Residential Customer
Transition — Potable
Billing
Non-residential Potable Water
2019 Consumption & Billing (1)
New Structure: 2020 Billing
Users
1. Irving Oil Ltd.
4,250,000 m3
New East Industrial Raw Water
Potable Water Rates
Rate
2. Irving Oil Ltd.
4,1 50,000 m3
New East Industrial Raw Water
Special Agreement Rates
Rate
3. Irving Pulp and Paper.
39,000,000 m3
New West Industrial Raw Water
Potable Water and Special
Rate
Agreement Rates
4. Coleson Cove
625,600 m3
New West Industrial Raw Water
Potable Water Rates
Rate
5. Irving Paper (at the Flume)
3,123,000 m3
New East Industrial Raw Water
Special Agreement Rates
Rate
Assessment of 2019 consumption revenue if customers maintained
$6,641.2
under one potable system ($000) (current state revenue)
Note 1: 2019 represents anticipated consumption.
Using the 2019 approved budget as a base, the table below summarizes costs which can
reasonably be allocated to the delivery of raw water to these customers. For the
purposes of this study, all costs shown are to reflect the potable budget adjusted figures
which relate to the costs of providing water services to the potable customers only. A
separate rate model has been developed for City staff to use in calculating raw water
rates for both the east and west industrial customers.
HEMSON
MEII
3
Note: Corporate Administration includes budget items such as infrastructure management (municipal
engineering), additional post employment benefits and other internal charges
Considering the costs allocated to the industrial system from potable, the net shortfall
to be recovered from existing potable users is about $1.8 million. It is important to
note, additional capital costs, asset management and rate stabilization reserve transfers
are accounted for in the raw water rate calculation, above the $4.3 million costs
HEMSON
2019 ApprovedBudget
p, III
Base
Budget
Budget
Rationale and Description
Budget
Raw Water
Potable
2019
2019
2019
1. General
$17,149.8
$0.0
$17,149.8
• All costs are related to the general
Operations:
delivery of potable water services
2. Industrial
$2,583.8
$2,583.8
$0
• Operating costs of $2,583.8 associated
Water
with the supply of raw water to west
and east industrial customers for
recovery under the new industrial full
cost rates.
• These costs have historically been
recovered from a combination of
potable water and negotiated rates.
3. Corporate
$1,523.3
$0.0
$1,523.3
• All costs are related to the general
Administration
delivery of potable water services.
• Corporate Administration costs are
allocated within the industrial water
category
4. Fiscal
$6,159.3
$1,697.6
$4,461.7
. Debt servicing costs of about $1,697.6
Charges (Debt)
associated with the west and east
Industrial systems have been allocated
to those specific users and removed
from the city-wide potable rate
calculations.
• These costs have historically been
recovered from a combination of
potable water and negotiated rates.
Total
Operating
$27,416.2
$4,281.4
$23,134.8
Costs
Costs Transferred from base uniform Potable System
$4,281.4
budget to Industrial System Recovery (1 + 2 + 3 + 4):
Total Revenue if maintained under one potable system
$6,099.0
(and not charged raw water' rates)
Note: Corporate Administration includes budget items such as infrastructure management (municipal
engineering), additional post employment benefits and other internal charges
Considering the costs allocated to the industrial system from potable, the net shortfall
to be recovered from existing potable users is about $1.8 million. It is important to
note, additional capital costs, asset management and rate stabilization reserve transfers
are accounted for in the raw water rate calculation, above the $4.3 million costs
HEMSON
In
associated to industrial users.' This ensures that the full cost of providing services to
the raw water customers is reflected in the raw water rate calculations.
A summary of the full cost analysis is illustrated below and summarized as follows:
Potable System Cost Comparison:
2019 vs. 2020
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$- IBBD
$(10,000,000)
General Debt (Fiscal Capital Transfers Non -Rate Industrial Total Net
Operating Services) (Rate to/(from) Revenues Water Funding
Funded) Reserve Need
® 2019 Budget ® 2020
Note: 2019 approved budget includes the total city-wide potable and east and west industrial
budgets. 2020 based on draft budget and reflects the adjusted potable budget only (i.e. east and
west industrial costs are excluded).
• Despite the lower city-wide net rate funding requirement in 2020, the
transition to raw water based user fees for industrial customers, from the city-
wide potable rate calculation, would typically place additional pressure on the
potable water user rates to cover the foregone revenue. With this said, the City
has been planning for this change in service delivery for a number of years and
therefore the City is targeting to maintain the existing flat rate charges in 2020.
• The required water and sewer user rate revenue from the potable system in
2020 is forecast to be $38.2 million ($22.0 million and $16.2 million
respectively). This is the amount of revenue which must be collected through
the sale of potable water and the sewerage surcharge to fully recover the
operating, capital, rehabilitation and replacement costs of the systems.
I Detailed calculations for east and west industrial rates are provided in the standalone
documents: EastSalntJohn Industrial Raw Water Rate Reportand WestSarntJohn Industrial
Raw Watergate Report
HEMSON
P19i.1
• Over the long-term, it is expected the net rate funding requirements for both
the City's water and sewer system are to increase at an average rate of 2.3% per
annum (with 2020 at 0%), similar to the long-term average increase in
operational expenditures. It is projected that the water and sewer net rate
funding requirements will increase to $27.1 million and $20.3 million
respectively by 2029.
• The City is committed to continuing to explore initiatives in an effort to
maintain and improve services while reducing costs - such savings have been
incorporated into the analysis and estimated to be $100,000 per year and
calculated on a cumulative basis starting in 2021.
In order for the City to recover the costs associated with providing these services,
necessary adjustments to the utility rates are required. The table below provides a
summary of the calculated 2020 utility rates required under the existing rate structure.
2019
Current Rates vs.
Calculated 2020
Rates
All Accounts
Water 2019
Sewer 2019
(122% of
Water)
Water 2020
Sewer 2020
(81 % of
Water)
Metered: Fixed Charge:
$/Month
5/8"
$18.03
$22.00
$22.20
$17.97
3/4"
$22.07
$26.93
$27.17
$22.00
1"
$30.14
$36.77
$37.10
$30.04
1 1/2"
$39.63
$48.35
$48.79
$39.50
2"
$79.06
$96.45
$97.32
$78.80
3"
$164.29
$200.43
$202.24
$163.74
4"
$285.71
$348.57
$351.71
$284.76
6"
$449.02
$547.80
$552.75
$447.52
8"
$645.20
$787.14
$794.25
$643.05
10" and over
$873.83
$1,066.07
$1,075.70
$870.92
Consumption Charge: $/m3
Tier 1:0-50m3/month
$1.6123
$1.9670
$1.9848
$1.6069
Tier 2: > 50m 3/month
$1.0267
$1.2526
$1.2639
$1.0233
Non- Metered:
Fixed Charge: Per Month
$53.58
$65.42
$65.76
$53.24
Note: The third consumption tier is eliminated and further explained in section V of this report.
HEMSON
P19Y/
Con
In order to test the impact of the new rates on the City's residents and businesses, a
sensitivity analysis was undertaken to quantify the range of rate impacts to both the
residential and non-residential properties in the City. The results of the sensitivity
analysis is illustrated below.
Comparison Charges
Current vs. Calculated
.. r Annum)
2019
Existing
2020
Calculated
Change ($)
1. Water $643
$789
+ $146 (+22.7%)
2. Sewerage $785
$639
$146 (-18.61 %)
r3. Total Water +Sewer $1,428
$1,428
+
As rate adjustments are applied uniformly to all customer classes, metered properties
serviced by both water and sewer will experience a similar rate change to those flat
rate users identified above, regardless of the amount of water consumed. The exception
rests with properties serviced only by water — rate changes are more significant as those
users would not see the benefit of the decreased sewerage surcharge. Overall, the
properties who are serviced only by water will see a rate increase upwards of about 23%
in 2020 only. It is anticipated that users who see an increase of that magnitude is
limited to less than 2% of all connections and represent about 8.5% of all potable
water revenue generated. Furthermore, approximately two-thirds of the water only
customers in this category are relatively low volume users with consumption only in
Tier 1 and the calculated 2020 rates translate into an increase of about $12 per month
over the existing rates.
The overall rate impact, per year, is anticipated to be lower than the annual rate
adjustments implemented in recent years. The figure below indicates that the
cumulative rate increase for customers receiving both water and sewerage services is
expected to be around 2.3% per annum post 2020 (with 2020 at 0%), which is less
than half of the average annual rate increases experienced over the last 10 years which
were ultimately driven by the harbour clean-up and the Safe, Clean Drinking Water
Project. Overall, the City has been fiscally responsible in preparing for the completion
of the treatment plant as well as the transition in service delivery for raw water and
potable water customers.
HEMSON
P191:1
7
Typical Flat Rate User Rate Projection
Historical vs. Projected Increases to 2029
2.3% Average annual
$z,000 rate increase
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
6% Average annual 0% change
rate increase �...... �
yca by y'1, y1) yb y43 y(o tiA ti0 y0 ,LO ,LS, y1, ,L'3 ,Lb 43 tib tiA ti0 ,10
.yo y0 ,yo .yo y0 ,yo .yo y0 .yo y0 yO ,LO LO ,yo ,LO y0 ,yo ,LO y0 ,LO
Note: Red Bars relate to historical period and blue bars relate to forecast. Total Household charge for users
receiving both water and sewerage services.
Staff have been provided with the utility rate setting full costing model to monitor
costs and revenues and assist with future rate updates. As part of its process for updating
rates:
• It is recommended the City undertake a comprehensive fee review every three
to five years to ensure that a nexus between costs and revenues is maintained
over time; and
• Both residential and non-residential trends should be monitored closely.
HEMSON
Hel
I BACKGROUND AND STUDY OBJECTIVE
A. BACKGROUND
The City of Saint John is centrally located on the southern New Brunswick coast on
the Bay of Fundy. The City is the second largest in New Brunswick with a current
population of approximately 68,000 persons and 33,800 households.
The City of Saint John provides quality drinking water from the South Bay Wellfield
and Loch Lomond/Latimer Lakes. The water is then distributed through
approximately 500 kilometres of distribution and transmission water pipes. The City
has recently embarked upon the construction of a 75 million litre per day water
treatment plant, the renewal and installation of 26 kilometres of water
transmission/distribution mains, the renewal of three dams and the development of
the new South Bay Wellfield at a cost upwards of $200 million to bring safe, clean
drinking water to the citizens of Saint John. The construction of the Loch Lomond
drinking water treatment facility was completed in summer 2018 and began servicing
the city on August 30th 2018 to reduce the occurrence of boil water orders and service
interruptions.
In 2008, the City of Saint John undertook a water and sewer rate study to analyze the
full cost of providing services, and the results of this study formed the basis for which
the City bills its customers today. The City of Saint John has not completed a
thorough review of their water and sewer rates since 2008 and there have been changes
to the pattern of water consumption in the City. Furthermore, with the new water
treatment plant now complete and operational, there will be an adjustment in the way
the City's existing large industrial customers are billed for water services — these
industrial customers moving forward will be billed for raw water while historically they
have been billed potable water rates or special negotiated user rates in which the
revenue was used to offset system -wide expenditures. It is in this context that the City
of Saint John initiated a water and sewer rate study.
B. STUDY OBJECTIVE
Hemson was retained by the City of Saint John to undertake a comprehensive Water
and Sewer Rate Study with a view of calculating utility rates under the City's existing
rate structure and to examine the costs and benefits of universal metering in the City.
HEMSON
PZ1IM
M
Universal metering measures the volume of water consumption for every
household/business in the specified area through the installation of water meters that
use a meter -based billing practice. The universal metering exercise is intended to
provide the City with information necessary to inform future decisions of metering all
properties in the City.
The objective of this report is to review and recommend new water and sewer rates
that address the full cost of providing services under the City's existing rate and billing
structure. The utility rate analysis and long-term projection of rates under a universal
metering scenario was issued as a standalone report under separate cover.
The first step in a study of this nature is to establish a population and household
forecast, as this is the basis for determining anticipated water consumption and sewer
generation levels. The study examines the period from 2020 through 2029, using the
2019 approved budget and 2020 draft budget to inform new utility rates for 2020.
Following the demographic analysis, the current water and sewer rates, reserves and
annual operating and capital budgets are analyzed. Based on this analysis, the financial
position of the City's water and sewer systems is determined.
The next step in the study process is to examine the existing rate structure and provide
recommendations for change. It should be noted that alternative rate structure and
funding scenarios have been tested under a universal metering exercise and those
results are identified under separate cover. The final step in the process is to evaluate
the impacts of implementing the proposed rate structure and resulting full cost
recovery rates to the residents and businesses of the City.
In undertaking this analysis, a financial model was developed and serves as a dynamic
rate setting tool. Using the model, the City is able to perform sensitivity analyses of
water and sewer rates, rate structure and also phase-in options. The model includes
future capital expenditure requirements and projects future operating and
maintenance costs. It also calculates the water and sewer rates necessary to recover the
full costs of the City's water and sewer systems. The utility rate model also ties in the
raw water rate setting models for the east and west industrial customers to ensure all
operating and capital costs are properly recovered. The following diagram (Figure 1)
illustrates the overall approach.
HEMSON
10
Figure 1
Utility Rate Setting Model
WATER AND WASTEWATER
FLOW
FORECAST
CAPITAL ASSET LIFECYCLE I I I EXPENDITURES I I NON -USER RATE REVENUES
OPERATING FORECAST _______ NON -USER RATE REVENUES
(Penalties, connection fees etc)
rrtUViJiUry V RCJCRVCJ CAPITAL FORECAST CHARGES/ GRANTS /
REPAIR & REPLACEMENT FOR FUTURE REPAIR & (Growth and Non -Growth) DEV CONTRIBUTION
OF EXISTING ASSETS REPLACEMENT OF
EXISTING ASSETS
NET FUNDING REQUIREMENT
WATER CONSUMPTION/ WASTEWATER
GENERATION & USER PROFILE
WATER RATES I I WASTEWATER RATES
HEMSON
pzya
II DEMAND ANALYSIS
Future costs of the City's water and sewer system will largely be driven by demands
placed on the system by water consumers. A forecast of future consumption demands
must therefore be developed.
A. GROWTH FORECAST
The population and household projections used in this study were based on the City's
forecast of new connections. The City's current census population of approximately
67,600 persons is expected to remain fairly constant, increasing modestly to 67,900
persons by 2029. Even with the relatively flat population due to declining household
sizes, 150 new households over the same period is expected and all new units will be
in the City's urban areas serviced by water and sewer. By 2029, the City will have
nearly 34,000 households. Figure 2 below illustrates the projected population and
growth in households over the planning period.
40,000
717,171717
60,000
50,000
417,171717
30,000
20,000
'w,000
0
Figure 2
Population and Household Forecast
I CJ rr) 'I? U) 4D Ir". 00 U) 0
0 0 0 0 0 0 0 0 0 r1 rr-....i{ Cr....J{ tr.V...{1 r....{U) 4r..C..{ IrI"....•{ rX.0 Cr....7 0 CiJ CCJJ tr1 CJ C!JY 4CD ICI"•J CXJ U7
Ce n s G.0 s Po pz .0 l ati o ro I: Me l l i n g;s
Source: Hemson Consulting Ltd. based on City of Census information and City data
HEMSON
Pz191
12
B. METERED CONNECTIONS
The first step in the utility rate calculation is to project the number of new connections
anticipated to be connected to water and sewer services over the next ten -years (2020-
2029). The estimated growth in the total number of water and sewer connections over
the forecast period to 2029, was informed through discussions with City staff and a
review of historical growth patterns.
In the City of Saint John, most residential water and sewer customers are billed a flat
rate water charge (with no volumetric charge), as this group does not have water
meters. Most non-residential customers are water meter equipped and billed on a flat
rate charge based on meter size, and a volumetric charge based on consumption.
Furthermore, sewer generation is billed based on water consumption, however not all
water service customers in the City receive sewer services. As a result, there are less
billable sewer connections than billable water connections. For these reasons, separate
forecasts for billable water and sewer connections have been prepared. This section
outlines the assumptions used in the metered connection forecast.
1. Water Service Connections
The City's billable water connections have been forecast for both metered users and
flat rate users separately.
In the City, virtually all metered connections are associated with non-residential and
multi -residential customers. As of year-end 2018, there were approximately 3,100
metered connections. Approximately 1,860 customers are equipped with a 5/8" meter,
which represents about 60% of total metered connections. New non-residential
development is often difficult to predict and therefore for the purposes of this study,
no growth in overall metered connections is assumed over the ten-year period (Table
1).
HEMSON
QzE11
13
Water Meter
Size
Table
Metered Water
2019
Connections
1
Connections
2029 Estimated
Connections
Growth
2019-2029
5/8"
1,856
1,856
0
3/4"
155
155
0
1"
432
432
0
1 1/2"
284
284
0
2"
272
272
0
3"
57
57
0
4"
26
26
0
6"
13
13
0
8"
3
3
0
10" and over
6
6
0
Total Metered
Connections
3,104
3,104
0
Flat rate connections, including customers who do not have a water meter, are billed
relative to the number of units on each connection without regard to consumption.
Virtually all flat rate connections in the City are associated with residential customers.
As of year-end 2018, there was 16,000 billable flat rate connections — of this total, a
very small share of customers receive servicing in their neighbourhoods but are not
connected to the system. Similar to historical trends, only a marginal amount of
growth is anticipated over the next ten years — 175 new billable connections are
anticipated over the planning period to 2029 (Table 2).
2. Sewer Service Connections
The number of billable sewer connections have been forecast in a similar approach to
water. As of year-end 2018, there is approximately 2,990 sewer connections that have
their water service metered in the City, with the majority of connections (about 60%)
equipped with a 5/8" meter. For comparison, 96% of water metered users are also
connected to sewer services. Similar to the water connection forecast, for the purposes
of this study, no growth in overall sewer connections is assumed over the ten-year
period (Table 3).
HEMSON
14
Water Meter
Size
Table
Sewer Connections
2019
Connections
3
2029 Estimated
Connections
Growth
2019-2029
5/8"
1,800
1,800
0
3/4"
160
160
0
1"
422
422
0
1 1/2"
273
273
0
2"
248
248
0
3"
54
54
0
4"
24
24
0
6"
7
7
0
8"
3
3
0
10" and over
3
3
0
Total
2,994
2,994
0
As of year-end 2018, there were approximately 15,890 flat rate connections in the
City, with a small portion of less than 1%, associated to customers who receive
servicing in their neighbourhoods but are not connected to the sewer system. Similar
to historical trends, only a marginal amount of growth is anticipated over the next ten
years — 175 new billable connections are assumed over the planning period to 2029
(Table 4).
C. WATER CONSUMPTION FORECASTS
The water demand forecast over the planning period of 2020-2029 was developed
using actual metered consumption data with consideration of the trends observed in
the most recent year-end figures (as of 2017) and ongoing non-residential water
conservation measures.
The forecasts of consumption have been prepared relative to the three areas receiving
water services: city-wide potable water, west and east industrial raw water supply. The
sections that follow summarize the total billed consumption assumed under the
potable system. Table 5 below describes what types of users are included in each
category, although, only the potable water usage component is included in the rate
calculations under this report.
HEMSON
15
In our most recent water and sewer rate studies, we have found that customer profiles
have been changing over time: generally, water consumption patterns have been
declining, even with the addition of new residential and non-residential connections
— similar to the trend seen in jurisdictions across Canada. For the non-residential
sector, the reduced level of water consumption can largely be related to initiatives by
industrial/commercial operations — non-residential users continue to adapt their
business processes to be more efficient and environmentally friendly.
As illustrated in Figure 3 below, notwithstanding the uptick in non-residential (and
multi -residential) water consumption in 2016, water consumption in the City has
been declining since 2007. In this regard, metered consumption has declined from
about 7.0 million m3 in 2007 to about 5.5 million m3 in 2017 while reaching a low in
2014 of 5.2 million m3. For the purposes of this study, consumption has been
moderated and maintained at about 5.46 million m3 per annum over the planning
period. This forecast recognizes that there will likely continue to be shifts in total
billed water year -over -year but overall indicative of future trends. Unlike water
consumption, sewer flows are not metered. For the purposes of this analysis, sewer flows
were assumed to be equivalent to water flows for the serviced connections. This
assumption allows for an equitable distribution of the sewerage system costs to users.
HEMSON
fPzVA
Table 5
Consumption
User Type
Description
2019 Billed
Consum tion Projection
Potable Water
• Includes all non-residential potable water
5,460,000 m3
System
consumption and excludes raw water
associated with the west and east
industrial categories described below.
• Does not include any consumption
associated with residential users currently
charged a flat rate. No water meters are
presently equipped for these users.
West Industrial
• Consumption associated with raw water
39,625,600 m3
provided to specific industrial customers.
• Includes raw water suppled to Irving Pulp
and Paper and Coleson Cove.
East Industrial
• Consumption associated with raw water
11,523,000 m3
provided to specific industrial customers.
• Includes raw water suppled to the Flume
(Irving Paper) and the Irving Oil Refinery.
Total
56,608,600 m3
Consumption
In our most recent water and sewer rate studies, we have found that customer profiles
have been changing over time: generally, water consumption patterns have been
declining, even with the addition of new residential and non-residential connections
— similar to the trend seen in jurisdictions across Canada. For the non-residential
sector, the reduced level of water consumption can largely be related to initiatives by
industrial/commercial operations — non-residential users continue to adapt their
business processes to be more efficient and environmentally friendly.
As illustrated in Figure 3 below, notwithstanding the uptick in non-residential (and
multi -residential) water consumption in 2016, water consumption in the City has
been declining since 2007. In this regard, metered consumption has declined from
about 7.0 million m3 in 2007 to about 5.5 million m3 in 2017 while reaching a low in
2014 of 5.2 million m3. For the purposes of this study, consumption has been
moderated and maintained at about 5.46 million m3 per annum over the planning
period. This forecast recognizes that there will likely continue to be shifts in total
billed water year -over -year but overall indicative of future trends. Unlike water
consumption, sewer flows are not metered. For the purposes of this analysis, sewer flows
were assumed to be equivalent to water flows for the serviced connections. This
assumption allows for an equitable distribution of the sewerage system costs to users.
HEMSON
fPzVA
16
Figure 3 below illustrates the forecast of metered' water throughout the planning
period to 2029. In 2020, the City is anticipated to bill approximately 5.46 million m3
of water. It is important to note that these figures only recognizes consumption
associated with potable water customers — those industries which are moving to
industrial raw water based systems are considered separately.
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
3
U 2,000,000
1,000,000
Figure 3: Projected Water Consumption
City of Saint John (Potable Customers Only)
O O O a—I a—I a—I a—I a—I a—I a—I a—I a—I
O O O O O O O O O O O O
N N N N N N N N N N N N
Year
i
cn
a q N N N N N N N N N
N N N N N N N N N N
Note: Projected billed consumption is related only to the City of SaintJohn Potable Water Systems
and excludes the consumption from those customers who will receive raw water on both the east
and west industrial system (see Table 5).
Details regarding the connections and forecast of consumption for the water and
sewerage systems are set out in the detailed rate calculations illustrated in Appendix A.
It is also important to note that of the total consumption, much of the billed water is
only in Tier I and 2; no water consumption has been billed to Tier 3 since 2008
(Figure 4). For administrative purposes, it may be advisable to consider removing the
third consumption tier from the rate structure.
2 For the purpose ofsettmg a utility, rate, only, the water that is gilled to the end-user is incorporated
into the analysis and used to calculate new utility, rates. This is referred to as hillahle (or metered)
water.
HEMSON
Pz1:1
17
Figure 4
Saint John Water Consumption by Tier, 2007-2017
10,000,000
9,000,000
8,000,000
7,000,000
E 6,000,000
5,000,000
v
3 4,000,000
U 3,000,000
2,000,000
1,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
® Tier 1 ® Tier 2 IIIIIIIIIIITier 3
D. WATER CONSUMPTION ADJUSTMENTS
With the new treatment plant now online, separation of the potable and industrial
water supply is now possible, thereby requiring an adjustment in the way the City
delivers services to both residential and non-residential customers. These changes
necessitate a review of the water rates for non-residential users, most notably large
industrial users using non -potable (or raw water) which will also have an impact on
potable user rates. These customers moving forward will be billed for the full cost of
providing raw water while historically these customers have paid potable water rates
or special negotiated user rates in which the revenue was used to offset system -wide
expenditures. Table 6 below summarizes projected 2020 consumption and existing
billing structure for each customer relative to the new billing structure in 2020. It
should be noted that all east and west industrial customers will transition to raw water
based rates in 2020. For the purposes of this report, 2020 is considered to be the first
full year of raw water billing for all industrial customers.
HEMSON
Table 6
Non -Residential Customer Transition - Potable
Non-residential Potable Water Projected 2020 Consumption & New Structure: 2020 Billing
Users 2019 Billing Structure (1)
1. Irving Oil Ltd.
4,250,000 m3
New East Industrial Raw Water
Potable Water Rates
Rate
2. Irving Oil Ltd.
4,1 50,000 m3
New East Industrial Raw Water
Special Agreement Rates
Rate
3. Irving Pulp and Paper
39,000,000 m3
New West Industrial Raw Water
Potable Water and Special
Rate
Agreement Rates
4. Coleson Cove
625,600 m3
New West Industrial Raw Water
Potable Water Rates
Rate
5. Irving Paper (at the Flume)
3,123,000 m3
New East Industrial Raw Water
Special Agreement Rates
Rate
Note 1: 2020 consumption projection is based on historical activity
Overall, the changes associated with the customers transitioning to raw water based
fees, and removed from the city-wide potable rate calculation, are expected to result
in revenue loss of about $6.1 million on the potable system (Table 7). Despite the loss
in revenue, approximately $4.3 million in costs are being allocated to the industrial
systems for recovery and therefore removed from the potable rate calculation. After
considering the costs allocated to the industrial system from potable, the net shortfall
to be recovered from existing potable users is about $1.8 million. It is important to
note, additional capital costs, asset management and rate stabilization reserve transfers
are accounted for in the raw water rate calculation, above the $4.3 million costs
associated to industrial users.3 This ensures that the full cost of providing services to
the raw water customers is reflected in the raw water rate calculations.
It is important to note that none of these customers are receiving sewer services from
the City and therefore this change in service has no effect on the sewer surcharge
calculations.
3 Detailed calculations for east and west industrial rates are provided in the standalone
documents: EastSalntJohn Industrial Raw Water RateReportand WestSarntJohn Industrial
Raw Water Rate Report
HEMSON
RUN
19
Assessment of Foregone Revenue
Water
Customer
Table 7
for Customers Transitioning to Raw
Based Billing
Total Estimated Revenue in
2019 if maintained under
current budget structure*
East Industrial
Irvin Oil
$3,058,900
Irving Paper (Flume)
$68,200
Sub -total East
$3,127,100
West Industrial
Irving Pulp & Paper
$2,329,200
NB Power (Coleson Cove)
$642,700
Sub -total West
$2,971,900
Grand Total
$6,099,000
Note*: Irving Oil current payment based on actuals to October 2019
and estimated to end of 2019. Irving Paper (Flume) is estimated based
on projected consumption only based on the existing rate structure.
Irving Pulp & Paper current payment based on actuals to October 2019
and estimated to end of 2019. NB Power (Coleson Cove) is estimated
based on projected consumption only based on the existing rate
structure.
HEMSON
251
W1
III OPERATION AND MAINTENANCE COSTS
The total revenue the City needs to collect through user rates is calculated by netting
off the non -user rate revenues from total expenditures.
A. OPERATING EXPENDITURES
The City of Saint John utility systems are operated in accordance to provincial
legislation that strives to assure safety, quality and reliability. The City of Saint John
operation and maintenance costs are comprised of four distinct components for the
purposes of this report:
1. General Operations: treatment, pumping, storage, metering, distribution, etc.;
2. Fiscal Charges (Debt servicing costs incurred);
3. Industrial Water; and
4. Corporate Administration: municipal engineering, internal charges and post
employment benefits.
As a result of the transition of the City's existing large industrial customers to a raw
water based billing structure, a share of the City's costs have also been allocated for
recovery by these customers. These costs have historically been captured under the
potable water budgets. The costs of providing east and west raw water services and the
revenues generated for each are now recorded independently from the potable system.
Table 8 below provides a summary of the 2019 operating costs which can reasonably
be allocated to the delivery of raw water to these customers. For the purposes of this
study, all costs shown reflect the potable budget adjusted figures, which relate to the
costs of providing water services to the potable customers only.
The in -year rate funded capital requirements (from operating) and transfers to reserves
are identified separately and can be found in Section IV of this report.
HEMSON
PM
21
Note: Industrial raw water costs are allocated to east and west industrial systems.
After adjustments, total operating expenditures for the potable water system in 2019
is $23.1 million and anticipated to increase to $23.4 million by 2029. As the
operational costs of the new treatment plant represent a significant share of total costs
($7.0 million or 30%), the cost projections outlined in this study should be monitored
and compared to actuals regularly to ensure the City is generating sufficient revenues
to cover expenses as the plant is a relatively new initiative.
The total operating expenditures for the sewer system in 2019 is $16.2 million and is
expected to increase to $18.2 million by 2029. Overall, no fundamental changes in
HEMSON
NX
Table 8
2019
ApprovedBudget
p, III
Rational and Description
Base
Budget
Budget
Budget
Raw Water
Potable
2019
2019
2019
1. General
$17,149.8
$0.0
$17,149.8
• All costs are related to the general
Operations:
delivery of potable water services
2. Industrial
$2,583.8
$2,583.8
$0
• Operating costs of $2,583.8 associated
Water
with the supply of raw water to west and
east Industrial customers for recovery
under the new industrial full cost rates.
• These costs have historically been
recovered from a combination of potable
water and negotiated rates.
3. Corporate
$1,523.3
$0.0
$1,523.3
. All costs are related to the general
Administration
delivery of potable water services.
• Corporate Administration costs are
already allocated within the industrial
water category
4. Fiscal
$6,159.3
$1,697.6
$4,461.7
• Debt servicing costs of about $1,697.6
Charges (Debt)
associated with the west and east
Industrial systems have been allocated to
those specific users and removed from
the city-wide potable rate calculations.
• These costs have historically been
recovered from a combination of potable
water and negotiated rates.
Total
Operating
$27,416.2
$4,281.4
$23,134.8
Costs
Costs Transferred from base uniform Potable System
$4,281.4
budget to Industrial System Recovery (1 + 2 + 3 + 4):
Note: Industrial raw water costs are allocated to east and west industrial systems.
After adjustments, total operating expenditures for the potable water system in 2019
is $23.1 million and anticipated to increase to $23.4 million by 2029. As the
operational costs of the new treatment plant represent a significant share of total costs
($7.0 million or 30%), the cost projections outlined in this study should be monitored
and compared to actuals regularly to ensure the City is generating sufficient revenues
to cover expenses as the plant is a relatively new initiative.
The total operating expenditures for the sewer system in 2019 is $16.2 million and is
expected to increase to $18.2 million by 2029. Overall, no fundamental changes in
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the delivery of sewer services are expected, and therefore, the cost increases are largely
driven by inflationary adjustments. Table 9 below summarizes the total operating
expenditures for water and sewer services.
Table 9
Projected Operating Expenditures Potable System ($000)
Potable Budget
Projected Costs
2019 0)
2020 «>
2029
Water Total
$23,134.8
$21,586.1
$ 23,368.9
General Operations (3)
$17,149.8
$15,639.8
$18,375.5
Fiscal Services (Debt)
$4,461.7
$4,384.0
$3,098.4
Industrial Water
$0.0
$0.0
$0.0
Corpora te A dm in is tra tion
$1,523.3
$1,562.3
$1,895.0
Sewer Total
$ 16,168.9
$16,333.6
$18,186.1
General Operations
$11,053.0
$11,285.5
$14,271.7
Fiscal Services (Debt)
$3,592.6
$3,512.8
$2,019.4
Corporate Administration
$1,523.3
$1,562.3
$1,895.0
Note 1: Based on 2019 approved budget (some costs have been moved to industrial rate recovery)
Note 2: Based on draft 2020 budget.
Note 3: Includes Safe Clean Drinking Water Project costs
1. General Operating Expenditures
Using the City's 2019 approved operating budget and draft 2020 budget, most
expenditures were increased annually at a rate of 2 percent to account for inflation.
General water operating expenditures amounted to $17.1 million in 2019 and
projected to increase to $18.4 million by 2029.
As the Safe Clean Drinking Water Project is completed and operational, it is expected
that the City will experience some additional cost savings related to temporary
personnel who will no longer be required now that the plant is functioning. Therefore,
the City's general operating expenditures are cumulatively reduced by about $294,000
by 2022. The personnel savings are assumed to phase-in over a two year period with
about $144,000 removed in 2021 and a further $150,000 in 2022. Furthermore, the
City is committed to continuing to explore initiatives in an effort to maintain and
improve services while reducing costs — such savings have been incorporated into the
analysis and estimated to be $100,000 per year and calculated on a cumulative basis
starting in 2021. The City continues to achieve operational efficiencies on an ongoing
basis and therefore 2020 total operational costs are anticipated to be lower than 2019.
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General sewer operating expenditures amount to $11.1 million in 2019 and are
projected to increase to $14.3 million by 2029.
2. Debt - Principal and Interest Payments
The City is expected to have outstanding debt of approximately $88.3 million related
to both the water and sewer systems by the end of 2020. The annual principal and
interest payments associated with this debt are funded through the utility rates. The
City is not planning to issue any further debt for capital related infrastructure
investments over the next ten years, and as a result, total debt payments are
anticipated to decline over the long-term. As debt is retired over the planning period,
the City plans to increase the amount of funds contributed to reserves for future asset
replacement. The annual debt payments (principal and interest) included in the
calculations for the potable system and sewerage system are shown in Figure 5 below:
Figure 5: Projection of Debt Costs (Principal + Interest):
Potable Water System Only and Sewer
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budget
® Potable Water ®Sewer
Note: Principal and Interest payments associated with the Safe Clean Drinking Water Project are included
3. Industrial Water
Operating costs of $2.6 million, associated with the supply of raw water to west and
east industrial customers, are identified in the 2019 approved budget. These costs have
been reallocated to both the east and west industrial system, from the city-wide potable
water system, for recovery under the new full cost rates. These costs have typically
been funded by a combination of negotiated and potable water rates.
4. Corporate Administration
The Saint John Water approved 2019 budget also includes about $3.0 million of
corporate administration costs which are identified independently from regular
distribution, treatment, metering or debt related expenses. These costs relate to
internal charges, infrastructure management and municipal engineering, as well as
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additional post employment benefits and is allocated evenly (at $1.5 million each)
between the water and sewerage system.
B. NON -USER RATE REVENUES
Non -user rate revenues are budget items which decrease the net operating budget and
are not recovered through the City of Saint John's water or sewer user rates. Table 10
provides a summary of the forecast of non -rate revenues. Operating expenditures and
non -user rate revenues for the water and sewer systems are set out in the detailed rate
calculations illustrated in Appendix A.
The City is forecast to recover approximately $5.3 million in 2019 through non -user
rate revenues for both the water and sewer system. Previous year's surplus funds are
being phased out and removed starting in 2023 — for reference purposes about
$981,000 in previous years' surpluses was used to offset the rate funding requirement
in 2019 and is budgeted to be about $486,200 in 2020. Vacant building revenue has
also been accounted for and amounts to $85,000 per year to 2029.
The Fire Protection and Stormwater Levies are treated as non -rate revenues. Fire
protection is a service provided through the City's water distribution system and is
therefore accounted in the net rate funding need for city-wide potable water services.
Stormwater management services are associated with the City's sewer system and are
accounted in the net rate funding requirement for sewer. Both levies are calculated
based on shares of operating expenditures associated to each service, consistent with
the City's yearly budgeting methodology. In 2019, the Fire Protection Levy amounts
to $2.6 million and the Stormwater Levy amounts to $940,000.
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this revenue has been reallocated to as non -rate revenue moving forward.
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IV INFRASTRUCTURE AND CAPITAL.
A. WATER AND SEWER INFRASTRUCTURE
The information contained in the analysis was gathered from the City's State of Local
Infrastructure Report prepared in 2017, which is rooted in the City's existing tangible
capital asset database. The information is used not only to describe, but also define the
quantity, condition and replacement value of the existing infrastructure. The
inventory was grouped into nine main asset categories, six of which relate to water
servicing and the remaining to sewer servicing. It should be noted that as the City's
asset management database is further developed, the updated information will better
inform future analyses.
The City's entire water and sewer system has a replacement value of about $1.13
billion. Of this value, about 82 per cent, or $929 million, is related to the City's linear
asset network (water distribution and sewer collection). Figure 6 below provides the
breakdown, by category, of the replacement value of the infrastructure.
Figure 6:
Water and Wastewater Assets by Replacement Value
Industrial Water, Wastewater
$13.24,1% Facilities, $139.53,
Drinking Water 13%
Access Roads, Wastewater Linear Wastewater Fleet,
$0.87, <1 % Collection, $1.49, <1 %
Drinking Water $383.66,34%
Machinery& Wastewater
Equipment, $0.59,
/�u����m�m�� Machinery &
�., ii �,,,
<1% � Equipment, $0.27,
Drinking Water
Fleet, $1.49, <1 % Wastewater
' /
Access
Roads, /°
Drinking Water $
Facilities, $45.03,
4%
Source: City of Saint John 2016 State of the Infrastructure Report
Note: Water Asset Categories in Blue. Sewer Asset Categories in Green
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The City's water and sewer infrastructure assets are overall considered to be in fair
condition with about 33 per cent ($362.15 million) in fair condition, 31 per cent in
very good condition ($350.83 million) and 10 per cent ($113.17 million) in good
condition. About a quarter of the infrastructure is in poor or very poor condition,
indicating that the City will likely be required to continue to invest in the repair and
replacements of these assets as they continue to age and deteriorate. Figure 7 below
illustrates the condition of the water and sewer system assets.
Source: City of Saint John 2016 State of the Infrastructure Report
B. CAPITAL AND CONTRIBUTIONS TO RESERVE
The approved 2019 capital budget, Tangible Capital Asset (TCA) information and
discussions with City staff were used as the basis for preparing the ten-year capital
forecast. In addition to the in -year capital requirements, Hemson has included annual
provisions to reserves, which would allow the City to prepare for the future repair and
replacement of existing infrastructure.
1. Projected Capital Expenditures
Over the next ten-year period (2020-2029), infrastructure investments will be
required to support new growth in the City and maintain the existing infrastructure
network. In 2014, the City started to fund capital renewal out of the operating budget
as a move to increase fiscal responsibility and reduce overall debt costs. The City has
been making additional annual investments to the Safe Clean Drinking Water capital
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asset reserve in recent years. In an effort to reduce the overall debt service pressure and
drive positive returns in the long-term for all rate payers, the future in -year funded
capital from operating is expected to be much lower than recent years. The table below
illustrates the in -year funded capital (from operating) for Saint John Water, which
includes both water and sewerage services over the last three budget years relative to
the approved 2019 budget. Strategically, the reduction in capital from operating
funding has been used to offset the new expenses associated with the Safe, Clean
Drinking Water Project in 2019 — this transition has mitigated further impacts on rate
payers. Moving forward, it is anticipated that the City will continue to undertake
regular capital repair and replacement activities to maintain infrastructure in a state
of good repair at similar funding levels to the 2019 approved capital budget, but
adjusted for inflation. The annual capital costs are still expected to be funded from
operating.
As illustrated in Table 12, the total capital expenditures which the City will be
responsible for funding is estimated at $58.8 million over the ten-year period. Overall,
about 62%, or $36.5 million, of the infrastructure is required to support water services
while the remaining $22.2 million is to support the sewer capital projects. It should be
noted that the City does not anticipate any additional debt financing measures to fund
the in -year capital expenditure requirements, therefore no additional principal and
interest payments beyond the existing debt are included in the analysis. It is important
to note that the figures noted below do not include any potential cost sharing or grant
funding from upper levels of government, and therefore, any funds received will be
applied towards further reducing the existing infrastructure deficit.
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Summary of Net Rate Funded Water
and Sewer Capital Program 000
2016
2017
2018
2019
Approved
Approved
Approved
Approved
Budget
Budget
Budget
Budget
Capital from Operating
$11,279.0
$12,725.0
$10,775.0
$4,700.0
Difference ($ and %)
-
$1,446 or
($1,950.0) or
($6,075.0) or
+13%
—15%
1 -56%
As illustrated in Table 12, the total capital expenditures which the City will be
responsible for funding is estimated at $58.8 million over the ten-year period. Overall,
about 62%, or $36.5 million, of the infrastructure is required to support water services
while the remaining $22.2 million is to support the sewer capital projects. It should be
noted that the City does not anticipate any additional debt financing measures to fund
the in -year capital expenditure requirements, therefore no additional principal and
interest payments beyond the existing debt are included in the analysis. It is important
to note that the figures noted below do not include any potential cost sharing or grant
funding from upper levels of government, and therefore, any funds received will be
applied towards further reducing the existing infrastructure deficit.
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Note: The allocation of capital expenses is based on the 2019 capital plan
with costs allocated 60% water and 40% sewer over the longer term period to 2029.
2. Asset Repair and Replacement Provision
In addition to annual operating and maintenance costs, and in -year capital as discussed
above, water and sewer infrastructure will require periodic rehabilitation and eventual
replacement. Capital expenditures to carry out the rehabilitation and replacement of
the aging infrastructure are not growth related and therefore would not receive funding
through developer contributions. When assets require rehabilitation or are due for
replacement, the source of funds are essentially limited to reserves or contributions
from operating. In maintaining a user -pay approach, it is important for the City to
build sufficient reserves for the scheduled replacement of infrastructure through
contributions from operating.
Based on the City's Asset Management Plan and State of the Local Infrastructure
Report, the average annual funding requirement to maintain the City's existing
infrastructure is estimated at $17.8 million for water and $12.8 million for sewer
services. A full cost approach is employed to calculate the annual reserve fund
contributions and is recognized as a fair approach to charging customers for the use of
these assets.
To mitigate an impractical increase of the user rates, contributions to the City's asset
management reserve and infrastructure renewal related investments are phased in
gradually over the analysis. By the end of the planning period, 2029, the City will be
making more significant annual renewal investments and reserve contributions
thereby providing a funding source for future infrastructure repair and replacement.
The table below provides a snapshot of the total annual asset investment relative to
the average annual sustainable funding requirement identified, by service, in 2029.
The 2029 asset investment includes the in -year rate funded share of capital identified
in Table 12 plus an additional allocation for future asset repair and replacement — the
City will be at 29% of total sustainable investment requirement by the end of the
period.
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Comparison
Table
13
000
Service
2029 Asset
Investment
2029 Sustainable
Funding Need*
% of Required
Contribution
Water
$6,994.7
$21,755.5
32%
Sewer
$3,735.8
$15,643.7
24%
Total
$10,730.5
$37,399.3
29%
Note l�• The sustainahle annual funding requirements has been adjusted to account for infiation. The
figure shown represents the sustainahle investment in 2029 dollars.
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V RATE STRUCTURES
Various water and sewer rate structures are in place across Canadian municipalities.
The varying rate structures include flat rates, constant rates, humpback block rates,
declining and inclining block rates. Rate structures may also include fixed or minimum
charges. The implementation of a particular rate structure depends on administrative
and financial factors. Furthermore, it is also important to recognize that the rate
structure is also dependent on whether the end-users are equipped with a water meter.
A. BACKGROUND
The City of Saint John provides potable water to about 14,000 residential accounts
and about 3,100 ICI accounts though a distribution system of over 500 kilometres of
linear water piping.
Currently, residential customers in Saint John are charged for water and sewerage
services on a flat rate basis relative to the number of units serviced. Under this rate
structure, the total bill remains constant regardless of the amount of water consumed
in each unit. Non-residential and multi -unit residential customers are metered and
water is charged on a per cubic meter basis. A fixed charge relative to the size of the
water meter is also levied in addition to the consumption based charge. The City
currently employs a three tier declining block structure for water services — under this
structure the unit price of water decreases relative to use. Sewerage services is levied
on a surcharge basis, equal to currently 122% of the water bill.
Flat -rate water bills are sent on a semi-annual basis while non-residential customers
have the water meters read every two months with subsequent bills issued accordingly.
Tables 14 and 15 below provide a summary of the existing 2019 water rates in Saint
John for customers who are charged on a flat rate basis (Table 14) and customers
charged both a fixed and consumption based fee (Table 15A and B).
Table 14
2019 Flat Rate Fees in Saint John
Service Annual Rate
Water $643
Sewer (at 122% of water) $785
Total $1,428
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2019 Rates for Metered
Table 15A
Users in Saint John — Monthly
Fees
Meter Size
Water
Sewer
(122%0 of Water)
5/8"
$18.03
$22.00
3/4"
$22.07
$26.93
1 "
$30.14
$36.77
1 1/2"
$39.63
$48.35
2"
$79.06
$96.45
3"
$164.29
$200.43
4"
$285.71
$348.57
6"
$449.02
$ 547.80
8"
$645.20
$787.14
10" and Over
$873.83
$1,066.07
Existing Monthly Rates for Metered
Table 15B
Users in Saint John
Consumption Charges
Consumption Blocks
Water Consumption
Charge ($/m3)
Sewer Consumption
Charge ($/m3) *
Tier 1 : For the First 50
$1.6123
$1.9670
Tier 2: For the Next 124,950
$1.0267
$1.2526
Tier 3: Remaining Consumption
$0.3623
$0.4420
*Sewer consumption charge based on metered water use. Rate also represents 122% of the
water charge
B. MOVING FORWARD
In consultation with City staff, the current rate structure has generally been
maintained, however, some modifications are recommended to better align with the
City's ongoing consumption trends, consumer usage patterns and overall financial
goals. The following rate structure observations and recommended changes are
identified below:
1. Maintain Declining Block Rate Structure:
A declining block rate structure is a tiered approach in which the unit price of water
decreases relative to water use - this structure is common in jurisdictions where there
is a significant non-residential customer base and the structure acts as an economic
development incentive to industries. Furthermore, the rate structure is designed so
that only those high volume users benefit from a declining rate. Residential
consumption, if metered, would fall into the higher priced water tier to continue to
encourage water conservation.
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2. Reduce the Number of Consumption Tiers
As consumption in the City has changed over the last decade, the existing
consumption tiers do not accurately reflect potable non-residential water consumption
patterns. In addition, as the City transitions some existing large industrial water
customers to a raw water based billing structure, these customers will be billed
separately which will not make use of the existing three tier structure. Furthermore,
only in 2007 and 2008 did some potable water consumers benefit from the third tier.
It is proposed that the three tier declining block structure be amended to a two tier
system with the Tier 1 consumption threshold maintained (Table 16). Therefore, this
change is purely administrative, and existing non-residential customers will not see
any change on the total bill as a result. The revised consumption block structure would
still ensure that consumption falls predominantly into Tier 2 which provides water at
the discounted rate.
Table 16
Existing Water Rate Structure vs. Proposed
Existing Consumption Tier
Proposed Consumption Tier
Tier 1 (0-50 m3)
Tier 1: 0 — 50m3
Tier 2 (50-125,000 m3)
Tier 2: > 50m3
Tier 3 (>125,000 m3)
3. Maintain Fixed Charges by Meter Size
The City's current fixed charge is differentiated by the size of the water meter and
generally follows municipal best practices — the fixed charge is greater for those
customers with a larger meter size (or service size) to reflect either the flow arising from
the size of the meter or the investment required to install the meter.
As the equivalent factors for the City are already differentiated by meter size and are
somewhat reflective of sample investment equivalent ratios by the AWWA/CWWA
and change is not warranted. It should be noted that any adjustments to these factors
would result in a shift in the total bills paid by those in the non-residential sector.
4. Explore Universal Metering for Residential Properties
With advancements in water metering technology, many municipalities have
transitioned to using a form of billing that relies on measuring end-user consumption
in order to determine the quantum paid. According to the Canadian Municipal Water
Priorities Report, 2014, approximately three-quarters of Canada are on metered
systems. From 1991 to 2009, there has been an increase of 20 per -cent in the use of
water metering by municipalities in Canada according to the last national survey.
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Based on a survey of municipalities in Canada with populations ranging from 51,000
to 100,000 people, about 84 per cent, or 41 of the 49 communities surveyed have
residential metering. The figure below focuses on the rate structures employed for
residential customers as most communities surveyed have a metering system in place
for the non-residential sector. Figure 8 below provides a summary of the benchmark
findings. A detailed table comparing the rate structures applied in each community
can be found in Appendix B.
Figure 8:
Residential Rate Structure Comparison
30
25
a�
20
Z
15
O
c 10
O
O
U
5
0
Constant Rate Fixed Rate Only Increasing Block Declining Block Humpback Rates
Rate Rate
The benchmark analysis identifies a few important points:
• Over half, or 28 municipalities, employ a constant rate per cubic meter for the
consumption based charge. Under this structure, the user is charged a constant
rate per unit of water consumed or sewer generated. This rate structure is largely
understood by the public and generally easy to administer.
• Eight municipalities, including Saint John, employ a fixed rate only fee for
residential users.
• The remaining municipalities employ other consumption based rate structures,
namely a declining or increasing block structure. Although both structures are
common, they are utilized to meet the specific dynamics of a community —
increasing block structure will increase water rates relative to use while the
declining block structure decreases water rates relative to use. The declining block
structure is most common in jurisdictions where there is a significant non-
residential customer base. Furthermore, the rate structure is designed so that only
HEMSON
35
those high volume users benefit from a declining rate and residential consumption
still falls into the higher priced water tier to continue to encourage conservation
efforts.
• There are a handful of municipalities which employ a humpback rate structure
which acts as a hybrid structure between an inclining and declining block
structure basis.
• The fixed charge, when levied in conjunction with a consumption based billing
structure, is almost always differentiated by the size of the water meter. The factors
to which the fixed charges are differentiated by meter size vary by community.
Overall, the fixed charge is greater for those customers with a larger meter size (or
service size) to reflect either the flow arising from the size of the meter or the
investment required to install the water meter.
A separate report identifying the costs and benefits of universal metering in Saint John
has been prepared under separate cover with the key goal to provide the City with
information necessary to inform future decisions of metering all properties in the City.
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VI CALCULATED RATES
In calculating the water and sewerage rates, a number of assumptions were applied.
The water and sewerage rates are calculated to fully recover the cost of operating the
system and identified in -year capital needs (inclusive of debt servicing requirements).
Furthermore, the rates provide for contributions to asset replacement reserves. An
immediate implementation of a rate that fully funded the calculated asset replacement
contributions as identified in the City's State of Local Infrastructure Report would
result in significant impacts to all users in the City. The analysis is based on providing
for a gradual movement towards full rates. These contributions, when combined with
the City's ongoing capital works, will demonstrate a significant movement to long-
term full cost recovery rates.
Table 17 below provides a summary of the 2020 rate funding requirement for each of
the water and sewer systems. The net rate funding need represents the amount of
money that must be funded through the utility rates by City of Saint John potable
customers only (excluding east and west industrial customers). Detailed calculations
of the water and sewerage rates are outlined in Appendix A.
Note: Non -metered rate revenue includes tunds received tor: Stormwater levy, tire protection levy, previous
year's surplus and other minor sources.
As mentioned, 2019 represents a shift in service delivery with the new Loch Lomond
treatment plant becoming operational in August 2018. As a result, the share of costs
associated with providing raw water to east and west industrial systems are attributed
to those systems. Furthermore, the 2020 draft budget of expenditures differ from 2019
in a few respects which are illustrated in Figure 9 and summarized below:
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Table 17
Calculation of the 2020 Net Rate Funding Requirement
Ref #
Categories
Water
Sewer
1
Operating Expenditures (including repayment of
debt)
$21,586,107
$16,333,667
2
In -year rate funded capital
$3,723,800
$1,546,550
3
Transfer toAfrom) Reserve
$0
$0
4
Less: Non -metered Rate Revenue
$3,270,676
$1,687,150
Total Net Rate Funding Need = (1+2+3-4)
$22,039,231
$16,193,066
Note: Non -metered rate revenue includes tunds received tor: Stormwater levy, tire protection levy, previous
year's surplus and other minor sources.
As mentioned, 2019 represents a shift in service delivery with the new Loch Lomond
treatment plant becoming operational in August 2018. As a result, the share of costs
associated with providing raw water to east and west industrial systems are attributed
to those systems. Furthermore, the 2020 draft budget of expenditures differ from 2019
in a few respects which are illustrated in Figure 9 and summarized below:
HEMSON
M1.1:3
37
• Industrial water operational costs of $2.6 million, associated with the supply of
raw water to west and east industrial customers, are identified in the 2019
approved budget. These costs have been reallocated to both the east and west
industrial system, from the city-wide potable water system, for recovery under
the new full cost rates moving forward. These costs have typically been funded
by negotiated user rates with the specific industries and potable water rates.
• A portion of the city-wide debt costs related to the water system from which
they benefit from, are reallocated for recovery from those industrial users
receiving raw water service. These costs are transferred to the east and west
industrial systems for recovery.
• Despite the lower city-wide net rate funding requirement in 2020, the
transition to raw water based user fees for industrial customers, from the city-
wide potable rate calculation, would typically place additional pressure on the
potable water user rates to cover the foregone revenue. With this said, the City
has been planning for this change in service delivery for a number of years and
therefore the City is targeting to maintain the existing flat rate charges in 2020.
Figure9: Potable System Cost Comparison
2019 vs. 2020
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$- IFBFiO
$(10,000,000)
General Debt (Fiscal Capital Transfers Non -Rate Industrial Total Net
Operating Services) (Rate to/(from) Revenues Water Funding
Funded) Reserve Need
® 2019 Budget ® 2020
Note: 2019 approved budget includes the total city-wide potable and east and west industrial
budgets. 2020 based on draft budget and reflects the adjusted potable budget only (i.e. east and
west industrial costs are excluded).
1. Calculated 2020 Water Rates
Based on the information provided above, the required potable water user rate revenue
in 2020 is forecast to be $22.0 million. This is the amount of revenue which must be
HEMSON
collected through the sale of water to fully recover the operating, capital,
rehabilitation and replacement costs of the systems.
It is important to note as those industrial accounts begin transitioning to the industrial
raw water system, this puts greater emphasis on the remaining users to fund the annual
potable system costs. As a result, a more substantial increase in the water rates are
required to fund the system. With that said, there is an offsetting decrease in the
sewerage calculations as a result of the increased water rates — the sewerage rates are
provided in the section below. The calculated rates for 2020, compared to 2019, are
outlined in Table 18 below.
Table 18
Calculated 2020 Water Utility Rates
All Accounts
2019
Current
2020
Calculated
Difference
(%)
Metered: Fixed Charge: $/Month
5/8"
$18.03
$22.20
23.10%
3/4"
$22.07
$27.17
23.10%
1"
$30.14
$37.10
23.10%
1 1/2"
$39.63
$48.79
23.10%
2"
$79.06
$97.32
23.10%
3"
$164.29
$202.24
23.10%
4"
$285.71
$351.71
23.10%
6"
$449.02
$552.75
23.10%
8"
$645.20
$794.25
23.10%
10" and over
$873.83
$1,075.70
23.10%
Consumption Charge: $/m3
Tier 1:0-50m3/month
$1.6123
$1.9848
23.10%
Tier 2: > 50m3/month
$1.0267
$1.2639
23.10%
Non- Metered:
Fixed Charge: Per Month
$53.58
$65.76
22.72%
2. Calculated 2020 Sewerage Rates
Based on the information provided above, the required sewerage user rate revenue in
2020 is forecast to be $16.2 million. This is the amount of revenue which must be
collected through the treatment of sewerage to fully recover the operating, capital,
rehabilitation and replacement costs of the system.
The basis for the sewer rate is calculated as a surcharge on the water bill — the sewer
surcharge rate is calculated as a percentage of the water charge that will be needed to
HEMSON
Px091
39
cover the costs of operating and maintaining the sewer infrastructure. As shown in
Table 19, the calculated rate for 2020 is outlined to be 81% of the water bill - the
detailed calculations of the sewerage rates are outlined in Appendix A. It is noted that
the surcharge actually represents a decrease in sewerage charges over the existing rates,
this occurs because:
• Due to the shift in water operations, the total potable water bill is increasing
at a higher rate, in large part due to the Safe Clean Drinking Water Project,
which in turn reduces the surcharge applied; and
• The water rate increase is also driven by the transition of industrial customers
to raw water based charges. The sewerage system is not affected by the change.
Table 19
Calculated 2020 Sewer
Utility Rates
All Accounts
2019
Current
2020
Calculated
Difference
(%)
Fixed Charge: $/Month
5/8"
$22.00
$17.97
- 18.3%
3/4"
$26.93
$22.00
- 18.3%
1"
$36.77
$30.04
- 18.3%
1 1/2"
$48.35
$39.50
- 18.3%
2"
$96.45
$78.80
- 18.3%
3"
$200.43
$163.74
- 18.3%
4"
$348.57
$284.76
- 18.3%
6"
$547.80
$447.52
- 18.3%
8"
$787.14
$643.05
- 18.3%
10" and over
$1,066.07
$870.92
- 18.3%
Consumption Charge: $/m3
Tier 1: 0 - 50m3/month
$1.9670
$1.6069
- 18.3%
Tier 2: > 50m3/month
$1.2526
$1.0233
- 18.3%
Non- Metered:
Fixed Charge: Per Month
$65.42
$53.24
- 18.6%
3. Cumulative Impact per Typical User
In order to test the impact of the new rates on the City's residents and businesses, a
sensitivity analysis was undertaken to quantify the range of rate impacts to both the
residential and non-residential properties in the City. Table 20 below illustrates the
impact of the calculated water and sewerage rates on a typical residential connection
per annum.
HEMSON
271
M
As the rate adjustments are applied uniformly to all customer classes, non-residential
metered properties will experience a similar rate change to those flat rate users. The
exception rests with water only properties — rate changes are more significant as those
users would not see the benefit of the decreased sewerage surcharge. There will be
properties who are serviced only by water which will see a rate increase upwards of
about 23% in 2020 only. It is anticipated, that users who see an increase of that
magnitude is limited to less than 2% of all connections and represent about 8.5% of
all potable water revenue generated. Furthermore, approximately two-thirds of the
water only customers in this category are relatively low volume users with
consumption only in tier 1 and the calculated 2020 rates translate into an increase of
about $12 per month over the existing rates.
A. LONG-TERM RATE OUTLOOK
Over the long-term, it is expected the net rate funding requirements for both the City's
water and sewer system are to increase at an average rate of 2.3% per annum post 2020,
similar to the average increase in operational expenditures. It is projected that the
water and sewer net rate funding requirements will increase to $27.1 million and $20.3
million respectively by 2029. Figure 10 below provides a snapshot of the annual year -
over -year change in costs.
HEMSON
WS
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
41
Figure 10: Net Rate Funding Requirement
Ten-year Projection
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budget
® Water ® Sewer
In order for the City to recover costs associated with providing these services,
necessary adjustments to the City's utility rates are required. The overall rate impact,
per year, is anticipated to be lower than the annual rate adjustments employed in
recent years. Figure 11 below indicates the projected cumulative rate increase for
customers receiving both water and sewerage services is expected to be around 2.3%
per annum, which is less than half of the average annual rate increases experienced
over the last 10 years which were ultimately driven by the harbour clean-up and the
Safe, Clean Drinking Water Project. Overall, the City has been fiscally responsible in
preparing for the completion of the treatment plant.
HEMSON
273
42
Figurell: Typical Flat Rate User Rate Projection
Historical vs. Projected Increases to 2029
2.3% Average
$z,000 annual rate increase
yo yy
,yo yo ,y'1, y3 yyh y(o yAy1b y°' yo yhy y1, y3 yb y4 yb yAyOpy'°'
oyoyoyoyotioyoyotioyoyo oLoytiotitio
Note: Red Bars relate to historical period and blue bars relate to forecast. Total Household charge for users
receiving both water and sewerage services.
HEMSON
MAE111
43
VII RECOMMENDATIONS AND FINDINGS
The calculated rates presented establish water and sewer rates to all users of the system
which are fair and equitable. The analysis included in this report ensures that the water
and sewer rates fully fund all of the City's anticipated annual costs including all
operating costs, capital financing needs and debt repayment requirements as they
relate to the potable system. It is fiscally prudent that the City contribute to reserves
for the eventual repair and replacement of water and sewer infrastructure. An
immediate implementation of a rate that fully funds the calculated annual funding
requirement for capital asset replacement would result in significant impacts to all
users in the City. The analysis includes an increasing annual contribution to reserves
for asset rehabilitation and replacement. These contributions, when combined with
the City's ongoing capital works, will demonstrate a movement towards long-term full
cost recovery rates. The City will continue to explore and exercise any potential cost
sharing or grant funding opportunities from upper levels of government in an effort to
further reduce the existing infrastructure deficit.
The results of this study are in part, Hemson and City staff's best estimates of what
could transpire in the short -to -medium term using the data available. It is especially
important that the City continue to monitor all consumption data on a monthly basis
to identify usage trends and variance in the projections to ensure costs and revenues
are managed accordingly. Further to this, as the treatment plant is a new initiative,
the cost projections outlined in this study should be monitored and compared to
actuals regularly to ensure the City is generating sufficient revenues to cover expenses.
A financial model was developed to undertake the analysis and serves as a dynamic
rate setting tool. Using the model, the City is able to perform sensitivity analyses of
water and sewer rates, rate structures and also phase-in options.
It is recommended the City undertake a comprehensive fee review every three to five
years to ensure that a nexus between costs and revenues is maintained over time.
HEMSON
PIM
APPENDIX A
DETAILED RATE CALCULATIONS
HEMSON
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APPENDIX B
RATE STRUCTURE SURVEY OF
CANADIAN MUNICIPALITIES
HEMSON
HEMSON
Appendix B - Table 1
Canada -wide Benchmarking of Residential Metered Water Rate Structures
City of Saint John (Rate Structure as of January 12018)
Metered
DescriptionPopulation
Major City
Red Deer
Prov
AB
(2016)
100,000
(Y/N)
Y
Fixed Charge
Based on meter size.
(Residential)
Constant Rate
Chatham
ON
100,000
Y
Based on meter size.
Declining Block Rate
Strathcona County
AB
98,000
Y
Based on meter size.
Constant Rate
Brantford
ON
97,000
Y
Based on meter size.
Constant Rate
Saint -Jean -sur -Richelieu
QC
95,000
Y
Fixed charge not differentiated by meter size
Constant Rate
Cape Breton
NS
94,000
Y
Fixed charge not differentiated by meter size
Declining Block Rate
Lethbridge
AB
93,000
Y
Based on meter size.
Constant Rate
Clarington
ON
92,000
Y
Based on meter size.
Increasing Block Rate
Pickering
ON
92,000
Y
Based on meter size.
Increasing Block Rate
Kamloops
BC
90,000
N
Based on the size of service
Fixed Rate Only
Nanaimo
BC
90,000
Y
Fixed charge not differentiated by meter size
Increasing Block Rate
Niagara Falls
ON
88,000
Y
Based on meter size.
Constant Rate
Sudbury
ON
88,000
Y
Fixed charge not differentiated by meter size
Constant Rate
North Vancouver
BC
86,000
N
Fixed charge not differentiated by meter size
Fixed Rate Only
Victoria
BC
86,000
Y
Based on meter size.
Constant Rate
Brossard
QC
86,000
Y
Minimum rate for 350 cubic metres
Increasing Block Rate
Repentigny
QC
84,000
Y
Fixed charge not differentiated by meter size
Increasing Block Rate
Newmarket
ON
84,000
Y
Based on meter size.
Constant Rate
Chilliwack
BC
84,000
Y
Based on meter size.
Constant Rate
Maple Ridge
BC
82,000
Y
Based on meter size.
Constant Rate
Peterborough
ON
81,000
Y
Based on meter size.
Humpback Rates
Kawartha Lakes
ON
75,000
Y
Based on meter size.
Constant Rate
Drummondville
QC
75,000
Y
Fixed charge not differentiated by meter size
Constant Rate
Saint -Jerome
QC
74,000
N
Fixed charge not differentiated by meter size
Fixed Rate Only
Prince George
BC
74,000
Y
Seasonal flat rates
Constant Rate
Sault Ste. Marie
ON
73,000
Y
Based on meter size.
Humpback Rates
Moncton
NB
72,000
Y
Based on meter size.
Declining Block Rate
Sarnia
ON
72,000
Y
Based on meter size.
Constant Rate
New Westminster
BC
71,000
N
Fixed Rate
Fixed Rate Only
Fort McMurray (Wood Buffalo)
AB
71,000
Y
Based on meter size.
Constant Rate
Saint John
NB
67,000
N
Fixed Rate
Fixed Rate Only
]Constant
Caledon
ON
67,000
Y
Fixed Rate
Constant Rate
Granby
QC
66,000
Y
Fixed charge integrated into tax bill
Rate
St. Albert
AB
65,000
Y
Fixed Rate
Constant Rate
Norfolk County
ON
64,000
Y
Based on meter size.
Constant Rate
Medicine Hat
AB
63,000
Y
Fixed charge not differentiated by meter size
Constant Rate
Grande Prairie
AB
63,000
Y
Based on meter size.
Increasing Block Rate
Welland -Pelham
ON
62,000
Y
Based on meter size.
Constant Rate
Airdrie
AB
61,000
Y
Based on meter size.
Constant Rate
Halton Hills
ON
61,000
Y
Based on meter size.
Humpback Rates
Port Coquitlam
BC
59,000
N
Fixed Rate based on unit type
Fixed Rate Only
Fredericton
NB
58,000
Y
Fixed charge not differentiated by meter size
Constant Rate
Blainville
QC
57,000
N
Fixed charge not differentiated by meter size
Fixed Rate Only
Saint-Hyacinthe
QC
56,000
Y
Fixed charge not differentiated by meter size
Constant Rate
Aurora
ON
55,000
Y
None
Constant Rate
North Vancouver
BC
53,000
N
Fixed charge not differentiated by meter size
Fixed Rate Only
Welland
ON
52,000
Y
Fixed charge not differentiated by meter size
Constant Rate
North Bay
ON
51,000
Y
Based on meter size.
Constant Rate
Belleville
ON
51,000
Y
Based on meter size.
Declining Block Rate
HEMSON
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r14
COUNCIL REPORT
M&C No.
2019-289
Report Date
November 14, 2019
Meeting Date
November 18, 2019
Service Area
Saint John Water
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: East and West Industrial Raw Water Rate Reports
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head+Jcci
ty Manager
Brent McGovern
Brent McGovern
hnCollin
RECOMMENDATION
It is recommended that Common Council:
1. Endorse the East Saint John Industrial Raw Water Rate Report and the
West Saint John Industrial Raw Water Rate Report; and
2. Support the approach of setting all industrial raw water users rates
via by-law.
EXECUTIVE SUMMARY
This report was discussed at Finance Committee and supported for furtherance
to Common Council for final deliberation.
Hemson Consulting Ltd., working with staff, recently completed Rate Studies
that cover the Water (potable) & Sewer Rate Report, the two East Industrial
Water customers (Irving Paper and Irving Oil) and the two West Industrial Water
customers (NB Power—Coleson Cove and Irving Pulp and Paper).
The plan is to implement the various new industrial raw water rates via by-law
effective January 1, 2020.
Overall, to implement the four new industrial raw water rates as recommended
in the Hemson Reports results in an overall reduction in revenue of
approximately $560k per year. This is due to a change in service to Irving Oil - the
switch from receiving potable water to receiving industrial raw water, the
change in approach to rate setting for NB Power's Coleson Cove from potable
water rates to industrial raw water rates and the introduction of the asset
management allocations and rate stabilization contributions to all four industrial
300
-2 -
water customers. Staff anticipated a net negative impact to revenue and staff
have been preparing accordingly.
Despite the net reduction in revenue being presented staff will be bringing a
balanced 2020 Utility Operating budget to Finance Committee at its next
meeting. Therefore the plan is to hold the flat rate at the same level in 2020 as
the 2019 flat rate.
PREVIOUS RESOLUTION
N/A
STRATEGIC ALIGNMENT
Aligns with Council's priority of fiscal responsibility where it specifically states
"Investigate options to allocate water costs among ratepayers".
REPORT
Background
As part of the Safe, Clean Drinking Water Project the Loch Lomond Drinking
Water Treatment Facility went into operation on August 30, 2018. With the
construction of the new plant, separation of the potable and industrial water
supply on the east system was possible (the west industrial systems were already
separated however there had been some infrastructure sharing between
industrial and potable water customers before the move to groundwater)
thereby requiring an adjustment in the way the City delivers services to
residential and non-residential customers. These changes combined with
Council's Priority to "Investigate options to allocate water costs among
ratepayers" required a review of the large industrial customers using raw water.
As it relates to industrial water, Hemson Consulting Ltd. an expert in rate setting
was retained by the City to undertake a comprehensive rate study with the view
of calculating new user rates as follows:
1) Raw water rate analysis for Irving Oil Ltd. and Irving Paper (at the
Flume) on the East Saint John Industrial Water System; and
2) Raw water rate analysis for Irving Pulp & Paper and the NB Power
Generating Station (Coleson Cove) on the West Saint John Industrial
Water System.
The purpose of undertaking the industrial rate analyses is to more accurately
allocate the cost of providing water services among rate payers. The Hemson
reports (East and West) address the raw water rate analysis for the customers
noted above. Historically, these customers have paid potable water rates or
special negotiated user rates, however, moving forward, it is recommended
these customers be billed the full cost of providing raw water.
[till
-3 -
Raw water and potable water are quite different in quality and in complexity of
infrastructure and servicing requirements needed to provide the different
services. This results in vast differences in costs/revenue required and therefore
ultimately the rates between the raw water users and the potable water system.
Historically, all costs and revenues for all users have been captured under the
one potable water budget, however moving forward both the costs of providing
raw water services and the revenues generated will be recorded independently
from the potable system. This process has been implemented for the 2019 Saint
John Water operating and capital budgets. As a result, the share of costs
associated with providing raw water to east and west industrial systems are
attributed to those systems. The cost recovery approach will bring uniformity to
the City's billing system and it is consistent with the requirements of the Local
Governance Act which requires water and sewer services to be balanced on an
annual basis.
Irving Oil Ltd. and Irving Paper - Raw Water Rate Analysis
Irving Oil Ltd. (IOL) and Irving Paper are supplied from the Loch Lomond
watershed in the east, utilizing dams, dual purpose transmission systems and
transmission mains isolated from the potable distribution system. The Irving Oil
Refinery is connected to a water transmission main that feeds supply water from
Latimer Lake to Lakewood Heights as shown in Appendix 1. Irving Paper is
supplied through a short water transmission main from Latimer Lake to Dry Lake
Flume and open channel (brook) flow from Dry Lake to Little River Reservoir and
into the Silver Falls Watershed as shown in Appendix 1.
IOL through much of 2019 has been billed for water services based on a blend of
special agreement rates and city-wide potable water rates while Irving Paper
(Flume) has been billed solely on special agreement rates.
Consumption Allocations
Of the total 11.5 million cubic metres associated with the two east industrial
water users, IOL represents 73% of the total with the remaining 27% associated
to Irving Paper (as shown in Table 2) and these allocations have been used for
IOL and Irving Paper as they represent the benefit associated to providing raw
water to these customers.
1919%
Table 1. Summary
of East Saint John Water Consumption
Customer
Billed Consumption
2019 Existing Consumption and
New Structure: 2020 Billing
Projection
Billing Structure
Irving Oil Ltd. —1
4,150,000 m3
• Special Agreement Rates
• New East Industrial Raw
Water Rate specific to
Irving Oil Ltd.
Irving Oil Ltd. — 2
4,250,000 m3
• City-wide potable water rates
Irving Paper
3,123,000 m3
• Special Agreement Rates
• New East Industrial Raw
Water Rate specific to
(Flume)
Irving Paper (Flume)
Total
11,523,000 m3
Consumption
Consumption Allocations
Of the total 11.5 million cubic metres associated with the two east industrial
water users, IOL represents 73% of the total with the remaining 27% associated
to Irving Paper (as shown in Table 2) and these allocations have been used for
IOL and Irving Paper as they represent the benefit associated to providing raw
water to these customers.
1919%
-4-
Table 2. Summary
of Average East
Water
Source
Water Volume
m3
Share of Water Share of East Industrial
Produced m3 m3
Average Water Produced
Loch Lomond Potable
29,862,720
Irving Paper (Raw) 3,123,000
Total Produced (Raw+Potable) 32,985,720
Average East Industrial Consumption
Irving Oil Ltd. (IOL)
8,400,000
25% 73%
Irving Paper (Flume)
3,123,000
10% 27%
otal East Industrial
11,523,000
35% 100%
Operating Expenditures
Operation and maintenance costs are comprised of three key components:
1. East Watershed Management Industrial: includes costs of operating,
maintenance and protection of the watershed.
2. Transmission: includes the operation and maintenance costs of
transmission to provide raw water to Irving Oil Ltd.
3. East Customer Metering: includes the operation and maintenance of
customer meters for the east industrial customers.
A share of the above noted costs have been allocated to customers for recovery.
Debt Allocations
Annual infrastructure debt payments that benefit industrial customers have
been incorporated and allocated to each user on consumption basis.
Asset Management Contributions
Asset management contributions have been incorporated into the calculation of
East Saint John Industrial raw water rates.
The report identifies a replacement value of $105.9 million for the East Saint
John Water Industrial Water System Assets. As shown in Table 3, of the total
amount, $15.2 million is related to infrastructure which directly provides raw
water service to this area; of which $11.5 million is associated with infrastructure
to service IOL and $3.7 million to service Irving Paper. The remaining $90.7
million is shared city-wide assets which benefit a wider customer base.
A full cost approach is used to calculate the annual reserve fund contributions
which is recognized as a fair approach for the use of these assets.
Table 3 also shows the required annual provisions to maintain the East Saint
John Industrial Water System in a state of good repair which amounts to just
under $1.1 million. Of this amount, $139,500 per year is required to maintain the
assets providing raw water to IOL while a further $29,700 per year is needed for
the assets providing water to Irving Paper. The remaining $902,700 is for the
1919191
-5 -
shared assets between the East Saint John Industrial Water System and the city-
wide network.
The annual provisions as noted in the table above are included in the
calculation of the raw water rates. Of the total $902,700 annual contribution,
about $315,300 per year is estimated which is based upon 35% of the share of
the water produced (as per Table 2). The $315,300 has been further allocated to
IOL and Irving Paper based on shares of consumption. 73% (or $229,900) is
attributed to IOL and 27% (or $85,500) attributed to Irving Paper. As shown in
Table 4, $484,500 represents the total fully calculated annual provision for all
assets associated with the delivery of raw water to IOL and Irving Paper.
Table 4. East Saint John Industrial Annual
3
East SJ Industrial
ReplacementTable
Water System Asset Annual Provision
Customer
Assets Replacement Annual
Irving Oil Ltd. $139,450
Value (2019) Provision
Irving Oil Ltd.
• WTP to Commerce Drive (Transmission mains)
$11,521,843
$139,450
Total Annual Contribution $169,171
• LHPS to Champlain Hts (Transmission mains)
$484,501
Irving Paper
• Little River Reservoir Dam
$ 3,727,493
$ 29,721
(Flume)
• Little River Reservoir Culverts
• Latimer Lake to IP (Raw water intake)
Shared East
• Various dams, buildings, flow meters,
$90,671,289
$902,662
Industrial and
transmission mains, headers and bridges
City-wide
Total
$105,920,625
$1,071,834
The annual provisions as noted in the table above are included in the
calculation of the raw water rates. Of the total $902,700 annual contribution,
about $315,300 per year is estimated which is based upon 35% of the share of
the water produced (as per Table 2). The $315,300 has been further allocated to
IOL and Irving Paper based on shares of consumption. 73% (or $229,900) is
attributed to IOL and 27% (or $85,500) attributed to Irving Paper. As shown in
Table 4, $484,500 represents the total fully calculated annual provision for all
assets associated with the delivery of raw water to IOL and Irving Paper.
Table 4. East Saint John Industrial Annual
Asset Management
Allocations
Customer Direct Benefit
Indirect Benefit
Total
Irving Oil Ltd. $139,450
$229,868
$369,318
Irving Paper (Flume) $ 29,721
$ 85,462
$115,183
Total Annual Contribution $169,171
$315,330
$484,501
Hemson advises "It is recognized that immediately implementing full cost recovery
asset management provisions may place undue burden on raw water customers in
the short-term. Therefore, the following key assumptions are recommended:
1. The asset management provisions associated with those assets which
directly benefit Irving Oil Ltd. and Irving Paper (Flume) are to be 100%
included in the calculation of the raw water rates for 2020.
2. The asset management allocations associated with the shared assets
which are considered to be an indirect benefit to Irving Oil Ltd. and Irving
Paper (Flume) have not been fully included in 2020. To maintain
consistency with the City- wide potable system, these contributions have
been phased -in.
(a.) In 2020, of the total indirect asset management provision
required, only 20% of the indirect asset management contributions
is included in the Irving Oil Ltd. and Irving Paper calculation of raw
water rates."
191911
-6 -
Rate Stabilization Contribution
Incorporates annual contributions to a rate stabilization reserve fund to offset
future unanticipated operating budget variances (equal to 2 months operational
expenditures).
Calculated Rates
The full cost analysis reveals that:
• The required east raw water user rate revenue in 2020 is forecast based
upon expenditures of approximately $2.5 million ($2.336M + $150k). This
is the revenue that must be collected through the sale of raw water to
fully recover operating costs, debt servicing costs, capital asset
replacement costs and rate stabilization contributions of the East Saint
John Industrial Water System assets.
• Of this total, the costs have been further allocated to both IOL and Irving
Paper customers on a range of factors.
The table below provides the net funding requirement and the calculated utility
rates for both customers under the proposed rate structure.
Table S. Calculation of
2020 Raw Water Rates
Description
Irving Oil
Irving Paper
1. Operating Costs
East Watershed Mgmt Industrial
$73,764
$33,382
East Transmission (IND)
$618,120
$0
East Customer Metering
$31,750
$31,750
Subtotal Operating Costs
$723,633
$61,132
2. Fiscal Services (Debt)
$1,305,886
$26,915
3. Asset Management Allocation
$185,471
$46,831
4. Rate Stabilization Contribution
$120,606
$10,855
S. Total Costs (1+2+3+4 = 5)
$2,335,596
$149,733
6. Annual Consumption (m3)
8,400,000
3,123,000
7. Calculated Rates (5/6 =1);( /m3)
$0.2790
$0..0479
To test the impact of the new rates on the City's two east industrial customers, a
sensitivity analysis was undertaken using the utility rate model.
For reference purposes, raw water rates have been calculated for 2019 based on
the approved 2019 Saint John Water Budget and for 2020 based on projected
costs. Table 6 below illustrates the impact of the newly calculated raw water
consumption based charges for both Irving Oil and Irving Paper.
1919191
-7 -
Comparison
Table 7. Summary
of West Saint John Water
Consumption
Customer Assumed Billed
Consumption
(m3)
Current 2019
Payment Under
Existing Rates*
Calculated 2020ifference
Payment under
Raw Water Billing
($J
Irving Oil Ltd. 8,400,000
$3,058,900
$2,335,596
$(723,304)
Irving Paper 3,123,000
$ 68,200
$ 149,733
$ 81,533
*2019 is estimated based on projected consumption and based on the existing rate structure.
As a result of the changes in cost allocation, IOL will see significant savings
($723,304) on the total bill (while also experiencing a change in quality with the
move from potable water to raw water) and Irving Paper will see an increase
($81,500) in the transition.
Irving Pulp and Paper and NB Power (Coleson Cove) - Raw Water Rate Analysis
The City of Saint John supplies Irving Pulp and Paper (IPP) and NB Power
customers from the Spruce Lake and the Musquash watersheds in the west
utilizing two dedicated water transmission systems isolated from the potable
distribution system. The water transmission feed from Spruce Lake to NB Power
is referred to as the Coleson Cove System and consists of an intake, screen
building, and transmission main supplying processed water to Coleson Cove.
The second major industrial customer in the west is IPP. The water transmission
feed from the Spruce Lake system consists of an intake pipe, screen
building and a transmission main to the clear well at the IPP Mill. The
infrastructure for both IPP and NB Power is shown in a map in Appendix 2.
The Musquash system supplements the Spruce Lake/Ludgate Lake watershed
by pumping and it is situated on the East Branch of the Musquash. It is
interconnected to Menzies Lake by a transmission main. The lakes are defined
by two earth dams and two concrete structures to maintain a water level.
IPP is currently billed for water services based on a blend of special agreement
rates and city-wide potable water rates while NB Power is billed solely on city
potable water rates.
Consumption Allocations
Of the total 39.6 million cubic metres associated with the two west industrial
water users, IPP represents 98% of total water billed with the remaining 2%
306
Table 7. Summary
of West Saint John Water
Consumption
Customer
2019/2020
Existing Consumption and
New Raw Water Rate Structure:
Billed
Billing
2020 Billing
Consumption
Irving Pulp and
39,000,000 m3
Combined 60" and 36"
• New West Industrial Raw
Paper
raw/potable water lines
Water Rate specific to Irving
to IPP - Combined
Pulp and Paper
Special Agreement
Rates and potable
NB Power (Coleson
625,600 m3
• City-wide potable water
• New West Industrial Raw
Cove)
rates
Water Rate specific to NB
otal Consumption
39,625,600 m3
Consumption Allocations
Of the total 39.6 million cubic metres associated with the two west industrial
water users, IPP represents 98% of total water billed with the remaining 2%
306
associated to NB Power as shown in Table 8 and these allocations have been
used for IPP and NB Power.
Table 8. Summary
Average West
Water
Source
Water Volume (m3)
Share of Water Billed (m3)
Irving Pulp and Paper
39,000,000
98%
Coleson Cove
625,600
2%
Total West Industrial
39,625,600
100%
Operating Expenditures
Operation and maintenance costs are comprised of three key components:
1. West Watershed Management Industrial: includes costs of operating,
maintenance and protection of the watershed.
2. Transmission: includes the operation and maintenance costs of
Musquash pumping and transmission as well as screening to provide
raw water to both IPP and NB Power.
3. West Customer Metering: includes the operation and maintenance of
customer meters for the west industrial customers.
A share of the above noted costs have been allocated to customers for recovery.
Debt Allocations
Annual infrastructure debt payments that benefit industrial customers have
been incorporated and allocated to each user on consumption basis.
Asset Management Contributions
Asset management contributions have been incorporated into the calculation of
West Saint John Industrial raw water rates.
The report identifies a replacement value of $87.4 million for the West Saint
John Water Industrial Water System Assets.
Table 9 shows the required annual provisions to maintain the West Saint John
Industrial Water System in a state of good repair is $585,600 per year. Of this
amount, $89,000 per year is required to maintain the assets providing raw water
to NB Power while a further $144,200 per year is needed for the assets providing
water to IPP. The remaining $352,400 is for the shared assets between IPP and
NB Power and are allocated based on consumption allocations of 98% and 2%
respectively. Note the Spruce Lake water transmission main actual replacement
cost has an adjusted a reflect an amount of $10M to allow for ongoing
inspections and maintenance but not the full asset replacement due to IPP's plan
at the end of the asset life to either implement a new means of cooling the mill
(Saint John River/Bay of Fundy) or alternatively IPP would be solely responsible
for the full cost of the Spruce Lake water transmission main renewal if that
option were preferred at that time.
1919YA
-9 -
Rate Stabilization Contribution
As noted earlier, the rate stabilization contribution incorporates an annual
amount to stabilize rates by offsetting unanticipated operating budget variances.
Calculated Rates
The full cost analysis reveals that:
• The required west raw water user rate revenue in 2020 is forecast based
upon expenditures of just over $3.1 million ($2.887M + $165k from Table
10). This is the revenue that must be collected through the sale of raw
water to fully recover operating costs, debt servicing costs, capital asset
replacement costs (with exception of Spruce Lake water transmission
main) and rate stabilization contributions of the West Saint John
Industrial Water System assets.
• Of this total, the costs have been further allocated to both IPP and NB
Power customers.
The table below provides the net funding requirement and the calculated utility
rates for both west industrial customers under the proposed rate structure.
E OU]
Table 9
West SJ Industrial
Water System Asset Replacement Value
and Required Annual Provision
Customer
Assets
Replacement Annual
Value (2019) Provision
NB Power
. Coleson Cove 1500mm
$9,968,240
$ 89,046
(Co IesonCove)
Transmission Intake
• Coleson Cove Screen Building
• Coleson Cove 600mm Transmission Main
Irving Pulp and
. Spruce Lake Transmission Main
$15,482,359
$144,183
Paper
. Spruce Lakelntake(1800mm)
• Spruce Lake Screen Building
IPP and NB
• Musquash Pumping Station
$28,233,456
$352,369
Power
• Transmission Main From Musquash
Combined
. Menzies Lake Dams
Benefit
. Spruce Lake Dam
Total Adjusted
$53,684,054
$585,599
Spruce Lake
• Spruce Lake Transmission
$33,698,367
$0
Transmission
Main (Remaining Cost)
Total
$87,382,421
$585,599
Rate Stabilization Contribution
As noted earlier, the rate stabilization contribution incorporates an annual
amount to stabilize rates by offsetting unanticipated operating budget variances.
Calculated Rates
The full cost analysis reveals that:
• The required west raw water user rate revenue in 2020 is forecast based
upon expenditures of just over $3.1 million ($2.887M + $165k from Table
10). This is the revenue that must be collected through the sale of raw
water to fully recover operating costs, debt servicing costs, capital asset
replacement costs (with exception of Spruce Lake water transmission
main) and rate stabilization contributions of the West Saint John
Industrial Water System assets.
• Of this total, the costs have been further allocated to both IPP and NB
Power customers.
The table below provides the net funding requirement and the calculated utility
rates for both west industrial customers under the proposed rate structure.
E OU]
-10 -
Table 10. Calculation
Description
of 2020 Raw Water
Irving Pulp and Paper
Rates
NB Power (Coleson Cove)
1.Operating Costs
Customer
Assumed Billed Current 2019
West Watershed Mgmt. Industrial
$488,084
$7,829
West Transmission (IND)
$1,069,528
$17,156
West Customer Metering
$30,036
$30,036
Subtotal Operating Costs
$1,587,648
$55,022
2. Fiscal Services (Debt)
$318,243
$2,656
NB Power
625,600
$642,700
3(a). Asset Management
$490,989
$94,610
3(b). Capital from Operating
$225,178
$3,612
4. Rate Stabilization Contribution
$264,608
$9,170
S. Total Costs 1+2+3 = 4
$2,886,666
$165,070
6. Annual Consumption m3
39,000,000
625,600
7. Calculated Rates ($/6 =1 $ m'l
j$0.0740
j$10.2639,
To test the impact of the new rates on the City's two west industrial customers,
a sensitivity analysis was undertaken using the utility rate model. Raw water
rates have been calculated for 2019 based on the approved 2019 Saint John
Water Budget and for 2020 based on projected costs. Table 11 below illustrates
the impact of the newly calculated raw water consumption based charges for
both IPP and NB Power.
*2019 is estimated based on projected consumption only applying the existing rate structure.
SERVICE AND FINANCIAL OUTCOMES
East Industrial Raw Water Rate Financial Changes
As a result of the switch from potable water to industrial raw water, IOL will see
significant savings ($723,304) on the total bill and Irving Paper will see an
increase of $81,533 in the transition.
West Industrial Raw Water Rate Financial Changes
As a result of the changes in cost allocation, IPP will see a significant increase of
about $557,446 on the total bill which essentially equates to the new approach
of industry funding the future replacement of industrial assets. NB Power would
see a significant decrease ($477,630) given they are transitioning from potable
water rates to cost allocated industrial raw water rates.
Potable Water and Sewer Revenue Impact
Despite the overall net reduction in revenue of approximately $560,000 staff will
be bringing a balanced 2020 Utility Operating budget to Finance Committee at its
EcZi16-1
ComparisonTable 11.
Customer
Assumed Billed Current 2019
Calculated 2020
Difference ($J
Consumption (m3) Payment Under
Payment under Ra
Existing Rates*
Water Billing
Irving Pulp and Paper
39,000,000
$2,329,200
$2,886,666
$557,446
NB Power
625,600
$642,700
$165,070
$(477,630)
*2019 is estimated based on projected consumption only applying the existing rate structure.
SERVICE AND FINANCIAL OUTCOMES
East Industrial Raw Water Rate Financial Changes
As a result of the switch from potable water to industrial raw water, IOL will see
significant savings ($723,304) on the total bill and Irving Paper will see an
increase of $81,533 in the transition.
West Industrial Raw Water Rate Financial Changes
As a result of the changes in cost allocation, IPP will see a significant increase of
about $557,446 on the total bill which essentially equates to the new approach
of industry funding the future replacement of industrial assets. NB Power would
see a significant decrease ($477,630) given they are transitioning from potable
water rates to cost allocated industrial raw water rates.
Potable Water and Sewer Revenue Impact
Despite the overall net reduction in revenue of approximately $560,000 staff will
be bringing a balanced 2020 Utility Operating budget to Finance Committee at its
EcZi16-1
-11 -
next meeting. Therefore the plan is to hold the flat rate at the same level in 2020
as the 2019 flat rate.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The East and West Saint John Industrial Raw Water Rate Reports have been reviewed by
staff at Saint John Water and the City of Saint John's Finance team.
ATTACHMENTS
1. East Saint John Industrial Raw Water Rate Report
2. West Saint John Industrial Raw Water Rate Report
3. Appendix 1 and 2
4. East and West Industrial Raw Water Rate Presentation
19lito]
EAST SAINT JOHN INDUSTRIAL
RAW WAFER RATE REPORT
311
HEMSON consulting Ltd.
November 2019
TABLE OF CONTENTS
EXECUTIVE SUMMARY...............................................................................................1
1 BACKGROUND AND STUDY OBJECTIVE.........................................................4
A. BACKGROUND.........................................................................................4
B. STUDY OBJECTIVE....................................................................................
5
II RAW WATER DEMAND ANALYSIS....................................................................
7
A. RAW WATER CONSUMPTION ADJUSTMENTS........................................7
B. CONSUMPTION ALLOCATIONS..............................................................8
III OPERATION AND MAINTENANCE COSTS.....................................................10
A. OPERATING EXPENDITURES..................................................................10
B. CITY-WIDE DEBT ASSUMPTIONS BY SYSTEM........................................12
IV ASSET MANAGEMENT CONTRIBUTIONS AND RATE STABILIZATION .........16
A. EAST SAINT JOHN INDUSTRIAL WATER SYSTEM ASSETS......................16
B. ALLOCATION OF ANNUAL ASSET MANAGEMENT EXPENDITURES .....
17
C. RATE STABILIZATION RESERVE FUND...................................................19
V CALCULATED RATES.......................................................................................
20
A. CALCULATED CONSUMPTION RATE - IRVING OIL LTD ......................
21
B. CALCULATED CONSUMPTION RATE - IRVING PAPER (FLUME)...........
22
C. RATE IMPACTS........................................................................................23
Appendix A Detailed Asset Replacement Costs
1
EXECUTIVE SUMMARY
The City embarked upon the construction of a 75 million litre per day water treatment
plant, the renewal and installation of 26 kilometres of water transmission/distribution
mains, the renewal of 3 dams and the development of the new South Bay Wellfield at
a cost upwards of $200 million to bring safe, clean drinking water to the citizens of
Saint John. The Loch Lomond Drinking Water Treatment Facility went into
operation on August 30, 2018 which will reduce the occurrence of boil water orders
and service interruptions. With the construction of the new plant, separation of the
potable and industrial water supply is now possible, thereby requiring an adjustment
in the way the City delivers services to both residential and non-residential customers.
These changes necessitate a review of the water rates for non-residential users, most
notably large industrial users using non -potable (or raw water) which will also have an
impact on potable user rates.
Hemson was retained by the City of Saint John to undertake a comprehensive Water
and Sewer Rate Study. The rate study contains four components with the view of
calculating new user rates under the following scenarios:
1) Calculating utility rates under the City's existing water and sewer rate structure
for all potable water users;
2) Raw water rate analysis for Irving Oil Ltd. and Irving Paper (at the Flume) on
the East Saint John Industrial Water System receiving services;
3) Raw water rate analysis for Irving Pulp & Paper and the NB Power Generating
Station (Coleson Cove) on the West Saint John Industrial Water System
receiving services; and
4) Examine the costs and benefits of universal metering in the City. Alternative
rate structures and sensitivity analyses under a metering scenario for all users
on the potable system.
This report addresses the raw water rate analysis for two customers receiving services:
Irving Oil Ltd. and Irving Paper (Flume) on the East Saint John Industrial Water
System.
HEMSON
Mr.]
2
The full cost analysis reveals that:
• The required east raw water user rate revenue in 2020 is forecast based upon
expenditures of approximately $2.5 million. Therefore, $2.5 million is the amount
of revenue which must be collected through the sale of raw water to fully recover
operating costs, debt servicing costs and capital asset replacement costs of the East
Saint John Industrial Water System assets.
• Of this total, the costs have been further allocated to both Irving Oil Ltd. and
Irving Paper customers on a range of factors.
In order for the City to recover costs associated with providing services, necessary
adjustments to the utility rates are required. The table below provides a snapshot of
the total net funding requirement and the calculated utility rates for both customers
under the proposed rate structure expected to come into effect in 2020.
Calculation of 2020 Raw
Water Rates
Description
Irving Oil
Irving Paper
1. Operating Costs
East Watershed Mgmt Industrial
$73,764
$33,382
East Transmission (IND)
$618,120
$0
East Customer Metering
$31,750
$31,750
Subtotal Operating Costs
$723,633
$65,132
2. Fiscal Services (Debt)
$1,305,886
$26,915
3. Asset Management Allocation
$185,471
$46,831
4. Rate Stabilization Contribution
$120,606
$10,855
5. Total Costs (1+2+3 = 4)
$2,335,596
$149,733
6. Annual Consumption (m3)
8,400,000 1
3,123,000
7. Calculated Rates (4/5 = 6)"($/M3)
$0.2780
$0.0,470
In order to test the impact of the new rates on the City's two east industrial customers
affected by the change in service delivery from potable to raw water, a sensitivity
analysis was undertaken to quantify the rate impacts. It is important to note, that for
the purposes of this report it has been assumed that implementation of new raw water
rates is expected to occur in 2020, with the existing rate structure continuing to be
used throughout 2019. Therefore, for reference purposes, raw water costs are illustrated
for 2019 based on the approved 2019 Saint John Water Budget and also includes 2020
projected costs outlined in the City's draft budget. The table below illustrates the
HEMSON
ME1
3
impact of the newly calculated raw water consumption based charges for both Irving
Oil and Irving Paper.
Note 1: Irving Oil current payment based on actuals to October 2019 and estimated to end of 2019. Irving
Paper (Flume) is estimated based on projected consumption only based on the existing rate structure (see
Table 1).
Note 2: 2020 estimates are based on assumed consumption relative to historical trends.
The City has undertaken the east industrial rate analysis to more accurately allocate
costs of providing water services among rate payers. The results of the study reflects a
shift in service delivery which started in 2018 with the construction of the new
treatment plant and the expected change to raw water supply to east industrial users.
Historically, all costs and revenues for all users have been captured under the one
potable water budget, however moving forward both the costs of providing raw water
services and the revenues generated will be recorded independently from the potable
system. This process has been implemented for the already approved 2019 Saint John
Water operating and capital budget. As a result, the share of costs associated with
providing raw water to east industrial systems are attributed to those systems. The cost
recovery approach applied to calculate the user rates is consistent with the
requirements of the Local Governance Act which requires water and sewer services to
be balanced on an annual basis. As a result of the changes in billing practice, Irving
Oil Ltd. will see significant savings on the total bill and Irving Paper will see an
increase as they transition to raw water based user fees.
HEMSON
MM
M
I BACKGROUND AND STUDY OBJECTIVE
A. BACKGROUND
The City embarked upon the construction of a 75 million litre per day water treatment
plant, the renewal and installation of 26 kilometres of water transmission/distribution
mains, the renewal of 3 dams and the development of the new South Bay Wellfield at
a cost upwards of $200 million to bring safe, clean drinking water to the citizens of
Saint John. The Loch Lomond Drinking Water Treatment Facility is located near the
Little River Reservoir by Lakewood Heights and is part of the "Safe Clean Drinking
Water Project" which will reduce the occurrence of boil water orders and service
interruptions. The plant entered service on August 30, 2018.
With the construction of the new plant, separation of the potable and industrial water
supply is now possible, thereby requiring an adjustment in the way the City delivers
services to both residential and non-residential customers. These changes necessitate
a review of the water rates for non-residential users, most notably large industrial users
using non -potable (or raw water), which in turn, will have an impact on potable user
rates. This report addresses the raw water rate analysis for two customers, Irving Oil
Ltd. and Irving Paper (at the Flume) , on the East Saint John Industrial Water System.
Historically, these customers have paid potable water rates or special negotiated user
rates, however, moving forward, these customers will be billed for the full cost of
providing raw water.
These customers are supplied from the Loch Lomond watershed in the east, utilizing
dams, combined transmission systems and transmission mains isolated from the
potable distribution system. The Irving Oil Refinery is connected to a water
transmission main that feeds supply water from the Latimer Lake intake pipes and
screen building to Lakewood Heights. Irving Paper is supplied through a water
transmission feed from Latimer Lake consisting of an intake, valve structure, and
transmission main to Dry Lake Flume and open channel from Dry Lake to Little River
Reservoir and into the Silver Falls Watershed.
Raw water service and potable water service are quite different in many respects. Aside
from the difference in quality, more complex infrastructure and servicing requirements
are needed to provide potable water service as opposed to raw water. This results in
vast differences in costs and ultimately the rates between the raw water users and the
potable water system.
HEMSON
MIQ
5
B. STUDY OBJECTIVE
Hemson was retained by the City of Saint John to undertake a comprehensive Water
and Sewer Rate Study. The rate study contains four components with the view of
calculating new user rates under the following scenarios:
1) Calculating utility rates under the City's existing water and sewer rate structure
for all potable water users;
2) Raw water rate analysis for Irving Oil Ltd. and Irving Paper (Flume) , on the
East Saint John Industrial Water System receiving services;
3) Raw water rate analysis for Irving Pulp & Paper and the NB Power Generating
Station (Coleson Cove) on the West Saint John Industrial Water System
receiving services; and
4) Examine the costs and benefits of universal metering in the City. Alternative
rate structures and sensitivity analyses under a metering scenario for all users
on the potable system.
This report addresses the raw water rate analysis for Irving Oil Ltd. and Irving Paper
(Flume) . For the purposes of this report, it has been assumed that implementation of
new raw water rates is expected to occur in 2020, with the existing rate structure
continuing to be used throughout 2019. Therefore, for reference purposes, raw water
costs are illustrated based on the approved 2019 Saint John Water Budget while the
rates are calculated for 2020 based on projected costs as outlined in the draft budget.
In undertaking this analysis, a utility rate model was developed and serves as a dynamic
rate setting tool. Using the model, the City is able to perform sensitivity analyses of
raw water rates, rate structure and also phase-in options. The following diagram
(Figure 1) illustrates the overall approach.
HEMSON
NVA
Figure 1
Utility Rate Setting Model
HEMSON
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7
II RAW WATER DEMAND ANALYSIS
Future costs for the City to provide raw water to the East Saint John Industrial
customers will largely be driven by demands placed on the system by these consumers.
A forecast of future consumption demands must therefore be developed.
A. RAW WATER CONSUMPTION ADJUSTMENTS
With the completion of the Safe Clean Drinking Water Project, there will be an
adjustment in the way the City's existing large industrial customers are billed for
services. Historically, these customers have paid potable water rates or special
negotiated user rates, however, moving forward, these customers will be billed for raw
water at the full cost of providing service.
Table 1 below summarizes the existing billing structure in 2019 and associated
projected consumption (based on a 5 -year average) for each customer related to the
proposed new 2020 billing structure. Irving Oil Ltd. (IOL) is currently billed for water
services based on a blend of special agreement rates and city-wide potable water rates
while Irving Paper (Flume) is billed solely on special agreement rates. In total, these
customers are anticipated to consume about 11.5 million cubic metres in 2019.
Changes in non-residential consumption activity is often difficult to predict as
consumption patterns can be dependent on the general economic climate as well as
processes of a business. Typically, non-residential customers continue to adapt
operations to be more efficient and environmentally friendly. Therefore, for the
HEMSON
Table 1
Customer
Summary of
Billed Consumption
East Saint John Water Consumption
2019 Existing Consumption New Structure: 2020 Billing
Projection
and Billing Structure
Irving Oil
4,150,000 m3
. Special Agreement Rates
• New East Industrial Raw
Ltd. - 1
Water Rate specific to
Irving Oil Ltd.
Irving Oil
4,250,000 m3
• City-wide potable water
Ltd. - 2
rates
Irving Paper
3,123,000 m3
• Special Agreement Rates
• New East Industrial Raw
(Flume)
Water Rate specific to
Irving Paper (Flume)
Total
11,523,000 m3
Consumption
Changes in non-residential consumption activity is often difficult to predict as
consumption patterns can be dependent on the general economic climate as well as
processes of a business. Typically, non-residential customers continue to adapt
operations to be more efficient and environmentally friendly. Therefore, for the
HEMSON
purposes of this study, no growth in overall raw water consumption is assumed over
the forecast period and remains at a similar level in 2020.
B. CONSUMPTION ALLOCATIONS'
For the purposes of setting raw water rates for East Saint John Industrial customers,
general operating costs, existing debt financing expenditures as well as general asset
management provisions, have been allocated to each user based on a 5 -year average
(2013-2017) of water consumption relative to water produced. Table 2 shows that
total potable water produced at Loch Lomond averaged about 29.9 million cubic
metres. However, when raw water flow of 3.12 million cubic metres associated to
Irving Paper is accounted for, the total water produced averaged just under 33.0
million cubic metres
Total consumption in the east industrial system totals 11.5 million cubic metres. This
represents a share of 35% relative to total water produced for East Saint John
customers. Of this, 8.4 million cubic metres or 25% of total water produced is
associated to consumption by Irving Oil Ltd. while the remaining 3.1 million cubic
metres or 10% of total water produced is associated to consumption by Irving Paper
(Flume).
Of the total 11.5 million cubic metres associated with the two east industrial water
users, Irving Oil Ltd. represents 73% of the total with the remaining 27% associated
to Irving Paper. The specific shares calculated for Irving Oil Ltd. and Irving Paper
represent the benefit shares associated to providing raw water to these customers.
2
Summary of Average East Water
Source Water Volume
(m3)
ProducedTable
Share of Water
Produced (m3)
Share of East
Industrial (m3)
Average Water Produced
Loch Lomond Potable
29,862,720
Irving Paper (Raw) 3,123,000
Total Produced (Raw + Potable) 32,985,720
Average East Industrial Consumption
Irving Oil Ltd.
8,400,000
25%
73%
Irving Paper (Flume)
3,123,000
10%
27%
Total East Industrial
11,523,000
35%
100%
1 Details on the potable water consumption forecast for the City-wide potable system is
analyzed in detail in the "Water and Sewer Rate Study" for the potable systems provided under
separate cover.
HEMSON
001
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Table 3 identifies a benefiting share to Irving Oil Ltd. associated to providing raw
water services combined with potable services. This share has been identified to
distinguish capital and debt costs which are necessary to provide raw water to Irving
Oil Ltd. but are also associated to operation of the overall city-wide water system.
Total water produced totals 33.6 million cubic metres which includes 29.9 million
cubic metres from Loch Lomond and 3.7 million cubic metres from Spruce Lake. The
share identified is 25% based on consumption of 8.4 million cubic metres by Irving
Oil Ltd.
Table 3
Allocation of Irving Oil Ltd. East Industrial Consumption
Source Water Volume Share of IOL
(m3) Consumption (m3)
Average Water Produced
Loch Lomond Potable
29,862,720
Spruce Lake
3,711,200
Total Produced
33,573,920
Average East Industrial Consumption
Irving Oil Ltd. 1
8,400,000 25%
HEMSON
321
III OPERATION AND MAINTENANCE COSTS
The revenue the City needs to collect from east industrial customers through user rates
is calculated by first identifying the full operating costs of providing and maintaining
raw water services.
A. OPERATING EXPENDITURES
The City of Saint John utility systems are operated in accordance with provincial
legislation that guarantees safety, quality and reliability. The City of Saint John
operation and maintenance costs are comprised of three key components for the
purposes of this report:
1. East Watershed Management Industrial: includes costs of operating,
maintenance and protection of the watershed that benefits east industrial
customers.
2. Transmission: includes the operation and maintenance costs of transmission to
provide raw water to Irving Oil Ltd.
3. East Customer Metering: includes the operation and maintenance of customer
meters for the east industrial customers.
As the East Saint John Industrial Water customers' transition to a raw water based
billing structure, a share of the City's costs have been allocated for recovery by these
customers. These costs have historically been captured under one potable water
budget. This section outlines the allocation of costs associated to supplying raw water
to east industrial customers based on the 2019 approved budget.2 Details of the
operating costs are provided in the following sections. Asset management
contributions required to maintain assets in a state of good repair are outlined in
Section IV of this report with further details provided in Appendix A.
2 Details on the allocation of costs for the city-wide potable system and West Industrial
System are analyzed in detail in the "Water and Sewer Rate Study"provided under separate
cover.
HEMSON
KYA
11
East Industrial General Operating Expenditures
City staff have identified all costs associated to operating and supplying raw water to
East Saint John Industrial customers as part of the 2019 approved Saint John Water
budget. In particular, specific accounts and portions of total costs that can reasonably
be associated to the East Saint John Industrial Water System have been identified, and
total about $845,900 as shown in Table 4.
Table 4 also shows the methodology and allocation of total operational costs to both
customers on the East Saint John Industrial Water System. In total $784,000 in
general operating costs have been allocated to Irving Oil Ltd. and $62,000 has been
allocated to Irving Paper (Flume) .
HEMSON
0191
Table 4
Raw Water Cost Allocations
d on the 2019 ApprovedBudget
General Operating Approved
2019 Allocations
Description Budget
Irving Oil
Irving
Methodology
2019
Ltd.
Paper
East Watershed
$86,835
$63,301
$23,534
• Benefit provided to both
Mgmt Industrial
users
(General)
• Costs allocated based on
consumption - 73%
Irving Oil Ltd. and 27%
Irving Paper (Flume)
East Watershed
$5,113
$0
$5,113
• Benefit to Irving Paper
Mgmt Industrial
only
(Irving Paper -
Flume)
East Transmission
$687,329
$687,329
$0
• Benefit provided to
(Industrial)
Irving Oil Ltd. only
• Associated to
transmission
infrastructure directly to
the Irving Oil Ltd. facility
East Customer
$66,647
$33,323
$33,323
• Benefit provided to both
Metering
users
• Costs allocated: 50% to
Irving Oil Ltd. and 50%
Irving Paper (Flume)
Total East
$845,924
$783,954
$61,970
Industrial Water
System Operating
Costs
HEMSON
0191
12
Table 5 below illustrates the projected operating costs of the east industrial system in
2020 based on the draft budget. Overall, operating costs are projected to decrease, from
2019, as a result of overall system -wide efficiencies.
5
Raw Water OperatingTable
Area
2019 Approved
2020 Projected (1)
Budget
East Watershed M mt Industrial (General)
$86,835
$101,188
East Watershed Mgmt Industrial (Irving Paper -
$5,113
$5,958
Flume)
East Transmission (Industrial)
$687,329
$618,120
East Customer Metering
$66,647
1 63,500
Total East Industrial Water System Operating
$845,924
$788,765
Costs
/Vote 1: based on Uratt LULU budget
B. CITY-WIDE DEBT ASSUMPTIONS BY SYSTEM
The City has regularly issued debt to fund the repair and replacement of existing water
and sewer assets as well as emplacing the infrastructure needed to facilitate new
development. Many of these capital projects provided benefits to both residential and
non-residential customers across different user groups: potable users as well as East and
West Saint John industrial users.
The rate setting analysis accounts for all existing water and sewer annual debt
payments incurred by the City. To allocate debt costs associated to financing of
infrastructure that benefits East Saint John industrial customers, a three step process
was used:
1. Determine shares of the total city-wide debt associated to water and sewer
services separately. East Saint John industrial users are not connected to the
sewer system and therefore only benefit from the infrastructure improvements
on the water system.
HEMSON
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13
2. Of the total water services debt, determine the shares which can be attributed
to the East Saint John Industrial Water system. This includes shares of
infrastructure financing that benefit East Saint John Industrial users directly
and indirectly.3
3. Of the total debt attributed to the East Saint John Industrial Water System,
determine the share which can reasonably be allocated to Irving Oil Ltd. and
Irving Paper (Flume) .
1. City -Wide Debt
It has been the practice of the City in recent years to issue blended debentures for
various City services in order to fund capital repair and replacement requirements.
Figure 2 summarizes the total annual debt payments associated with the water and
sewer systems over the 2019 to 2029 period. Debentures are issued to the City by the
New Brunswick Municipal Finance Corporation. Debentures have a term of 20 years
and are based on market conditions at the time of borrowing, however, some
debentures are required to be refinanced after 10 years. Debentures that require
refinancing within the 10 -year period have been refinanced at a 4% interest rate for
10 years to account for expected increases in rates over time.
In 2019, total debt payments are about $9.8 million and are expected to decline to
$5.7 million by 2029. Of this $9.8 million, about $6.2 million is associated to water
related services debt in 2019 and is expected to decline to about $3.7 million by 2029,
as no further debt financing is expected over the planning period. The largest single
outstanding debenture is currently for the new Loch Lomond Drinking Water
Treatment Facility at $45 million in principal costs. Importantly, this debenture has
not been included in the calculation of East Saint John Industrial raw water rates as it
relates to potable water only. The following section outlines the allocation of total
city-wide water related debt payments to the respective area.
3 Direct benefits Includes financing of infrastructure solely built to provide raw water to the
East Saint John Industrial Water customers. Indirect benefit includes supporting infrastructure
that is shared between East Saint john Industrial Water customers and the entire water
distribution system.
4 With the exception of the water treatment plant which has a finance term of 30 years
HEMSON
KY'R
14
Figure 2
Total Water and Sewer Debt Payments 2019-2029
N $12.0
c $10.0
2 $8.0
$6.0
$4.0
$2.0
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budget
®Total Water Payments ®Total Sewer Payments
2. Debt Allocated to East Industrial Customers
Water infrastructure that specifically benefits East Saint John Industrial water
customers has been identified based on shares of consumption, location and scope of
infrastructure. This infrastructure has been largely debt financed, therefore annual
debt payments associated to infrastructure identified to benefit industrial customers
has been allocated to this user group. Water services debt has been separated between
the East Saint John Industrial water customers and the city-wide potable system. The
methodology is described below and summarized in Table 6:
• The City identified a range of capital projects undertaken that benefit the East
Industrial users of Irving Oil Ltd and Irving Paper (Flume) . Shares of projects that
benefit these East Industrial users were determined based on a combination of
categorizing benefiting projects and shares of consumption. In total about $1.3
million in annual debt payments were identified for 2020. The specific
methodology is outlined in subsection 3 below.
• The remaining water services debt amounting to approximately $4.7 million in
2020 is associated to infrastructure works benefitting the City-wide potable
system and west industrial system. This share includes debt associated to the new
water treatment plant.
*Note: East Industrial debt is explained in Section 3 below.
HEMSON
326
15
3. Debt Allocated to East Industrial Customers
The City identified a range of capital projects undertaken that benefit the East
Industrial users of Irving Oil Ltd. (IOL) and Irving Paper (Flume) . Each category is
explained below.
• Debt financing costs associated with capital works undertaken specifically on the
East Saint John Industrial Water System, which benefit both Irving Oil Ltd. and
Irving Paper (Flume) have been incorporated in the east industrial rate analysis.
• The 2020 debt payments of $99,310 have been allocated to each user based
on consumption (see Table 2) - Irving Oil Ltd. is allocated 73% of the
annual payment while the remaining 27% of the debt can be attributed to
Irving Paper (Flume) .
• Debt financing costs associated with capital works undertaken specifically on the
East Saint John Industrial Water System, which only benefit Irving Oil Ltd., have
been treated separately.
• The 2020 debt payment of $593,000 has been allocated entirely to Irving Oil
Ltd.
• Lastly, a share of the city-wide water system debt is considered to benefit Irving
Oil Ltd., as well as other users throughout the City (except Irving Paper) . The
total city-wide water debt, less debt already allocated to the East Saint John
industrial users (i.e. $99,310 + $593,000 in 2020) and less debt payments
associated to the new Water Treatment plant is allocated to Irving Oil Ltd. based
on allocations outlined in Table 3.
• On this basis, Irving Oil Ltd. would be allocated 25% (or $640,500) of the
total applicable City-wide debt based on the total billed consumption
outlined in Table 3. Table 7 below summarizes the debt allocated to each
system in 2019 and 2020.
East Industrial Debt Payment
Customer Allocation
Table 7
Allocation 2019 and
2019 Debt
Payments
2020
2020 Debt
Payments
Irving Oil Ltd.
$74,169
$72,395
Irving Paper (Flume)
$27,575
$26,915
Combined Benefit to Irving Oil Ltd.
and Irving Paper (Flume)
$101,744
$99,310
Benefit to Irving Oil Ltd. Only
$607,939
$593,034
City-wide Benefit to Irving Oil Ltd.
$659,602
$640,458
Total East Industrial Debt Payments
$1,369,285
$1,332,801
HEMSON
KYXN
16
IV ASSET MANAGEMENT CONTRIBUTIONS AND RATE
STABILIZATION
Asset management contributions have been incorporated into the calculation of East
Saint John Industrial raw water rates. The contributions have been determined based
on the East Saint John Industrial Water Systems Asset Management Costing Report
prepared by CBCL for the City of Saint John (CBCL report).
A. EAST SAINT JOHN INDUSTRIAL WATER SYSTEM ASSETS
The CBCL report identifies a replacement value of $105.9 million for the East Saint
John Water Industrial Water System Assets. As shown in Table 7, of the total amount,
$15.2 million is related to infrastructure which directly provides raw water service to
this area. The total can further be delineated to $11.5 million associated with
infrastructure to service Irving Oil Ltd. and $3.7 million to service Irving Paper
(Flume) . The remaining $90.7 million includes shared city-wide assets which benefit
a wider customer base than just the East Saint John Industrial Water System users.
Detailed replacement costs by asset are provided in Appendix A.
In addition to annual operating, maintenance and debt servicing costs, water
infrastructure will require periodic rehabilitation and eventual replacement. When
assets require rehabilitation or are due for replacement, the source of funds are
essentially limited to reserves or contributions from operating. In maintaining a user -
pay approach, it is important for the City to build sufficient reserves for the scheduled
replacement of infrastructure through contributions from operating.
The rehabilitation and replacement schedules were created using the asset
management costing report prepared by CBCL for the East Saint John Industrial
Water Systems. Provisions for infrastructure replacement are initially calculated for
each asset based on their useful life and the anticipated cost of replacement. The
aggregate of all individual provisions form the required annual contribution to a
reserve fund. A full cost approach is employed to calculate the annual reserve fund
contributions and is recognized as a fair approach to charging customers for the use of
these assets. In calculating the annual provisions, a 2 per cent inflation rate and a 3.5
per cent investment rate are assumed throughout this analysis.
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01.11
17
Table 8 also shows the required annual provisions to maintain the East Saint John
Industrial Water System in state of good repair amounts to just under $1.1 million. Of
this amount, $139,500 per year is required to maintain the assets associated to
providing raw water to Irving Oil Ltd. while a further $29,700 per year is needed for
the assets associated to Irving Paper (Flume) . The remaining $902,700 is associated
with the shared assets between the East Saint John Industrial Water System and the
city-wide network.
B. ALLOCATION OF ANNUAL ASSET MANAGEMENT EXPENDITURES
Following a similar approach to the allocation of operating and debt cost to the East
Industrial Water System users, asset management contributions related to the future
replacement of water assets has been allocated to benefiting users of Irving Oil Ltd.
and Irving Paper (Table 9) .
The methodology used to allocate costs to the benefitting users is outlined below:
• The CBCL report identifies the specific assets that are emplaced to provide raw
water to Irving Oil Ltd. and Irving Paper (Flume) . The calculated annual capital
provision required amounts to $169,200 per year ($139,500 + 29,700). The full
allocation of those direct assets are included in the calculation of the raw water
rates.
• Recognizing that some of the assets are shared between the East Saint John
Industrial Water System customers and the remaining city-wide user base, an
indirect benefitting share of the calculated annual provision is also identified. Of
the total $902,700 annual contribution, about $315,300 per year is estimated as
the portion of shared assets that benefit Irving Oil Ltd. and Irving Paper (Flume) .
HEMSON
KNO-1
8
East Saint John
ReplacementTable
Industrial Water System Asset
Customer
Assets
Replacement
Annual
Value (2019)
Provision
Irving Oil Ltd.
• WTP to Commerce Drive (Transmission
$11,521,843
$139,450
mains)
• LHPS to Champlain Heights (Transmission
mains)
Irving Paper
• Little River Reservoir Dam
$3,727,493
$29,721
(Flume)
• Little River Reservoir Culverts
• Latimer Lake to IP (Raw water intake)
Shared East
• Various dams, buildings, flow meters,
$90,671,289
$902,662
Industrial and
transmission mains, headers and bridges
City-wide
Total
$105,920,625
$1,071,834
B. ALLOCATION OF ANNUAL ASSET MANAGEMENT EXPENDITURES
Following a similar approach to the allocation of operating and debt cost to the East
Industrial Water System users, asset management contributions related to the future
replacement of water assets has been allocated to benefiting users of Irving Oil Ltd.
and Irving Paper (Table 9) .
The methodology used to allocate costs to the benefitting users is outlined below:
• The CBCL report identifies the specific assets that are emplaced to provide raw
water to Irving Oil Ltd. and Irving Paper (Flume) . The calculated annual capital
provision required amounts to $169,200 per year ($139,500 + 29,700). The full
allocation of those direct assets are included in the calculation of the raw water
rates.
• Recognizing that some of the assets are shared between the East Saint John
Industrial Water System customers and the remaining city-wide user base, an
indirect benefitting share of the calculated annual provision is also identified. Of
the total $902,700 annual contribution, about $315,300 per year is estimated as
the portion of shared assets that benefit Irving Oil Ltd. and Irving Paper (Flume) .
HEMSON
KNO-1
100
The annual provision for common assets has been allocated based on shares
of water consumption of East Saint John Industrial water users relative to the
total billed consumption. Therefore, 35% (or $315,300) of the total
provision is attributed to Irving Oil Ltd. and Irving Paper (Flume) while the
remaining 65% or $587,300 is allocated to the remaining city-wide users.
The asset management requirements of all common assets related to the East
Saint John Industrial Water System, has been further allocated to Irving Oil
Ltd. and Irving Paper (Flume) based on shares of consumption. Therefore of
the total $315,300, 73% (or $229,900) is attributed to Irving Oil Ltd. and
27% (or $85,500) can be attributed to Irving Paper (Flume).
In total, $484,500 represents the total fully calculated annual provision for all
assets associated with the delivery of raw water to Irving Oil Ltd. and Irving Paper
(Flume) .
It is recognized that immediately implementing full cost recovery asset management
provisions may place undue burden on raw water customers in the short-term.
Therefore, the following key assumptions are recommended:
1. The asset management provisions associated with those assets which directly
benefit Irving Oil Ltd. and Irving Paper (Flume) are to be 100% included in
the calculation of the raw water rates for 2020.
The asset management allocations associated with the shared assets which are
considered to be an indirect benefit to Irving Oil Ltd. and Irving Paper (Flume)
have not been fully included in 2020. To maintain consistency with the City-
wide potable system, these contributions have been phased -in.
a. In 2020, of the total indirect asset management provision required, only
20% of the indirect asset management contributions is included in the
Irving Oil Ltd. and Irving Paper calculation of raw water rates.
HEMSON
09191
9
East Saint John IndustrialTable
Customer Direct Benefit
Indirect Benefit
.
Total
Irving Oil Ltd.
$139,450
$229,868
$369,318
Irving Paper
$29,721
$85,462
$115,183
(Flume)
Total Annual
$169,171
$315,330
$484,501
Contribution
It is recognized that immediately implementing full cost recovery asset management
provisions may place undue burden on raw water customers in the short-term.
Therefore, the following key assumptions are recommended:
1. The asset management provisions associated with those assets which directly
benefit Irving Oil Ltd. and Irving Paper (Flume) are to be 100% included in
the calculation of the raw water rates for 2020.
The asset management allocations associated with the shared assets which are
considered to be an indirect benefit to Irving Oil Ltd. and Irving Paper (Flume)
have not been fully included in 2020. To maintain consistency with the City-
wide potable system, these contributions have been phased -in.
a. In 2020, of the total indirect asset management provision required, only
20% of the indirect asset management contributions is included in the
Irving Oil Ltd. and Irving Paper calculation of raw water rates.
HEMSON
09191
19
C. RATE STABILIZATION RESERVE FUND
The purpose of a Rate Stabilization Reserve is to provide funding to offset
unanticipated operating budget variances, primarily arising from revenue shortfalls due
to uncontrollable circumstances. Furthermore, maintaining adequate operating
reserves enhances the system's ability to manage potential risks, provides the ability to
manage fluctuations in revenue, and the ability to meet working capital needs.
Based on AWWA's report, Benchmarking Performance Indicators for Water and
Wastewater: 2016 Edition and best practice, the range of operating reserves for utilities
is generally within the range of 2 to 12 months of operating expenses. For the purposes
of this analysis, a contribution to a rate stabilization reserve fund has been
incorporated into the calculations and set equal to 2 months of operational
expenditures but net of fiscal services charges and asset management related
expenditures. It is expected that these contributions will be monitored carefully over
time to determine if the annual contributions need to be adjusted to better reflect
changing conditions. Table 10 below provides a summary of the 2020 contribution
relative to the projected 2020 operating expenditure for each customer.
Note 1: Operating Costs as indicated in Table 5
HEMSON
331
WK
V CALCULATED RATES
In calculating the raw water rates for the East Saint John Industrial Water System
users a number of assumptions were applied. The raw water rates are calculated to fully
recover the cost of operating the system (inclusive of debt servicing requirements) as
well as a share of the total annual contributions to asset replacement reserves. An
immediate implementation of a rate that fully funds the calculated asset replacement
contributions as identified in Section IV, based on the costing requirements outlined
in the CBCL report, would result in significant impact to these two customers. The
analysis is based on providing for a gradual movement towards full rates.
Table 11 below provides a summary of the 2020 projected net rate funding requirement
for the East Saint John Industrial Water System. The net rate funding need represents
the amount of money that must be funded through the raw water utility rates related
to Irving Oil Ltd. and Irving Paper at the Flume. For the purposes of this report, 2020
is predicated on projected expenses outlined in the draft budget.
The costs identified above are then further allocated to both Irving Oil Ltd. and Irving
Paper (Flume) .
HEMSON
KIM
Table 11
Net Rate Funding Requirement for East Industrial
Users
Ref #
Categories
2020
1
General Operating Expenditures
$788,765
2
Fiscal Services (Debt Costs)
$1,332,801
3
Asset Management Allocation
$232,301
4
Rate Stabilization Reserve Contribution
$131,461
Total Net Rate Funding Need = (1+2+3+4)
$2,485,329
The costs identified above are then further allocated to both Irving Oil Ltd. and Irving
Paper (Flume) .
HEMSON
KIM
21
A. CALCULATED CONSUMPTION RATE - IRVING OIL LTD.
The total estimated cost of providing raw water to Irving Oil Ltd. amounts to about
$2.3 million in 2020, and this amount divided by the total billable consumption of 8.4
million cubic metres, yields a volumetric charge of $0.2780 per cubic metre. Table 12
below illustrates the total raw water rate calculation for 2020.
Table 12
Calculation of 2020 Raw Water Rates - Irving
Oil Ltd.
Description
2020
Calculated
1. Operating Costs
East Watershed M mt Industrial
$73,764
East Transmission (IND)
$618,120
East Customer Metering
$31,750
Subtotal Operating Costs
$723,633
2. Fiscal Services (Debt)
Irving Oil Ltd. share
$1,305,886
3. Asset Management Allocation
Irving Oil Ltd. share
$185,471
4. Rate Stabilization Fund Contribution
Irving Oil Ltd. share
$120,606
5. Total Costs (1+2+3+4 = 5)
$2,335,596
6. Annual Consumption (m3)
Irving Oil ltd.
8,400,000
7. Calculated Rates (4/5 = 6)
Irving Oil ltd. ($/m3)
$0,2730
HEMSON
09193
22
B. CALCULATED CONSUMPTION RATE - IRVING PAPER (FLUME)
The total cost of providing raw water to Irving Paper at the Flume is estimated at
$149,700 in 2020. This amount divided by total billable consumption of 3.1 million
cubic metres, yields a volumetric charge of $0.0479 per cubic metre. Table 13 below
illustrates the total raw water rate calculation for 2020 and anticipated rates to come
into force in 2020.
Table 13
Calculation of 2020 Raw Water Rates - Irving
Description
Paper (Flume)
2020
Calculated
1. Operating Costs
East Watershed M mt Industrial
$33,382
East Transmission (IND)
$0
East Customer Metering
$31,750
Operating Costs
$65,132
-Subtotal
2. Fiscal Services (Debt)
Fiscal Services (Debt)
$26,915
3. Asset Management Allocation
Irving Paper (Flume)
$46,831
4. Rate Stabilization Fund Contribution
Irving Oil Ltd. share
$10,855
5. Total Costs (1+2+3 = 4)
$149,733
6. Annual Consumption (m3)
Irving Paper (Flume)
3,123,000
7. Calculated Rates (4 / 5 = 6)
Irving Raper (Flume) (1m3)
$0.0479, ,
HEMSON
23
C. RATE IMPACTS
In order to test the impact of the new rates on the City's two industrial customers
affected by the change to a raw water rate billing structure expected in 2020, a
sensitivity analysis was undertaken to quantify the rate impacts. Table 14 below
illustrates the impact of the calculated raw water consumption based charges for both
Irving Oil Ltd. and Irving Paper (at the Flume) .
Note 1: Irving Oil current payment based on actuals to October 2019 and estimated to end of 2019. Irving
Paper (Flume) is estimated based on projected consumption only based on the existing rate structure (see
Table 1).
Note 2: 2020 estimates are based on assumed consumption relative to historical trends.
As a result of the changes in service delivery, Irving Oil Ltd. will see significant savings
on the total bill as they transition to raw water based user fees and Irving Paper will
see an increase in the total bill.
HEMSON
09191
APPENDIX A
DETAILED ASSET REPLACEMENT COSTS
HEMSON
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WEST SAINT JOHN INDUSTRIAL
RAW WATER RATE REPORT
19191:3
SAINT JOHN
HEMSON consulting Ltd.
November 2019
TABLE OF CONTENTS
EXECUTIVE SUMMARY...............................................................................................1
1 BACKGROUND AND STUDY OBJECTIVE.........................................................4
A. BACKGROUND.........................................................................................4
B. STUDY OBJECTIVE....................................................................................5
II RAW WATER DEMAND ANALYSIS....................................................................7
A. RAW WATER CONSUMPTION ADJUSTMENTS........................................7
B. CONSUMPTION ALLOCATIONS..............................................................8
III OPERATION AND MAINTENANCE COSTS.......................................................9
A. OPERATING EXPENDITURES....................................................................9
B. CITY-WIDE DEBT ASSUMPTIONS BY SYSTEM........................................1
1
IV ASSET MANAGEMENT CONTRIBUTIONS AND RATE STABILIZATION .........15
A. WEST SAINT JOHN INDUSTRIAL WATER SYSTEM ASSETS ....................15
B. ALLOCATION OF ANNUAL ASSET MANAGEMENT EXPENDITURES .....
16
C. RATE STABILIZATION RESERVE FUND...................................................18
V CALCULATED RATES.......................................................................................19
A. CALCULATED CONSUMPTION RATE - IRVING PULP AND PAPER ......20
B. CALCULATED CONSUMPTION RATE - NB POWER (COLESON COVE)
21
C. RATE IMPACTS........................................................................................
22
Appendix A Detailed Asset Replacement Costs
HEMSON
00:j
EXECUTIVE SUMMARY
The City embarked upon the construction of a 75 million litre per day water treatment
plant, the renewal and installation of 26 kilometres of water transmission/distribution
mains, the renewal of 3 dams and the development of the new South Bay Wellfield at
a cost upwards of $200 million to bring safe, clean drinking water to the citizens of
Saint John. These changes, combined with Council's priority to investigate options to
allocate water costs among rate payers, necessitates a review of the water rates for non-
residential users. These changes apply to large industrial users using non -potable (or
raw water) but will consequently have an impact on potable user rates as well.
Hemson was retained by the City of Saint John to undertake a comprehensive Water
and Sewer Rate Study. The rate study consists of four components with the view of
calculating new user rates under the following scenarios:
1) Calculating utility rates under the City's existing water and sewer rate structure
for all potable water users;
2) Raw water rate analysis for Irving Oil Ltd. and Irving Paper (at the Flume), on
the East Saint John Industrial Water System receiving services;
3) Raw water rate analysis for Irving Pulp & Paper and the NB Power Generating
Station (Coleson Cove) on the West Saint John Industrial Water System
receiving services; and
4) Examine the costs and benefits of universal metering in the City. Alternative
rate structures and sensitivity analyses under a metering scenario for all users
on the potable system.
This report addresses the raw water rate analysis for two customers receiving services:
Irving Pulp & Paper and the NB Power Generating Station (Coleson Cove) on the
West Saint John Industrial Water System.
The full cost analysis reveals that:
The required west raw water user rate revenue in 2020 is forecast based upon
expenditures of just about $3.1 million. To achieve full cost recovery, the amount
of revenue which must be collected through the sale of raw water to fully recover
operating costs, debt servicing costs and capital asset replacement costs of the
West Saint John Industrial Water System assets is $3.1 million in 2020.
R Min
E i7-1
I
• Of this total, the costs have been further allocated to both Irving Pulp and Paper
and NB Power (Coleson Cove) customers on a range of factors.
In order for the City to recover costs associated with providing services, necessary
adjustments to the utility rates are required. The table below provides a snapshot of
the total net funding requirement and the calculated utility rates for both customers
under the proposed rate structure expected to come into effect in 2020.
In order to test the impact of the new rates on the City's two industrial customers
affected by the change in service delivery from potable to raw water, a sensitivity
analysis was undertaken to quantify the rate impacts. It is important to note, that for
the purposes of this report it has been assumed that implementation of new raw water
rates is expected to occur in 2020, with the existing rate structure to be used
throughout 2019. The table below illustrates the impact of the newly calculated raw
water consumption based charges for both Irving Pulp and Paper and NB Power
(Coleson Cove).
• Irving Pulp and Paper is expected to see an increase of about $557,400. This
increase fully reflects debt costs and asset management contributions associated
to infrastructure to provide raw water to Irving Pulp and Paper.
Calculation of
Description
2020 Raw Water Rates
Irving Pulp and Paper
NB Power
(Coleson Cove)
1.Operating Costs
West Watershed M mt Industrial
$488,084
$7,829
West Transmission (IND)
$1,069,528
$17,156
West Customer Metering
$30,036
$30,036
Subtotal Operating Costs
$1,587,648
$55,022
2. Fiscal Services (Debt)
$318,243
$2,656
3. Asset Management and Capital
from Operating
Asset Management
$490,989
$94,610
Capital from Operating
$225,178
$3,612
Subtotal
$716,167
$98,222
4. Rate Stabilization Reserve
$264,608
$9,170
5. Total Costs (1+2+3 = 4)
$2,886,666
$165,070
6. Annual Consumption (m3)
39,000,000
625,600
7. Calculated Rats {4/5 = 6)
$fl.t174t1
9.26319
In order to test the impact of the new rates on the City's two industrial customers
affected by the change in service delivery from potable to raw water, a sensitivity
analysis was undertaken to quantify the rate impacts. It is important to note, that for
the purposes of this report it has been assumed that implementation of new raw water
rates is expected to occur in 2020, with the existing rate structure to be used
throughout 2019. The table below illustrates the impact of the newly calculated raw
water consumption based charges for both Irving Pulp and Paper and NB Power
(Coleson Cove).
• Irving Pulp and Paper is expected to see an increase of about $557,400. This
increase fully reflects debt costs and asset management contributions associated
to infrastructure to provide raw water to Irving Pulp and Paper.
3
• NB Power (Coleson Cove) is expected to see a decrease of about $477,600. This
decrease is associated to the change in billing from potable water to raw water.
Comparison
Customer Assumed 2020
Consumption
(m3)
Current 2019
Payment Under
Existing RatesM
Calculated 2020 Difference M
Payment under
Raw Water
Billing(2)
Irving Pulp and Paper 39,000,000
$2,329,200
$2,886,666 $557,446
NB Power 1 625,600
1 $642,700
$165,070 $(477,630)
Note 1 : Irvin2 PUID and Paper current oavment based on actuals to October 2019 and estimated to end of
2019. NB Power is estimated based on projected consumption only based on the existing rate structure (see
Table 1).
Note 2: 2020 estimates are based on assumed consumption relative to historical trends.
The City has undertaken the west industrial rate analysis to more accurately allocate
costs of providing water services among rate payers. The results of the study reflects a
shift in service delivery which started in 2018 with the construction of the new
treatment plant and the expected change to raw water supply to west industrial users.
Historically, all costs and revenues for all users have been captured under the one
potable water budget, however moving forward both the costs of providing raw water
services and the revenues generated will be recorded independently from the potable
system. This process has been implemented for the approved 2019 Saint John Water
operating and capital budget. As a result, the share of costs associated with providing
raw water to west industrial systems are attributed to those systems. The cost recovery
approach applied to calculate the user rates is consistent with the requirements of the
Local Governance Act which requires water and sewer services to be balanced on an
annual basis. As a result of the changes in billing practice, NB Power (Coleson Cove)
will see significant savings on the total bill and Irving Pulp and Paper will see an
increase, as these customers transition to raw water based user fees.
MMID
MMMN
In
I BACKGROUND AND STUDY OBJECTIVE
A. BACKGROUND
The City embarked upon the construction of a 75 million litre per day water treatment
plant, the renewal and installation of 26 kilometres of water transmission/distribution
mains, the renewal of 3 dams and the development of the new South Bay Wellfield at
a cost upwards of $200 million to bring safe, clean drinking water to the citizens of
Saint John. The Loch Lomond Drinking Water Treatment Facility is located near the
Little River Reservoir by Lakewood Heights and is part of the "Safe Clean Drinking
Water Project" which will reduce the occurrence of boil water orders and service
interruptions. The plant entered service on August 30, 2018.
With the construction of the new plant, separation of the potable and east industrial
water supply can be accomplished, thereby requiring an adjustment in the way the City
delivers services to both residential and non-residential customers. These changes
necessitate a review of the water rates for non-residential users, most notably large
industrial users using non -potable (or raw water), which in turn, will have an impact
on potable user rates. This report addresses the raw water rate analysis for two
customers, Irving Pulp and Paper and NB Power (Colson Cove), on the West Saint
John Industrial Water System. Historically, these customers have paid potable water
rates or special negotiated user rates, however, moving forward, these customers will
be billed for the full cost of providing raw water.
The City of Saint John supplies two major industrial water customers from the Spruce
Lake and Musquash watersheds in the west utilizing two dedicated transmission
systems isolated from the potable distribution system. The first major industrial
customer is NB Power. The water transmission feed from Spruce Lake is referred to as
the Coleson Cove System and consists of an intake, screen building, and transmission
main supplying processed water to the Coleson Cove Power Generating Plant. The
second major industrial customer in the west is Irving Pulp and Paper (IPP). The water
transmission feed from the Spruce Lake system consists of an intake pipe, screen
building and a transmission main to the clear well at the Irving Pulp and Paper (IPP)
Mill.
The Musquash system supplements the Spruce Lake/Ludgate Lake watershed by
pumping. The Musquash Pumping Station is situated on the East Branch of the
Musquash and is interconnected to Menzies Lake by a transmission main. The lakes
Ma a ft IV,
Y , __
k
are defined by two earth dams and two concrete structures to maintain a top water
level.
Raw water service and potable water service are quite different in many respects. Aside
from the difference in quality, more complex infrastructure and servicing requirements
are needed to provide potable water service as opposed to raw water. This results in
vast differences in costs and ultimately the rates between the raw water users and the
potable water system.
B. STUDY OBJECTIVE
Hemson was retained by the City of Saint John to undertake a comprehensive Water
and Sewer Rate Study. The rate study contains four components with the view of
calculating new user rates under the following scenarios:
1) Calculating utility rates under the City's existing water and sewer rate structure
for all potable water users;
2) Raw water rate analysis for Irving Oil Ltd. and Irving Paper (Flume), on the
East Saint John Industrial Water System receiving services;
3) Raw water rate analysis for Irving Pulp & Paper and the NB Power Generating
Station (Coleson Cove) on the West Saint John Industrial Water System
receiving services; and
4) Examine the costs and benefits of universal metering in the City. Alternative
rate structures and sensitivity analyses under a metering scenario for all users
on the potable system.
This report addresses the raw water rate analysis for Irving Pulp & Paper and the NB
Power Generating Station (Coleson Cove) on the West Saint John Industrial Water
System. For the purposes of this report, it has been assumed that implementation of
new raw water rates is expected to occur in 2020, with the existing rate structure
continuing to be used throughout 2019. Therefore, for reference purposes, raw water
costs are illustrated based on the approved 2019 Saint John Water Budget while the
rates are calculated for 2020 based on projected costs as outlined in the draft budget.
In undertaking this analysis, a utility rate model was developed and serves as a dynamic
rate setting tool. Using the model, the City is able to perform sensitivity analyses of
raw water rates, rate structure and also phase-in options. Figure 1 illustrates the overall
approach.
Figure 1
Utility Rate Setting Model
7
II RAW WATER DEMAND ANALYSIS
Future costs for the City to provide raw water to the West Saint John Industrial
customers will largely be driven by demands placed on the system by these consumers.
A forecast of future consumption demands must therefore be developed.
A. RAW WATER CONSUMPTION ADJUSTMENTS
With the completion of the Safe Clean Drinking Water Project and undertaking a full
cost recovery rate approach, there will be an adjustment in the way the City's existing
large industrial customers are billed for services. The purpose of this adjustment is to
bring uniformity to the City's billing approach and to more accurately allocate water
costs among rate payers. Historically, these customers have paid potable water rates or
special negotiated user rates, however, moving forward, these customers will be billed
for the full cost of providing raw water.
Table 1 below summarizes the existing billing structure in 2019 and associated
projected consumption (based on a 5 -year average) for each customer related to the
proposed new 2020 billing structure. Irving Pulp and Paper (IPP) is currently billed for
water services based on a blend of special agreement rates and city-wide potable water
rates while NB Power (Coleson Cove) is billed solely on city-wide potable water rates.
In total, these customers are anticipated to consume about 39.6 million cubic metres
in 2019 and 2020.
Table 1
Summary of West Saint John Water Consumption
Customer
2019/2020 Billed Existing Consumption and New Raw Water Rate
Consumption Billing Structure: 2020 Billing
Projection
Irving Pulp and
39,000,000 m3
• Combined 60" and 30"
• New West Industrial Raw
Paper
raw/potable water lines to
Water Rate specific to
IPP - Combined Special
Irving Pulp and Paper
Agreement Rates and
potable water rates
NB Power
625,600 m3
• City-wide potable water
• New West Industrial Raw
(Coleson Cove)
rates
Water Rate specific to NB
Power
Total
39,625,600 m3
Con sum tion
Hel
Changes in non-residential consumption activity is often difficult to predict as
consumption patterns can be dependent on the general economic climate as well as
general processes of a business. Typically, non-residential customers continue to adapt
operations to be more efficient and environmentally friendly. Therefore, for the
purposes of this study, no growth in overall raw water consumption is assumed over the
forecast period and remains at a similar level in 2020.
B. CONSUMPTION ALLOCATIONS'
For the purposes of setting raw water rates for West Saint John Industrial customers,
general operating costs, existing debt financing expenditures as well as general asset
management provisions, have been allocated to each user based on a 5 -year average
(2013-2017) of west industrial water consumption.
Total consumption on the west industrial system totals 39.6 million cubic metres. Of
this, 39.0 million cubic metres or 98% of total water billed is associated to consumption
by Irving Pulp and Paper while the remaining 625,600 cubic metres, or 2% of total
water, is associated to consumption by NB Power (Coleson Cove).
I The potable water consumption forecast for the city-wide potable system is analyzed in
detail in the "Water and Sewer Rate Study"for the potable systems provided under separate
cover.
Old IV,new
N
III OPERATION AND MAINTENANCE COSTS
The revenue the City needs to collect from west industrial customers through user rates
is calculated by first identifying the full operating costs of providing and maintaining
raw water services.
A. OPERATING EXPENDITURES
The City of Saint John utility systems are operated in accordance with provincial
legislation that ensures safety, quality and reliability. The City of Saint John operation
and maintenance costs are comprised of three key components for the purposes of this
report:
1. West Watershed Management Industrial: includes costs of operating,
maintenance and protection of the watershed that benefits west industrial
customers.
2. Transmission: includes the operation and maintenance costs of Musquash
pumping and transmission as well as screening to provide raw water to both
Irving Pulp and Paper and NB Power (Coleson Cove).
3. West Customer Metering: includes the operation and maintenance of customer
meters for the west industrial customers.
As the West Saint John Industrial Water customers transition to a raw water based
billing structure, a share of the City's costs have been allocated for recovery by these
customers. This section outlines the allocation of costs associated to supplying raw
water to west industrial customers based on the 2019 approved budget.' Details of the
operating costs are provided in the following sections. Asset management
contributions required to maintain assets in a state of good repair are outlined in
Section IV of this report with further details provided in Appendix A.
1. West Industrial General Operating Expenditures
City staff have identified all costs associated to operating and supplying raw water to
West Saint John Industrial customers as part of the approved 2019 budget. In
2 Details on the allocation of costs for the city-wide potable system and West Industrial
System are analyzed m detailin the "Water and Sewer Rate Study"provided under separate
cover.
10
particular, specific accounts and portions of total costs that can reasonably be
associated to the West Saint John Industrial Water System have been identified, and
total about $1.74 million in 2019 as shown in Table 3.
Table 3 also shows the methodology and allocation of total operational costs to both
customers on the West Saint John Industrial Water System. In total $1.68 million in
general operating costs have been allocated to Irving Pulp and Paper and $59,700 has
been allocated to NB Power (Coleson Cove).
Table 3
Raw Water Cost Allocations Based on the 2019 Approved;
General Approved 2019 Allocations
Operating Budget
Description
2019
Irving Pulp
NB Power
Methodology
and Paper
West Watershed
$523,530
$515,264
$8,265
• Benefit provided to both users
Mgmt Industrial
• Costs allocated based on
consumption - 98% Irving Pulp
and Paper and 2% NB Power
West
$1,147,833
$1,129,711
$18,122
• Benefit provided to both users
Transmission
(Industrial)
• Costs allocated based on
consumption - 98% Irving Pulp
and Paper and 2% NB Power
West Customer
$66,556
$33,278
$33,278
• Benefit provided to both users
Metering
• Costs allocated 50% Irving Pulp
and Paper and 50% NB Power
Total West
$1,737,919
$1,678,253
$59,665
Industrial Water
System
Operating Costs
Note: 2019 Metering expenditures represent west customers only.
Table 4 below illustrates the projected operating costs of the west industrial system
in 2020 based on the draft budget. Overall, operating costs are projected to decrease,
from 2019, as a result of overall system -wide efficiencies found.
Table 4
Raw Water Operating
Area
2019 Approved
2020 Projected (1)
Budget
West Watershed M mt Industrial
$523,530
$495,913
West Transmission (Industrial)
$1,147,833
$1,086,684
West Customer Metering
$66,556
$60,073
Total East Industrial Water System Operating
$1,737,919
$1,642,671
Costs
Note 1: Based on Dratt 2020 budget
B. CITY-WIDE DEBT ASSUMPTIONS BY SYSTEM
The City has regularly issued debt to fund the repair and replacement of existing water
and sewer assets as well as emplacing the infrastructure needed to facilitate new
development. Many of these capital projects provided benefits to both residential and
non-residential customers across different user groups: potable users as well as east and
west Saint John industrial users.
The rate setting analysis accounts for all existing water and sewer annual debt
payments incurred by the City. To allocate debt costs associated to financing of
infrastructure that benefits West Saint John Industrial customers, a three step process
was used:
1. Determine shares of the total city-wide debt associated to water and sewer
services separately. West Saint John Industrial users are not connected to the
sewer system and therefore only benefit from the infrastructure improvements
on the water system.
2. Of the total water services debt, determine the shares which can be attributed
to the West Saint John Industrial Water system. This includes shares of
infrastructure financing that benefit West Saint John Industrial users directly.
3. Of the total debt attributed to the West Saint John Industrial Water System,
determine the share of which can reasonably be allocated to Irving Pulp and
Paper and NB Power (Coleson Cove).
1. City -Wide Debt
It has been the practice of the City in recent years to issue blended debentures for
various City services in order to fund capital repair and replacement requirements.
Figure 2 summarizes the total annual debt payments associated with the water and
sewer systems over the 2019 to 2029 period. Debentures are issued to the City by the
New Brunswick Municipal Finance Corporation. Usually, debentures have a term of
OldA(.Y�7►
12
20 years and are based on market conditions at the time of borrowing, however some
debentures are required to be refinanced after 10 years. Debentures that require
refinancing within the 10 -year period have been refinanced at a 4% interest rate for
10 years to account for expected increases in rates over time.
In 2019, total debt payments are about $9.8 million and are expected to decline to
$5.7 million by 2029. Of this $9.8 million, about $6.2 million is associated to water
related services debt in 2019 and is expected to decline to about $3.7 million by 2029,
as no further debt financing is expected over the planning period. The largest single
outstanding debenture is currently for the new Loch Lomond Drinking Water
Treatment Facility at $45 million in principal costs. Importantly, this debenture has
not been included in the calculation of West Saint John Industrial raw water rates as
it relates to potable water only. The following section outlines the allocation of total
City-wide water related debt payments to the respective area.
Figure 2
Total Water and Sewer Debt Payments 2019-2029
N $12.0
c $10.0
2 $8.0
$6.0
$4.0
$2.0
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budget
® Total Water Payments ® Total Sewer Payments
2. Debt Allocated to West Industrial Users
Water infrastructure that specifically benefits West Saint John Industrial water
customers has been identified based on shares of consumption, location and scope of
infrastructure. This infrastructure has been largely debt financed, therefore annual debt
payments associated to infrastructure identified to benefit industrial customers has
been allocated to this user group. Water services debt has been separated between the
West and East Saint John Industrial water customers and the City-wide potable system.
The methodology is described below and summarized in Table 5:
3 With the exception of the water treatmentplant which has a finance term of30 years.
Old�(.Y�7►
13
The City identified a range of capital projects undertaken that benefit the west
industrial users of Irving Pulp and Paper and NB Power (Coleson Cove). Shares
of projects that benefit these west industrial users were determined based on a
combination of categorizing benefiting projects and shares of consumption. In
total about $320,900 in annual debt payments were identified for 2020. The
specific methodology is outlined in subsection 3 below.
The remaining water services debt amounting to $5.72 million in 2020 is
associated to infrastructure works benefitting the city-wide potable system and
east industrial system. This share also includes debt associated to the new water
treatment plant.
3. Debt Allocated to West Industrial Customers
The City identified a range of capital projects undertaken that benefit the west
industrial users of Irving Pulp and Paper (IPP) and NB Power (Coleson Cove). Each
category is explained below.
Debt financing costs associated with capital works undertaken specifically on the
West Saint John Industrial Water System, which benefit both Irving Pulp and
Paper and NB Power (Coleson Cove) have been incorporated in the west
industrial rate analysis.
The 2020 debt payments of $168,200 have been allocated to each user based
on consumption — Irving Pulp and Paper is allocated 98% of the annual
payment while the remaining 2% of the debt can be attributed to NB Power
(Coleson Cove).
Debt financing costs associated with capital works undertaken specifically on the
West Saint John Industrial Water System, which only benefit Irving Pulp and
Paper, have been treated separately.
The 2020 debt payment of $152,700 has been allocated entirely to Irving
Pulp and Paper.
OldIV,
(.Y�7►
14
Table 6
West Industrial Debt Payment
Allocation
Customer Allocation
2019 Debt
2020 Debt
Payments
Payments
Irving Pulp and Paper
$169,919
$165,562
NB Power (Coleson Cove)
$2,726
$2,656
Combined Benefit to Irving Pulp and
$172,645
$168,218
Paper and NB Power
Benefit to Irving Pulp and Paper
$155,638
$152680
Total West Industrial Debt Payments
$328,282
$320,898
Olda(.Y�7►
15
IV ASSET MANAGEMENT CONTRIBUTIONS AND RATE
STABILIZATION
Asset management contributions have been incorporated into the calculation of West
Saint John Industrial raw water rates. The contributions have been determined based
on the West Saint John Industrial Water Systems Asset Management Costing Report
prepared by CBCL for the City of Saint John (CBCL report).
A. WEST SAINT JOHN INDUSTRIAL WATER SYSTEM ASSETS
The CBCL report identifies a replacement value of $87.4 million for the West Saint
John Industrial Water System Assets (Table 7). Detailed replacement costs by asset
are provided in Appendix A. In addition to annual operating, maintenance and debt
servicing costs, water infrastructure will require periodic rehabilitation and eventual
replacement. When assets require rehabilitation or are due for replacement, the source
of funds are essentially limited to reserves or contributions from operating. In
maintaining a user -pay approach, it is important for the City to build sufficient reserves
for the scheduled replacement of infrastructure through contributions from operating.
The rehabilitation and replacement schedules were created using the asset
management costing report prepared by CBCL for the West Saint John Industrial
Water Systems. Provisions for infrastructure replacement are initially calculated for
each asset based on their useful life and the anticipated cost of replacement. The
aggregate of all individual provisions form the required annual contribution to a
reserve fund. A full cost approach is employed to calculate the annual reserve fund
contributions and is recognized as a fair approach to charging customers for the use of
these assets. In calculating the annual provisions, a 2 per cent inflation rate and a 3.5
per cent investment rate are assumed throughout this analysis.
Table 7 also shows the required annual provision to maintain the West Saint John
Industrial Water System in state of good repair is $585,600 per year. Of this amount,
$89,000 per year is required to maintain the specific assets associated to providing raw
water to NB Power (Coleson Cove) while a further $144,200 per year is needed for the
assets associated to Irving Pulp and Paper. The remaining $352,400 is associated with
the shared assets between the two Saint John Industrial Water System customers. The
annual asset management provision is then further delineated between the two
customers which is described in the following section.
Olram(.Y�7►
16
Note*: The actual replacement cost of this asset is about $43.7 million, however, the cost has been adjusted
to reflect the type of capital investment that is expected to occur (in the future this asset is anticipated to be
constructed to a different standard). That said, if the transmission main needs to be replaced to a similar
standard as currently provided, the remaining $33.7 million should be funded directly from Irving Pulp and
Paper.
B. ALLOCATION OF ANNUAL ASSET MANAGEMENT EXPENDITURES
Following a similar approach to the allocation of operating costs to the West Saint
John Industrial Water System users, asset management contributions related to the
future replacement of water assets has been allocated to benefiting users of Irving Pulp
and Paper and NB Power.
The methodology used to allocate costs to the benefitting users is outlined below:
The CBCL report identifies the specific assets that are emplaced to provide raw
water to Irving Pulp and Paper and NB Power. The calculated annual capital
provision required for NB Power is $89,000 and $144,200 for Irving Pulp and
Paper. The full allocation of those direct assets are included in the calculation of
the raw water rates.
Recognizing that some of the assets are shared between both West Saint John
Industrial Water System customers, the remaining amount is distributed to each
customer.
Ruffild�(.YN►
Table 7
West Saint John
Industrial Water System Asset Replacement Value
and Required Annual
Provision
Customer
Assets
Replacement
Annual
Value (2019)
Provision
NB Power
• Coleson Cove 1 500mm Transmission
$9,968,240
$89,046
(Coleson Cove)
Intake
• Coleson Cove Screen Building
• Coleson Cove 600mm Transmission Main
Irving Pulp and
• Spruce Lake Transmission Main
$15,482,359
$144,183
Paper
. Spruce Lake Intake (1800mm)
• Spruce Lake Screen Building
IPP and NB Power
. Musquash Pumping Station
$28,233,456
$352,369
Combined Benefit
• Transmission Main From Musquash
• Menzies Lake Dams
• Spruce Lake Dam
Total Adjusted
$53,684,054
$585,599
Spruce Lake
• Spruce Lake Transmission Main
$33,698,367
$0
Transmission Main
(Remaining Cost)
Adjustment*
Total
$87,382,421
$585,599
Note*: The actual replacement cost of this asset is about $43.7 million, however, the cost has been adjusted
to reflect the type of capital investment that is expected to occur (in the future this asset is anticipated to be
constructed to a different standard). That said, if the transmission main needs to be replaced to a similar
standard as currently provided, the remaining $33.7 million should be funded directly from Irving Pulp and
Paper.
B. ALLOCATION OF ANNUAL ASSET MANAGEMENT EXPENDITURES
Following a similar approach to the allocation of operating costs to the West Saint
John Industrial Water System users, asset management contributions related to the
future replacement of water assets has been allocated to benefiting users of Irving Pulp
and Paper and NB Power.
The methodology used to allocate costs to the benefitting users is outlined below:
The CBCL report identifies the specific assets that are emplaced to provide raw
water to Irving Pulp and Paper and NB Power. The calculated annual capital
provision required for NB Power is $89,000 and $144,200 for Irving Pulp and
Paper. The full allocation of those direct assets are included in the calculation of
the raw water rates.
Recognizing that some of the assets are shared between both West Saint John
Industrial Water System customers, the remaining amount is distributed to each
customer.
Ruffild�(.YN►
17
• The asset management requirements of all common assets related to the
West Saint John Industrial Water System, has been further allocated to
Irving Pulp and Paper and NB Power (Coleson Cove) based on shares of
consumption. Therefore of the total $352,400, 98% (or $346,800) is
attributed to Irving Pulp and Paper and 2% (or $5,600) can be attributed to
NB Power (Coleson Cove).
• In total, $585,600 represents the total fully calculated annual provision for all
assets associated with the delivery of raw water to Irving Pulp and Paper and NB
Power (Coleson Cove). The asset management provisions associated with those
assets which directly benefit Irving Pulp and Paper and NB Power (Coleson Cove)
are to be 100% included in the calculation of the raw water rates for 2020.
In addition to the above noted asset management expenditures, the City has identified
$5.3 million in asset renewal expenditures (for which the City is responsible for
funding) associated with the Musquash Pumping Station and related infrastructure
which services both Irving Pulp and Paper and NB Power (Coleson Cove). The annual
asset management contributions identified in this analysis would not be sufficient in
the short-term to cover these expenditures, therefore, the cost of these works has been
included in the calculations over a ten-year period. Table 8 below summarizes the total
capital investment required as well as the annual capital from operating funding that
has been incorporated into the calculation of west industrial raw water rates.
Note 1: It is assumed that the annual asset management contributions related to Musquash
Infrastructure would be applied to fund these immediate expenditures in the short -medium term.
The capital from operating contribution of $228,800 identified in Table 8 has been
further allocated to Irving Pulp and Paper and NB Power (Coleson Cove) based on
shares of consumption. Therefore of the total $228,800, 98% (or $225,200) is
attributed to Irving Pulp and Paper and 2% (or $3,600) can be attributed to NB Power
(Coleson Cove).
OldA(.Y�7►
OperatingWest Saint John Industrial System: Capital from
Details of Work Capital Cost
Ref #
1
Musquash Water Pumping Station Electrical
Substation
$1,882,200
2
Upgrade/reconstruction — appropriate pump sizing,
electrical upgrades, flood proofing, etc. Including
design and construction management services.
$3,400,000
3
Total West Industrial Asset Renewal Cost (1+2)
$5,282,200
4
Total Annual Cost over 10 -Years (3 / 10 ears)
$528,220
5
Less: Annual Asset Management Contributions
$299,430
6
Annual Capital from Operating Contribution
Required (4 — 5 = 6)
$228,790
Note 1: It is assumed that the annual asset management contributions related to Musquash
Infrastructure would be applied to fund these immediate expenditures in the short -medium term.
The capital from operating contribution of $228,800 identified in Table 8 has been
further allocated to Irving Pulp and Paper and NB Power (Coleson Cove) based on
shares of consumption. Therefore of the total $228,800, 98% (or $225,200) is
attributed to Irving Pulp and Paper and 2% (or $3,600) can be attributed to NB Power
(Coleson Cove).
OldA(.Y�7►
C. RATE STABILIZATION RESERVE FUND
The purpose of a Rate Stabilization Reserve is to provide funding to offset
unanticipated operating budget variances, primarily arising from revenue shortfalls due
to uncontrollable circumstances. Furthermore, maintaining adequate operating
reserves enhances the system's ability to manage potential risks, provides the ability to
manage fluctuations in revenue, and the ability to meet working capital needs.
Based on AWWA's report, Benchmarking Performance Indicators for Water and
Wastewater: 2016 Edition and best practice, the range of operating reserves for utilities
is generally within the range of 2 to 12 months of operating expenses. For the purposes
of this analysis, a contribution to a rate stabilization reserve fund has been incorporated
into the calculations and set equal to 2 months of operational expenditures but net of
fiscal services charges and asset management related expenditures. It is expected that
these contributions will be monitored carefully over time to determine if the annual
contributions need to be adjusted to better reflect changing conditions. Table 9 below
provides a summary of the 2020 contribution relative to the projected 2020 operating
expenditure for each customer.
Note 1: Operating Costs as indicated in Table 4
Muffild�(.YN►
19
V CALCULATED RATES
In calculating the raw water rates for the West Saint John Industrial Water System
users a number of assumptions were applied. The raw water rates are calculated to fully
recover the cost of operating the system (inclusive of debt servicing requirements) as
well as annual contributions to asset replacement reserves. The analysis assumes
implementation of a rate that fully funds the calculated asset replacement
contributions as identified in Section IV, based on the costing requirements outlined
in the CBCL report.
Table 10 below provides a summary of the 2020 projected net rate funding requirement
for the West Saint John Industrial Water System. The net rate funding need represents
the amount of money that must be funded through the raw water utility rates related
to Irving Pulp and Paper and NB Power. For the purposes of this report, 2020 is
predicated on projected expenses outlined in the draft budget. It is assumed that raw
water rates will come into effect in 2020.
The costs identified above are then further allocated to both Irving Pulp and Paper
and NB Power (Coleson Cove).
Old�---Y�7►
Table 10
Net Rate Funding Requirement for West Industrial Users
Ref #
Categories
2020
1
General Operating Expenditures
$1,642,671
2
Fiscal Services (Debt Costs)
$320,898
3
Asset Management Allocation
$585,599
4
Capital from Operating
$228,790
5
Rate Stabilization Reserve Contribution
$273,778
Total Net Rate Funding Need = (1+2+3+4+5)
$3,051,736
The costs identified above are then further allocated to both Irving Pulp and Paper
and NB Power (Coleson Cove).
Old�---Y�7►
I1
A. CALCULATED CONSUMPTION RATE — IRVING PULP AND PAPER
The total cost of providing raw water to Irving Pulp and Paper amounts to $2.9 million
in 2020, and this amount divided by the total billable consumption of 39.0 million
cubic metres, yields a volumetric charge of $0.0740 per cubic metre. Table II
illustrates the total raw water rate calculation for 2020.
Table 11
Calculation of 2020 Raw Water Rates Irving
Description
Pulp and Paper
2020
Calculated
1.Operating Costs
West Watershed M mt. Industrial
$488,084
West Transmission (IND)
$1,069,528
West Customer Metering
$30,036
Subtotal Operating Costs
$1,587,648
2. Fiscal Services (Debt)
Irving Pulp and Paper
$318,243
3. Asset Management and Capital from
Operating
Asset Management
$490,989
Capital from Operating
$225,178
Subtotal
$716,167
4. Rate Stabilization Reserve
Irving Pulp and Paper
$264,608
5. Total Costs (1+2+3+4 = 5)
$2,886,666
6. Annual Consumption (m3)
Irving Pulp and Paper
39,000,000
7. Calculated Rates (4/5 = 6)
Irving Pulp and Paper
$10040
OldIV,(.Y�7►
21
B. CALCULATED CONSUMPTION RATE — NB POWER (COLESON COVE)
The total cost of providing raw water to NB Power is estimated at $165,070 in 2020.
This amount divided by total billable consumption of 625,600 cubic metres, yields a
volumetric charge of $0.2639 per cubic metre. Table 12 illustrates the total raw water
rate calculation for 2020.
Table 12
Calculation of 2020 Raw Water Rates - NB Power
(Coleson Cove)
Description
2020
Calculated
alculated1.0
-
1. Oeratin Costs
West Watershed M mt Industrial
$7,829
West Transmission (IND)
$17,156
West Customer Metering
$30,036
Subtotal Operating Costs
$55,022
2. Fiscal Services (Debt)
NB Power (Coleson Cove)
$2,656
3. Asset Management and Capital from
Operating
Asset Management -
$94,610
Capital from Operating
$3,612
Subtotal
$98,222
4. Rate Stabilization Reserve
NB Power (Coleson Cove)
$9,170
5. Total Costs (1+2+3+4 = 5)
$165,070
6. Annual Consumption (m3)
NB Power (Coleson Cove)
625,600
7. Calculated Rates (4 / 5 = 6)
NB Power; (Colseson Cove)
^$0.2639
Old _Y*7►
22
C. RATE IMPACTS
In order to test the impact of the new rates on the City's two industrial customers
affected by the change in service delivery, a sensitivity analysis was undertaken to
quantify the rate impacts. Table 13 illustrates the impact of the calculated raw water
consumption based charges for both Irving Pulp and Paper and NB Power.
Customer Assumed 2020 Current 2019 Calculated 2020 Difference ($)
Consumption Payment Under Payment under
(m3) Existing Rates0) Raw Water
Billing(2)
Irving Pulp and Paper 39,000,000 $2,329,200 $2,886,666 $557,446
NB Power 625,600 $642,700 $165,070 $(477,630)
Note 1: Irving Pulp and Paper current payment based on actuals to October 2019 and estimated to end of
2019. NB Power is estimated based on projected consumption only based on the existing rate structure (see
Table 1).
Note 2: 2020 estimates are based on assumed consumption relative to historical trends.
As a result of the changes in billing practice, Irving Pulp and Paper will see an increase
on the total bill, while NB Power will see significant savings on the total bill as both
users transition to raw water based user fees:
• Irving Pulp and Paper is expected to see an increase of about $557,400 or 24%.
This increase fully reflects debt costs and asset management contributions
associated to infrastructure to provide raw water to Irving Pulp and Paper.
• NB Power (Coleson Cove) is expected to see a decrease of about $477,600. This
decrease is associated to the change in supply of potable water to raw water.
Resld _Y07►
APPENDIX A
DETAILED ASSET REPLACEMENT COSTS
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COUNCIL REPORT
M&C No.
2019-299
Report Date
November 14, 2019
Meeting Date
November 18, 2019
Service Area
Corporate Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Cities of New Brunswick Association Resolution —Amendments to the Industrial
Relations Act
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Neil Jacobsen
John Collin
John Collin
RECOMMENDATION
Approve the recommended Cities of New Brunswick Association resolution in both official
languages as provided in Attachment A.
EXECUTIVE SUMMARY
The Cities of New Brunswick Association (CNBA) is requesting that all eight (8) member City
Councils across the Province consider passing the same resolution (Attachment A). The
resolution requests that guiding criteria be established for binding arbitrators within the
Provincial Industrial Relations Act with respect to municipal firefighters and police. This
request represents a key policy priority of the CNBA, of which Saint John is an active
member. The CNBA, on behalf of its member Cities, has been advocating for binding
arbitration reforms over the past two years.
It should be noted that the requested changes to the binding arbitration provisions within
the Industrial Relations Act do not violate, infringe or otherwise tamper with free collective
bargaining, nor do they recommend the elimination of the binding arbitration rights afforded
to police forces and fire departments. The CNBA is simply requesting that provincially
appointed arbitrators (on a go -forward basis) consider local realities and financial pressures
in making their settlements, including each New Brunswick municipality's unique economic
situation and taxpayer's ability to pay. With limited financial resources, New Brunswick's
Cities require sustainable wage settlements and much greater predictability with respect to
their operating costs.
191.15)
-2 -
BACKGROUND - MUNICIPAL SUSTAINABILITY WORKING GROUP
Binding arbitration reform remains a CNBA policy priority, and is also a key priority for the City
of Saint John and Saint John Common Council, as reflected in the following Action Item in the
Sustaining Saint John — A Three -Part Plan.
+++++++++++++++++++++++++
Binding Arbitration Reform - Police and Fire Services
Applies to local governments where relevant, including Saint John
Action: The Government of New Brunswick will invite local government and union
representation to develop a proposal for binding arbitration reform. Government will
determine any next steps following the work of the committee. The City has been asked to pass
a resolution of Council outlining the changes they are requesting. Legislation will be brought
forward based on what was heard from local governments and unions.
Rationale: While police and fire services are both critical and valued, current legislation
mandates 'interest arbitration' resulting in unstainable wage escalation trends. For example,
firefighter wages in Saint John have increased by 72% over the past 15 years and police wages
by 67%, while the Consumer Price Index (CPI) has increased by 27.5% during the same period.
Current protective services wages and benefits comprise nearly a third of the city's budget.
By addressing the arbitration process, local governments can ensure these essential public
services are sustained over the longer term.
Impact: Savings would depend on the outcome of the committee's work and any future arbiter
rulings.
Timing: Short-term (Within 2019). Potential savings as of 2020.
The final version of the Sustaining Saint John - A Three -Part Plan, as jointly approved by Saint
John Common Council and the Province of New Brunswick, is available at:
https://www2.gnb.ca/content/dam/gnb/Departments/eco-bce/pdf/SustainingSaintJohn-August2019.pdf
Further background with respect to the financial sustainability challenges associated with
binding arbitration can be found in the City of Saint John's 2018 Provincial Election White Paper
(see Attachment B), which was also approved by Saint John Common Council. The Report in its
entirety can be accessed at:
https://www.sainteohn.ca/site/media/SaintJohn/2018%20White%20Paper REVISED AUG16.pdf
K1:%
-3 -
The cumulative impacts of rapidly accelerating fire and police wages are also captured in the
City of Saint John CPI and Wage Trend graph in Attachment C. Unionized Firefighter wages in
the City of Saint John have been growing at an average of 3.72% per year since 2004, and
unionized Police Officer wages have been growing at an average of 3.48% per year since 2004.
It currently costs just under $140,000 in salary, benefits, pension contributions and special
pension payments for each first class Firefighter employed by the City (with a base salary of
$92,275) and just under $150,000 for each first class Constable employed by the Saint John
Police Commission (with a base salary of $ $94,627).
STRATEGIC ALIGNMENT
The CNBA resolution is aligned with Council's 'Economic Health' Priority, as well as with the
City's Service Principles of "Sustainability" and "Partnerships".
SERVICE AND FINANCIAL OUTCOMES
The recommended resolution supports the objectives of the Sustaining Saint John —A Three
Part Plan and is viewed as a key contributor to the long-term sustainability and financial
viability of the City of Saint John, as well as the other cities of New Brunswick.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The recommended CNBA resolution is the outcome of close cooperation and collaboration
between the Province's eight (8) Cities. The cities of Bathurst, Campbellton, Dieppe,
Edmundson, Fredericton, Miramichi, Moncton and Saint John have identified this matter as a
shared priority to create more fiscally sustainable cities in this Province.
As identified in the CNBA's 2018 pre-election policy paper entitled 'Strong Cities —Strong
Provinces' (web link below), the cities of New Brunswick have paid an estimated
$133 million in wage increases to police and fire that are higher than wage increases for all
other municipal employees not eligible for binding arbitration. In addition, if nothing changes
by 2030, it is estimated that New Brunswick municipalities will be paying $31.6 million per year
in incremental police/fire wages relative to other municipal workers, and will have paid over
$390 million incremental wages since 1994. This is not a sustainable outcome.
https://www.8citiesnb.com/uploads/8/6/6/5/86656454/8 cities document en new.pdf
It should be noted that six New Brunswick municipalities (Bathurst, Campbellton, Dieppe,
Edmundson, Fredericton and Miramichi) have already approved the CNBA resolution (on
Tuesday, November 121h)
M-1191
M
ATTACHMENTS
Attachment A: Cities of New Brunswick Association Recommended Resolution (English
and French versions)
Attachment B: Excerpt from Building a Sustainable Future for Saint John — A 2018
Provincial Government White Paper (July 2018)
Attachment C: CPI and Wage Trends — City of Saint John (2004 — 2019)
Ec�:il
-5 -
ATTACHMENT A: Cities of New Brunswick Association Recommended Resolution
WHEREAS: New Brunswick's municipal leaders through their respective Associations (Cities
of New Brunswick Association, Union of Municipalities of New Brunswick, Association
francophone des Municipalites du Nouveau -Brunswick (the Associations)) have come
together to propose balanced and practical amendments to the Industrial Relations Act.
WHEREAS: These amendments propose to strengthen the interest arbitration process
(binding arbitration) for achieving joint collective bargaining agreements specifically related
to wages and benefits for firefighters and police in the province while reflecting the
economic circumstances of the province and the community they serve.
WHEREAS: Establishing criteria for binding arbitrators in legislation is critical to ensuring the
essential services in our communities are within the means of our municipalities without
sacrificing quality of life services that the municipalities provide and municipal growth.
WHEREAS: Together, the municipalities from all three Associations are proposing an
amendment to the Industrial Relations Act that would ensure that the original legislative
intent is achieved. The amendment would include a requirement that arbitrations be
conducted by a single arbitrator and is not intended to impose limits on the binding
arbitrator's ability to award costs rather, they ensure that decisions are completed in an
efficient manner, are more accountable and transparent, and importantly tied to meaningful
assessments of a municipality's fiscal health.
BE IT RESOLVED: We join and support the request by all City Councils that these
improvements be implemented within the existing legislative framework in a manner that
complements the intended spirit of the legislation and the existing interest arbitration
process as it relates to firefighters and police.
191:16'7
M
ATTACHMENT A: Cities of New Brunswick Association Recommended
Resolution
ATTENDU QUE : Par l'intermediaire de leurs associations respectives (I'Association des cites
du Nouveau --Brunswick, I'Union des municipalites du Nouveau --Brunswick et I'Association
francophone des municipalites du Nouveau --Brunswick, ci--apres appelees les « Associations
»), les dirigeants des municipalites du Nouveau --Brunswick ont fait front commun pour
proposer des modifications equilibrees et pratiques a la Loi sur les relations industrielles.
ATTENDU QUE : Ces modifications ont pour but de renforcer le processus d'arbitrage de
differends (I'arbitrage obligatoire) utilise pour conclure des conventions collectives
multisyndicales specifiquement associees aux salaires et aux avantages sociaux des pompiers
et des policiers de la province dans le respect de la conjoncture economique de la province
et des collectivites desservies.
ATTENDU QUE : II est essentiel d'etablir dans la loi des criteres en matiere d'arbitrage
executoire afin de veiller a ce que les services essentiels fournis aux collectivites soient dans
la limite des moyens de nos municipalites sans sacrifier la qualite de vie offerte par les
municipalites ni la croissance municipale.
ATTENDU QUE : Ensemble, les municipalites membres des trois Associations proposent une
modification a la Loi sur les relations industrielles qui assurerait la realisation de l'intention
legislative initiale. La modification inclurait une exigence selon laquelle les arbitrages doivent
etre conduits par un seul arbitre et n'a pas pour but d'imposer des limites sur la capacite de
I'arbitre executoire a etablir des sentences; elle vise plutot a assurer que les decisions sont
prises de fagon efficace, qu'elles sont plus imputables et transparentes, et surtout, qu'elles
decoulent d'une evaluation serieuse de la sante fiscale d'une municipalite.
IL EST RESOLU QUE : Nous appuyions tous les conseils municipaux qui demandent que ces
ameliorations soient mises en oeuvre dans le cadre legislatif existant de fa�on a completer
1'esprit de la legislation et le processus actuel d'arbitrage des differends en ce qui concerne
les services de pompiers et de policiers.
10:1:1
-7 -
Attachment B: Excerpt from Building a Sustainable Future for Saint John — A
2018 Provincial Government White Paper (July 2018)
The City of Saint John strives to be a good employer and negotiate collective agreements that
are both fair and reasonable for all of our workforce groups. We value the work of our police
officers and firefighters, but need to find a path forward that more effectively balances rapidly
escalating protective services wages with other employee groups, while reflecting the City's
challenging financial reality.
Police and Fire wages have been accelerating at a rate well in excess of inflation and
approximately double that of other City employee groups. The City can no longer afford to
continue to pay these increases without increasing taxes (already the highest in New
Brunswick) or dramatically reducing the delivery of citizen services. Previously, both the Saint
John Police Force and Saint John Fire Department have been forced to permanently reduce the
number of police officers and firefighters to balance their respective operating budgets. Further
reductions are inevitable should the status quo carry forward in perpetuity.
As a result of provincially mandated interest arbitration for locally -funded police and fire
employees, we are experiencing the following issues:
• Slow, expensive and at times unrealistic arbitration processes.
• A lack of incentive to openly and effectively bargain — the threat of arbitration also
directly influences non arbitrated settlements.
• Strained day-to-day labour and working relationship with our protective service
unions.
• Isolation of the process from free market forces for too long, invalidating the
replication principle (a foundation for arbitration decisions here in New Brunswick
and across Canada).
• Creep of arbitrator jurisdiction into fundamental operational matters, including the
requirement to introduce the 24 hour shift.
• Automatic replication of protective service wage increases with other municipalities
and between police and fire employees, with no regard for the unique
circumstances differentiating each.
• Persistent failure to acknowledge our "ability to pay" as a constraint in awarding
arbitrated wage increases.
• Awarding year -over -year salary increases that greatly exceed the increases
negotiated with any other component of our municipal workforce, resulting in an
erosion of internal equity.
• Salary compression with our Management Professional (non-union) pay scale, which
is reaching untenable levels, including Fire Management Staff with comparable or
even lower overall compensation than their direct reports.
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NeS 111C' VOkC Cities of New Brunswick Association
IftdS, U11C, &V �m III Association des Cites du Not
Notice to the Members
From : Adam Lordon, President
Cities of New Brunswick Association
November 5th, 2019
SUBJECT : Resolution to establish guiding criteria for binding arbitrators within the Industrial
Relations Act regarding Firefighters and Police
Dear Members :
In June of this year the Auditor General reported that New Brunswick municipalities are
close to $1 billion in debt, an amount the auditor general warns is unsustainable.
As Mayors and Councillors, we have been around this table for more than three years
and we didn't need the Auditor General to remind us of the very difficult job that we have
to provide the many services that our residents use on a daily basis. Services such as
public works, clean water, waste disposal, parks and recreation, snow removal and
emergency services like police and fire.
The eight cities recognize that emergency services professionals work in dangerous
settings and should be highly respected. At the same time, labour costs and increases
associated with emergency services continue to rise at rates that are exceeding those in
other sectors here within our organizations, our cities and the province.
The disproportionate increase of costs in the emergency service sector is adding to the
erosion of the ability of municipalities across the province to fund key projects and
essential programs.
Since spring the leaders of the cities, towns and villages in the province have come
together to propose balanced and practical changes.
Changes that are needed to provide our municipality with an equal playing field in our
ability to establish fair compensation for our fire and police professionals that reflect the
responsibilities as well as the economic reality of our city.
The compensation package must serve the interests of the community as well as
support the municipalities ability to attract and retain qualified firefighters and police.
PO Box 1421, Station A, Fredericton, N.B., E3B 5E3
1c1:10.1
NeS 11C' VdCC Cities of New Brunswick Association
IftdS, U11C, &V �m III Association des Cites du Not
The Cities of New Brunswick Association is requesting that all eight of the City Councils
across the province consider passing the same resolution. It is the intention of the cities
of New Brunswick Association to have each of its eight members pass this resolution on
the same night, November 12th by adding it to their current agenda or calling a
special meeting.
WHEREAS: New Brunswick's municipal leaders through their respective Associations
(Cities of New Brunswick Association, Union of Municipalities of New Brunswick, Association
francophone des municipalites du Nouveau -Brunswick (the Associations)) have come together
to propose balanced and practical amendments to the Industrial Relations Act
WHEREAS: These amendments propose to strengthen the interest arbitration process (binding
arbitration) for achieving joint collective bargaining agreements specifically related to wages
and benefits for firefighters and police in the province while reflecting the economic
circumstances of the province and the community they serve.
WHEREAS: Establishing criteria for binding arbitrators in legislation is critical to ensuring the
essential services in our communities are within the means of our municipalities without
sacrificing quality of life services that the municipalities provide and municipal growth.
WHEREAS: Together, the municipalities from all three Associations are proposing an
amendment to the Industrial Relations Act that would ensure that the original legislative intent
is achieved. The amendment would include a requirement that arbitrations be conducted by a
single arbitrator and is not intended to impose limits on the binding arbitrator's ability to award
costs rather, they ensure that decisions are completed in an efficient manner, are more
accountable and transparent, and importantly tied to meaningful assessments of a
municipality's fiscal health.
BE IT RESOLVED: We join and support the request by all City Councils that these improvements
be implemented within the existing legislative framework in a manner that complements the
intended spirit of the legislation and the existing interest arbitration process as it relates to
firefighters and police.
PO Box 1421, Station A, Fredericton, N.B., E3B 5E3
06191
SJ PA
Saint John Police Association
° P.O. Box 1025 (Main), 125 Rothesay Ave., Saint John, NB. Canada, E2L 4E3
Mayor and Common Council
City of Saint John
C/O Common Clerk
Hand Delivered
November 7, 2019
Greetings:
On behalf of the police officers who serve and protect the City of Saint John twenty four hours
each and every day we herein submit a formal complaint as per Bylaw number LG -5 "A
BYLAW RESPECTING THE CODE OF CONDUCT FOR ELECTED MEMBERS OF
THE CITY OF SAINT JOHN" and request an official open session vote of Council on the
remedial action required.
Under the headline in the November 2" d, 2019 edition of the Telegraph Journal "City Paid Four
Workers $800 K: Report" the Chairman of the city's finance committee, Councillor David
Merrithew publicly stated:
"These people are just making too much. They're greedy.
They don't care about our city"
This is a completely misleading and a false statement that any police officer was paid more
than $200,000 in 2018!
For the first time a report was produced by City management to inflate the 2018 payments for
each employee that included such misrepresentations as delayed negotiated wage increases
for the years 2016 and 2017 that was work performed in the previous 2 years. Adding
delayed negotiated wage increases for 2016 and 2017
onto the actual amounts paid for work in 2018 is a deliberate attempt to artificially inflate and
misrepresent the true incomes of police officers.
The number of police officers has been reduced over the years from over 200 to now only 142
(including police management). This drastic reduction has caused more overtime demands on
our officers. These extra hours away from our families are a sacrifice officers must make in
order to serve and protect the City of Saint John. To add the overtime costs caused by the
reductions in officers as a result of budget cuts from Council unfairly misleads the public. Huge
amounts of overtime are generated by lengthy and complex investigations including murders.
The report also includes Court time appearances. Our officers are ordered to appear in Court
and as such they have no choice but to be in Court resulting in cancelled vacations and other
time with their families.
06%
The next major misleading misrepresentation in the Council report is the special pension
payments ordered by the provincial Superintendent of Pensions. The long standing pursued City
pension change from a "Defined Benefit" pension plan to the now "Shared Risk" pension plan
saved the City of Saint John tens of millions of dollars and also reduced the pension benefits
to the employees. The millions of dollars in savings to the City of Saint John were not deducted
from employee's incomes and neither should the provincial ordered special payments be added
to employee's incomes.
These substantial amounts are not received by our officers.
The Council report also adds their "no fault insurance" workers compensation payments onto
the amounts received by City employees. These payments by the City to Worksafe NB are to
protect the City from an injured or killed police officer and/or their families taking legal action
against the City for any reason. To add these "no fault" insurance payments by the City onto
amounts received by police officers is another misrepresentation to unjustly inflate their
incomes. By that same logic, will the next report add the insurance payments for the police
station and police cars onto the incomes of police officers?
These misleading misrepresentations were used by Councillor Merrithew, Chairman of the city's
Finance Committee, to publicly state police officers are making too much — are greedy and don't
care about our city.
As you know Mayor Darling and Councillor Merithew made public presentations against the
binding arbitration process for police and firefighters. It is painfully obvious the Council report
and the misleading, false, offensive, insulting and derogatory statements by Councillor
Merithew are a continuation of the attack on the present binding arbitration process for
police and firefighters.
The true annual salary for a 1St Class Constable in Saint John is $94,627.
The annual salary for a 1' Class Constable in Halifax is $ 101,304.
The annual salary for a 1' Class Constable in Fredericton is $94,570
These facts prove that Councillor Merithew's public statements that our officers are "just making
too much — they're greedy" are deliberately misleading and do a harmful disservice to the City
of Saint John and the police officers who protect it. There is no wonder why the surrounding
communities do not want to move to regional services and taxation when these false outlandish
statements against City employees are on the front pages of the newspaper. Councillor
Merrithew's self -motivating public statements have caused irreparable harm to the City of
Saint John and its residents!
We remind you of the increases for the Mayor and Councillors in 2017 and 2018: 2017
= Mayor 30%
Deputy 40%
Council 55%
2018 = Mayor 12%
Council 10%
Adding insult to injury, Councillor Merrithew publicly states:
06%,
"They (police officers included) don't care about our City"
This is the most dishonest, disrespectful, unprofessional, aggressive, offensive, abusive,
derogatory, inappropriate untrue statement ever made by a Councillor in the City of Saint
John.
It is the police officers who face individuals who attempt to injure, maim and kill members of
the public and our officers on the streets of Saint John. It is the police officers who keep
Saint John as a safe place to live and work, performing their duties under horrendous and
dangerous conditions. The City of Saint John is the people of Saint John and our officers are
devoted to serving and protecting them our officers care about them as has been proven
for 170 years — and most of the public care about our officers — Councillor Merrithew
obviously is one who does not.
Councillor Merrithew has not treated the police officers of Saint John with "dignity and
respect" nor conducted himself in a "professional" and "honest" manner. His public
statements are "inappropriate, offensive, insulting and derogatory." All of which is in
violation of numerous Sections of Bylaw number LG -5.
We request Council in an open session vote to remove Councillor Merrithew as Chair of the
Finance Committee as the "remedial action" for the aforesaid violations of said Bylaw. His
unprofessional and bias statements prove he is not capable of performing in this capacity in
accordance with Bylaw LG -5 and the real interests of residents.
It is sincerely requested again, that Council fight for the real financial solutions for the citizens
of Saint John — heavy industry tax reform and regional services and taxation instead of
fighting with your own professional employees.
When the residents of Saint John pay 61% ($74.2 Mil.) of the annual City taxes and heavy
industry only pays 8% ($9.7 Mil.), with equipment and machinery exempt, the picture is
crystal clear.
After the "sweet heart" LNG tax deal ($500 thousand per year instead of the $7 million) the
refinery had their assessment reduced drastically to where the largest refinery in Canada (Saint
John) only pays $2.6 M where the Imperial/Suncor refinery in Alberta pays $25.6 M in
municipal taxes. This $23 M shortfall would wipe out any structural deficits and allow
residents a tax reduction.
In addition, the Regional Hospital pays approximately the same municipal taxes as the
Refinery, Irving Pulp and Paper mill -Irving Bayside Paper mill and the Irving Golden Ball
- all combined.
This Council has no mandate to raise service taxes and further reduce police protection for
residents. The former provincial government allocated sufficient funds ($10.4 M for 2020) to
avoid such retrogressive action for 2020, the year of the next municipal election. As such, if the
mayor and any Councillor want to run with raising service taxes reducing police protection they
must be honest with the voters.
3
It is high time for this Council to stand up for the residents of Saint John and fight for
overdue tax reform—this will not happen by fighting with professional City employees.
Yours truly,
Duane Squires
President - Saint John Police Association
MEI
4
SAINT JOHN BOARD
OF POLICE
COMMISSIONERS
ONE Peel Plaza, E21, OEl
PO Box 1971
Saint John, New Brunswick
Canada E21, 4L1
Bureau des Commissaires du
Service de Police de Saint John
C.P. 1971
Saint John Nouveau -Brunswick
Canada E2L 4L1
EDWARD KEYES
Chair/ Pr6sident
JEFF MCALOON
Vice-Chair/Vke Pr6sident
DOUGLASJONES
Secretary/Secr6taire
DON DARLING
Commissioner/Commissaire
GARY SULLIVAN
Commissioner/Commissaire
MAIKE WHITE
Commissioner/Commissaire
MICHAEL COSTELLO
Commissioner/Commissaire
BRUCE CONNELL
Chief of Police/
Chef de Police
DAPHNE WAYS
Executive Administrator/
Secr&aire Administrative
Telephone/T616phone:
(506) 648-3324
E mail/Courriel:
taolI o mmission�saintiatj ca_
Explore our past/
Explorez noire passd
Discover your future/
DBcouvrez votre avenir
November 14, 2019
Mr. John Collin
City Manager
City of Saint John
P. O. Box 1971
Saint John, NB
E2L 41_1
John.Collin _-saintohn.ca
Dear Mr. Collin:
Re: City of Saint John Wage Escalation Policy
In response to your letter dated October 3, 2019 around the above
captioned matter the Saint John Board of Police Commissioners,
at their November 12, 2019 meeting adopted the following
resolution:
"RESOLVED, that the Saint John Board of Police
Commissioners adopt the City of Saint John Wage
Escalation Policy (FAS -007), as a foundation document for all
future deliberations on wages."
Yours
Edw=ohn
es, Chair
Sainoard
06191
mmissioners
TO SAINT JOHN BOARD
OF POLICE COMMISSIONERS
November 12, 2019
Mr. Edward Keyes, Chair and
Members of the Board of Police Commission
Chair Keyes and Members
SUBJECT
2019 Operating Budget — August Financial Results
BACKGROUND
The purpose of this report is to provide the Board with an update on the financial
position of the Saint John Police Force's 2019 Operating Budget for the second
trimester ended August 31, 2019.
FINANCIAL HIGHLIGHTS
For the period ended as at August 31, 2019, the net operating costs for the Saint
John Police Force were under budget by $951,124 or 6.4%.
There are seven key areas that contributed to this budget variance.
1. Revenue exceeded budget expectations by $90,600.
2. Salaries and Wages under budget by $550,258.
3. Overtime costs exceeded budget by $96,634.
4. Extra -Duty overtime expense was $40,413 and is 100% recoverable.
5. Court Time and Other Personnel costs were over budget by $113,397.
6. Fringe Benefits were under by $180,899.
7. Good and Services were under budget by 379,811.
061.1
Chairman Edward Keyes and
Members of the Board of Police Commission
November 12, 2019
Page 2
Subject: 2019 Operating Budget — August Financial Results
Budget Analysis
REVENUE OFF -SETS
The $90,600 additional revenue realized from extra -duty assignments and criminal
record check service will be used as a direct offset to overtime expense.
SALARIES AND WAGES
Salaries were under budget by $550,258 and these savings are the result of
retirements and/ or positions not filled during the year. These funds will be used
to defray overtime costs incurred with the backfilling of shifts to maintain minimum
deployment levels on the four Platoons and court overtime.
OVERTIME
Saint John Police Association (SJPA)
The overtime expense was over budget by $96,634. The Patrol Division
accounted for $81,051 and the Criminal Investigation Division was over budget by
$21,291 and this is direct operational cost to conduct investigations outside of
regular works hours.
The overtime expense for Extra -Duty was $40,413 and this amount is 100%
covered from billings to third parties for paid over -time assignments.
OTHER PERSONNEL COSTS
Court Time - Saint John Police Association (SJPA)
The court time expense exceeded budget by $107,796.
GOODS & SERVICES
The various Goods and Services accounts were under budget by $379,811 and
there are key expense lines that are showing under budget due to billings not
being received and processed at the end of this reporting period. The final phase
of vehicle purchases and other required operational equipment will be completed
by the end of the year.
06YA
Chairman Edward Keyes and
Members of the Board of Police Commission
November 12, 2019
Page 3
Subject: 2019 Operating Budget — August Financial Results
YEAR END FINANCIAL PROJECTION
Based on all known variables that can impact the Operating Budget, the projected
net 2019 year-end financial position for the Saint John Police Force will be slightly
under budget by $20,000 - $30,000.
As indicated, all significant purchases will be completed by year-end and
discretionary spending will be closely monitored in the final trimester to ensure the
Force delivers a balanced budget.
RECOMMENDATION
• It is recommended that the Board accept and approve this Financial
Report for the period ended as at August 31, 2019 and forward a copy to
Common Council as required under Section 7 (3) of the New Brunswick
Police Act.
Attached reports and documents:
• Consolidated Statement of Operations - August 31, 2019
• Budget Variance Analysis - August 31, 2019
Respectfully submitted,
Marve E. Corscadden, CPA
DIRECTOR HR & FINANCE
Bruce Connell
CHIEF OF POLICE
061.11
SAINT JOHN POLICE FORCE
BUDGET VARIANCE ANALYSIS
For the Period Ended August 31, 2019
Budget
Expenses
Variance
Current Variance
Timing Actual
$15,194,046
$14,333,522
$860,524
$860,524
$115k.
Expense Cate qq ��.............o,,,,,,,,,,,,
Variance
��,�, ,,,,,,,�
Explanation of Variance
��m,.
l
Salaries & Wages
$550,258
. Salaries: Non -Union over budget by
$115k.
• Salaries: Local 486 under budget by
$120k.
d
SJPA Police Officer wages under
budget by $545k.
Overtime
($137,047)
. Overtime: SJPA Patrol: Over budget by
($81 k).
• Overtime-SJPA-Criminal
Investigations: Over budget by ($21 k).
• Extra -Duty Overtime - Over by (401k) and
this expense is 100% recovered with
earned revenue as all hours paid are
invoiced to 3'd parties for Extra—Duty
assignments.
..........................................................
Other Personnel Costs
($113,397)
Court Time: Over budget by ($1081k).
Fringe Benefits
$180,899
Benefits: The rate for police officers is at
28.6% and 25% for civilian employees.
This rate now includes the employer
portion the Long -Term Disability (LTD)
program and the Shared Risk Pension
plan. It also includes EI, CPP, WCB and
employee group benefit costs.
General Services
$62,151
• Telephone: Under budget by $221k.
i
Employer Training: Under by $43k.
0616.1
Saint John Police Force - August 31, 2019
Budget Variance Analysis
Expense Cate ory Variance
Explanation of Variance
Insurance ($15,792)
. Deductible Account: Over budget by
($17k) and this represents charges back
to Police via the City's insurance
department for 3`d party claims
(damages) and/or monies due to the
SJPF for police vehicles involved and
damaged by 3`d parties in accidents.
I
Professional Services $2,378
. No significant variance at the end of
August 2019.
Other Purchased Services ($44,143)
. Other Purchased Services: Over
...........................,,,,,........................ ..... ....rv...,,,,,,,y......,,,y.........-------
budget by ($44k).
.......................
Repair & Maintenance $44,825
. Computer Software/Maintenance:
Under budget by $45k and the 2019
initiative to introduce Voice to Text
software as a replacement for digital
transcription has been postponed (not
abandoned) as the current voice to text
technology is still not at the right
application level for a Police
environment.
Rentals $9,978
. No significant variance at the end of
August 2019.
Purchased Goods $22,525
. This variance is the timing between the
monthly budget allocation and the
payment of invoices for eighteen different
accounts in this expense category.
Government Services ($2,444)
. No significant variance at the end of
August 2019.
2i Pa
HoK
Saint John Police Force — August 31, 2019
Budget Variance Analysis
....__._„_. _... ............... - ..............
Internal Services ($4,315) Fleet Maintenance - The cost
for maintenance was over budget by
($51 k) for this reporting period.
• Fleet Fuel — The fuel costs at
the end of August was under budget by
$44k.
Asset Purchases I $304,648 Vehicle Purchases — Under Budget by
p $263k and the procurement process to
acquire new marked police SUVs has
been delayed until the selected
manufacturer commences production in j
t
January 2020 for police vehicles.
• Other Assets — Under Budget by
$40k and the acquisition of a special
hard body throw phone and equipment
used for tactical and hostage
negotiations was received in early
November.
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September 11, 2019
Kiwanis Club of Saint John
P.O. Box 7312, Station B
Saint John, New Brunswick
E21-457
Mayor Don Darling & Members of Common Council
City of Saint John, 8th Floor, City Hall Building
15 Market Square, PO Box 1971
Saint John, NB, E21-41-1
2019 Kiwanis Club of Saint John Annual Christmas Breakfast,
Hathaway Pavilion, Lily Lake, Saint John, NB
8:00 a.m. Tuesday, December 10, 2019
Invoice for 10 Tickets ......................................$150.00
Cheques payable to:
Kiwanis Club of Saint John
Thank you for your continuing support.
[30]
REQUEST TO PRESENT TO COUNCIL FORM
7be0tY0f&Vfflj6bffi
02EMB4
First Name: Michael Last Name: Davidson
Name of Organization/Group (where applicable): CUPE / ATU Local 1282, Saint John
Police Association
City or Town: Saint John Province: IVB Postal Code:
Day Time Phone Number: Email:
Z If you do NOT wish to have your personal information (address, phone number,
email) become part of the public record, please check this box.
Topic of Presentation: Industrial Tax Reform
Purpose for Presentation (what is the ask of Council): To develop a plan to bring about
industrial tax reform to lower residential taxes and avoid cuts to services.
Background Information: To assist in the implementation of tax expert's reports such as the
Jeff Trail report.
1390UHM
Signature: Michael Davidson
Date: 2019-11-12
REQUEST TO PRESENT TO COUNCIL FORM
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To: Mayor and Council of the City of Saint John
Re: Professionalism
Your Worship and Council,
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A professionally operated public transit system is integral to economic growth and sustainability, yet no
one in Saint John Transit has any certified urban transportation credentials. This absence of a public
transit professional has resulted in an inefficient, erratically timed, backtracking, overlapping, redundant
transit routing system designed to avoid or provide unsafe inconvenient access to the core initiatives of
Discover Saint John and Move SJ.
The message is clear. If you don't have a vehicle in Saint John, you don't matter.
Council's transit representative endorsed this message on CBC Radio by dismissing transit cuts to
promote parking opportunities. Parking revenues cannot be used to offset transit cuts, raising a conflict
of interest issue where two separate, competing transportation entities are governed by the same board
of directors.
Saint John Transit does not collaborate with other municipal entities as evidenced by the blatant
contravention of basic public transit guidelines in the professionally compiled Plan SJ. They have been
operating with an annual budget of ten million ($10,000,000) dollars to directly service the public but
have no customer service policy, ignore complaints of rampant discrimination and refuse to put
anything in writing.
As an omnipotent clandestine fiefdom, Saint John Transit is an active deterrent to progress and can be
held largely responsible for our current economic crisis. Transportation is the lifeblood of a community.
It connects everything.
A public transit professional in Saint John Transit is crucial for economic growth and sustainability in this
city.
Respectfully,
Mary Ellen Carpenter
41 Crown St. #207
Saint John, NB. E21.OE2
(506) 899-0519
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From: Dee Stubbs -Lee [mailto:deestubbs@hotmail.com]
Sent: November -10-19 2:25 PM
To: Darling, Don; External - CommonClerk
Subject: Potential service cuts to Saint John Transit
Mayor Darling and Council,
I am writing to express my concern about the proposed $2 million budget cut to Saint John Transit. As a
regular transit customer, I depend heavily on this service almost daily. I use transit several times per
week, and have done for many years. Due to a medical condition, I do not drive. Unlike many citizens, I
can afford an occasional taxi in a pinch, but those expenses add up very quickly. I also have a spouse and
friends who help to get me around. Not everyone is that fortunate.
I have also been a regular transit customer in a number of other cities I have lived in across Canada. I
attended more than one of the "Move Saint John" active transportation presentations, and have given
feedback based on my own transit experiences. What has happened to that feedback? How many of
those suggestions gathered from the real experts — the people who actually use the system — were
implemented?
There are many reasons we should not be further cutting an already beleagured transit system. In fact, I
fully support significantly increased spending on transit and measures to encourage use of the service.
Those reasons range from air quality improvement to reduction in traffic congestion and from reduced
wear and tear on the roads to increased quality of life for all citizens. The most important reason of all,
however, is that for those of us who depend on transit for whatever reason, transit is our lifeline. It
allows people to hold a job, to get their kids to the daycare, to get to medical appointments, to get to a
grocery store, a bank, to school, to an event. Access to good transit has the power to help pull people
out of poverty, and transit cuts can easily push people living on the edge into poverty. Transit is not a
"nice to have", it is an absolutely essential service for everyone, but especially for the most vulnerable
among us —the working poor, the elderly, the disabled. Unlike our other essential services, transit is at
least partially user -funded.
I would like to challenge all members of council to try living without a vehicle for one week. See how
easily you can get everywhere you need and want to be — on any day and at any time during that week -
using only the bus or walking. Now imagine that as a permanent lifestyle change. I expect you may find it
very educational.
Sincerely,
Dee Stubbs -Lee
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November 13, 2019
15,
To: Mayor and Common Council, City of Saint John
Re: Decision for changes to Municipal Plan and Zoning By-law for 348 Acamac Backland Road
On Monday, November 4, 2019, Common Council conducted a public hearing to consider
proposed amendments to the Municipal Plan and Zoning By-law to permit land at 348 Acamac
Backland Road to be used for the extraction of clay and aggregate.
Early in the agenda (Item 4), Mayor Don Darling asked that those making decisions on issues
before the governing body declare any potential "Conflict of Interest", regarding any item
before council. No one disclosed any such conflict regarding Item 9, for which I attended the
hearing and made a presentation. This led me to believe that none of those voting had an
association with, nor were active members, of the Fundy Region Service Commission (FRSC),
who were the applicants for the request.
Following presentations, Council voted in favour of making the Municipal Plan and Zoning By-
law changes. The vote was tie 5-5, which would have meant that the proposal was defeated.
However, the Mayor cast a deciding vote, which resulted in the approval of the application.
Upon returning home from the Council meeting, I searched online for information regarding
FRSC and discovered that the City's representative is Mayor Darling, who cast the deciding vote
on an application by a Board on which he serves. One must question why Mayor Darling failed
to identify his secondary service position, especially when he had asked others to declare any
"Conflict of Interest" a half hour before public presentations were made. Being a voting
member of FRSC is a "secondary interest" for Mayor Darling.
Having a conflict is not wrong, but failure to declare a "Conflict of Interest" and remove yourself
from the decision-making process is. The onus is on the voting representative to declare a
"Conflict of Interest" and remove himself/herself from participating and voting. This may
involve leaving the venue or being seated in the public gallery. It also could involve departing
any closed session of Council when the issue is being discussed.
An "Interest" is defined as "a commitment, obligation, duty or goal associated with a particular
role or practice". A "Conflict of Interest" occurs if, within a particular decision-making context,
an individual is subject to two co -existing interests that are in direct conflict with each other in
terms of benefits and loyalties. Such a matter is of importance because, under such
circumstances, the decision-making process can be disrupted or compromised in a manner that
affects the integrity or the reliability of the outcome. "Interests" can be pecuniary or non-
ERB]
pecuniary. Existence of an interest is an objective fact, not a state of mind. A "Conflict of
Interest" exists if the circumstances can be REASONABLY believed to create a risk that a
decision MAY be unduly influenced by other "secondary interests" and not on whether a
particular individual is ACTUALLY influenced by a "secondary interest".
Such a situation must not be permitted nor overlooked. Rules cannot be broken by making an
error in judgement or considering that one is acting in good faith, or might represent himself as
"open to persuasion". When there is a POSSIBILITY that one's external interest or activity can be
REASONABLY perceived as affecting his impartiality, a potential "Conflict of Interest" arises.
Although there may be no personal gain achieved by the conflict, the individual may be aware
of privileged information that may influence his vote, and his actions could influence the
decision of others.
During his closing statement before calling for a vote, Mayor Darling's remarks could be viewed
as more positive toward the applicant's interests, saying nothing with regard to implications to
property taxes and property values of community residents and other potential uses for nearby
undeveloped property. Doing such could sway the decision of voting members having difficulty
in making a decision but respecting the mayor's perceived knowledge through his secondary
position. One might also question the amount of influence that could be involved, knowingly or
otherwise, at closed session to sway votes.
The questionable circumstances regarding accepting this change to land usage should result in
Council's action to remove the Mayor's vote, resulting in the rejection of the FRSC application.
This exercise in fairness will also avoid the necessity for residents who opposed the change to
seek other recourses, which can include filing an objection with the Provincial Planning Appeal
Board, complaints to the Offices of the Ombudsman and/or the Attorney General, requesting a
criminal investigation by law enforcement offices, appealing property tax assessments and
entering into a class action suit to recover losses in property values caused by nearby land use
changes created from the November 4 decision.
Please recognize this situation and resolve it without delay.
Thank you for your consideration of this matter.
1e[916-1
November 18, 2019
Deputy Mayor and Councillors
Subject: Lease Termination —The Donut Queen Inc. in the City Market
The Committee of the Whole, having met on November 18th, 2019, made the
following recommendation:
RESOLVED that as recommended by the Committee of the Whole, having met on November
18th, 2019 Common Council approve the following:
1) That The City of Saint John terminate the lease for The Donut Queen Inc. and the rental
of Stall 2 in the City Market; and
2) That the Mayor and Common Clerk execute all required documentation.
Sincerely,
r
Don Darling
Mayor
(P*-..
SAINT JOHN
P.O. Box 1971 Saint John, NB Canada E2L 4L1 I www.saintjohn.ca w CA 1971 Saint John, N. -B. Canada E2L 4L1
CCK
PUBLIC REPORT FROM
COMMITTEE OF THE WHOLE
M&C No.
2019-281
Report Date
October 31, 2019
Meeting Date
November 18, 2019
Service Area
Finance and
Administrative Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Lease Termination The Donut Queen Inc in the City Market
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadCity
Manager
David Kirkpatrick
Ian Fagan
John Collin
REPORT SUMMARY
The purpose of this report is to seek Common Council's approval to terminate the lease
of The Donut Queen Inc relating to its lease of Stall # 2 in the City Market. The owner
has approached City Market Management on October 5t", 2019 and advised they are
ceasing operations in October. October's rent of $1000.11 was not paid.
Cis
November 18, 2019
Deputy Mayor and Councillors
Subject: Christmas Events Budget
The Committee of the Whole, having met on November 18th, 2019, made the
following recommendation:
RESOLVED that as recommended by the Committee of the Whole having met on November
18th, 2019 Common Council allocate $2,400 for the Mayor's Christmas Tree Lighting and
Mayor's New Year's Levy events.
Sincerely,
r
Don Darling
Mayor
(P*-..
SAINT JOHN
P.O. Box 1971 Saint John, NB Canada E2L 4L1 I www.saintjohn.ca w CA 1971 Saint John, N. -B. Canada E2L 4L1
111K